HomeMy WebLinkAboutAgenda Report - August 17, 1994 (36)M
CIN OF LODI i
COUNCIL COMMUNICATION
AGENDA TITLE: Proposal for State Mandated Cost Claiming services
MEETING DATE: August 17, 1994
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION: That the City Council authorize the City Manager or
his designee to contract with the firm of Birgel and
Wellhouse and Associates for state mandated cost
claiming services.
BACKGROUND INFORMATION: For the past several years the City of Lodi has
contracted with David M. Griffith and Associates for tabulating and filing our
claims for state mandated cost reimbursements.
The City has received the following amounts from the State for mandated costs
1993/94 $511188
1992/93 $45,641
1991/92 $39,504
We have no one on staff that has made this filing as the costs for filing are
relatively inexpensive, the payback is significant and the compilation of data
and filing requirements must be in the form and manner required by the State.
We have always used a service firm for this filing as they have the expertise
and therefore greatly reduces our burden.
Also, the city receives reimbursement from the state for the costs of filing
therefore there is no cost to the city for this service.
We have been pleased with the work of David M. Griffith and Associates and to
the best of our knowledge they were the only firm specializing in these
filings. This year we received an unsolicited proposal from a new firm
Birgel-Wellhouse and Associates to make these filing for us.
We have two proposals for this work for 1994-95:
David M Griffith
Birgel-Wellhouse
$2,100
$2,000
APPROVED: t"i
THOMAS A. PETERSON MCK100 DaDse
City Manager 00
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The consultant will prepare and file with the State Controllers office on
behalf of the City of Lodi the following state mandated cost claims for fiscal '
year 1993-94 (actual) and 1994-95 estimated costs:
Open Meeting Act;
Business License Tax Reporting Requirements
Mandate Reimbursement process
Absentee Ballots
Firefighter Cancer Presumption
Additional Claims that arise during the year
Council is respectfully requested to authorise the City Manager to enter into
an agreement to file our state mandated claims with the State of California.
FUNDING: 1994/95 Operating Budget
Respectfully submitted,
4 oo,
J rry lenn
,_Assistant City Manager
JG:pn
CCSB90/TXTA.01V
g6 Wellhouse
..and Assncioees,lnc.
' July 7,1994
Mr. Jerry Gm
A # < Assistant City Manager
City of Lodi
Call Box 3006
Lodi, CA 95241-1910
RE: Proposal For State Mandated Cost Claiming Services
Dear Mr. Glenn:
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I am pleased to announce that Terry Birgel and I have left our positions as Southern and Northern
Cities State Mandated Cost Coordinators with David M. GriM & Associates to form our own
corporation, specializing in the state mandate reimbursement process.
We can now serve the City ofLodi in a higher capacity, focusing all of our efforts on the state
mandates process and the preparation of the Citys SB 90 claims. With ten years of combined
experience assisting over 100 local agencies, Birgel, Wellhouse & Associates, Inc. offers the best
claiming expertise available.
It has been a pleasure working with you and the City of Lodi over the years. Mr. Birgel and I are
elated to be combining our talents, and can provide the City with the knowledge, expertise and
,Fs reliability you have come to expect from us in the past.
Birgel, Wellhouse & Associates, Inc. offers its services to the City of Lodi for the preparation of all
1993-94 actual and 1994-95 estimated state mandate reimbursement claims.
Advantages of Btrgel, Wellhouse do Associates, Inc.
• Knowledge and Understanding of the City
Having worked with the City of Lodi over the years we have a thorough understanding of
the Citys operations and costs, and can continue to fully maximize the City's state
mandated cost reimbursements.
0 Service Oriented Approach
Birgel , Wellhouse & Associates, Inc. has instituted a service oriented approach as the
cornerstone of its relationship with clients. We propose not only to file your claims, but to
assist the City in identifying potentially reimbursable state mandates. Once identified, we
will fully assist the City in the preparation and filing of test claims, thereby strengthening
the SB 90 process and increasing the Citys future reimbursement. We believe this is an
important long-term benefit to the City which should not be overlooked.
