HomeMy WebLinkAboutC-8951-1 - PSA for Citywide User Fee Study and Cost Allocation Plan Servicesi
Qr AMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT
V WITH CLEARSOURCE FINANCIAL CONSULTING FOR
CITYWIDE USER FEE STUDY AND COST ALLOCATION PLAN SERVICES
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. One") is made and entered into as of this 2nd day of November, 2023
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and CLEARSOURCE FINANCIAL
CONSULTING, a California corporation ("Consultant"), whose address is 7960 B Socluel
Drive, Suite 363, Aptos, CA 95003, and is made with reference to the following:
RECITALS
A. On September 13, 2022, City and Consultant entered into a Professional Services
Agreement ("Agreement") to perform a Citywide User Fee Study & Cost Allocation
Plan Services ("Project").
B. The parties desire to enter into this Amendment No. One to reflect additional
Services not included in the Agreement and to increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be supplemented to include the Scope of
Services, attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). Exhibit A to the Agreement, and Exhibit A to this Amendment No. One shall
collectively be known as "Exhibit A." The City may elect to delete certain Services within
the Scope of Services at its sole discretion.
2. COMPENSATION TO CONSULTANT
Exhibit B to the Agreement shall be supplemented to include the Schedule of
Billing Rates, attached hereto as Exhibit B and incorporated herein by reference. Exhibit
B to the Agreement, and Exhibit B to Amendment No. One shall collectively be known as
"Exhibit B."
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and the Schedule of Billing
Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's
compensation for all Work performed in accordance with this Agreement, including all
reimbursable items and subconsultant fees, shall not exceed Three Hundred Seven
Thousand Four Hundred Ninety Dollars and 00/100 ($307,490.00), without prior
written authorization from City. No billing rate changes shall be made during the term of
this Agreement without the prior written approval of City."
The total amended compensation reflects Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed
Eight Thousand Eight Hundred and Eighty Dollars and 00/100 ($8,880.00).
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
ClearSource Financial Consulting Page 2
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: /o-- 3 /- 2-3
CITY OF NEWPORT BEACH,
a California mu icipal corporation
Date: (, � %1 1 � ?--"j
By: By:
,Agr n C. arp pjx Grace' , . eung
y Atto ne "a/3,1 City Manager
3
ATTEST:
Date:
r
CONSULTANT: ClearSource Financial
Consulting, a California corporation
Date:
Signed in Counterpart
Bv:
Terry Madsen
Chief Executive Officer, Chief Financial
Officer
Date:
Bv:
Signed in Counterpart
c�P Bethany Madsen
Secretary
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
ClearSource Financial Consulting Page 3
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: lo- 3 /- 23
CITY OF NEWPORT BEACH,
a California municipal corporation
Date: 111 0117-a ?i 3
By: By: 2�
r n C. arp Ms Gr e . Leung
y Atto ne Ja/3,�� y-�anager
3
ATTEST:
Date:
Leilani I. Brown
City Clerk
Attachments
CONSULTANT: ClearSource Financial
Consulting, a California corporation
Date: I -Lbz3
Terry Madsen
Chief Executive Officer, Chief Financial
Officer
Date: % k
By: `53 " c.-A.oR.r.--
Bethany Madsen
Secretary
[END OF SIGNATURES]
Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
ClearSource Financial Consulting Page 3
EXHIBIT
SCOPE OF SERVICES
ClearSource Financial Consulting Page A-1
deorVsource
F- _ I .> L , CI ''' 15 U_ 1 v
September 27, 2023
CITY OF NEWPORT BEACH
Attention: Shelby Burguan I Budget Manager, Finance Department
Attention: Eric Wilson I Budget Analyst, Finance Department
100 Civic Center Drive
Newport Beach, California 92660
DIGITAL TRANSMISSION TO: SBURGUAN@NEWPORTBEACH CA.GOV AND EWILSON@NEWPORTBEACHCA.GOV
PROPOSED CONTRACT AMENDMENT:
PUBLIC WORKS STREETS MAINTENANCE OF EFFORT COST ALLOCATION PLAN
To Shelby Burguan and Eric Wilson:
Following a recent request from the Finance and Public Works Departments, ClearSource is submitting this
description of proposed amendments to our existing professional services agreement with the City of
Newport Beach to perform financial analysis which develops the allocation of costs attributable to Public
Works Streets Maintenance of Effort (MOE). This analysis is necessary for cost recovery within gas tax
revenues, such as those accounted for in Measure M and/or SB 1 funds, consistent with the California State
Controller's Guidelines Relating to Gas Tax Expenditures for Cities and Counties. This project will be referred
to in this document as "Streets MOE Cost Allocation Plan (CAP)."
Expanded Scope of Services
APPLICABILITY OF EXISTING CONTRACT I In 2022, the City of Newport Beach completed a
competitive procurement process to award a professional services agreement to ClearSource Financial
Consulting to perform a Citywide User Fee Study and Cost Allocation Plan Services. During that project and
continuing engagements into Fiscal Year 2023-2024, ClearSource developed various cost of service and
cost allocation analyses to support assorted cost recovery mechanisms used by the City, including user and
regulatory fees and overhead charges. Analysis spanned the City's entire organizational structure and
employed consistent methodology for reflecting "full costs" of service eligible for cost recovery under City -
controlled measures.
Aspects of these various consulting work products are directly relevant to the prospective Streets MOE Cost
Allocation Plan. Of particular benefit are the analytical models developed for the Citywide Indirect Cost
Allocation Plan and the Indirect Cost Allocation Plan, Tidelands iteration. With the methodology refined under
these two analyses and the models in place, the Streets MOE CAP should be an efficiently generated work
product.
7960 B Soquel Drive, Suite 363, Aptos, California 95003
CLEARSOURCEFINANCIAL.00M
PROJECT UNDERSTANDING I The City of Newport Beach is required to periodically justify its allocation of
operating costs — labor and non -labor expenses accounted for in certain General Fund Public Works divisions
— between Streets MOE related activity and all other activity of the divisions analyzed. The City is requesting
professional consulting services to assist it in documenting these allocated costs using the most recently
available and eligible expenditure basis, updated review and analysis of labor time across the involved
divisions, updated analysis of allocable non -labor cost items, and applicability of any additional eligible
indirect cost recovery for this activity. The City requires currently issued documentation consistent with
prevailing guidelines for recovery of these costs. As with our other associated services, ClearSource also
understands that the City expects analysis and discussion of changes from prior plans. The City expects these
consulting services to be initiated and completed within the first half of Fiscal Year 2023-2024. ClearSource
will be collaborating with and responsible to both the Public Works and Finance Departments to complete
these services.
CLEARSOURCE WORK PLAN AND DELIVERABLES ( To complete the City's required scope of
services, ClearSource proposes to perform the following tasks and deliver the described work products:
Orientation and Data Collection: ClearSource will commence the study by confirming expected
deliverables and time requirements, as well as understanding issues to be addressed by study end.
Consultants will work with City staff to gather current and historical financial data, labor data,
workload/activity data, and other information sets to be used in the analysis.
