HomeMy WebLinkAbout2/5/2014 - STAFF REPORTS - 2.O. 4�EppLM S''9
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CQI1FORe�P CITY COUNCIL STAFF REPORT
DATE: February 5, 2014 CONSENT CALENDAR
SUBJECT: APPROVE AN AGREEMENT WITH CAPITAL ACCOUNTING
PARTNERS, LLC TO PROVIDE STUDIES TO CALCULATE THE COST
OF USER FEES AND PREPARE AN INDIRECT COST ALLOCATION
PLAN.
FROM: David H. Ready, City Manager
BY: Finance Department
SUMMARY
As fiscal limitations are imposed on local governments, it is becoming increasingly
important that the City fully recover the actual cost of certain types of services that are
provided to the community. This is handled through the City's Comprehensive Fee
Schedule, which establishes fees for various services, and through an Indirect Cost
Allocation Plan, which distributes the full cost of operating departments, divisions,
programs and services. In order to properly identify and distribute costs so that the fees
that are charged are well-documented, staff is recommending that a comprehensive
User Fee Study and an Indirect Cost Allocation Plan be performed.
RECOMMENDATION:
1. Approve an Agreement with Capital Accounting Partners, Inc., in an amount not-
to-exceed $52,330, to prepare a User Fee Study and an Indirect Cost Allocation
Plan for the City's various departments.
2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
FISCAL YEAR 2013-14 FOR A USER FEE STUDY AND COST ALLOCATION
PLAN."
3. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
A user fee, or service fee, is a payment made by an individual for a service that
primarily benefits the individual. The City's Comprehensive Fee Schedule has a myriad
of fees ranging from parks and recreation fees to facility use charges to building,
planning, and engineering fees. By law, these fees may not exceed the reasonable cost
of the service for which they are collected.
ITEM NO.
City Council Staff Report
February 5, 2014-- Page 2
User Fees Study
New fees have been set on a case-by-case basis and periodically increased over the
years as labor costs associated with a particular service have increased. Because most
other fees are not adjusted annually, the fees currently being charged may not be
recovering the City's actual cost of performing the services provided. Both labor cost
increases and the increased complexity in the areas of Building, Engineering and
Planning, have likely increased the costs of performing these services. Therefore, staff
is recommending that a comprehensive User Fee Study be performed.
The proposed contract with Capital Accounting Partners estimates they will utilize an
estimated 184 hours to prepare and complete a User Fee Study and 92 hours to
prepare and complete an Indirect Cost Allocation Plan. Included in proposal are plans
for numerous meetings as necessary: one-on-one interviews of the various City staff,
meetings with a subcommittee of the City Council if requested by the City Council,
meetings with stakeholders such as the Building Industry Association, local contractors,
business representatives, and vendors, and one or more meetings with the full City
Council to present their findings and recommendations.
The Procurement Division and Finance Department staff worked closely together to
develop the formal Request for Proposals (RFP) 08-14 to solicit proposals from qualified
firms to provide studies to calculate the cost of user fees and prepare an indirect cost
allocation plan. The Procurement & Contracting Division conducted Request for
Proposals that was issued on October 23rd, advertised on October 25th and November
1 St, posted to the city's website, and sent to 28 potential vendors. Seven (7) prospective
firms registered for the RFP, and five firms submitted proposals by the deadline:
Capital Accounting Partners, LLC, Matrix, MGT, NBS, and Willdan.
An Evaluation Committee consisting of City Staff (Finance Director, Planning Director,
Assistant City Engineer) carefully evaluated the proposals. After taking into
consideration the qualifications, experience, and their base cost proposal of $45,280
(the third lowest of the five submitted), the Evaluation Committee selected Capital
Accounting Partners, LLC as the highest ranked company.
The two principle consultants at Capital Accounting Partners, LLC who will be working
on this project have a combined 27 years of experience in the area of preparing user
fee studies and cost allocation plans. Referenced clients for the firm include 35
California cities (including Indian Wells, Beverly Hills, Dublin, and Campbell) and 4
California Counties.
FISCAL IMPACT:
Upon approval of the recommendations of this agenda item, a budget amendment in the
amount of $52,330 will appropriate funds from the fund balance into account
001-1300-43200.
Once the Comprehensive Fee Schedule study has been completed and recommended
changes to the schedule have been approved by the City Council and implemented no
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City Council Staff Report
February 5, 2014 --Page 3
User Fees Study
earlier than sixty (60) days later, it is expected that revenues from various fee types will
more closely offset the costs of the various services being performed.
GEO�F RIEY'S. KIEHL MES THOMPSON
Director of Finance / City Treasurer Chief of Staff/ City Clerk
7--
DAVID H. READY, Citpl anager
Attachment:
Contract Services Agreement
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PROFESSIONAL SERVICES AGREEMENT
COMPREHENSIVE FEE AND RATE STUDY
THIS PROFESSIONAL SERVICES AGREEMENT ( "Agreement") is entered into, and effective on
2014, between the CITY OF PALM SPRINGS, a California charter city and municipal
corporation, ("City") and CAPITAL ACCOUNTING PARTNERS, a Limited Liability Company ("Consultant"),
City and Consultant are individually referred to as"Party"and are collectively referred to as the"Parties".
RECITALS
A. City has determined that there is a need for a Comprehensive Fee and Rate Study for the City of
Palm Springs project("Project").
B. Consultant has submitted to City a proposal to provide a comprehensive review of the City's fee
and rated structure for the Project under the terms of this Agreement.
C. Consultant is qualified by virtue of its experience, training, education, reputation, and expertise to
provide these services and has agreed to provide such services as provided in this Agreement.
D. City desires to retain Consultant to provide such professional services.
In consideration of these promises and mutual obligations, covenants, and conditions, the Parties agree as
follows:
AGREEMENT
1. SERVICES OF CONSULTANT
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement,
Consultant agrees to perform the professional services set forth in the Scope of Services described in Exhibit "A"
(the "Services"or"Work") , which is attached and incorporated by reference. As a material inducement to the City
entering into this Agreement,Consultant represents and warrants that Consultant is a provider of first class work and
professional services and that Consultant is experienced in performing the Work and Services contemplated and, in
light of such status and experience, Consultant covenants that it shall follow the highest professional standards in
performing the Work and Services required in this Agreement. For purposes of this Agreement, the phrase "highest
professional standards' shall mean those standards of practice recognized as high quality among well-qualified and
experienced professionals performing similar work under similar circumstances.
1.2 Contract Documents. The Agreement between the Parties shall consist of the following: (1)this
Agreement;(2)the Scope of Services;(3)the City's Request for Proposals;and,(4)the Consultant's signed,original
proposal submitted to the City ("Consultant's Proposal"), (collectively referred to as the "Contract Documents").
The City's Request for Proposals and the Consultant's Proposal, which are both attached as Exhibits `B" and "C",
respectively, are incorporated by reference and are made a part of this Agreement. The Scope of Services shall
include the Consultant's Proposal. All provisions of the Scope of Services,the City's Request for Proposals and the
Consultant's Proposal shall be binding on the Parties. Should any conflict or inconsistency exist in the Contract
Documents,the conflict or inconsistency shall be resolved by applying the provisions in the highest priority
document, which shall be determined in the following order of priority: (I")the provisions of the Scope of
Services(Exhibit "A"); (2"d)the provisions of the City's Request for Proposal (Exhibit "B"); (3rd) the terms of this
Agreement; and,(4")the provisions of the Consultant's Proposal (Exhibit"C").
1.3 Compliance with Law. Consultant warrants that all Services rendered shall be performed in
accordance with all applicable federal, state, and local laws, statutes, ordinances lawful orders, rules, and
regulations.
1.4 Licenses,Permits.Fees,and Assessments. Consultant represents and warrants to City that it has
obtained all licenses,permits,qualifications,and approvals of whatever nature that are legally required to practice its
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profession and perform the Work and Services required by this Agreement. Consultant represents and warrants to
City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement,
any license, permit, qualification, or approval that is legally required for Consultant to perform the Work and
Services under this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments, and
taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the
Consultant's performance of the Work and Services required by this Agreement. Consultant shall indemnify,
defend, and hold harmless City against any such fees, assessments, taxes penalties, or interest levied, assessed, or
imposed against City to the fullest extent permitted by law.
1.5 Familiarity with Work. By executing this Agreement, Consultant warrants that Consultant (a)
has thoroughly investigated and considered the Scope of Services to be performed,(b) has carefully considered how
the Services should be performed, and (c) fully understands the facilities, difficulties, and restrictions attending
performance of the Services under this Agreement. If the Services involve work upon any site, Consultant warrants
that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing,
prior to commencement of any Services. Should the Consultant discover any latent or unknown conditions that will
materially affect the performance of the Services, Consultant shall immediately inform the City of such fact and
shall not proceed except at Consultant's risk until written instructions are received from the City.
1.6 Care of Work. Consultant shall adopt reasonable methods during the term of the Agreement to
furnish continuous protection to the Work and the equipment, materials, papers, documents, plans, studies, and/or
other components to prevent losses or damages. Consultant shall be responsible for all such damages,to persons or
property, until acceptance of the Work by the City, except such losses or damages as may be caused by City's own
negligence.
1.7 Further Responsibilities of Parties. Parties agree to use reasonable care and diligence to
perform their respective obligations under this Agreement. Parties agree to act in good faith to execute all
instruments, prepare all documents,and take all actions as may be reasonably necessary to carry out the purposes of
this Agreement.
1.8 Additional Services. City shall have the right at any time during the performance of the Services,
without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make
changes by altering, adding to, or deducting from such Work. No such extra work may be undertaken unless a
written order is first given by the City to the Consultant, incorporating any adjustment in (i)the Maximum Contract
Amount, as defined below, and/or(ii)the time to perform this Agreement. Any adjustments must also be approved
in writing by the Consultant. Any increase in compensation of up to twenty-five percent (25%) of the Maximum
Contract Amount or$25,000,whichever is less,or in the time to perform of up to thirty(30)days,may be approved
by the City Manager, or his designee, as may be needed to perform any extra work. Any greater increases,
occurring either separately or cumulatively, must be approved by the Palm Springs City Council. It is expressly
understood by Consultant that the provisions of this section shall not apply to the services specifically set forth or
reasonably contemplated within the Scope of Services.
2. COMPENSATION
2.1 Maximum Contract Amount. For the Services rendered under this Agreement, Consultant shall
be compensated by City in accordance with the Schedule of Compensation, which is attached as Exhibit "D" and
incorporated in this Agreement by reference. Compensation shall not exceed the maximum contract amount of
FIFTY TWO THOUSAND THREE HUNDRED THIRTY Dollars, ($52,330.00) ("Maximum Contract Amount"),
except as may be provided under Section 1.8. The method of compensation shall be as set forth in Exhibit "D."
Compensation for necessary expenditures for reproduction costs, telephone expenses, and transportation expenses
must be approved in advance by the Contract Officer designated under Section 4.2 and will only be approved if such
expenses are also specified in the Schedule of Compensation. The Maximum Contract Amount shall include the
attendance of Consultant at all Project meetings reasonably deemed necessary by the City. Consultant shall not be
entitled to any increase in the Maximum Contract Amount for attending these meetings. Consultant accepts the risk
that the services identified in the Scope of Services may be more costly and/or time-consuming than Consultant
anticipates, that Consultant shall not be entitled to additional compensation, and that the provisions of Section 1.8
shall not be applicable to the services identified in the Scope of Services. The maximum amount of city's payment
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obligation under this section is the amount specified in this Agreement. If the City's maximum payment obligation
is reached before the Consultant's Services under this Agreement are completed, Consultant shall complete the
Work and City shall not be liable for payment beyond the Maximum Contract Amount.
2.2. Method of Payment. Unless another method of payment is specified in the Schedule of
Compensation(Exhibit"D"), in any month in which Consultant wishes to receive payment, Consultant shall submit
to the City an invoice for services rendered prior to the date of the invoice. The invoice shall be in a form approved
by the City's Finance Director and must be submitted no later than the tenth(10) working day of such month. Such
requests shall be based upon the amount and value of the services performed by Consultant and accompanied by
such reporting data including an itemized breakdown of all costs incurred and tasks performed during the period
covered by the invoice, as may be required by the City. City shall use reasonable efforts to make payments to
Consultant within forty-five (45) days after receipt of the invoice or as soon as is reasonably practical. There shall
be a maximum of one payment per month.
2.3 Channes in Scope. In the event any change or changes in the Scope of Services is requested by
City, Parties shall execute a written amendment to this Agreement, specifying all proposed amendments, including,
but not limited to,any additional fees. An amendment may be entered into:
A. To provide for revisions or modifications to documents, work product, or work, when
required by the enactment or revision of any subsequent law;or
A. To provide for additional services not included in this Agreement or not customarily
furnished in accordance with generally accepted practice in Consultant's profession.
2.4 Appropriations This Agreement is subject to and contingent upoo funds being appropriated by
the City Council for each fiscal year covered by the Agreement. If such appropriations are not made, this
Agreement shall automatically terminate without penalty to the City.
3. SCHEDULE OF PERFORMANCE
3.1 Time of Essence. Time is of the essence in the performance of this Agreement. The time for
completion of the services to be performed by Consultant is an essential condition of this Agreement. Consultant
shall prosecute regularly and diligently the Work of this Agreement according to the agreed upon attached Schedule
of Performance(Exhibit"E"), incorporated by reference.
3.2 Schedule of Performance. Consultant shall commence the Services under this Agreement upon
receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the
Schedule of Performance. When requested by Consultant,extensions to the time period(s)specified in the Schedule
of Performance may be approved in writing by the Contract Officer, but such extensions shall not exceed one
hundred eighty(180)days cumulatively;however,the City shall not be obligated to grant such an extension.
3.3 Force Maieure. The time period(s) specified in the Schedule of Performance for performance of
the Services rendered under this Agreement shall be extended because of any delays due to unforeseeable causes
beyond the control and without the fault or negligence of the Consultant(financial inability excepted) if Consultant,
within ten(10)days of the commencement of such delay,notifies the Contract Officer in writing of the causes of the
delay. Unforeseeable causes include, but are not limited to, acts of God or of the public enemy, unusually severe
weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, and/or
acts of any governmental agency, including the City. The City Manager shall ascertain the facts and the extent of
delay, and extend the time for performing the Services for the period of the enforced delay when and if in the
judgment of the City Manager such delay is justified. The City Manager's determination shall be final and
conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against
the City for any delay in the performance of this Agreement, however caused, Consultant's sole remedy being
extension of the Agreement under this section.
3.4 Term. Unless earlier terminated under this Agreement, this Agreement shall commence upon the
effective date of this Agreement and continue in full force and effect until completion of the Services. However,the
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term shall not exceed one (1) year from the commencement date, except as otherwise provided in the Schedule of
Performance described in Section 3.2 above. Any extension must be through mutual written agreement of the
Parties.
3.5 Termination Prior to Expiration of Term. City may terminate this Agreement for its
convenience at any time, without cause, in whole or in part, upon giving Consultant thirty (30) days written notice.
Where termination is due to the fault of Consultant and constitutes an immediate danger to health, safety, and
general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon such notice,
City shall pay Consultant for Services performed through the date of termination. Upon receipt of such notice,
Consultant shall immediately cease all work under this Agreement, unless stated otherwise in the notice or by
written authorization of the Contract Officer. After such notice, Consultant shall have no further claims against the
City under this Agreement. Upon termination of the Agreement under this section, Consultant shall submit to the
City an invoice for work and services performed prior to the date of termination. Consultant may terminate this
Agreement, with or without cause, upon sixty (60) days written notice to the City, except that where termination is
due to material default by the City,the period of notice may be such shorter time as the Consultant may determine.
4. COORDINATION OF WORK
4.1 Representative of Consultant. The following principal of Consultant is designated as being the
principal and representative of Consultant authorized to act in its behalf and make all decisions with respect to the li
Services to be performed under this Agreement: Nicolie Cass Lettini,MBA, Partner. It is expressly understood that
the experience, knowledge, education, capability,expertise, and reputation of the foregoing principal is a substantial
inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the
term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise
the services performed hereunder. The foregoing principal may not be changed by Consultant without prior written
approval of the Contract Officer.
4.2 Contract Officer. The Contract Officer shall be the City Manager or his/her designee ("Contract
Officer"). Consultant shall be responsible for keeping the Contract Officer fully informed of the progress of the
performance of the services. Consultant shall refer any decisions that must be made by City to the Contract Officer.
Unless otherwise specified,any approval of City shall mean the approval of the Contract Officer.
