HomeMy WebLinkAbout2007 CON Maximus - Amendment Fee StudyAMENDMENT TO AGREEMENT
BETWEEN
THE CITY OF NATIONAL CITY
ANT) MAXIMUS, INCORPORATED
This Amendment to Agreement is entered into this 17th day of April, 2007, by and between the
City of National City, a municipal corporation ("the CITY"), and MAXIMUS, Incorporated (the
"CONTRACTOR").
RECITALS
A. WHEREAS, CITY and CONTRACTOR entered into an agreement on July 10, 2006, ("the
Agreement") wherein the CONTRACTOR agreed to provide an update to the cost of
services/user fees analysis performed in 2004 for the Recreation, Police, Engineering, and
Building Departments in the amount of $22,000; and
B. WIIEREAS, CITY and CONTRACTOR desire to amend the Agreement to include a new fee
schedule for the Finance Department in the scope of services; and
C. WHEREAS, instead of revising the current lee schedule, the Engineering Department has
requested creating an entirely new fee schedule, without much resemblance to the current fee
schedule; and
D. WHEREAS, many of the departments included in the July 2006 Agreement have requested
more changes than originally anticipated.
NOW, THEREFORE, the parties hereto agree that the Agreement entered into on July 10,
2006, shall be amended to include new fee schedules for the Finance and Engineering Departments and
an expansion of the Scope of Services for the additional revisions requested by the Recreation, Police,
and Building Departments, as set forth in the attached Exhibit "A", for an additional cost of S 14,700.
The parties further agree that with the foregoing exception, each and every term and provision
of the Agreement dated July 10, 2006, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Agreement on
the date and year first above written.
CITY OF NATIONAL CITY
By:
Ron Morrison Mayor
APPROVED AS TO FORM:
George H.
City Attorney
MAXIMUS, INC.
(Corporalio signatures n
By:
By:
ers)
f
ame I-94or2e!) FiJ)►eC-5
Title: VicC �KFTfoC& ��—
Title:
Vtc-c Pit €St )�'!
MAXIMUS
HELPING GOVERNMENT SERVE THE PEOPLE'
EXHIBIT A
March 8, 2007
Mr. Joe Olson
Building Department
City of National City
1743 National City Boulevard
National City, CA 91950-4301
Re: Proposal for Enhance the Citywide User Fee Study Update
Dear Mr. Olson:
Upon initiation of our update to the 2004 User Fee Study, we developed some issues, concerns,
and requests that we did not anticipate when we wrote our Update Proposal in January, 2006.
While we ordinarily expect some level of change between the time of our proposal and the time
that a project commences, in this case, we experienced a significant number of issues that need to
be resolved.
When we discovered these concerns, we brought them to your attention, and you agreed that they
merit further consideration. Among those concerns are:
• The Finance Department was not included in the 2004 study, but would like to be
added to the current study. While we anticipate only a few fees in the Finance
Department, in order to add them to the Citywide study, we will need to develop a
base model for that department.
• Many of the departments that were included in the 2004 study are requesting far
more changes to their fee schedules than we would have anticipated. We were
expecting the addition or deletion of perhaps a couple of fees within each department.
Instead, some departments are adding a dozen or more fees.
• The Engineering Department has indicated that it will be creating an entirely new fee
schedule, without much resemblance to the one created in 2004. In order to meet the
Engineering Department's expectations, we will likely need to develop an entirely
new base model for Engineering, as if we did not prepare a fee schedule for them in
2004.
• Some departments have undergone significant staffing changes since 2004, which
requires a reconsideration of which staff are assigned to each fee activity, and the
matching of those staff to the current costs associated with their time and efforts.
• The Finance Department does not seem to have financial data readily available at the
level of detail required for the fee study. Thus, we will need to be working more
4320 AUBURN BLVD., SUITE 2000 I SACRAMENTO, CA 95841 1916.485.8102 1916.485.0111 FAX 1 WWW.MAXIMUS.COM
closely with Finance than we originally planned to obtain appropriate expenditure
and revenue information.
At present, we have a contract with the City to update the 2004 study for $22,000. hi addition, we
have a contract with the Community Development Commission (CDC) to add them to the study
for an additional $9,400. (Please note that we are still awaiting receipt of the executed contract for
the CDC.) The relative difference in cost between the Citywide update and the addition of the
CDC is that the update was to include only minor adjustments to the fee schedule, and the
assumption that staffing and financial information needed only to be updated for current budget
figures. The cost of adding the CDC was in essence the cost of developing a new model for them
with a medium sized fee schedule.
We certainly appreciate the continued customer loyalty that the City of National City has shown
to MAXIMUS, and for that reason, we have attempted to absorb as many of the unexpected costs
related to this study as possible. However, the magnitude of the changes and the difficulty we are
experiencing in obtaining financial information has caused us to consider an amendment to our
agreement.
After careful consideration, we are proposing to include new schedules for the Finance and
Engineering Departments, plus the addition of all fees already requesting by other departments,
and the additional research required with the Finance Department to obtain revenue and
expenditure budgetary information needed for the study —all for an additional $14,700.
Please let me know whether you would like for MAXIMUS to proceed with the study update as it
is presently configured, or whether you would like to add the items requested by your
departments for an additional $14,700.
Thank you again, Joe, for working with us on this Fee Study update. On behalf of MAXIMUS, we
look forward to our next on -site visit.
