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Home My WebLink About2018-07-03 Council Meeting CITY OF ASHLAND Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit written comments to the Council on any item on the Agenda, unless it is the subject of a public hearing and the record is closed. Time permitting, the Presiding Officer may allow oral testimony. If you wish to speak, please fill out the Speaker Request form located near the entrance to the Council Chambers. The chair will recognize you and inform you as to the amount of time allotted to you, if any. The time granted will be dependent to some extent on the nature of the item under discussion, the number of people who wish to speak, and the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL July 3, 2018 Council Chambers 1175 E. Main Street Note: Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.E.] 7:00 p.m. Regular Meeting 1. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENTS V. APPROVAL OF MINUTES 1. Executive Session of June 14, 2018 2. Executive Session of June 15, 2018 3. Study Session of June 18, 2018 4. Business Meeting of June 19, 2018 VI. SPECIAL PRESENTATIONS & AWARDS 1. SmokeWise Ashland Presentation by Fire and Rescue VII. MINUTES OF BOARDS, COMMISSIONS, AND COMMITTEES Airport Conservation Forest Lands Historic Housing and Human Srvs. Parks & Recreation Planning Public Arts Transportation Tree Wildfire Mitigation VIII. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. The Mayor will set time limits to enable all people wishing to speak to complete their testimony.) [15 minutes maximum] IX. CONSENT AGENDA 1. Approval of Radio Maintenance Agreement with Day Wireless for Ashland Police Department and Ashland Fire and Rescue (special procurement) 2. Information on fees associated with sidewalk dining permits within the City 3. Approval of City and Parks contracts with Pathway Enterprises, Inc. to provide janitorial services for City and Parks facilities 4. Award of public contract for municipal audit services to Moss Adams LLP 5. Award of contract for disposal of biosolids to Dry Creek Landfill, Inc. from Waste Water Treatment Plant 6. Assignments of Council Liaisons to Boards, Commissions, and Committees 7. Approval of a water service connection for a residential property located at 597 Benson Way 8. Appointment of Allison Renwick to the Public Arts Commission 9. Confirmation of mayoral appointment of Kelly Madding as City Administrator X. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. Public hearings shall conclude at 9:00 p.m. and be continued to a future date to be set by the Council, unless the Council, by a two-thirds vote of those present, extends the hearing(s) until up to 10:30 p.m. at which time the Council shall set a date for continuance and shall proceed with the balance of the agenda.) None XI. UNFINISHED BUSINESS 1. Award of contract for the Ashland City Hall concepts, design and construction services with ORW Architecture 2. Review and proposed revisions of council rules XII. NEW AND MISCELLANEOUS BUSINESS None XIII. ORDINANCES. RESOLUTIONS AND CONTRACTS None. XIV. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XV. ADJOURNMENT OF BUSINESS MEETING In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735- 2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9, OR ON CHARTER CABLE CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US C I T Y O,F: ASHLAND CITY COUNCIL EXECUTIVE SESSION DRAFT MINUTES Thursday, June 14, 2018 Siskiyou & Lithia Room, 51 Winburn Way 9:00 a.m.- The Ashland City Council held an Executive Session for Employment of Public Officers and Employees pursuant to ORS 192.660 (2)(a),192.660(6) and 192.660(7)(d)(A)-(D). Panel Attendance: Mayor Stromberg Councilor Seffmger Councilor Rosenthal Councilor Jensen Councilor Bachman Councilor Morris Councilor Slattery City Attorney, David Lohman Police Chief, Tighe O'Meara Fire Chief, Mike D'Orazi Community Development Director, Bill Molnar Parks & Recreation Director, Michael Black Finance Director, Mark Welch Human Resources Director, Tina Gray Recruiter, Chuck Rohre Business Owner/Chamber Member, Maria Lange Candidates: Laura Allen Nancy Brewer Paula Brown Adam Hanks Kelly Madding The Executive Session was adjourned at 6:00 PM. Respectfully submitted by: City Recorder, Melissa Huhtala Attest: Mayor Stromberg In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735- 2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). 'CITY OF ~sH.LAND CITY COUNCIL EXECUTIVE SESSION DRAFT NIINUTES Friday, June 15, 2018 Council Chambers 1175 E. Main St. 9:30 AM- The Ashland City Council held an Executive Session for Employment of Public Officers and Employees pursuant to ORS 192.660 (2)(a),192.660(6) and 192.660(7)(d)(A)-(D). Panel Attendance: Mayor Stromberg Councilor Seffinger Councilor Rosenthal Councilor Jensen Councilor Bachman Councilor Morris Councilor Slattery City Attorney, David Lohman Human Resources Director, Tina Gray Recruiter, Chuck Rohre Candidates Attendance: Paula Brown Kelly Madding The Executive Session adjourned at at 1:00 PM Respectfully submitted by: City Recorder, Melissa Huhtala Attest: Mayor Stromberg In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735- 2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). CITY Of -AS H LA N D CITY COUNCIL STUDY SESSION DRAFT MINUTES Monday, June 18, 2018 Council Chambers, 1 175 E. Main Street Mayor Stromberg called the meeting to order at 5:30 PM. Councilor Slattery, Morris, Bachman, Seffinger and Jensen were present. Citizen Budget Committee Members Paula Hyatt, Jim Nagel, Pamela Lucas, Garrett Furuichi and Shane Moran were present. 1. Public Input (15 min) None. II. 1" Year Budget Review and 2°d Year Forecast and Planning Discussion (45 min) Administrative Services Director, Mark Welch presented the City Council and Citizen's Budget Committee with a PowerPoint (see attached). Mr. Welch thanked all for welcoming change. Items discussed were: • Introduction. • Proposed Next Steps. • Next Study Session Meeting is August 20`". • Health Benefit Plan Changes. • Police Officer Funding Options. • Purchases in the last year. • Water Treatment Plant Analysis. • CIP projects completed. • The City's Organizational Chart. • Expense Category Updates: Personnel, Debt, Materials/Services and Capital. • Citywide Revenue. • Consumption Comparisons. • General Fund Expenditures. • General Fund Departments. • General Fund Revenue. • Taxes: Property Tax and Transient Occupancy Tax. • Franchise Fees. • PERS. • General Fund Forecast. III. Updates from the City Administrator (5) Interim City Administrator, Adam Hanks briefly went over the Look Ahead. The Study Session Meeting was adjourned at 7:10 PM Respectfully submitted by: City Recorder, Melissa Huhtala Attest: Mayor Stromberg Note: Topic times are estimates and subject to modification at the meeting * While the study session is not a Budget Committee meeting, appointed members of the Citizens' Budget Committee have been individually invited to attend. Notice is hereby provided that the meeting may involve a quorum of the Citizens' Budget Committee in addition to a quorum of the City Council. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735- 2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). BN 2017/19 First Year Review Second Year Look Ahead June 18, 20I8-Meeting #I Introduction w Appreciation w Purpose of this Meeting w How we got here w Format of the review Update on Citywide changes w Review each expense category across all funds wReview Revenue collections wGeneral Fund detailed review Departmental Review Proposed Next Steps m Tonight's presentation and feedback m Expand on document to include all funds m New Review Document to mirror budget book update. m Continue to send feedback on information requests and comments on improvements m Continue budget discussion on August I th Citywide Update w Health Benefit Plan Changes w Police Officer Funding Purchase of Hardesty Property Purchase of Briscoe Purchase of Mace Water Treatment Plant Analysis Awarded over $XXX in affordable housing grants m $100,000 dedicated from local marijuana tax revenue Health Benefits m Consultant Analysis w Benefit Changes could net 10% Savings (Co-pay increases/co-insurance changes) w Pharmaceutical Formulary is extremely generous CIS is not Currently #I cost category w CIS Premiums below current claim level w $5.2 million versus $6 million budget w January 1, 2020 Purchase a plan offering from CIS Could be PPO/HMO/Co-pay plan/Co-insurance plan w Unknown future premiums w Industry average is around 7%, forecasting 5% due to network change w Potential VEBA changes to assist employees in future years operating Operatinp internal Funds Enterprise Fund, 0. $17,204,778 i $129.107,220 $40,950,579 Governerrintal Special Capital Central Services $69,583,789 Sn,326,301 $12,240,587 $16,322,956 Debt Service Wastewater Insurance a.. OIL= c. 1 $4,964,191 $31,9fA,116 L $1,075,435 $5,995,925 $3,186,095 $13,436,994 Streets Equipment Replacement $25,847,832 $7,816,595 Citywide Review Expense Category Updates-Personnel w Personnel COLA Management-Non Represented 2% Budgeted IBEW - Clerical 1.5% Contractual Laborers 2.1 % Contractual Police 2% Budgeted Fire 2% Budgeted IBEW - Electric I % July, 1.5 % January Contractual Parks 2.8% Contractual Reviewing all open position for potential reorganizations Central Services w Electric/AFN/IT Director Personnel Review May 2016-17 Actual May 2017-18 Actual Change % Change Regular Employees 5,040,717 5,408,907 368,190 7.30% Scheduled Overtime 593,779 566,931 -26,848 -4.52% F LSA 173,773 1901360 16,587 9.55% Holiday Pay Out 175,715 178,892 3,177 1.81% Temporary Employees 116,899 105,722 -11,177 -9.56% Other Pays 59,658 119,736 60,078 100.70% Salaries & Wages 6,160,542 6,570,548 410,006 6.66% group Health Insurance 1,199,949 1,342,391 142,442 11.87% PERS 1,406,258 1,775,460 369,202 26.25% FICA/MEDICARE Contributions 463,029 493,918 30,889 6.67% Workers Compensation 143,245 133,064 -10,181 -7.11% HRAVEBA 139,529 127,211 -12,318 -8.83% Deferred Comp 29,670 301033 363 1.22% Other Benefits 1,868 1,890 22 1.18% Fringe Benefits 3,383,548 3,903,968 520,420 15.38% OT: Total Salary & Wages 9,544,090 10,474,516 930,426 9.75% Public Works down $37,000 Regular Employees: 2 Police Electric down $20,000 Officers, Full year of 3 Fire 0.25 % increase Firefighters, Climate Analyst, olice 0.65% increase COLAs Expense Category Updates-Debt City has made all debt payment Annual s::,t Large to Small - Debt - Principal Debt - Interest a 01,1 / 3W 30M 1 OM r 500 OK ,c.. , 00 2006-D7 ?007-08 2008-09 2009-10 2010-11 2011-12 2012-17 2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2016-18 Actual Actual Actuai Actuat Actual Actual Actual Actual Actual Actual Actual Actual Budget Budget Expense Category Updates-Material and Services m Ashland Forest Division Grant (Contractual Services) May 2016-17 Actual May 2017-18 Actual Change % Change Contractual Services 7,729,833 8,821,459 1,091,626 14.1% Other Purchased Svcs 7,642,456 7,853,831 211,375 2.8% Rental, Repair, Maintenance 3,317,438 3,765,553 448,115 13.5% Supplies 1,057,685 1,200,110 142,425 13.5% Equipment 866,201 1,143,349 277,148 32.0% Programs 545,602 715,369 169,767 31.1% Land 358,529 5S4,997 196,468 54.8% Communications 404,426 368,357 -36,069 -8.9% Commission 6,849 6,557 -292 -4.3% Total 21,929,019 24,429,582 2,500,563 11.4% Expense Category Updates-Capital m Part of the August 17th Meeting m Many Projects are currently in the design phase m Overall Capital Expenditures down $600,000 Citywide Revenue Revenue Collections-Citywide May 2016-17 Actual May 2017-18 Actual Change % Change Charges for Services 52,887,830 55,555,961 2,668,131 5.0% Taxes 17,441,760 18,319,204 877,444 5.0% Franchise Fees 2,864,769 3,016,876 152,107 5.3% Intergovernmental Revenue 1,966,107 2,665,779 699,672 35.6% Operating Transfers In 524,403 2,135,925 1,611,522 307.3% Licenses and Permits 1,352,116 984,889 -367,227 -27.2% Miscellaneous Revenues 674,622 1,393,303 718,681 106.5% Debt Revenue 589,144 485,895 -103,249 -17.5% Interest on Pooled Investments 367,920 661,445 293,525 79.8% Fines and Forfeitures 335,982 486,334 150,352 44.8% Interfund Loan 40,347 52,856 12,509 31.0% Total 79, 045, 000 85, 758, 467 6,713,467 8.5% Consumption Comparisons July 1, 2016-April 30, 2017 July 1, 2017-April 30, 2018 Change % Change Water(CF) 94,435,410.00 101,933,702.00 7,498,292.00 7.94% Electric (kWh) 146,817,992.00 149,654,579.00 2,836,587.00 1.93% v v v v oo~ General Fund Expenditures w 3 Major Departments w Police 46.25 FTE w Fire 37 FTE w Community Development 15 FTE m Other Included Expenditures w TOT Revenue (restricted portion) w Parking w Contractual Services to Parks General Fund Departments 2017-18 Budget Community Cemetery, Development, 420,913 2,657,520 Fire and Rescue Department, Parks , 5,275,270 8,952,843 5 f S Police Department, 7,512,464 General Fund by Expense Type Supplies, 2017-18 Budget 1,533,232 Contractual Services, 7,141,846 h 1;. Salaries and wv Benefits, 13, 643, 870 Internal Charges & Fees, 2,500,012 General Fund by Expense Type Removing Parks 2017-18 Budget Supplies, 8% Contractual Services, 100 Int rnal Charges & K Fees, 13% Salaries and Benefits, 700 General Fund Revenue May 2016-17 Actual May 2017-18 Actual Change % Change Taxes 15,135, 054 15, 979, 444 844,390 5.6% Franchise Fees 2,820,571 2,972,762 152,191 5.4% Charges for Services 1,515,822 1,513,467 -2,355 -0.2% Licenses and Permits 1,352,116 984,889 -367,227 -27.2% Iny,4rgovernmental Revenue 627,620 1,238,395 610,775 97.3% /ines and Forfeitures 335,982 486,334 150,352 44.8% Operating Transfers In 238,201 243,658 5,457 2.3% Miscellaneous Revenues 96,043 59,585 -36,458 -38.0% Interest on Pooled Investments 51,488 89,344 37,856 73.5% Total 22,172, 897 23, 567, 878 1,394,981 6.3% Taxes May 2016-17 Actual May 2017-18 Actual Change % Change Current Property Taxes 9,771,505 10,239,939 468,434 4.8% Electric Utility User Tax 2,902,294 310921188 189,894 6.5% Lodgi ng TOT Tax 2,049,855 2,098,910 49,055 2.4% Prior Property Taxes 223,239 221,521 -1,718 -0.8% Water Surcharge for AFR 161,065 161,548 483 0.3% Marijuana Tax - State Tax 0 961084 961084 - Public Safety Fee 0 611469 611469 - Peg Fees 26,586 7,666 -18,920 -71.2% Taxi Cab Certification 410 180 -230 -56.1% Tota 1 15,135, 054 15, 979, 444 844,390 5.6% Property Taxes m 4.79% Growth through May m Budgeted 3.5% m $50,000 above budget Percentage Increase 15/16 4.46% 16/17 4.050 17/18 4.79% 18/19 Budget 3.50 Transient Occupancy Tax 2.39% Growth through May Budgeted 2% TOT 61 % Change 3,500,000 20% 3,000,000 2,500,000 - 15% 2,000,000 10% 1,500,000 ' s a 1,000,000 5% 500,000 - 0 Ty 0% Ja\ Ja\ Jam Ja\ JD\ Jai a\ ab\ 'b\ 'b\ 'b\ a~ 'b\ 'b\ ti &P 6P &P ti &P ti `J J J ao LJ LJ LJ LJ LJ LJ GJ GJ Lt Ja Ja P P P P P P P P P P P Q~ 0 Q P P P P P P P P P o°~ cP~ 0°4~ cps' o''~ oti~ o''~" oti~ otia otih oti~ o~~' oti~ cps' oti~ oti~ oti~ oti~ otiA oti~' oti`° ti~• tiw ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti do do Franchise Fees w Charged to Utilities May 2016-17 Actual May 2017-18 Actual Change % Change Rate Electric Utility Franchise 1,383,681 1,482,065 98,384 7.1% 10% Vastewater Utility Franchise 407,199 434,226 27,027 6.6% 8% Water Utility Franchise 402,635 435,349 32,714 8.1% 6% Natural Gas Franchise 256,573 243,560 -13,013 -5.1% 5% Sanitary Service Franchise 175,059 186,205 11,146 6.4% 8% Telecommunication Franchise 92,297 88,424 -3,873 -4.2% 5% Charter Franchise 82,793 83,745 952 1.1% 5% Ashland Home Net Franchise 20,334 19,188 -1,146 -5.6% 5% Total 2,820,571 2,972,762 152,191 5.4% Charges for Services May 2016-17 Actual May 2017-18 Actual Change % Change Ambulance Transports 1,072,954 990,225 -82,729 -7.7% Court Diversion Fees 72,602 121,774 49,172 67.7% Police Department Services 83,377 96,088 12,711 15.2% Temp Offensive Surcharge 75,668 96,851 21,183 28.0% Ambulance Membership Svcs 68,489 65,107 -3,382 -4.9% Planning Division Services 32,524 36,996 4,472 13.7% Court Fees and Costs 24,835 22,550 -2,285 -9.2% Emergency Medical Svc Fee 20,770 17,980 -2,790 -13.4% Fire Division Services 15,726 13,604 -2,122 -13.5% Fire Inspection Service 12,790 11,877 -913 -7.1% Sexton Fees 6,830 14,243 7,413 108.5% Building Division Services 6,805 8,695 1,890 27.8% Master Facilities Permit Prgrm 8,180 618 -7,562 -92.4% Liners and Markers 3,809 4,586 777 20.4% Ambulance Transfers 4,298 3,428 -870 -20.2% Graves, Niches & Crypts 2,907 4,183 1,276 43.9% Attorney Fee 1,667 2,760 1,093 65.6% Alarm System Fees 1,590 1,905 315 19.8% Total 1,515,822 1,513,467 -2,355 -0.2% General Fund Personnel May 2016-17 Actual May 2017-18 Actual Change % Change Regular Employees 5,040,717 5,408,907 368,190 7.30% Scheduled Overtime 593,779 566,931 -26,848 -4.52% F LSA 173,773 190,360 16,587 9.55% Holiday Pay Out 175,715 178,892 3,177 1.81% Temporary Employees 116,911 160,616 43,705 37.38% Vacation Pay Out 44,604 50,098 5,494 12.32% Sick Leave Pay Out 13,995 14,683 688 4.92% Duffy Pay 1,047 61 -986 -94.17% Salaries & Wages 6,160,542 6,570,548 410,006 6.66% Group Health Insurance 1,199,949 1,342,391 142,442 11.87% P E RS 1,406,258 1,775,460 369,202 26.25% FICA/MEDICARE Contributions 463,029 493,918 30,889 6.67% Workers Compensation 143,245 133,064 -10,181 -7.11% HRAVEBA 139,529 127,211 -12,318 -8.83% Deferred Comp 29,670 30,033 363 1.22% Other Benefits 1,868 1,890 22 1.18% Fringe Benefits 3,383,548 3,903,968 520,420 15.38% Total General Fund Personnel 9,544,090 10,474,516 930,426 9.75% PERS City of Ashland and Ashland Park Commission PERS and OPSRP Rate Change FY 2019 Current Rates Proposed Pales for FY 20 and FY 21 Tier 112 Tier 1/2 PF OPSRP OPSRP PF w F'F OPSPP ~ - . Salaries 14.49% Total 26.31% 32.07% 19.93% 24.66% Total Impact GENERAL FUND - Admnstr m Depart Alai Court & Adam 44,981 54,040 9,059 PERS 144.038 33,244 37,896 OPSRP 81,000 11,737 16,143 Poke Dep~r 667,198 829,886 162,688 PERS 220,728 50,944 58,073 PERS PF 1,161,935 306,635 372,633 OPSRP 199,729 28,941 39,806 OPSRP PF 1,457,313 280,679 359,373 F;T and Rescva Depwbnent 786,307 976,883 190,576 PERS 105,446 24,568 28,006 PERS PF 1,678,226 442,884 538,207 OPSRP 175,384 25,413 34,954 OPSRP PF 1,523,584 293,442 375,716 Public Works - Cemetery Divisior', 22,886 28,824 5,937 PERS 48,847 11,274 12,852 OPSRP 80,140 11,612 15,972 CommurAyDevekme+rt -Ptarmng 157,961 187,228 29,267 PERS 552,649 127,551 145,402 OPSRP 209,864 30,409 41,826 Commurdy Develcpwi t-Bu33a+g 48,199 62,042 13,843 PERS I 78,237 18,057 20,584 $856,766 OPSRP 208,018 30,142 41,458 TOTAL GENERAL FUND 7,926,138 265,638 749,519 138,254 574,121 1,727,532 302,813 910,840 190,159 735,089 2,138,902 411,370 IL Ik General Fund Materials & Services w Contractual Services: Fire Grant $550,000 Parking Program (not part of May 2016/17 Expenditure ($130,000) Public Art $100,000 Community Development Building Contract $70,000 TOT Restricted Funds $300,000 May 2016-17 Actual May 2017-18 Actual Change % Change Contractual Services 5,928,429 7,153,161 1,224,732 20.7% Supplies 212,190 260,926 48,736 23.0% Other Purchased Svcs 212,538 238,776 26,238 12.3% Rental, Repair, Maintenance 214,263 225,440 11,177 5.2% Communications 133,633 146,279 12,646 9.5% Programs 112,607 74,022 -38,585 -34.3% Equipment 25,348 0 -25,348 -100.0% Commission 11210 473 -737 -60.9% Total 6,840,217 8,099,077 1,258,860 18.4% General Fund Forecast Major Assumptions w Current level of service w Current staffing levels w Benefit increases (PERS, Health Benefit) m Realist revenue growth w Central Service increases EFB is Cumulative: If we address projected deficit in BN 19/21 then EFB could remain positive in future BN 2011/13 BN 2013/15 BN 2015/17 BN 2015/17 BN 2017/19 BN 2019/21 BN 2021/23 BN 2023/25 Actual Actual Actual Budget Budget Forecast Forecast Forecast Total Revenue 31,326,079 43,004,515 48,013,447 47,418,135 51,974,489 56,092,102 59,708,691 63,709,951 Total Expenditure 30,492,742 42,769,932 47,147,697 50,916,052 54,484,048 58,245,827 62,024,449 65,395,561 Annual Revenue Over (under) Expenditures 833,337 234,583 865,750 (3,497,917) (2,509,559) (2,153,725) (2,315,758) (1,685,610) Ending Fund Balance 3,385,681 3,620,264 4,486,014 122,347 1,976,455 (177,270) (2,493,028) (4,178,638) Department Review ;12o1~e9~gev100~' ~e~a $ SO'* ~l es~v S Starting on Page 43 -I" FMI- Next Steps w Budget meeting August 17th w Continue sending feedback w Document will include narrative for all funds w Department section expanded I CITY or -ASHLAND DRAFT MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL JUNE 19, 2018 Council Chambers 1175 E. Main Street L CALL TO ORDER Mayor Stromberg called the Business Meeting to order at 7:03 PM. H. PLEDGE OF ALLEGIANCE III. ROLL CALL Councilor Slattery, Bachman, Jensen, Morris, Seffinger and Rosenthal were present. IV. MAYOR'S ANNOUNCEMENTS The Mayor announced: • Item XI. Senior Issues Ad-Hoc Committee - Scope/Charge will be postponed to a future date. • The order of item XIII was rearranged due to a potential conflict of interest from Councilor Slattery. • Commission Vacancies. V. APPROVAL OF MINUTES 1. Study Session of June 4, 2018 2. Business Meeting of June 5, 2018 Rosenthal/Seffinger moved to approve the Minutes. Discussion: None. All Ayes. Motion passed unanimously. VI. SPECIAL PRESENTATIONS & AWARDS 1. Bee City USA Proclamation-Pollinator Week Jensen read the Bee City USA Proclamation (see attached). Mayor Stromberg announced the Annual Pollinator Garden Tour will be on July l5 `h from 9 AM - l PM. VII. MINUTES OF BOARDS, COMMISSIONS, AND COMMITTEES Ai ort Conservation Forest Lands Historic Housing and Human Srvs. Parks & Recreation Planning Public Arts Transportation Tree Wildfire Mitigation VIII. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. The Mayor will set time limits to enable all people wishing to speak to complete their testimony.) [15 minutes maximum] Joseph Kauth- Border of Ashland and Talent area. Spoke regarding the brightness factor of the sun. He spoke regarding the Ashland Resilience Plan. Huelz Gutcheon- HWY 99- Spoke regarding climate change problems. He spoke that having electric cars would be a good start to making changes. He spoke regarding learning new things and taking action. IX. CONSENT AGENDA 1. Appointment to the CEAP Ad-Hoc Committee Rosenthal pulled this Item. He spoke that the proposed applicant Les Stone is in attendance and that she walked to this meeting. He spoke in support of this selection. 2. Approve Liquor License for Pangea Ashland LLC 3. Approval of MOU for sobering Center Seffinger pulled this Item. She questioned if the Sobering Center is just for people who drink too much or people who use other drugs. Police Chief, Tighe O'Meara explained that this is for all substances where someone cannot take care of themselves. Jensen questioned if there are citations given in this process. Chief O'Meara answered no. He explained that sobering facilities are to be made available for people in need. 4. Approval of MOU for ESCO (Regional 911 Contract) 5. Supplemental Budget - Fire Department- Briscoe Slattery pulled this item. Administrative Services Director, Mark Welch gave a Staff report. He explained that this is a financial statement transaction to keep a positive balance. Slattery/Bachman moved to approve the Consent Agenda. Discussion: None. All Ayes. Motion passed unanimously. X. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. Public hearings shall conclude at 9:00 p.m. and be continued to a future date to be set by the Council, unless the Council, by a two-thirds vote of those present, extends the hearing(s) until up to 10:30 p.m. at which time the Council shall set a date for continuance and shall proceed with the balance of the agenda.) 1. Accessory Residential Units (ARU) Land Use Code Amendments Community Development Director, Bill Molnar and Planning Manager, Maria Harris gave a Staff report. Mr. Molnar spoke regarding then incentives on having a variety of housing on the market. He gave a brief background on this issue so far. Ms. Harris presented Council with a PowerPoint presentation (see attached). Items discussed were: • Proposed Changes. • Benefits of the proposed changes: Preserving neighborhood character. Encouraging ARU development. • Background of ARU's. • ARU Statistics. • Ashland Goals, policies and objectives. • Amendments for small ARUs: less than 500 sq.ft. and attached or within a single-family residence require building permit but exempt from planning approval process. • ARUs that require a planning application. • ARU parking standards. • Planning Commission's recommendations. Planning Commission Chair, Roger Pearce spoke regarding the Planning Commissions point of view. He spoke in support in moving forward with this Ordinance. Mr. Molnar spoke regarding a letter received by Mark Knox (see attached). Mayor Stromberg opened the Public Hearing at 8:07 PM Public Input: None. Mayor Stromberg closed the Public Hearing at 8:07 PM Bachman/Morris moved to approve first reading of an ordinance titled, "An ordinance amending chapters 18.2.2, 18.3.9, 18.4.2, 18.4.3, 18.4.4, 18.5.2 and 18.6.1 of the Ashland Land Use Ordinance relating to accessory residential units and miscellancous edits for clarity and consistency," and to move the ordinance to second reading. Discussion: Bachman spoke that it makes good sense to do this and it will allow for more affordable housing. Morris agreed with Bachman. Jensen spoke in support of the motion. Seffinger spoke that this could address the need for some to create a senior's unit. Roll Call Vote: Councilor Rosenthal, Seftnger, Slattery, Jensen, Morris and Bachman: YES. Motion passed unanimously. XI. UNFINISHED BUSINESS 1. Senior Issues Ad-Hoc Committee - Scope/Charge This item was moved to a future meeting. XII. NEW AND MISCELLANEOUS BUSINESS 1. None XIII. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. Second Reading of an Ordinance amending AMC 4.24.020 allowing for the tax imposed to be set by Resolution with the intent to increase the TOT to 10 percent Administrative Services Director, Mark Welch gave a brief Staff report. Jensen/Morris moved to approve the Second Reading of an Ordinance amending AMC 4.24.020 ,Fly A l 6'~uF J n c V~j A J Lr~V A #1 14, - (C~+VUA sn, cc~U~J rl A G~,V, A G~lyf~j t n, ¢~V3~ `/~J/~, n - C~ / y ) `a R y 7 C C (l / 1 ~ ,/J C\ a l .U C 1 , t ,sV- -71 T F tt .i , ' t City of Ashland PROCLAMATION WHEREAS, pollinator species such as thousands of species of bees37t are essential partners in producing much of our food supply; and t~h~r WHEREAS, pollinator species provide significant environmental • , °u` benefits that are necessary for maintaining healthy, diverse urban and 2J~ suburban ecosystems; and i WHEREAS, pollination plays a vital role for the trees and plants of our f{iMl community, enhancing our quality of life, and creating recreational and economic development opportunities; and WHEREAS, for decades the City of Ashland has managed urban landscapes and public lands that include man municipal arks and reenwa s, as well as wildlife habitats; and a Q WHEREAS, the City of Ashland provides recommendations to developers and residents regarding landscaping to promote wise conservation stewardship, including the protection of pollinators and maintenance of their habitats in urban and suburban environments; and NOW, THEREFORE, the City Council and Mayor do hereby proclaim _ 6tECl,' the week of June 18t"-24 as City of Ashland's observance of: L National Pollinator Week rte` oe And, the City of Ashland as an affiliate of: ,r Bee City USA® rt l `y" and urge all citizens to recognize this observance. (rre`t, J? In witness whereof I have hereunto set my--hand and caused the seal of City of Ashland to be affixed this 19th day of June, 2018. k" it r--, i w :rr .dtlflli,1 '-"„-s.,C~s Lt ! r t ~ ;'-~L..~i wt=-L' 4r `nlufs r.-• ) P r i .17f'i' ~~',_~y `i-' >~r a t [ ~ ^ ~ e ~ rR i 4 yS1ri -.a'x .w , c .177 .g .rte 7ft r , • ~ - 4 - < YVAIk~ 9 r, r_ 1 z. iE t r~ R : 2 i• • I k ~ - L- } r t w x~ i r ' ~ a n i 4i ^,r', t 4 ^ -Al A( ap 1.. '1 - - r 4 • 1 H yt e. iW 1 •~r AFl I b, 1 y/L --a• /.,x y ilaT _ dy, n 4 q!. 1 ! e_w~ I I' rijk ~ I'r ,~r~►}1i1~.~ i ~ wW.~ • 1 ~4' ~ ~ ''l~ • yid'` a K ,71rd4 ~ ~ si _ ~~-f.P•jf a ✓ - fit. r Photo: Scott Strazzante, The Chronicle Proposed Changes • Building Permit =for Accessory Residential Units (ARUs) ✓ less than 500 square feet in size ✓ and located within or attached to asingle-family home • Revisions to ARU requirements • Miscellaneous "Housekeeping" Edits ,n - ZONING 4_. R-1 -3.5 f RR NM i r-~E NN Historic r" ) Nr~ p r ° r . t ' A't t t a' , 9 d e . a i. as 77 >I ialk. y ~ ~ a ~ -,-ui~ tam. ~ p. ,yy ~A_.• r ,,s Ky ' w4E i ~ ~ ~ ~ L'4 7>14 ~ ~ iS iA- ~ ~ r4' ,+F _s. ~ A i' a - u' 'R ~DSaYjF. "S fF i~` a Ski y i .~yyL F'yY'•~ti4iaL ~r~ rlR~~. il S dY~IF l,w-r AV, .D a r,_i~:~. ~,e e- a 8. ~ - ~ sarv~ t_~ v , ' w J ~ y 1 :7t qq r 7 Y > t r IVA- and _ ' R r ~r V' d !+G F M, 9 " Y ."SY]k. 4 F e r ~ ~ ,8 s s~. try _ 4 . - ?9~ ~ ~ •r~.' ~ L``.~-{ - : ON 'I A- 4~. ~ ",t eia ~aN ~ s . ~'~,.ra• ~ ~'-x,~t ~ Ea~~~ ~ ~'~^t~4A: ~ f.a~'' Benefits of Proposed ARU Changes • Incentive for property owners to develop small ARUs o Streamlines approval process by removing planning application • Preserve neighborhood character o Building volume typical of single-family neighborhood • Encourages ARU development by refining existing standards Background f .t. 'u R Ali Q r y Apr T /Owl40 \ i Legislative History • 1991: ARUs allowed in Single-Family Zones (R-1) • 2002: ARUs allowed Rural Residential Zones (RR) • 2008: ARUs allowed in the Multi-Family Zones (R-2 & R-3) • 2015: ARUs changed from conditional to permitted use ARU Stats • 191 ARUs approved since 1991 • Last ten years (2007-2017) 0 79 units approved 0 41 of 79 or 52% units less than 500 sq. ft. • 9,382 lots in the city, 9,621 households, 10,534 housing units o ARUs represent 2% of lots o ARUS represent 1.9% of households o ARUs represent 1.8% of housing units Why Focus on Small ARUs? • 39.4% of Ashland households are single-person occupied • 44.8% of single-person households in Ashland are renter- occupied • 2.03 person per household • Low vacancy rates for rental housing • Purchasing power of two-person median-income household in Ashland is $160,700 0 2017 median home price was $421,500 Ashland Goals, Policies and Objectives • 2015 - 2017 Council Goals and Objectives 5.2.a. Pursue affordable housing opportunities, especially workforce housing. Identify specific incentives for developers to build more affordable housing. • Comprehensive Plan Goal 6.10 Ensure a variety of dwelling types and provide housing opportunities for the total cross-section of Ashland's population, consistent with preserving the character and appearance of the city. • 2012 Ashland Housing Analysis Recommends more rental studio and one-bedroom units. LM 0 1 Regional and State Requirements • 2012 Greater Bear Creek Valley Regional Plan o Ashland didn't identify areas for urban growth boundary expansion. o Minimum of 6.6 dwelling units per acre. • Senate Bill 1051 o At least one accessory dwelling unit for each detached single-family dwelling, subject to reasonable local regulations relating to siting and design. • Statewide Planning Goal 10 o Plan for adequate numbers of needed housing units at price ranges and rent levels which are commensurate with the financial capabilities of Oregon households and allow for flexibility of housing location, type and density. 3. Amendments y a a a dl~L a w« , n „<r~ r kk m 9 ri f mar ti' ! - m ~N 44w3~ ro wrr a~ 3F~ a ti 1 1311 . ry. yL 1 'C t ~ ' n W " •y. a .t 1 -mss ~r, -46 " sy r~r' a - Photo from East, Bay Times ALI, Draft Amendments for Small ARUs • ARUs less than 500 sq. ft. and attached or within a single-family residence require building permit but exempt from planning approval process o "Exempt" small ARUs allowed in R-1, R-1-3.5, RR, NN & NM zones o Existing or new construction o Must meet lot coverage and setbacks of zone o ARU can only be 1/2 the size of the primary residence o Primary residence is required to have two off-street parking spaces o ARU does not require parking on the lot if on-street parking is within 200 feet T - Y1 yf dT V ~ i t i i i 4 9 i ~ .w. sr .E a7 ~ p, '15 w f' ar d S S I L - A s ARUs Requiring Planning Application • ARUs 500 square feet and larger • ARUs in Historic District including exterior changes • Detached ARUs • ARUs in multi-family zones w rr , K x A. ~ r w .b xw F. s F 3 ; - - ° a AF MOM- i d%. y0~, y r { Draft Amendments to ARU Standards • ARU parking requirement changed o Proposed =1off-street parking space for units up to 800 sq. ft. • Existing driveways serving primary residence are sufficient • Parking spaces can be gravel or porous material and don't require parking lot landscaping • ARUs exempt from some of multi-family development standards 0 Delete slope and street requirement in RR zone ZONING R-1 R-1-3.5 Y t ~Ir~r"~" i. q- - RR NM NN - ~i Historic { gg yp i I W E 4- rill-" 4 ~4 am_ I T" C.. - Planning Commission Discussion • Parking and driveway requirements • Building design standards • Addition of ARUs to established subdivisions • Detached ARUs • Historic District • Additional standards in RR zone Dear Ashland City Council, I'm very much in support of the proposed Accessory Residential Unit (ARU) amendments allowing small attached residential units to be an "over the counter permit" in the various zones stated in the Council's Communication. Ashland obviously needs smaller housing units, regardless of type, to meet its current and projected demands. It's my contention the proposed ordinance will provide needed housing for individuals and small families and at the same time provide additional revenue for homeowners dealing with Ashland's ever increasing housing costs. Hopefully, the proposed amendment is so successful the Council one day considers allowing "detached" ARUs as an over the counter permit as well. My only request to the City Council is to ask the City staff to promote the adoption of the ordinance, beyond typical noticing requirements, in order to penetrate those homeowners who currently have an illegal unit(s). There are numerous cases in Ashland where illegal rental units exists, In large part because of regulation and permit costs. Often these illegal units are in substandard and dangerous condition due to "bootlegged" structural, electrical or plumbing modifications. Thus, the proposed ordinance should be heavily advertised as an opportunity to "legalize" these units and entice home owners to come forward and correct these deficiencies through the Ashland Building Department in order to make for safer living conditions. Sincerely, Mark Knox 485 W. Nevada Street Ashland, OR 97520 Council Business Meeting July 3, 0: Title: Approval of Radio Maintenance Agreement with Day Wireless Tighe O'Meara Police Chief From: Mike D'Orazi Fire Chief Tighe. omearat~ashland.or.us Michael.dorazi(@ashland.or.us Summary: Staff is seeking approval of a maintenance agreement with Day Wireless for our portable and mobile radios for the police department, and a similar agreement for mobile radios for the fire department. Actions, Options, or Potential Motions: I move that Council approve a maintenance agreement with Day Wireless for maintenance of the Ashland Police Department's portable and mobile radios in the amount of $8,649 as well as a similar agreement between AFR and Day Wireless for $2,496. Staff Recommendation: Staff recommends that Council approve both maintenance agreements. Resource Requirements: This maintenance agreement costs APD $8,649 and AFR $2,496 and these funds are budgeted for in the approved FY 2018 budget. Policies Plans and Goals Supported: N/A Background and Additional Information: Both the police department and fire department operate radio systems that utilize both portable and mobile radios. These radios serve as a critical link between members of the departments and dispatch. These radio systems serve as the communications backbone of the departments' daily and emergency operations and it is imperative that they be maintained. Day Wireless has been maintaining these radio systems, as well as the county's overall system for some time. Day Wireless has the necessary experience and expertise to continue to maintain this equipment. Attachments: Maintenance Agreement with Day Wireless for police Maintenance Agreement with Day Wireless for fire Page 1 of 1 CITY Of -ASH LAN D Addendum to DAY WIRELESS SYSTEMS MAINTENANCE AGREE, ME NT (the "Agreement") between DAY WIRELESS SYSTEMS("DWS") and THE CITY OF ASHLAND ("USER") To the extent this Addendum and the Terms and Conditions of the Agreement conflict, this Addendum shall control. This Addendum amends the Terms and Conditions of the Agreement as follows: 1. Add the following new Section 21 to the Agreement as follows: 21. The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 27913.220, ORS 279B.230, and ORS 279B.235. 2. Add the following new Section 22 to the Agreement as follows: 22. General Liability Insurance. DWS shall obtain and keep in effect at its sole cost during the term of this Agreement commercial general liability insurance covering bodily injury and property damage. This insurance shall also include contractual liability coverage under this Agreement. The combined single limit per occurrence shall not be less than two million U. S. dollars ($2,000,000). An endorsement to this insurance shall name the City of Ashland, its officials, officers, agents and employees as additional insureds to the extent of DWS' negligence. 3. Add the following new Section 23 to the Agreement as follows: 23. Oregon Tax Law. DWS' compliance with tax law: (1) DWS represents and warrants to the USER that: DWS shall, throughout the term of this Agreement, including any extensions hereof, comply with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to DWS; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. DWS, for a period of no fewer than six (6) calendar years preceding the Agreement Date, has faithfully complied with: Page I of 2: Addendum to Day Wireless Systems Maintenance Agreement between DWS and City of Ashland (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to DWS; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. (2) DWS' failure to comply with the tax laws of the State of Oregon and all applicable tax laws of any political subdivision of the State of Oregon shall constitute a material breach of this Agreement. Except as specifically modified by this Addendum, the Agreement shall remain in full force and effect. IN WITNESS WHEREOF the parties have caused this Addendum to be signed in their respective names by their duly authorized representative as of the dates set forth below. THE CITY OF ASHLAND, OREGON DAY WIRELESS SYS S By: By: (st be OffPa oft e Company) Printed Name: f 1 G~ h~ C1 r"~% Printed Name: (v ! P ` Title: PC / ice-- it i E Title: / Date: Date: Page 2 of 2: Addendum to Day Wireless Systems Maintenance Agreement between DWS and City of Ashland MAINTENANCE AGREEMENT DAYAAM. www.daywireless.com WIRELESS SYSTEMS Company Number 003 ❑13 ❑18 FCC LICENSEE ❑ 04 ❑ 15 ❑ 20 ❑ 11 ❑ 16 ❑ CUSTOMER NO. SHOP NO. 5038 0331 AGREEMENT DATE CONTRACT NO. 05/01/2018 1735-00 COMPANY NAME DATE MAINTENANCE BEGINS TAX ASHLAND, CITY OF 07/01/2018 NA ADDRESS DATE MAINTENANCE ENDS STATE 20 E MAIN ST 06/30/2019 OR CITY STATE ZIP NEGOTIATED BY COUNTY CODE ASHLAND IOR 97520 CE 80 ❑ NEW ❑ SUPERSEDE N ADD/UPDATE ❑ DELETE ❑ CANCEL BILLING PERIOD ❑ MONTHLY N QUARTERLY ❑SEMI ANNUAL ❑ ANNUAL MONTHLY FEEi NO. UNITS 4, ;,,~PEKUNIT TOTAL 1 OTHER 168 ASHLAND 0 0 76 P.D. PORTABLE RADIOS 268 7.43 564.68 21 P.D. MOBILE RADIOS 269 7.43 156.03 2017/2018 MAINTANENCE AGREEMENT TOTAL COST $8649 AGREEMENT COVERS REPAIR LABOR AND ANNUAL FOR ONE YEAR PM FOR CITY OF ASHLAND POLICE MOBILE & CONTRACT PORTABLE RADIOS ONLY -REPAIR PARTS OR "FLAT 2018/2019 RATE REPAIR" EXCLUDED FROM AGREEMENT. THE TERMS AND CONDITIONS OF THIS MAINTENANCE AGREEMENT ARE PRINTED ON THE SECOND PAGE CLIENT DAY WIRELESS SYSTEMS FCC LICENSEE DATE 05/01/2018 WITNESS WITNESS CALVIN EMIGH AUTHORIZED SIGNATURE A HO ED SIGNATURE NOTE: Make sure the second page is initialed by the customer. DAY WIRELESS SYSTEMS MAINTENANCE AGREEMENT TERMS & CONDITIONS 1. DEFINITIONS. "DWS" shall mean Day Wireless Systems. "Licensee" allowance based on the monthly maintenance fee for the time such shall mean and apply to the FCC Licensee, or the User, or the Purchaser of interruption or interference is attributable to the fault of DWS. the equipment to be maintained by the terms of this agreement. 9. FORCE MAJEURE. DWS shall not be responsible for any damages, 2. PERFORMANCE OF MAINTENANCE. DWS agrees to provide delay in performance or failure to perform under this Agreement if such maintenance (as defined below) for the Licensee of the equipment described damage, delay in performance, or failure to perform is caused by any acts or on the previous page of this agreement beginning and ending on the dates omissions of Licensee, fire, strike, or other labor disputes, embargo, indicated in consideration of Licensee's payment of the monthly maintenance government regulations or requirements (legislative, judicial, military or charges. Maintenance shall include the labor and parts required to repair otherwise), power failure, electrical power surges or current fluctuations, equipment, which has become defective through normal wear and usage. lightning strike, flood war, water, the elements, or other forces of nature, 3. MAINTENANCE STANDARDS, delays or failures of transportation, equipment shortages, suppliers' failures a. The equipment will be maintained by DWS in accordance with or other causes beyond its reasonable control, whether or not similar to the these standards: (1) Motorola parts of equal quality will be used; (II) oil, water, foregoing. dust and foreign substances will be removed from the equipment; (III) the 10. AUTOMATIC RENEWAL. After the "Date Maintenance Ends" indicated equipment will not be subject to mechanical abuse; (IV) the equipment will be on the previous page of this agreement, this agreement shall continue for maintained at the levels necessary to provide the required communication; successive additional periods of 1 month, provided that either DWS or the (V) routine maintenance procedures will be followed; and (VI) all Licensee may terminate this agreement on the "Date Maintenance Ends" or maintenance work will be done by qualified technicians. The equipment will thereafter upon 30 days written notice to the other party sent by certified mail be inspected and adjusted periodically and as often as required. to the address indicated herein. Maintenance service does not insure uninterrupted operation of the 11. WAIVER. Failure or delay on the part of DWS to exercise any right, equipment. power, or privilege hereunder shall not operate as a waiver thereof. b. EXCEPT FOR THE FOREGOING, DWS MAKES NO OTHER 12. PRIOR NEGOTIATIONS. This contract constitutes the entire agreement WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED of the parties hereto and shall supersede all prior offers, negotiations, and WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR agreements. PURPOSE. 13. AMENDMENT. No revision of this agreement shall be valid unless 4. TIME AND PLACE OF MAINTENANCE WORK. Maintenance work on made in writing and signed by a General Manager or corporate officer of the base station and other fixed equipment shall be performed at the location DWS and an authorized agent of the Licensee. of the equipment, and the Licensee shall furnish heal, light, and power at the 14. CONTROLLING LAW. The parties agree that the terms of this locations. Mobile units and removable equipment shall be delivered by the Agreement shall be interpreted in accordance with the laws of the state of Licensee to the place of service indicated on the previous page of this Oregon. Licensee agrees that venue of any action to enforce this Agreement agreement. shall be in Multnomah County, Oregon. 5. EXCLUSIONS. 15. WAIVER OF BREACH. The waiver by DWS of any term under this a. This agreement does not include maintenance of any transmission Agreement is not a waiver of any other term or the waiver of the same term line, antennas, tower, or tower lighting, unless such work is described on the at any other time. previous page of this agreement, such maintenance may be furnished upon 16. NOTICES. Any notice required or permitted to be given under any of the request at mileage, materials, and labor rates prevailing at the time of each provisions of this Agreement or governing law shall be given in writing and call. either hand delivered or sent by certified first class mail, postage prepaid, to b. Maintenance does not include the repair or replacement of the Licensee's address on the face of this Agreement and to DWS at 4700 equipment which has otherwise become defective, including, but not limited SE International Way, Milwaukie, OR 97222. to, damage caused by accidents, physical abuse or misuse of the equipment, 17. ATTORNEYS' FEES. In the event DWS retains an attorney to compel acts of God, fires, and does not include extensive maintenance or compliance with the terms of this Agreement, DWS shall be entitled to replacement of equipment due to interference, intermodulation, or other recovery attorneys' fees, collection costs incurred, and any other associated degrading signals causing poor service that the equipment is not designed to fees and charges. reject. 18. SEVERABILITY. If any portion of this Agreement is declared invalid, the 6. PAYMENT. remainder of this Agreement shall continue to be binding upon the parties. a. DWS shall invoice Licensee on a monthly, quarterly, semi annual 19. ENTIRE AGREEMENT. This Agreement constitutes the entire or annual basis for all amounts due under this agreement. Licensee agrees Agreement between Licensee and DWS. This Agreement may be amended that payment shall be made in ten (10) days after the date of the invoice. only by written instrument executed by both parties. b. Each invoice shall be due and payable whether or not the 20. LIMITATION OF LIABILITY. In no event shall DWS be responsible to equipment is operating, and DWS may terminate this agreement by giving the Licensee for any indirect, special or consequential damages or lost profits Licensee ten (10) days notice by certified mail if the Licensee defaults in its arising out of or related to this Agreement or the performance or breach payment to DWS. thereof. DWS's liability to the Licensee, if any, shall in no event exceed the 7. FCC RECORDS. Application and statements of fact when required by total amount paid hereunder to DWS by the Licensee. the Federal Communications Commission must be subscribed and sworn to by the Licensee, and the Licensee is responsible for meeting FCC requirements. However, DWS will provide the Licensee with forms, advice, and technical assistance, including frequency, modulation and power measurements, to aid in meeting those requirements. 8. INTERRUPTION OF SERVICE. The Licensee shall notify DWS in the event of the failure or malfunction of the unit. If DWS fails to repair the unit within a reasonable time, the Licensee shall notify the Headquarters Office in writing. After said notice from the Licensee to the Headquarters Office, DWS DAY" shall be liable for any interruption or interference affecting the use of or transmission through the equipment maintained to the extent of a pro rate WIRELESS SYSTEMS CUSTOMER INITIAL DATE MAINTENANCE AGREEMENT DAY ~ www.daywireless.com WIRELESS SYSTEMS Company Number ® 03 ❑ 13 ❑ 18 FCC LICENSEE ❑ 04 ❑ 15 ❑ 20 ❑ 11 ❑ 16 ❑ CUSTOMER NO. SHOP NO. 5038 0331 AGREEMENT DATE CONTRACT NO. 06/12/2018 1735-00 COMPANY NAME DATE MAINTENANCE BEGINS TAX ASHLAND, CITY OF 07/01/2018 NA ADDRESS DATE MAINTENANCE ENDS STATE 20 E MAIN ST 06/30/2019 OR CITY STATE ZIP NEGOTIATED BY COUNTY CODE ASHLAND OR 97520 CE 80 F ❑ NEW ❑ SUPERSEDE ® ADD/UPDATE ❑ DELETE ❑ CANCEL BILLING PERIOD ❑ MONTHLY ® QUARTERLY ❑SEMI ANNUAL ❑ ANNUAL No. DESCRIPTION TYPE PLACE OF SERVICE MONTHLY FEES UNITS PER UNIT TOTAL 1 OTHER 168 ASHLAND 0 0 28 FIRE MOBILE RADIOS 268 7.43 208 2018-2019 MAINTANENCE AGREEMENT TOTAL COST $2496 AGREEMENT COVERS REPAIR LABOR AND ANNUAL FOR ONE YEAR PM FOR CITY OF ASHLAND FIRE MOBILE RADIOS CONTRACT ONLY -REPAIR PARTS OR "FLAT RATE REPAIR" 2018/2019 EXCLUDED FROM AGREEMENT. THE TERMS AND CONDITIONS OF THIS MAINTENANCE AGREEMENT ARE PRINTED ON THE SECOND PAGE CLIENT DAY WIRELESS SYSTEMS FCC LICENSEE DATE 06/12/2018 WITNESS WITNESS CALVIN EMIGH AUTHORIZED SIGNATURE AUTHORIZED SIGNATURE NOTE: Make sure the second page is initialed by the customer. DAY WIRELESS SYSTEMS MAINTENANCE AGREEMENT TERMS & CONDITIONS 1. DEFINITIONS. "DWS" shall mean Day Wireless Systems. "Licensee" allowance based on the monthly maintenance fee for the time such shall mean and apply to the FCC Licensee, or the User, or the Purchaser of interruption or interference is attributable to the fault of DWS. the equipment to be maintained by the terms of this agreement. 9. FORCE MAJEURE. DWS shall not be responsible for any damages, 2. PERFORMANCE OF MAINTENANCE. DWS agrees to provide delay in performance or failure to perform under this Agreement if such maintenance (as defined below) for the Licensee of the equipment described damage, delay in performance, or failure to perform is caused by any acts or on the previous page of this agreement beginning and ending on the dates omissions of Licensee, fire, strike, or other labor disputes, embargo, indicated in consideration of Licensee's payment of the monthly maintenance govemment regulations or requirements (legislative, judicial, military or charges. Maintenance shall include the labor and parts required to repair otherwise), power failure, electrical power surges or current fluctuations, equipment, which has become defective through normal wear and usage. lightning strike, flood war, water, the elements, or other forces of nature, 3. MAINTENANCE STANDARDS. delays or failures of transportation, equipment shortages, suppliers' failures a. The equipment will be maintained by DWS in accordance with or other causes beyond its reasonable control, whether or not similar to the these standards: (1) Motorola parts of equal quality will be used; (II) oil, water, foregoing. dust and foreign substances will be removed from the equipment; (III) the 10. AUTOMATIC RENEWAL. After the "Date Maintenance Ends" indicated equipment will not be subject to mechanical abuse; (IV) the equipment will be on the previous page of this agreement, this agreement shall continue for maintained at the levels necessary to provide the required communication; successive additional periods of 1 month, provided that either DWS or the (V) routine maintenance procedures will be followed; and (VI) all Licensee may terminate this agreement on the "Date Maintenance Ends" or maintenance work will be done by qualified technicians. The equipment will thereafter upon 30 days written notice to the other party sent by certified mail be inspected and adjusted periodically and as often as required. to the address indicated herein. Maintenance service does not insure uninterrupted operation of the 11. WAIVER. Failure or delay on the part of DWS to exercise any right, equipment. power, or privilege hereunder shall not operate as a waiver thereof. b. EXCEPT FOR THE FOREGOING, DWS MAKES NO OTHER 12. PRIOR NEGOTIATIONS. This contract constitutes the entire agreement WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED of the parties hereto and shall supersede all prior offers, negotiations, and WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR agreements. PURPOSE. 13. AMENDMENT. No revision of this agreement shall be valid unless 4. TIME AND PLACE OF MAINTENANCE WORK. Maintenance work on made in writing and signed by a General Manager or corporate officer of the base station and other fixed equipment shall be performed at the location DWS and an authorized agent of the Licensee. of the equipment, and the Licensee shall furnish heat, light, and power at the 14. CONTROLLING LAW. The parties agree that the terms of this locations. Mobile units and removable equipment shall be delivered by the Agreement shall be interpreted in accordance with the laws of the state of Licensee to the place of service indicated on the previous page of this Oregon. Licensee agrees that venue of any action to enforce this Agreement agreement. shall be in Multnomah County, Oregon. 5. EXCLUSIONS. 15. WAIVER OF BREACH. The waiver by DWS of any term under this a. This agreement does not include maintenance of any transmission Agreement is not a waiver of any other term or the waiver of the same term line, antennas, tower, or tower lighting, unless such work is described on the at any other time. previous page of this agreement, such maintenance may be furnished upon 16. NOTICES. Any notice required or permitted to be given under any of the request at mileage, materials, and labor rates prevailing at the time of each provisions of this Agreement or governing law shall be given in writing and call. either hand delivered or sent by certified first class mail, postage prepaid, to b. Maintenance does not include the repair or replacement of the Licensee's address on the face of this Agreement and to DWS at 4700 equipment which has otherwise become defective, including, but not limited SE International Way, Milwaukie, OR 97222. to, damage caused by accidents, physical abuse or misuse of the equipment, 17. ATTORNEYS' FEES. In the event DWS retains an attorney to compel acts of God, fires, and does not include extensive maintenance or compliance with the terms of this Agreement, DWS shall be entitled to replacement of equipment due to interference, intermodulation, or other recovery attorneys' fees, collection costs incurred, and any other associated degrading signals causing poor service that the equipment is not designed to fees and charges. reject. 18. SEVERABILITY. If any portion of this Agreement is declared invalid, the 6. PAYMENT. remainder of this Agreement shall continue to be binding upon the parties. a. DWS shall invoice Licensee on a monthly, quarterly, semi annual 19. ENTIRE AGREEMENT. This Agreement constitutes the entire or annual basis for all amounts due under this agreement. Licensee agrees Agreement between Licensee and DWS. This Agreement may be amended that payment shall be made in ten (10) days after the date of the invoice. only by written instrument executed by both parties. b. Each invoice shall be due and payable whether or not the 20. LIMITATION OF LIABILITY. In no event shall DWS be responsible to equipment is operating, and DWS may terminate this agreement by giving the Licensee for any indirect, special or consequential damages or lost profits Licensee ten (10) days notice by certified mail if the Licensee defaults in its arising out of or related to this Agreement or the performance or breach payment to DWS. thereof. DWS's liability to the Licensee, if any, shall in no event exceed the 7. FCC RECORDS. Application and statements of fact when required by total amount paid hereunder to DWS by the Licensee. the Federal Communications Commission must be subscribed and sworn to by the Licensee, and the Licensee is responsible for meeting FCC requirements. However, DWS will provide the Licensee with forms, advice, and technical assistance, including frequency, modulation and power measurements, to aid in meeting those requirements. 8. INTERRUPTION OF SERVICE. The Licensee shall notify DWS in the event of the failure or malfunction of the unit. If DWS fails to repair the unit within a reasonable time, the Licensee shall notify the Headquarters Office in DAYA'~- transmission writing. After said notice from the Licensee to the Headquarters Office, DWS shall be liable for any interruption or interference affecting the use of or through the equipment maintained to the extent of a pro rate WIRELESS SYSTEMS I CUSTOMER INITIAL DATE Council Business Meeting July 3, 0: Contract with Pathway Enterprises (QRF) to provide janitorial services Maintenance & Safety Supervisor wes.hoadley(a~ashland.or.us Recreation Supervisor rachel.dials(o~ashland.or.us i Summary: This request for approval is for individual City and Parks contracts with Pathway Enterprises, Inc. to provide janitorial services for City and Parks facilities. Pathway Enterprises, Inc. is a local Qualified Rehabilitation Facility (QRF) that provides janitorial services and in accordance with ORS 279.850, public agencies are required by law to contract with a QRF if the QRF can provide the product or service as specified and required by the public agency. The term for these two janitorial service contracts will be July 1, 2018 to June 30, 2019. Actions, Options, or Potential Motions: The Council, acting as the Local Contract Review Board, moves to approve the award of the contracts for janitorial services to Pathway Enterprises, Inc. Staff Recommendation: City and Parks staff recommend the contracts for janitorial services be awarded to Pathway Enterprises, Inc. Resource Requirements: City and Parks staff budget each fiscal year for janitorial services. The proposed costs for janitorial services (FY 2019) are as follows: City facilities - $128,627.55 Parks facilities - $67,212.50 Policies, Plans and Goals Supported: N/A Background and Additional Information: The previous City and Parks contracts with Pathway Enterprises, Inc. (QRF) expired June 30, 2018. How to do business with a QRF: https://www.ot-egon. Qov/das/Procurement/Pages/QRFhow.aspx Page 1 of 2 CITY OF -ASHLAND Costing workbooks are prepared by Pathway Enterprises, Inc. after the COA Living Wage is reviewed and updated in June every year and they are attached to the contracts as exhibits. Request for Price Approval forms have been submitted with costing workbooks to State of Oregon, Department of Administrative Services (DAS) for pricing approval. City standard contracts have been prepared and approved as to form by Legal and are attached hereto as attachments. Here is screen shot that shows Pathway Enterprises, Inc. is an approved QRF authorized to provide Janitorial Services in Jackson County, Oregon. r Attachments: Contract between City of Ashland and Pathway Enterprises, Inc. for Janitorial Services Contract between Ashland Parks Commission and Pathway Enterprises, Inc. for Janitorial Services Page 2 of 2 CITY OF ASHLAND GOODS & SERVICES AGREEMENT PROVIDER: PATHWAY ENTERPRISES, INC. CITY OF CONTACT: RICHARD SIMPSON ASHLAND 20 East Main Street ADDRESS: 1600 SKY PARK DRIVE, SUITE NO. 101 Ashland, Oregon 97520 MEDFORD, OR 97504 Telephone: 541/488-5587 Fax: 541/488-6006 PHONE: 541-973-2728 FAX: 541-973-2729 EMAIL: rpspei@gmail.com This Goods and Services Agreement (hereinafter "Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and Pathway Enterprises, Inc., a domestic k business corporation ("hereinafter "Provider"), for Janitorial. Services. 1. PROVIDER'S OBLIGATIONS E 1.1 Provide Janitorial Services as set forth in the "SUPPORTING DOCUMENTS" attached hereto and, by this reference, incorporated herein. Provider expressly acknowledges that time is of the essence of any completion date set forth in the SUPPORTING DOCUMENTS, and that no waiver or extension of such deadline may be authorized except in the same manner as herein provided for authority to exceed the maximum compensation. The goods and services defined and described in the "SUPPORTING I DOCUMENTS" shall hereinafter be collectively referred to as "Work." 1.2 Provider shall obtain and maintain during the term of this Agreement and until City's final acceptance of all Work received hereunder, a policy or policies of liability insurance including commercial general liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence for Bodily Injury and Property Damage. 1.2.1 The insurance required in this Article shall include the following coverages: • Comprehensive General or Commercial General Liability, including personal injury, contractual liability, and products/completed operations coverage; and • Automobile Liability • Workers' Compensation 1.2.2 Each policy of such insurance shall be on an "occurrence" and not a "claims made" form, and shall: • Name as additional insured "the City of Ashland, Oregon, its officers, agents and employees" with respect to claims arising out of the provision of Work under this Agreement; • Apply to each named and additional named insured as though a separate policy had been issued to each, provided that the policy limits shall not be increased thereby; • Apply as primary coverage for each additional named insured except to the extent that two or more such policies are intended to "layer" coverage and, taken together, they provide total coverage from the first dollar of liability; • Provider shall immediately notify the City of any change in insurance coverage • Provider shall supply an endorsement naming the City, its officers, employees and agents as additional insureds by the Effective Date of this Agreement; and • Be evidenced by a certificate or certificates of such insurance approved by the City. Page I of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. 