Labor Time Analysis: ClearSource will draw upon existing information in previous cost allocation studies
to illustrate current labor assumptions embedded in existing Streets MOE cost allocations. ClearSource
will then engage with Public Works Department staff at various levels to develop a revised/current labor
profile for the expected activities. Revised allocations will be reconciled against allocations applied in
other ClearSource work products, such as user fee labor assumptions and labor distributions for
Tidelands accounting, to ensure internal consistency. If data tracked in any City systems is exportable and
useful in this effort, ClearSource will parse information, relate it to labor time estimates, and determine if
and how to combine recorded data and estimated assumptions developed. This task will conclude with a
distribution of individual labor positions and associated allocation factors.
Cost Item Analysis: ClearSource will analyze object -level non -labor expenditures in the relevant divisions
and determine an appropriate basis for allocating across the expected activities, either by utilizing labor
allocation factors or examining sub -object expenses to directly assign or alternatively allocate costs to the
activities. This task will conclude with a distribution of eligible non -labor expenses.
Indirect Cost Determination: ClearSource will research previous City -published Streets MOE CAPS for
established policy or practice, as well as prevailing State guidelines for allowed use of gas tax revenues,
to determine any additional indirect cost recovery that may be pursued related to reasonable support of
the direct service divisions performing Streets MOE activity.
Cost Allocation Plan Development: ClearSource will adapt most recent existing Citywide and Tidelands
cost allocation models — the mechanical analysis — for use in applying Streets MOE CAP inputs developed
in previous steps. The new Streets MOE CAP will document expenditure basis, labor inputs, non -labor
inputs, indirect costs eligible, allocation bases, and total allocated costs to Streets MOE for the fiscal year
application. This CAP model will be delivered to the City in publishable format (PDF) and editable format
(Excel) for the City's use and ownership.
CLEARSOURCERNANCIAL. COM
:) Documentation of Outcomes and Change: ClearSource will prepare a technical letter documenting the
outcomes of the Streets MOE CAP and providing discussion of reasons for change over prior allocations
implemented by the City. Documentation will be routed to City staff for review and will be subsequently
revised if necessary based on any actionable commentary.
Review and Engagement: Throughout the study, ClearSource will be engaging Public Works and Finance
staff at appropriate points and to varying degrees to ensure collaboratively attained outcomes and wide
understanding and agreement of impacts and/or change. At the City's discretion, ClearSource will engage
with other relevant internal or external stakeholders to the outcomes. ClearSource imposes no limits on
the number of meetings for this study to accomplish the defined Scope of Services.
TIMELINE FOR WORK PLAN I Exhibit 1 illustrates a timeline for study completion by work plan task
described earlier, including duration of analytical elements, estimated events, and delivery of documentation.
EXHIBIT 1 1 PROJECT TIMELINE BY WORK PLAN TASK
PUBLIC WORKS STREETS MAINTENANCE OF EFFORT COST ALLOCATION PLAN
Orientation & Data Collection n/a
2 1 Labor Time Analysis
3 1 Cost Item Analysis _
4 1 Indirect Cost Determination _
5 I Cost Allocation Plan Development
6 Documentation of Outcomes and Change _
n/a
n/a
n/a
n/a
n/a
7 1 Review and Engagement ®� , + Days TBD
■Data Development, Analysis, and Reporting Tasks ♦ Event (No limits on number.)
Timing at City's Discretion * Deliverable
Schedule (No Term Extension Needed)
ClearSource forecasts to deliver the final documentation of this study within 60 days of notice to proceed.
The term of our existing contract with the City does not need to be revised to accommodate this additional
scope of services. The current contract terminates September 12, 2025.
CLEARS0URCEFINANCIAL.00M
EXHIBIT B
SCHEDULE OF BILLING RATES
ClearSource Financial Consulting Page B-1
Exhibit B
Additional Consulting Fee
Based on the expanded scope of services described above, ClearSource proposes an addition of $8,880 to
the original consulting fee in our current professional services agreement, as illustrated by the calculation in
Exhibit 2.
This expanded fee will complete the Streets MOE CAP for one fiscal year. ClearSource has a multi -year
contract of repeating service for the City (i.e., updates to other cost allocation plans and user fee analyses).
Should the City wish to add a future Streets MOE CAP within the existing term of our contract, this consulting
fee will need to be revised to accommodate forecasted subsequent years of service.
EXHIBIT B I CONSULTING FEE FOR EXPANDED SERVICES
Madsen Hahn I Schroeder
1 1 Orientation & Data Collection
1
2
3
6
$
1,110
2 Labor Time Analysis
0
6
2
8
$
1,480
3 1 Cost Item Analysis
1
5
2
8
$
1,480
4 Indirect Cost Determination
1
3
0
4
$
740
5 Cost Allocation Plan Development
1
6
1
8
$
1,480
6 Documentation of Outcomes and Change
1
8
1
10
$
1,850
7 Review and Engagement
1
3
0
4
$
740
CLEARS0URCEFINANCIAL.00M
U)
�37_ PROFESSIONAL SERVICES AGREEMENT
OJ WITH CLEARSOURCE FINANCIAL CONSULTING FOR
CITYWIDE USER FEE STUDY AND COST ALLOCATION PLAN SERVICES
v
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and
entered into as of this 13th day of September, 2022 ("Effective Date"), by and between
the CITY OF NEWPORT BEACH, a California municipal corporation and charter city
("City"), and CLEARSOURCE FINANCIAL CONSULTING, a California corporation
("Consultant"), whose address is 980 Green Valley Road, Watsonville, California 95076,
with mailing address of 7960 Soquel Drive, Suite B363, Aptos, California 95003, and is
made with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. City desires to engage Consultant to perform a Citywide User Fee Study & Cost
Allocation Plan Services ("Project").
C. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the professional services described in this Agreement.
D. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
11140 it
1.1. The term of this Agreement shall commence on the Effective Date, and shall
terminate on September 12, 2025, unless extended or terminated earlier as set forth
herein.
1.2. City shall have the option, at its sole discretion, to extend the term of this
Agreement for two (2) additional successive terms of one (1) year, the first commencing
on the expiration of the initial term, on the same terms and conditions as contained in this
Agreement. City may exercise the option to extend the term of this Agreement by
providing written notice to the Consultant thirty (30) days prior to the termination date of
the current term.
2. SERVICES TO BE PERFORMED
Consultant shall diligently perform all the services described in the Scope of
Services attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). City may elect to delete certain Services within the Scope of Services at its
sole discretion.
3. TIME OF PERFORMANCE
3.1 Time is of the essence in the performance of Services under this Agreement
and Consultant shall perform the Services in accordance with the schedule included in
Exhibit A. In the absence of a specific schedule, the Services shall be performed to
completion in a diligent and timely manner. The failure by Consultant to strictly adhere to
the schedule set forth in Exhibit A, if any, or perform the Services in a diligent and timely
manner may result in termination of this Agreement by City.
3.2 Notwithstanding the foregoing, Consultant shall not be responsible for
delays due to causes beyond Consultant's reasonable control. However, in the case of
any such delay in the Services to be provided for the Project, each party hereby agrees
to provide notice within two (2) calendar days of the occurrence causing the delay to the
other party so that all delays can be addressed.
3.3 Consultant shall submit all requests for extensions of time for performance
in writing to the Project Administrator as defined herein not later than ten (10) calendar
days after the start of the condition that purportedly causes a delay. The Project
Administrator shall review all such requests and may grant reasonable time extensions
for unforeseeable delays that are beyond Consultant's control.
