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HomeMy WebLinkAboutMORELAND & ASSOCIATES - 2004-02-020 0 CITY OF HUNTINGTON BEACH 2000 MAIN STREET CA L I FOR N IA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK LETTER OF TRANSNUTTAL OF ITEM APPROVED BY THE CITY COUNCIL! REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE:�l� TO: [�/ Ln�ra z _S�o� , ATTENTION: Name ICAO / 0 t/E d T , (fo DEPARTMENT: � tet c,i 9u ,�Ia7.ts^ r.,! Go REGARDING: �T a`L - City, state, Zip r See Attached Action Agenda Item gE — A Date of Approval 9�� Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: - jCity Clerk / jr4) Attachments: Action Agenda Page Agreement ✓ Bonds Insurance A -- RCA Deed Other CC:% C ! 7y +� ✓ Na DTFunent RCA Agreement Insurance Other Name 1 tKm�ent) RCA Agreement Insurance Other z� ILLS GC/ . .� .ram N rtrrtent RCA Agreement hisurance Other - aitiJ�a�A +w-� Name artment RCA Agreement insurance Other Name Department RCA Insurance g:lfo1knv /Iettem/ overltr.doc f Telephone: 71 d-536.5227 ) Council/Agency Meeting Held: O.Y- Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied Ci I Sig a ure Council Meeting Date: 4/4/2005 Department ID Number: CA 05-09 CITY OF HUNTINGTON BEACH,': REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PENE(6))-F-PE CU ETWGRAFT C� IT4 A MINISTRATOR C PREPARED BY: Jennifer McGratF , ity Attorney/Daniel Villella, Finance Office SUBJECT: Approve Amendment No. 2 to an Agreement with Moreland & Associates, Inc. for Property Tax Refund Claims Processing and Customer Service and Authorize the Appropriation of $70,000 from the Property Tax Override Refund Fund to Fund the Amendment Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachments)1 Statement of Issue: A second contract amendment with Moreland & Associates is requested to continue the processing of property tax refund claims and to complete the transition of these duties over to City staff. An additional appropriation of $70,000 is requested from the Property Tax Override Fund to fund the amendment. Funding Source: Property Tax Override Refund Undesignated Fund Balance (Fund 707 — Fiscal Impact Statement attached). Recommended Action: 1. Approve a second amendment to the agreement with Moreland & Associates for Property Tax Refund Claims Processing and Customer Service and authorize the City Administrator to execute the agreement. 2. Authorize the appropriation of $70,000 from the undesignated Property Tax Override Refund Fund (707) balance to the Property Tax Override Refund expense account 70730101.69365 (contractual services) to fund the amendment to the agreement. Alternative Actions : Do not approve the amendment and instruct staff on how to proceed. Do not approve the requested appropriation of funds in whole or in part and instruct staff on how to proceed. REQUEST FOR ACTION i MEETING DATE: 4/4/2005 DEPARTMENT ID NUMBER:CA 05-09 Analysis: On February 2, 2004, Council approved an agreement with Moreland & Associates of Newport Beach to assist in the processing of property tax refund claims related to the Howard Jarvis Taxpayers Association case versus the County of Orange. At the time, based on preliminary scoping discussions, staff estimated the total cost of the project could range between $250,000-$500,000 depending on the volume of claims. The initial agreement with Moreland was established at a not -to -exceed amount of $250,000. However, very early into the project, a number of issues arose that made it clear that additional funds would be needed. These included substantial work in order to establish a means to verify claims electronically with the County's property tax database. Also, a number of claims still required manual verification, necessitating that Moreland staff spend significant additional resources. On September 7, 2004, Council approved an amendment to the Moreland agreement for an additional $350,000, bringing the total for the project to $600,000. On January 18, 2005, staff provided a report updating Council on the project. At that time, it was noted that Moreland's contract had reached the not -to -exceed amount of $600,000 and that additional funds would need to be provided to secure their services through a transition of the processing of the few remaining claims over to City staff. At the time, Moreland provided an estimate of nearly $80,000 to complete the remaining claims through April 2005 and train City staff on the property tax database. With the recent turnover of key Staff assigned to the project, current staff met with Moreland to discuss the project and the request for additional funds. Staff was able to negotiate a fee of slightly less than $70,000, which will carry the program through June 2005, bring billings up to date and transition the project management over to City staff. Environmental Status: Not applicable. Attachment(s): S:1Admin\Dil1s\HJTAIRCA HJTA Moreland Amendment #2_doc-2- 3/2312005 3:36 PM ATTACHMENT #1 0 0 AMENDMENT NO.2 TO AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH and MORELAND & ASSOCIATES, INC., FOR PROJECT MANAGER ASSISTANCE PROCESSING PROPERTY TAX OVERRIDE REFUNDS THIS AMENDMENT NO. 2 is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City", and MORELAND & ASSOCIATES, INC., a California corporation, hereinafter referred to as "Consultant." WHEREAS, City and Consultant are parties to that certain agreement, dated February 2, 2004, entitled "Professional Services Contract Between the City of Huntington Beach and Moreland & Associates, Inc. for Project Manager Assistance Processing Property Tax Override Refunds," which agreement shall hereinafter be referred to as the "Original Agreement," and WHEREAS, the Original Agreement was amended by Amendment No. 1 to the Agreement, entered into on October 22, 2004, which modified the not to exceed amount set forth at Section 4 of the Original Agreement, entitled "Compensation," to a total of Six Hundred Thousand Dollars ($600,000.00), and, The original timeline to complete the processing of property tax override refunds, as set forth in Exhibit "A" to the Original Agreement, contemplated the Consultant completing its work by September, 2004, including: (i) turning over to the City the database the Consultant created, and (ii) training City staff to process any remaining and future claims. However, the City has extended that timeline and now wishes to complete the project by June 30, 2005, and City and Consultant wish to amend the Original Agreement and Amendment No. 1, the processing of property tax override refunds, NOW, THEREFORE, it is agreed by City and Consultant as follows: 1. Section 4 of the Original Agreement entitled "Compensation," is hereby amended to read as follows: In consideration of the performance of the services described herein, City agrees to pay Consultant on a time and materials basis at the rates specified in Exhibit "B", a fee including all costs and expenses, not to exceed Six Hundred Seventy Thousand Dollars ($670,000.00_) 2. Consultant will turn over and City shall accept the processing of property tax override refunds, including the database created by a Consultant, by June 30, 2005. In order to accomplish this objective, Exhibit "A" to the Original Agreement is modified to provide for the following transition schedule during January through June 2005: 05 agreelMooreland Amendment No. 2 Processing Refund Claims -- January -June 2005 1. Consultant shall continue to process all refund claims and appeals on an as -needed basis through June 30, 2005. Transition Phase — May -June 2005 i. Consultant (through its subcontractor, DOSE) turns over property tax database to City. 2. Consultant to train designated City staff on database and customer service. 3. Exhibit "B" to the Original Agreement is amended to establish the following hourly fee schedule for the period of January 1, 2005 --- June 30, 2005: Rate Customer Service Manager $75 Project Management Partner $95 Managers $75 Computer Support Manager $120 Programmer S90 4. Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. 