HomeMy WebLinkAboutC-4518 - PSA for Cost Allocation Plan and User Fee ServicesQD
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AMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT
WITH MGT OF AMERICA, INC. FOR
COST ALLOCATION PLAN AND USER FEE SERVICES
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. One") is made and entered into as of this 13th day of November,
2013 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and MGT OF AMERICA, INC., a Florida
corporation ("Consultant"), whose address is 2001 P Street, Suite 200, Sacramento, CA
95811, and is made with reference to the following:
RECITALS
A. On April 14, 2010, City and Consultant entered into a Professional Services
Agreement ("Agreement') to engage Consultant to provide a comprehensive
review and update of General Fund departmental user fee calculations, initial
comprehensive Harbor Tidelands user fee analysis, update of the citywide cost
allocation plan, and breakout of departmental user fee services linking to City
Revenue codes ("Project'),
B. City desires to enter into this Amendment No. One to reflect additional services
not included in the Agreement, to increase the total compensation and to update
insurance requirements.
C. City and Consultant mutually desire to amend the Agreement, as provided below
NOW, THEREFORE, it is mutually agreed. by and between the undersigned
parties as follows:
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 of the Agreement and Exhibit A of 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
("Services" or "Work"). Exhibit B of the Agreement and Exhibit B of 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 One Hundred
Fifty Nine Thousand Dollars and 001100 ($159,000.00), 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
Twenty Four Thousand Dollars and 001100 ($24,000.00).
INSURANCE
Section 14 of the Agreement is amended in its entirety and replaced with the
following: "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,"
4. 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]
MGT OF AMERICA, INC. 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: ;�-L -d
By: I't�l,lt.t
Aaron CVHarp
City Attorney
ATTEST:
Date:
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NA,--
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date: %I 2A1y
By: C' t
Dave iff
City Manager
CONSULTANT: MGT OF AMERICA,
INC., a Florida corporation
Date: 04/15/2014
[END OF SIGNATURES]
Attachments: Exhibit A - Scope of Services
Exhibit B - Schedule of Billing Rates
Exhibit C - Insurance Requirements
MGT OF AMERICA, INC. Page 3
EXHIBIT A
SCOPE OF SERVICES
Background:
A Certified Public Expenditure ("CPE") program for California Public entity
ambulance service providers was provided by AS 678, enacted on October 2, 2011.
CPE's are a mechanisms that a state may employ to obtain Federal financial
participation and make supplemental payments to Medi -Cal providers. Under a CPE
arrangement, governmental providers certify their Medicaid expenditures to the State
and the State then obtains additional federal reimbursement on the basis of the CE at a
rate of 50%. Public hospitals currently receive additional funds through CPEs. AS 678
expands access to CPE supplemental reimbursement to ambulance service provided
via public entities, such as fire departments.
The bill required the Department of Health Care Services ("DHCS") to seek
federal approvals for the Intended payment methodology. Therefore, the State Plan
Amendment to 09-024 (SPA09-024) was submitted to obtain federal approval. The
primary purpose of SPA 09-024 is to establish a methodology to allow the DHCS to
reimburse governmental entities for their uncompensated emergency medical
transportation services costs incurred when providing services to Medi -Cal
beneficiaries.
The Ground Emergency Medical Transportation ("GEMT") Services
Supplemental Reimbursement program's State Plan Amendment 09-024 was approved
by the Centers for Medicare and Medicaid Services on September 4, 2013. This
voluntary supplemental reimbursement program is retroactive to January 30, 2010.
Services to be Performed:
Consultant shall provide the following additional Services:
1. Complete the GEMT Integrated Disclosure and Medical Cost Reports in the
approved SPA 09-024 payment methodology for fiscal years 2009/2010, 2010/ 2011,
2011/2012, 2012/2013, 2013/2014 and 2014/2015.
MGT OF AMERICA, INC. Page A-1
EXHIBIT B
SCHEDULE OF BILLING RATES
Compensation to complete the GEMT Integrated
Disclosure and Medical Cost Reports for fiscal years
2009/2010
$6,000 (Est. 40 hours)
2010/2011
$3,600 (Est. 24 hours)
2011/2012
$3,600 (Est. 24 hours)
2012/2013
$3,600 (Est. 24 hours)
2013/2014
$3,600 (Est. 24 hours)
2014/2015
$3,600 (Est. 24 hours)
Hourly Rate: $150
MGT OF AMERICA, INC. Page B-1
EXHIBIT C
INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES
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.
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 Citys 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 officers, agents,
employees and volunteers.
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, one million dollars ($1,000,000) 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) with
no endorsement or modification limiting the scope of coverage for liability
assumed under a 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
MGT OF AMERICA, INC. Page C-1
vehicles, in an amount not less than one million dollars ($1,000,000)
combined single limit each accident.
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 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 Submaation. All Insurance coverage maintained or procured
pursuant to this Agreement shall be endorsed to waive subrogation
against City, its elected or appointed officers, agents, officials, employees
and volunteers 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 and its officers, officials, employees, and agents shall be included
as insureds under such policies.
C. Primary and Non Contributory. 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
MGT OF AMERICA, INC. Page C-2
Agreement. City reserves the right to require complete, certified copies of
all required insurance policies, at anytime.
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. 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.
D. 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.
E. 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-
insurance will not be considered to comply with these requirements unless
approved by City.
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.
G. Timely Notice of Claims. Contractor shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Contractor's performance under this Contract, 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.
H. 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.
MGT OF AMERICA, INC. Page C-3
PROFESSIONAL SERVICES AGREEMENT WITH
MGT OF AMERICA, INC.
