HomeMy WebLinkAboutPUBLIC FINANCIAL MANAGEMENT, INC. - 2007-06-04 T-
CONTRACTS SUBMITTAL TO 2007 JUN -5 I'M 3: 30
CITY CLERK'S OFFICE
CIT
H U71 I 1
To: JOAN FLYNN, City Clerk
Name of Contractor: Public Financial Management, Inc.
Pu rpose of Contract: For Example:Audit Services or Water Quality Testing Huntington Lake—Huntington Central Park
Develop a long term financial plan
Amount of Contract: $36,570.00
Copy of contract distributed to: The original insurance certificate/waiver distributed
Initiating Dept. F-1 to Risk Management F1
Finance Dept. ❑ ORIGINAL bonds sent to Treasurer El
Le'�11 Date:
NWeFExtekion
City Attorney's Office
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G:AttyMisc/Cont Forms/City Clerk Transmittal
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
Public Financial Management, Inc.
FOR
Development of a Long-Term Financial Plan
Table of Contents
1 Scope of Services.....................................................................................................1
2 City Staff Assistance................................................................................................2
3 Term;Time of Performance.....................................................................................2
4 Compensation ..........................................................................................................2
5 Extra Work...............................................................................................................2
6 Method of Payment..................................................................................................3
7 Disposition of Plans, Estimates and Other Documents ...........................................3
8 Hold Harmless.........................................................................................................3
9 Professional Liability Insurance.............................................................................4
10 Certificate of Insurance............................................................................................5
11 Independent Contractor............................................................................................6
12 Termination of Agreement.......................................................................................6
13 Assignment and Delegation......................................................................................6
14 Copyrights/Patents...................................................................................................7
15 City Employees and Officials..................................................................................7
16 Notices.........................................................................................7
17 Consent....................................................................................................................8
18 Modification.............................................................................................................8
19 Section Headings .....................................................................................................8
20 Interpretation of this Agreement..............................................................................8
21 Duplicate Original....................................................................................................9
22 Immigration...............................................................................................................9
23 Legal Services Subcontracting Prohibited................................................................9
24 Attorney's Fees..........................................................................................................10
25 Survival.....................................................................................................................10
26 Governing Law.........................................................................................................10
27 Entirety......................................................................................................................10
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
Public Financial Management,lnc.
FOR
Development of Long-Term Financial Plan
THIS AGREEMENT ("Agreement") is made and entered into this day of
Q h 200-7. by and between the City of Huntington Beach, a municipal
corporation of the State of California, hereinafter referred to as "CITY, and
Public Financial Management, Inc. a California corporation
hereinafter referred to as "CONSULTANT."
WHEREAS, CITY desires to engage the services of a consultant to
develop a Long-Term Financial Plan
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 Craig Hoshijima who shall
represent it and be its sole contact and agent in all consultations with CITY during the
performance of this Agreement.
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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
six(6)months from the
"Commencement Date"). This Agreement shall expire on Commencement Date , unless
sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be
completed no later than six(6)months from the Commencement Date of this
Agreement. 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
Thirty Six Thousand Five Hundred Seventy Dollars($ 36,570.00
5. EXTRA WORK
In the event CITY requires additional services not included in Exhibit "A"
or changes in the scope of services described in Exhibit "A," CONSULTANT will
undertake such work only after receiving written authorization from CITY. Additional
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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 "13."
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
CONSULTANT hereby agrees to protect, defend, indemnify and hold
harmless CITY, its officers, elected or appointed officials, employees, agents and
volunteers 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
CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent performance of
this Agreement or its failure to comply with any of its obligations contained in this
Agreement by CONSULTANT, its officers, agents or employees except such loss or
damage which was caused by the sole negligence or willful misconduct of CITY.
CONSULTANT will conduct all defense at its sole cost and expense and CITY shall
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approve selection of CONSULTANT's counsel. 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
CONSULTANT.
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 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.
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10. CERTIFICATE OF INSURANCE
Prior to commencing performance of the work hereunder, CONSULTANT
shall furnish to CITY a certificate of insurance subject to approval of the City Attorney
evidencing the foregoing insurance coverage as required by this Agreement; the certificate
shall:
A. provide the name and policy number of each carrier and policy;
B. shall state that the policy is currently in force; and
C. shall promise that such policy shall not be suspended, voided or
canceled by either party, reduced in coverage or in limits except
after thirty (30) days' prior written notice; however, ten (10) days'
prior written notice in the event of cancellation for nonpayment of
premium.
