HomeMy WebLinkAboutA50-04Contract Number : 04F-196
AGREEMENT TO PROVID E
PROFESSIONAL CONSULTING SERVICE S
TO THE CITY OF SAN LUIS OBISP O
THIS AGREEMENT, entered into this ~ (th day of A u.G 0ST ,2004, by and
between MAXIMUS, Incorporated (hereinafter "Consultant") and the City of San Luis Obisp o
(hereinafter "City"),
WHEREAS, Article XIIIB of the California State Constitution provides that local agencies ma y
recover costs associated with carrying out programs mandated by the State of California; an d
WHEREAS, City desires to maximize its reimbursement for costs incurred in carrying out Stat e
mandated programs, and has determined that engaging Consultant to assist in the mandated cos t
claim preparation process is the most economical and cost effective means for preparing City's
state mandated cost claims ; and
WHEREAS, Consultant is staffed with personnel knowledgeable and experienced in determining .
the costs of governmental programs and in the submission of cost claims to the State o f
California ; and
WHEREAS, City desires to engage Consultant to assist in developing, submitting, an d
negotiating cost claims pertaining to state mandated programs .
NOW, THEREFORE, the parties hereto mutually agree as follows :
(1)
Engagement.City agrees to engage Consultant and Consultant hereby agrees to perfor m
the following services .
(2)
Scope of Services .Consultant shall perform, and carry out in a professional manner th e
following services subject to the provisions of Section (8) below .
A.Prepare and submit cost claims pursuant to the Controller's 2004 annual claimin g
instructions that require claims to be submitted to the State by January 15, 2005 .
B.Prepare and submit other new or first-time cost claims pursuant to the Controller's
claiming instructions which are issued in accordance with parameters an d
guidelines received from the Commission on State Mandates and mailed to loca l
agencies during the 2004-2005 fiscal year . For the purposes of this Agreement ,
claims covered under this section shall include all claiming instructions issue d
with due dates other than January 15, 2005 .
C.Monitor the general payment status of all claims submitted on behalf of City
pursuant to this Agreement .
City of San Luis Obispo
- 1 -
May 19, 2004
4YO—0ti
Contract Number : 04F-19 6
D . Provide advice to the City regarding questions associated with any claims filed b y
Consultant from the State Controller's office . Test claims and incorrect reductio n
claims are not covered under this Agreement .
Cost claims submitted by Consultant may consist of both direct and indirect costs .
Consultant may either utilize the ten percent (10%) indirect cost rate allowed by the Stat e
Controller or calculate a higher rate if City records support such a calculation .
Consultant is not required to prepare a central service cost allocation plan or departmenta l
indirect cost rate proposals for City .
(3)Provision of Services .Consultant shall commence, carry on, and complete the service s
with all practicable dispatch, in a sound, economical, and efficient manner, in accordanc e
with the provisions herein and all applicable laws . In providing services, Consultant shal l
take such steps as are appropriate to ensure that the work involved is properl y
coordinated with related work being carried on by City .
(4)Personnel.Consultant represents that it has, or will secure at its own expense, al l
personnel required in performing the services under this Agreement . All of the service s
required hereunder will be performed by Consultant or under its supervision, and al l
personnel engaged in the work shall be fully qualified to perform the services describe d
herein .
(5)Term of Agreement .This Agreement shall become effective on July 1,2004,and shal l
continue in full force and effect until September 30, 2005 .
(6)Time of Performance .The services to be performed hereunder by Consultant shall b e
undertaken and completed in such sequence as to assure their expeditious completion i n
order to best carry out the purposes of this Agreement . All claim filing services required
hereunder shall be completed by the required date for each specific claim . Provide d
however, Consultant shall not be liable for delays in performance that are caused i n
whole or in part by City, third parties over which Consultant does not have the legal right
to control or forces de majeure .
(7)Costs, Method of Compensation, and Billing .For all of the above services provided ,
section (2), the City agrees to pay Consultant compensation in a fixed fee in the amoun t
of eight thousand nine hundred dollars ($ 8,900). The Consultant will render to the City
invoice(s) for the fixed fee specified herein, with payment due on or before July 31,2005 .
