HomeMy WebLinkAboutAgenda Report - October 6, 1993 (92)OR
CITY OF LOD!
COUNCIL COMMUNICATION
AGENDA TITLE: State -Mandated Cost Claiming Proposal
MEETING DATE: October 6, 1993
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION: That the City Council authorize David M. Griffith and
Associated, Ltd. (DMG) to prepare the City of Lodi 's
SB90 claims, and authorize the City Manager to
execute the Agreement with DMG.
BACKGROUND: SB90 is the short form of legislation passed a number
of years ago requiring the State to reimburse cities
for mandated costs. DMG has been doing this for the
City for quite some time. They specialize in State -mandated cost filings and
have an excellent track record.
Because they specialize in this type of work, they make little demand on the
City staff. The actual cost to the City of Lodi will be slight, as the cost of
submitting the claim is reimburseable.
Staff does not have the time nor expertise to perform this work in the same
manner as DMG. Therefore, we strongly urge the Council to authorize this
agreement.
FUNDING: Budgeted for in the 1993/94 Operating Budget.
Respectfully submitted,
&stant
L. Glenn
City Manager
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APPROVED. LJ
THOMAS A. PETERSON recycled paper
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DAVID M. GRIFFITH AND ASSOCIATES, LTD.
Mr. Jerry Glenn
Assistant City Manager
City of Lodi
Call Box 3006
Lodi, CA 95241-1910
RE: State Mandated Cast Claiming Proposal
Dear Mr. Glenn:
August 26, 1993
4 OZ 1 �
City Manager's Office
The 1993-94 state mandated cost claiming season has arrived. The State Budget and this year's
SB 90 claims bill have both passed. Once again, David M. Griffith & Associates (DMG) would
welcome the opportunity to prepare the City of Lodi's SB 90 claims.
This year the process will be somewhat different from past years. As you know, each fall cities
file prior year actual cost claims and estimated claims for the current fisca; year. This year the
process and deadlines for filing your FY 1992-93 actual costs claims has been divided into two
distinct periods - one covering the full fiscal year and one covering last July and August when
the State went without a Budget. The result is more claims to prepare, but not necessarily much
additional revenue for the City. A list of the claims is provided on the first page of the attached
contract.
1992-93 Annual and Two -Month Claims
Despite the State's budget difficulties, there are a number of mandates which are still eligible
for reimbursement. DMG will file claims associated with this Fall's annual claiming instructions
and the instructions associated with the two month claims covering costs incurred in July and
August 1992 for previously suspended mandates.
The Controller still has not determined hew the two-month cUms will be filed. The three
options being considered: 1) paying actual costs for these months, 2) paying 1/6th of the costs
of act-tal annual costs, or 3) some combination of the first two options, depending on the
program being claimed.
We anticipate that this years two part claiming cycle will require more effort than past annual
claiming periods. More people will need to be interviewed and more claims will need to be
prepared and filed. While the two claiming processes need to be coordinated, the claims
themselves will be submitted to the Controller under two separate sets of claiming instructions
and deadlines.
California Office: 5715 Marconi Ave.. Suite A 0 Carmichael, CA 95608 a (916) 485-8102
Costs of Services
DMG will prepare all regular and two-month state mandated cost claims for $4,000 dollars. The
payment is split 60-40, with 60% due upon submission of the claims due in November and 40%
due upon submission of the 2 -month claims at a subsequent date.
Advantages of DMG's Services
There are several reasons to join the over 130 cities and 25 counties that use DMIG's state
mandated costs claim filing services each year.
• State Reimbursement for DMG Claim Preparation Costs
The costs of preparing the City's State mandated cost claims is reimbursed by the
State. That includes the city staff time and the consultant's costs. You may have
recently received a letter from the Controller indicating they are currently
reviewing what consultant costs are reimbursable. We have had several
discussions with the Controller's office on this issue and hope to get a final
decision from them before too long. Based on those discussions, we believe
most, if not all of our fees will continue to be reimbursed by the State.
• Knowledge of Programs and Eligible Costs
DMG has specialized in the state mandated cost area for nearly ten years. To our
knowledge, we are the only firm that actually files state mandated cost claims.
