HomeMy WebLinkAboutCC Resolution 9729 (City Wide Cost Plan)RESOLUTION NO. 9729
Resolution authorizing execution of Agreement
with Management Services Institute (M.S.I.) to
develop a municipal business system including
a City wide Cost Plan and Fee For Service
analysis.
WHEREAS: it has been determined that there is a need to
prepare a City Wide Cost Allocation Plan and to make an analysis of
City Services (Fee for Service Analysis); and
WHEREAS: this is the result of a comparison of the two
providers of these services; and
WHEREAS: there is a need for funds to be appropriated for
this service in the amount of $49,500; and
WHEREAS: all fees will be paid to the contractor upon
completion of the studies.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the San Rafael City
Council that it has been determined that Management Services
Institute (M.S.I.) is authorized to proceed in accordance with the
terms as set in the agreement.
IT IS FURTHER RESOLVED that the Mayor is authorized to
execute an Agreement with Management Services Institute (M.S.I.)
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby
certify that the foregoing resolution was duly and regularly
introduced and
adopted
at
a regular meeting
of the Council of said
City on the
21st
day
of OCTOBER ,
1996, by the following
vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
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JEANI� M, LEONCINI, City Clerk
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AGREEMENT
WITH
Management Services Institute
for Municipal Business System
(Cost Allocation Plan and Fee for Service Study)
This Agreement is made and entered into this 21st day of
OCTOBER , 1996, by and between the CITY OF SAN RAFAEL
(hereinafter "CITY"), and Municipal Services Institute (M.S.I.)
(hereinafter "CONTRACTOR").
RECITALS
WHEREAS, Contractor has experience and knowledge to complete
a cost allocation plan, an OMB -A87 plan and a cost of services
study.
WHEREAS, Contractor represents that it has the expertise,
experience and willingness to perform said audit,
AGREEMENT
NOW, THEREFORE, the parties hereby agree as follows:
1. PROJECT COORDINATION.
A. CITY. The City Manager shall be the representative
of the CITY for all purposes under this Agreement. The Director of
Administrative Services is hereby designated the PROJECT MANAGER
for the CITY, and said PROJECT MANAGER shall supervise all aspects
of the progress and execution of this Agreement.
B. CONTRACTOR. CONTRACTOR shall assign a single
PROJECT DIRECTOR to have overall responsibility for the progress
and execution of this Agreement for CONTRACTOR. A. R. "Rick"
Kermer, Jr., Project Director is hereby designated as the PROJECT
DIRECTOR for CONTRACTOR. Should circumstances or conditions
subsequent to the execution of this Agreement require a substitute
PROJECT DIRECTOR for any reason, the CONTRACTOR shall notify the
CITY within ten (10) business days of the substitution.
2. DUTIES OF CONTRACTOR.
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COPY
CONTRACTOR shall provide services as described in Exhibit
A, Proposal to develop a Municipal Business System for the City of
San Rafael which includes Cost Allocation Plan (CAP), Software,
Unit Cost of Service Study and Enhanced Cost of Service Study. The
CAP and Unit Cost would be completed by January 15, 1997 and the
Enhanced Cost of services completed by March 1, 1997.
3. DUTIES OF CITY.
CITY shall provide financial information from our
existing financial system and City staff will work with contractor
to identify hours, units and service time as identified under
Exhibit A Municipal Business System.
4. COMPENSATION.
For the full performance of the services described herein
by CONTRACTOR, CITY shall pay CONTRACTOR as follows:
Completion of Cost Allocation Plan and Unit Cost of
Services study January 15, 1997, $36,000; completion of Enhanced
Cost of Services Study $13,500, March 1, 1997.
5. TERM OF AGREEMENT.
The term of this Agreement shall commence on October 21,
1996 and end on completion of project.
6. TERMINATION.
A. Discretionary. Either party may terminate this
Agreement without cause upon thirty (30) days written notice mailed
or personally delivered to the other party.