CONSULTANT shall maintain the foregoing insurance coverage in force
until the work under this Agreement is fully completed and accepted by CITY.
The requirement for carrying the foregoing insurance coverage shall not
derogate from CONSULTANT's defense, hold harmless and indemnification obligations as
set forth in this Agreement. CITY or its representative shall at all times have the right to
demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a
prompt and timely manner,the premiums on the insurance hereinabove required.
11. 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
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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.
12. 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, report, and evidence shall, at the option of CITY, become
its property and shall be promptly delivered to it by CONSULTANT.
13. 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. 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.
14. 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.
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15. 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.
16. 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: TO CONSULTANT:
City of Huntington Beach Public Financial Management, Inc.
A'ITN: Dan T.Villella, Finance Director Attn:Craig Hoshijima,Sr.Managing Consultant
2000 Main Street
Huntington Beach, CA 92648 660 Newport Center Dr.,Suite 750
Newport Beach,CA 92660-6408
17. CONSENT
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.
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18. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid
unless in writing and duly executed by both parties.
19. 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.
20. 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.
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
agree/forms/profsery 10/15/01-A 8
which is hereby affected shall be curtailed and limited only to the extent necessary to bring
it within the requirements of the law.
21. 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.
22. 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.
23. 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
legal counsel for CITY; and CITY shall not be liable for payment of any legal services
expenses incurred by CONSULTANT.
24. 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,
agree/forms/profserv10/15/01-A 9
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.
25. SURVIVAL
Terms and conditions of this Agreement, which by their sense and context
survive the expiration or termination of this Agreement, shall so survive.
26. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the
laws of the State of California.
27. 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 parry'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
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.
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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.
CONSULTANT,
Public Financial Management, Inc. CITY OF HUNTINGTON BEACH,
a municipal corporation of the State of California
I
Director of Finance
(Pursuant To HBMC§3.03.100)
print name
ITS: (circle one)Chairman/Presiden ice President,/I APPROVED AS TO FORM:
AND
City AttojnQG•c>f-O�"
11 REVIEWED A D APPROVED:
print name � f
ITS: (circle one)s cretaryCChief Financial Officer Asst.
Secretary—Treasurer
C�ir Administrator
(only for cbntr is$50,000.00 and over)
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EXHIBIT "A"
A. STATEMENT OF WORK: (Narrative of work to be performed)
CONSULTANT shall develop a long-term financial plan that will forecast the City's general
fund revenues and expenditures and identify the amount of backlogged infrastructure projects
that can be funded from the City's limited resources. The Plan will identify various funding
strategies, including new revenue sources, in order to fund a maximum amount of the City's
backlog of infrastructure projects. The Plan will also assess the risks associated with certain City
revenues and expenditures, such as a loss or decrease in property taxes and utility user's taxes,or
an increase in the amount needed to fund post retirement benefits. The Plan will allow the City to
best utilize its financial resources to fund needed infrastructure, and help the City better
understand the long-term impact of its financial decisions.
B. CONSULTANT'S DUTIES AND RESPONSIBILITIES:
CONSULTANT shall provide the following six tasks:
1. Meet with the City and compile information on the project
2. Develop projections of general fund revenues and expenditures
3. Identify funding strategies for the backlog of infrastructure projects
4. Perform a risk assessment of certain general fund revenues and expenditures
5. Recommend changes to City financial polices and process for integration with the City
budget
6. Draft a Long-Term Financial Plan report that encapsulates the work to be done
Task 1. Meetings and Interviews with City
PFM will meet with City staff and officials to coordinate the provision of data and determine the
various assumptions that will be used in the Long-Term Financial Plan. PFM will review
previous reports and studies prepared by or on behalf of the City that evaluate the City's
infrastructure needs, including those prepared by the Infrastructure Advisory Committee and
Infrastructure Planning Committee.