FOR COST ALLOCATION PLAN AND USER FEE SERVICES
THIS AGREEMENT is made and entered into as of this 14th day of April, 2010, by and
between the CITY OF NEWPORT BEACH, a Municipal Corporation ("City"), and MGT
OF AMERICA, INC. a Florida Corporation, regionally based in California, whose
address is 2001 P Street, Suite 200 Sacramento, California, 95811 ("Consultant"), 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 the City.
B. City is planning a six phase (during a period of six years) comprehensive review and
update of General Fund departmental user fee calculations, initial comprehensive
Harbor Tidelands user fee analysis and update of the citywide cost allocation plan.
City also wishes to create a detailed breakout of departmental user fee services
which directly links to City revenue codes (collectively, the "Project'). Cataloging
the user fee services along with the corresponding City Revenue Code will allow the
City to more efficiently update charge levels and create a better linkage between
user fee services and general plan revenue accounts.
C. Consultant, in 2006, had calculated the City's cost allocation plan. At that time,
Consultant was PRM, a company that has since been merged into MGT of America,
Inc. Because of Consultant's familiarity with City's organization, and the ensuing
cost savings, City desires to engage Consultant to complete the Project in
accordance to the schedule shown in Exhibit `A" and incorporated herein by
reference.
D. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal members of the Consultant for purposes of the Project, shall be Brad
Burgess, Erin Payton and Mike Adams.
F. 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.
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NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on the 13th day of April, 2016, unless terminated earlier as set forth
herein.
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.
The City may elect to delete certain tasks from the Scope of Services at its sole
discretion.
3. TIME OF PERFORMANCE
Time is of the essence in the performance of services under this Agreement and
the services shall be performed to completion in a diligent and timely manner.
The failure by Consultant to perform the services in a diligent and timely manner
may result in termination of this Agreement by City.
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 to the other party so that all delays can be addressed.
3.1 Consultant shall submit all requests for extensions of time for performance
in writing to the Project Administrator, as defined in Section 6, 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.
3.2 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the
circumstances, by either telephone, fax, 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 and 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, shall not exceed:
Forty Thousand Dollars ($40,000) during 2009-10 (Year 1);
Fifteen Thousand Dollars ($15,000) during 2010-11 Year 2);
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Twenty Thousand Dollars ($20,000) during 2011-12 (Year 3);
Twenty -Five Thousand Dollars ($25,000) during 2012-13 (Year 4);
Fifteen Thousand Dollars ($15,000) during 2013-14 (Year 5); and
Twenty Thousand Dollars ($20,000) during 2014-15 (Year 6)
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.
4.1 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
reimbursable expenditures. City shall pay Consultant no later than thirty
(30) days after approval of the monthly invoice by City staff.
4.2 City shall reimburse Consultant only for those costs or expenses
specifically approved in this Agreement, or specifically approved in writing
in advance by City. Unless otherwise approved, such costs shall be
limited and include nothing more than the following costs incurred by
Consultant:
A. Approved reproduction charges.
B. Actual costs and/or other costs and/or payments specifically
authorized in advance in writing and incurred by Consultant in the
performance of this Agreement.
4.3 Consultant shall not receive any compensation for Extra Work performed
without the prior written authorization of Project Administrator. 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
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 Erin Payton to be
its Project Manager. Consultant shall not remove or reassign the Project
Manager or any personnel listed above 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
Project Manager.
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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.
6. ADMINISTRATION
This Agreement will be administered by the Administrative Services Department
The Revenue Division Manager shall be the Project Administrator and shall have
the authority to act for City under this Agreement. The Project Administrator or
her authorized representative shall represent City in all matters pertaining to the
services to be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
In order to assist Consultant in the execution of its responsibilities under this
Agreement, City agrees to, where applicable, 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.
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. 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 and all applicable federal, state and
local laws and the professional standard of care.
8.2 Consultant represents and warrants to City that it has, shall obtain, and
shall keep in full force in 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, or 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.
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9. HOLD HARMLESS
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, attorney's 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 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).
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 be construed as authorizing any award of attorney's 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 the Consultant.
10. INDEPENDENT CONTRACTOR
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. 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 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.
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
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interest in the work to be performed. City agrees to cooperate with the
Consultant on the Project.
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.
PROGRESS
Consultant is responsible for keeping the Project Administrator and/or her duly
authorized designee 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.
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, a policy or policies of liability insurance of the type
and amounts described below and in a form satisfactory to City.
14.1 Certificates of Insurance. Consultant shall provide certificates of
insurance with original endorsements to City as evidence of the insurance
coverage required herein. Insurance certificates must be approved by
City's Risk Manager prior to commencement of performance or issuance
of any permit. Current certification of insurance shall be kept on file with
City at all times during the term of this Agreement.
14.2 Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
14.3 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.
14.4 Coverage Requirements.
A. Workers' Compensation Coverage. Consultant shall maintain
Workers' Compensation Insurance and Employer's Liability Insurance for
his or her employees in accordance with the laws of the State of
California. In addition, Consultant shall require each subcontractor to
similarly maintain Workers' Compensation Insurance and Employer's
Liability Insurance in accordance with the laws of the State of California for
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all of the subcontractor's employees. Any notice of cancellation or non-
renewal of all Workers' Compensation policies must be received by City at
least thirty (30) calendar days (10 calendar days written notice of non-
payment of premium) prior to such change. The insurer shall agree to
waive all rights of subrogation against City, its officers, agents, employees
and volunteers for losses arising from work performed by Consultant for
City.
B. General Liability Coverage. Consultant shall maintain commercial
general liability insurance in an amount not less than one million dollars
($1,000,000) per occurrence for bodily injury, personal injury, and property
damage, including without limitation, contractual liability. If commercial
general liability insurance or other form with a general aggregate limit is
used, either the general aggregate limit shall apply separately to the work
to be performed under this Agreement, or the general aggregate limit shall
be at least twice the required occurrence limit.
