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HomeMy WebLinkAboutPERFORMANCE COST SYSTEMS, INC. - 1986-04-21 �.. irl" BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK October 14, 1986 Performance Cost Systems, Inc. 500 Denton Tap, Suite 105 Coppell , Texas 75019 Attn: Donald E. Brewer, President Enclosed is a copy of an Engineering Service Agreement for an Initial Cost Allocation Plan which was approved by the City Council of the City of Huntington Beach, California on April 21 , 1986. Alicia th. Wentworth City Clerk Aft bt Enclosure r (Te Ie piton o:714535�227) 21 19 � vx�arLr' R UE 4 F _CITY COUNC� AC N ,J Date April 2, 1986 "! Submitted to: Honorable I•elayor and City Council Members Submitted by: Charles W. Thompson, City Administrate f l Prepared by: Robert J. Franz,. t:_hief of Administrative Service �, Contract with Performance Cost Systems, Inc. t�Pe�rfq�m Consulting ices for Subject: Cost Allocation Plan Consistent with Council Policy? [X] Yes [ New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachment.;: Statement of Issue: The City desires to develop yearly cost allocation plans. Performance Cost Systems, Inc., (PCS) sells cost allocation software which will run on the City's Burroughs B-25 microcomputer. PCS also is offering consulting services to assist the City in developing the first year plan, thereafter, the City staff will develop the ; :an independently. Recommendation- Approve the attached contract for consulting services with Performance Cost SysZeins, Inc. Analysis: Cost allocation plans are important to state and local governments for the following reasons: 1. Compliance with Article 13b of Che California Constitution (Gann Initiative) which limits revenues from proceeds of taxes. If users fees are set above costs (direct and indirect) borne by the City, these fees will be considered taxes subject to the appropriation limit. 2.. A management tool to set user fees at the proper level to recover all costs (direct and indirect). 3. To develop a methodology for recovering Redevelopment related costs through tax increment financing. 4. So the City and its citizens can understand the true cost of specific services such as r ire, Police, etc. in the past the City has contracted with consultants to perform this service on a yearly basis. Any updates to the plan were done at air .kdditional cost. PCS offers software whic". will run on the Burroughs B-25 microcomputer in the '.-counting Division that will enable the City staff to prepare its Dwn updates to the cost allocation plan at no additiunal charge as many times as desired. The City desires that PCS assist the City in preparing the initial cost allocation plan. Thereafter, all updates and changes will be dii.- by the City's Accounting staff. The software and consulting services offered by PCS Inc., are unique in todays marketplace. A memorandum from the City's Information Systems Wnager confirms this uniqueness.. Therefore. this is the only vendor with this type of software which can be used in-house. The $4,500 cost of this contract and the one time purchase of the software is less than the annual update amount budgeted using the current system.. Funding Source: Funds are currently budgeted in account 101419 for annual cost allocation update. AIternative Actions: 1. Develop in-house software. 2. Utilize vendors who run and update cost allocation plans on their own computers. 3. Do noC develop a cost sliocation plan. Attachments: 1. Contract with Performance Cost Systems, Inc. 2. Inter-Office Memorandum from Information Systerns Manager PIO 4184 CITY OF HUNTINGTON BE INTER-DEPARTMENT COMMUNICATIO HUNTINGTON BEACH t To CITY CLERK From ARTHUR DE LA LOZA Deputy City Attorney Subject VERTEX Date October 6, 1986 The insurance Interim Certificate expired 8/11/86. }�✓k:/t�ti I G j O rL ` trs fhb --Vkk.-,6-r0 The Acord Certificate cancellation clause violates Section 10 of the Agreement. -��_more, it canner be approved''40T"'t'I J-i,4 0L-4Y— ADL:ns Attachment r i 3 } t ..r _ �� �. �� �. Performance Cost Systems, Inc. June 24, 1986 7 Ms. Connie A. Brockway Deputy City Clerk ^, CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, CA 92648 Dear Ms. Brockway: I'm sorry that we continue to have confusion on the Insurance Certificate. Our agent, Ben3on Insurance, has sent the certificate to the City several times. It has been returned to us because the City had requested specific wording. Our insurance carrier refuses to issue a "non-standard" certificate. I've asked our agent to send you a copy of the certificate. The work has already been completed; so there is no chance of any claims against the City. Please see if you could assist us with this beaurocratic problem. Thanking you in advance. sincerely, Donald E. Brewer President DEB:do 500 Denton Tap, Suite 105, Coppell, Texas 75019 • 214/462-1692 I a CITY OF HUNTINGTON BEACH _ 2000 MAIN STREET CALIFORNIA 92E48 OFFICE OF THE CITY CLERK June 20, 1986 Donald Brewer, President Performance Cost Systems, Inc. 500 Denton Tap, Suite 105 CooDell , Texas 75019 Dear 1r. Brewer: 'rye have not yet received your insurance in connection with your engineering services agreement with the City which was approved by the City Council on Aoril 21, 1986. As you know the agreement cannot be signed by the '4ayor or City Clerk until this insurance which -is a Part of your contract is received. Please forward your insurance to this office. ALICIA `1. WENTW02TH, CITY CLE�K By: -- Connie A. Brockway, Depdty A,,",IW:cb attachments: 6 i Ask FROM THE DESK OF DONALD E. BREAfER ch PCs pe(fe mance x C t Systems,Inc. L)onaid E.Brewer president 21,4(462-1692 G ell,TeXES 75019 500 Denton Tap,Suite 10 .�oFP qp J. CITY OF HUNTINGTON 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CIT'.'".ERK May 30, 1986 Donald Brewer, President :1=r=oni1ance Cos-. Systems, Inc. 3U men on Tap,_ air? 1�6 Coppell , Texas -5019 Dear Mr. Brewer: Thank you for your note regarding your insurance certificate for your engineering servicas agreement ;iit�h the City; however to-date we have received only your Wor<er's Compensation certificate. I have checkedwith the City's insurance deoartment and they have not received it either'. Please have the insurance certificate forwarded to the City Clerk's office, 2000 main Street, Huntington Beach, California 92648 - Attr.: Connie Brockway, Deputy City Clerk. Thank you. ALICIA M. WENTWORTH, Cit, Zlerk By Connie Brockway AMW:CB:bt frolephone•71453"227) �. CITY OF HUNTINGTON 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK April 22, 1986 r Performance Cost Systems, Inc. 500 Denton Tap, Suite 105 Coppell, Texas 75019 Attn: Donald E. Brewer, President On April 21. 