3.4 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the circumstances, by
hand -delivery or mail.
4. COMPENSATION TO CONSULTANT
City shall pay Consultant for the Services on a time and expense not -to -exceed basis in
accordance with the provisions of this Section and the Schedule of Billing Rates attached
hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for
all Work performed in accordance with this Agreement, including all reimbursable items
and subconsultant fees, shall not exceed Two Hundred Ninety Eight Thousand Six
Hundred Ten Dollars and 00/100 ($298,610.00), without prior written authorization from
City. No billing rate changes shall be made during the term of this Agreement without the
prior written approval of City.
4.3 Consultant shall submit monthly invoices to City describing the Work
performed the preceding month. Consultant's bills shall include the name of the person
who performed the Work, a brief description of the Services performed and/or the specific
task in the Scope of Services to which it relates, the date the Services were performed,
the number of hours spent on all Work billed on an hourly basis, and a description of any
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reimbursable expenditures. City shall pay Consultant no later than thirty (30) calendar
days after approval of the monthly invoice by City staff.
4.4 City shall reimburse Consultant only for those costs or expenses specifically
identified in Exhibit B to this Agreement or specifically approved in writing in advance by
City.
4.5 Consultant shall not receive any compensation for Extra Work performed
without the prior written authorization of City. As used herein, "Extra Work" means any
Work that is determined by City to be necessary for the proper completion of the Project,
but which is not included within the Scope of Services and which the parties did not
reasonably anticipate would be necessary at the execution of this Agreement.
Compensation for any authorized Extra Work shall be paid in accordance with the
Schedule of Billing Rates as set forth in Exhibit B.
5. PROJECT MANAGER
5.1 Consultant shall designate a Project Manager, who shall coordinate all
phases of the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Consultant has designated Terry Madsen to be its
Project Manager. Consultant shall not remove or reassign the Project Manager or any
personnel listed in Exhibit A or assign any new or replacement personnel to the Project
without the prior written consent of City. City's approval shall not be unreasonably
withheld with respect to the removal or assignment of non -key personnel.
5.2 Consultant, at the sole discretion of City, shall remove from the Project any
of its personnel assigned to the performance of Services upon written request of City.
Consultant warrants that it will continuously furnish the necessary personnel to complete
the Project on a timely basis as contemplated by this Agreement.
5.3 If Consultant is performing inspection services for City, the Project Manager
and any other assigned staff shall be equipped with a cellular phone to communicate with
City staff. The Project Manager's cellular phone number shall be provided to City.
6. ADMINISTRATION
This Agreement will be administered by the Finance. City's Deputy Finance
Director or designee shall be the Project Administrator and shall have the authority to act
for City under this Agreement. The Project Administrator shall represent City in all matters
pertaining to the Services to be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
To assist Consultant in the execution of its responsibilities under this Agreement,
City agrees to provide access to and upon request of Consultant, one copy of all existing
relevant information on file at City. City will provide all such materials in a timely manner
so as not to cause delays in Consultant's Work schedule.
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8. STANDARD OF CARE
8.1 All of the Services shall be performed by Consultant or under Consultant's
supervision. Consultant represents that it possesses the professional and technical
personnel required to perform the Services required by this Agreement, and that it will
perform all Services in a manner commensurate with community professional standards
and with the ordinary degree of skill and care that would be used by other reasonably
competent practitioners of the same discipline under similar circumstances. All Services
shall be performed by qualified and experienced personnel who are not employed by City.
By delivery of completed Work, Consultant certifies that the Work conforms to the
requirements of this Agreement, all applicable federal, state and local laws, and legally
recognized professional standards.
8.2 Consultant represents and warrants to City that it has, shall obtain, and shall
keep in full force and effect during the term hereof, at its sole cost and expense, all
licenses, permits, qualifications, insurance and approvals of whatsoever nature that is
legally required of Consultant to practice its profession. Consultant shall maintain a City
of Newport Beach business license during the term of this Agreement.
8.3 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by reason of strikes,
lockouts, accidents, acts of God, or the failure of City to furnish timely information or to
approve or disapprove Consultant's Work promptly, or delay or faulty performance by
City, contractors, or governmental agencies.
9. HOLD HARMLESS
9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend
and hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers and employees (collectively, the "Indemnified Parties") from and against any
and all claims (including, without limitation, claims for bodily injury, death or damage to
property), demands, obligations, damages, actions, causes of action, suits, losses,
judgments, fines, penalties, liabilities, costs and expenses (including, without limitation,
attorneys' fees, disbursements and court costs) of every kind and nature whatsoever
(individually, a Claim, collectively, "Claims"), which may arise from or in any manner relate
(directly or indirectly) to any breach of the terms and conditions of this Agreement, any
Work performed or Services provided under this Agreement including, without limitation,
defects in workmanship or materials or Consultant's presence or activities conducted on
the Project (including the negligent, reckless, and/or willful acts, errors and/or omissions
of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants,
subcontractors, anyone employed directly or indirectly by any of them or for whose acts
they may be liable, or any or all of them), and/or if it is subsequently determined that an
employee of Consultant is not an independent contractor.
9.2 Notwithstanding the foregoing, nothing herein shall be construed to require
Consultant to indemnify the Indemnified Parties from any Claim arising from the sole
negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall
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be construed as authorizing any award of attorneys' fees in any action on or to enforce
the terms of this Agreement. This indemnity shall apply to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act
as a limitation upon the amount of indemnification to be provided by Consultant.
10. INDEPENDENT CONTRACTOR
10.1 It is understood that City retains Consultant on an independent contractor
basis and Consultant is not an agent or employee of City. The manner and means of
conducting the Work are under the control of Consultant, except to the extent they are
limited by statute, rule or regulation and the expressed terms of this Agreement. No civil
service status or other right of employment shall accrue to Consultant or its employees.
Nothing in this Agreement shall be deemed to constitute approval for Consultant or any
of Consultant's employees or agents, to be the agents or employees of City. Consultant
shall have the responsibility for and control over the means of performing the Work,
provided that Consultant is in compliance with the terms of this Agreement. Anything in
this Agreement that may appear to give City the right to direct Consultant as to the details
of the performance of the Work or to exercise a measure of control over Consultant shall
mean only that Consultant shall follow the desires of City with respect to the results of the
Services.
10.2 Consultant agrees and acknowledges that no individual performing
Services or Work pursuant to this Agreement shall: work full-time for more than six (6)
months; work regular part-time service of at least an average of twenty (20) hours per
week for one year or longer; work nine hundred sixty (960) hours in any fiscal year; or
already be a CalPERS member.
11. COOPERATION
Consultant agrees to work closely and cooperate fully with City's designated
Project Administrator and any other agencies that may have jurisdiction or interest in the
Work to be performed. City agrees to cooperate with the Consultant on the Project.
12. CITY POLICY
Consultant shall discuss and review all matters relating to policy and Project
direction with City's Project Administrator in advance of all critical decision points in order
to ensure the Project proceeds in a manner consistent with City goals and policies.
13. PROGRESS
Consultant is responsible for keeping the Project Administrator informed on a
regular basis regarding the status and progress of the Project, activities performed and
planned, and any meetings that have been scheduled or are desired.