Northern Caarorwia
9175 Kiefer Boulevard, Suite 121
Sacramento. California 93826
(916) MA -9244
FAX (916; 368-5723
Soutbern California
1613 Chelsea Road, Suite 298
San Marino. California 91108
(818) 821-9747
FAX (818) 821.9748
0
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in addition, we are always avaUge to w war any and all quetions regardbg state
mimdate iseaes. We heow that year-round service can be just asimportant to the City as
the preparation of claims.
We propose this service oriented approach as part of our claiming services; At
no 104hond
cost to the City. Our fee is based solely upon the filing of the Citys state mtmdated
rebnbarsrnat chitin.
• Inaaased Reimbursement TbrouSk IxAhv t Casa
Our vVerienee in preparing departmental indirect cost rate proposals ensures that claims
filed by us include departmental overhead, as well as direct costs incurred as a result of
compliance with state mandated programs. By developing than rates, we us often able to
substantially increase your rein-
Reimbursement
eim
Reimbursement of Claim Ar+epwadon Fee
As you know, costs for the preparation of past claims have been fully reimbursed by the
State through the Mandate Reimbursement Procew claim. This reimbursement has
included city staff time, as well as consulting fees.
• Assistance if Audited
Birgel, Wellhouse & Associates, Inc. will assist the City in defending claims which result in
an audit disallowance. Having worked with the City of Lodi in the past, we are in a
unique position to offer our assistance to the City in defending claims previously filed.
Cosa of Services
Birgel, Wellhouse & Associates, Inc. will prepare and file the City's 1993-94 actual and 1994-95
estimated reimbursement claims for a fixed fee of S 2,000. Our fee includes all time and expenses
necessary to prepare and file the City's claims. This fixed fee will be due upon the submission of
claims to the State Controller's Office on November 30, 1994.
Claims to be Filed
Funding is provided in the Governor's 1994-95 budget for all claims funded last fall. Due to the
diligence and on-going efforts of local agencies throughout the State, we may see funding restored for
additional mandates by the time the State Budget is signed. Should this occur, Birgel, Wellhouse &
Associates, Inc. will prepare and file all additional claims at no increase to our proposed fixed fee for
:7 D services.
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Enclosed, please find two copies of our proposed Agreement for the preparation of the Cita sate
mandated reimb, n mem claims. To retain our services, please sign and retwa one copy of the ,
to me in our Sacramento office.
Agreement .
Having enjoyed a wonderful working relationship with you in the past; we look forward to serving the
City of Lodi as a client for many years to come.
Ibank you for your c onsideraion of our proposal. We look forward to heating from you in the aear
future regarding our proposed services. Should you have any questions, please contact me in our
Sacramento office at (916) 368-9244.
David E. Wellhouse
DEW:rw
enclosure
AGREEMENT BETWEEN THE CITY OF LODI AND BIRGEL, WELLHOUSE
A ASSOCIATES, INC. FOR PREPARATION AND FILING OF CLAIMS FOR
STATE MANDATED COST REIMBURSEMENT
This agreement by and between the City of Lodi, a municipality of the State of California,
hereinafter referred to as "CITY". and Birgel, Wellhouse S Associates. Inc., a California
corporation, hereinafter referred to as "CONSULTANT".
VYhereas CITY desires to engage the services of a consultant to prepare and file claims for State
Mandated Cost Reimbursement. and CONSULTANT has been selected to perform said services,
now, therefore, it is agreed by CITY and CONSULTANT as follows:
1. Clalms To Be Filed.. CONSULTANT shall prepare and file with the State ControlW3 Office
on behalf of CITY the following state mandated cost claims for fiscal year 1993-94 (actual) and
1994-95 (estimated) costs.
• The Open Meetings Act - Chapter 641, Statutes of 1986
• Business License Tax Reporting Requirements. - Chapter 1490, Statutes of 1984
• Mandate Reimbursement Process. - Chapter 486, Statutes of 1975 and
Chapter 1489, Statutes of 1984.
• Absentee Ballots - Chapter 77, Statutes of 1978.
• Firefighter Cancer Presumption - Chapter 1568, Statutes of 1982.
