CC150209_Item 3B5

Transcription

CC150209_Item 3B5

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City Council Meeting
02-09-IS
Council Agenda Report
Item
3.B.5.
'
0b+'ated MaK~'.%
To:
Mayor Sibert and the Honorable Members of the City Council
Prepared by:
Reva Feldman, Assistant City
Approved by:
Jim Thorsen, City Manage
Date prepared:
January 26, 2015
Subject:
Professional Services Agreement with ClearSource Financial
Consulting
ger
Meeting date: February 9, 2015
RECOMMENDED ACTION: Authorize the City Manager to execute a
Professional Services Agreement with ClearSource Financial Consulting for a
Comprehensive Fee Study and Cost Allocation Plan.
FISCAL IMPACT: Funding for this Agreement was included in the Adopted
Budget for Fiscal Year 2014-2015 in Account No. 100-7054-5100-02 (Finance Fee
Study).
DISCUSSION:
On November 10, 2014, the City issued a Request for Proposal
(RFP)for a Comprehensive Fee Study and Cost Allocation Plan. The fee study will
include a detailed review of the City's current fee schedule to determine if the costs
accurately reflect the expenditures to provide the service. In addition, the study will
evaluate whether the fee schedule can be reduced in complexity to ensure ease of
use. The City last conducted a fee schedule in 2002 and therefore, it is anticipated
that there will be many changes.
The RFP was advertised in the local newspaper, posted to the City website and
sent directly to firms that provide such services.
The City received five proposals in response to the RFP from the following firms:
• ClearSource Financial Consulting
• Matrix
• Maximus
Page 1 of 2
Agenda Item #3.B.5.
• MGT
• NBS
Staff has reviewed all of the proposals and recommends that ClearSource Financial
Consulting be awarded the agreement to develop a Comprehensive Fee Study and
Cost Allocation Plan. ClearSource Financial Consulting was one of the smaller
firms to respond to the RFP and can provide an individualized approach to the
project. The project will entail a great deal of City staff time and ClearSource
Financial Consulting has indicated that they can be flexible in the timing of the
project in order to accommodate the City's schedule. The firm recently completed a
similar project for the City of Ventura. They have experience in managing complex
fee study projects and have received excellent recommendations from prior clients.
Staff recommends entering into arr agreement with ClearSource Financial
Consulting in the amount of $26,400 for a Comprehensive Fee Study and Cost
Allocation Plan.
ATTACHMENTS: Professional Services Agreement with ClearSource Financial
Consulting
Page 2 of 2
Agenda Item #3.B.5.
AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement is made and entered into as of February 9, 2015 by and between the City
of Malibu (hereinafter refereed to as the "City"), and C1earSource Financial Consulting
(hereinafter referred to as the "Consultant").
The City and the Consultant agree as follows:
RECITALS
A.
The City does not have the personnel able and/or available to perform the services
required under this Ageement.
B.
The City desires to contract out for consulting services for aComprehensive- Fee
Study and Cost Allocation Plan.
C.
The Consultant warrants to the City that it has the qualiftcations, experience and
facilities to perform properly and timely the services under this Agreement.
D.
The City desires to contract with the Consultant to perform the services as
described in Exhibit A ofthis Agreement.
NOW,THEREFORE,the City and the Consultant agree as follows:
1.0
SCOPE OF THE CONSULTANT'S SERVICES. T'he Consultant agrees to
provide the services and perform the tasks set forth in the Scope of Work, attached to and made
part of this Agreement. The Scope of Work may be amended from time to time by way of a
written directive from the City.
2.0
TERM OF AGREEMENT. This Agreement will become effective on February
9, 2015, and will remain in effect for a period of two years from said date unless otherwise
expressly extended and agreed to by both parties or terminated by either party as provided
herein.
3.0
CITY AGENT. T'he City Manager, or his designee, for the purposes of this
Agreement, is the agent for the City; whenever approval or authorization is required, Consultant
understands that the City Manager, or his designee, has the authority to provide that approval or
authorization.
4.0
COMPENSATION FOR SERVICES. The City shall pay the Consultant for its
professional services rendered and costs incurred pursuant to this Agreement in accordance with
the Scope of Work's fee and cost schedule. The cost of services shall riot exceed $26,400. No
additional compensation shall be paid for any other expenses incurred, unless first approved by
the City Manager, or his designee.
Agreement for Professional Services
C1earSource Financial Consulting
Page 2 of7
4.1
The Consultant shall submit to the City, by no later than the 10~' day of
each month, its bill for services itemizing the fees and costs incurred during the previous month.
The City shall pay the Consultant all uncontested amounts set forth in the Consultant's bill within
30 days after it is received.
5.0
CONFLICT OF INTEREST. The Consultant represents that it presently has no
interest and shall not acquire any interest, direct or indirect, in any real property. located in the
City which may be affected by the services to be performed by the Consultant under this
Agreement. The Consultant further represents that in performance ofthis Agreement, no person
having any such interest shall be employed by it.
5.1
The Consultant represents that no City employee or official has a material
financial interest in the Consultant's business. During the term of this Agreement and/or as a
result of being awarded this contract, the Consultant shall not offer, encourage or accept any
financial interest in the Consultant's business by any. City employee or official..
5.2
If a portion of the Consultant's services called for under this Agreement
shall ultimately be paid for by reimbursement from and through an agreement with a developer
of any land within the City or with a City franchisee, the Consultant warrants that it has not
performed any work for such developer/franchisee within the last 12 months, and shall not
negotiate, offer or accept any contract or request to perform services for that identified
developer/franchisee during the term ofthis Agreement.