Our consultants are well grounded in each mandate and the associated activities
that are eligible for payment.
• Increased Indirect Costs for Each Claim
DMG is a cost accounting firm and one of its claiming strengths is preparing
separate indirect cost rate proposals (ICPRs) to apply to the direct personnel costs
in each department involved with state mandated cost activities. By developing
ICPRs we are often able to substantially increase the claim amount.
David M. Griffith & Associates, Ltd.
DMG is a national firm serving state and local governments. Over 225 cities and special
districts and all 58 counties in California are clients of DMG. In the State Mandated Cost area,
we are the only firm serving local governments. We are endorsed by both the League of
California Cities and the California State Association of Counties for SB 90 cost claiming.
Contract Enclosed
For your convenience, I have enclosed two copies of an executed contract for claim filing
services. If you wish to retain our services, simply sign and return one copy of the executed
Agreement to me. To guarantee acceptance, the attached Agreement should be signed azul
returned by September 30, 1993 so we can schedule and compete the work in a timely fashion.
Thank you for your consideration of our proposal. I will be contacting you in the near future
to determine your interest in our services. In the meantime, if you have any questions, you can
reach me or David Wellhouse, in our Sacramento office, at (916) 485-8102 or Terry Birgel, in
our Pasadena office at (818) 564-0406.
Sincerely yours,
Allan P. Burdick
Vice President
APB:nr
Enclosure
Agreement to Provide
Mandated Cost Claiming Services
The City of Lodi (hereinafter "City") and David M. Griffith & Associates, Ltd. (Hereinafter
"Consultant") jointly agree as follows:
1. Scone of Services
The Consultant shall prepare claims for reimbursable state mandated costs as provided
herein.
Annual State Mandated Cost Claims
The Consultant shall prepare, submit and file on the City's behalf the following state
mandated cost claims for fiscal year 1992-93 actual costs and, where applicable, 1993-94
estimated costs.
(1) Open Meetings Act requirement as specified in Chapter 641, Statutes of 1986.
(2) Police Department Domestic Violence Calls as specified in Chapter 1609, Statutes
of 1984.
(3) Police Department Missing Persons Reports as specified in Chapter 1456, Statutes
of 1988.
(4) Police Department Disabled Motorist Assistance as specified in Chapter 1203,
Statutes of 1985.
(5) Police Department Destruction of Marijuana Records as specified in Chapter 952,
Statutes of 1976.
(6) Police Department CPR Pocket Masks as specified in Chapter 1334, Statutes of
1987.
(7) Business License Tax Reporting Requirements as specified in Chapter 1490,
Statutes of 1984.
(8) Firefighters' Personal Alarm Devices as specified in Title 8, California
Administrative Code.
(9) Structural and Wildland Firefighters Safety Clo!hing and Equipment specified in
Title 8, California Administrative Code.
(10) Firefighter Cancer Presumption as specified in Chapter 1568, Statutes of 1982.
(11) Regional Housing Need Determinations as specified in Chapter 1143, Statutes of
1980.
(12) Absentee Ballots as specified in Chapter 77, Statutes of 1978.
(13) Mandate Reimbursement Process as authorized by Chapter 486, Statutes of 1975
and Chapter 1489, Statutes of 1984.
(14) Other Claims. The Consultant may also file additional claims if any such claims
remain and it is economically justified to file same.
The claims to be filed under Scope of Services are both claims that are included in the
State Controller's claiming instructions that provide for claims to be submitted by either
November 30, 1993 or 120 days after their issuance.
2. Consultant Claim Filing_ Requirements
The Consultant shall file these claims to the extent that appropriate documentation is
available and verifiable. The City explicitly acknowledges that the Consultant does not
warrant under Scope of . Services that claims will be filed for all of the applicable
mandates listed.
3. Compensation and Methgd of Payment
Compensation and method of payment shall be as follows for services provided pursuant
to Scope of Services.
A. Compensation
For all the above services provided pursuant to Scope of Services, the City agrees
to pay Consultant a fixed fee of $4,000.