Sincerely,
Brian A. Foster, Senior Manager
MAXIMUS Financial Services Division
4320 Auburn Boulevard, Suite 2000
Sccrarrento, CA. 95841-4154
Phone: (916) 485-8102, ext. 305
Fax: (916) 485-0111
E-mail: brianfoster@maximus.com
Page 2
MAXIMUS
RESOLUTION NO. 2007 — 76
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY AUTHORIZING
THE MAYOR TO EXECUTE AN AMENDMENT TO
AGREEMENT BY AND BETWEEN THE CITY OF
NATIONAL CITY AND MAXIMUS
WHEREAS, the CITY desires to employ a Contractor to provide an update to the
cost of services/user fees analysis performed in 2004; and
WHEREAS, the CITY has determined that the MAXIMUS is a corporation and is
qualified by experience and ability to perform the services desired by the CITY, and is willing to
perform such services.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute an Amendment to Agreement between
the City and Maximus to provide an update to the cost of services/user fees analysis performed
in 2004. Said Amendment to Agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 17th day of Apri
on Morrison, Mayor
ATTEST:
F o A Michael . Dalla, City Clerk
APPROVED AS TO FORM:
George H.'Eiser, III
City Attorney
Passed and adopted by the Council of the City of National City, Califomia, on April 17,
2007 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Natividad, Parra, Ungab, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City CI rk of the City of ational City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2007-76 of the City of National City, Califomia, passed and adopted
by the Council of said City on April 17, 2007.
City Clerk of the City of National City, California
By:
Deputy
City of National City, California
COUNCIL AGENDA STATEMENT
MEETING DATE April 17, 2007
AGENDA ITEM NO.
20
ITEM TITLE
A resolution by the City Council of the City of National City to approve an amendment in the amount of
$14,700 to the existing MAXIMUS fee study contract. This fee study is designed to adjust the City's Fee
Schedule to recover cost of service provided by our staff.
PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety
EXPLANATION
On July 10, 2006, an agreement between the City and MAXIMUS Corp. was created to conduct a fee
study. This scope of work was designed to adjust the current fees for Recreation, Police, Fire,
Engineering, and Building Depts for the amount of $22,000. The fees were last revised in 2005.
On January 9th-11t 2007, MAXIMUS met with the City to analyze the current fee schedule. Due to
concerns raised by various departments regarding full cost recovery, MAXIMUS' scope of work needed to
expand. MAXIMUS has determined that an additional $14,700 is needed to sufficiently complete the study
in accordance with the expanded scope. This amendment will now include an analysis of the Finance
Department, who were not included in the July 2006 agreement, and the Engineering Department, who
have a broader scope of requirements.
It is recommended that City Council approve a resolution for the amendment to the fee study contract with
MAXIMUS in the total amount of $36,700.
Environmental Review X N/A
Financial Statement
Approved By:
The fee schedule is designed to recover the cost associated with the study
itself. Acct. #001-409-000-213-000 has been designated to pay for this
expenditure.
STAFF RECOMMENDATION
Approve the resolution. /, t
-7143
BOARD / COMMISSION RECOMMENDATION
N/A
(ALL
Finance Directo
Account No.
e
/A.
ATTACHMENTS ( Listed Below )
MAXIMUS proposal, timeframe
Exsisting agreement
Resolution N
A-200 (9/99)
AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
MAXIMUS
THIS AGREEMENT is entered into this 10th day of July, 2006, by and
between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and the
MAXIMUS, a corporation (the "CONTRACTOR").
RECITALS
WHEREAS, the CITY desires to employ a CONTRACTOR to provide an
update to the cost of services/user fees analysis performed in 2004.
WHEREAS, the CITY has determined that the CONTRACTOR is a
corporation and is qualified by experience and ability to perform the services desired by
the CITY, and the CONTRACTOR is willing to perform such services.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE
AS FOLLOWS:
1. ENGAGEMENT OF CONTRACTOR. The CITY hereby agrees to
engage the CONTRACTOR and the CONTRACTOR hereby agrees to perform the
services hereinafter set forth in accordance with all terms and conditions contained
herein.
The CONTRACTOR represents that all services required hereunder will
be performed directly by the CONTRACTOR or under direct supervision of the
CONTRACTOR.
2. SCOPE OF SERVICES. The CONTRACTOR will perform services
as set forth in the attached Exhibit "1".
The CONTRACTOR shall be responsible for all research and reviews
related to the work and shall not rely on personnel of the CITY for such services,
except as authorized in advance by the CITY. The CONTRACTOR shall appear at
meetings cited in Exhibit "1" to keep staff and City Council advised of the progress on
the project.
The CITY may unilaterally, or upon request from the CONTRACTOR, from time
to time reduce or increase the Scope of Services to be performed by the
CONTRACTOR under this Agreement. Upon doing so, the CITY and the
CONTRACTOR agree to meet in good faith and confer for the purpose of negotiating a
Revised April 2005
corresponding reduction or increase in the compensation associated with said change
in services, not to exceed a factor of 15% from the base amount.
3. PROJECT COORDINATION AND SUPERVISION.
Kathleen Trees hereby is designated as the Project Coordinator for the
CITY and will monitor the progress and execution of this Agreement. The
CONTRACTOR shall assign a single Project Director to provide supervision and have
overall responsibility for the progress and execution of this Agreement for the
CONTRACTOR. Manfred G. Endres thereby is designated as the Project Director for
the CONTRACTOR.
4. COMPENSATION AND PAYMENT. The compensation for the
CONTRACTOR shall be based on monthly billings covering actual work performed.
Billings shall include labor classifications, respective rates, hours worked and also
materials, if any. The total cost for all work described in Exhibit "1"shall not exceed the
schedule given in Exhibit "1" (the Base amount) without prior written authorization from
the Project Director. Monthly invoices will be processed for payment and remitted
within thirty (30) days from receipt of invoice, provided that work is accomplished
consistent with Exhibit "A"as determined by the CITY.
The CONTRACTOR shall maintain all books, documents, papers,
employee time sheets, accounting records, and other evidence pertaining to costs
incurred and shall make such materials available at its office at all reasonable times
during the term of this Agreement and for three (3) years from the date of final payment
under this Agreement, for inspection by the CITY and for fumishing of copies to the
CITY, if requested.