6.0
GENERAL TERMS AND CONDITIONS.
6.1
Termination. Either the City Manager or the Consultant may terminate
this Agreement, without cause, by giving the other party ten (10) days written notice of such
termination and the effective date thereof.
6.1.1 In the event of such termination, all finished or unfinished
documents, reports, photographs, films, charts, data, studies, surveys, drawings, models, maps, or
other documentation prepared by or in the possession of the Consultant under this Agreement
shall be returned to the City. Ifthe City terminates this Agreement without cause, the Consultant
shall prepare and shall be entitled to receive compensation pursuant to a close-out bill for
services rendered and fees incurred pursuant to this Agreement through the notice oftermination.
If the Consultant terminates this Agreement without cause, the Consultant shall be paid only for
those services completed in a manner satisfactory to the City.
6.1.2 If the Consultant or the City fail to fulfill in a timely and proper
manner its obligations under this Agreement, or if the Consultant or the City violate any of the
covenants, agreements, or stipulations of this Agreement, the Consultant or the City shall have
the right, to terminate this Agreement by giving written notice to the other party of such
termination and specifying the effective date of such termination. The Consultant shall be
entitled to receive compensation in accordance with the terms of this Agreement for any work
satisfactorily completed hereunder. Notwithstanding the foregoing, the Consultants shall not be
relieved of liability for damage sustained by virtue of any breach of this Agreement and any
payments due under this Agreement may be withheld to off-set anticipated damages.
ClearSource Financial Consulting
Page 3 of7
6.2
Non-Assignability. The Consultant shall not assign or transfer any
interest in this Agreement without the express prior written consent ofthe City.
6.3 'Non-Discrimination. The Consultant shall not discriminate as to race, .
creed, gender, color, national origin or sexual orientation in the performance of its services and
duties pursuant to this Agreement, and will comply with all applicable laws, ordinances and
codes ofthe Federal, State, CounTy and City governments:
6.4
Insurance. The Consultant shall submit to the City certificates indicating
compliance with the following minimum insurance requirements no less than one(1)day prior to
beginning of performance under this Agreement:
(a)
Workers Compensation Insurance as required by law. The
Consultant shall require all subcontractors similarly to provide such compensation insurance for
their respective employees.
(b)
Comprehensive general ~ and automobile liability insurance
protecting the Consultant in amounts not less than $1,000,000 for personal injury to any one
person, $1,000,000 for injuries arising out of-one occurrence, and $500,000 for property damages
or a combined single limit of$1,000,000.- Each such policy ofinsurance .shall:
1)
Be issued by a financially responsible insurance company
or companies admitted and authorized to do business in the State of California or which is
approved in writing by City.
2)
Name and list as additional insured the City, its officers and
3)
Specify its acts as primary insurance.
employees.
4)
Contain a clause substantially in the following words: "It is
hereby understood and agreed that this policy shall not be canceled nor materially changed
except upon thirty.(30) days prior written notice to the City of such cancellation or material
change."
5)
Cover the operations of the Consultant pursuant to the
terms ofthis Agreement.
6.5
Indemnification. Consultant' shall indemnify, defend with counsel
approved by City, and hold harmless City, its- officers, officials, employees and volunteers from
and against all liability, loss, damage, expense, cost (including without limitation reasonable
attorneys fees, expert fees and all other costs and fees of litigation) of every nature arising out of
or in connection with Consultant's performance of work hereunder or its failure to comply with
any of its obligations contained in this Agreement, regardless of City's passive negligence, but
excepting such loss or damage which is caused by the sole active negligence or willful
misconduct of the City. Should City in its sole discretion find Consultant's legal counsel
unacceptable, then Consultant shall reimburse the City its costs of defense, including without
Page 4 of7
limitation reasonable attorneys fees, expert fees and all other costs and fees of litigation. The
Consultant shall promptly pay any final judgment rendered against the City (and its officers,
officials, employees and volunteers) covered by this indemnity obligation. It is expressly
understood and agreed that the foregoing provisions are intended to be as broad and inclusive as
is permitted by the law ofthe State of California and will survive termination ofthis Agreement.
6.6
Compliance with Applicable Law. The Consultant and the City shall
comply with all applicable laws, ordinances and codes of the Federal, State, County and City.
governments.
6.7
Independent Contractor. This Agreement is by and between the City
and the Consultant and is not intended, and shall not be construed, to create the relationship of
agency, servant, employee, partnership,joint venture or association, as between the City and the
Consultant.
6.7.1. The Consultant shall be an independent contractor, and shall have
no power to incur any debt or obligation for or on behalf ofthe City. Neither the City nor any of
its officers or employees shall have any control over the conduct ofthe Consultant, or any ofthe
Consultant's employees, except as herein set forth, and the Consultant expressly warrants- not to,
at any time or in any manner, represent that it, or any of its agents, servants or employees are in
any manner employees ofthe City, it being distinctly understood that the Consultant is and shall
at all times remain to the City a wholly independent contractor and the Consultant's obligations
to the City are solely such as are prescribed by this Ageement.
6.8
Copyright. No reports, maps or other documents produced in whole or in
part under this Agreement shall be the subject of an application for copyright by or on behalf of
the Consultant.
6.9
Legal Construction.
(a)
This Agreement is made and entered into in the State of California
and shall in all respects be interpreted, enforced and governed under the laws of the State of
California.
(b)
This Agreement shall be construed without regard to the identity of
the persons who drafted its various provisions..Each and every provision ofthis Agreement shall
be construed as though each of the parties participated equally in the drafting of same, and any
rule of construction that a document is to be construed against the drafting party shall not be
applicable to this Agreement.