1986 the City Council approved an Engineering Services Agreement with your firm for a Cost .allocation Plan. You have received a blank City Certificate of Insurance Form From the Chief of Admiristrative Services, and upon receipt of your insurance, and approval of same by the City Attorney, we rill forward an executed copy cf the agreement to you. Alicia M. Wco.tworth City Clerk Ai'IW:CB:js �t�k'��G% �-•iiE'lC•11•GLS:. tGZC1"'� .J,��� ._�Gli, � r7l t . i (Telephone:714-536-5227) L1 3�IYePCs Performance Cast Systems, Inc. tJ� June 24, 1986 T Ms. Connie A. Brockway Deputy City Clerk CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, CA 92648 Dear Ms. Brockway: I'm sorry that we continue to have confusion on the Insurance Certificate. Our agent, Benscn Insurance, has sent the certificate to the City several times. It has been returned to us because the City had requested specific wording. Our insurance carrier refuses to issue a "non-standard" certificate. I've asked our agent to send you a copy of the certificate. The work has already been completed; so there is no chance of any claims against the City. Please see if you could assist us with triis heaurocratic problem. Thanking you in advance. Sincerely, Donald E. Brewer President DEB:do 500 Denton Tap,Suite 105,Coppell,Texas 75019 • 2141462-1692 i �a ITY OF HUNTINGTON 2000 MAIN STREET CALIFORNIA 92648 Benson Insurance Agency, Inc . OFFICE OF THE CITY CLERK 18 April 1986 - , 1986:' Post Office Box 153026 -'6 htay�` Irving, Texas 75015 The enclosed certificate of insurance is returned to you for the following reason(s): See postscript. — / Cancellation clause must be amended as follows: Should any of the above described policies be cancelled before the expira— tion date thereof, the issuing company will 6A44dkW U mail 30 days written notice/to the certificate holder.�idiiid/ asvJ>`��T���/�dtl,Ediidtk/a<6/��;'.1/dddit/dbE�Ed/dK�ZX.i�.s6¢bdd �i6/b�1���t�6ri!bx`l X�dd�LX;Ck�/bf/d�i�/'�Eirid/�I¢d�4/.EMd/dG�6¢,�ri�l i>`d/d�6�ia`�16t1�d¢tddEdt�t�tdfi! No proof of current workers' compensation is provided. No n certificate of insurance will be approved until evidence of workers' compensation is furnished. The policy does not provide at least t300,000 CSL coverage. a) Certificate is not signed by authorized agent. b) Agent's signature is illegible; please type name beneath. a) There is no hold harmless clause. b) The hold harmless clause must be signed by two officers of the corporation covered by the certificate, or provide proof that one officer is authorized to bind the corporation. c) Signatures on the hold harmless are illegible; names of officers or persons must be typed beneath. We have no address for your agent. Please forward enclosures to him at your earliest convenience for correction and return to the undersigned. If you have any questions we are happy to assist in any way we can. Very truly yours, ALICIA WENTWORTH City Clerk A. H. BRUNSON Records Coordinator j Encs. 0297K (TWn phono:714.536-62Z7) STATE P.C.BOX 80',SAN FRANCISCO,CA LIFO RN IA 94101 COMPENSATION INSURANCE CERTIFICATE OF WORKERS' COS 9PENSATION INSURANCE POLICY NUMBER: /4 -Lt; CERTIFICATE EXPIRES: S11/S'7 _.Li u_ ,:Utltlil.)tU"i dt;}ia. tf..:,lt:.t J��ciCtrl�'_Ilt �JCU 81L Jt.L'Lt . i..:.L'...�i..J!1 !�4��iC ilr (.51114�1i1� .i e.4•: : L This is to certify that we have issued a valid Workers'Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except upon ten days'advance written notice to the employer. We will also give you TEN days'advance notice should this policy be cancelled prior to its normal expiration. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate of insurance 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. �,.- PESI�ENT I F fTROUD u1S '1'U kU41 EMPLOYER f �i _ -• .GC;:i3t'. F ff3 ,% SIi�t�i`.;r .triC• "; y 4' L SCIF 10262(REV.a`•Bq). OLD 262A F ,x'x sx(ri}a ,}ro , , ..>1 aY x 3 r s�4 ksig 3' G �L., [a., 3,3'�fi x4 "gar; Y'``C'iit atr•,, �� �'r lY c��+ 4I+s'.' i'".,�,t„�` �5 gm i t fi S�' �f' '� s t � *• F vv`'sf'r h ',' ,titr!7'i�£.� p +t2t t) 'F�+Jt1' � � • ,SCR �•�" .,'a h L IRA k • 1 1 ?%1 x z: av t a a r�wda{� y tt3'nYr;SF�y�1 xk �, � `.`.='� s �. .�r,��' s�"-4�'."'d?'�• c.�R"?z*h'�'...ivG.��.�z�t��r r:�?"�`d +•;.`,+rF,'�._�'ni,�,`^p��"yrrv�`z'�'"'?�'i.P��`, :i�'as ti. r�•.r r � 1��': .arc+. pia.• s - �p'�;•-f?ks i, ITS OF HUNTINGTON 2000 MAIN STREET CAI.I FOR NIA 92648 OFFICE OF THE CITY CLERK June 20, 1986 Donald Brewer, President Performance Cost Systems, Inc. 500 Denton Tap, Suite 105 Coppell , Texas 75019 Dear Mr. Brewer: We have not yet received your insurance in connection with your engineering services agreement with the City which ;,qas approved by the City Council on April 21, 1986. As you know the agreement cannot be signed by the -'lay,'ir or City Clerk until this insurance which is a part of your contract is received. Please forward your insurance to this office. ALICIA �1. WENTWORTH, CITY CLERK By: iG1tcC. l//:L4r �c `z� Connie A. Brockway, Der>dty A'-iW:c b attachments: E {Tole phone:714.536-5227) .r �. CITY OF HUNTINGTON 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK May 30, 1986 Donald Brewer, President Perfon,iance Cost Systems, Inc. 500 venton Tap, Buie 105 Coppell , Texas 75019 Dear Mr. Brewer: Thank you for your note regarding your insurance certificate for your engineering services agreement with the City; however to-date we have received only your Worker's Compensation certificate. I have checked with the rity's insurance department and they have not received it either. Please have the insurance certificate forwarded to the City Clerk's office, 2000 Main Street, Huntington Beach, California 92648 - Attn: Connie Brockway, Deputy City Clerk. Thank you. ALICIA M. WENTWORTH, City Clerk oy _ Connie Brockway AMW:CB:bt (Telephone:71453"2Z7) 7MMM3����� All W 0 Fol. � '. TINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK April 22, 1986 Performance Cost Systems, Inc. 500 Denton Tap, Suite 105 Coppell, Texas 75019 Attn: Donald E. Brewer, President On April 21, 1.986 the City Council approved an Engineering Services Agreement with your firm for a Cost Allocation Plan. You have received a blank City