4.3 Prohibition Aeainst Subcontracting or Assienments. The experience, knowledge, capability,
expertise,and reputation of Consultant, its principals and employees, were a substantial inducement for City to enter
into this Agreement. Therefore, Consultant shall not assign full or partial performance of this Agreement, nor any
monies due, voluntarily or by operation of law, without the prior written consent of City. Consultant shall not
contract with any other entity to perform the Services required under this Agreement without the prior written
consent of City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be
responsible to City for the acts and omissions of its subcontractor(s) in the same manner as it is for persons directly
employed. Nothing contained in this Agreement shall create any contractual relationships between any
subcontractor and City. All persons engaged in the Work will be considered employees of Consultant. City will
deal directly with and will make all payments to Consultant. In addition, neither this Agreement nor any interest in
this Agreement may be transferred, assigned,conveyed, hypothecated,or encumbered voluntarily or by operation of
law, whether for the benefit of creditors or otherwise, without the prior written consent of City. Transfers restricted
in this Agreement shall include the transfer to any person or group of persons acting in concert of more than twenty
five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a
cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this
Agreement shall be void. No approved transfer shall release Consultant or any surety of Consultant from any
liability under this Agreement without the express written consent of City.
4.4 Independent Contractor. The legal relationship between the Parties is that of an independent
contractor,and nothing shall be deemed to make Consultant a City employee.
A. During the performance of this Agreement, Consultant and its officers, employees, and
agents shall act in an independent capacity and shall not act or represent themselves as City officers or employees.
The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under
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Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have
control over the conduct of Consultant or any of its officers, employees, or agents, except as set forth in this
Agreement. Consultant, its officers, employees, or agents shall not maintain an office or any other type of fixed
business location at City's offices. City shall have no voice in the selection, discharge, supervision, or control of
Consultant's employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of
service. Consultant shall pay all wages, salaries, and other amounts due its employees in connection with this
Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to
social security income tax withholding, unemployment compensation, workers' compensation, and other similar
matters. City shall not in any way or for any purpose be deemed to be a partner of Consultant in its business or
otherwise a joint venturer or a member of anyjoint enterprise with Consultant.
B. Consultant shall not have any authority to bind City in any manner. This includes the
power to incur any debt,obligation,or liability against City.
C. No City benefits shall be available to Consultant, its officers, employees, or agents in
connection with any performance under this Agreement. Except for professional fees paid to Consultant as provided
for in this Agreement, City shall not pay salaries, wages,or other compensation to Consultant for the performance of
Services under this Agreement. City shall not be liable for compensation or indemnification to Consultant, its
officers, employees,or agents, for injury or sickness arising out of performing Services. If for any reason any court
or governmental agency determines that the City has financial obligations, other than under Section 2 and
Subsection 1.8 in this Agreement, of any nature relating to salary, taxes, or benefits of Consultant's officers,
employees, servants, representatives, subcontractors, or agents, Consultant shall indemnify City for all such
financial obligations.
5. INSURANCE
5.1 Types of Insurance. Consultant shall procure and maintain, at its sole cost and expense, the
insurance described below. The insurance shall be for the duration of this Agreement and includes any extensions,
unless otherwise specified in this Agreement. The insurance shall be procured in a form and content satisfactory to
City. The insurance shall apply against claims which may arise from the Consultant's performance of Work under
this Agreement, including Consultant's agents, representatives, or employees. In the event the City Manager
determines that the Work or Services to be performed under this Agreement creates an increased or decreased risk of
loss to the City,the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly
upon receipt of written notice from the City Manager or his designee. Consultant shall immediately substitute any
insurer whose A.M. Best rating drops below the levels specified in this Agreement. Except as otherwise authorized
below for professional liability (errors and omissions) insurance, all insurance provided under this Agreement shall
be on an occurrence basis. The minimum amount of insurance required shall be as follows:
A. Errors and Omissions Insurance. Consultant shall obtain and maintain in full force and
effect throughout the term of this Agreement, standard industry form professional liability (errors and omissions)
insurance coverage in an amount of not less than one million dollars($1,000,000.00)per occurrence and two-million
dollars($2,000,000.00)annual aggregate, in accordance with the provisions of this section.
(1) Consultant shall either: (a)certify in writing to the City that Consultant is unaware of
any professional liability claims made against Consultant and is unaware of any facts which may lead to such a
claim against Consultant; or(b) if Consultant does not provide the certification under (a), Consultant shall procure
from the professional liability insurer an endorsement providing that the required limits of the policy shall apply
separately to claims arising from errors and omissions in the rendition of services under this Agreement.
(2) If the policy of insurance is written on a "claims made" basis, the policy shall be
continued in full force and effect at all times during the term of this Agreement, and for a period of three (3)years
from the date of the completion of the Services provided hereunder. In the event of termination of the policy during
this period, Consultant shall obtain continuing insurance coverage for the prior acts or omissions of Consultant
during the course of performing Services under the terms of this Agreement. The coverage shall be evidenced by
either a new policy evidencing no gap in coverage, or by obtaining separate extended "tail" coverage with the
present or new carrier or other insurance arrangements providing for complete coverage, either of which shall be
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subject to the written approval by the City Manager.
(3) In the event the policy of insurance is written on an `occurrence" basis, the policy
shall be continued in full force and effect during the term of this Agreement, or until completion of the Services
provided for in this Agreement, whichever is later. In the event of termination of the policy during this period, new
coverage shall immediately be obtained to ensure coverage during the entire course of performing the Services
under the terms of this Agreement.
B. Workers' Compensation Insurance. Consultant shall obtain and maintain, in full force
and effect throughout the term of this Agreement, workers' compensation insurance in at least the minimum
statutory amounts, and in compliance with all other statutory requirements, as required by the State of California.
Consultant agrees to waive and obtain endorsements from its workers' compensation insurer waiving subrogation
rights under its workers' compensation insurance policy against the City and to require each of its subcontractors, if
any, to do likewise under their workers' compensation insurance policies. If Consultant has no employees,
Consultant shall complete the City's Request for Waiver of Workers'Compensation Insurance Requirement form.
C. Commercial General Liability Insurance. Consultant shall obtain and maintain, in full
force and effect throughout the term of this Agreement,a policy of commercial general liability insurance written on
a per occurrence basis with a combined single limit of at least one million dollars ($1,000,000.00) and two million
dollars($2,000,000.00) general aggregate for bodily injury and property damage including coverages for contractual
liability, personal injury,independent contractors,broad forth property damage,products and completed operations.
D. Business Automobile Insurance. Consultant shall obtain and maintain, in full force and
effect throughout the term of this Agreement, a policy of business automobile liability insurance written on a per
occurrence basis with a single limit liability in the amount of one million dollars ($1,000,000.00) bodily injury and
property damage. The policy shall include coverage for owned,non-owned, leased, and hired cars.
E. Employer Liability insurance. Consultant shall obtain and maintain, in full force and
effect throughout the term of this Agreement, a policy of employer liability insurance written on a per occurrence
basis with a policy limit of at least one million dollars($1,000,000.00)for bodily injury or disease.
5.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be
declared to and approved by the City Manager or his/her designee prior to commencing any work or services under
this Agreement. Consultant guarantees payment of all deductibles and self-insured retentions. City reserves the
right to reject deductibles or self-insured retentions in excess of$10,000, and the City Manager or his/her designee
may require evidence of pending claims and claims history as well as evidence of Consultant's ability to pay claims
for all deductible amounts and self-insured retentions proposed in excess of$10,000,
5.3 Other Insurance Requirements. The following provisions shall apply to the insurance policies
required of Consultant under this Agreement:
5.3.1 For any claims related to this Agreement, Consultant's coverage shall be primary
insurance with respect to the City and its officers,council members,officials,employees,
agents, and volunteers. Any insurance or self-insurance maintained by the City and its
officers, council members,officials, employees, agents, and volunteers shall be in excess
of Consultant's insurance and shall not contribute with it.
5.3.2 Any failure to comply with reporting or other provisions of the policies, including
breaches of warranties, shall not affect coverage provided to City and its officers, council
members,officials,employees,agents,and volunteers.
5.3.3 All insurance coverage and limits provided by Consultant and available or applicable to
this Agreement are intended to apply to each insured, including additional insureds,
against whom a claim is made or suit is brought to the full extent of the policies. Nothing
contained in this Agreement or any other agreement relating to the City or its operations
shall limit the application of such insurance coverage.
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5.3.4 No required insurance coverages may include any limiting endorsement which
substantially impairs the coverages se[ forth in this Agreement_(e.g., elimination of
contractual liability or reduction of discovery period), unless the endorsement has first
been submitted to the City Manager and approved in writing
5.3.5 Consultant agrees to require its insurer to modify insurance endorsements to delete any
exculpatory wording stating that failure of the insurer to mail written notice of
cancellation imposes no obligation, or that any party will "endeavor" (as opposed to
being required) to comply with the requirements of the endorsements. Certificates of
insurance will not be accepted in lieu of required endorsements, and submittal of
certificates without required endorsements may delay commencement of the Project. It is
Consultant's obligation to ensure timely compliance with all insurance submittal
requirements as provided in this Agreement.
5.3.6 Consultant agrees to ensure that subcontractors, and any other parties involved with the
Project who are brought onto or involved in the Project by Consultant, provide the same
minimum insurance coverage required of Consultant. Consultant agrees to monitor and
review all such coverage and assumes all responsibility for ensuring that such coverage is
provided in conformity with the requirements of this section. Consultant agrees that upon
request, all agreements with subcontractors and others engaged in the Project will be
submitted to the City for review.
5.3.7 Consultant acknowledges and agrees that any actual or alleged failure on the part of the
City to inform Consultant of non-compliance with any insurance requirement in no way
imposes any additional obligations on the City nor does it waive any rights in this or any
other regard.
5.3.8 Consultant shall provide proof that policies of insurance required in this Agreement,
expiring during the term of this Agreement, have been renewed or replaced with other
policies providing at least the same coverage. Proof that such coverage has been ordered
shall be submitted prior to expiration. Endorsements as required in this Agreement
applicable to the renewing or new coverage shall be provided to City no later than ten
(10)days prior to expiration of the lapsing coverage.
5.3.9 Requirements of specific insurance coverage features or limits contained in this section
are not intended as limitations on coverage, limits, or other requirements, or as a waiver
of any coverage normally provided by any given policy. Specific reference to a given
coverage feature is for purposes of clarification only as it pertains to a given issue, and is
not intended by any party or insured to be limiting or all-inclusive.
5.3.10 The requirements in this section supersede all other sections and provisions of this
Agreement to the extent that any other section or provision conflicts with or impair the
provisions of this section.
5.3.11 Consultant agrees to provide immediate notice to City of any claim or loss against
Consultant arising out of the Work performed under this Agreement and for any other
claim or loss which may reduce the insurance available to pay claims arising out of this
Agreement. City assumes no obligation or liability by such notice, but has the right (but
not the duty) to monitor the handling of any such claim or claims if they are likely to
involve City,or to reduce or dilute insurance available for payment of potential claims.
5.3.12 Consultant agrees that the provisions of this section shall not be construed as limiting in
any way the extent to which the Consultant may be held responsible for the payment of
damages resulting from the Consultant's activities or the activities of any person or
person for which the Consultant is otherwise responsible.
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5.4 Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized
insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State
of California with an A.M. Best's Key Rating of B++, Class VII, or better, unless such requirements are waived in
writing by the City Manager or his designee due to unique circumstances.
5.5 Verification of Coverage. Consultant shall furnish City with both certificates of insurance and
endorsements, including additional insured endorsements,affecting all of the coverages required by this Agreement.
The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its
behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the
right to require Consultant's insurers to provide complete, certified copies of all required insurance policies at any
time. Additional insured endorsements are not required for Errors and Omissions and Workers' Compensation
policies.
Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability
Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage
with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:
1. "The City of Palm Springs, its officials, employees, and agents are named as an additional
insured... " ("as respects City of Palm Springs Conn-act Na"or 'for any and all work performed with the City"
may be included in this statement).
2. "This insurance is primary and non-contributory over any insurance or self-insurance the City
may have..." ("as respects City of Palm Springs Contract No._" or'for any and all work performed with the City"
may be included in this statement).
3. "Should any of the above described policies be canceled before the expiration date thereof, the
issuing company will mail 30 days written notice to the Certificate Holder named."Language such as,"endeavor to"
mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its
agents or representative" is not acceptable and must be crossed out.
4. Both the Workers' Compensation and Employers' Liability policies shall contain the insurer's
waiver of subrogation in favor of City,its elected officials,officers,employees, agents,and volunteers.
In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the
policies. All certificates of insurance and endorsements are to be received and approved by the City before work
commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether
that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the
commencement of work shall not waive the Consultant's obligation to provide them.
6. INDEMNIFICATION
6.1 Indemnification and Reimbursement. To the fullest extent permitted by law, Consultant
shall defend(at Consultant's sole cost and expense), indemnify, protect, and hold harmless City, its elected officials,
officers, employees, agents, and volunteers (collectively the "Indemnified Parties"), from and against any and all
liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages,
demands, orders, penalties, and expenses including legal costs and attorney fees (collectively "Claims"), including
but not limited to Claims arising from injuries to or death of persons(Consultant's employees included), for damage
to property, including property owned by City, from any violation of any federal, state, or local law or ordinance,
and from errors and omissions committed by Consultant, its officers, employees, representatives, and agents, that
arise out of or relate to Consultant's performance under this Agreement. This indemnification clause excludes
Claims arising from the sole negligence or willful misconduct of the City, its elected officials, officers, employees,
agents, and volunteers. Under no circumstances shall the insurance requirements and limits set forth in this
Agreement be construed to limit Consultant's indemnification obligation or other liability tinder this Agreement.
Consultant's indemnification obligation shall survive the expiration or earlier termination of this Agreement until all
actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable
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statute of limitations or, if an action is timely filed, until such action is final. This provision is intended for the
benefit of third party Indemnified Parties not otherwise a party to this Agreement.
6.2 Desipn Professional Services Indemnification and Reimbursement. If the Agreement is
determined to be a "design professional services agreement" and Consultant is a "design professional" under
California Civil Code Section 2782.8,then:
A. To the fullest extent permitted by law, Consultant shall indemnify, defend (at
Consultant's sole cost and expense), protect and hold harmless City and its elected officials, officers, employees,
agents and volunteers and all other public agencies whose approval of the project is required, (individually
"Indemnified Parry"; collectively"Indemnified Parties")against any and all liabilities, claims,judgments,arbitration
awards, settlements, costs, demands, orders and penalties (collectively "Claims"), including but not limited to
Claims arising from injuries or death of persons (Consultant's employees included) and damage to property, which
Claims arise out of, pertain to,or are related to the negligence, recklessness or willful misconduct of Consultant, its
agents, employees, or subcontractors, or arise from Consultant's negligent, reckless or willful performance of or
failure to perform any term, provision, covenant or condition of this Agreement ("Indemnified Claims"), but
Consultant's liability for Indemnified Claims shall be reduced to the extent such Claims arise from the negligence,
recklessness or willful misconduct of the City and its elected officials,officers,employees, agents and volunteers.
B. The Consultant shall require all non-design-professional sub-contractors, used or sub-
contracted by Consultant to perform the Services or Work required under this Agreement, to execute an
Indemnification Agreement adopting the indemnity provisions in sub-section 6.1 in favor of the Indemnified Parties.
In addition, Consultant shall require all non-design-professional sub-contractors, used or sub-contracted by
Consultant to perform the Services or Work required under this Agreement, to obtain insurance that is consistent
with the Insurance provisions as set forth in this Agreement, as well as any other insurance that may be required by
Contract Officer.
7. REPORTS AND RECORDS
7.1 Accountine Records. Consultant shall keep complete,accurate,and detailed accounts of all time,
costs, expenses, and expenditures pertaining in any way to this Agreement. Consultant shall keep such books and
records as shall be necessary to properly perform the Services required by this Agreement and to enable the Contract
Officer to evaluate the performance of such Services. The Contract Officer shall have full and free access to such
books and records at all reasonable times, including the right to inspect, copy, audit, and make records and
transcripts from such records.
7.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports
concerning the performance of the Services required by this Agreement, or as the Contract Officer shall require.
Consultant acknowledges that the City is greatly concerned about the cost of the Work and Services to be performed
under this Agreement. For this reason, Consultant agrees that Consultant shall promptly notify the Contract Officer
the estimated increased or decreased cost if Consultant becomes aware of any facts, circumstances, techniques, or
events that may or will materially increase or decrease the cost of the contemplated Work or Services. If Consultant
is providing design services, Consultant shall promptly notify the Contract Officer the estimated increased or
decreased cost for the project being designed if Consultant becomes aware of any facts, circumstances, techniques,
or events that may or will materially increase or decrease the cost of the design services.
