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HomeMy WebLinkAboutPUBLIC RESOURCES MANAGEMENT GROUP - 2004-06-07 CITY OF HUNTINGTON BEAC- - MEETING DATE: June 7, 2004 DEPARTMENT ID NUMBER: AS-04-015 Council/Agency Meeting Held: D Deferred/Continued to: 44 pproved ❑ Conditionally Approved ❑ Denied City er 's ature Council Meeting Date: June 7, 2004 Department I umber: AS D4-015 CITY OF HUNTINGTON BEACH '} REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL ' SUBMITTED BY: PENELOPE CULBRETH-GRAFT, CITY ADMINISTRATOR PREPARED BY: CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: SELECTION OF A CONSULTANT TO DEVELOP A COST ALLOCATION PLAN AND USER FEE STUDY Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Should the city approve an agreement with Public Resources Management Group, a sole proprietorship, to assist the city in developing an updated cost allocation plan and user fee study? Funding Source: Funding was adopted by the City Council in the fiscal year 2003/2004 budget in account number 10035101.69365. The contract with Public Resources Management Group is for an amount not-to-exceed $100,000. Recommended Action: Authorize the City Administrator to enter into an agreement with Public Resources Management Group, a sole proprietorship, to assist the city in developing an updated cost allocation plan and user fee study. Alternative Action(s): Do not approve the agreement and provide staff with appropriate direction. H:\RCA's\Cost Allocation and User Fee Consulant RCA.doc -2- 5/19/200410:11 AM l REQUEST FOR ACTION MEETING DATE: June 7, 2004 DEPARTMENT ID NUMBER: AS-04-015 Background: To ensure that the City of Huntington Beach is utilizing comprehensive rates and accurately accounting for the true cost of providing various services within city operations, each year the Administrative Services Department has a cost allocation plan and user fee study commissioned. To assist in preparing the cost allocation plan and user fee study the city hires a consultant to advise and assist the various departments within the city in developing and executing the updated cost allocation plan and user fee study. Specifically, the cost allocation plan and user fee study consultant is retained to provide the following types of services: Cost Allocation Plan • Work with selected city staff to define the purpose, uses, and goals for a cost allocation plan, ensuring that the development of the plan will be both accurate and appropriate for the city's current needs. • Develop a cost allocation model for calculating the full costs of providing each city service. The model shall allow for: o The addition or removal of direct and indirect costs so that the cost allocation plan can be developed from a simple plan to a progressively more inclusive plan. o The ability to continuously update the model and cost allocation plan from year-to-year as the organization grows and develops or as the organization changes. o The addition of hypothetical service area information for future services enhancements, and the ability to calculate the estimated costs of providing the service under consideration. • Work with the Administrative Services Department in developing service provisions, cost categories, and allocation criteria for current and future programs. • Prepare and deliver presentations designed to facilitate the understanding of the cost allocation plan and its implications to the City Council of City of Huntington Beach. • Draft cost allocation plan and participate in the presentation to selected city staff and City Council. Collect and document comments and concerns. from staff and councilmembers and assist in preparing responses. H:\RCA's\Cost Allocation and User Fee Consulant RCA.doc _11-, 5/19/200410:11 AM z REQUEST FOR ACTION MEETING DATE: June 7, 2004 ' DEPARTMENT ID NUMBER: AS-04-015 Comprehensive User Fee And Rate Study • The consultant shall conduct a comprehensive review of the city's existing fees, rates, and charges structure with the goal of establishing an objectively based fee and rate structure that meets the needs of the city and is consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to, Proposition 218. • A review of the documentation supporting the current fee and rate structures for all departments and services is necessary. Further, in utilizing the Cost Allocation Model developed as part of this project, calculation of the costs of providing current levels of City services is required as part of this project. A survey comparison of rates and fees with similar cities, for information purposes only, is also requested. • The consultant shall meet with all departments to understand all business processes. The consultant shall recommend and help direct the calculation procedures to meet all current state laws. • Prepare and deliver presentations designed to facilitate the understanding of Comprehensive User Fee and Rate Study and its implications to the City Council of City of Huntington Beach. • Draft Comprehensive