HomeMy WebLinkAbout25G - AGMT - REIMBURSEMENT CLAIM SRVSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 16, 2013
TITLE:
AGREEMENT WITH MGT OF AMERICA, INC.
FOR STATE MANDATED COST
REIMBURSEMENT CLAIM SERVICES
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1" Reading
? Ordinance on 2n° Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to execute an agreement with MGT of America
Inc, for State mandated cost reimbursement claim services for fiscal years 2013, 2014 and 2015, in
an aggregate amount not to exceed $34,300 for the three-year period subject to non-substantive
changes approved by the City Manager and City Attorney.
DISCUSSION
Local agencies provide various programs and services which are mandated by the State of California.
When the Governor or Legislature mandate new programs or higher level of service, the State
Constitution requires the State to reimburse local agencies for all eligible expenses through the SB90
State mandated cost reimbursement claims process. Over the past three years, the City of Santa
Ana has received approximately $200,000 per year in State reimbursements for mandated programs
and services such as the Administrative License Suspension and Domestic Violence Arrest Policies
and Procedures required in law enforcement agencies.
A Request For Proposal was issued on July 18, 2013 to firms providing SB90 claim preparation
services. MGT of America, Inc. (MGT), which has filed SB90 reimbursement claims with the State
Controller's Office (SCO) since 1990, was the only responsive bidder. Staff recommends the
selection of MGT for State Mandated cost reimbursement claim services.
FISCAL IMPACT
Funds are available in the State mandate cost reimbursement revenue account (account no.
01114002-50503) as funds are received. There is no direct fiscal impact on any expenditure
accounts of the City or its related agencies.
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Agreement with MGT of America, Inc.
for State-Mandated Cost Reimbursement Services
September 16, 2013
Page 2
APPROVED AS TO FUNDS AND ACCOUNTS:
?
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
BT/MP
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AGREEMENT FOR STATE MANDATED
COST REIMBURSEMENT SERVICES
This Agreement is effective as of the Ise day of September, 2013 by the City of Santa Ana, a
municipal corporation and charter City duly organized and existing under the constitution and laws
of the State of California ("City") and MGT of America, Inc. ("Consultant"), a California
Corporation.
RECITALS
A. The City desires to retain a Consultant having special skill and knowledge in the field of
preparing applicable State Mandate Reimbursement claims in order to maximize revenue to City.
B. The City issued a Request for Proposals for said services on July 18, 2013 (RFP 13-035)
and based upon the proposals received, this contract is being awarded to Consultant.
C. Consultant represents that Consultant is an independent contractor that has the knowledge
and experience to prepare and submit such State Mandate Reimbursement claims on behalf of City.
D. In undertaking the performance of this Agreement, Consultant represents that it is
knowledgeable in its field and that any services performed by Consultant under this Agreement will
be performed in compliance with such standards as may reasonably be expected from a professional
consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject
to the terms and conditions hereinafter set forth, the parties agree as follows:
SCOPE OF SERVICES
Consultant shall perform those services and provide those products as set forth in Exhibit A to
this Agreement. The following terms shall apply to the terms and conditions set forth in Exhibit A:
1) City shall approve each claim; 2) Claim shall be filed based upon proof of City costs; 3) Claim
shall not be filed if costs do not exceed One Thousand Dollars ($1,000) per program per year. If
data needed to file applicable claims is not provided by City in a timely manner Consultant cannot
guarantee timely submission of claims.
Consultant will file the claims with information obtained from City. Consultant shall only
file claims for which adequate records or documentation has been provided by City.
2. TERM
This Agreement shall commence on the date first written above and be effective for a three
(3) year period with two (2) additional one-year options to renew at the City's discretion, unless
terminated earlier in accordance with Section 15, below. The term of this Agreement may be
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extended upon a writing executed by the Executive Director of the Finance Department and the City
Attorney.