C. Automobile Liability Coverage. Consultant shall maintain
automobile insurance covering bodily injury and property damage for all
activities of the 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 for each occurrence.
D. Professional Errors and Omissions Insurance. Consultant shall
maintain professional errors and omissions insurance, which covers the
services to be performed in connection with this Agreement in the
minimum amount of one million dollars ($1,000,000).
14.5 Endorsements. Each general liability and automobile liability insurance
policy shall be endorsed with the following specific language:
A. The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insureds with
respect to liability arising out of work performed by or on behalf of
the Consultant.
B. This policy shall be considered primary insurance as respects to
City, its elected or appointed officers, officials, employees, agents
and volunteers as respects to all claims, losses, or liability arising
directly or indirectly from the Consultant's operations or services
provided to City. Any insurance maintained by City, including any
self-insured retention City may have, shall be considered excess
insurance only and not contributory with the insurance provided
hereunder.
C. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with
respect to the limits of liability of the insuring company.
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D. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
E. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to City, its elected or appointed
officers, officials, employees, agents or volunteers.
F. The insurance provided by this policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits, by either party
except after thirty (30) calendar days (10 calendar days written
notice of non-payment of premium) written notice has been
received by City.
14.6 Timely Notice of Claims. Consultant shall give City prompt and timely
notice of claim made or suit instituted arising out of or resulting from
Consultant's performance under this Agreement.
14.7 Additional 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.
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 cotenancy,
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 parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of
Consultant. Assignments of any or all rights, duties or obligations of the
Consultant under this Agreement will be permitted only with the express written
consent of City. Consultant shall not subcontract any portion of the work to be
performed under this Agreement without the prior written authorization of City.
17. OWNERSHIP OF DOCUMENTS
Each and every report, draft, map, record, plan, document and other writing
produced ("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
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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 to City upon prior written request.
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.
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 authorizes in writing the release of information.
19. INTELLECTUAL PROPERTY INDEMNITY
The Consultant shall defend and indemnify City, its agents, officers,
representatives and employees against any and all liability, including costs, for
infringement of any United States' letters patent, trademark, or copyright
infringement, including costs, contained in Consultant's drawings and
specifications provided under this Agreement.
20. RECORDS
Consultant shall keep records and invoices in connection with the work 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
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shall have an immediate right to appeal to the City Manager or his/her designee
with respect to such disputed sums. Consultant shall be entitled to receive
interest on any withheld sums at the rate of return that City earned on its
investments during the time period, from the date of withholding of any amounts
found to have been improperly withheld.
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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 paragraph 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
The Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act"), which (1) requires such
persons to disclose any financial interest that may foreseeably be materially
affected by the work performed under this Agreement, and (2) prohibits such
persons from making, or participating in making, decisions that will foreseeably
financially affect such interest.
If subject to the Act, Consultant shall conform to all requirements of the Act.
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
All notices, demands, requests or approvals to be given under the terms of this
Agreement shall be given in writing, and conclusively shall be
when delivered personally, or on the third business day after the
in the United States mail, postage prepaid, first-class mail,
hereinafter provided. All notices, demands, requests or
Consultant to City shall be addressed to City at:
Attn: Revenue Division Manager
Administrative Services Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA, 92663
10
deemed served
deposit thereof
addressed as
approvals from
Phone: 949-644-3144
All notices, demands, requests or approvals from CITY to Consultant shall be
addressed to Consultant at:
Attention: Brad Burgess
2001 P Street, Suite 200
Sacramento, CA 95811
Phone: 916.595.2646
Fax: 916.914.2372
26. TERMINATION
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 five (5) calendar days, or if more than five (5) calendar
days are reasonably required to cure the default and the defaulting party fails to
give adequate assurance of due performance within five (5) 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.
Notwithstanding the above provisions, City shall have the right, at its sole
discretion and without cause, of terminating this Agreement at any time by giving
ten (10) 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.
27. 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. 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.
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29. 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.
30. 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 govem.
31. 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.
32. 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.
33. 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.
34. 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.
35. 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 of race, religion, color, national origin, handicap, ancestry, sex or age.
36. NO ATTORNEYS' FEES
In the event of a legal dispute under the terms of this Agreement, the prevailing
party shall not be entitled to attorneys' fees.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED AS TO FORM:
OFFICE OF
I T E CITY ATTORNEY:
B y V
eonie Mulvihill .its? V410
Acting City Attorney
ATTEST:
By: &I _
Leilani Brown,
City Clerk
L C1 FOR®
CITY OF NEWPORT BEACH,
A Municipal Corpo Ation
By:
Keith Curry
Mayor
CONSULTANT:
_ae • Officer)
Title: Sr.
Print Name:
By: J41��
(Financial Officer)
Title: CFO
Print Name: MTrHF.T.T.F. .TTTARF.7
Attachments: Exhibit "A" — Scope of Services
Exhibit "B" — Schedule of Billing Rates
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Exhibit "A"
Scope of Services
Project Organization
The project shall be divided into the following six phases:
Year 1 (FY 2009-10):
Update citywide cost allocation plan
Perform initial comprehensive Harbor Tidelands user fee study
Update Police user fee study
Catalog user fee services for all user fee departments listed in project years 1, 2 and 3 along
with developing a linkage from each service name to the corresponding City revenue code.
• Year 2 (FY 2010-11):
Update Administrative Services, Library, Recreation & Senior Services and Utilities user fee
studies.
• Year 3 (FY 2011-12):
Update Building, Fire and Code Enforcement, Planning, Public Works user fee studies.