User Fee and Rate Study and participate in the presentation to select City staff and City Council. Collect and document comments and concerns from staff and Council members and assist in preparing responses. Cost Allocation Plan and User Fee Study Consultant Selection On January 12, 2004 the city issued a Request for Qualifications (RFQ) to Cost Allocation Plan and User Fee Study consultants. The city received responses to its RFQ from the following firms: 1. Public Resources Management Group 2. Maximus 3. MuniFinancial 4. CBIZ 5. Revenue & Cost Specialists, LLC 6. David Taussig & Associates, Inc. After reviewing the responses to the RFQ, Public Resources Management Group, Maximus, and MuniFinancial were invited to participate in interviews with the Director of Administrative Services, Director of Building & Safety, the Finance Officer, a Deputy City Attorney, the Deputy Director of Public Works, and the Planning Manager. The interview panel voted to recommend Public Resources Management Group because of their extensive experience in assisting similar agencies with cost allocation plans and user fee studies. H:\RCA's\Cost Allocation and User Fee Consulant RCA.doc 5/19/2004 10:11 AM 3 REQUEST FOR ACTION MEETING DATE: June 7 2004 DEPARTMENT ID NUMBER: A - 4-S 0 015 Public Resources Management Group has assigned, Brad Wilkes, to be the city's cost allocation plan and user fee study consultant. Mr. Wilkes specializes in governmental cost of service studies. He has a 20-year background in local government consulting focusing on cost allocation development, user fee rate calculations, indirect cost rate calculations, information technology, operations reviews, and cost of services for state and local governments. A sample of the agencies Mr. Wilkes has personally prepared cost full cost studies for includes: City/County of San Francisco; City of Campbell, California; City of Sacramento, California; City of Burbank, California; City of Culver City, California; City of Concord, California; City of Watsonville, California; City of Stockton, California; City of Los Angeles, California; County of Sacramento, California; Counties of Glenn, Inyo, Lassen, Mono and Marin California. In addition to the direct consulting work represented by the list above, Mr. Wilkes also led the development of cost allocation plan and user fee software used by Public Resource Management Group. In this role, he assisted in the requirement definition, documentation, programming, packaging and testing of the software. In this role he demonstrated a detailed understanding of the cost allocation plan and indirect rate calculation process. Cost Allocation Plan and User Fee Study Costs Public Resources Management Group will provide all services necessary for a successful Cost Allocation Plan and User Fee Study using the following fee schedule: Cost Allocation Plan Development (OMB and Full Cost Plans) $20,000 - $25,000 General Fund User Fee Study: $55,000 - $65,000 Total Costs Funding for the cost allocation plan and user fee study services (not-to-exceed $100,000) was included in the fiscal year 2003/2004 budget. Next Steps Meeting with the city management team and department heads at a cost allocation plan and user fee study kick-off meeting on Tuesday, June 8, 2004. Attachment(s): City Clerk's Page Number No. Description 1 Professional Service Agreement with Public Resources Management Group, a sole proprietorship RCA Author: William McReynolds H:\RCA's\Cost Allocation and User Fee Consulant RCA.doc -5 51191200410:11 AM ATTACHMENT # 1 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND PUBLIC RESOURCES MANAGEMENT FOR A COST ALLOCATION PLAN AND USER FEE STUDY 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 RESOURCES MANAGEMENT GROUP FOR A COST ALLOCATION PLAN AND USER FEE STUDY THIS AGREEMENT ("Agreement") is made and entered into this `-` day of %5ZW6: 20 04, by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY, and PUBLIC RESOURCES MANAGEMENT GROUP a SOLE PROPRIETORSHIP hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to A COST ALLOCATION PLAN- AND USER FEE STUDY ; 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 J BRADLEY WI LKES who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. agree/forms/profsen•10/15.01-A 1 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM: TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence as soon as practicable after the execution of this Agreement by CITY (the "Commencement Date"). This Agreement shall expire on , _ , unless sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than pECEmBER 31, 2no4 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 ONE HUNDRED :THOUSAND Dollars ($ 100,000 )• 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 agree/forms/profserv10/15/01-A 2 s • compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS 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 agree/forth s/profsery 10/15/01-A 3 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. agree.'form