(c)
The article and section, captions and headings herein have been
inserted for convenience only, and shall not be considered or referred to in resolving questions of
interpretation or construction.
(d)
Whenever in this Ageement the context may so require, the
masculine gender shall be deemed to refer to and include the feminine and neuter, and the
singular shall refer to and include the plural.
Page 5 of7
6.10 Counterparts. This Agreement may be executed in counterparts and as
so executed shall constitute an agreement which shall be binding upon all parties hereto.
or
6.11- Final Payment Acceptance Constitutes Release. The acceptance by the
Consultant of the final payment made under this Agreement shall operate as and be a release of
the City from all claims and liabilities for compensation to the Consultant for anything done,
furnished or relating to the Consultant's work or services. Acceptance of payment shall be any
negotiation of the CiTy's check or the failure to make a written extra compensation claim within
ten (IO) calendar days of the receipt of that check. However, approval or payment by the City
shall not constitute, nor be deemed, a release ofthe responsibility and liability ofthe Consultant,
its employees, sub-consultants and agents for the accuracy .and competency of the information
provided and/or work performed; nor shall such approval or payment be deemed to be an
assumption of such responsibility
liability by the City for any defect or error in the work
prepared by the Consultant, its employees, sub-consultants and agents.
6.12 Corrections. In addition- to the above indemnification obligations, the
Consultant shall correct, at its expense, all errors in the work which may be disclosed during the
City's review of the Consultant's report or plans. Should the Consultant fail to make such
correction in a reasonably timely manner, such correction shall be made by the City, and the cost
thereof shall be charged to the Consultant.
6.13 Files. All files ofthe Consultant pertaining to the City shall be and remain
the property of the City. The Consultant will control the physical location of such files during
the term of this Agreement and shall be entitled to retain copies ofsuch files upon termination of
this Agreement.
a
a
6.14 Waiver; Remedies Cumulative. Failure by a party to insist upon the
performance of any of the provisions of this Agreement by the other party, irrespective of the
length oftime for which such failure continues, shall not constitute waiver of such party's right
to demand compliance by such other party in the future. No waiver by a party of a default or
breach ofthe other party shall be effective or binding upon such party unless made in writing by
such party, and no such waiver shall be implied from any omissions by a party to take any action
with respect to such default or breach. No express written waiver of specified default or breach
shall affect any other default or breach, or cover any other period of time, other than any default
or breach and/or period of time specified. All of the remedies permitted or available to a party
under this Agreement, or at law or in equity, shall be cumulative and alternative, and invocation
of any such right or remedy shall not constitute a waiver or election of remedies with respect to
any other permitted or available right ofremedy.
6.15 Mitigation of Damages. In all such situations arising out of this
Agreement, the parties shall attempt to avoid and minimize the damages resulting from the
conduct ofthe other party.
6.16 Partial Invalidity. If any provision in this Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will
nevertheless continue in full force without being impaired or invalidated in any way.
Page 6 of7
6.17 Attorneys' Fees. The parties hereto acknowledge and agree that each will
bear his or its own costs, expenses and attorneys' fees arising out of and/or connected with the
negotiation, drafting and execution ofthe Agreement, and all matters arising out of or connected
therewith except that, in the event any action is brought by any party hereto to enforce this
Agreement, the prevailing party in such action shall be entitled to reasonable attorneys' fees and
costs in addition to all other reliefto which that party or those parties may be entitled.
6.18 Entire Agreement. This Agreement constitutes the whole agreement
between the City and the Consultant, and neither party has made any representations to the other
except as expressly contained herein. Neither party, in executing or performing this Ageement,
~is relying upon any statement or information not contained in this Agreement. Any changes or
modifications to this Agreement must be made in writing appropriately executed by both the City
and the Consultant.
6.19 Notices. Any notice required to be given hereunder shall be deemed to
have been given by depositing said notice in the United States mail, postage prepaid, and
addressed as follows:
CITY:
Jim Thorsen
City Manager
City of Malibu
23825 Stuart Ranch Road
Malibu, CA 90265-4861
TEL (310)456-2489 x 226
FAX(310)456-2760
CONSULTANT: Terry Madsen, MBA
President
C1earSource Financial Consulting
7960 B Soquel Drive #363
Aptos, CA 95003
TEL (831)288-0608
FAX(831)288-0718
6.20 Warranty of Authorized Signatories. Each of the signatories hereto
warrants and represents that he or she is competent and authorized to enter into this Agreement
on behalf ofthe party for whom he or she purports to sign.
7.0
GENERAL TERMS AND CONDITIONS. (City and Consultant initials
required at EITHER 7.1 or 7.2)
7.1
Disclosure Required. By their respective initials next to this paragraph, City and
Consultant hereby acknowledge that Consultant is a "consultant" for the purposes of the
California Political Reform Act because Consultant's duties would require him or her to make
one or more of the governmental. decisions set forth in Fair Political Practices Commission
Regulation 18701(a)(2) or otherwise serves in a staff capacity for which disclosure would
otherwise be required were Consultant employed by the City. Consultant hereby acknowledges
his or her assuming-office, annual, and leaving-office financial reporting obligations under the
California Political Reform Act and the. City's Conflict of Interest Code and agrees to comply
with those obligations at his or her expense. Prior to consultant commencing services hereunder,
the City's Manager shall prepare and deliver to consultant a memorandum detailing the extent of
Consultant's disclosure obligations in accordance with the City's Conflict ofInterest Code.