• Year 4 (FY 2012-13):
Update citywide cost allocation plan, Harbor Tidelands and Police user fee studies.
• Year 5 (FY 2013-14):
Update Administrative Services, Library, Recreation & Senior Services and Utilities user fee
studies.
• Year 6 (FY 2014-15):
Update Building, Fire and Code Enforcement, Planning, Public Works user fee studies.
Detailed Project Description: User Fee Updates
For the fee study departments described above, the areas of update/analysis will
include:
• The addition of any new fee services.
• Review/revise all time estimates included in the previous study and capture new time
estimates for new services. Note — the initial Harbor Tidelands study will be conducted with
all new time information, which will be gathered on site from City staff. Update annual
volume and revenue statistics for all fee services.
• Update all staffing and expenditure information.
• Update all cross -department support calculations.
• Provide revenue forecasting based on recommended fee levels.
• Update department overhead rates.
• Prepare for Council approval the annual citywide service fee schedule reflecting the results
of the year's user fee update and cost allocation plan (if applicable), and the changes to the
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Consumer Price Index from the previously adopted service fee schedule. The staff report
for the Council presentation will be created by City staff.
• Following Council adoption of the service fee schedule, for each department - create
individual comprehensive user fee service and copy & duplication charges catalogs. The
user fee catalog will be created in a manner that creates a better linkage between individual
departmental user fee levels and the corresponding departmental general fund revenue by
tying service fees and transaction counts to general fund revenue accounts. This catalog
will allow enhanced revenue forecasting and budgeting by incorporating staffing changes
and volume statistics.
• Any department not included in that year's detailed analysis will have their user fees
updated by the local CPI (i.e. the Planning fees will be updated by the CPI factor in years 1
and 2; the Police fees will be updated by the CPI factor in years 2 and 3).These updates will
be applied and forecasted revenue information will be provided for each department.
Detailed Project Description: Cost Allocation Plan
For the cost allocation plan, the areas of update/analysis will include:
• Review/update of all central service departments (add/remove any divisions)
• 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
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Exhibit "B"
Schedule of Billing and Rates
Year 1:
Update citywide cost allocation plan - $12,500.00
Update Police user fee study - $2,500.00
Perform initial comprehensive Harbor Tidelands user fee study - $25,000.00
Catalog user fee services for all user fee departments listed in project years 1, 2 and 3 along
with developing a linkage from each service name to the corresponding City revenue code —
included
Total - $40,000.00
Year 1 will be billed as follows:
50% after all initial department meetings/interviews are conducted
30% upon receipt of first draft of cost allocation plan, Police and Harbor
Tidelands fee study
20% upon receipt of final cost allocation plan, Police and Harbor Tidelands fee
study and departmental fee service catalog
Year 2:
Update Administrative Services user fee study - $3,500.00
Update Library user fee study - $2,500.00
Update Recreation & Senior Services user fee study - $4,500.00
Update Utilities user fee study - $4,500.00
Total - $15,000.00
Year 2 will be billed as follows:
50% upon receipt of 1st user fee draft for all departments
40% upon receipt of 2nd user fee draft for all departments
10% upon receipt of final report and presentation
Year 3:
Update of Building user fee study - $4,500.00
Update of Code Enforcement user fee study - $2,000.00
Update of Fire user fee study - $4,500.00
Update of Planning user fee study - $4,500.00
Update of Public Works user fee study - $4,500.00
Total - $20,000.00
Year 3 will be billed as follows:
50% upon receipt of 1st user fee draft for all departments
40% upon receipt of 2nd user fee draft for all departments
10% upon receipt of final report, presentation and departmental fee service
catalog
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Year 4:
Update Police user fee study - $2,500.00
Update Harbor Tidelands user fee study - $10,000.00
Update citywide cost allocation plan - $12,500.00
Total - $25,000.00
Year 4 will be billed as follows:
50% after all initial department meetings/interviews
30% upon receipt of 1St draft of cost allocation
Tidelands fee study
20% upon receipt of final cost allocation plan and
fee study
Year 5:
0
are conducted
plan and Police and Harbor
Police and Harbor Tidelands
Update Administrative Services user fee study - $3,500.00
Update Library user fee study - $2,500.00
Update Recreation & Senior Services user fee study - $4,500.00
Update Utilities user fee study - $4,500.00
Total - $15,000.00
Year 5 phase will be billed as follows:
50% upon receipt of 1" user fee draft for all departments
40% upon receipt of 2nd user fee draft for all departments
10% upon receipt of final report, presentation and departmental fee service
catalog
Year 6:
Update of Building user fee study - $4,500.00
Update of Code Enforcement user fee study - $2,000.00
Update of Fire user fee study - $4,500.00
Update of Planning user fee study - $4,500.00
Update of Public Works user fee study - $4,500.00
Total - $20,000.00
Year 6 will be billed as follows:
• 50% upon receipt of 1St user fee draft for all departments
• 40% upon receipt of 2"d user fee draft for all departments
• 10% upon receipt of final report, presentation and departmental fee service
catalog
17
E
Hourly Billing Rates
i
For any services outside or in addition to the Scope of Services ("Extra Work") described in
Exhibit "A", City shall pay the Consultant for the services on a time and expense basis in 1110th
hour increments at the following rate(s)..
Senior Partner: $250
Senior Associate: $185
Associate: $165
Senior Consultant: $155
Production Coordinator: $85
Project related expenses (mileage, air travel, car rental, lodging, meals while on site,
duplication) shall be billed at cost.
