Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an agreement with MGT of America Consulting, LLC to develop the City's Cost Allocation Plan (CAP) and Indirect Cost Rate Proposals (ICRPs).  Additionally, staff recommends City Council authorize two (2) optional one (1) year renewals without further City Council approval, provided that the applicable budget is approved by the City Council each year, or until City staff determines that continuing with the same vendor is not in the City’s best interest.

In July 2021, the City issued a Request for Proposals to identify the most qualified firm to provide a Cost Allocation Plan (CAP) and Indirect Cost Rate Proposals (ICRPs). City staff have completed an evaluation of all submitted proposals and recommend that the City Council authorize the City Manager to enter into an agreement with MGT of America Consulting, LLC (MGT) to perform the requested services. MGT was selected based on several factors, including cost, qualifications, experience, staff expertise, project understanding, and project plan. 

The CAP is developed annually to identify and allocate citywide indirect costs. A majority of the indirect costs are associated with the services provided by general government departments (e.g., City Manager's Office, Finance and Human Resources) to operational departments (e.g., Police, Fire, Environmental Utilities and Roseville Electric). City staff primarily utilize the CAP to ensure that the annual budget recovers indirect costs from enterprise funds, internal service funds, special revenue funds, state and federal grants, and other funding sources. Also, MGT will assist in developing a CAP and ICRPs that are compliant with the federal uniform cost principles (2 CFR Part 200). These principles are used to determine the amount of indirect costs the City can recover from federal grants and other funding sources.

The ICRPs are used to calculate specific percentage rates applied to a program to determine the total cost of providing a particular service. These rates are for various purposes, including recovering costs from capital improvement projects, external agencies, fees, and grants.

The initial term of the agreement will be for three years and a not-to-exceed amount of $27,870 per year, or $83,610 over the agreement term. The agreement also includes an option to renew the agreement for two additional years.

There are adequate funds available in the Finance Department FY2021-22 operating budget in the General Fund for the first year of this agreement. Future year funding will be evaluated as part of the annual budget development process.

The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment.  Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. (CEQA Guidelines §15061(b)(3)).

Goal A - Remain fiscally responsible in a changing world

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Dominick Casey, City Manager