7.3 Ownership of Documents. All drawings, specifications, reports, records, documents,
memoranda, correspondence, computations, and other materials prepared by Consultant, its employees,
subcontractors,and agents in the performance of this Agreement shall be the property of City and shall be promptly
delivered to City upon request of the Contract Officer or upon the termination of this Agreement. Consultant shall
have no claim for further employment or additional compensation as a result of the exercise by City of its full rights
of ownership of the documents and materials. Any use of such completed documents for other projects and/or use
of incomplete documents without specific written authorization by the Consultant will be at the City's sole risk and
without liability to Consultant, and the City shall indemnify the Consultant for all resulting damages. Consultant
may retain copies of such documents for their own use. Consultant shall have an unrestricted right to use the
concepts embodied tin this Agreement. Consultant shall ensure that all its subcontractors shall provide for
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assignment to City of any documents or materials prepared by them. In the event Consultant fails to secure such
assignment,Consultant shall indemnify City for all resulting damages.
7.4 Release of Documents. All drawings, specifications, reports, records, documents, and other
materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly
without the prior written approval of the Contract Officer. All information gained by Consultant in the performance
of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior
written authorization.
7.5 Audit and Inspection of Records. After receipt of reasonable notice and during the regular
business hours of City, Consultant shall provide City, or other agents of City, such access to Consultant's books,
records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all
accounting books, records, work data, documents, and activities directly related to Consultant's performance under
this Agreement. Consultant shall maintain such books, records, data, and documents in accordance with generally
accepted accounting principles and shall clearly identify and make such items readily accessible to such parties
during the term of this Agreement and for a period of three (3) years from the date of final payment by City
hereunder.
8. ENFORCEMENT OF AGREEMENT
8.1 California Law and Venue. This Agreement shall be construed and interpreted both as to
validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions
concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the
Superior Court of the County of Riverside, State of California, or any other appropriate court in such County, and
Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.
8.2 Interpretation. This Agreement shall be construed as a whole according to its fair langpage and
common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual
and the result of negotiation between the Parties. Accordingly, any rule of construction of contracts (including,
without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting
party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections
and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to
limit,expand,or define the contents of the respective sections or paragraphs.
8.3 Default of Consultant. Consultant's failure to comply with any provision of this Agreement shall
constitute a default.
A. If the City Manager, or his designee, determines that Consultant is in default in the
performance of any of the terms or conditions of this Agreement, he/she shall notify Consultant in writing of such
default. Consultant shall have ten (10) days, or such longer period as City may designate, to cure the default by
rendering satisfactory performance. In the event Consultant fails to cure its default within such period of time, City
shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without
further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this
Agreement. Consultant shall be liable for all reasonable costs incurred by City as a result of such default.
Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in
the event that the dispute is not cured, provided that nothing shall limit City's right to terminate this Agreement
without cause under Section 3.5.
B. If termination is due to the failure of the Consultant to fulfill its obligations under this
Agreement, City may, after compliance with the provisions of Section 8.3A, take over the work and prosecute the
same to completion by contract or otherwise. The Consultant shall be liable to the extent that the total cost for
completion of the Services required hereunder exceeds the Maximum Contract Amount(provided that the City shall
use reasonable efforts to mitigate such damages). The City may withhold any payments to the Consultant for the
purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure
to withhold payments to Consultant shall not limit Consultant's liability for completion of the Services as provided
in this Agreement.
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8.4 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and
signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any
waiver by the Parties of any default or breach of any covenant,condition,or term contained in this Agreement, shall
not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to
require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this
Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from
enforcing the full provisions.
8.5 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly
declared to be exclusive in this Agreement,the rights and remedies of the Parties are cumulative and the exercise by
either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different
times,of any other rights or remedies for the same default or any other default by the other Party.
8.6 Leeal Action. In addition to any other rights or remedies, either Party may take legal action, in
law or in equity,to cure,correct,remedy or recover damages for any default,to compel specific performance of this
Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of
this Agreement.
8.7 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement
results in litigation or any non judicial proceeding, the prevailing Party shall be entitled, in addition to such other
relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses. These include
but are not limited to reasonable attorney fees, expert consultant fees, court costs and all fees, costs, and expenses
incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law,
in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty(30)
days of the date set for trial or hearing,the other Party shall be deemed to be the prevailing Party in such litigation or
proceeding.
9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
9.1 Non-liability of Citv Officers and Employees. No officer or employee of the City shall be
personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by the City or
for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the
terms of this Agreement.
9.2 Conflict of Interest. No officer or employee of the City shall have any direct or indirect financial
interest in this Agreement nor shall any such officer or employee participate in any decision relating to the
Agreement which effects their financial interest or the financial interest of any corporation, partnership, or
association in which he/she is, directly or indirectly, interested in violation of any state statute or regulation.
Consultant warrants that Consultant has not paid or given, and will not pay or give, any third party any money or
other consideration in exchange for obtaining this Agreement.
9.3 Covenant Against Discrimination. In connection with its performance under this Agreement,
Consultant shall not discriminate against any employee or applicant for employment because of race, religion,color,
sex, age, marital status, ancestry, or national origin. Consultant shall ensure that applicants are employed, and that
employees are treated during their employment, without regard to their race, religion, color, sex, age, marital status,
ancestry,or national origin. Such actions shall include, but not be limited to,the following: employment, upgrading,
demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of
compensation;and selection for training, including apprenticeship.
10. MISCELLANEOUS PROVISIONS
10.1 Patent and Copyrieht Infringement. To the fullest extent permissible under law, and in lieu of
any other warranty by City or Consultant against patent or copyright infringement,statutory or otherwise:
A. It is agreed that Consultant shall defend at its expense any claim or suit against City on
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account of any allegation that any item furnished under this Agreement, or the normal use or sale arising out of the
performance of this Agreement,infringes upon any presently existing U.S. letters patent or copyright and Consultant
shall pay all costs and damages finally awarded in any such suit or claim, provided that Consultant is promptly
notified in writing of the suit or claim and given authority, information and assistance at Consultant's expense for
the defense of same, and provided such suit or claim arises out of, pertains to, or is related to the negligence,
recklessness or willful misconduct of Consultant. However, Consultant will not indemnify City if the suit or claim
results from: (1) City's alteration of a deliverable, such that City's alteration of such deliverable created the
infringement upon any presently existing U.S. letters patent or copyright; or (2) the use of a deliverable in
combination with other material not provided by Consultant when it is such use in combination which infringes
upon an existing U.S. letters patent or copyright.
B. Consultant shall have sole control of the defense of any such claim or suit and all
negotiations for settlement in the event City fails to cooperate in the defense of any suit or claim,provided, however,
that such defense shall be at Consultant's expense. Consultant shall not be obligated to indemnify City under any
settlement that is made without Consultant's consent, which shall not be unreasonably withheld. If the use or sale of
such item is enjoined as a result of the suit or claim, Consultant,at no expense to City,shall obtain for City the right
to use and sell the item,or shall substitute an equivalent item acceptable to City and extend this patent and copyright
indemnity thereto.
10.2 Notice. Any notice, demand, request, consent, approval, or communication that either party
desires, or is required to give to the other party or any other person shall be in writing. All notices shall be
personally delivered, sent by pre-paid First Class U.S. Mail, registered or certified mail, postage prepaid, return
receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission. All notices
shall be deemed received upon the earlier of(i) the date of delivery to the address of the person to receive such
notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of
posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Any notice, request,
demand, direction, or other communication sent by facsimile must be confirmed within forty-eight (48) hours by
letter mailed or delivered. Other forms of electronic transmission such as e-mails, text messages, and instant
messages are not acceptable manners of notice required hereunder. Notices or other communications shall be
addressed as follows:
To City: City of Palm springs
Attention: City Manager&City Clerk
3200 E.Tahquitz Canyon Way
Palm springs,California 92262
Telephone: (760)323-8204
Facsimile: (760)323-8332
To Consultant: Capital Accounting Partners,LLC
3570 Buena Vista Drive
Sacramento,CA 95864
Attention:Nicolie Cass Lettini
Telephone: 916-670-0001
Facsimile: 309-404-0697
10.3 Integrated Agreement. This Agreement constitutes the entire agreement between the Parties and
supersedes all prior negotiations,arrangements, agreements, representations,and understandings, if any, made by or
among the Parties with respect to the subject matter in this Agreement.
10.4 Amendment. No amendments or other modifications of this Agreement shall be binding
unless through written agreement by all Parties.
10.5 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a
manner as to be effective and valid under applicable law. If any provision of this Agreement shall be determined to
be invalid by a final judgment or decree of a court of competent jurisdiction,such provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining
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provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the
basic benefit of their bargain or renders this Agreement meaningless.
10.5 Successors in Interest. This Agreement shall be binding upon and inure to the benefit of the
Parties' successors and assignees.
10.6 Third Party Beneficiary. Except as may be expressly provided for in this Agreement nothing
contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring. any n'ghts.
including, without limitatim any rights as a third-o�kr Ybeneficiary or otherwise, upon any entity_ or person not a
party to this Aereement
In --Recitals. The above-referenced Recitals are hereby incorporated into the Aereement as thot gh
fully set forth in this Agreement and each Party acknowledges and agrees that such Party is bound. for purposes of
this Agreement.by[he same.
10.8. Corporate Authority. Each of the undersigned represents and warrants that (i) the Party for
which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to
execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this
Agreement,the Party for which he or she is signing is formally bound to the provisions of this Agreement, and (iv)
the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which
he or she is signing is bound.
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IN WITNESS WHEREOF,the Parties have executed this Agreement as of the dates stated below.
"CITY"
City of Palm Springs
Date: By:
David H.Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Douglas C. Holland, James Thompson,
City Attorney City Clerk
APPROVED BY CITY COUNCIL:
Date: Agreement No.
Corporations require two notarized signatures. One signature must be from Chairman of Board,President,or any Vice President. The
second signature must be from the Secretary,Assistant Secretary,Treasurer,Assistant Treasurer,or Chief Financial Officer.
CONSULTANT NAME:
Check one Individual_Partnership_Corporation
Address
By By
Signature(Notarized) Signature(Notarized)
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4. 7
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
state of California 1
County of T
On before me,
H.I.Fxrl N...M ift.f n W.
personally appeared _ T._
fianplU ol5ana(f1
who proved to me on the basis of satisfactory evidence to
be Ute person(s) whose names) is/are subscribed to the
within instrument and acknowledged to me that
he/she/they executed the same in hislher/their authorized
capacity(ies), and that by histher/their signatuie(s)on the
instrument the person(s), or the entity upon behalf of j
which the person(s)acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph Is
true and correct.
WITNESS my hand and official seal.
Fyce Noinry Seal ABma Signature 9a,+rod uopry Fuhec
OPTIONAL
Through Ne intormation below is not required by law,It may prove valuable to persons rehong on the dcoument
and could pravenl fraudulent removal and raaaaehment of this Imm to amitw dcamwnf.
Description of Attached Document
Title or Type of Document:
Document Date: _ _. Number of Pages:
Signers)Other Than Named Above:
Capaclty(les)Claimed by Signer(s)
Signers Name. _._ Signer's Name:_ ...._.__._
❑ Individual 7lndividual
❑ Corporate Officer—Titte(s): ❑Corporate Officer—Titie(s):
❑ Partner—❑ Limited OGeneral 7 Partner—❑Limited ❑General
❑ Attorney in Fact ']Attorney in Fact
❑ Trustee lcp of thumb here 1 Trustee Too Of IhurM>here
❑ Guardian or Conservator 7 Guardian or Conservator
❑ Other._ ❑Other:
Signer Is Representing: Signer Is Representing:
O WeTr4papl No4ry Aupaahn•B950d Sow he.PO Box2ktt•ClpmmnM1.W BISI.iM02.wwvxNel'mnWoteinwp Bwn Mu]DT neortb:COP Td'.nesl Mtr0T6PAM
15
EXHIBIT"A"
SCOPE OF SERVICES
The scope of work consists of, but is not limited to a plan that contains the following information:
• A comprehensive review of the City's fee and rate structure with the goal of establishing a
consistent and objectively based fee and rate structure that meets the needs of the City and its
citizenry, along with meeting the various requirements set forth in state law.
• Consultant will work with selected 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.
• Consultant shall conduct a review of the documentation supporting the current fee and rate
structures for all departments and services and recommend a new methodology for preparing the
City's internal charge allocations for a variety of departments.
• Develop an Overhead Cost Allocation Model for calculating the full costs of providing each City
service. The requirements of the model shall allow for:
o The addition or removal of direct and overhead costs so that the overhead cost allocation
plan can be developed from a simple plan to a progressively more inclusive plan.
o The ability to continuously update the model and overhead cost allocation plan from
year-to-year as the organizational structure changes and the costs change.
o The addition of hypothetical service area information for future services enhancements,
and the ability to calculate the estimated costs of providing the service under
consideration.
• Work with the Finance Department in developing service provisions, cost categories, and
allocation criteria for current and future programs.
• Provide hourly rates for any additional services including but not limited to professional fees,
hourly rates,travel costs, clerical & communications costs, and any other"special" costs that may
performed on an as needed basis outside of the initial scope of work.
• Participate in the presentation of the Draft Overhead Cost Allocation Plan to select City staff and
City Council. Collect and document comments and concerns from staff and Council members.
• The consultant shall prepare a final study and comprehensive fee schedule and provide 5 bound
copies and one unbound copy (or file copy in PDF format)to the City.
The City staff will provide the consultant with all relevant information it has pertaining to the City and its
operations including employee hourly cost rates, operating and capital budgets, the existing cost
allocation plan, current fee resolutions and related documents.
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1. 9
EXHIBIT"B"
CITV'S REQUEST FOR PROPOSALS
CITY OF PALM SPRINGS, CA
NOTICE INVITING PROPOSALS FOR RFP #08-14
COMPREHENSIVE FEE AND RATE STUDY
NOTICE IS HEREBY GIVEN that the City of Palm Springs is requesting proposals from
qualified firms to provide the City with a Comprehensive Fee and Rate Study.
SCOPE OF SERVICES: The scope of work will consist of providing professional Consultant
Services to ensure that the City of Palm Springs is utilizing comprehensive overhead rates and
accurately accounting for the true cost of providing various services within the City operations.
OBTAINING RFP DOCUMENTS AND ADDENDA: The RFP document may be downloaded
via the internet at www.palmspringsca.gov (go to Departments, Procurement, Open Bids &
Proposals), or by calling the Office of Procurement and Contracting, (760) 322-8374. Upon
downloading the RFP via the internet, contact Leigh Gileno, Procurement Specialist Il, via email
at Leigh.Gileno(ftalmspringsca.gov to register as a firm interested in this project. Failure to
register may result in not receiving addenda to the RFP. Failure to acknowledge Addenda may
render a proposal as being non-responsive. We strongly advise that interested firms officially
register per the instructions.
EVALUATION OF PROPOSALS AND AWARD OF CONTRACT: This solicitation has been
developed in the Request for Proposals (RFP) format. Accordingly, firms should take note that
multiple factors as identified in the RFP will be considered by the Evaluation Committee to
determine which proposal best meets the requirements set forth in the RFP document. PRICE
ALONE WILL NOT BE THE SOLE DETERMINING CRITERIA. The City reserves the right to
negotiate the terms and conditions of any resulting contract. Final contract award, if any, will be
made by the Palm Springs City Council. The selected firm will be required to comply with all
insurance and license requirements of the City.
DEADLINE: All proposals must be received in the Procurement and Contracting Office, 3200
E. Tahquitz Canyon Way, Palm Springs, CA, 92262 by 3:00 P.M., LOCAL TIME, TUESDAY,
NOVEMBER 26, 2013. The receiving time in the Procurement Office will be the governing time
for acceptability of Proposals. Telegraphic and telephonic Proposals will not be accepted.
Reference the RFP document for additional dates and deadlines. Late proposals will not be
accepted and shall be returned unopened.
PROPOSALS TO REMAIN OPEN: The Proposer shall guarantee that all contents of their
proposal shall be valid for a period of 120 calendar days from the due date of proposals.
x
Leigh Gileno, Procurement Specialist II
October 23, 2013
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(M)
CITY OF PALM SPRINGS, CA
REQUEST FOR PROPOSALS (RFP) #08-14
COMPREHENSIVE FEE AND RATE STUDY
Requests for Proposals (RFP #08-14), for Comprehensive Fee And Rate Study services for the
City of Palm Springs, CA, (hereinafter the "RFP") will be received at the Office of Procurement &
Contracting, 3200 East Tahquitz Canyon Way, Palm Springs, California, until 3:00 P.M. LOCAL
TIME, TUESDAY, NOVEMBER 26, 2013. It is the responsibility of the respondent to see that
any proposal sent through the mail, or by any other delivery method, shall have sufficient time to
be received by this specified date and time. The receiving time in the Procurement Office will
be the governing time for acceptability of proposals. Telegraphic, telephonic, faxed or emailed
proposals will not be accepted. Late proposals will be returned unopened. Failure to register
as a Proposer to this RFP process per the instructions in the Notice Inviting Requests for
Proposals (under "Obtaining RFP Documents") may result in not receiving Addenda or other
important information pertaining to this process. Failure to acknowledge Addenda may render a
proposal as being non-responsive. We strongly advise that interested firms officially register
per the instructions.
