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HomeMy WebLinkAboutCC RESO 15,808RESOLUTION NO. 15,808 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH DAVID M. GRIFFITH AND ASSOCIATES TO PROVIDE MANDATED COSTS CLAIMING SERVICES BE IT RESOLVED by the City Council of the City of National City that the City Manager is hereby authorized to enter into an agreement with David M. Griffith and Associates to provide mandated costs claiming services. A copy of said agreement is attached hereto as Exhibit "A." PASSED and ADOPTED this 6th day of December, 1988. George H% Waters, Mayor ATTEST: Lori Anne Peoples, City Clerk APPROVED AS TO FORM: • Geor a H. Eiser, III, City Attorney DAVID M. GRIFFITH AND ASSOCIATES, LTD. November 7, 1988 Mr. Tom McCabe City Manager City of National City 1243 National City Blvd. National City, CA 92050 RE: PROPOSAL FOR STATE SB-90 REIMBURSEMENT CLAIM FILING, NEW CLAIMING OPPORTUNITY Dear Mr. McCabe: A. Proposal Summary Prior to next July, the City of National City will have the opportunity to file State mandated cost claims (SB 90 claims) against approved mandates that affect cities that total more than $118 million. These are funded mandates that will eventually be paid by the State. Cities filing complete and timely claims will receive substantial reimbursement. The purpose of this letter is to offer the services of David M. Griffith and Associates, Ltd. (DMG) on a contingent, risk -free basis for the filing of these claims. I have enclosed a signed contract for SB 90 claim filing services which must be returned by December 15 in order to ensure that we will be able to provide the service. Potential recoveries to your city are substantial. Please act now if you wish our service. B. David M. Griffith and Associates, Ltd. (DMG) DMG specializes in providing cost accounting related services for local governments in California. These include cost allocation plans, user fee analyses, AB 1600 developer fee plans, Appropriation Limitation reviews and State Mandated Cost Claiming (SB 90) Services. DMG has been working with cities and counties in California in all aspects of the State mandated cost process for over seven years. To our knowledge no other firm is actively assisting any city or county in the submission of SB 90 claims. DMG is endorsed by both the League of California Cities and the County Supervisors Association of California for SB 90 services. A list of DMG's city SB 90 clients is attached. Please feel free to contact a neighboring city concerning our service. California Office: 5715 Marconi Ave., Suite A • Carmichael, CA 95608 • (916) 485-8102 C. The Service Being Offered Simply put, the service we are offering is to send a DMG Consultant to collect the required cost and work load data, prepare and document the appropriate claims, submit these claims to the State Controller, answer any questions the State Controller's audit staff may have concerning the DMG prepared claims and monitor claims payment. Claims that are to be included in this service are as follows: • Certain costs associated with the purchase of various firefighter's safety clothing and equipment. Claims for Fiscal Years 1978-79 through the present may be submitted. (Please note: Your city received CLAIMING INSTRUCTIONS for this mandate that indicated these claims were due this November 30. These CLAIMING INSTRUCTIONS have been temporarily suspended and you should not be compiling these claims until amended instructions are issued.) • Costs pertaining to police departments missing persons reports for Fiscal Years 1986-87 through the present. • Costs related to police department motorist assists for Fiscal Years 1985-86 through the present. • Costs associated with police department domestic violence calls for Fiscal Years 1985-86 through the present. • Costs associated with preparing SB 90 claims for Fiscal Years 1984-85 through the present. Please note that in this claim, you will recover part of the fee to be paid to DMG. • DMG will also review claims due on November 30, 1988. If the City missed any substantial claim, DMG will file a late claim on behalf of the City. Our proposed contract is a contingent fee contract. With the exception of a small retainer, the City pays DMG nothing until money is actually received from the State. Current California SB 90 Service members will receive a ten percent discount on their next service membership fee if DMG is retained for filing services. D. Benefits of Retaining DMG State mandated costs have not been a significant revenue source for cities. The requirements for claiming State mandated costs are complex and confusing. This has resulted in many cities not actively pursuing claiming activities