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Home My WebLink AboutHF & H CONSULTANTS LLC 2 -2013MAYOR Mi I X PWWQ MAYOR PRO TEM sal "ana)ero COUNCIL MEMOERS Anel(aa Amezcua David Senavides Michele Martinez Roman A. Rayna Vincent Sarmiento INSURANCE M ON FILE WORK MAY MET PROCEED CLERK OF COUNCIL DAVE: 6 -6 -�y 0- CAD CI) ;, O>Oy) rd C r~vak OFFICE OF THE CITY ATTORNEY 20 CIVIC CENTER PLAZA M -29 * P -0 BOX:1959 SANTA ANA, CALIFORNIA 92702 (714) 647.5241 a Fax M4) 647 -6515 September 3, 2013 John Farnkopf, I.E. Senior dice President H &H Consultants LLC 201 North. Civic Drive, Suite 230 Walnut Greek, CA 94596 N- 2013 -171 INTERIM CRY MANAGER Kevin O'Rourke CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar FRRCMITMTE-M)�, Z01 Re: Letter of A eer ent for Consultant Services: Review of Water Transfer Dear Mr. Farnkopf: This letter shall be our .Agreement regarding the consultant services described below ( "Services ") to be provided by H` &l : Consultants LLC ( "Consultant ") as an independent contractor to the Santa Aria City Attorney's Office ( "CAO "). This Agreement is for the purpose of engaging Consultant to provide financial consultant services to the City Attorney related to the City of Santa. Ana's transfer of water fiulds to the City's General Fund (the "Project "). The Services to be provided are more particularly described in the Scope of Services attached hereto as Exhibit "A" and incorporated herein, by reference. Consultant shall perform all Services under this Letter of Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the state of California., and consistent with all applicable laws. Consultant represents that it, its employees and subcontractors have all licenses, penuits, qualifications and approvals of whatever mature that are legally required to perform the Services, including a City of Santa Ana Business License, and that such licenses and approvals shall be maintained throughout the term of this .Agreement. Compensation for the above services shall not exceed Fifteen Thousand Dollars (s1 ,,000.00). All invoices shall be submitted directly to the Santa Ana City Attorney's office at the address above. In accordance with the letter dated August 20, 201.3, the City may expect the work to be completed before October 15, 200: John Farnkopf, P.E. September 3, 2013 Page 2 Consultant shall provide proof of commercial general liability and automobile insurance to the CAO in amounts and with policies, endorsements and condition required by CAO for the Services. If Consultant is an employer or otherwise hires one or more employees during the term of this Project, Consultant shall also provide proof of workers compensation coverage for such employees which meets all requirements of State law. Services on the Project shall begin immediately and be completed by the deadline provided by our office, unless extended by CAO in writing. CAO may terminate this Letter of Agreement at any time with or without cause. If CAO finds it necessary to terminate this Letter of Agreement without cause before Project completion., Consultant shall be entitled to be paid in full for those Services adequately completed prior to the notification of termination. Consultant may terminate this Letter of Agreement for cause only. Consultant shall indemnify and hold CAO, its officers, employees, and agents, and the City of Santa Ana , its officials, officers, employees, agents and volunteers, free and harmless from any and all claims, demands, causes of action, expenses, liabilities, losses, damages and hijuries to property or persons, including wrongful death, to the extent caused by or arising out of any negligent acts or omissions or willful misconduct of Consultant, its officials, officers, employees, agents, consultants and contractors arising out of or in connection with the performance of the Services under this Agreement, including, without limitation, the payment of reasonable attorneys fees and other related costs and expenses. Consultant's services are for purposes of assisting the City Attorney, and are thus subject to a variety of privileges, including the attorney work product privilege. All documents, records, correspondence including emails, audio or video recordings, photographs, written notes, reports, information and data regardless of physical fonn or characteristics that is provided to or prepared by or assembled by Consultant shall be deemed confidential and shall be maintained as such at all times during and after the services hereunder described are provided to CAO, Any audio or video recordings, photographs, written notes, reports, correspondence including enmils, . or any other document or record regardless of physical form or characteristics that is maintained by Consultant in performance of the Services shall not be released to any third party without CAO's written consent. If you agree with the terms of this Letter of Agreement, please indicate by signing and dating where indicated below. An original, executed copy of this Letter of Agreement is enclosed for your records. [Signatures on following page] John Famkopf, P.E. September 3, 2013 Page 3 CITY ATTORNEY HF&H CONSULTANTS LLC Approved