B. Cause. Either party may terminate this Agreement
for cause upon ten (10) days written notice mailed or personally
delivered to the other party, and the notified party's failure to
cure or correct the cause of the termination notice, to the
reasonable satisfaction of the party giving such notice, within
thirty (30) days of the receipt of said notice.
C. Effect of Termination. Upon receipt of notice of
termination, neither party shall incur additional obligations under
any provision of this Agreement without the prior written consent
of the other.
D. Return of Documents. Upon termination, any and all
CITY documents or materials provided to CONTRACTOR and any and all
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of CONTRACTOR's documents and materials prepared for or relating to
the performance of its duties under this Agreement, shall be
delivered to CITY as soon as possible, but not later than thirty
(30) days after termination.
7. OWNERSHIP OF DOCUMENTS.
The written documents and materials prepared by the
CONTRACTOR in connection with the performance of its duties under
this Agreement, shall be the sole property of CITY. CITY may use
said property for any purpose, including projects not contemplated
by this Agreement.
8. INSPECTION AND AUDIT.
Upon reasonable notice, CONTRACTOR shall make available
to CITY, or its agent, for inspection and audit, all documents and
materials maintained by CONTRACTOR in connection with its perfor-
mance of its duties under this Agreement. CONTRACTOR shall fully
cooperate with CITY or its agent in any such audit or inspection.
9. ASSIGNABILITY.
The parties agree that they shall not assign or transfer
any interest in this Agreement nor the performance of any of their
respective obligations hereunder, without the prior written consent
of the other party, and any attempt to so assign this Agreement or
any rights, duties or obligations arising hereunder shall be void
and of no effect.
10. INSURANCE.
A. During the term of this Agreement, CONTRACTOR shall
maintain, at no expense to CITY, the following insurance policies:
1. A comprehensive general liability insurance
policy in the minimum amount of one million ($1,000,000) dollars
per occurrence for death, bodily injury, personal injury, or
property damage;
2. An automobile liability (owned, non -owned, and
hired vehicles) insurance policy in the minimum amount of one
million ($1,000,000) dollars per occurrence;
3. If any licensed professional performs any of
the services required to be performed under this Agreement, a
professional liability insurance policy in the minimum amount of
one million $1,000,000) dollars to cover any claims arising out of
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the CONTRACTOR's performance of services under this Agreement.
B. The insurance coverage required of the CONTRACTOR by
section 11. A., shall also meet the following requirements:
1. The insurance shall be primary with respect to
any insurance or coverage maintained by CITY and shall not call
upon CITY's insurance or coverage for any contribution;
2. Except for professional liability insurance,
the insurance policies shall be endorsed for contractual liability
and personal injury;
3. Except for professional liability insurance,
the insurance policies shall be specifically endorsed to include
the CITY, its officers, agents, and employees as additionally named
insureds under the policies;
4. CONTRACTOR shall provide to PROJECT MANAGER,
(a) Certificates of Insurance evidencing the insurance coverage
required herein, and (b) specific endorsements naming CITY, its
officers, agents and employees, as additional insureds under the
policies;
5. The insurance policies shall provide that the
insurance carrier shall not cancel, terminate or otherwise modify
the terms and conditions of said insurance policies except upon
thirty (30) days written notice to CITY's PROJECT MANAGER;
6. If the insurance is written on a Claims Made
Form, then, following termination of this Agreement, said insurance
coverage shall survive for a period of not less than five years;
7. The insurance policies shall provide for a
retroactive date of placement coinciding with the effective date of
this Agreement;
B. The insurance shall be approved as to form and
sufficiency by PROJECT MANAGER and the City Attorney.
C. If it employs any person, CONTRACTOR shall maintain
worker's compensation and employer's liability insurance, as
required by the State Labor Code and other applicable laws and
regulations, and as necessary to protect both CONTRACTOR and CITY
against all liability for injuries to CONTRACTOR's officers and
employees.