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14. INSURANCE
Without limiting Consultant's indemnification of City, and prior to commencement
of Work, Consultant shall obtain, provide and maintain at its own expense during the term
of this Agreement or for other periods as specified in this Agreement, policies of insurance
of the type, amounts, terms and conditions described in the Insurance Requirements
attached hereto as Exhibit C, and incorporated herein by reference.
15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the Services to be
provided under this Agreement shall not be assigned, transferred contracted or
subcontracted out without the prior written approval of City. Any of the following shall be
construed as an assignment: The sale, assignment, transfer or other disposition of any
of the issued and outstanding capital stock of Consultant, or of the interest of any general
partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or
joint -venture or syndicate or co -tenancy, which shall result in changing the control of
Consultant. Control means fifty percent (50%) or more of the voting power or twenty-five
percent (25%) or more of the assets of the corporation, partnership or joint -venture.
16. SUBCONTRACTING
The subcontractors authorized by City, if any, to perform Work on this Project are
identified in Exhibit A. Consultant shall be fully responsible to City for all acts and
omissions of any subcontractor. Nothing in this Agreement shall create any contractual
relationship between City and any subcontractor nor shall it create any obligation on the
part of City to pay or to see to the payment of any monies due to any such subcontractor
other than as otherwise required by law. City is an intended beneficiary of any Work
performed by the subcontractor for purposes of establishing a duty of care between the
subcontractor and City. Except as specifically authorized herein, the Services to be
provided under this Agreement shall not be otherwise assigned, transferred, contracted
or subcontracted out without the prior written approval of City.
17. OWNERSHIP OF DOCUMENTS
17.1 Each and every report, draft, map, record, plan, document and other writing
produced, including but not limited to, websites, blogs, social media accounts and
applications (hereinafter "Documents"), prepared or caused to be prepared by Consultant,
its officers, employees, agents and subcontractors, in the course of implementing this
Agreement, shall become the exclusive property of City, and City shall have the sole right
to use such materials in its discretion without further compensation to Consultant or any
other party. Additionally, all material posted in cyberspace by Consultant, its officers,
employees, agents and subcontractors, in the course of implementing this Agreement,
shall become the exclusive property of City, and City shall have the sole right to use such
materials in its discretion without further compensation to Consultant or any other party.
Consultant shall, at Consultant's expense, provide such Documents, including all logins
and password information to City upon prior written request.
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17.2 Documents, including drawings and specifications, prepared by Consultant
pursuant to this Agreement are not intended or represented to be suitable for reuse by
City or others on any other project. Any use of completed Documents for other projects
and any use of incomplete Documents without specific written authorization from
Consultant will be at City's sole risk and without liability to Consultant. Further, any and
all liability arising out of changes made to Consultant's deliverables under this Agreement
by City or persons other than Consultant is waived against Consultant, and City assumes
full responsibility for such changes unless City has given Consultant prior notice and has
received from Consultant written consent for such changes.
17.3 All written documents shall be transmitted to City in formats compatible with
Microsoft Office and/or viewable with Adobe Acrobat.
18. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the Services in this Agreement, shall be kept confidential
unless City expressly authorizes in writing the release of information.
19. INTELLECTUAL PROPERTY INDEMNITY
Consultant shall defend and indemnify City, its agents, officers, representatives
and employees against any and all liability, including costs, for infringement or alleged
infringement of any United States' letters patent, trademark, or copyright, including costs,
contained in Consultant's Documents provided under this Agreement.
20. RECORDS
Consultant shall keep records and invoices in connection with the Services to be
performed under this Agreement. Consultant shall maintain complete and accurate
records with respect to the costs incurred under this Agreement and any Services,
expenditures and disbursements charged to City, for a minimum period of three (3) years,
or for any longer period required by law, from the date of final payment to Consultant
under this Agreement. All such records and invoices shall be clearly identifiable.
Consultant shall allow a representative of City to examine, audit and make transcripts or
copies of such records and invoices during regular business hours. Consultant shall allow
inspection of all Work, data, Documents, proceedings and activities related to the
Agreement for a period of three (3) years from the date of final payment to Consultant
under this Agreement.
21. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction of
the dispute with respect to such payment. Such withholding shall not be deemed to
constitute a failure to pay according to the terms of this Agreement. Consultant shall not
discontinue Work as a result of such withholding. Consultant shall have an immediate
right to appeal to the City Manager or designee with respect to such disputed sums.
Consultant shall be entitled to receive interest on any withheld sums at the rate of return
ClearSource Financial Consulting Page 7
that City earned on its investments during the time period, from the date of withholding of
any amounts found to have been improperly withheld.
22. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than what would have
resulted if there were not errors or omissions in the Work accomplished by Consultant,
the additional design, construction and/or restoration expense shall be borne by
Consultant. Nothing in this Section is intended to limit City's rights under the law or any
other sections of this Agreement.
23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Consultants in connection with the Project.
24. CONFLICTS OF INTEREST
24.1 Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act") and/or Government Code §§ 1090 et
seq., which (1) require such persons to disclose any financial interest that may
foreseeably be materially affected by the Work performed under this Agreement, and (2)
prohibit such persons from making, or participating in making, decisions that will
foreseeably financially affect such interest.
24.2 If subject to the Act and/or Government Code §§ 1090 et seq., Consultant
shall conform to all requirements therein. Failure to do so constitutes a material breach
and is grounds for immediate termination of this Agreement by City. Consultant shall
indemnify and hold harmless City for any and all claims for damages resulting from
Consultant's violation of this Section.
25. NOTICES
25.1 All notices, demands, requests or approvals, including any change in
mailing address, to be given under the terms of this Agreement shall be given in writing,
and conclusively shall be deemed served when delivered personally, or on the third
business day after the deposit thereof in the United States mail, postage prepaid, first-
class mail, addressed as hereinafter provided.
25.2 All notices, demands, requests or approvals from Consultant to City shall
be addressed to City at:
Attn: Deputy Finance Director
Finance
City of Newport Beach
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658
ClearSource Financial Consulting Page 8
25.3 All notices, demands, requests or approvals from City to Consultant shall
be addressed to Consultant at:
Attn: Michael Tunink C/O Tunink Law Firm
ClearSource Financial Consulting
820 Bay Avenue, Suite 120
Capitola, CA 95076
26. CLAIMS
Unless a shorter time is specified elsewhere in this Agreement, before making its
final request for payment under this Agreement, Consultant shall submit to City, in writing,
all claims for compensation under or arising out of this Agreement. Consultant's
acceptance of the final payment shall constitute a waiver of all claims for compensation
under or arising out of this Agreement except those previously made in writing and
identified by Consultant in writing as unsettled at the time of its final request for payment.
Consultant and City expressly agree that in addition to any claims filing requirements set
forth in the Agreement, Consultant shall be required to file any claim Consultant may have
against City in strict conformance with the Government Claims Act (Government Code
sections 900 et seq.).
27. TERMINATION
27.1 In the event that either party fails or refuses to perform any of the provisions
of this Agreement at the time and in the manner required, that party shall be deemed in
default in the performance of this Agreement. If such default is not cured within a period
of two (2) calendar days, or if more than two (2) calendar days are reasonably required
to cure the default and the defaulting party fails to give adequate assurance of due
performance within two (2) calendar days after receipt of written notice of default,
specifying the nature of such default and the steps necessary to cure such default, and
thereafter diligently take steps to cure the default, the non -defaulting party may terminate
the Agreement forthwith by giving to the defaulting party written notice thereof.