s/profsery 10/15/01-A 4 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 agree/forths/profserv10/15/01-A 5 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. agree/form s/profsery 10/15/01-A 6 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 Govermneni 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 RESOURCES MANAGEMENT GROUP ATTN: CLAY MARTIN ATTN: J BRADLEY WILKES 2000 Main Street Huntington Beach, CA 92648 1380 LEAD HILL BLVD. , SUITE 106 ROSEVILLE, CA 95661 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. agree/forms/profsery 10/15/01-A 7 • • 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/formsiprofsen•]Or 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. IMIVIIGRATION 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/fortes/protsery 1 Q'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 agree forms;'profserv10.15,01-A 10 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, CITY OF HUNTINGTON BEACH, PUBLIC RESOURCES MANAGEMENT GROUP a municipal corporation of the State of California A SOLE PROPRIETOKSHIP C;— By:__ Director of &M IN S I R l I t KV I CES (Pursuant To HBR9C§3.03.100) Lj ►ups print nam ITS: (circle one)Chairman'�resiideiiice President APPROVED AS TO FORM: AND City Atto e Slw/d/ Y e-�& REVIEWED AND I WRg'ab: print rianiel ITS: (circle one) ecreta hief Financial OfficeriAsst. _ C Secretary—Treasurer City Adminiscrator (only for contracts$ (1,m00.00 and over) agree/form s/profsery 10/15/01-A I I • EXHIBIT "A" is A. STATEMENT OF WORK: The City of Huntington Beach is requesting a Cost Allocation Plan and a Comprehensive User Fee and Rate Study. B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: 1. COST ALLOCATION PLAN Public Resources Management Group (PRM) shall complete the following tasks: Work with selected City staff to define the purpose, uses, and goals for a cost allocation plan, ensuring that the development of the plan will be both accurate and appropriate for the City's current needs. Develop a Cost Allocation Model for calculating the full costs of providing each City service. The requirements of the model shall allow for: • The addition or removal of direct and indirect costs so that the cost allocation plan can be developed from a simple plan to a progressively more inclusive plan. • The ability to continuously update the model and cost allocation plan from year-to-year as the organization grows and develops or as the organization changes. • The addition of hypothetical service area information for future services enhancements, and the ability to calculate the estimated costs of providing the service under consideration. • Work with the Administrative Services Department in developing service provisions, cost categories, and allocation criteria for current and future programs. • Prepare and deliver presentations designed to facilitate the understanding of Cost Allocation Plan and its implications to the City Council of City of Huntington Beach. • Draft Cost Allocation Plan and participate in the presentation to select City staff and City Council. Collect and document comments and concerns from staff and Council members and assist in preparing responses. Prepare final plan and provide fifty (50) bound copies and one unbound copy to the City. The Cost Allocation Model developed shall also be made available to the City on CD-ROM diskette Exhibit A-1 • EXHIBIT "A" • providing the ability to add or delete, and/or update information as needed. The Cost Allocation Model shall be provided to the City on CD-ROM as a single PDF file that is suitable for being placed on and printed from the City's website. 2. COMPREHENSIVE USER FEE AND RATE STUDY Public Resources Management Group (PRM) shall complete the following tasks: • The consultant shall conduct a comprehensive review of the City's existing fees, rates, and charges structure with the goal of establishing an objectively based fee and rate structure that meets the needs of the City and is consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to, Proposition 218. • A review of the documentation supporting the current fee and rate structures for all departments and services is necessary. Further, in utilizing the Cost Allocation Model developed as part of this project, calculation of the costs of providing current levels of City services is required as part of this project. A survey comparison of rates and fees with similar cities, for information purposes only, is also requested. • The consultant shall meet with all departments to understand all business processes. The consultant shall recommend and help direct the calculation procedures to meet all current State laws. • Prepare and deliver presentations designed to facilitate the understanding of Comprehensive User Fee and Rate Study and its implications to the City Council of City of Huntington Beach. • Draft Comprehensive User Fee and Rate Study and participate in the presentation to select City staff and City Council. Collect and