D. Any deductibles or self-insured retentions in
CONTRACTOR's insurance policies must be declared to and approved by
the PROJECT MANAGER and the City Attorney. At CITY's option, the
deductibles or self-insured retentions with respect to CITY shall
be reduced or eliminated to CITY's satisfaction, or CONTRACTOR
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shall procure a bond guaranteeing payment of losses and related
investigations, claims administration, attorney's fees and defense
expenses.
11. INDEMNIFICATION.
CONTRACTOR shall indemnify, release, defend and hold
harmless CITY, its officers, and employees, against any claim,
demand, suit, judgement, loss, liability or expense of any kind,
including attorney's fees, arising out of or resulting in any way,
in whole or in part, from any acts or omissions, intentional or
negligent, of CONTRACTOR or CONTRACTOR's officers, agents and
employees in the performance of their duties and obligations under
this Agreement.
12. NONDISCRIMINATION.
CONTRACTOR shall not discriminate, in any way, against
any person on the basis of age, sex, race, color, religion,
ancestry, national origin or disability in connection with or
related to the performance of its duties and obligations under this
Agreement.
13. COMPLIANCE WITH ALL LAWS.
CONTRACTOR shall observe and comply with all applicable
federal, state and local laws, ordinances, codes and regulations,
in the performance of its duties and obligations under this
Agreement. CONTRACTOR shall perform all services under this
Agreement in accordance with these laws, ordinances, codes and
regulations. CONTRACTOR shall release, defend, indemnify and hold
harmless CITY, its officers, agents and employees from any and all
damages, liabilities, penalties, fines and all other consequences
from any noncompliance or violation of any laws, ordinances, codes
or regulations.
14. NO THIRD PARTY BENEFICIARIES.
CITY and CONTRACTOR do not intend, by any provision of
this Agreement, to create in any third party, any benefit or right
owed by one party, under the terms and conditions of this Agree-
ment, to the other party.
15. NOTICES.
All notices and other communications required or
permitted to be given under this Agreement, including any notice of
change of address, shall be in writing and given by personal
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delivery, or deposited with the United States Postal Service,
postage prepaid, addressed to the parties intended to be notified.
Notice shall be deemed given as of the date of personal delivery,
or if mailed, upon the date of deposit with the United States
Postal Service. Notice shall be given as follows:
TO CITY: Susan B. Merrill,
Interim Director Administrative Services
Kenneth A. Nordhoff,
Director Administrative Services
Project Manager
City of San Rafael
1400 Fifth Avenue
P.O. Box 151560
San Rafael CA 944915-1560
TO CONTRACTOR: A.R. "Rick" Kermer, Jr.
(Project Director)
Management Services Institute
2545 E. Chapman, Suite 103
Fullerton CA 92631
16. INDEPENDENT CONTRACTOR.
For the purposes, and for the duration, of this Agree-
ment, CONTRACTOR, its officers, agents and employees shall act in
the capacity of an Independent Contractor, and not as employees of
the CITY. CONTRACTOR and CITY expressly intend and agree that the
status of CONTRACTOR, its officers, agents and employees be that of
an Independent Contractor and not that of an employee of CITY.
17. ENTIRE AGREEMENT -- AMENDMENTS,.
A. The terms and conditions of this Agreement, all
exhibits attached, and all documents expressly incorporated by
reference, represent the entire Agreement of the parties with
respect to the subject matter of this Agreement.
B. This written Agreement shall supersede any and all
prior agreements, oral or written, regarding the subject matter
between the CONTRACTOR and the CITY.
C. No other agreement, promise or statement, written or
oral, relating to the subject matter of this Agreement, shall be
valid or binding, except by way of a written amendment to this
Agreement.
D. The terms and conditions of this Agreement shall not
be altered or modified except by a written amendment to this
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Agreement signed by the CONTRACTOR and the CITY.
E. If any conflicts arise between the terms and
conditions of this Agreement, and the terms and conditions of the
attached exhibits or the documents expressly incorporated by
reference, the terms and conditions of this Agreement shall
control.