IN
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 15
April 13, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Administrative Services Department
Tracy McCraner, Administrative Services Director
(949) 644-3123 orTMcCraneral ..NewportBeachCA.gov
Administrative Services Department
Evelyn Tseng, Acting Revenue Manager
(949) 644-3153 or ETsengaNewportBeachCA.gov
SUBJECT: CITYWIDE COST ALLOCATION PLAN AND COST OF SERVICES
STUDY
ISSUE:
Should the City waive the bidding requirements of Council Policy F -14(C)(1) and enter
into a six year agreement with MGT of America, Inc. ("MGT") to update the cost
allocation plan and cost of services study?
RECOMMENDATION:
Waive Council Policy F -14(C)(1) and authorize the Mayor to execute the attached
Professional Services Agreement with MGT to develop a defensible cost allocation plan
and to identify and analyze the cost of providing City services.
DISCUSSION:
Background
In 1996, the City of Newport Beach retained KPMG Peat Marwick LLP (KPMG) to
conduct a cost of services study for City services requested and initiated by residents,
businesses and others who most benefit from the City services. The KPMG study
determined the actual cost of providing each of those services including direct labor
costs, administration or `overhead" costs and the cost of materials and supplies based
on actual 1994-1995 costs.
In 1997, City Council adopted Chapter 3.36 (Cost Recovery for User Services) of the
Municipal Code. Chapter 3.36 establishes the percentage of cost to be recovered from
direct user fees for the services studied. The remaining cost of those services is
Citywide Cost Allocation Plan and Cost of Services Study
April 13, 2010
Page 2
subsidized. bi4g revenues derived from the general population. In Chapter 3.36, City
Council also found that the cost studies should be conducted at least every five years.
Around the same time, the City Council adopted Resolution 97-15 establishing a Master
Fee Schedule for City services. The Master Fee Schedule is intended to be a
centralized location for the myriad of fees previously located in individual ordinances,
resolutions and Council Policies.
From 1997 to 2008, the City Council updated the Master Fee Schedule based on
changes in the cost of living and salary adjustments. In addition, the Master Fee
Schedule evolved to include additional fees based upon Council Policy, commission
findings, new ordinances, resolutions and new services.
In 2006, the City Council recommended a new cost -of -services study be conducted to
comprehensively update the Master Fee Schedule. Public Resource Management,
LLC ("PRM") was hired to conduct a cost allocation plan and cost of services study.
PRM completed its study in 2007 and its results were incorporated into the Master Fee
Schedule in 2008.
On March 8, 2010, the Finance Committee recommended that cost -of -services studies
be conducted more frequently to reduce the significant increases in the Master Fee
Schedule associated with infrequent reviews.
MGT of America. Inc.
In 2006, when City Council recommended that the new cost -of -services study be
conducted, staff prepared and distributed a request for proposal to conduct a cost
allocation plan and cost of services study to twenty companies. Four companies
submitted proposals with costs ranging from $32,920 to $49,500. A selection
committee comprised of City staff interviewed the four companies. The selection
committee unanimously recommended PRM based on PRM's experience, excellent
proposal terms, professional presentation and competitive pricing.
PRM's final in-depth study included a cost allocation plan and model as well as a cost -
of -services plan and model.
In August 2007, MGT acquired PRM. MGT retained PRM's employees, thus providing
a continuity of service.
Council Policy F -14(C)(1) requires that competitive bids be obtained when possible
before resorting to negotiated awards. Because a formal bidding process for a cost -of -
services and cost allocation study was conducted fairly recently, in 2006, and because
PRM, now MGT, already has in-depth knowledge of City services, MGT is in the unique
position of providing a continuity of resources and the ability to conduct its study more
Citywide Cost AllocationPlan and Cost of Services Study
April 13, 2010
Page 3
expeditiously and accurately than a company without such knowledge. Therefore, City
staff believes that a formal bidding process, at this point, would not be necessary.
MGT Agreement
Generally speaking, the MGT Agreement will update the cost allocation plan and model,
particularly as the update relates to the City's reorganizational efforts at the time of the
study. In addition, MGT will update the cost -of -services study and model and perform
its initial comprehensive Harbor Tidelands user fee study.
In order to smooth the impact of infrequent cost -of -services studies and the resultant
fee increases, MGT will, over the course of six years, study each City department and
update the citywide cost allocation plan, on a revolving basis. In the Agreement's first
year, MGT will update the cost allocation plan, study the Harbor Tidelands user fees
and update the Police user fees. In the second year, MGT will update the user fees
studies for Administrative Services, Library, Recreation & Senior Services and Utilities.
In the third year, MGT will update Building, Fire and Code Enforcement, Planning and
Public Works user fee studies. In the fourth year, MGT will repeat this schedule. In the
years that departments are not studied, MGT will update their fees by the change in the
Consumer Price Index.
This schedule will allow MGT to provide more in-depth study and accuracy for each
department than previous studies. Staff will have more time to verify the information
both provided to and received from MGT. Fees for each department will be updated at
least every three years, instead of every five or ten years.
City staff recommends that City waive F -14(C)(1) and hire MGT. The draft Professional
Services Agreement and Exhibits are attached.
Environmental Review:
This action is not subject to the California Environmental Quality Act ("CEQA°) pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a
project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical
change to the environment, directly or indirectly.
Public Notice
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
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Citywide Cost Allocation Plan and Cost of Services Study
April 13, 2010
Page 4
Funding Availability
Sufficient funding for FY 2009-10 is available in the Revenue Division budget, 0640-
8080, in the amount of $15,000, and in Harbor Resources (Tidelands) budget, 2371-
8080, in the amount of $25,000. Funding for FY 2010-11 will be included in the City's
FY 2010-11 proposed budget.
