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Home My WebLink About1996-08-20; City Council; 13777; Cost Allocation Plan and User Fee Study0 0 . CITY OF CARLSBAD - AGENDA BILL $7 I AB# /g;? 77 I TITLE: AGREEMENT WITH I DEPT HD. 4 I MTG. 8/20/96 I MANAGEMENT SERVICES INSTITUTE I CITY ATTY4 1 DEPT. FIN TO PREPARE A COST 4 I ALLOCATION PLAN AND USER FE€ STUDY I CITY MGW Q g clr: 5 z .. 0 F 0 4 J 0 z 3 0 0 - RECOMMENDED ACTION: Approve Resolution No. 96- 2% f authorizing the Mayor to execute a c between the City of Carlsbad and Management Services Institute to prepare allocation plan and user fee study. - ITEM EXPLANATION: In February 1996, City staff recognized the need to update its cost allocation pl; user fee study for the General and Development-related fees. The last stuc completed in 1990. Assembly Bill 1600 limits the fees charged by local agencic states that fees may not exceed the estimated reasonable cost of providing the SE A cost allocation plan and user fee study will review the City’s fees in accordance v 1600. A Request for Proposal (RFP) was distributed to qualified vendors. The RFP deli the consultant responsibilities as follows: preparing the cost allocation plan, pn PC-based cost allocation software (which is capable of being updated by City stal preparing a User Fee Study which utilizes the cost allocations derived in th allocation plan. In total, the request for proposal was sent to nine vendors and the City receivt proposals. A screening committee, consisting of five members, was formed to revi proposals, complete reference checks, and interview and evaluate the consul Management Services Institute was the unanimous choice of the screening comr Management Services institute clients are located throughout the United State local clients including the City of Riverside and the City of Poway. Reference Management Services Institute’s clients have been universally positive. An agreement has been negotiated and the standard consultant agreement for the Carlsbad has been prepared, as shown in Exhibit 2. FISCAL IMPACT The fees stated in the proposals ranged from $30,000 to $80,000. The pr submitted by Management Services Institute provides the required services for i amount of $30,000. The cost of these consultant services has been appropriated 1996-97 Operating Budget for the Finance department. .. m 0 PAGE TWO OF AGENDA BILL NO. 13,? qq EXHIBITS 1. Resolution No. ?h -28 1 authorizing the Mayor to execute a contract fol preparation of a cost allocation plan and user fee study. 2. Contract between the City of Carlsbad and Management Services Institute. ;- 1 2 3 4 5 m 0 RESOLUTION NO. 96-281 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH MANAGEMENT SERVICES INSTITUTE TO PREPARE A COST ALLOCATION PLAN AND USER FEE STUDY. WHEREAS, staff remgnizes a need for specific expertise to prepare a cos 6 allocation plan and user fee study; and 7 WHEREAS, proposals from consultants were solicited and evaluated by sl 8 and g and Management Services Institute was determined to best meet the needs of the Cit! 10 WHEREAS, the total cost of the services provided to the City by Managen 11 Ill 18 between the City of Carlsbad and Management Services Institute. 17 2. That the Mayor of the City of Carlsbad is authorized to sign the contract 16 1. That the above recitations are true and correct. 15 Carlsbad, California, as follows: 14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 13 department budget, 12 Services Institute shall not exceed $30,000, and such funds are available in the Finan 19 ! Ill 20 I Ill 21 ill 23 Ill 22 lil 24 1 Ill 25 I lll 26 111 27 Ill 28 e I e 1 2 3. That the fees and compensation for said services shall not exceed 3 Management Services Institute. 4 $30,000 and shall be described in the contract between the City of C.arlsbad and 5 PASSED, APPROVED AND ADOPTED at a regular meeting of the C 6 Council on the 20th day of August , 1996, by the following vote, to wit: 7 NOES: None 8 AYES: Council Members Lewis, Nygaard, Kulchin, Hall and Finr 9 10 11 12 13 ABSENT: None 1 1 1 ATTEST: 14 15 16 17 hB7Ryu;bkuL, 18 ALETHA L. RAUTENKRANZ, city dle& 19 I 1 (SEAL) 2o I 21 22 23 24 25 26 27 28 0 0 AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT, made and entered into as of the 22nd day AUGUST , 19 96 , by and between the CITY OF CARLSBAD, a municip corporation, hereinafter referred to as "City", and Management Services Institute (MSI hereinafter referred to as "Contractor." RECITALS City requires the services of a consultant to provide the necessary consultir services for preparation of a Cost Allocation Plan and User Fee Study; and Contract1 possesses the necessary skills and qualifications to provide the services required h the City; NOW, THEREFORE, in consideration of these recitals and the mutual covenani contained herein, City and Contractor agree as follows: 1. CONTRACTOR'S OBLIGATIONS A. Contractor will provide two cost allocation plans for the City. One w~ include all costs allowable under Article XlllB for use with the fee study and one wi follow the guidelines of the Federal A-87 process for use with grant and reimbursabl programs. 1. Contractor will provide PC-based cost allocation software to the City along with a license to use the software in perpetuity. 2. Contractor will train City staff on the use of the software and the steps rev. 3/25/9 1 0 0 necessary to update the cost allocation plan on an annual basis. 3. Contractor will provide technical supportas needed. B. Contractor will prepare a User Fee Study utilizing the cost allocatior derived from the cost allocation plan. The User Fee Study will encompass all operatir fees including development-related fees. 1. Contractor will interview City staff to identify end-user services to insure that costs from all departments directly involved with a service are included in tt cost of the service. 