Certificate of Insurance Form from the Chief of Administrative Services, and upon receipt of your insurance, and approval of same by the City Attorney, we will forward an executed copy of the agreement to yoi:. Alicia M. Wentworth City Clerk AMW:CB:js Jf ��✓/��f.LZ L7rG�=G207'L l/�e 6 (Telephone.714-536-3227) 2119j REQUEP FOR CITY COUNCI ACT ION Bate April 2, 1986 Submitted to: Honorable Mayor and City Council Members / Submitted by: Charles W. Thompson, City Administra Prepared by: Robert J. Franz, Chief of Administrative Service Subject: Contract with Performance Cost Systems, Inc., t Perfo fn Consulting ices for I Cost Allocation Plan consistent with Council Policy? [x] Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: I Statement of Issue: The City desires to develop yearly cost allocation plans. Performance Cost ! Systems, Inc., PCS) sells cost allocation software which will run on the City's Burroughs B-25 microcomputer. PCS also is offering consulting services to assist the City in developing the first year plan, thereafter, the City staff will develop the plan independently. Recommendation: Approve the attached contract for consulting services with Performance Cost Systems, Inc. Analysis: Cost allocation plans are important to state and local governments for the following reasons: 1. Compliance with Article 13b of the California Constitution (Gann Initiative) which limits revenues frorn proceeds of taxes. If users fees are set above costs (direct and indirect) borne by the City, these fees will be considered taxes subject to the approp?iation limit. 2. A :management tool to set user fees at the proper level to recover all costs (direct and indirect). 3. To develop a methodology for recovering Redevelopment related costs through tax increment financing. 4. So the City and its citizens can understand the true cost of ;P tcific services such as Fire, Police, etc. In the past the City has contracted with consultants to perform this service on a yearly basis. Any updates to the plan were done at an additional cost. PCa offers software which will run on the Burroughs B-25 microcomputer in the Accounting Division that will enable the City staff to prepare its own updates to the cost allocation plan at no additional charge as many times as desired. The City desires that PCS assist the City in preparing the initial cost allocation plan. Thereafter, all updates and changes will be done by the City's Accounting staff. The software and consulting services offered by PCS Inc., are unique in todays marketplace. A memorandum from the City's Information Systems Manager confirms this uniqueness.. Therefore, this is the only vendor with this type of software which can be used in-house. The $4,500 cost of this contract and the one time purchase of the software is less than the annual update amount budgeted using the current system.. Funding Source: Funds are currently budgeted in account 101419 for annual cost allocation update. Alternative Actions: 1. Develop in-house software. 2. Utilize vendors who run and update cost allocation plans on their own computers. 3. Do not develop a cost.allocation plan. Attachments: �,S 1. Contract with Performance Cost Systems, Inc. 2. Inter-Office Memorandum from Information Systems Manager �. PIO 4/84 7WOMMMIUMM Ja CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUO UINGTON BEACSi To DAN T. VILLELLA From JERRY BRAMLETT Director of Finance Information Systems Manager Subject COST ALLOCATION SOFTWARE Date MARCH 27, 1986 FROM PERFORMANCE COST & CONSULTING SYSTEMS The software for cost allocation plans being offered by Performance Cost Systems, Inc. is not widely available on todays market. It closely meets our needs for the following reasons: 1. It operates on a Burroughs B-25 micro computer with an MS-DOS shell. This will allow accounting personnel to create our own updates to the plan. 2. It is specifically designed for state and local governments. 3. The software has the capability for mainframe interface meaning that file transfers could occur for cost allocation plan updates which would drastically reduce the time spent on updating the plans.* While it is conceivable that other software could be available on the market, it is doubtful that it would so closely parallel the City's needs. The other alternatives to obtaining this software would be to develop it internally which would require substantial effort, or utilize other consultant's mainframes and software as was done previously with Ernest and Whinney and GOVCOST. All factors considered, I recommend the City purchase this particular software and the related consulting services. va 3� r f JC-RRY B LETT Informa '`on Systems Manager JB:RS:sd * Key sole source reason s IsSUE OATE 86 DDIYY� 'GCC(,CER THIS CERTIFICATE IS.ISSUED AS A MATTER OF INFORMATION ONLY AND CCNFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THE CERTIFICATE DOES NOT AMEND, BENSON INSURANCE AGENCY, INC. EXTEND OR ALTER THE COVERAGE AFFORO£D BY TYE POLICIES BELOW. P.O. Box 15302D — > Irving, Texas 75015 COMPANIES AFFORDING COVERAGE cY A American General Fire & Casualty Co. ETTER CCMPANY B N5 EC LETTER c L ver es Projects International, P.C. COMALETTER Y O ! / 5CO Demon Tap Office plaza, Suite 105 C.;Dp211, TX. 75019 CCMP4NV LETTER COMPANY de LETTER 'HISS'O CER"1Fr 'HAY DCLIC:ES OF,NSURANCE LISTED BELOW HAVE BEEN ISSUED70 THE:NSURED NAMED.ABOVE FOR THE POLICY PERIOOINOICATED. NO^aITtiS'ANCING ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE.MAY 4E SSI EO :)R MAY,ERTA,N. THE NSURANCE AFFORDED BY THE POUC:ES DESCRIBED HEREIN;S SUBJECT TO ALL THE TERMS,EXCLUSIONS,AND CONDO T'CNS .:F SUCH aJL.C:ES- '- - :F= x, e , c- O I LIABILITY LIMITS IN THOUSANDS 7 � r,rii.AAnCc 'CL.C'�NUMBER L.�:: C"�E ° iWC&CPI :A-E VP,4'CG^rv, :A7E A'E uWCOftYi 'CC�aAE"+C= � AGGRE+iA'E 3ENLRAL!.A81LIT'I i ^_ 19COILY N:URY �' 500 is tiI :C :cc Vn<. -pc:p f-NS • I I?gCPcgT-•' •,Cc:,_ -•,C I 'DAMAGE IS 500, 'J 500, cGPABINED:s s" { GL28813232 11-27-35 11-27-86 a PERSCNAL'N,;LR'! '3 500, AUTCMC8ILE _.A81L.T'+ �N. Pq szS:VI .