Invoices unpaid sixty (60) days after July 31,2005,will bear interest at the rate of 1% pe r
month .
(8)Waiver of Submission of Claim(s) Pursuant to Section (2)A & B .Notwithstanding an y
other provisions of this Agreement, the submission of claims pursuant to Section (2)A
and B may be waived as set forth below . Upon waiver exercised by either party, City
shall pay Consultant for all work performed up to and until the effective date of waiver i n
an amount not to exceed the maximum dollar amount indicated in Section (7).
City of San Luis Obispo
May 19, 2004
Contract Number : 04F-196
A.At City Option .At the sole discretion of City, City may instruct Consultant to no t
file a specific claim or claims pursuant to a specific State claiming instruction . Such
instruction must be in writing and provided to Consultant at least thirty (30) days prior to
the due date of the claim . The effective date of City's waiver shall be the date Consultan t
receives City's written instruction .
B.At Consultant Option.At the sole discretion of Consultant, Consultant may notify
City of its intention to not pursue a specific claim and the reasons therefore . Such
notification must be in writing and provided to City not less than thirty (30) days prior t o
the due date of the claim . The effective date of Consultant's waiver shall be the dat e
Consultant mails its notification to City . Should Consultant not so notify City, City ma y
expect Consultant to pursue the claim if it is above the minimum limit set by the State .
(9)Services and Materials to be Furnished by City.Consultant shall provide guidance t o
City in determining the data required for claims submission . Consultant shall assume al l
data so provided is correct . Consultant shall make its best effort to file claims timely .
Consultant shall not be liable for claims that cannot be filed as a result of inadequate data,
or data that is provided in an untimely manner.
For purposes of this Agreement, data that is requested by Consultant must be provided
within three (3) weeks of the request, or three (3) weeks prior to the filing deadline ,
whichever comes first, to be deemed to have been received in a timely manner .
(10)Records and Inspections .Consultant shall maintain full and accurate records with respec t
to all matters covered under this Agreement in accordance to State law . During such
period, City shall have free access at all proper times to such records, and the right t o
examine and audit the same and to make transcripts therefrom . City shall provide thirt y
(30) days written notice of its intent to inspect or audit any such records and shall conduc t
such inspection or audit only during Consultants normal business hours . Any Cit y
employee, consultant, subcontractor or agent who may have access to such records shal l
execute a non-disclosure agreement prior to be granted such access .
(11)Third Party Obligations .City and Consultant are the only parties to this Agreement an d
are the only parties entitled to enforce its terms . Nothing in this Agreement gives, i s
intended to give, or shall be construed to give or provide, any right or benefit, whethe r
directly or indirectly or otherwise, to third persons .
(12)Copyright for Consultant's Proprietary Software .City acknowledges that th e
deliverables provided by Consultant to City are generated by Consultant's proprietar y
software . Nothing contained herein is intended nor shall it be construed to requir e
Consultant to provide such software to City . City agrees that all ownership rights to th e
software lie with Consultant . City may use the deliverables for and on behalf of it s
operation .
(13)When Rights and Remedies not Waived .In no event shall the making by City of an y
payment to Consultant constitute or be construed as a waiver by City of any breach o f
City of San Luis Obispo
May 19, 2004
Contract Number : 04F-196
covenant, or any default which may then exist on the part of Consultant, and the makin g
of any such payment by City while any such breach or default shall exist in no wa y
impair or prejudice any right or remedy available to City in respect to such breach o r
default .
(14)Consultant Liability if Audited .Consultant will assume all financial and statistica l
information provided to Consultant by City employees or representatives is accurate an d
complete . If audited, Consultant shall make workpapers and other records available t o
the State auditors . Any subsequent disallowance of funds paid to City under the claim(s )
for whatever reason is the sole responsibility of City . However, if requested by City ,
Consultant shall provide reasonable assistance to the City in defending claims at the des k
audit level if an audit results in a disallowance of at least ten percent (10%). Reductions
of less than ten percent (10%) shall not be contested by Consultant . Nothing in thi s
section or any part of this Agreement shall be construed to include Incorrect Reductio n
Claims preparation .