B. Meth of Payment
Payment shall be made in two installments, an initial pay equal to sixty percent
(60%) of the fixed fee and a second installment equal to forty percent (40%) of
the fixed fee. The City agrees to pay the first installment to the Consultant upon
submission of the claims to the State Controller due November 30, 1993 the sum
of $2,400. The City agrees to pay the Consultant the second and final installment
upon submission of the remaining claims to the State Controller due 120 days
from the date the Controller's claiming instructions are mailed the sum of $1,600.
The Consultants fee shall be due upon receipt of the Consultant's invoice
following submission of each set of claims.
4. Services and Materials to be Furnished by theCity
The Consultant shall provide guidance to the City in determining the data required for
claims submission. The Consultant shall assume all data so provided to be correct. The
City further agrees to provide all specifically requested data, documentation and
information to the Consultant in a timely manner. Consultant shall make its best effort
to file claims in a timely manner pursuant to Scope of Services. Consultant shall not be
liable for claims that cannot be filed as a result of inadequate data or data provided in
an untimely manner. For purposes of this Agreement, data that is requested prior to
October 31, 1993 must be received by the Consultant by November 10, 1993 to be
deemed to have been received in a timely manner.
The City shall not be obligated or liable hereunder to any party other than the
Consultant.
6. Consultant Liability it Audited
The Consultant will assume all financial and statistical information provided to the
Consultant by City employees or representatives is accurate and complete. Any
subsequent disallowance of funds paid to the City under the claims for whatever reason
is the sole responsibility of the City.
7. Indirect Costs
The cost claims to be submitted by the Consultant may consist of both direct and indirect
costs. The Consultant may either utilize the ten percent (10%) indirect cost rate allowed
by the State Controller or calculate a higher rate if City records support such a
calculation. The Consultant by this Agreement is not required to prepare a central
service cost allocation plan or a departmental indirect cost rate proposal for the City.
S. Consultant Assistance if Audited
The Consultant shall make workpapers and other records available to the state auditors.
The Consultant shall provide assistance to the City in defending claims submitted if an
audit results in a disallowance of at least twenty percent (20%) or seven hundred fifty
dollars ($750), whichever is greater. Reductions of less than twenty percent (20%) or
seven hundred fifty dollars ($750) shall not be contested by the Consultant.
9. Insurance
Consultant shall take out and maintain appropriate general liability insurance, workers'
compensation insurance, automobile insurance, and professional liability insurance.
10. Chan
The City may, from time to time, require changes in the scope of services of the
Consultant to be performed hereunder. Such changes, which are mutually agreed upon
by and between the City and the Consultant, shall be incorporated in written amendment
to this assignment.
11. Termination of Agreement
If, through any cause, the Consultant shall fail to fulfill in timely and proper manner its
obligation under this agreement, the City shall thereupon have the right to terminate this
agreement by giving written notice to the Consultant of such termination and specifying
the effective data thereof, at least five (S) days before the effective date of such
termination.
12. City Contact Person
The City designates the following individual as contact person for this contract:
Name: Telephone:
Title: Fax:
Address:
13. Contract Validity Date
To be valid, this contract must be signed by the City by September 30, 1993. If signed
after that date, the Consultant cannot guarantee acceptance of the Agreement unless
otherwise agreed upon.
OFFER IS MADE BY CONSULTANT OFFER IS ACCEPTED BY CITY
Date: <S — oZ le _. 117 '3 By:
City Official
David M. Griffith & Associates, Ltd. Date:
Allan P. Burdick
Vice President
Project x/2109 A&B
w
Agreement to Provide
Mandated Cost Claiming Services
The City of Lodi (hereinafter "City") and David M. Griffith & Associates, Ltd. (Hereinafter
"Consultant") jointly agree as follows:
1. Scope of Services
The Consultant shall prepare claims for reimbursable state mandated costs as provided
herein.
Annual State Mandated Cost Claims
The Consultant shall prepare, submit and file on the City's behalf the following state
mandated cost claims for fiscal year 1992-93 actual costs and, where applicable, 1993-94
estimated costs.
(1) Open Meetings Act requirement as specified in Chapter 641, Statutes of 1986.
(2) Police Department Domestic Violence Calls as specified in Chapter 1609, Statutes
of 1984.
(3) Police Department Missing Persons [reports as specified in Chapter 1456, Statutes
of 1988.