5. LENGTH OF AGREEMENT. Completion dates or time durations
for specific portions of the Project are set forth in Exhibit "2".
6. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The
Memoranda, Reports, Maps, Drawings, Plans, Specifications and other documents
prepared by the CONTRACTOR for this Project, whether paper or electronic, shall
become the property of the CITY for use with respect to this Project, and shall be
turned over to the CITY upon completion of the Project, or any phase thereof, as
contemplated by this Agreement.
Contemporaneously with the transfer of documents, the CONTRACTOR
hereby assigns to the CITY and CONTRACTOR thereby expressly waives and
disclaims, any copyright in, and the right to reproduce, all written material, drawings,
plans, specifications or other work prepared under this agreement, except upon the
CITY's prior authorization regarding reproduction, which authorization shall not be
unreasonably withheld. The CONTRACTOR shall, upon request of the CITY, execute
any further document(s) necessary to further effectuate this waiver and disclaimer.
2 Revised April 2005
The CONTRACTOR agrees that the CITY may use, reuse, alter,
reproduce, modify, assign, transfer, or in any other way, medium or method utilize the
CONTRACTOR's written work product for the CITY's purposes, and the
CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil
Code Sections 980 through 989 relating to intellectual property and artistic works.
Any modification or reuse by the CITY of documents, drawings or
specations prepared by the CONTRACTOR shall relieve the CONTRACTOR from
liability under Section 14 but only with respect to the effect of the modification or reuse
by the CITY, or for any liability to the CITY should the documents be used by the CITY
for some project other than what was expressly agreed upon within the Scope of this
project, unless otherwise mutually agreed.
7. INDEPENDENT CONTRACTOR. Both parties hereto in the
performance of this Agreement will be acting in an independent capacity and not as
agents, employees, partners or joint venturers with one another. Neither the
CONTRACTOR nor the CONTRACTOR'S employees are employee of the CITY and
are not entitled to any of the rights, benefits, or privileges of the CITY's employees,
including but not limited to retirement, medical, unemployment, or workers'
compensation insurance.
This Agreement contemplates the personal services of the
CONTRACTOR and the CONTRACTOR's employees, and it is recognized by the
parties that a substantial inducement to the CITY for entering into this Agreement was,
and is, the professional reputation and competence of the CONTRACTOR and its
employees. Neither this Agreement nor any interest herein may be assigned by the
CONTRACTOR without the prior written consent of the CITY. Nothing herein contained
is intended to prevent the CONTRACTOR from employing or hiring as many
employees, or subcontractors, as the CONTRACTOR may deem necessary for the
proper and efficient performance of this Agreement. All agreements by CONTRACTOR
with its subcontractor(s) shall require the subcontractor to adhere to the applicable
terms of this Agreement.
8. CONTROL. Neither the CITY nor its officers, agents or employees
shall have any control over the conduct of the CONTRACTOR or any of the
CONTRACTOR's employees except as herein set forth, and the CONTRACTOR
expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR's
agents, servants, or employees are in any manner agents, servants or employees of
the CITY, it being understood that the CONTRACTOR, its agents, servants, and
employees are as to the CITY wholly independent contractors and that the
CONTRACTOR's obligations to the CITY are solely such as are prescribed by this
Agreement.
9. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in
the performance of the services to be provided herein, shall comply with all applicable
State and Federal statutes and regulations, and all applicable ordinances, rules and
3 Revised April 2005
regulations of the City of National City, whether now in force or subsequently enacted.
The CONTRACTOR, and each of its subcontractors, shall obtain and maintain a
current City of National City business license prior to and during performance of any
work pursuant to this Agreement.
10. UCENSES. PERMITS. ETC. The CONTRACTOR represents and
covenants that it has all licenses, permits, qualifications, and approvals of whatever
nature that are legally required to practice its profession. The CONTRACTOR
represents and covenants that the CONTRACTOR shall, at its sole cost and expense,
keep in effect at all times during the term of this Agreement, any license, permit, or
approval which is legally required for the CONTRACTOR to practice its profession.
11. STANDARD OF CARE
A. The CONTRACTOR, in performing any services under this
Agreement, shall perform in a manner consistent with that level of care and skill
ordinarily exercised by members of the CONTRACTOR'S trade or profession currently
practicing under similar conditions and in similar locations. The CONTRACTOR shall
take all special precautions necessary to protect the CONTRACTOR's employees and
members of the public from risk of harm arising out of the nature of the work and/or the
conditions of the work site.
B. Unless disclosed in writing prior to the date of this
agreement, the CONTRACTOR warrants to the CITY that it is not now, nor has it for the
five (5) years preceding, been debarred by a governmental agency or involved in
debarment, arbitration or litigation proceedings conceming the CONTRACTOR's
professional performance or the furnishing of materials or services relating thereto.
C. The CONTRACTOR is responsible for identifying any
unique products, treatments, processes or materials whose availability is critical to the
success of the project the CONTRACTOR has been retained to perform, within the time
requirements of the CITY, or, when no time is specified, then within a commercially
reasonable time. Accordingly, unless the CONTRACTOR has notified the CITY
otherwise, the CONTRACTOR warrants that all products, materials, processes or
treatments identified in the project documents prepared for the CITY are reasonably
commercially available. Any failure by the CONTRACTOR to use due diligence under
this sub -paragraph will render the CONTRACTOR liable to the CITY for any increased
costs that result from the CITY's later inability to obtain the specified items or any
reasonable substitute within a price range that allows for project completion in the time
frame specified or, when not specified, then within a commercially reasonable time.
12. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall
not discriminate against any employee or applicant for employment because of age,
race, color, ancestry, religion, sex, sexual orientation, marital status, national origin,
physical handicap, or medical condition. The CONTRACTOR will take positive action
to insure that applicants are employed without regard to their age, race, color, ancestry,
religion, sex, sexual orientation, marital status, national origin, physical handicap, or
medical condition. Such action shall include but not be limited to the following:
employment, upgrading, demotion, transfer, recruitment or recruitment advertising,
4 Revised April 2005
layoff or termination, rates of pay or other forms of compensation, and selection for
training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous
places available to employees and applicants for employment any notices provided by
the CITY setting forth the provisions of this non-discrimination clause.
13. CONFIDENTIAL INFORMATION. The CITY may from time to time
communicate to the CONTRACTOR certain confidential information to enable the
CONTRACTOR to effectively perform the services to be provided herein. The
CONTRACTOR shall treat all such information as confidential and shall not disclose
any part thereof without the prior written consent of the CITY. The CONTRACTOR
shall limit the use and circulation of such information, even within its own organization,
to the extent necessary to perform the services to be provided herein. The foregoing
obligation of this Section 13, however, shall not apply to any part of the information that
(i) has been disclosed in publicly available sources of information; (ii) is, through no
fault of the CONTRACTOR, hereafter disclosed in publicly available sources of
information; (iii) is already in the possession of the CONTRACTOR without any
obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the
CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof
has been or is rightfully authorized by that third party.
The CONTRACTOR shall not disclose any reports, recommendations,
conclusions or other results of the services or the existence of the subject matter of this
Agreement without the prior written consent of the CITY. In its performance hereunder,
the CONTRACTOR shall comply with all legal obligations it may now or hereafter have
respecting the information or other property of any other person, firm or corporation.
CONTRACTOR shall be liable to CITY for any damages caused by
breach of this condition, pursuant to the provisions of Section 14.
14. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR
agrees to defend, indemnify, and hold harmless the City of National City, its officers
and employees, against and from any and all liability, loss, damages to property,
injuries to, or death of any person or persons, and all claims, demands, suits, actions,
proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature,
including workers' compensation claims, of or by anyone whomsoever, resulting from or
arising out of the CONTRACTOR's negligent performance of this Agreement.
15. WORKERS' COMPENSATION. The CONTRACTOR shall comply
with all of the provisions of the Workers' Compensation Insurance and Safety Acts of
the State of California, the applicable provisions of Division 4 and 5 of the Califomia
Govemment Code and all amendments thereto; and all similar state or Federal acts or
laws applicable; and shall indemnify, and hold harmless the CITY and its officers, and
employees from and against all claims, demands, payments, suits, actions,
proceedings and judgments of every nature and description, including reasonable
attorney's fees and defense costs presented, brought or recovered against the CITY or
its officers, employees, or volunteers, for or on account of any liability under any of said
5 Revised April 2005
acts which may be incurred by reason of any work to be performed by the
CONTRACTOR under this Agreement.
16. INSURANCE. The CONTRACTOR, at its sole cost and expense,
shall purchase and maintain, and shall require its subcontractors, when applicable, to
purchase and maintain throughout the term of this agreement, the following insurance
policies:
® A. If checked, Professional Liability Insurance (errors and omissions)
with minimum limits of $ 2,000,000 per occurrence.
B. Automobile insurance covering all bodily injury and property
damage incurred during the performance of this Agreement, with a minimum coverage
of $1,000,000 combined single limit per accident. Such automobile insurance shall
include non -owned vehicles.
C. Comprehensive general liability insurance, with minimum limits of
$1,000,000 combined single limit per occurrence, covering all bodily injury and property
damage arising out of its operation under this Agreement.
D. Workers' compensation insurance covering all of CONTRACTOR's
employees.
E. The aforesaid policies shall constitute primary insurance as to the
CITY, its officers, employees, and volunteers, so that any other policies held by the
CITY shall not contribute to any loss under said insurance. Said policies shall provide
for thirty (30) days prior written notice to the CITY of cancellation or material change.
F. Said policies, except for the professional liability and worker's
compensation policies, shall name the CITY and its officers, agents and employees as
additional insureds.
G. If required insurance coverage is provided on a "claims made"
rather than "occurrence" form, the CONTRACTOR shall maintain such insurance
coverage for three years after expiration of the term (and any extensions) of this Agree-
ment.
H. Any aggregate insurance limits must apply solely to this Agree-
ment.
Insurance shall be written with only Califomia admitted companies
which hold a current policy holder's alphabetic and financial size category rating of not
less than A-VII according to the current Best's Key Rating Guide, or a company equal
financial stability that is approved by the City's Risk Manager.
J. This Agreement shall not take effect until certificate(s) or other
sufficient proof that these insurance provisions have been complied with, are filed with
and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of
such insurance policies in full force and effect at all times during the terms of this
Agreement, the CITY may elect to treat the failure to maintain the requisite insurance
as a breach of this Agreement and terminate the Agreement as provided herein.
17. LEGAL FEES. If any party brings a suit or action against the other
party arising from any breach of any of the covenants or agreements or any
inaccuracies in any of the representations and warranties on the part of the other party
arising out of this Agreement, then in that event, the prevailing party in such action or
6
Revised April 2005
dispute, whether by final judgment or out -of -court settlement, shall be entitled to have
and recover of and from the other party all costs and expenses of suit, including
attorneys' fees.
For purposes of determining who is to be considered the prevailing party,
it is stipulated that attorney's fees incurred in the prosecution or defense of the action
or suit shall not be considered in determining the amount of the judgment or award.
Attomey's fees to the prevailing party if other than the CITY shall, in addition, be limited
to the amount of attorney's fees incurred by the CITY in its prosecution or defense of
the action, irrespective of the actual amount of attorney's fees incurred by the
prevailing party.