� AL. :W'.E= 1L :J JOII t 3CCtLKAAY I 1L_ WIED 1L-a I;�y;',y 1 GL28813282 11-27-85 11-27-86 S X "'REC 1L'-S P4CPvaTY I Y -.CN-'w`.EC 3UT�5 i i DAMAGE Q _.ABiL. CCMBINED S SOO e EXCESS'_:ABILITY I i al i'7 • �CGM6IME0I I I ( STATUTORY WORKERS CCMPENSATICN �. S ESCH 1C"y:CE.VTi AND 1' EMPLOYERS' L:ABILTY I I ! ,CIScYSE PCL.C7_MI'' s DISE*E 61C}+zMPL.',YEE) ,OTHER 1 I JESCRIPT•CN OF OPERATICNSILOCATIC INSVEI-IC'_ES;SPECIAL ITEMS Charles Thompson SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EX PIRATIO ATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO City Administrator MAIL ��DAYS WRITTEN NOTICE TO THE CERTIFICATE HOUaR NAMED TO THE City of Huntington Beach LEFT,BUT AIL TO MAIL SUCH NOTCESMALL IMPOSE NO OBUGATICN OR LIABILITY OF ANY, IN U H C MPANY.ITS AGENTS OR REPRESENTATIVES. 200 Main St. AUTHCRI EP E. A. Huntington 3each, CA. 02648 I GEN C ACY, LNC. INTERIM CERTI ICAT t0 EVIDENCE OF INSURANCE • ; " `� "� "J'" Cj THIS Is P. AN.INSURANCE POLICY.THIS IS ONLY A FICATI F INSURANCE.17 DOES NOT IN ANY MEN .END OR ALTEFTHE COVERAGE PROVIDED BY THE POLICIES LISTED BELOW. Named Vertex Projects International, P.C./ Performance Cost Systems Pal—No•Woatimm a Addressworkers Compeniotton 1 Detamesa East k174::j76 1487-13-26 Irvine, CA 92720 ent Pobcy No•Other Cov This is to certify that policies for the above named insured are in force as follows: Thi ntert Certificate As To Evi end of Insurance shall expire thirty days from 12:01 a M., (8--11l4$6 , nless cancelled prior to such date by written notice to the named insured. _ COVERAGE COMBINED LIMITS OF LIABILITY �^ COVERED NOT AUTO COVERED LIABILITY r Owned Bodily injury $ ,000 each person ❑ Hired $ ,000 each occurrence Non-Owned Property Damage S 000 each occurrence El Employer's Non-Ownership Contingent Liability Single Limit liability for Coverages checked [K- above $ 500 000 each occurrence GENERAL LIABILITY M&C- OLT Bodily Injury S 000 each person a a _ Owners & Contractors S .000 each occurrence LX J Contractual a $ ODO product•.onnuo'aggreoate Elevators roperty Domoge $ 000 each occurrence Z.. Products and/or $ annual o9wegote Completed Operations 000 p,aa 5,nale Limit Licothtl for Coverages checked X above � j1 L �DSt)fJ• 500 ,000 each occurrence �0 Qt onnuo ogaregoie G`4 �5 City OZ�e�' .000 oroaun:.•• CARGO I,��Iv;1�` �vy tC�•'GJ :x ty $ 000 eacn vehicle �— G� pe4� $ 000 each occurrence WORKERS COAMENSATION StOIUIOry •Includes G000s or Products Warranty, Wetter Lease o` Premises, Easement Agreement, Municipal Ordinance Agreement. Sidetrack Agreement, Elevator or Escalator Maintenance Agreement only unless accompanied by specific endorsement previding additional Contractual Coverooe r--� G..... c Ge.uroro� lGeio» .ear-ed OWNED YEAR.MAKE,TYPE OF BODY,LOAD CAPACITY IDENTIFICATION NUMBER A UT O MOBILES, LAST 3 IF DIGITS COVERED SHOWN Umbrella Liability $ ,000 retained limit POLI-,I NJMBFG $ each occurrence $ aggregate If this Interim Certificate As To Evidence Of Insurance is to be cancelled prior to the expiration dote, we shall } provide_ days advance notice in writing to whom this certificate is issued. Certificate issued to- The City of Huntington Beach Adadrress 2000 Afain Street Huntington Beach, CA 9.2648 Attn: Connie Brockway, Deputy City Clerk City Clerk's Office Counienigned a O Not Applicable in Texas. Authorued Re re ntottye m a is In Texas the oggrepote also applies to ownters oral contractors protective,tontrectual and/or completed operations 55.0514 6-BS 1901 2001ST PFjV=IN USA. - ENGINEERING SERVICES AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND PERFORMANCE COST SYSTEMS, INC. FOR AN INITIAL COST ALLOCATION PLAN 3� THIS AGREEMENT, made and entered into this r,?f day of ,�p, � 19Y by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY, " and Performance Cost Systems, Inc. , a Texas corporation, hereinafter referred to as "CONTRACTOR. " WHEREAS, CITY desires to engage the services of a consultant to develop a initial microcomputer cost allocation system; and CONTRACTOR has been selected to perform said services, NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows: 1. WORK STATEMENT CONTRACTOR shall provide all engineering services as described in the Request for Proposal and Statement of Qualificatiuns (hereinafter referred to as Exhibit "A" ) , which is attached hereto and incorporated into this Agreement by this reference. Said services shall sometimes hereinafter be referred to as "PROJECT." CONTRACTOR hereby designates Mr. Donald Brewer, Randall Handley and Shirley Sewell, who shall represent it and be its sole contacts and agents in all consultations with CITY during the performance of this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign two staff coordinators to work directly with CONTRACTOR in the prosecution of this Agreement. (1.) 3. TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of the CONTRACTOR are to commence as soon as practicable after the execution of this Agreement and all tasks specified in Exhibit "A" shall. be completed no later than May 31, 1986. This time may be extended with the written permission of the CITY. 4. COMPENSATION In consideration of the performance of the engineering services described in Section 1 above, CITY agrees to pay CONTRACTOR a fee of Four-thousand, Five-hundred Dollars ($4,500.00) . 5. EXTRA WORK In the event of authorizat4on, in writing by the CITY, of changes from the work described in Exhibit "A" , or for other written permission authorizing additional work not contemplated herein, additional compensation shall be allowed for such Extra Work, so long as the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT A. CONTRACTOR shall be entitled to progress payments toward the fixed fee set forth in Section 4 herein in accordance with the progress and payment schr_�d:ules set forth in Exhibit A" . B. Delivery of work product: A copy of every techni- cal mento and report prepared by CONTRACTOR shall be submitted to the CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by CITY shall be deemed accepted. { f s (2) 4 C. The CONTRACTOR shall submit to the CITY an invoice for each progress payment due. Such invoice shall: 1) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of the CONTRACTOR'S firm that the work has been performed in accordance with the provi- sions of this Agreement; and 5) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONTRACTOR is making satisfactory progress toward completion of tasks in accordance with this Agreemen+- , CITY shall promptly 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 the CITY does not approve an invoice, CITY shall notify CONTRACTOR in writing of the reasons for non-approval, within seven (7) calendar days of receipt of the invoice, and the schedule of performance set forth in Exhibit "A" shall be suspended until the parties agree that past performance by CONTRACTOR is in, or has been brought into compliance, o: until this Agreement is terminated pursuant to Section 12 hereof. D. Any billings for extra work or additional services authorized by the CITY shall be invoiced separately to the CITY. Such invoice shall contain all of the information required under paragraph 6C, 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 unrea- sonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and (3) apart from the ongoing performance of the remainder of this Agreement. 