1. PURPOSE AND SCHEDULE: The City of Palm Springs is requesting proposals from
qualified firms to provide the City with a Comprehensive Fee and Rate Study (hereinafter the
"Project"). The selected firm will be expected to provide the required services to ensure that the
City of Palm Springs is accurately accounting for the true cost of providing services within the
City operations and that the fees for services are reflected in those costs.
SCHEDULE:
Notice requesting Proposals posted and issued .............................................. October 23, 2013
Deadline for receipt of Questions............................Tuesday, November 19, 2013, 3:00 P.M.
Deadline for receipt of Proposals............................Tuesday, November 26, 2013, 3:00 P.M.
Short List/ Interviews/, *if desired by City .........................................................to be determined
Contract awarded by City Council ..................................................................... to be determined
NOTE. There will NOT be a pre-proposal conference for this procurement. "Dates above
are subject to change.
"KEY" TO RFP ATTACHMENTS:
ATTACHMENT "A"- Signature Authorization Form, including Addenda acknowledgment.
*Must be completed and included with Technical Proposal envelope.
ATTACHMENT "B" — Non Collusion Affidavit Form. *Must be completed and included
with Technical Proposal envelope.
ATTACHMENT "C" — Cost Proposal Form. *Must be completed and included in a
separately sealed envelope—do NOT include this with your Technical Proposal.
ATTACHMENT "D" —General Fund Revenues Versus Expenses for City.
ATTACHMENT "E" — Sample boilerplate Contract Services Agreement (for reference
only)
2. BACKGROUND: The City of Palm Springs, California is requesting proposals from
qualified firms or individuals to provide a Comprehensive Fee and Rate Study. The purpose of
this study is to ensure that the City of Palm Springs is utilizing comprehensive overhead rates
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and accurately accounting for the true cost of providing various services within the City
operations
The City of Palm Springs is a full-service City that is governed by a Council —Administrator form
of government and provides a full range of municipal services. The City employs approximately
402 full-time employees and was incorporated in 1938 and has a population of 47,601
permanent residents. In the peak season from October thru May the City has an increase of
approximately 30,000 residents. The City is noted as a vacation/resort destination.
r The City of Palm Springs total budget for 2012-2013 FY was $180,609,844, the operations
representing approximately $68,126,414 with a capital budget of $6,989,999. The General
Fund's appropriations of $68 million support the main operations of the City including public
safety, public works, engineering, recreation, parks, library, airport, community services and
general administration.
The Citywide User Fees currently being used were developed over 7 years ago. The City is
interested in identifying common and unusual fees for services that are currently not being
assessed.
3. SCOPE OF WORK, SERVICES, OBJECTIVES AND SPECIFICATIONS:
Generally, the scope of work consists of, but is not limited to a plan that contains the following
information:
• A comprehensive review of the City's fee and rate structure with the goal of establishing
a consistent and objectively based fee and rate structure that meets the needs of the
City and its citizenry, along with meeting the various requirements set forth in state law.
• Consultant will work with selected 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.
• Consultant shall conduct a review of the documentation supporting the current fee and
rate structures for all departments and services and recommend a new methodology for
preparing the City's internal charge allocations for a variety of departments.
• Develop an Overhead Cost Allocation Model for calculating the full costs of providing
each City service. The requirements of the model shall allow for:
o The addition or removal of direct and overhead costs so that the overhead cost
allocation plan can be developed from a simple plan to a progressively more
inclusive plan.
o The ability to continuously update the model and overhead cost allocation plan
from year-to-year as the organizational structure changes and the costs change.
o The addition of hypothetical service area information for future services
enhancements, and the ability to calculate the estimated costs of providing the
service under consideration.
• Work with the Finance Department in developing service provisions, cost categories,
and allocation criteria for current and future programs.
• Provide hourly rates for any additional services including but not limited to professional
fees, hourly rates, travel costs, clerical & communications costs, and any other "special"
costs that may performed on an as needed basis outside of the initial scope of work.
• Participate in the presentation of the Draft Overhead Cost Allocation Plan to select City
staff and City Council. Collect and document comments and concerns from staff and
Council members.
• The consultant shall prepare a final study and comprehensive fee schedule and provide
5 bound copies and one unbound copy (or file copy in PDF format) to the City.
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The City staff will provide the consultant with all relevant information it has pertaining to the City
and its operations including employee hourly cost rates, operating and capital budgets, the
existing cost allocation plan, current fee resolutions and related documents.
4. PROPOSAL REQUIREMENTS:
The firm's proposal should describe the methodology to be used to accomplish each of the
project tasks. The proposal should also describe the work which shall be necessary in order to
satisfactorily complete the task requirements.
Please note: this RFP cannot identify each specific, individual task required to successfully and
completely implement this project. The City of Palm Springs relies on the professionalism and
competence of the selected firm to be knowledgeable of the general areas identified in the
scope of work and to include in its proposal all required tasks and subtasks, personnel
commitments, man-hours, direct and indirect costs, etc. The City of Palm Springs will not
approve addenda to the selected firm's agreement which involve a substantial change from the
general scope of work identified in this RFP. The City's final selection will not be dictated on
any single factor, including price. The relative importance of these factors involves judgment on
the part of the City's RFP evaluation committee and will include both objective and subjective
analysis. A vendor may be eliminated from consideration for failure to comply with any of the
requirements, depending upon the critical nature of such requirements.
6. SELECTION PROCESS: This solicitation has been developed in the Request for
Proposals (RFP) format. Accordingly, proposers should take note that multiple factors as
identified in the RFP will be considered by the Evaluation Committee to determine which
proposal best meets the requirements set forth in the RFP document. PRICE ALONE WILL
NOT BE THE SOLE DETERMINING CRITERIA. The City shall review the proposals submitted
in reply to this RFP, and a limited number of firms may be invited to make a formal presentation
at a future date if desired by the City. The format, selection criteria and date of the presentation
will be established at the time of short listing, if conducted.
6. PROPOSAL EVALUATION CRITERIA: An Evaluation Committee, using the following
evaluation criteria for this RFP, will evaluate all responsive proposals to this RFP. Firms are
requested to submit their proposals so that they correspond to and are identified with the
following specific evaluation criteria (100 total points possible):
A. Firm / Staff / Team (including any subcontractors) Qualifications and experience in
providing similar services as defined in the RFP, including References
(15 POINTS)
B. Proposal Organization, conformance with the RFP instructions, and demonstrated
Understanding of the overall project and requested Scope of Work (10 POINTS)
C. Work Proposal, including detailed proposed methodology and approach, used to provide a
comprehensive fee and rate study for the requested Scope of Work (25 POINTS)
D. Detailed Project Schedule to fully complete the scope of work as defined herein, including
developing an overhead Cost Allocation Model for calculating the full costs of providing
each City service. (15 POINTS)
E. Local Preference (5 POINTS)
Firms that qualify as a Local Business, or employ local sub-consultants, and submit a valid
business license as more fully set forth in Section F.1 below, pursuant to the City of Palm
Springs Local Preference Ordinance 1756). The full local preference, five (5) points, may
be awarded to those that qualify as a Local Business. Two (2) points may be awarded to
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a non-local business that employs or retains local residents and/or firms for this project.
Non-local firms that do not employ or retain an local residents and/or firms for this project
P Y Y P l
shall earn zero (0) points for this criteria.
F. Cost Proposal (30 POINTS)
PRIOR CITY WORK: If your firm has prior experience working with the City DO NOT assume
this prior work is known to the evaluation committee. All firms are evaluated solely on the
information contained in their proposal, information obtained from references, and presentations
if requested. All proposals must be prepared as if the evaluation committee has no knowledge
of the firm, their qualifications or past projects.
7. PROPOSAL CONTENTS: Firms are requested to format their proposals so that
responses correspond directly to, and are identified with, the specific evaluation criteria stated in
Section 6 above. The proposals must be in an 8 Yz X 11 format, may be no more than a
total of Twenty Five (26) sheets of paper (double sided is OK ) including a cover letter.
NOTE: Dividers, Attachments included in this RFP that are to be submitted with the proposal,
Addenda acknowledgments and the separately sealed Cost Proposal do NOT count toward the
page limit. Interested firms shall submit SIX (6) copies (one marked "Original' plus five (6)
copies) of its proposal by the deadline.
All proposals shall be sealed within one package and be clearly marked, 'RFP #08-14,
REQUESTS FOR PROPOSALS FOR COMPREHENSIVE FEE AND RATE STUDY. Within the
sealed proposal package, the Cost Proposal shall be separately sealed from the
Technical/Work Proposal. Proposals not meeting the above criteria may be found to be
non-responsive.
EACH PROPOSAL PACKAGE MUST INCLUDE TWO (2) SEPARATELY SEALED
ENVELOPES:
Envelope #1, clearly marked "Technical/Work Proposal', shall include the following
items:
• Completed Signature authorization and Addenda Acknowledgment (see Attachment A)
• If applicable, your specific request for Local Preference (see Attachment A) and a copy of a
valid business license from a jurisdiction in the Coachella Valley.
• Completed, and notarized, Affidavit of Non-Collusion (see Attachment B)
In addition to the items above, at a minimum, firms must provide the information identified
below. All such information shall be presented in a format that directly corresponds to the
numbering scheme identified here.
TECHNICALIWORK PROPOSAL: The Technical/Work Proposal (Envelope #1) shall be
clearly marked and shall include the Sections A, B, C, D and E (*if Local Preference is
applicable) below:
SECTION A:
FIRM, STAFF, TEAM (including any subcontractors) QUALIFICATIONS AND
EXPERIENCE, INCLUDING REFERENCES
A.1 Follow the instructions and properly complete and execute both Attachment "A" and
Attachment "B" that are provided in the RFP and include them here in your proposal. If
applicable, your specific request for Local Preference (reference Attachment A) and a copy of a
valid business license from a jurisdiction in the Coachella Valley is to also be included here.
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A.2 Describe the firm's background and qualifications in the type of effort that this project will
require, specifically identifying experience with relevant projects successfully completed of
similar size and scope.
A.3 Indicate the name of any sub-contractor firms that will be utilized to make up your team.
Describe each sub-contractor's qualifications, background and specific expertise that they bring
to the Project.
A.4 List the name and qualifications of the key staff/team members that will be assigned to
the Project. Provide detailed qualifications of the Project Manager that will be assigned to the
Project.
A.5 Include a minimum of three (3) references of recent customers for who your firm has
provided similar study completed for another jurisdiction within the state of California and
include a sample copy from one (1) of these firms as contemplated herein. You must include
the name of the key contact person, their title, and a current phone number, fax number, email
address and business address along with a brief description of the scope of work and cost for
each successfully completed referenced project.
SECTION B:
PROPOSAL ORGANIZATION, CONFORMANCE WITH RFP INSTRUCTIONS, AND
DEMONSTRATED UNDERSTANDING OF THE OVERALL PROJECT AND REQUESTED
SCOPE OF WORK
B.1 Carefully review and verify that your proposal is well organized and follows ALL OF THE
INSTRUCTIONS on proper organization, format, order, and conformance with all requirements,
including any and all required signatures, attachments, acknowledgements, or other documents
that are required to be submitted. Failure to follow the instructions may result in your proposal
being non-responsive and rejected from consideration.
B.2 Without reciting the information regarding the Project verbatim as contained in this RFP,
convey your overall understanding of the Project and an understanding of the City's
expectations upon implementation of the Project.
B.3 Identify any "key" or "critical" issues that you believe may be encountered on the Project
based on the firm's prior experiences; and provide steps to be taken to ensure the issues
identified do not affect the successful delivery of the Project.
SECTION C:
WORK PROPOSAL
CA Proposer should refine and/or expand the Scope of Work to reflect their understanding
of the tasks and services requested and provide a detailed Work Proposal/Approach to
accomplish the tasks. Identify all tasks and sub-tasks required to successfully implement all
phases of the project.
SECTION D:
PROJECT SCHEDULE
D.1 Proposer shall provide a detailed Project Schedule/Timeline, including all tasks and sub-
tasks, as well as an Overhead Cost Allocation Model that can be developed from a simple plan
to a progressively more inclusive plan, and to fully execute the scope of work as defined herein.
D.2 Discuss lines of communication necessary to maintain the project schedule/timeline.
Discuss the key issues that could impact the schedule and ways to minimize or eliminate them.
D.3 Discuss your quality control methods to ensure consistent and accurate final results.
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SECTION E:
LOCAL PREFERENCE
E.1 Pursuant to the City of Palm Springs Local Preference Ordinance 1756, in awarding
contracts for services, including consultant services, preference to a Local Business shall be
given whenever practicable and to the extent consistent with the law and interests of the public.
The term "Local Business" is defined as a vendor, contractor, or consultant who has a valid
physical business address located within the Coachella Valley, at least six months prior to bid or
proposal opening date, from which the vendor, contractor, or consultant operates or performs
business on a day-to-day basis, and holds a valid business license by a jurisdiction located in
the Coachella Valley. "Coachella Valley" is defined as the area between the Salton Sea on the
south, the San Jacinto and Santa Rosa Mountains on the west, and the Little San Bernardino
Mountains on the east and north. For the purposes of this definition, "Coachella Valley"
includes the cities of Beaumont and Banning and the unincorporated areas between Banning
and the City of Palm Springs. Post office boxes are not verifiable and shall not be used for the
purpose of establishing such physical address.
The consultant will also, to the extent legally possible, solicit applications for employment and
proposals for subcontractors and sub-consultants for work associated with the proposed
contract from local residents and firms as opportunities occur and hire qualified local residents
and firms whenever feasible.
In order for a business to be eligible to claim the preference, the business MUST request the
preference in the Solicitation response (see Attachment A) and provide a copy of its current
business license (or of those it employs for this project) from a jurisdiction in the Coachella
Valley. A non-local business that requests the preference based on employing local residents
must provide proof of full-time primary residency from a jurisdiction in the Coachella Valley with
the proposal. The City reserves the right to determine eligibility.
E.2 List all team members with local expertise. Clearly define their role in the overall project.
COST PROPOSAL; The Cost Proposal (Envelope #2) shall be clearly marked in a
separately sealed envelope and shall include Section F below:
SECTION F:
COST PROPOSAL ("see instructions in Section 6 above and Attachment "C)
F.1 The cost proposal (in a separate sealed envelope) shall include a detailed cost estimate
for completion of the scope of services with cost breakdowns by scope element. All professional
fees, hourly rates, travel costs, clerical and communications costs, and any other "special' costs
must be clearly identified and defined. In addition, an hourly rate for any additional services that
were not originally requested in the Scope of Work, but may be added at the discretion of the
City, shall also be included. Note that the Cost Proposal, including all fees and compensation
shall remain firm for a minimum of 90 days from the proposal submission deadline.
PROPOSERS MUST USE THE COST PROPOSAL FORM, ATTACHMENT "C", PROVIDED
BY THE CITY IN THE RFP DOCUMENTS. Failure to use the Cost Proposal form Attachment
"C" provided by the City WILL be cause for rejection of a proposal. Do NOT include
Attachment "A" or Attachment "B" in the Cost Proposal, Envelope #2,. Attachments "A"
and "B" are to be included in Envelope#1, "Technical/Work Proposal'.
8. GENERAL AND SPECIAL CONDITIONS:
DEADLINE FOR SUBMISSION OF PROPOSALS: Proposals will be received in the City of
Palm Springs, Office of Procurement and Contracting until 3:00 P.M., LOCAL TIME,
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TUESDAY, NOVEMBER 26, 2013. Proof of receipt before the deadline is a City of Palm
Springs, Office of Procurement and Contracting time/date stamp. It is the responsibility of the
firms replying to this RFP to see that any proposal sent through the mail, or via any other
delivery method, shall have sufficient time to be received by the Procurement Office prior to the
proposal due date and time. Late proposals will be returned to the firm unopened. Proposals
shall be clearly marked and identified and must be submitted to:
City of Palm Springs
Procurement and Contracting Department
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: Leigh Gileno Procurement Specialist II
QUESTIONS: Firms, their representatives, agents or anyone else acting on their behalf are
specifically directed NOT to contact any city employee, commission member, committee
member, council member, or other agency employee or associate for any purpose related to
this RFP other than as directed below. Contact with anyone other than as directed below
WILL be cause for rejection of a proposal.
Any questions, technical or otherwise, pertaining to this RFP must be submitted IN WRITING
and directed ONLY to:
Leigh Gileno
Procurement Specialist II
3200 East Tahquitz Canyon Way, Palm Springs, CA 92262
via FAX (760) 323-8238
or via EMAIL: Leigh.Gileno(a)palmspringsca.gov
Interpretations or clarifications considered necessary in response to such questions will be
resolved by the issuance of formal Addenda to the RFP. The deadline for all questions is
3:00 P.M., Local Time, Tuesday, November 19, 2013. Questions received after this date and
time may not be answered. Only questions that have been resolved by formal written Addenda
via the Division of Procurement and Contracting will be binding. Oral and other interpretations
or clarifications will be without legal or contractual effect.
