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Home My WebLink About4.09 DMG Maximus Agmt .~~ rZ'f~~~'*~'--'~~'-O"- _~"_~"'--__"'-' ,'-'- -- _.~ . . _ __ -~-_... .....- -".'''- -.---- --_. '..-'-O;.-~ _<--..-- -- - - -'- ... .......,..,:?.:,C"..,-~-~.'-., ,., 4:.\O1!' ''''..':'1.."...~,,,~ <"~""".__ .....:;_...__ ~. ..".. ......;.:~.....c--.- ..~~~- CITY CLERK File # D~~~-l3JriJ ..' ).> . AGENDA STATEMENT CITY COUNCIL MEETING DATE: (August 4, 1998) ,4 SUBJECT: Agreement With DMG Maximus (DMG) To Obtain .State Mandated Cost Claiming Services fIlA-..Prepared by: Paul S. R~, Assistant City Manager) ExmiuTS ATTACHED: Consultant Agreement with DMG Maximus RECOMMENDATION: 1'1A1'Q Authorize the City Manager to execute agreement with DMG y.tv' Maximus for state mandated cost claiming services. FINANCIAL STATEMENT: The proposed Agreement is a contingent fee option, under which the consultant will bill the City for 30% of actual State payments received by the City as reimbursement for state mandated costs, not to exceed a total of $5,200. Sufficient funds are available in the FY 1998-99 Administrative Services Budget for the cost of these servIces. \ . DESCRIPTION: The State mandates under its Constitution that the cities perform various functions - for the public, including providing absentee ballots, notices of open meetings, notification of stolen . _ vehicles, and reporting to the State of all City businesses with business licenses. The State, as part of its budget, allows for reimbursement requests to be made by cities to recover the costs of performing these functions. During FY 1997-98, staff enlisted DMG Maximus, previously known as David M. Griffith and Associates LID, to assist in the gathering of data and preparing the reimbursement claim for these state mandated costs. With the assistance of DMG, the City received $44,222 in reimbursements from the State for mandated costs during FY 1997-98, $27,488 of which were one time reimbursements for costs incurred in poor years. DMG has presented to Staff a proposed contract agreement to provide these services for FY 1998-99, as shown in Exhibit 1. As part of the proposed contract, DMG will compile all information needed for the claims including, collection of program and cost information from City Departments. DMG then prepares the claim, and informs City Staff of any potential issues related to the claim. After review by City Staff, DMG then sends the claim in the State's required format for reimbursement. Throughout the year, DMG will respond to any questions from the State Controller's Office and provide ongoing assistance to City staff in regards to state mandated costs. The proposed contract cost is based upon a contingent fee option, under which the consultant will bill the . City for 30% of actual State payments received by the City as reimbursement for state mandated costs, up ------------------------C()PUEST():All~P~E:~dkk:DM(}--------~~~ ',_ _ ITEM NO. . G:\FINANCE\FREDWORD\MANDCOST.DOC ~~ll~~~~\,_;p;",~;~,~.;~~~.{i_~S~:~~-~~-L' ,- 'to a maXuDum 'fee of $5,200. For example If the claims which the CIty receIves relIDbursement for are $10,000, the Consultant fee would be $3,000 (.30*$10,000 = $3,000). · -~ The exact amount of claims is undetermined and it is DMG's experience that it will vary from city to city. It is expected that reimbursements will be primarily related to the following mandates: Open Meeting Act. Notices; Business Tax and Investment Reporting Requirements; absentee ballots; and various law enforcement reporting and training requirements. However, the amount of the Consultant fees would never exceed $5,200 or fall below $500 for Fiscal Year 1998-99, under the terms of this Agreement. Sufficient funds have been included in the adopted FY 1998-99 Administrative Services Budget for the cost of these services. It is recommended that the City Council authorize the City Manager to execute an agreement with DMG Maximus for state mandated cost claiming services. . . -;<- ,.rE~;2(~~~~Y;~~:;:~!~~~~rl;I!:~~TI~~,;:~~1tF_.f:~~~~~~~;~:'f~--;~~_s_'o~,;~,_t~;?:.-,_'::~~~~~F--f'j:;_2:;'~4,:;"':"";;;:;-_"-:;:";~".:>.c:'::~~::;' .. ""...".".. , ._-~.,. . . . ~ Contract Number: F98-239 .. Agreement to Provide Mandated Cost Claiming Services THIS AGREEMENT, entered into this day of effective immediately by and between David M. Griffith & "Consultant") and the City of Dubliri (hereinafter "City"):- , 1998 and Associates, Ltd. (hereinafter WHEREAS, Article XIIIB of the California State Constitution provides that cities may recover costs associated with carrying out programs mandated by the State of California, WHEREAS, the City desires to obtain maximum reimbursement for costs incurred in carrying out State mandated programs, and has determined that engaging the Consultant to assist in the mandated