18. MEDIATION/ARBITRATION. If a dispute arises out of or relates
to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to
settle the dispute by mediation in San Diego, California, in accordance with the
Commercial Mediation Rules of the American Arbitration Association (the "AAA") before
resorting to arbitration. The costs of mediation shall be borne equally by the parties.
Any controversy or claim arising out of, or relating to, this Agreement, or breach
thereof, which is not resolved by mediation shall be settled by arbitration in San Diego,
California, in accordance with the Commercial Arbitration • Rules of the AAA then
existing. Any award rendered shall be final and conclusive upon the parties, and a
judgment thereon may be entered in any court having jurisdiction over the subject
matter of the controversy. The expenses of the arbitration shall be borne equally by the
parties to the arbitration, provided that each party shall pay for and bear the costs of its
own experts, evidence and attorneys' fees, except that the arbitrator may assess such
expenses or any part thereof against a specified party as part of the arbitration award.
19. TERMINATION. A. This Agreement may be terminated with or
without cause by the CITY. Termination without cause shall be effective only upon 60-
day's written notice to the CONTRACTOR. During said 60-day period the
CONTRACTOR shall perform all services in accordance with this Agreement.
B. This Agreement may also be terminated immediately by the CITY
for cause in the event of a material breach of this Agreement, misrepresentation by the
CONTRACTOR in connection with the formation of this Agreement or the performance
of services, or the failure to perform services as directed by the CITY.
C. Termination with or without cause shall be effected by delivery of
written Notice of Termination to the CONTRACTOR as provided for herein.
D. In the event of termination, all finished or unfinished Memoranda
Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the
CONTRACTOR, whether paper or electronic, shall immediately become the property of
and be delivered to the CITY, and the CONTRACTOR shall be entitled to receive just
and equitable compensation for any work satisfactorily completed on such documents
and other materials up to the effective date of the Notice of Termination, not to exceed
the amounts payable hereunder, and less any damages caused the CITY by the
CONTRACTOR's breach, if any. Thereafter, ownership of said written material shall
vest in the CITY all rights set forth in Section 6.
7 Revised April 2095
E. The CITY further reserves the right to immediately terminate this
Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR;
(2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business
reorganization, change in business name or change in business status of the
CONTRACTOR.
20. NOTICES. All notices or other communications required or
permitted hereunder shall be in writing, and shall be personally delivered; or sent by
ovemight mail (Federal Express or the like); or sent by registered or certified mail,
postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or
telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall
be deemed received upon the earlier of (i) if personally delivered, the date of delivery
to the address of the person to receive such notice, (ii) if sent by overnight mail, the
business day following its deposit in such overnight mail facility, (iii) if mailed by
registered, certified or ordinary mail, five (5) days (ten (10) days if the address is
outside the State of Califomia) after the date of deposit in a post office, mailbox, mail
chute, or other like facility regularly maintained by the United States Postal Service, (iv)
if given by telegraph or cable, when delivered to the telegraph company with charges
prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice,
request, demand, direction or other communication delivered or sent as specified
above shall be directed to the following persons:
To the CITY:
Kathleen Trees
City of National City
1243 National City Boulevard
National City, CA 91950-4301
To the CONTRACTOR: Manfred G. Endres, Sr. Vice President
MAXIMUS
17310 Red Hill Ave., Suite 340
Irvine, CA 92614
Notice of change of address shall be given by written notice in the manner
specified in this Section. Rejection or other refusal to accept or the inability to deliver
because of changed address of which no notice was given shall be deemed to
constitute receipt of the notice, demand, request or communication sent. Any notice,
request, demand, direction or other communication sent by cable, telex, telecopy,
facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or
delivered as specified in this Section.
21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not
perform services of any kind for any person or entity whose interests conflict in any way
with those of the City of National City. The CONTRACTOR also agrees not to specify
any product, treatment, process or material for the project in which the CONTRACTOR
has a material financial interest, either direct or indirect, without first notifying the CITY
8 Revised April 2005
of that fact. The CONTRACTOR shall at all times comply with the terms of the Political
Reform Act and the National City Conflict of Interest Code. The CONTRACTOR shall
immediately disqualify itself and shall not use its official position to influence in any way
any matter coming before the CITY in which the CONTRACTOR has a financial interest
as defined in Govemment Code Section 87103. The CONTRACTOR represents that it
has no knowledge of any financial interests that would require it to disqualify itself from
any matter on which it might perform services for the CITY.
❑ If checked, the CONTRACTOR shall comply with all of the
reporting requirements of the Political Reform Act and the National City Conflict of
Interest Code. Specifically, the CONTRACTOR shall file a Statement of Economic
Interests with the City Clerk of the City of National City in a timely manner on forms
which the CONTRACTOR shall obtain from the City Clerk.
The CONTRACTOR shall be strictly liable to the CITY for all damages,
costs or expenses the CITY may suffer by virtue of any violation of this Paragraph 21
by the CONTRACTOR.
22. MISCELLANEOUS PROVISIONS.
A. Computation of Time Periods. If any date or time period provided
for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal
holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of
the next day which is not a Saturday, Sunday or federal, state or legal holiday.
B. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which, together,
shall constitute but one and the same instrument.
C. Captions. Any captions to, or headings of, the sections or
subsections of this Agreement are solely for the convenience of the parties hereto, are
not a part of this Agreement, and shall not be used for the interpretation or
determination of the validity of this Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly
provided herein, the execution and delivery of this Agreement shall not be deemed to
confer any rights upon, or obligate any of the parties hereto, to any person or entity
other than the parties hereto.
E. Exhibits and Schedules. The Exhibits and Schedules attached
hereto are hereby incorporated herein by this reference for all purposes.
F. Amendment to this Agreement. The terms of this Agreement may
not be modified or amended except by an instrument in writing executed by each of the
parties hereto.