05 agree/Mooreland Amendment No. 2 0 IN WITNESS WHEREOF, the parties hereto ha caused this greement to be executed by and through their authorized offices on , 2005. MORELAND & ASSOCIATES, INC. CITY OF HUNTINGTON BEACH, a California corporation a municipal corporation of the State of California By: print name IT ircle one Chairman/President/ Vice Presiden ez 60g4��� print f e ITS: (circle one) a Chief/ Financial Officer/Asst. Secretary - Treasurer Director of Administrative Services APPROVED AS TO FORM: REVIEWED AND APPROVED: ity Admi istrator 05 agree/Mooreland Amendment No. 2 0 0 ATTACHMENT #2 0 0 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION To: Penelope Culbreth-Graft, City Administrator From: Dan Villella, Finance Officer Subject: FIS 2005 — 11 Approve Amendment No. 2 to an Agreement with Moreland & Associates, Inc. for Property Tax Refund Claims Processing and Customer Service and Authorize the Appropriation of $50,000 from the Property Tax Override Refund Fund to Fund the Amendment Date: March 21, 2005 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Approve Amendment No. 2 to an Agreement with Moreland & Associates, Inc. for Property Tax Refund Claims Processing and Customer Service and Authorize the Appropriation of $50,000 from the Property Tax Override Refund Fund to Fund the Amendment ". If the City Council approves this action (total appropriation $70,000), the estimated unreserved Property Tax Refund fund balance at September 30, 2005 will be reduced to $1,729,000. IiWVillella, Finance Officer 03/24/2005 11:54 7148471067 HUNTINGTON BEACH PW 0 PAGE 02/02 LtJ m CERTIFICATE OF LIAEILI :�Ical:cel PHILIP B. ROBINSON INSURANCE 2081.RUSIMESS CENTER DR. It 200 IRVT-DTE, 'CA 92612 lt47493oo . i DOURO MORELAND & ASSOCIATES 1201 DOVE ST # 680 fFxrsr NEwPORT BEACH, CA 92660 949-22 -00 5`� ITV INSURANCE ta-m mmm" 3-8�04 7HIS CEI#TIFICAIM 13 WUED AS A MATTER OF INFOFtMATWN ONLY AND CODERS NO Ft1MM UPON THE CF_W FICATE HO1,DER. THIS GEFMACATE DOES NOT AMEND, WnM OR ALTER THE COVI;PIAQQ AFFOPMED RY 'TH11 ' IDUCIES BELOW. MUR19RS AFFORDM COVERME RARM xAMERXCAN STATES - INSUFZANCE Co. a:PHILAD.RLPHIA INDEMNITY INS CO. a wsu+ a — COVERAGES THE P(XIaES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED.ABOYE FOR THC P'OWY PERIOD WDrAIM. W?vaHSTMDING ANY REOUIREISE W. TERM OR CONDITION OF ANY CONTRACT OR OTHER OOCUMENT WITH ROPECT TO W141CH TH18 CER fRCATE MAY Be ISSUED OR MAY PE;RrA1N, T1t INSURANCE AFFORDED BY 7NEE POLICIES DESCF90EM HEREN 19 SUEUMY TO ALL THE TERMS, EXCLUSIONS AND COND=N9 OF SUCH FOLICIM AGGFE-GATE LIMITS SHOWN MAY HAVE BELN REDUCED BY PAID CLAIMS, No TYI`E OF NSumme POLICY NI>A m -WORKA GRIM).uAmu" 02BO769819 3-26-04 3-26-05 A{ Cf>hR�AGAI t39'1BiAL LIABCITY APROVED EBI, n7l f GE1hIL AGGFrAAYE LMIT APPLIES PER. *ulmlz MCCRA rK, City "or t PCLICY Loc AOT0005m LJOW" ALL OWNM AUTOS A SCHOXA f1 AUTa6 womAd= mmawlm " 02BO769819 3-26-04 . 3-26'-05 QARAQX UASMY ANY AUTO F71C�S8 IaABLirY A accuR 0 1 0zCT001899. *ORXM CONP6Y8a nM AM mwu nlmw truurlY ' " A. UIWC925'74 3-2-6-04 13-26-05 4-1-04 SIPROFESSIONAL IPESDO58662 14-1.-04 I4-1-05 onaroqm CR CPIRIA110fNdllOC/4 AOM BY AL PROV410 s CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL B.E + SPECIAL . FORM CITY, ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS, EMP] VOLUNTEERS.ARE NAMED AS .vpmwf%A-m 140LDISR ( TAoo—A. �raURen: -ft- E� caNcEu�TION `E4OMD AIRY OF 711E ABOV2 lineflim PC UM 6E CAtfCRi® 0m40IEE 711E EXMUUM PATE 111eSW me mmm ML Vmwmwt-".wll: 3. Q. ISAn 711tli'. Rol TO Yam cEffr icm "mm SUM TH AIE LETT, arm I wA"Vm urR10Rr� klPREEIR7�T4'I� CITY OF HUNTINGTON BEACH 2000 MAIN STREET MMTINGTON BEACH, CA 92648 LAM om ocot 11 a0a 0oo FM DAMAN ft woDalI $1 00a 000 MWEV ft am ) 310 000 PERSOM & AIN RIIIRY $1 0 0 0 0 0 0 GO M AMORRUM &21 000 00a >- COMPIOP Afl0 $1 0 0 a 0 0 0 :1 000 Poo BObRv IFAAIAY ow E+etl" � EeeYeldenp � . Wma: AUib aM.Y . ck ACcom = PA AQC AW EWN oommemm S i 61,000,000 AppA1E 31,000,00V >� A7U• E.I.. EA01 AOd OMT LL I . rA eWl.M s l 0 0 0 0 0 0 ox • PpLICY LWs l 1,000,000 32 VEN MEES, AGENTS, 0 0 0 AND 000 ACORN 25-S (7" ---__ � a RMw^ .. -- 0 RCA ROUTING SHEET INITIATING DEPARTMENT: City Attorney/Finance SUBJECT: Approve Amendment No. 2 to an Agreement with Moreland & Associates, Inc. for Property Tax Refund Claims Processing and Customer Service and Authorize the Appropriation of $70,000 from the Property Tax Override Refund Fund to Fund the Amendment COUNCIL MEETING DATE: I Aril 4, 2005 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable ❑ Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Appiicable ❑ Contract/Agreement (w/exhibits if applicable) Attached Not Applicable ❑ (Signed in full by the City Attome Subleases, Third Party Agreements, etc. Attached Not Applicable ❑ ❑ (Approved as to form by City Attome Certificates of Insurance (Approved b the City Attorne ( pp Y Y Y) Attached Not Applicable ❑ ❑ Fiscal Impact Statement (Unbudget, over $5,000) AttachedNot A licable ❑ Bonds (If applicable) Attached Not Applicable ❑ ❑ Staff Report (If applicable) Attached Not Applicable ❑ ❑ Commission, Board or Committee Re ort If applicable P ( PP � Attached Not Applicable El ❑ Findings/Conditions for Approval and/or Denial Attached Not Applicable ❑ ❑ EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk ( ) t EXPLANATION FOR RETURN OF ITEM: 0 RCA Author: Ken Dills - ext. (375) 5055 Contracts Submittal toi, City Clerk's Office' To: Connie Brockway, City Clerk 1. Name of Contractor: Moreland & Associates (Amendment #1) (RCA authorizing also attached) 2. Purpose of Contract: For Example: Audit Services or Water Quality Testing Huntington Lake — Huntington Central Park Process Property Tax Refund Claims. 3. Amount of Contract: $350,000.00 Copy of contract distributed to: The ORIGINAL insurance certificatelwaiver sent to Risk Management Initiating Dept._ City Treasurer _ ORIGINAL bonds sent to Treasurer CITY CLERK'S OFFICE USE ONLY: City Anomey's Office 1171mer"iiil g1 ttymisclformslcity clerk contract transmittal.doc 0 AMENDMENT NO. 1 TO AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MORELAND & ASSOCIATES, INC., FOR PROJECT MANAGER ASSISTANCE PROCESSING PROPERTY TAX OVERRIDE REFUNDS THIS AMENDMENT NO. 1 is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City", and MORELAND & ASSOCIATES, INC., a California corporation, hereinafter referred to as "Consultant." WHEREAS, City and Consultant are parties to that certain agreement, dated February 2, 2004, entitled "Professional Services Contract Between the City of Huntington Beach and Moreland & Associates, Inc. for Project Manager Assistance Processing Property Tax Override Refunds," which agreement shall hereinafter be referred to as the "Original Agreement," and City and Consultant wish to amend the Original Agreement to provide for the payment of additional compensation, NOW, THEREFORE, it is agreed by City and Consultant as follows: ADDITIONAL COMPENSATION Section 4 of the Original Agreement entitled "Compensation," is hereby amended to read as follows: In consideration of the performance of the services described herein, City agrees to pay Consultant on a time and materials basis at the rates specified in Exhibit `B", a fee including all costs and expenses, not to exceed Three Hundred and Fifty Thousand Dollars ($350,000.00). 2. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. 03agreeAesser amend/9/28/04 0 0 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices on Zn, 2004. MORELAND & ASSOCIATES, INC, a California corporation 11 print name ITS: (circle one) Chairman/P si ent/Vice President AND By: print e ITS: (circle one) S�tary/Chief Financial Officer/Asst. Secretary - Treasurer 03agreeAesser amend/]0/5/04 1 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California — --,% APPROVED AS TO FORM: y City Attorney REVIEWED AND APPROVED: ty Administrator NO Y AD. ' CERTIFICATE OF LIABILITY INSURANCE DAIM O&OWY) 3-8-04 csvcER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION PHILIP B. ROBINSON INSURANCE ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 2081,BUSINESS CENTER DR. #� 200 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. IRVINE,A 92 612 9494749300 INSURERS AFFORDING COVERAGE Im"m WSUREA A: AMER I CAN STATES INSURANCE CO. MORELAND & ASSOCIATES INSREAB:PHILADELPHIA INDEMNITY INS CO. 1201 DOVE S T ## 680 INSURER C: NEWPORT BEACH, CA 92660 INSURER0, 9 4 9- 2 2 l- 0 0 2 5 I WSUREf1 E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED.ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ILSR TR TYPE OF WSURANCE POLICY NUMBER POLICY EfTFCTIVE EXPR{A7K}R LIMITS GENERAL LIABILITY 0 2 B 07 6 9 819 3- 2 6- 0 4 3- 2 6- 0 5 EAw Occumu E $1 0 0 0, 0 0 0 A commec P& c3ENERAL LIAa3Lm CLAIMS MADE 1�1 OCCUR FIRE DAMAGE (Any me r1ra) $1, 0 0 0 , 0 0 0 MED EV (Any om parse) $10 0 0 0 PEJiSONAL a ADV IJ,IURY $1, 0 0 0 0 0 0 AP VIED T F RM: EBL]� GL]IERAL AGGREGATE s2,000,000 GENII AGGREGATE LIMIT APPLIES PER: POLICY PRO FT LOC PRODUCTS - Cow oP AGG $1-, 0 0 0 , 0 0 0 -4Q9xNlFER McGRA - FH, City Atiorrie AUTOMOBILE LIABILITY ANY AUTO COMBINED (Fat}SINGY E UMiT BODILY #IJUFrY (.parson) S ALL OWNED AUTOS SCHEDULED AUTOS A HILTED AUTOS NON -OWNED AUTOS 02130769819 3-26-04 3-26-05 BDDLY #kLmy (Pat aseldanQ S PROPERTY DAMAGE (Per aceld-O S GALTAGE LIABILITY AUTO ONLY - EA ACCIDENT $ O±HER THAN EA ACC AUTO ONLY: AOG $ ANY AUTO S A OMM LIABRdTY OCCUR LlCLAIMSMADE OlCT001899 3-26-04 3-26-05 EACH OCCURRENCE $1 , 0 0 0, 0 0 0 AwREmTE 41,000,000 i i DEDUCTIBLE WORKERS COMMSATMN AND - wC giATIL - EMPLOYM UABRM E.L. EACHACCIDENT S 1, 0 0 a j "`0 0 0 EL, DiSEMW - EA EMPLOYEE i 1, 000 000 A OIWC925745 4-1-04 4-1-05 E-LDISiEASE-POICYLIMII S1 000,000 OTHER B PROFESSIONAL IPHSDO58662 4-1-04 4-1-05 1,000 000 DESCRIPTION OF OPERATIONSILGCATLONSNEHtCLESIE]MWSiftg &%M GY fKWffi%VAE9U5PECIAL PROVISIONS CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL BE GIVEN SPECIAL FORM CITY, ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS, EMPLOYEES, AGENTS, AND VOLUNTEERS ARE NAMED AS ADDITIONAL INSUREDS CERTIFICATE HOLDER I I ADDITIONAL INSUEND; IFISIJHER CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 CANCELLATION ANY OF THE ABOVE DESCRIBED POLICRM BE CANCELJ EO 99FORE THE E%PRIA7ION DATE THEREOF, 7NE 14511!!Ia IVSUAER WILL UHWW Y9R`TO MAIL 3 0 DAYs wmrm NOTICE ro T"E CUMMAtE 1i01.OER 14AWD TO THE LEFT, LL wasE AUTHOR #%%.wnu ca-.7 Irraf) MACORD CORPORATION 19M �f CITY OF HUNTINGTON B MEETING DATE: September 7, 2004 DEPARTMENT ID NUMBER:04-3304-33 Council/Agency Meeting Held-- Deferred/Continued to: . Approved © Conditionally Approved ❑ Denied Ci Ci rk' Sign t e = N r_ Council Meeting Date: September 7, 2004 Department I umber: 0�33 SUBMITTED TO: SUBMITTED BY: PREPARED BY: SUBJECT: CITY OF HUNTINGTON BEACH sr REQUEST FOR ACTION C..:J n HONORABLE MAYOR AND MEMBERS OF TH CITY COUNCIL PENELOPE CULBR H-G �T, Citystra r CLAY MARTIN, Director of Administrative Services � Contract Extension for Property Tax Refund Claims Processing and Customer Service Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis; Environmental Status, Attaehment(s) Statement of Issue: Should the City Council approve an extension to the agreement with Moreland & Associates, Inc. to assist in processing property tax refund claims? Funding Source: Sufficient funds (not -to -exceed $350,000) exist as part of FY 2000-01 the property tax override revenue impound. Recommended Action: 1. Authorize the Citv Administrator to extend the agreement with Moreland & Associates, Inc..to assist: in processing property tai refund- claims; 2. Appropriate $350,000 from Fund 707, the Employees' Rate Contingency fund (identified as impounded property tax override revenue from FY 2000-01) to fund the agreement_ Alternative Action(s): The City Council may make the following alternative motion(s)- Do not approve the agreement and provide staff with appropriate direction. i HAProperty Tax override%RCA Approving Contract Extension with Moreland_doc 8/24/2004 7:58 AM iG- CITY OF HUNTINGTON B MEETING DATE: September 7, 2004 DEPARTMENT ID NUMBER:04-3304-33 Council/Agency Meeting Held.- Deferred/Continued to: Approved © Conditionally Approved © Denied Cit CI rk' Sign to e r= Council Meeting Date: September 7, 2004 Department I umber. 04.33: CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND MEMBERS OF THE -,CITY COUNCIL y SUBMITTED BY: PENELOPE CULBR H�T, Citystra r PREPARED BY: CLAY MARTIN, Director of Administrative Services � SUBJECT: Contract Extension for Property Tax Refund Claims Processing and Customer Service 5takement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachments) Statement of Issue: Should the City Council approve an extension to the agreement with Moreland & Associates, Inc. to assist in processing property tax refund claims? Fundino Source: Sufficient funds (not -to -exceed $350,000) exist as part of FY 2000-01 the property tax override revenue impound. Recommended Action: 1. Authorize the City Administrator.to extend the agreement with Moreland &Associates, Inc. to assist in processing property tax refund claims; 2. Appropriate $350,000 from Fund 707, the Employees' Rate Contingency fund (identified as impounded property tax override revenue from FY 2000-01) to fund the agreement. Alternative Actions : The City Council may make the following alternative motion(s): Do not approve the agreement and provide staff with appropriate direction. 1 H:1Property Tax Override\RCA Approving Contract Extension with Moreland.doc 8/2412004 7:58 AM r 0 REQUEST FOR ACTION MEETING DATE: September 7, 2004 DEPARTMENT ID NUMBER:04-3304-33 BACKGROUND In October 2003, in an update on the property tax override refund progress, staff identified a need to secure additional resources to process refund claims. The special project team assigned to refund processing identified five primary roles for the contractor: 1. Work with the city's refund claim database and the county property tax payment database to compare and verify claims electronically; 2. Manually verify claims that could not be sufficiently matched electronically and resolve incomplete refund claims; 3. Respond to public inquiries regarding refund claim status, payments, and related issues; 4. Calculate refund amounts and coordinate the refund distributions; and 5. Assist city staff in developing a system by which the city will process refund claims received after the bulk of the claims are paid. This process will be in place and operating until at least 2006. CONTRACT EXTENSION When the City Council approved the initial contract with Moreland & Associates, staff estimated the cost of the project between $250,000 and $500,000, depending on the volume of (then unknown) exception claims and the extent to which they were examined. At the August 9, 2004 City Council meeting, staff presented a claims processing update that identified the need to extend the contract with Moreland & Associates to a total of $600,000. The contract increase is necessary because only one-third of the claims could be verified electronically and the city, through Moreland & Associates, has undertaken several significant initiatives to resolve/fix claims that otherwise would have been rejected as incomplete/unverifiable. To ensure the successful completion of the project, staff recommends that the city provide a contract extension to Moreland & Associates not to exceed $350,000. All other terms of the original agreement, which include an extension of the normal three-year expiration deadline for the contract to five years and custom hold harmless language that places greater potential liability on the city than does that city's standard professional services agreement, remain in effect. Attachment(s): H:IProperty Tax OverridelRCA Approving Contract Extension with Moreland,doc 8/24/2004 7:58 AM .21 9 0 Attachment 1 0 9 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND MORELAND & ASSOCIATES, INC. FOR PROJECT MANAGER ASSISTANCE PROCESSING PROPERTY TAX OVERRIDE. REFUNDS, THIS AGREEMENT ("Agreement") is made and entered into this day of 200�, by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and MORELAND & ASSOCIATES, INC., a California corporation, hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant te, : assist in processing property tax override refunds; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter .3.03, relating to procurement. of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated. into this Agreement by this reference_ These services shall sometimes hereinafter be referred to as the "PROJECT_" CONSULTANT hereby designates Kathryn Beseau who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 04a2ree/morel and/1l22/04 1 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM: TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence as soon as practicable after the execution of this Agreement by CITY (the "Commencement Date"). This Agreement shall expire on December 31, 2008, unless sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than December 31, 2008. These times may be extended with the written permission of CITY. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit `the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00). 5. EXTRA WORD In the event CITY requires (a) additional services not included in Exhibit "A" and/or (b) changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from 04agree/moreland/ 122104 2 CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CITY hereby agrees to protect, defend, indemnify and hold harmless CONSULTANT, its directors, officers, employees, attorneys, agents, successors, and assignees from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with this Agreement, except such loss or damage which was caused by the sole, negligence or willful misconduct of CONSULTANT. CITY will conduct all defense at its sole cost and expense. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CITY. 04agree/morelandl1i22/04 3 9. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the workperformedby it hereunder. This policy shall provide coverage for CONSULTANT's professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above - mentioned insurance shall not contain a self -insured retention, "deductible" or any other similar form of limitation on the required coverage greater than $10,000 except with the express written consent of CITY. A claims -made policy shall be acceptable if the policy further provides that; A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements): B. CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement: 10. WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE Pursuant to California Labor Code Section 1861, CONSULTANT acknowledges awareness of Section 3700 et seq. of this Code, which requires every 44aareelmore lam& 1122/a4 4 ! 0 employer to be insured against liability for workers' compensation; CONSULTANT covenants that it will comply with such provisions prior to commencing performance of the work hereunder... CONSULTANT shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits. CONSULTANT shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees. CONSULTANT shall furnish to CITY a certificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and CONSULTANT shall similarly require all subcontractors to waive subrogation. 11. INSURANCE In addition to the workers' compensation and employer's liability insurance, CONSULTANT shall obtain and furnish to CITY, a policy of general public liability insurance, including motor vehicle coverage covering the PROJECT. This policy shall indemnify CONSULTANT, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out or in connection with the PROJECT, and shall provide. coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for this PROJECT. This policy shall name CITY, its officers, elected or appointed officials, employees, agents, and volunteers as Additional Insureds, and shall specifically 04agree/moreland/ k 122/04 5 provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONSULTANT's insurance shall be primary. Under no circumstances shall said above -mentioned insurance contain a self - insured retention, or a "deductible" or any other similar form of limitation on the required coverage greater than V 0,000. 12. CERTIFICATES OF INSURANCE, ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; the certificates shall: 1. provide the name and policy number of each carrier and policy; 2. state that the policy is currently in force; and 3. promise to provide that such policies will not be canceled or modified without thirty (30) days' prior written notice of CITY_ CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this Agreement is frilly completed and accepted by CITY. CITY or its representative shall at all times have the right to demand the original or a copy of all the policies of insurance. CONSULTANT shall pay, in a prompt. and timely manner, the premiums on all insurance hereinabove required. CONSULTANT shall provide a separate copy of the additional insured endorsement to each of CONSULTANT's insurance policies, naming CITY, its officers, 04agmelmoreland/ 1 f22l04 6 elected and appointed officials, employees, agents and volunteers as Additional Insureds, to the City Attorney for approval prior to any payment hereunder. 13. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 14. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good. and -workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, reports, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 15. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY; provided, however, those subcontractors set forth in CONSULTANT's proposal to CITY, including, but not limited 04agredmoreland/M2/04 7 to, Dr. Ali Diba, DCSE, INC., shall be deemed to have been consented to by CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and IO hereinabove. 16. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 17. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California. Government Code.. 18. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section I hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail -return receipt requested: TO CITY: City of Huntington Beach ATTN: Pete Grant TO CONSULTANT: Moreland & Associates, Inc. ATTN: Kathryn Beseau 04agreelmoreIan d/1/22/04 8 0 2000 Main Street Huntington Beach, CA 92648 1201 Dove Street, Suite 680 Newport Beach, CA 92660 19. CONSENT When CITY's consent/approval is required under this Agreement, its consentiapproval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 20. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 2 i . SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement.are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 22. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any -of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. 04asreelmoreland/1I22/04 9 0 As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 23. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective': of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 24. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 25. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 349, the City Attorney is the exclusive 04agreelmoreland/ I122/04 10 0 0 legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 26. ATTORNEY' S FEES In the event suit is brought by either party to Construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing party. 27. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 28. GOVERNING LAW This Agreement. shall. be governed;arid construed in accordance with the laws of the State of California. 29. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also. acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party s behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement 04amelmoreiand/lInO4 l 1 9 between the parties respecting the subject matter of this Agreement, and supercede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. . IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above .11 - e MORELAND & ASSOCIATES, INC. By: ; Michael C. Moreland, Secret y AND CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor By: �. ATTEST::. Kathry eseau, Vice President rty fferk APPROVED AS TO FORM: 4A� City ttorney REVIEWED, INITIATED AND APPROVED: City Administrator 64agreefmoretandf]f2n4 12 Exhibit A PROJECT APPROACH This property tax refund project will require adjustments and modifications throughout the implementation process. Therefore, we have developed a flexible approach to meet the needs of the City of Huntington Beach. The work plan- described below is intended as a starting point for further discussions and the development of a final plan. It is fully anticipated that it will be modified to meet the changing needs of the City of Huntington Beach. We have developed a three-phase approach to this project and identified a timeline for completion of each phase. Phase I involves the identification of claims requiring further investigation. Phase 11 involves the resolution of those claims that require fixrther investigation. Phase III involves the production and distribution of refund checks. Planning and coordination between our team management and Peter Grant and his team members are a continuing part of our work plan. We have identified major planning meetings in our work plan, but we anticipate other meetings in order to keep the City fully informed of our progress on the project. As indicated above, our work plan is not in detail because we recognize that is only a starting point in an evolving process. WORK PLAN PHASE T The key elements of Phase .I will include: • Document review • Planning meetings • Obtain an understanding of parameters for a valid claim and the amount of refund • Development of an exception report • Citizen relations A document review will be conducted by Kathryn Beseau, the Engagement Partner and Brenda Grubbs, the Manager of Operations. This will include a review all relevant documents from the court, City, and other sources. Ideally, this review will take place prior to the planning meeting so that pertinent issues arising from the document review can be discussed at our initial planning meeting. The planning meeting will allow the Engagement Partner, and her key managers and Database Consultant to meet with key City staff to finalize expectations and timelines for Phase I of the project. We will provide a written synopsis in bullet -point form within two days of the planning meeting to all of the participants. The combination of both oral and written communication will hells solidify the understanding of everyone involved in the project and allow potential problems to be quickly identified and corrected. Following the planning meeting, and with appropriate input from the City, we will design an exception report in conjunction with our Database Consultant. The exception report will provide all Exhibit A of the information needed to research a claim. Once the report format is designed, our Database Consultant will compare the two databases and provide the results in the exception report format so that the identified exceptions can be investigated during Phase II of the project. Moreland will, at a time to be determined, . assume primary customer service and. inguixy responsibilities_ PHASE H The key elements of Phase II will include: • Planning meetings • Review and research exceptions • Determine the validity of claims A second major planning meeting will allow the Engagement Partner, the Manager of Operations, and key City staff to finalize expectations and timelines for resolving the exceptions identified in Phase I. Again, following the meeting, we will provide a written synopsis in bullet -point form within two days to all meeting participants in order to avoid misunderstandings. Following the identification of exceptions during Phase I of the project, we will develop a written process and time budget for processing the exceptions using the criteria established by the City. The.wxtten process and time budget will be provided to the City for approval. Once the process:is approved, our staff will begin processing the exceptions. Once all information is gathered and analyzed for each claim with an identified exception, a determination will be made as to the validity of the claim. Valid claims will be processed as a part of Phase III of the project. Information on claims determined to be invalid will be transmitted to the City for the notification of the claimants. PHASE III The key elements of Phase III will include: • Planning meetings • Calculate refunds • Issue refiinds A third major planning meeting will allow the Engagement Partner, the Database Consultant, the Manager of Operations and key City staff to finalize expectations and timelines for preparation and distribution of refund cheeks. We will provide a written synopsis in bullet -point form within two days of the planning meeting to avoid misunderstandings. The data file of all verified claims will be processed in order to calculate the appropriate amount of the refund. The resulting electronic file will be the basis for refunds issued by the city's bank or Exhibit A other agreed upon sub -consultant. Moreland & Associates will also coordinate the metering, sorting and mailing or refunds. PHASE IV The key elements of Phase IV will include; • Planning meetings • Developing an on -going process for claim verification and payment • 0 Exhibit A WORK PLAIN FLOW CHART 1 Phase I Phase 111 Exhibit A TIN ELI E AND ABILITY TO COMPLETE PROJECT Deadline for refund claims January 4, 2004 All claims entered into City database April 2004 Phase I Planning meetings December 2003 — April 2004 Refund claims verification begins April 2004 Phase II Planningmeetings M — � March 2044 July 2004 Begin review of exception claims April 2004 Phase III Planning meetings June 2004 — September 2004 Begin issuing refund checks July 1, 2044 Phase IV P — lannmg meetings August 2004 September 2004 On -going process established/ September 2004 Project complete 0 EXHIBIT "B" 0 Payment Schedule A. Hourly Rate: CONSULTANT'S fees for services shall be based upon the following hourly rates: Engagement Partner and Project Advisor S95 Manager of Operations and Manager of Customer Relations S75 Professional staff of Moreland & Associates . S55 Database Consultant S200 Professional staff of Database Consultant S120 B. Out of Pocket Expenses Out of pocket expenses will be billed at cost. C. Refund Check Printing and Mailing Refund check printing and mailing expenses will be paid directly by the city or billed at cost. D. Billin 1. Billing shall be done monthly. 2. CONSULTANT shall submit to CITY an invoice for each payment due. Such invoice shall: A) Reference this Agreement; B) Provide a. detailed accounting of the level' of work performed including the :hours'- worked and rate billed; C) Identify out of pocket expenses billed; and D) Show the total amount of the payment due and the total amount billed to date. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 3. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked -and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 0 0 RCA ROUTING SHEET INITIATING DEPARTMENT: ADMINISTRATIVE SERVICES SUBJECT: Contract Extension for Property Tax Refund Claims Processin and Customer Service COUNCIL MEETING DATE: SEPTEMBER 7, 2004 RCNATTACHMENTS" ;STATUS Ordinance (wlexhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) (Signed in fufl by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXKA�IATIO'N I=OR HISSING ATTA HIVIEt T EkPL NATION FE]I R TURh _0F..ITEt fI: RCA Author: DJA)l OOJill/ 11TY OF HUNTINGTON BEAC MEETING DATE: February 2, 2004 DEPARTMENT ID NUMBER: 04-02 Council/Agency Meeting Held:_�- Deferred/Continued to: Approved 0 Conditionally Approved ❑ Denied City Gle s S n ure Council Meeting Date. February 2, 2004 Department ID Number: 04-02 - CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND MEMBERS OF THE CITY CO*IL;- 1 SUBMITTED BY: RAY SILVER, City Administrator PREPARED BY: PETER GRANT, Principal Administrative Analy 4v_��_ SUBJECT: Selection of a Project Manager to Assist in Processing Property Tax Refund Claims Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(sj Statement of Issue: Should the City Council approve an agreement with Moreland & Associates, Inc. to assist in processing property tax refund claims? Funding Source: Sufficient funds (not -to -exceed $250,000) exist as part of the $2.2 million property tax override revenue that