FORM OF AGREEMENT: The selected firm will be required to enter into a contractual
agreement, inclusive of insurance requirements, with the City of Palm Springs in accordance
with the standard Contract Services Agreement (see Attachment "E"). Please note that the
Exhibits are intentionally not complete in the attached sample standard document. These
exhibits will be negotiated with the selected firm, and will appear in the final Contract Services
Agreement executed between the parties.
The term of the agreement that is awarded as a result of this RFP will be negotiated and agreed
between the City and the awarded Consultant. Upon the completion of the Scope of Work as
defined herein, the City reserves the right to extend the term of the agreement with the
Consultant for the purposes of performing additional services as maybe needed.
Failure or refusal to enter into an Agreement as herein provided or to conform to any of the
stipulated requirements in connection therewith shall be just cause for an annulment of the
award. If the highest ranked Proposer refuses or fails to execute the Agreement, or
negotiations are not successful, or the agreement is terminated, the City may, at its sole
discretion, enter negotiations with and award the Contract to the second highest ranked
Proposer, and so on.
AWARD OF CONTRACT: It is the City's intent to award a contract to the firm that can provide
all of the scope of work, equipment and services identified in the RFP document. However, the
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City reserves the right to award a contract, or to make no award, whichever is in the best
interest of the City. It is anticipated that award of the contract will occur at the next regularly
scheduled City Council meeting after the evaluation committee has made its final selection of
the firm to be recommended for award and a contract has been negotiated and agendized for
consideration. The decision of the City Council will be final.
RIGHT TO ACCEPT OR REJECT PROPOSALS: The City of Palm Springs reserves the right
to waive any informality or technical defect in a proposal and to accept or reject, in whole or in
part, any or all proposals and to cancel all or part of this RFP and seek new proposals, as best
serves the interests of the City. The City furthermore reserves the right to contract separately
with others certain tasks if deemed in the best interest of the City.
INSURANCE: Insurance provisions are contained in the Standard Contract Services sample
agreement included in the RFP. The successful Proposer will be required to comply with these
provisions. It is recommended that Proposers have their insurance provider review the
insurance provisions BEFORE they submit their proposal.
RESPONSIBILITY OF PROPOSER: All firms responding to this RFP shall be responsible. If it
is found that a firm is irresponsible (e.g., has not paid taxes, is not a legal entity, submitted an
RFP without an authorized signature, falsified any information in the proposal package, etc.),
the proposal shall be rejected.
PUBLIC RECORD: All documents submitted in response to this solicitation will become the
property of the City of Palm Springs and are subject to the California Code Section 6250 et seq.,
commonly known as the Public Records Act. Information contained in the documents, or any
other materials associated with the solicitation, may be made public after award of contract to a
specific firm, if any, by the City Council.
COST RELATED TO PROPOSAL PREPARATION: The City will NOT be responsible for any
costs incurred by any firm responding to this RFP in the preparation of their proposal or
participation in any presentation if requested, or any other aspects of the entire RFP process.
BUSINESS LICENSE: The selected firm will be required to be licensed in accordance with the
City of Palm Springs Business License Ordinance, Municipal Code Chapter 3.40 through 3.96,
entitled 'Business Tax".
INVESTIGATIONS: The City reserves the right to make such investigations as it deems
necessary to determine the ability of the firms responding to this RFP to perform the Work and
the firm shall furnish to the City all such information and data for this purpose as the City may
request. The City reserves the right to reject any proposal if the evidence submitted by or
investigation of such firm fails to satisfy the City that such firm is properly qualified to carry out
the obligations of the Contract and to complete the Work contemplated therein.
NONCOLLUSION: The undersigned, by submission of this Proposal Form, hereby declares
that this Proposal is made without collusion with any other business making any other Proposal,
or which otherwise would make a Proposal. Proposer must execute an Affidavit of Non-
Collusion provided as Attachment "B" in the RFP and include it with their proposal.
PROPOSALS TO REMAIN OPEN: The Proposer shall guarantee that all contents of their
proposal shall be valid for a period of 120 calendar days from the due date of proposals.
SIGNED PROPOSAL AND EXCEPTIONS: Submission of a signed proposal will be interpreted
to mean that the firm responding to this RFP has hereby agreed to all the terms and conditions
set forth in all of the sheets which make up this Request for Proposals, and any attached
sample agreement. Exceptions to any of the language in either the RFP documents or
attached sample agreement, including the insurance requirements, must be included in the
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proposal and clearly defined. Exceptions to the City's RFP document or standard boilerplate
language, insurance requirements, terms or conditions may be considered in the evaluation
process; however, the City makes no guarantee that any exceptions will be approved.
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ATTACHMENT "A"
THIS FORM MUST BE COMPLETED AND SUBMITTED WITH YOUR TECHNICAL/WORK PROPOSAL
(Envelope #1)'
REQUESTS FOR PROPOSALS (RFP) # 08-14
COMPREHENSIVE FEE AND RATE STUDY
SIGNATURE AUTHORIZATION
NAME OF COMPANY(PROPOSER):
BUSINESS ADDRESS:
TELEPHONE: CELL PHONE FAX
CONTACT PERSON EMAIL ADDRESS
A. I hereby certify that I have the authority to submit this Proposal to the City of Palm Springs for the
above listed individual or company. I certify that I have the authority to bind myself/this company in a
contract should I be successful in my proposal.
PRINTED NAME AND TITLE
SIGNATURE AND DATE
B. The following information relates to the legal contractor listed above, whether an individual or a
company. Place check marks as appropriate:
1. If successful, the contract language should refer to me/my company as:
An individual;
A partnership, Partners' names:
A company;
A corporation If a corporation, organized in the state of:
A Local Business (Licensed within the jurisdiction of the Coachella Valley).
Copy of current business license is required to be attached to this document. (include this
only if applicable`)
2. My tax identification number is:
ADDENDA ACKNOWLEDGMENT:
Acknowledgment of Receipt of any Addenda issued by the City for this RFP is required by including the
acknowledgment with your proposal. Failure to acknowledge the Addenda issued may result in your proposal
being deemed non-responsive.
In the space provided below, please acknowledge receipt of each Addenda:
Addendum(s) # islare hereby acknowledged.
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ATTACHMENT "B"
*THIS FORM MUST BE COMPLETED AND SUBMITTED WITH YOUR TECHNICALIWORK
PROPOSAL (Envelope #1)*
NON-COLLUSION AFFIDAVIT TO BE EXECUTED BY
PROPOSER AND SUBMITTED WITH PROPOSAL
STATE OF CALIFORNIA) ss
COUNTY OF RIVERSIDE)
The undersigned, being first duly sworn, deposes and says that he or she is
of the party making the
foregoing Proposal. That the Proposal is not made in the interests of, or on the behalf of, any
undisclosed person, partnership, company, association, organization, or corporation; that the Proposal
is genuine and not collusive or sham; that the Proposer has not directly or indirectly induced or solicited
any other Proposer to put in a false or sham Proposal, and has not directly or indirectly colluded,
conspired, connived, or agreed with any Proposer or anyone else to put in a sham Proposal, or that
anyone shall refrain from Proposing; that the Proposer has not in any manner, directly or indirectly,
sought by agreement, communication, or conference with anyone to fix the Proposal price of the
Proposer or any other Proposer, or to fix any overhead, profit, or cost element of the Proposal price, or
of that of any other Proposer, or to secure any advantage against the public body awarding the contract
of anyone interested in the proposed contract; that all statements contained in the Proposal are true;
and, further, that the Proposer has not, directly or indirectly, submitted his or her Proposal price or any
breakdown thereof, or the contents thereof, or divulged information or data relative thereof, or paid, and
will not pay, any fee to any corporation, partnership, company, association, organization, Proposal
depository, or any other member or agent thereof to effectuate a collusive or sham Proposal.
By:
Title:
Subscribed and sworn to before me this day of 2013.
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ATTACHMENT C
*THIS FORM MUST BE COMPLETED AND SUBMITTED IN A SEPERATELY SEALED
ENVELOPE#2 "Cost Proposal", NOTwith Envelope#1, Technical/Work Proposal*)
REQUEST FOR PROPOSAL (RFP #08-14)
COMPREHENSIVE FEE AND RATE STUDY
COST PROPOSAL
Responding to Request for Proposal No. 08-14 Comprehensive Fee and Rate Study , I/WE will accept
as full payment the following "not-to-exceed" fixed fee including all associated fees (i.e. printing costs,
attendance at meetings, etc.) and be based on achievement of deliverables, which should be outlined
on the consultant's proposed timeline for providing all services to complete the Comprehensive Fee
and Rate Study. The undersigned Proposer proposes and agrees to provide all work and services
necessary to deliver a comprehensive fee and rate study as defined in the Scope of Work herein.
TOTAL NOT-TO-EXCEED AMOUNT:
$
(PRICE IN FIGURES)
(PRICE IN WORDS)
In the event that additional services are required beyond the scope of work as defined in this document,
please provide your hourty rate (regular business hours only*)
Hourly rate for additional services not covered in RFP document. $
Hourly rates for all Project Team members: $
Administrative Rates for additional services not covered in RFP
document. $
Hourly rate for any sub-consultant used in this Fee Study not covered
in this RFP document. $
Indicate time in calendar days, for completion after receipt of notice to proceed:
DAYS (NTP).
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Planning, Building, and Engineering Department
General Fund Revenues Versus Expenses
City of Palm Springs
Projected Projected
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Planning:
Revenues $1,200,465 $817,613 $327,761 $299,868 $363,378 $279,661 $350,000 $350,000
Expenses $1,376,287 $1,459,347 $1,306,959 $1,087,336 $976,532 $1,026 887 $1 080 181 $9 189 861
Rev as %of Exp 87% 56% 25% 28% 37% 27% 32% 29%
D
Building: n
Revenues $2,933,336 $2,283,961 $1,461,219 $1,182,148 $1,498,765 $1,460,689 $1,825,028 $1,825,028 n
Expenses $2,389,717 $2,502,496 $2,395,504 $1,950,198 $1,628,577 $1,688,842 $1931162 $2045709 =
3
Rev as%of Exp 123% 91% 61% 61% 92% 86% 95% 89% Z
1
Engineering: o
Revenues $736,907 $359,874 $207,230 $146,072 $241,053 $147,605 $185,000 $185,000
Expenses $1,785,077 $1,895,923 $1,703,172 $1,356,993 $1,467,774 $1,581,405 $1 777 869 $1 944 990
Rev as%ofExp 41% 19% 12% 11% 16% 9% 10% 10%
Combined -
Totals.
Revenues $4.870,708 $3,461,448 $1,996,210 $1,628,088 $2,103,196 $1,887,955 $2,360,028 $2,360,028
Expenses $5,551,081 $5,857,766 $5,405,635 $4,394,527 $4,072,883 $4,297,134 $4,789,212 $5180560
Rev as%of Exp 88% 59% 37% 37% 52% 44% 49% 46%
2/2 512 01 3 Planning Building and Engineering Revenues vs Expenses(06-02 thru 13-141 4;22 PM
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V C� REQUEST FOR PROPOSAL (RFP 08-14)
f�• FOR
COMPREHENSIVE FEE AND RATE STUDY
ADDENDUM NO. 1
This Addendum is being issued for the following changes and informational items:
THE FOLLOWING REVISIONS AND/OR ADDITIONS TO THE RFP DOCUMENT AND
INSTRUCTIONS ARE TO BE INCLUDED AND SHALL TAKE PRECEDENCE OVER
ANYTHING CONTRARY ON THE PREVIOUSLY ISSUED SPECIFICATIONS AND
INSTRUCTIONS AND SHALL BE REFERRED TO HEREINAFTER AS PART OF THE
CONTRACT DOCUMENTS.
The City has received the following questions and is hereby providing answers thereto:
Q 1: Can you lease send the current list of the Citywide user fees that will be included in the review
Y P Y
of this scope of work?
A 1: The city's current Comprehensive Fee Schedule can be found on the City's website by
going to: www.palmsprinasca.erov. and selecting the link "Government', and go to "City
Clerk" link and there you will find the "comprehensive Fee Schedule' Link under
Publications and Reports for you to down load.
Q 2: Under section 2 of the RFP, it lists the scope of work and tasks to be completed in the project.
The term 'overhead Cost Allocation Plan" is used in several bullet points. A Cost Allocation
Plan (CAP) is a separate type of cost analysis from a User Fee and Rate Study. A CAP
analysis identifies the appropriate overhead allocations to the benefiting organizational units
within Citywide operations. A User Fee and Rate study focuses on determining the full cost of
providing user fee services to the public. Is it the City's intent to have us conduct, through this
RFP, a User Fee and Rate Study as well as an Overhead Cost Allocation Plan study, orjust the
User Fee and Rate Study?
A 2: Yes, it is the intent of the City for the selected firm and contract to prepare the Overhead
Cost Allocation Plan, as it is the City's intent to adopt a new comprehensive fee schedule
that captures all allowable costs including 1) direct labor and materials; 2) departmental
overhead. and 3) central services overhead such as City Manager, Attorney, Clerk,
Finance, HR, Procurement, IT, etc.
BY ORDER OF THE CITY OF PALM SPRINGS, CALIFORNIA
Leigh Gileno
Procurement Specialist II
DATE: October 28,2013
ADDENDUM ACKNOWLEDGMENT:
Proposer Firm Name:
Authorized Signature: Date:
Acknowledgment of Receipt of Addendum 1 is required by signing and including the acknowledgment with your submittal, or you
may also acknowledge the Addenda on the bottom of Attachment A. Failure to acknowledge this Addendum may result in your
submittal being deemed non-responsive.
31
4
The City of Palm Springs
Studies to Calculate the Cost of User Fees
and Prepare an Indirect Cost Allocation Plan
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Capital Accounting Partners, LLC
Proposal (copies)
November 26, 2013
Co5tAllocot;on and Mas ter Fee Professional
.,
CONTENTS
CoverLetter............................................................................................................................................................2
Section A:Firm,Staff,Qualifications,and References.............................................................. .....---.... ...... .....4
Consultant Qualifications and Experience..............................................................................................................4
Summary of Experience and Project Team.............................................................................................................4
References..............................................................................................................................................................8
IndirectCost Allocation Plans.............................................................................................................................8
UserFee Studies.................................................................................................................................................9
Addendum(s)Nall is/are hereby acknowledged....................................................................11
Subscribed and sworn to before me this day of,2013........................................................................................12
Section B:Our Understanding of This Project......................................................................................................13
SectionC:Work Proposal......................................................................................................................................15
Annual Update of Cost Allocation Plan:............................................. ...........................................—......... ......16
SectionD:Schedule Proposal...............................................................................................................................23
Schedule................................................................................................................................................................2 3
Attachment A:........ ................. .................. .............. ................................ ............24
...................................
Nicolie (Nicky) Cass Lettini,MBA-Owner/Partner...........................................................................................24
Daniel B. Edds, MBA,PMP-Project Consultant...............................................................................................25
Capital Accounting Partners,LLC Page 1 of 25 36
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Cost Allocation and Master Fee Professional
COVER LETTER
N ovem her 26,2013
City of Palm Springs
Attention: Leigh Gileno
Procurement and Contracting Office
3200 E Tahquitz Canyon Way
Palm Springs, CA 92262
Reference: Comprehensive User Fee Study and Cost Allocation Plan
Capital Accounting Partners, LLC(CAP)is submitting for your consideration Our proposal to develop the City of
Palm Springs indirect cost allocation plan and the preparation of a Comprehensive Fee and Rate Study. CAP
has extensive expertise in both of these services. This proposal is valid for one-hundred twenty(120)days
from November 26,2013.
Capital Accounting Partners understands that the City of Palm Springs is taking an important step by a review
of its user fees,charges,and cost recovery.We understand that the City desires to be fiscally responsible with
the services it provides while maintaining a high level of customer service.To accomplish these important
goals it desires to have a thorough and professional review of its user fees and Indirect cost.During this time
of economic uncertainty this is an important goal.
Our designed processes are structured to produce your cost allocation plan and user fee study—as fast as the
City can provide data and access to those we need to interview.Our process for user fee studies calls for us to
collect 75%-80%of our data onsite,working directly with staff.This process allows us to complete our costing
models faster,with greater accuracy of results,and spend more time consulting over the policy and
operational impacts.