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CITY acknowledges that CONTRACTOR'S plans and specifications are instruments of professional service; nevertheless CONTRACTOR agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notes, calculations, maps and other documents shall be turned over to CITY and shall become its property upon PROJECT completion or earlier termination of this Agreement. In the event this Agreement is terminated, said materials may be used by CITY in completion of the PROJECT; however, CITY agrees to hold harmless, indemnify and defend CONTRACTOR against all damages, claims and losses; including defense costs, arising out of CITY'S re-use of CONTRACTOR'S plans and specifications, except in the completion of the PROJECT in the case of termination hereof, without CONTRACTOR' S prior written authorization. 8. INDEMNIFICATION, DEFENSE, HOLD HARMLESS CONTRACTOR hereby agrees to defend, indemnify and hold harmless CITY, its officers and employees from and against any and all liability, damages, costs, losses, claims and expenses, however caused, arising from CONTRACTOR'S negligence or willful misconduct in the performance of this Agreement. Any concurrent negligence or willful misconduct of CITY, its officers and employees shall in no way diminish CONTRACTOR'S obligations hereunder. 9. WORKERS' COMPENSATION CONTRACTOR shall comply with all of the provisions of the Workers ' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all (4) claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney' s fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONTRACTOR under this Agreement. 10. INSURANCE In addition to the Workers' Compensation Insurance and CONTRACTOR'S covenant to indemnify CITY, CONTRACTOR shall obtain and furnish to CITY an insurance policy covering the PROJECT: General Liability Insurance. A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify CONTRACTOR, its officers, agents and employees. while acting within the scope of their duties, against cny and all claims of arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury or property damage of t500,000 per occurrence and in the annual aggregate. Said policy shall name CITY, its officers and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONTRACTOR'S insurance shall be primary. The Certificates of Insurance for said policy shall be approved in writing by the City Attorney prior to the commence- ment of any work hereunder. Prior tc commencement of work hereunder, CONTRACTOR shall provide CITY its written certification that it has no claim currently pending under said policy. The Certificates of Insurance (and the policy of insurance or endorsements thereof) shall provide that said Certificate and policy shall not be cancelled or reduced in coverage or limits other than payments of claims without thirty (30) days ' prior written notice to CITY. CONTRACTOR shall notify CITY immediately if and when said policy is reduced in coverage or limits due to payment of a claim by its insurance carrier. (5) 11. INDEPENDENT CONTRACTOR CONTRACTOR is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONTRACTOR shall secure at its expense, and be responsible for any and all payments of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONTRACTOR and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 12, TERMINATION OF AGREEMENT All work required hereunder shall be performed in accordance with the standards of the profession for similar professi.onals performing services in this area at this time. CITY may terminate CONTRACTOR'S services hereunder at any time with or without cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing through the City Engineer, notice of which shall be delivered to CONTRACTOR as provided in Section 16 herein. 13. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the supervisory work hereunder shall not be delegated by CONTRACTOR to any other person or entity without the consent of CITY. 14. COPYRIGHTS/PATENTS CONTRACTOR shall not apply for a patent or copyright on any item or material produced as a result of this Agreement, as set forth in 41 CFR 1-9.1. 15. CITY EMPLOYErS AND OFFICIALS CONTRACTOR 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 California Government Code Sections 1u30 et seq. (6) �n ' pil 16. NOTICES Any notices or special instructions required to be given in writing under this Agreement shall be given either by a personal delivery to CONTRACTOR'S agent (as designated in Section 1 hereinabove) or to CITY'S Director of , 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 Services, addressed as follows: TO CITY: TO CONTRACTOR: Mr. Charles Thompson Mr. Donald Brewer, President City Administrator Performance Cost Systems, Inc. City of Huntington Beach 500 Denton Tap, Suite 105 2000 Main Street Coppel, Texas 75019 Huntington Beach, CA 92648 --REMAINDER OF PAGE LEFT BLANK-- s (7) Is C 17. ENTIRETY The foregoing, and Exhibit "A" attached hereto, set forth the entire Agreement between the parties. j IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. I CONTRACTOR: PERFORMANCE COST CITY OF HUNTINGTON BEACH, SYSTEMS, INC. , a Texas A municipal corporation corporation of the State of California ald E. Brewer - President ` Mayor i I Debbie O Brien - Secretary ATTEST: APPROVED AS �� O FORM: City Clerk � City Attor REVIEWED AND APPROVED: INI TED f PROVED: 'i City Administ ator _ o i • s a• iv=S 'fs 3 u (8) 7'ICi Pencrmance Cost Systems, Inc. March 18, 1986 Mr. Wayne R. Lee Accounting Officer Accounting & Records Division CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, CA 92648 Dear Mr. Lee: I appreciated the opportunity to meet with you and your staff last Thursday to discuss how Performance Cost Systems, Inc. can assist the City of Huntington Beach become self-sufficient with regard to cost allocation. Per our discussion last week, our approach to assist the city will be two fold. SOFTWARE LICENSE First, we will license PCS Cost Allocation software to the City. This software has been designed specifically for personal computers. It will operate on your Burroughs (B-25 with MS-DOS) , or on an IBM-PC. Per our demonstration, it will generate a double step down cost allocation plan for a city with up to 160 departments. This is far beyond the limitations required by Huntington Beach. In addition, the software can be used to develop user fee studies in accordance with the GANN Initiative (or Prop 4) . The purchase price of PCS Cost Allooation software is $4,900. This includes our staff coming on site tc install the software and spend up to eight hours of consultant time training City staff to operate the software. 