Task 2. Long-Term Financial Projections
PFM will work with the City to develop 10-year projections of each of its general fund revenues
and expenditures. Projections will also be developed for special revenue funds, including the Air
Quality, Gas Tax, Measure M, Park, Acquisition and Development, and Traffic Impact funds.
PFM will work with the City to determine growth assumptions for major revenue and
expenditure items and for major categories of revenues and expenditures. PFM will compile the
financial projections into a proprietary, Excel-based computer forecasting model.
Revenues
PFM will develop projections of all the various general fund revenues based on clear and
justifiable assumptions regarding future growth. In addition, for most of the City's revenues,
PFM will identify:
jmp/contracts group/exA/5/21/07
EXHIBIT "A"
• recent historical data regarding activity in the factors that generate the revenue (e.g., assessed
valuation for property taxes, taxable sales for sales tax, number of permits issued for plan
check fees);
• recent historical data regarding gross revenues;
• collection methodology and any collection issues; and
• accounting information, such as account and fund numbers.
For revenues that are under the City's direct control, such as fees for service or the repayment of
the City's redevelopment agency loans, PFM will identify the City's policies for adjusting these
revenues and incorporate these assumptions into the projections.
Expenditures
The Long-Term Financial Plan will develop general fund expenditure projections and identify
the underlying factors that drive these costs. The major recurring component of the City's costs
will continue to be personnel costs. PFM will review the City's labor agreements and the terms
of contracted service. We will analyze historical budget information as well as economic and
demographic data. We will review employee pay and benefits, use of overtime, worker's
compensation, and similar cost drivers. A major focus of the expenditure analysis will be the
City's post-retirement benefits. The City has unfunded liabilities in three separate benefit plans
associated with Annual Required Contributions necessary to fund these liabilities.
PFM will also incorporate the City's infrastructure projects into the projections. PFM will work
closely with City staff to develop a comprehensive list of infrastructure projects, including their
cost and construction schedule.
Computer Model
PFM will develop a computer model using a database structure that includes historical revenue
and expenditure values; their respective fund, class, and object codes; and a chart of accounts
associating the various revenues and expenditures to its department and fund. "Drivers" will be
added to each line item so that projections can be determined. The drivers are coefficients and
are based on historic growth rates, staffing levels, inflation rates, etc.
Upon completion of its development, PFM will provide a working version of the computer
model to the city, as well as instructions for the ongoing use of the computer model.
Task 3. Infrastructure Funding Strategies
PFM will help the City develop an infrastructure funding strategy that can fund a maximum
amount of future infrastructure given the City's limited resources.
A first step in developing a funding strategy will be the identification of existing resources
available to fund infrastructure projects. That is, how much of general and special revenue fund
revenue and fund balance will be available for infrastructure, after payment of ongoing operating
costs? To determine this, PFM will first prepare a projection of general and special revenue fund
revenues and expenditures that excludes any infrastructure projects. This initial scenario, or
"base case," will identify the existing resources available to fund infrastructure. PFM will then
jmp/contracts group/exA/5/21/07
EXHIBIT "A"
incrementally incorporate infrastructure projects and determine a maximum amount of projects
that can be funded with existing revenues and debt financing. PFM will also evaluate the
potential for new revenues that can fund infrastructure projects.
Debt Capaci Analysis
An important part of the infrastructure funding strategy is determining the maximum amount of
debt that can be prudently used to finance the various infrastructure projects. PFM will help the
City determine the amount of debt that can be used for the infrastructure projects and compute
the key debt ratios (e.g. debt per capita, debt as a percent of general fund revenue) in order to
assess the relative debt burden on the City.
New Revenues
PFM will evaluate the composition of the City's existing revenues and identify any types of
revenue that are available to the City but are currently unused, as well as those that the City can
increase. A review of the City's current set of revenues may identify pools of funding that are
either underutilized or unutilized by the City. New revenues that will be evaluated include new
user fees, federal and state grants, voter-approved assessments, and transfers from the enterprise
funds. Any new revenues can be incorporated into the Long-Term Financial Plan as a new
funding source for the City's future infrastructure needs.
Task 4. Risk Analysis
PFM will evaluate the long-term financial impact of certain risk factors, including the potential
loss or long-term reduction of key revenues, or relatively large and excessive increases in
expenditure items.
