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HomeMy WebLinkAbout12/5/2001 - STAFF REPORTS (4) DATE: December 5, 2001 TO: City Council FROM: Director of Finance and Treasurer RE: State Mandated Cost Claiming Services — DMG Maximus Contract Recommendation: It is recommended that the City Council approve a contract with DMG Maximus to file claims on behalf of the City with the State for mandated cost reimbursement for a flat fee of$7,600. Summary: The proposed contract would pay DMG Maximus $7,600 to file all the City's claims for mandated cost reimbursements for Fiscal Year 2001-02. The expected revenue to the City for this year is $50,000. Background: When the State mandates local governments to provide new services or services beyond the normal levels the State is required to reimburse the costs of those services. Unfortunately, it is not automatic or formulaic reimbursement, and the record keeping, reporting and filing documentation can be onerous. DMG Maximus (formerly David M. Griffith &Associates) has been filing these types of claims for the City for the last fifteen years. They have done an excellent job at a reasonable cost. Last fiscal year, the City received net reimbursement of about $120,000, This included payment from the State of some old claims which had been filed on the City's behalf by DMG Maximus. For the current year, the City should receive about $50,000. DMG Maximus is familiar with the City's reporting requirements and types of documentation. In addition to efficiently filing our claims, the firm is a de facto lobbyist in Sacramento, ensuring thatthe State abides by its own rules. The cost of the contract is paid by the funds recovered. Staff recommends approval of the Minute Order awarding the contract. Submitted by: Approved: Thomas M. Kanarr David H. Ready Director of Finance and Treasurer City Manager Attachments: Letter from DMG Maximus Contract Minute Order AXIMus Helping Government Serve The People April 24, 2001 Mr. Tom Kanarr Director of Finance City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Subject.- State Mandated Cost Claiming Services Dear Mr. Kanarr: MG-NIAXIMUS is pleased to submit this proposal to renew its agreement with the City of Palm Springs to provide comprehensive State Mandated Cost Claiming Services for the 2001-2002 fiscal year. We propose to prepare all state mandated cost claims based on claiming instructions issued by the State Controller during the fiscal year. For the 2001-2002 fiscal year, DMG-MAXIMUS will provide all necessary services to prepare and file the following state mandated cost claims: ➢ Annual Claims due January 15, 2oo2 ➢ All Other Eligible New Claims ■ New reimbursement claims approved by the Commission on State Mandates for which claiming instructions are issued in FY 2001-2002 The 2001-2002 fiscal year will be another busy claiming year. There are 17 annual claims and there will be a number of new first-time claiming opportunities. The new claiming opportunities will include new claims covering multiple fiscal years. A discussion of each claiming opportunity is presented below. This proposal contains proprietary information. Please contact DUG-MAXIMUS before releasing any part of the proposal 4320 Auburn Boulevard, Suite 2000 ■ Sacramento, CA 95841 • 916.485.8102 9 FAX 916.485.0111 34 Z City of Palm Springs Annual Claims Annual claims are those claims which are funded in the State Budget and must be filed by the statutory deadline of January 15, zooz. These include actual cost reimbursement claims for fiscal year z000-zoos and estimated reimbursement claims for the zoos—zooz fiscal year.The 18 possible claims include the following: ➢ Absentee Ballots — election costs associated with issuing and processing absentee ballots. ➢ Airport Land Use Planning — this requirements of this mandate apply in cases where a city participates in an Airport Land Use Commission. ➢ Brendon McGuire Act — election costs incurred by an agency in the event that an elected candidate dies before taking office. ➢ Domestic Violence Arrest Policies & Procedures — reimburses the cost of developing a revised policy, training employees and carrying out additional activities during each respective domestic violence incident. ➢ Firefighters' Cancer Presumption — worker's compensation, benefits, administrative and legal costs in firefighter cancer cases. ➢ Firefighter: SIDS Training — cost of providing mandatory training to fire fighters when responding to the scene of an infant death. ➢ Investment Reports — rendering Quarterly Investment Reports to the local governing body, and preparing the Annual Statement of Investment Policy. ➢ Mandate Reimbursement Process — costs of preparing reimbursement claims, participating in the SB go and test claims process: including all DMG-MAXIMUS' fees and local agency staff time. ➢ Misdemeanors: Booking & Fingerprinting — time to provide misdemeanant verification that they were booked and fingerprinted. ➢ Open Meetings Act — agenda preparation, editing, review and posting costs required by the Ralph M. Brown Act. ➢ Peace Officers Bill of Rights — includes the costs of personal/labor relations, legal counsel, and law enforcement officers that are involved in POBR matters to the extent that exceed Skefie_y requirements. ➢ Peace Officers' Cancer Presumption — worker's compensation, benefits, administrative and legal costs in peace officer cancer cases. ➢ Rape Victim Counseling Center Notices — providing rape victims information regarding counseling and treatment services. ➢ Regional Housing Need Assessment — provides for reimbursement of costs incurred bringing the housing element into compliance with the regional housing need assessment. AXIMUS 2 April 24, 2001 303 City of Palm Springs ➢ Stolen Vehicle Notification — notifying vehicle owners or operators regarding the location of their