1.3 All subject employers working under this Agreement are either employers that will comply with ORS 656.017 or employers that are exempt under ORS 656.126. As evidence of the insurance required by this Agreement, the Provider shall furnish an acceptable insurance certificate prior to commencing any Work under this Agreement. 1.4 Provider agrees that no person shall, on the grounds of race, color, religion, creed, sex, marital status, familial status or domestic partnership, national origin, age, mental or physical disability, sexual orientation, gender identity or source of income, suffer discrimination in the performance of this Agreement when employed by Provider. Provider agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Provider agrees not to discriminate against a disadvantaged business enterprise, minority-owned business, woman-owned business, a business that a service-disabled veteran owns or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A.I 10. 1.5 In all solicitations either by competitive bidding or negotiation made by Provider for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential subcontractor or supplier shall be notified by the Providers of the Provider's obligations under this Agreement and Title VI of the Civil Rights Act of 1964 and other federal nondiscrimination laws. 2. CITY'S OBLIGATIONS 2.1 City shall pay Provider the sum of $128,627.55 as provided herein as full compensation for the Work as specified in the SUPPORTING DOCUMENTS. 2.2 In no event shall Provider's total of all compensation and reimbursement under this Agreement exceed the sum of $128,627.55 without express, written approval from the City official whose signature appears I below, or such official's successor in office. Provider expressly acknowledges that no other person has authority to order or authorize additional Work which would cause this maximum sum to be exceeded and that any authorization from the responsible official must be in writing. Provider further j acknowledges that any Work delivered or expenses incurred without authorization as provided herein is done at Provider's own risk and as a volunteer without expectation of compensation or reimbursement. 3. GENERAL PROVISIONS 3.1 This is a non-exclusive Agreement. City is not obligated to procure any specific amount of Work from Provider and is free to procure similar types of goods and services from other providers in its sole discretion. 3.2 Provider is an independent contractor and not an employee or agent of the City for any purpose. 3.3 Provider is not entitled to, and expressly waives all claims to City benefits such as health and disability insurance, paid leave, and retirement. 3.4 This Agreement embodies the full and complete understanding of the parties respecting the subject matter hereof. It supersedes all prior agreements, negotiations, and representations between the parties, whether written or oral. 3.5 This Agreement may be amended only by written instrument executed with the same formalities as this Agreement. j Page 2 of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. G r 3.6 The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 279B.220, 27913.230 and 279B.235. 3.7 This Agreement shall be governed by the laws of the State of Oregon without regard to conflict of laws principles. Exclusive venue for litigation of any action arising under this Agreement shall be in the Circuit Court of the State of Oregon for Jackson County unless exclusive jurisdiction is in federal court, in which case exclusive venue shall be in the federal district court for the district of Oregon. Each party expressly waives any and all rights to maintain an action under this Agreement in any other venue, and expressly consents that, upon motion of the other party, any case may be dismissed or its venue transferred, as appropriate, so as to effectuate this choice of venue. 3.8 Provider shall defend, save, hold harmless and indemnify the City and its officers, employees and agents from and against any and all claims, suits, actions, losses, damages, liabilities, costs, and expenses of any nature resulting from, arising out of, or relating to the activities of Provider or its officers, employees, contractors, or agents under this Agreement. 3.9 Neither party to this Agreement shall hold the other responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of the other or the other's officers, employees or agents. 3.10 If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable, such provision shall not affect the other provisions, but such unenforceable provision shall be deemed modified to the extent necessary to render it enforceable, preserving to the fullest extent permitted the i intent of Provider and the City set forth in this Agreement. r 4. SUPPORTING DOCUMENTS The following documents are, by this reference, expressly incorporated in this Agreement, and are collectively E referred to in this Agreement as the "SUPPORTING DOCUMENTS:" • The Provider's letter dated June 19, 2018 attached hereto as "Exhibit A", Custodial Service Minimum Standards (Service Requirements and Frequency of Service) attached hereto as "Exhibit B" and the Costing Workbooks (City Hall, Community Development, Municipal Court, Police Department, Police Substation, Service Center, Street/Shop Building, and Floors in City Buildings) attached hereto as "Exhibit C". i 5. REMEDIES 5.1 In the event Provider is in default of this Agreement, City may, at its option, pursue any or all of the remedies available to it under this Agreement and at law or in equity, including, but not limited to. e 5. 1.1 Termination of this Agreement; 5.1.2 Withholding all monies due for the Work that Provider has failed to deliver within any scheduled completion dates or any Work that have been delivered inadequately or defectively; 5.1.3 Initiation of an action or proceeding for damages, specific performance, or declaratory or injunctive relief, 5.1,4 These remedies are cumulative to the extent the remedies are not inconsistent, and City may pursue any remedy or remedies singly, collectively, successively or in any order whatsoever. 5.2 In no event shall City be liable to Provider for any expenses related to termination of this Agreement or for anticipated profits. If previous amounts paid to Provider exceed the amount due, Provider shall pay immediately any excess to City upon written demand provided. t i 6. TERM AND TERMINATION Page 3 of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. I f E 6.1 Term This Agreement shall be effective from July 1, 2018, and shall continue in full force and effect until June 30, 2019, unless sooner terminated as provided in Subsection 6.2. 6.2 Termination 6.2.1 The City and Provider may terminate this Agreement by mutual agreement at any time. 6.2.2 The City may, upon not less than thirty (30) days' prior written notice, terminate this Agreement for any reason deemed appropriate in its sole discretion. F6.23 Either party may terminate this Agreement, with cause, by not less than fourteen (14) days' prior written notice if the cause is not cured within that fourteen (14) day period after written notice. Such termination is in addition to and not in lieu of any other remedy at law or equity. E 7. NOTICE Whenever notice is required or permitted to be given under this Agreement, such notice shall be given in writing to the other party by personal delivery, by sending via a reputable commercial overnight courier, or by mailing using registered or certified United States mail, return receipt requested, postage prepaid, to the i address set forth below: If to the City: City of Ashland Public Works Department Attention: Wes Hoadley 90 N. Mountain Avenue Ashland, Oregon 97520 Phone: (541) 552-2355 x With a copy to: i City of Ashland Legal Department k 20 E. Main Street Ashland, OR 97520 Phone: (541) 488-5350 If to Provider: Pathway Enterprises, Inc. Attention: Richard Simpson 1600 Sky Park Drive, Suite 101 Medford, OR 97504 Phone: 541-973-2728 s 8. WAIVER OF BREACH One or more waivers or failures to object by either party to the other's breach of any provision, term, condition, or covenant contained in this Agreement shall not be construed as a waiver of any subsequent breach, whether or not of the same nature. 9. PROVIDER'S COMPLIANCE WITH TAX LAWS 9.1 Provider represents and warrants to the City that: 9.1.1 Provider shall, throughout the term of this Agreement, including any extensions hereof, comply with: Page 4 of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. i (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS chapters 316, 317, and 318; E (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Provider; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 9.1.2 Provider, for a period of no fewer than six (6) calendar years preceding the Effective Date of this Agreement, has faithfully complied with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Provider; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 9.2 Provider's failure to comply with the tax laws of the State of Oregon and all applicable tax laws of any political subdivision of the State of Oregon shall constitute a material breach of this Agreement. Further, any violation of Provider's warranty, as set forth in this Article 9, shall constitute a material breach of this Agreement. Any material breach of this Agreement shall entitle the City to terminate this Agreement and to seek damages and any other relief available under this Agreement, at law, or in equity. IN WITNESS WHEREOF the parties have caused this Agreement to be signed in their respective names by their duly authorized representatives as of the dates set forth below. CITY OF ASHLAND: PATHWAY ENTERPRISES, INC.: By: By: City Administrator Signature Printed Name Printed Name Date Title i Date Purchase Order No. (W-9 is to be submitted with this signed Agreement) APPROVED AS TO FORM: 11-1,4 Z- A sistant City Attorney -2S--Ile Date Page 5 of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. EXHIBIT A c 4thrpriscs' wa C011111►uuicaliou Te:►ltl~tork Professiolillisnl opporlw►il~• EInc. Office: (511) 973-2728 Fns: (51) 973-2729 Property Service License #40205 CCB License #218417 June 19, 2018 Kari Olson Purchasing Representative City of Ashland 90 N. Mountain Ave. Ashland, OR 97520 Dear Ms. Olson, Pathway Enterprises is requesting a pricing adjustment for services for the City of Ashland. The reason for the changes are as follows: i s • The Department of Labor Wage Survey Data for Jackson County indicate that the average wage paid to janitors in Jackson County in data dated May 2017 was $14.26 per hour and $20.61 per hour for janitorial supervisors. We are requesting an adjustment to 2017 established levels. • Pathway has incorporated the cost of health and life insurances as well as retirement for our employees. In the past Living Wage levels were adequate to compensate these employee benefits but at this time Living Wage is no longer at an adequate level to do this. The impact of the State Minimum Wage law is creating high wage inflation on entry level positions. In our area the wage for janitors increase by $1.00 per hour for every $0.50 increase in minimum wage. A three-year wage history for Jackson County is as follows: 2015 - $12.25 / Hour 2016 - $13.08 / Hour 2017 - $14.26 / Hour In total we are requesting an increase from $115,077.07 to $128,627.55 Annually. This equates to an additional $13,550.48 for a 11.78% increase. I have attached the minimum cleaning standards, and the Janitorial survey used to determine wages in Jackson County. The breakdown of this increase is as follows: 1600 Sky Park Drive Suite No. 101 Medford, OR 9750 aaaaaa.pathaass~-Lic.oro Lilb~ pathway-iuc.org , il~ ('01111 u►luaIluu i c:unnurlt F►ofessiounlis►n OplforUu►il~ a thwfl... Enterprises, III C. Office: (541) 973-2728 Fax: (541) 973-2729 Annual 2017 - 2018 2018 - 2019 City Hall 15,749.34 17,644.67 Community Development 24,075.62 27,345.36 Municipal Court 12,251.32 13,830.53 Municipal Court Offices 1,537.20 1,676.07 Police Department 22,794.65 25,326.67 Police Sub Station 1,790.50 1,991.38 Service Center 18,951.75 20,825.51 Street and Shop 6,655.73 8,029.57 Carpet and Hard Floors 11,270.96 11,957.79 Total 115,077.07 128,627.55 Increase Amount 13,550.48 Increase % 11.78% I appreciate your consideration and look forward to continued services at the City of Ashland. i Sincerely, Richard Simpson Commercial Contracts Director Pathway Enterprises, Inc. II 1600 Sky Park Drive Suite No. 101 Medford, OR 97504 www.pat~wn~ -L►c.org Info a!pnthway-inc.ot•g EXHIBIT B Custodial Service Minimum Standards Customer: City of Ashland Facilities: City Hall, Community Development, Municipal Court, Police Department, Police Sub Station, Service Center, Street and Shop Service Requirements Frequency of Service D N T D 0 0 U1 p 7 cn 35> N N M N 7 N = W i 7C S_ S_ fD R1 G n N fD `G `C `G `C N, N A. General, Private Offices, Lobby, etc. CL 1. Empty wastebaskets and recycle bins. Wash or change liners as needed. (Contractor to supply X liners) 2. Wipe down furniture, including chair arms and legs, side tables, desktops, conference tables, X reception base etc. 3. Dust exposed filing cabinets, bookcases, X shelves and lams r 6. Low dust horizontal surfaces to hand height (70") including sills, ledges, moldings, window X frames, shelves, picture frames, ducts, radiators, etc. 7. High dust above hand height horizontal surfaces, including shelves, moldings, ledges, X vents ducts, etc. 8. Spot clean desk tops when personal items are X removed 9. Sweep and damp mop all resilient and hard X surfaces 10. Clean reception lobby glass including front door X and an other partition or lass door 11. Vacuum carpeted floors in their entirety, X i including under all floor mats I 12. Remove all paper and debris on floors X 13. Remove fingerprints from doors and frames X 14. Dust blinds X 15. Remove dust and cobwebs from ceiling area X 16. Spot cleans ills on carpeted floors X 17. Remove scuff marks from hard floors X 18. Wipe down walls, as needed for large spots X 19. Dam Clean baseboards X 20. Empty outside trash, spot clean cans, replace X liner Service Re uirements Frequency of Service R fJ n D x N o o~ Ito ~D (D m M CD M =3 7C 3 cD o B. Restrooms & Showers 1. Clean, sanitize and polish all fixtures incl. toilet bowls, toilet seats, urinals, hand basins, chrome X fittings. 2. Remove spots/stains from wall areas adjacent to hand basins X 3. Clean and polish all glass and mirrors. X 4. Empty all containers and disposals. Clean and change liners as needed (Contractor to supply X liners). 5. Empty and sanitize interior of sanitary container X 6. Spot clean walls, doors, light switches, dispensers, metal partitions and lockers. X i 7. Clean and sanitize metal partitions and lockers. X € 8. Wash restroom walls & ceilings. X s 9. Remove fingerprints from doors, frames, light switches, kick/push plates, handles, etc. X I 10. Refill all dispensers to normal limits - napkins, soap, tissue, hand sanitizer, towel, cups, liners, etc. X (Supplies furnished by County). 11. Dust all horizontal surfaces to hand height incl. sills, ledges, molding, shelves, frames, ducts, X heating outlets. j 12. Dust all horizontal surfaces above hand height incl. shelves, ledges, moldings, lights, lockers. X ii 13. Vacuum diffuser outlets. X 14. Clean area adjacent to diffuser outlets. X 15. Clean and sanitize shower areas. Remove all soil and soap scum. X 16. Sweep, damp mop and sanitize all hard and resilient floors. X NOTE - ALL WATER FIXTURES WILL BE KEPT CLEAN OF ALL STAINS AND MINERAL BUILD- UP. r I l 3 s s i i E F E S Service Requirements Frequency of Service D D N o O ~ U1 ~ ---ri D ~ As C A rt C Q' (D (D A) SU n 0 e O `G E < E N C. Lunchrooms (Vending) 1. Clean and sanitize tables & chairs, incl. pedestals or legs. X 2. Clean and change liners in all containers and disposals (sanitize interior). X I 3. Clean sink area and fixtures to remove hard X R water build up and coffee staining. 4. Clean all cabinet facings and exteriors of X ~G appliances and equipment. 5. Remove fingerprints from doors, frames, light X switches, kick/push plates, handles. 6. Sweep and mop floor. X } 7. Dust all horizontal surfaces to hand height incl. sills, moldings, ledges, shelves, frames, ducts, X w heating outlets, etc. } 8_ Dust all horizontal surfaces above hand height incl. shelves, ledges, moldings, pipes, ducts, X heating outlets, etc. I Service Requirements Frequency of Service I kJ D D rr N 4 o a (n _ (fi C D (D CL 0 (O (D Al 7 (D 3 to g s m 3 w (D (D (D 0 D. Floors 'Z CL 1. Resilient and Hard s 1, Dust, damp mop or sweep. X 2. Damp mop and sanitize restrooms, labs and X exam rooms. 3. Machine scrub textured non finish floors to X remove build up. D. Floors E D W M S-M Q S-A A AD 2. Carpet 1. Vacuum open areas. X 3 2. Vacuum entire carpet areas. X 3. Remove spots or stains. X 4. Machine extraction entire open areas. 3 f 5. Clean door mats. X i Service Requirements Frequency of Service o o m p a c - S E+ 3 3 m n 0 i n E. Furniture 'Z ~°m i 1. Fabric V n 1. Vacuum. X 2. Shampoo. X E. Furniture D W M S-M Q S-A A AD 2. Plastic 1. Damp wipe. X 2. Complete clean. X E. Furniture D W M S-M Q S-A A AD 3. Leather 1. Damp clean. X 2. Clean, reseal and polish. X I Service Requirements Frequency of Service - > a D CD O o M p c~ M II OJ C co w 0 CD I= :3 c 3 c c o G D LO F. Windows CL 1. Clean Exterior - Outside. X E 2. Clean exterior - inside. X u Service Requirements Frequency of Service 1 :0 9 D D D p E m M C! C! , G. Special Requirements e. D 03 1. Gather recycled paper. X i 2. Lock all exterior doors at designated time X 3. Clean exterior of front entry. X 4. Empty exterior trash receptacles. X 5. Clean & sanitize trash receptacles. X GENERAL REQUIREMENTS: J ➢ Leave notice on any observed irregularities (i.e. defective plumbing, unlocked doors, lights left on, inventory requirements, restroom supplies required, etc.). ➢ 'T'urn off all lights except those to be left on. Close windows and lock all doors, ➢ Cleaning to be completed between 5:OOPM and 4;OOAM. ➢ All custodial staff will comply with Additional Specifications, as stated below. 0 ➢ Material Safety Data Sheets must be provided to the Customer for all cleaning materials and chemicals. Security 1. All employees will have an acceptable security clearance check prior to working in the building. 2. Employees working in law enforcement areas will be CHS trained and approved. 3. All entrance doors must be locked after hours and kept that way. When dumping trash, lock the door when you leave and let yourself in upon completion of dumpuig. All interior doors that are locked must be relocked upon completion of cleaning. Note any discrepancies of unlocked doors that are normally locked. s a i I s I i EXHIBIT C Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program #Inv s o !-8 59-- Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 i SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract- Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises, Inc. Project City of Ashland 2018-2019 City Hall i i Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 1,008.28 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal l $ 1,244.03 Labor Direct Labor (from labor daily worksheet) $ 11,989.47 Overhead See Overhead Worksheet 3,352.49 Delivery Transportation (from Trans & Reserve worksheet) $ Total Before Margin 16,585.99 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 1,058.68 Total Bid Yearly $ 177644.67 Monthly $ 1,470.39 I F i I i I i I DAS Form #12 J Revision 10-03 Page 1 Summary Sheet LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Or, Hall Worker Work Hourly %Pro. Sub- FICA Sub- Workers Sub- Onemploy- Sub- Other Other Benefits Other Benefits Daily/Per Times Annuall-rotal Annual Hours Description Hours Rate ductivity Total I Total 2 comp% Total 3 ment % Total 4 Benefits % Monthly $ SubTotal 5 Item Labor Per Yr. Labor Labor 1 Janitor 2.50 S 14.26 100% $ 35.65 0.0765 S 2.73 2.60% S 0.93 1.42% F0 29.60°/, S 10055 S 50.36 208 $ 10.475.45 520.00 2 Supervisor 1.00 $ 20.61 100% S 20.61 0.0765 S 1.58 2.60% $ 0.54 1.42% 29.$ 6.10 $ 29.12 52 S 1,514.02 52.00 3 S S - S $ $ S 0.00 4 5 $ $ $ $ S 0.00 5 S $ $ - $ - $ S 0.00 6 s s $ s s 0.00 7 s $ - $ $ - $ S 0.00 8 S - $ $ - $ S $ 0.00 9 S - S $ S s 0.00 1 5 - $ S - $ S - S $ $ 0400 11 1 $ S s S S S $ 0.00 12 $ - S $ $ - s S - S 0.00 13 $ $ - s s $ 0.00 14 $ $ s $ S S $ 0.00 15 $ S $ - $ S $ 0.00 Total S 79448 Total $ 11,989.47 572.00 Areas in green are formula driven. List "Other Benefits" Provided Work Hours = Breakdown total "work hours` (see Overview) into hours or partial hours required per time or per item. PTO+ HOLIDAY 17.53% Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. HEALTH+uFE Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 I< Ls4% 29.60% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. S = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g. Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit Is $100, then only $50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly Daily Per Item Labor= The sum of subtotals 1,2,3, 4, and 5 Times Per Year= This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of costing a project, it's important to distinguish between direct and Indirect labor. Indirect labor (supervision, administration, inspection etc.) may be captured as Overhead, and will be discussed later. Direct labor is that which is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 5o% of his/her time in direct labor functions and the other 5056 supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as "work hours'. Thal is, the total number of hours that will be required to complete a task or project. The first and perhaps most critical step is to identify the work and break it down into its component tasks. The description of work or specifications in the contract is the place to start Once the component tasks are identified, the next step is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Par-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required 'work hours.' This number will stay the same regardless of how many people are working. For example, 8'work hours' can be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 100% productivity for 4 hrs. each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 hrs. each. (8x.50=4, 4x2=8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, including those on which you pay workers sub-minimum wages based on productivity, require you to pa a 'prevailing wage.' Check the contracll ALSO, be sure to add the appropriate "Other Payroll Expense" (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, eta) Aker you've established the direct labor cost per time or per item, you can extend the time frame to come up with'the annual requirement. On a service contract multiply the dally cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of $20,800.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cost divide the annual cost by 12 (n this case you get $1733.33/month), DAS Form #12 J Revision 10-03 Page 4 Direct Labor Sheet i i RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 City Hall Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.2500 $ 5.43 $ 65.16 i 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.1250 $ 2.56 $ 30.75 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 5 #98 LT DUTY SCOURING PAD 20/CS 0.72 1.0000 $ 0.72 $ 8.64 6 SUSTAINABLE EARTH #66 DISINFECTANT 42.40 0.1250 $ 5.30 $ 63.60 i 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 0.1250 $ 11.00 $ 132.00 8 SUSTAINABLE EARTH #70 WASHROOM CLEAN 97.44 0.1250 $ 12.18 $ 146.16 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-20 O 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ 31.08 F 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 0.1250 $ 1.43 $ 17.18 22 36" JUMBO DUST MOP FRAME 7.69 0.1250 $ 0.96 $ 11.54 } 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 I 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.2500 $ 4.48 $ 53.73 26 BARKEEPERS FRIEND 20OZ BTL 2.65 1.0000 $ 2.65 $ 31.80 27 24 OZ BTL 1.25 1.0000 $ 1.25 $ 15.00 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ - $ - 31 $ $ - 32 $ $ - 33 $ $ - 34 $ - $ - 35 $ $ - 36 $ $ - t 37 $ $ - F 38 $ $ - t 39 $ $ - 40 $ $ - Total $ 84.02 $ 1,008.28 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. r DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet I RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 City Hall The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ S If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. S Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the asset Is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum $ 551.46 36 12 33% $ 183.82 100% S 183.82 1 $ 183.82 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron $ 79.07 36 12 33% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 5 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 141 1 12 151 1 12 Areas in green are formula driven. Total $ 235.75 Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpris City of Ashland 2018-2019 City Hall V There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go into your overhead, and what that overhead j amount is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your 19 00% organization that go back a year or more. Add together the expenditures that makeup the overhead cost (see worksheel below). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the figure for overhead by The figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If financial records are not available estimate the overhead expenses as best you can, estimate 0 R other costs as best you can, and use the same formula to gel a percentage 2. Enter Allocated Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box if you are confident that you can m allocate overhead Items to this particular project. You can use the Worksheet as a tool (if needed) i 0R 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year. Input all the costs of the antire entity as detailed belo v. Line items which are not detailed below should be input into the cells marked "other'; please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report. Do not include hours which can be classified as management or administrative costs. (Including these costs into the direct labor hour total will deflate the actual costs.) The worksheet hill compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total front Worksheet on Below Overhead per labor hour S Time required to complete contract 572 Total Assigned Overhead 5 - Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense $ 11,440.95 Management Medical Insurance $ 10,920.00 Management Pension Plan Expense S 4,150.00 AGENCY REVENUES= 5,675,312 Sales& Administrative Salaries $ 415,594.00 AGENCY INDIRECT EXPENSES 1,105,315.95 Sales & Administrative Payroll Tax Expense $ 64,354.00 OVERHEAD 19% Sales & Administrative Medical Insurance $ 40,055.00 Sales & Administrative Pension Plan Expense $ 10,200.00 Office Rent Advertising and Public Education S 14,855.00 Background Checks & Urinalysis s 3,189.00 Professional & Accounting 1 Audit Fees 5 81,708.00 Training & Worker Safety Insurance $ 38,192.00 t Telephone S 71185.00 f Utilities S 20,452.00 Property Taxers/Licenses/Fees $ 8,270.00 Dues & Subscriptions Depreclation-office building S 15,061.00 Deprecialion-office equipment 3 14,893.00 l Repairs & Maintenance-office 5 22,744.00 p Cleaning and Maintenance $ 21,346.00 i Office Equipment Rental S ....,.__7,886.00 Office Supplies 5 19,03300 Postage & Freight 5 Rehab S 25,023.00 Miscellaneous Expense S 12 999.00 Bad Debts S INTEREST EXPENSE S 18,981 00 EMPLOYEE ACTIVITIES S _20,02100 AUTO REPAIRS S 15,807.00 MANAGEMENTCONTRACT $ 136457.00 TOTAL INDIRECT COSTS $ 897,848.00 $ 207,467.95 CPI FxW ham aLS (see ink below) 1.65% 1.65% tai I- 1A, aov11e91ma0eau M. Total $ 1,123,553.66 FE OAS Form #12 J Revision 10-03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises, Inc. Project Costing Worksheet City of Ashland 2018-2019 City Hall This category covers any costs associated with delivering your product or service to the buyer. A service contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. i I Services Contract I Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 1 caravan $ - $ - ' 2 $ - $ - 3 $ $ 4 $ - $ - I $ - $ Margin The law allows a "margin held in reserve" This is usually added as a percentage after all other costs have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of "Total Before Margin" 6.0% i 3 f DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet Costing Workbook { For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program f 1 1 t„ Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 i SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. i QRF Name Pathway Enterprises, Inc. Project City of Ashland 2017-2018 Community Development 9 Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 1,008.28 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal1 $ 1,244.03 Labor Direct Labor (from labor daily worksheet) $ 19,264.99 Overhead See Overhead Worksheet $ 5,195.62 Delivery Transportation (from Trans & Reserve worksheet) $ - , Total Before Margin $ 25,704.64 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 1,640.72 s i Total Bid Yearly $ 27,345.36 Monthly $ 2,278.78 E i i i i s i i DAS Form #12 J Revision 10-03 Page 1 Summary Sheet 1 i RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2017-2018 Community Development Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/13X 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.2500 $ 5.43 $ 65.16 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.1250 $ 2.56 $ 30.75 E 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 8 SUSTAINABLE EARTH #70 WASHROOM CLEANE 97.44 0.1250 $ 12.18 $ 146.16 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-20 0 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 i 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ 31.08 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 0.1250 $ 1.43 $ 17.18 22 36" JUMBO DUST MOP FRAME 7.69 0.1250 $ 0.96 $ 11.54 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.2500 $ 4.48 $ 53.73 26 BARKEEPERS FRIEND 20OZ BTL 2.65 1.0000 $ 2.65 $ 31.80 I 27 24 OZ BTL 1.25 1.0000 $ 1.25 $ 15.00 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 t 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ - $ - 31 $ - $ - 32 $ - $ - 33 $ - $ - 34 $ - $ - 35 $ - $ - 36 $ - $ - L. 37 $ - $ - 38 $ - $ - 39 $ - $ - 40 $ - $ - Total $ 84.02 $ 1,008.28 ° Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. i I r DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet r r RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2017-2018 Community Development The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Fioor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project $ Do not include any vehicle or transportation costs in this schedule. $ - Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project #of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum $ 551.46 36 12 33% $ 183.82 100% $ 183.82 1 $ 183.82 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 1C0 % $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron $ 79.07 36 12 33% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 Total $ 235.75 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises, Inc. Citv of Ashland 20174018 Communitv Development Worker Work Hourly % Pro- Sub- FICA Sub- Workers Sub. Unemploy- Sub- Other Other Benefits Other Benefits Daily/Per Times Annualrrotal Annual Hours Description Hours Rate ductivity Total / Total 2 con % Total 3 ment % Total 4 Benefits % Monthly S SubTotal 5 Item Labor Per Yr. Labor Labor 1 Janitor2x 3.25 $ 14.26 100% 5 46.35 0.0765 $ 3.55 2.60% S 1.20 1.42% S 0.66 29.60% $ 13.72 s 65.47 124 S 6809.04 338,00 2 Janitor 3x 100 S 14.26 100% 5 42.78 0.0765 S 3.27 2.60% $ 1.11 1.42% $ 0.61 29.60% $ 12.66 S $0.44 155 S 9427.91 468,00 3 Supervisor 2.00 $ 20.61 1DO% S 41.22 0.0765 $ 3.15 2.60% S 1.07 1.42% $ 0.59 29.60% S 12.20 $ 58.23 52 S 3028.04 104.00 4 $ s $ $ 5 0.00 5 $ S $ s $ $ $ 0.00 6 5 s $ S - $ $ S 0.00 7 S s $ S $ S $ D.00 8 S s $ $ $ $ $ 0.00 9 S S $ S $ S S 0.00 10 S S S S $ $ $ 0.00 11 $ S $ s $ S S 0.00 12 $ S s S $ IS $ 0.00 13 $ S S S S s $ 0.00 14 S - $ $ - $ s S - $ 0.00 15 $ S S S s S $ 0.00 Total $ 184.14 Total $ 19,264.99 910.00 Areas in green are formula driven. List "Other Benefits" Provided Work Hours = Breakdown total 'work hours' (see Overview) into hours or partial hours required per time or per item. PTO + HOLIDAY 11.53% Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. LIFE + HEALTH INSURANCE 16.43% Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.64 29.60% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits % = Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. $ = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $100, then only $50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly Daily Per Item Labor = The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of cosbng a project, it's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection etc) may be captured as Overhead. and wit be discussed later. Direct labor is that which is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time In direct labor functions. The percentage may vary depending on the project or organizaton, For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as'work hours'. That is, the total number of hours that wit be required to complete a task or project. The first and perhaps most critical step Is to identify the work and break It down into is component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step is to estimate the fine that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required 'work hours.' This number will slay the same regardless of how many people are working. For example, 8 "work hours' can be accomplished by 1 person working at 1D0% productivity for B hrs. (1x8=8), or 2 people working at 100% productivity for 4 his. each (2x4=8). It could also be done by 8 people working at 50% productivity for2 hrs. each. (Bx.50=4, 4x2=8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, including gorse on which you pay workers sub-minimum wages based on productivity, require you to pa ,prevailing wage.' Check the contract! Also, be sum to add the appropriate 'Other Payroll Expense' (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, etc) After you've established the direct labor cost per time or per item, you can extend the time frame to come up with the annual requirement. On a service contract multiply the daily cost by the number of days peryear that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days per week and 52 weeks per year, would give you an annual divan labor cost of $20,800.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cost divide the annual cost by 12 (in this case you get 51733.331month). DAB Form #12 J Revision 10.03 Page 4 Direct Labor Sheet OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enlerpris City of Ashland 2017-2018 Community Development There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! 3 Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is { 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records foryour 19.00% organization that go back a year or more. Add together the expenditures that make up the overhead cost ($ea worksheet below). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage or the total cost. If financial records are not available estimate the overhead expenses as best you can, estimate OR other costs as best you can, and use the same formula to gal a percentage. 2. Enter Allocated Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are aAocating to overhead in the box if you are confident that you can s allocate overhead items to [his particular project. You can use the Worksheet as a tool (if needed) OR 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: I To identify overhead costs, you need the financial records for your organization or division for the past year. Input all the costs of the entire entity as detailed belo•.w. Line items which are not detailed below should be input into the cells marked "other"; please include a description Whatyou are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report. Do not include hours vihieh can he classified as management or administrative costs. (including these costs into the direct labor hour total will deflate the actual costs.) The worksheet will compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheet on Below Overhead per labor hour f - Time required to complete contract 910 Total Assigned Overhead $ Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries 5 44,500.00 Management Payroll Tax Expense $ 11 440.95 Management Medical Insurance $ 10,920.00 AGENCY REVENUES=5,675,312 Management Pension Plan Expense S 4,150.00 AGENCY INDIRECT EXPENSES=1,105,315.95 Sales & Administrative Salaries $ 415,594.00 OVERHEAD 19% Sales & Administrative Payroll Tax Expense $ 84,354.00 Sales & Administrative Medical Insurance $ 404055.00 Sales & Administrative Pension Plan Expense S 10,200.00 Office Rent Advertising and Public Education S 14,855.00 Background Checks & Urinalysis $ 3,189.00 Professional & Accounting I Audit Fees $ 81,708.00 Training & Worker Safety Insurance $ 38,192.00 Telephone S 7,185.00 Utilities $ 20,452.00 Property TaxeslLicenseslFees $ 8.270.00 Dues & Subscriptions S 15,061.00 Depreciation-office building Depreciation-office equipment $ 14,89100 Repairs & Maintenance-office $ 22,744.00 Cleaning and Maintenance $ 21 346.00 Office Equipment Rental S 7,886.00 Office Supplies $ 19,033.00 Postage & Freight $ Rehab $ 25,023.00 Miscellaneous Expense 3 12 999.00 Bad Debts S INTEREST EXPENSE $ 18,981.00 EMPLOYEE ACTIVITIES $ 20,021.00 AUTO REPAIRS $ 15,607.00 MANAGEMENT CONTRACT $ 136,457.00 TOTAL INDIRECT COSTS S 897,848.00 $ 207,467.95 CPI Faclar from BLS I- link blow) 1.65% 1.65!6 ~I_.: n't~n our'- o;beeu htT Total f 1,123,557.86 DAS Form #12 J Revision 10-03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises, Inc. Project Costing Worksheet City of Ashland 2017-2018 Community Development This category covers any costs associated with delivering your product or service to the buyer. A service contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 caravan $ - $ - 2 $ - $ - 3 $ - $ - 4 $ - $ - $ - $ - Margin The law allows a "margin held in reserve" This is usually added as a percentage after all other costs j have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. t Enter as a % of "Total Before Margin" i DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program LAI ~ 1 F1 S j. _ I 1 •859-- Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 I I i I r SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet i The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item i charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises, Inc. Project City of Ashland 2018-2019 Municipal Court Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 1,008.28 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal1 $ 1,244.03 Labor Direct Labor (from labor dally worksheet) $ 9,128.87 Overhead € See Overhead Worksheet $ 2,627.80 s d Delivery Transportation (from Trans & Reserve worksheet) $ - t Total Before Margin $ 137000.70 ~ Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 829.83 Total Bid Yearly $ 13,830.53 Monthly $ 1,152.54 1 f 3y3 K i i 4 B t 1 1 4 DAS Form #12 J Revision 10-03 Pagel Summary Sheet E i I i i I i RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Municipal Court Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads i Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.2500 $ 5.43 $ 65.16 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.1250 $ 2.56 $ 30.75 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 5 #98 LT DUTY SCOURING PAD 20/CS 032 1.0000 $ 0.72 $ 8.64 6 SUSTAINABLE EARTH #66 DISINFECTANT 42.40 0.1250 $ 5.30 $ 63.60 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 0.1250 $ 11.00 $ 132.00 8 SUSTAINABLE EARTH #70 WASHROOM CLEAN 97.44 0.1250 $ 12.18 $ 146.16 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-20 O 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ 31.08 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 0.1250 $ 1.43 $ 17.18 22 36" JUMBO DUST MOP FRAME 7.69 0.1250 $ 0.96 $ 11.54 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.2500 $ 4.48 $ 53.73 26 BARKEEPERS FRIEND 20OZ BTL 2.65 1.0000 $ 2.65 $ 31.80 27 24 OZ BTL 1.25 1.0000 $ 1.25 $ 15.00 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 i 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ - $ - 31 $ $ 32 $ - $ 33 $ $ - 34 $ $ 35 $ - $ 36 $ - $ 37 $ - $ 38 $ - $ 39 $ - $ - 40 $ - $ ! Total $ 84.02 $ 1,008.28 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. i DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Municipal Court The following Equipment & Tools are examples which may be required to do thejob: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project #of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum $ 551.46 36 12 33°% $ 183.82 100% $ 183.82 1 $ 183.82 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron 3 79.07 36 12 33% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 Total $ 235.75 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost= Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10.03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Workzhwt Pathway Enterprises, Inc, City of Ashland 2011-2019 Municipal Cowl Worker Work Hourly %Pro- Sub- FICA Sub- Workers Sub- Unempioy- Sub- Other Other Benefits Other Benefits Daily/Per Times AnnualrTotal Annual Hours Description Hours Rate duetivi Total1 Total2 eomp% Total3 ment % Total4 Benefits % Month/ S SubTotal5 Item Labor Per Yr. Labor Labor 1 Janilor2x 2.00 S 14.26 100% $ 28.52 0.0765 S 218 2.60% $ 0.74 1.42% $ 0.40 29.E0% F~i $ 4029 104 s 4190.18 208.00 2 Janitor 3x 1.00 $ 14.26 100% S 14.26 0.0765 S 109 2.60% $ 0.37 1.42% $ 020 2S 20.15 156 s 3 142.64 156.00 3 Su ervisor 1.00 S 20.61 100% S 20.61 0.0765 $ 1.58 2.60% S 0.54 1.42% $ 0.29 2960 % $ 29.12 52 s 1 514.02 52.00 4 Add C et 7.00 S 14.26 100% S 99.82 0.0765 S 7.64 2.60% S 2.60 1.42% S 1.42 29.60% $ 141.02 2 S 282.03 14.00 5 Office Additions 0.00 $ 1426 100 % S - 0.0765 S 2.60% $ - 1.42% S 29.60 % S 20B s 0.00 6 $ S $ - $ S S 0.00 7 $ $ S $ $ s 0.00 8 s S $ $ $ 0.00 9 $ s $ $ $ 0,00 10 $ S S $ $ 0.00 11 $ $ s - S S S 0.00 12 s S $ $ - s $ s 0.00 13 $ S $ S $ $ $ 0.00 14 S $ S $ - $ S S 0.00 15 $ $ $ S - S S S 0.00 Total S 230.57 Total S 9128.87 430.00 Areas in green are formula driven. List "Other Benefits" Provided Work Hours = Breakdown total 'work hours" (see Overview) into hours or partial hours required per time or per item. PTO + HOLIDAY 11.53% subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. LIFE + HEALTH INSURANCE 18.43% Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.154% 29.60% Subtotal 3 - Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits % = Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. $ = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $100, then only $50 would be allocated to this column. Subtotal s = This column may be a combination of both Other Benefits % and Other Benefits Monthly Daily Per Item Labor= The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per item labor Ann-l Labor Hours = Work hours multiplied by times per year For purposes of costing a project, k's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection eta) may be captured as Overhead, and will be discussed later. Direct labor is that which is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time In direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 50% supervising. In that use you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as 'work hours". That is, the total number of hours that will be required to complete a task or project. The first and perhaps most critical step is to identify the work and break it down into its component tasks. The description of work w specifications in the contract is the place to start Once the component tasks are identified, the next step is to estimate the lime that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, fast breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, wvxing floors, etc. (be sure to amount for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of lours per service. That figure is the required "work hours." This number will stay the same regardless of how many people are working. For example, 8'work hours" an be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 100% productivity for 4 hrs. each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 hrs. each. (8x.50=4, 4x2=8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, including those on which you pay workers sub-minimum wages based on productivity, require you to pa a'prevailing wage." Check the contractl Also, be sure to add the appropriate 'Other Payroll Expense' (OPE) for your orgarzaton onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, eta) After you've established the direct labor cost par time or perhem, you can extend the time frame to come up with the annual requ'vemeni. On a service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days par week and 52 weeks per year, would give you an annual direct labor cost of $20,1700.00 par year. (50 x 5 = 400, 400 x 52. 20,800). For monthly cost divide the annual cost by 12 (in this use you get 51733.33/month). DAS Form 012 J Revision 1 D-03 Page 4 Direct Labor Sheet OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enlerpric City of Ashland 2018-2019 Municipal Court 11 There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 'i 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your I 19 00% organization that go back a year or more. Add together the expenditures that make up the overhead cost (see worksheel below). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the figure for overhead by the figure for iota] costs. The result is a percent that represents overhead as a percentage of the total cosl. If financial records are not available estimate the overhead expenses as best you can, estimate O R other costs as best you can, and use the same formula to gel a percentage. 2. Enter Allocated Overhead as a Dollar • Figure um Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box if you are confident that you can 0 k allocale overhead items to this particular project. You can use the Worksheet as a tool (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year. Input all the costs of the entire entity as detailed belox. Line items which are not detailed below should be input into the cells marked -other"; please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report. Do not include hours which can be classified as management or administrative costs. (Including these costs into the direct labor hour total will deflate the actual casts.) The worksheet will wmpule the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheet on Below Overhead per labor hour S Time required to complete contract 430 Total Assigned Overhead S Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense s 11,440.95 Management Medical Insurance s 10,920.00 Management Pension Plan Expense $ 4,150.00 AGENCY REVENUES=5,675,312 Sales 6 Administrative Salades $ 415,594.00 AGENCY INDIRECT EXPENSES = 1,105,315.95 Sales a Administrative Payroll Tax Expense $ 64,354.00 OVERHEAD 19% Sales b Administrative Medical Insurance $ 40 055.00 Sales 6 Adminislralive Pension Plan Expense S 10,200.00 Office Rerd Advertising and Pudic Education $ 14,855.00 I Background Checks b Urinalysis $ 3,189.00 Professional 6 Accounting I Audit Fees S 81,708.00 Training & Worker Safety Insurance S 38,192.00 r Telephone $ 7185.00 Utilities $ 20,452.00 Property Taxes/Licenses/Fees $ 8,270.00 Dues 6 Subscriptions Depreciation-office building S 15,061.00 Depreciation-office equipment S 14,89100 Repairs d Maintenance-office $ 22,744.00 Cleaning and Maintenance S 21,346.00 - f Office Equipment Rental $ 7,886.00 Office Supplies $ 19,033.00 Postage d Freight S t Rehab $ 25 023.00 Miscellaneous Expense $ 12,999.00 Bad Debts $ INTEREST EXPENSE $ 18,981 00 EMPLOYEE ACTIVITIES $ 20021.00 ~f AUTO REPAIRS $ _15,807._00 MANAGEMENT CONTRACT - -S 136457.00 TOTAL INDIRECT COSTS $ 897 848.00 $ 207,467.95 CPI Factor ROm BLS (.a* Ink be" 1.65% 1.65% nRObwor be owrto9lmostr<a, etm Total $ 1,723,553.66 DAS Form 912 J Revision 1003 Page 5 Overhead Computation Sheet i i Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises, Inc. Project Costing Worksheet City of Ashland 2018-2019 Municipal Court This category covers any costs associated with delivering your product or service to the buyer. A service contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per i mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. i i i I i Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost I 1 caravan $ $ - - 2 $ - $ - 3 $ - $ - q $ - $ - $ - $ - Margin The law allows a "margin held in reserve" This is usually added as a percentage after all other costs have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. i Enter as a % of "Total Before Margin" 6.0% C y f 3 t DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet i k l r i Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the s Qualified Rehabilitation Facilities Program Y y a f f f ~d A -,,4. Te iw I t i 4 i i t F OF o Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 c i i 4 i i SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the j following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. I QRF Name Pathwa Enterprises, Inc. Project ]City of Ashland 2018-2019 Municipal Court Extra Rooms Executive Director Signature: Raw Materials Per Time Use -Supplies (from supplies worksheet) $ ~ Equipment, Tools & Subcontracting (from small equipment worksheet) $ Subtotal 11 $ Labor Direct Labor (from labor daily worksheet) ( $ 1,257.05 Overhead 318.45 See Overhead Worksheet b Delivery Transportation (from Trans & Reserve worksheet) $ - Total Before Margin $ 1,575.51 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 100.56 Total Bid Yearly $ 1,676.07 Monthly $ 139.67 i i 1 I i DAS Form #12 J Revision 10-03 Page 1 Summary Sheet E i RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Municipal Court Extra Rooms Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. E i A custodial contract, for example, may require the following for month - Supplies: I Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax i Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 $ $ 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 $ $ 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 $ $ - 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 $ $ - 5 #98 LT DUTY SCOURING PAD 20/CS 0.72 $ $ - 6 SUSTAINABLE EARTH #66 DISINFECTANT 42.40 - $ $ - 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 - $ $ 8 SUSTAINABLE EARTH #70 WASHROOM CLEAN 97.44 - $ $ - E 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 $ $ - 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 $ $ - 11 A-BEN-A-QUI VANDALISM PASTE 12-20 0 8.88 $ $ - 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 - $ $ - 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 - $ $ - 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 - $ $ - 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 - $ $ - 16 LAMBSWOOL DUSTER 28" 312FH 4.93 - $ $ 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 $ $ 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 $ $ 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 - $ $ - 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 $ $ 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 - $ $ 22 36" JUMBO DUST MOP FRAME 7.69 - $ $ - 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 $ $ 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 - $ $ 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 - $ $ 26 BARKEEPERS FRIEND 20OZ BTL 2.65 - $ - $ 27 24 OZ BTL 1.25 - $ $ - 28 CLEANING TOWELS (60) 1935 - $ $ 29 DUSTPAN 2.65 - $ - $ 30 $ - $ - 31 $ - $ 32 $ - $ i 33 $ - $ 34 $ - $ - i 35 $ $ 36 $ - $ 37 $ $ 38 $ $ - 39 $ $ - 40 $ $ - Total $ $ - Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Municipal Court Extra Rooms The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Sumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost erTime Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. is - Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum $ 551.46 36 12 33% $ 183.82 100% $ 183.82 0 $ 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 100% $ 25.57 0 $ 3 Brute 44 Gal w Apron $ 79.07 36 12 33% $ 26.36 100% $ 26.36 0 $ 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 Total $ Areas in green are formula driven. Useful Lire of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR - Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises, inc. City of Ashland 2019-2019 Municipal Court Extra Rooms Worker Work Hourly % Pro- Sub- FICA Sub- Workers Sub- Unemploy- Sub- Other Other Benefits Other Benefits Daily/Per Times Annual/Total Annual Hours Description Houm Rate ductivi Total 1 Total 2 con % Total 3 ment % Total 4 Benefits % Month $ SubTotal 5 Item Labor Per Yr. Labor Labor 1 Janitor 2x S 14.26 100% S 0.0785 $ - 2.60% 3 1.42% 3 - 29.60% S $ 104 $ - 000 2 Janitor 3x S 14.26 100% $ 0.0765 3 2.60% $ 1.42% 3 - 29.60% E 3 156 S 0.D0 3 Supervisor S 20.81 100% $ - 0.0765 $ - 2.60% $ 172% 3 29.60% s - $ 52 S 0.00 4 Add Carpet S 14,26 100Yo S - 0.0765 S - 2.60% s - 1.42% $ - 29.60% s - $ - 2 S - 0.00 5 Office Additions 0.30 S 1426 100% S 4.28 0.0765 $ 0.33 2.50Y. $ 0.11 1.42% S 0.06 29.60% $ 1.27 E 6.04 208 S 1,2 7.05 62.40 6 S $ - s $ - $ $ - S 0.00 7 3 - E $ $ - $ S $ 0.00 8 $ S S - $ - $ S $ 0.00 9 S S $ s - E $ $ 0.00 10 $ s - E - S S - $ S 0.00 11 $ - s - S - $ $ S S 0.00 12 S S - S - S S 13 3 - $ - E - S - $ E $ 1.00 3 S 0.00 14 $ - $ 0.00 15 $ $ S - S - S S E 0.00 Total s 6604 Total $ 1257.D5 62.40 Areas in green are formula driven. List "Other Benefits- Provided Work Hours = Breakdown total work hours" (see Overview) into hours or partial hours required per time or per item. PTO. HOLIDAY 11.53% Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. LIFE - HEALTH INSURANCE 16.43X Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 184% 29.60% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal4 - Computed by multiplying subtotal 1 by your organization's Unemployment Insurance other Benefits Input in this column ilyou calculate Other Benefits by a percentage. Omer Benefits Mo. S = Input in this column if you calculate Other Benefits as a fiat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract If their monthly benefit is $100, then only $50 would be allocated to this column Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly Daily Per Item Labor - The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by dailylper item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of cosfing a project, it's Important to distinguish between direct and indirect labor. Indirect labor (supervision. Administration, inspection etc.) may be captured as Overhead, and wit be discussed later. Direct labor is that which is specifically Identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time In direct labor functions. The percentage may very depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as York tours'. That is, the total number of hours that will be required to complete a task m project. The first and perhaps most critical step is to identity the work and break it down into its component tasks. The description of work or specifications in the contract is the place to star. Once the component tasks are identified, the next stop is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task Then, compile those estimates into a figure that represents the total number of hours par service. That figure is the required "work hours.' This number will stay the same regardless of tow many people are working. For example, B'work hours" can be accomplished by I person working at 100% productivity for 8 his. (1x8=8), or 2 people working at 100% productivity for 4 hrs. each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 Ivs. each, (8x.50=4, 4x2=8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, Including those on which you pay workers sub-minimum wages based on productivity, require you to pa a "prevailing wage' Check the contract! Also, be sure to add the appropriate 'Other Paytdl Expense- (OPE) for your oryankation onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, refirement, etc) After you've established the direct labor coat per time or per hem, you can extend the time frame to come up with the annual requirement On a service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per fine, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of $20,800.00 per year. (80 x 5 v 400, 400 x 52 = 20,800). For monthly cost divide the annual cost by 12 (n this case you get $1733.331mon1h). OAS Form e12 J Revision 10-03 Page 4 Direct Labor Shoal OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpris City of Ashland 20113-2019 Municipal Court Extra Rooms There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your I 19.00% organization that go back a year or more. Add together the expenditures that make up the overhead cost (see worksheet beiosv). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cosL If financial records are not available esfimale the overhead expenses as best you can, estimate 0 R other costs as best you can, and use the some formula to gel a percentage. . Enter Allocate Overhead as a Dollar- Igure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box it you are confident that you can O R allocate overhead Items to this particular project. You can use the Worksheet as a lod Of needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year. Input all the costs of the entire entity as detailed balm Line items which are not detailed below should be input into the calls marked "other"; please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget, Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year and payroll report. Do not include hours which can be classified as management or administrative costs. (Including these costs Into the direct labor hour total will deflate the actual costs.) The worksheet will compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheet on Below Overhead per labor hour f Time required to complete contract 62 Total Assigned Overhead s - I Worksheet WORK AREA: Total Annual O erations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense _ $ 11,440.95 Management Medical Insurance $ 1092000 Management Pension Plan Expense S 4,150.00 AGENCY REVENUES = 5,675,312 Sales a Administrative Salaries $ 415,594.00 AGENCY INDIRECT EXPENSES = 1,105,315.95 Sales a Administrative Payroll Tax Expense $ 64,354.00 OVERHEAD %=19% , Sales a Administrative Medical Insurance $ 40 055.00 Saks a Administrative Pension Plan Expense $ 10,200.00 Office Rant Advertising and Public Education $ 14 855.00 Background Checks a Urinalysis $ 3,189.00 Professional 6 Accounting I Audit Fees $ 81,708.00 Training a Worker Safety Insurance $ 38192.00 Telephone $ 7,185.00 utilities $ 20,45200 Property TaxeslUcenses/Fees $ 8,270.00 Dues a Subscriptions Depreciation-office building $ 15,061,00 Depreclatiomoffice equipment $ 14 893.00 Repairs d Maintenance-office $ 22,744.00 Cleaning and Maintenance $ 21,346.00 Office Equipment Rental $ 7,886.00 Office Supplies $ 19,033.00 Postage a Freight $ Rehab S 25,023.00 - Miscellaneous Expense S 12,999.00 Bad Debts $ INTEREST EXPENSE S 1898100 EMPLOYEE ACTIVITIES $ 20,021.00 AUTO REPAIRS $ 15,807.00 MANAGEMENT CONTRACT $ 136,457.00 TOTAL INDIRECT COSTS $ 697 848.00 $ 207,467.95 CPI FacN awn BLS lace Ink aeles4 195% 1651.4 Aw~w.tik aov/ro9~moaxaw tam Total $ 1,123,653.88 DAS Fortin X12 J k Revision 1003 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises, Inc. Project Costing Worksheet City of Ashland 2018-2019 Municipal Court Extra Rooms This category covers any costs associated with delivering your product or service to the buyer. A service contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 caravan $ - $ - 2 $ - $ - 3 $ - $ - 4 $ - $ - $ - $ - Margin The law allows a "margin held in reserve" This is usually added as a percentage after all other costs have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of "Total Before Margin" 6.0% i i r i i i DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program IIH d t ■ ■ t' j i : tt ~ wk jE l v 3~ I A •.11 -1859- Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 I SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet 3 The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises, Inc. Project City of Ashland 2018-2019 Ashland Police Department Executive Director Signature: i Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 1,008.28 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal1 $ 1,244.03 Labor Direct Labor (from labor daily worksheet) r$ 17,750.97 Overhead See Overhead Worksheet $ 4,812.07 Delivery Transportation (from Trans & Reserve worksheet) $ Total Before Margin $ 237807.07 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 1,519.60 Total Bid Yearly $ 25,326.67 Monthly $ 2,110.56 DAS Form #12 J Revision 10-03 Page 1 Summary Sheet i i RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Ashland Police Department Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely Include not only supplies required to perform the service each month, but also Equipment 8 Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads I i Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.2500 $ 5.43 $ 65.16 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.1250 $ 2.56 $ 30.75 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 5 #98 LT DUTY SCOURING PAD 20/CS 0.72 1.0000 $ 0.72 $ 8.64 6 SUSTAINABLE EARTH #66 DISINFECTANT 42.40 0.1250 $ 5.30 $ 63.60 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 0.1250 $ 11.00 $ 132.00 8 SUSTAINABLE EARTH #70 WASHROOM CLEAN 97.44 0.1250 $ 12.18 $ 146.16 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-20 O 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 p 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ 31.08 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 I 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 0.1250 $ 1.43 $ 17.18 i 22 36" JUMBO DUST MOP FRAME 7.69 0.1250 $ 0.96 $ 11.54 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.2500 $ 4.48 $ 53.73 26 BARKEEPERS FRIEND 20OZ BTL 2.65 1.0000 $ 2.65 $ 31.80 27 24 OZ BTL 1.25 1.0000 $ 1.25 $ 15.00 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ - $ - 31 $ - $ - 32 $ - $ - 33 $ - $ - 34 $ - $ - 35 $ - $ - 36 $ - $ - 37 $ - $ - 38 $ - $ - 39 $ - $ - 40 $ - $ - Total $ 84.02 $ 1,008.28 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Ashland Police Department The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset Is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project #of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum $ 551.46 36 12 33% $ 183.82 100% S 183.82 1 $ 183.62 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron $ 79.07 36 12 33% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 Total $ 235.75 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direst Labor Project Costing Worksheet Pathway Enterprises, Inc. Citv of Ashland 201$-2019 Ashland Police De artmont Worker Work Hourly % Pro- Sub FICA Sub- Workers Sub- Unemploy- Sub- Other Other Benefits Other Benefits Daily/Per Times AnnuaitTotal Annual Hours Description Hours Rate ductivity Total 1 Total 2 Camp% Total 3 ment % Tota14 Benefits % Month) $ SubTatal 5 Item Labor Per Yr. Labor Labor 1 Janitor 4x 3.50 $ 14.26 100% S 49.91 0.0765 S 3.82 2.60% S 1.30 1.42% S 0.71 29.60 % S 14.77 S 70.51 208 S 14,665.63 728.00 2 Supervisor 1.00 $ 20.61 100% $ 20.61 0.0765 $ 1.58 2.60% S 0.54 1.42% $ 0.29 29.60% S 6.10 S 29.12 52 $ 1,514.02 52.00 3 Janitor Wed 1.50 $ 1416 100% $ 21.39 0.0765 $ 1.64 2.60%,S 0.56 1.42% S 0.30 29,60%1 $ 6.33 $ 30.22 52 $ 1,571.32 78.00 4 $ - S $ - $ S $ - $ 5 $ 0,00 - S S - S S - S $ 0.00 6 $ S s s s s 0.00 7 $ $ $ S $ - S e $ s s s 0.00 $ s s s 0.00 9 S S $ - S - S $ S 0.00 10 $ S S S - S - S 5 0.00 11 S $ - $ 0.00 12 $ - S - s - $ - s $ $ 0.00 13 $ - $ - S - s - S $ $ 0.00 14 s - S - S S S S S 0.00 15 $ - S S - $ $ S $ 0.00 Total S 129.84 Total $ 17750.97 858.00 Areas in green are formula driven. List "Other Benefits" Provided Work Hours - Breakdown total 'work hours' (see Overview) into hours or partial hours required per time or per item. P70+ HOLIDAY 11.53% Subtotal 1 =Computed by multiplying hours In work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. HEALTH - LIFE INSURANCE 16.43 Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.64% 29.60% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 - Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. S = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract If their monthly benefit is $100, then only S50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly S. Daily Per Item Labor - The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by dailylper item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of costing a project, it's important to distinguish between direct and Indirect labor. Indirect labor (supervision, administration, inspection eta) may be captured as Overhead, and will be discussed later. Direct labor is that which Is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as York hours'. That is, the total number of hours that will be required to complete a task or project. The first and perhaps most critical step is to identify the work and break it down into its component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step Is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-hem direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floor, eta (be sum to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required 'work hours.* This number will stay the same regardless of how many people are working. For example, 8'vork hours" can be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 100% productivity for4 hrs. each (2x4=8). It could also be done by 6 people wonting at 50% productivity for 2 hrs. each. (8x.50 , 4x2-8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, including those on which you pay workers sub-minimum wages based on productivity, require you to pa a'prevailiing wage' Check the conbactl Also, be sure to add the appropriate 'Other Payroll Expense' (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, etc.) After you've established the direct labor cost per time or per item, you can extend the time frame to come up with,the annual requirement On a service contract multiply the daily Past by the number of days per year that you will provide the service. For example, a service with direct labor Cost of $80.00 per time, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of $20,800.00 per year. (80 x 5 - 400, 400 x 52. 20,8W). For monthly cost divide the annual Past by 12 (In this case you gel $1733.33/month). OAS Form #12 J Revision 10-03 Page 4 Direct Labor Sheet OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpde City of Ashland 2018-2019 Ashland Police Department There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have Mencal records for your 19 009a organization that go back a year or more. Add together the expenditures that make up the overhead cost (see worksheet below). Now add this figure to the Raw materials, Direct labor and Delivery for a Iota] cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If financial records are not available estimate the overhead expenses as best you can, estimate O R other costs as best you can, and use the same formula to get a percentage. 2. Enter Allocated Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box if you are confident that you can OR allocate overhead items to this particular project. You can use the Worksheet as a toil (f needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records far your organization or division for the past year. Input all the costs of the entire entity as detailed below. Line items which are not detailed below should be input into the calls marked "other please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the call below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year and payroll report. Do not include hours which can be classified as management or administrative costs. (Including these costs into the direct labor hour total will denate the actual costs.) The worksheet will compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direcl Later Hours Input Total from Worksheet on Beim Overhead per labor hour S Time required to complete contract 958 Total Assigned Overhead $ Worksheet WORK AREA: Total Annual O erations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries s 44,500.00 Management Payroll Tax Expense $ 11,440.95 Management Medical Insurance S 10,920.00 Management Pension Plan Expense $ 4,150.00 Sales b Administrative Salaries $ 415,594.00 AGENCY REVENUES=5,675,312 Sales d Administrative Payroll Tax Expense S 64,354.00 AGENCY INDIRECT EXPENSES =1,105,315.95 Sales 9 Administrative Medical Insurance $ 40,055.00 OVERHEAD 19% Sales 8 Administrative Pension Plan Expense $ 10,200.00 Office Rent Advertising and Public Education $ 14 855.00 Background Checks & Urinalysis $ 3,109.00 Professional d Accounting I Audit Fees $ _8.1,7_08.00 Training 9 Worker Safety Insurance $ 38192.00 Telephone $ 7,185.00 Utilities $ 20,452.00 Property TaxeslLicenseslFees s 8,270.00 Dues d Subscriptions _ Depreciation-office building S 15,061.00 Depreciation-office equipment $ 14,893.00 Repairs 6 Maintenance-office $ 22,744.00 Cleaning and Maintenance $ 21.346.00 I Office Equipment Rental $ 7,886.00 Office Supplies $ 19 033.00 Postage 9 Freight S - Rehab $ 25 023.00 Miscellaneous Expense $ 12,999.00 Bad Debts S ' Other.' $ 18,98100 Other.' S 20,021.00 Other:' $ 15,807.00 Other.' $ 138 457.00 TOTAL INDIRECT COSTS $ 897 848.00 $ 207,467.95 CPI Factor born BLS late Ink boo" 1.55% IA5% rr.F IM+v, Dh O.vhca/m. sTtwu mm Total $ 1.123.553.66 DAB Form #12 J Revision 10-03 Page 5 Overhead Computation Sheet i I Delivery & Reserve Oregon Department of Administrative Services j Pathway Enterprises, Inc. Project Costing Worksheet City of Ashland 2018-2019 Ashland Police Department This category covers any costs associated with delivering your product or service to the buyer. A service f contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. J~ i Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 $ - $ - 2 $ - $ - 3 $ - $ _ 4 $ - $ - $ - $ - Margin The law allows a "margin held in reserve" This is usually added as a percentage after all other costs have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of "Total Before Margin" I i i i I (I f i I DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program 1~ a~i k - F ~.O .a %859_ Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, 0140 Salem, Oregon 97301 (503) 378-4642 SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises, Inc. Project Cit of Ashland Police Sub Station 18-19 Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 271.29 Equipment, Tools & Subcontracting (from small equipment worksheet) $ - Subtotal1 $ 271.29 Labor Direct Labor (from labor dally worksheet) $ 1,222.24 Overhead See Overhead Worksheet $ 378.36 Delivery Transportation (from Trans & Reserve worksheet) $ - Total Before Margin $ 1,871.90 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 119.48 Total Bid Yearly $ 1,991.38 Monthly $ 165.95 DAS Form #12 J Revision 10-03 Page 1 Summary Sheet RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland Police Sub Station 18-19 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads t I i Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 2S6 4 GL/CS 21.72 0.0833 $ 1.81 $ 21.71 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.0833 $ 1.71 $ 20.49 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 0.0833 $ 0.07 $ 0.88 8 SUSTAINABLE EARTH #70 WASHROOM CLEANE 97.44 - $ - $ - 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 0.0833 $ 0.17 $ 2.01 l 11 A-BEN-A-QUI VANDALISM PASTE 12-20 O 8.88 0.0833 $ 0.74 $ 8.88 j 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 0.0833 $ 0.12 $ 1.42 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.0833 $ 0.50 $ 5.99 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 0.0833 $ 0.22 $ 2.70 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 0.0833 $ 0.67 $ 7.99 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.0833 $ 0.41 $ 4.93 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.0833 $ 0.86 $ 10.36 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.0833 $ 0.70 $ 8.42 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.0833 $ 0.46 $ 5.47 20 CLOSED FOR CLEANING HANGING SIGN 25.10 - $ - $ - 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 - $ - $ - 22 36" JUMBO DUST MOP FRAME 7.69 - $ - $ - 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 - $ - $ - 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 - $ - $ - 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.0833 $ 1.49 $ 17.90 26 BARKEEPERS FRIEND 20OZ BTL 2.65 0.2500 $ 0.66 $ 7.95 27 24 OZ BTL 1.2S 0.0833 $ 0.10 $ 1.25 28 CLEANING TOWELS (60) 19.95 - $ - $ - 29 DUSTPAN 2.65 0.0833 $ 0.22 $ 2.65 30 $ - $ - 31 $ - $ 32 $ - $ 33 $ - $ 34 $ - $ - 35 $ - $ - 36 $ - $ - 37 $ - $ - 38 $ - $ - 39 $ - $ - 40 $ - $ Total $ 22.61 $ 271.29 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland Police Sub Station 18-19 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per rime Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project #of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 12 2 12 3 12 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 Total $ Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises, Inc City of Ashlmhd Police Sub Station 18-19 Worker Work Hourly %Pro- Sub- FICA Sub- Workers Sub- Unemploy- Sub- Other Other Benefits Other Benefits Dallyflaer Times AnnualrTotal Annual Hours Description Hours Rate ductivity Total 1 Total 2 comp% Total 3 meat % Total4 Benefits % Month $ SubToud 5 Item Labor Per Yr- Labor Labor 1 Janitor 1.00 $ 14.26 100% S 1426 0.0765 $ 1.09 260% S 0.37 1.42% S 0.20 29.6.0% S 4.22 S 20.15 52 S 1.047.55 52.00 2 Supervisor 0.50 5 20.61 100% S 10.31 0.0765 3 0.79 2.50% 5 0.27 1.42% S 0.15 29.60% S 3.D5 S 14056 12 5 174.69 6.00 3 $ $ S S $ $ s 0.00 4 $ $ S S" S $ s 0.00 5 $ $ $ - $ S $ s 0.00 6 s $ S- s $ $ s 0.00 7 s $ $ s $ s s 0.00 6 s s $ s s $ s 0.00 s s s $ s s $ s o.oo 10 S $ S - 5 - S $ S 0.00 11 S S - S 5 S S $ O.Do 12 3 S S $ 3 5 S O.DO 13 S S - S - S 5 5 3 0.00 14 S $ 3 S 5 s S O.DO 15 s s s $ $ $ s o.Do Total 3 34.70 Total $ 1222.24 56.00 Areas in green are formula driven. List "Other Benefits" Provided l^lcrk Hours = Breakdown total "work hours' (see Overview) into hours or partial hours required per time or per item. PTO+ HOLIDAY 11.53% Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. HEALTH + LIFE INSURANCE 16.43% Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.64% 29.60% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Omer Benefits % = Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. S = Input in this column H you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $100, then only $50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly S. Daly Per Item Labor = The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by dailylper Rem labor Annual Labor Hours = Work hours multiplied by times per year For purposes of costing a project, it's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection etc.) may be captured as Overhead, and will be discussed later. Direct labor is that which is specifically identifiable as a part of the contract requirements. It should be rated that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of hist her time in direct tabor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as 'work hours'. That is, the total number of hours that will be required to complete a task or project The first and perhaps most critical step is to identify the work and break h down into its component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step is to estimate the time that will be requited to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required 'work hours.' This number will stay the same regardless of how many people are working. For example, 8'work hours' can be accomplished by I person working at 100% productivity for 8 his. (1x8=8), or 2 people working at 100% productivity for 4 hrs. each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 hrs. each. (8x.50--4, 4x2=8) Once you know the total work hours per service or per item, its simply a matter of assigning the appropriate wage to the hours. Some contracts, including those on which you pay workers sub-minimum wages based on product 1", require you to pay a'prevailing wage." Check the contractl Also, be sure to add the appropriate 'Other Payroll Expense' (OPE) foryour organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organizatloll (e.g. medical, dental, retirement, eta) After you've established the direct labor cast per time or per hem, you can extend the time frame to come up with the annual requkemertt. On it service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days per wreak and 52 weeks per year, would give you an annual dired labor coal of $20,800.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cast divide the annual cost by 12 On this case you get 31733.331month). OAS Form #12 J Revision 10.03 Page 4 Direct Labor Sheet i OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpris City of Ashland Police Sub Station 18-19 There are many different ways organizations allocate overhead internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate haw your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your 1900% organization that go beck a year or more. Add together the expenditures that make up the overhead cost (see worksheet below). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If financial records arc not available estimate the overhead expenses as best you can, estimate OR other costs as best you can, and use the some formula to gel a percentage 2. Enter Allocated Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box if you are confident that you can allocate overhead Hems to this particular project. You can use the Worksheet as a tool (if needed) OR 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year. Input all the costs of the entire entity as detailed belt v. Line items which are not detailed balm should be input into the calls marked 'other'; please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report. Do not include hours which can be classified as management or administrative costs. (including these costs into the direct labor hour total will debate the actual costs.) The worksheet will compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheet on Below Overhead per labor hour S Time required to complete contract 58 Total Assigned Overhead $ Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44 500.00 Management Payroll Tax Expense S 11 440.95 Management Medical Insurance $ 10,920.00 Management Pension Plan Expense $ 4,150.00 Sales 8 Administrative Salaries $ 415,594.00 Sales 6 Administrative Payroll Tax Expense $ 64 354.00 Sales d Administrative Medical Insurance $ 40,055.00 AGENCY REVENUES - 5,675,312 Sales 6 Administrative Pension Plan Expense $ 10,200.00 AGENCY INDIRECT EXPENSES = 1,105,315.95 Office Rent OVERHEAD 19% Advertising and Public Education 14 855.00 Background Checks 8 Udnaiysis 3 3,189.00 Professional d Accounting / Audit Fees $ 81,708.00 Training a Worker Safety Insurance 3 38192.00 Telephone S 7,185.00 Utilities S 20,452.00 Property Taxes/Licenses/Fees $ 8,270.00 Dues a Subscriptions Depreciation-office building S 15 061.00 Depredation-office equipment S 14 893.00 Repairs d Maintenance office S 22,744.00 Cleaning and Maintenance S 214346000 Office Equipment Rental s 7,886.00 Office Supplies S 19,033.00 Postage 8 Freight S Rehab S 25 023.00 Miscellaneous Expense S 121999.00 Bad Debts $ INTEREST EXPENSE $ 18,981 W EMPLOYEE ACTIVITIES S 20 021.00 AUTO REPAIRS S 15,8D7.00 MANAGEMENT CONTRACT $ 136,457.00 TOTAL INDIRECT COSTS S 897,84&00 $ 207 467.95 CPI Factor ham BLS (sae Ink balar4 165% 1.65% Total $ 1,123,553.66 DAS Form #12 J Revision 10-03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises, Inc. Project Costing Worksheet City of Ashland Police Sub Station 18-19 This category covers any costs associated with delivering your product or service to the buyer. A service contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 caravan $ - $ - 2 $ - $ - 3 $ - $ - 4 $ - $ - $ - $ - Margin The law allows a "margin held in reserve" This is usually added as a percentage after all other costs have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. k Enter as a % of "Total Before Margin" 6.0% DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program i ~~yF, -..O pI .4 I Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 : I SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises, Inc. Project Ashland Service Center 2018-2019 Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 1,008.28 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal l $ 1,244.03 Labor Direct Labor (from labor daily worksheet) $ 14,375.10 Overhead See Overhead Worksheet $ 37956.85 Delivery Transportation (from Trans & Reserve worksheet) $ i Total Before Margin $ 197r) 75.98 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 1,249.53 i Total Bid Yearly $ 20,825.51 Monthly $ 1,735.46 i i DAS Form #12 J Revision 10-03 Page 1 Summary Sheet RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. Ashland Service Center 2018-2019 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads I I` Per Use/Per Item Manufactured -Supplies f Item Unit Units Needed Monthly Annual Price Per Month Cost Cost r 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 r 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.2500 $ 5.43 $ 65.16 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.1250 $ 2.56 $ 30.75 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 8 SUSTAINABLE EARTH #70 WASHROOM CLEANE 97.44 0.1250 $ 12.18 $ 146.16 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-20 0 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ . 31.08 I 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 0.1250 $ 1.43 $ 17.18 ! 22 36" JUMBO DUST MOP FRAME 7.69 0.1250 $ 0.96 $ 11.54 f 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.2500 $ 4.48 $ 53.73 26 BARKEEPERS FRIEND 200Z BTL 2.65 1.0000 $ 2.65 $ 31.80 27 24 OZ BTL 1.25 1.0000 $ 1.25 $ 15.00 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ - $ - 31 $ - $ - 32 $ - $ - 33 $ - $ - 34 $ $ - 35 $ - $ - 37 $ - $ - 38 $ - $ - 39 $ - $ - 401 1 $ - $ - Total $ 84.02 $ 1,008.28 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. Ashland Service Center 2018-2019 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment Is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money Is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum $ 551.46 36 12 33% $ 183,82 100% $ 183.82 1 $ 183.82 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron $ 79.07 36 12 33% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 141 i 12 151 1 12 Total $ 235.75 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. OAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises, Ina Ashland Service Center 2019.2019 Worker Work Hourly % Pro- Sub, FICA Sub- Workers Sub- Unemploy- Sub- Other Other Benefits Other Benefits Daily/Per Times AnnuallTotal Annual Hours Description Hours Rate ductivi Total 1 Total 2 Carl Total 3 merht % Total4 Benefits % Month i SubTetat 5 Item Labor Per Yr. Labor Labor 1 Janitor 3.25 $ 14.26 100% $ 46.35 0.0765 S 3.55 2.60% S 1.20 1.42% S 0066 29.60% $ 13.72 $ 65.47 1208 E 13618.09 67600 2 Su ervisor 0.50 $ 20.61 100% S 10.31 0.0765 $ 0.79 2.60 % 5 027 1.42% S 0.15 29.60 % S 3.05 E 14.56 S 757.01 26.00 3 S S S S - S E $ o.00 4 S - S S - S - E - S S 0.00 5 $ s s- s $ s s 0.00 6 S S S S S S S 0.00 7 S S $ S - S 5 - $ 0.00 8 S - S - S - S S E S 0.00 9 $ - S - S - 5 - S S $ 0.00 10 $ S s - 5 S S S 0.00 11 S 3 $ 5 $ $ S 0.00 12 S S S S $ - $ S 0000 13 S 5 $ $ S - $ S 0.00 14 S S S S S E S 0.00 15 S S $ - S - E E $ 0.00 Total S 80.03 Total $ 14 375.10 702.00 Areas in green are formula driven. List "Other Benefits" Provided Work Hours = Breakdown totai'work hours' (see Overview) into hours or partial hours required per time or per item. PTO + HOLIDAY 11.53% Subtotal 1 " Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. HEALTH + LIFE INSURANCE 15.43% Subtotal 2 - Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 164% 29,60% Subtotal 3 - Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits % = Input in this column R you calculate Other Benefits by a percentage. Other Benefits Mo. S = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $100, then only $50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly Daily Per Item Labor - The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per Rem labor Annual Labor Ncurs = Work hours multiplied by times per year For purposes of costing a project, it's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection etc.) may be captured as Overhead, and will be discussed later. Direct labor is that which Is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as 'work hours'. That is, the total number of hours that will be required to complete a task or project The first and perhaps most critical step is to identify the work and break it doom into its component [asks. The description of work m specifications in the contract is the place to start Once the component tasks are identified, the next step is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial conhacl, fit breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, Weaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required 'work hours.' This number wig stay the same regardless of how many people are working. For example, e' work hours' can be accomplished by I person working at 100% productivity for 8 his. (1x8=8), or 2 people working at 1000% productivity for 4 hrs. each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 has. each. (8x50=4, 4x2=8) Once you know the total work hours per service or per Rem, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, Including those on which you pay workers sub-minimum wages based on productivity, require you to pay a'prevailing wage' Check the contract! Also, be sun to add the appropriate 'Other Payroll Expense' (OPE) for your organization onto the wage, Matching FICA Workers' Comp at your cast Cost of other benefits paid by your organization (e.g. medical. dental, retirement, etc.) After you've established the direct labor cost per time or per item, you can extend the time frame to come up with the annual requirement On a service contract multiply the dally cost by the comber of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of $20,800.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cos[ divide the annual cost by 12 (n this case you get $1733.331mor lit). OAS Form *12 J Revision 10.03 Page 4 Direct Labor Sheet OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Workshwt Pathway Enterpd! Ashland Service Center 2018-2019 There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your f 19 organization that go back a year or more. Add together the expenditures that make up the overhead cost (see l worksheet below). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If financial records are not available estimate the overhead expenses as best you can, estimate O R other costs as best you can, and use the same formula to get a percentage. 2. Enter Allocated Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box # you are confident that you can OR alfocate overhead hems to this particular project. You can use the Worksheet as a tool (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year. Input all the costs of the entire entity as detailed below. Line items which are not detailed below should be input into the cells marked mother"; please include a description, Whatyou are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the cell below the total direct tabor hcurs paid out by your entire organization for the same period. These figures should be found on the year end payroll report. Do not include hours vhich can be classified as management or administrative costs. (Including these costs into Me direct labor hour total will deflate the actual costs.) The worksheet will compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheat on Below Overhead per labor hour $ Time required to complete contract 702 Total Assigned Overhead S _ y i Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense S 11,440.95 Management Medical Insurance S 10,920.00 Management Pension Plan Expense S 4,150.00 AGENCY REVENUES= 5,675,312 Sales 6 Admirdstrative Salaries $ 415,594.00 AGENCY INDIRECT EXPENSES =1,105,315.95 Sales & Administrative Payroll Tax Expense S 64,354.00 OVERHEAD 19% Sales d Administrative Medical Insurance S 40 055.00 Sales 6 Administrative Pension Plan Expense $ 10,200.00 Office Rent Advertising and Public Education S 14 855.00 Background Checks d Urinalysis S 3,189.00 Professional 3 Accounting I Audit Fees $ 81,708.00 Training 6 Worker Safety Insurance $ 38,192.00 Telephone $ 7,185.00 Utilities S 20,452.00 Property TaxesnJoinseslFees $ 8,270.00 Does 6 Subscriptions Depreciation-office building $ 15,061000 Depreciation-office equipment $ 14,893.00 Repairs 6 Maintenance-office $ 22,744.00 Cleaning and Maintenance $ 21 346.00 Office Equipment Rental S 7,886.00 Office Supplies S 19,033.00 Postage 6 Freight $ - Rehab S 25,023.00 i Miscellaneous Expense $ 12 999.00 Bad Debts S INTEREST EXPENSE $ 18 961.00 EMPLOYEE ACTIVITIES $ 20,021.00 AUTO REPAIRS S 15,807.00 MANAGEMENT CONTRACT S 136,457.00 TOTAL INDIRECT COSTS $ 897 848.00 $ 207 467.95 CPI Factor hem 111.8 (sea Fnk Wow) IAS% 1.65% Hm LN- bb -ft9hnaewu ben Total S 1,123,563.66 DAB Form #12 J Revision 10-03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises, Inc. Project Costing Worksheet Ashland Service Center 2018-2019 This category covers any costs associated with delivering your product or service to the buyer. A service contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 caravan $ - $ - 2 $ - $ - V 3 $ - $ - ! a $ - $ $ - $ - Margin The law allows a "margin held in reserve" This is usually added as a percentage after all other costs have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. k Enter as a % of "Total Before Margin" 6.0°o r Y s ~ DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet i Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program Y~x.■ OIL- Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 I SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to I be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item I charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. i S QRF Name Pathway Enterprises, Inc. Project City of Ashland 2018-2019 Street and Shop Executive Director Signature: Raw Materials _ Per Time Use - Supplies (from supplies worksheet) $ 40238 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 25.57 Subtotal1 $ 428.36 i Labor Direct Labor (from labor daily worksheet) $ 5,593.83 s Overhead j See Overhead Worksheet $ 1,525.62 i Delivery Transportation (from Trans & Reserve worksheet) $ Total Before Margin- 7,547.80 I Reserve s Margin Held in Reserve (from Trans & Reserve worksheet) $ 481.77 i Total Bid Yearly $ 8,029.57 Monthly $ 669.13 x t E i k I i i i I gi i F DAS Form #12 J Revision 10-03 Page 1 Summary Sheet a RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Street and Shop Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as 'Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads I Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost i 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 1 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.0833 $ 1.81 $ 21.71 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.0833 $ 1.71 $ 20.49 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 0.0833 $ 0.07 $ 0.88 5 #98 LT DUTY SCOURING PAD 20/CS 0.72 0.0833 $ 0.06 $ 0.72 6 SUSTAINABLE EARTH #66 DISINFECTANT 42.40 0.0833 $ 3.53 $ 42.38 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 0.0833 $ 7.33 $ 87.96 8 SUSTAINABLE EARTH #70 WASHROOM CLEAN 97.44 0.0833 $ 8.12 $ 97.40 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 0.0833 $ 0.17 $ 2.01 11 A-BEN-A-QUI VANDALISM PASTE 12-20 0 8.88 0.0833 $ 0.74 $ 8.88 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 0.0833 $ 0.12 $ 1.42 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.0833 $ 0.50 $ 5.99 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 0.0833 $ 0.22 $ 2.70 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 0.0833 $ 0.67 $ 7.99 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.0833 $ 0.41 $ 4.93 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.0833 $ 0.86 $ 10.36 f 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.0833 $ 0.70 $ 8.42 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.0833 $ 0.46 $ 5.47 20 CLOSED FOR CLEANING HANGING SIGN 25.10 - $ - $ - 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 $ $ 22 36" JUMBO DUST MOP FRAME 7.69 $ - $ 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.0833 $ 1.37 $ 16.43 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.0833 $ 1.47 $ 17.65 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.0833 $ 1.49 $ 17.90 26 BARKEEPERS FRIEND 200Z BTL 2.65 0.2500 $ 0.66 $ 7.95 27'24 OZ BTL 1.25 0.0833 $ 0.10 $ 1.25 28 CLEANING TOWELS (60) 19.95 - $ - $ - 29 DUSTPAN 2.65 0.0833 $ 0.22 $ 2.65 30 $ - $ - 31 $ $ 32 $ - $ 33 $ $ - 34 $ $ - 35 $ - $ y 36 $ - $ 37 $ - $ 38 $ - $ 39 $ $ 40 $ - $ Total $ 33.57 $ 402.78 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. r DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018-2019 Street and Shop The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum 3 551.46 36 12 33% $ 183.82 100% S 183T2- 0 $ - 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 100% S 25.57 1 $ 25.57 3 Brute 44 Gal w Apron 3 79.07 36 12 33% $ 26.36 100% S 26.36 0 $ 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 41 1 12 15 12 Total $ 25.57 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost= Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland 2018.2019 Stroct and Shop Worker Work Hourly % Pro- Sub- FICA Sub- Workers Sub- unemploy- Sub- Other Other Benefits Other Benefits DailylPer Times Annualfrotal Annual Hours Description Hours Rate ductivity Total 1 Total 2 comp% Total 3 merit % Total 4 Benefits % Monthly $ SubTotai 5 Item Labor Per Yr. Labor Labor 1 Janitor 1.25 S 1111 1 DO% S 18.51 0.0765 S 1.42 260% S 0.48 1 42% $ 026 29.60% $ 5.48 $ 26.15 156 $ 4,079.81 195.00 2 Supervisor 1.00 s 20.61 1DO% j20.61 0.0765 S 1.51 2.60% S 0.54 42% S 0.29 29.60% 5 6.10 S 29.12 52 S 1 514.02 52.00 3 s S - S - 5 o.DO 4 S S 0.00 s S s S 0.00 6 S S S S s 0.DO 7 S S s 5 O.Do S S S S O.Do 9 S S 0.00 10 $ $ S S S a 0.00 11 s s $ 5 $ $ s 0.00 12 $ s S - S S $ 0.00 13 $ 5 S S S S s 0.00 14 S s S S - S s $ 0.00 15 $ S S S s S s 0.00 Total S 55.27 Total $ 6,593.83 247.00 Areas In green are formula driven. List ^Other Benelks" Provided Work Hours = Breakdown total 'work hours' (see Overview) into flours or partial hours required per time or per item. PTO + HOLIDAY 11.53% Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage If required) and then multiply by % productivity. HEALTH + LIFE INSURANCE Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K ted% 29.60% Subtotal 3 . Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 - Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits % = Inlpul in this column if you calculate Other Benefits by a percentage. other Benefits Mo. $ = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract if their monthly benefit is $100, then only $50 would be allocated to this column. Subtotal 5 - This column may be a combination of both Other Benefits % and Omer Benefits Monthly S. Daily Per Item Labor = The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by dailyfper item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of costing a project, it's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection efa) may be captured as Overhead, and will be discussed later. Direct labor is that Which is specifi ally identifiable as a pan of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may wry depending on the project or organization. For example, a supervisor may spend 50% of hisRher time in direct labor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as "work hours", That is, the total number of hours that will be required to complete a task or project. The first and perhaps most critical step is to identify the work and break it down into its component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or awn seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required 'Work hours." This number will stay the same regardless of how many people are working. For example, 8'work hours' can be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 100% productivity for 4 his. each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 hrs. each. (8x.50=4, 4x2-8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, Including those on which you pay workers wb-minimum wages based on productivity, require you to p la'prevailing wage' Check the contractl Also, be sure to add the appropriate *Other Payroll Expense' (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, etc.) After you've established the direct labor cost per time or per item, you can extend the time frame to come up with the annual requirement. On a service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days per weak and 52 weeks par year, would give you an annual direct labor cost of 520,1100.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cost divide the annual cost by 12 (in this case you get 51733.331month). DAS Form *12 J Revision 10.03 Page 4 Direct Labor Shoat OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpris City of Ashland 2018-2019 Street and Shop There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your I 19.00% organization that go back a year or more. Add together the expenditures that make up the overhead cost (see worksheet below). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the t figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If financial records are ml available estimate the overhead expenses as best you can. estimate OR other costs as best you can, and use the some formula to get a percentage. 2. Enter Allocate Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you am alkxating to overhead in the box if you are confident that you can O R allocate overhead gems to this particular project. You can use the Worksheet as a loot (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year. Input all the costs of the entire entity as detailed below. Line items which are not detailed below should be input into the cells marked other-; please include a description What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report. Do not include hours which can be classified as management or administrative costs. (Including these costs into the direct labor hour total will deflate the actual costs.) The worksheet %NII compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheet on Below Overhead per labor hour 6 Time required to complete contract 247 Total Assigned Overhead s Worksheet WORK AREA: Total Annual O erations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense $ 11,440.95 Management Medical Insurance $ 10,920.00 Management Pension Plan Expense S 4,150.00 AGENCY REVENUES=5,675,312 Sales& Administrative Salaries S 415,594.00 AGENCY INDIRECT EXPENSES 1,105,315.95 Sales & Administrative Payroll Tax Expense 5 640354.00 OVERHEAD 19% Sales & Administrative Medical Insurance $ 40,055.00 Sales & Administrative Pension Plan Expense S 100200.00 Office Rent c Advertising and Public Education S 14,855.00 Background Checks & Udnatysis $ 3,189.00 Professional & Accounting / Audit Fees $ 81 708.00 Training & Worker Safety Insurance S 38,192.00 Telephone S 71185.00 Utilities S 20 452.00 Property Taxes/Ucenses/Fees $ 8,270.00 Dues & Subscriptions Depreciation-office building S 15.061.00 Deprecation-office equipment $ 14,693.00 Repairs & Mainlenance-office S 22.744.00 Clearing and Maintenance S 21,346.00 Office Equipment Rental $ 7,886.00 Office Supplies s 19 033.00 Postage & Freight $ - Rehab $ 25,023.00 Miscellaneous Expense $ 12,999.00 Bad Debts $ INTEREST EXPENSE $ 18,961 00 EMPLOYEE ACTIVITIES $ 20,021.00 AUTO REPAIRS 5 15,807.00 MANAGEMENT CONTRACT $ 136 457.00 TOTAL INDIRECT COSTS S 897,848.00 $ 207 467.95 CPI Fadtar km BLS (we kac Below) 115% 1.65% he. Irrmw bh rwvRO9/rratYeau tin Total $ 1,123,563.66 DAB Form 012 J Revision 10-03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises, Inc. Project Costing Worksheet City of Ashland 2018-2019 Street and Shop This category covers any costs associated with delivering your product or service to the buyer. A service contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 caravan $ - $ - 2 $ - $ - 3 $ - $ - 4 $ - $ - $ - $ - Margin The law allows a "margin held in reserve" This is usually added as a percentage after all other costs have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. I Enter as a % of "Total Before Margin" 6.0% i DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program R..t 31 ` I I:. r t w • c F.. nr -d fit`,=_~. J~ F- • ~-;i;~r • z 15" 8Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 i S r SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services 07302007 Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. r s I I QRF Name Pathway Enterprises Inc. Project Cit of Ashland Facility Floors 18-19 Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 1,409.47 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 1,353.30 Subtotal 1 $ 2,762.77 Labor Direct Labor (from labor daily worksheet) $ 6,205.57 Overhead See Overhead Worksheet $ 2,271.98 Delivery Transportation (from Trans & Reserve worksheet) $ - Total Before Margin $ 11,240.32 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 717.47 Total Bid Yearly $ 11,957.79 I Monthly $ 996.48 t DAS Form #12 J Revision 10-03 Page 1 Summary Sheet RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises Inc. City of Ashland Facility Floors 18-19 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 20" BL 5300 FLOOR PAD 5/CS 4.64 1 $ 4.64 $ 55.68 2 20" BN 7100 FLOOR PAD 5/CS 6.36 1 $ 6.36 $ 76.32 3 20" RE 5100 FLOOR PAD 5/CS 4.64 0 $ - $ - 4 20" WH 4100 FLOOR PAD 5/CS 4.64 0.5 $ 2.32 $ 27.84 5 DOODLEBUG PAD BN 20/CS 1.31 1 $ 1.31 $ 15.72 6 SCOTCH BRITE SURF PREP PAD 14X20 10 12.36 0 $ - $ - 7 SCOTCH BRITE SURF PREP PAD 20" 10/C 8.69 0 $ $ 8 SCOTCH BRITE SPP 4-5/8"X10" 20/CS 2.12 0 $ $ 9 SCRAPER W/5 RAZOR BLADES 10/8X 124 0.5 $ 1.62 $ 19.44 10 DEFOAM IT PREM DEFOAMER 4 GL/CS 16.02 0.25 $ 4.01 $ 48.06 11 DIAMOND FLOOR FINISH 5 GL 52.10 0.5 $ 26.05 $ 312.60 12 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.125 $ 2.56 $ 30.75 13 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 0.125 $ 1.00 $ 11.99 14 TANNIN STAIN REMOVER 6 QTS/CS 16.49 0.25 $ 4.12 $ 49.47 15 DIGS NEUTRALIZER ODOR COUNTER 2-90T 51.73 0.0625 $ 3.23 $ 38.80 16 BRAVO POWER FOAM STRIPPER 12-23 OZ/ 7.71 0 $ - $ - 17 PRO STRIP HVY DTY STRIPPER 5 GL 81.04 0.25 $ 20.26 $ 243.12 18 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.33 $ 5.43 $ 65.10 i 19 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 1 $ 17.66 $ 211.92 20 DOODLE SCRUB TILE & GROUT PAD (BLUE 7.17 1 $ 7.17 $ 86.04 21 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.0834 $ 1.49 $ 17.92 22 FOLEX GALLON 16.45 0.5 $ 8.23 $ 98.70 23 $ $ - 24 $ $ t 25 $ $ 26 $ $ 27 $ $ j 28 $ $ 29 $ $ 30 $ $ 31 $ $ 32 $ $ 33 $ $ ! 34 $ $ 35 $ $ 36 $ $ 37 $ $ 38 $ $ 39 $ $ 40 $ $ 41 $ $ 42 $ $ 43 $ $ 44 $ $ 45 $ $ 46 $ $ 47 $ $ 48 $ $ 49 $ $ 50 $ $ Total $ 117.48 $ 1,409.47 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost limes 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Departmentof Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises Inc. City of Ashland Facility Floors 18-19 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 WAVE BREAK PRESS $ 76.72 36 12 33% $ 25.57 20% $ 5.11 3 S 15.34 2 WINDSOR SENSOR VAC $ 551.46 36 12 33% $ 183.82 20% $ 36.76 1 S 36.76 3 WET DRY VACUUM $ 780.00 24 12 50% $ 390.00 20% $ 78.00 1 S 78.00 4 PACESETTER BUFFER $ 1,617.30 36 12 33% $ 539.10 20% $ 107.82 1 107.82 5 SC351 SCRUBBER $2,812.00 48 12 25% $ 703.00 20% $ 140.60 1 $ 140.60 6 NAUTILUS EXTRACTOR $3,928.00 48 12 25% $ 982.00 20% $ 196.40 1 $ 196.40 7 HOSS 700 $2,590.00 48 12 25% $ 547.50 20% $ 129.50 1 $ 129.50 8 CRB PRO 45 $2,738.00 48 12 25% $ 684.50 20% $ 136.90 1 $ 136.90 9 HIGH PERFORMANCE FAN $ 225.00 36 12 33% $ 75.00 20% $ 15.OC 2 $ 30.00 10 CLIPPER DUO $ 4,116.31 48 12 25% $ 1,029.08 20% $ 205.82 1 $ 205.82 11 DOODLE SCRUB S 674.10 24 12 50% $ 337.05 20% 3 67.41 1 $ 67.41 12 SQUARE SCRUB $4,175.00 48 12 25% $ 1,043.75 20% $ 206.75 1 $ 208.75 13 12 14 12 1s .12 16 12 17 12 18 12 19 12 20 12 Total $ 1,353.30 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Protect Costing Worksheet Pathway Enterprises Inc. City of Ashland Facilirv Fl.- 18-19 Worker Work Hourly % Pro- Sub- FICA Sub- Workers Sub- Untimploy- Sub Other Other Benefits Other Benefits DailylPer Times AnnuaLlTotal Annual Hours Description Hours Rate ductwity Total 1 Total2 comp% Total 3 ment % Total4 Benefits % Monthly $ SubTotal 5 Item Labor Per Yr. Labor Labor 1 City Hall Carpet 11.00 S 14.26 100% S 156.86 0.0765 S 12.00 2.60% S 4.08 1.42% S 2.23 29.62% S 46.46 $ 221163 2 $ 443.25 22.00 2 City Hall Hard FL 2.00 $ 14.26 100% 5 28.52 0.0765 S 2.18 2.60.1. S 0.74 1.42 % S 0.40 29.62 % S 8.45 S 40.30 2 S 80.59 4.00 3 Comm Dev Carpet 22400 S 14026 100% S 313.72 0.0765 S 24.00 2060% $ 8616 1.42%1 $ 4.45 29.62% S 92.92 ' $ 443.25 2 $ 886.51 44.00 4 Comm Dev Hard FL 4.00 $ 14.26 100% S 57.04 0.0765 $ 4.36 2.60% S 1.48 1,42% -$0.81 29.62 % $ 16.90 3 80.59 2 $ 161.18 8.00 5 Courts Carpet 8.00 S 14.26 100% 5 114,08 00765 $ 8.73 2.6D% $ 2.97 1.42%1 S 1.62 29.62% S 33.79 $ 161.18 2 $ 322.37 16.00 6 Courts Hard FL 2.00 s 1426 1DC% S 28.52 0.0765 $ 2.18 2.60% $ 0.74 1.42%1 1 $ 0.40 29.62% s 8.45 3 40.30 2 S 80.59 4,00 7 Police Carpet 12.00 S 14.26 100% S 171.12 0.0765 $ 13.09 2660% S 4.45 1.42% S 2.43 29.62 % $ 50.69 $ 241.78 2 $ 483.55 24.00 8 Police Hard FL 32.00 $ 14.26 100% S 456.32 D.0765 $ 34.91 2.60% S 11.06 1.42 % s 6.48 29.62 % $ 135.15 S 644073 2 $ 16289047 64.00 9 Police Hi h Speed 1.00 $ 14.26 1 DC % S 14.26 0.0765 $ 1.09 160% $ 0.37 142% $ 0.20 29.62% $ 4.22 S 20.15 24 $ 483.55 24.00 10 Service Ctr Carpet 8.00 S 14.26 1012% S 114.08 D.0765 S 8.73 2.60% $ 2.97 1,42% $ 1.62 29.62% S 33.79 S 161.18 2 $ 322.37 16.00 11 Service Ctr Hard FL 20.00 S 14.26 100% S 285.20 0.0765 $ 21.82 2.60% S 7.42 1.42 % $ 4.05 29.62% 3 84.48 S 402.96 2 $ 805.92 40.00 12 Streets Carpet 1.00 314.26 100% S 14.26 0.0755 $ 1.09 2.60% S 0.37 1.42% $ 0.20 29.62% S 4.22 S 20.15 2 $ 40.30 2.55- 13 Streets Hard FL 10.00 S 1426 100% S 142.60 0.0765 $ 10.91 2.BD% S 3.71 142% $ 2.02 29,62% $ 42.24 5 201.48 2 $ 402.96 20.00 14 Grove Carpets 8.00 $ 14.26 100% 5 114.08 0.0765 $ 8.73 2.60% s 2.97 1.42% s 1.62 29062% S 33.79 S 161.18 2 $ 322.37 16.00 15 Grove Hard FL 2.00 $ 14.26 100% S 28.52 0.0765 $ 2.16 2.60% S 0.74 1.42% $ 0.40 29.62% S 8.45 S 40.30 2 s 60.59 4.00 16 $ $ - S S - s 5 S 0.00 17 S S $ - S S S $ 0.00 18 s $ $ s s s s 0.00 19 3 S $ $ - S S S 0.00 20 3 S $ s 3 S $ 0.00 Total 11 5 2.881.16 Total $ 6205.57 308.00 Areas In green are formula driven. List "Other Benefits" Provided Work Hours - Breakdown total *work hours" (see Overview) into hours or partial hours required per time or per item. PTO . HOUDAY 11.53% Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage % required) and then multiply by % productivity. 1401K * LIFE . HEALTH 1E.09 Subtotal 2 - Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 29.62% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits % = Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. S = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract If their monthly benefit is $100, then only S50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly S. Daily Per Item Labor = The sum of subtotals 1,2,3, 4, and 5 Times Per Year - This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per item labor Annual Labor Hours = Work hours multiplied by limes per year For purposes of casting a project, it's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection etc.) may be captured as Overhead. and will be discussed later. Direct labor is that which is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 60% of his/her time in direct labor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as York hours'. That is, the total number of hours that will be required to complete a task or project. The first and perhaps most critical step is to identify the work and break it down Into its component tasks. The description of work w specifications In the contract Is the place to start. Once the component tasks are identified, the next step is to estimate the time that will be required to accomplish each task. Since this estim led time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required York hours.' This number will stay the same regardless of how many people are working. For example, 8 `work hours- can be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 100% productivity for 4 hm each (2x4=8). It could also be done by 0 people working at SDYe productivity for 2 hrs. each. (8x50=4, 4x2=8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, including ease on which you pay workers sub-minimum wages based on productivity, require you to pa a'prevailing wage.' Check the contract! Also, be sure to add the appropriate 'Other Payroll Expense (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, etc.) After you've established the direct labor cost per lime or per hem, you can extend the line frame to come up with the annual requirement On a service contract multiply the daily cast by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days par week and 52 weeks per year, would give you an annual direct labor cost of 520,800.00 par year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cost divide the annual coat by 12 (n this case you get S1733.33/month). DAS Form 012 J Revision 1043 Page 4 Direct Labor Sheet OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpris City of Ashland Facility Floors 18.19 There are many different ways organizations allocate overhead internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your 19.00% organization that go back a year or more. Add together the expenditures that make up the overhead cost (see worksheet belovi). Nov; add this figure to the Raw materials, Direct labor and Delivery for a total coil, Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the lotal cost If financial records are not available estimate the overhead expenses as best you can, estimate d 0 R other costs as best you can, and use the some formula to get a percentage. 1 2. Enter Allocated Overhead as a Dollar-Figure Sum i I--, Dollar-Figure Sum Method: You can enter the dollar amount you are allocating so overhead in the box if you are confident that you can OR allocate overhead dams to this particular project. You can use the Worksheet as a loll (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identity overhead costs, you need the financial records for your organization ordivision for the past year. Input all the costs of the entire entity as detailed below. Line items which are not detailed below should be input into the cads marked'othet', please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report. Do not include hours which can be classified as management or administrative costs. (Including these costs into the direct labor hour total will deflate the actual coils.) The worksheet %Wl compute the overhead as a line item cast by dividing the total projected labor hours for the contract into the total projected labor hours for the current year, Total Annual Direct Labor Hours Input Total from Worksheel on Below Overhead per labor hour $ Time required to complete contract 308 Total Assi ned Overheatl S Worksheet WORK AREA: Total Annual 0 eratlons Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense 3 11,440.95 li Management Medical Insurance $ 10,920.00 Management Pension Plan Expense 5 4,150.00 AGENCY REVENUES=5,675,312 Sales & Administrative Salaries $ 415,594.00 AGENCY INDIRECT EXPENSES = 1,105,315.95 Sales & Administrative Payroll Tax Expense S 64,354.00 OVERHEAD 19% Sales S Administrative Medical Insurance S 40,055.00 I Sales & Administrative Pension Plan Expense 3 10,200.00 Office Rent i Advertising and Public Education $ 14,855.00 Background Checks d Urinalysis $ 3,189.00 Professional & Accounting I Audit Fees 3 81 708.00 Training & Worker Safety Insurance 3 38,192.00 Telephone 3 7165.00 Utilities $ 20,452.00 Property TaxeslUcenseslFees S 8,270.00 Dues & Subscriptions Depreciation-office budding $ 15,061.00 Depreciation-office equipment S 14,893.00 Repairs& Maintenance-office $ 22,744.00 Cleaning and Maintenance $ 21,346.00 Office Equipment Rental S 7,88&00 Offce Supplies S 19,033.00 Postage & Freight $ I Rehab $ 25023.00 Miscellaneous Expense $ 12,999.00 Bad Debts $ INTEREST EXPENSE $ 18,981 00 EMPLOYEE ACTIVITIES $ 20,021.00 ! AUTO REPAIRS 3 15,807.00 MANAGEMENT CONTRACT $ 136457.00 TOTAL INDIRECT COSTS $ 897 s4e.o0 3 207 467.95 CPI Fader tom BLS( sae hk b.Ww) 3.15% 3.f5% i hap /Mww bhaov(ra9lmostreeu Nm Total $ 1,140,133.40 DAS Form #12 J Revision 10.03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises Inc. Project Costing Worksheet Ci of Ashland Facility Floors 18-19 The State of Oregon reimburses employee use of their own vehicles on State business by the mile . The amount reimbursed per mile is based on a federal guideline which can be retrieved by following the link below to the GSA web site. This standard reimbursement is the standard for QRF cost calculation. Gas, oil, vehicle maintenance and repair are considered part of Delivery costs. The labor required (the driver and the workers if they are on the clock), should be captured in the Direct Labor worksheet. Vehicle costs may only be captured in the "Equipment, Tools & Subcontracts" spreadsheet or "Trans & Reserve" spreadsheet within this workbook. It is not permissable to capture costs in both spreadsheets. It is permisible to use this spreadsheet to capture vehicle costs for the following situations: (a) Transporting the individuals who will perform the service to the location where the service will be provided. (b) Services dependent on vehicle in the provision of that service. GSA - Privately Owned Vehicle (POV) Mileage Reimbursement Rates Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 $ - $ - 2 $ - $ - 3 $ - $ - 41 i $ - $ - $ - $ - Margin The law allows a "margin held in reserve". The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of total cost of contract 6. i I f c I DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet GOODS & SERVICES AGREEMENT PROVIDER: PATHWAY ENTERPRISES, INC. ASHLAND PARKS COMMISSION CONTACT: RICHARD SIMPSON 340 S. Pioneer Street ADDRESS: 1600 SKY PARK DRIVE, SUITE NO. 101 Ashland, Oregon 97520 MEDFORD, OR 97504 Telephone: 541/488-5340 Fax: 541/488-5314 PHONE: 541-973-2728 FAX: 541-973-2729 EMAIL: rpMei@gmail.com This Goods and Services Agreement (hereinafter "Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and Pathway Enterprises, Inc., a domestic business corporation ("hereinafter "Provider"), for Janitorial Services. 1. PROVIDER'S OBLIGATIONS 1.1 Provide Janitorial Services as set forth in the "SUPPORTING DOCUMENTS" attached hereto and, by this reference, incorporated herein. Provider expressly acknowledges that time is of the essence of any completion date set forth in the SUPPORTING DOCUMENTS, and that no waiver or extension of such deadline may be authorized except in the same manner as herein provided for authority to exceed the maximum compensation. The goods and services defined and described in the "SUPPORTING DOCUMENTS" shall hereinafter be collectively referred to as "Work." 1.2 Provider shall obtain and maintain during the term of this Agreement and until City's final acceptance of all Work received hereunder, a policy or policies of liability insurance including commercial general liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence for Bodily Injury and Property Damage. 1.2.1 The insurance required in this Article shall include the following coverages: • Comprehensive General or Commercial General Liability, including personal injury, contractual liability, and products/completed operations coverage; and • Automobile Liability • Workers' Compensation 1.2.2 Each policy of such insurance shall be on an "occurrence" and not a "claims made" form, and shall: • Name as additional insured "the City of Ashland, Oregon, its officers, agents and employees" with respect to claims arising out of the provision of Work under this Agreement; • Apply to each named and additional named insured as though a separate policy had been issued to each, provided that the policy limits shall not be increased thereby; • Apply as primary coverage for each additional named insured except to the extent that two or more such policies are intended to "layer" coverage and, taken together, they provide total coverage from the first dollar of liability; • Provider shall immediately notify the City of any change in insurance coverage • Provider shall supply an endorsement naming the City, its officers, employees and agents as additional insureds by the Effective Date of this Agreement; and • Be evidenced by a certificate or certificates of such insurance approved by the City. Page I of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. I 1.3 All subject employers working under this Agreement are either employers that will comply with ORS 656.017 or employers that are exempt under ORS 656.126. As evidence of the insurance required by this Agreement, the Provider shall furnish an acceptable insurance certificate prior to commencing any Work under this Agreement. 1 1.4 Provider agrees that no person shall, on the grounds of race, color, religion, creed, sex, marital status, familial status or domestic partnership, national origin, age, mental or physical disability, sexual orientation, gender identity or source of income, suffer discrimination in the performance of this Agreement when employed by Provider. Provider agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Provider agrees not to discriminate against a disadvantaged business enterprise, minority-owned business, woman-owned business, a business that a service-disabled veteran owns or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A.I 10. 1.5 In all solicitations either by competitive bidding or negotiation made by Provider for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential subcontractor or supplier shall be notified by the Providers of the Provider's obligations under s this Agreement and Title VI of the Civil Rights Act of 1964 and other federal nondiscrimination laws. 2. CITY'S OBLIGATIONS 2.1 City shall pay Provider the sum of $67,212.50 as provided herein as full compensation for the Work as specified in the SUPPORTING DOCUMENTS. 2.2 In no event shall Provider's total of all compensation and reimbursement under this Agreement exceed the sum of $67,212.50 without express, written approval from the City official whose signature appears below, or such official's successor in office. Provider expressly acknowledges that no other person has authority to order or authorize additional Work which would cause this maximum sum to be exceeded and that any authorization from the responsible official must be in writing. Provider further acknowledges that any Work delivered or expenses incurred without authorization as provided herein is done at Provider's own risk and as a volunteer without expectation of compensation or reimbursement. l 3. GENERAL PROVISIONS 3.1 This is a non-exclusive Agreement. City is not obligated to procure any specific amount ` of Work from Provider and is free to procure similar types of goods and services from other providers in its sole discretion. i 3.2 Provider is an independent contractor and not an employee or agent of the City for any purpose. 3.3 Provider is not entitled to, and expressly waives all claims to City benefits such as health and disability insurance, paid leave, and retirement. 3.4 This Agreement embodies the full and complete understanding of the parties respecting the subject matter hereof. It supersedes all prior agreements, negotiations, and representations between the parties, whether written or oral. 3 3.5 This Agreement may be amended only by written instrument executed with the same formalities as this Agreement. f. Page 2 of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. 3.6 The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 27913.220, 27913.230 and 279B.235. 3.7 This Agreement shall be governed by the laws of the State of Oregon without regard to conflict of laws principles. Exclusive venue for litigation of any action arising under this Agreement shall be in the Circuit Court of the State of Oregon for Jackson County unless exclusive jurisdiction is in federal court, in which case exclusive venue shall be in the federal district court for the district of Oregon. Each party expressly waives any and all rights to maintain an action under this Agreement in any other venue, and expressly consents that, upon motion of the other party, any case may be dismissed or its venue transferred, as appropriate, so as to effectuate this choice of venue. 