2. Contractor will use the costs calculated from the above Cost Allocation Plan for the distribution of general City indirect costs to each end-us1 service. 3. Contractor will prepare a final report that identifies current fees an1 presents the recommended fees. 4. Contractor will assist the Council in the review and adoption of revised service fees and assist staff in the implementation of the revised service fees. 5. Contractor will train City staff in the use of the copyrighted and computerized Municipal Business System which staff can use to update the fees. C. Contractor will provide services in conformance with its proposal. Contractor’s proposal is hereby incorporated into this agreement as Exhibit A. 2. CITY OBLIGATIONS The City shall provide the necessary information to prepare the cost allocatic rev. 31251 2 * 0 l plan and fee study and be available for questions and consultations. 3. PROGRESS AND COMPLETION The work under this contract will begin within ten (IO) days after receipt notification to proceed by the City and shall be completed within 12 months of that dal Extensions of time may be granted if requested by the Contractor and agreed to writing by the Finance Director. 4. FEES TO BE PAID TO CONTRACTOR The total fee payable for the services to be performed shall be $30,000. b other compensation for services will be allowed except those items covered t supplemental agreements per Paragraph 8, "Changes in Work ", Contractor will submit progress payments to City based on the percent of WOI completed. 5. DURATION OF CONTRACT This agreement shall extend for a period of 12 months from the date ( commencement of the work. The contract may be extended by the City Manager fc additional six (6) month periods or parts thereof, based upon a review of satisfactor performance and the City's needs. The parties shall prepare extensions in writin indicating effective date and length of the extended contract. 6. PAYMENT OF FEES Payment of approved items on the invoice shall be mailed to the Contractc within 30 days of receipt of the invoice. rev. 312519 3 0 0 7. FINAL SUBMISSIONS Within IO days of completion and approval of the cost allocation plan and fe study the Contractor shall provide to the City deliverables as described in Paragraph “Contractor Obligations.’’ 8. CHANGES IN WORK If, in the course of the contract, changes seem merited by the Contractor or th city, and informal consultations with the other party indicate that a change in th conditions of the contract is warranted, the Contractor or the City may request a chang in contract. Such changes shall be processed by the City in the following manner: letter outlining the required changes shall be forwarded to the City by Contractor t inform them of the proposed changes along with a statement of estimated changes i charges or time schedule. A Standard Amendment to Agreement shall be prepared b the City and approved by the City according to the procedures described in Carlsba Municipal Code Section 3.28.172. Such Amendment to Agreement shall not rend€ ineffective or invalidate unaffected portions of the agreement. 9. COVENANTS AGAINST CONTINGENT FEES The Contractor warrants that their firm has not employed or retained an’ company or person, other than a bona fide employee working for the Contractor, tc solicit or secure this agreement, and that Contractor has not paid or agreed to pay an company or person, other than a bona fide employee, any fee, commissior percentage, brokerage fee, gift, or any other consideration contingent upon, or resultin! rev. 3/25/9( 4 . e 0 from, the award or making of this agreement. For breach or violation of this warrant the City shall have the right to annul this agreement without liability, or, in its discretio fo deduct from the agreement price or consideration, or otherwise recover, the f amount of such fee, commission, percentage, brokerage fees, gift, or contingent fee. IO. NONDlSCRlMlNATlON CLAUSE The Contractor shall comply with the state and federal laws regardir nondiscrimination. 11. TERMINATION OF CONTRACT This agreement may be terminated by either party upon tendering thirty (3 days written notice to the other party. In the event of such suspension or terminatiol upon request of the City, the Contractor shall assemble the work product and put sat" in order for proper filing and closing and deliver said product to City. In the event I termination, the Contractor shall be paid for work performed to the termination datl however, the total shall not exceed the fee payable under paragraph 4. The Ci Manager shall make the final determination as to the portions of tasks completed an the compensation to be made. 12. CLAIMS AND LAWSUITS The Contractor agrees that any contract claim submitted to the City must b asserted as part of the contract process as set forth in this agreement and not i anticipation of litigation or in conjunction with litigation. The Contractor acknowledge that if a false claim is submitted to the City, it may be considered fraud and thl rev. 3J2.519 5 <I e' e - Contractor may 'be subject to criminal prosecution. The Contractor acknowledges t 1 California Government Code sections 12650 et sea., the False Claims Act, provides civil penalties where a person knowingly submits a false claim to a public entity. Tht provisions include false claims made with deliberate ignorance of the false informat or in reckless disregard of the truth or falsity of information. If the City of Carlsbad sec to recover