Our goal is to put senior level consultants on these projects. Nicolie Cass Lettini,MBA(Nicky), is an
experienced expert who understands the value and nuances of how accurate cost allocation plans impact a
city's revenue sources and the proper allocation of costs for each individual department. Nicky not only has
extensive experience working with cities preparing cost plans, she has also completed full cost plans, OMB-87
cost allocation plans and rate studies for a number of counties and special districts. In all, Nicky has prepared
over 300 cost plans in her twelve(12)years in the business with Maximus, Public Resource Management
Group(now MGT)and now with her own company.
Dan Edds will be lead consultant for the user fee. He brings 15 years of experience as a public sector
consultant.Dan has direct experience with many Cities in the Los Angeles area. He is recognized for his
expertise in user fee study.The GFOA published two of his articles in the national publication-Government
Finance Review. In addition,the GFOA has tasked him to teach some of their national and regional trainings on
performance management.
This combination of experience and skills gives the CAP consultants the ability to provide clients accurate,
complete,and on-time cost plans and user fees studies, using custom designed software which was developed
based on their knowledge. All of this know-how is provided by a team that prides itself in offering exceptional
customer service.
Capital Accounting Partners,LLC Page 2 of 25 I
eCost Allocation and Master Fee Professional
We are very proud of our work product. Our commitment is to bring to the City of Palm Springs the best
methodology and the best trained and experienced staff possible.Additional factors to take into consideration
during your evaluation of the proposal are:
Small Business Certification (#0046082) — Capital Accounting Partners, LLC has received
certification from the Office of Small Business and DVBE Services, Procurement Division, Department of
General Services,State of California.
Capital Accounting Partners,LLC is a majority woman-owned business.
As you review the enclosed proposal,you will see that CAP has the experience,skills,talent,and capacity. By
relying on CAP's expertise to meet your requirements,your staff can focus on other important responsibilities
and tasks. In addition,CAP is available to present any necessary reports or studies to elected officials and/or
the general public if necessary.
Thank you for the opportunity to submit this proposal.We look forward to working with you.
Sincerely,
Nicolie Cass Lettini
Capital Accounting Partners, LLC
3570 Buena Vista Drive
Sacramento,CA 95864
Capital Accounting Partners,LLC Page 3 of 25 p
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CCost Allocation and Mostpr Fee Professional
SECTION A: FIRM, STAFF, QUALIFICATIONS, AND
REFERENCES
Capital Accounting Partners,LLC(CAP)
Legal name of firm
Address 3w"— aYlstaDrive,
S"mento.CA 95W
Legal form of company Limited Liability Company
Telephone 910670.0001. ., '
Fax 309.404.0697
Years in business 6% a ars
Full-time personnel Nicolie Cass Lettini, MBA
Dan Edds,MBA,PMP
CONSULTANT QUALIFICATIONS AND EXPERIENCE
SUMMARY OF EXPERIENCE AND PROJECT TEAM
Capital Accounting Partners is exclusively focused on providing cost of service studies for municipal
government.We do this through the preparation of indirect cost allocation plans and user fee studies.This
focus provides a level of experience that we feel is unmatched in our industry. For example,out principle
consultant for indirect cost allocation plans, (Nicky Lettini)has personally prepared over 300 of these plans
and is one of the few cost plan consultants that has actually negotiated directly with the Federal Government
in preparing indirect cost rates. For user fee studies,our principle is Dan Edds and he has personally prepared
nearly 70 such plans. In addition,the Government finance Office Association(GFOA) has published his articles
on user fees and performance management in their national publication—Government Finance Review.
Summary of Qualifications for Nicky Lettini, MBA
Education Bachelor of Science in Managerial Economics from
University of California,Davis and has her MBA in
Accounting from California State University,Sacramento.
Training and Certifications: 01VIBA-87s*Iallzecitraining,provided by.Managerfum
'Concepts.This is a state approved course to learn th6lits
and outs of the Circular:This course gives you c6sulnuing
education credits and gives me a special Insight in to the
circular OMB A-87 guidelines that will be able to sure
with you.
Capital Accounting Partners, LLC Page 4 of 25
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cost Allocation and muster Fee Professional
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JSef vices—City of Palm Springs
Summary of Experience for Nicky Lettini, MBA
Nicolie Cass Lettini,MBA(Nicky), is an experienced expert who understands the value and nuances of how
accurate cost allocation plans impact a city's revenue sources and the proper allocation of costs for each
individual department.Nicky has solely worked on cost plans for her whole career. In all, Nicky has prepared
over 300 cost plans in her twelve(12)years in the business with Maximus,Public Resource Management
Group(now MGT)and now with her own company
Summary of Qualifications for Daniel B. Edds, MBA, PMP
Education Master Degree in Business Administration,International
Business,Albers School of Business and Economics,
Seattle University
Certifications: Pro eet Manager Professional(PMP)
Strategic Planning
Group Facilitation
Lean Practitioner
Balanced Scorecard
Other Baldrige Quality Criteria-Examiner
Publications and Training Provided MthoeTransformatioi;Ma"Crageomnt,.Spire,Press,
London England, s
Government Finance Review(GFOA)articles on user fees
and performance management in the public sector
Regional kralnings(OMPO&WFO %et
Us&lceeStudies
Cakulating full cost
PeOrrtrance management
"Intr6ductiorvitlActivity'Based Costing
Government Finance Officers Association:
Performance management(both national and regional
trainin )
Summary of Experience for Daniel B. Edds, MBA, PMP
Dan Edds brings more than fifteen years of public sector consulting. His consulting work has focused on
providing high end cost analysis as well as operations improvement work.Recently his operations
improvement work has focused on the application of lean principles and Balanced Scorecard work.
A partial list of user fee projects that Dan Edds has personally led include:
Capital Accounting Partners,LLC Page 5 of 25
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OAA
Cost Allocation and Muster Fee Professionaf
California Municipal Agencies 1 Building Planning Engineering Fire Prev Police Recreation
City of Beverly Hills L =? *' 1'
city of Fremont #
City of Dublin
Town of Atherton x
City of Pasadena
City of Napa x
City of Ontario * # * &
City of Alameda * * + '<
City of Vacaville „*,. # # hill, * * ,
�a}r
City of Dana Point
City of Tulare * * * +W— r"','* 7 7
City of Los Gatos
City of Paso Robles
City of Martinez * it
City of Lakeport * * ,
City of Pomona
City of Woodland
City of Hercules * * * *+
City of San Luis Obispo 77, *-=: * ; .. # +f*' ;.
City of Lathrop
City of Moreno Valley
City of Indian Wells * * * * x
City of Rancho Cucamonga
City of Mountain View * * * * +
City of Del Mar #
City of Campbell * * *
Capital Accounting Partners,LLC Page 6 of 25
1
Cost Allocation card Master Fee Professional
Services—city of Point Springs
California municipal Agencies Building Planning Frigineering FirePrev Police Recreation
City of Porterville * * ,:* Win`•
City of Half Moon Bay # * # #
City of Imperial Beach
City of Irvine #
n
City of Placentia * -k' it
Imperial County * *•
Butte county f;.` * .: x' '•
Yuba County
Napa County
t4
Oregon Municipal Agencies Building Planning Engineering Fire Prev Police Recreation
City of Redmond ,v
City of Springfield
City of Bend # * , *'':"`
City of Happy Valley #
City of Newport * - '.;* * ^'a "
County of Clatsop #
Klamath County
Lane County
Capital Accounting Partners, LLC Page 7 of 25
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Cost Allocation and Muster Fee Professional
REFERENCES
CAP suggests you contact our previous clients to discuss our work.CAP is proud of our reputation within the
industry and would like you to hear it for yourself.
"(Kicky) is by for, one of the best consultants I have ever worked with. Nicky is
extremely professional, thorough, knowledgeable and unbelievably customer service
focused."
A. Ng, Financial Management @ Business Process Manager,
Golden Gate Bridge, Highway and Transportation District
"...the excellent support and service you provided...helped to increase our productivity
and responsiveness to any and all questions arising from the cost plan process. " D.
Sellers,Auditor-Controller, County of Yuba
"It has always been a pleasure to work with Micky due to her can-do attitude,attention
to detail, unparalleled level of service, and most importantly, her knowledge of Cost
Allocation Plans and OMB A-87requirements."
B. Torrez, Finance Director, City of Burbank
"...with[her] expertise in Cost Plan preparation, [kicky has] brought accuracy,
consistency and accountability to the preparation of our Cost Plan..."
R. Adler,Assistant Controller, County of San Mateo
INDIRECT COST ALLOCATION PLANS
Capital Accounting Partners(CAP) prepares numerous indirect cost allocation plans every year. Our Principal,
Nicky Cass Lettini has prepared nearly 300 indirect cost allocation plans in her career. Many of our clients
contract with CAP annually for preparation of their OMB compliant and Full Cost indirect cost allocation plans.
The following is a list of agencies that contact with CAP for annual updates to their cost plans.
The following is a partial list of her clients that are available for referral.
Capital Accounting Partners,LLC Page B of 25
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Cost Allocution and Master Fee Professional
Services-City of Palm Springs
The City of Burbank, Full Cost County of Contra Costa, OMB
.,u,. Allocation Plan A-87 Cost Allocation and Full-
Jennifer Becker, Deputy Financial Cost Allocation Plans
Services Director a Marie Rulloda, Assistant Auditor-
275 East Olive Avenue, PO Box 6459 Controller
Burbank, CA 91510 625 Court Street, Room 103
818.238.5507 Martinez, CA 94553
925.646-2186
City of Burbank, Golden Gate Bridge, Highway
Cost of Service Analysis for Transportation District, OMB A-
Tnfamation Technology 87 Cost Allocation Plan and
Penny Forbes im Indirect Cost Rate Plans
275 East Olive Avenue, PO Box 6459 Alice Ng, Financial Management and Business
Burbank, CA 91510 Process Analyst
818.238.5087 Toll Plaza Administration Building, Golden
Gate Bridge
PO Box 9000, Presidio Station
San Francisco, CA 94129
415.923.2339
City of Glendale, Full Cost Allocation County of Riverside, OMB A-87
Plan Y} Cost Allocation Plan
Bob Elliot, Finance Director Tess Soriano, Chief Accountant
141 North Glendale Avenue 4080 Lemon Street, 3.d Floor
Glendale, CA 91206 Riverside, CA 92502
818,548.2085 951.955,8138
City of Glendale, Information County of San Benito, OMB A-87
Services Department Cost Rates Cost Allocation Plan
Ed Fraga, Information Services NZOW Larry Chapin, Assistant Auditor
Director 481 4o' Street, 2nd Floor
141 North Glendale Avenue Hollister, CA 95023
Glendale, CA 91206 831.636.4090
818.548.3957
City of Stockton, Full Cos[ & OMB A-87 Cos[ A111111111L City of Santa Barbara, Full
Allocation Plan and ICRP's Cost &OMB A-87 Cos[
Ryan Pham, Finance Allocation Plan
Stockton, CA Michael Pease
CITYOF 735 Anacapa St
209.937.8215 Z STOCKTON Santa Barbara, CA 93101
805.564.5337
USER FEE STUDIES
Dan Edds will be our primary consultant on this project. He has prepared numerous similar studies.These
California Cities can be contacted for reference purposes. (Some of these projects were completed while Dan
was with his previous firm.)
Capital Accounting Partners,LLC Page 9 of 25
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-,
Cost Allocation and Master Fee Professional
City of Dublin "'`%>. Town of Atherton
The city engaged CAP to prepare an ( _ The City engaged Capital
indirect cost allocation plan and �� Accounting Partnersto prepare an
comprehensive user fee study. �' � indirect cost allocation plan and
CITY OF DUBLIN '
Nicky Cass Lettini is preparing the conduct a comprehensive userfee study.This
indirect cost allocation plan and Dan Edds is preparing the project is nearing completion.
user fee study.Areas of study include planning,building, Robert Barron
development engineering,police,fire prevention and finance Director
business license costs. (650)752-0552
This project is nearing completion,
Or Laura lammal
Administrative Technician—Administrative Services
City of Dublin (925)556-4574
City of Indian Wells v_y City of Vernon
The City engaged Dan Edds,(while with another firm)to ' °� ro The city engaged CAP to
conduct several user fee and business license studies. °" prepare an indirect cost
` a allocation plan and
Mr. Kevin McCarthy Y„"�.,,,,„w`P comprehensive user fee study.
Finance Director Nicky Cass Lettini is preparing
(760)346-2489 the indirect cost allocation plan and Dan Edds is
kmccarthy@cityofindianwelis.org preparing the user fee study.Areas of study
include planning, building,development
engineering,police,fire prevention and
environmental controls.
Masami Higa
Assistant Finance Director
(323)583-8811 x254
City of Beverly Hills City of Campbell
The city engaged CAP to prepare an indirect Mr. Edds and an
r cost allocation plan and comprehensive associate prepared
user fee study. Nicky Cass Lettini prepared both an indirect
the indirect cost allocation plan and Dan cost allocation plan and a comprehensive user
Edds prepared the user fee study.Areas of fee study.Mr. Edds prepared the user fee study.
study include planning,building, Areas of the user fee study included planning,
development engineering, police,fire prevention,and building,development engineering,police,and
recreation. business license.
Mr. Don Harrison Mr.Mike Wright
Budget and Revenue Officer Budget Manager
(310)285-2445 City of Campbell
(408)866-2112
mikew@citvofcampbell.com
Capital Accounting Partners,LLC Page 10 of 25
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Cost Allocation and master Fee Professional
Semites—City of Palm Springs
ATTACHMENT "A"
'THIS FORM MUST BE COMPLETED AND SUBMITTED WITH YOUR TECHNICAL(WORK
PROPOSAL (Envelope#1)'
REQUESTS FOR PROPOSALS (RFP)#08.14
COMPREHENSIVE FEE AND RATE STUDY
SIGNATURE AUTHORIZATION
NAME OF COMPANY(PROPOSER):
_Capital Accounting Partners
BUSINESS ADDRESS: 3570 Buena Vista Driver, Sacramento, CA 95864
TELEPHONE:(916)670-0001 CELL PHONE (916) 670-0001
FAX
CONTACT PERSON_Nicolie Letlini_ EMAIL ADDRESS same as above
A. I hereby certify that I have the authority to submit this Proposal to the City of Palm Springs for
the above listed individual or company. I certify that I have the authority to bind myself/this company
in a contract should I be successful in my proposal.
_Nicolie Lettini, MBA. Owner/Partner
PRINTED NAME AND TITLE
SI N URE AND DAT
B. The following information relates to the legal contractor listed above, whether an individual or a
company. Place check marks as appropriate:
1. If successful, the contract language should refer to me/my company as:
_An individual,
A partnership, Partners' names:
_x_A company;
_A corporation If a corporation, organized in the state of:
A Local Business (Licensed within the jurisdiction of the Coachella Valley).
Copy of current business license is required to be attached to this document. (include this only if
applicable")
2. My tax identification number is:
ADDENDA ACKNOWLEDGMENT:
Acknowledgment of Receipt of any Addenda issued by the City for this RFP is required by including
the acknowledgment with your proposal. Failure to acknowledge the Addenda issued may result in
your proposal being deemed non-responsive.
In the space provided below, please acknowledge receipt of each Addenda:
ADDENDUM(S) HALL_ 1 _6/ARE HEREBY ACKNOWLEDGED.
Capital Accounting Partners, LLC Page 11 of 25
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IJ �11JServices—City of Point Springs
ATTACHMENT°B'
FI *THIS FORM MUST BE COMPLETED AND SUBMITTED WITH YOUR TECHNICALIWORK
PROPOSAL(Envelope#1)•
NON-COLLUSION AFFIDAVIT TO BE EXECUTED BY
1 PROPOSER AND SUBMITTED WITH PROPOSAL
J STATE OF CALIFORNIA)as
r�
COUNTY OF RIVERSIDE)
I The undersigned, being first duly sworn,deposes and says that he or she is
of,the party making the foregoing Proposal.That the Proposal is not made in the interests of,or on
sr
I the behad of, any undisclosed person, partnership, company, association, organization, or
corporation;that the Proposal is genuine and not collusive or sham;that the Proposer has not directly
_1 or indirectly induced or solicited any other Proposer to put in a false or sham Proposal, and has not
1 directly or indirectly colluded, conspired, connived, or agreed with any Proposer or anyone else to put
in a sham Proposal,or that anyone shall refrain from Proposing;that the Proposer has not in any
manner,directly or indirectly, sought by agreement, communication, or conference with anyone to fix
the Proposal price of the Proposer or any other Proposer,or to fix any overhead, profit, or cost
element of the Proposal price, or of that of any other Proposer, or to secure any advantage against
I the public body awarding the contract of anyone interested in the proposed contract;that all
Ll statements contained in the Proposal are true; and,further, that the Proposer has not,directly or
( indirectly,submitted his or her Proposal price or any breakdown thereof, or the contents thereof,or
divulged information or data relative thereof, or paid, and will not pay, any fee to any corporation,
partnership, company, association, organization, Proposal depository, or any other member or agent
thereof to effectuate a collusive or sham Proposal
By: Daniel.8 Edds
Title: —partner-
SUBSCRIBED AND SWORN TO BEFORE METHIS DAY OF�2013 p
Subscnbed and sworn to before me
a.. a0{'' M O
this y of
inandforthestecfNoary lcz
✓/N'-
i resding at M,,
[1 6j�
TE
r{� -Capital Accounting Partners,LLC Page 12 of 25
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Cost Allocation and Master Fee PFolessiorrul
services—City of Palm Springs
SECTION B: OUR UNDERSTANDING OF THIS PROJECT
From our reading of the RFP,we understand that the City of Palm Springs is taking an important step in its
revenue management program.This step is to calculate the full cost of fee generating services. furthermore,
the City is looking for and independent analysis that includes both the preparation of an indirect cost
allocation plan as well a user fee study.The objective of the project is to calculate the full cost of services but
also be in compliance with all State requirements concerning the pricing of user fees my local government
agencies.