City Initials
Consultant Initials
01/28/2015
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SCOPE OF WORK AND.COST SCHEDiJLE
Proposal for Comprehensive Fee Study.
and Cost Allocation Plan
Ctear~0U1'Ce
Financial Consulting
cfearsourcefinancial.com
December 2014
Table of Contents
Cover Letter...................................................................................................................................................1
1.Organization, Credentials and Experience ................................................................................................2
2. Understanding of the Scope of Work........................................................................................................6
3. Professional Services Agreement............................................................................................................14
4. Compliance.........................................................................................................................:....................15
5. Litigation ..................................................................................................................................................16
6. References........:........................................................................................................................:.............17
7. Fees .........................................................................................................................................................18
8.Timeline...................................................................................................................................................19
C
learSource
Financial Consulting
December 16,2014
City of Malibu
Attn: Reva Feldman, Assistant City Manager
23825 Stuart Ranch Road
Malibu, CA 90265
To Ms. Feldman and Members of the Selection Committee:
Thank you for requesting this proposal for fee study and cost allocation plan services. I have thoroughly
reviewed the scope of work identified in the City's Request for Proposals and confirm that C1earSource
Financial Consulting ("ClearSource") is well-qualified to perform the full,scope of work.
Our commitment to Malibu...provide premier service, on-time, and on-budaef.
Premier Service
On-Time
On-Budget
We care about the details
4 months start-to-finish
Finish the project entire~V:
before issuing a bill
;:-
General Information
ClearSource is a California Corporation. No portion of this work will be subcontracted.
ClearSource has reviewed the insurance requirements and the sample contract.
Contact Information
Company Name: ClearSource Financial Consulting
Contact: Terry Madsen
Phone:(831)288-0608 ~ Fax:(831) 288-0718
Address: 7960 B Soquel Drive, #363 Aptos, CA 95003
Email: [email protected] ~ Web: clearsourcefinancial.com
am the President of ClearSource Financial Consulting. My signature binds ClearSource to the terms of
this. proposal-and confirms that this proposal shall remain valid for a period of60 calendar days from the
date of this submittal.
Sincerely,
`-1~-'VI~ ~---_
Terry Madsen, President
~
7960 B Soquel Drive,#353 Aptos, CA 95003
~
Phone: 831.288.0608
~
Fax: 831.288.0718
www.clearsou rcefinancial.com
1
1.Organization, Credentials and Experience
ClearSource has provided fee study and other financial consulting services to
Communities Providing
Premier Customer Service
Coastal Communities
City of La Ouini~a
Eity of Ventura
The "New "City of Bell
a
Comaanv Ownership and History
ClearSource Financial Consulting is a California corporation. ClearSource was founded in October, 2011
by Mr. Terry Madsen. Mr. Madsen owns 100% of the company. Prior to founding ClearSource, Mr.
Madsen was employed by the competing firm, NBS,from October, 2001 to October, 2011.
Number of Employees
ClearSource believes projects are completed faster, more accurately, and with a more positive client
experience when one, senior level consultant, is dedicated to completing all aspects of a project.
Consequently, ClearSource is staffed solely by Mr. Terry Madsen. See the Resume section
of this
proposal for details regarding Mr. Madsen's qualifications.
Contact Information
Company Name: ClearSource Financial Consulting
Contact: Terry Madsen
Phone:(831) 288-0605 ~ Fax:(831)288-0718
Address: 7960 B Soquel Drive,#363 Aptos,CA 95003
Email: [email protected] ~ Web: clearsourcefinancial.com
Services Provided
z
Re_
Terry Madsen, MBA
This project will be completed from start-to-finish by Mr. Terry Madsen: Mr. Madsen is the President
and Principal Consultant of ClearSource Financial Consulting. For 13 years, he has provided financial
consulting services exclusively to local government agencies.
In October, 2011 Mr. Madsen founded ClearSource Financial Consulting (ClearSource), a firm dedicated
to providing local government agencies with premier financial consulting services. From October, 2001
to October, 2011 Mr. Madsen was employed by the competing firm, NBS.
Mr. Madsen's depth of knowledge includes numerous service areas including indirect cost allocation
studies, internal service fund rate studies, user fee studies, water and wastewater rate studies, and
special financing district administration. During his career he has served the following agencies, among
others:
• Atherton
• Bell "The New Bell"
Chula Vista
• East Palo Alto
• Gustine
• Hesperia
• Indio
• La Habra Heights
• Laguna Woods
• La Quinta
• Long Beach
• Los Angeles
•
•
•
•
•
•
~
•
•
•
•
•
Napa
Oakdale
Oro Loma Sanitary District
Sacramento
Sacramento Regional Transit District
San Carlos
San Diego Metropolitan Transit System
Santa Paula
Sierra Madre
Taft
Union Sanitary District
Ventura
Mr. Madsen has worked closely with every level of the public body including property owners,
community organizations, council members, special commissions, agency managers, all members of the
agency finance team, directors of every agency department, management analysts, and the direct
service staff that are the primary contact points for members of the community, such as inspectors, plan
reviewers, operators, maintenance personnel, and records staff.
Mr. Madsen's experience in developing central service cost allocation models includes all phases of the
work, from project initiation, to completion and presentation of final findings. His efforts include data
gathering, conducting interviews with agency staff, model development, report preparation, and
presentation and delivery of cost allocation plan narratives. He has calculated cost allocation and
internal service fund charges for support service departments such as Board of Directors/City Council,
Agency Management and Administration, Clerk, Legal, Finance, Human Resources, Information
Technology, Fleet and Facilities Maintenance,Security, and Risk Management.
Mr. Madsen is a member of the California Society of Municipal Finance Officers and- the American Water
Works Association. He received his undergraduate degree (Cum Laude)from Cal Poly, San Luigi Obispo.