3. COMPENSATION
a. City agrees to pay, and Consultant agrees to accept as total payment for its services,
identified in Exhibit A, Consultant agrees to file all eligible annual fiscal year actual cost
reimbursement claims by the due date in accordance with the annual fixed fee schedule:
Claims Covered Claims Due Date Annual Fixed Fee
2012-2013 Annual & New February 15, 2014 $11,500
2013-2014 Annual & New February 15, 2015 $11,400
2014-2015 Annual & New February 15, 2016 $11,400
b. City shall be billed quarterly for the annual fixed fee. Payment by City shall be made
within thirty (30) days following receipt of proper invoice evidencing work performed, subject to
City accounting procedures. Payment need not be made for work which fails to meet the standards
of performance set forth in the Recitals which may reasonably be expected by City.
4. INSURANCE
Consultant shall obtain and maintain for the entire term of this Agreement comprehensive
general liability insurance, with companies acceptable to the City, authorized to issue such
insurance in the State of California. Said insurance shall consist of the following:
a. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of
the Labor Code, Consultant, if Consultant has any employees, is required to be insured against
liability for worker's compensation or to undertake self-insurance. Prior to commencing the
performance of the work under this Agreement, Consultant agrees to obtain and maintain any
employer's liability insurance with limits not less than $1,000,000 per accident.
b. Professional Responsibility (Errors and Omissions) insurance with a combined single
limit of not less than $1,000,000.00 per claim.
c. The following requirements apply to the insurance to be provided by Consultant pursuant
to this section:
(i) Consultant shall maintain all insurance required above in full force and
effect for the entire period covered by this Agreement.
(ii) Certificates of insurance shall be furnished to the City upon execution of this
Agreement and shall be approved in form by the City Attorney.
(iii) Certificates and policies shall state that the policies shall not be canceled or reduced
in coverage or changed in any other material aspect without thirty (30) days prior
written notice to the City.
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5. LIABILITY
Consultant shall be responsible for performing the work pursuant to this Agreement in a
professional manner and shall be responsible for the acts and omissions of its employees as related
to this Agreement. Liability of Consultant to City with regard to all work and services performed or
provided by Consultant for City under this Agreement shall be limited to the total fee actually paid
by City to Consultant. Under no circumstances shall Consultant have any liability to City in excess
of the amount of such fees or compensation. City acknowledges and agrees that but for the above
limitation of liability, Consultant would not be able to provide the services for City under this
Agreement for the prices applicable to this Agreement, and that this limitation of liability is
reasonable.
6. WORK COMPLETION IN A TIMELY MANNER
City agrees to provide information needed to complete the claims two weeks prior to the
established due date or two weeks after the data has been requested by the Consultant, whichever is
first. If information has been received in a timely manner, Consultant agrees to complete and file
the claim(s) on or before the date established for submitting such claims to the State of California.
If data is not provided in a timely manner and Consultant is unable to complete the claims,
the claims shall be submitted late, when allowed by the State. City understands that late claims are
subject to a 10% or One Thousand Dollar ($1,000) per claim penalty (whichever amount is less) up
to one year after the original due date. City understands that the State does not allow claims to be
submitted more than one year after the original due date.
Consultant shall not be responsible for late penalties or for the loss of claiming
opportunities. Consultant shall not be liable for any claims not filed due to incomplete, insufficient,
or late information. Consultant shall be responsible for late penalties or failure to file claims if
caused by mistake or negligence of its employees, officers and agents.
INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an
independent contractor and not an employee of the City. This Agreement is not intended nor shall it
be construed to create an employer-employee relationship, a joint venture relationship, or to allow
the City to exercise discretion or control over the professional manner in which Consultant performs
the services which are the subject matter of this Agreement; however, the services to be provided by
Consultant shall be provided in a manner consistent with all applicable standards and regulations
governing such services. Consultant shall pay all salaries and wages, employer's social security taxes,
unemployment insurance and similar taxes relating to employees and shall be responsible for all
applicable withholding taxes.
8. ASSISTANCE IF AUDITED
In the event an audit is conducted by the State Controller's Office and upon notification by
City, Consultant shall assist City in defending its' claim(s).
