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APR 0 4 '1989 dm q DAVID. GRIFFITH AND ASSO~IA TE~!~?L~'~D. PROFESSIONAL SERVICES TO THE PUBLIC SECTOR 1100 LOGGER COURT, SUITE D-lO0 RALEIGH, NORTH CAROLINA 27609 (919) 876-8042 March 31, 1989 Mr. Michael Ruffin Cabarrus County Manager Courthouse, Box 707 Concord, North Carolina 28025 Dear Mr. Ruffin: Office of Management and Bndget Publication A-87 requires that a new cost alloca- tion plan be developed each year. Therefore, we propose to prepare your 1989 cost alloca- tion plan update for a fee as indicated in the attached contract. For the past eight years, we have been able to maintain the same fee by absorbing the rising costs of doing business. However, with the continuing increases of salaries, hotel rates, meal costs and travel ex- penses, we are forced to raise our fees slightly. We are proposing an increase of five per- cent (5%) or less over last year's amount. We think that the increase in recoveries will more than offset the slight fee increase. If this presents a problem, please give us a call. Many of our clients are now using the cost allocation plan as a means to increase or develop new revenue sources, primarily in the areas of user fees, rental rates, jail fees and charges to enterprise funds. We have recently completed user fee studies in Iredell, Durham, Hertford, Bladen and Person counties. We are currently conducting user fee stud- ies in the City of Winston-Salem and Orange, Onslow and Ashe counties. In addition, the Raleigh Office has condncted major user fee studies in numerous cities and counties in Florida and Virginia. Significant revent, es are available by charging full costs for services such as landfill operations, EMS, planning, zoning, inspections, environmental health, etc. DMG is now offering a comprehensive review of Solid Waste operations, to include analyses of the collection and disposal of refuse and the establishment of tipping or landfill fees. The addition of Mr. John House and Mr. O. W. (Bill) Strickland to our staff brings a vast amount of knowledge and experience to DMG.