(15)Independent Contractor.The parties intend that Consultant, in performing the service s
specified in this Agreement shall act as an independent contractor and shall have ful l
control of the work and the manner in which it is performed . Consultant and Consultant's
employees are not to be considered agents or employees of City for any purpose .
(16)Insurance .Consultant shall maintain appropriate general liability insurance, workers '
compensation insurance, automobile insurance, and professional liability insurance .
City insurance requirements attached .
(17)Limitation of Liability .In no event shall Consultant be liable for indirect, special ,
consequential or punitive damages . Consultant's liability to the City, for any reaso n
whatsoever and whether foreseeable or not, shall not exceed the total amount paid t o
Consultant under this Agreement .
(18)Changes .Either party may, from time to time, require changes in the scope of services t o
be performed hereunder . Such changes, which are mutually agreed upon by and betwee n
the parties, shall be incorporated in a written and mutually executed amendment to thi s
Agreement.
(19)Notices .Any notices, bills, invoices, or reports required by this Agreement shall be
sufficient if sent by the parties in the United States mail, postage paid, to the addres s
noted below :
Contact Name : Carolyn Dominguez Title :Finance Manager
Address : 990 Palm Street, Sae Luis Obispo, CA 93401
Phone#: (805) 781-7127 Fax #:(805) 781-746 8
Email Address : cdominguez@slocity .org
City of San Luis Obispo May 19, 2004
Contract Number : 04F-19 6
MAXIMUS, Incorporate d
4320 Auburn Blvd ., Suite 200 0
Sacramento, CA 9584 1
(916) 485-8102
Fax : (916) 485-011 1
Such notice shall be deemed delivered five (5) days after deposit in the U .S . mailbox .
(20)Severability.Should any part, term, portion, section or provision of this Agreement b e
decided finally to be in conflict with any law of the United States or the State o f
California, or otherwise be unenforceable or ineffectual, the remaining parts, terms ,
portions, sections or provisions shall be deemed severable and shall remain in full forc e
and effect .
(21)Matters to be Disregarded.The titles of the sections, subsections, and paragraphs set
forth in this Agreement are inserted for convenience of reference only and shall b e
disregarded in construing or interpreting any of the provisions of this Agreement .
(22)Completeness of Agreement .This Agreement and any additional or supplementar y
document or documents incorporated herein by specific reference contain all the term s
and conditions agreed upon by the parties hereto, and no other agreements, oral o r
otherwise, regarding the subject matter of this Agreement or any part thereof shall hav e
any validity or bind any of the parties hereto .
(23)Agreement Receipt .This Agreement must be signed and returned to Consultant b y
August 5, 2004 . If executed Agreement is not received by that date, Consultant canno t
warrant that claims will be submitted on a timely basis .
IN WITNESS WHEREOF, the City and the Consultant have executed this Agreement as of th e
date first written below .
LO-144--d b"(City Official)
Title :City Administrative Office r
ATTEST :
Date aQ
MAXIMUS, Incorporate d
APPROVED AS TO FORM:
Date :May 19, 2004
P.LOWELL
(ty Attorney
City of San Luis Obispo
May 19, 2004
INSURANCE REQUIREMENT S
Consultant Services
The Contractor shall procure and maintain for the duration of the contract insurance against claims fo r
injuries to persons or damages to property which may arise from or in connection with the performanc e
of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors .
Minimum Scope of Insurance.Coverage shall be at least as broad as :
1.Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2.Insurance Services Office form number CA 0001 (Ed . 1/87) covering Automobile Liability, cod e
1 (any auto).
3.Workers' Compensation insurance as required by the State of California and Employer's Liabilit y
Insurance .
4.Errors and Omissions Liability insurance as appropriate to the consultant's profession .