G. Waiver. The waiver or failure to enforce any provision of this
Agreement shall not operate as a waiver of any future breach of any such provision or
any other provision hereof.
H. Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of California.
I. Entire Agreement. This Agreement supersedes any prior agree-
ments, negotiations and communications, oral or written, and contains the entire
9 Revised April 2005
agreement between the parties as to the subject matter hereof. No subsequent
agreement, representation, or promise made by either party hereto, or by or to an
employee, officer, agent or representative of any party hereto shall be of any effect
unless it is in writing and executed by the party to be bound thereby.
J. Successors and Assigns. This Agreement shall be binding upon
and shall inure to the benefit of the successors and assigns of the parties hereto.
K. Construction. The parties acknowledge and agree that (i) each
party is of equal bargaining strength, (ii) each party has actively participated in the
drafting, preparation and negotiation of this Agreement, (iii) each such party has
consulted with or has had the opportunity to consult with its own, independent counsel
and such other professional advisors as such party has deemed appropriate, relative to
any and all matters contemplated under this Agreement, (iv) each party and such
party's counsel and advisors have reviewed this Agreement, (v) each party has agreed
to enter into this Agreement following such review and the rendering of such advice,
and (vi) any rule or construction to the effect that ambiguities are to be resolved against
the drafting party shall not apply in the interpretation of this Agreement, or any portions
hereof, or any amendments hereto.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the date and year first above written.
CITY OF NATIONAL CITY
By:
MAXIMUS
(Corporation - signatures of two corporate officers)
(Partnership - one signat ; •)
(Sole pro . ' ; orship -
By:
Chris . ; a a, -ity Manager (Na ` e
Vic � Pe cc ck._,
APPROVED AS TO FORM:
George H. tiser, III
City Attorney
10
(Title)
(Name)
V C1C`e-n±
(Title)
Revised April 2005
Attachment: Scope of Services -
Ms. Kathleen Trees
Building Official
City of National City
1243 National City Blvd.
National City, CA 91950
Dear Kathleen,
February 13, 2006
This responds to your request for an update of the user fee analysis delivered
to the City last year. As I understand the current situation, several of the
previous (City) participants are no longer with your organization, and the new
personnel wish to re-evaluate earlier assumptions, and add new fees.
Many of our clients request periodic updating of the fee analysis. There are
two primary options, with several intervening alternatives:
46 Financial Overlay— This is the simplest, and least costly option. In this
update, we re-enter the current financial information (salaries, expenses)
and make minor time -to -complete changes.
4. Full Re-evaluation — At the other end of the spectrum, this option heads
back close to "ground zero." We examine the entire analysis for (1) time
and process shifts, and (2) organizational shifts. In this option we re -
interview staff to gain updated insight into current workloads, new fee
opportunities, and anticipated future actions.
My assumption is that you are interested in the Full Re-evaluation option.
Frankly, I think it is a cost-effective decision because the potential to enhance
the original model's findings far outweighs the study fee. We find (in both cost
plan and user fee studies) that there is a significant improvement from the first
analysis to the second study. In the interim, staff has had a chance to better
reflect on originally provided information, they see areas for improvement,
and the Impact of the study's outcomes is clearer. Subsequent updates show
less dramatic increases.
An additional case for the proposed option is that since we completed your
study, we have rolled out a new user fee computer model that provides for
increased management information. The previous model captured time data
at the "fee" level, i.e. we asked staff how much time was spent on, for
example, a site plan review. Out new model Is structured on an activity based
costing platform...in which we capture the "processes" that make up the fee.
A bottom line costs is still produced, but our clients can now see the individual
components of the fee activity. It provides a "target of opportunity" to see
where improvements might be made, although it is by no means an
EXHIBIT 1
t7
operations improvement study. Appendix A provides an overview of the new
methodology, which we call "Process Analytics°.
The original study included both a cost plan and fee analysis on the building,
planning, engineering, police, and recreation programs and totaled $48,000.
We do not believe it is necessary to re -do the cost plan, unless you believe it
to be appropriate. We can increase the allocations by the city's most recent
salary/benefit MOU agreements.
Please let me know if this scope meets your requirements. I can, of course
modify any component to achieve the City's goals. Hopefully, we can reach
agreement quickly. We should be beginning the City of Chula Vista's Building
Department NEXUS analysis shortly, and an economy of travel time could
reduce overall costs/expense for all concerned.
Manfred Endres, our Regional Sr. Vice President, will be sending you a
signed copy of this proposal. Contracting should be quite simple this time.
Very truly yours,
Richard Pearl
Manager, Client Services
Manfred Endres
Senior Vice President
roscepaira
APPENDIX A
MAXIMUS ACTIVITY BASED COSTING MANAGEMENT MODEL -
PROCESS ANAL YTICS
When requesting a user fee study, clients typically think in terms of the
consultant providing a listing of the full cost of the jurisdiction's current
and potential fee -for -service activities. MAXIMUS believes our clients
benefit from a better understanding of the cost components of each fee
or activity. To this end, we have designed an analytical model (Process
Analytics) based on the principles of Activity Based Costing.
In effect, "Level 1" gives the client the fee data; "Level 2" provides
insight as to why costs are what they are, and highlights targets of
opportunity for business process re -engineering. An example of the
activity information is displayed below:
35%
30%
25% }- —
20% —• -
15%
10%
5%
0%
• Non -Specific Activity
• Intake and Processing
o Initial Review
■ Detaied Review
In Follow-up Questions
■ Documentation
[is Notification
• Filing and Archiving
At its core, ABC seeks to know what activities, products, and services
really cost, and understand what drives that cost. With this knowledge,
the organization is in a better position to deliver services faster,
cheaper, and more effectively.
in a highly collaborative work session, MAXIMUS will work with staff
and leadership to identify and define those work processes that
produce City services. The list is individualized to each client, although
we can provide general guidelines from other studies. As an example,
for the Planning Division, MAXIMUS consultants will facilitate a
process that identifies mission critical processes and then define those
processes by the activities and tasks that support them. One recent
project resulted In the following partial list of planning processes:
Planning Department
Processes 1 Activity / Definition
Pre application review A fornud meeting oVitrt re ip*ie.dr atilt ounter. Solaiedth)e•iavolving
extensive discussion beyotadnormal publkhifotmefion al the counter or
over the phone.