Critical Issues to Consider
Based on our experience of preparing over 300 cost allocation plans and nearly 70 user fee studies,we have
found that there are three critical issues our clients are looking for.
Experience Beyond Calculating a Number
♦ Nicky has specialized as a Cost Allocation Consultant her whole career. In all, Nicky has prepared
over 300 cost plans in her career.She not only has extensive experience working with cities
preparing cost plans,she has also completed full cost plans,OMB-87 cost allocation plans and rate
studies for a number of counties and special districts.
♦ Dan brings substantial user fee study experience to the Palm Springs.He has prepared over 60
user fee studies and brings the credentials of a certified Project Manager Professional(PMP).This
means he is formally trained in managing projects that are completed on time and on budget.In
addition,he brings the perspective of a Baldrige Quality Examiner,a certified facilitator,and a
certified LEAN practitioner.We are proud of the fact that no other firm can match these
qualifications.
Approach that maximizes value minimal staff disruption
Our data collection methods require us to collect 70%-80%of the data while on-site for the user fee.This
approach results in more accurate data,faster project completion times,and less impact on staff. Many firms
will produce worksheets and then ask staff to complete them.We have found that this approach results in
costly errors,excessive staff time,slower response to project completion,and lower quality data. In addition,
this transfers the responsibility of keeping project timelines fully onto the I
shoulders of City staff. t
Confidence from diligent quality controls
Within our process we have several tests for quality data.We do not move _
forward until each of our tests indicates we have quality results.We BY COLLECTING 70%80.OF THE DATA
utilized both qualitative and quantitative tests for accuracy.A qualitative WHILE WORKING WITH STAFF.WE
test might be a review by the Community Development Director looking SECURE BETTER RESULTS.FASTER.AND
WITH LESS STAFF DISRUPTION.
for results that don't"feel'right.Our quantitative tests include:
Capital Accounting Partners,LLC Page 13 of 25
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48
Cost Allocation and Mo5ter Fee Professional
r ., A c Services—City of Palm Springs
• Measuring total time assigned vs.total time available;
• Measuring our projection of current revenue against actual revenue;and
♦ Measuring our projection of revenue at full cost against actual full cost.
Capital Accounting Partners, LLC Page 14 of 25
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Cost Allocation and Master Fee Professional
Services-City of Palm Springs
SECTION C: WORK PROPOSAL
Preparing the Indirect Cost Allocation Plan
The methodology in preparing an indirect cost allocation plan is fairly universal.With the standards
established by the Federal Office of Management and Budget the method becomes widespread.Where CAP
adds value is in the process and experience that Nicky will bring to the City of Palm Springs. She is one of a
select group of cost plan preparers who have actually negotiated directly with Federal or State Auditors in the
setting of overhead rates and cost allocation plans. In addition,she has experience of preparing indirect cost
allocation plans at a state level,which are the most complex plans in existence. In addition,we utilize a
database program to build the allocation model.This tool is significantly superior over a simple spreadsheet
model.Spreadsheets cannot handle the complex"double step down"that is required by OMB A-87.See
Attachment C for Sample Cost Plan Sheets.
Scope of Services Required — Overhead Cost Allocation Plan:
Below are the basic steps the consultant will complete to meet requirements to prepare the City of Palm
Springs's Full Cost Allocation Plan and OMB A-87 Cost Allocation Plan which will be done in conjunction with
each other:
Task 1: Project initiation
Preliminary phone conference to review requirements,current allocation plan methods, means for consultant
to obtain copies of current City documentation of cost allocation plan,and to schedule initial meeting with
staff.
Task 2: Interview various departmental staff
Schedule and hold individual interviews with the necessary staff to discuss information needed by the
consultant to complete the cost plan.These meetings are held to get a thorough understanding of the
department's major functions and how CAP can best allocate the costs to all departments that receive their
services. CAP will work with the City to establish the goals for overhead cost allocation ensuring that the
development of the plan will be accurate, fair,and defensible.
Task 3: Data collection and preparation of draft plan
Collection of all necessary information from the client to prepare the draft cost allocation plans,such as
revenue and expenditure reports,functional information and statistical data.
Task 4: Prepare cost allocation plans
Develop a draft of the cost allocation plans.
Task 5: Review draft plan with staff and make changes as required
Work with client to go over draft and explain what the draft means.Talk about questions and come up with
any necessary changes.
Capital Accounting Partners, LLC Page 15 of 25
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Co5tAllocution and Master Fee ProjeSSiorud
-woj Services-City nf Pain,springs
Task 6: Review plan with staff for clarity and understanding
Meet with client to present and discuss the plans so there is a clear understanding by the client of the content
and assurance of accuracy.
Task 7: Develop allocation measures and statistics
Work with city in developing service provisions,cost categories,and allocation criteria for future programs.
Task 8: Meet with impacted staff for questions and clarity
Meet with any additional staff from other departments to answer questions and go over the cost plan to
ensure the most accurate plan will be prepared.
Task 9: Finalize cost plans
Finalize updated cost allocation plan to incorporate changes from departments during review process.
Task 10: Prepare and present Cost Allocation Plans to Select City Staff as required
Participate in presentation to City Finance staff and other select City Staff.
ANNUAL UPDATE OF COST ALLOCATION PLAN:
We understand the City is looking for a cost plan system that it can maintain the cost plan in house.We are
pleased to report that we are utilizing a web based cost plan system developed by Cost-free Systems and our
team that can be updated by the City in subsequent years.
The initial year of your plan's preparation will be done by us which will build the structure into the
system. Beyond the first year,the City will have access to update their plan with CAP by CostTree which is a
web based application that can be accessed through any web browser for an annual licensing fee which is a
fraction of the consulting cost.
This system is a highly effective tool for us and our clients.One of the advantages of a web based solution is
that we can provide support and assistance to the City as the cost plan grows and matures with City
government. Other excel based systems do not allow for change and growth easily,while this web based
system grows and changes as your city does.
We will be happy to introduce the solution to the City and train staff on the maintenance and updating of your
cost plan. One additional benefit is that the management team of Capital Accounting Partners is also the
management team of CostTree Systems and will commit to the successful implementation for the City.
The many improvements that you will experience with the new system include:
♦ Spreadsheet upload functionality—Improves the efficiency of loading supporting data Into the System
and populating the current Allocations,Budgets, Expenditures,and Departments. And takes user error
out of the equation.
• Document Repository for Audit Support—CAP by CostTree Includes a document storage area for you
to load your plan's support for easy review of your plan and its'support.
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• User Role Enhancement—The system will allow for unique user roles that enable certain users to
access and modify data based on the appropriate user functions. i.e. the Reviewer/Auditor can only
review supporting documentation and data without the ability to change and of the inputs. There are
three user roles within the system,Account Administrator(full access), Regular User(data input),and
Reviewer/Auditor(No ability to make changes)
♦ Smart Copy and Paste—Allows users the ability to accurately copy and paste values while maintaining
their associated department or fine item no matter how you have sorted or arranged your list of
departments.
♦ Error Checking—System has the functionality to run an error-check that verifies that you haven't
made any significant mechanical errors in the plan.
♦ Report formatting and Output—You can choose to export your final plan to either PDF or Excel
depending on the preference of your end user.
♦ Backup/Restore—At any given point,you can create a backup file that can be restored at any given
time. The Backup/Restore functionality not only saves the data points in your plan, but also creates a
backup of all supporting documentation that has been uploaded to the document repository.
CAP by CostTree is a revolutionary tool that will improve the City's efficiency and give you the ability to own
your plan and it's preparation. In addition to a great product,the City will also maintain a leadership team
that is committed to their client's success in the future.
Preparing the Comprehensive User Fee Study
OUTLINE OF SCOPE
Upon reviewing the City's master fee schedule we propose assessing user fees for the following:
A. Building&Safety permits;
B. Planning applications
C. Development engineering;
D. Parks and Recreation;
E. Police fees;
F. Fire Fees;and
G. Hourly rates where applicable.
CALCULATING THE COST OF USER FEES— DESIGNED PROCESSES
Our methodology for user fee studies relies on providing detailed analysis at an operational level.This
provides staff and the City council the confidence they need to set reasonable fees and policies where
required.We do this by developing driver based costing models.Some methodologies rely on a simple
allocation of cost to general fee categories.Our approach emphasizes a detailed analysis of what drives the
cost of each fee. Graphically,the methodology can be illustrated in the following manner.
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• Cost Afloration and Waster Fee Professional
User Role Enhancement-The system will allow for unique user roles that enable certain users to
access and modify data based on the appropriate user functions. i.e.the Reviewer/Auditor can only
review supporting documentation and data without the ability to change and of the inputs. There are
three user roles within the system,Account Administrator(full access), Regular User(data input),and
Reviewer/Auditor(No ability to make changes)
• Smart Copy and Paste-Allows users the ability to accurately copy and paste values while maintaining
their associated department or line item no matter how you have sorted or arranged your list of
departments.
♦ Error Checking-System has the functionality to run an error-check that verifies that you haven't
made any significant mechanical errors in the plan.
• Report formatting and Output-You can choose to export your final plan to either PDF or Excel
depending on the preference of your end user.
♦ Backup/Restore-At any given point,you can create a backup file that can be restored at any given
time. The Backup/Restore functionality not only saves the data points in your plan, but also creates a
backup of all supporting documentation that has been uploaded to the document repository.
CAP by CostTree Is a revolutionary tool that will improve the City's efficiency and give you the ability to own
your plan and it's preparation. In addition to a great product,the City will also maintain a leadership team
that is committed to their client's success in the future.
Preparing the Comprehensive User Fee Study
OUTLINE OF SCOPE
Upon reviewing the City's master fee schedule we propose assessing user fees for the following:
A. Building&Safety permits;
B. Planning applications
C. Development engineering;
D. Parks and Recreation;
E. Police fees;
F. Fire Fees;and
G. Hourly rates where applicable.
CALCULATING THE COST OF USER FEES— DESIGNED PROCESSES
Our methodology for user fee studies relies on providing detailed analysis at an operational level.This
provides staff and the City council the confidence they need to set reasonable fees and policies where
required.We do this by developing driver based costing models.Some methodologies rely on a simple
allocation of cost to general fee categories.Our approach emphasizes a detailed analysis of what drives the
cost of each fee.Graphically,the methodology can be illustrated in the following manner.
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Cost Allocation and moster Fee Professional
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Appica6M lMalx _.._.__
FP �1
�-r- Initial ApP7lcatian Rwlew --- ,
Planned slm Plan Review
_...} Revdifiws Ncallon for
CoMlNans cl APp=l
i
I
PIaMIIIB DIIMIOf
fteparekepmforPlannIng
[ommisslIO"M
Step One: Calculate the Full Cost of Services
Calculating the full cost of services begins with reviewing the budgeted expense and revenue data.This gives
us a high level overview of costs and revenues and allows us the ability to see the `bigger" picture. By"full
cost" we mean the total cost at a division or departmental level.We also compare the full cost with the total
revenue so that leadership can understand the relationships between direct and indirect costs.
Step Two: Calculate the Cost of Individual Fee Items
Staff interviews are done on-site in a series of focus group style workshops. Each workshop series can span 2-3
days depending up the size of the community, number of staff,number of fees,and number of work units that
are involved.These workshops are designed specifically to maximize staff input with the least disruption to
their day to day work.
WORKSHOP SERIES #1
This first workshop series will provide two rounds of interviews with each work unit that is involved.Each
interview will last.2-3 hours. For example, during this first workshop we will want to meet with Planning staff
for 2-3 hours on day one and then again for approximately 2 hours on day two or three.This gives us ample
time to understand operations,identify costing issues that will be important to understand,and time to
review and confirm our data.
This first set of interviews will have five objectives:
=t.
1. Identify all practices or policies that drive cost recovery.
2. Identify core business processes that drive the cost of services.
These are both direct project activities as well as those
activities that support the department or division.
3. Identify components of cost such as salaries,benefits, non-
BY COLLECTING M.-BB%OF THE DATA WHILE
personnel costs,contractor Costs,etc. WORKING WITH STAFF,WE SECURE BETTER
RESULTS FASTER,AND WITH LESS STAFF
4. Calculate annual productive hours available.This is done by DISRUPTION.
subtracting vacation,sick,personal leave, holiday,training,
meeting,and break time from the standard 2080 hour hours.
5. Begin and complete gathering time estimate data with staff.
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ICost Allocation and Muster Fee Professional
Servires—City of Palm Springs
WORKSHOP SERIES#2
The second workshop will again be comprised of two separate interviews with each work unit that is
represented in the study.As In workshop#1 we will schedule the Initial interview followed by a second one on
subsequent day(s). However,these interviews are substantially shorter and often the second interview session
is not necessary.
There are four objectives to this second workshop!
1. Review and update time estimates.
IUD( r,)136(I 1 AR:
2. Assign time to support activities such as customer service, A",
long range planning,management&administration,etc. 11 sx
'het oco»,'et [ n—,
3. Review staff salaries,budgeted expenses, FTE rretl H I,_.tr long aoiect
assignments,etc. came=,more,aB disruption,
4. Review preliminary results for any obvious missing data. greater probaotliti=s for errors,
waste,and ispec:data
Step Three: Quality Check and Formal Review
our quality checks are based on two broad criteria
Qualitative checks:
• Do the results make sense to staff and departmental leadership?
• Can staff explain to a customer or citizen how we arrived at the numbers we have calculated?
Quantitative checks:
• Quantitative checks assure compliance with state law requiring that user fees be aligned with the cost
to actually provide the service.
Quantitative Checks Acceptable Margin of
Error
1. Budgeted expenses entering the cost models must equal total expenses 0%,:..
accounted for in the costing model.
2. Projected revenue from fees must closely match actual revenue from +or-5%-1096
fees.
3.Available staff time must be fully accounted for in the costing models. 0%
4.Total revenues from fees and contributions from the general fund or 0%
other sources must match total expenses.
Step Four: Provide Comparison Study
We offer to the City of Palm Springs a two step approach to comparative surveys. In step one we will identify
5-10 specific fees for each division or department reviewed. In step two we will also identify 2-4 development
projects that are routine to the City.This approach will provide the City with a clear picture of where it stands
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Cost Allocation and Master fee Professional
Services City of Palm Springs
in comparison with surrounding jurisdictions and their fees.A simple fee by fee comparison does not provide
adequate comparative analysis as many cities may have identical fee descriptions but incorporate very
different services into each. By adding the additional step of pricing specific development projects the City will
have a better basis for comparison.
750 SF Room Addition. All Fees Combined
$1,400
$1,200 — -----
gaoo
$aoo } --- -
$200
$- - -T
City A City B City C Client City City E City F
Step Five: Prepare Report
After all data has been identified,costs calculated,and final reviews by staff have been completed,we will
then prepare a full and comprehensive report.We take great pride in our reports and our clients appreciate
the full and complete nature of this document.The City will find in its report a complete discussion of direct
costs,indirect costs,comparisons of revenue at full cost and current costs,and recommendations for policy
development that will guide the City in its fee setting activities.
At a minimum our reports will provide a comprehensive:
✓ Analysis of the direct cost of services;
✓ Analysis of the indirect activity cost that supports the direct processing of applications and permits;
✓ Analysis of cost from City overhead;
✓ Analysis of the per unit cost of each service;
✓ Analysis of the current cost recovery rate for each service:
✓ Analysis of cost and recovery by fee category such as planning fees approved administratively vs.
planning fees approved by the planning commission;
✓ Analysis of cost recovery given a targeted cost recovery rate;
✓ Annual summary of revenue recovery from current fee levels;
✓ Annual summary of revenue recovery at full cost recovery;
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✓ Annual summary of revenue sources such as fees vs.general fund;
✓ Annual summary of sources of cost such as City overhead,department overhead,and direct activity
costs;
✓ Annual summary of cost by core business processes;and
✓ Analysis of fee comparisons against five benchmark cities.