3.8 Provider shall defend, save, hold harmless and indemnify the City and its officers, employees and agents from and against any and all claims, suits, actions, losses, damages, liabilities, costs, and expenses of any nature resulting from, arising out of, or relating to the activities of Provider or its officers, employees, contactors, or agents under this Agreement. 3.9 Neither party to this Agreement shall hold the other responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of the other or the other's officers, employees or agents. 3.10 If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable, such provision shall not affect the other provisions, but such unenforceable provision shall be deemed modified to the extent necessary to render it enforceable, preserving to the fullest extent permitted the intent of Provider and the City set forth in this Agreement. 4. SUPPORTING DOCUMENTS The following documents are, by this reference, expressly incorporated in this Agreement, and are collectively i referred to in this Agreement as the "SUPPORTING DOCUMENTS:" • The Provider's letter dated June 19, 2018 attached hereto as "Exhibit A", Custodial Service Minimum Standards (Service Requirements and Frequency of Service) attached hereto as "Exhibit B" and the Costing Workbooks (Nature Center, Oak Knoll Pro Shop, Pioneer Hall and Community Center, Senior Center, The Grove, and Carpet and Hard Floors in Parks Buildings) attached hereto as "Exhibit C". 5. REMEDIES 5.1 In the event Provider is in default of this Agreement, City may, at its option, pursue any or all of the remedies available to it under this Agreement and at law or in equity, including, but not limited to: 5. 1.1 Termination of this Agreement; 5.1.2 Withholding all monies due for the Work that Provider has failed to deliver within any scheduled completion dates or any Work that have been delivered inadequately or defectively; 5.1.3 Initiation of an action or proceeding for damages, specific performance, or declaratory or injunctive relief; 5.1.4 These remedies are cumulative to the extent the remedies are not inconsistent, and City may pursue any remedy or remedies singly, collectively, successively or in any order whatsoever. 5.2 In no event shall City be liable to Provider for any expenses related to termination of this Agreement or for anticipated profits. If previous amounts paid to Provider exceed the amount due, Provider shall pay immediately any excess to City upon written demand provided. 6. TERM AND TERMINATION Page 3 of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. l f I 6.1 Term This Agreement shall be effective from July 1, 2018, and shall continue in full force and effect until June 30, 2019, unless sooner terminated as provided in Subsection 6.2. 6 6.2 Termination ' 6.2.1 The City and Provider may terminate this Agreement by mutual agreement at any time. 6.2.2 The City may, upon not less than thirty (30) days' prior written notice, terminate this Agreement for any reason deemed appropriate in its sole discretion. 6.2.3 Either party may terminate this Agreement, with cause, by not less than fourteen (14) days' prior written notice if the cause is not cured within that fourteen (14) day period after written notice. Such termination is in addition to and not in lieu of any other remedy at law or equity. 7. NOTICE Whenever notice is required or permitted to be given under this Agreement, such notice shall be given in writing to the other party by personal delivery, by sending via a reputable commercial overnight courier, or by mailing using registered or certified United States mail, return receipt requested, postage prepaid, to the address set forth below: If to the City: Ashland Parks Commission Attention: Rachel Dials 340 S. Pioneer Street Ashland, Oregon 97520 Phone: (541) 488-5340 With a copy to: City of Ashland Legal Department 20 E. Main Street Ashland, OR 97520 Phone: (541) 488-5350 If to Provider: Pathway Enterprises, Inc. Attention: Richard Simpson 1600 Sky Park Drive, Suite 101 Medford, OR 97504 Phone: 541-973-2728 8. WAIVER OF BREACH One or more waivers or failures to object by either party to the other's breach of any provision, term, condition, f or covenant contained in this Agreement shall not be construed as a waiver of any subsequent breach, whether or not of the same nature. 9. PROVIDER'S COMPLIANCE WITH TAX LAWS 9.1 Provider represents and warrants to the City that: 9. 1.1 Provider shall, throughout the term of this Agreement, including any extensions hereof, comply with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS chapters 316, 317, and 318; Page 4 of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Provider; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 9.1.2 Provider, for a period of no fewer than six (6) calendar years preceding the Effective Date of this Agreement, has faithfully complied with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Provider; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 9.2 Provider's failure to comply with the tax laws of the State of Oregon and all applicable tax laws of any political subdivision of the State of Oregon shall constitute a material breach of this Agreement. Further, any violation of Provider's warranty, as set forth in this Article 9, shall constitute a material breach of this Agreement. Any material breach of this Agreement shall entitle the City to terminate this Agreement and to seek damages and any other relief available under this Agreement, at law, or in equity. IN WITNESS WHEREOF the parties have caused this Agreement to be signed in their respective names by their duly authorized representatives as of the dates set forth below. CITY OF ASHLAND: PATHWAY ENTERPRISES, INC.: By: By: City Administrator Signature Printed Name Printed Name Date Title Date Purchase Order No. ~ is to be submitted with this signed Agreement) APPROVED AS TO FORM: ssistant ity Attorney G- zs-/R Date Page 5 of 5: Agreement between the City of Ashland and Pathway Enterprises, Inc. EXHIBIT A rc, thwA,V., C01►►t►►unica►lion Tea11101k Professionalism Upporhuii(y Enterprises, hic. Office: (541) 973-2728 Fax: (541) 973-2729 Property Service License W205 CC8 License #218417 June 19, 2018 i i Rachel Dials i Recreation Superintendent I City of Ashland 340 S. Pioneer Street Ashland, OR 97520 , Dear Ms. Dials, t Pathway Enterprises is requesting a pricing adjustment for services for the City of Ashland Parks Department. The reason for the changes are as follows: • The Department of Labor Wage Survey Data for Jackson County indicate that the average wage paid to janitors in Jackson County in data dated May 2017 was $14.26 per hour and $20.61 per hour for janitorial supervisors. We are requesting an adjustment to 2017 established levels. • Pathway has incorporated the cost of health and life insurances as well as retirement for our employees. In the past Living Wage levels were adequate to compensate these employee benefits but at this time Living Wage is no longer at i an adequate level to do this. The impact of the State Minimum Wage law is creating high wage inflation on entry level positions. In our area the wage for janitors increase by $1.00 per hour for every $0.50 increase in minimum wage. A three-year wage history for Jackson County is as follows: t 2015 - $12.25 / Hour 2016 - $13.08 / Hour 2017 - $14.26 / Hour In total we are requesting an increase from $59,761.04 to $67,212.50 Annually. This equates to an additional $7,451.46 for a 12.47% increase. I have attached the minimum cleaning standards, and the Janitorial survey used to determine wages in Jackson County. The breakdown of this increase is as follows: 1600 Sky Park Drive Suite No. 101 Medford, OR 97504 ►~ti~w.path►~'n} inc.org info a•pattrn•ny-iuc.org 4thipi ~~IA Coiututluicalion 1•e:utt►►urlt Professionalism Upportuni(Y Eices, Inc. Office: (541) 973-2728 Fns: (541) 973-2729 Annual 2017 - 2018 2018 - 2019 Pioneer Hall & Community Ctr 23,806.91 27,317.46 The Grove 7,373.79 8,177.32 Nature Center 6,064.19 6,807.05 Senior Center 16,981.04 18,987.68 Oak Knoll Pro Shop 2,247.21 2,492.61 Carpet and Hard Floors 3,287.90 3,430.38 Total 59,761.04 67,212.50 Increase Amount 7,451.46 Change Percentage 12.47% The Breakdown of the "Carpet and Hard Floors" cleaning costs are as follows: Location Hours Freq TTL % Price Cost Community Ctr 4.00 2 8 12.50% 428.81 Nature Center 7.00 2 14 21.88% 750.42 Senior Ctr 18.00 2 36 56.25% 1,929.65 Oak Knoll 3.00 2 6 9.38% 321.61 64 100.00% $3,430.48 1 appreciate your consideration and look forward to continued services at the City of Ashland Parks Department. Sincerely, Richard Simpson Commercial Contracts Director Pathway Enterprises, Inc. 1600 Sky Park Drive Suite No. 101 Medford, OR 97504 ~~p~~.patL~tn~'-iuc.org info n%pnq~« n~-inc.org EXHIBIT B Custodial Service Minimum Standards E Customer: City of Ashland Parks Department Facilities: The Grove, Nature Center, Oak Knoll Pro Shop, Parks and Recreation I Office, Pioneer Hall and Community Center, Senior Center Service Requirements Frequency of Service ~ D cps o o~ p ~~.0 (D (D W M a~ E o A. General, Private Offices, Lobby, etc. g 1. Empty wastebaskets and recycle bins. Wash or change liners as needed. (Contractor to supply X liners) 2. Wipe down furniture, including chair arms and legs, side tables, desktops, conference tables, X IF reception base, etc. 3. Dust exposed filing cabinets, bookcases, X shelves and lamps 6. Low dust horizontal surfaces to hand height (70") including sills, ledges, moldings, window X frames, shelves, picture frames, ducts, radiators, etc. 7. High dust above hand height horizontal k surfaces, including shelves, moldings, ledges, X vents, ducts, etc. 8. Spot clean desk tops when personal items are X removed 9. Sweep and damp mop all resilient and hard X surfaces 10. Clean reception lobby glass including front door X and an other partition or lass door 11. Vacuum carpeted floors in their entirety, X including under all floor mats 12. Remove all paper and debris on floors X 13. Remove fingerprints from doors and frames X X i 14. Dust blinds 15. Remove dust and cobwebs from ceiling area X X 16. Spot cleans ills on carpeted floors 17. Remove scuff marks from hard floors X 18. Wipe down walls, as needed for large spots X X f 19. Dam Clean baseboards 20. Empty outside trash, spot clean cans, replace X liner r. V Service Requirements Frequency of Service fD p a a x mm o aln c am N qo m > :3 m w m w (D'y 77 s=r N m 3 w o 1< B. Restrooms & Showers r.L 1. Clean, sanitize and polish all fixtures incl. toilet bowls, toilet seats, urinals, hand basins, chrome X fittings. 2. Remove spots/stains from wall areas adjacent to X hand basins 3. Clean and polish all glass and mirrors. X 4. Empty all containers and disposals. Clean and change liners as needed (Contractor to supply X liners). t 5. Empty and sanitize interior of sanitary container X 6. Spot clean walls, doors, light switches, dispensers, metal partitions and lockers. X 7. Clean and sanitize metal partitions and lockers. X 8. Wash restroom walls & ceilings. X 9. Remove fingerprints from doors, frames, light switches, kick/push plates, handles, etc. X 10. Refill all dispensers to normal limits - napkins, soap, tissue, hand sanitizer, towel, cups, liners, etc. X (Supplies furnished by County). 11. Dust all horizontal surfaces to hand height incl. sills, ledges, molding, shelves, frames, ducts, X 9 heating outlets. 12. Dust all horizontal surfaces above hand height X incl. shelves, ledges, moldings, lights, lockers. 13. Vacuum diffuser outlets. X 14. Clean area adjacent to diffuser outlets. X 15. Clean and sanitize shower areas. Remove all X soil and soap scum. 16. Sweep, damp mop and sanitize all hard and X resilient floors. NOTE-ALL WATER FIXTURES WILL BE KEPT CLEAN OF ALL STAINS AND MINERAL BUILD- -UP. Service Requirements Frequency of Service D € m o o a m A m d 71 m x c c CD 1< CD C. Lunchrooms (Vending) 1. Clean and sanitize tables & chairs, incl. X pedestals or legs. 2. Clean and change liners in all containers and X disposals (sanitize interior). 3. Clean sink area and fixtures to remove hard X water build up and coffee staining. 4. Clean all cabinet facings and exteriors of X appliances and equipment. 5. Remove fingerprints from doors, frames, light switches, kicklpush plates, handles. X 6. Sweep and mop floor. X 7. Dust all horizontal surfaces to hand height incl. sills, moldings, ledges, shelves, frames, ducts, X 1 heating outlets, etc. 6. Dust all horizontal surfaces above hand height incl. shelves, ledges, moldings, pipes, ducts, X heating outlets, etc. Service Requirements Frequency of Service X A D D a y o o CO w 3 m a0 r m a M s N v3. w moo rt n Q D. Floors ' 1< (D 1. Resilient and Hard " n 1. Dust, damp mop or sweep. X 2. Damp mop and sanitize restrooms, labs and X p exam rooms. 3. Machine scrub textured non finish floors to X remove build up. I D. Floors D W M S-M Q S-A A AD 2. Carpet 1. Vacuum open areas. X 2. Vacuum entire carpet areas. X 3. Remove spots or stains. X i 4. Machine extraction entire open areas. II 5. Clean door mats. X } 1 i Service Requirements Frequency of Service A D D X y `z rn c ❑ t D CD o N 7 = N OU 7 N 7 r N m c c c s 3 Do N 9 m n m E. Furniture m .Z ' ' in g 1. Fabric a 1. Vacuum. X 2. Shampoo. X E. Furniture D W M S-M Q S-A A AD 2. Plastic 1. Damp wipe. X 2. Complete clean, X E. Furniture D W M S-M Q S-A A AD 3. Leather 1. Damp clean. X 2. Clean, reseal and polish. X Service Requirements Frequency of Service ~D 10 > o o p m w o . c s s 3. N w 3 nci n m - - o - - F. Windows ~ o. 1. Clean Exterior - Outside. X 2. Clean exterior- inside. X Service Requirements Frequency of Service U3 CD A) :J CD 0 CD G. Special Requirements < < 1 ~ m a . 1. Gather recycled paper. X 2. Lock all exterior doors at designated time X 3. Clean exterior of front entry. X 4. Empty exterior trash receptacles. X 5. Clean & sanitize trash receptacles. X GENERAL REOUIREMENTS: ➢ Leave notice on any observed irregularities i.e. defective unlocked doors Y ( plumbing, > lights left on, inventory requirements, restroom supplies required, etc.). ➢ Turn off all lights except those to be left on. Close windows and lock all doors. ➢ Cleaning to be completed between 5:OOPM and 4:OOAM. ➢ All custodial staff will comply with Additional Specifications, as stated below. ➢ Material Safety Data Sheets must be provided to the Customer for all cleaning materials and chemicals. Security 1. All employees will have an acceptable security clearance check prior to working in the building. 2. All entrance doors must be locked after hours and kept that way. When dumping trash, lock the door when you leave and let yourself in upon completion of dumping. All interior doors that are locked must be relocked upon completion of cleaning. Note any discrepancies of unlocked doors that are normally locked. s s E I EXHIBIT C i E t Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program Y 1A Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services i 07302007 Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. i i QRF Name Pathwa Enter rises Inc. x Project City of Ashland Parks and Recreation Nature Center 18-19 Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 728.15 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal 1 $ 963.90 Labor Direct Labor (from labor daily worksheet) $ 4,141.39 Overhead See Overhead Worksheet $ 1,293.34 Delivery Transportation (from Trans & Reserve worksheet) $ - Total Before Margin $ 6,398.62 1 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 408.42 Total Bid Yearly $ 6,807.05 Monthly $ 567.25 E i 4 k a yl E t DAS Form #12 J Revision 10-03 Pagel Summary Sheet i RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises Inc. Cit of Ashland Parks and Recreation Nature Center 18-19 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. i A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads I Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.1250 $ 2.72 $ 32.58 3 VIAFRESH ODOR ELIM LEMON 4 6L/CS 20.50 0.0625 $ 1.28 $ 15.38 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 5 #98 LT DUTY SCOURING PAD 20/CS 0.72 1.0000 $ 0.72 $ 8.64 6 SUSTAINABLE EARTH #66 DISINFECTANT 42.40 0.0625 $ 2.65 $ 31.80 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 0.0525 $ 5.50 $ 66.00 8 SUSTAINABLE EARTH #70 WASHROOM CLEANE 97.44 0.0625 $ 6.09 $ 73.08 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-20 0 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HO FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ 31.08 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 - $ - $ - 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 $ $ 22 36" JUMBO DUST MOP FRAME 7.69 $ $ 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.2500 $ 4.48 $ 53.73 26 BARKEEPERS FRIEND 20OZ BTL 2.65 1.0000 $ 2.65 $ 31.80 27 24 OZ BTL 1.25 0.5000 $ 0.63 $ 7.50 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ $ _ 31 $ $ 32 $ $ 33 $ $ 34 $ $ 35 $ $ 36 $ $ 37 $ $ 38 $ $ 39 $ $ 40 $ $ 41 $ $ 42 $ $ 43 $ $ 44 $ $ 45 $ $ 46 $ $ 47 $ $ 48 $ $ 49 $ $ 50 $ $ Total $ 60.68 $ 728.15 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Adminlstrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises Inc. City of Ashland Parks and Recreation Nature Center 18-19 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum S 551.46 36 12 33% $ 183.82 100% $ 183.82 1 $ 183.82 2 Wave Break Busket & Press 5 76.72 36 12 33% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron S 79.07 36 12 33% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 16 12 17 12 18 12 19 12 20, 12 $ Areas in green are formula driven. Total 235.75 Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-M Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor project Costing Worksheet Pathway Enterprises Inc. City of Ashland Parks and Reercation Nature Ccnlcr 1& 19 Worker Work Hourly % Pro- Sub- FICA Sub- Workers Sub- Unemploy- Sub- Other Other Benefits Other Benefits Dailyflaer Times Annualf total Annual Hours Description Hours Rate ductivi Total 1 Total 2 comp% Total 3 ment % Total 4 Benefits % Month S SubTotal 5 Item Labor Per Yr. Labor Labor 1 Janitor 1 Daily 1.50 S 14.26 100% $ 21.39 0.0765 $ 1.64 2.50% S 0.56 1.42% S 0.30 29.60% 3 6.33 $ 3022 104 5 3,142.64 156.00 2 Supervisor 0.50 S 20.61 100% $ 10.31 0.0765 $ 0.79 2.60% S 0.27 1.42% S 0.15 29.60% 5 3.05 5 14.56 52 S 757.01 26.00 3 Janitor 1 Monthly 1.00 S 14.26 100% $ 14.26 0.0765 S 1.09 2.60% 5 0.37 1.42% 5 0.20 29.60% 5 4.22 $ 20.15 12 3 241.74 1100 4 $ $ 3 S S - $ S 0.00 5 $ S S - 5 3 - 5 $ 0.00 6 3 - $ $ S - S $ $ 0.00 7 S S $ - S - $ $ - $ 0.00 8 3 - S $ 5 $ $ $ 0.00 9 S S $ S $ - $ - S 0.00 10 S S 3 $ - S S $ 0.00 11 S $ $ 5 - S S - $ 0.00 12 S - S S S - S - 3 s 0.00 13 5 $ $ $ - S S - S 0.00 14 S S $ - $ S - $ - S 0,00 15 S $ S - $ - S - $ S 0.00 16 $ $ $ s S - $ S 10.-. 17 $ $ 3 $ S S S 18 $ $ $ 19 $ $ S 20 S - S S $ S $ - S 0.00 Total 3 64.92 Total S 4,141.39 194.00 Areas in green are formula driven. List "Other Benefits" Provided Wink Hours = Breakdown total "work hours' (see Overview) into hours or partial hours required per time or per item. PTO+ HOLIDAY 11.53% subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. LIFE + HEALTH INSURANCE 16.43% Subtotal 2 - Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.64% 29.60% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. 3 = Input in this Column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $1 D0, then only $50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly Daily Per Item Labor = The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per Item labor Annual Labor flours = Work hours multiplied by times per year For purposes of casting a project, it's important to distinguish between direct and Indirect Labor. Indirect labor (supervision, administration, inspection etc.) may be captured as Overhead, and wall be discussed later. Direct labor is that which is specifically identifiable as a pan of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other So% aupmising. In that am you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as 'work hours'. That is, the total number of hours that will be required to complete a task or project. The first and perhaps most erificel step is to identify the work and break it down into its component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the limes must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, lowing and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required "work hours." This number will stay the same regardless of how many people are working. For example, 8 /work hours' an be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 10011. productivity for 4 his each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 has. each. (8x.50=4, 4x2=8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, including those on which you pay workers suam)nimum wages based on Productivity, require you to pay a'prevailing wage." Check the contract! Also, be sure to add the appropriate *Other Payroll Expense" (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, etc.) iABer you've established the direct labor cost per time or per Item, you can extend the time frame to come up with the annual requirement On a service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of 520,800.00 par year. (80 x 5 = 400, 400 x 52 = 20,80(1). For monthly cost divide the annual cost by 12 (in this case you get $1733,33/month). DAS Form #12 J Revision 10-03 Page 4 Direct Labor Sheet i OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enlerpris City of Ashland Parks and Recreation Nature Center 18-19 There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etcl. In the space provided below, indicate how your organization allocates overhead to this particular contract, what items go into your overhead, and what that overhead amount Is (whether as a percent or exact amount) i FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW/! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent o Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your 19 00% organization that go back a year or more. Add together the expenditures that make up the overhead cyst (see worksheet below). Now add this figure to the Raw materials, Direct labor and Delivery fora total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If financial records are not ava:,lable estimate the overhead expenses as best you can, estimate OR ether costs as best you can, and use the same formula to get a percentage. I i 2. Enter Allocated Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box if you are confident that you can OR allocate overhead items to this particular project You can use the Worksheet as a tool (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for) our organization or division for the past year. Input all the costs of the entire entity as detailed below. Line items which are not -fetailed below should be input into the cells marked "other"; please induUe a description. What you are trying to determin s Is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input Edo the cell below the total direct labor hour pail out by your entire organization for the same period. These figures should t a found on the year end payroll report Do not include hours which can be classified as management or administrative cw.ti. (including these costs into the direct labor hour total will deflate the actual costs.) The worRsheet will compute the overhead as a line item cost by dividing the total projected labor j hours for the contract into the total projected labor hours for the current year. f 1 Total Annual Direct Labor Hours Input Total from Worksheet on Below ' Overhead per labor hour S Time required to complete contract 194 I Total Assigned Overhead S I k Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense $ 11,440495 Management Medical Insurance $ 10,920.00 Management Pension Plan Expense $ 4,150.00 AGENCY REVENUES= 5,675,312 Sales& Administrative Salaries S 415,594.00 AGENCY INDIRECT EXPENSES 1,105,315.95 Sales & Administrative Payroll Tax Expense S 64,354.00 OVERHEAD %=19% Sales & Administrative Medical Insurance $ 40 055.00 Sales & Administrative Pension Plan Expense S 10,200.00 Office Rent Advertising and Public Education $ 14,855.00 Background Checks & Urinalysis $ 3,189.00 , Professional & Accounting I Audit Fees $ 81,706.00 Training & Worker Safety Insurance S 38.192.00 Telephone S 7,185.00 Utilities $ 20,452.00 Properly Taxeshicenses)Fees S 8,270.00 Dues & Subscriptions Depreciation-office building S 15 061.00 Depreciation-office equipment $ 14,893.00 Repairs& Mainlenance•offlce S 22,744.00 Cleaning and Maintenance S 21,346.00 Office Equipment Rental s 7,886.00 Office Supplies $ 19 033.60 Postage& Freight s Rehab S 25,023.00 Miscellaneous Expense S 12 999.00 Bad Debts S INTEREST EXPENSE $ 18,981.00 EMPLOYEE ACTIVITIES $ 20,021.00 AUTO REPAIRS S 15,807.00 MANAGEMENT CONTRACT S 136,457.00 TOTAL INDIRECT COSTS 5 697 846.00 S 207 467.95 Cal lector fiom BLS fsn Ink below) 3.1576 3,15% hl, l ,b ern1, p9lmOfbeou h[m Total $ 1,140133.40 DAB Form #12 J Revision 10-03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises Inc. Project Costing Worksheet Cit of Ashland Parks and Recreation Nature Center 18-19 The State of Oregon reimburses employee use of their own vehicles on State business by the mile . The amount reimbursed per mile is based on a federal guideline which can be retrieved by following the link below to the GSA web site. This standard reimbursement is the standard for QRF cost calculation. Gas, oil, vehicle maintenance and repair are considered part of Delivery costs. The labor required (the driver and the workers if they are on the clock), should be captured in the Direct Labor worksheet. Vehicle costs may only be captured in the "Equipment, Tools & Subcontracts" spreadsheet or "Trans & Reserve" spreadsheet within this workbook. It is not permissable to capture costs in both spreadsheets. It is permisible to use this spreadsheet to capture vehicle costs for the following situations: (a) Transporting the individuals who will perform the service to the location where the service will be provided. (b) Services dependent on vehicle in the provision of that service. { GSA - Privately Owned Vehicle (POV) Mileage Reimbursement Rates Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 $ - $ - 2 $ - $ - 3 $ - $ - 4 $ - $ - $ - $ - Margin The law allows a "margin held in reserve". The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of total cost of contract 6.0% S DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet I Costing Workbook For Janitorial & Grounds Maintenance f Contracts Under the Qualified Rehabilitation Facilities Program JIL I G1 -Ig59 Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 I ~ II i SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services 07302007 Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. i QRF Name Pathway Enterprises Inc. Project City of Ashland Parks and Rec Oak Knoll Restrooms 18-19 I Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 532.83 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 25.57 Subtotal l $ 558.40 Labor Direct Labor (from labor daily worksheet) 1 $ 1,311.06 Overhead See Overhead Worksheet FT77_ 473.60 Delivery Transportation (from Trans & Reserve worksheet) - Total Before Margin $ 2,343.05 i Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 149.56 Total Bid Yearly $ 2,492.61 Monthly $ 207.72 i I i it DAS Form #12 J Revision 10-03 Page 1 Summary Sheet RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises Inc. Cit of Ashland Parks and Rec Oak Knoll Restrooms 18-19 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 - $ - $ - 2 410 QM HEPASTAT 256 4 GL/CS 21.72 0.1250 $ 2.72 $ 32.58 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.0625 $ 1.28 $ 15.38 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 5 #98 LT DUTY SCOURING PAD 20/CS 0.72 1.0000 $ 0.72 $ 8.64 6 SUSTAINABLE EARTH 11166 DISINFECTANT 42.40 0.0625 $ 2.65 $ 31.80 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 0.0625 $ 5.50 $ 66.00 8 SUSTAINABLE EARTH #70 WASHROOM CLEANE 97.44 0.0625 $ 6.09 $ 73.08 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0625 $ 0.38 $ 4.51 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 0.5000 $ 1.01 $ 12.06 11 A-BEN-A-QUI VANDALISM PASTE 12-200 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 0.5000 $ 1.35 $ 16.20 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 0.2500 $ 2.00 $ 23.97 16 LAMBSWOOL DUSTER 28" 312FH 4.93 - $ - $ 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 $ - $ 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS FIN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 21 36" STD LAUNDERABLE DUST MOP GN 121 11.45 - $ - $ - 22 36" JUMBO DUST MOP FRAME 7.69 $ $ - 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 - $ - $ - 26 BARKEEPERS FRIEND 20OZ BTL 2.65 0.5000 $ 1.33 $ 15.90 27 24 OZ BTL 1.25 0.5000 $ 0.63 $ 7.50 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ $ 31 $ $ 32 $ $ 33 $ $ 34 $ $ j 35 $ $ 36 $ $ 37 $ $ 38 $ $ 39 $ $ 40 $ $ 41 $ $ 42 $ $ 43 $ $ 44 $ $ 45 $ $ 46 $ $ 47 $ $ 48 $ $ 1 49 $ $ 50 $ $ Total $ 44.40 $ 532.83 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises Inc. City of Ashland Parks and Rec Oak Knoll Restrooms 18-19 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Burnishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project #of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum S 551.46 36 12 33% $ 183.82 100% $ 163.82 0 $ 2 Wave Break Busket & Press 5 76.72 36 12 33% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron $ 79.07 36 12 33% $ 26.36 100% $ 26.36 0 $ 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 16 12 17 12 18 12 19 12 20 12 Areas in green are formula driven. Total $ 25.57 Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises Inc. Citv of Ashland Parks and Roc Oak Knoll Rcsuooeu 18-19 Worker Work Hourly %Pro- Sub- FICA Sub- Workers Sub- Unempioy- Sub- Other Other Benefits Other Benefits Daily)Per Times Anniiiii al Annual Hours Description Hours Rate ductivi Total / Total2 comp% Total 3 runt % Total4 Benefits % Month/ $ SubTotal5 Item Labor Per Yr. Labor Labor t Janitor Daily 1.00 S 14.28 100% S 1428 0.0765 s 1.09 2.60% S 0.37 1.42% S 0.20 29.60% E 4.23 S 20017 52 S 1,049.01 52.00 2 Su ervisor 075 $ 20.51 100% S 15.46 0.0765 S 1.18 2.60% S 0.40 1.42% S 0.22 29.60% S 4.58 S 21484 12 $ 262.04 9.00 3 $ - S E $ S - E $ 0. OF 4 S s E - s - $ $ - $ 0.00 5 s s T_ S s $ s 0.00 8 S s $ - S $ S S 0.00 7 S S $ - S $ $ - S 0.00 8 s S S - $ $ S S g s 0.00 S S $ $ - S S 0.00 10 S $ - S $ - S S - s 0.00 12 s $ S - $ S - $ S 0.00 11 S - 13 E $ - $ s - $ s 0.00 S $ S S S - S S 0.00 14 15 S S s S - $ S S 0.00 $ $ - S $ S - $ $ 0.00 16 $ $ s - $ S $ - $ 0.00 17 $ $ S - $ S - s - $ 0.00 18 $ - $ $ - $ S S - $ 0.00 19 $ - S S S S S S 0.00 20 S $ S $ S S S O,pp Total S 42.01 Total S 1,311.06 61A0 Areas in green are formula driven. Ust'Cdher Benefits" Provided Work Hours = Breakdown total "work hours" (see Overview) into hours or partial hours required per time or per item. PTO+ HOLIDAY 11.53% Subtotal 1 - Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. LIFE+ HEALTH INSURANCE 16,43% Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 1401K 1.64% 29.60% Subtotal 3 - Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. S = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $100, then only $50 would be allocated to this column. Subtota15 = This column may be a combination of both Other Benefits % and Other Benefits Monthly S. Daily Per Item Labor= The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of costing a project, it's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, Inspection eta) may be captured as Overhead, and will be discussed later, Direct labor is that which is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and Capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as `work hours'. That is, the total number of hours that will be required to complete a task or project The first and perhaps most critical step Is to identify the work and break it down into Its component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step Is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates Into a figure that represents the total number of hours per service. That figure is the required 'work hours.' This number will stay the same regardless of how many people are working. For example, 8 Ncrork hours' can be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 130% productivity for 4 hrs, each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 hrs. each. (8x.50=4, 4x2=8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, including arose on which you pay workers sub-minimum wages based on productivity, require you to pa a'prevailing wage.' Check the contraal Also, be sure to add the appropriate *Other Payroll Expense' (OPE) for your organization onto the wage. Matching FICA Workers Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, refirement, etc.) After you've established the direct labor cost per time or per item, you can extend the time frame to come up with the annual requirement On a service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of $20,800.00 per year. (80 x 5 = 400, 400 x 52 - 20,800). For monthly cost divide the annual cost by 12 (in this case you get 51733.33/month). OAS Form 012 J Revision 10.03 Page 4 Direct Labor Sheet OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpris City of Ashland Parks and Rec Oak Knoll Restrooms 18-19 There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent o ot8 Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your 1g organization that go back a year or more. Add together the expenditures that make up the overhead cost (see worksheet below). Now add this figure to the Raw materials, OireU labor and Delivery for a total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If Financial records are not available estimate the overhead expenses as best you can, estimate O R other costs as best you can, and use the same formula to gel a percentage. t 2. Enter Allocated Overhead as aDollar-Figure Sum Dollar-Figure Sum Method: You can snler the dollar amount you are allocating to overhead in the box if you are confident that you can OR allocate overhead items to this particular project. You can use the Worksheel as a loot (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year. Input all the costs of the entire entily as detailed below. Line items which are not detailed below should be input into the cells marked "other, please include a desuiption. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year and Payroll report . Do not include hours which can be classified as management or administrative costs. (including these costs into the direct labor hour total will deflate the actual costs.) The worksheet vAll compule the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheet on Below Overhead per labor hour S Time required to complete contract 81 Total Assigned Overhead $ Worksheet WORK AREA: Total Annual O orations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense $ 11,440.95 Management Medical Insurance $ 10,920.00 Management Pension Plan Expense $ 4,150.00 AGENCY REVENUES = 5,675,312 Sales &Administrative Salaries $ 415,594.00 AGENCY INDIRECT EXPENSES = 1,105,315.95 Sales d Administrative Payroll Tax Expense $ 64,354.00 OVERHEAD 19% Sales & Administrative Medical Insurance $ 40,055.00 Sales b Administrative Pension Plan Expense $ 10 200.00 Office Rent Advertising and Public Education $ 14,855.00 Background Checks a Urinalysis $ 3,189.00 Professional b Accounting I Audit Fees $ 81,708.00 Training a Worker Safely Insurance S 38,192.00 Telephone $ 7,185.00 Uldiies S 20,452.00 Property TaxestUcensesrFess S 8,270.00 Dues d Subscriptions Depreciation-office building S 15 061.00 Depreciation-office equipment S 14,893.00 Repairs a Maintenance-office S 22,744.00 Cleaning and Maintenance $ 21,346.00 Office Equipment Rental $ 7,886.00 Office Supplies $ 19 033.00 Postage d Freight $ - Rehab $ 25,023.00 Miscellaneous Expense $ 12,999.00 Bad Debts $ INTEREST EXPENSE $ 18,981 00 EMPLOYEE ACTIVITIES $ 20,021.00 AUTO REPAIRS $ 15,807.00 MANAGEMENT CONTRACT S 136 457.00 S 207 487.95 TOTAL INDIRECT COSTS $ 667,6Z.00 CPI Factor fmm BLS (sea ink belea) 3.15% 115% i ntm rrvrau ds ac.rrosrmosasau tare Total $ 1,140,133.40 { DAS Form g12 J Revision 10-03 Page 5 Overhead Computation Sheet I I Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises Inc. Project Costing Worksheet Cit of Ashland Parks and Rec Oak Knoll Restrooms 18-19 The State of Oregon reimburses employee use of their own vehicles on State business by the mile. The amount reimbursed per mile is based on a federal guideline which can be retrieved by following the link below to the GSA web site. This standard reimbursement is the standard for QRF cost calculation. Gas, oil, vehicle maintenance and repair are considered part of Delivery costs. The labor required (the driver and the workers if they are on the clock), should be captured in the Direct Labor worksheet. Vehicle costs may only be captured in the "Equipment, Tools & Subcontracts" spreadsheet or "Trans & Reserve" spreadsheet within this workbook. It is not permissable to capture costs in both spreadsheets. It is permisible to use this spreadsheet to capture vehicle costs for the following situations: (a) Transporting the individuals who will perform the service to the location where the service will be provided. (b) Services dependent on vehicle in the provision of that service. GSA - Privately Owned Vehicle (POV) Mileage Reimbursement Rates Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 $ - $ - 2 $ - $ - 3 $ - $ - 4 $ - $ _ d $ - $ - i Margin The law allows a "margin held in reserve". The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of total cost of contract 6.0% i DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet Costing Workbook For Janitorial & Grounds Maintenance I Contracts Under the Qualified Rehabilitation Facilities Program f i~ S f i r , A _A, l t fi ~~FI k ~ ~ 'E ~ f O F to 5 9../ Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services 07302007 Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises Inc. Project Parks and Recreation Pioneer Hall & Community Center 18-19 Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 954.55 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal 1 $ 1,190.30 Labor Direct Labor (from labor daily worksheet) $ 19,297.79 Overhead See Overhead Worksheet $ 5,190.32 Delivery Transportation (from Trans & Reserve worksheet) $ I Total Before Margin $ 25,678.41 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 1,639.05 Total Bid Yearly $ 27,317.46 Monthly $ 2,276.46 { I t i DAS Form #12 J Revision 10-03 Page 1 Summary Sheet RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises Inc. Parks and Recreation Pioneer Hall & Community Center 18-19 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/S RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.2500 $ 5.43 $ 65.16 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.1250 $ 2.56 $ 30.75 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 5 #98 LT DUTY SCOURING PAD 20/CS 0.72 1.0000 $ 0.72 $ 8.64 6 SUSTAINABLE EARTH #66 DISINFECTANT 42.40 0.1250 $ 5.30 $ 63.60 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 0.1250 $ 11.00 $ 132.00 8 SUSTAINABLE EARTH #70 WASHROOM CLEANE 97.44 0.1250 $ 12.18 $ 146.16 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-200 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ 31.08 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 0.1250 $ 1.43 $ 17.18 22 36" JUMBO DUST MOP FRAME 7.69 0.1250 $ 0.96 $ 11.54 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 - $ - $ - 26 BARKEEPERS FRIEND 200Z BTL 2.65 1.0000 $ 2.65 $ 31.80 27 24 OZ BTL 1.25 1.0000 $ 1.25 $ 15.00 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ - $ - 31 $ $ 32 $ $ 33 $ $ 34 $ $ 35 $ $ 36 $ $ 37 $ $ 38 $ $ 39 $ $ 40 $ $ 41 $ $ 42 $ $ 43 $ $ 44 $ $ 45 $ $ 46 $ $ 47 $ $ 48 $ $ 49 $ $ 50 $ $ Total $ 79.55 $ 954.55 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises Inc. Parks and Recreation Pioneer Hall & Community Center 18-19 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money Is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum $ 551.46 36 12 33% $ 183.82 100% $ 183.82 1 $ 183.82 2 Wave Break Busket & Press $ 76.72 36 12 T% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron $ 79.07 36 12 331% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 16 12 17 12 18 12 19 12 20, 12 Total $ 235.75 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. u of Units = Multiply by units needed to complete the contract/service. Cnst = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises Inc. Parks and Recreation Pioneer Hall d Communih• Center 19-19 Worker Work Hourly % Pro- Sub- FICA Sub- Workers Sub- Unemploy- Sub- Other Other Benefits Other Benefits Daily/Per Times Annual/Total Annual Hours Description Hours Rate ductivity Total1 Total2 comp% Total3 ment % Total4 Benefits % Monthly$ SubTotal5 It.. Labor Per Yr. Labor Labor 1 Janitor 1 Dail 2.00 S 14.81 100% S 29.62 0.0765 $ 2.27 2,60% $ 0.77 1.42% S 0.42 29.60% S 8.77 S 41.64 365 $ 15,273.12 730.00 2 Supervisor 1.00 $ 20.61 too% S 20.61 0.0765 S 1.58 2.60% $ 0.54 1.42% S 0.29 29.60% $ 6.10 S 29,12 52 $ 1.514.02 52.00 3 Janitor 1 Monthly 4.00 S 14.81 100% S 59.24 0.0765 S 4.53 2.60% $ 1.54 1.42% E 0.84 29.60% S 17.54 S 1 12 E 1,004.26 48.00 4 High Speed Burnish 3.00 $ 14,81 100% S 44.43 0.0765 E 3.40 2.60% $ 1.16 1.42%.$ 0.63 29.50% S 13.15 $ 62.77 24 S 1,506.39 72.00 5 E S S - $ S - S - S 0.00 6 S E $ $ $ $ S 0.00 7 E S $ - $ $ - $ S 0.00 8 f S $ $ $ - S 8 0.00 9 $ $ $ $ f S $ 0.00 10 $ S - S f S $ E 0.650- 11 S $ S S - $ S S 0.00 12 It $ - f f IS S $ 0.00 13 s $ $ - $ - S S $ 0.00 14 S - $ $ f - S S E 0.00 15 E $ $ S S S $ 0.00 16 $ - $ S $ - $ S $ 0.00 17 $ - S S $ S S $ 0.o0 18 $ $ - S S 19 $ $ $ 0.00 f - $ - $ $ - S S $ 0.00 20 f $ S $ S S - $ 0.00 Total S 217.41 Total $ 19297.79 902.00 Areas in green are formula driven. List "Other Benefits" Provided Work Hours = Breakdown total 'work hours' (see Overvew) into hours or partial hours required per time or per item. PTO. HOLIDAY 1153% Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. LIFE + HEALTH INSURANCE 16.43% Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.54% 29.60% Subtotal 3 - Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. S = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $100, then only $50 would be allocated to this column. Subtotal s = This column may be a combination of bath Other Benefits % and Other Benefits Monthly Daily Per Item Labor - The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of costing a project, it's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection etc) may be raptured as Overhead, and will be discussed later. Direct labor is that which is specifically identifiable as a part of the contract requirements. 11 should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 50% supervising. In that case you would include 500% of that person's time as direct labor and capture the other 50 % , as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as' work hours'. That is, the total number of hours that will be required to complete a task or project The first and perhaps most critical step is to identify one work and break it down into its component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required' work hours.' This number will stay the some regardless of how many people are working. For example, 8'Work hours' ®n be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 100% productivity, for 4 hrs. each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 hrs. each. (8x.50=4, 4x2=8) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, including those on which you pay workers sub-minimum wages based on productively, require you to pay a'prevailing vrage.' Check the conlrectl Also, be sure to add the appropriate 'Other Payroll Expanse' (OPQ for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, etc.) After you've established the direct labor cost per time or per item, you can extend the time frame to come up with the annual requirement. On a service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days perweek and 52 weeks per year, would give you an annual direct labor coat of $20,8D0.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cost divide the annual cost by 12 (in this case you get $1733.33/month). OAS Fortin S12 J Revision 10-03 Page 4 Direct Labor Sheet 7 OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpris Parks and Recreation Pioneer Hall & Community Center 18-19 There are any different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it Is best to have financial records for your 19 organization that go back a year or more. Add together the expenditures (hat make up the overhead cost (see worksheet below). Now add this figure to the Raw materials, Direct tabor and Delivery for a total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage ! of the total cost. If financial records are not available estimate the overhead expenses as best you can, estimate . 0 R other costs as best you can. and use the same formula to get a percentage. 2. Enter Allocated Overhead as a oiler-Figure Sum ' Dollar-Figure Sum Method: You can enter the dollar amount you am allocating to overhead in the box if you are confident that you can OR allocate overhead items to this particular project. You can use the Worksheet as a tool (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year, Input all the costs of the entire entity as detailed below. Line items which are not detailed below should be input into the cells marked other-; please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or 10 conform to the current year budget. Next, input into the cell below the total direct labor hours paid out by your entire organization for the some period. These figures should be found on the year end payroll report. Do not include hours which can be classified as management or administrative costs. (Including these cosls into the direct labor hour total wit denote the actual costs.) The worksheet will compute the overhead as a line item cost by dividing the total projected labor t hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours j Input Total from Worksheet on Below Overhead per labor hour f Time required to complete contract 902 y Total Assigned Overhead S Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries S 44,500.00 Management Payroll Tax Expense $ 11,440.95 Management Medical Insurance $ 10,920.00 AGENCY REVENUES=5,675,312 Management Pension Plan Expense $ 4,150.00 AGENCY INDIRECT EXPENSES =1,105,315.95 Sales & Administrative Salaries $ 415,594.00 OVERHEAD 19% Sales & Administrative Payroll Tax Expense $ 64,354.00 Sales & Adminishalive Medical Insurance $ 40,055.00 Sales & Administrative Pension Plan Expense $ 10,200.00 Office Ron( Advertising and Public Education f 74,855.00 ' Background Checks & Urinalysis s 3 189.00 Professional & Accounting I Audit Fees $ 81,708.00 Training 8 Worker Safely Insurance $ 38,192.00 Telephone $ 7,185.00 Utilities S 20,452.00 Properly Taxes/Licenses/Fees s 8,270.00 Dues & Subscriptions Depredation-office building $ 15,061.00 Depredation-office equipment $ 14,893.00 Repairs & Maintenance-office S 22,744.00 Cleaning and Maintenance $ 21,346D0 Office Equipment Rental $ 7,886.00 Office Supplies $ 19033.00 Postage & Freight E Rehab $ 25,023.00 Miscellaneous Expense $ 12,999.00 Bad Debts $ INTEREST EXPENSE $ 18,981.00 EMPLOYEE ACTIVITIES $ 20,021.00 AUTO REPAIRS $ 15,807.00 MANAGEMENT CONTRACT S 136,457.00 TOTAL INDIRECT COSTS $ 897,848.00 $ 207 467.95 CPI Factor tram aLS (sea tax liftw) 3.15 h 115% 1~M~W ds aoveoelmowea Mm Total f 1,1~0,1g0.40 DAS Form 012 J Revision 10-03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises Inc. Project Costing Worksheet Parks and Recreation Pioneer Hall & Community Center 18-19 The State of Oregon reimburses employee use of their own vehicles on State business by the mile . The amount reimbursed per mile is based on a federal guideline which can be retrieved by following the link below to the GSA web site. This standard reimbursement is the standard for QRF cost calculation. Gas, oil, vehicle maintenance and repair are considered part of Delivery costs. The labor required (the driver and the workers if they are on the i clock), should be captured in the Direct Labor worksheet. Vehicle costs may only be captured in the "Equipment, I Tools & Subcontracts" spreadsheet or "Trans & Reserve" spreadsheet within this workbook. It is not permissable to capture costs in both spreadsheets. It is permisible to use this spreadsheet to capture vehicle costs for the following situations: (a) Transporting the individuals who will perform the service to the location where the service will be provided. (b) Services dependent on vehicle in the provision of that service. GSA - Privately Owned Vehicle (POV) Mileage Reimbursement Rates Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 $ _ $ 2 $ - $ - 3 $ - $ - 4 $ - $ - $ - $ - Margin The law allows a "margin held in reserve". The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of total cost of contract 6.0% e DAS Form #12 J j Revision 10-03 Page 6 Trans-Delivery and Margin Sheet Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program I A -A, Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 d Salem, Oregon 97301 (503) 378-4642 i SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services 07302007 Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises Inc. Project City of Ashland Parks and Recreation Senior Center 18-19 Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 1,008.28 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal1 $ 1,244.03 Labor Direct Labor (from labor daily worksheet) $ 12,996.73 Overhead See Overhead Worksheet $ 3,607.66 Delivery Transportation (from Trans & Reserve worksheet) $ - Total Before Margin $ 17,848.42 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 1,139.26 Total Bid Yearly $ 18,987.68 Monthly $ 1,582.31 i } DAS Form #12 J Revision 10-03 Page 1 Summary Sheet I i RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises Inc. City of Ashland Parks and Recreation Senior Center 18-19 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/S RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 2S6 4 GL/CS 21.72 0.2500 $ 5.43 $ 65.16 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.1250 $ 2.56 $ 30.75 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 5 #98 LT DUTY SCOURING PAD 20/CS 0.72 1.0000 $ 0.72 $ 8.64 6 SUSTAINABLE EARTH 466 DISINFECTANT 42.40 0.1250 $ 5.30 $ 63.60 7 SUSTAINABLE EARTH #64 NUETRAL CLEANER 88.00 0.1250 $ 11.00 $ 132.00 8 SUSTAINABLE EARTH #70 WASHROOM CLEANE 97.44 0.1250 $ 12.18 $ 146.16 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.01 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-20 O 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ 31.08 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 0.1250 $ 1.43 $ 17.18 22 36" JUMBO DUST MOP FRAME 7.69 0.1250 $ 0.96 $ 11.54 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.2500 $ 4.48 $ 53.73 26 BARKEEPERS FRIEND 20OZ BTL 2.65 1.0000 $ 2.65 $ 31.80 27 24 OZ BTL 1.25 1.0000 $ 1.25 $ 15.00 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ $ - 31 $ $ 32 $ $ 33 $ $ 34 $ $ 35 $ $ 36 $ $ 37 $ $ 38 $ $ 39 $ $ 40 $ $ 41 $ $ 42 $ $ 43 $ $ 44 $ $ 45 $ $ 46 $ $ 47 $ $ 48 $ $ 49 $ $ 501 1 $ $ Total $ 84.02 $ 1,008.28 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises Inc. City of Ashland Parks and Recreation Senior Center 18-19 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishktg/Floor machines Carpel extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 Sensor Vacuum $ 551.46 36 12 33% 3 183.82 100% $ 183.82 1 $ 183.82 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron $ 79.07 36 12 33% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 16 12 17 12 18 12 19 12 20, 12 Total $ 235.75 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAS Form #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises Inc. City or Ashland Parks and Recreation Scnior Ccmcr 19.19 Worker Work Hourly % Pro- Sub- FICA Sub- Workers Sub- Unemploy- Sub- Other Other Benefits Other Benefits DailyfPer Times AnnualfTotal Annual Hours Description Hours Rate ductivity Total 1 Total 2 como% Total 3 ment % Total4 Benefits % Month) $ SubTotal 5 Item Labor Per Yr. Labor Labor 1 Janitor Dail 1.75 S 14.26 100% $ 24.96 000765 S 1.91 2.60% $ 0.65 1.42% S 0.35 29.60% $ 7.39 $ 35.25 312 $ 10999.23 546.00 2 Supervisor 1.00 S 20.61 100% S 20.61 0.0765 $ 1.58 2.60% $ 0.54 1.42% $ 0.29 29.60% $ 6.10 S 29.12 52 S 1,514.02 52.00 3 $ $ S E S - $ 5 0.00 4 $ $ $ $ $ - $ 5 0.00 5 Janitor Burnish 1.00 S 14026 100% S 14026 0.0765 $ 1.09 2060% S 0.37 1.42% $ 0.20 29.60% S 4022 $ 20.15 24 S 483.48 24.00 8 $ $ - $ - $ - $ S $ 0.00 7 $ S $ $ S S S 0.00 8 S E - S $ - $ $ S 0.00 9 S E - S $ $ S S 0.00 10 E $ - S $ $ S 5 0.00- I I S $ - E - S - S S S 0.00 12 S S S - S S $ 5 0.00 13 S S $ $ S $ 5 0.00 14 $ s It $ s $ S 0.00 15 S $ - $ s - $ $ S O0 16 $ S E - E $ $ S 0.00 17 S - $ $ - s $ S S 0.00 18 $ - S - s - s $ S $ 0.00 19 S S - E S - E E S 0.00 20 S $ $ s - is S S 0.00 Total S 84.51 Totai $ 12,996.73 622.00 Areas in green are formula driven. List "Other Benefits" Provided Work Hours = Breakdown total'wvork hours' (see Overview) into hours or partial hours required per time or per item. PTO + HOLIDAY 11.53% Subtotal 1 - Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. LIFE + HEALTH INSURANCE 16.43% Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.64% 29.60% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 - Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits % = Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. S = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If Iheir monthly benefit is $100, then only $50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits % and Other Benefits Monthly Daily Per Item Labor = The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by dailylper item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of costing a project, it's Important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection etc.) may be captured as Overhead, and will be dlsansed later. Direct labor is that which is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 50% supervising. In that case you would include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as work hours". That is, the total number of hours that will be required to complete a task or project. The first and perhaps most critical step is to identify the work and break it down into its component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing fi00f5, etc. (be sure to account for lime between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of tours per service. That figure is the required work hours." This number will stay the same regardless of how many people are working. For example, 8 work hours' can be accomplished by I person working at 100% productivity for 8 hrs. (1x8--8), or 2 people working at 100% productivity for 4 hm each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 tits. each. (6x.50=4, 4x2'-B) Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, Including those on which you pay workers sub-minimum wages based on productivity, require you to pa a "prevailing wage.' Check the contmell Also, be sure to add the appropriate 'Other Payroll Expense' (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid try your organization (e.g. medical, dental, retirement, etc.) After you've established the direct labor cost per time or per item, you can extend the time frame to come up with the annual requirement. On a service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per time, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of $20,800.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cost divide the annual cost by 12 (in this case you get $1733.33Imonth). DAS Form C12 J Revision 10-03 Page 4 Direct Labor Sheet OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpris City of Ashland Parks and Recreation Senior Center 18-19 There are any different ways organizations allocate overhead internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) I FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! A I Percent of Total Cost Method: For every dollar spent producing a foal product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your 19 organization that go back a year or more. Add together the expenditures that make up the overhead cost (see worksheet below). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the Figure for overhead by the figure for total costs. The result is a parent [hat represents overhead as a percentage of the total cost. If financial records are not available estimate the overhead expenses as best you can, estimate OR other costs as best you can, and use the same formula to get a percentage. 2. Enter Allocated warhead as a Dollar-Figure um Dollar-Figure Sum Method: r~ You can enter the dollar amount you are allocating to overhead in the box if you are confident that you can O R allocate overhead items to this particular project. You can use the Worksheet as a tool (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify ovedread costs, you need [he financial records for your organization or division for the past year. Input all the costs of the entire entity as detailed below. Line items which are not detailed below should be input into the cells marked "other"; ! please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budge[. Next, input into the cell below the total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report Do not include hours vi rich can be classified as management or administrative costs. (Including these costs into the direct labor hour total Oil denote the actual coals.) The worksheet sill compute the overhead as a line item cost by dividing the total projected labor f hours for the contract into the total projected labor hours for the current year. k ) Total Annual Direct Labor Hours Input Total from Worksheet on Below Overhead per labor hour S Time required to complete contract 622 Total Assigned Overhead S Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries S 44.500.00 Management Payroll Tax Expense $ 11,440.95 Management Medical insurance $ 10,920.00 AGENCY REVENUES = 5,675,312 Management Pension Plan Expense S 4,150.00 AGENCY INDIRECT EXPENSES= 1,105,315.95 Sales & Administrative Salaries $ 415.594.00 OVERHEAD 19% Sales & Administrative Payroll Tax Expense $ 64.354.00 Sales & Administrative Medical Insurance S 40 055.00 Beles & Administrative Pension Plan Expense $ 10,200.00 Office Rant Advertising and Public Education S 14,855.00 Background Checks & Unnalysis $ 3,189.00 Professional IS Accounting / Audit Fees $ 81,708.00 Training & Worker Safety Insurance S 38,192.00 Telephone S 7,165.00 Utilities $ 20,452.00 Property TaxesA icenseslFees S 6,270.00 Dues & Subscriptions Depreciatlon-office building s 15,061.00 Depreciat[on-office equipment S 14,893.00 Repairs & Maintenance-office $ 22 744.00 Cleaning and Maintenance $ 21,346.00 Once Equipment Rental $ 7,886.00 Once Supplies S 19 033.00 Postage & Freight $ Rehab $ 25,023.00 Miscellaneous Expense S 12,999.00 Bad Debts $ INTEREST EXPENSE S 18,991.00 EMPLOYEE ACTIVITIES S 20 021.00 AUTO REPAIRS $ 15,807.00 MANAGEMENT CONTRACT S 136,457.