(4) Police Department Disabled Motorist Assistance as specified in Chapter 1203,
Statutes of 1985.
(5) Police Department Destruction f Marijuana Records as specified in Chapter 952,
Statutes of 1976.
(6) Police Department CPR Pocket Masks as specified in Chapter 1334, Statutes of
1987.
(7) Business License Tax Reporting Requirements as specified in Chapter 1490,
Statutes of 1984.
(8) Firefighters' Personal Alarm Devices as specified in Title 8, California
Administrative Code.
(9) Structural and Wildland Firefighters Safety Clothing and Equipment specified in
Title 8, California Administrative Code.
(10) Firefighter Cancer Presumption as specified in Chapter 1568, Statutes of 1982.
(11) Regional Housing Need Determinations as specified in Chapter 1143, Statutes of
1980.
(12) Absentee Ballots as specified in Chapter 77, Statutes of 1978.
(13) Mandate Reimbursement Process as authorized by Chapter 486, Statutes of 1975
and Chapter 1489, Statutes of 1984.
(14) Other Claims. The Consultant may also file additional claims if any such claims
remain and it is economically justified to file same.
The claims to be filed under Scope of Services are both claims that are included in the
State Controller's claiming instructions that provide for claims to be submitted by either
November 30, 1993 or 120 days after their issuance.
2. Consultant Claim Filing Requirements
The Consultant shall file these claims to the extent that appropriate documentation is
available and verifiable. The City explicitly acknowledges that the Consultant does not
warrant under Scope of Services that claims will be filed for all of the applicable
mandates listed.
3. Compensation and Method of Payment
Compensation and method of payment shall be as follows for services provided pursuant
to Scope of Services.
A. Compensation
For all the above services provided pursuant to Scope of Services, the City agrees
to pay Consultant a fixed fee of $4,000.
B. Method of Payment
Payment shall be made in two installments, an initial pay equal to sixty percent
(60%) of the fixed fee and a second installment equal to forty percent (40%) of
the fixed fee. The City agrees to pay the first installment to the Consultant upon
submission of the claims to the State Controller due November 30, 1993 the sum
of $2,400. The City agrees to pay the Consultant the second and final installment
upon submission of the remaining claims to the State Controller due 120 days
from the date the Controller's claiming instructions are mailed the sum of $1,600.
The Consultants fee shall be due upon receipt of the Consultant's invoice
following submission of each set of claims.
4. Services and Materials to be Furnished by the Citv
The Consultant shall provide guidance to the City in determining the data required for
claims submission. The Consultant shall assume all data so provided to be correct. The
City further agrees to provide all specifically requested data, documentation and
information to the Consultant in a timely manner. Consultant shall make its best effort
to file claims in a timely manner pursuant to Scope of Services. Consultant shall not be
liable for claims that cannot be filed as a result of inadequate data or data provided in
an untimely manner. For purposes of this Agreement, data that is requested prior to
October 31, 1993 must be received by the Consultant by November 10, 1993 to be
deemed to have been received in a timely manner.
The City shall not be obligated or liable hereunder to any party other than the
Consultant.
6. Consultant Liability if Audited
The Consultant will assume all financial and statistical information provided to the
Consultant by City employees or representatives is accurate and complete. Any
subsequent disallowance of funds paid to the City under the claims for whatever reason
is the sole responsibility of the City.
7. Indirect Costs
The cost claims to be submitted by the Consultant may consist of both direct and indirect
costs. The Consultant may either utilize the ten percent (10%) indirect cost rate allowed
by the State Controller or calculate a higher rate if City records support such a
calculation. The Consultant by this Agreement is not required to prepare a central
service cost allocation plan or a departmental indirect cost rate proposal for the City.
E�J=-j r -j. ,
The Consultant shall make workpapers and other records available to the state auditors.
The Consultant shall provide assistance to the City in defending claims submitted if an
audit results in a disallowance of at least twenty percent (20%) or seven hundred fifty
dollars ($750), whichever is greater. Reductions of less than twenty percent (20%) or
seven hundred fifty dollars ($750) shall not be contested by the Consultant.
9. Insurance
Consultant shalt take out and maintain appropriate general liability insurance, workers'
compensation insurance, automobile insurance, and professional liability insurance.