stolen vehicle. ➢ Threats Against Peace Officers — requires local agencies to pay moving expenses if there are credible threats against the safety of either the peace officer or immediate family members. ➢ Two-way Traffic Signal Communication Controller — requires local agencies to purchase traffic signals that comply with new state requirements when replacing two-way traffic signals. ➢ Very High Fire Hazard Zones — the cost of developing an ordinance and procedures to comply with the new State program requiring additional actions by all owners that have property in these extra hazardous fire areas. Other Opportunities—Claims Approved by the Commission on State Mandates The Commission has already determined that a reimbursable state mandated cost exist in this program and Controller's claiming instructions are scheduled for release during this fiscal year. The claim approved by the Commission is: ➢ Domestic Violence Incident Reporting — requires agencies to include in their domestic violence incident report additional information regarding the use of alcohol and controlled substances by the alleged abuser, and any prior domestic violence response to the same address. ➢ Health Benefits for Survivors of Peace Officers and Firefighters — provides for fully paid benefits for the spouse and any dependent children of a peace officer or firefighter that had a job related death. ➢ Law Enforcement: Elder Abuse Training — requires all peace officers at the supervisory level or below that has field or investigative duties to complete training in elder abuse. ➢ Photographic Record of Evidence — requires law enforcement agencies to provide a photographic record of evidence in lieu of actual drugs for court proceedings. ➢ Sexual Harassment Training in the Law Enforcement Workplace — reimburses the trainers and law enforcement officers receiving sexual harassment training, ➢ Stray Animals (Animal Adoption) — requires cities and counties to provide a wide range of new services to stray animals picked up by or delivered to the local government. New Claims Pending Approval By The State In addition to the claims already approved, there are also several other claims that are pending before the Commission, which appear to have excellent chances for AXIMUS 3 April 24, 2001 a A Y City of Palm Springs approval. In some cases, the only question is the scope of the mandate and not whether a reimbursable mandate exists. The claims in this category include the following: ➢ Brown Act Reform — expands the types of meetings that are covered by the Ralph M. Brown Act (Open Meetings Act). ➢ Domestic Violence Arrests and Victim Assistance — expands the group of victims entitled to receive the domestic violence card, requires training to recognize the signs of domestic violence, and adds to policies and standards for officer's responses to domestic calls. ➢ Drunk Driver License Suspension (Admin Per Se) — reimburses peace officers costs for the time spent in the suspension or revoking of driver licenses when a driver is arrested for driving under the influence. ➢ Megan's Law — requires law enforcement agencies to provide a public access system containing video photographs of sex offenders. ➢ Sex Crimes Confidentiality — requires victims of sex crimes to be notified they have the right to keep their name and address confidential, and if requested, the law enforcement agency must do so. ➢ California Firefighter Incident Report System — the initial equipment and training on the computer system should be reimbursable, the state is still contesting the additional time to complete the reports. ➢ Domestic Violence Incident Reporting and Treatment Services — requires law enforcement to prepare an additional report at each domestic violence case. This is an expansion of the claim already found to be a mandate. ➢ Grand Jury Proceedings — reimburses cities for the time to prepare responses to County Grand Jury reports. We anticipate that some of these claims will be processed before the end of the 2001- 2002 fiscal year. Other Benefits and Services Included as part of services provided for the cost proposed, DMG-MAXIMUS provides the most comprehensive services available to any city. These services include: • Complimentary Newsletter— Our newsletter helps to keep the City on top of current issues and forthcoming claiming opportunities. • Fall-time Attorne�ff— DMG-MAXIMUS has a full-time, senior attorney, Ms. Pamela Stone, available to provide limited consultation with the City if applicable mandate issues should arise. As the mandate process is becoming 1AMMUS y April zy, 2001 349 !' City of Palm Springs more legalistic, DMG-MAXIMUS found it necessary to have a legal advisor on staff to help with current issues or to assist the City if it should be interested in pursuing a new test claim before the Commission on State Mandates. Any actual test claim or incorrect reduction claims preparation will be covered in a separate agreement. • Discount for the California Cities SB ,yo Service — DMG-MAXIMUS offers membership in the California Cities SB go Service. This Service, endorsed by the League of California Cities, offers cities a wide range of benefits in the mandated cost area. If the City is interested In the service, all of our clients are eligible to receive the service for a 5o% discount. DMG-MAX►MUS is the clear leader in providing the highest quality and most comprehensive services to cities to assist them in maximizing their claims. COST DMG-MAXIMUS is proposing the same payment process option that you selected last year. There has been a small increase to partially offset our cost-of-living expenses. ♦ Annual Claims and All Other New Claims: Fixed fee We propose to complete all annual state mandated cost reimbursement claims and all new or first-time state mandated cost reimbursement claims for the City for a