(10 TOTAL INDIRECT COSTS $ 897,848.00 S 207,467.95 CPI Factor from BLS Isee elk bel w) 3.15% 3.15% [coo /Mwx ots aoveeal."yaau 1mm Total $ 1,140,133.40 DAS Form 1112 J Revision 10-03 Page 5 Overhead Computation Sheet Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises Inc. Project Costing Worksheet Cit of Ashland Parks and Recreation Senior Center 18-19 The State of Oregon reimburses employee use of their own vehicles on State business by the mile . The amount reimbursed per mile is based on a federal guideline which can be retrieved by following the link below to the GSA web site. This standard reimbursement is the standard for QRF cost calculation. Gas, oil, vehicle maintenance and repair are considered part of Delivery costs. The labor required (the driver and the workers if they are on the clock), should be captured in the Direct Labor worksheet. Vehicle costs may only be captured in the "Equipment, Tools & Subcontracts" spreadsheet or "Trans & Reserve" spreadsheet within this workbook. It is not permissable to capture costs in both spreadsheets. It is permisible to use this spreadsheet to capture vehicle costs for the following situations: (a) Transporting the individuals who will perform the service to the location where the service will be provided. (b) Services dependent on vehicle in the provision of that service. GSA - Privately Owned Vehicle (POV) Mileage Reimbursement Rates Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 $ _ $ _ 2 $ - $ - 3 $ - $ - 4 $ - $ - $ - $ - i Margin The law allows a "margin held in reserve". The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of total cost of contract DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet 1 I Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program 4 ~ "ter c + ,a ,l ■ a ■ ~ tom. 0 jf P { OF .1~ Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises, Inc. Project City of Ashland The Grove 2018-2019 i Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 1,008.28 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 235.75 Subtotal1 $ 1,244.03 Labor Direct Labor (from labor daily worksheet) $ 4,888.96 Overhead See Overhead Worksheet $ 1,553.69 k Delivery j Transportation (from Trans & Reserve worksheet) $ - } I Total Before Margin $ 7,686.68 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 490.64 Total Bid Yearly $ 8,177.32 Monthly $ 681.44 I I i i DAS Form #12 J Revision 10-03 Page 1 Summary Sheet k RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland The Grove 2018-2019 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as "Items to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan s Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.0833 $ 0.27 $ 3.24 2 #10 QM HEPASTAT 256 4 GL/CS 21.72 0.2500 $ 5.43 $ 65.16 3 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0,1250 $ 2.56 $ 30.75 4 #63 LT DUTY SCRUB SPONGE 20/CS 0.88 1.0000 $ 0.88 $ 10.56 8 SUSTAINABLE EARTH #70 WASHROOM CLEANE 97.44 0.1250 $ 12.18 $ 146.16 9 SS CLEANER POLISH 12-15 OZ/CS 6.01 0.0833 $ 0.50 $ 6.6-1- 10 GLEME GLASS CLEANER 12-19 OZ/CS 2.01 1.0000 $ 2.01 $ 24.12 11 A-BEN-A-QUI VANDALISM PASTE 12-20 0 8.88 0.1250 $ 1.11 $ 13.32 12 7" TOOTHBRUSH W/NYL BRST 12/CS 1.42 1.0000 $ 1.42 $ 17.04 13 ANGLE BROOM FLAGGED END W/ HDL 5.99 0.1670 $ 1.00 $ 12.00 14 TRIGGER SPRAYER HEAD HD FOR 32 OZ B 2.70 1.0000 $ 2.70 $ 32.40 15 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 1.0000 $ 7.99 $ 95.88 16 LAMBSWOOL DUSTER 28" 312FH 4.93 0.2500 $ 1.23 $ 14.79 17 LAMBSWOOL DUSTER FLEXIBLE 33-58" OV 10.36 0.2500 $ 2.59 $ 31.08 18 MR CLEAN MAGIC ERASER ALL PURPOSE 6 8.42 0.2500 $ 2.11 $ 25.26 i 19 TURKS HEAD BOWL BRUSH POLY 12/CS BN 5.47 0.2500 $ 1.37 $ 16.41 ! 20 "CLOSED FOR CLEANING" HANGING SIGN 25.10 0.0833 $ 2.09 $ 25.09 I 21 36" STD LAUNDERABLE DUST MOP GN 12/ 11.45 0.1250 $ 1.43 $ 17.18 22 36" JUMBO DUST MOP FRAME 7.69 0.1250 $ 0.96 $ 11.54 23 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.1250 $ 2.06 $ 24.66 24 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.2500 $ 4.42 $ 52.98 t 25 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.2500 $ 4.48 $ 53.73 26 BARKEEPERS FRIEND 20OZ BTL 2.6S 1.0000 $ 2.65 $ 31.80 27 24 OZ BTL 1.25 1.0000 $ 1.25 $ 15.00 28 CLEANING TOWELS (60) 19.95 0.0833 $ 1.66 $ 19.94 29 DUSTPAN 2.65 0.2500 $ 0.66 $ 7.95 30 $ - $ - 31 $ - $ - 32 $ - $ - 33 $ - $ - 34 $ - $ - 35 $ - $ - 36 $ - $ 37 $ - $ - 38 $ - $ - 39 $ - $ - 40 $ - $ - Total $ 84.02 $ 1,008.28 i Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet g i RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises, Inc. City of Ashland The Grove 2018-2019 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ - Do not include any vehicle or transportation costs in this schedule. Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the S asset is an allowable expense and should be listed. $ Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year %Use Unit Cost Units Cost 1 Sensor Vacuum S 551.46 36 12 33% $ 183.82 100% $ 183.82 1 $ 183.82 2 Wave Break Busket & Press $ 76.72 36 12 33% $ 25.57 100% $ 25.57 1 $ 25.57 3 Brute 44 Gal w Apron $ 79.07 36 12 33% $ 26.36 100% $ 26.36 1 $ 26.36 4 12 5 12 6 12 7 12 8 12 9 12 10 12 11 12 12 12 13 12 14 12 15 12 Total $ 235.75 Areas in green are formula driven, Useful Lire of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. DAB Forth #12 J Revision 10.03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Pathway Enterprises, Inc. Project Costing Worksheet city or Ashland The Grove 2019.2019 Worker Work Hourly % Pro. Sub- FICA Sub- Workers Sub- Unemploy- Sub- Other Other Benefits Other Benefits Daily/Per Times Annual/Total Annual Hours Description Hours Rate ductivi Total' Total 2 comp% Total 3 ment % Tolal4 Benefits % Monthly $ SubTotal 5 Item Labor Per Yr. Labor Labor 1 Janitor 4.00 S 14,26 100% S 57.04 0.0765 S 4.36 2.60% S 1.46 1.42% $ 0.81 29.601/. S 16488 $ 80.58 52 S 4190.18 208.00 2 Supervisor 1400 S 20.61 100% $ 20.61 0.0765 $ 1.58 2460% S 0.54 142% $ 0.29 29.50% S 6.10 $ 29.12 24 S 698.78 24.00 3 S $ S - $ $ S S 0,00 5 4 $ - $ $ 0,00 - - 5 S S S $ 000 8 $ S - $ S S - S - s - S $ 0.00 7 S - $ S $ - S - S $ 0.00 8 S - S S - S - S $ 0 $ 0.00 S - $ S - $ S s S 0.00 10 S - $ $ - IS s S S - 0.00 11 $ - s $ s S - $ S 0.00 12 S S $ - S $ S S 0.00 13 $ s $ s $ S $ 0.00 14 s - S - $ S - $ $ s 0.00 15 S - s - $ - $ $ S s 0000 Total $ 109.70 Total S 4,888.96 232.00 Areas in green are formula driven. List "Other Benefits" Provided Work Hours = Breakdown total "work hours (see overview) into hours or partial hours required per time or per item. PTO + HOLIDAY 11.53% Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage 0 required) and then multiply by % productivity. LIFE + HEALTH INSURANCE 1613% Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.64% 29.60% Subtotal 3 = Computed by multiplying subtotal i by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits % - input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. S = input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $1 DO, then only $50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits %and Other Benefits Monthly S. Daily Per Item Labor = The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per item labor Annual Labor Hours = Work hours multiplied by times per year For purposes of costing a project, ft's Important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection etc.) may be captured as Overhead, and will be discussed later. Direct labor is that which is specifically identifiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of his/her time in direct labor functions and the other 5D% supervising. In that case you would include 50% of that person's time as direct labor and capture the other SO%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as 'work hours". That is, the total number of hours that will be required to complete a task or project. The first and perhaps most critical step is to identify the work and break it down into its component tasks. The description of work or specifications in the contract is the place to start. Once the component tasks are identified, the next step is to estimate the time that will be required to accomplish each task. Since ttus esfimato time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sure to account for time between jobs also). Next, estimate the time required for each component task. Then, wmple those estimates into a figure that represents the total number of flours per service. That figure is the required 'Work hours' This number will stay the same regardless of how many people are working. For example, 8'work hours" can be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 100% productivity for 4 hrsi each (2x4=8). It could also be done by 8 people working at 50% productivity for 2 tire. each. (Bx.50=4, 4x2=8) Once you know the total work hours per service or per Item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, Including those on which you pay workers sub-minimum wages based on productivity, require you to pa a'prevailing wage,' Check the wntractl Also, be sure to add the appropriate "Other Payroll Expense' (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medial, dental, retirement, etc.) After you've established the direct lab" cost per time or per item, you can extend the time theme to come up with the annual requirement On a service contract multiply the daily cost by the number of days per year that you will provide the service. For example, a service with direct labor cost of $80.00 per 6me, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of $20,800.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cost divide the annual cast by 12 (in this case you get $1733.33/month), OAS Form 112 J Revision 10-03 Page 4 Direct Labor Sheet 4 t OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpds City of Ashland The Grove 2018-2019 i r There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). { In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW! Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your 19.00°k organization that go back a year or more. Add together the expenditures that make up the overhead cost (see t worksheet below). Now add [his figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If financial records are not available estimate the overhead expenses as best you can, estimate OR other costs as best you can, and use the same formula to gel a percentage. 2. Enter Allocated Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box if you are confident that you can OR allocate overhead Items to this particular project. You can use the Worksheet as a too] (if needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need Ilia fxancial records for your organization or division for the past year. Input ail the costs othe entlre ernity as detailed below. Line items which are not detailed below should be input into the cells marked "other"; ;1', ase include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the current year budget. Next. Input into Ilia cell below the total direci labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report . Do not include hours which can be classified as management or administrative costs. (Including these costs into the direct labor hour total will deflate the actual costs.) The worksheet will compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheet on Below Overhead per labor hour S Time required to complete contract 232 Total Assigned Overhead 3 k 6 Worksheet WORK AREA: i Total Annual O erations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense 3 11,440.95 Management Medical Insurance $ 10,920.00 Management Pension Plan Expense 3 4,150.00 AGENCY REVENUES=5,675,312 Sales& Administrative Salaries S 415,594.00 AGENCY INDIRECT EXPENSES 1,105,315.95 Sales & Administrative Payroll Tax Expense $ 64,354.00 OVERHEAD % 19% Sales & Administrative Medical Insurance $ 40,055.00 Sales & Administrative Pension Plan Expense $ 10,200 00 Office Rent Advertising and Public Education $ 14,855.00 Background Checks & Urinalysis S 3,189.00 Professional & Accounting I Audit Fees $ 81,708.00 Training & Worker Safety Insurance S 38,192.00 Telephone $ 7,185.00 Utilities $ 20,452.00 Property Taxes/Licenses/Fees S 8,270.00 Dues & Subscriptions Depfeclalion-office building S 15,061.00 Depreciation-office equipment 3 14,893.0 Repairs & Maintenance-office $ 22,744.00 Cleaning and Maintenance $ 21,346.0 Office Equipment Rental $ 7,886.00 Office Supplies 3 19,033.00 i Postage & Freight S Rehab $ 25023.00 Miscellaneous Expense $ 12,999.00 Bad Debts $ INTEREST EXPENSE $ 18,981 00 EMPLOYEE ACTIVITIES $ 20021.00 AUTO REPAIRS $ 15,807.00 i MANAGEMENT CONTRACT 3 136,457.00 TOTAL INDIRECT COSTS S 897,848.00 S 207 467.95 i i CPI Factor hom BLS (seal below) 1.65% f 6555 nWtt..wx b*s r. 31mosVegq tL I Total S 1,123,553.66 i I ! t DAB Form 912 J Revision 10-03 Page 5 Overhead Computation Sheet ( d Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises, Inc. Project Costing Worksheet City of Ashland The Grove 2018-2019 This category covers any costs associated with delivering your product or service to the buyer. A service contract, for example, will likely include the costs associated with getting the individuals who will perform the service to the place where the service will be performed. Gas, oil, vehicle maintenance and repair are all part of Delivery costs. Most often these costs can be recovered by charging a certain amount per mile. The State of Oregon reimburses 36 cents per mile for its employees who use their own vehicles on State business. That's not to say your costs may be less or more. The labor required (the driver and the workers if they are on the clock), should be captured in Direct Labor. If your costs are greater than the state allowed cost, please provide a detailed schedule on how you arrived at your cost per mile. i s Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 caravan $ - $ - 2 $ - $ _ 3 $ - $ - 4 $ - $ _ $ - $ - Margin 3 The law allows a "margin held in reserve" This is usually added as a percentage after all other costs have been calculated. The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. i Enter as a % of "Total Before Margin" 6.0% E DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet ! i I 1 Costing Workbook For Janitorial & Grounds Maintenance Contracts Under the Qualified Rehabilitation Facilities Program _ g m 1l~ rti a~ ~ I I Oregon State Department of Administrative Services Procurement, Fleet, and Surplus Services 1225 Ferry Street SE, U140 Salem, Oregon 97301 (503) 378-4642 F I I SUMMARY OF ANNUAL COSTS Oregon Department of Administrative Services 07302007 Project Costing Worksheet The summary sheet is linked to the other sheets in this workbook. Any area shaded in light green is either a formula or linked to another work sheet. The only manual input to this sheet will be to input the QRF name. The costs are to be divided into five categories: Raw Materials, Labor, Overhead, Delivery and Reserve Costs. Raw materials consist of supplies, small equipment & tools, and large or special equipment. Each category is detailed on the following sheets. Labor costs is direct labor used to produce or service the contract. Overhead costs is a line item charge which is computed on the overhead sheet. Transportation or delivery and reserve computations are also completed on the following sheets. All these costs will vary depending upon your organization and the specification for the project. Each sheet will have an example calculation and further instructions for completion. QRF Name Pathway Enterprises Inc. Project Parks Buildings Floors 18-19 Executive Director Signature: Raw Materials Per Time Use - Supplies (from supplies worksheet) $ 742.18 Equipment, Tools & Subcontracting (from small equipment worksheet) $ 541.32 Subtotal l $ 1,283.50 Labor Direct Labor (from labor daily worksheet) $ 1,289.29 Overhead See Overhead Worksheet $ 651.77 I Delivery Transportation (from Trans & Reserve worksheet) $ Total Before Margin $ 3,224.56 Reserve Margin Held in Reserve (from Trans & Reserve worksheet) $ 205.82 Total Bid Yearly $ 3,430.38 Monthly $ 285.86 P s i i i DAS Form #12 J Revision 10-03 Page 1 Summary Sheet I RAW MATERIALS Oregon Department of Administrative Services Supplies Project Costing Worksheet Pathway Enterprises Inc. Parks Buildings Floors 18-19 Raw Materials: This category is often spelled out in the Request for Offer (RFO). Language such as Stems to be provided by Contractor" will usually reflect Supplies or Raw Materials. In the case of a Service Contract this will likely include not only supplies required to perform the service each month, but also Equipment & Tools. In the case of a commodity contract the Raw Materials will be figured on a Per Item Manufactured basis. A custodial contract, for example, may require the following for month - Supplies: Paper products and soap Broom and dustpan Cleaning chemicals or products Floor Wax Spray bottles Scrub brushes or scouring pads Per Use/Per Item Manufactured - Supplies Item Unit Units Needed Monthly Annual Price Per Month Cost Cost 1 20" BL 5300 FLOOR PAD 5/CS 4.64 0.5 $ 2.32 $ 27.84 2 20" BN 7100 FLOOR PAD 5/CS 6.36 0.5 $ 3.18 $ 38.16 3 20" RE 5100 FLOOR PAD 5/CS 4.64 0 $ - $ - 4 20" WH 4100 FLOOR PAD 5/CS 4.64 0.25 $ 1.16 $ 13.92 5 DOODLEBUG PAD BN 20/CS 1.31 0.5 $ 0.66 $ 7.86 6 SCOTCH BRITE SURF PREP PAD 14X2010 12.36 0 $ - $ - 7 SCOTCH BRITE SURF PREP PAD 20" 10/C 8.69 0 $ $ 8 SCOTCH BRITE SPP 4-5/8"X10" 20/CS 2.12 0 $ $ 9 SCRAPER W/5 RAZOR BLADES 10/BX 3.24 0.25 $ 0.81 $ 9.72 10 DEFOAM IT PREM DEFOAMER 4 GL/CS 16.02 0.125 $ 2.00 $ 24.03 11 DIAMOND FLOOR FINISH 5 GL 52.10 0.25 $ 13.03 $ 156.30 12 VIAFRESH ODOR ELIM LEMON 4 GL/CS 20.50 0.125 $ 2.56 $ 30.75 13 GLOVE DISP NITRILE PWDRLS GP XLR GL 7.99 0.125 $ 1.00 $ 11.99 14 TANNIN STAIN REMOVER 6 QTS/CS 16.49 0.125 $ 2.06 $ 24.74 15 DIBS NEUTRALIZER ODOR COUNTER 2-90T 51.73 0.0625 $ 3.23 $ 38.80 16 BRAVO POWER FOAM STRIPPER 12-23 OZ/ 7.71 0 $ - $ - 17 PRO STRIP HVY DTY STRIPPER 5 GL 81.04 0.125 $ 10.13 $ 121.56 18 60" FBRGLS INVADER MOP HDL SIDE GAT 16.44 0.15 $ 2.47 $ 29.59 19 PREMIUM LOOP END MOP LGR GN 12/CS 17.66 0.5 $ 8.83 $ 105.96 20 DOODLE SCRUB TILE & GROUT PAD (BLUE 7.17 0.5 $ 3.59 $ 43.02 21 PAPER FILTER (10) SENSOR VAC FITS S 17.91 0.04 $ 0.72 $ 8.60 22 FOLEX GALLON 16.45 0.25 $ 4.11 $ 49.35 23 $ - $ 24 $ $ 25 $ $ 26 $ $ 27 $ $ 28 $ $ 29 $ $ 30 $ $ 31 $ $ 32 $ $ 33 $ $ 34 $ $ 35 $ $ 36 $ $ 37 $ $ 38 $ $ 39 $ $ 40 $ $ 41 $ $ 42 $ $ 43 $ $ 44 $ $ 45 $ $ 46 $ $ 47 $ $ 48 $ $ 49 $ $ 50 $ $ Total $ 61.85 $ 742,18 Areas in green are formula driven. Monthly Cost = Monthly cost is computed by multiplying the total unit cost by the units needed per month. Annual Cost = Annual cost is computed by monthly cost times 12 months. DAS Form #12 J Revision 10-03 Page 2 Supplies Sheet RAW MATERIALS Oregon Department of Administrative Services Equipment, Tools & Subcontractors Project Costing Worksheet Pathway Enterprises Inc. Parks Buildings Floors 18-19 The following Equipment & Tools are examples which may be required to do the job: SUBCONTRACTORS Bumishing/Floor machines Carpet extractors Times per Blind cleaning machines Auto scrubbers Description Cost per Time Year Sweepers Mop buckets and presses $ If any of this equipment is used on more than one project, be sure to include only that portion of the cost associated with this project. $ Do not include any vehicle or transportation costs in this schedule. $ Note: Any asset purchased with grant money is not eligible for depreciation, however, the cost to maintain the $ asset is an allowable expense and should be listed. is Equipment Unit Useful life Contract Depreciation Units Cost Project Project # of Annual Description Price of Asset life Percentage Per Year % Use Unit Cost Units Cost 1 WAVE BREAK PRESS $ 76.72 36 12 33% $ 25.57 8% $ 2.05 3 $ 6.14 2 WINDSOR SENSOR VAC $ 551.46 36 12 33% $ 183.82 8% $ 14.71 1 $ 14.71 3 WET DRY VACUUM $ 780.00 24 12 50°/ $ 390.00 8% $ 31.20 1 $ 31.20 4 PACESETTER BUFFER $ 1,617.30 36 12 33% $ 539.10 8% $ 43.13 1 $ 43.13 5 SC351 SCRUBBER $2,812.00 48 12 25% $ 703.00 8% $ 56.24 1 $ 56.24 6 NAUTILUS EXTRACTOR $3,928.00 48 12 25% $ 982.00 8% $ 78.56 1 $ 78.56 7 HOSS 700 $2,590.00 48 12 25% $ 647.50 8% $ 51.80 1 $ 51.80 8 CRB PRO 45 $2,738.00 48 12 25% $ 684.50 8% $ 54.76 1 $ 54.76 9 HIGH PERFORMANCE FAN $ 225.00 36 12 33% $ 75.00 8% $ 6.00 2 $ 12.00 10 CLIPPER DUO $ 4,116.31 48 12 25% $ 1,029.08 8% $ 82.33 1 $ 82.33 11 DOODLE SCRUB $ 674.10 24 12 50% $ 337.05 8% $ 26.96 1 $ 26.96 12 SOUARESCRUB $4,175.00 48 12 25% $ 1,043.75 8% $ 83.50 1 $ 83.50 13 12 14 12 15 12 16 12 17 12 18 12 19 12 20, 12 Total $ 541.32 Areas in green are formula driven. Useful Life of Assets = What is the estimated useful life of the equipment in months Depreciation Percentage = Depreciation is calculated by dividing the contract life by the useful life. Unit Cost Per Year = Computed by multiplying the total unit cost by the depreciation. Projected % Use = Enter project use percentage. If any of the equipment is used on more than one project, be sure to include only that portion of the costs associated with this project. (note: 100% would be an item used only for this contract.) Projected Unit Cost = Calculated by multiplying the unit cost per year times the project use. # of Units = Multiply by units needed to complete the contract/service. Annual Cost = Computed by project unit cost times the number of units. OAS Forth #12 J Revision 10-03 Page 3 Equipment Tools LABOR Oregon Department of Administrative Services Direct Labor Project Costing Worksheet Pathway Enterprises Inc. Parks Buildings Floors 18-19 Worker Work Hourly % Pro- Sub- FICA Sub- Workers Sub- unemploy- Sub- Other Other Benefits Other Benefits Daily/Per Times AnnuaifTotal Annual Hours Description Hours Rate ductivity Total 1 Total 2 comp% Total 3 ment % Total 4 Benefits % Months $ SubTotal 5 Item Labor Per Yr, Labor Labor 1 CC Hard FL 4,00 S 14.26 100% S 57404 0 . C765 S 4.36 2.60% $ 1048 1.42% S 0.81 29.60% $ 16.88 $ 80.58 2 $ 161.16 8.00 2 Nature Carpet 6.00 S 14.26 100% S 85.56 0.0765 $ 6.55 2.60% $ 2.22 1.42% $ 1.21 29.60% $ 25.33 $ 120,87 2 $ 241.74 12.00 3 Nature Hard FL 1.00 $ 1426 100% S 14.28 0.0785 S 1.09 2.60% S 0.37 1.42% S 0.20 29.60% E 4,22 E 20.15 2 $ 40.29 2.00 4 Senior Ctr Cal 8.00 $ 1418 100% S 114,08 D.0765 $ 8.73 2.60% $ 2.97 1.42% $ 1.62 29.60% $ 33.77 S 161.16 2 S 322.32 16.03- 5 Senior Ctr Hard FL 10.00 $ 14.26 100% S 142.80 0.0765 $ 10.91 2.60% $ 3.71 1.42% $ 2.02 29.60% $ 4121 $ 201.45 2 S 402.90 20.00 6 Oak Knoll RR FL 3.D0 S 14.26 100% S 42.78 0.0765 $ 3.27 2.60% $ 1.11 1.42% S 0.61 29.60% $ 12.66 $ 60.44 2 S 120.87 6.00 7 S $ S S E $ S 0.00 8 S - S S S $ S $ 0.00 9 S - $ S $ S S S 0.00 10 $ $ s $ s $ s 0.010 11 $ $ $ $ S S S 0.00 12 $ s $ $ s s s 0.00 13 $ s s $ $ s $ 0.00 14 $ s $ $ s s $ 0.00 15 $ $ S $ S S a 0.00 16 $ s S $ s S E 0.00 17 $ $ - S S S S $ O.DO 18 S - S - S S - S S $ 0.00 19 S - S - S S $ $ S 0.00 20 S $ S - S S $ S O.DO Total S 644.64 Total S 1289429 64.00 Areas in green are formula driven. List "other Benefits" Provided Work Hours = Breakdown total 'work hours" (see Overview) into hours or partial hours required per time or per item. PTO + HOLIDAY 11.53 Subtotal 1 = Computed by multiplying hours in work hours by hourly rate (prevailing wage if required) and then multiply by % productivity. LIFE + HEALTH INSURANCE 16.x3 Subtotal 2 = Computed by multiplying subtotal 1 by FICA % (as of July 2002 7.65%). 401 K 1.64% 29.60% Subtotal 3 = Computed by multiplying subtotal 1 by your organization's Workers Comp Subtotal 4 = Computed by multiplying subtotal 1 by your organization's Unemployment Insurance Other Benefits Input in this column if you calculate Other Benefits by a percentage. Other Benefits Mo. $ = Input in this column if you calculate Other Benefits as a flat dollar amount per month. Adjust amount to reflect this employees' allocated time to this contract. (e.g, Employee works 50% of their time on this contract, and 50% of their time on a different contract. If their monthly benefit is $100, then only $50 would be allocated to this column. Subtotal 5 = This column may be a combination of both Other Benefits %and Other Benefits Monthly D,ily Per Item Labor= The sum of subtotals 1,2,3, 4, and 5 Times Per Year = This is the days or shifts worked per year Annual Total Labor = Times per year multiplied by daily/per item labor Annum Labor Hours - Work hours multiplied by times per year For purposes of costing a pmject, It's important to distinguish between direct and indirect labor. Indirect labor (supervision, administration, inspection etc.) may be captured as Overhead, and will be discussed later. Direct labor is that which is spect8cally icier6fiable as a part of the contract requirements. It should be noted that working supervisors could spend a percentage of their time in direct labor functions. The percentage may vary depending on the project or organization. For example, a supervisor may spend 50% of histher time in direct labor functions and the other 50% supervising. In that case you would Include 50% of that person's time as direct labor and capture the other 50%, as well as any other supervisory costs, in the indirect labor portion of Overhead. Direct labor is best expressed as' work hours'. That is, the total number of hours that will be required to complete a task or project The first and perhaps most critical step is to identify the work and break it down into its component tasks. The description of work or specifications in the contract is the place to start Once the component tasks arc identified, the next step is to estimate the time that will be required to accomplish each task. Since this estimated time may be in minutes or even seconds, the times must be compiled into a Per-Time or Per-Item direct labor cost estimate. For example, in a custodial contract, first breakdown the work requirements into component tasks such as, loading and unloading equipment, emptying trash and recycle containers, vacuuming, sweeping, cleaning sinks, waxing floors, etc. (be sum to account for time between jobs also). Next, estimate the time required for each component task. Then, compile those estimates into a figure that represents the total number of hours per service. That figure is the required "work hours." This number will stay the same regardless of how many people are working. For example, 8.wt rk hours' can be accomplished by I person working at 100% productivity for 8 hrs. (1x8=8), or 2 people working at 100% productivity for 4 his. each (2x4=8), it could also be done by 8 people working at 50% productivity for 2 hrs. each. (8x.50=4, 4x20 Once you know the total work hours per service or per item, it's simply a matter of assigning the appropriate wage to the hours. Some contracts, Including those on which you pay workers sub-minimum wages based on productivity. require you to pay a "prevailing wage." Check the contract( Also, be sure to add the appropriate "Other Payroll Expil (OPE) for your organization onto the wage. Matching FICA Workers' Comp at your cost Cost of other benefits paid by your organization (e.g. medical, dental, retirement, etc.) After you've established the direct labor cost per time or per item, you can extend the Lime frame to come up with the annual requirement. On a service contract multiply the daily cost by the number of days per year that you will provide the service, For example, a service with direct labor cost of S80.00 per time, required 5 days per week and 52 weeks per year, would give you an annual direct labor cost of $20,800.00 per year. (80 x 5 = 400, 400 x 52 = 20,800). For monthly cost divide the annual cost by 12 (in this case you get $1733.33/month). DAS Form tF12 J Revision 10-03 Page 4 Direct Labor Sheet OVERHEAD Oregon Department of Administrative Services Overhead Costs Project Costing Worksheet Pathway Enterpric Parks Buildings Floors 18-19 There are many different ways organizations allocate overhead Internally (e.g., Percent of total costs, dollar figure sum, as a percent of direct labor, etc). In the space provided below, Indicate how your organization allocates overhead to this particular contract, what Items go Into your overhead, and what that overhead amount Is (whether as a percent or exact amount) FILL IN ONLY ONE OF THE THREE METHODS DETAILED BELOW!- I Percent of Total Cost Method: For every dollar spent producing a final product, or providing a service, a certain percentage of that dollar is 1. Enter Overhead as a Percent of Total Costs required for overhead. To calculate the overhead percentage, it is best to have financial records for your 19.00% organization that go back a year or more. Add together the expenditures that make up the overhead cost (see worksheel below). Now add this figure to the Raw materials, Direct labor and Delivery for a total cost. Divide the figure for overhead by the figure for total costs. The result is a percent that represents overhead as a percentage of the total cost. If financial records are not available estimate the overhead expenses as best you can, estimate O R other costs as best you can, and use the same formula to get a percentage. 2. Enter Allocated Overhead as a Dollar-Figure Sum Dollar-Figure Sum Method: You can enter the dollar amount you are allocating to overhead in the box if you are confident that you can OR allocate overhead dams to this particular project. You can use the Worksheal as a tool (d needed) 3. Overhead as a Percent of Total Direct Labor Hours Percent of Total Direct Labor Method: To identify overhead costs, you need the financial records for your organization or division for the past year. Input all line costs of the entire entity as detailed below. Line items which are not detailed below should be input into the ceps marked "other"; please include a description. What you are trying to determine is a percentage, therefore, do not gross up the expenses for inflation or to conform to the currenl year budget. Next, input into the cell below Ifie total direct labor hours paid out by your entire organization for the same period. These figures should be found on the year end payroll report . Do not include hours which can be dassified as management or administrative costs. (Including these costs into the direct labor hour total will deflate the actual costs.) The worksheet will compute the overhead as a line item cost by dividing the total projected labor hours for the contract into the total projected labor hours for the current year. Total Annual Direct Labor Hours Input Total from Worksheet on Bslovv Overhead per labor hour f Time required to complete contract 64 I Total Assigned Overhead $ - t Worksheet WORK AREA: Total Annual Operations Use the area below to show how you arrived at the final figure INDIRECT COSTS ORGANIZATION DEPARTMENTAL that you show as your total Overhead Management Salaries $ 44,500.00 Management Payroll Tax Expense $ 11,440.95 Management Medical Insurance $ 10,920.00 c Management Pension Plan Expense s 4,150.00 AGENCY REVENUES =5,675,312 j Sales d Administrative Salaries 3 415,594.00 AGENCY INDIRECT EXPENSES 1,105,31S.95 Sales 8 Administrative Payroll Tax Expense $ 64,354.00 OVERHEAD 19% Sales s Administrative Medical Insurance S 40,055.00 Sales d Administrative Pension Plan Expanse $ 10,200.00 Office Rent _ Advertising and Pudic Education $ 14,855.00 _ Background Checks b Urinalysis $ 3,189.00 Professional 8 Accounting I Audit Fees $ 81,708.00 Training & Worker Safely Insurance s 38,192.00 Telephone 3 7,185.00 Utilities S 20,452 00 Property Taxes/Licenses/Fass s 8,270.00 Dues a Subscriptions Depredation-office building $ 15,051.00 Deprecfalion-office equipment $ 14,893.00 Repairs 8 Maintenance-office $ 22,744.00 Cleaning and Maintenance $ 21,346.00 Office Equipment Rental $ 7,806.00 Office Supplies S _ 19,033.00 Postage a Freight $ Rehab 3 25,023.00 Miscellaneous Expense $ 12,999.00 Bad Debts $ INTEREST EXPENSE $ 18,981 00 EMPLOYEE ACTIVITIES $ 20,021.00 AUTO REPAIRS $ 15,807.00 MANAGEMENT CONTRACT $ 136,45700 TOTAL INDIRECT COSTS $ 897,848.00 $ 207,467.95 CPI Factor from BLS (us ink bdaa) 3.1516 3.15% n_'F i.Merv, Cis geWio9!.r_esbe5'± M.m. Total Is 1,140,133.40 DAS Form 812 J Revision 10-03 Page 5 Overhead Computation Sheet i Delivery & Reserve Oregon Department of Administrative Services Pathway Enterprises Inc. Project Costing Worksheet Parks Buildings Floors 18-19 The State of Oregon reimburses employee use of their own vehicles on State business by the mile . The amount reimbursed per mile is based on a federal guideline which can be retrieved by following the link below to the GSA web site. This standard reimbursement is the standard for QRF cost calculation. Gas, oil, vehicle maintenance and repair are considered part of Delivery costs. The labor required (the driver and the workers if they are on the clock), should be captured in the Direct Labor worksheet. Vehicle costs may only be captured in the "Equipment, Tools & Subcontracts" spreadsheet or "Trans & Reserve" spreadsheet within this workbook. It is not permissable to capture costs in both spreadsheets. It is permisible to use this spreadsheet to capture vehicle costs for the following situations: (a) Transporting the individuals who will perform the service to the location where the service will be provided. (b) Services dependent on vehicle in the provision of that service. GSA - Privately Owned Vehicle (POV) Mileage Reimbursement Rates Services Contract Miles Per Rate Per Daily Services per Annual Delivery Description Service Mile Cost Year Trans Cost 1 $ - $ - 2 $ - $ - 3 $ - $ _ 4 $ - $ - $ - $ - Margin The law allows a "margin held in reserve". The margin % can vary depending on the product or service being offered and organizational, contractual and market variables specific to the project. Some research will likely be required to come up with a percentage that not only allows for inventory and equipment replacement, but is in alignment with industry standards and fair market value. Any percentage higher than six percent (6%) will have to be justified to DAS. Enter as a % of total cost of contract 6.0 0 k ( I I I i f r DAS Form #12 J Revision 10-03 Page 6 Trans-Delivery and Margin Sheet s Council Business Meeting July 3, 0: Title: Approval of a public contract for Municipal Audit Services From: Mark Welch Administrative Services Director mark.welch@ashland.or.us Summary: Approval is being requested to award a public contract for a Municipal Audit Services to Moss Adams LLP. The contract for Municipal Audit Services will be for a five (5) year term beginning in July 2019 and ending in June 2024. Actions, Options, or Potential Motions: The Council, acting as the Local Contract Review Board, moves to approve the award of a public contract to Moss Adams LLP for Municipal Audit Services. Staff Recommendation: Staff recommends the public contract for Municipal Audit Services be awarded to Moss Adams LLP. Resource Requirements: Funds will be budgeted for municipal audit services as follows: Fiscal Year Proposed Cost FY 2019 $58,500.00 FY 2020 60,175.00 FY 2021 61,875.00 FY 2022 63,725.00 FY 2023 65,600.00 Total amount for five (5) fiscal years $309,875.00 Policies, Plans and Goals Supported: This contract award for a qualified independent municipal auditing firm to provide Municipal Audit Services will support the City's goals of financial accuracy, transparency and auditor rotation. Background and Additional Information: The sourcing method used to acquire these services is a formal Competitive Sealed Proposal (Request for Proposal). The City received a record number five (5) proposals in response to this RFP. The proposals were evaluated in accordance with the evaluation process and criteria established in the RFP and all five (5) proposals were deemed to be RESPONSIVE by a three- person evaluation committee. Page Iof2 CITY OF -ASHLAND Pursuant to ORS 279.100, the City has the authority to reject a proposal if it is in the City's best interest. The proposal submitted by Pauly, Rogers, & Co., PC, has been rejected by the evaluation committee solely for the implementation of auditor rotation. Pauly, Rogers, & Co., PC, has been the City's independent municipal auditor for the previous 15+ years (three consecutive 5-year contracts). Having active participation in the solicitation process and receiving a record number five (5) RESPONSIVE proposals from qualified firms has allowed the evaluation committee to consider and implement auditor rotation. It is clearly and simply in the City's best interest to implement auditor rotation at this time. ORS 279B.I00 Cancellation, rejection, delay of invitations for bids or requests for proposals. (1) Any solicitation or procurement described in a solicitation may be canceled, or any or all bids orproposals may be rejected in whole or in part, when the cancellation or rejection is in the best interest of the contracting agency as determined by the contracting agency. The masonsfor the cancellation or rejection must be made part of the solicitation file. A contracting agency is not liable to any bidder or proposer for any loss or expense caused by or resultingfrom the cancellation or ' rejection ofa solicitation, bid, proposal or award. In addition to satisfying the City's public contracting rules, the GFOA makes the following recommendations: GFOA makes the ollowirt recommendations re ardin the selection o auditing services: Governmental entities should undertake a full-scale competitive process for the selection of independent auditors at the end of the term of each audit contract, consistent with applicable legal requirements. Ideally, auditor independence would be enhanced by a policy requiring that the independent auditor be replaced at the end of the audit contract, as is often the case in the private sector. Unfortunately, the frequent lack of competition among audit firms fully qualified to perform public-sector audits could make a policy of mandatory auditor rotation counterproductive. In such cases, it is recommended that a governmental entity actively seek the participation of all qualified firms, including the current auditors, assuming that the pastperformance of the current auditors has proven satisfactory. Except in cases where a multiyear agreement has taken the form of a series of single year contracts, a contractual provision for the automatic renewal of the audit contract (e.g., an automatic second term fbr the auditor upon satisfactory performance) is inconsistent with this recommendation. Attachments: RFP Municipal Audit Services - Evaluation Summary Contract for Municipal Audit Services Page 2 of 2 C 1 T Y ,O E ASHLAND City of Ashland Request for Proposal MUNICIPAL AUDIT SERVICES Evaluation Summary June 11, 2018 Isler CPA KDP CPAs LLP Moss Adams LLP Pauly, Rogers & Co. PC Umpqua Valley Points Financial Evaluation Criteria #1 #2 #3 #1 #2 #3 #1 #2 #3 #1 #2 $3 #1 #2 #3 Letter of Introduction, Table of Contents & Proposal Submission 5 5 4 5 5 5 5 5 4 5 5 4 5 5 3 5 Form (Exhibit A) Qualifications and Experience 30 30 22 25 24 28 30 30 30 30 30 25 30 25 20 25 Proposed Services 25 25 25 25 22 25 25 25 25 25 25 25 25 23 20 25 Sample Reports 10 9 5 10 8 8 10 10 10 10 9 10 10 10 10 10 References 10 10 7 10 7 10 10 10 7 10 10 10 10 7 8 10 Contract Tends and Conditions & Certificate of Compliance 5 5 5 5 5 5 5 5 3 5 5 5 5 5 5 5 Exhibit C and Exhibit E SUBTOTAL 85 84 68 80 71 81 85 85 79 85 84 79 85 75 66 80 Cost Proposal (Exhibit B) 25 23.21 23.21 23.21 21.13 21.13 21.13 22.15 22.15 22.15 24.36 24.36 24.36 25 25 25 TOTAL 110 107.21 91.21 103.21 92.13 102.13 106.13 107.15 101.15 107.15 108.36 103.36 109.36 100 91 105 321.08......... GRAND TOTAL 301.63 300.39 315.45 Rejected/Auditor 296 Rotation Name of Proposer Total for five 5) ears Calculation Percentage Points Umpqua Valle Financial $286,000.00 $286,000 100% 25 Pauly, Rogers & Co., PC $293,525.00 $286,000/$293,525 97.44 24.36 Isler CPA $298,800.00 $286,000/$298,800 95.72 23.21 Moss Adams LLP $309,875.00 $286,000/$309,875 92.30 22.15 KDP CPAs LLP $3l 1,375.00 $286,000/$311,375 91.85 21.13 PERSONAL SERVICES AGREEMENT CONSULTANT: Moss Adams LLP C I T Y OF CONTACT: Amanda McCleary-Moore, Partner -ASH LAN D 20 East Main Street ADDRESS: 221 Stewart Avenue, Suite 301 Ashland, Oregon 97520 Medford, Oregon 97501 Telephone: 541/488-5300 Fax: 541/552-2059 TELEPHONE: 541-857-1040 FAX: 541-773-2101 EMAIL: amnada.mcclearv-mooreamossadams.com This Personal Services Agreement (hereinafter "Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and Moss Adams LLC, a domestic professional corporation ("hereinafter "Consultant"), for Municipal Audit Services. NOW THEREFORE, in consideration of the mutual covenants contained herein, the City and Consultant hereby agree as follows: 1. Effective Date and Duration: This Agreement shall become effective on July 1, 2018 and continue for a term of five (5) years, and unless sooner terminated as specifically provided herein, shall terminate upon the City's affirmative acceptance of Consultant's Work as complete and Consultant's acceptance of the City's final payment therefore, but not later than June 30, 2024. 2. Scope of Work: Consultant will provide Municipal Audit Services as more fully set forth in the City's RFP Scope of Work attached hereto as "Exhibit C" and Consultant's Proposal dated May 8, 2018, which is attached hereto as "Exhibit D" and incorporated herein by this reference. Consultant's services are collectively referred to herein as the "Work." 3. Supporting Documents/Conflicting Provisions: This Agreement and any exhibits or other supporting documents shall be construed to be mutually complimentary and supplementary wherever possible. In the event of a conflict which cannot be so resolved, the provisions of this Agreement itself shall control over any conflicting provisions in any of the exhibits or supporting documents. 4. All Costs Borne By Consultant: Consultant shall, at its own risk and expense, perform the Work described above and, unless otherwise specified in this Agreement, furnish all labor, equipment, and materials required for the proper performance of such Work. 5. Qualified Work: Consultant has represented, and by entering into this Agreement now represents, that all personnel assigned to the Work to be performed under this Agreement are fully qualified to perform the service to which they will be assigned in a skilled and worker-like manner and, if required to be registered, licensed or bonded by the State of Oregon, are so registered, licensed and bonded. Page 1 of 6: Personal Services Agreement with Moss Adams LLP. 6. Compensation: City shall pay Consultant the proposed fees set forth in the Tee Arrangement Worksheet attached hereto as "Exhibit E" as full compensation for Consultant's performance of all Work under this Agreement. In no event shall Consultant's total of all compensation and reimbursement under this Agreement exceed the sum of the proposed fees, without the express, written approval from the City official whose signature appears below, or such official's successor in office. Payments shall be made within 30 days of the date of receipt by the City of Consultant's invoice. Should this Agreement be terminated prior to completion of all Work, payments will be made for any phase of the Work completed and accepted as of the date of termination. 7. Ownership of Work/Documents: All Work product or documents produced in furtherance of this Agreement belong to the City, and any copyright, patent, trademark proprietary or any other protected intellectual property right shall vest in and is hereby assigned to the City. 8. Statutory Requirements: The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 279B.220, 27913.230 and 279B.235. 9. Living Wage Requirements: If the amount of this Agreement is $20,688.86 or more, Consultant is required to comply with Chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in that chapter, to all employees performing Work under this Agreement and to any Subcontractor who performs 50% or more of the Work under this Agreement. Consultant is also required to post the notice attached hereto as "Exhibit B" predominantly in areas where it will be seen by all employees. 10. Indemnification: Consultant hereby agrees to defend, indemnify, save, and hold City, its officers, employees, and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogation, or other damages resulting from injury to any person (including injury resulting in death), or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this Agreement by Consultant (including but not limited to, Consultant's employees, agents, and others designated by Consultant to perform Work or services attendant to this Agreement). However, Consultant shall not be held responsible for any losses, expenses, claims, subrogations, -actions, costs, judgments, or other damages, caused solely by the negligence of City. 11. Termination: a. Mutual Consent. This Agreement may be terminated at any time by the mutual consent of both parties. b. City's Convenience. This Agreement may be terminated by City at any time upon not less than 30 days' prior written notice delivered by certified mail or in person. C. For Cause. City may terminate or modify this Agreement, in whole or in part, effective upon delivery of written notice to Consultant, or at such later date as may be established by City under any of the following conditions: i. If City funding from federal, state, county or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services; ii. If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this Agreement or are no longer eligible for the funding proposed for payments authorized by this Agreement; or Page 2 of 6: Personal Services Agreement with Moss Adams LLP. iii. If any license or certificate required by law or regulation to be held by Consultant to provide the services required by this Agreement is for any reason denied, revoked, suspended, or not renewed. d. For Default or Breach. i. Either City or Consultant may terminate this Agreement in the event of a breach of the Agreement by the other. Prior to such termination the party seeking termination shall give to the other parry written notice of the breach and its intent to terminate. If the party committing the breach has not entirely cured the breach within fifteen (15) days of the date of the notice, or within such other period as the parry giving the notice may authorize in writing, then the Agreement may be terminated at any time thereafter by a written notice of termination by the party giving notice. ii. Time is of the essence for Consultant's performance of each and every obligation and duty under this Agreement. City by written notice to Consultant of default or breach may at any time terminate the whole or any part of this Agreement if Consultant fails to provide services called for by this Agreement within the time specified herein or within any extension thereof. iii. The rights and remedies of City provided in this subsection (d) are not exclusive and are in addition to any other rights and remedies provided by law or under this Agreement e. Obligation/Liability of Parties. Termination or modification of this Agreement pursuant to subsections a, b, or c above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination or modification. However, upon receiving a notice of termination (regardless whether such notice is given pursuant to Subsection a, b, c, or d of this section, Consultant shall immediately cease all activities under this Agreement, unless expressly directed otherwise by City in the notice of termination. Further, upon termination, Consultant shall deliver to City all Agreement documents, information, works-in-progress and other property that are or would be deliverables had the Agreement been completed. City shall pay Consultant for Work performed prior to the termination date if such Work was performed in accordance with this Agreement. 12. Independent Contractor Status: Consultant is an independent contractor and not an employee of the City for any purpose. Consultant shall have the complete responsibility for the performance of this Agreement. Consultant shall provide workers' compensation coverage as required in ORS Chapter 656 for all persons employed to perform Work pursuant to this Agreement. Consultant is a subject employer that will comply with ORS 656.017. 13. Assignment: Consultant shall not assign this Agreement or subcontract any portion of the Work without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be void. Consultant shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all persons employed by them, and the approval by City of any assignment or subcontract of the Work shall not create any contractual relation between the assignee or subcontractor and City. 14. Default. The Consultant shall be in default of this Agreement if Consultant: commits any material breach or default of any covenant, warranty, certification, or obligation under the Agreement; institutes an action for relief in bankruptcy or has instituted against it an action for insolvency; makes a general assignment for the benefit of creditors; or ceases doing business on a regular basis of the type identified Page 3 of 6: Personal Services Agreement with Moss Adams LLP. in its obligations under the Agreement; or attempts to assign rights in, or delegate duties under, this Agreement. 15. Insurance. Consultant shall, at its own expense, maintain the following insurance: a. Worker's Compensation insurance in compliance with ORS 656.017, which requires subject employers to provide Oregon workers' compensation coverage for all their subject workers b. Professional Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence. This is to cover any damages caused by error, omission or negligent acts related to the professional services to be provided under this Agreement. c. General Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence for Bodily Injury, Death, and Property Damage. d. Automobile Liability insurance with a combined single limit, or the equivalent, of not less than $1,000,000 (one million dollars) for each accident for Bodily Injury and Property Damage, including coverage for owned, hired or non-owned vehicles, as applicable. e. Notice of cancellation or change. There shall be no cancellation, material change, reduction of limits or intent not to renew the insurance coverage(s) without 30 days' prior written notice from the Consultant or its insurer(s) to the City. f. Additional Insured/Certificates of Insurance. Consultant shall name the City of Ashland, Oregon, and its elected officials, officers and employees as Additional Insureds on any insurance policies, excluding Professional Liability and Workers' Compensation, required herein, but only with respect to Consultant's services to be provided under this Agreement. The consultant's insurance is primary and non-contributory. As evidence of the insurance coverages required by this Agreement, the Consultant shall furnish acceptable insurance certificates prior to commencing the Work under this Agreement. The certificate will specify all of the parties who are Additional Insureds. Insuring companies or entities are subject to the City's acceptance. If requested, complete copies of insurance policies; trust agreements, etc. shall be provided to the City. The Consultant shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance. 16. Nondiscrimination: Consultant agrees that no person shall, on the grounds of race, color, religion, creed, sex, marital status, familial status or domestic partnership, national origin, age, mental or physical disability, sexual orientation, gender identity or source of income, suffer discrimination in the performance of any Work under this Agreement when employed by Consultant. Consultant agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Consultant agrees not to discriminate against a disadvantaged business enterprise, minority-owned business, woman-owned business, a business that a service-disabled veteran owns or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A.I 10. 17. Consultant's Compliance With Tax Laws: 17.1 Consultant represents and warrants to the City that: 17.1.1 Consultant shall, throughout the term of this Agreement, including any extensions hereof, comply with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Consultant; and Page 4 of 6: Personal Services Agreement with Moss Adams LLP. ~I I (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 17.1.2 Consultant, for a period of no fewer than six (6) calendar years preceding the Effective Date of this Agreement, has faithfully complied with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Consultant; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 18. Governing Law; Jurisdiction; Venue: This Agreement shall be governed and construed in accordance with the laws of the State of Oregon without resort to any jurisdiction's conflict of laws, rules or doctrines. Any claim, action, suit or proceeding (collectively, "the claim") between the City and the Consultant that arises from or relates to this Agreement shall be brought and conducted solely and exclusively within the CircuifCourt of Jackson County for the State of Oregon. If, however, the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon filed in Jackson County, Oregon. Consultant, by its signature hereon of its authorized representative, hereby consents to the in personam jurisdiction of said courts. 19. THIS AGREEMENT AND THE ATTACHED EXHIBITS CONSTITUTE THE ENTIRE UNDERSTANDING AND AGREEMENT BETWEEN THE PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS-OF THIS AGREEMEN'T' SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS AGREEMENT. CONSULTANT, BY SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE, HEREBY ACKNOWLEDGES THAT HE/SHE HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO, BE BOUND BY ITS TERMS AND CONDITIONS. 20. Amendments. This Agreement may be amended only by written instrument executed by both parties with the same formalities as this Agreement. 21. Nonappropriations Clause. Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this Agreement within the City's fiscal year budget. Consultant understands and agrees that City's payment of amounts under this Agreement attributable to Work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this Agreement. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this Agreement without penalty or liability to City, effective upon the delivery of written notice to Consultant, with no further liability to Consultant. Page 5 of 6: Personal Services Agreement with Moss Adams LLP. 22. Certification. Consultant shall sign the certification attached hereto as "Exhibit A" and incorporated herein by this reference. CITY OF ASHLAND: MOSS ADAMS LLP: By: By: City Administrator Signature Printed Name Printed Name Date Title Date Purchase Order No. (=9 is to be submitted with this signed Agreement) APPROVED AS TO FORM: Assistant City Attorney Date I I I Page 6 of 6: Personal Services Agreement with Moss Adams LLP. ~ E7~HIBPI' A CERTIFICATIONS/REPRESENTATIONS: Consultant, by and through its authorized representative, under penalty of perjury, certifies that (a) the number shown on the attached W-9 form is its correct taxpayer ID (or is waiting for the number to be issued to it and (b) Consultant is not subject to backup withholding because: (i) it is exempt from backup withholding, or (ii) it has not been notified by the Internal Revenue Service (IRS) that it is subject to backup withholding as a result of a failure to report all interest or dividends, or (iii) the IRS has notified it that it is no longer subject to backup withholding- Consultant farther represents and warrants to City that: (a) it has the power and authority to enter into and perform the Work, (b) the Agreement, when executed and delivered, shall be a valid and binding obligation of Consultant enforceable in accordance with its terms, (c) the work under the Agreement shall be performed in accordance with the highest professional standards, and (d) Consultant is qualified, professionally competent, and duly licensed (if applicable) to perform the Work. Consultant also certifies under penalty of perjury that its business is not in violation of any Oregon tax laws, it is an independent contractor as defined in the Agreement, it is authorized to do business in the State of Oregon, and Consultant has checked four or more of the following criteria that apply to its business. (l) Consultant carries out the work or services at a location separate from a private residence or is in a specific portion of a private residence, set aside as the location of the business. (2) Commercial advertising or business cards or a trade association membership are purchased for the business. (3) Telephone listing is used for the business separate from the personal residence listing. (4) Labor or services are performed only pursuant to written contracts. (5) Labor or services are performed for two or more different persons within a period of one year. (6) Consultant assumes financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of performance bonds, warranties, errors and omission (professional liability) insurance or liability insurance relating to the Work or services to be provided. Consultant Date r Page 1 of 1 EXHIBIT C EXHIBIT B ~I CITY OF ASHLAND, OREGON City of Ashland LIVING employers ALL described WAGE comply below must of Ashland laws regulating payment of a per hour, effective June 30, 2017. The Living Wage is adjusted annually every r, June 30 by the Consumer Price Index. portion of business of their 401 K and IRS eligible employer, if the employer has cafeteria plans (including ten or more employees, and childcare) benefits to the has received financial amount of wages received by assistance for the project or the employee. ➢ For all hours worked under a business from the City of service contract between their Ashland in excess of ➢ Note: For temporaryand employer and the City of $20,688.86. part-time employees, the Ashland if the contract Living Wage does not apply exceeds $20,688.86 or more. If their employer is the City of to the first 1040 hours worked Ashland, including the Parks in any calendar year. For ➢ For all hours worked in a and Recreation Department. more details, please see month if the employee spends Ashland Municipal Code I 50°/a or more of the ➢ In calculating the living wage, Section 3.12.020. employee's time in that month employers may add the value working on a project or of health care, retirement, For additional information: Call the Ashland City Administrator's office at 541-488-6002 or write to the City Administrator, City Hall, 20 East Main Street, Ashland, OR 97520, or visit the City's website at www.ashland.or.us. Notice to Employers: This notice must be posted predominantly in areas where it can be seen by all employees. CITY OF ASHLAND Page I of 1 EXHIBIT B Exhibit C SCOPE OF SERVICES The City of Ashland is requesting proposals for municipal audit services from qualified, licensed and experienced independent accounting firms. Annual municipal audits will be performed for the City of Ashland and Ashland Park and Recreation Commission. Additional audits will be required for the City's Food and Beverage Tax and the City's Transient Occupancy Tax. The format of audit papers must allow the City to meet the requirements of the GFOA Comprehensive Annual Financial Reports (CAFR), including the CUFR, reporting program. The City of Ashland anticipates the continued submission of its CAFR, including the CUFR (Component Unit Financial Report) for Ashland Park and Recreation Commission, to the GFOA for the Certificate of Achievement for Excellence in Financial Reporting. The annual municipal audits will encompass a financial and compliance examination of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information, which collectively comprises the financial statements of the City of Ashland and Ashland Parks and Recreation Commission. The City's intent is to award a contract to the highest ranked proposer for a term of five (5) years. Note: The City's public contracting requirements require a formal solicitation (Request for Proposal) be processed and a resulting contract be executed for a specific term (number of years). When the contract and options to extend the contract expire, the City is required to 1-process another formal solicitation (Request for Proposal) to acquire the required services. The successful proposer will be required to meet the highest standards prevalent for the following scope of services: A. Comprehensive Annual Financial Reports (CAFR) The City of Ashland, Administrative Services Department prepares a CAFR for the City and for the Ashland Park and Recreation Commission (the City's Component Unit Financial Report - CUFR). They are prepared to conform fully with Generally Accepted Accounting Principles (GAAP), the Minimum Standards as defined in ORS 297 and to be in full compliance with applicable pronouncements of the Governmental Accounting Standards Board (GASB) and /or the Financial Accounting Standards Board (FASB), and as appropriate, disclosures required by State regulations. Independent auditor reports on the examination of each of these basic financial statements are required. The purpose of the auditor's examinations is to form an opinion on the fairness of presentation, in accordance with GAAP, of the basic financial statements taken as a whole. The combining, individual fund and financial statements and schedules, as listed in the additional information section of the CAFR are to be examined "in relation to" the basic financial statements. As part of the audit(s), the selected audit firm will be required to perform an evaluation of the internal accounting controls and communicate any weaknesses and recommendations as required in the CAFR and CUFR in separate letters to management. The selected audit firm shall have conducted an examination of, and have issued.its opinion on the financial statements, including auditor's comments and disclosures required by the Minimum , Standards for Audits for Oregon Municipal Corporations, no later than November 15 of each year. Each year the schedule will be reviewed and adjusted if appropriate. For the interim work, the files can be ready in March depending on requested information. For the Final audit work, the records will be ready by the last week in August, again depending on requested information. RFP -Municipal Audit Services, Page 10 of 31 All work papers beyond those prepared by the City and Parks in the normal process of fiscal closing will be the responsibility of the selected auditor. The selected auditor will annually provide the City with copies (electronic is acceptable) of final work papers prior to final payment. The City of Ashland 2017-2019 Biennium Budget can be found on the City's website at: hqp•//www ashland or us/SIB/files/2017-19%20Bud et/g 2017 19 Budget Complete.pdf The City of Ashland Comprehensive Annual Financial Report can be found on the City's wcbsite at: http://www.ashland.or.us/Files/2017%20CAFR.