by: Reviewed and Accepted by Consultant: Sonia R.. Carvalho J0 Farnko rf T7- re Svior Vice resident Date: � 0 l-" fV 2 Z) (3 David Cavazo City Manager City of Santa Ana ATM". MAMA D, HUIZAR CLERK OF THE COUNCIL John Farnkopf; P.E. September 3, 2013 Page 4 Exin r "Apt SCOPE OF S ERVICES Consultant shall provide to CAA his services as a financial advisor regarding the City of Santa Ana's water transfer to the General Fund. HF&H CONSULTANTS, LLC Managing Tomorrow's Resources Today 201 North Civ €e Drive, Suite 230 Robert D. Hilton, CMC Walnut Creek, California 94396 John W. Famkopf, PE Tel: (925) 977 -6950 Laith ti. azet, CMC Fax: (925) 977 - 6955 Richard J. Simonsm -, CMC ltflr -� anstrttrrnts.cezrrr Marva M. Sheehan, CPA August 20, 2013 Ms. Sonia Carvalho, City Attorney Mr. Jos€ Sandoval, Chief Assistant City Attorney Office of the City Attorney City of Santa Ana 20 Civic Center Plaza M -29 Santa .Ana, CA 92702 Seat via ein ail Subject: Proposal, Update Wafter Enterprise Transfer Study Dear Ms. Carvalho and Mr. Sandoval: On behalf of HF &H Consultants, LLC, I am pleased to submit this proposal to update our analysis of the transfers from the Water Enterprise for related services. This proposal describes the project background, our proposed scope of services, the schedule, and the budget. 1. Background The City was advised by its auditors to review the basis for the Water Enterprise transfer to provide a cost justification. The auditors recommended that the City's practice, which was not thoroughly documented, should be updated to address recent legislation, such as Preposition 218, with its substantive provisions, and court decisions, such as the 2004 Roseville decision., which. addresses municipal franchise fees. Toward that end, the City retained HF &H to prepare a study of the transfer from the Water Enterprise to the General Fund for related services provided by other departments. Such services include public safety, the use of facilities funded by the General Fund that are used by the Water Enterprise, and the maintenance of rights -of- way in which water supply infrastructure is located. A draft study was completed in April. 18, 2012, Since completion of the study, the City has updated its two -year budget, which includes changes that warrant updating the 2012 study. One significant change concerns fire suppression services, which have been transferred to the County of Orange under a contractual services agreement. In order to reflect these changes, the City wants to update the 2012 study at this time. 11. Scope of Services We propose the following tasks to evaluate the Water Enterprise, transfer. Task 1. Update Model. We will update the analysis using the 201:2 model that derived the transfers for public safety, general facilities, and right -of -way maintenance. We will submit a Ms. Carvalho Mr. Sandoval August 20, 2013 Page 2 data request for the data used in the model to allocate a proportionate share of these costs to the Water Enterprise. In preparing the data request, we will review the model with City Finance staff to identify the new budget data that needs to be factored. We will also interview Public Works staff to confirm assumptions and data related to the right -of -way allocation. In addition, we will modify the model to integrate refinements that we have developed since 2012 in conducting similar studies for other cities. Chief among these refinements is an adjustment to assessed values for private property that makes them more comparable to the valuation of the City's municipal property; this refinement improves the public safety allocation, Task 2. Prepare Report. We will document the updated analysis by revising the 2012 report. We will prepare the report in draft form for review by City staff. (The 2012 draft report was also reviewed by Michael Colantuono.) A final draft will be produced that addresses City staff's comments. For purposes of preparing this proposal, we have assumed that we will attend one meeting to present the report. Alternatively, this meeting can be scheduled as a kickoff meeting at the beginning of the project. Additional meetings can be attended if needed. 111. Schedule and Budget Although the City has not indicated that there is a critical deadline for completion, this study should be conducted in a 60 -day period. This will allow time for us to develop the data request and for City staff to provide the data. Our experience with the City showed that City staff responds to our data requests promptly. We then need time to update and review the .model with the City and then prepare and review the draft and final. reports. Our prior report was prepared at a cost of $15,000. We propose a comparable budget of $15,000. The City would be bilked on a time -and- expenses basis for services rendered. if additional services are required for subsequent analysis, we can provide a budget estimate for the specific work based on our hourly rates. I hope this proposal addresses your needs. Please do not hesitate to contact me if you have any questions. I appreciate the opportunity to submit this proposal. Very truly yours, HF &H CONSULTANTS, LLC jpfn vv. rarnqp� nior Vice Pre ident