He was awarded a Bachelor of Science in Business Administration with a Finance Concentration and an
Economics Minor. He received his graduate degree from California State University, San Bernardino. He
was awarded a Master of Business Administration with an Entrepreneurship Concentration.
3
References
Reference No.1
Contact
Telephone Number
Email Address
Street Address
City, State, Zip Code
Staff Assigned to Project
Similar Services Provided
•
Mr. Chris Escobedo, Assistant to City Manager
{760)777-7000
[email protected]
78-495 Calle Tampico
La Quinta, CA 92253
Terry Madsen
Comprehensive Fee Study
Fee Schedule Update
Reference No.2
Contact
Telephone Number
Email Address
Street Address
Mr. Rudy Livingston, Assistant Finance Director
{805)654-7800
[email protected]
501 Poli Street
Ventura, CA 93002
Terry Madsen
Comprehensive Fee Study; Fee Schedule Update
Cost Allocation Plan
Reference No.3
Contact
Telephone Number
Email Address
Street Address
SimilarServices Provided.
:• :Mr. Josh Betta, Finance Director
(323)588-6211
[email protected]
6330 Pine Avenue
Bell, CA 90201
~ Terry Madsen
Community Services Fee Study
Cost Allocation Plan and Indirect Rate(QMB A-87 Compliant)
Project details and fins!outcomes are discussed on the following pane
Additional references are available, upon request
4
City ofLa Quinta —Comprehensive Fee and Rate Study;Fee Schedule Update
on providing premier level services ~i
The community values of the City of La Quinta place significant value
findings specifically considered the j
to the City's residents and businesses. The fee study analysis and
J
service level expectations of the City.
`
comprehensive fee. and rate study.
ClearSource assisted the City of La Quinta with the completion of a
fee study. Consequently, the study
The City had not increased fees in 15 years prior to completing the
for service, and public outreach
involved significant restructuring of existing fees, addition of new fees
ty and advisory groups prior_ to the
efforts that included '+ndividual presentations to multiple communi
ly,fees were adopted unanimously
City's Public Hearing to consider the adoption of new fees. Ultimate
building industry groups that
by the Council with letters of support received from the two local
ally, as part of the comprehensive fee
represent external stakeholders in the community. Addition
fees. ClearSource assisted the City
study, the City implemented a policy to annually review and adjust
with this fee schedule- update.
City of Ventura —Fee Study; Cost Allocation Plan;►nternal Service
Fund Study;Fee Schedule Update
overhead for the majority of its
The City targets full cost-recovery, including recovery of citywide
fu11-time employees and maintpins
regulatory fees. The City of Ventura employs more than 600
J
perating and capital budgets totaling roughly $200 million per year.
numerous projects including a
ClearSource has worked extensively with the City of Ventura on
ogy internal service fund rate study,
citywide user fee study,cost allocation plan, information technol
comprehensive studies as well an
and annual fee schedule update. ClearSource assists the City with
adjustments. ClearSource assists
interim year updates to account for minor changes and cost inflation
City Council presentations.
with staff report and resolution preparation, as well as stakeholder and
City ofBell("the New Bel!")—Cost Allocation Plan, User Fee Study
allocation plan that complies with
The City's new leadership team required swell-documented cost
required a project timeline of less
federal guidelines end can be easily understood. Additionally, the City
than 6Q days.
on plan. The plan was developed to
ClearSource prepared an OMB Circular A-87 compliant cost allocati
ed to be maintainable year
be easily understood by staff, and the City Council. It was also develop
ensure compliance with
after year and provide all documentation necessary for audit of the plan to
C1ear5ource to complete a
OMB Circular A-87 guidelines. Additionally, the City received assistance from
elated costs, finalizing a
study of community services fees. ClearSource assisted with calculating rental-r
d fee changes, and
proposed fee schedule, identifying the anticipated revenue impact of the propose
recommendations. Challenges
ensured transparency and thoroughness of the process, findings, and
ned sensitivity to any
included presenting findings and recommendations to a community with heighte
were adopted by
Fees
discussion of fees, due to prior abuses of power and misappropriation of funds.
ntly applied.
the Council with a fee structure intended to be easily understood, and able to be consiste
5
2. Understanding of the Scope of Work
Approach to Managing the Project
To encourage the timely, successful, completion of studies that result in outcomes that consider the
City's fiscal sustainability as well as the community's goals and values, ClearSource commits to:
• No limitation to the number of on-site meetings required to complete this project
• Working collaboratively with the City's direct service providers to identify fee structures and
collection mechanisms that can be maintained with minimal administrative effort
•
Multiple meetings with the City's leadership team to ensure the project progresses in
accordance with staff and community expectations
• A billing schedule that requests payment only upon completion of the project
• One point-of-contact, with more than a decade of experience in providing financial consulting
services exclusively to government agencies
• Deliverables tailored to Malibu. The City will receive working, Excel and Word versions of all
models and reports developed as part of this project. The models will become property of the
City so that it can perform future cost allocation and fee updates internally, if desired
Service Goals
.-
.
.•-
• •-•
•
• ..
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•
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~~
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•
•
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• ••
~,
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ClearSource prides itself on successfully navigating timing, personality, competing values, and other
challenges that arise when completing large sca{e, politically sensitive projects. During his career Mr.
Madsen has been awarded for his integrity, client service, dedication, and perseverance. His
treatment of staff, and respect for the challenges they face and the results they require in order to
accomplish their objectives, results in working relationships that span multiple years and projects.