18. SET-OFF AGAINST DEBTS.
CONTRACTOR agrees that CITY may deduct from any payment
due to CONTRACTOR under this Agreement, any monies which CONTRACTOR
owes CITY under any ordinance, agreement, contract or resolution
for any unpaid taxes, fees, licenses, assessments, unpaid checks or
other amounts.
19. WAIVERS.
The waiver by either party of any breach or violation of
any term, covenant or condition of this Agreement, or of any
ordinance law or regulation, shall not be deemed to be a waiver of
any other term, covenant, condition, ordinance, law or regulation,
or of any subsequent breach or violation of the same or other term,
covenant, condition, ordinance, law or regulation. The subsequent
acceptance by either party of any fee, performance, or other
consideration which may become due or owing under this Agreement,
shall not be deemed to be a waiver of any preceding breach or
violation by the other party of any term, condition, covenant of
this Agreement or any applicable law, ordinance or regulation.
20. COSTS AND ATTORNEY'S FEES,.
The prevailing party in any action brought to enforce the
terms and conditions of this Agreement, or arising out of the
performance of this Agreement, may recover its reasonable costs
(including claims administration) and attorney's fees expended in
connection with such action.
21. CITY BUSINESS LICENSE / OTHER TAXES.
CONTRACTOR shall obtain and maintain during the duration
of this Agreement, a CITY business license as required by the San
Rafael Municipal Code. CONTRACTOR shall pay any and all state and
federal taxes and any other applicable taxes. CONTRACTOR's
taxpayer identification number is 33-06.75.0.92 , and CONTRACTOR
certifies under penalty of perjury that said taxpayer identifica-
tion number is correct.
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22. APPLICABLE LAW.
The laws of the State of California shall govern this
Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement
as of the day, month and year first above written.
CITY OF SAN RAFAEL
or//
ATTEST:
Vit'y clerk `
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CONTRACTOR -MANAGEMENT SERV CES INSTITUZ
B
Name: f}'L3t—R-r IZ. KE-QM�k1�2
Title:
Exhibit A
81management services institute
254S E. CHAPMAN AVENUE, SUITE 103, FULLERTON, CA 92631 (714) 992.9020 FAX (714) 992-9021
September 26, 1996
Susan Merrill, Acting Finance Director
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94915
Dear Ms. Merrill:
Management Services Institute (MSI) is pleased to submit this Proposal to customize and
implement our copyrighted Municipal Business System for the City of San Rafael at your
request.
We agree to apply our copyrighted, computerized Municipal Business System to prepare
a Cost Allocation Plan and to make an analysis of City services. Our MBSystem has now
been adopted by over 130 client cities.
As we point out in the enclosed Proposal, the strength of our MBSystem is in the
information provided to the City Council for them to utilize in making informed policy
decisions, and provided to staff for them to better know and control costs, all on a
continuing basis. As you know, our analysis is one-time, but the data and program can be
provided to the City so that it might be kept up-to-date, and used for other analytical
purposes by City staff.
You can see from this Proposal that our approach to governmental financial management
is unique both as to technique and application. Our Municipal Business System will permit
the City to operate itself in a more businesslike manner and, in the process, be free of
fluctuating state and federal revenues and have an organized way to balance revenues
with service demands.
More important, our MBSystem assures a considerable measure of fairness and equity for
taxpayers in the payment for City services by those who most use those services, and
assures the City's capability to provide and to sustain the decided level of City services and
improvements.
M
X1
Proposal to the City of San Rafael -- Page 2 1
The results of the MBS Revenue/Cost Analysis would be reported directly to the City
Council. Additionally, at the end of the entire process the software and a license for the
MBS program and all the City's data would be transferred and training provided to City
staff.
Authorization by the City Council, signified by a letter indicating your desire to proceed is
all we need for our purposes, or we will execute a formal contract should the City so desire.