penalties pursuant to the False Claims Act, ,it is entitled to recover litigation costs, including attorney's fees. The provisions of Carlsbad Municipal Code sections 3.32.025, 3.32.0; 3.32.027 and 3.32.028 pertaining to false ciaims are incorporated herein by referenc 13. STATUS OF THE CONTRACTOR The Contractor shall perform the services provided for herein in Contractor's o way as an independent contractor and in pursuit of Contractor's independent callir and not as an employee of the City. Contractor shall be under control of the City of as to the result to be accomplished, but shall consult with the City as provided for in t request for proposal. The persons used by the Contractor to provide services under tl agreement shall not be considered employees of the City for any purposes whatsoeve The Contractor is an independent contractor of the City. The payment made the Contractor pursuant to the contract shall be the full and complete compensation which the Contractor is entitled. The City shall not make any federal or state t withholdings on behalf of the Contractor or hidher employees or subcontractors. Tt rev. 31251 6 I 0 0 'I City shall not be required to pay any workers' compensation insurance ( unemployment contributions on behalf of the Contractor or hidher employees ( subcontractors. The Contractor agrees to indemnify the City within 30 days for any ta retirement contribution, social security, overtime payment, unemployment payment ( workers' compensation payment which the City may be required to make on behalf the Contractor or any employee or subcontractor of the Contractor for work done undl this agreement or such indemnification amount may be deducted by the City from ar balance owing to the Contractor, The Contractor shall be aware of the requirements of the Immigration Refor and Control Act of 1986 and shall comply with those requirements, including, but n limited to, verifying the eligibility for employment of all agents, employee subcontractors and Consultants that are included in this agreement. 14. CONFORMITY TO LEGAL REQUIREMENTS The Contractor shall cause all final reports to conform to ail applicab requirements of law: federal, state and local. Contractor shall provide all necessa supporting documents, to be filed with any agencies whose approval is necessary. Contractor agrees to allow City or its designated representative to monitor, aud review, and examine the methods, procedures, and results of Contractor. 15. OWNERSHIP OF DOCUMENTS All plans, studies, sketches, drawings, reports, and specifications as here required are the property of the City, whether the work for which they are made I rev. 31251 7 0 0 - executed or not. In the event this contract is terminated, all documents, plan: specifications, drawings, reports, and studies shall be delivered forthwith to the City Contractor shall have the right to make one (1) copy of the plans for hidher records. 17. REPRODUCTION RIGHTS Contractor reports and computer software will be copyrighted to prote Contractor’s intellectual property. Contractor will provide the City with a license to mat( copies of either item in perpetuity for City’s own use. 18. HOLD HARMLESS AGREEMENT Contractor agrees to indemnify and hold harmless the City of Carlsbad and i officers, officials, employees and volunteers from and against all claims, damage losses and expenses including attorney fees arising out of the performance of the wo described herein caused in whole or in part by any willful misconduct or negligent act omission of the contractor, any subcontractor, anyone directly or indirectly employed I any of them or anyone for whose acts any of them may be liable, except where causf by the active negligence, sole negligence, or willful misconduct of the City of Carlsbad Contractor shall at its own expense, upon written request by the City, defend a1 such suit or action brought against the City, its officers, officials, employees ar volunteers. Contractor’s indemnification of City shall not be limited by any prior subsequent declaration by the Contractor. 19. ASSIGNMENT OF CONTRACT The Contractor shall not assign this contract or any part thereof or any monil rev. 3/25) 8 e a - due thereunder without the prior written consent of the City. 20. SUBCONTRACTING If the Contractor shall subcontract any of the work to be petformed under th contract by the Contractor, Contractor shall be fully responsible to the City for the ac and omissions of Contractor's subcontractor and of the persons either directly ( indirectly employed by the subcontractor, as Contractor is for the acts and omissions persons directly employed by Contractor. Nothing contained in this contract sh; create any contractual relationship between any subcontractor of Contractor and tl City. The Contractor shall bind every subcontractor and every subcontractor of subcontractor by the terms of this contract applicable to Contractor's work unle! specifically noted to the contrary in the subcontract in question approved in writing I the City. 21. PROHIBITED INTEREST No official of the City who is authorized in such capacity on behalf of the City negotiate, make, accept, or approve, or take part in negotiating, making, accepting, approving of this agreement, shall become directly or indirectly interested personally this contract or in any part thereof. No officer or employee of the City who is authoriz in such capacity and on behalf of the City to exercise any executive, supervisory, similar functions in connection with the performance of this contract shall becor directly or indirectly interested personally in this contract or any part thereof. 22. VERBAL AGREEMENT OR CONVERSATION rev. 3/2! 9 e e No verbal agreement or conversation with any officer, agent, or employee of tt City, either before, during or after the execution of this contract] shall affect or modi any of the terms or obligations herein contained nor entitle the Contractor to at additional payment wtiatsoever under the terms of this contract. 23. SUCCESSORS OR ASSIGNS Subject to the provisions of Paragraph 18, "Hold Harmless Agreement," i terms, conditions, and provisions hereof shall inure to and shall bind each of the partic hereto, and each of their respective heirs, executors, administrators] successors, ar assigns. 24. EFFECTIVE DATE This agreement shall be effective on and from the day and year first writtt above. 25. CONFLICT OF INTEREST The City has determined, using the guidelines of the Political Reform Act and tl City's conflict of interest code, that the Contractor will not be ,required to file a conflict interest statement as a requirement of this agreement. However, Contractor here acknowledges that Contractor has the legal responsibility for complying with tl Political Reform Act and nothing in this agreement releases Contractor from tk responsibility. 26. INSURANCE The Contractor shall obtain and maintain for the duration of the contract and a rev. 3/25 10 e 0 and all amendments insurance against claims for injuries to persons or damage property which may arise out of or in connection with performance of the wo hereunder by the contractor, his agents, representatives, employees or subcontractor Said insurance shall be obtained from an insurance carrier admitted and authorized do business in the State of California. The insurance carrier is required to have current Best's Key Rating of not less than "A-:VI and shall meet the City's policy f insurance as stated in Resolution No. 91-403. A. Coverages and Limits. Contractor shall maintain the types of coverages and minimum lim indicated herein, unless a lower amount is approved by the City Attorney or C Manager: 1. Comprehensive General Liability Insurance. $1,000,000 combinc single-limit per occurrence for bodily injury, personal injury and property damage. If tl submitted policies contain aggregate limits, general aggregate limits shall apl separately to the work under this contract or the general aggregate shall be twice t required per occurrence limit. 2. Automobile Liability (if the use of an automobile is involved ' contractor's work for the City). $1,000,000 combined single-limit per accident for boc injury and property damage. 3. Workers' Compensation and Employer's Liability. Worke Compensation limits as required by the Labor Code of the State of California a rev. 3/25 11 * 0 t Ernpbyer’s Liability limits of $1,000,000 per accident for bodily injury. 4. Professional Liability. Errors and omissions liability appropriate ’ the contractor’s profession with limits of not less than $108,000 per claim. Coverag shall be maintained for a period of five years following the date of completion of tl work. B. Additional Provisions. Contractor shall ensure that the policies of insurance required under th agreement contain, or are endorsed to contain, the following provisions. 1. The City shall be named as an additional insured on all policic excluding Workers’ Compensation and Professional Liability. 2. The contractor shall furnish certificates of insurance to the Ci before commencement of work. 3. The contractor shall obtain occurrence coverage, excludir Professional Liability which shall be written as claims-made coverage. 4. This insurance shall be in force during the life of the agreement ar any extension thereof and shall not be canceled without 30 days prior written notice the City sent by certified mail. 5. If the contractor fails to maintain any of the insurance coverage required herein, then the City will have the option to declare the contractor in breach, ( may purchase replacement insurance or pay the premiums that are due on existir policies in order that the required coverages may be maintained. The contractor rev. 3/23 12 0 0 1 responsible for any payments made by the City to obtain or\ maintain such insuranc and the City may collect the same from the contractor or deduct the amount paid fro any sums due the contractor under this agreement. rev. 312: 13 . e 0 i 27, RESPONSIBLE PARTIES I The name of the persons who are authorized to give written notices or to receil written notice on behalf of the City and on behalf of the Contractor in connection wi the foregoing are as follows: For City: Title: Finance Director Name: Lisa Hildabrand Address: 1200 Carlsbad Villaqe Drive Carlsbad, CA 92008 For Contractor: Title: President Name: Albert Richard Kermer, Jr. Address: 2545 E. Chapman Avenue, Suite 103 Fullerton, CA 92631 28. BUSINESS LICENSE Contractor shall obtain and maintain a City of Carlsbad Business License for t duration of the contract. 29. ENTIRE AGREEMENT This agreement, together with any other written document referred to contemplated herein, embody the entire agreement and understanding between I parties relating to the subject matter hereof. Neither this agreement nor any provisi hereof may be amended, modified, waived or discharged except by an instrument writing executed by the party against which enforcement of such amendment, waiver discharge is sought. 14 rev. 312: .:. (I c ,' v I , Executed by Contractor this B - day of ,194 CONTRACTOR: cln OF iLBAD, a municipal MUNICIPAL SERVICES INSTITUTE (name of Contractor) ALBERT RICHARD KERMER, JR., PRESIDENT ATTEST: WA L!k$Ee City Clerk August 22, 1996 Date (Proper notarial acknowledgment of execution by Contractor must be attached.) (President or vice-president and secretary or assistant secretary must sign for corpl tions. If only one officer signs, the corporation must attach a resolution certified by secretary or assistant secretary under corporate seal empowering that officer to t the corporation.) APPROVED AS TO FORM: RONALD R. BALL City Attorney BY k &-x rLra-f Deputy Ci Atto ney rev. 312 15 w PURPOSE ACKNOWGMENT . - ~~~1II111~11IIIIIllI111111II11111111111IIIII11111111111111I1I111111111111111111I11111I111IItl1111III111111IIIII11l - : TATE OF CALIFORNIA - 14 - z COUNTY OF C)RA%GE: Id I11 - - On = o~i:';.yp/j personally appeared before me, notary public, - $;CRYST{\\- G&g;L,y{;g$, - - :J<($L.;<l_g\'i' !{?YC!..IR:RD xr.z;>jz;?. yi3.q - ~ - - - - - - - - - - - - q&$gfi&fi$;ssm ;*gi3;z -or - proved to me on the basis of satisfactory evidence - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - Official Notary Seal to be the person(s) whose name(s) is/are subscribed to within instrument and acknowledged to me that he/she/ executed the same in his/her/their authorized capacity( and that by his/her/their signature(s) on the instrument person(s), or the entity upon behalf of which the persc acted, executed the instrument. Witness my hand and official seal. Signature of Notary: - - = DESCRIPTION OF ATTACHED DOCUME CAPACITY CLAIMED BY SIGNER - INDIVIDUAL ' CORPORATE OFFICERS = Title Or Type Of Document: Title(s): ::;,:;.-:: ;.-..;-. ....... - - - - - - - .. ...... ..... " .............. - ....... .._ ........... ..; ........... ..... ............ ...... ... ......... ...... ....... .. .. .< - .. ....... .i :.: -_ - - - .............. - - - - Number Of Pages: - - - - ... LIMITED 1 PARTNER(S) __ -.. _. .... .. .. " " ._ - - - - Date Of Document: GENERAL - - - .. ...... ... AlTORNEY-IN-FACT .. ._ ..: ;, ::> .,:, - .: :.I: .: :..: ...... (,t&fic,j L,ur Ir ,% L4L4 " - 7 " GUARDIAN/CONSERVATOR TRUSTEE(S1 __ OTHER: = Jil-tal f<ch 3 +,l~ @ 3 / kh ZS . a/. -- - - Signerls) Other han Named Above: - - - - - - - - - SIGNER IS I?EPRESENTING: - - NAME OF PERSON(S) OR ENTIT((1ES) - .., .~ .. , ,. .................. /.._... ~ : .:. ,-., - .-. - :.j :.:, :,. i..: .. i.. ........... .I .; : ~ !- ..... ... - . ,I ,\. ...... ........................ - ~. ..... -. ... .., , ...... - cii.. ' ..... <.l ..... - - - - - - - - - - -___ ___ """"" "______ "" = - THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUME-NT DESCRIBED - IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIllI111111111IIIlllllI111111111111IIIIIIIIIIIIIIIlilllllll~lllllllllllllllll LE76 (06/94) W' c v EXHIBIT A MANAGEMENT SERVICES INSTITUTE PROPOSAL TO DEVELOP A COST ALLOCATION PLAN AND FEE STUDY FOR THE CITY OF CARLSBAD, CALIFORNIA .,A p I 1 T \I r c. i ', I-: F' ._ i' t e: < PROPOSAL I TO DEVELOP A w "1 t.' ' - .- .. i " -. i *: t .> r L., -. L <, - I ': t COST ALLOCATION PLAN AND FEE STUDY FOR THE CITY OF CARLSBAD, CALIFORNIA 4 March, 1996 rn Management SI Services Insti I . ... r; - a. i; i, j I -- :. ,- i f " t.. i' 1 i 1 .' t i i 1 ?'I !. t ! .- .. ['._ i, .. I L 1 1 i b" f " ._ 111 W w SlManagement Services Institute .. 2545 E. CHAPMAN AVENUE, SUkTE 103, FULLERTON, CA 92631 (714) 992-9020 FAX (714) 992-9021 I March 20, 1996 City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Finance Department .. IN RE: Request For Proposals -- Cost AIlocation and User Fee Studies Management Services Institute (MSI) beiieves that it is uniquely qualified to perform the st requested by the City in its Request For Proposals. MSI has analyzed the costs of services for over a hundred cities in five states. MSI is located in southern California, has been in business for over fifteen years and appreciate the opportunity to be of service to the City of Carlsbad. Sincerely, Qk&d RICK KERMER, CPA President RK:ll endosures a* W - PROPOSAL SCOPE OF WORK Management Services Institute (MSI) proposes to prepare a Cost Allocation Plan and Fee Study for the City of Carlsbad to allow the City to identify and recover dl of the costs allowable bq Article XIIIB of the State Constitution. To do so MSI propses to perform the following services for the City of Carlsbad: TASK #1: Cost Allocation Studv. MSI proposes to utilize a Windows-based copyrighted software program to prepare the City's cost allocations. MSI would: w Prepare two types of cost allocations. One that will include all costs allowable under California Constitution Article XmB for use with the fee study and one that follows the guidelines of the Federal A-87 process for use with grant and reimbursable programs. w Use the "simultaneous equations" method for computing cost allocations. . Turn over the software to the City at the conclusion of the project along with a license to use the software in perpetuity and training in its use. There will be no additional charges for technical support. City Staff involvement would be approximately 8-12 hours of Finance Department staff time to work with the consultant to determine the best allocation methods, gather that information, and review the results. TASK #2: User Fees and Charges Study. MSI proposes to utilize its copyrighted Municipal Business System which uses a Windows-based stand-alone program to calculate the full-business cost of one unit of service of all current fee and potential fee services provided by the City. MSI would: I Interview City staff to identify "end-user" services which could be charged for but which are currently provided for free. 8 Interview all departments providing "end-user" services to insure that.costs from all departments directly involved with a service are included in the cost of that service. Use the costs calculated from the above Cost Allocation Plan for the distribution of general City indirect costs to each "end-user" service. = Prepare a draft report that identifies the current fees and presents the recommended fees. e, W City of Carlsbad - Request For Proposals . Based on staff and/or Council input, MSI proposes to prepare a final report. . Assist the Council in the review and adoption.of revised service fees and to assist the staff in the implementation of the revised service fees. 9 Train City staff in the use of the copyrighted and computerized Municipal Business System which staff can use to update the fees and perform "what if" analyses on services. Staff automatically becomes a member of the MSI MBSys teem User Group. Additionally, MSI commits as a firm to making our clients independent of consultants fox updating the results of our reports. We have an active user group, an active group of city staff responsible for updating their service costs and MSI has committed to its user group that any improvements in our software will be provided at no cost or nominal cost to our licensed users. Citv Staff involvement would be 4-6 hours of a position(s) from each department over the course of 2-3 meetings to allocate the time of their employees for each of the services,' and review the results. We have found it is also helpful to have a .Liaison assigned to the project, who would then also attend the meetings so as to receive training as the project is ongoing. TIMING OF SERVICES Work would begin within one week of notification by the City. MSI proposes to complete the work based on the following 'schedule: WEEK WORK "" ~"""""""""""""""""""""""""~""""" 2 3 4 6 8 10 12 14 16 17 Initial contact to coordinate projectlobtain data Complete the identification of services to cost and departments providinl those services Complete the collection of service statistics Complete cost allocation process and review the results with the City Complete interviews of staff for service times Provide City staff with a draft of .the formaI Cost Allocation Plan f01 review; revise as required Provide single unit of service cost and revenue sheets with fet recommendations and review with staff Provide five copies of a draft report to City staff for review Provide the City with twenty-five copies of the find report Present final report. to the Council at up to two meetings 2 m, W - City of Curlsbud - Request For Proposals - The above schedule is "comfortable." However, if the City wishes to speed up or slow down the process, that can be done. FEE FOR SERVICES Basic Fee. The basic fee for MSI to perform the above tasks is as follows; unit Cost of Services & Cost Allocation Plan . . . . . . . . . . . . . . . . . . . $30,00~ Possible Additional Costs. The above fees cover all costs except:' (1) any required business license; (2) any insurance premium if the City wishes Professional Liability coverage greater than $100,000 (discussed below); and (3) report reproduction beyond the twenty-five copies of the report which are provided as part of the project cost. We will submit five equal invoices of $6,000 plus any miscellaneous costs from the previous paragraph. The first invoice will be submitted ten 'days after notice to proceed. Each invoice will be due within 30 days of submission. Subsequent invoices would be submitted each month following. Should the report be completed and presented to the City Council prior to the end of the billing schedule, all remaining invoices would be due and payable. Term of Offer. These prices and the Proposal will be honored until September 30, 1996. Project Staff Our professional qualifications are attached hereto as Appendix A. Only firm principals will be involved in the project. Rick Kermer. CPA. President, will direct all of the work, using one or more of the following: Eric Johnson. Vice President - Greta Campbell. Vice President References We have completed similar projects for the jurisdictions listed in Appendix B and would request you to contact them for references. A more extensive and specific list can be provided on request. Please also see listings on individual professional resumes. 3 VI w Cay of Carlsbad - Request For PmposaIs F - SAMPLE AGREEMENT/INSURANCE REQuIREMEpl;rrS MSI has reviewed the sample agreement attached to the RFP and would appreciate the following amendments: (1). MSI carries all of the insurance coverage with the exception that our professional liability coverage is for $100,000. That limit has been acceptable to all of our clients in the past. However, MSI can include $1 Million coverage if the City SO desires in which case the premium would be in addition to our quoted fee for services. Recent quotes for this coverage are between $3,000 and $5,UOO. (2) MSI has no problem with all materials arising out of the contract being the property of the City. However, to protect our intellectual property, MSI would appreciate the right to copyright the report and computer models. If MSI should exercise this right, the City would be given a license to make copies of either item in perpetuity for its own use, CONCLUSION MSI looks forward to being of assistance to the City of Carlsbad in identifying and allocating its costs. END .. 4 I 0 E W APPENDIX A RESUMES e’ W . I ALBERT RICHARD (“RICK”) KERMER, JR. 0 I EDUCATION Bachelor of Arts - University of Chicago-Economics Master of Business Administration - University of Chicago-Accounting and Math Me&ods/Computers PROFESSIONAL CERTIFICATION Certified Public Accountant, State of California PROFESSIONAL EXPERIENCE Management Services Institute - President (1 979-Present) Chief Executive Officer of a diversified management services company. City of Buenn Park-Director of FinancelCity Treasurer (1 976-1 979) Managed a department responsible for administering a $20 million budget and general accounting plu water billing, trq management, business licensing and data processing. Developed and implemented an integrate( on-line financial and program budgeting system. Prepared City’s first Annual Financial Report for FY 1978-79 whit] received a CSMFO Meritorious Award. \ Municipal Finance Consultant, Lecturer and Author (1976-Present) Performed accounting and financial assistance to numerous municipal governments. Assistel redevelopment agencies, housing authorities, and other specialized districts. Provided contractual accounting service to cities includkg service as Acting Controller of Compton. Lecturer on governmental accounting, budgeting, cost accounting and risk management at the University of Souther: California Speaker at several League of California Cities meetings on risk management and cost accounting. Co-autho of several articles on risk management published by the Municipal Finance Officers Association and Western Citie magazine. Co-author of the League of California Cities publication, Cost Accounting for California Cities. City of Lynwood-Fiscd Officer (1 975-1976) Created Finance Department. Established centralized purchasing and review of accounts payablt Administered risk management program. Organized utility billing system for accounting control and follow-up o delinquents. Lance, SOU & Lunghard, CPAs-Senior Auditor (1 97 1-1 975) Audited the Cities of Bell, California City, Claremont, Costa Mesa, Duarte, El Monte, L~mwood, Montclai Oxnard, Rialto, San Dimas and Whittier. Recommended warrant processing and receipting procedures. Reviewe internal control ind recommended changes to strengthen same. Prepared annual financial reports and monitore adherence to generally accepted accounting procedures. Publications: Co-Author of Cost Accounting for California Cities, League of California Cities, 1981 Sacramento, CA **w , RICHARD (,*RICK'*) KERRIER, JR.- winued) - CLIENTS SERVED MUNICIPAL BUSINESS SYSTEM COSC STUDIES City of Bakersfield City of BNlning * City of Allmlbr;l City of Soh Buch FEED ASSETS City of CIVW I Beverly Hills cnb Colnpyl~ City of Big Bey Lake CITY CLERK RECORDS SYSTEM City of Bra City of Carpinteria City of Cera City of CIarrmont County of Contra Costa City of Corona City of Cudahy City of Dinuba City of Dublin. OH City of Folsom City of Foster City C'ity of Gilroy City of Goodyear, AZ City of Hemet City of Hermom Beach City of Highland City of Huntington Besch City of La Mhda City of La Palma City of Lemoore City of Lindsay City of Chino City of Los Altos City of Lynwood City of hiammoth Lakes City of hiah City of Merced City of Milpitas City of Monrovia City of hionterey City of Moreno Valley City of Morgan Hill City of Nonvak City of Oakdale City of Lincoln City of South Gatc CAS11 hWACEhlENT City of Buw Pyk City of Commerce City of Compton La MirA Civic Theater City of Pahdde ACCOUNTING PROCEDURES City of Bum Park ' Commerce Redevelopment Agency City of Compton City of La Habra City of La Pah City of blorgan Hill City of Palmdale South Gate Housing Authority FINAiim ADVISOR Hesoeria Water District Citik of La Mhda and Norwalk E: dissolution of Southeast Park and Recreation Dist City of La PaIma La Palma Community Development DATA PROCESSING City of La Palma OntYicdontciair School District City of Palmdale City of Sm Clementc City of Souh Gate City of Villa Park City of Oceanside Oceanside Harbor District City of Palmdale City of Palm Desert City of Port Hueneme City of Rancho Cuumong;l City of Rancho Pdos Verdes City of Redlands City of Rialto City of Richmond City of Riverside city of san Clemente City of San Juan CIlpiStnno City of Sanger City of Santa Clarita City of Scotis Valley City of Seal bad^ City of Selma City of Siern Madre City of Solm J3each City of South Gate City of Tulm City of Turlock City of Upland City of Villa Park City of Vista City of Westminster MUNICIPAL INCORPORATION City of lfnperia COST ALLOCATION PLAN Ciry of Bum Park City of Nilarnbn Ciry of 1,ynwwd PERSONNEL MANAGEMENT Ontario-Montclair SchoOl District City of Palmdale City of San Juan Cap-0 ORGANIZATIONAL AND MANAGEMENT City of La Mirada Ontario-Montclair School District City of South Gate City of Vista UTILITY RATE STUDIES City of Brea City of Chino ' City of El Segundo LONG RANGE FINANCIAL PLAN City of Chino City of Cudahy City of Lake Elsinore City of South Gate City of Hesperia City of Turlock a - @' W F c ERIC S. JOHNSON EDUCATION Bachelor of Arts - University of Redlands, Redlands, California PROFESSIONAL EXPERIENCE Management Services Institute - Partner (January 1990 - Present) Provide general financial management assistance to cities and ot!m Management Services Institute clients. Unit Distribution - Customer Service Representative (July 1989 - Janwuy 19%) Administered a distribution account for client and acted as a liaison between client and their customers. City of Redlands Redevelopment Agency - Redevelopment Intern . (November 1987 - May 1989) Researched issues related to Redevelopment for the Director. Audited the Agenc) budget. Researched and reported on the Agency's 20% "set-aside" responsibilities for Low & Moderate Income Housing. CLIENTS SERVED MUhTczPAL BUSINESS SYSTEM COST STUDIES City of Banning City of Corona. contra Costa county City of Dublii Ohio City of Highland City of Huntington Beach Imperial County City of Loma Linda City of Long Bwch Marine Bu~ City of Montercy City of Morgan Hill City of Pia, Rivm City of Redlands City of Rialto City of Solan;l Beach City of South bke T&OC Ventun County Fire Distiict City of West &vim city of westmindtr City of Yuba City city of Lindsay City of klilpitas COST