PFM will assess various scenarios for the City, including the loss of utility user's tax revenue, so
that the long-term impact of such an event can be evaluated. PFM will also run scenarios that
assess the impact of various labor cost growth patterns, including the cost of employee
retirement benefits.
Task 5. Financial Policies and Budget Integration
PFM will review the City's existing financial policies and make comments and recommend
changes or additions as they relate to the Long-Term Financial Plan. PFM will recommend the
timing and method of incorporating the Long-Term Financial Plan with the budget process.
PFM will also integrate any significant performance measures from the City budget into the
Long-Term Financial Plan to assess the long-term impact of results budgeting.
Task 6. Draft Long-Term Financial Plan Report
PFM will prepare a Long-Term Financial Plan report that describes the various findings,
assumptions used, and methodological approach. The report will describe the approved
infrastructure funding strategy and the amount of infrastructure to be funded, discuss the results
of the revenue and expenditure risk analysis, and give a detailed assessment of the City's
financial prognosis. PFM will prepare both a draft and final report. Prior to the preparation of
the final report, PFM will present the findings of the draft Long-Term Financial Plan to the
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EXHIBIT "A"
Finance Board and City Council. The final report will address comments and direction provided
by the Finance Board and City Council.
Additional Tasks
PFM will assist City staff in an annual update of the computer model and Long-Term Financial
Plan that is expected to be done in conjunction with the preparation of future City budgets. As
part of the annual update, PFM will verify the accuracy of the historical accounting data that is
downloaded into the model. PFM will make modifications to the computer model, as needed to
reflect any changes to the City's accounting system or to reflect changes in growth assumptions
requested by the City. PFM will review future versions of the Long-Term Financial Plan and
provide comments and suggested changes.
C. CITY'S DUTIES AND RESPONSIBILITIES:
The City shall assign Finance Director Dan Villella as the program manager. He will oversee the
project described in Section B of this exhibit. The program manager will also coordinate all
meetings held related to this project.
D. WORK PROGRAM/PROJECT SCHEDULE:
To be determined.
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EXHIBIT "B"
Payment Schedule
1. Charges for time during travel are normally not reimbursable and will only be paid if
such time is actually used in performing services for CITY or as otherwise arranged with CITY.
2. CONSULTANT shall be entitled to a full payment towards the fixed fee set forth
herein in accordance with the following fee schedule:
Hourly Rates
PFM will bill the City for all services performed according to the following hourly rates by PFM
job title, subject to the not-to-exceed amount.
PUBLIC FINANICAL
MANAGEMENT
HOURLY RATES
Hourly
Title Rate
Managing Director $300
Senior Managing Consultant $250
Consultant $190
Expenses
In addition to the hourly fees described above, PFM will be reimbursed at cost for travel, meals,
lodging, communications, reproduction, graphics, postage, legal fees, and any other
miscellaneous costs incurred in serving the City. Appropriate documentation and third party
receipts will be provided with each invoice.
Not-to-Exceed Amount; Cost per Task
The chart below details the rates and hours assigned personnel will dedicate to the project and
each task described in the Statement of Work. PFM will complete the proposed work within a
not-to-exceed amount of$36,570.
jmp/contracts group/exB-1/5/21/07 1
EXHIBIT B
Alternative#1
NOT-TO-EXCEED AMOUNT
FINANCIAL PLAN
Rate: $300 $250 $250 $250 $190
Keith Craig Camille Randall Ashley Total Total
Task Curry Hoshiiima Barnett Bauer Kost Hours Cost
1 1.00 8.00 0.50 0.50 - 10.00 $ 2,550
2 - 12.00 8.00 8.00 30.00 58.00 12,700
3 - 16.00 4.00 4.00 - 24.00 6,000
4 - 6.00 4.00 4.00 - 14.00 3,500
5 - 6.00 4.00 - - 10.00 2,500
6 1.00 20.00 4.00 4.00 8.00 37.00 8,820
Total Hours 2.00 68.00 24.50 20.50 38.00 153.00
Total Cost $600 $17,000 $6,125 $5,125 $7,220 $36,070
Expenses 500
of--to-Exceed Amount $36,570
Additional Tasks
In the event the City requests that PFM perform the"Additional Tasks"as described in
Statement of Work, these tasks will be billed to the City at the Hourly Rates identified in this
Cost Proposal. The hours and cost to perform the Additional Tasks for one year are shown in the
following table. PFM will complete the Additional Tasks within a not-to-exceed amount of
$10,180 for each year the work is performed.