500 Denton Tap, Suite 105, Coppeli,Texas 75019 214/462-1692 F 'EXHIBIT; ca-tiAz-n Also, we provide purchasers of PCS Cost Allocation with the opportunity to purchase enhancements made to the system on an annual basis for $500 each year. A client may purchase the enhancements or pass in any one year. I have enclosed a partial list of client references which `' have purchased the software. Feel free to call any of these clients concerning our software, the documentation provided, and the support we provide both during and after installation. CONSULTING SUPPORT From our discussion, it became apparent that it would be very beneficial to the City of Huntington Beach to have our staff develop the initial cost allocation plan that is processed on PCS Cost Allocation software. Our staff has developed cost plans for over two hundred cities and counties across the country in the last eight years. I've enclosed a client list for vour review. A. Scope The steps we will take to develop the initial cost plan will be as follows: Step 1. Review previous cost plans to gain an understanding of the City's needs and desires concerning the final output. Step 2. Review City's organization chart and develop an appropriate structure for the cost allocation plan. Step 3. Classify each department as either a central service department or a grantee (receiving) department. Step 4. Determine correct expenditure data for central service departments. Last years actual financial data (or current year budgeted financial data) will be utilized. Step 5. Determine functions within each central service department to reflect services rendered. Step 6. Determine best available "allocation units" for each function of each central service department. Step 7. Gather statistics identified in Step 6 in the most expedious, yet complete manner available. Step 8. Identify any "direct billed" amounts to ensure no double billings occur as a result of the cost plan. ��- PCS Step 9. Process plan and present "draft" results to City Administration for review and analysis. Step 10. Make all appropriate corrections and adjustments and process plan in "final" format. Step 11_ Assist City staff in a presentation of the cost plan to interested City departments. The purpose of this meeting is to inform departments of the amount of indirect costs they are incurring, and to fully explain the methodology used to generate the numbers. This completes the steps required to develop the initial cost plan for the City. Other plans (i.e. , Full Cost, Budget Year, Departmental, etc. ) can easily be generated using this as a basic building black. B. Staff PCS will staff this engagement with one of three individuals depending on availability. They would be Donald Brewer, Randall Handley, or Shirley Sewell. Resume's are enclosed. The City is expected to provide two qualified individuals for a period of up to two weeks to assist our staff, learn the 6ystem, and better understand cost allocation procedures and requirements. C. Schedule We are prepared to commence this engagement on April 7th. We would then expect to spend approximately two weeks on site. The entire engagement may take as long as six weeks to complete depending on the availability of data. D. Fees Our fee for this consulting service will be a fixed fee of Forty five hundred dollars ($4500) including all travel and expenses. our fee will be billable upon presentation of the draft plan to the City. We would then like to be paid within 30 days. ,-F. Contract 1 F If this proposal meets with the City's approval, the appropriate official could just sign at the end of this proposal. Normally for a service of this size (i.e. , $4900 for software license, plus $4500 for consulting services) a formal contract is not required. However, if the City wishes, it could issue a formal contract which I will review, sign, and return. -3- .GCS Wayne, I hope this fully explains our services.. If you have any questions, please call or write. Under separate cover I am forwarding copies of a completed cost allocation manual, PCS Cost Allocation UFer Manual and PCS�s Manual for the Preparation of Cost Allocation Plans. I look forward to hearing from you soon. Sincerely, Donald E. Brewer President DEB:do Accepted: City Official Date -4- PCs January, 1986 CLIENTS OF Donald E. Brewer The following clients had one or more cost allocation plans and/or user fee studies developed under the supervision of Donald E. Brewer during the period of 1978 through 1985. Specific client references (i.e. , names, addresses, and telephone numbers) will be provided upon request. Utilities Kansas Gas & Electric Company Arizona Public Service Company Houston Lighting & Power Company Pacific Gas & Electric Company California San Diego County Kings County City of Compton City of Santa Monica Kansas Douglas County Johnson County Kansas City Missouri Greene County City of St. Louis Cass County Jefferson County Clay County Green County Kansas City Cols County Jackson County City of Independence r Pennsylvania City of Erie Armstrong County Butler County Center County Erie County Lawrence County Mercer County Venango County f. Texas Collin County Galveston County Cameron County Harris County Dallas County San Patricio County El Paso County Tarrant County nCs T L== IZ Texas (continued) Travis Ccunty City of El Paso City of Abilene City of Grand Prairie City of Amarillilo City of Houston City of Austin City of Hurst City of Arlington City of Lubbock. City of Bedford City of Midland City of Corpus Christi State of Texas City of Dallas City of Austin Electric Dept. City of Denton Georgia Alaska City of Columbus City of Juneau