document comments and concerns from staff and Council members and assist in preparing responses. • Prepare final study and provide fifty (50) bound copies and one unbound copy to the City. The study and related fee and rate schedules created shall be made available to the City on CD-ROM for ease of updating the information in the future. The Comprehensive User Fee and Rate Study shall be provided to the City on CD-ROM Exhibit A-2 EXHIBIT "A" • as a single PDF file that is suitable for being placed on and printed from the City's website. C. CITY'S DUTIES AND RESPONSIBILITIES: The City staff will provide the consultant with all relevant information it has pertaining to the City and its operations including operating and capital budgets, the existing cost allocation plan and current fee Resolutions and related documents. D. WORK PROGRAM/PROJECT SCHEDULE: Week One: On-site meetings in Huntington Beach. 1) Meeting with city management team and department heads to introduce study. 2) Begin discussions about the development of our projects "Communication Plan." It is important for the city to participate with this step. Only the city knows which key groups must be met with. For proposal planning purposes PRM has built in 5 formal presentations to be placed strategically throughout the project as determined by the city and PRM. 3) Obtain budgets, salary levels, staff lists, etc. to begin the cost plan. 4) Begin development of the cost allocation plan by entering basic data into PRM software. Week Three: On-site meetings in Huntington Beach. 1) Conduct Cost Workshop 101. 2) Begin individual department user fee meetings. 3) Have extensive meetings with finance to review cost allocation plan data requirements, goals and objectives. Weeks Four- Six: Continue to meet with departments and obtain draft fee data and begin to enter data into PRM software. Exhibit A-3 • EXHIBIT "A" • Weeks Seven-Twelve: 1) Project teams will assist departments with data gathering by giving direction and in some specific areas, actually developing data through sampling or data extraction. 2) Project teams will update data as needed. Weeks Thirteen-Fifteen: 1) Staff changes and comments will be used to update cost plan and user fee data. 2) Project teams will update data as needed. Weeks Sixteen - Seventeen: 1) Changes and comments will be addressed and a second draft of the user fee and a final draft of the cost plan will be developed. 2) Project teams will update data as needed. Weeks Eighteen —Twenty Two: Changes and comments will be addressed and a final draft of the cost plan and user fee study will be developed. Exhibit A-4 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 progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules. Cost Allocation Plan Development (OMB and Full Cost Plans) $20,000 - $25,000 General Fund User Fee Study: $55,000 - $65,000 For planning purposes our hourly rates are: Senior Team Members: $150/hr. Team Members: $110/hr. Support: $ 15/hr. Payment Schedule: PRM requests that payment be made by the milestones listed below: Draft Cost Plan Delivered: 70% Final Cost Plan Delivered: 30% 1st Draft of User Fee Data: 30% 2"d Draft of User Fee Data: 30% Final User Fee Reports: 30% Project Completed: 10% 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 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. Exhibit B-1 i • 4. CONSULTANT shall submit to CITY an invoice for each progress payment due. Such invoice shall: i. Reference this Agreement; ii. Describe the services performed; iii. Show the total amount of the payment due; iv. 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 v. 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. Exhibit B-2 DATE(MM/DD/YYYY) ACCRDM CERTIFICAT90F LIABILITY INSURA10E OS/06/2004 PRODUCER (916)286-5960 FAX (916)646-3996 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Pan American Underwriters Inc ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE /PL( HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR Li c #0132491 600, 10 ( ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. PO Box 13792 Sacramento, CA 95853 (.(, VAA47-(y0PV INSURERS AFFORDING COVERAGE NAIC# INSURED Brad Wilkes INSURERA: THE HARTFORD INS CO.. DBA: PRM Group INSURERB: PHILADELPHIA INDEMNITY INS CO S016 Brower Ct /Q/ INSURER C: Granite .Bay,. California 9S746 6��� INSURERD: INSURER E: COVERAGES . THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDIN 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. INSR DD' TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS DATE GENERAL LIABILITY 57SBAAT1354 08/19/2003 08/19/2004 EACH OCCURRENCE $ .1,000,000 X COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ 300,000 CLAIMS MADE D OCCUR MED EXP(Any one person) $ 10,000 A PERSONAL&ADV INJURY $ 1L,000,000 GENERAL AGGREGATE $ 2,000,000 GENT AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ 2,000,000 POLICY PRO LOC JECT AUTOMOBILE LIABILITY 57SBAAT1354 .08/19/2003 08/19/2004 COMBINED SINGLE LIMIT