1 AMOUNT
ADDITIONAL
Rate: $300 $250 $250 $250 $190
Keith Craig Camille Randall Ashley Total Total
Curry Hoshiiima Barnett Bauer Kost Hours Cost
14.00 1.00 1.00 32.00 48.00 $10,080
Total Hours - 14.00 1.00 1.00 32.00 48.00
Total Cost - $3,500 $250 $250 $6,080 $10,080
Expenses 100
of--to-Exceed Amount $10,180
3. Delivery of work product: A copy of every memorandum, letter, report, calculation
and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate
imp/contracts group/exB-1/5/21/07 2
EXHIBIT B
Alternative#1
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.
4. CONSULTANT shall submit to 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 CONSULTANT's firm that
the work has been performed in accordance with the provisions 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 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.
5. 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.
jmp/contracts group/exB-1/5/21/07 3
EXHIBIT B
Alternative#1
$" , INSURANCE AND INDEMNIFICATION WAIVER
MODIFICATION REQUEST
MAY
3J20e
1. Requested by: Rick Amadril/Janet Lockhart y
2. Date: May 23, 2007 C�CIty Attornof e's omc h
3. Name of contractor/permittee: Public Financial Management, Inc.
4. Description of work to be performed: Develop Long-Term Financial Plan
5. Value and length of contract: $36,570.00
6. Waiver/modification request: See attached list of waivers/modification requested
7. Reason for request and why it should be granted: See attached list for reasons
8. Identify the risks to the City in approving this waiver/modification: Low
r
r
epartment Head Signature Da W.
APPROVALS
Approvals must be obtained in the order listed on this form. Two approvals are required
for a request to be granted. Approval from the City Administrator's Office is only required if
Risk Management an the City Attorney's Office disagree.
1. Zk Management
Approved ❑ Denied``._
Si n e D to
2. Ci ttorney's Office
r
p roved ❑ Deni � --
Signature Date
3. City Administrator's Office
❑ Approved ❑ Denied
Signature Date
If approved, the completed waiver/modification request is to be submitted to the
City Attorney's Office along with the contract for approval. Once the contract has-been approved,
this form is to.be filed with the Risk Management Division of Administrative Services
LTFP PFM Ins'Waim 5/23/2007 9:56:00 AM
Client#:39328 PUBLFI
ACOR - CERTIFICATE OF LIABILITY INSURANCE 12/20/06Dm'
PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Frank Crystal&Co.,Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
Financial Square HOLDER. THIS CERTIFICATE HOES NOT AMEND, EXTEND OR
q ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
32 Old Slip
New York,NY 10005 INSURERS AFFORDING COVERAGE
INSURED INSURER A: Indian Harbor Insurance Co.
Public Financial Management,Inc. INSURER B:
Two Logan Square,Suite 1600
INSURER C:
18th and Arch Streets
INSURER D:
Philadelphia, PA 19103
INSURER 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.
NSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION
LTR DAT MM/DD Y DATE MM/DD/YY LIMBS
GENERAL LIABILITY - _ EACH OCCURRENCE $
COMMERCIAL GENERAL LIAB IL ITY FIRE DAMAGE(Any one fire) $
CLAIMS MADE 7OCCUR - MED EXP(Any one person) $
PERSONAL&ADV INJURY $
- GENERAL AGGREGATE $
GEN'L AGGREGATE LIM IT APPL IES PER: PRODUCTS-COMP/OP AGG, $
POLICY 1RI LOC
JECT
AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT $
ANY AUTO (Ea accident)
ALL OWNED AUTOS '4 BODILY INJURY
SCHEDULED AUTOS '-' ,�4, (Per person) - $
{
HIRED AUTOS � ti PO
4
r• _, .BODILY INJURY
NON-OWNED AUTOS yi.., �l'_� (Par accident) $
PROPERTY DAMAGE- $
i (Per accident)
GARAGE LIABILITY v L AUTO ONLY-EA ACCIDENT $
ANY AUTO T� OTHER THAN EA ACC $
AUTO ONLY: AGG $ _
EXCESS LIABILITY .-: EACH OCCURRENCE $
OCCUR CLAIMS MADE - AGGREGATE Is
$
DEDUCTIBLE -.. $
RETENTION $ $
WORKERS COMPENSATION AND WC STATU O R
RY IT- R
EMPLOYERS'LIABILITY
E.L.EACH ACCIDENT : $
I E.L.DISEASE-EA EMPLOYEE $
E.L.DISEASE -POLICY LIMIT $
A �THER Professional - ELU09526406 11/30/06 11/30/07 $15,000,000 Limit
ability $500,000 Retention
DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENTISPECIAL PROVISIONS
Re Professional Services contract between the City of Huntington Beach and
Public financial Management for Financial Advisor Services.
The Professional Liability Policy is non-cancelable by the Insurer.
{See Attached Descriptions)
CERTIFICATE HOLDER I .ADD RIONAL INSURED;INSURER LETTER: CANCELLATION
SHOULD ANYOF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
Huntington Beach,City Of, DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TOMAILnjC DAYS'WRriTEN
Purchasing Department NOTICETOTHE CERTIFICATE HOLDER NAMED TOTHE LEFT,BUTFAILURE TODOSOSHALL
2000 Main Street IMPOSE NO OB LIGATION OR LIABILITY OF ANY IDND UPON THE INSURERJTS AGENTS OR
Huntington Beach,"CIA '92648 REPRESENTATIVES.
AUTHORIZED REPRESENTATIVE
ACORD 25-5(7J97)1 of 3 #197939 JDM a ACORD CORPORATION 1986
Name of Consulting Firm: Public Financial Management, Inc.
Service to Be Provided: Development of Long-Term Financial Plan
List of Waivers
Page 1, 1st paragraph—Please change "California Corporation" to "Pennsylvania
Corporation".
P. 4, Section 9. PFM would like a waiver to the zero deductible. They have $15 i
million in coverage and a $500,000 deductible on their professional liability policy.
Reason for request: PFM believes that it has sufficient financial resources and liquidity /
to make payment on any claim to the city as a result of professional liability, up to our
deductible amount of$500,000. As evidenced by our most recent 2005 financial
statements, PFM maintained a current ratio of over 3.4, with current assets exceeding
current liabilities by $15.7 million after adjusting for discretionary bonus accrual. PFM
also has an available line of credit of$16 million.
P. 5, Section 10'.C. PFM is requesting to delete this section; however, they are
willing to restate the following language as a new paragraph following 10.B:
C�,r '
The policy shall not be reduced in coverage or in limits except after thirty(30) days' 1
prior written notice from the CONSULTANT; however, ten (10) days prior written notice
in the event of cancellation for nonpayment of premium.
Reason for request: The insurer will not agree to notify the city if policy coverage/ limits
are reduced so PFM cannot include this in the certificate.
CITY OF HUNTINGTON BEACH
Professional Service Contracts
Purchasing Certification
r
1. Date: 5/31/2007
2. Department: Finance
3. Requested by: Dan T. Villella
4. Name of consultant: Public Finance Management, Inc.
5. Attach the written statement of the specification, conditions, and other requirements for the requested
services provided to solicited consultants.
See Exhibit A
6. Amount of the contract: $36,570.00
7. Are sufficient funds available to fund this contract?' ® Yes ❑ No
8. Is this contract generally described on the list of professional service contracts approved by the City
Council?' ® Yes ❑ No
9. Company number and object code where funds are budgeted: 10035201.69365, 10035204.69365
10. Is this contract less than $50,000? ® Yes ❑ No
11. Does this contract fall within $50,000 and $100,000? ❑ Yes ® No
12. Is this contract over$100,000? ❑ Yes ® No
(Note: Contracts requiring City Council Approval need to be signed by the Mayor and City Clerk. Make
sure the appropriate signature page is attached to contract.)