We look forward to being of assistance to the City in assuring the financial viability of its
services as it continues to operate in an era in which local governments must seek ways
to serve more economically and to finance more fairly the City services enjoyed by the
residents, business persons and organizations in the City.
Sincerely,
(3 1
RIC7jtQ441-�
K KERMER, CPA
President
PROPOSAL
Background
The MSI -copyrighted MBSystem is an analysis of revenues and costs for specific
operational functions or "service centers." The System applies private business costing and
management principles and practices to specific local government services. Revenues
and full costs for each such center are identified and compared. Some practitioners have
recently coined the phrase, "Activity -Based Costing" and "Activity -Based Management" to
describe the work that MSI has been doing for seventeen years.
Full Costs Identified. The basic principle involved is the identification and recognition of full
operational costs following the Constitutionally intended business definitions, not just those
costs which are budgeted. Costs include, among others, salaries, full fringe benefits,
central service expenses, supplies, building occupancy and equipment usage,
departmental and general overhead, fixed asset replacement, and miscellaneous costs.
Constitutional Iv -Defined "Costs". "Costs reasonably borne" incurred in providing each
service will be identified pursuant to the terms and intent of California Constitution Article
XIIIB (commonly known as Proposition 4) so that cost control can be improved significantly.
Another result will be specific identification of beneficiaries of services not received or
desired by the entire public so that service fees and charges can be set equitably, tax
subsidies known and limited or eliminated, if desired, taxes directed back to general
services and California Constitutional provisions and rate -limiting legislation complied with.
In other words, there is now in California, a Constitutional mandate for local government
to be conscious of what it costs to provide specific services, and to know whether those
services are being supported by taxes, fees or a combination of both.
MSI uses the definitions of "costs reasonably borne" set out by the Authors of Proposition
4 in their Constitutional intent documents. Those authors represented the California
Taxpayers Association, the California Chamber of Commerce, the California Association
of Realtors, the National Tax Limitation Committee, and the "Spirit of 13, Inc." movement
of Paul Gann. Their definitions are those which must be used by business. Thus the
requirement to apply business principles and practices to government.
The MBSystem identifies all cost elements so that City management personnel can control
all costs, and be able to provide the City Council with meaningful policy alternatives due
to the availability of specific cost data relating to the provision of a specific service. As
important, such comprehensive and detailed data permits the City Council to make
meaningful policy decisions concerning the degree of tax subsidy, if any, to be provided
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City of San Rafael MBSystem Proposal
for each service and to know where taxes are going so that they might defend such to
constituents as appropriate and necessary.
The value of the MSI Revenue/Cost Center Analysis is that a business -type methodology
is applied consistently to all City services which permits comparison among City services
and also to similar private sector services.
This process does not encompass capital exaction fees, commonly referred to as
Development Impact Fees.
Scope of Work
Cost Allocation Plan (CAP). A CAP is for the allocation of indirect costs such as building
maintenance, accounting, data processing, personnel and other general administrative
costs to either other funds or to departments. A typical use of a CAP is to allocate general
administrative costs to a Water Fund based on that fund's use of general administration.
A more recent use of a CAP is to allocate an appropriate share of general administration
to a planning department so that planning fees are recovering their full cost which includes
the work of planners (a "direct cost") as well as the general administrative support
necessary for the planners to function ("indirect costs").
When a CAP is used in California for allocating indirect costs between funds or for
allocation indirect costs to services, Article XIIIB of the State Constitution provides that
costs can include a reasonable share for general administration. However, when used for
justifying the allocation of overhead to a federal grant program, the federal guidelines (A87)
specifically exclude the costs for the legislative function (city council) and the portion of any
department providing direct support for the legislative function (such as a share of the city
attorney, city clerk and city manager).