6
~f
~~
Work Plan —Cost Allocation Plan
~;
Work Chart
The following chart illustrates ClearSource's summary level approach and goals for this project. Our
technical approach to accomplishing these objectives is provided in narrative form and corresponds to
the City's Scope of Work.
r
Develop expert knowledge
of the City's organizational
and financial structure
(read, learn, ask questions)
Scope of Work Narrative
The following provides a general outline of the technical approach ClearSource will take to successfully
complete all items requested in the Scope of Work section of the RFP.
1. Work with selected City staff to define the purpose, uses, and goals for an overhead cost
allocation plan, ensuring that the development of the plan will be both accurate and
appropriate for the City's'current needs.
To ensure that ClearSource has a proper understanding of the City's support service providers,
the primary uses of the cost allocation plan, any known deficiencies in the current cost
.allocation procedures, and any areas of specific focus for the project, ClearSource will:
a. Meet to establish working and reporting relationships and confirm dates and schedules.
b. Review the City's current cost allocation plan and methodology (if available).
c. Gain an understanding of the City's processes and operations to determine appropriate
cost allocation bases.
d. Review other readily-available and published data sources such as the City's existing
adopted budget and comprehensive dnnua!financial report.
e. Gather relevant data such as:
i. budget and actual expenditure information at the account level
ii. department specific organization charts
iii. data that may be used to influence cost allocation such as FTE counts,, square
footage, usage statistics, etc.).
2. Meet with staff and conduct interviews as needed to _gain an understanding of the City's
practices and operations. This includes identifying where Certain services/functions are
performed together/shared by different departments. Costs should be identified so that they
can be allocated appropriately.
ClearSource will meet with representatives of all support service departments to gather
organizational/service level information that may influence the allocation of costs. ClearSource
will work to ensure:
• Administrative services staff understand drivers of cost allocation, outcomes and
impacts of the cost allocation plan, and have a voice regarding possible refinements to
the plan that will more accurately allocate costs.
• Direct service departments are comfortable that a cost allocation plan has been
prepared that ensures only the eligible, actual costs of providing service are passed
through to direct service departments,fee and rate payers, or grantor agencies.
so
3. . Develop a cost allocation plan for calculating the full costs of providing each City service. The
plan shall allow for:
• The addition, revision, or removal of direct and overhead costs
that the cost
allocation plan can be adapted to a range of activities both simple and complex
• The ability to continuously update the model and overhead cost allocation plan easily
from year-to-year as the organization changes.
s
ClearSource wil! prepare a central service cost allocation plan. The City may use outcomes from
the plan to support reimbursement to the Cites General Fund for the cost of services provided
to Non-General Fund units. Additionally, the plan may be used to inform the calculation of the
full costs of providing user and regulatory-fee services, and the costs of providing services to
other agencies.
The plan will identify and ~ assign allowable central service costs to benefitted activities on a
reasonable and consistent basis. The plan will include:
• Description of each allocated central service
• Identification of the units rendering services and the units receiving services
• Items of expense included in the allocated cost of service
• Method used to distribute the cost of service to benefitted units
~ Schedule showing the allocation of each service to the specific benefitted units
• Organizational chart
The plan will:
• Clearly distinguish support service and direct service departments
• Apply atwo-step allocation of support services costs, that effectively transfers all
support services costs to only the direct service functions of the City
• Allow for the addition, removal, and.adjustment of costs
• Identify revenue impacts and overhead costs attributable to each of the City's General
Fund departments and each City Non-General Fund
• Clearly identify the statistical bases and inputs used to derive the allocation of costs (e.g.
departmental expenditures, number of employees, annual time tracking information)
4. Present cost allocation plan to the City and make necessary adjustments as requested.
ClearSource will prepare a clear and concise explanation and report on the recommended cost
allocation plan. The report will summarize:
• Purpose of overhead cost allocation.
•
Legislative guidance influencing cost allocation methodologies
• Uses of cost allocation plan outcomes and indirect -rates
• Forecasted impacts to General and Non-General Funds of cost allocation plan findings
ClearSource will modify the cost allocation plan to reflect feedback received during the
presentation of draft outcomes.
5. Prepare final plan and deliver electronic version to the City, including related schedules and
documentation in a format that can be edited and updated by City staff to accommodate
changes.
ClearSource will deliver a working electronic version of the final cost allocation plan that can be
edited and updated by City staff to accommodate changes in the organization or changes in
costs. The electronic files will be maintained in Excef, Word, and .PDF. The electronic
information will be provided to the City on a USB flash drive or via email. The information
delivered shall be the property of the City.
n
r'
Work Plan —Comprehensive Fee Study
Work Chart
The following chart illustrates ClearSource's summary level approach and goals for this project. Our
technical approach to accomplishing these objectives is provided in narrative form and corresponds to
the City's Scope of Work.
Develop expert Knowledge
of the City's organizational
and financial structure
(read, learn, asl< questions)
io
Scope of Work Narrative
The following- provides a general outline of the technical approach ClearSource will take to successfully
complete all items requested in the Scope of Work section of the RFP.
1. Work and meet with City staff to refine the project scope, purpose, uses and goals of the Cites
comprehensive fee study to ensure that the study will be both accurate and appropriate to
the City's needs.
ClearSource will:
•
Meet with the City's project leadership team to discuss any known deficiencies in
current systems or fees, and any areas of specific focus for the study.
•
Review and- interpret all readily-available and published data sources such as the City's
adopted budget,fee schedules, prior fee study, etc.
~
Gather any relevant data contained or managed at the departmental level (e.g. permit
volume statistics, department organization charts, time tracking information, etc.).
