HomeMy WebLinkAboutCC Resolution 11103 (Cost Services Study)RESOLUTION NO. 11103
A RESOLUTION AUTHORIZING AN AGREEMENT WITH REVENUE
AND COST SPECIALISTS, LLC FOR A COST OF SERVICES STUDY
WHEREAS, the cost of providing municipal services is a necessary and important tool
in understanding how to structure and manage local government financial condition;
and
WHEREAS, the City Council has adopted a set of financial principles, one of which
underscores the need to know the full cost of providing all municipal services to our
residents and businesses; and
WHEREAS, the City of San Rafael initiated a cost for services study in 1997 and
subsequently adopted an ordinance defining percentages of cost recovery for fee
based services and a related master fee schedule; and
WHEREAS, the last complete update of the cost of services study was conducted in
1999 and a thorough review of all services is necessary in order to comply with
approved financial principles.
NOW, THEREFORE, BE IT RESOLVED THAT:
The CITY MANAGER and CITY CLERK are authorized to execute, on behalf of
the City of San Rafael, an agreement with
REVENUE AND COST SPECIALISTS, LLC FOR A COST OF SERVICES STUDY,
a copy of which is hereby attached and by this reference made a part hereof.
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 City Council of said City held on Mondav„ the 20th day of May, 20 02, by the
following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
;557 c - 2ze,4 2c.c0 zepazi
. JEANNE M. LEONCINI, City Clerk
WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2002\City\r&cs cost study reso.doc
AGREEMENT WITH REVENUE AND COST SPECIALISTS, LLC FOR
COST OF SERVICES STUDY
This Agreement is made and entered into this 20th day of May, 2002, by and
between the CITY OF SAN RAFAEL (hereinafter "CITY"), and Revenue and Cost
Specialists. LLC hereinafter "CONTRACTOR").
1. PROJECT COORDINATION
A. CITE(. The City Manager shall be the representative of the CITY for
all purposes under this Agreement. The Assistant City Manager, Ken Nordhoff, 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. - Rick Kermer 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 0-ONTRACI`OR shall notify the CITY within ten (10) business days of the substitution.
2. DUTIES OF CONTRACTOR
CONTRACTOR shall perform the duties and/or provide services as
described in Exhibit " A " attached and incorporated herein.
3. DUTIES OF CITY
CITY shall cooperate with CONTRACTOR in his performance under this
agreement and shall compensate CONTRACTOR as provided herein.
4. COMPENSATION
For the full performance of the services described herein by
CONTRACTOR, CITY shall pay CONTRACTOR a not to exceed sum of $28,500,
inclusive of the cost of incidental expenses and the local business license taxes as
described in Section 20.
Payment will be made monthly upon receipt by PROJECT MANAGER of
itemized invoices submitted by CONTRACTOR.
5. TERM OF AGREEMENT
The term of this Agreement shall commence upon the date of execution of
this agreement and shall end on December 31, 2002. The term can be extended at the
mutual agreement of both parties to a date certain.
6. TERMINATION
A. Discretionary. Either party may terminate this Agreement without
cause upon thirty 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 of CONTRACTOR's
documents described in paragraph 7 below, 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 electronic data 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 directly related to CONTRACTOR'S
performance 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.
Page 2
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
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, their officers, agents,
employees and volunteers as additionally named insured 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, their officers, agents, employees and volunteers as
additional insured 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;
Page 3
7. The insurance policies shall provide for a retroactive date of
placement coinciding with the effective date of this Agreement;
8. 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,
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 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,
and other entities in the Franchisors' Group, their officers, agents, employees and
volunteers, against any claim, demand, suit, judgment, 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, their 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.
Page 4
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 Agreement, 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 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: Mr. Ken Nordhoff
Assistant City Manager
(Project Manager)
City of San Rafael
P.O. Box 151560
San Rafael, CA 94915-1560
TO CONTRACTOR: Mr. Rick Kermer
(Project Director)
Revenue & Cost Specialists, LLC
2545 E. Chapman Avenue, Suite 103
Fullerton, CA 92831
16. INDEPENDENT CONTRACTOR
For the purposes, and for the duration, of this Agreement, 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.
Page 5
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 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. 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.
19. 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.
20. 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 33-0787781, and
CONTRACTOR certifies under penalty of perjury that said taxpayer identification number
is correct.
21. APPLICABLE LAW
The laws of the State of California shall govern this Agreement.
Page 6
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day,
month and year first above written.
CITY OF SAN RAFAEL CONTRACTOR
City Manager ROD GOULD
Name:
Title: �S �� eh3
ATTEST:
r -of, City Clerk UEANNE M. LEONCINI
APP S P FORM:
City Attoi GARY T. RAGGHIANTI
\\sr_fsMorkFile\Management Services- WorkFile\Finance-
Contracts\Professional Contracts\2002\r&cs cost study 2002.doc
Page 7
WorkFile\Agreement and
E
evenue
Ost
pecialists, LLC
Serving Local Governments Since 1975
May 3, 2002
Ken Nordhoff, Asst. City Manager
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94915
Dear Ken,
Exhibit A
Revenue & Cost Specialists, L.L.C. (RCS formerly MSI) is pleased to submit this Proposal
to update our Cost of Services Study for the City of San Rafael based on our phone
conversation this week.
Scope of Work - Phases
Phase ] -.D-ata-Entry. RCS will request data from the City and enter it into the costing
software to determine current service costs.
Phase -Z- Draft Review -&-Mndifcatian. RCS will provide the City with various reports for
review and modification. RCS will modify the data based on City input.
Phase 3 - On-site review of Draft -as. Required- RCS would meet at the City with City staff
to review the draft report and make changes.
Phase 4 - Presentation of the FinaLRepDA s_Requiresi. RCS would present the final report
to the City Council or at other public meetings as requested by the City.
Internet. www.revenuecost_com
Voice 714.992.9020 2545 E. Chapman Avenue • Suite 103 • Fullerton. CA g2RR1 Pnw 71e. QQ9 Qnr)i
Update Proposal for City of San Rafael
Timing of Services
Page 2
RCS would begin work within ten days of authorization to proceed. With timely response
to requests for information, the project should be complete within 90 days.
Fee for Services
The fee for the above scope of work would be as follows:
Phase 1- Data Entry:
....................................................$7,500
Phase 2 - Draft Review & Modification:
.... $7,500 plus printing & shipping expenses not -to -exceed $1,000
Phase 3 - On -Site Draft Review:
............. Actual Time & Expense not -to -exceed $10,000
Phase 4 - Report Presentation:
............. Actual Time & Expense not -to -exceed $10,000
The cost for Phases 3 and 4 are totally under the control of the City. I have estimated the
above "not -to -exceed" amounts based on the most that I can imagine the City needing.
However, I expect that the actual amount will be less than my estimate.
Time & Expense
Expenses would include airfare, rental car expenses, transportation to/from airport, airport
parking, bridge tolls, room, meals, report printing & shipping, and City business license if
it is not waived. Room expense would be charged for days requiring morning meetings or
evening meetings.
Time would be billed at $600 for a half-day (4 %Z hours or less) and $1,000 for a full-day
(more than 4 Y2 hours).
These prices and the Proposal are good until May 31, 2002.
Project Staff
Our professional qualifications will be provided upon request.
RickKerrner,CPA, Piesident, will direct all of the work, using one or more of the following:
0-wen-0-Olsen,_CPA�VLc_e_- Pses[dent
Eric Johnson.P-rincipal
Update Proposal for City of San Rafael
RCS looks forward to again being of service to the City of San Rafael.
Sincerely,
Rick Kermer, CPA
President
Page 3