cost claim preparation process is the most economical and cost effective means for preparing the City's state mandated cost claims; and WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced in determining the costs of governmental programs and in the submission of cost claims to the State of California, and WHEREAS, the City desires to engage the Consultant to assist in developing, submitting, and negotiating cost claims pertaining to state mandated programs. NOW, THEREFORE, the parties hereto mutually agree as follows: 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 1997-98 fiscal year and estimated claim( s) for the 1998-99 fiscal year. The fiscal year 1997-98 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 November 30, 1998. B. All Other Claims for Which Claiming Instructions Are Issued in FY 1998-99 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 1998-99 fiscal year. City of Dublin - 1 - June 24, 1998 :~~~,'~~~~~~~Z~~~~~_~~~~~~~~~~~~~~~~I~~.~:,J~~~":~~~~~~~--;~~:~ff~~'~~:-~.:~~:~~~~i~~';:'~~.-~',?;:~~:~'~"~':'''' Contract Number: F98-239 .. 2. Consultant Claim Filine 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. 3. ~osts and Method of Comvensation Scope of Services 1.A. & 1.B. - Annual and All Qther New or First.Time State Mandated Cost Reimbursement Claims For the services provided pursuant to Scope of Services I.A and 1.B, the City agrees to pay the Consultant a contingent fee of thirty percent (30%) of the amount claimed and paid, to a maximum of five thousand two hundred dollars ($5,200). Payment shall be made from monies actually received from the State resulting from the Consultant's efforts. Monies received shall be defined as payments resulting from the Consultant's filing of cost claims listed in Scope of Services 1.A. and 1.B. In the event that the total amount of claims paid by the State is less than one thousand six hundred sixty-seven dollars ($1,667), the City shall pay the Consultant a fixed fee of five hundred dollars ($500). The fee, which in no case shall exceed the maximum amount, is due within four weeks . of City receipt of reimbursement from the State. 4. Services and Materials to be Furnished bv 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 by the Consultant must be provided within three weeks of the request, or three weeks prior to the filing deadline, whichever would come first, to be deemed to have been received in a timely manner. It is the responsibility of the City to provide the Consultant with payment information upon receipt of disbursements from the State for any and all claims filed pursuant to this agreement. 5. Not Oblieated to Third Parties The City shall not be obligated or liable hereunder to any party other than the Consultant. . City of Dublin - 2- June 24. 1998 ~~*~~5{!r;~,~-~-i~:~~~~~~f:!r,~"':,}i~~:~i~!0~~~:'~;.:::,.,,-", ''"'-:'C:;'7."<.~_~,-:,,,:,,~,: . . . ,", ~- 6. Contract Number: F98-239 Consultant Liabilitv if Audited The Consultant will assume all fmancial 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 8. 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 departmental indirect cost rate proposals for the City. Consultant Assistance if Audited If audited, the Consultant shall make workpapers and other records available to the State auditors. If requested by the City, the Consultant shall provide assistance to the City in defending claims at the desk audit level 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. Nothing in this section or any part of this Agreement shall be construed to include Incorrect Reduction Claims preparation. 9. Insurance Consultant shall acquire and maintain appropriate general liability insurance, workers' compensation insurance, automobile insurance, and professional liability insurance. 10. Chang:es 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 agreement. 11. Termination of Ag:reement If, through any cause, the Consultant shall fail to fulfill in a 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 date thereof, at least five (5) days before the effective date of such termination. Ciry of Dublin - 3 - June 24. 1998 .~~~~~;~,~t:: ?;~;:-2;t.;:.-~~. ~*~::~:.~~~~~.:5i~f~~:~~.~~~tt:f~-~:-.~:~~tr~~~::.: 7:)i:.'I~:~f:!!~zf::'-E1:?~i -~;: _,': ~,,:,:;~..~~' ._:~~-.~ ..~;:_~ a"~7~-_'~::~~~~~~ ~.;.:.~~~:ii~:-:!~\~-:-~{~:;~' . .~:Tt":t-::'~_.:.~:~y~.-:~.....':",. "- "--"'--:'"~:";",_,,,,!....;:~,"';":,, I~--::; :-. .., Contract Number: F98.239 12. City Contact Person . The City designates the following individual as contact person for this contract: Name: Telephone: Title: Fax: Address: OFFER IS MADE BY CONSULTANT OFFER IS ACCEPTED BY CITY ~ --- ~, ~--= __ By: Allan P. or lCk, Vice President ""- David M. Griffith & Associates, Ltd. City Official Date: June 24. 1998 Date: . . City of D';lb1in - 4 - June 24, 1998