• Additional Claims. CONSULTANT may file other applicable claims, if funded
and available for reimbursement.
The Claims to be filed under this Section 1 are those that are to be included in the State Controller's
Claiming Instructions for 1993-94 (actual) and 1994-95 (estimated) costs. The deadline for filing these
claims will be November 30, 1994.
CITY acknowledges that CONSULTANT does not warrant that claims will be filed for all mandates
listed above.
The claims and services described in Section 1 shall hereinafter be collectively referred to as
the "PROJECT".
CONSULTANT hereby designates David Wellhouse, or other designated representative, to be sole
ontact and agent in all consultations with CITY during the performance of services as stated in
PROJECT.
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• 2 Tune For PodbowangjL. CONSULTANT shall fib all claims in accordance with the State
ontioller"s claim filing deadline contained in the applicable State Controller Claiming instructions.
3. Compensation. CITY agrees to pay CONSULTANT a fted fee of $ 2,000
for services provided under PROJECT.
4. Rethod of Payment. CITY agrees to pay said freed fee of S 2.000 upon
receipt of CONSULTANTS Invoice for services provided under PROJECT.
5. City Assistance. CITY shall assign a staff coordinator to work directly with CONSULTANT
in the performance of this agreement. CITY shall provide CONSULTANT with requested
information in a timely manner, pursuant to PROJECT. CITY represents and warrants that all
financial documents and other information provided are accurate and correcL CONSULTANT shall
not be liable for claims which are not filed or incorrectly filed due to inaccurate or untimely data.
6. Disoos/Uon of Documents. CONSULTANT shall furnish to CITY copies of all claims
filed with the State within 30 days after filing. CONSULTANT shall , upon written request, make
;�, pies of workpapers available to CITY. CITY acknowledges that all such workpapers are the
. operty of CONSULTANT and may not be disclosed to any third party, provided however that such
workpapers may be disclosed to appropriate governmental. authorities for audit purposes.
CONSULTANT shall be entitled to retain copies of all data prepared.
7. Not Obligated To Third Parties. CITY shall not be obligated or liable hereunder to any
party other than CONSULTANT.
8. Insurance. CONSULTANT shall cavy, maintain and keep in full force and effect, a policy
of comprehensive general liability insurance.
9. Independent Contractor. CONSULTANT is, and shall be, acting at all times in
the performance of this agreement as an independent contractor. CONSULTANT shall secure at its
expense, and be responsible for, any and all payment of taxes, social security, state disability
insurance compensation, unemployment compensation, and other payroll deductions for
CONSULTANT and its officers, agents and employees.
10. Consultant Assistance If Audited. Upon notice of audit, CONSULTANT shall make
Dvailable to CITY and state auditors claim file information, and provide assistance to CITY in
defending claims submitted.
Ask 11. Consultant L/sailNV N Auditsd. AN work required hereunder shall be performed in a
Wood and workmanlike manner. Any disallowance of claims by the State Controller's Office or
other state agencies is the responsibility of the CITY.
12. IncNMI Costs. CONSULTANT shall make every effort to prepare departnwrMal Indirect
Cost Rate Proposals for claims submitted. provided CITY financial Information and deparbrterMal
costs support such rates. CONSULTANT may utilize the rate allowed by the State Controller
If financial information and deparhnenntal costs do not support a higher rate.
13. TenninagM of Agreement CITY may terminate CONSULTANTS services hereunder
with or without cause. and whether or not services under PROJECT are fully complete. CITY shall do
so by giving written notice to CONSULTANT. specifying the effective date thereof. at Nast five (5)
days before the effective date of such termination.
14. En f. The foregoing set forth the entire Agreement between the parties.
In witness whereof, the parties hereto have executed this Agreement as of day of
1994.
CONSULTANT:
BIRGEL, WE USE & SSOCIATES. INC.
a Califomi n
By:
David E. Wellhouse
President
CITY.
CITY OF LODI
a municipality of the State of Celifomia
By:
Name:
Title:
Date: July 7, 1994
Date.
Approved as to form
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City P,tomsy
Date: 9!101q'1--