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9. INDEMNIFICATION
Consultant agrees to and shall indemnify and hold harmless the City, its officers, agents,
employees, consultants, special counsel, and representatives from liability: for personal injury,
damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal
injury, including health, and claims for property damage, which may arise from the negligent
operations of the Consultant or its contractors, subcontractors, agents, employees, or other persons
acting on their behalf which relates to the services described in section 1 of this Agreement. The
Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City,
including fees and costs for special counsel to be selected by the City, regarding any action by a
third party challenging the validity of this Agreement, or asserting that personal injury, damages,
just compensation, restitution, judicial or equitable relief due to personal or property rights arises by
reason of the terms of, or effects arising from this Agreement. City may make all reasonable
decisions with respect to its representation in any legal proceeding.
10. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such information
is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use
or disclose such information except in the performance of this Agreement, and further agrees to
exercise the same degree of care it uses to protect its own information of like importance, but in no
event less than reasonable care. "Confidential Information" shall include all nonpublic information.
Confidential information includes not only written information, but also information transferred
orally, visually, electronically, or by other means. Confidential information disclosed to either party
by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing
obligations of non-use and nondisclosure shall not apply to any information that (a) has been
disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a
publicly available source; (c) is in rightful possession of the Consultant without an obligation of
confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed
by the Consultant without reference to information disclosed by the City.
11. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests, direct or
indirect, which would conflict in any manner with performance of services specified under this
Agreement.
12. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement
shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first
class or certified mail, postage prepaid, or sent by telefacsimile or other telegraphic communication
in the manner provided in this Section, to the following persons:
25G-6
To City: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
telefacsimile (714) 647-6956
With courtesy copies to:
Executive Director of Finance
City of Santa Ana
20 Civic Center Plaza (M-17)
P.O. Box 1988
Santa Ana, California 92702
telefacsimile (714)
and
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702
telefacsimile (714) 647-6515
To Consultant: MGT of America
California Office:
MGT of America, Inc.
J. Bradley Burgess, Vice President
2001 P Street, Suite 200
Sacramento, CA 95811
Phone: 916-595-2646
bburgess@mgtamer.com
Corporate Headquarters:
MGT of America, Inc.
2123 Centre Pointe Blvd.
Tallahassee, Florida 32308
Phone: 850-386-3191
Fax: 850-385-4501
www.mgtofamerica.com
A party may change its address by giving notice in writing to the other party. Thereafter,
any communication shall be addressed and transmitted to the new address. If sent by mail,
5
25G-7
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed
as set forth above. If sent by telefacsimile, communication shall be effective or deemed to have
been given twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time
frames, weekends, federal, state, County or City holidays shall be excluded.
13. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Consultant, and supersedes any and all other agreements, oral or written, between the parties. In the
event of a conflict between the terms of this Agreement and any attachments hereto, the terms of
this Agreement shall prevail. This Agreement may not be modified except by written instrument
signed by the City and by an authorized representative of Consultant. The parties agree that any
terms or conditions of any purchase order or other instrument that are inconsistent with, or in
addition to, that terms and conditions hereof, shall not bind or obligate Consultant nor the City.
Each party to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, which are not embodied herein.
14. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Consultant,
Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without the
City's prior written consent shall be considered null and void. Nothing in this Agreement shall be
construed to limit the City's ability to have any of the services which are the subject to this
Agreement performed by City personnel or by other consultants retained by City.
15. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination.
a. The Executive Director may require Consultant to deliver to the City all work product
completed as of such date, and in such case such work product shall be the property of the City unless
prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City
deems appropriate.
b. Payment need not be made for work which fails to meet the standard of performance
specified in the Recitals of this Agreement.
16. DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital status,
sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by
25G-8
applicable law, in the recruitment, selection, training, utilization, promotion, termination or other
employment related activities. Consultant affirms that it is an equal opportunity employer and shall
comply with all applicable federal, state and local laws and regulations.
17. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity,
interpretation, performance, and enforcement of any of the clauses of this Agreement shall be
determined and governed by the laws of the State of California. Both parties further agree that
Orange County, California, shall be the venue for any action or proceeding that may be brought or
arise out of, in connection with or by reason of this Agreement.
18. PRO F +SSIONALLICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder
and required by the laws and regulations of the United States, the State of California, the City of
Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in
writing of her inability to obtain or maintain such permits, licenses, approvals, waivers, and
exemptions. Said inability shall be cause for termination of this Agreement.
19. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature hereinbelow has the power,
authority and right to bind their respective parties to each of the terms of this Agreement, and shall
indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to
City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth
in the body of this Agreement.
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IN WITNESS WHEREOF, the parties have executed this Agreement the date and year first above
written.
ATTEST:
CITY OF SANTA ANA
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
Lisa Storck
Assistant City Attorney
Kevin O'Rourke
Interim City Manager
MGT of America
By:
Title:
TaxID# 59-1576733
25G-10
MGT of America Response to the City of Santa Ana
Request for Proposal 13-035 for Mandaled Cost
Claiming Services (SIB 90)
EXHIBIT A
Within the past five years, MGT of America has not been a party to any litigation relating the
work described by the City's RFP.
B. Scapa of Service
Understanding of the Project
The City of Santa Ana Is a California public agency that wishes to supplement existing revenue
sources by filing state mandate cost claims (SB 90 claims) with the California State Controller's
Office (SCO). Lice many public agencies in California, the City of Santa Ana has weathered a
significant economic downturn over the past decade. Generating sufficient revenue to offset the
growing demands for service and Increased costs in many areas of government remains a
challenge,
It Is our understanding that the City of Santa Ana would like to partner with a qualified
consulting firm that specializes In SB 90 consulting to do the following:
r Prepare and file all eligible S690 claims for annual claims and associated ICRPs due
during Fiscal Year 2013-2014 and the subsequent two Fiscal Years, 2014-2015 and
2015-2016.
> Prepare and file all eligible SIB 90 claims for all new or first-time mandates and
associated ICRPs, which have claiming Instructions issued by the State Controller's
office during Fiscal Year 2013.2014 and the subsequent, two Fiscal Years, 2014.20 f 5
and 2015-2016.
> Assist the City with all aspects of remittance tracking including annual claim recelpts
and claims paid reports.
r Provide assistance to the City in responding to Inquiries about and/or defending
claims filed by the City that are audited by the State Controller's office.
r Provide guidance to the City in determining the data required for claims submission
and about new claiming opportunities Including knowledge transfer and training
related to the SS 90 process at the state level,
> Furnish copies of all ciatms filed with the State within 30 days after the filing and
provide copies of working papers upon request,
Following Is the MGT of America plan to accomplish your request on time and on budget.
MGT
UR ,M%. IQ.. Im..
25G-11
MGT of America Response to the City of Sranlo An.-7
(490 Request for Proposal 13-033 far hicindolecl Cos!Claiming Services (SB 90)
EXHIBIT A
Annual, New and Initial Claims: Preparation and Submission
r Establish schedule and approach needed to complete all annual claims due to the
state by February 15, 2014. This Includes on-site interviews with all applicable City
department personnel.
r Identify new clalms that are expected to become mandated programs during FY
2013-2014, and the departments likely to be affected by these claims. As part of thls
step, MGT will provide early claim summaries and data collection requirements to
provide a head start on documentation strategies.
> Work wlch the City, as new claiming Instructions are Issued by the SCO, to establish
schedules and approaches needed to complete all new or first-time claims due
during the Fiscal Year.
> Facilitate department interviews where staff describe how the City complies with
the specific mandated programs and assist the City to determine eligible costs based
on the following criteria:
. The test claim's Statement of Decision
The California Commission on State Mandates approved Parameters and
Guidelines
• The SCO's claiming instructions
• How other agencies around the state are complying with and interproting the
mandate
r Prepare all necessary department-wide ICRPs In accordance with OMB A-87. MGT
consultants have prepared thousands of ICRPs over the past 25 years. We believe
that our experience has developed a depth of understanding that Is unmatched in
the field.
r Prepare all eligible claims for the City's SB 90 programs, and review the claims for
completeness, propriety, and eligibillty of costs.
s Perform a quality assurance review of the City's SS 90 claims to ensuro that they
mesh with the associated department ICRPs and verify that no d1rect costs are
double counted.
r Discuss any potential or necessary changes wtth the appropriate City staff member.
r Provide the completed claims and ICRPs to the City for review and signature at least
three weeks prior to the claiming deadline.
> File the s{gnod claims with the SCCS prior to the deadline.
MCxT
OF EMGMIC•. IFIe.
25G-12