Chatham County Ohio City of Columbus Jefferson County City of Portsmith Knox County Putnam County -ake County Delaware County wrence County Ashland County Licking County Astabula County Logan County Athens County Lorain County Auglaize County Medina County Belmont County Meigs county Brown County Mercer County Butler County Miami County Carroll County Muskingum County Champaign County Ottawa County Clark County Paulding County Clermont County Perry County Columbiana County Pickaway County Coshocton County Pike County Crawford County Preble County Delaware County Portage County Erie County Richland County Fairfield County Ross County Fayette County Sandusky County Franklin County Scioto County Gallia County Seneca County Greene County Stark County Guernsey County Summit County Hancock County Tuscarawas County Hardin County Union County Highland County Van Wert County Hocking County Vinton County Holmes County Washington County Jackson County Wayne County Wyandot County i I Idaho Hawaii. City of Boise Kaui County Hawaii County Colorado Florida Pitkin County Palm Beach County Louisiana City of Alexandria St. Bernard Parish City of Shreveport St. Landry Parish City of Baton Rouge St. Tammary Parish City of Lake Charles Tangepahoa Parish Jefferson Parish Lafayett Parish Calcasieu Parish Ouachita Parish Rapides Parish Arkansas Utah City of Fort Smith City of Provo i Pulaski County Salt Lake County Wisconsin Ashland County Outaganie County Chippew County Mock County Dane County Trempealeau County Green Lake County St. Croix County Iron County Vernon County Kenosha County Waukesha County Oconto County Waupaca County Oneida County K ij Y J January, 1986 PCS COST ALLOCATION SOFTWARE Client Listings Installations on various Types of P.C. 's IBM-PC Mr. John Dixon County Auditor (913) 841-7700 ext. 112 Douglas County, Kansas Hewlett Packard - 150 Mr. Mike Dennis or Mr. Bill Ramsey Finance Director Assistant Finance Director (213) 458-8281 (213) 458-8274 City of Santa Monica, California Burrouq_hs 20 Mr. Tim Brown City Controller (213) 537-8000 ext. 283 City of Compton, California Sp erry-Univac Mr. Eldred Prothro or Mr. Jerry McKensie Controller MIS (316) 261-6528 (316) 261-6522 Kansas Gas & Electric Company Wancf P.C. Mr. Robert Leland Finance Director (707) 426-5500 City of Fairfield, California Note: other reference: for the same or different models ?gill be provided upon request. PCs INMAN .53 DONALD E. BREWER Mr. Brewer is the President and Founder of Performance Cost Systems, Inc. Prior to his current position, Mr. Brewer was Vice President in charge of the South Central office for a national cost accounting consulting firm. As such, he was responsible for the development and application of indirect cost allocation plans for clients in Texas, Oklahoma, Mississippi, Missouri, New Mexico, Louisiana, Arizona, and Arkansas. Mr. Brewer's knowledge and experience enable him to assist many clients in expanding the areas of recoveries from cost allocation plans. For many clients, Mr. Brewer initiated "charge back" systems to recoup administrative costs provided to enterprise as well as Federal and State supported funds. As an outgrowth of the above, Mr. Brewer identified and developed the private sector cost allocation practice for the firm. AREAS OF WORK EXPERIENCE Utilities. Mr. Brewer was directly responsible for identifying a need for our specialized cost accounting services for utilities that manage joint projects, that operate in multiple states, or need to establish A&G load factors for their direct charged labor costs. Mr. Brewer has managed several highly successful cost allocation engagements for utilities. Cost Allocation Plans. He has been responsible for the development and application of indirect cost allocation plans for clients throughout the Southwest. Mr. Brewer's knowledge and experience enable him to assist many clients in expanding the areas of recoveries. He was a pioneer in the development of "Full Cost" cost allocation plans which allowed cities and counties to recover all costs incurred for an outside user. Mr. Brewer has participated in or managed the development of cost allocation plans in over one hundred cities and counties in twelve states. He has applied his in-depth knowledge of OMB Circular A-87 in maximizing the level of recoveries in every engagement on which he has worked. Special Reimbursement Programs. Mr. Brewer has been a guest speaker at numerous municipal and utility seminars and meetings. He has, in conjunction with the Federal Department of Housing and Urban Development, the Edison Electrical Institute, and the American Gas Association, conducted workshops on the theory and application of indirect cost rates and plans. Mr. Brewer, as a member of a select team of accountants, participated in a study of the indirect rate proposal developed by the University of Washington. This engagement required sensitive probing into fiscal matters. The ne* result was added Donald E. Brewer Page 2 revenues of approximately eight million dolla=--: _,"; the State of Washington. Mr. Brewer has also assisted certain counties in identifying the total direct and indirect costs of operating their jails. These engagements have resulted in thousands of additional dollars being recovered. The total operating cost was converted to a cost-per-prisoner-day basis. This rate was then charged to the U.S. Marshals Service and municipalities which house their prisoners in county jails. Revenue Maximization. Mr. Brewer has pioneered ef�ur- maximize revenues to his clients through the full costing process. He has conducted engagements which determined the full cost of service to outside users (e.g. , recreation fees, parking fires, court bailiff fees, etc. ) . In addition, he has reviewed billing algorithms of internal service funds (or clearing accounts) , to determine if the full cost of service was being charged out. Finally, efforts to modify cash flow resulted in increased investment income. EDUCATION AND OTHER EXPERIENCE Mr. Brewer was previously with the United States Navy for six years. For two years he was Chairman of the Audit and Inventory Commission at the Naval Air Station, Corpus Christi, Texas. In addition, he was a Search and Rescue Helicopter Aircraft Commander. As such, he conducted numerous S.A.R. and V.I.P. missions. He received his Bachelor of Science degree in Accounting from Northern Illinois University in 1972 and