2. Meet with staff and conduct interviews as needed to gain an understanding of the City's
processes and operations. Conduct a comprehensive review of the Cites existing fees
including a review of all permits, licenses, fees for service and service charges in all City
departments.
To complete the comprehensive fee review, ClearSource will:
~
Meet with representatives of the departments that provide the fee-related services
examined as part of Phis study.
•
Meet with representatives of the budget and accounting teams responsible for
forecasting and recording fee revenues.
•
Prepare questionnaires and conduct interviews intended to gather organizational
information required to complete this study.
3. Identify the total cost of providing each City service consistent with all applicable laws,
statutes, rules and regulations governing the collection of fees, rates, and charges by public
entities.
CiearSource will prepare the analytical models that will serve as the foundation for all outcomes
of this study. The models will be specifically tailored to meet the needs of the City. They will be
used to identify the full cost of providing user and regulatory fee services at the program and
individual fee category level. To accomplish this, ClearSource wiEl:
•
Populate Excel-based, formula-driven, updatable models that will be delivered and
become property of the City for its use and future update.
•
User/regulatory fee cost of service models will:
o Allow for the addition, removal, and adjustment of costs
o
Consider all direct and indirect personnel, operations, and Citywide overhead costs
eligible for inclusion in the cost of service calculations
o
Calculate the full costs of providing fee related services and compare that to current
fee and revenue levels to determine cost recovery levels.
is
4. Compare service costs with existing recovery levels and identify recommended cost recovery
levels. Complete regional fee comparison.
ClearSource will compare calculated costs of service to current fees to identify current cost
recovery levels. ClearSource will use a combination of legal mandates, commonly accepted
industry standards, and the City's own goals and values when developing recommended cost
recovery levels.
Additionally, examination and comparison of agency fees to those imposed by neighboring or
similar jurisdictions is often a critical component to the successful completion of a fee study.
Although fees imposed by other jurisdictions have no link to the City's costs of providing
services, frequently, a City's department representatives and elected officials will use the fees
imposed by other agencies to assist in setting their own targeted cost recovery levels. In order
to accomplish this task, ClearSource will:
• Work with the City to determine appropriate agencies and fees to consider for
comparison.
• Gather all available data from comparison agencies and document and deliver findings
to be used by the City's department representatives and the City Council.
5. Recommend appropriate fees and charges based on the firm's analysis together with the
appropriate subsidy percentage for those fees where full cost .recovery or significant
immediate fee increases may be unrealistic.
The goal of this study should be to provide City staff and the fee paying community with a
thorough, deliberate, study that results in outcomes that-are legal, logical, and can be practically
implemented and maintained. ClearSource will prepare a proposed fee schedule that includes:
• Current fees and current cost recovery levels
• Proposed fees and proposed cost recovery levels
• Brief narrative identifying the reason for recommending less than full cost recovery for
any fees, or categories of fees,for which less than full cost recovery is recommended
6. Prepare a fee study report that identifies each service, its full cost, the current cost recovery
amount and the recommended cost recovery amount. The report should also identify the
.direct cost, the indirect cost, and the overhead cost for each service as well as a model for
adjusting fees for the City's current and future needs.
ClearSource will prepare a report that includes:
•
•
•
•
Overview of the study purpose and methodology
Identification of data sources
Forecasted revenue impacts to the City's General Fund
Detailed presentation of the analytical outcomes of the study, including each service
examined, its full cost, recommended and current cost recovery levels, direct cost,
indirect cost, and overhead costs
• Updated schedules of user and regulatory fees
12
7. Prepare and deliver presentations to the City to facilitate their understanding of the study and
its implications for the City and make necessary adjustments as requested.
Presentation of study findings will provide the City's management staff and elected officials with
the information they need to make critical policy decisions regarding recovery of fees.
ClearSource will prepare and present materials intended to summarize the:
~ Purpose of collecting user and regulatory fees
• Legislation influencing fees
• Proposed changes to City fees
• Forecasted revenue impacts of the fee.study recommendations
ClearSource will modify the fee study analysis and recommendations to reflect feedback
received during the presentation of draft outcomes.
8. Prepare and deliver electronic version of the comprehensive fee study report to the City,
including related schedules and documentation in a format that can be edited and updated by
City staff to accommodate changes in the organization or changes in cost. Deliverables will
include an electronic model for adjusting fees to reflect future changes in the City.
ClearSource will deliver a working electronic version of the final comprehensive fee study,
including Excel-based cost of service models and fee schedules that can be edited and updated
by City staff to accommodate changes in the organization or changes in costs. The electronic
files will be maintained in Excel, Word, and .PDF. The electronic information will be provided to
the City on a USB flash drive or via email. The information delivered shall be the property of the
City.
13
3. Professional Services Agreement
ClearSource has reviewed the City's standard Professional Services Agreement and related insurance
requirements. ClearSource is willing and able to sign the agreement "as-is", without any requests for
modification.
14
4. Compliance
ClearSource will comply with the California Labor Code, pursuant to regulations entitled: Federal Labor
Standards Provisions; Federal Prevailing Wage Decision; and State of California Prevailing Wage Rates,
respectively.