Minimum Limits of Insurance .Contractor shall maintain limits no less than :
1.General Liability : $1,000,000 per occurrence for bodily injury, personal injury and propert y
damage . If Commercial General Liability or other form with a general aggregate limit is used ,
either the general aggregate limit shall apply separately to this project/location or the genera l
aggregate limit shall be twice the required occurrence limit .
2.Automobile Liability : $1,000,000 per accident for bodily injury and property damage .
3.Employer's Liability : $1,000,000 per accident for bodily injury or disease .
4.Errors and Omissions Liability: $1,000,000 per occurrence .
Deductibles and Self-Insured Retentions .Any deductibles or self-insured retentions must be declare d
to and approved by the City . At the option of the City, either : the insurer shall reduce or eliminate suc h
deductibles or self-insured retentions as respects the City, its officers, officials, employees an d
volunteers ; or the Contractor shall procure a bond guaranteeing payment of losses and relate d
investigations, claim administration and defense expenses .
Other Insurance Provisions .The general liability and automobile liability policies are to contain, or b e
endorsed to contain, the following provisions :
1.The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects : liability arising out of activities performed by or on behalf of the Contractor ; products
and completed operations of the Contractor ; premises owned, occupied or used by th e
Contractor ; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage
shall contain no special limitations on the scope of protection afforded to the City, its officers ,
official, employees, agents or volunteers .
2.For any claims related to this project, the Contractor's insurance coverage shall be primar y
insurance as respects the City, its officers, officials, employees, agents and volunteers . Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents o r
volunteers shall be excess of the Contractor's insurance and shall not contribute with it .
3.
The Contractor's insurance shall apply separately to each insured against whom claim is made o r
suit is brought, except with respect to the limits of the insurer's liability .
4.Each insurance policy required by this clause shall be endorsed to state that coverage shall not b e
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirt y
(30) days' prior written notice by certified mail, return receipt requested, has been given to th e
City .
Acceptability of Insurers .Insurance is to be placed with insurers with a current A .M . Best's rating o f
no less than A :Vll .
Verification of Coverage .Contractor shall furnish the City with a certificate of insurance showin g
maintenance of the required insurance coverage . Original endorsements effecting general liability an d
automobile liability coverage required by this clause must also be provided . The endorsements are to b e
signed by a person authorized by that insurer to bind coverage on its behalf . All endorsements are to b e
received and approved by the City before work commences .
CAO REPORT TRANSMITTA L
This form should be completed in legible handwriting .
PURPOSE (Check one-see reverse side for required documentation )
Authorize Invitation for Bids (IFB) or Request for Proposals (RFP )
Recommended Vendor
Award Contract
'Maximus Inc .
Date Rcecive d
7-/a-b4l-Admits Use Only -
Are there any special award c ircumstances ?
If yes, a CAO Report describing them should be attached
Yes No n
Other Action Requiring CAO Approva l
See reverse side for descriptio n
* All formal IFB or RFP packages must be assigned a specification number by Finance before submitting this form .
REQUEST SUMMARY
APPROVALS (Check a s 'ro riate box if review is re ' aired-see
Routing will occur in the order listed unless otherwise noted by the initiating department.
REVIEWER COMMENTS Attach additional pages as necessar y
DISTRIBUTION AFTER CAO APPROVA L
In the case of authorization to invite bids (request proposals) or to award a contract, Administration will return the original package t o
the initiating department and send a copy of the report to Finance (and to Public Works if it is a construction related project) after CA O
approval. For all other CAO Reports, the initiating department should indicate below the appropriate distribution after CAO approval :
CAO REPORT
August 6, 2004
FROM:
Bill Statler : Director of Finance & Information Technolog y
Prepared by : Carolyn Dominguez, Finance Manager
C1
nO '
SUBJECT : SB90 Claiming Services Contract for 2004-05
RECOMMENDATIO N
Award a one-year contract for SB90 claiming services to Maximus Inc .
DISCUSSIO N
Even though the State has deferred SB90 reimbursement to agencies, we recommend continuing t o
file our claims annually . The City has executed annual agreements with Maximus Inc . to prepare
the SB90 claiming documents since August 1996 . Staff has been extremely pleased with the qualit y
of service provided by Maximus since then . In addition, they have been very successful in workin g
with all the departments to gather the detailed information required to file a timely SB90 claim fo r
reimbursement.