27.2 Notwithstanding the above provisions, City shall have the right, at its sole
and absolute discretion and without cause, of terminating this Agreement at any time by
giving no less than seven (7) calendar days' prior written notice to Consultant. In the
event of termination under this Section, City shall pay Consultant for Services
satisfactorily performed and costs incurred up to the effective date of termination for which
Consultant has not been previously paid. On the effective date of termination, Consultant
shall deliver to City all reports, Documents and other information developed or
accumulated in the performance of this Agreement, whether in draft or final form.
28. STANDARD PROVISIONS
28.1 Recitals. City and Consultant acknowledge that the above Recitals are true
and correct and are hereby incorporated by reference into this Agreement.
ClearSource Financial Consulting Page 9
28.2 Compliance with all Laws. Consultant shall, at its own cost and expense,
comply with all statutes, ordinances, regulations and requirements of all governmental
entities, including federal, state, county or municipal, whether now in force or hereinafter
enacted. In addition, all Work prepared by Consultant shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be subject
to approval of the Project Administrator and City.
28.3 Waiver. A waiver by either party of any breach, of any term, covenant or
condition contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether of the
same or a different character.
28.4 Integrated Contract. This Agreement represents the full and complete
understanding of every kind or nature whatsoever between the parties hereto, and all
preliminary negotiations and agreements of whatsoever kind or nature are merged herein.
No verbal agreement or implied covenant shall be held to vary the provisions herein.
28.5 Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and the Scope of Services or any other
attachments attached hereto, the terms of this Agreement shall govern.
28.6 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or
against either party by reason of the authorship of the Agreement or any other rule of
construction which might otherwise apply.
28.7 Amendments. This Agreement may be modified or amended only by a
written document executed by both Consultant and City and approved as to form by the
City Attorney.
28.8 Severability. If any term or portion of this Agreement is held to be invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
28.9 Controlling Law and Venue. The laws of the State of California shall govern
this Agreement and all matters relating to it and any action brought relating to this
Agreement shall be adjudicated in a court of competent jurisdiction in the County of
Orange, State of California.
28.10 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee
or applicant for employment because race, religious creed, color, national origin,
ancestry, physical handicap, medical condition, marital status, sex, sexual orientation,
age or any other impermissible basis under law.
28.11 No Attorneys' Fees. In the event of any dispute or legal action arising under
this Agreement, the prevailing party shall not be entitled to attorneys' fees.
ClearSource Financial Consulting Page 10
28.12 Counterparts. This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute one (1) and the same instrument.
[SIGNATURES ON NEXT PAGE]
ClearSource Financial Consulting Page 11
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: </Zz
By:
ron C. Harp 2 ��
ity Attorney
ATTEST -
Z�DatDate: 1g�
e: /
1
By:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
Bkv
n Muldoon
Mayor
CONSULTANT: ClearSource Financial
Consulting, a California corporation
Date:
Signed in Counterpart
By:
Terry Madsen
Chief Executive Officer / Chief Financial
Officer
cgc�Foa�'�P
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Exhibit C — Insurance Requirements
ClearSource Financial Consulting Page 12
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: %12</2L
By:
a on C. arl
Attorney
ATTEST:
Date:
0
Leilani I. Brown
City Clerk
CITY OF NEWPORT (BEACH,
a California mL1)'1;11pal corporation
Date:_______—__.__.
By: _—
Kevin Muldoon
Mayor
CONSULTANT: ClearSource Financial
Consulting, a California corporation
Date: `►����vz
By: --,W'
Terry Mads n
Chief Executive Officer / Chief Financial
Officer
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Exhibit C — Insurance Requirements
ClearSource Financial Consulting Page 12
EXHIBIT A
SCOPE OF SERVICES
ClearSource Financial Consulting Page A-1
SCOPE OF SERVICES
SCOPE OF SERVICES
Objective:
Consultant shall provide the following user fee study and cost allocation plan services to the City,
under the direction of the Finance Department:
Minimum Qualifications:
• The required qualifications include at least five (5) years of experience delivering cost
studies for cost allocation plans and user fees for local governments.
• Have qualified personnel who have prerequisite knowledge and experience.
• Have at least three satisfactory references for similar services within past three years
OR have performed satisfactory work for City within past three years.
• Meet the insurance requirements detailed in this bid document.
Description:
Project Organization - The project shall be divided into the following six phases:
• Year 1 (FY 2022-23)
Update Community Development, Police, and Fire user fee studies
Full Update of citywide cost allocation plan
Full Update of Harbor Tidelands cost allocation plan
• Year 2 (FY 2023-24)
Update Finance (includes small subset of fees not attributable to a specific department
and categorized as "All Departments"), Harbor, Public Works, and Utilities user fee studies
Update citywide cost allocation plan (if optional task is exercised)
• Year 3 (FY 2024-25)
Update Library and Recreation & Senior Services user fee studies
Update citywide cost allocation plan (if optional task is exercised)
• Year 4 (FY 2025-26) (Should City Exercise Applicable Term Extension)
Update Community Development, Police, and Fire user fee studies
Full Update of citywide cost allocation plan
Full Update of Harbor Tidelands cost allocation plan
• Year 5 (FY 2026-27) (Should City Exercise Applicable Term Extension)
Update Finance (includes small subset of fees not attributable to a specific department),
Harbor, Public Works, and Utilities user fee studies
Update citywide cost allocation plan (if optional task is exercised)
User Fee Updates - For the user fee study departments described above and any other
department where user fee studies should be conducted, Consultant shall:
• Conduct a comprehensive review of existing fee schedule and rate structure for all
departments to determine whether the current schedule in place is consistent, objective,
and encompasses all areas where fees could be charged.
• Conduct a comprehensive review and provide recommendations on updates to the format
and presentation of the Schedule of Rents, Fines, and Fees as well as the format of
proposed fee changes to the public, Finance Committee, and City Council.
• Identify services for which the City is not currently charging, but could lawfully do so.
• Meet with staff and conduct interviews where appropriate to gain an understanding of the
City's existing fee structure, practices, operations, and current and future development
environment.
• Identify the total cost of providing each City service at the appropriate activity level and in
a manner that is consistent with all applicable laws, studies, rules and regulations
governing the collection of fees or charges provided for services.
• Review/revise all time estimates included in the previous studies and capture new time
estimates for new services.
• Update annual volume and revenue statistics for all fee services.
• Update all staffing and expenditure information.
• Update all cross -department support calculations.
• Compare existing recovery levels and fee for service costs, where the City is currently
charging for services.
• Recommend appropriate fees and charges for service where full cost recovery might be
unrealistic or undesirable.
• Provide revenue forecasting based on recommended fee levels.
• Update department overhead rates.
• Prepare the model for gathering data and updating the fees and charges for service for all
areas described above in a spreadsheet or database format that automatically
recalculates as items are input.
• Prepare a report that identifies each City service, its full cost, the costs currently being
recovered, and the recommended cost recovery levels. For each activity, the report should
define and identify direct and indirect costs.