Application intake Receive application; enter into database; assign to a planner, create
application file.
Application Review Review for completeness; zoning calculations; initialdesign review; site
visit; prepare findings report, routing plans. Schedule and attend managed
meeting; prepare conditions of app sval; prepare and mail letters; close file.
Respond to public inquiries via phone, counter, e-mail associated with a
particular project.
Environmental Compliance Determine if exempt; prepare initial study; send to responsible agencies;
complete Negative Declaration; filing documents with City recorder.
Development Review Committee Development review committee meetings and design review, set agendas,
write and transmit mmutcs.
Maintain Legal Documents 'Update zoning ordinance; condition of approval maintenance; zoning
'interpretations, legal updates; prepare, print and maintain zoning and general
plan maps; annual Planning Conanission Report.
Plan Check (both residential and 1Revie projtxt in plan check; follow up on conditions of approval; site visit
commercial) !for ptgieetfkrtai;:ieivieeWlegal 'egtO s (CC&R's development agreements).
Staff will be asked to identify times not to the individual fee, but to each
activity within each fee (examples above) that will build to a fee total.
While this may seem somewhat extreme and an onerous time burden
on staff, we have found that the approach — by more effectively
defining service times at a more detailed level — actually saves time
overall. The reason is that we develop better initial information which
shortens the number of review and fine-tuning iterations. The intemal
balancing routines within the Process Anaiytics model correlate total
time spent to the number of units produced, and compares that total
against a known available number of productive hours. In the end, we
arrive at rock -solid times-to-complete/total cost that balances with
known staff resources. An example of an individual fee is shown
below:
CoodilfgoiliaseTeriattiaillMtoiiiitiintet
- I S_ X094
Application Intake
$ 41
Pre application review
$ 82
Application Processing
$ 165
Application Review
$ 165
Development Review Committee
S 494
Zoning Administrator Meeting
$ 329
Public Interaction
$ 165
County Board Meetings & appeals
$ -
General Administration
$ 60
Public Counter
S 388
GIS
$ 53
EPC Maintenance
$ 36
General Plan & Data Maintenance
S 90
Maintain Legal Documents
$ 26
In addition to the activity costs, we can also assign additional coding -
attributes - to each activity. Attributes are specific characteristics of an
activity. Attribute examples include: mission critical, regulatory
required, value added, non -value added, administrative.
Examples of the output available are shown below
Activity Definition
Attribute Analysis
�Adnrinistrative
in Agency Mandates
Passion OlMeal
Non Value Added/MC.
lf, for example, an activity that has significant cost displays low value
added (from the client's perspective), and is not mission critical or
regulatory required, it is a logical candidate for business process re -
engineering.
In summary, Process Analytics will provide City staff not only with a fee
table and projected revenue, but a significantly improved
understanding of the cost and rationale of the activities underlying
each fee.
EXHIBIT 2
The Contractor will complete the work in 3 months from the "Notice to Proceed".
Revised April 2005
1�
City of National City
Office of the City Clerk
1243 National City Boulevard, National City, CA 91950-4397
Michael R. Dana, CMC - City Clerk
(619) 336-4228 Fax: (619) 336-4229
August 11,2008
Manfred G. Endres, Sr. Vice President
Maximus
17130 Red Hill Avenue, Suite 340
Irvine, CA 92614
Project: National City — Update to cost of services/user fees analysis
contract.
Dear Mr. Endres:
On July 10th, 2006 the City of National City and Maximus entered into an
Agreement to update the cost of services/user fees analysis performed in 2004.
We are pleased to enclose one fully executed original contract for your records.
Should you have any questions, please contact the Building and Safety
Department at (619) 336-4210.
Michael R. Dalla
City Clerk
MRD
Enclosure
cc: Building and Safety
® Recycled Paper
File C2004-1
City of National City
Office of the City Attorney
1243 National City Boulevard., National City, CA 91950-4301
George H. Elser, III . City Attorney
(619) 336-4220 Fax: (819) 336-4327 TDD: (619) 336-1615
TO: City Clerk
FROM: City Attorney
SUBJECT: 'transmittal of Agreement with Maximus
DATE: August 3, 2006
Transmitted herewith are two original agreements with Maximus to perform an updated user fee
analysis. Please keep one original in your files, and transmit one original to Maximus at the
address shown on page 8 of the agreement.
This agreement is within the signature authority of the City Manager, and accordingly, there is
no resolution authorizing the agreement.
GEORGE H. EISER, III
City Attorney
GIIE/gmo
Attachments
cc: Assistant City Manager
Acting Director of Building and Safety
® Recycled Paper
MAXIMUS
HELPING GOVERNMENT SERVE THE PEOPLE'
March 8, 2007
Mr. Joe Olson
Building Department
City of National City
1 243 National ('itv Boulevard
National City, CA 91950-4301
Re: Proposal for Enhance the Citywide User Fee Study Update
Dear Mr. Olson:
Upon initiation of our update to the 2004 User Fee Study, we developed some issues, concerns,
and requests that we did not anticipate when we wrote our Update Proposal in January, 2006.
While we ordinarily expect some level of change between the time of our proposal and the time
that a project commences, in this case, we experienced a significant number of issues that need to
be resolved.