or worse not bothering to file claims at all. If your City follows this procedure in this claiming opportunity substantial revenue will be foregone. The benefits of retaining DMG to file claims are: • Claims will be filed. • Claims are likely to be larger as DMG usually captures more cost. • DMG follows up with the State Controller to insure payment. • The City is not obligated to pay DMG for claims filing until and unless it receives money from the State. Simply put, your City will likely receive more revenue. E. Form of Contract Features of the enclosed contract include: • DMG is paid a small retainer fee. This fee is returned to the City unless DMG files claims that amount to at least twice the retainer. • Where appropriate, DMG will file claims for each of the described mandates. Please note that this could be as many as 25 individual claims. • The City will pay DMG a contingent fee to an agreed to maximum for each mandate if the City receives payments from the State as a result of DMG's services. • The Contract must be returned to DMG by December 15, 1988 to be effective. * * * * * * * * * * * * * * * * * This is a risk -free offer that will result in additional revenue for your City. Please call David Marceau at (818) 760-7136 or me at (916) 485-8102 if you have any questions. Sincerely yours, Louis uie Executive ice President LEC:nr Enclosure cc: Finance Director, w/o Enclosure AGREEMENT TO PROVIDE MANDATED COST CLAIMING SERVICES The City of National City (hereinafter "City") and David M. Griffith and Associates, Ltd. (hereinafter "Consultant") jointly agree as follows: 1. Scope of Services Except as otherwise selected or indicated (see paragraph 2) the Consultant shall prepare, submit and file on the City's behalf the following State mandated cost claims. A. Title 8, CAC, pertaining to Firefighters Safety Clothing and Equipment and Wildland Firefighters Safety Clothing and Equipment. Fiscal Years 1978-79, 1979-80, 1980-81, 1981-82, 1982-83, 1983-84, 1984-85, 1985-86, 1986-87, 1987-88 actual costs, and 1988-89 estimated costs. B. Chapter 177 & 111 of 1985, pertaining to Police Department Missing Persons Reports. Fiscal year 1985-86, 1986-87, 1987-88 actual costs and 1988-89 estimated costs. C. Chapter 1203 of 1985, pertaining to Police Department Motorist Assist Calls. Fiscal Year 1985-86, 1986-87 and 1987-88 actual costs and 1988-89 estimated costs. D. Chapter 1609 of 1984, pertaining to Police Department Domestic Violence Calls. Fiscal year 1985-86, 1986-87 and 1987-88 actual costs and 1988-89 estimated costs. E. Chapter 486 of 1975 & Chapter 1459 of 1984, pertaining to costs of SB 90 claiming. Fiscal year 1984-85, 1985-86, 1986-87, 1987-88 actual costs and 1988-89 estimated costs. F. Late claims. In addition to the above claims, the Consultant shall file, at its discretion, any claims that were due November 30, 1988 that were not filed by the City. Such claims are designated "late claims" by the State Controller and are paid at eighty percent (80%) of their value. Claims included in Scope of Services of this Agreement are limited to specific claims noted above as contained in CLAIMING INSTRUCTIONS issued by the State Controller prior to June 30, 1989. 2. Limitation on Service Scope By City At Time Of Agreement Execution The City, at its discretion, may select any combination of services described under Section 1 above (Scope of Services). Declining of one service and not another is indicated by striking through the entire applicable description of the service or services not desired. In so striking out such paragraph, all references to that service contained in this Agreement are deleted without further action required by the City. All provisions of the Agreement relating to the remaining service or services continue in effect. 3. Compensation and Method of Payment Compensation and Method of Payment shall be as follows for services selected pursuant to the Scope of Services. A. Scope of Services A through F. Retainer. Upon contract execution, to cover Consultant's basic expenses, a retainer in the amount of $650 is due and payable. The retainer shall be returned to the City at the claims submission deadline if Consultant filed claims pursuant to these mandates do not exceed the retainer by at least two times or no claims are filed at all as provided for in Section 3 of this agreement. The retainer is in addition to the computation and payment provisions of sections 3B through 3G below. B. Scope of Services A, Firefighters and Wildland Firefighters Safety Clothing and Equipment. The City shall pay the Consultant a fee equal to thirty percent (30%) of all claims filed and paid to a maximum fee of three thousand seven hundred