-P B. Report on the Single Audit A report on the results of a single audit of the City's and Parks' grants may be required by the Uniform Single Audit Act of 1984 (as revised in 1996) and OBB Circular A-133, "Audits of State and local Governments." City staff will provide schedules of grant activity; however, the selected audit firm is expected to prepare the Schedule of Federal Financial Assistance reconciled to the City's financial statements. Should the City and/or Parks require a Single Audit, the following will be required: The selected audit firm is expected to prepare and deliver its report on the single audit no later than November 15 of each year. The report on the single audit shall state that the audit was made in accordance with the provisions of OMB Circular A-133 and shall include at a minimum: 1. The selected audit firm's opinion on the combined financial statements and a report stating that the Schedule of Federal Financial Assistance was examined "in relation to" the basic financial statements; 2. The selected audit. firms' report on the study and evaluation of internal control systems. The report must identify the City's significant internal accounting controls, and those controls designed to provide reasonable assurance that Federal programs are being managed in compliance with applicable laws and regulations. This report must also identify those controls which were not evaluated, and any material weaknesses identified as a result of the evaluation; and 3. The selected audit firm's report on compliance with Federal laws and regulations containing: a. Statement of positive assurance with respect to those items tested for compliance, including compliance with laws and regulations pertaining to financial reports and claims for advances and reimbursements. In addition, the firm's report should disclose whether the City has, for each of its major federal assistance programs, complied with laws and regulations for which noncompliance could have a material effect on the allowable program expenditures; b. Statement of negative assurance on those items not tested; c. Summary of all instances of noncompliance; d. Identification of total amount of costs questioned, if any, for each Federal assistance award, as a result of noncompliance; and e. Other statements or reports to satisfy state and local government's requirements. If the selected audit firm finds indications of fraud or illegal acts, the firm is required to submit a separate written report, including questioned costs found as a result of these acts, to the City or Parks. C. Management Letter(s) The letter should include recommendations to management, prepared by the selected audit firm in RFP - Municipal Audit Services, Page 11 of 31 letter form, which include any findings, observations, opinions, comments or recommendations, relating to internal control, accounting systems, data processing, compliance with laws, rules and regulations, or any other matters that come to the attention of the audit firm during the)course of the examination and, in the opinion of the audit firm, warrant the attention of management. Such recommendations shall not be construed as special or additional studies, but shall be limited to those usually associated with the study of internal control systems and procedures as a part of an examination of financial statements. The management letter(s) and management's written responses shall be discussed with City officials prior to publication. The selected audit firm will prepare and deliver ten (10) copies of the final report to the City following the same schedule as for the CAFR and CUFR. D. Modifications to Original Audit Scone and Contract Amount In the event that circumstances disclosed by either audit indicate that a more extensive and detailed examination is required, in addition to that which would be sufficient under normal circumstances, the selected audit firm shall provide all pertinent facts relative to the extraordinary circumstances together with the firm's cost estimate of the additional services to the City. Any fees relating to such extensions of examination procedures are to be considered as additional fees subject to negotiation and are not included within the scope of services to be performed under the original contract signed as a result of this RFP. E. Other Services 1. GFOA Certificate of Achievement The selected audit firm is expected to assist the City and Parks in obtaining the Certificate of Achievement for Excellence in Financial Reporting award for its CAFR and CUFR from GFOA. The program affirms that the financial report(s) not only comply with generally accepted accounting principles and applicable legal requirements, but are also easy to read, efficiently organized and conform to program standards. 2. Other Technical Assistance As a part of the overall audit contract and included in the fee for the audit(s), the City and Parks expect to receive from the audit firm a variety of technical assistance throughout the .fiscal year. This would include assistance with the implementation of future GASB statements as well as assistance in other accounting, reporting, or internal control questions. i 3. Additional Audits The auditor will also schedule and perform limited scope audits of local businesses for conformance to Ashland Municipal Code Section 4, Chapters 24 and 34 providing four reviews of Hotel/Motel and six reviews of prepared food establishments each year. In support of the auditor, City staff will assist selecting those to be audited using a random selection process and also coordinate schedules and appointments if needed. Typically, an audit involves a site visit to a local business to review all of the data that the business uses to prepare a Food & Beverage and TOT (Transient Occupancy Tax) tax return. Then it requires an audit of approximately three months of data to verify how they collect the tax, whether the tax is included in the price or is added separately and finally to verify the amount of sales to the amount reported on the tax return. 4. Additional Services Proposals shall contain.provisions for dealing with extraordinary circumstances discovered during the audit that may require an expansion of audit work beyond that RFP - Municipal Audit Services, Page 12 of 31 i which was originally planned. In addition, the selected audit firm may be requested to perform special projects for the City during the year. Because of variations in the demand for additional services from year to year, such work will be contracted for, provided, and billed separately to the City on an hourly or otherwise agreed-upon basis. F. Fee Arrangement The fees being proposed for the audit services shall be provided on the Fee Arrangement Worksheet attached as Exhibit B. G. Contract The City's intent is to award a contract to the highest ranked proposer for a term of five (5) years, beginning with the fiscal year ending June 30, 2019. Work to begin Jul 1 2018, which is the first day of fiscal year 2019. b i I i I I i i i RFP - Municipal Audit Services, Page 13 of 31 i I Exhibit D MOSSADAMS i 0 P P 0 H 'IU N it i i R I S I N G TECHNICAL AUDIT PROPOSAL FOR CITY OF ASHLAND Amanda McCleary-Moore, Partner Moss Adams LLP 221 Stewart Avenue, Suite 301 Medford, OR 97501 (541) 857-1040 MOSSADAMS Dear Mr, Welch: Thankyou forthe opporhmity to present this proposal to City of Ashland (City) for independent audit services. You'll find our firm is highly qualified and has vast - experience in serving municipalities similar to the City. We re comm tt ed to providing youwith a level of service and attention that exceeds our competitors. ` - Below are just some of the many ways you !II see that the City will benefit from a professional relationship with Moss Adams: Government expertise. With over 250 government clients firmwide- approximately 25 of which are right herein Oregon-we have vast experience , serving cities throughout the state and beyond. We've built our processes around the Oregon Minimum Audit Standards and your engagement will be staffed with government-focused professionals from our Oregon offices, giving you access to the industry resources you need right in your own backyard. May s, 2018 Depth of local resources. Headquartered in the Pacific Northwest, we Mark Welch maintain a strong presence in the state of Oregon. Your engagement will be Administrative services staffed with government-specialized professionals from our Oregon region and Director primarily from our Medford office, giving you access to the industry resources City of Ashland you need right in your own backyard. We have the depth-of resources necessary 90 N. Mountain Avenue Ashland, OR 97520 to serve the City with local and regional professionals. L Smooth transition. We've put a lot of effort into designing a transition process that minimizes the impact on you and your staff. We take responsibility for setting meetings, getting to know your operations, and making accommodations so you can focus on running the City's operations. Solid relationships and communication. The City needs a team dedicated _ to working closely with the agency as a trusted resource, a team that's more than a once-a-year service provider. That's why during the audit and throughout the year, well solicit and encourage communication to facilitate a smooth process and keep management apprised of new accounting pronouncements and industry issues. Well maintain close and regular contact with you throughout the year, Single audit focus- We've devoted significant fnmwide resources to developing - one of the largest single audit practices in the nation. In addition to the over 3,200 single audits our team has performed since 1997, we've created a rigorous training program to make sure our teams are up to date with Office of Management and Budget (OMB) compliance. i i We commit to making the City a long-term and extremely satisfied client of Moss Adams. Our personal promise to you is to be sure you receive the best service Moss May 8, tots Adams is capable of providing. Markwelch With client service and open communication placed above all else, were sure we 11 Administrative Services provide an efficient and effective experience- Together, we'll infuse knowledge, Director energy, and experience into your engagement. Thankyou for your consideration of City of Ashland Moss Adams. 90 N. Mountain Avenue Ashland, OR 97520 Sincerely, ~"I~Y1r C 0 „ c,~„ r Y `CXJY~> AmandaMeCleary-Moore, CPA , Partner (541) 732-3865 (direct line) (541) 773-2102 (fax) amanda.mmlea - ore mossadams.com L_. i i.. Table of Contents Proposal Form 1 Qualifications and Experience 2 - About Moss Adams 2 Key Personnel on Your Engagement 7 Resumes 8 Proposed Services 12 Your Scope of Work 12 Additional Services ?A Sample Reports 27 References 38 Contract Terms and Conditions 39 Contract Exceptions 39 Exhibit C 40 i EN1 BIT A Request for Proposals MUNICIPAL AUDIT SERVICES April 3, 2018 Proposal Submission Form The undersigned proposer submits this proposal in response to the City's Request for Proposals (RFP) for MUNICIPAL AUDIT SERVICES, released on April 3, 201 S. The proposer warrants that proposer has carefully reviewed the RFP and that this proposal represents proposer's full response to the requirements described in the RFP. The proposer further vn,2^f~ represents that if this proposal is accepted, subject to the exceptions submitted: the proposer will contract with the City, agrees to the terms and conditions found in the attached contract and RFP or has submitted terms and conditions acceptable to the City, and will provide all necessary labor, materials, equipment, and other means required to complete the work in accordance with the requirements of the RFP and contract documents. - The proposer hereby acknowledges the requirement to carry or indicates the ability to obtain the insurance required in the contract, subject to the exceptions submitted. Indicate in the affirmative by initialing here: The proposer hereby acknowledges receipt of Addendum Nos. 1,_2, 3, _ to this RFP. Full legal name of company: Moss Adams LLP Principle owner's name: N/A Business Address: 221 Stewart Avenue, Suite 301 Medford, OR 97501 State and location of company headquarters: Seattle, Washington Year business established: 1913 Telephone Number: (541) 857-1040 Fax Number: (541) 773-2102 Email Address: amanda.mccleary-moore@mossadams.com Authorized Signature: A 1 Printed/'IypedName: Amanda McCleary-Moore Title: partner p Date: GJ l4 { D RFP -Municipal Audit Services, Page 19 of 31 i Qualifications and Experience t ABOUT MOSS ADAMS i - History Our story begins in 1913, the year President Woodrow Wilson signed the federal income tax into law. That same year, John G. McIntosh, CPA, set up a small Seattle practice to serve a booming Pacific Northwest - 105 timber industry. Through good times and bad, through two world wars and 18 US presidents, that practice f~ steadily extended its reach to serve the industries that built this country. 2,900+ ra=FNS Today, that practice is Mass Adams, a fully integrated professional services fine dedicated to growing, managing, and protecting prosperity. Since we put down roots In the Pacific Northwest more than 100 aNeO• years ago, we've steadily expanded to serve clients across the nation and globally. Our full range of k~ services includes accounting, consulting, as well as Individual and institutional wealth management and G tim1eA derprsflnLefil4✓~ meyl9l '/^~'T~.•^~"~`"'~° we're now one of the 15 largest US accounting and oaremer,areonao,e consulting firms. Firm Organization and Management Moss Adams is organized as a limited liability partnership with approximately 330 active partners. Firm business is conducted under the leadership of our chairman, Chris Schmidt; our president, Dave - Follett; an elected executive committee; regional and office managing partners; and many industry chairpersons. Several additional committees convene to handle M specific issues and needs of the firm's business, such 25+ 100+ $577 as accounting and auditing standards, tax practice, .a.w,msrra+vyy w"wnnmun.ua~ uma firm training, industry business development, and information services. Our national office, located in Seattle, Washington, provides certain centralized support services for the firm. Our practice offices have local leadership to help improve opportunities in their " U u ld, mL 1.... v.,w., n u+mm.m local business environment, but offices also work o d" d:o,a collaboratively to best serve our clients. i L MassAdamsl Proposal for GS,y afAShland 2 i I Oregon Focus i Your engagement will be staffed with government-focused professionals based in Oregon-primarily from our Medford office. You'll have access Oregon f to essential industry resources right in your own backyard. Our local team Presence understands the state's economy and will be readily available when you - I need them. You'll be able to connect with any of your engagement 11 35 280+ leaders, partners, or managers through close communication via in- , - years ¢n partners pr¢[¢ssionals person meetings, phone calls, and emails. You can also expect to see at Pdloand least one or all of your engagement leaders and managers on-site during B V than S Journal's the audit to answer questions and further facilitate communications with 10 Most Admired your team. List Licensed Mun0palAuditors Amanda McCleary-Moore, proposed engagement partner, is a licensed Oregon municipal auditor under number 1574. Jim Lanzarotta, proposed quality control reviewer, serves under license number 1116. Like other government entities throughout the state, the City must comply with appropriate legal provisions, most notably, Oregon Minimum Audit Standards. Your proposed team works with numerous - cities and counties throughout the state-you won't find professionals who understand Oregon municipalities better than they do. In fact, we were recently selected to serve the City of Medford and, similar to the City of Ashland, the City of Grants Pass, for which we'll also perform a lodging review; they'll join a robust local client portfolio which also includes the following clients: Current and Former Oregon Government,Clients City of Bend Financial and Compliance Audits City of Brookings Financial; Compliance; and Urban Renewal Agency Audits City of Portland Financial, Compliance, and Landfill Agreed-Upon Procedures i L_ City of Tigard Financial and Compliance Audits Clackamas County Financial and Compliance Audits, including the Parks and Recreation District component unit Curry County Financial; Compliance, and Transit District Audits Jackson County Financial, Compliance, and Passenger Facility Charge Audits Josephine County . Financial and Compliance Audits, Landfill Agreed-Upon Procedures, and Tax Levy Examination Klamath County Financial, Compliance, Drainage Service District, and Library District Audits; Landfill Agreed-Upon Procedures .Lane County -Financial and Compliance Audits, Landfill Agreed-Upon • Procedures, and Tax Levy Examination. Multnomah County Financial and Compliance Audits Port of Astoria Financial and Compliance Audits Port of Coos Bay Financial and Compliance Audit Portland Development Commission Financial and Compliance Audits. Portland METRO Financial, Compliance, and Bond Covenant Audits TriMet Financial, Compliance, and F I1vNTD Agreed-Upon Procedures I I Ma55Adwts I Proposalfor City ofAshland 3 l Government Services The City will be in good hands with our skilled team of government auditors. These individuals focus their entire careers on serving tax-exempt entities and are part of a firmwide team of over 180 professionals I providing services to a group of specialized practices including governments, higher education L institutions, nonprofits, tribal and gaming entities, and municipal utilities. This team currently serves almost 1,500 clients throughout the United States each year. We have several experienced partners and L senior managers who lead audit engagements for over 250 governmental entities including state agencies; cities and counties; public colleges and universities; special purpose governments including ports, utility districts, and transit agencies; public retirement funds; and others. You'll receive a more effective audit from our Industry professionals who have a deep understanding of L- your industry. They don't simply "dabble" in audits of governmental entities and thus are more likely than generalists to spot potential problems, create effective solutions, and understand the trends. Professionals Dedicated to Nonprofits Tax-Exempt Clients and Government Served FirmiNicle L EXPERIENCE LEVEL NUMBER 7YPE' NUMBER Partners 27 Not-for-Profit 1,265 Senior Managers and Directors 48 Government 250+ L ' Managers 45 i Senicrs.and Staff 60+ TOTAL 180+ C We recognize government organizations are accountable to many different constituencies--oversight agencies, audit committees, elected officials, taxpayers-all with different expectations and demands. That's why we commit significant personnel and resources to our Government Services team, building technical expertise In all areas of government. We have several experienced partners and senior _ managers who lead audit engagements for over 200 govemment entities including state agencies; cities and counties; public colleges and universities; special purpose governments including ports, utility districts, and transit agencies; public retirement funds; and others. GASBInuolvement Through close ties to industry standard setters and associations and our firm is deeply involved with L GASB. In fact, David Bean, director of research and technical activities for GASB, has joined our firm's Government Services team regularly over the past 10 years. He typicallyjoin$ our group of more than 150 practitioners on an annual basis for a two-hour presentation and discussion of the latest government accounting pronouncements and topics of interest to our professionals and their-clients. Implementation New GASB Pronouncements I We've assisted many of our clients with implementation of new accounting standards, including, most recently, GASB No. 77. As a result of our national Involvement, we're helping develop implementation guidance to assist our clients with GASB No. 75 in,2018i which includes client training and tools for practical application. k=Ada lProposarfor CftyofAshiand 4 KEY PERSONNEL ON YOUR ENGAGEMENT Staffing Flan I To conduct the best audit possible, we've assigned a manager who dedicates all of her time to government entities to your engagement. Kimberly Reno, your proposed manager, will be on-site for the majority of the audit to provide daily supervision of the in-charge and staff accountants. This will involve directing and reviewing the efforts of the staff members performing the engagement and making sure engagement objectives are accomplished. Supervision will occur as work is performed to identify and resolve issues or Inefficiencies in real time. THE CITY'SEN AA."'ITTEAM • - _b n &MeUeary-Moors dim 7anzazoHa Paroaer - Parmrr Enaaaemant Leader OuaSryCowN Revrnser Iumberlpneno We tanilelmn 1'raneger Direcfer Aedd U"ger ITA.Wv ElrenAlphoruo - Senior i AurLr Servor L In addition, Amanda McCleary-Moore, engagement partner, will be involved throughout the process and is available for technical questions and support. She will also be on4te for portions of the fieldwork because we believe this improves client service and facilitates rapid responses to,any questions that arise during fieldwork. Accounting Staff We'll select and assign professional staff on the basis of their prior government industry experience and I their ability to complete each assignment with careful consideration of your deadlines and time frames. Because Moss Adams is an industry-based firm, our staff and seniors begin to specialize within their _ careers early on. There are a number of staff members with considerable government industry experience in our Medford office. We'll be happy to make these individuals available for interviews at your request. MossAdams I Proposalfor Gary ofAshrand 7 RESUMES Amanda McCleary-Moore, CPA, Partner Amanda will serve as the engagement partner for the City. She'll be responsible for making sure your audit is performed in compliance with firm and professional standards. Amanda will work with the City council on communicating audit and = financial-related matters and with management on the implementation of new accounting standards as well as providing technical assistance and review for the y City's financial statements, single audit and other reports. Professional Experience Amanda has practiced public accounting since 2000 and focuses on serving clients in the government and not-for-profit industries. She has provided a range of services to her public and tax-exempt clients. Amanda leads the not-for-profit and government group in the firm's Medford office. Representative Clients City of Bandon, OR 0 Klamath County Drainage Service District, OR _ o City of Brookings, OR a Klamath County, OR City of Tigard, OR o Lane County, OR Clackamas County, OR Oregon International Port of Coos Bay, OR Curry County, OR o Urban Renewal Agency of Brookings i e Jackson County, OR Certifications - a Certified Public Accountant, Oregon, license number 10608 Municipal Auditor, license number 1574 Professional Affiliations Member, American Institute of Certified Public Accountants Member, Oregon Society of Certified Public Accountants ~ o Member, Government Finance Officers Association Community Involvement o Member, Finance Committee, Habitat for Humanity Member, Audit Committee, Southern Oregon Goodwill Industries, Inc. Board member, Logos Public Charter School Education BS, accounting, Southern Oregon University i Relevant Training For the past three years, Amanda has met the industry-specific and audit continuing professional education requirements in accordance with Government Auditing Standards. Amanda participated in the Moss Adams pension task force to provide CPE internally and externally related to GASB No. 68. Additionally, Amanda has completed 172.50 hours of continuing professional education over the past three years. Moss Adams I Proposal for- City ofAshland 8 i Jim Lanzarotta, CPA, Partner, National Practice Leader, Government Services Jim will serve as the quality control reviewer for the City. Professional Experience Jim has practiced public accounting since 1984 and specializes in providing audit, 41 accounting, and consulting services to governmental entities including state agencies; counties; cities; universities and their foundations; port and ANN transportation authorities; and water, sewer, and other special districts. Representative Clients ° City of Bend, OR ° Klamath County, OR ° Portland Development ° City of Portland, OR ° Lane County, OR Commission, OR City of Tigard, OR ° METRO ° State of Oregon, Secretary - of State ° Clackamas County Service ° Multnomah County, OR Tri-Cities Service District District No. 1 ° Oregon compliance audits ° ° Clackamas County, OR as part of state's single Tri-County Metropolitan audit Transportation District, OR a Curry County, OR Jackson County, OR Port of Stockton, CA Certifications ° Certified Public Accountant, Oregon, license number 5435 ° Municipal Auditor, license number 1116 Professional Affiliations ° Associate member, Government Finance Officers Association ° Associate member, Oregon Government Finance Officers Association ° CPA committee member, Oregon Society of Certified Public Accountants Member, American Institute of Certified Public Accountants ° Member, Financial Accounting Foundation's Governmental Accounting Standards Advisory Council e Past chair, Governmental CPE Committee, Oregon Board of Accountancy Education ° BBA, accounting, University of Oregon Relevant Training For the past three years, Jim has met the industry-specific and audit continuing professional education requirements in accordance with Government Auditing Standards. Jim's currently an appointed member of the Financial Accounting Foundation's Governmental Accounting Standards Advisory Council, a group of leaders responsible for advising GASB on issues related to the financial accounting and reporting by state and local governments. Jim has completed 147 hours of continuing professional education over the past three years. i Moss Adams 1 ProposalforCity ofAsh Iand 9 Weston Nelson, CRISC, LISA, Director , Weston will serve as an IT consultant for the City. a Professional Experience ° Weston has provided financial compliance, internal control, and ask management services since 1996. His ask management services include internal audits, Sarbanes-Oxley compliance, process and control analysis, IT compliance and strategy, IT governance, ERP solutions, and anti-bribery. Weston has a broad-based collaborative approach to risk management, working closely with stakeholders to understand business and compliance risks while developing strategies to improve, remediate, and monitor compliance and risk management efforts. He has helped companies develop appropriate strategies to address regulatory rules and compliance with the Public Company Accounting Oversight Board (PCAOB), Control Objectives for Information and Related Technology (COBIT), Foreign Corrupt Practice Act (FCPA), and the SEC Sarbanes-Oxley Act. Weston has led global compliance practices and strategy for multinational companies in the Fortune 100, Big Four, and regional public accounting environments. He began his career with a Big Four firm and was most recently the global finance compliance director for Nike. He previously spent two years at Moss Adams providing business risk management and control solutions, helping clients implement and manage SOX 404 engagements and internal controls over financial reporting. Professional Affiliations Certified in Risk and Information Systems Control Certified Information Systems Auditor o Member, Information System Audit and Control Association Member, Institute of Internal Auditors Education MAcc, Brigham Young University BS, accounting, Brigham Young University Continuing Professional Education Weston has completed 169 hours of continuing professional education over the past three years. MwsAda I A'oposalfor aty ofAshiand io i Kimberly. Reno{ CPA; Manager. . Kimberly will serve as the City's audit manager. _ Professional Experience Kim has practiced public accounting since 2012. She provides professional services to clients encompassing a variety of industry groups, Including government entities and not-for-profit organizations, as well as employee benefit plans. Representative Clients Kimberly's experience includes managing engagements for Klamath County and Josephine County- Certifications - _ Certified Public Accountant, Oregon, license number 14802 ProfessionalAffiltations Member, Amedcen.lnstitute of Certified Public Accountants Member, Oregon Society of Certified Public Accountants Education BA, business administration (concentration in accounting), Southern Oregon University Relevant Training Kimberly has met the-industry-specific and audit continuing professional education requirements in accordance with Government Auditing Standards and has completed 169 hours of continuing professional education over the past three years. EIlenAlphonso, CPA, Serdor Ellen wilt serve as the City's audit senior. Professional Experience Ellen has practiced public accounting since 2015. She's a member of ourfirm' s Government Services Practice and Employee Benefit Plan Services group providing a variety of services to municpal governments and tax exempt entifies. Representative Clients Ellen's municipal experience Includes working with Klamath County, Jackson County, and the American Samoa Power Authority. j Certifications Certified Public Accountant, Oregon, license number 14913 Professional Affiliations _ o Member, American Institute of Certified Public Accountants Member, Oregon.Socfety of Certified Public Accountants Education . Post Baccalaureate Certificate, accounting, Southern Oregon University BS, communication arts, Georgia Southern University RelevantT raining Ellen has met the industry-specific and audit continuing professional education requirements in accordance with Government Auditing Standards and has completed 175 hours of continuing professional education over the past three years. MossAdams I Proposalfor Qty ofAshland u Proposed Services YOUR SCOPE OF WORK (Proposed Approach It's not just about what we do, it's about how we do it. For us, an audit isn't just a compliance exercise. It's an opportunity to view the City at a macro level, go well beyond the numbers, and provide greater value than simply complying with a requirement. We understand the scope of this engagement covers annual municipal audits for the City, Ashland Park and Recreation Commission, the City's Food and Beverage Tax, and the City's Transient Occupancy Tax Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, Uniform Guidance for Federal Awards. We have a deep respect for your time and don't believe in the one-size-fits-all approach so well create an approach specifically suited to the City. After all, why spend time on procedures that aren't L necessary? Customizing our process results in an efficient audit that's complete in fewer hours. Oregon Minimum Audit Standards Our firm has developed a comprehensive audit program designed to test the City's compliance with certain state laws as required by the Oregon Minimum Audit Standards, including the following: Legal and Budget Review of the budget document, published notices, and the ordinance adopting the budget. We also test the City's quarterly budget changes during the year for all major funds and a sample the smaller funds e Public Purchasing. Sample public contracts for compliance with ORS requirements _ Deposits and Investments. Test the City's depositories against the approved State Treasurer's list, investments against guidance on what is allowable, and the City's investment policies • Insurance. Verify the City's has a risk management program Indebtedness. Test the City's compliance with legal debt limits and debt covenants Highway Funds. Test the City s expenditures of gas tax receipts against state requirements Programs Funded with Outside Sources. Test a sample of grant programs for compliance with grant requirements Reporting. Provide a report to be included in with the audited financial statements that reports our findings. All findings will be discussed with management immediately so there are no surprises when the final written report is delivered. I ArowAda I Proposalfor Qty ofAshlmd z2 1 ~ L~ Methodology Understand Create Audit Finalize Audit Strategy Perform Audit Concerns . - -Meetwith -Evaluate FINANCIAL COMPLIANCE -Meetwith _ committee options committee and and -Perform control -Test management management -Evaluate procedures of controls over -Get feedback transaction -Identlfyrlsks flows and -Appl substantive compliance -Present and controls -Test program discuss -Note views tests compliance findings on fraud -Understand - federal -Execute data -Explore programs and analyses s approach determine -Examine major programs campllance' - Develop with laws and specifics of regulations plan COMMUNICATE Iwo The City will'beneft. from our customized, risk-based audit approach as well as the timely.and effective communication and coordination of our audit activities. With dedicated and ongoing involvement from our partners and senior-level professionals, the audit will be planned and executed by an experienced team that understands your industry. During the audit, your Moss Adams audit partner, Amanda McCleary- Moore, will be in the field to review the work in progress and address any issues with management. This reduces time spent on post-audit procedures and wrap-up. Our emphasis on tailoring an integrated audit to focus on the areas of significant risks allows us to complete the audit in an efficient and effective manner. Our audit will include the following: Plan the engagement based on a thorough understanding of your business risks and transactions Communicate and coordinate activities with management and the audit committee based on an agreed-upon timeline Conduct continuous audit procedures to increase efficiency and reduce the burden on your personnel at year-end' Work with management to resolve any complex accounting or reporting issues as early as possible in the audit process Provide recommendations to management for areas of improvement Federal Compliance Audit Given our vast experience in this area and our sizable Govemment Services team, we have a deep understanding of the challenges involved in adhering to grant requirements at all levels: federal, state, and local. Our general audit approach follows the guidelines and framework in Govemment Auditing Standards (GAS) and the Uniform Guidance for Federal Awards. This approach is risk based, beginning with the identification of major programs for audit and the related applicable Compliance requirements described in the OMB Compliance Supplement, grants, and contract agreements. We also have specific experience the City's programs including Community Development Block Grant and the Safe Drinking Water Act. I i ! NossAdams I Pmposalfor City ofAshland 13 1 i Work Plan TRANSITIONING TO MOSS ADAMS ifs our first step in welcoming you as a new client-and it's an important one. Our goal? To avoid disruption to your staff and make the transition period as smooth as possible. You'll get: Personal, Flexibility No Surprises Partner-Led Service - We meet with ou well before - Close leadership of -A transition plan tailored y engagement teams to your needs _ the transition -We look over your financial - Face-to-face meetings - Responsive, ereactive statements ahead of time with your team -We create a communication -Focus on building a -Ability to hit the ground plan so you stay informed relationship running with your existing report methods and -We cutllne clear expectations workpapers and timing for both of us 'T'ransition Steps 1. Entrance meetings. Conference with your finance department and other appropriate groups to discuss risks, expectations, processes, and timelines. 2. Planning sessions. Meet with key managers to discuss risks, expectations, the audit process and timelines, and to share key strategic, financial, and operational information. 3. Review working papers. Examine your prior auditor's working papers to understand their audit approach and the timing of their procedures and to determine the scope of any additional procedures our team will perform on the opening balances in your financial statements. 4. Design audit approach. Devise an efficient and effective approach that addresses the potential risks we discover. GG We were very impressed by the level of knowledge and professionalism of the Moss Adams staff. They were thorough, yet efficient, when performing their fieldwork reviews and worked well as a team. It was clear that they collaborated and communicated well as an audit team to ensure they perfonned as much research and reviewon their own before contacting City of Bend staff for follow-up questions which limited the interruptions of our daily operations. The Moss Adams team was not only incredibly knowledgeable, but it was clear that they work well together and enjoy the work they are doing, which I credit to the firm's philosophy of supporting their staff and assigning staff to their areas of interest, which in the end, benefits us as a client because we are more likely to have a consistent audit team year after year. 'First time through" audits are typically painful, but Moss Adams made the transition seamless and l look forward to our continued relationship with them! -Sharon Wojda, Finance Director City of Bend I Moss Adams IProposalforCity ofAshland 14 _ it i PLANNING PHASE We'll begin with an overall risk assessment. Our risk assessment processes include Information gathering activities followed by robust planning sessions that include all engagement team members. We'll involve specialists where appropriate, including our IT team. Next, we'll perform a thorough evaluation and discussion of industry trends and the City's system environments and developments. We'll consider the impact of general industry and economic conditions on the financial reporting processes and federal compliance. We'll discuss and review documentation of processes and controls, including technology-based controls with management. Our objective is to develop a preliminary assessment of risks of material misstatement of the financial statements due to _ fraud or error and of material noncompliance with laws and regulations. Following our preliminary risk determinations, our IT professionals may visit the City's sites to assess the various systems' general and application controls and advise the audit teams regarding the control environment. This preliminary work is critical to the entire audit process and allows us to design the optimal, tailored L _ approach for the City's audits. Robust planning, solid communication, and excellent project management are critical to a successful audit project. We exert significant effort to make sure our approach in these areas is thorough, appropriate, and clearly developed with your input and involvement. Our goal is to conduct adequate and appropriate, but not excessive, procedures in the areas of greatest risk. Our audit plan will include tests of the design and implementation of internal controls, controls testing when they're operational and effective, and substantive tests of balances to augment the evidence obtained from controls testing. Sampling techniques'will be employed and various sites to be visited will be determined. based on the results of our controls testing and risk assessment. ! How We Plan to Use Your Personnel in the Audit Prepared by client (PBC) requests are a key area audit that will involve your staff. We'll collaborate on ways to make your audit more efficient by reviewing the PBC list with your financial staff in advance so expectations are clear. PBC requests are customized to your specific circumstances and tailored each year to make each subsequent audit more efficient. In consideration of your staffs time and effort, we use reports or schedules you prepare internally to the extent possible. Specific requests may include the following: = Providing systems descriptions, policylprocedures manuals, and other internal control-related documents o Fulfilling preparation of cash, investment, and other confirmation requests Providing a reconciled trial balance (in electronic format) Completing lead and other schedules and supporting documents Completing various questionnaires and checklists We II establish a client service plan with management that sets the expected due dates for each stage of the engagement and includes weekly audit status meetings with your team. The quality control reviewer will be involved throughout the engagement during the planning, fieldwork, and reporting process to help prevent surprise issues from appearing at the end of the engagement. i Moss AdmnslProposarfor CFtyofAshland 15 i i Evaluating inherent and Control Risk Based on our understanding of systems and controls in place, we'll evaluate the relative levels of inherent and control risk for each balance presented in each set of financial statements and make an assessment of the risk of material misstatement due to fraud. Our audit design will reflect this assessment. The audit programs for each balance will be tailored to obtain evidential matter from a combination of reliance on internal control, analytical procedures, and substantive testing. The reliance on each source of evidential matter will vary by audit section. I Sampling Procedures When applying sampling procedures, we use a statistically-based sampling approach that's unbiased, effective, and efficient. We use random sampling methods for tests of controls and monetary sampling methods when applying substantive tests of details. We prefer the cumulative monetary amount method due to its efficiency and effectiveness. We'll use sampling throughout the engagement to test financial statement balances. We'll typically obtain an 80%a to 95% confidence level during our testing depending - upon the attributes of the test. Analytical Procedures In the audit planning phase, we'll compare current-and prior-year results to identify potential areas requiring additional audit focus. We'll will also compare City's results with industry benchmarks so we can consider the reasonableness of reported amounts. During substantive testing, we'll analyze the detail of - changes occurring in accounts such as accounts receivable, capital assets, unearned revenue, and investments. Near the audit conclusion, we'll conduct a holistic review of the financial statements to assess conformity with audit expectations. At this point, we'll reconsider planning stage procedures to be sure we've appropriately tested all critical areas. During all stages, we'll develop independent expectations of anticipated results, compare these expectations to actual results, and investigate any differences exceeding a predetermined significant difference threshold. I Evaluating Risk i For each balance presented in City's financial statements, we'll evaluate the relative levels of inherent risk and control risk and make an assessment of the risk of material misstatement resulting from fraud or error. We'll tailor each audit program to obtain evidence from a combination of internal control testing, analytical procedures, and substantive testing. The degree of evidence to be obtained from each of the three general types of procedures is determined using an audit approach decision model to account for the strength of the institution's system of internal control. i - ~ y i - Moss Adams I Proposalfor City ofAshland T6 I iSingle Audit Planning During the federal compliance audit planning phase, we'll develop an efficient audit approach and design audit programs after considering the following matters: Results of prior single audits Your schedule of expenditures of federal awards Satisfaction of federal and other relevant legal, regulatory, or contractual requirements o Determination of entity and program risk Satisfaction of the additional requirements of GAS Satisfaction of federal compliance audit requirements regarding scope of testing, working papers, and audit follow-up Timing of conduct and completion of the audit and reporting submission deadlines Results of our preliminary risk assessment Determination of preliminary level of materiality Determination of applicable laws, regulations, and compliance requirements Understanding of applicable state and local compliance and reporting requirements Results of desk reviews and on-site reviews performed by grantor, pass-through, or other oversight agencies For federal financial assistance programs, we use our knowledge and the guidance and procedures within the federal compliance audit requirements and the OMB Compliance Supplement for the selection - of major programs and the preliminary identification of risks associated with those programs. Once the major programs have been selected, the further plan our audit by performing a combination of interviews ! with program officials, reviews of internal audit work, and In-depth reviews of the grant or program agreements. We also read and understand program reviews from external agencies, applicable audit guides and updates, instructions from pass-through agencies, and existing regulatory guidance from the { granting agency. For federal programs not selected as major, we determine which programs or specific agreements may have a direct and material effect on the financial statements. Lastly, we rely on our experience with other clients in the same industry, and our extensive professional education programs ' that keep us current and informed. i Drawing Audit Samples for the Federal Compliance Audit Specific tests of internal control and of compliance are designed and may include the use of audit samples. Appropriate sampling techniques are determined and tailored to the particular test. Data extraction software may be used. i i i MossAdamsl Proposarfor City ofAshla.d 17 i i I_ INTERIM FIELDWORK Internal Controls Testing The main objective of this phase is to assess the adequacy of City's internal controls including financial, operational, and general computer controls. As required by auditing standards and federal compliance requirements, we learn about your control environment and any laws and regulations that are applicable j to our test work; perform risk assessment; and test control activities, information, communication, and monitoring. This determines the number and level of substantive tests to use. The following is our methodology for assessing internal controls: Obtain knowledge of design of controls relevant to each accounting cycle, financial reporting, and compliance with laws and regulations that have direct and material effect on determination of financial statement amounts. e Perform tests of controls that relate to financial statement assertions and perform tests of controls and compliance related to City's federal awards. Obtain copies of system, policy, and procedure documentation from various departments. We retain these copies in our permanent working paper files and update them annually. _ = Our tests of internal controls will be conducted in the most efficient manner possible. This includes performing dual purpose tests that provide assurance over multiple accounts within the statements. For example, when testing additions to capital assets, we'll incorporate tests of accounts payable and purchasing. • o Our IT audit professionals will test general computer controls. General computer controls provide assurance that data and programs that process the data are protected from unauthorized ion and processed in-accordance with management's intentions, and that confidentiality is modifcat L maintained. Sample sizes for tests of compliance will be determined based on the significance of the account balance, current-year risk assessment, results of preliminary planning, and historical experience (i.e., I existence of any control deficiencies noted In prior years). l.. Any matters relating to the internal control structure that are noted during the audit will be communicated . to City's management during this interim phase and may be included in our letter of recommendations. Significant deficiencies or material weaknesses noted during our audit will also be communicated to City management during this phase and will be included in an internal control report that will be issued at the time our audit reports are released. L I- i- I r- • i- MossAdams l Proposalfor City ofAshland 18 I capsassets, including related accounts such depreciation, classification ® Capital as capital vs. expense, capitalized interest, and potential impairment Accounts are inherently complex in that they contain management estimation and require strong systems of internal controls. The accounting for capitalization vs. expense of assets and testing for Solution .3. =r impairment have become increasingly complex in recent years. Our audit team has extensive experience with accounting for the construction of capital assets. GASB provides the appropriate guidance with respect to potential impairment and we've assisted many of our clients with their analyses. Self- constructed assets and aspects of the work order system can be complex as . well; for example, allocated charges to plant such as overhead and other soft costs require management estimation and judgment We perform much of our testing of these accounts on an interim basis and plan to test and rely upon your internal control structure to gain our audit assurance in this area. ® Bonded debt and related accounts Arbirtrage, capitalized interest compliance with debt covenants, and capitalized interest all combine to make this a complex area. Our audit team is comprised of municipal specialists who frequently deal with I _ Solution the complexities of arbitrage liabilities, capitalized interest (SFAS 34 and 62, now codified in GASB No. 62), and debt refundings (GASB No. 7 and No. 23). All of the members of our audit team possess the expertise to effectively address these issues in a manner that's timely and responsive to the City. - Many of these issues can be addressed and resolved at an interim date prior to year-end. I ; i I MossAdmru I Fropow1for My gjAsfiland zz r Tbjj ina b The fallowing is a proposed first-year engagement schedule for City. We'll discuss any adjustments you may need when we meet with you- Service Description AUDITOR TRANSITION Schedule to meet with your. prior auditor to review their working papers January 2019 AUDIT PLANNING Meet with management for pre-audit planning and to obtain an February 2019 understanding of systems, internal controls, and current-year issues Provide management with a detailed list of items needed to perform the February 2019 audit, including the timing of when items are needed AUDIT;FIELDWORK perform interim audit fieldwork and tests of internal controls February or March 2019 Send confirmations of cash, investment, and other accounts as deemed July 2019 necessary Perform substantive audit fieldwork August 2019 REPORT PREPARATION, Present draft of financial statements, audit report, and management letter to September 2019 senior management BOARD COMMUNICATIONS. Present final audit report, financial statements, and management letter to November 15, 2019 the board of directors or trustees L Moss Adams I Proposalfor City ofAshiand 23 i ADDITIONAL SERVICES We understand the scope of this engagement is limited to the requested audit services. But the people that make up your engagement team, like all our professionals, have a wider skill set and are trained to be aware of issues that fall outside typical assurance and tax work. Exposing our accountants to a broad range of financial and operational disciplines is an approach that's hardwired to our practice. We do this because we place a high value on having peripheral vision when it comes to your business. It's the difference between being able to advise you on your business versus serving as 'just an accountant" For this reason, the City should know Moss Adams can provide a broad set of additional . solutions if the need arises, including the following: TTServices IT services represent a core component of the Moss Adams consulting practice. Our consultants have extensive business and technology backgrounds, complemented by their systems expertise. We understand the benefits of automation and technology as well as the risks. ` Our IT professionals assist clients with planning system needs, selecting hardware and software, managing third-party vendor installations of hardware and software, and acting as an ongoing resource for your internal IT specialists. We're capable and available to handle entire projects or to provide occasional consultation services. To support our efforts, we bring technology and business consultants to the team who've successfully participated in: Altematives analysis a Network design and administration Complex technology assessments o Penetration testing Contract negotiations Security reviews Disaster recovery and business continuity planning - Strategic planning implementations o System needs analysis Independent system acquisitions a Workflow re-engineering Our team is comfortable with the unique requirements of not-for-profit organizations and the intricacies of their related technology systems. Our consulting group has a reputation for value, objective analysis, and _ focused insight. Our extensive experience enables us to efficiently and effectively guide organizations through security assessments and procedural reviews to make realistic recommendations that clients can implement. As a result, we're often asked to address the most challenging issues facing management and operational teams. Serving clients throughout the West, our IT team is comprised of accomplished security and system engineers with authoritative resources in security policy and workflow administration . and management. With detailed technical understanding and business process expertise, we provide a comprehensive approach to information security. Moss Ada=lProposalfor Gl-tJofAshland 24 i Gybersecurity Services Today, nearly all business and financial operations are technology-driven, making IT systems central to your organization's sustainability. This means nothing's more important than being sure of the security and availability of those systems and protecting both your sensitive corporate information and the personal information of your employees and customers. Our cybersecurity IT consulting services include the following: IT security assessments a Social engineering o Network vulnerability assessments and C Disaster recovery and business continuity penetration testing planning _ o Web application penetration testing a Application code security reviews Security analytics a HIPAA security reviews c Wireless network assessments C GLBA security reviews Internal Audit Solutions With the mounting pressures and challenges that you face, you can achieve your organization's goals, improve your local capability and efficiency, and reduce your compliance costs. Moss Adams can help you implement a cost-efficient and effective internal audit function that will be valued by your management and board members. Working with you, we can address such challenges as: i , Audit committee expectations Internal control problems Inefficient business control processes o High.fixed internal audit costs Unfulfilled internal audit needs Insufficient coverage of IT Compliance failures PerforrnanceAudits Now more than ever, higher education institutions are expected to demonstrate performance levels typically associated with businesses. As a result, boards, councils, and management teams have had to rethink how they operate and provide greater emphasis on continuous improvement, performance metrics, and return on investment. One of the key means of doing so is via a performance audit--a thorough examination of your operations. Performance audits focus on significant and probable risks to achievement of important program objectives. We conduct performance audits in accordance with rigorous firm standards that reflect relevant AICPA standards and apply these standards throughout our process. SCORE! SCORE! is a diagnostic consulting service that helps our not-for-profit clients assess the effectiveness of their internal systems and operating procedures. In a SCORE! engagement, we conduct assessments that help locate and eliminate common problems that can lead to long-term financial harm for the organization. This service is a fully customized modular tool that is adaptable for different settings and circumstances. MossAdams I ProposalforCityofAshland 25 L I StrotegicPlanning The exempt industry is experiencing tremendous change under overwhelming constraints. Organizations - are realizing the need to rethink strategies to survive and thrive in the future. Now more than ever before, strategic planning has become a critical issue for exempt organizations. We encourage our clients to think, plan, and act strategically for the future. We've found that the most successful organizations today - have a clear sense of purpose, effective leadership, and a comprehensive plan. Policy Development and Documentation Policy generally governs the intended use and purpose of systems within an organization and frequently must be addressed prior to system planning. Because policy-level issues often span the business functions of an organization, our involvement frequently addresses high-level policy and procedures issues. Construction Audit Services As the City continues to grow, you may want to have a third party review your construction contracts to make sure you're being billed appropriately and there are no inconstancies. Moss Adams performs 40 to 50 similar engagements per year for construction programs valued between $2 million and $3.5 billion where a guaranteed maximum price (GMP) contract is used. Our team brings needed knowledge of construction means and methods as well as direct experience in monitoring and analyzing construction operations. This enables efficient audit delivery and effective coordination with your project team. L i MbnAldams I Pmposalfor aty of lmd 26 Sample Reports We've Included sample reports from the City of Brookings and Jackson County on the following pages. MOssAdawIProposalfor IXryafAshrand zy MOSSADAMS Report of Independent Auditors Honorable Mayor and Members of the City Council City of Brookings, Oregon Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, budgetary statement for the general fund and the aggregate remaining fund information of the City of Brookings, Oregon (the City) as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Managemenfs Responsibilityfor the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted In the United States of L America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures _ in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. i L Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2017, and the respective changes in financial position, respective budgetary statements for the general fund and, where applicable, cash flows thereof for the year then. ended in accordance with accounting principles generally accepted in the United States of America. Other.31atters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages iv to x, schedule of proportionate share of net pension liability on page 45, and schedule of contributions on page 46 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial i statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund financial statements and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements on pages 47 through 87 and schedule of expenditures of federal awards on page 90 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. ii ~L Reports on other Legal andRegulatorgRequirements Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2017 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion ' on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Other Reporting Required by Minimum Standards forAudits of Oregon Municipal Corporations In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have issued our report dated December 6, 2017 on our consideration of the City's compliance with certain L provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. ` ~,~rrvaa~~tAztwr,~ "~mv Amanda McCleary-Moore, Partner for Moss Adams LLP Medford, Oregon December 6, 2017 , L i L I Hi i r_ MOSSADAMS Report of Independent Auditors on Compliance and on internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Oregon Minimum Audit Standards Honorable Mayor and Members of the City Council Y City of Brookings, Oregon We have audited the basic financial statements of City of Brookings, Oregon (the City) as of and for the year ended June 30, 2017 and have issued our report thereon dated December 6, 2017. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. Compliance As part of obtaining reasonable assurance about whether the City's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grants, including provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules OAR 162-10-000 to 162-10-330, as set forth below, noncompliance with which could have a direct and material effect on the determination of financial statement amounts: The use of approved depositories to secure the deposit of public funds. The requirements relating to debt. The requirements relating to the preparation, adoption and execution of the annual budgets for fiscal years 2017 and 2018. The requirements relating to insurance and fidelity bond coverage. G The appropriate laws, rules and regulations pertaining to programs funded wholly or partially by other governmental agencies. The requirements pertaining to the use of revenue from taxes on motor vehicle use fuel funds. The statutory requirements pertaining to the investment of public funds. o The requirements pertaining to the awarding of public contracts and the construction of public improvements. 88 iF However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Internal Control over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for-designing our auditing procedures for the purpose of expressing our opinion on the t i financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. We noted certain other matters that we reported to management of the City in a separate letter dated - December 6, 2017. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. _ Amanda McCleary-Moore, Partner for Moss Adams LLP Medford, Oregon December 6, 2017 L L I 89 I r MOSSADAMS Control Report of Independent Auchtors on Internal Co over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and Members of the City Council City of Brookings, Oregon We have audited, in accordance with the auditing standards generally accepted in the sited States of America and the standards applicable to financial audits contained in Government Aud , each d maStates, jor fund, bufinancial statements of the Standards issued by the Comptroller dgetary statement for he governmental activities, the business-type tactivities Q t f the rookings general fund, and the aggregate remaining 30 fund the related not s to Bthe financial statements, f City) as of and for the year ended , which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 6, 2017. Internal Control Over Financial Report ing In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial internal u statements, but not for the purpose express an opinion on opinion on the effectiveness of mess of the City's internal control. control. Accordingly, we do not all A deficiency in infemal control exists al course o9perfo menglthe~f asa control sig ed f nctions, tooprevent, _ management or employees, in the nom j or detect and correct, misstatements on a timely basis. in internal control such that here is a reasonable possibility that a a material weakness is a deficiency, or combination of deficiencies, material misstatement of the entity's financial statements will not be prevented, or detected and or a ination of corrected, on a timely basis. A significant deficiency is a han a material weakness, yet,importantbenough todmerit eficiencies, ti in internal control that is less severe attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material s deeto be limitations, weaknesses or significant deficiencies. materal weaknesses. Hwe did oweve~tmatenal any deficiencies in internal control that we con weaknesses may exist that have not been identified. 91 4i Conap&ance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under GovemmentAuditing Standards. ' Purpose of Us Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of thattesfing, and not to provide an opinion on the effectiveness of the entity's infernal control or on compliance. This report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Medford, Oregon December 6, 2017 i I t 92 I . I- MOSS ADAM S Report of Independent Auditors on Compliance for each Major ]Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance i✓ Honorable Mayor and Members - of the City Council City of Brookings, Oregon Report on Compliance for the Major Federal Program We have audited City of Brookings, Oregon's (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the City's major federal program for the year ended June 30, 2017. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management its responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the City's major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, ' issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. 4 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether Y noncompliance with the types of compliance requirements, referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other _ procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the City's compliance. i Opinion on the Major Federal Program In our opinion, City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the major federal program for the i year ended June 30, 2017. 93 Report on internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over _ compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types requirements that could have a direct and material effect on each major federal program to determine _ the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over - compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an • opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal i program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant, deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. ► ' l rid QOM-U,t~ Medford, Oregon December 5, 2017 1= 94 MOSSADAMS Report of Independent Auditors Board of Commissioners Jackson County, Oregon Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type, activities, each major fund, budgetary statements for the general fund, general road fund, and - health and human services fund, and the aggregate. remaining fund information of Jackson County, Oregon (the County) as of and for the year ended June 30, 2017, and the related notes.to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's - preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. viii I 4 - ' i- I iM Other Information C The introductory section on pages i to vii and statistical information (including annual disclosure t--' information) on pages 97 to 125 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing. procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Reports on Other Legal and Regulatory Requirements i Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated L December 19, 2017 on our consideration of the Jackson County, Oregon's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the j l scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Jackson County, Oregon's internal control over financial reporting and L compliance. L Other Reporting Required by Minimum Standards for Audits of Oregon Municipal Corporations In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have r - issued our report dated December 19, 2017 on our consideration of the County's compliance with i certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. ~ ~ CCQQ = 7Yvsrsr2~ ovw~ Amanda McCleary-Moore, Partner for I Moss Adams LLP Medford, Oregon i - December 19, 2017 L L i :i f f L. X I Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free c_ from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not y express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in - accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Medford, Oregon December 19, 2017 i i ' i . o - i 127 ~I Iin MOSSADAMS Report of Independent Auditors on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance as Required by the Uniform Guidance Board of Commissioners Jackson County, Oregon Report on Compliance for Each Major Federal Program We have audited Jackson County's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the County's major federal programs for the year ended June 30, 2017. The County's major federal programs are identified in the summary of aud'itor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of County's majorfederal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the County's compliance. 128 Opinion on Each. Major Federal Program In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. `~YYI orb Medford, Oregon December 19, 2017 129 I MOSSADAMS Report of independent Auditors on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statenients Performed in Accordance with Oregon Minimum Audit Standards - Board of Commissioners Jackson County, Oregon We have audited the basic financial statements of Jackson County, Oregon (the County) as of and for the year ended June 30, 2017 and'have issued our report thereon dated December 19, 2017. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. Compliance As part of obtaining reasonable assurance about whether the County's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grants, including provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules OAR 162-10-000 to 162-10-330, as set forth below, noncompliance with which could have a direct and material effect on the determination of financial statement amounts: . The use of approved depositories to secure the deposit of public funds. _ • The requirements relating to debt. . The requirements relating to the preparation, adoption and execution of the annual budgets for fiscal years 2017 and 2018. . The requirements relating to insurance and fidelity bond coverage. . The appropriate laws, rules and regulations pertaining to programs funded wholly or partially by other govemmental agencies. . The requirements pertaining to the use of revenue from taxes on motor vehicle use fuel funds. . The statutory requirements pertaining to the investment of public funds. . The requirements pertaining to the awarding of public contracts and the construction of public improvements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed one instance of noncompliance that are required to be reported under Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. The County overspent the appropriated capital outlay expenditure for Exposition Park by $9,899; however, did not overspend the total amount appropriated. 141 Internal Control over Financial Reporting In planning and performing our audit, we considered the County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over financial reporting. .A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, material weaknesses may exist that have not been identified. We noted certain matters that we reported to management of the County in a separate letter dated December 19, 2017. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the _ entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. `~Y1c:CQ~at.~r2~ Amanda McCleary-Moore, Partner for Moss Adams LLP Medford, Oregon December 19, 2017 142 References Hear for yourself the unique experience our clients have in working with our firm. We're confident they'll share stories of how we make their lives easier, help them identify and take advantage of rising opportunities, and guide them to increased prosperity. , JACKS• COUNTY • Shannon Bell Finance (541) 774-6535 L Director bellsa(Mlacksoncounty org • BROOKINGS • Janell Howard, Finance and (541) 469 1123 CITY , i. Human Resources Director lhoward(~braokmgs or us Toby LaFrance, Finance and (503) 718-2406 • OR Information Services' Director toby tigard-onu. i i_ i - i ~ i L MossAdams I ProposalforMyofAshland 38 J i Contract Terms and Conditions CONTRACT EXCEPTIONS This Proposal is contingent upon satisfaction of applicable professional standards (ncluding communications with the prior auditors), and negotiation of a mutually acceptable contract. With regard to the terms and conditions set forth in the Personal Service Agreement, Moss Adams suggests: (i) clarifying City's ownership of final deliverables vs Consultants retention and ownership of working papers (§7, 11(a)); (i) focusing indemnification, including to protect auditor independence (§10); (iii) clarifying insurance requirements, including additional insureds are added via blanket endorsement, notification only goes to primary insured, and non-ownership of vehicles (§15); and (iv) providing for representations in lieu of warranties (§17). Additionally, pursuant to professional standards and firm practice, we would expect to confirm our understanding of each engagement on an annual basis In the form of an engagement letter outlining the scope of work and obligations/responsibilities specific to that year's audits. We have successfully signed professional services agreements with thousands of clients, and we commit to working in good faith to successfully negotiate a mutually agreeable contract on a timely basis should we be awarded this contract. i L I i Assurance, tax, and consulting offered through MossAda=LLP.Inoestmentadoisoryseruim offered through MowAdams WwlthAduisamLLC.Inuestmmtb.anking offered through MonAdams CapRalLLC. MossAdams I Proposalfor City ofAshland 3g f ~1 EXHEBr' C Certificate of Compliance I _ Compliance with Oregon Tax Laws: _ In compliance with OAR 137-047-0260(2)(e), I hereby attest or affirm under penalty of perjury: That I am authorized to act on behalf of the proposer in this matter, that I have authority and knowledge regarding the payment oftaxes, and that contractor is, to the best of my knowledge, not in violation of any Oregon Tax Laws, as defined in ORS 305.380. Compliance with Nondiscrimination Laws: In compliance with ORS 279A.110(4), OAR 137-046-0210(2) and OAR 137-047-0260(2)(a)(E), I hereby attest or affirm under penalty of perjury that I am authorized to act on behalf of proposer in this matter, and to the best of my knowledge the proposer has not discriminated and will not discriminate, in violation of ORS 279A.I I0(1), against a minority, women or emerging small business enterprise certified under ORS 200.055 or against a business enterprise that is owned or controlled by or that employs a disabled veteran as defined in ORS 408.225 in obtaining a required subcontract. Corpor \a Officer: Bi: r t,,.dd 0. Y VIC E V Y l Signature Amanda McCleary-Moore Print Name Partner Title 5141IS Date i RFP - Municipal Audit Services, Page 21 of 31 . 1 Exhibit E 1 FEE ARRANGEMENT WORKSHEET 1 Fee Categories City Parks Total Audit Fee $ 37,000 $ 9,600 $ 46,600 1 Financial Statement Preparation N/A - RFP notes management will draft financial statements. Single Audit $ 4,250 $ -is 4,250 1 Other Related Services: GFOA Certificate of Achievement No additional cost Other Technical Assistance No additional cost for routine phone calls and e- 1 mails. Anything outside of the scope of the audit will be discussed with management to determine if additional fees are necessary. Additional Audits: Additional Audits - Food and Beverage (6-Annually) $ 3,900 $ -Is 3,900 Additional Audits - Transient Occupancy Tax (4- Annually) $ 3,750 $ - $ 3,750 Sum for Year One $ 48,900 $ 9,600 $ 58,500 Sum for Year Two $ 50,375 $ 9,800 $ 60,175 Sum for Year Three $ 51,875 $ 10,000 $ 61,875 Sum for Year Four $ 53,425 $ 10,300 $ 63,725 Sum for Year Five $ 55,000 I $ 10,600 $ 65,600 Estimated number of hours to be spent annually on the audit: Partner 42.5 7.5 5© Manager 85 15 100 Accountants (seniors and staff) 170 30 200 I Support (not charged) 0 0 0 Others - (IT auditor) 12.75 2.25 15 Sum of Hours 310.25 54.75 365 Additional Services by the hour: Hourly Rate: I Partner $400 Manager $200-$300 Accountant 5150-$175 Support 0 Name of company: Moss Adams LLP Signature: a I Printed Name: Amanda McCleary-Moore, Partner Date: 51~:[ I I A RFP - Municipal Audit Services, Page 20 of 31 I Cost Proposal FEES FOR ADDITIONAL SERVICES Any additional services will be billed at the following rates: Level Hourly Rate Staff Partner $400 Senior Manager $300 Manager $205 Senior $175 Staff $150 ADDITIONAL FEE INFORMATION Subject The Details Client Acceptance The scope of work and fee quotes are subject to our client acceptance Procedures process, which 1) verifies that all parties understand the specific i services we're being asked to perform, 2) ensures contract terms are acceptable to both parties and in agreement with professional standards, and 3) confirms we've staffed the engagement with individuals qualified with the necessary experience to fulfill our commitments to our prospective client. We'll also need to complete our inquiries of your former auditor as required by our professional audit standards. First-Year Costs We acknowledge that changing auditors can be disruptive to your staffs routines, since a new audit team needs to spend time learning your systems. Because of this cost, fees associated with the first year of a new audit firm tend to be higher than normal. We've waived these first-year fees as our investment into your organization. Cost Overruns During the course of the audit, we'll measure our progress against our planned budget. If situations arise that are significantly different than our expectations, we'll bring them to your attention immediately and discuss various options before we proceed. We'll meet weekly during the course of fieldwork with the appropriate parties to ensure there are open lines of communication between our organizations. Progress Billing Progress billings are based on hours and expenses completed at the time of billing. Bills are due upon receipt. We reserve the right to charge interest on accounts over 30 days past due. Routine Phone Calls and Our policy is to not charge for short telephone calls seeking Emails miscellaneous advice unless those consultations require significant additional work or research. If a matter requires further follow-up, we'll discuss a fee estimate with you before incurring significant time. MossAdams I Proposalfor CIty ofAshland i II 'I Miner Research and If we're req~j to i rovi~ ininoi iGsea,cr, ar c; nsuliaricn service, Consultation we'll estimate the number of hours necessary to provide the requested ' services. We'll then provide a fee quote for your approval before commencing any work. Our fees for these services are generally at our standard billing rates. Single Audit Our fee estimate for the single audit is based on the assumption that t you'll have one major program for fiscal year ending June 30, 2019, and that there may be more major programs in each subsequent fiscal year. If additional major programs are required to be audited, we estimate the additional cost at $2,500 to $3,500 per major program. Future New Audit Review Our fee estimate discussed herein is based on accounting and and Accounting Standards professional standards that exist and are applicable as of the date of + this proposal. To the extent that future rulemaking activities require modification to our audit approach, procedures, scope of work, etc., we'll advise you of such changes and the impact on our fee proposal. If we're unable to agree on the additional fees, if any, that may be ' required to implement any new accounting, auditing, and review standards that are required to be adopted and applied as part of our engagement, we reserve the right to withdraw from the engagement, regardless of the stage of completion. ! f ! Assurance, tax, and consulting offered through Moss Adams LLP.Inuestment advisory services offered through Moss Adams Wealth Aduisors LLC. Investment banking offered through Moss Adams Capital LLC. Moss Adams I ProposalforCity ofAshland z ! Council Business Meeting July 3, 2018 Title: Sole Source Procurement - Dry Creek Landfill, Inc. From: David Gies Wastewater Treatment Plant Supervisor David.gies@ashland.or.us Summary: Approval is being requested for a Sole Source Procurement exceeding $100,000.00. This Sole Source Procurement will allow the Wastewater Treatment Plant to directly award a contract to Dry Creek Landfill for the disposal of biosolids. The term for this "Sole Source Procurement" began on July 1, 2018 and will expire on June 30, 2019. Actions, Options, or Potential Motions: The Council, acting as the Local Contract Review Board, moves to approve the public contract award to Dry Creek Landfill for the disposal of biosolids Staff Recommendation: Staff recommends the public contract be awarded to Dry Creek Landfill. Resource Requirements: Funds are budgeted each fiscal year for the disposal of biosolids. Dry Creek Landfill has provided a rate of $54.60 per ton with a minimum charge of $300.00 per load. The estimate for FY 2019 is 4,000 tons at a cost of $54.60 per ton for a total cost of $218,400.00 Policies, Plans and Goals Supported: N/A Background and Additional Information: The WWTP operates under a DEQ permit and the biosolids that are generated at the plant are required to be disposed of in a manner that meets all federal and state regulations on a daily basis. The closest local and approved disposal site for biosolids in the Rogue Valley is Dry Creek Landfill. The staff at the WWTP is continually focused on efficiency and consistency in the biosolids drying process to ensure a drier product thereby reducing the weight and effectively reducing the overall cost of disposing biosolids. Attachments: Dry Creek Landfill, Inc. Rate Sheet Effective July 1, 2018 Form #6 Sole Source Determination and Written Findings Page t of 1 CITY OF -ASH LAN D i I " I _ c i f i roguedisposal.com Dear Dry Creek Landfill Customer, Due to an increase in costs, Dry Creek Landfill Inc. will have a slight rate increase effective July 1, 2018. New Rates - Effective July 1, 2018 Municipal Solid Waste MINIMUM CHARGE $300.00 each load General Disposal $ 54.60 per ton Contaminated Soil $ 54.60 per ton Asbestos $ 68.25 per cubic yard Prepaid Asbestos Bags $ 15.90 per set Animals Small Animals (sheep, goat) $21.00 Disposal $21.00 first animal / $10.50 each additional Large Animals (horse, cow) $42.00 Disposal $42.00 first animal / $21.00 each additional Financial Returned Check Charge $25.00 each check We appreciate your business and thank you for being our valued customer. Please feel free to call us at 541.779.4161 with any questions. Thank you, Customer Service Dry Creek Landfill, Inc. ONE WEST MAIN • SUITE 401 MEDFORD, OREGON 97501 541.779.4161 CITY OF FORM #6 ASHLAND SOLE-SOURCE DETERMINATION AND WRITTEN FINDINGS GOODS AND SERVICES Greater than $100,000 To: City Council, Local Contract Review Board From: David Gies, wastewater Treatment Plant Supervisor Date: June 19, 2018 Re: Sole Source Determination and Written Findings for Goods and Services In accordance with AMC 2.50.090(F), the Department Head shall determine in writing that there is only one provider of a product or service of the quality and type required available. Estimated total value of contract: $218,400.00 Project name: Dry Creek Landfill Description of goods and services: Location for the disposal of biosolids. Background: The City of Ashland operates its wastewater treatment plant under a permit issued by the Oregon department of Environmental Quality. It is required to dispose of the biosolids generated at the WWTP on a daily basis. These solids need to be handled properly and buried in a timely manner. The WWTP generates on average one 15-yard dump truck of solids daily. Dry Creek landfill is the closest approved site that we can dispose of these solids for burial. The Wastewater Division is focused on efficient cost savings and will look to improve the consistency in the biosolids drying process to ensure a drier product thereby reducing the weight and effectively reducing the overall cost of disposing biosolids. Dry Creek Landfill has provided the city with a quote of $54.60 per ton with a $300.00 per load minimum fee. The estimate for FY 2019 is 4,000 tons for a total cost of $ 218,400.00 This Sole Source Procurement is being requested for a term of one year beginning July 1, 2018 and expiring on June 30, 2019. Form #6 - Sole Source-Goods and SeMces -Greaterthan $100,000, Page 1 of 3, 612212018 Findings: [The findin-s below must hic-ludefiactual information supportino, the determination. 1 Market Research Overall finding: Dry Creek Landfill is the closest approved disposal site. [In accordance with ORS 279B.075 these are the examples of findings that should be addressed. Select at least one of the findings and prepare the determination as it specifieally relates to the good or service heingprocured. More than one finding can be addressed The findinos are as . ollows. Pursuant to ORS 27913.075 (2)(a): Provide findings supporting your determination that the efficient utilization of existing goods requires the acquisition of compatible goods or services from only one source. N/A Pursuant to ORS 279B.075 (2)(b): Provide findings supporting your determination that the goods or services required for the exchange of software or data with other public or private agencies are available from only one source. N/A Pursuant to ORS 279B.075 (2)(c): Provide findings supporting your determination that the goods or services are for use in a pilot or an experimental project. N/A Pursuant to ORS 279B.075 (2)(d): Any other findings that support the conclusion that the goods or services are available from only one source. N/A Form - Sole Source - Goods and Services - Greater than $100,000, Page 2 of 3, 6/22/2018 PUBLIC NOTICE: Pursuant to OAR 137-047-0275 (2), a Contracting Agency shall give public notice of the Contract Review Authority's determination that the Goods and Services or class of Goods and Services are available from only one source in a manner similar to the public notice of Competitive Sealed Bids under ORS 279B.055(4) and OAR 137-047-0300. The public notice shall describe the Goods or Services to be acquired by a Sole Source Procurement. The Contracting Agency shall give such public notice at least seven days before Award of the Contract. After the Sole Source Procurement has been approved by the City Council, the following public notice will be posted on the City's website to allow for the seven (7) day protest period. Date Public Notice first appeared on www.ashland.or.us - [if approved. J1rh- 5, 20 PUBLIC NOTICE Approval of a Sole Source Procurement First date of publication: fifapproved. Ju1ti, 5, 20181 A request for approval of a Sole Source procurement was presented to and approved by the City Council, acting as the Local Contract Review Board, on [if approved, J1111, 3, 20]8]. It has been determined based on written findings that the following Goods and Services are available from only one source. Biosolids from the Wastewater Treatment Plant are required to be disposed of in a manner that meets all federal and state regulations. The closest local approved disposal site for biosolids in the Rogue Valley is Dry Creek Landfill. Biosolids are hauled daily to the landfill site for burial. Dry Creek Landfill will accept the material at the current fee of $54.60 per ton effective July 1, 2018. The Wastewater Division is focused on efficient cost savings and will look to improve the consistency in the biosolids drying process to ensure a drier product thereby reducing the weight and effectively reducing the overall cost of disposing biosolids. The contract terms, conditions and specifications may be reviewed upon request by contacting David Gies at 541-552-2335 or david.gies(a,ashland.or.us An affected person may protest the determination that the personal services are available from only one source in accordance with OAR 137-047-0710. A written protest shall be delivered to the following address: City of Ashland, David Gies, Waste Water Treatment Plant, 90 N. Mountain Avenue, Ashland, OR 97520. The seven (7) day protest period will expire at 5:00pm on [if published, Jul1,12, 2018]. This public notice is being published on the City's Internet World Wide Web site at least seven days prior to the award of a public contract resulting from this request for approval of a Sole Source procurement. Form #6 - Sole Source - Goods and Services - Greater than $100,000, Page 3 of 3, 6/22/2018 I _ Council Business Meeting July 3, 0: Title: 2018 Council Liaison to Boards, Commissions and Committees From: Melissa Huhtala City Recorder Melissa.huhtala@ashland.or.us Summary: This is the selection and approval of Council Liaison assignments through April 30, 2019 to City and regional Boards, Commissions and Committees. Actions, Options, or Potential Motions: Council will select their liaison positions and then move to approve the list of Council Liaisons to Boards, Commissions and Committees. Staff Recommendation: N/A Resource Requirements: N/A Policies, Plans and Goals Supported: 2.2 Engage Boards and Commissions in supporting the Strategic Plan. Background and Additional Information: Council Liaisons are done annually. Assignments approved by Council will be for the time period of July 3, 2018 through April 30, 2019. Attachments: Draft list of assignments. Page t of 1 CITY OF -ASHLAND i Council Liaisons to Boards, Commissions, and Committees July 3, 2018 - Assignments City - appointed by Mayor, Meeting Day and Time 2018 Selection confirmed by Council Airport 1st Tuesday, 9:30 am Dennis Band Board As needed Rich Conservation 4th Wednesday, 6:00 pm Stefani Forest Lands 2nd Tuesday, 5:30 pm Jackie Historic Wednesday prior to Planning Commission, 6:00 Rich pm (typically is 1st Wed.) Housing and Human Services 4th Thursday, 4:30 pm Jackie Municipal Audit Commission As needed Dennis Planning 2nd Tuesday, 7:00 pm (study session 4th Tuesday, Dennis 7:00 pm) Public Art 3d Friday, 8:00 am Steve Transportation 4th Thursday, 6:00 pm Mike Tree Thursday prior to Planning Comm., 6:00 pm Steve, (typically 1 st Thursday) Wildfire Mitigation 3rd Wednesday, 11:00 am Steve Senior Program Advisory Stefani Committee City Ad Hoc, appointed by Mayor and Council Meeting Day and Time 2017 Selection AWAC 4th Tuesday, 4:00 pm Mike CEAP Implementation 3d Thursday, 5:00 p.mT fani* Regional, appointed by Mayor and Council Meeting Day and Time 2018 Selection Chamber of Commerce 2nd Thursday, 7:30 am Stefani RVACT 2nd Tuesday, 9:00 am Mayor RVCOG 4th Wednesday, 12:00 Mike pm RVMPO 4th Tuesday, 2:00 pm Rich RVTD 4th Wednesday, 5:45 pm Jackie PSCC Mayor Continuum of Care Mayor Mt. Ashland Board Mike AFR Dennis Culture of Peace Commission Board 3rd Thurs. 6-8:30PM Jackie * Stefan is the appointed Chair of this committee Summary Dennis: Airport, Planning, AFR, Audit Rich: Band Board, RVMPO, Historic Stefani: Conservation, Senior Program Advisory, CEAP Implementation, Ch. of Commerce Steve: Public Art, Tree, Wildfire Mitigation Jackie: Forest Lands, Housing & Human Services, RVTD, Culture of Peace Commission Board Mike: AWAC, RVCOG, Mt. Ashland Board, Transportation Council Business Meeting July 3, 0: Title: Water Service Outside of City Limits and within the Urban Grown Boundary From: Scott Fleury Deputy Public Works Director Scott.fleuryc-bashland.or.us Summary Before the Council is approval of a water service connection for the single family residential property located at 597 Benson Way. Requirements for a water service connection outside of City Limits, but within the Urban Growth Boundary (UGB) are detailed in Resolution 97-27. Actions, Options, or Potential Motions: The Council may: • Move to approve the water service connection for 597 Benson Way. • Move to deny the water service connection for 597 Benson Way. Staff Recommendation: Staff recommends approval of the water service connection for 597 Benson Way as the property is in the UGB and the criteria requirements of resolution 97-27 are met. Resource Requirements: The only resource is staff time expended to bring forth the request to the City Council. The property owner will be required to pay the recording fees associated with the consent to annexation; consent not to subdivide; pay the appropriate system development charge (SDC) and the monthly water bill charges. The SDC fee for residential is calculated on a square foot basis for livable space ($2.6069/square foot). The residential unit is 1824 square feet in total with a 216 square foot attic resulting in 1608 square feet of livable space. The total SDC is calculated as 1608 square feet x $2.6069/square foot = $4,191.90. In addition in accordance with Resolution 2018-12, water rates outside the City limits are charged at 1.5 times the charges for rates within the city limits. Policies, Plans and Goals Supported: Department Goals: • Maintain infrastructure to meet regulatory requirements and minimize life-cycle costs • Evaluate all city infrastructure regarding planning management and financial resources Backl1round and Additional Information: Public Works staff was contacted by the property owner at 597 Benson Way regarding the potential to obtain a City water service due to a failing and significantly under producing well. Page t of 2 CITY Of -ASHLAND The property is located outside of City limits but within the UGB and is a .68 acre parcel zoned RR5 by Jackson County. The property is occupied by an 1824 square foot single story house and mature landscaping. The current well is drilled to 130 feet deep and over the past several years, the volume of water available from the well has steadily decreased and the pump has now been lowered to 127 feet to access any additional water. Drilling the existing well deeper in an attempt to potentially access more water is not feasible due to site constraints prohibiting equipment access to the wellhead. The property owner had a 2000 gallon holding tank installed in 2012 and until the last few years the well in conjunction with the holding tank have been able to meet daily domestic/irrigation needs for the property. Now the property owner is having water trucked in on a regular basis to fill the holding tank. The property owner had a recent well test and obtained estimates to drill a new well on the property. Drilling a new well on the property is costly and does not guarantee an adequate amount of water will be found to support daily needs. The most recent well test produced .08 gallons per minute or 115 gallons per day and that volume has been intermittent at best. The current projected per capita use developed by RH2 for the current master plan update is 132 gallons per day. Currently two people live at the residence. The property owner is aware of the conditions for water service as set forth in Resolution 97-27, has completed all requirements and upon Council approval will record the required documents and pay the appropriate fees. The conditions which must be satisfied include: A. The applicant is aware of the conditions for water service pays the water connection fee for connections outside the city and the systems development charges established by the City. B. In the event dwellings or buildings connected to the water system are subsequently replaced for any reason, then the replacement building or dwelling may continue to be connected to the water system of the City as long as the use of the water system will not be increased as determined by the Director of Public Works. C. The applicant furnish to the City a consent to the annexation of the premises and a deed restriction preventing the partitioning or subdivision of the land prior to annexation to the City, signed by the owners of record and notarized so that it may be recorded by the City and binding on future owners of the premises. The cost of recording the deed restriction shall be paid by the property owner. D. The property owner shall execute a contract with the City of Ashland which provides for: payment of all charges connected with the provision of water service to the property; compliance with all ordinances of the city related to water service and use; termination of service for failure to comply with such ordinances and that failure to pay for charges when due shall automatically become a lien upon the property. A memorandum of the contract shall be recorded in the county deed records with the cost of recording to be paid by the property owner. Attachments: Property Owner Letter Consent to annexation Consent not to subdivide Well drilling estimates Page 2 of 2 CITY OF -ASHLAND June 7, 2018 Scott A. Fleury, Deputy Public Works Director City of Ashland, Public Works 20 East Main Street, Ashland OR 97520 Hum ii, Based upon all of the information you have provided me, and the research I have clone regarding our inadequate well at 597 Benson Wy, we have decided that connecting to the City of Ashland water system is by far our best option. Our existing well's production has been steadily decreasing for the last 15 years. Deepening our Current well is not an option because our house and mature landscaping trees prohibit access to the drilling equipment. Estimates for the costs of drilling a new well, installing the pumping and plumbing to the house, and the inability of any well contractor to guarantee that this well will produce a reliable , safe and long-term water supply are major factors in our decision. I've attached two estiamtes for the drilling of a new well from 200 to 300'. I've also included the estimate for installation of the plumbing and purnping equipment from the existing well to any new site. Green Valley Pump of Talent, Or. should have sent you the results of their recent test of our well's low production. Also attached are the signed and notarized documents required; Consent to Annexation and Restrictive Covenant regarding subdivision of the property. Thank you for your assistance as we have worked through this process. Please let me know if there is anything I have missed. Sincerely, ~ Cody stnniante .013 • B L-- CITY OF ASHLAND IRREVOCABLE CONSENT TO ANNEXATION The undersigned, referred to in this document as "Owner" whether singular or plural, owns or is the purchaser under a recorded land sale contract of real property in Jackson County, Oregon, described below and referred to in this document as "the property": See attached Exhibit "A" In consideration of the City of Ashland permitting the connection of Owner's building water system from the residence on the property to the water system of the City of Ashland, Owner declares and agrees that the property shall be held, sold, and conveyed subject to the following covenants, conditions, and restrictions which shall constitute covenants running with the land and shall be binding on all parties, their heirs, successors and assigns, having any right, title, or interest in the property or any part thereof. Whenever a proposal to annex the property is initiated by the City of Ashland or otherwise, Owner shall consent and does consent to the annexation of the property to the City of Ashland. Owner agrees this consent to annexation is irrevocable. Dated this day of 2018. l~ Signature: ody Bustamante State of Oregon ) ss: County of Jackson ) Personally appeared the above named Cody Bustamante and acknowledged the foregoing instrument to be his voluntary act and deed. - A~,/6, UFFICIAi AMP 1*W I.AREE KRISTINE BENDERNOTARY PUBIC-OREGON Notary Public for Oregon COMMISSION NO. 956007 My Commission expires: COMMISSION EXPIRES OCTOBER 30. 2020 G:\pub-wrks\eng\dept-admin\Waters\Sewer & Water Connections\597 Benson Way\597 Benson Way Irrevocable Consent to Annexation 5-2018 (1).doc Exhibit A aegirtning at a paint I)n the 1 rthaAaterlf right-Of-WAY lia l of the Southern MAN Company in Section 14, Township 31 South, kamge I Salt of the wil.lamette Heridian its ,3ackeon County, Oragoa, which point Q*vg: wrth 10001 West 296.56 foot from air. Oun pipe at the intersection of %aid lino with roe Nortbwestcrly right-of-way line of thn Crommon Mad; thence North 50"151 East 30%.41 faint, thence North -19,06, WeBt; 90,35 feet j thence oUth, 50015' Went 20.113 feel: tv the If ight , A- WMY l in,,` of the snutharn Pacific Catrpa`y Chance along vai right-of-way line, South 31-4OCa (3aot 93,50 Vat to the point of beginning, I ii i i G:\pub-wrks\eng\dept-adinin\Waters\Sewer & Water Connections\597 Benson Way\597 Benson Way Irrevocable Consent to A mexation 5-2018 (1).doc CITY OF ASHLAND RESTRICTIVE COVENANT The undersigned for themselves, their heirs, assigns, executors, and administrators covenant with the City of Ashland, Oregon, with respect to the land as described and set forth in Exhibit "A", attached hereto and by this reference made a part hereof, that they will not partition, subdivide, nor apply for a partition or subdivision, until such time as the property described in Exhibit "A" is annexed to the City of Ashland. Upon annexation of the land described in Exhibit "A" to the City of Ashland, this Restrictive Covenant shall automatically terminate. The undersigned warrant and represent to the City of Ashland that they are the owners or contract purchasers of land situated in County of Jackson, State of Oregon and as described in Exhibit "A", as set forth herein above. The covenant contained herein shall run with the land as described in the attached Exhibit "A" and shall also inure to the benefit of the City of Ashland, Oregon. The consideration for this covenant is the furnishing of sewer services to the land set forth in Exhibit "A" while it is outside the City of Ashland, by the City of Ashland Oregon. Dated this 411 day of 2018. Signature: Cody Bustama to State of Oregon ) ss. County of Jackson ) i Personally appeared the above named Cody Bustamante and acknowledged the foregoing { instrument to be his voluntary act and deed. i OFFICIAL STAMP LAREE KRISTINE BENDER Notai Public for Oregon NOTARY PUBLIC-OREGON -7 q S_~ COMMISSION NO. 956007 My Commission expires: AIY COMMISSION EXPIRtS OC OCTOBER 30.2020 s; 7 rr x I R G:\pub-wrks\eng\dept-admin\Waters\Sewer & Water Connections\597 Benson Way\597 Benson Way Irrevocable Consent to Subdivide 5-2018.doc Exhibit A Etaginning at a paint obi tM korthe?Saterly Light-of-gray lute, of Cho S,juthera Pacific; coarp Sy in Section 14, Trwnship 39 South, RmVe a taut of tthe Willanette: R.eridiah in a"keon Cooney, Gregon, which poinr. Leeeare North 314000 Sweat 236,56 feet from an iron pipe at the intersection of said 11;10 with the Northwesterly right-of-way line of the crowmon Road them=e North 50415' geat 369,.41 feet: tbance ltorth 39106, Neat 98.35 tees; thence S"th 50°15' weat 295.38 feet to the rSght-of-wary line of tth,e Scru.thenx Pacific G'_bnVa51.y} theme along tfiai4 right-of-way line, South 314aG* Bast 39.50 foot, to the point of 6eginningf, G:1pub-wrks\eng\dept-admin\Watem\Sewer & Water Connectionsl597 Benson Way\597 Benson Way Irrevocable Consent to Subdivide 5-2018.doc Clouser Drilling Inc. Estimate H PO Box 5110 LJ Ll Grants Pass, OR 97527 Date Estimate # Rep 541-476-7795 5125/2018 3992 KDc Name / Address Work Site Cody Bustamante Cody Bustamante PO Box 3431 597 Benson Way Ashland, OR 97540 Ashland, OR 97540 Customer Phone Customer E-mail Estimate is for well drilling only. Does not include pump system, 541-625-9163 cab@topendoor.com l hookup or water testing. Description Qty Rate Total Drilling Open Hole 6" per ft 300 18.00 5,400.00 6" Steel Casing Installed 40 25.00 1,000.00 4" Sch 40 Certa Lok Premium PVC Liner installed 300 8.00 2,400.00 10" Sanitary Surface Seal NvBentonite 18' -20' Seal 1 400.00 400.00 Well Seal 6"xl" 1 45.00 45.00 Large Drive Shoe l 175.00 175.00 Well Development 1 300.00 300.00 Mobilize equipment and supplies in and out. Set up charge. 1 500.00 500.00 SUBTOTAL 10,220.00 State of Oregon Start Card Fee 1 225.00 225.00 Standby Time Rate $300 per hour (if pre-arrangements are not made and customer is not availably for decision-making) Terms: Payment in full is due upon completion of the job. Total $10,445.00 Customer Signature Date Company Rep. I&Vin (D- Gill PLEASE NOTE:(Oregon Only) For new wells, an additional $300 Mapping Fee will be billed to you directly by the State of Oregon after the filing of the well log per ORS 537-545. Oregon WWC #1835 Phone # Fax # E-mail Oregon CCB #186335 California C-57 #990724 541-476-7795 541-476-0095 officeaclouserdrilling.com Estimate valid for 60 days i1 I iMessage with 0 (541) 860-6,857 ~3/31118, 2:30 PM Hey Cody her are my prices,for dnlling,wells Set up fee @76000 , Casing.@20 OO per ft casing generally is only 20 40 ft i 4. ve shoe QO.OQ Dr 1 Soft drilltng@ 20.00 p/ft . Hard rock dnlling@ 25 O.O.pJft A Liner pipe @ 700:p/ft Bentonite well seal@500 00 i Start card fee @225 00 I do not anticipate runnin mto hard Rock- at yourhouse but I have to mclude that price lust.ln case sorry%it s hot an email still hevI issues with tfia computer Please:feel free:to call . at;anytime with -h- uestions regarding the bid_or any other concerns you' may. have abouta well If.the well ts;around 200,:feet you're looking.at around.$7000 $2500, 0 V(ously if i deeper;it would: be more i.don t anticlpate going Aast 300:feet possibly;:even 200 feet m that;area call if:you have a'ny questions hope you.have a great day Please.iet me know that you received this bid, thank you i Cody scott,`Rogue Valley Dnllm9:.:r 3 Q OW Cool, have agreat day. and a-wphderfu1,Ea6t6,rR 4117118 4:26 PM Delivered g( I Green Valley Pump, Inc Ra 609 South Pacific Highway Talent, OR 97540 541-535-4275 info@greenvalleypump.com VALLEY GREEN CCS 8 97283 www.greenvalleypump.com ESTIMATE ADDRESS ESTIMATE # 1317 Cody Bustamonte DATE 03/2812018 P. O. Box 3431 Ashland, OR 97520 1 JOB SITE 597 Benson Way Ash. DETAIL QTY # 12-4 flat jacket wire 320 1.25' sch 80 drop pipe 320 1.25" drop pipe coupling stainless steel 17 1.25" pitless adaptor with cap 1 2" MilSpec tape 1 Blue Monster 1/2" teflon tape 1 2 men with crane truck to set pump 5.50 Labor to remove the old well pump from the well for its use in the new well. 1 This quote is to pull the old well pump and to set the old well pump TOTAL with new pipe and wire into the new welt. $2,182.73 Accepted By Accepted Date We accept Visa, MasterCard or Discover cards. Council Business Meeting July 3, 0: Title: Appointment of Allison Renwick - Pubic Arts Commission From: Melissa Huhtala City Recorder Melissa.huhtala@ashland.or.us Summary: Mayor appointment of Allison Renwick to the Public Arts Commission with a term to expire on April 30, 2021. Actions, Options, or Potential Motions: I move to appoint Allison Renwick to the Public Arts Commission with a term to expire on April 30, 2021. Staff Recommendation: N/A Resource Requirements: N/A Policies, Plans and Goals Supported: Ashland Municipal Code 2.04.090 (C) states the appointments by the Mayor are with the consent of the City Council. Background and Additional Information: N/A Attachments: Application. Page I of I CITY OF -ASHLAND CITY OF -ASHLAND APPLICATION FOR APPOINTMENT TO CITY COMMISSION/COMMITTEE Please type or print answers to the following questions and submit to the City Recorder at City Hall, 20 E Main Street, or email melissa.huhtala(dashland.or.us. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name Allison Renwick Requesting to serve on: Public Arts (Col-nmission/Committee) Address 236 5th St., Ashland Occupation retired Phone: Home 541-482-6788 Work Email allison@mind.net Fax 1. Education Background What schools have you attended? University of Oregon What degrees do you hold? BA and MA in Art History What additional training or education have you had that would apply to this position? NEH fellowship, Columbia U, Contemporary American Architecture; 1983 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? 30 years college instructor in Art History and Drawing, also, teaching painting for a few years Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why.) at this point, probably not, though I wouldn't reject the opportunity FEAR 3. Interests After a two year break from serving 9 years on the Why are you applying for this position? Historic Commission, it's time to return to public service. And, Sandy Friend convinced me that the PAC is new and revitalized with numerous professionals in the arts fields. 4. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? Yes. The current schedule works for me. 5. Additional Information 20 years How long have you lived in this community? Please use the space below to summarize any additional qualifications you have for this position Knowledge, desire to serve, ability to compromise and find the best solution for the circumstances. 6/7/18 Date Signature I /r, Council Business Meeting July 3, 2018 Title: Confirmation of Mayoral Appointment of Kelly Madding as City Administrator From: John Stromberg Mayor %ohn(a council.ashland.or.us Tina Gray Human Resource Director tina.gray( ashland.or.us Summary: The City contracted with SpringstedlWaters to conduct a national search for City Administrator. Thirty-three applicants completed the entire application process to be considered for the position. SpringstedlWaters provided a shortlist of semi-finalists to the City for consideration. The City Council narrowed the list of semi-finalists to 5 finalists who participated in the selection process June 13-15, 2018. At the conclusion of the selection process, Kelly Madding was selected based on her 20+ years of progressively responsible leadership in Oregon municipal government. Kelly previously served as City Administrator of Talent as well as multiple roles at Jackson County, including Development Services Director. Most recently, Kelly has been serving as the Deputy City Manager for the City of Medford. In addition to her experience, Kelly also holds a Master of Arts degree in Public Administration from the University of Oregon. Once her appointment is confirmed, Kelly is excited to begin work as City Administrator on July 30, 2018. Actions, Options, or Potential Motions: • Move to confirm the appointment of Kelly Madding as City Administrator. • Defer confirmation of the appointment of Kelly Madding awaiting more information. Staff Recommendation: Staff recommends the Council confirm the Mayor's appointment of Kelly Madding as City Administrator. Resource Requirements: Staff budgeted for the recruitment and selection of a successor City Administrator in the biennial budget process, and the position of City Administrator is fully-funded. Policies, Plans and Goals Supported: N/A. Page 1 of 2 C I T Y O F -ASH LAN D i Background and Additional Information: During the October 17, 2017, Regular Business meeting, Council directed staff to initiate a recruitment process for City Administrator in January 2018. Council also asked staff to negotiate with John Karns and return with an employment contract to retain him in a non-interim capacity until completion of the search for a new City Administrator. John ultimately decided to retire March 30, 2018. Adam Hanks was appointed as Interim City Administrator until the Executive Search process concluded. The City has been running very smoothly under Adam's leadership; he and all City Department heads will support the transition of leadership and look forward to welcoming Kelly Madding as the new City Administrator. Attachments: Employment Agreement for Kelly Madding as City Administrator. Page 2 of 2 CITY Of -ASHLAND CITY OF ASHLAND Employment Agreement City Administrator THIS AGREEMENT, made and entered into this day of July, by and between the City of Ashland ("City") and Kelly A. Madding ("Employee"). RECITALS A. City desires to employ the services of Employee as the City Administrator of the City of Ashland; and, B. It is the desire of the City to establish certain conditions of employment for Employee; and, C. It is the desire of the City to (1) secure and retain the services of Employee and to provide inducement for Employee to remain in such employment, (2) to make possible full work productivity by assuming Employee's morale and peace of mind with respect to future security, (3) to act as a deterrent against malfeasance or dishonesty for personal gain on the part of Employee; and, (4) to provide a just means for terminating Employee's services at such time as Employee may be unable fully to discharge Employee's duties due to disability or when City may otherwise desire to terminate Employee's services; and, D. Employee desires to accept employment as City Administrator of the City of Ashland, and to begin her employment July 30, 2018. City and Employee agree as follows: Section 1. Duties. The City hereby agrees to employ Kelly Madding as the City Administrator of the City of Ashland to perform the functions and duties specified in the City Charter, City Ordinances, and the job description for the position, and to perform such other legally and ethically permissible and proper duties and functions as the Mayor and/or City Council shall from time to time assign. The City Administrator shall devote full time to the performance of her duties. Section 2. Term. A. Nothing in this agreement shall prevent, limit, or otherwise interfere with the right of the Mayor, with the consent of the City Council in accordance with the City Charter, from terminating the services of the City Administrator at any time, subject only to the provisions set forth in the section titled "Severance pay" of this agreement. Except as specifically provided in this Agreement, Employee shall serve at the pleasure of the City, without any requirement to demonstrate cause for dismissal. B. Nothing in this agreement shall prevent, limit, or otherwise interfere with the right of the Employee to resign at any time from her position with the City, subject only to the provisions of this agreement. C. Employee agrees to remain in the employ of the City until July 30, 2021, and neither to accept other employment nor to become employed by any other employer until this termination date, unless the termination date is affected as otherwise provided in this agreement. This provision shall not restrict Employee from using vacation or personal leave for teaching, consulting or other activities provided these activities do not conflict with the regular duties of the Employee and are approved in writing by the Mayor, with the consent of the City Council. D. In the event written notice is not given by either party to terminate this agreement at least ninety (90) days prior to the termination date, this agreement shall be extended for successive three-year periods on the same terms and conditions provided herein. E. In the event Employee wishes to voluntarily resign the position during the term of this agreement, Employee shall be required to give the City thirty (30) days written notice of such intention, unless such notice is waived by the Mayor, with consent of the City Council. Employee will cooperate in every way with the smooth and normal transfer to the newly appointed individual. Section 3. Salary Beginning July 30, 2018, City agrees to pay Employee a monthly salary at step 3 of the salary schedule ($153,446/year). Employee will advance to the Top Step ($161,118) after one year of successful performance as determined by the Mayor and City Council. The City agrees to annually increase the monthly salary and/or benefits in the same percentage as may be accorded other department heads. In addition, the Mayor and City Council agree to review the base salary and other benefits of the Employee at the Employee's annual performance review, and to make such adjustments, if any, which it deems appropriate. Section 4. Performance Evaluation. The Mayor and City Council shall review and evaluate the performance of the employee at least once annually. Said review and evaluation shall be in accordance with specific criteria developed jointly by City and Employee. Further, Employee shall receive a written copy of the findings of the evaluation process and be provided an adequate opportunity for the employee to discuss the details of the evaluation. Section 5. Hours of Work. It is recognized that Employee must devote a great deal of time outside the normal office hours to the business of the City, and to that end Employee will be allowed to take compensatory time off as Employee shall deem appropriate during normal office hours, so long as the business of the City is not adversely affected. Work in excess of forty (40) hours per week is deemed part of the professional responsibility for which the Employee shall not be paid overtime. In recognition of the extra hours required of the City Administrator, Employee shall receive eighty (80) hours of administrative leave each year to be used before June 30th or deemed forfeited. Employee will receive additional administrative leave if granted by the City Council in the Management Resolution adopted each year. Section 6. Automobile. Employee's duties require that Employee shall have the use of a motor vehicle at all times during employment with the City. The City shall provide an automobile allowance of $400.00/month for the use of said automobile for travel. Employee shall be responsible for paying for insurance, operation, maintenance and repairs of the vehicle. Section 7. Health, Welfare and Retirement. Except as modified by this agreement, Employee shall be entitled to receive the same retirement, vacation, sick leave benefits, holidays, and other fringe benefits and working conditions as they now exist or may be amended in the future, as apply to any other department head, as spelled out in the City's Management Resolution in addition to any benefits enumerated specifically for the benefit of Employee as provided in this agreement. Additionally, the City will provide forty (40) hours of vacation at the Employee's first day of work, and forty (40) hours of sick leave. Section 8. Dues and Subscriptions. City agrees to budget and to pay for the professional dues and subscriptions of Employee necessary for the continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for Employee's continued professional, growth and advancement, and for the good of the City. Section 9. Professional Development The City hereby agrees to annually budget and allocate sufficient funds to pay necessary travel and living expenses of the City Administrator while he represents the City at conferences, trainings, official business meetings or professional organizations that serve the City's interest and/or are reasonably necessary to provide for the professional advancement of the City Administrator. Membership on any national or state commission or committee shall be subject to the approval of the Mayor and City Council. Section 10. Professional Liability The City agrees that it shall defend, hold harmless, and indemnify the City Administrator from all demands, claims, suits, actions, errors, or other omissions in legal proceedings brought against the City Administrator in her individual capacity or in her official capacity, provided the incident arose while the City Administrator was acting within the scope of her employment. If in the good faith opinion of the City Administrator conflict exists as regards to the defense of any such claim between the legal position of the city and the City Administrator, he may engage counsel in which event, the City shall indemnify the City Administrator for the cost of legal counsel. Section 11. Severance Pay A. In the event Employee is dismissed during the term of this Agreement, and Employee is not being dismissed for any reason set forth in paragraphs B or C of this section, the City agrees to offer Employee a severance agreement. Except as provided in 11 D below, total severance pay will be equal to the employee's annual salary at the time of dismissal. Severance payments will be made in equal installments every other week during the 12-month severance period. Severance payments will terminate one year after the date of dismissal. In addition, the severance agreement offered to the employee will require the City to continue to pay the employer portion of the premium for medical and dental insurance coverage through the end of the month the Employee's severance pay is intended to cover or until the last day of the month in which Employee obtains employment with alternative insurance whichever occurs earlier. As a condition of the severance offer, the Employee will be required to release the City, its officers, representatives, insurers, and employees from claims arising from employment with the City and separation of employment. B. Employee will not be eligible to receive the severance offer described in Paragraph A of this section if this Agreement is not renewed by the City, as provided in Section 2, above. Employee also will not be eligible to receive the severance agreement offer if Employee breaches any provision of this agreement, or if Employee engages in any act of misconduct in the performance of duties on behalf of the City. The term "misconduct" includes misappropriation, dishonesty, breach of trust, insubordination, neglect of duty, failure