Prepared by:
Submitted by:
&Aj-T�
Evel Tseng Tracy McOliner
Acting Revenue Manager AdministrWe Services Director
Attachments: Professional Services Agreement with MGT of America, Inc. for Cost
Allocation Plan and User Fee Services
PROFESSIONAL SERVICES AGREEMENT WITH
MGT OF AMERICA, INC.
FOR COST ALLOCATION PLAN AND USER FEE SERVICES
THIS AGREEMENT is made and entered into as of this 14th day of April, 2010, by and
between the CITY OF NEWPORT BEACH, a Municipal Corporation ("City"), and MGT
OF AMERICA, INC. a Florida Corporation, regionally based in California, whose
address is 2001 P Street, Suite 200 Sacramento, California, 95811 ("Consultant'), 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 the City.
B. City is planning a six phase (during a period of six years) comprehensive review and
update of General Fund departmental user fee calculations, initial comprehensive
Harbor Tidelands user fee analysis and update of the citywide cost allocation plan.
City also wishes to create a detailed breakout of departmental user fee services
which directly links to City revenue codes (collectively, the "Project"). Cataloging
the user fee services along with the corresponding City Revenue Code will allow the
City to more efficiently update charge levels and create a better linkage between
user fee services and general plan revenue accounts.
C. Consultant, in 2006, had calculated the City's cost allocation plan. At that time,
Consultant was PRM, a company that has since been merged into MGT of America,
Inc. Because of Consultant's familiarity with City's organization, and the ensuing
cost savings, City desires to engage, Consultant to complete the Project in
accordance to the schedule shown in Exhibit "A" and incorporated herein by
reference.
D. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal members of the Consultant for purposes of the Project, shall be Brad
Burgess, Erin Payton and Mike Adams.
F. 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.
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NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
2.
3.
4.
TERM
The term of this Agreement shall commence on the above written date, and shall
tenninate on the 13th day of April, 2016, unless terminated earlier as set forth
herein.
SERVICES TO BE PERFORMED
Consultant shall diligently perform all the services described in the Supe of
Services attached hereto as Exhibit "A" and incorporated herein by reference
The City may elect to delete certain tasks from the Scope of Services at its sole
discretion.
TIME OF PERFORMANCE
Time is of the essence in the performance of services under this Agreement and
the services shall be performed to completion in a diligent and timely manner.
The failure by Consultant to perform the services in a diligent and timely manner
may result in termination of this Agreement by City.
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 to the other party so that all delays can be addressed.
3.1 Consultant shall submit all requests for extensions of time for performance
in writing to the Project Administrator, as defined in Section 6, 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.
3.2 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the
circumstances, by either telephone, fax, hand -delivery or mail.
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 and 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, shall not exceed:
Forty Thousand Dollars ($40,000) during 2009-10 (Year 1);
Fifteen Thousand Dollars ($15,000) during 2010-11 Year 2);
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Twenty Thousand Dollars ($20,000) during 2011-12 (Year 3);
Twenty -Five Thousand Dollars ($25,000) during 2012-13 (Year 4);
Fifteen Thousand Dollars ($15,000) during 2013-14 (Year 5); and
Twenty Thousand Dollars ($20,000) during 2014-15 (Year 6)
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.
4.1 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
reimbursable expenditures. City shall pay Consultant no later than thirty
(30) days after approval of the monthly invoice by City staff.
4.2 City shall reimburse Consultant only for those costs or expenses
specifically approved in this Agreement, or specifically approved in writing
in advance by City. Unless otherwise approved, such costs shall be
limited and include nothing more than the following costs incurred by
Consultant:
A. Approved reproduction charges.
B. Actual costs and/or other costs and/or payments specifically
authorized in advance in writing and incurred by Consultant in the
performance of this Agreement.
4.3 Consultant shall not receive any compensation for Extra Work performed
without the prior written authorization of Project Administrator. 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
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 Erin Payton to be
its Project Manager. Consultant shall not remove or reassign the Project
Manager or any personnel listed above 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
Project Manager.
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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.
6. ADMINISTRATION
This Agreement will be administered by the Administrative Services Department
The Revenue Division Manager shall be the Project Administrator and shall have
the authority to act for City under this Agreement. The Project Administrator or
her authorized representative shall represent City in all matters pertaining to the
services to be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
In order to assist Consultant in the execution of its responsibilities under this
Agreement, City agrees to, where applicable, 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.
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. 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 and all applicable federal, state and
local laws and the professional standard of care.
8.2 Consultant represents and warrants to City that it has, shall obtain, and
shall keep in full force in 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, or 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
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, attorney's 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 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).
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 be construed as authorizing any award of attorney's 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 the Consultant.
10. INDEPENDENT CONTRACTOR
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. 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 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.
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
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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 and/or her duly
authorized designee 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.
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, a policy or policies of liability insurance of the type
and amounts described below and in a form satisfactory to City.
14.1 Certificates of Insurance. Consultant shall provide certificates of
insurance with original endorsements to City as evidence of the insurance
coverage required herein. Insurance certificates must be approved by
City's Risk Manager prior to commencement of performance or issuance
of any permit. Current certification of insurance shall be kept on file with
City at all times during the term of this Agreement.
14.2 Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
14.3 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.
14.4 Coverage Requirements.
A. Workers' Compensation Coverage. Consultant shall maintain
Workers' Compensation Insurance and Employer's Liability Insurance for
his or her employees in accordance with the laws of the State of
California. In addition, Consultant shall require each subcontractor to
similarly maintain Workers' Compensation Insurance and Employer's
Liability Insurance in accordance with the laws of the State of California for
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all of the subcontractor's employees. Any notice of cancellation or non-
renewal of all Workers' Compensation policies must be received by City at
least thirty (30) calendar days (10 calendar days written notice of non-
payment of premium) prior to such change. The insurer shall agree to
waive all rights of subrogation against City, its officers, agents, employees
and volunteers for losses arising from work performed by Consultant for
City.