his Master of Arts (Business Administration and Human Relations) from Webster College in St. Louis, Missouri, in 1977. t 3 RANDALL R. HANDLEY Mr. Handley is a vice president and founder of Performance. Cost Systems, Inc. Prior to joining PCs on a full time basis, Mr. Handley was a manager with David M. Griffith and Associates, Ltd. , (DMG) and was assigned to the South Central Regional Office where he was responsible for the preparation of cost allocation plans and indirect cast rate proposals. Mr. Handley has managed the annual preparation of plans for over thirty clients in the last four years. He also possesses substantial experience in the audit and negotiation of cost allocation plans and indirect cosy rates, deriving from his former employment with the U.S. Department of Health and Human Services. In total, he possesses over 10 year's experience in the specialized field of indirect costs. AREAS OF WORK EXPERIENCE Preparation of Cost Allocation Plans. While employed with the firm of DMG, Mr. Handley was responsible for the annual management of cost plan development for over 30 state, county and city clients. Responsibilities also included the negotiation of completed plans on behalf of the clients and providing assistance to ensure the most effective implementation of cost plan results. In this capacity, Mr. Handley obtained extensive experience in the use and development of A-87, full cost, budget year, and special use cost plans. Negotiation and Audit of Cost Allocation Plans. For nearly five years prior to joining the DMG staff, Mr. Handley served in the position of Senior Negotiator with DHHS's Divisions of Cost Allocation in Kansas City, Missouri and Seattle, Washington. His most recent assignment in that capacity, in DHHS's Region X, involved full responsibility for review and negotiation of all cost allocation plans for which the Department was cognizant in the states of Oregon and Idaho. That experience provided Mr. Handley with a wealth of knowledge of the cost principles and procedures of OMB Circular A- 87. Audit; of Federal Grant Programs. Mr. Handley's initial employment with the Federal government was in the position of Auditor with the U.S. Department of Health, Education and Welfare. That experience provided him with a wide exposure to Federal grant programs and included numerous audit' utilizing the cost principles of A-87. • I PUBLICATIONS Mr. Handley is the author of the PCS publication "A Manual For The Preparation Of Local Government Agency Cost Allocation Plans." This Manual combines his experience and insight in a valuable procedures oriented document addressed specifically to the unique circumstances and needs of local governments. The publication is intended as a crucial link in the process of developing in-house expertise and self-reliance for cost allocation. EDUCATION AND OTHER EXPERIENCE Mr. Handley served honorably with the U.S. Army during the Viet Nam era. He received the B.S. degree in Business Management (with highest honors) from Northwest Missouri State University in 1972. He also received the Master of Business Administration degree from NWMSU in 1981. j 1 1 i Y 1 .... .. a..,cam,if,', 5.•swu,. 'u:...Uc+ ,._ wv ..+:. N.xu;,..{• ...s+n:..o .a . ....._.. SHIRLEY WALKER SEWELL Mrs. Sewell is a manager of Performance Cost Systems, Inc. Prior to joining PCs, Mrs. Sewell was an Associate of David Mr. Griffith and Associate, Ltd. She came to the firm from a local governmental entity whereby she utilized cost allocation plans to maximize indirect cost recoveries from state and federal grant programs, as well as recovering indirect costs through fees for governmental services. Mrs. Sewell worked directly on Vertex's utility engagements and has acquired an intimate knowledge of Nuclear Project budgets and procedures. AREAS Or WORK EXPERIENCE Utility Practice. Mrs. Sewell served as a consultant on a recent overhead study for a medium size electric utility. Her knowledge and application of cost accounting principles increased the client's A & G claims on a joint owned project by by almost two million dollars. As a result of the initial engagement Vertex was engaged to assist in the classification of costs to either the A & G or O & M Nuclear budget. The results of the second engagement was a reduction in the cost per Kwh due to proper classification of costs. ! Cost Allocation Plans. Mrs. Sewell participated in the development, review, implementation, and, audit of cost allocation plans for Dallas County, Texas. She has a comprehensive understanding of the cost allocation process, as well as the cost principles involved in the preparation of a s cost alloation plan and indirect cost proposals. In addition, Mrs. Sewell participated in the development, review and implementation of proposals for reimbursement of direct and indirect costs with the U.S. Marshal's Service for the housing oZ federal prisoners. Revenue Maximization. While with the County, Mrs. Sewell was directly responsible for County efforts to maximize fee reimbursement revenue by fully allocating direct and indirect program costs. She served a;z a primary staff member to a special Revenue Investigation Committee, appointed by the Commissioner's Court, to determine the full cost of services to users and to identify potential revenue increases. The final result from the recommendations of this task force was an immediate increase in revenue of $1.9 million dollars annnually for the County. 1 4 ,.. PCs Shirley W. Sewell Page 2 EDUCATION Mrs. Sewell earned her Bachelor of Arts degree in Political Science with honors from the University of Texas at Austin, in 1976. She earned her Masters of Public Affairs degree from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin, in 1978. 3 a age - PCs x � �'�Ct2'iY•f tw �.'..., Mimi e.... .s:irn.,,.wat+klYnxl+'�e 4,� i. RNMENNINI PCs Performance Cost Systems, Inc. April 14, 1986 Mr. Charles Thompson City Administrator CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, CA 92648 Dear Mr. Thompson: In accordance with paragraph 10 (i.e. ,Insurance) of the April contract between the City of Huntington Reach and Performance Cost Systems, Inc. , this certifies that there are no claims currently pending under, or against, our General Liability Insurance policy. Sincerely, onald E. Brewer President DEB:do Certified: by Donald E. Brewer 5 i �� 500 Denton Tap, Suite 105, Coppell,Texas 75019• 214/462-1692