When we discovered these concerns, we brought them to your attention, and you agreed that they
merit further consideration. ,among those concerns are:
• The Finance Department was not included in the 2004 study, but would like to he
added to the current study. While we anticipate only a few fees in the Finance
Department, in order to add them to the Citywide study, we will need to develop a
base model for that department.
• 'Many of'the departments that were included in the 2004 study are requesting far
more changes to their fee schedules than we would have anticipated. We were
expecting the addition or deletion of perhaps a couple of ices within each department.
Instead, some departments are adding a doi,etl or more fees.
• The Engineering Department has indicated that it will be creating an entirely new fee
schedule, without much resemblance to the one created in 2004. In order to meet the
Fngineering Department's expectations, we will likely need to develop an entirely
new base model for Engineering., as if \ve did not prepare a tee schedule for them in
2004.
• Some departments have undergone si2niticant staffing changes since 2004, which
requires a reconsideration of which start are assigned to each fee activity, and the
matching of those staff to the current costs associated with their time and efforts.
• The Finance Department does not seem to have financial data readily available at the
level of detail required for the fee study. 1 bus, we will need to be working more
432(i AUISURN IBL\'l , SU11112000' S.\(;R.\\11'.N 10, (A 9fs I I !'',I(i ' 510: I 4I1, IS, (,i I I FAN I \\'\v\\.\I,\XI\1t:S( U\t
Zb
closely with Finance than we originally planned to obtain appropriate expenditure
and revenue information.
At present, we have a contract with the City to update the 2004 study for $22,000. In addition, we
have a contract with the Community Development Commission (CDC) to add them to the study
for an additional $9,400. (Please note that we are still awaiting receipt of the executed contract for
the CDC.) The relative difference in cost between the Citywide update and the addition of the
CDC is that the update was to include only minor adjustments to the fee schedule, and the
assumption that staffing and financial inthrrnation needed only to be updated for current budget
figures. The cost of adding the CDC was in essence the cost of developing a new model for them
with a medium sized fee schedule.
We certainly appreciate the continued customer loyalty that the City ofNational City has shown
to MAXIMUS, and for that reason, we have attempted to absorb as many of the unexpected costs
related to this study as possible. However, the magnitude of the changes and the difficulty we are
experiencing in obtaining financial information has caused its to consider an amendment to our
agreement.
After careful consideration, we arc proposing to include new schedules for the Finance and
Engineering Departments, plus the addition of all fees already requesting by other departments,
and the additional research required with the Finance Department to ohtain revenue and
expenditure budgetary information needed for the study —all for an additional $14,700.
Please let inc know whether you would like for MAXIMUS to proceed with the study update as it
is presently configured, or whether you would like to add the items requested by your
departments for an additional $14,700.
l hank you az air, Joe, for working with us on this Fee Study update. On behalf of MAXIMUS, we
look forward to our next on -site visit.
Sincerely.
Brian A. Foster, Senior Manager
MAXIMUS Financial Services Division
4320 Auburn Boulevard, Suite 2000
953i1-d154
Phone: (916) 485-8102, ext. 305
Fax: (916) 485-01 1 1
E-mail: hrianfosterAmaximus.eonr
Page 21
MAXIMUS
MAXIMUS•
HELPING GOVERNMENT SERVE THE PEOPLE'•
April 10, 2007
Mr. Joe Olson
Building Department
City of National City
1243 National City Boulevard
National City, CA 91950-4301
Re: Timing of User Fee Studies
Dear Mr. Olson:
Thank you, Joe, for calling me today about your concerns related to the User Fee Study's project
completion date. We are committed along with you to bringing this project to a swift completion.
Upon approval of the revised contract, we are prepared to bring additional resources to this
project and complete it within a two -month time frame, given the City's firm commitment to
produce accurate data and perform timely reviews of our draft documents.
Along those lines, we will add Greta Davis, a Manager in our Irvine, California office, to this
project. With Greta's additional support, I am confident that we will bring our project to a quick
conclusion. Our pricing for this project remains the same, we will simply complete the
assignments in a shorter period of time.
Once you have the amended City contract and the executed Community Development
Commission contract, please forward them to me as soon as possible so that we may complete
our fieldwork.
Sincerely.
Brian A. Foster, Senior Manager
MAXIMUS Financial Services Division
4320 Auburn Boulevard, Suite 2000
Sacramento, CA 95841-4154
Cell: (510) 432-6367
Office: (916) 485-8102, ext. 305
Fax: (916) 485-0111
E-mail: brianfoster@maximus.com
ZL
RESOLUTION NO. 2007 —
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE AN
AGREEMENT BY AND BETWEEN THE CITY OF
NATIONAL CITY AND MAXIMUS
WHEREAS, the CITY desires to employ a Contractor to provide an update to the
cost of services/user fees analysis performed in 2004; and
WHEREAS, the CITY has determined that the MAXIMUS is a corporation and is
qualified by experience and ability to perform the services desired by the CITY, and is willing to
perform such services.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute an Agreement between the City and
Maximus to provide an update to the cost of services/user fees analysis performed in 2004.
Said Agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 17th day of April, 2007.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
City of National City
Office of the City Clerk
1243 National City Boulevard, National City, CA 91950-4397
Michael R. Dalla, CMC - City Clerk
(619) 336-4228 Fax: (619) 336-4229
May 22, 2007
Mr. Manfred Endres
Vice President
Maximus
17310 Red Hill Avenue, Suite 340
Irvine, CA 92614
Dear Mr. Endres,
On April 17, 2007, Resolution No. 2007-76 was passed and adopted by the City
Council of National City, authorizing amendment to agreement with Maximus.
We are enclosing for your records a certified copy of the above Resolution and a
fully executed original agreement.
Sincerely,
Foe, Michael R. Dalla, CMC
City Clerk
Enclosure
cc: Building & Safety Dept.
® Recycled Paper