MSI proposes to prepare two versions of a CAP that will meet both purposes. The final
report would Include a printed summary and detail (for both versions) of the:
-- Central Service Agencies (e.g. overhead departments)
-- Subpools of each Central Service Agency (CSA)
-- Allocation of each CSA's costs to the subpools of the CSA
-- Allocation Factors for each Subpool
-- Where each Subpool was allocated
-- The source of each department's allocation and a departmental rate which can be
applied against the department's direct salaries
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City of San Rafael MBSystem Proposal
Cost of Services — Sinole Unit. The MSI process for costing a single unit of service is
designed to make the greatest fiscal impact for the monies spent. It involves identifying all
fee services and computing the full cost of performing one typical unit of that service. If
there are several types of a service provided, that service is broken down to each type so
that the unit cost is truly representative of that type. It involves the following:
A. Developing a Fully -Burdened Hourly Rate for all staff including:
1. Fringe Benefit Rates and Avail. -Work -Hours by MOU group
2. Allocation of department/division M&O to staff hourly rates
3. Allocation of building occupancy, general overhead, departmental overhead
& divisional overhead to the extent that it is not covered by the CAP to the
staff hourly rates (Note: Since the purpose of this version is "fee recovery",
the "Total Cost" CAP rates are used.)
4. Integrate the CAP Module with the Hourly Rate Module
5. Allocation of department/division fixed asset replacement to staff hourly rates
to the extent fixed asset detail is provided
6. MSI will provide the City with the Hourly Rate software and train staff in the
use of the software during our field work on the project
B. Identify services to be costed:
1. Use existing fee schedules as a starting point, interview staff to determine if
services are provided for which there is no current charge.
2. Identify all departments/divisions involved in providing the service
3. Interview relevant departments to identify which position provides the service
and the typical time for providing one unit of service. If the current fee
schedule does not account for a service's diversity, MSI will subdivide the
service and cost each version.
4. Prepare a page for each fee identifying the primary service provider,
description of the service, who is the typical service recipient, detail of the
cost by position and recommendation for fee revision
5. Integrate the Hourly Rate Module with the Unit Cost Module. Provide the City
with the Unit Cost software and train staff in the use of the software during
our field work/
6. MSI will review a draft of the above with staff to insure accuracy of the detail
and acceptance of the recommendations
7. MSI will prepare a bound report which includes as appendices the CAP, the
staff fully -burdened hourly rates, and the service pages. The text of the
report will include a description of the MSI process, summaries of the
findings, discussions of the options available to the Council for making policy
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City of San Rafael MBSystem Proposal
and a suggested process to follow. This report will be initially prepared in
draft for staff review to insure its accuracy.
8. MSI will print twenty copies of the final report and present the final report to
the Council at a total of two meetings which can be either work sessions,
public presentations or public hearings. Additional report copies or
presentations would be at time and expense.
Cost of Services — Enhanced. This enhanced service costing process involves balancing
100% of the time of 100% of the City staff to the services performed. It may not generate
more revenue for the City as it may show that some staff were over allocated when only
the time of a typical unit of service was considered. However, this process excels in
identifying how City resources are being utilized and typically generates staff and Council
decisions to discontinue a service or to re-engineer how the service is performed.
The following steps are performed in addition to the above steps for the additional fee
discussed below.
A. MSI will work with departments to identify the total number of units of each service
that are likely to be provided in FY 96-97 and the staff effort expended for tax
services provided by each department.
B. MSI will prepare an analysis of each department's/division's time allocations to
identify individual positions where the available work -hours are over/under
allocated.
C. MSI will work with each department/division head to bring each position's time into
agreement with the fee/tax service times expended by that position. This effort may
involve numerous iterations of the analysis until City staff is satisfied that the time
allocations are reasonably accurate. These iterations typically identify additional
services provided and provide a reality check to the time allocations for each
service.
D. MSI will integrate the Total Cost and Balancing Module with the Unit Cost Module.
MSI will provide the City with the software to update the study and will train City staff
in the use of the software during our field work at the City.
E. MSI will expand the service cost appendix to include information on the total
revenue and total cost over all units of service provided.