ANY AUTO (Ea accident) $ 1,000,000 ALL OWNED AUTOS BODILY INJURY SCHEDULED AUTOS (Per person) $ A X HIRED AUTOS BODILY INJURY $ -- -- - (Per accident) - X. NON,OWNEDAUTOS A's O O PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY EA ACCIDENT $ ANY AUTO OTHER.THAN EA ACC $ AUTO ONLY: AGG $ EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR FI CLAIMS MADE AGGREGATE $ DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND WC STATU- 0TH- EMPLOYERS'LIABILITY E.L.EACH ACCIDENT $ ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED- E.L.DISEASE-EA EMPLOYS $ If yes,describe under SPECIAL PROVISIONS below E.L.DISEASE-POLICY LIMIT $ ro essional Liability PHSD035565 08/19/2003 08/19/2004 Each Claim $1,000,000 B laims Made Policy Annual Aggregate . $1,000,000 Deductible Per Claim .$1,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS ertificate holder, it officers, elected or appointed officials, employees, agents & volunteers are named as additional insured per form SSO4490593 with respects to general liability arising out of he work performed by the insured. except 10 days notice of cancellation for non-payment of premium CERTIFICATE CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE City of Huntington Beach EXPIRATION DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL Administrative Services 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Attn• Bill Mc Reynolds BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 2000 Main Street, OF ANY KIND UPON THE INSURER,ITS AGENTS OR REPRESENTATIVES. Huntington Beach, , CA 92648 AUTHORIZED REPRESENTATIVE . ACORD 25(2001108) FAX: (714)374-5370 OACORD CORPORATION 1988 Insured: # Group/Brad Wilkes • Policy # 5AAT1354 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION- This endorsement modifies insurance provided under the following: BUSINESS LIABILITY COVERAGE FORM C. Who is an insured in the BUSINESS LIABILITY For losses covered under the BUSINESS COVERAGE FORM is amended to include as an LIABILITY COVERAGE of this policy this insurance insured the person or organization shown in the is primarily to other valid and collective insurance Declarations but only with respect to liability arising which is available to the person or organization out of the operations of the named insured. shown in the Declarations as an Additional Insured. City of Huntington Beach, It' s officers, elected or appointed Adminstrative Services officials, employees, agents & Attn: Bill Mc Reynolds volunteers 2000 Main Street__ Huntington Beach, California 92648 Form SS 04 49 05 93 Printed in U.S.A. (NS) Copyright, Hartford Fire Insurance Company, 1993 IMPORTANT If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s),authorized representative or producer,and the certificate holder, nor does it affirmatively or negatively amend,extend or alter the coverage afforded by the policies listed thereon. ACORD 26(2001/08) I IMPORTANT If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend,extend or alter the coverage afforded by the policies listed thereon. ACORD 25(2001/08) DATE(MM/DD/YYYY) ACORDTM' CERTIFICA*OF LIABILITY INSURA E OS/06/2004 PRODUCER (916)286-5960 FAX (916)646-3996 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION . Pan American Underwriters Inc (pit) ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Lit #0132491 QQ, HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. PO Box 13792 / �/d Sacramento, CA 95853 u (� INSURERS AFFORDING COVERAGE NAIC# INSURED Brad Wilkes INSURERA STATE FUND DBA: PRM Public Management Group INSURER B: S016 Brower Court 7*D INSURER C: Granite Bay, CA 9S746 6 INSURERD: INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDIN 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. INSR DD' TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ CLAIMS MADE OCCUR MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GENERAL AGGREGATE $ GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ POLICY F PRO- JECT LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT ANY AUTO (Ea accident) $ ALL OWNED AUTOS ' A`��� O BODILY INJURY SCHEDULED AUTOS (Per person) $ HIRED AUTOS gA .Mu�yX BODILY INJURY NON-OWNED AUTOS l i� (Per accident) $ PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY: AGG $ EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR F1 CLAIMS MADE AGGREGATE $ DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND 172032902 11/01/2003 10/01/2004 1 WC STATU- OTH- EMPLOYERS'LIABILITY I ER A ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED? E.L.DISEASE-EA EMPLOYEE $ 1,000,000 If yes,describe under SPECIAL PROVISIONS below E.L.DISEASE-POLICY LIMIT $ 1,000,000 OTHER DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS Evidence of Workers' Compensation Insurance except 10 day notice of cancellation for non-payment of premium RTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL City of Huntington Beach *30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Administrative Services BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 2000 Main Street, OF ANY KIND UPON THE INSURER,ITS AGENTS OR REPRESENTATIVES. Huntington Beach , CA 92648 AUTHORIZED REPRESENTATIVE ACORD 25(2001/08) ©ACORD CORPORATION 1988 s N WAIVER INDEMNIFICATION INSURANCE AND INDEMNIFICA O MODIFI CATION REQUEST RECEIVED 1. Requested by: Bill McReynolds, Administrative Services MAY 1 8 2004 2. Date: May 17, 2004 �;ityot Huntington Beach City Attorney's f3fficc 3. Name of contractor/permittee: Brad Wilkes (DBA: PRM Group) 4. Description of work to be performed: Preparing a cost allocation plan and user fee study 5. Value and length of contract: $100 000: twenty-two (22) weeks (06/08/04 - 10/22/04) 6. Waiver/modification request: $1 000 deductible/general liability and cancellation notice 7. Reason for request and why it should be granted: Unable to comply with the city's zero deductible and cancellation clause wording requirement 8. Identify the risks to the City in approving this waiver/modification: None. —19 Depa nt Head ignature Date: 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 and the City Attorneys Office disagree, 1. Risk Management / (proved El Denied Signature Date 2. V City Attorney's Office pproved ❑ 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 forapproval. Once the contract has been approved, this form is to be filed with the Risk Management Division of Administrative Services RCA ROUTING SHEET INITIATING DEPARTMENT: ADMINISTRATIVE SERVICES SUBJECT: SELECTION OF COST ALLOCATION PLAN AND USER FEE STUDY CONSULTANT COUNCIL MEETING DATE: June 7, 2004 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over$5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FQR MISSING ATTACHMENTS REVIEWED RETURNED FOR RaED Administrative Staff L4`f,mm_ Assistant City Administrator(initial) City Administrator(initial) ( `) City Clerk ( } EXPLANATION FOR RETURN OF ITEM: Only)(Below Space For City Cierk's Use RCA Author: William McReynolds �� °.. CUT REQUEST FOR ACTION MEETING DATE: June 7, 2004 DEPARTMENT ID NUMBER: AS-04-015 Comprehensive User Fee And Rate Study • The,.,consultant shall. conduct a c:omplrehensive review of the city. .existing.fees, rates, and charges structure with the goal of establishing an objectively based fee and rate structure that meets the needs of the city and is consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to, Proposition 218. • A review of the documentation supporting the current fee and rate structures for all departments and services is necessary. Further, in utilizing the Cost Allocation Model developed as part of this project, calculation of the costs of providing current levels of City services is required as part of this project. A survey comparison of rates and fees with similar cities, for information purposes only, is also requested. • The consultant shall meet with all departments to understand all business processes. The consultant shall recommend and help direct the calculation procedures to meet all current state laws. • Prepare and .deliver. presentations . designed to .:facilitate. the :understanding-of.: Comprehensive`User.Fee and.Fate Study and its t pllcatlons to the City Council of City of Huntington Beach. • Draft Comprehensive User Fee and Rate Study and participate in the presentation to select City staff and City Council. Collect and document comments and concerns from staff and Council members and assist in preparing responses. Cost Allocation Plan and User Fee Study Consultant Selection On January 12, 2004 the city issued a Request for Qualifications (RFQ) to Cost Allocation Plan and User Fee Study consultants. The city received-responses to its RFQ from the following firms: 1. Public Resources Management Group. P.... 2 Maximus, 3. MuniFinancial 4. CBIZ 5. Revenue & Cost Specialists, LLC 6. David Taussig &Associates, Inc. After reviewing the responses to the RFQ, Public Resources Management Group, Maximus, and MuniFinancial were invited to participate in interviews with the Director of Administrative Services, Director of Building & Safety, the Finance Officer, a Deputy City Attorney, the Deputy Director of Public Works, and the Planning Manager. The interview panel voted to recommend Public Resources Management Group because of their extensive experience in assisting similar agencies with cost allocation plans and user fee studies. HARCXMCost Agoca4on and User Fee Consulant RCA.doc 51191200410:11 AM 3 CITY OF HUNTINGTON . BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: A/A TO: (_' F3 A6antxlT ATTENTION:1. Name d ,d DEPARTMENT: strP4E1//L4E CA REGARDING: City)state,Zip See Attached Action Agenda Item . Date of Approval 0 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: ity Clerk Attachments: Action Agenda Page Agreement Bonds Insurance l RCA Deed Other Nax4 RCA Agreement Insurance Other a e• artrnent RCA Agreement Insurance Other - I 7— ✓ Narne artrrtent RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other gAbIlowup/letters/coverltr.doc (Telephone:714-536-5227)