✓ Recommendations regarding cost recovery of user fees
The following graphics illustrate the quality of our reports and the level of analysis that we provide.
Cost and Revenue Comparisons
Comparison of Total Costs Vs.Total Revenues
61014C.,
S75.000
UWiM CIH COHF. .
5
Comparing the
--�_ ..... components of cost
against revenues provide
the"big"picture view of
cost of services.
BY COMPARING TOTAL COST AND TOTAL REVENUES BY IN DNIDUAt COMPCHAENTS THE CRY COUNCIL CAN HAVE A PAST VISUAL ANALYSIS FOR SETTING
COST RECOVERY POLICY.
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Cost Allocation onalMoster Fee Professional
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Understanding cross
departmental support Such as
engineering,transportation,
and fire prevention.
Components of Cost
MIwNbTaWrMl�lsie+t/Par oaltFWO%K
Demolition of Historic Landmark 0 0 0 s0 s0 0
Demolition of Historic Landmark 0 0 0 $0 50 0
Disaellonary use 19,670 51873 191 $25,934 S31,484 (14,450;
D icreLlonary Use 2,093 2,013 112 $9,242 $5,774 (146H)
0"Overlay Dlstrltt Development 11,569 1,020 1'"1 $15,629 $6120 19Ta_O91
DWP Overlay OHtria Development 0 0 0 $0 $0 0
PswbllsAmem of Historic landmark
Inyentnry 0 0 D so $0 v_ 0 .
EstabllsAment of Hmtr,flk landmark
Inrentpry 0 0 0 $0 $0 D
Amual To[ah
$1p86,009 5483A83 (56p2:1261
OUR REPORTS CAN PROVIDE THE CITY WITH A VARIETY OF ANALYTICAL DATA.THIS GRAPHIC SHOWS THE ANNUAL FULL COST,THE FULL COST BY
THE SOURCES OF COSTS.THE CURRENT ANNUAL REVENUES WITH A COMPARISON OF ANNUAL COST AND REVENUES,IN ADDITION,WE CAN
SHOW THE CURRENT COST RECOVERY RATE AND THE REQUIRED INCREASE TO BRING THE FEES UP TO FULL COST RECOVERY ON A CATEGORY
BASIS.
Our reports can provide the City of Palm Springs with a variety of analytical data.This graphic shows the
annual full cost,the full cost by the sources of costs,the current annual revenues with a comparison of annual
cost and revenues. In addition,we can show the current cost recovery rate and the required increase to bring
the fees up to full cost recovery on a category basis.
Step Six: Council Presentations
The RFP does not reference a presentation to the City of Palm Springs City Council.However,it would be
unusual to do a cost of service study and not have a presentation to the Council. For this reason,we have
included on within our pricing structure,
Prior to the Council presentation and/or final stakeholder presentation,we will make all necessary
adjustments to the draft report.This report,after review by staff,will form the basis of the Council
presentation.We will work with staff to determine what type of presentation will be best suited for the City.
Some councils want full and comprehensive presentations with full descriptions of methodologies,results,
policy considerations,etc.Others want a briefer presentation that will provide a summary of costs and results.
Whatever the City decides we will be available to meet the needs and provide a presentation that will work for
the City of Palm Springs.However,we do find that a fuller presentation during study sessions provides the
best opportunity for the Council to have a full understanding of the project.
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SECTION D: SCHEDULE PROPOSAL
SCHEDULE
We realize that the RFP schedule calls for the award of the project to be on September 9.We have set the
project start date on October 1". This date is set arbitrarily assuming that factors beyond anyone's control
may slow progress toward the initiation of the project-
Year Wk2 Wk3 Wk Wkl Wk3 Wk Wk0 Wk Wk Wk3Wk Wit Wk1 Wk3 Wkd
Task 1�Pinjectiritiadon
Task 2:Interview various 0epatlment'al staff
Task A.Oata collection and preparatbn of draft plan
Task a:Prepare ful cost alloceoon plan
Task 5:Review draft plan wlh staff and make changes as reRUlred
Task 6:Resew don with rteff for ctsrky and understaMing
Task J:Develop aloGlion useaSN05 aM SIMIstKS
Task 6:Meet wkh Impacted staff for Ruesdonk a clack,
Task 9:Fbalpe,full cost plan
Task 10.Prepare and present full Cost allocation plan to Select City
Staff as reRuired
Step are:Calculate the Fiat Cost Of Services
Rep Twa:Calculate OM co"of IMIvIdual fee Items
Step Three Qu Iiu,Clack and Formal Review
Step Fpuc preside Comparison Study
Step Flue:Prepare Report
Step SW council and Stakeholder Presentatkns
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Cost Allocation and Master Fee Profession
i
ATTACHMENT A:
NICOLIE (NICKY) CA55 LETTINI, MBA- OWNER/PARTNER
Your project leader has prepared over three hundred complete cost plans
and cost of service analysis in her twelve years of consulting. As a former -
senior consultant with Maximus and Public Resource Management Group, i
LLC(now MGT) and now with her own company,Nicky gained a broad base
of experience working for state and local governments throughout California,
Nevada,Oregon,Washington,Texas,New Mexico,and Colorado.Her
excellent working rapport with the State Controller's staff and her genuine
desire to help her clients provides a level of service second to none.
Because of her strong desire to provide unprecedented customer satisfaction
Nicky formed Capital Accounting Partners,LLC(CAP)in partnership with
Tillman Sherman. Her reputation for attention to detail and responsiveness
to client needs quickly built her client roster.
Nicky's number one goal in every project is to provide the highest level of service to her client.She brings a
depth of knowledge and experience to the complexities of cost plans and cost of services analysis.Most
importantly she spends the time necessary working with you and your staff on the level of detail needed to
take full advantage of every benefit the cost plan can provide while assuring costs are properly allocated by
department.Nicky is able to identify practices and procedures to make future plans easier to prepare. She will
offer alternatives for improving the process,when appropriate.
Her commitment is to see that the plan is done right the first time while exceeding all of your expectations.
She is happy to report that EVERY ONE of her over two hundred and ninety cost plans has been turned in on
time or before the due date.
In addition to Nicky's commitment to her clients,she is also committed to staying abreast of local government
rules and regulations including the Office of Management and Budget A-87 Regulations and has received
formal training endorsed by the State of California and is scheduled for refresher course this September.
Nicky has a Bachelor of Science in Managerial Economics from University of California,Davis and has her MBA
in Accounting from California State University,Sacramento.
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DANIEL B. EDDS, MBA, PIMP - PROJECT CONSULTANT _
Dan is a project manager with Capital Accounting Partners(CAP). He has
more than thirteen years of experience consulting within the public sector.
His operational improvement work has involved problem solving and
process improvement opportunities for core business processes. In these
projects,business processes are evaluated for cost,and opportunities for
improvement.The result is a clear understanding of how to improve the
delivery of services; lower long term operational cost,and increase staff
productivity. Mr.Edds has extensive training in facilitation,group decision-
making and strategic planning from the Institute of Cultural Affairs.
Prior to joining CAP he was a project manager with FCS GROUP,a regional
firm out of Redmond,Washington.He also served for five and a half years
as senior project manager with a major international governmental
consulting firm with offices in the western United States. In that position, he conducted and managed financial
and operational analysis with numerous counties and cities. His work has involved process analysis for the
purpose of restructuring fees for full cost recovery of Land Development, Planning, Public Works, Recreation,
Police,Fire Prevention, Hazardous Materials,GIS, Library and other services.
Mr. Edds holds a Masters of Business Administration from the Albers School of Business and Economics at
Seattle University.He is a regular presenter at state GFOA conferences,and has been professionally training in
strategic planning and group facilitation. In addition he is a Kaplan Norton Balanced Scorecard Certified
Graduate and he is a Baldrige Quality Award Examiner through the Washington State Quality Award program.
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Capital Accounting Partners, LLC
® , Preparation
Fee study, City of Palm
Springs-
• . • . .
November 26, 2013
59
02
COST AND SCHEDULE PROPOSAL
COST PROPOSAL
Capital Accounting Partners, LLC(CAP)is submitting for your consideration our proposal to provide the
City of Palm Springs's Comprehensive Fee and Rate Study. CAP has extensive expertise in both of these
services, This proposal is valid for one hundred twenty (120)days from November 26, 2013
The following is a fixed, not to exceed, price based on our reading of the RFP.Our method of payment is
to invoice monthly based on the work actually performed.
We will furnish all materials and services set forth herein subject to all conditions outlined in the
Proposal Document at prices indicated below:
iE
Consultants
Carnsultaint Hours and Cash
Full Cost Allocation Plan
Task Plan
Le[tinl Edds Totals
$ 155 $ 155
Task 1:Project initiation 1 5 155
Task 2:Interview various departmental staff 8 $ 1,240
Task 3:Data collection and preparation of draft plan 10 S 1,550
Task 4:Prepare full cost allocation plan 30 $ 4,650
Task 5:Review draft plan with staff and make changes as required 8 $ 1,240
Task 6:Review plan with staff for clarity and understanding 5 $ 775
Task 7:Develop allocation measures and statistics 10 $ 1,550
Task87 Meet with impacted staff for questions and clarity 4 $ 620
Task 9:Finalize full cost plan 10 S 1,550
Task 10:Prepare and present full Cost Allocation Plan to Select CR Staff as re wired 6 1 $ 930
Total Estimated Labor 92 1 $ 14,260
Total Suoget 5 15;2
Comprehensive User Fee Study
Task Plan
Step One: Calculate the Full Cost of Services 36 $ 5,580
Step Two: Calculate the Cost of Individual Fee Items 48 $ 7.440
Step Three: Quality Check and Formal Review 36 $ 5,580
Step Four: Provide Comparison Study 24 $ 3,720
Step Five: Prepare Report 24 $ 3,720
Step Six: Council and Stakeholder presentations 16 $ 2,480
Total Estimated Labor 0 184 $ 28,520
Total Budgeti', - ,5 30,020
Total Project Budget :t
FIXED FEE:
The total fixed fee for full preparation and support of the User Fee Study to include tasks listed in the
Scope of Service in the Technical proposal shall be$45,280.
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Additional and optional services that may be requested.
1) Stakeholder and Council Subcommittee meeting to review results of the user fee study:
a, labor=$1600(day rate plus travel time); and
b. Expenses=$750.
2) Additional Council meeting to review results of the user fee study.
a. Labor=$1600(day rate plus travel time); and
b. Expenses=$750.
3) Additional Council and/or Council Subcommittee meeting to review results of the cost allocation
plan.
a. Labor=$1600(day rate plus travel time);and
b. Expenses=$750.
Fixed, not to exceed cost=$52,330
HOURLY RATES
Should work outside the Scope of Service as identified in the Request for Proposal be requested of the
p q P 4
consultant,the hourly rate for each consultant shall be:
For Nicolie Cass Lettini, MBA,$155(one-hundred fifty-five dollars)per hour;
For Dan Edds,$155 (one-hundred fifty—five dollars)per hour.
ASSUMPTIONS
The assumptions covered in this proposal include:
1. Data supplied is in good order and accurate.
2. Agreed up schedules for on-site visits will be maintained.
3. Participants in data collection workshops and review discussions will have the necessary
authority required to make recommendations on fee schedule structure and services.
4. The RFP covers the fees that appear in the City's Master Fee Schedule.
5. The project covers userfees and does not include impact fees,fines, in-lue-of-fees, or taxes.
6. Each costing model will require a reasonable number of iterations.Typically 2-3. Excessive
iterations, multiple scenarios, and additional calculations beyond calculating the cost of user
fees may require additional compensation.
7. Data requests will be provided in good order, in timely fashion, and in a format that can be
easily accessed.
8. We understand that organizational restructuring and staffing fluctuations do happen and we are
happy to work within these normal variances. Occasionally, however,projects have known to
come to a complete halt because of new leadership and massive organizational restructuring.
We understand these realities but occasionally these events do create the need for additional
work and charges.
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ATTACHMENT"C"
*THIS FORM MUST BE COMPLETED AND SUBMITTED IN A SEPERATELY SEALED ENVELOPEtf2"Cost
Proposal",NOT with Envelope N1,Technical/Work Proposal*)
REQUEST FOR PROPOSAL(RFP 808-14)
COMPREHENSIVE FEE AND RATE STUDY
COST PROPOSAL
Responding to Request for Proposal No.OS-14 Comprehensive Fee and Rate Study, I/WE will accept as
full payment the following"not-to-exceed"fixed fee including all associated fees(i.e, printing costs,
attendance at meetings,etc.)and be based on achievement of deliverables,which should be outlined on
the consultant's proposed timeline for providing all services to complete the Comprehensive Fee and
Rate Study.The undersigned Proposer proposes and agrees to provide all work and services necessary
to deliver a comprehensive fee and rate study as defined in the Scope of Work herein,
TOTAL NOT-TO-EXCEED AMOUNT:
$52,330
(PRICE IN FIGURES)
Fifty two thousand,three hundred and thirty dollars.
(PRICE IN WORDS)
• In the event that additional services are required beyond the scope of work as defined in this
document, please provide your hourly rate(regular business hours only*)$155/hour
• Hourly rate for additional services not covered in RFP document.$155.
• Hourly rates for all Project Team members: $155.
• Administrative Rates for additional services not covered in RFP
• document.$N/A
• Hourly rate for any sub-consultant used in this Fee Study not covered
• in this RFP document.$N/A
• Indicate time in calendar days,for completion after receipt of notice to proceed: 120(based
upon the City's ability to maintain an agreed upon schedule DAYS(NTP).
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EXHIBIT"D"
SCHEDULE OF COMPENSATION
COMPREHENSIVE FEE AND RATE STUDY
COST PROPOSAL
The following "not-to-exceed" fixed fee including all associated fees (i.e. printing costs, attendance at
meetings, etc.) to be based on achievement of deliverables, which should be outlined on the
consultant's proposed timeline for providing all services to complete the Comprehensive Fee and Rate
Study. The undersigned Proposer proposes and agrees to provide all work and services necessary to
deliver a comprehensive fee and rate study as defined in the Scope of Work herein.
TOTAL NOT-TO-EXCEED AMOUNT:
52 330.00
(PRICE IN FIGURES)
Fifty Two Thousand, Three Hundred and Thirty Dollars
(PRICE IN WORDS)
In the event that additional services are required beyond the scope of work as defined in this document,
please provide your houdy rate (regular business hours only')
Hourly rate for additional services not covered in RFP document. $ 155.00
Hourly rates for all Project Team members: $ 155.00
Administrative Rates for additional services not covered in RFP
document. $ n/a
Hourly rate for any sub-consultant used in this Fee Study not covered
in this RFP document. $ n/a
Indicate time in calendar days,for completion after receipt of notice to proceed:
120(based upon the City's ability to maintain an agreed upon schedule 120 days(NTP).
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66
EXHIBIT"E"
SCHEDULE OF PERFORMANCE
S'lin,irces—City of Palm Spring.
SECTION D: SCHEDULE PROPOSAL
SCHEDULE
We realize that the RFP schedule calls for the award of the project to be on September 9.We have set the
project start date on October 1't.This date is set arbitrarily assuming that factors beyond anyone's control
may slow progress toward the initiation of the project.
WkI Wk2 Wk3 Wk<Wkl W1,3 Wk Wk6 Wk Wk Wk3Wk ark Wk3 Wk3 Wk4
RAR
Task 1:Project Initiation
Task 2:Interview various departmenbl staff
Task 3:Data collection and preparation of draft plan
Task a'Prepare full cost allocation pan
Task S.Review draft plan with staff and make ciwn es as required
Task G:Review plan with staff for clarity and undenta Ming
Task J:Develop allocation measure...d statislics
Task 9:Meet with ImpacteE staff for questions and clarity
Task 9:Final—full cost pan
Task to:Prepare and present lull cost allocation Plan to Select city
Slaff az aired
Compreftenslue User Fee Studr,
Step one:Calculate the Full COA of Services
Step Two:Calculate the Cog of Individual Fee Items
Step Three+Quality CMck a rid Formal Review
Step four:Provide Comparison Study
Step Five:Prepare Report
Step Sik'.Council and Stakeholder Presentations
64 67
1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET
FOR FISCAL YEAR 2013-14.
WHEREAS, Resolution No. 23341 approving the Budget for the Fiscal Year
2013-2014 was adopted on May 15, 2013; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget.
NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS: that the Director of Finance is authorized to record inter-
fund cash transfers as required in accordance with this Resolution, and Resolution No.
23341, adopting the Budget for Fiscal Year 2013-14 is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
001 1300 43200 $52,330
General Fund Finance Dept. Contractual
Services
Purpose: Funding for User Fee Study Agreement.
SECTION 2. SOURCE
Fund Activity Account Amount
001 29301 $52,330
General Fund Fund Balance
ADOPTED THIS 5TH DAY OF February, 2014.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
58
Resolution No. _
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
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