fifty dollars ($3,750). C. Scope of Services B, Missing Persons Report Costs. The City shall pay the Consultant a fee equal to thirty percent (30%) of all claims filed and paid to a maximum of two thousand eight hundred seventy five dollars ($2,875). D. Scope of Services C, Motorist Assist Calls. The City shall pay the Consultant a fee equal to thirty percent (30%) of all claims filed and paid to a maximum fee of two thousand six hundred fifty dollars ($2,650). E. Scope of Services D, Domestic Violence Calls. The City shall pay the Consultant a fee equal to thirty percent (30%) of all claims filed and paid to a maximum fee of three thousand four hundred fifty dollars ($3,450). F. Scope of Services E, Costs of SB 90 Claiming. The City shall pay the Consultant a fee equal to thirty percent (30%) of all claims filed and paid to a maximum fee of two thousand dollars ($2,000). G. Scope of Services F, Late Claims. The City shall pay the Consultant a fee equal to thirty percent (30%) of all claims filed and paid to a maximum fee of two thousand dollars ($2,000). Payment for contingent claiming shall be made from monies actually received from the State resulting from the Consultant's efforts. Monies received shall be defined as actual payments resulting from Consultant's filing estimated claims for FY 1988-89 and actual payments received for actual Fiscal year costs as allowed for in the State Controllers CLAIMING INSTRUCTIONS that are issued prior to June 30, 1989. The fee, which in no case shall exceed the maximum amounts, is due within four weeks of City receipt of reimbursement from the State. 4. Waiver of Submission of Claims) Pursuant to Scope of Services. At the sole discretion of the Consultant, the Consultant may notify the City of its intention to not pursue specific claims(s) and the reasons therefore. Such notification must be in writing and provided to the City not less than thirty (30) days prior to the due date of the claim. Should the Consultant not so notify the City, the City may expect the Consultant to pursue the claim if it is within the minimum amount allowed by the State. 5. City Responsibility to Maintain a Record of State Claims Payments. Consultant and City explicitly recognize that initial payments received from the State resulting from the Consultant's work may be partial. In such cases the State Controller may seek a deficiency appropriation and thus complete payment of the City's claims at a later date. The City agrees to maintain a record of State payments and remit on a timely basis any monies due the Consultant as a result of contingent claim filing. 6. Services and Materials to be Furnished by the City. The Consultant shall provide guidance to the City in determining the data required for claims submission. The City, following the Consultant's guidance, shall provide assistance in the accumulation of the required data to facilitate claims submission. The Consultant shall assume all data so provided to be correct. 7. Not Obligated to Third Parties. The City shall not be obligated or liable hereunder to any party other than the Consultant. 8. 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 claim for whatever reason is the sole responsibility of the City. Except that, should the City be required to return money that the Consultant was paid in fees, the Consultant shall return this amount to the City. 9. 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. 10. Consultant Assistance if Audited. The Consultant shall make workpapers and other records available to auditors. The Consultant shall provide assistance to the City in defending claims submitted if an audit results in a disallowance of twenty percent (20%) or more of the original claim submitted. Reductions of less than twenty percent (20%) shall not be contested by the Consultant. 11. Contact Person. The City designates the following individual as contact person for this contract: Name: Aft 0/440Z-,4 Title: 15:31vI09VCe aef 1:-. Address: % 2..4/3 /04170")At C- g �LI►�- Nl�T7d�l�� ark/ Telephone: 4/5) 33 6 - 9z e 2__ 12. Contract Validity Date. To be valid this contract must be signed by the City by December 15, 1988 unless this deadline is extended by the Consultant. Offer is Made by Consultant: Date: David M. Griffith & Associates, Ltd. Bv: Louis app Executive Vice President Offer is Accepted by City: Printed Name : ;k e;, /f/ ;lAfE Date: / 217 /P? Title: j��l�iffst ATTEST: 6r1U Please note that we can not guaranty acceptance of this Agreement if it is not returned by the date indicated in paragraph 12. Please Return One Signed Copy of Agreement To: DAVID M. GRIFFITH AND ASSOCIATES, LTD. 5715 Marconi Avenue, Suite A Carmichael, CA 95608 (916) 485-8102