to perform duties in a manner that is consistent with applicable law, failure to correct performance deficiencies identified in writing by the City Council after a reasonable opportunity, as determined by the City, to correct the deficiencies; committing any violation of City policies or standards that the City deems a serious violation; or engaging in other action demonstrating a disregard for the interest of the City. The term "misconduct" also includes engaging in criminal acts or other off-duty behavior that the City views as impairing the Employee's ability to effectively perform the Employee's duties or jeopardize the reputation of the City. C. Employee will not be eligible to receive the severance offer described in Paragraph A of this Section if Employee, in accordance with applicable law, is dismissed due to a disability that prevents Employee from performing the duties of the position. D. If Employee is employed by another employer other than the city during the severance period, Employee's total severance pay from the city will be no more than the Employee's annual salary at the time of dismissal minus her earnings from such employment during the severance period. Employee will promptly notify the city in writing of the amount of such additional earnings from employment. The fortnightly severance installment payments will be adjusted as appropriate to account for any resulting reduction in total severance pay. Section 12. Other Terms and Conditions of Employment City shall by amendments to this agreement, fix such other terms and conditions of employment from time to time , as it may determine, relating to the performance by Employee with the agreement of Employee, provided such terms and conditions are not inconsistent or in conflict with the provisions of this agreement. Section 13. Severability. In any part, term, or provision of this agreement is held by the courts to be illegal or in conflict with the laws of the State of Oregon, the validity of the remaining portions of the agreement shall not be affected and the rights and obligations of the parties shall be construed and enforced as if the agreement did not contain the particular part, term, or provision. Section 14. Other Terms and Conditions of Employment The Employee is subject to all personnel policies of the City of the City and the City's Management Resolution except to the extent that they are inconsistent with an expressed term of this agreement. Section 15. PERS Pick-up Employee contributions to the Public Employees' Retirement system (PERS) shall be "picked up" by the City. Employee shall not have the option of receiving money designated for retirement contributions and directly making the contribution to PERS. Employee's reported salary for tax purposes shall be reduced by the amount of the employee's contribution to PERS. Section 16. Complete Agreement This agreement shall constitute the entire agreement between the City and Employee and supersedes all prior agreements, representations and understandings between them. No supplement, modification or amendment of this Agreement shall be binding on the City unless it is set forth in a writing that is signed by the Mayor and approved by the City Council. Likewise, no waiver or any provision of this Agreement shall be valid unless set forth in writing that is signed by the Mayor and approved by the City Council. Dated this day of June, 2018 Melissa Huhtala John Stromberg City Recorder Mayor Accepted this day of June, 2018 Kelly A. Madding Council Business Meeting July 3, 0: Award of Contract for the Ashland City Hall Concepts, Design and Title: Construction Services- Phase 1; Project #2018-12 From: Paula Brown, PE Public Works Director paula.brown(ci)ashland.or.us Kaylea Kathol Public Works Project Manager kaylea.kathol(cDashland.or.us Summary: Before the Council is a contract for professional engineering/architectural services with ORW Architecture (ORW) to provide conceptual alternatives for the City Hall Concepts, Design and Construction Services Phase 1. ORW has prepared two different cost estimates; $97,085 for all three locations (City Hall in its current location, Civic Center and Briscoe School locations) or $72,925 (25% reduction) for City Hall in its current location and the Civic Center location. Phase 1 products include: ■ site plans for each site outlining entry, access, traffic flow, and parking ■ identifying space needs for municipal courts (incorporated for the civic center site only) ■ a concept design layout for each site ■ one exterior rendering for each site ■ phasing and construction schedule considerations for each site ■ a conceptual summary of probable costs ■ evaluation process with criteria, pros and cons, and potential risks ■ collaboration with City staff and a presentation to City Council This discussion began with the City Council Business Meeting on June 5th. Council requested staff return on July 3`d to better define the deliverables and to provide a cost for phase 1 services if Briscoe School was not included. Actions, Options, or Potential Motions: ■ Move to approve the award of a contract for professional engineering/architectural services with ORW Architecture for either: o $97,085 to complete Phase 1 of the City Hall Concepts, Design and Construction Services for three concepts; City Hall in its current location, new facility at the Civic Center and reconstruction at the Briscoe School location, or o $72,925 to complete Phase 1 of the City Hall Concepts, Design and Construction Services for two concepts; City Hall in its current location and a new facility at the Civic Center. ■ Request staff renegotiate the contract with ORW to include or delete the following items within the contract [state the intended corrections]. ■ Redirect staff efforts and not award the contract. Page I of 4 C I T Y OF -ASHLAND Staff Recommendation: Staff recommends the Council approve the award of a contract for professional engineering/architectural services with ORW Architecture for $97,085, to provide conceptual alternatives for the City Hall Concepts, Design and Construction Services Phase 1 for all three locations (City Hall in its current location, Civic Center and Briscoe School locations). This will allow the full scope of all three sites to be evaluated for an equitable comparison. Resource Requirements: The Facilities Division's 2017-19 biennium budget includes $200,000 for facilities studies. To date, $44,215 has been expended for the assessment of Pioneer Hall. Award of this contract for $97,085, will allow $58,700 to remain for additional city facility analysis. Policies, Plans and Goals Supported: Council Goals: 2.2 Engage boards and commissions in supporting the strategic plan 4 Evaluate real property and facility assets to strategically support city mission and goals Department Goals: • Maintain existing infrastructure to meet regulatory requirements and minimize life-cycle costs • Deliver timely life cycle capital improvement projects • Maintain and improve infrastructure that enhances the economic vitality of the community • Evaluate all city infrastructure regarding planning management and financial resources Background and Additional Information: The City has been discussing the reconstruction or relocation of City Hall for more than 20 years. The building is seismically vulnerable, lacks meeting space and has no room for growth. However, it is the earthquake vulnerability of the building that presents the most pressing problem. The interior of City Hall has been reconfigured a number of times since 1913 but has never had any structural improvements related to seismic mitigation. A seismic evaluation of City Hall was conducted in 1994. The current City Hall is vulnerable to earthquake activity. As part of its 2014 strategic planning initiative, the City Council identified "Examine City Hall replacement and other facility needs" as a priority goal. Council held a study session on June 15, 2015, to begin those discussions, and a second study session on February 1, 2016, to hear the updated findings of the 2015 seismic evaluation. The January 17, 2017, study session updated Council with all actions taken to date for all of the options and special studies evaluated by staff. In April of 2017 Council appointed an ad hoc City Hall Advisory Committee to review feasible alternatives for the replacement of City Hall. On October 3, 2017, Council heard a presentation from staff and received the ad hoc City Hall Advisory Committee's Final Report and Recommendations for the replacement of City Hall. The Ad Hoc Committee did not reach unanimity on a recommendation with eight of the eleven members recommending rebuilding City Hall on its current site, expanding the stricture to accommodate growth and retaining the community development building. The three remaining members had differing recommendations and were explained in the report. The chair provided Council with the final Page 2 of 4 CITY OF -AS H LA N D report and a minority opinion. The minutes of the October 3, 2017 meeting explained the process and concerns. During the Council Study Session on December 4, 2017, staff reviewed the ad hoe committee recommendations, distilled the comments made by Councilmembers and offered a phased plan to develop concepts and costing prior to full design. Council directed staff to proceed to develop a Request for Qualifications (RFQ) proposal for this multi-phased project (minutes of the December 4, 2017 meeting). Utilizing this concept, staff were to select a firm with appropriate qualifications (architectural, engineering, site design and planning) to develop a step by step approach to selecting a preferred solution. Staff developed and released the RFQ for solicitation in early late January with proposals due on March 2, 2018. The City received two proposals; ORW Architecture (Medford) and Steele Associates Architects, LLC (Bend). After significant independent staff review and discussions with both firms, staff is recommending the award to ORW. Staff initiated and negotiated a cost proposal for Phase 1. After the June 5`" Council meeting, staff met with ORW and requested a cost if Briscoe were removed from consideration and also asked for a list of explicit deliverables. Both are attached. The RFQ outlines four stages of the project; Phase 1: conceptual design renderings and conceptual costs for each of the selected alternatives to include risks associated with each alternative; pros and cons of each alternative, and a relative time line. As part of this phase, the contractor will propose a process for selecting a preferred alternative. Phase 2: preliminary engineering and refined costs of the selected alternative; detailed staff moves and property options (depending on the site selected) Phase 3: final engineering design and plans for the selected alternative and final cost analysis; easements and permitting Phase 4: construction management services to assist with any site changes and quality control Each phase will be separately negotiated for cost, scope and time, and a separate contract for each phase will be developed. A clause in the RFQ and initial phase indicates the intention to continue with subsequent phases but allows the City to stop at any time and renegotiate each phase independently through a separate RFP process. All contracts and scopes of work would go to council for approval. The initial conceptual design will include a rendering and cost estimates. The consulting team and staff will develop options for energy efficiencies and a general assessment of "green building" or LEED Platinum level costs. It is estimated that this work could be completed within 6 months. Once this phase is complete, staff will return to the Council with a recommendation and financing options. Page 3 of 4 CITY or -ASHLAND Attachments: • City of Ashland Contract with ORW; • Two fee matrices with their scopes of work o $97,085 to complete Phase 1 of the City Hall Concepts, Design and Construction Services for three concepts; City Hall in its current location, new facility at the Civic Center and reconstruction at the Briscoe School location, or o $72,925 to complete Phase 1 of the City Hall Concepts, Design and Construction Services for two concepts; City Hall in its current location and the Civic Center location. Page 4 of 4 C I T Y Of -AS H LA N D PERSONAL SERVICES AGREEMENT (greater than $25,000.00 CONSULTANT: ORW ARCHITECTURE C I T Y 04 CONSULTANT'S CONTACT: ~S.H LAND Dana Crawford / Jeffrey Bender 20 East Main Street Ashland, Oregon 97520 ADDRESS: 2950E. Barnett Road Telephone: 541/488-5587 Medford, OR 97504 Fax: 541/488-6006 TELEPHONE: 541-779-5237 EMAIL: dana@orwarch.com This Personal Services Agreement (hereinafter "Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and ORW Architecture ("hereinafter "Consultant"), for City Hall Design and Construction Services- Phase 1 as per exhibit A. NOW THEREFORE, in consideration of the mutual covenants contained herein, the City and Consultant hereby agree as follows: 1. Effective Date and Duration: This Agreement shall become effective on the date of execution on behalf of the City, as set forth below (the "Effective Date"), and unless sooner terminated as specifically provided herein, shall terminate upon the City's affirmative acceptance of Consultant's Work as complete and Consultant's acceptance of the City's final payment therefore, but not later than December 30, 2018. 2. Scope of Work: Consultant will provide City Hall Design and Construction Services- Phase 1 as more fully set forth in the Consultant's Proposal dated March 2, 2018, which is attached hereto as "Exhibit A" and incorporated herein by this reference. Consultant's services are collectively referred to herein as the "Work." 3. Supporting Documents/Conflicting Provisions: This Agreement and any exhibits or other supporting documents shall be construed to be mutually complimentary and supplementary wherever possible. In the event of a conflict which cannot be so resolved, the provisions of this Agreement itself shall control over any conflicting provisions in any of the exhibits or supporting documents. 4. All Costs Borne By Consultant: Consultant shall, at its own risk and expense, perform the Work described above and, unless otherwise specified in this Agreement, furnish all labor, equipment, and materials required for the proper performance of such Work. 5. Qualified Work: Consultant has represented, and by entering into this Agreement now represents, that all personnel assigned to the Work to be performed under this Agreement are fully qualified to perform the service to which they will be assigned in a skilled and worker-like manner and, if required to be registered, licensed or bonded by the State of Oregon, are so registered, licensed and bonded. Page I of 6: Personal Services Agreement with ORW ARCHITECTURE. 6. Compensation: City shall pay Consultant the sum of $97,085.00 as full compensation for Consultant's performance of all Work under this Agreement. In no event shall Consultant's total of all compensation and reimbursement under this Agreement exceed the sum of $97,085.00 without the express, written approval from the City official whose signature appears below, or such official's successor in office. Payments shall be made within 30 days of the date of receipt by the City of Consultant's invoice. Should this Agreement be terminated prior to completion of all Work, payments will be made for any phase of the Work completed and accepted as of the date of termination. 7. Ownership of Work/Documents: All Work product or documents produced in furtherance of this Agreement belong to the City, and any copyright, patent, trademark proprietary or any other protected intellectual property right shall vest in and is hereby assigned to the City. 8. Statutory Requirements: The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 27913.220, 27913.230 and 27913.235. 9. Living Wage Requirements: If the amount of this Agreement is $20,688.86 or more, Consultant is required to comply with Chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in that chapter, to all employees performing Work under this Agreement and to any Subcontractor who performs 50% or more of the Work under this Agreement. Consultant is also required to post the notice attached hereto as "Exhibit B" predominantly in areas where it will be seen by all employees. 10. Indemnification: Consultant hereby agrees to defend, indemnify, save, and hold City, its officers, employees, and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogations, or other damages resulting from injury to any person (including injury resulting in death), or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this Agreement by Consultant (including but not limited to, Consultant's employees, agents, and others designated by Consultant to perform Work or services attendant to this Agreement). However, Consultant shall not be held responsible for any losses, expenses, claims, subrogations, actions, costs, judgments, or other damages, caused solely by the negligence of City. 11. Termination: a. Mutual Consent. This Agreement may be terminated at any time by the mutual consent of both parties. b. City's Convenience. This Agreement may be terminated by City at any time upon not less than 30 days' prior written notice delivered by certified mail or in person. C. For Cause. City may terminate or modify this Agreement, in whole or in part, effective upon delivery of written notice to Consultant, or at such later date as may be established by City under any of the following conditions: i. If City funding from federal, state, county or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services; ii. If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this Agreement or are no longer eligible for the funding proposed for payments authorized by this Agreement; or Page 2 of 6: Personal Services Agreement with ORW ARCHITECTURE. iii. If any license or certificate required by law or regulation to be held by Consultant to provide the services required by this Agreement is for any reason denied, revoked, suspended, or not renewed. d. For Default or Breach. i. Either City or Consultant may terminate this Agreement in the event of a breach of the Agreement by the other. Prior to such termination the party seeking termination shall give to the other party written notice of the breach and its intent to terminate. If the party committing the breach has not entirely cured the breach within fifteen (15) days of the date of the notice, or within such other period as the party giving the notice may authorize in writing, then the Agreement may be terminated at any time thereafter by a written notice of termination by the party giving notice. ii. Time is of the essence for Consultant's performance of each and every obligation and duty under this Agreement. City by written notice to Consultant of default or breach may at any time terminate the whole or any part of this Agreement if Consultant fails to provide services called for by this Agreement within the time specified herein or within any extension thereof. iii. The rights and remedies of City provided in this subsection (d) are not exclusive and are in addition to any other rights and remedies provided by law or under this Agreement. e. Obligation/Liability of Parties. Termination or modification of this Agreement pursuant to subsections a, b, or c above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination or modification. However, upon receiving a notice of termination (regardless whether such notice is given pursuant to Subsection a, b, c, or d of this section, Consultant shall immediately cease all activities under this Agreement, unless expressly directed otherwise by City in the notice of termination. Further, upon termination, Consultant shall deliver to City all Agreement documents, information, works-in-progress and other property that are or would be deliverables had the Agreement been completed. City shall pay Consultant for Work performed prior to the termination date if such Work was performed in accordance with this Agreement. 12. Independent Contractor Status: Consultant is an independent contractor and not an employee of the City for any purpose. Consultant shall have the complete responsibility for the performance of this Agreement. Consultant shall provide workers' compensation coverage as required in ORS Chapter 656 for all persons employed to perform Work pursuant to this Agreement. Consultant is a subject employer that will comply with ORS 656.017. 13. Assignment: Consultant shall not assign this Agreement or subcontract any portion of the Work without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be void. Consultant shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all persons employed by them, and the approval by City of any assignment or subcontract of the Work shall not create any contractual relation between the assignee or subcontractor and City. 14. Default. The Consultant shall be in default of this Agreement if Consultant: commits any material breach or default of any covenant, warranty, certification, or obligation under the Agreement; institutes an action for relief in bankruptcy or has instituted against it an action for insolvency; makes a general assignment for the benefit of creditors; or ceases doing business on a regular basis of the type identified Page 3 of 6: Personal Services Agreement with ORW ARCHITECTURE. in its obligations under the Agreement; or attempts to assign rights in, or delegate duties under, this Agreement. 15. Insurance. Consultant shall, at its own expense, maintain the following insurance: a. Worker's Compensation insurance in compliance with ORS 656.017, which requires subject employers to provide Oregon workers' compensation coverage for all their subject workers b. Professional Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence. This is to cover any damages caused by error, omission or negligent acts related to the professional services to be provided under this Agreement. c. General Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence for Bodily Injury, Death, and Property Damage. d. Automobile Liability insurance with a combined single limit, or the equivalent, of not less than $1,000,000 (one million dollars) for each accident for Bodily Injury and Property Damage, including coverage for owned, hired or non-owned vehicles, as applicable. e. Notice of cancellation or change. There shall be no cancellation, material change, reduction of limits or intent not to renew the insurance coverage(s) without 30 days' prior written notice from the Consultant or its insurer(s) to the City. f. Additional Insured/Certificates of Insurance. Consultant shall name the City of Ashland, Oregon, and its elected officials, officers and employees as Additional Insureds on any insurance policies, excluding Professional Liability and Workers' Compensation, required herein, but only with respect to Consultant's services to be provided under this Agreement. The consultant's insurance is primary and non-contributory. As evidence of the insurance coverages required by this Agreement, the Consultant shall furnish acceptable insurance certificates prior to commencing the Work under this Agreement. The certificate will specify all of the parties who are Additional Insureds. Insuring companies or entities are subject to the City's acceptance. If requested, complete copies of insurance policies; trust agreements, etc. shall be provided to the City. The Consultant shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance. 16. Nondiscrimination: Consultant agrees that no person shall, on the grounds of race, color, religion, creed, sex, marital status, familial status or domestic partnership, national origin, age, mental or physical disability, sexual orientation, gender identity or source of income, suffer discrimination in the performance of any Work under this Agreement when employed by Consultant. Consultant agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Consultant agrees not to discriminate against a disadvantaged business enterprise, minority-owned business, woman-owned business, a business that a service-disabled veteran owns or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A. 110. 17. Consultant's Compliance With Tax Laws: 17.1 Consultant represents and warrants to the City that: 17. 1.1 Consultant shall, throughout the term of this Agreement, including any extensions hereof, comply with: (1) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Consultant; and Page 4 of 6: Personal Services Agreement with ORW ARCHITBCTURL. (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 17.1.2 Consultant, for a period of no fewer than six (6) calendar years preceding the Effective Date of this Agreement, has faithfully complied with: (1) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Consultant; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 18. Governing Law; Jurisdiction; Venue: This Agreement shall be governed and construed in accordance with the laws of the State of Oregon without resort to any jurisdiction's conflict of laws, rules or doctrines. Any claim, action, suit or proceeding (collectively, "the claim") between the City and the Consultant that arises from or relates to this Agreement shall be brought and conducted solely and exclusively within the Circuit Court of Jackson County for the State of Oregon. If, however, the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon filed in Jackson County, Oregon. Consultant, by its signature hereon of its authorized representative, hereby consents to the in personam jurisdiction of said courts. 19. THIS AGREEMENT AND THE ATTACHED EXHIBITS CONSTITUTE THE ENTIRE UNDERSTANDING AND AGREEMENT BETWEEN THE PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS AGREEMENT SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS AGREEMENT. CONSULTANT, BY SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE, HEREBY ACKNOWLEDGES THAT HE/SHE HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. 20. Amendments. This Agreement may be amended only by written instrument executed by both parties with the same formalities as this Agreement. 21. Nonappropriations Clause. Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this Agreement within the City's fiscal year budget. Consultant understands and agrees that City's payment of amounts under this Agreement attributable to Work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this Agreement. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this Agreement without penalty or liability to City, effective upon the delivery of written notice to Consultant, with no further liability to Consultant. Page 5 of 6: Personal Services Agreement with ORW ARCHITECTURE 22. Certification. Consultant shall sign the certification attached hereto as "Exhibit C" and incorporated herein by this reference. CITY OF ASHLAND: ORW ARCHITECTURE (CONSULTANT): By: By: City Administrator Signature Printed Name Printed Name Date Title Date Purchase Order No. (W-9 is to be submitted with this signed Agreement) APPROVED AS TO FORM: Assistant City Attorney Date Page 6 of 6: Personal Services Agreement with ORW ARCHITECTURE. EXHIBIT C CERTIFICATIONS/REPRESENTATIONS: Consultant, by and through its authorized representative, under penalty of perjury, certifies that (a) the number shown on the attached W-9 form is its correct taxpayer ID (or is waiting for the number to be issued to it and (b) Consultant is not subject to backup withholding because: (i) it is exempt from backup withholding, or (ii) it has not been notified by the Internal Revenue Service (IRS) that it is subject to backup withholding as a result of a failure to report all interest or dividends, or (iii) the IRS has notified it that it is no longer subject to backup withholding. Consultant further represents and warrants to City that: (a) it has the power and authority to enter into and perform the Work, (b) the Agreement, when executed and delivered, shall be a valid and binding obligation of Consultant enforceable in accordance with its terms, (c) the work under the Agreement shall be performed in accordance with the highest professional standards, and (d) Consultant is qualified, professionally competent, and duly licensed (if applicable) to perform the Work. Consultant also certifies under penalty of perjury that its business is not in violation of any Oregon tax laws, it is an independent contractor as defined in the Agreement, it is authorized to do business in the State of Oregon, and Consultant has checked four or more of the following criteria that apply to its business. (1) Consultant carries out the work or services at a location separate from a private residence or is in a specific portion of a private residence, set aside as the location of the business. (2) Commercial advertising or business cards or a trade association membership are purchased for the business. (3) Telephone listing is used for the business separate from the personal residence listing. (4) Labor or services are performed only pursuant to written contracts. (5) Labor or services are performed for two or more different persons within a period of one year. (6) Consultant assumes financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of performance bonds, warranties, errors and omission (professional liability) insurance or liability insurance relating to the Work or services to be provided. Consultant Date ~I Page 1 of 1 EXHIBIT C EXHIBIT B CITY OF ASHLAND, OREGON City of Ashland LIVING ALL employers described WAGE below must comply with City . Ashland laws regulating living payment of a wage. per hour, effective June 30, 2017. A The Living Wage is adjusted annually every !L June 30 by the Consumer Price Index. portion of business of their 401 K and IRS eligible employer, if the employer has cafeteria plans (including ten or more employees, and childcare) benefits to the has received financial amount of wages received by assistance for the project or the employee. For all hours worked under a business from the City of service contract between their Ashland in excess of ➢ Note: For temporary and employer and the City of $20,688.86. part-time employees, the Ashland if the contract Living Wage does not apply exceeds $20,688.86 or more. ➢ If their employer is the City of to the first 1040 hours worked Ashland, including the Parks in any calendar year. For For all hours worked in a and Recreation Department. more details, please see month if the employee spends Ashland Municipal Code employee's or more of the ➢ In calculating the living wage, Section 3.12.020. employee's time in that month employers may add the value working on a project or of health care, retirement, additional For Call the Ashland City Administrator's office at 541-488-6002 or write to the City Administrator, City Hall, 20 East Main Street, Ashland, OR 97520, or visit the City's website at www.ashland.or.us. (Notice to Employers: This notice must be posted predominantly in areas where it can be seen by all employees. CITY OF -ASHLAND Pane I of I EXHIBIT B Ashland City Hall Phase 1: Concept Design Fee Matrix April 2018 Prime Prime Prime Struct civil Mech Elect Cost Architect Architect Architect Engineer Engineer Engineer Engineer Modeling ~ w o v ra c o il n 1 :2 ~5 dy N 'R c w c + t- a C M %I N - c c 'm g' a mac-, 0 c c E+ n+ c y a a` ° Yn .5< .c o A v m bib» `W z n 9i e0 c Qa r? cf~~c b Sub-Total a a ~ a ¢ Task Cost 6 O g O O S v v rl 2 a W u W W of 5165 $165 5115 $125 $120 $190 $94 $168 Task # Task Name Approach Review select documents and Evaluate Prior 1 Work conclusion statements from Ad Hoc 2 4 1 1 1 1 Committee. -Task Fee ~ $1,519 5330 $660 50 $125 5120 5190 594 50 51,519 s0 $0 $0 Minor update of space needs program from 2016 Feasibility study to include municipal Calls )1 meeting) and combined meeting with Police and Fire 2 UP Needsace Chiefs 11 meeting) regarding access 16 4 needed around proposed EOC. No update of departments in 2016 Feasibility Study. Task Fee $3,100 SO $2,640 5460 $0 $0 $0 50 50 53,100 $o $0 550 $50 No workshop or exploration of green building measures in this phase. 3 Green Building Include Anowance for LEER Platinum in Standards cost model. s0 s0 s0 $0 $0 so $0 $0 so so develop one Site Plan for each of three sites with sufficient detail to produce renderings and cost estimates. Include 4 Site Planning xonin& parking circulation flow, 48 20 24 6 16 utilities, softscape, and hardscape. Tazk Fee $16,650 57,920 $3,300 52,760 $750 51,920 $0 50 s0 516,650 $o $0 $0 Develop one Concept Design for each of three sites with sufficient detail to produce renderings and cost estimates 5 Concept Design for New building at city Hall site, 80 20 60 16 16 30 30 Renovated building at Briscoe, new building at civic center including courts and Council- Task Fee 535,84D 513,200 $3,300 56,900 $2,000 51,920 SS,700 52,820 $0 535,840 $0 $100 $50 5150 Reduced No work during this phase. City may Upgrades For decide to use previous work produced 6 Existing City by huller Engineering and escalate Hall costs. Task Fee $0 SD so 50 So so 50 $0 $0 ® $0 $0 so Assess structure of Briscoe School (for 7 Structural renovation option) to meet OSSC 6 20 12 Upgrade requirements. Task Fee $5,506 $0 $990 $0 $2,500 50 So SO $27016 $5,506 50 $0 $o Community HoCommurrryinvolvement forthis 8 Involvement phase. Task Fee _ $0 SO $o $0 $0 $0 $0 $0 $0 ® SO $0 SO F- so Three progress meetings with City and g city one Council meeting to share final 6 15 10 Collaboration presentation. Task Fee 54,615 $990 $2,475 S1,1S0 $0 SO So $0 $0 $4,615 $0 $0 5100 $100 Provide one fully rendered 10 Renderings exterior view of each option- 20 6 60 Task Fee 511,190 $3,300 $990 $6,900 $0 $0 $f, SO 50 $11,190 $o $200 $o $200 Develop considerations for Phasing and construction phasing, temporary 11 rule relocation, and estimated construction 20 6 schedule. Task Fee $3,990 $0 $3,300 $690 $0 $0 $a 50 $Cl $3,990 50 $0 $0 Provide four cost models: one for each of three concept option and one for 12 Cost Modeling reduced system upgrade at existing 3 20 30 City natl. Task Fee S8 83S 5495 $3,300 $0 5f1 $0 So so 55,040 58,835 $0 50 $0 Develop evaluation process with viteria, pros and cons, and potential 13 Selection risks- Assist City in identifying a 8 16 12 Process preferred altemative_ Task Fee ---$i,346 51,320 $2640 $1380 $0 SO S11 SO $0 $S.340 $0 $0 50 Report: Summarize phase I work 14 Report Writing above. Time: 2 weeks Task Fee so SO $0 $0 $0 SO $0 50 SO $0 SO $0 50 15 Report Compile all materials, graphic layout Compilation Time: 2 weeks Task Fee SO $0 SO SO $0 $0 SO $0 SO SO SO 50 SO Sub-Total Consultant 167 143 176 43 33 31 31 42 Hours Fee Subtotal A $96,585 527,555 523,595 520,240 $S,37S $3,960 $5,890 $2,914 57,056 $96,585 50 $300 $200 5500 Expenses $500 TOTAL TOTAL Project Total $97,08 Ashland City Hall Phase I: Concept Design Fee Matrix June 2018 Prime Prime Prime Struct Civil Mech Elect Cost Architect Architect Architect Engineer Engineer Engineer Engineer Modeling v A c - ~ o ~ n fi A 3 IT b c 2 a u~ y 3 m eq d O L R a o m c c ` S A 4 - V o C O d o iG O w tf W .t+. Y 8 N w ce a t1 H Z 3! f, i2 3 'a 3 c 3 a 3 w w b Sub-Total v w gg~ n n n a Q is O O u N `d' V a 2 a w Task Cost L~ 6 5165 $16S $115 $125 5120 $190 $94 5168 Task # Task Name Approach Evaluate Prior Review select documents and 1 Work conclusion statements from Ad rwc 2 4 1 1 1 1 Committee. Task Fee 51,519 $330 $660 50 $125 $120 $190 $94 $0 $1,519 so $0 SO L?" Minor update of space needs program from 2016 Feasibility study to include municipal courts (1 meeting) and combined meeting with Police and Fire 2 Update Space Needs Chiefs (1 meeting) regarding access 16 4 needed around proposed EOC. No update of departments in 2016 Feasibility Study. Task Fee 53,1001 i 50 52,640 $460 50 50 $o 50 $0 53,100 50 $0 $50 550 No workshop or exploration of green building measures in this phase. 3 Green Building Include Allowance for LEED Platinum Standards cost model. Task Fee $o 50 $0 50 50 50 $0 50 50 50 50 Develop one Site Plan for each of two sites with sufficient detail to produce Site Planning renderings and cost estimates- include 4 32 14 16 6 12 (2 sites) zoning, parking, circulation flow, utilities, softscape, and hardscape- Task Fee 511,620 $5,280 $2,310 $1,840 $750 $1,440 50 50 $0 511,620 50 50 50 Develop one concept Design for each of two sites with sufficient detail to produce renderings and cost estirrmtes 5 Concept Design for New budding at City stall site, and 64 14 48 12 12 24 24 new building at Civic Center including courts and cotnci- Task Fee $28,146 $10,560 $2,310 55,520 $1,500 51,440 $4,560 $2,256 $0 528,146 50 $100 550 5150 Reduced No work during this phase. City may 6 Upgrades For deride to use previous work Produced Existing City by Miller engineering and escalate Hall costs. Task Fee SO SO $0 So $0 50 $0 $0 $0 ® 50 50 $0 No structural assessment of Briscoe 7 Structural School to meet OSSC requirements. Upgrade Task Fee $0 $0 $0 50 $0 50 $0 $0 so I o $0 $0 $0 so Community No Communty involvement for this 8 Involvement Phase. Task Fee $0 $0 $0 $0 SO SO SO SO SO ® 50 SO $0 Three progress meetings with City and g city one council meeting to share final 6 15 10 Collaboration presentation- Task Fee 54,615 5990 52,475 51,150 $0 50 $0 $0 50 54,615 50 $0 $100 5100 Provide one fully rendered 10 Renderings exterior view of each option. 16 6 48 Task Fee $9,150 52,640 $990 SS,S20 $0 50 50 $0 $0 59,150 $0 5200 50 5200 Develop considerations for phasing and construction phasing, temporary 11 Schedule relocation, and estimated construction 16 6 schedule. Task Fee $3,330 50 $2,640 $690 $0 50 $0 $0 50 $3,330 SO $0 $0 Provide two cost models: one for each 12 Cost Modeling of two concept options. 3 16 20 Task Fee $6,495 5495 $2,640 50 $0 $0 $o so $3,360 $6,495 50 SO 50 Develop evaluation process with criteria, pros and cons, and potential 13 Selection risks. Assist city in identifying a 8 12 10 Process preferred alternative. Task Fee 54,450 $1,320 $1,980 51,150 50 S0 SO $0 So $4,450 $0 $0 50 Report: Summarize phase I work 14 Report Writing above. Time: 2 weeks Task Fee $0 $0 50 50 SO SO SO $0 SO I so so SO 50 15 Report Cam Pfle all materials, graphic layout Compilation Time: 2weeks Task Fee SO SO SO SO SO 50 50 SO $0 $0 50 SO $0 Sub-Total Consultant 131 113 142 19 25 2S 25 20 _Ho_urs Fee Subtotal 574425 $21,615 518,645 516,330 52,375 53,000 $4,750 $2,350 $3,360 572,425 50 $300 $200 5500 Expenses 5500 TOTAL TOTAL Project Total 572,9 Council Business Meeting July 3, 0: Title: Clarification of Council Rules and Protocols From: David Lohman City Attorney David.lohman@ashland.or.us Discussion Questions: This agenda item is a next step in an extended conversation on clarifying and modifying, if appropriate, expectations about Council practices at study sessions and regular business meetings. At this July 3 meeting, Council is asked to address highlighted Questions # 13 through #15 in Attachment A. The other questions in Attachment A are ones that Council has already addressed in previous meetings 1 through # 16, #22, #30, and #31) or has yet to address in future meetings. Resource Requirements: N/A Sul!2ested Next Steps: As time permits at upcoming study sessions - or at a future retreat Council will be asked to address the unanswered questions in Attachment A, along with questions Councilors may wish to add to the list. Once agreement is reached on clarifications or changes to Council meeting practices, at future business meetings, staff will propose ordinance amendments or resolutions needed to effect those changes or, perhaps, simple written interpretations of some rules. Policies, Plans and Goals Supported: Council Goal 2: Promote effective citizen communication and engagement. Background and Additional Information: Robert's Rules of Order serve as the default reference for meeting procedure. Over time, refinements or alternatives to Robert's Rules have been adopted to accommodate Ashland City Council's particular needs and circumstances. In 2014, the ordinance concerning fonnal Council rules, AMC 2.04, was updated again. Since then, more ambiguities, uncertainties, and inconsistencies have surfaced and occasionally have become sources of frustration. Discussions in 2014 did not, for the most part, address informal Council practices. This agenda item, and similar ones to follow, is intended to give the Council an opportunity to identify problems with both codified and informal Council meeting practices and decide whether changes are in order. Based on issues and questions about Council meeting practices that have arisen since 2014, staff so far has identified 37 questions believed to be worthy of Council discussion for purposes of Page I of 2 CITY OF -ASHLAND either clarification or revision. Council may wish to add more items to Attachment A, merge some, or strike some off the list. The questions are grouped into the following general topics: agendas; study sessions; comments, presentations, and correspondence from citizens; deliberation rules; Councilmember requests for information or actions from staff; and miscellany. At its November 20, 2017 study session, Council reached conclusions on questions #1 through #3 and #16 and #21. Agenda and minutes from the November 20, 2017 Study Session. At its regular business meeting on January 16, 2018, taking up the agenda item originally set for the December 18 study session, Council modified its previous conclusion on Question 42 and addressed questions #4 through #7. Agenda from the December 18, 2017 study session and minutes from the January 16, 2018 regular business meeting. At its April 3, 2018, regular business meeting, Council reached conclusions on questions #8 through #12 and #30 and #31. Agenda and minutes from the April 3, 2018 regular business meeting. The "Council Conclusions" text under Questions #1 through #16, #22, #30, and #3l constitute staff's summary of what seemed to be the provisional position of a majority of Councilmembers on each question; Council has not taken votes on those conclusions, and may well modify those conclusions when the time comes for formal approval in ordinance amendments, resolutions or written policies. Councilmembers may well want to review these tentative conclusions from previous meetings and point out at the July 3 meeting any inaccuracies in the stated conclusions. In particular, staff requests scrutiny of statement (g) under Question 9 and statement (c) under Question 10. These two statements are italicized to flag Staff's uncertainty as to what the Council's majority positions on these matters really were at the April 3 meeting. The minutes of the meeting, staff's notes, and even the video of the meeting left room for doubt. So staff made best guesses and seeks correction as needed. The main reason for this agenda item, however, is to seek Councilmembers' responses to questions #13 through #15, which are highlighted in gray in Attachment A. For each of these questions, a staff-suggested conclusion is provided, along with some factors ("Points and Authorities") and, under 413 and 414, alternative conclusions to consider. The questions not previously addressed and not slated to be addressed as part of this July3 agenda item (which are Questions #17 through #29 and #32 through #37) are set forth in the rest of Attachment A simply as questions, without staff-suggested conclusions or considerations to be weighed. As time permits, these remaining questions will be scheduled for discussion at future Study Sessions or Regular Council meetings. Attachments: Attachment A: Council Rules and Protocols (7/3/18 Version) Page 2 of 2 CITY OF ASHLAND ATTACHMENT A COUNCIL RULES AND PROTOCOLS (4/3/18 Version) AGENDAS 1. Question: Should contracts above a specified dollar amount be presented as individual matters for Council decision, as opposed to being included on the Consent Agenda? Council Conclusion (11/20/17): On a trial basis, the City Administrator should place approval of any contract/procurement in excess of $100,000 on the regular business agenda. 2. Question: Should minutes of City advisory bodies be included in the Council agenda packets, along with a summary of which advisory bodies have met recently? Council Conclusion (1/16/18 modifying 11/20/17 tentative decision): Minutes for all standing and ad hoc advisory bodies are available on the opening page of the City website by clicking on the "City Commissions" tab or by clicking "Agendas and Minutes" in the Quick Link section of the homepage and using the dropbox to select the desired commission, committee, or board. Minutes are to be posted on the website shortly after each meeting whether approved or in not-yet-approved draft. Electronic versions of agendas for regular City Council meetings include an item providing hyperlinks to the minutes for each standing board or commission. 3. Question: During a Council meeting, under what circumstances should the scheduled order of a meeting agenda be altered? Council Conclusion (11/20/17): Councilors and the Mayor agree to adhere to the regular order of meeting agendas except in very rare circumstances and only after approval by a majority of the Council. No ordinance revision is necessary. 4. Question: During a Council meeting, how should a Councilor go about adding an item to the agenda? Council Conclusion (1/16/18): Retain current procedure, as provided in AMC 2.04.030C. During a meeting, a Councilor may move to add an item to the agenda for that meeting (or a future meeting). In the normal order of business, a motion to add an item to an agenda should be made at the time designated for "Other Business from Council Members." But the Mayor could change the order of business so as to take up the motion to add the item earlier in the meeting. If the motion to add an item to the current meeting's agenda receives a second, any debate, and majority approval, the item normally would be placed in the "Other business from Council Members" section of the agenda. The Mayor, however, could decide to modify the order. [1] 5. Question: Outside of a meeting, how should a Councilor go about getting a matter added to an upcoming meeting agenda? Council Conclusion (1/16/18): Retain current procedure as provided in AMC 2.04.030B. An individual Councilor can get a matter added to a future Council meeting agenda by making a timely written request to the City Administrator, unless the item requires more than two hours of preparation by staff - in which case consent from a majority of the Council at a Council meeting is required. 6. Question: How should a citizen go about getting a matter added to a Council meeting agenda? Council Conclusion (1/16/18): Retain current procedure. A citizen should make the request to any Councilor or the Mayor or City Administrator or to a City advisory board, commission, or committee or make the request as part of testimony during Public Forum. 7. Question: During a Council meeting, how should a Councilor seek removal or postponement of a scheduled agenda item? Council Conclusion (1/16/18): Retain current procedures, as provided in AMC 2.04.040C.4.b(3) and 2.04.040C.4.j and k. Before or at the outset of consideration of a matter, a Councilor may "object to consideration of the question." After consideration of a matter has begun, a Councilor may "move to postpone the matter to a certain time" or "move to postpone the matter indefinitely." These are parliamentary mechanisms for deferring an agenda item which is believed to be not yet ripe for consideration. 8. Question: Should the pre-meeting Council packet include any presentation slides to be shown at the following week's meeting? Council Conclusion (4/3/18): Staff should make every effort to complete presentation slides in time for inclusion in the Council agenda packet. If, after agenda packets are mailed out, changes to presentation slides become necessary to avoid misinformation, staff should highlight such changes early in Council's consideration of the apposite agenda item. STUDY SESSIONS 9. Question: Should/could Study Sessions be made more useful by treating them less like briefings and more like sessions for interactive exploration of key topics, adopting minimal formalities for presentations by and questioning of staff and for discussion among Councilmembers? Council Conclusions (4/3/18): a. Study Sessions should continue to be televised and held at Council Chambers. b. A more roundtable-like seating arrangement for Study Sessions at Council Chambers should be tried on a provisional basis to determine whether such an arrangement would further informal, wide-ranging, and inclusive dialogue. [2j c. Study Sessions should continue to begin at 5:30 p.m. on the Mondays before Tuesday business meetings. Unless a majority votes to extend an additional 30 minutes, Study Sessions should conclude no later than 7:00 p.m. d. The preferred time for any Executive Sessions is just after adjournment of Study Sessions. e. The Look Ahead need not be presented as an agenda item at Study Sessions; instead, it should be distributed in advance via email, allowing Councilmembers to ask about particular planned future agenda items either before or at a Study Session. f. The Council should observe the current requirement in AMC 2.04.020C.2 that public forum presentations at a Study Session be limited to topics on the agenda for that Study Session, g. ??Allow citizens the normal time for presentation but allow Councilmembers unlimited time for follow-up dialogue with and exploratory questioning of presenters. 10. Question: Should Council be precluded from making decisions at Study Sessions? Council Conclusions (4/3/18): a. Study Sessions should be for providing Councilmembers background information and providing staff a rough sense of Councilmembers' interests and concerns about impending public issues. b. Retain current practice, as provided in AMC 2.04.020C.1: "Study sessions are for Council members to receive background information and recommendations from staff or invitees with expertise on City business; to ask questions, discuss options, express their individual views on matters that may be voted on in subsequent Regular or Special Meetings and to provide guidance to staff. The Council may vote in Study Sessions on guidance to staff concerning matters to be presented to Council for decision at subsequent meetings. By consensus, the Council also may direct staff to take action on other matters that do not require Council decision by ordinance or resolution...." c. In brief, provisional deliberations and decisions, including motions on directions to staff, are allowable at Study Sessions, but final decisions about resolutions, ordinances and policies are to be made at Regular business meetings. 11. Question: Should someone (the Mayor or City Administrator) be responsible for providing a summary of action taken/direction given at the end of each Study Session agenda item? Council Conclusion (4/3/18): Yes COMMENTSIPRESENTATIONSICORRESPONDENCE FROM CITIZENS 12. Question: Should a person speaking before the Council be required to state his or her street address? Council Conclusions (4/3/18): Require that persons making presentations to Council state (1) which city they reside in; or (2) which county they reside in, if in an unincorporated area; or (3) the organizations for which they are speaking or with which they are affiliated with respect to their presentations. Persons speaking at Public Forum or during public testimony on agenda items should include current contact information on the "Speaker Request" forms they submit to reserve an [3] opportunity to address the Council. 13. Question: How should time limits on speakers on scheduled agenda items be determined? Staff-Suggested Conclusion: Retain current AMC 2.04.050G.2, which makes the presiding officer responsible for setting time limits on public testimony on scheduled agenda items. Points and Authorities: a. Current AMC 2.04.050G.2 says, "The presiding officer will set time limits for people to ask to speak on agenda items. In general, the time limits should be set to enable all people who wish to present testimony. Time limits shall not be so short as to not allow speakers to address their topics." b. The time available for public testimony depends on multiple variable factors, such as time required for other items on the agenda, and the number of submitted "speaker request forms." c. Especially on controversial issues, many members of the public may wish to be heard at Council meetings. d. Especially on controversial issues, elected decision-makers may well need significant meeting time for thoughtful deliberations among themselves. e. The standard time limit for public testimony at Study Sessions is 15 minutes, but a majority of Councilors can vote to extend that time. AMC 2.04.050D.2. f. Public testimony at Regular Council business meetings is only one of the available forms of input from citizens. Correspondence and direct personal conversations with Councilmembers (except on quasi-judicial land use matters) can be at least as helpful to elected decision-makers as necessarily time-limited statements at formal Council meetings. Alternative Conclusions to Consider: a. As with Study Sessions, make 15 minutes the standard time for public testimony at business meetings, but allow a majority of Councilors to vote to extend that time. b. Allow citizens the 15 minutes for presentation, but allow Councilmembers unlimited time for follow-up dialogue with and exploratory questioning of presenters. c. Invite multiple citizen advocates for a particular position to testify "together" under an agreement to take less overall time than if each one signed up to speak separately. 14. Question: At what point during consideration of a scheduled agenda item, should members of the public be invited to present their views on the item? Staff-Suggested Conclusion: Following staff's initial presentation on an agenda item and Councilmembers' opportunity to ask staff clarifying questions, members of the public should be invited to present their views. Then Council should begin deliberation on the agenda item, either in the form of general colloquy or in the form of specific motions and debate. During this period of Council deliberation, members of the staff or invited "experts" may present additional information to the Council in response to a specific request from a Councilmember; during such Council deliberation, additional testimony from members of the public should be allowed only after a successful motion to suspend the rules. [4] Points and. Authorities a_._ Clear guidelines on when members of the public and staff can make oral presentations on agenda items would likely facilitate efficient decision-makingand reduce frustrations b. To avoid distraction, once Council deliberation begins,additional external input shout b limited to specific information requested by Councilmembers for purposes of making a e T.._ considered decision, and not for advocacy purpo Alternar-- tive Conclusion to Consider! a. A successful motion to suspend the rules could be required for any presentation of additional information by anybody notion the Council during the period of Council d lied lie beration:l uestion: If a person goes to the trouble to provide public input ona matter, should the Council respond to that !input immediately after? During Council's deliberation on the matter? Staff-Suggested Conclusion: Councilmembers should refrain from responding to Public Forum oy agenda item testimony by members of the public; exceptupon approval by the presiding officer in response to aCgj ncilgr ss request to correct a potentially misleading error in a purported statement of 'fact. Points and Authorities~ a. Unless an erroneous statement needs to be corrected in order to avoid pub icl misunderstandingor confusion; engaging in dialogue or debate with members of the public at Council meetings would likely-increase the contentiousness and duration of meetings b. Allowing dialogue on some topics with some presenters but denying that opportunity in other instances would be inequitable) c. Members of the genesal public have opportunities fororal and writterrinput at public meetings,and in other venues; Councilmembers are elected to make their best judgments omCouncil business matters after personally weighing both public input and other consid`- eration 15. uestion: Should follow-up questioning of speakers be permitted without suspension of Council Rules? Council Conclusion (11/20/17): Follow-up questions or responses by Councilmembers should be allowed without suspension of the rules (1) in Study Sessions; and (2) when the speaker is a subject matter expert invited by staff or Council to make a presentation. Follow-up questions or responses by Councilmembers should not be allowed with respect to testimony by members of the public during Public Forum or during testimony on agenda items except in unusual circumstances and after suspension of the rules. However, Councilmembers or City staff may be recognized by the presiding officer following testimony by members of the public for purposes of correcting for the record any patent errors of fact. 16. Following a presentation to Council from staff or an invitee, should members of the public be permitted to direct arguments or questions to the presenter? [5] 17. If discussion of an agenda item begins in one meeting and is continued to a subsequent meeting, should a member of the general public who spoke before the Council at the first meeting have opportunity to speak before the Council on the same topic at the subsequent meeting? 18. Should a citizen's wish to testify on a matter on the Consent Agenda automatically cause the item to be pulled from the Consent Agenda for separate consideration by the Council, including public testimony? 19. How should Councilmembers and staff respond to citizens' correspondence sent directly to the entire Council? Sent to the City Administrator or the department director with copies to the entire Council? Sent to the City website? Sent Directly to an individual Councilmember? 20. Should the Council adopt formal guidelines for those attending and making presentations at Council meetings? DELIBERATION RULES 21. Question: Should every Councilor get a "turn" to speak on an issue before any Councilor gets a follow-up turn? Council Conclusion (11/20/17): During Council business meetings, every Councilor should get a turn to speak about an issue under consideration before any other Councilor gets a follow-up turn. During Study Sessions however, this rule should not be observed. 22. How should the Council's deliberation rule against negative remarks about the motivations or traits of others (AMC 2.04.040C.2) and the rule against criticizing any person in public meetings or emails (AMC 2.04.070D) be enforced? 23. Should the list of rules that Council can suspend be expanded? 24. How should a Councilor seek a suspension of Council rules? 25. Should suspension of the rules always require a formal vote? COUNCILMEMBER REQUESTS FOR INFORMATION OR ACTIONS FROM STAFF 26. Outside of a meeting, how should a Councilor go about getting information from staff if the request likely to require no more than two hours of staff time? If the request is likely to require more than two hours of staff time? 27. How should an employee handle a request for information that is likely to require more than 2 hours of staff time? 28. Is the two-hour rule appropriate? 29. Question: Should staff's response to a Councilor's inquiry always be sent to all Councilmembers? Council Conclusion (413118): Staff should provide all the Councilmembers copies of any responses to a Councilmember's inquiries or suggested guidance. 30. Question: Should Councilmembers contact staff with questions or concerns about agenda items for upcoming meetings in advance of the meetings? i [6] Council Conclusion (4/3/18): If possible, after receiving agenda packets, Councilors with questions or concerns they would like to have addressed at an upcoming meeting should so advise the relevant staff presenters or the City Administrator in advance of the meeting. 31. What protocols, if any, should Councilmembers observe for questioning or making suggestions to staff other than Department Heads and those in the office of the City Administrator? MISCELLANY 32. Should individual Councilors serve as Council liaisons to the various City departments, similar to their roles as liaisons to City advisory bodies? 33. Could changes be made to the Look Ahead to enhance its usefulness to Councilmembers? 34. What role should Councilmembers play in hiring for positions below Department Head level? 35. Should the current format for proposed ordinances and resolutions be revised? 36. What should enforcement consist of in the event of noncompliance with the rule against negative personal remarks about the motivations of others (AMC 2.04.040C (2) and (3) or noncompliance with the rule against criticizing any person (or staff) in public meetings or emails (AMC 2.04.080D and E)? I [7]