13. Were formal written proposals requested from at least three available qualified consultants?
® Yes ❑ No
14. Attach list of consultants from whom p oposals were requested (including a contact telephone number).
15. Attach proposed scope of work.
See Exhibit A
16. Attach proposed payment schedule.
See Exhibit B
Department Head SignaturJ RICHARb AMADRIL
Purchasing and Central Services Manager
1. If the answer to this question is"No," the contract will require approval from the City Council.
Greg Farrell Emily Wagner Allan Burdick
California Municipal Management E. Wagner&Associates, Inc. MAXIMUS, Inc.
isultant Servics 5990 Stoneridge Dr#103 4320 Auburn Blvd#2000
.�/66 Larchmont St Pleasanton, CA 94588-3234 Sacramento, CA 95841-4154
Poway, CA 92064-2637
Anne Pelej Greg Ghironzi Chad Wohlford
MuniFinancial NBS Wohlford Consulting
27368 Via Industria#110 32605 Highway 79 South#100 372 Florin Rd#293
Temecula , CA 92590-4856 Temecula, CA 92592-6838 Sacramento, CA 95831-1407
West Hough Craig Hoshijima
Public Resources Advisory Group Public Financial Management Inc Caryle Financial Services Inc
11845 W Olympic Blvd#640 660 Newport Center Drive #750 325 N St Paul St#800
Los Angeles, CA 90064-1149 Newport Beach, CA 92660-6408 Dallas, TX 75201-3852
Christopher Mukai Curt M DeCrinis Robert Wagner
Citigroup Golobal Markets Inc CM DeCrinis & Co Inc Encircle Inc
444 S Flower St 27th Fl 11846 Ventura Blvd#101 Once Encircle Plaza
Los Angeles, CA 90071-2901 Studio City, CA 91604-2620 1691 NV 107 Ave
Miami, FL 33172-2711
Pamela Newcomb Stephen M Zamucen
Kinsell, Newcomb &De Dios Inc ZCH&H Zamucen, Curren, Holmes GFOA
462 Stevens Ave#308 & Hanzich Dept 77-3076
Solana Beach, CA 92075-2066 17848 Sky Park Cir Chicago, IL 60678-3076
Irvine, CA 92614-613 5
Martin & Chapman Sylvester & Kasten CPA Diehl, Evans & Company LLP
1951 Wright Cir 17291 Irvine Blvd 9300 2121 Alton Pkwy#100
Anaheim, CA 92806-6028 Tustin, CA 92780-2931 Irvine, CA 92606-4956
Harrell & Co Advisors LLC
333 City Blvd W#1430 =
Orange, CA 92868-2959
CITY OF HUNTINGTON BEACH 1
PROFESSIONAL SERVICES LISTING
Professional Services Account Series 69300-69395 -
Department
Division or Fund Description Amount Business Unit Number
Administration Consultant for long range financial planning $25,000 10035201
Accounting Annual Auditing(CAFR) $45,000 10035205
Consultant-Sales Tax audit and information $25,000 10035205
Audit-property tax $25,000 10035205
Consultant-SB 90 state claims $16,000 10035205
Legal Services-utility user tax/franchise review $90,000 10035205
Budget and Research Consulting services related to budget module in JDE $20,000 10035204
Other Funds
BID Auto Auto dealer sign maintenance $150,000 70135201
Retirement Supplement Auditing $36,000 70335203
Retirement Med/Suppl Actuarial services $11,000 70235202
Total Professional Services $443,000
City of Huntington Beach
Professional Services Budget Report
As of May 31, 2007
R55BUDGET HB0018
Adopted Revised Expended Encumbered Available
L_ Object Account Budget Budget YTD YTD Funds
FIN Finance
00100 General Fund
10035201 Finance Administration
69300 Professional Services
69345 Auditing Prof Svcs
69365 Other Professional Services _ 25,000 25,000 25,000
69300 Professional Services 25,000 25,000 25,000
10035201 Finance Administration 25,000 25,000 25,000
10035204 Budget and Research
69300 Professional Services -
69345 Auditing Prof Svcs
69365 Other Professional Services 20,000 20,000 20,000
69300 Professional Services 20,000 20,000 20,000
10035204 Budget and Research 20,000 20,000 20,000
00100 General Fund 45,000 45,000 45,000
FIN Finance 45,000 45,000 45,000
Grand Total(s) 45.000_ 45,000 45 000
Page- 1 of 1 Report Run Date/Time 5/31/2007 14:56:36