fixed fee of seven thousand six hundred dollars 07,600). This fee will be billed in four equal installments: September 2001, December 2001, March 2002, and June 2002. If your agency prefers to structure this agreement differently, we are pleased to discuss it with you. DMG-MAXIMUS is very flexible and will gladly tailor a payment approach to meet your City's preferences. Multi-Year Option DMG-MAXIMUS would also like to offer your City the option to obtain a three-year contract. Choosing a multi-year option would not only decrease your agency's annual hassles of the contract approval process, but it would also secure the services of DMG-MAXIMUS at a guaranteed rate. Following are the rates for a three-year contract: 2001-2002 $7,600.00 2002-2003 $8,000.00 2003-2004 $8,400,00 "Mus 5 April 24, 200: 3A6 City of Palm Springs Contract Please prepare a contract in your format to reflect this year's proposal including the three-year option, if you choose,and mail to our Sacramento office for signature. We are excited about the State mandated claiming opportunities available to your City this year. If you have any questions, please contact Allan Burdick or me at (916) 485- 8io2 or Terry Birgel in the So. California office at (626) 821-0725. Thank you for considering our proposal. We look forward to working with you and your staff again. Sincerely, C5-') Brad1(eV?urgess Vice President )WMUS 6 April 24, 2001 3 ,97 CITY OF PALM SPRINGS CONTRACT SERVICES AGREEMENT FOR DMG MAXIMUS (SHORT FORM) THIS CONTRACT SERVICES AGREEMENT(herein "Agreement') is made and entered into this 5th day of December, 2001, by and between the CITY OF PALM SPRINGS, a municipal corporation (herein "City") and DMG Maximus (herein "Contractor"), (The term Contractor includes professionals performing in a consulting capacity). NOW, THEREFORE, the parties hereto agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, the Contractor shall perform the work or services set forth in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by reference. Contractor warrants that all work and services set forth in the Scope of Services will be performed in a competent, professional and satisfactory manner. 1.2 Compliance With Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "B" and incorporated herein by this reference, but not exceeding the maximum contract amount of$7,200 Dollars ("Contract Sum"). 2.2 Method of Payment. Provided that Contractor is not in default under the terms of this Agreement, Contractor shall be paid as outlined in Exhibit "B", Schedule of Compensation. 3.0 COORDINATION OF WORK 3.1 Representative of Contractor. Terry Birgel is hereby designated as being the principal and representative of Contractor authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith. -1- 3 r4 $ 3.2 Contract Officer. Thomas M. Kanarr is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith ("Contract Officer"). The City Manager of City shall have the right to designate another Contract Officer by providing written notice to Contractor. 3.3 Prohibition Against Subcontracting or Assignment. Contractor shall not contract with any entity to perform in whole or in part the work or services required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Any such prohibited assignment or transfer shall be void. 3.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth. Contractor shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Contractor shall not at anytime or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.0 INSURANCE AND INDEMNIFICATION 4.1 Insurance. The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance: (a) Comprehensive General Liability Insurance. A policy of comprehensive general liability insurance written on a per occurrence basis in an amount not less than either (i) a combined single limit of $1,000,000.00 or (ii) bodily injury limits of $500,000.00 per person, $1,000,000.00 per occurrence and $1,000,000.00 products and completed operations and property damage limits of $500,000.00 per occurrence. If the Contract Sum is greater than $500,000.00, the policy of insurance shall be in an amount not less than $5,000,000.00 combined single limit. (b) Worker's Compensation Insurance. A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the Contractor and the City against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Contractor in the course of carrying out the work or services contemplated in this Agreement. (c) Automotive Insurance. A policy of comprehensive automobile liability insurance written on a per occurrence basis in an amount not less than either(i) bodily injury liability limits of $500,000.00 per person and $1,000,000.00 per occurrence and property damage liability limits of$250,000.00 per occurrence and$500,000.00 in the aggregate or(ii) combined single limit liability of$1,000,000.00. Said policy shall include coverage for owned, non-owned, leased and hired cars. (d) Additional Insurance: Policies of such other insurance, including Professional Liability Insurance, as may be required in the Scope of Services, Exhibit "A". -2- 3A 1 All of the above policies of insurance shall be primary insurance and shall name the City, its officers, employees and agents as additional insured, except that the insurance shall not be primary nor shall the City be named as an additional insured for the Worker's Compensation Insurance nor the Professional Liability Insurance. The insurer shall waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their respective insurers. The Contractor's General Liability and auto policies of insurance shall provide that said insurance may not be amended as it affects the City or canceled without providing thirty (30) days prior written notice by mail to the City. The certificate of insurance shall provide that all insurance will not be cancelled or amended as it affects the City without providing 30 days written notice to the City by regular mail. In the event any of said policies of insurance are canceled, the Contractor shall, priorto the cancellation date, submit new evidence of insurance in conformance with this Section 4.1 to the Contract Officer. No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. The Contractor agrees that the provisions of this Section 4.1 shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor's activities or the activities of any person or persons for which the Contractor is otherwise responsible. The insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the City Manager or designee of the City due to unique circumstances. 