• Prepare a report that evaluates the impact on City of Newport Beach revenues by fund,
department or division, and in total, of recommended changes in the fee and service
charge structure.
• Advise City staff on the model developed in determining appropriate fees and charges
based on program costs in the future.
• Prepare a report that compares the City's fee and service charges to similar cities selected
by the City with Consultant's input.
• Present initial findings and recommendations to management and adjust as necessary.
• Prepare a report to Finance Committee and City Council on findings and
recommendations to facilitate an understanding by the City Council and the Public of
methodologies, issues, and recommendations resulting from the fee study. City staff will
give all presentations to Finance Committee and City Council, and Consultant shall
provide offline support before and after to address any questions that arise.
• Provide final updated user fee study model and report, including supporting
files/documentation.
Cost Allocation Plan — For the full cost allocation plan update described above, Consultant shall:
• Establish a full cost allocation methodology for specific administrative overhead costs
that will properly reimburse the City's General Fund and estimate the anticipated
reimbursements to the General Fund.
• Review/update of all central service departments (add/remove any divisions).
• Prepare a report that identifies each City service, its full cost, the costs currently being
recovered, and the recommended cost recovery levels. For each activity, the report
should define and identify direct and indirect costs.
• Allow for additions, revisions, or removal of direct and indirect costs so that the cost
allocation plan can be easily adapted to a range of activities both simple and complex.
• Provide the ability to continuously update the plan from year-to-year to accommodate
organizational changes.
• Include, for purposes of determining the City's support of the Harbor Tidelands,
additional assessment of Fire, Police, Parking, and any other activities necessary (not
generally included in a central services cost allocation plan).
• Update cost plan structure/receiving departments to reflect the current City budget
structure.
• Update all functional areas within allocating departments.
• Update all staff time analyses within functional areas.
• Update all allocation basis used to allocate functional costs.
• Update expenditure data to reflect current budget (or previous year actuals).
• Compare allocations to prior cost plan results.
• Prepare a report that evaluates the impact on City of Newport Beach revenues by
fund, department or division, and in total, of recommended changes in the fee and
service charge structure.
• Advise City staff on the model developed in determining appropriate fees and charges
based on program costs in the future.
• Prepare a report that compares the City's fee and service charges to similar cities
selected by the City with Consultant's input.
• Present initial findings and recommendations to management and adjust as
necessary.
• Prepare and deliver to City Council a report on findings and recommendations, to
facilitate an understanding by the City Council and the Public of methodologies, issues,
and recommendations resulting from the fee study.
• Provide final cost allocation plan including supporting files/documentation.
Optional Task(s):
Annual updates to Cost Allocation Plan — For annual updates related to year-end reporting or for
budgetary purposes, Consultant shall:
• Update the cost plan with actual expenditure and budgetary information on an annual
basis.
EXHIBIT B
SCHEDULE OF BILLING RATES
ClearSource Financial Consulting Page B-1
CONSULTANT HOURLY RATE
Est. No.
Service
of Hours
Year 1
Year 2
Year 3
Year 4
Year 5
Community Development User
Fees
262
$24,570
$26,208
Police User Fees
42
$3,780
$4,368
Fire User Fees
116
$9,450
$13,104
Finance/Admin/AII Departments
User Fees
36
$3,402
$3,924
Harbor User Fees
144
$13,608
$15,696
Public Works User Fees
126
$11,907
$13,734
Utilities User Fees
54
$5,103
$5, 886
Library User Fees
24
$4,752
Recreation & Senior Services
User Fees
136
$26,928
Citywide Full Cost Plan
(including Harbor Tidelands)
570**
$32,400
$13,230*
$13,860*
$37,440
$15,260*
Other
Miscellaneous/Administrative
Costs (if applicable)
Annual Total
1,510
$70,200
$47,250**
$45,540**
$81,120
$54,500*
Contract Total
$298,610 max (*optional tasks)
* Optional Task
** Includes optional tasks.
Total Contract without Optional Tasks: $256,260
Total for Optional Tasks Only: $42,350
Total Maximum Consulting Fee Proposed: $298,610
Pricing provided shall include any and all labor; materials; equipment; supervision; travel
and expenses; and insurance to provide the services described in this RFP solicitation.
cleorl&-,source
June 2, 2022
CITY OF NEWPORT BEACH
Attention: Sander Huang, Purchasing and Contracts Administrator
100 Civic Center Drive
Newport Beach, California 92660
VIA ELECTRONIC TRANSMISSION: CITY OF NEWPORT BEACH PLANETBIDS PORTAL
COST PROPOSAL: CITYWIDE USER FEE STUDY & COST ALLOCATION PLAN SERVICES
To the City's Proposal Evaluation Team:
Enclosed is the ClearSource Cost Proposal submitted as a separate accompaniment to our Response and
Proposal to perform a Citywide User Fee Study and Cost Allocation Plan Services for the City of Newport
Beach.
I am the President of ClearSource Financial Consulting authorized to negotiate and bind ClearSource
contractually under the City's terms. My signature obligates ClearSource to the commitments in this
proposal and confirms that it shall remain valid for a period of 180 calendar days from submittal.
Sincerely,
TERRY MADSEN, PRESIDENT I CLEARSOURCE FINANCIAL CONSULTING
PHONE: 831.288.0608
EMAIL: TMADSENC-OCLEARSOURCEFINANCIAL.COM
Note: This additional Cost Proposal has been submitted as a supplement to the City's required Cost File, as allowed by the
instructions on the Cost File Form.
7960 B Soquel Drive, Suite 363, Aptos, California 95003 831.288.0608
PROJECT BUDGFT
Contract Structure
The City of Newport Beach is initiating a new
contract to complete its Citywide User Fee
Study and Cost Allocation Plan Services. The
City envisions a maximum contract term of five
years: three years with two optional one-year
renewals. Within the five-year contract, the City
wishes to consider optional annual updates of
its Citywide Cost Allocation Plan (excluding
Harbor Tidelands) in Years 2, 3, and 5.
In order to provide the City an upper limit for its
project budgeting and consultant evaluation,
ClearSource submits the following Cost
Proposal, presenting maximum consulting fees
assuming maximum contract terms: all five
years and all optional elements authorized to
proceed. ClearSource has prepared sufficient
detail for the City to reduce this maximum
consulting fee should the City not authorize
optional elements or renew subsequent years.
This fee is based on the City's agenda for
studies, as expressed in the ClearSource wor
plan and project timeline shown in our
separately submitted technical proposal.'
Maximum Consulting Fee
TOTAL FIVE-YEAR COST I ClearSource
proposes a total maximum project cost for this
five-year contract at 2 , , as illustrated in
Exhibit . This includes all options and renewals.
EXHIBIT 1 1 MAXIMUM FIVE-YEAR PROJECT
COST BY ELEMENT
iptlons
enewals Labor Maximum
Hours Fee
Citywi_de._User Fee_Stud
_y_.._____.._______
ANNUAL COSTS I The five-year project cost
can be expressed annually, following the
agenda set by the City for expected
deliverables in each year of study, as illustrated
in Exhibit 2. This includes all options and
renewals.