B. General Liabilitv Coverage. Consultant shall maintain commercial
general liability insurance in an amount not less than one million dollars
($1,000,000) per occurrence for bodily injury, personal injury, and property
damage, including without limitation, contractual liability. If commercial
general liability insurance or other form with a general aggregate limit is
used, either the general aggregate limit shall apply separately to the work
to be performed under this Agreement, or the general aggregate limit shall
be at least twice the required occurrence limit.
C. Automobile Liability Coverage. Consultant shall maintain
automobile insurance covering bodily injury and property damage for all
activities of the 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 for each occurrence.
D. Professional Errors and Omissions Insurance. Consultant shall
maintain professional errors and omissions insurance, which covers the
services to be performed in connection with this Agreement in the
minimum amount of one million dollars ($1,000,000).
14.5 Endorsements. Each general liability and automobile liability insurance
policy shall be endorsed with the following specific language:
A. The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insureds with
respect to liability arising out of work performed by or on behalf of
the Consultant.
B. This policy shall be considered primary insurance as respects to
City, its elected or appointed officers, officials, employees, agents
and volunteers as respects to all claims, losses, or liability arising
directly or indirectly from the Consultant's operations or services
provided to City. Any insurance maintained by City, including any
self-insured retention City may have, shall be considered excess
insurance only and not contributory with the insurance provided
hereunder.
C. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with
respect to the limits of liability of the insuring company.
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D. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
E. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to City, its elected or appointed
officers, officials, employees, agents or volunteers.
F. The insurance provided by this policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits, by either party
except after thirty (30) calendar days (10 calendar days written
notice of non-payment of premium) written notice has been
received by City.
14.6 Timely Notice of Claims. Consultant shall give City prompt and timely
notice of claim made or suit instituted arising out of or resulting from
Consultant's performance under this Agreement.
14.7 Additional 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.
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 cotenancy,
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 parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of
Consultant. Assignments of any or all rights, duties or obligations of the
Consultant under this Agreement will be permitted only with the express written
consent of City. Consultant shall not subcontract any portion of the work to be
performed under this Agreement without the prior written authorization of City.
17. OWNERSHIP OF DOCUMENTS
Each and every report, draft, map, record, plan, document and other writing
produced ("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
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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 to City upon prior written request.
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 spec 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.
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 authorizes in writing the release of information.
19. INTELLECTUAL PROPERTY INDEMNITY
The Consultant shall defend and indemnify City, its agents, officers,
representatives and employees against any and all liability, including costs, for
infringement of any United States' letters patent, trademark, or copyright
infringement, including costs, contained in Consultant's drawings and
specifications provided under this Agreement.
20. RECORDS
Consultant shall keep records and invoices in connection with the work 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
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shall have an immediate right to appeal to the City Manager or his/her designee
with respect to such disputed sums. Consultant shall be entitled to receive
interest on any withheld sums at the rate of return 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 paragraph 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
The Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act"), which (1) requires such
persons to disclose any financial interest that may foreseeably be materially
affected by the work performed under this Agreement, and (2) prohibits such
persons from making, or participating in making, decisions that will foreseeably
financially affect such interest.
If subject to the Act, Consultant shall conform to all requirements of the Act.
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 Consultants
violation of this Section.
25. NOTICES
All notices, demands, requests or approvals 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. All notices, demands, requests or approvals from
Consultant to City shall be addressed to City at:
Attn: Revenue Division Manager
Administrative Services Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA, 92663
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Phone: 949-644-3144
All notices, demands, requests or approvals from CITY to Consultant shall be
addressed to Consultant at:
Attention: Brad Burgess
2001 P Street, Suite 200
Sacramento, CA 95811
Phone: 916.595.2646
Fax: 916.914.2372
26. TERMINATION
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 parry shall be
deemed in default in the performance of this Agreement. If such default is not
cured within a period of five (5) calendar days, or if more than five (5) calendar
days are reasonably required to cure the default and the defaulting party fails to
give adequate assurance of due performance within five (5) 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.
Notwithstanding the above provisions, City shall have the right, at its sole
discretion and without cause, of terminating this Agreement at any time by giving
ten (10) 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.
27. 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. 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.
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29. 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.
30. 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.
31. 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.
32. 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.
33. 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.
34. CONTROLLING LAW AND VENUE
The laws of the State of California shall govem 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.
35. 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 of race, religion, color, national origin, handicap, ancestry, sex or age.
36. NO ATTORNEYS' FEES
In the event of a legal dispute under the terms of this Agreement, the prevailing
party shall not be entified to attomeys' fees.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED AS TO FORM:
OFFICE OF TE Clv� ATTORNEY:
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Leonie Mulvihill AUIr g�4ha
Acting City Attomey
ATTEST:
M
Leilani Brown,
City Clerk
CITY OF NEWPORT BEACH,
A Municipal Corporation
By:
Keith Curry
Mayor
CONSULTANT:
By:
(Corporate Officer)
Title:
Print Name:
By:
(Financial Officer)
Title:
Print Name:
Attachments: Exhibit "A"— Scope of Services
Exhibit "B" — Schedule of Billing Rates
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Exhibit "A"
Scope of Services
Project Organization
The project shall be divided into the following six phases:
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• Year 1 (FY 2009-10):
Update citywide cost allocation plan
Perform initial comprehensive Harbor Tidelands user fee study
Update Police user fee study
Catalog user fee services for all user fee departments listed in project years 1, 2 and 3 along
with developing a linkage from each service name to the corresponding City revenue code.
