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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 .0�,�,D�r-e�c.,,,.:. JEANI� M, LEONCINI, City Clerk �� a i glaq 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. 1 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 E 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 3 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 4 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 E 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 C1 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. rl 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 ` 8 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 1 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 is 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 3 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. 4 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: 5 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. n 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 Vii