F. MSI will include a chapter in the textual report identifying the general tax revenues
received by the City, the general tax services provided by the City, and the tax
subsidy to fee services.
G. MSI will- include in the text a discussion of the City infrastructure assets and the
average annual replacement of those assets necessary to maintain the integrity of
the City's infrastructure.
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City of San Rafael MBSystem Proposal
H. MSI will include summary schedules in the text identifying the total revenue, total
cost, total profit/subsidy and potential fee/cost adjustments which the City could
adopt.
I. MSI will provide two additional meetings to the City for the review and/or
presentation of the additional information at work sessions, public presentations or
public hearings.
Result. The MSI -copyrighted process, outlined above, will determine fair, equitable, legally
proper and consistent relationships between City operations and funds. From the service
costing data comes the ability to know, control, and manage costs. The result is a
businesslike approach to costs and the ability of City management personnel to become
cost-effective systematically. As important, the City Council also is aware of any
discrepancies between fees paid and services rendered for any of the service centers,
thereby being able to both make policy as to the use of tax monies, and to judge cost-
effectiveness.
Timing of Services
Preparing the CAP and the unit cost of services would take from two to three months from
start to finish. If the City wishes the enhanced cost of services, the total time would
increase from one to two months,
Fee for Services
The flat -rate fee for each component of our services based on the above scope of work is
as follows:
I. Cost Allocation Plan (includes "total" and "A87" versions) incl. travel ... $ 9,500
Il. Software, training and cognizant agency transmittal preparation ...... $2,750
III. Unit Cost of Services Study including software, training & travel ....... $26,000
IV. Enhanced Cost of Services Study including software, training & travel . $13,500
The total price for all components is $51,750. Should -the City choose to have MSI perform
all components, the combined price would be $49,500
The above fees cover all costs except the following:
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City of San Rafael MBSystem Proposal
■ any business license tax imposed on MSI which is not waived by the City,
■ insurance coverage beyond our basic general liability and workers
compensation requiring an additional premium',
■ sales or use tax or any other tax imposed on these fees,
■ and, report reproduction beyond the first 10 copies of the draft and final
Reports.
Should the City not want all components at this time, the following should be noted: Part
II is not available unless Part I is selected. Part III and IV may be selected independent of
Part I and II provided that MSI has access to the results of a CAP. Part IV is only available
as an enhancement to Part III.
These prices and the Proposal are good until October 31, 1996. After that date, the timing
in this proposal would have to be modified.
Legal Advice
MSI is not authorized to practice law, however, we will offer management advice on issues
related to fee setting and to how the MSI recommendations will be impacted by the 'Right
to Vote on Taxes" Initiative. The City is advised to verify the legality of such issues prior to
attempting to adopt ordinance, resolutions, and code modifications.
Project Staff
Our professional qualifications are attached hereto as Appendix A.
Rick Kermer. CPA. President. will direct all of the work, using one or more of the following:
Owen O. Olsen. CPA. Partner
Eric Johnson. Partner
Greta Mendoza. Partner
'MSI standard coverage includes workers compensation pursuant to state law, comprehensive liability insurance with a minimum combined
single limit coverage of $1,000,000 and professional liability insurance with a minimum coverage of $100,000 per occurrence.
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City of San Rafael MBSystem Proposal
References
We have completed similar projects for the jurisdictions listed in Appendix B and would
request you to contact them for references. A more extensive and specific list can be
provided on request. Please also see listings on individual professional resumes.
Reservation of Rights
Some of the concepts discussed in this proposal are considered to be proprietary and are
the copyrighted property of Management Services Institute. All rights are reserved and no
part of this work may be reproduced or copied in any form without written permission of
MSI. Expressed permission is hereby granted to the City of San Rafael to make sufficient
copies of this Proposal to permit evaluation thereof. No other use or distribution of this
document is permitted.
MSI is very interested in working with and for the City of San Rafael. The work would be
performed in a timely manner by principals of the company who desire to make San Rafael
happy, not just satisfied!
END
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