10. Changes
The City may, from time to time, require changes in the scope of services of the
Consultant to be performed hereunder. Such changes, which are mutually agreed upon
by and between the City and the Consultant, shall be incorporated in written amendment
to this assignment.
11. Termination of Agreement
If, through any cause, the Consultant shall fail to fulfill in timely and proper manner its
obligation under this agreement, the City shall thereupon have the right to terminate this
agreement by giving written notice to the Consultant of such termination and specifying
the effective data thereof, at least five (5) days before the effective date of such
termination.
12. City Contact Person
The City designates the following individual as contact person for this contract:
Name:
Title:
Address:
13. Contract Validity Date
Telephone:
Fax:
To be valid, this contract must be signed by the City by September 30, 1993. If signed
after that date, the Consultant cannot guarantee acceptance of the Agreement unless
otherwise agreed upon.
OFFER IS iti1ADE BY CONSULTANT
Date: <E — 0- e� — 93
David M. Griffith & Associates, Ltd.
Allan P. Burdick
Vice President
Project # 2109 A&B
OFFER IS ACCEPTED BY CITY
By:
City Official
Date:
CITY COUNCIL.
PHILLIPA PENNINO, Mavor
JACK A SIEGLOCK
Mayor Pro Tempore
RAY G DAVENPORT
STEPHEN I MANN
IOHN R (Randy) SNIDER
CITY OF LORI
CITY HALL, 221 WEST PINE STREET
P O. 110X 3006
LODI, CALIFORNIA 95241-1910
(209) 334-5634
FAX (N)91 I ti t'79%
December 1, 1993
Allan P. Burdick
Vice President
David M. Griffith and Associates, Ltd.
5715 Marconi Avenue, Suite A
Carmichael, CA 95608
Dear Mr. Burdick:
THOMAS A. PETERSON
City Manager
IENNIFER M PERRIN
City Clerk
IIOB McNATT
City Attorney
Enclosed herewith for your files please find fully executed agreement
for your firm to provide State Mandated Cost Claiming services to the
City of Lodi. The City Council adopted this agreement at its regular
meeting of October 6, 1993.
If you have any questions regarding this matter, please feel free to
contact my office.
Very truly yours,
ifer . Perrin
City Cle
imp
Enclosure
Agreement to Provide
Mandated Cost Claiming Services
The City of Lodi (hereinafter "City") and David M. Griffith & Associates, Ltd. (Hereinafter
"Consultant') jointly agree as follows:
The Consultant shall prepare claims for reimbursable state mandated costs as provided
herein.
The Consultant shall prepare, submit and file on the City's behalf the following state
mandated cost claims for fiscal year 1992-93 actual costs and, where applicable, 1993-94
estimated costs.
(1) Open Meetings Act requirement as specified in Chapter 641, Statutes of 1986.
(2) Police Department Domestic Violence Calls as specified in Chapter 1609, Statutes
of 1984.
(3) Police Department Missing Persons Reports as specified in Chapter 1456, Statutes
of 1988.
(4) Police Department Disabled Motorist Assistance as specified in Chapter 1203,
Statutes of 1985.
(5) Police Department Destruction of Marijuana Records as specified in Chapter 952,
Statutes of 1976.
(6) Police Department CPR Pocket Masks as specified in Chapter 1334, Statutes of
1987.
(7) Business License Tax Reporting Requirements as specified in Chapter 1490,
Statutes of 1984.
(8) Firefighters' Personal Alarm Devices as specified in Title 8, California
Administrative Code.
(9) Structural and Wildland Firefighters Safety Clothing and Equipment specified in
Title 8, California Administrative Code.
(10) Firefighter Cancer Presumption as specified in Chapter 1568, Statutes of 1982.
(11) Regional Housing Need Determinations as specified in Chapter 1143, Statutes of
1980.
(12) Absentee Ballots as specified in Chapter 77, Statutes of 1978.
(13) Mandate Reimbursement Process as authorized by Chapter 486, Statutes of 1975
and Chapter 1489, Statutes of 1984.
(14) Other Claims. The Consultant may also file additional claims if any such claims
remain and it is economically justified to file same.