4.2 Indemnification. Contractor agrees to indemnify the City, its officers, agents and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, including paying any legal costs, attorneys fees, or paying any judgment (herein"claims or liabilities")that may be asserted or claimed by any person, firm or entity arising out of the negligent performance of the work or services by Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the negligent acts or omissions of Contractor hereunder, or arising from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, but excluding such claims or liabilities to the extent caused by the negligence or willful misconduct of the City. 5.0 TERM 5.1 Term. Unless earlier terminated in accordance with Section 5.2 below, this Agreement shall continue in full force until June 30, 2002. 5.2 Termination Prior to Expiration of Term. Either party may terminate this Agreement at any time,with or without cause, upon thirty(30) days'written notice to the other party. Upon receipt of the notice of termination, the Contractor shall immediately cease all work orservices hereunder except as may be specifically approved by the Contract Officer. In the event of termination by the City, Contractor shall be entitled to compensation for all services rendered and 3 me 4 /D actual expenses incurred prior to the effectiveness of the notice of termination and for such additional services specifically authorized by the Contract Officer and City shall be entitled to reimbursement for any compensation paid in excess of the services rendered. 6.0 MISCELLANEOUS 6.1 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 6.2 Nonliability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, 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 Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 6.3 Conflict of Interest. No officer or employee of the City shall have anytiinancial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 6.4 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer, CITY OF PALM SPRINGS, P.O. Box 2743, Palm Springs, California 92263, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. In the event of notice by mail, notice shall be deemed received five (5) days after mailing. 6.5 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 6.6 Integration; Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 6.7 Severability. In the event that part of this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder 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. -4- // 6.8 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 6.9 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees,whether or not the matter proceeds to judgment. 6.10 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party 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 said party is bound. IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above. ATTEST: CITY OF PALM SPRINGS, A municipal corporation By: City Clerk City Manager 5 3 #4 /1 EXHIBIT "A" SCOPE OF SERVICES 1. SCOPE OF SERVICES The Consultant shall prepare claims for reimbursable state mandated costs as provided herein. A. Annual State Mandated Cost Reimbursement Claims The Consultant shall prepare and file applicable actual annual state mandated cost reimbursement claims for the 2000-01 fiscal year and estimated claims for the 2001- 02 fiscal year. The fiscal year 2000-01 actual claims to be filed are claims that are included in the State Controller's Claiming Instructions that provide for timely filed claims to be submitted by January 15, 2002. B. All Other Claims for Which Claiming Instructions Are Issued in FY 2001-02 With the exception of the claims in Scope of Services 1.A above, the Consultant shall prepare, submit and file on the City's behalf, all other eligible actual and estimated state mandated cost reimbursement claims for which State Controller Claiming Instructions are issued in the 2001-02 fiscal year. 2. CONSULTANT CLAIM FILING REQUIREMENTS The Consultant shall file these claims to the extent that appropriate documentation is available and verifiable and that claim amounts exceed $200 per claim. -6- 3 A )3 EXHIBIT "B" SPECIAL REQUIREMENTS 1. COST AND METHOD OF COMPENSATION A. Scope of Services 1.A—Annual State Mandated Cost Reimbursement Claims and All Other New Claims for Which Claiming Instructions are Issued in FY 2001-02. For the services provided pursuant to Scope of Services 1.A., the City agrees to pay the Consultant upon submission of the claims to the State Controller, a fixed fee of $7600. The fixed fee shall be due upon receipt of Consultant's invoice following submission of such claim (s). 314 /V MINUTE ORDER AWARDING A CONTRACT TO DMG MAXIMUS FOR A FIXED RATE OF $7,600 FOR THE FILING OF THE CITY'S MANDATED COSTS WITH THE STATE OF CALIFORNIA FOR FISCAL YEAR 2001-02 1 HEREBY CERTIFY that this Minute Order, awarding a contract to DMG Maximus fora fixed rate of $7,600 for the filing of the City's mandated costs reimbursement claims with the State of California was adopted by the City Council of the City of Palm Springs, California in a meeting thereof held on the 5T" day of December, 2001. City Clerk 346