• Year 2 (FY 2010-11):
Update Administrative Services, Library, Recreation & Senior Services and Utilities user fee
studies.
• Year 3 (FY 2011-12):
Update Building, Fire and Code Enforcement, Planning, Public Works user fee studies.
• Year 4 (FY 2012-13):
Update citywide cost allocation plan, Harbor Tidelands and Police user fee studies.
• Year 5 (FY 2013-14):
Update Administrative Services, Library, Recreation & Senior Services and Utilities user fee
studies.
• Year 6 (FY 2014-15):
Update Building, Fire and Code Enforcement, Planning, Public Works user fee studies.
Detailed Project Description: User Fee Updates
For the fee study departments described above, the areas of update/analysis will
include:
• The addition of any new fee services.
• Review/revise all time estimates included in the previous study and capture new time
estimates for new services. Note — the initial Harbor Tidelands study will be conducted with
all new time information, which will be gathered on site from City staff. Update annual
volume and revenue statistics for all fee services.
• Update all staffing and expenditure information.
• Update all cross -department support calculations.
• Provide revenue forecasting based on recommended fee levels.
• Update department overhead rates.
• Prepare for Council approval the annual citywide service fee schedule reflecting the results
of the year's user fee update and cost allocation plan (if applicable), and the changes to the
Consumer Price Index from the previously adopted service fee schedule. The staff report
for the Council presentation will be created by City staff.
• Following Council adoption of the service fee schedule, for each department - create
individual comprehensive user fee service and copy & duplication charges catalogs. The
user fee catalog will be created in a manner that creates a better linkage between individual
departmental user fee levels and the corresponding departmental general fund revenue by
tying service fees and transaction counts to general fund revenue accounts. This catalog
will allow enhanced revenue forecasting and budgeting by incorporating staffing changes
and volume statistics.
• Any department not included in that year's detailed analysis will have their user fees
updated by the local CPI (i.e. the Planning fees will be updated by the CPI factor in years 1
and 2; the Police fees will be updated by the CPI factor in years 2 and 3).These updates will
be applied and forecasted revenue information will be provided for each department.
Detailed Project Description: Cost Allocation Plan
For the cost allocation plan, the areas of update/analysis will include:
• Review/update of all central service departments (add/remove any divisions)
• 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
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Exhibit "B"
Schedule of Billing and Rates
Year 1:
Update citywide cost allocation plan - $12,500.00
Update Police user fee study - $2,500.00
Perform initial comprehensive Harbor Tidelands user fee study - $25,000.00
Catalog user fee services for all user fee departments listed in project years 1, 2 and 3 along
with developing a linkage from each service name to the corresponding city revenue code —
included
Total - $40,000.00
Year 1 will be billed as follows:
50% after all initial department meetings/interviews are conducted
30% upon receipt of first draft of cost allocation plan, Police and Harbor
Tidelands fee study
20% upon receipt of final cost allocation plan, Police and Harbor Tidelands fee
study and departmental fee service catalog
Year 2:
Update Administrative Services user fee study - $3,500.00
Update Library user fee study - $2,500.00
Update Recreation & Senior Services user fee study - $4,500.00
Update Utilities user fee study - $4,500.00
Total - $15,000.00
Year 2 will be billed as follows:
50% upon receipt of 13t user fee draft for all departments
40% upon receipt of 2nd user fee draft for all departments
10% upon receipt of final report and presentation
Year 3:
Update of Building user fee study - $4,500.00
Update of code Enforcement user fee study - $2,000.00
Update of Fire user fee study - $4,500.00
Update of Planning user fee study - $4,500.00
Update of Public Works user fee study - $4,500.00
Total - $20,000.00
Year 3 will be billed as follows:
50% upon receipt of 1st user fee draft for all departments
40% upon receipt of 2"d user fee draft for all departments
10% upon receipt of final report, presentation and departmental fee service
catalog
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Year 4:
Update Police user fee study - $2,500.00
Update Harbor Tidelands user fee study - $10,000.00
Update citywide cost allocation plan - $12,500.00
Total - $25,000.00
Year 4 will be billed as follows:
50% after all initial department meetings/interviews are conducted
30% upon receipt of 151 draft of cost allocation plan and Police and Harbor
Tidelands fee study
20% upon receipt of final cost allocation plan and Police and Harbor Tidelands
fee study
Year 5:
Update Administrative Services user fee study - $3,500.00
Update Library user fee study - $2,500.00
Update Recreation & Senior Services user fee study - $4,500.00
Update Utilities user fee study - $4,500.00
Total - $15,000.00
Year 5 phase will be billed as follows:
50% upon receipt of 1st user fee draft for all departments
40% upon receipt of 2nd user fee draft for all departments
10% upon receipt of final report, presentation and departmental fee service
catalog .
Year 6:
Update of Building user fee study - $4,500.00
Update of Code Enforcement user fee study - $2,000.00
Update of Fire user fee study - $4,500.00
Update of Planning user fee study - $4,500.00
Update of Public Works user fee study - $4,500.00
Total - $20,000.00
Year 6 will be billed as follows:
• 50% upon receipt of 15t user fee draft for all departments
• 40% upon receipt of 2"0 user fee draft for aU departments
• 10% upon receipt of final report, presentation and departmental fee service
catalog
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Hourly Billing Rates
For any services outside or in addition to the Scope of Services ("Extra Work") described in
Exhibit "A", City shall pay the Consultant for the services on a time and expense basis in 11le
hour increments at the following rate(s)..
Senior Partner: $250
Senior Associate: $185
Associate: $165
Senior Consultant: $155
Production Coordinator. $85
Project related expenses (mileage, air travel, car rental, lodging, meals while on site,
duplication) shall be billed at cost.
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