The claims to be filed under Scope of Services are both claims that are incluJed in the
State Controller's claiming instructions that provide for claims to be submitted by either
November 30, 1993 or 120 days after their issuance.
The Consultant shall file these claims to the extent that appropriate documentation is
available and verifiable. The City explicitly acknowledges that the Consultant does not
warrant under Scope of Services that claims will be filed for all of the applicable
mandates listed.
Compensation and method of payment shall be as follows for services provided pursuant
to Scope of Services.
A. Compensation
For all the above services provided pursuant to Scope of Services, the City agrees
to pay Consultant a fixed fee of 54,000.
B. Method of Payment
Payment shall be made in two installments, an initial pay equal to sixty percent
(60%) of the fined fee and a second installment equal. to forty percent (40%) of
the fixed fee. The City agrees to pay the first installment to the Consultant upon
submission of the claims to the State Controller due November 30, 1993 the sum
of $2,400. The City agrees to pay the Consultant the second and final installment
upon submission of the remaining claims to the State Controller due 120 days
from the date the Controller's claiming instractions are mailed the sum of $1,600.
The Consultants fee shall be due upon receipt of the Consultant's invoice
following submission of each set of claims.
1 rM 1 Ii 11rl IiMll1 ! '
The Consultant shall provide guidance to the City in determining the data required for
claims submission. The Consultant shall assume all data so provided to be correct. The
City further agrees to provide all specifically mquested data, documentation and
information to the Consultant in a timely manner. Consultant shall make its best effort
to file claims in a timely manner pursuant to Scope of Services. Consultant shall not be
liable for claims that cannot be filed as a result of inadequate data or data provided in
an untimely manner. For purposes of this Agreement, data that is requested prior to
October 31, 1993 must be received by the Consultant by November 10, 1993 to be
deemed to have been received in a timely manner.
07-110 MIL L -I
The City shall not be obligated or liable hereunder to any party other thin the
Consultant.
The Consultant will assume all financial and statistical information provided to the
Consultant by City employees or representatives is accurate and complete. Any
subsequent disallowance of funds paid to the City under the claims for whatever reason
is the sole responsibility of the City.
7. Indirect Costs
The cost claims to be submitted by the Consultant may consist of both direct and indirect
costs. The Consultant may either utilize the ten percent (10%) indirect cost rate allowed
by the State Controller or calculate a higher rate if City records support such a
calculation. The Consultant by this Agreement is not required to prepare a central
service cost allocation plan or a departmental indirect cost rate proposal for the City.
The Consultant shall make workpapers and other records available to the state auditors.
The Consultant shall provide assistance to the City in defending claims submitted if an
audit results in a disallowance of at least twenty percent (20%) or seven hundred fifty
dollars ($750), whichever is n=eater. Reductions of less than twenty percent (20%) or
seven hundred fifty dollars ($750) shall not be contested by the Consultant.
9. Insuranrc
Consultant shall take out and maintain appropriate general liability insurance, workers'
compensation insurance, automobile insurance, and professional liability insurance.
10. Changes
The City may, from time to time, require changes in the scope of services of the
Consultant to be performed hereunder. Such changes, which are mutually agreed upon
by and between the City and the Consultant, shall be incorporated in written amendment
to this assignment.
If, through any rause, the Consultant shall fail to fulfill in timely and proper manner its
obligation under this agreement, the City shall thereupon have the right to terminate this
agreement by giving written notice to the Consultant of such termination and specifying
the effective data thereof, at least five (5) days before the effective date of 3wh
termination.
=1Z
The City designates the following individual as contact person for this contract:
Name:
Title:
Address:
13. Contract Validity -Date
Telephone:
Fax:
To be valid, this contract must be signed by the City by September 30, 1993. If signed
after that date, the Consultant cannot guarantee acceptance of the Agreement unless
otherwise agreed upon.
OFFER IS MADE BY CONSULTANT
Date: <3 — a le "' OF -�>
David M. Griffith & Associates, Ltd.
Allan P. Burdick
Vice President
Project /12109 A&B
OFFER IS ACCEPTED BY CITY
B� U.
City OfficialTnomas A. Peterson
City Manager
Date: /2�i �� 3
Attest
ennifer.Perrin ,
City 6k