Because of the vendor's familiarity with the City departmental operations and services, w e
recommend retaining Maximus rather than conducting a Request for Proposals at this time .
Why continue to file if the State has deferred reimbursements ?
Staff conducted a survey of other agencies throughout the State using the CSMFO weblist . Of th e
41 agencies responding, only 3 have decided to suspend filing SB90 claims . The collective wisdo m
is that the State will indeed repay the local agencies, and having claims filed timely to give th e
legislators an order of magnitude idea of how much they need to appropriate in future budgets i s
critical . If agencies suspend filing, reimbursement may appear to be unimportant to the loca l
claimants . Also, once the State does start reimbursing, if an agency files a late claim, a 10% penalt y
for late filing is imposed .
A recent article in the CSMFO monthly newsletter referred to our survey and recommended tha t
agencies not suspend filing . Of course the article was written by a consultant who provides thi s
service .
FISCAL IMPAC T
In the past, Maximus' services were priced using a two-tiered structure . We paid a fixed fee fo r
claims filed relating to existing mandates . For any new or first-time state mandated cos t
reimbursement claims, we paid a contingent fee of 30% with a maximum limit . For 2003-04 th e
total anticipated contract fees to Maximus was $9,900 . Because the State has suspende d
reimbursements, like the local agencies, Maximus hasn't been paid for their services related to ne w
or first-time mandates .
For 2004-05 Maximus is proposing a fixed fee of $8,900 and no contingent component in order t o
recover their costs for preparing City claims . The attached worksheet provides some history of
CAO Report : SB90 Claiming Services 2004-05
Page 2
payments to Maximus . Because of State suspensions (and the nature of the claiming process, w e
have never paid Maximus the full amount of their contract . When the State starts reimbursing th e
City, Maximus has the potential to receive the difference between what we actually paid them an d
the contract maximums in prior years (because we have outstanding claims for all those years),If w e
had paid Maximus the full $9,900 in 2003-04, the proposed 2004-05 fee would represent a 10 %
reduction in fees .
The 2004-05 budget for the Accounting program includes adequate funding to award this contrac t
for SB90 claiming services .
CONCLUSION
The City has received a consistent level of professional service from DMG for state mandate d
claims filing service . We recommend continuing this contract .
ALTERNATIVES
1.Suspend filing claims .Until the State begins reimbursing local agencies, the City coul d
suspend filing timely claims. We do not recommend this approach . Not only would a 10 %
penalty be imposed for late filing, but the claims data gathering process may not go smoothl y
because of the passage of time . Claims information might not be readily available . The
overwhelming majority of agencies responding to a City of San Luis Obispo survey believe it i s
prudent to continue to file timely claims .
2.Prepare claims in-house .With the limited resources in Finance and other City departments ,
trying to prepare the claims internally would not be a good use of staff time . Using a
knowledgeable consultant who is current on the changes in the mandate regulations is a mor e
efficient use of City resources .
ATTACHMENT S
Agreement to Provide Mandated Cost Claiming Service s
Analysis of Proposed Fee 2004-05
CAO Report : SB90 Claiming Services 2004-05
Page 3
SBO9 Claiming Services
Fee Analysis
Fixed Fee
Contingent
Fee
Contrac t
Maximum
Actual
Pai d
2000-01
4,550
3,950
8,500
4,08 6
2001-02
4,800
4,200
9,000
7,45 7
Increase 250
250
50 0
% increase 5 .5%
6 .3%
5 .9 %
2002-03
5,050
4,400
9,450
6,07 7
Increase/prior year 250
200
45 0
increase 5 .2%
4 .8%
5 .0 %
2003-04
5,300
4,600
9,900
5,300
Increase/prior year 250
200
450
% increase 5 .0%
4 .5%
4 .8%
2004-05
8,900
0
8,900
Budgeted $10,30 0
Increase (decrease)/prior year (1,000)
% increase (decrease)-10 .1%