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~. ' Mr. Panty, Director of Finance October 30,2008 Page 2 .:. Full Cost Identification. Cost allocation plans are important accounting tools for local agencies. However, cost plans that aren't prepared well, or aren't explained well to clients turn out to be large bound stacks of paper. The cost plan has the potential to not only return significant revenue to the organization's general fund from other levels of government, but they can also play other roles (user fee unintended subsidy reduction, outsourcing, etc.) via developing knowledge of full costs. MGT will ensure that the City's staff is fully versed on how to read, use and update the cost plan prepared by our firm. .:. Transparency. The MGT cost allocation methodology and system are completely transparent to our clients. There are no black box solutions in our process. MGT has a customized communication plan, clearly identified data sharing and client review steps, and proprietary software management comparison tools that enable the City and MGT to compare data across fiscal years (once two years of good data are available). Every number in an MGT plan is traceable and auditable, producing a completely transparent process and deliverable. .:. Simplified and Consistent Data. Both our cost allocation plan and user fee models build data from "the ground up." This reduces year-to-year fluctuations in both charges and fees. The output can be converted to percentages which create automatic consistency even in fluctuating funding situations. The goal of a MGT study is to deliver an analysis that will withstand any level of scrutiny, but is not unjustifiably complicated. Transparency is better than obfuscation; simplicity is better than complexity. MGT studies are successfully implemented because we understand the difference. While other consulting firms tout cost allocation plan experience, how much of that experience comes from actually preparing cost allocation plans, versus simply reviewing existing cost plans? How much of the experience claimed comes from working in a long-term consulting relationship with a local agency that is based on trust and a mutual understanding of City objectives? How often have these staff members successfully defended a cost allocation plan at any level? Other firms may also have long client lists, but how many of those clients were actually served by the current staff at that firm? There are no smoke and mirrors with our proposal. The proposed MGT team has actually prepared over one hundred cost allocation plans, far more than any other group of consultants from any other firm. Our firm proposes on a select number of projects per year because spreading a consulting staff too thin produces inconsistent results. We hope that Redwood City chooses MGT of America, Inc. for this project and becomes a raving fan of our services. I have reviewed the City's RFP in its entirety, including the insurance checklist and sample agreement. We are willing to provide the insurance as required. Please contact me if you have any questions or comments about this proposal at 916-595-2646, or email bburgess@mgtamer.com. As the Partner responsible for the Western Region Costing Services Division, I have reviewed this proposal and commit the firm to its contents. Thank you, ({T~-ff7~--"" --x ~.t "- (/"' . ~"j-'""~-~ Brad Burgess, Partner MGT of America, Inc. www.mgtamer.com