15
5. Litigation
ClearSource has no past, current, or pending litigation resulting from professional services rendered
over the past five years.
is
6. References
Reference No.1
Contact
Telephone Number
Email Address
Street Address
•
•
Mr. Chris Escobedo, Assistant to City Manager
1760)777-7000
[email protected]
78-495 Calle Tampico
La Quinta, CA 92253
Terry Madsen
Fee Schedule Update
Reference No.2
Contact
Telephone Number
Email Address
Street Address
•
Mr. Rudy Livingston, Assistant Finance Director
(805)654-7800
[email protected]
501 Poli Street
Ventura, CA 93002
Terry Madsen
Comprehensive Fee Study; Fee Schedule Update
Reference No.3
Contact
Telephone Number
Email Address
Street Address
• ::Mr.Josh Betta, Finance Director
(323)588-6211
[email protected]
6330 Pine Avenue
Bell, CA 90201
Terry Madsen
Community Services Fee Study
Cost Allocation Plan and Indirect Rate(OMB A-87 Compliant)
Proied details and final outcomes are discussed in the Organization, Credentials and Experience Section
Additional references are available, upon request
1~
7. Fees
Fee information is provided under separate cc
8.Timeline
..Work Task /Month
Jan
Feb
Mar
Apr
1 Meetings,Interviews, Data Gathering and Review
On-Site Mtg-Project Management Team
On-Site Mtg-Finance (Accounting, Budget}
Data Gathering and Review
2 Preliminary Development-Cost Allocation Plan
3 Refinement -Cost Allocation Plan
4 On-Site Mtgs -Review Draft Cost Allocation Plan
5 Final Updates and Delivery of Cost AI location Plan
1 Meetings,Interviews, Data Gathering and Review
On-Site Mtg-Finance (Accounting, Budget)
On-Site Mtg-Service Providers(Multiple Mtgs per Dept.)
2 Comprehensive Review of Existing Fees, Rates-and Charges
3 Cost of Service Calculations and Model Development
4 Cost Recovery Analysis and Fee Comparison
5 Recommend Fee Changes /Prepare Updated Fee Schedules
6 Prepare Fee Study Report
7 Presentation to City Council
8 Update and Deliver Finaf Documents/Files to the City
19
Estimated Project Hours
Plan Task
Estimated
1 Meetings, Interviews, Data Gathering and Revie(ry
On-Site Mtg -Project Management Team
1
1
8
2 Preliminary Development-CostAllocationPlan
24
3 Refinement-Cost Allocation Plan
8
2
5 Final Updates and Delivery of Cost Allocation Plan
4
1 Meetings, Interviews, Data Gathering and Review
~'
1
1
On-Site Mtg-Service Providers.(Multiple Mtgs per Dept.)
12
8
2 Comprehensive Review of Existing Fees, Rates and Charges
16
40
16
16
12
2
8 Update and Deliver Final Documents/Files to the City
4
zo
Services and Data to be Provided by Malibu Staff
Primary Responsibilities of City StafF for this Project
Provide institutional knowledge and expertise
Provide overview of current cost allocation and indirect rate charging systems (if available}.
Provide chart of accounts and general ledger data
Provide allocation data (e.g. FTE count,square footage, organizational chart, etc.)
Review findings("reasonableness tests")
Between 4 and 8 Hours Reauired from Ci{v StafF
Financial Management/Budget/Accounting Staff-2-4 hours
Central Service Unit Staff — 2-4 hours
Primary Responsibilities of City Staff-for this Project
Provide institutional knowledge and expertise
Provide overview of current fee schedules, permit/project tracking and financial systems
Provide budgeted and historical revenue and expenditure data
Provide volume related information (e.g. number of permits issued, application types, etc.)
Review findings("reasonableness tests")
~proximately 20 Hours Required from City StafF
Financial Management/Budget/Accounting Staff-4 hours
Fee Departments —16 hours
zs
Proposal for Comprehensive Fee Study
and Cost Allocation Plan
Fee Proposal
~tearSOUPCe Financial Consulting
clearsourcefinanciaLcom
December 2014
7. Fees
The project budget is $26,400. This is a "not-to-exceed" fixed fee that includes all associated fees (i.e.
printing costs, attendance at meetings, and travel). The budget assumes 176 project hours billed at
$15Q per hour. At no time will ClearSource request payment in excess of the project budget in order to
complete the project. The following table provides pricing details for each component of the project.
Project
Hours
Hourly
Rate
Fee
On-Site Mtg -Project Management Team
1
$150
$150
1
$150
$150
8
$150
$1,200
2 Preliminary Development- Cost Allocation Plan
24
$150
$3,600
3 Refinement-Cost Allocation Plan
Work Plan Task
8
$150
$1,200
2
$150
$300
5 Final Updates and Delivery of Cost Allocation Plan
4
$150
$500
1
$150.
$150
1
$150
$150
On-Site Mtg-Service Providers(Multiple Mtgs per Dept.)
12
$150
$1,800
8
$150
$1,200
2 Comprehensive Review of Existing Fees, Rates and Charges
1fi
$150
$2,400
40
$150
$6,000
16
$150
$2,400
16
$150
$2,40Q
12
$150
$1,800
2
$150
$300
8 Update and Deliver Final Documents/Files to the City
4
$150
$600
..
~
. ~~~
Payment Terms
To encourage the timely completion of all work, the proposed schedule of payment for services assumes
completion of the project, in its entirety, before payment of fees to ClearSource (i.e. the City will
receive one invoice for $26,400 upon completion of the project).
The proposed payment schedule and project timeline assume that City staff will provide ClearSource
with any information requested within five business days of receipt of request. Requests for
information and City feedback will be made throughout the study.
1
If the City is unable to consistently meet the requested turnaround time-for information and feedback
requests and meeting scheduling, or if the City prefers to use its standard billing methodology, rather
than bill upon completion of the study, ClearSource will provide monthly billings for in-progress work
completed. The amounts billed will correspond to the timeline and deliverables identified in this
proposal.

CC150209_Item 3B5

Transcription

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