NOT -TO -EXCEED FEE I ClearSource
commits to finish the City's scope of services
without change orders. This is our standard
practice. We do not request contract
amendments for additional meetings, extra
analytical scenarios, or any extended work to
aid City staff or Council consideration. These
are normal occurrences in these types of
studies and part of the standard effort required
to usher study findings to successful enactment.
Our proposed price is set to accomplish the
wor thoroughly without upward ris to the City.
EXHIBIT 2 1 MAXIMUM PROJECT COST BY ELEMENT AND STUDY YEAR
-23 (Year 1) FY 23-24 (Year 2)
Fe Hours Fe
e e
Cost Allocation Plan Services
Citywide User Fee Studv
iours Fe
e
1 ClearSource RFP Response File, Page 14, Exhibit 3.
CITY OF NEWPORT BEACH REQUEST FOR PROPOSAL CLEARSOURCE COST FILE 1 2
Components of Consulting Fees
PROFESSIONAL RATES I The proposed
consulting fee presented above is based on
assumed time to complete the scope of services
paired with hourly billing rates for ClearSource
consultants. As of the date of this submittal, the
schedule of hourly billing rates for all positions
contemplated in this project is as follows:
C Rates fixed through June 30, 2023:
Project Manager: $180 per hour
Principal Consultant: $180 per hour
- Senior Consultant: $180 per hour
The five-year maximum cost has been built
following assumed annual adjustment to our
professional rates at an inflation factor not to
exceed 5% per year, as illustrated in Exhibit 3. In
each subsequent year of study, ClearSource will
notify the City of the professional rates we
publish formally at that time and adjust the
project budget for that year in alignment with
ClearSource practice, not to exceed the annual
project budget estimated in this proposal.
EXHIBIT 3 i PROJECTED CLEARSOURCE
PROFESSIONAL RATES
*ClearSource will apply actual billing rates in effect as of / / and
subsequent years but will not exceed those listed here.
DIRECT EXPENSES i ClearSource does not
bill clients for ordinary direct expenses. All costs
incurred by ClearSource to complete the City's
project as currently scoped are embedded in
our professional rates. The City's project does
not contemplate and include extraordinary
expenses, such as mailing, as part of the
consultant's required deliverables; therefore, no
cost above the billed time of our professionals is
proposed in our consulting fee.
RATES FOR ADDED SERVICES I Should the
City see an amendment to the contract to add
consulting services it did not contemplate in its
original scope of services as of this submittal
date, ClearSource will estimate an additional
consulting fee using professional rates we
formally publish at the time of request but not to
exceed the rates listed in Exhibit 3. As
emphasized earlier, ClearSource will not
request contract amendments to
compensation to handle normal fluctuations in
the scope of services already defined, such as
unplanned meetings, scenarios, or elongated
review processes. Examples of situations when
"added services" would apply are adding an
internal service fund rate analysis or
rescheduling a department/division for user fee
analysis not scoped in a given year's consulting
fee.
Manner of Payment
ClearSource will issue monthly progress reports
to the City. Accompanying monthly invoices will
be based on progress recorded to the project
following the project elements and major tas s
described in the wor plans included with our
separate technical proposal. We will not invoice
for tas s not yet completed, and we will not
submit a final invoice for each study year until
wor is completed as scoped for that year. Total
invoices issued over the course of each study
year and the total five-year period will not
exceed the maximum price presented here.
Consulting Fee Detail
CONSULTANT FEE BY TASK I The
maximum consulting fee presented in this Cost
Proposal is based on the ClearSource team's
experience with other similarly scoped and
scaled California cities in past studies: careful
review of the City of Newport Beach's existing
CITY OF NEWPORT BEACH REQUEST FOR PROPOSAL CLEARSOURCE COST FILE 1 3
fee schedules, service provisions, organizational
structure, and apparent financial performance,
noting the breadth of City services that will fall
under review in this effort. Our proposal ensures
that the cost allocation plan uses and all
user/regulatory fees eligible for the prescribed
methodologies can be analyzed without
shortcuts or explanations for non -analysis and
that the process is carried through to successful
implementation of feasible outcomes.
Exhibit 4 at the end of this document illustrates
the detail behind our presented maximum price
for the Citywide User Fee Study and Cost
Allocation Plan Services. This includes our
estimated consultant labor time paired with
current and projected hourly billing rates by
study and tas described in the wor plans
included in our separately submitted technical
proposal.
This detail includes all options and renewals.
Optional tas s are listed under Citywide Cost
Allocation Plan in Years 2, 3, and 5. Potentially
renewable years are Years 4 and 5.
CONSULTANT FEE BY STUDY ELEMENT
AND USER FEE TOPIC I As required by the
Request for Proposal Cost File (form),
ClearSource has detailed our total consulting
fee in each year of the project by study element
and user fee topic. Exhibit 5 at the end of this
document identifies the hours attributable to
each area of study and corresponding cost to
those departments/divisions or funds
responsible.
This detail recognizes that there will be different
levels of consulting effort attributable to the
topics, such as data development, quantitative
analysis, fee schedule scale, expected iterative
review points, and/or sta eholder or
policyma er engagement.
This detail also includes all options and
renewals. Optional tas s are listed under
Citywide Cost Allocation Plan in Years 2, 3, and
5. Potentially renewable years are Years 4 and
5.
This section continues on the following page.
CITY OF NEWPORT BEACH REQUEST FOR PROPOSAL
CLEARSOURCE COST FILE 1 4
CONSULTING COST PROPOSAL
FY22-23 (Year 1)
FY23-24 (Year 2)
FY24-25 (Year 3)
FY25-26 (Year 4)
FY26-27 (Year 5) Total Project
Consultant Hours by
Project Element and Task
Project
Senior
Project
I Senior
Project
Senior
Project
Senior
Project
I Senior Labor
Maximum
Mgr
Cons
Mgr
Cons
Mgr
Cons
Mgr
Cons
Mgr
Cons Hours
Fee
Maximum Professional Hourly Rates:
$180 $180
$189 $189
$198 $198
$208 $208
$218 $218
Citvwide Cost Allocation Plan
Subtotal Fee for Single Element 30
Harbor Tidelands Cost Allocation Plan
Subtotal Fee for Single Element 14
wide User Fee Study
80 16 54 16 54 30 80 16 54 430
56 0 0 0 0 14 56 0 0 140 $ 27,160
Subtotal Fee for Single Element 102 108 88 92 84 76 102 108 88 92 940 $186,420
GRAND TOTAL NOT TO EXCEED 146 244 104 146 100 130 146 244 104 146 1,510 $298,610
CONSULTING COST PROPOSAL
Project Element
Cost Allocation Plans
Subtotal
�o
wide User Fee
Subtotal
GRAND TOTAL NOT TO EXCEED
FY 22-23 (Year 1) FY 23-24 (Year 2) FY 24-25 (Year 3) FY 25-26 (Year 4) FY 26-27 (Year 5) 1 Total Project
Hours Fee Hours Fee Hours I Fee Hours I Fee Hours I Fee Labor Maximum
Hours I Fee
180 $32,400 70 $ 13,230 70 $ 13,860 180 $37,440 70 $ 15,260 570 $ 112,190
210 $37,800 180 $34,020 160 $ 31,680 210 $43,680 180 $39,240 940 $186,420
390 $70,200 250 $ 47,250 230 $45,540 390 $ 81,120 250 $54,500 1,510 $298,610
EXHIBIT C
INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES
1. Provision of Insurance. Without limiting Consultant's indemnification of City, and
prior to commencement of Work, Consultant shall obtain, provide and maintain at
its own expense during the term of this Agreement, policies of insurance of the
type and amounts described below and in a form satisfactory to City. Consultant
agrees to provide insurance in accordance with requirements set forth here. If
Consultant uses existing coverage to comply and that coverage does not meet
these requirements, Consultant agrees to amend, supplement or endorse the
existing coverage.
2. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders'
Rating of A- (or higher) and Financial Size Category Class VII (or larger) in
accordance with the latest edition of Best's Key Rating Guide, unless otherwise
approved by the City's Risk Manager.
3. Coverage Requirements.
A. Workers' Compensation Insurance. Consultant shall maintain Workers'
Compensation Insurance, statutory limits, and Employer's Liability
Insurance with limits of at least one million dollars ($1,000,000) each
accident for bodily injury by accident and each employee for bodily injury by
disease in accordance with the laws of the State of California, Section 3700
of the Labor Code.
Consultant shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City, its City Council, boards
and commissions, officers, agents, volunteers and employees.
B. General Liability Insurance. Consultant shall maintain commercial general
liability insurance, and if necessary umbrella liability insurance, with
coverage at least as broad as provided by Insurance Services Office form
CG 00 01, in an amount not less than one million dollars ($1,000,000) per
occurrence, two million dollars ($2,000,000) general aggregate. The policy
shall cover liability arising from premises, operations, personal and
advertising injury, and liability assumed under an insured contract (including
the tort liability of another assumed in a business contract).
C. Automobile Liability Insurance. Consultant shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01
covering bodily injury and property damage for all activities of Consultant
arising out of or in connection with Work to be performed under this
Agreement, including coverage for any owned, hired, non -owned or rented
vehicles, in an amount not less than one million dollars ($1,000,000)
combined single limit each accident.
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D. Professional Liability (Errors & Omissions) Insurance. Consultant shall
maintain professional liability insurance that covers the Services to be
performed in connection with this Agreement, in the minimum amount of
one million dollars ($1,000,000) per claim and two million dollars
($2,000,000) in the aggregate. Any policy inception date, continuity date,
or retroactive date must be before the Effective Date of this Agreement and
Consultant agrees to maintain continuous coverage through a period no
less than three years after completion of the Services required by this
Agreement.
4. Other Insurance Requirements. The policies are to contain, or be endorsed to
contain, the following provisions:
A. Waiver of Subrogation. All insurance coverage maintained or procured
pursuant to this Agreement shall be endorsed to waive subrogation against
City, its City Council, boards and commissions, officers, agents, volunteers
and employees or shall specifically allow Consultant or others providing
insurance evidence in compliance with these requirements to waive their
right of recovery prior to a loss. Consultant hereby waives its own right of
recovery against City, and shall require similar written express waivers from
each of its subconsultants.
B. Additional Insured Status. All liability policies including general liability,
excess liability, pollution liability, and automobile liability, if required, but not
including professional liability, shall provide or be endorsed to provide that
City, its City Council, boards and commissions, officers, agents, volunteers
and employees shall be included as insureds under such policies.
C. Primary and Non Contributor. All liability coverage shall apply on a primary
basis and shall not require contribution from any insurance or self-insurance
maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days' notice of cancellation (except for nonpayment for which ten
(10) calendar days' notice is required) or nonrenewal of coverage for each
required coverage.
5. Additional Agreements Between the Parties. The parties hereby agree to the
following:
A. Evidence of Insurance. Consultant shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a
waiver of subrogation endorsement for workers' compensation and other
endorsements as specified herein for each coverage. Insurance certificates
and endorsement must be approved by City's Risk Manager prior to
commencement of performance. Current certification of insurance shall be
kept on file with City at all times during the term of this Agreement. The
certificates and endorsements for each insurance policy shall be signed by
a person authorized by that insurer to bind coverage on its behalf. At least
ClearSource Financial Consulting Page C-2
fifteen (15) days prior to the expiration of any such policy, evidence of
insurance showing that such insurance coverage has been renewed or
extended shall be filed with the City. If such coverage is cancelled or
reduced, Consultant shall, within ten (10) days after receipt of written notice
of such cancellation or reduction of coverage, file with the City evidence of
insurance showing that the required insurance has been reinstated or has
been provided through another insurance company or companies. City
reserves the right to require complete, certified copies of all required
insurance policies, at any time.
B. City's Right to Revise Requirements. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Consultant sixty (60) calendar days' advance
written notice of such change. If such change results in substantial
additional cost to Consultant, City and Consultant may renegotiate
Consultant's compensation.
C. Right to Review Subcontracts. Consultant agrees that upon request, all
agreements with subcontractors or others with whom Consultant enters into
contracts with on behalf of City will be submitted to City for review. Failure
of City to request copies of such agreements will not impose any liability on
City, or its employees. Consultant shall require and verify that all
subcontractors maintain insurance meeting all the requirements stated
herein, and Consultant shall ensure that City is an additional insured on
insurance required from subcontractors. For CGL coverage,
subcontractors shall provide coverage with a format at least as broad as CG
20 38 04 13.
D. Enforcement of Agreement Provisions. Consultant acknowledges and
agrees that any actual or alleged failure on the part of City to inform
Consultant of non-compliance with any requirement imposes no additional
obligations on City nor does it waive any rights hereunder.
E. Requirements not Limiting. Requirements of specific coverage features or
limits contained in this Section are not intended as a limitation on coverage,
limits or other requirements, or a waiver of any coverage normally provided
by any insurance. Specific reference to a given coverage feature is for
purposes of clarification only as it pertains to a given issue and is not
intended by any party or insured to be all inclusive, or to the exclusion of
other coverage, or a waiver of any type. If the Consultant maintains higher
limits than the minimums shown above, the City requires and shall be
entitled to coverage for higher limits maintained by the Consultant. Any
available insurance proceeds in excess of the specified minimum limits of
insurance and coverage shall be available to the City.
F. Self -insured Retentions. Any self -insured retentions must be declared to
and approved by City. City reserves the right to require that self -insured
retentions be eliminated, lowered, or replaced by a deductible. Self-
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insurance will not be considered to comply with these requirements unless
approved by City.
G. City Remedies for Non -Compliance. If Consultant or any subconsultant fails
to provide and maintain insurance as required herein, then City shall have
the right but not the obligation, to purchase such insurance, to terminate this
Agreement, or to suspend Consultant's right to proceed until proper
evidence of insurance is provided. Any amounts paid by City shall, at City's
sole option, be deducted from amounts payable to Consultant or reimbursed
by Consultant upon demand.
H. Timely Notice of Claims. Consultant shall give City prompt and timely notice
of claims made or suits instituted that arise out of or result from Consultant's
performance under this Agreement, and that involve or may involve
coverage under any of the required liability policies. City assumes no
obligation or liability by such notice, but has the right (but not the duty) to
monitor the handling of any such claim or claims if they are likely to involve
City.
Consultant's Insurance. Consultant shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of the
Work.
ClearSource Financial Consulting Page C-4
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