was impounded in FY 2000-01. Because it is likely city will be required to expend the impounded $2.2 million as part of processing or paying refund claims before it is able to issue a judgment or refunding bond to cover the total cost of the refunds staff is recommending that the City Council appropriate the impounded moneys to fund refund -processing costs. Recommended Action: 1. Authorize the Mayor and City Clerk to approve an agreement with Moreland & Associates, Inc. to assist in processing property tax refund claims; 2. Appropriate $250,000 from Fund 707, the Employees' Rate Contingency fund (identified as impounded property tax override revenue from FY 2000-01) to fund the agreement. Alternative Action(s): WGrantTroperty Tax Override\RCA Approving Contract with Moreland.doc 2+ 1/2612004 10:06 AM 0 REQUEST FOR ACTION 0 MEETING DATE: February 2, 2004 . DEPARTMENT ID NUMBER: The City Council may make the following alternative motion(s): 1. Do not approve the agreement and provide staff with appropriate direction. BACKGROUND 04-02 In October 2003, in an update on the property tax override refund progress, staff identified a need to secure additional resources, in particular a project manager, to process refund claims. The special project team assigned to refund processing identified five primary roles for the project manager to play: 1. The project manager will be tasked to work with the city's refund claim database and the county property tax payment database to compare and verify claims electronically; 2. The project manager will manually verify all claims that could not be sufficiently matched electronically and will resolve incomplete refund claims; 3. The project manager will respond to public inquiries regarding refund claim status, payments, and related issues; 4. The project manager will calculate refund amounts and coordinate the refund distributions. Staff will be preparing reports to City Council to solicit direction regarding claim verification procedures and thresholds prior to processing refund claims; and 5. The project manager will assist city staff in developing a system by which the city will process refund claims received after the bulk of the claims are paid in the summer of 2004 and the project manager's work ends (projected in September 2004). This process will be in place and operating until at least 2006. PROJECT MANAGER SELECTION The city received responses to its Request for Qualifications from the following firms: 1. Moreland & Associates, Inc. 2. CBIZ Accounting, Tax & Advisory of Orange County, Inc. 3. David Taussig & Associates, Inc. 4. HdL Goren & Cone 5. Munifinancial After a review of the written proposals, Moreland, HdL Coren & Cone, and Munifinancial were invited to participate in interviews with the City Treasurer, Finance Officer, Director of Information Services, and the Principal Administrative Analyst in the City Administrator's office. The interview panel voted to recommend Moreland & Associates because of their previous experience processing property tax refunds (in both California and Florida) and they will use certified public accountants and auditors to perform exception claim verification. Moreland & Associates has assigned Kathryn Beseau as the project manager. Ms. Beseau has over twenty years of experience in local government. Prior to joining Moreland, she WGranAProperty Tax Override\RCA Approving Contract with Moreland.doc �= 1/26/2004 9:41 AM 0 REQUEST FOR ACTION • MEETING DATE: February 2, 2004 DEPARTMENT ID NUMBER: 04-02 served as the Controller of the Irvine Ranch Water District. While at the water district, Ms. Beseau coordinated a property tax rebate and worked closely with Orange County to levy and calculate property tax assessments. PROJECT COSTS All the firms offering their services as project manager proposed fees on a time and materials basis. Moreland's hourly costs were among the lowest, ranging from $55 - $95 for accountant and auditor staff and $120 - $200 for database consultants. Based on preliminary project scoping discussions, staff estimates the cost of the project could range from $250,000 to $500,000 depending on the volume of (yet unknown) exception claims and the extent to which they are examined. This initial agreement is proposed not -to -exceed $250,000. AGREEMENT DETAILS The City Administrator and special project team members will serve as the project managers for this project. Staff is proposing to extend the normal three-year expiration deadline for the contract to five years to ensure Moreland's availability to assist the city through the full refund claim period and subsequent accounting and auditing. Finally, given the uniqueness of this project, the City Attorney has drafted custom hold harmless language in the agreement (section eight on page three of the agreement). The custom language places greater potential liability on the city than does that city's standard professional services agreement. All the consultants the city interviewed requested similar hold harmless language. RECOMMENDATION In order to properly process and examine the property tax override refund claims in a timely manner, the special project team recommends the City Council: Authorize the Mayor and City Clerk to approve an agreement with Moreland & Associates, Inc. to assist in processing property tax refund claims. 2. Appropriate $250,000 from Fund 707, the Employees' Rate Contingency fund (identified as impounded property tax override from FY 2000-01) to fund the agreement. Attachment(s): G:1Grant\Property Tax Override\RCA Approving Contract with Moreiand.doc 4. 1/26/2004 9:41 AM J. "At CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK CALIFORNIA 92648 LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF RUN-MGTON BEACH DATE: - (o - 00 TO: P — ',- L / S ATTENTION: ,� yN >&7j Name oy4E oST , 6?d DEPARTMENT: 5tnre� `� CAI + LY a AC7-_. C� ]E79-�fJ V9A 6 60 RE GARDPgG: City, state, Zip See Attached Action Agenda Item Z lS Date of Approval � Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: d�� ow,0414.40- Connie Brockwa City Clerk Attachments: Action Agenda Page t% Agreement ✓ Bonds Insurance' RCA Deed Other CC: la�TA-e-121 1) ✓ ✓ ,/ Department RCA Agteenxnt Insurance Other �J v Name Department RCA Agmawnt Insurance Other Name Deparmwnt RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Vfollowup/letters/coverltr_doc (Telephone: 714-636-5227 ) 0 0 Attachment 1 0 0 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND MORELAND & ASSOCIATES, INC. FOR PROJECT MANAGER ASSISTANCE PROCESSING PROPERTY TAX OVERRIDE REFUNDS THIS AGREEMENT ("Agreement") is made and entered into this cR /V0 .. day of 20 O�, by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and MORELAND & ASSOCIATES, INC., a California corporation, hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to : assist in processing property tax override refunds; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates Kathryn Beseau who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 04agreehnoreland/1/22/04 t 0 0 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence as soon as practicable after the execution of this Agreement by CITY (the "Commencement Date"). This Agreement shall expire on December 31, 2005, unless sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than December 31, 2008. These times may be extended with the written permission of CITY. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. 4, COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00). 5. EXTRA WORK In the event CITY requires (a) additional services not included in Exhibit "A" and/or N changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from 44agree/moreland/1/22/04 2 CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CITY hereby agrees to protect, defend, indemnify and hold harmless CONSULTANT, its directors, officers, employees, attorneys, agents, successors, and assignees from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with this Agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of CONSULTANT. CITY will conduct all defense at its sole cost and expense. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CITY. 04agree/moreland/1/22104 3 0 0 9. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONSULTANT's professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above - mentioned insurance shall not contain a self -insured retention, "deductible" or any other similar form of limitation on the required coverage greater than $10,000 except with the express written consent of CITY. A claims -made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement. 10. WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE Pursuant to California Labor Code Section 1861, CONSULTANT acknowledges awareness of Section 3700 et seq. of this Code, which requires every 04agreelmoreland/W2/04 4 0 0 employer to be insured against liability for workers' compensation; CONSULTANT covenants that it will comply with such provisions prior to commencing performance of the work hereunder. CONSULTANT shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits. CONSULTANT shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees. CONSULTANT shall furnish to CITY a certificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and CONSULTANT shall similarly require all subcontractors to waive subrogation. 11. INSURANCE In addition to the workers' compensation and employer's liability insurance, CONSULTANT shall obtain and furnish to CITY, a policy of general public liability insurance, including motor vehicle coverage covering the PROJECT. This policy shall indemnify CONSULTANT, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for this PROJECT. This policy shall name CITY, its officers, elected or appointed officials, employees, agents, and volunteers as Additional Insureds, and shall specifically 04agreelmoreland/IW04 5 0 0 provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONSULTANT's insurance shall be primary. Under no circumstances shall said above -mentioned insurance contain a self - insured retention, or a "deductible" or any other similar form of limitation on the required coverage greater than 510,000. 12. CERTIFICATES OF INSURANCE-, ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; the certificates shall: 1. provide the name and policy number of each carrier and policy; 2. state that the policy is currently in force; and 3. promise to provide that such policies will not be canceled or modified without thirty (30) days' prior written notice of CITY. CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. CITY or its representative shall at all times have the right to demand the original or a copy of all the policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. CONSULTANT shall provide a separate copy of the additional insured endorsement to each of CONSULTANT's insurance policies, naming CITY, its officers, 04agree/morel and/ ] 122/04 6 0 0 elected and appointed officials, employees, agents and volunteers as Additional Insureds, to the City Attorney for approval prior to any payment hereunder. 13. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 14. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, reports, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 15. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY; provided, however, those subcontractors set forth in CONSULTANT's proposal to CITY, including, but not limited 04agree/moreland/1/22/04 7 0 0 to, Dr. Ali Diba, DCSE, INC., shall be deemed to have been consented to by CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 16. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 17. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 18. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail -return receipt requested: TO CITY: City of Huntington Beach ATTN: Pete Grant 04agree/moreland/ 1 /22/04 8 TO CONSULTANT: Moreland & Associates, Inc. ATTN: Kathryn Beseau 2000 Main Street Huntington Beach, CA 92648 19. CONSENT 1201 Dove Street, Suite 680 Newport Beach, CA 92660 When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 20. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 21. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 22, INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. 04agreelmoreland/V22/04 9 As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 23. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 24. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 25. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive 04agree/moreland/ 1 /22/04 10 legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 26. ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing party. 27. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 28. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 29. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement 04agree/more]and/ 1 f22/04 11 0 0 between the parties respecting the subject matter of this Agreement, and supercede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. MORELAND & ASSOCIATES, INC. By: Michael C. Moreland, Secret y AND CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California e�4 Mayor By. �� ATTEST: Kathry escau, Vice President i "t PyT ferk APPROVED AS TO FORM: City ttorney i 69 ®q REVIEWED, INITIATED AND APPROVED: City A2Wiinisttator 04agrcc/morcland/U22/04 12 0 Exhibit A 0 PROJECT APPROACH This property tax refund project will require adjustments and modifications throughout the implementation process. Therefore, we have developed a flexible approach to meet the needs of the City of Huntington Beach. The work plan described below is intended as a starting point for further discussions and the development of a final plan. It is fully anticipated that it will be modified to meet the changing needs of the City of Huntington Beach. We have developed a three-phase approach to this project and identified a timeline for completion of each phase. Phase I involves the identification of claims requiring fuurther investigation. Phase II involves the resolution of those claims that require further investigation. Phase III involves the production and distribution of refund checks. Planning and coordination between our team management and Peter Grant and his team members are a continuing part of our work plan. We have identified major planning meetings in our work plan, but we anticipate other meetings in order to keep the City fully informed of our progress on the project. As indicated above, our work plan is not in detail because we recognize that is only a starting point in an evolving process. WORK PLAN PHASE I The key elements of Phase I will include: • Document review • Planning meetings • Obtain an understanding of parameters for a valid claim and the amount of refund • Development of an exception report • Citizen relations A document review will be conducted by Kathryn Beseau, the Engagement Partner and Brenda Grubbs, the Manager of Operations. This will include a review all relevant documents from the court, City, and other sources. Ideally, this review will take place prior to the planning meeting so that pertinent issues arising from the document review can be discussed at our initial planning meeting. The planning meeting will allow the Engagement Partner, and her key managers and Database Consultant to meet with key City staff to finalize expectations and timelines for Phase I of the project. We will provide a written synopsis in bullet -point form within two days of the planning meeting to all of the participants. The combination of both oral and written communication will help solidify the understanding of everyone involved in the project and allow potential problems to be quickly identified and corrected. Following the planning meeting, and with appropriate input from the City, we will design an exception report in conjunction with our Database Consultant. The exception report will provide all 0 Exhibit A is of the information needed to research a claim. Once the report format is designed, our Database Consultant will compare the two databases and provide the results in the exception report format so that the identified exceptions can be investigated during