ALLOCATION PLAN City of Lynwood City of Solilll;~ Bed SOFTWARE TRAININGIIIVSTcULLATION City of Carpinteria Imperial County City of Lake Havllsu City, AZ City of Lorna Lmda City of Monrovia City of Red Bluff City of South Me TAW PROPERTY TAX TRANSFER City of American Canyon ' Town ofTruckec CANN APPROPRIATION LIMIT Sa Bemardin0 Mts. Community Hospital District Town of Truck= 9. W F GRETA MARIE CAMPBELL .. - EDUCATION Bachelor of Arts - University of California, Irvine, CA Certificate in Risk Management, University of California, Riverside, CA PROFESSIONAL EXPERIENCE Management Services Institute - Partner (November 1993 - Present) Conduct research and analysis of municipal and county services and provide gene: financial management 'assistance to cities, counties, and other Management Services Institute, Inc. clients. City of Lorna Linda, Administrative Assistant (September 1991 - July 1993) Provided management support and assistance to the City Manager on varic projects and services including budget preparation, administrative policy development, risk mapagement, gr; solicitation and preparation, contract management, and public informatim City of La Mirada, Administrative Intern (October 1989 - September 1991) Administered three programs for the Environmental Services Departma which included graffiti removal services, in-house recycling, and community water conservation efforts. Providl assistance with the budget prepdon and presentation. Developed and prepared a comprehensive analysis oft department's projects and services on a monthly basis for the City Manager and City Council. CLlENTS SERVED MUNICIPAL BUSXNESS SYSTEM COST STUDIES City of Goodyear, AZ City of Highland City of Lake Havasu City City of Lawndaie City of Milpitas City of Rocklin City of Solana Beach Imperial county COST ALLOCATION PLAN City of Solana Beach r W' w c I APPENDIX B REFERENCE 'LIST .A VI W MUNICIPAL BUSINESS SYSTEM REFERENCE LET c Jurisdiction Reference Title City of Solana Beach Robert Semple City Manager 6 191755-2998 Barbara Underwood Asst City Mgr/Finance Di city of Huntington Beach Mike Uberauga City Manager 7141536-5575 Robert Franz Dir. of Admin. Svcs. i ! City of Highland Sam Racadio City Manager 7141864-6861 Karin Grance Finance Officer ' City of Pasadena 8 181405-4222 Phillip Hawkey City Manager Mary J. Bradley Finance Director City of South Lake Tahoe Kerry Miller City Manager 9 161573-2000 James Deaton Finance Director City of Riverside 7141782-53 12 City of Chino 7141627-7577 City of Monrovia 8 181359-323 1 City of Sanger . 2091875-2587 . City of Stanton 7141220-2220 John Holmes City Manager Barbara S teckel Admin. Svcs. Dir. Richard Rowe City Manager Rodney S. Gould City Manager Ken Nordoff Finance Director Lee Drummond City Manager Randy S teine Finance Dir. Terry Matz City Manager John Hartman Finance Director City of Tulare Kevin Northcraft City Manager 2091685-2300 Edwin' Warren Finance Director City of Turlock 209/668-5500 City of Dublin, OH 614/761-6500 Steve Kyte City Manager Larrie Sweet Finance Director Tim Hansley City Manager Marcia Grigsby Finance Director City of Yuba City 9 16/74 1-4609 Jeffrey Foltz City Manager Colby Smith Finance Director J .. @’ w ” c * Jrwisdiction City of Rancho Palos Verdes 3 1 O/377-O36O Lake Havasu City, A2 602/453-4141 MUNICIPAL BUSINESS SYSTEM REFERENCE LIST (continued) Peference Title Paul Bussey . City Manager Brent Mattingly Finance Director - Carol Mitchell Mgmnt. Svcs. Dir. Robert P. Leuck City Engineer City of Hemet 7141658-941 1 City of Moreno Valley 714/243-3020 City of Santa Clarita 805/255-4901 ‘ City of Lemoore 2091924-5398 City of Selma 2091896-1064 City of Ceres 2091538-5700 Steve Temple Rich Jacobs Norm King Rick Teichert George Caravalho Steve Stark Allen Goodman Ron Hoggard Manuel Esquibel Judy Bier Bonnie M White Carlos Sanchez Finance Director Sr. Accountant City Manager Finance Director City Manager Admin. Services Director City Manager Asst. City Manager City Manager Finance Dkector Admin. Svcs. Dir, Finance Director City of Westminster 7141898-33 11 Town of Paradise 916/872-6295 City of Carpinteria 8051684-5405 City of Pic0 Rivera 2 131942-2000 City of Rialto 714i820-2525 Brian Mayhew Finance Director Kenneth Whorton Town Manager John Thornberry Finance Officer Dennis Courtemarche City Manager Randy Rassi Finance Director Joseph Guzzetta City Administrator Andrew Green Finance Director , q W‘ w ” MUNICIPAL BUSINESS SYSTEM r REFERENCE LIST (continued) 3 Jwisdiction Reference - Title City of Milpitas 408f942-23 10 Town of Truckee 9 161587-6506 City of Shafter 805/746-636 1 City of Pittsburg 415/439-4850 City of Monterey 408/646-3760 City of Los Altos 415/948-1491 City of Salinas 408f758-7201 ’ City of Corona 7141736-2374 City of Rocklin , 9 16/632-4000 City of Poway 619/748-6600 City of Port Hueneme 805/986-6501 City of Dinuba 209/59 1- 1203 City of Porterville 209/784-1400 City of Folsom 9 16/ 355-7200 Larry Moore City Manager starla Jerome-Robinson Finance Director Stephen Wright ‘ . Town Manager Jill Brown Finance Director Wade McKinney City Administrator . Jo Barrick Finance Director Anthony Donato City Manager Jim Holmes Finance Director Fred Maurer City Manager . Dewey Evans Finance Director Diane Gershuny City Manager Layne Long’ Ass’t City Manager David Mora City Manager John Copeland Finance Director Bill Workman Act City Manager Debbie Foster Senior Accountant Carlos Urmtia City Manager Rex Miller Admn. Svcs. Dir. Jim Bowersox City Manager Peggy Stewart Admin. Svcs. Dir. Richard Velthoen City Manager J, Edward Todd City Manager Ken Grover Finance Director Guy Huffaker City Manager Dave Sanders Finance Director Doug UdeU Asst. City Manager