Phase II of the project. Moreland will, at a time to be determined, assume primary customer service and inquiry responsibilities. PHASE H The key elements of Phase IT will include: Planning meetings Review and research exceptions Determine the validity of claims A second major planning meeting will allow the Engagement Partner, the Manager of Operations, and key City staff to finalize expectations and timelines for resolving the exceptions identified in Phase I. Again, following the meeting, we will provide a written synopsis in bullet -point form within two days to all meeting participants in order to avoid misunderstandings. Following the identification of exceptions during Phase I of the project, we will develop a written process and time budget for processing the exceptions using the criteria established by the City. The written process and time budget will be provided to the City for approval. Once the process is approved, our staff will begin processing the exceptions. Once all information is gathered and analyzed for each claim with an identified exception, a determination will be made as to the validity of the claim. Valid claims will be processed as a part of Phase III of the project. Information on claims determined to be invalid will be transmitted to the City for the notification of the claimants. PHASE III The key elements of Phase III will include: • Planning meetings • Calculate refunds • Issue refunds A third major planning meeting will allow the Engagement Partner, the Database Consultant, the Manager of Operations and key City staff to finalize expectations and timelines for preparation and distribution of refund checks. We will provide a written synopsis in bullet -point form within two days of the planning meeting to avoid misunderstandings. The data file of all verified claims will be processed in order to calculate the appropriate amount of the refund. The resulting electronic file will be the basis for refunds issued by the city's bank or 0 Exhibit A 0 other agreed upon sub -consultant. Moreland & Associates will also coordinate the metering, sorting and mailing or refunds. PHASE IV The key elements of Phase IV will include: Planning meetings Developing an on -going process for claim verification and payment Exhibit A 9 WORK. PLAN FLOW CHART Phases .[-111 Phase 1 Phase 11 Phase 111 Exhibit A TIMELINE AND ABILITY TO COMPLETE PROJECT Deadline for refund claims January 4, 2004 All claims entered into City database April 2004 Phase I Planning meetings Refund claims verification begins Phase II Planning meetings Begin review of exception claims Planning meetings Begin issuing refund checks Phase IV Planning meetings On -going process established/ Project complete December 2003 — April 2004 April 2004 March 2004 — July 2004 April 2004 June 2004 — September 2004 July 1, 2004 August 2004 — September 2004 September 2004 9 EXHIBIT "B" 0 Payment Schedule A. Hourly CONSULTANT'S fees for services shall be based upon the following hourly rates: Engagement Partner and Project Advisor $95 Manager of Operations and Manager of Customer Relations $75 Professional staff of Moreland & Associates $55 Database Consultant $200 Professional staff of Database Consultant $120 B. Out of Pocket Expenses Out of pocket expenses will be billed at cost. C. Refund Check Printing and Mailing Refund check printing and mailing expenses will be paid directly by the city or billed at cost. D. Billing 1. Billing shall be done monthly. 2. CONSULTANT shall submit to CITY an invoice for each payment due. Such invoice shall: A) Reference this Agreement; B) Provide a detailed accounting of the level of work performed including the hours worked and rate billed; C) Identify out of pocket expenses billed; and D) Show the total amount of the payment due and the total amount billed to date. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 3. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked,and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. jar-26-2H4 10.41 am F rom- f Imqum 7HIS CERTIFICATE ) PHTLIP B . ROBTNS13N INSURAY�CE orltvAND �ERS M7 2081 BVSZXESS CBNTER DR. # 2( �a ALT` n IRVINE, CA 92612 94947�93o1� SS/a Coif 70`�I1 u►suNED INSLW EH Af MORELAIM & ASSOCIATES 7 f INSUFZZ : 1201 DOVE ST # 680 Irma c; NEWPORT BEACH , CA 92660 e00F0 oc 9A-9-324i-0025 jam I COVERAGES T-626 P.002/002 F-439 AS A MATMR M 11 11MA'nON' IIBHI"!i Upon THE CEIIMCATCr �r RV TNP Ilnt leiFC wrIim_ INSURERS J10709 131 COVERA P i a CAN STATES TNSMUNCE CEJ . THE POL ICIM OF INSURANCE LISTED MCW HAVE SEEN rSSUeD TO THE IMF= NAMED ABOVE FOR THE POUCY PEROD INDICATED. NO WI`MSTANDIE j ANY APOUIREMENT, TES OR C600MON aF ANY rXWR AM nA e)TKS DOCUMENT WrrH RESPECT TC WHICH 7XIS CERTIFICATE MAY BE ISSUES � MAY PERTAIN, THE INSURANCE AFFOApED EIY 7HE POLICIES DESICRtBFD HEREIN IS SUBJECT TO ALL THE TERMS, 814CUSIONS AND co+1I7ITIONS OF SUgH POLICIES. AGGWEGATE UMI78 SHOWN MAY HAVE BSI NPUCED BY PAID CEA{MS. 'L';w me aff IflsunAN Y Nu Y FOLM ' PATM fm 3-•26-04 uKrrs zwH occuEIE wcE - � i A GeNERAL UNNUTY 4ommERctoL @P.NEHA[ LIA®CITY GLAIR, MADE(� uuQuK 02B0769619 - R Mc G, 3-26- 03 : 3 j "i .- s� ,600,00 Fog uwAw Rany ehB AreI fat 0 0 0 D , ISS!'wv o"n , P�ISOt1AL a ADV INAI F S1,000eado EBL 5Rd1. AGmHE&ATE LIMIT A L.10 PIN: mE;EAL AGrj=1E z2 0 0 0 O 0 PRODUCIS - COWA]P ASS s1. Q 0 0 0 .0 A Aummus.t uWFLIIY ANY AUTO ALL CRIED AMS Ss �HEOiLED AUTO ruaso A = NON ON&= ALlTM — 02130769619 3 -2 6 - 0 3 3 - 26 - 04 � � LIMIT $ I + a () Q r () E60 eC]ILV IN. M Impr primp g 7� V ecaltY uuunr [PSI 4 3 �t PROPEW DAMME (Pelf 90CIdw4 rJ; t }I SMA62 LIAEEii. " ANY ADM AUTO OILY - FA ACCtONr I DTHFR � EA ACC ■Lnta a ,r: AGO a 3 T. s A E" UAftM — ocmm ❑cLwsnurse � N S OICT001899 OIWC925745 3-26-03 3--26-04 Eck GcsLERng 1111. 1100 , 0 CFO AaawmTE sc S A wool" taueE u'Row A%p Em"aYFAa' IUAS L" 4-1-03 4-1-04 Rm a EL. EACM AT,�t WT Sl 00 Q E7 0' C.L. DiZZAN - rA OA4AMfi e 1 0 q 0 EL.DISFAW poucyum cl 000 00110 S r;T)ROPESSIONAL Pig„SI)058662 7-1-03 7-1-04 , �..000,UQa7 MCAIP1CW OF OPeAATIARSILQCXM011lfMl{[rL 1°w"E( JS ADOW NY 13DORRUCNT%SpOM MOVIZINS I CPA * XF CANCELED FOR NONPAYMENT 10 DAY NOTICE,WILL BE GIVEN CITY, ITS OPPICERS, ELECTED OR APPOINTED Oe�'JQIALS, EMPLOYEES, AGENTS, iTD VOLUNTEERS .ARE NAMED AS ADDITIONAL INSUREDS � i } CERTIFlGATE MULAF,R I I AOMMAL "R INSIXIER LCimL- GAEVCIWL.LitTloli a CITY OF HUNT INGTON BEACH 9HOUL0 XAY OF M AEi W 111110MMaes aCU= ESE CANiJI M 200% OMA". 2000 MAIN STREET 0AT9 TIEMW. Wt I 011 LEIS PtM ►EMIT EEtlI MUR-Ta MAIL 3 Q v#vs wmnTty� HUNT INGTON BEACH CA 32648 XIMM f TO 'M9 C41TII "TE HOLMWMEG W Ti U f, 25.8 (7197) zD 39Cd NOSNISON NVIZIS 13E 00VL1*06 98Z 0 SZ:LT DOOZ/EZ/19 P.02 JAN-26-2004 09:38 0 Attachment 2 �CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Ray Silver, City Administrator From: Clay Martin, Director Of Administrative Services Subject: FIS 2004-1 Date: January 15, 2004 Selection of a Project Manager to Assist in Processing Property Tax Refund Claims As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Selection of a Project Manager to Assist in Processing Property Tax Refund Claims." If the City Council approves this request (total year appropriation $250,000) the estimated undesignated fund balance of the Tax Override Fund at September 30, 2004 will be reduced to $2,118,000. Clay Martin/ Director Administrative Services 0 9 RCA ROUTING SHEET INITIATING DEPARTMENT: City Administrator's Office SUBJECT: Project Manager - Property Tax Refunds COUNCIL MEETING DATE: February 2, 2004 RCA ATTACHMENTS STATUS' Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) Si ned in full b the Cif Attomqyj Attached Subleases, Third Party Agreements, etc. LApproved as to form by City Attome Not Applicable Certificates of Insurance Approved by the City Attomey) Not Applicable Financial Impact Statement (Unbud et, over $5,000) Attached Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Appl!cable EXPLANATION FOR MISSING: ATTACHMENTS REVIEWED RETURNED FORWARDED`.' Administrative Staff Assistant City Administrator Initial City Administrator Initial Lcity Clerk EXPLANATION FOR RETURN OF ITEM: RCA Author: