CONTRACT 6240 Professional Services Agreement CLOSEDAgreement No. 6240
Agreement No. [City Clerk assigns]_
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF EL SEGUNDO AND
REVENUE & COST SPECIALISTS, LLC.
This AGREEMENT is made and entered into this loth day of December, 2021, by
and between the CITY OF EL SEGUNDO, a municipal corporation and general law city
("CITY") and REVENUE & COST SPECIALISTS, a limited liability corporation
("CONSULTANT"). The parties agree as follows:
1. CONSIDERATION.
A. As partial consideration, CONSULTANT agrees to perform the work listed
in the SCOPE OF SERVICES, below;
B. As additional consideration, CONSULTANT and CITY agree to abide by
the terms and conditions contained in this Agreement;
C. As additional consideration, CITY agrees to pay CONSULTANT a sum not
to exceed Thirty-two thousand dollars ($32,000) for CONSULTANT's
services. CITY may modify this amount as set forth below. Unless
otherwise specified by written amendment to this Agreement, CITY will
pay this sum as specified in the attached Exhibit "A," which is incorporated
by reference.
2. SCOPE OF SERVICES,
A. CONSULTANT will perform services listed in the attached Exhibit "A,"
which is incorporated by reference.
B. CONSULTANT will, in a professional manner, furnish all of the labor,
technical, administrative, professional and other personnel, all supplies
and materials, equipment, printing, vehicles, transportation, office space
and facilities, and all tests, testing and analyses, calculation, and all other
means whatsoever, except as herein otherwise expressly specified to be
furnished by CITY, necessary or proper to perform and complete the work
and provide the professional services required of CONSULTANT by this
Agreement.
3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT
will use the appropriate generally accepted professional standards of practice existing at
the time of performance utilized by persons engaged in providing similar services. CITY
will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of
any deficiencies and CONSULTANT will have fifteen (15) days after such notification to
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cure any shortcomings to CITY's satisfaction. Costs associated with curing the
deficiencies will be borne by CONSULTANT.
4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement,
CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and
hourly rates for each personnel category and reimbursable costs (all as set forth in
Exhibit "A") the tasks performed, the percentage of the task completed during the billing
period, the cumulative percentage completed for each task, the total cost of that work
during the preceding billing month and a cumulative cash flow curve showing projected
and actual expenditures versus time to date.
5. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT
for current services are within the current budget and within an available, unexhausted
and unencumbered appropriation of the CITY. In the event the CITY has not
appropriated sufficient funds for payment of CONSULTANT services beyond the current
fiscal year, this Agreement will cover only those costs incurred up to the conclusion of
the current fiscal year.
6. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONSULTANT agrees that it has:
Carefully investigated and considered the scope of services to be
performed,
Carefully considered how the services should be performed; and
iii, Understands the facilities, difficulties, and restrictions attending
performance of the services under this Agreement.
B. If services involve work upon any site, CONSULTANT agrees that
CONSULTANT has or will investigate the site and is or will be fully
acquainted with the conditions there existing, before commencing the
services hereunder. Should CONSULTANT discover any latent or
unknown conditions that may materially affect the performance of the
services, CONSULTANT will immediately inform CITY of such fact and will
not proceed except at CONSULTANT's own risk until written instructions
are received from CITY.
7. TERM. The term of this Agreement will be from January 1, 2022, to June 30, 2022.
Unless otherwise determined by written amendment between the parties, this
Agreement will terminate in the following instances:
A. Completion of the work specified in Exhibit "A";
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B. Termination as stated in Section 15,
8. TIME FOR PERFORMANCE.
A. CONSULTANT will not perform any work under this Agreement until:
CONSULTANT furnishes proof of insurance as required under
Section 22 of this Agreement; and
ii. CITY gives CONSULTANT a written notice to proceed,
B. Should CONSULTANT begin work on any phase in advance of receiving
written authorization to proceed, any such professional services are at
CONSULTANT's own risk.
9. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond
CONSULTANT's control, CITY may grant a time extension for the completion of the
contracted services. If delay occurs, CONSULTANT must notify the Manager within
forty-eight (48) hours, in writing, of the cause and the extent of the delay and how such
delay interferes with the Agreement's schedule. The Manager will extend the
completion time, when appropriate, for the completion of the contracted services.
10. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the
main body of this Agreement takes precedence over the attached Exhibits, this
Agreement supersedes any conflicting provisions. Any inconsistency between the
Exhibits will be resolved in the order in which the Exhibits appear below:
A. Exhibit: A: Proposal for Services
11. CHANGES. CITY may order changes in the services within the general scope of
this Agreement, consisting of additions, deletions, or other revisions, and the contract
sum and the contract time will be adjusted accordingly. All such changes must be
authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY
resulting from changes in the services will be determined in accordance with written
agreement between the parties.
12.TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a
Taxpayer Identification Number.
13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and
maintain during the term of this Agreement, all necessary permits, licenses, and
certificates that may be required in connection with the performance of services under
this Agreement.
14. WAIVER. CITY's review or acceptance of, or payment for, work product prepared
by CONSULTANT under this Agreement will not be construed to operate as a waiver of
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any rights CITY may have under this Agreement or of any cause of action arising from
CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant,
or condition contained in this Agreement will not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant, or condition contained in
this Agreement, whether of the same or different character.
15. TERMINATION.
A. Except as otherwise provided, CITY may terminate this Agreement at any
time with or without cause.
B. CONSULTANT may terminate this Agreement at any time with CITY's
mutual consent. Notice will be in writing at least thirty (30) days before the
effective termination date.
C. Upon receiving a termination notice, CONSULTANT will immediately
cease performance under this Agreement unless otherwise provided in the
termination notice. Except as otherwise provided in the termination notice,
any additional work performed by CONSULTANT after receiving a
termination notice will be performed at CONSULTANT's own cost; CITY
will not be obligated to compensate CONSULTANT for such work.
D. Should termination occur, all finished or unfinished documents, data,
studies, surveys, drawings, maps, reports and other materials prepared by
CONSULTANT will, at CITY's option, become CITY's property, and
CONSULTANT will receive just and equitable compensation for any work
satisfactorily completed up to the effective date of notice of termination,
not to exceed the total costs under Section 1(C).
E. Should the Agreement be terminated pursuant to this Section, CITY may
procure on its own terms services similar to those terminated.
F. By executing this document, CONSULTANT waives any and all claims for
damages that might otherwise arise from CITY's termination under this
Section.
16.OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps,
models, photographs and reports prepared by CONSULTANT under this Agreement are
CITY's property. CONSULTANT may retain copies of said documents and materials as
desired but will deliver all original materials to CITY upon CITY's written notice. CITY
agrees that use of CONSULTANT's completed work product, for purposes other than
identified in this Agreement, or use of incomplete work product, is at CITY's own risk.
17. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service
under this Agreement, no copies, sketches, or graphs of materials, including graphic art
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work, prepared pursuant to this Agreement, will be released by CONSULTANT to any
other person or public CITY without CITY's prior written approval. All press releases,
including graphic display information to be published in newspapers or magazines, will
be approved and distributed solely by CITY, unless otherwise provided by written
agreement between the parties.
18.INDEMNIFICATION.
A. CONSULTANT agrees to the following:
L Indemnification for Professional Services. CONSULTANT will
save harmless and indemnify and at CITY's request reimburse
defense costs for CITY and all its officers, volunteers,
employees and representatives from and against any and all
suits, actions, or claims, of any character whatever, brought
for, or on account of, any injuries or damages sustained by
any person or property resulting or arising from any negligent
or wrongful act, error or omission by CONSULTANT or any of
CONSULTANT's officers, agents, employees, or
representatives, in the performance of this Agreement, except
for such loss or damage arising from CITY's sole negligence
or willful misconduct.
i. Indemnification for other Damages. CONSULTANT indemnifies
and holds CITY harmless from and against any claim, action,
damages, costs (including, without limitation, attorney's fees),
injuries, or liability, arising out of this Agreement, or its
performance, except for such loss or damage arising from
CITY's sole negligence or willful misconduct. Should CITY be
named in any suit, or should any claim be brought against it
by suit or otherwise, whether the same be groundless or not,
arising out of this Agreement, or its performance,
CONSULTANT will defend CITY (at CITY's request and with
counsel satisfactory to CITY) and will indemnify CITY for any
judgment rendered against it or any sums paid out in
settlement or otherwise.
B. For purposes of this section "CITY" includes CITY's officers, officials,
employees, agents, representatives, and certified volunteers.
C. It is expressly understood and agreed that the foregoing provisions will
survive termination of this Agreement.
D. The requirements as to the types and limits of insurance coverage to be
maintained by CONSULTANT as required by Section 22, and any
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approval of said insurance by CITY, are not intended to and will not in any
manner limit or qualify the liabilities and obligations otherwise assumed by
CONSULTANT pursuant to this Agreement, including, without limitation, to
the provisions concerning indemnification.
19. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services.
CONSULTANT's attempts to assign the benefits or burdens of this Agreement without
CITY's written approval are prohibited and will be null and void.
20.INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that
CONSULTANT will act as an independent contractor and will have control of all work
and the manner in which it is performed. CONSULTANT will be free to contract for
similar service to be performed for other employers while under contract with CITY.
CONSULTANT is not an agent or employee of CITY and is not entitled to participate in
any pension plan, insurance, bonus or similar benefits CITY provides for its employees.
Any provision in this Agreement that may appear to give CITY the right to direct
CONSULTANT as to the details of doing the work or to exercise a measure of control
over the work means that CONSULTANT will follow the direction of the CITY as to end
results of the work only.
21.AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with
respect to all services and matters covered under this Agreement. CITY will have free
access at all reasonable times to such records, and the right to examine and audit the
same and to make transcript therefrom, and to inspect all program data, documents,
proceedings and activities. CONSULTANT will retain such financial and program
service records for at least three (3) years after termination or final payment under this
Agreement.
22.INSURANCE,
A. Before commencing performance under this Agreement, and at all other
times this Agreement is effective, CONSULTANT will procure and
maintain the following types of insurance with coverage limits complying,
at a minimum, with the limits set forth below:
Commercial general liability:
Professional Liability
Business automobile liability
Workers compensation
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Limits
$2, 000, 000
$1,000,000
$1,000,000
Statutory requirement
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B. Commercial general liability insurance will meet or exceed the
requirements of the most recent ISO-CGL Form. The amount of
insurance set forth above will be a combined single limit per occurrence
for bodily injury, personal injury, and property damage for the policy
coverage. Liability policies will be endorsed to name CITY, its officials,
and employees as "additional insureds" under said insurance coverage
and to state that such insurance will be deemed "primary" such that any
other insurance that may be carried by CITY will be excess thereto. Such
endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or
equivalent. Such insurance will be on an "occurrence," not a "claims
made," basis and will not be cancelable or subject to reduction except
upon thirty (30) days prior written notice to CITY.
C. Professional liability coverage will be on an "occurrence basis" if such
coverage is available, or on a "claims made" basis if not available. When
coverage is provided on a "claims made basis," CONSULTANT will
continue to renew the insurance for a period of three (3) years after this
Agreement expires or is terminated. Such insurance will have the same
coverage and limits as the policy that was in effect during the term of this
Agreement and will cover CONSULTANT for all claims made by CITY
arising out of any errors or omissions of CONSULTANT, or its officers,
employees or agents during the time this Agreement was in effect.
D. Automobile coverage will be written on ISO Business Auto Coverage Form
CA 00 01 06 92, including symbol 1 (Any Auto).
E. CONSULTANT will furnish to CITY duly authenticated Certificates of
Insurance evidencing maintenance of the insurance required under this
Agreement and such other evidence of insurance or copies of policies as
may be reasonably required by CITY from time to time. Insurance must
be placed with insurers with a current A.M. Best Company Rating
equivalent to at least a Rating of "A:VII."
F. Should CONSULTANT, for any reason, fail to obtain and maintain the
insurance required by this Agreement, CITY may obtain such coverage at
CONSULTANT's expense and deduct the cost of such insurance from
payments due to CONSULTANT under this Agreement or terminate
pursuant to Section 15.
23. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written
approval to use any consultants while performing any portion of this Agreement. Such
approval must approve of the proposed consultant and the terms of compensation.
24.INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the
status on the project, which will include a schedule update and a short narrative
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description of progress during the past month for each major task, a description of the
work remaining and a description of the work to be done before the next schedule
update.
25. NOTICES. All communications to either party by the other party will be deemed
made when received by such party at its respective name and address as follows:
If to CONSULTANT:
Revenue & Cost Specialists, LLC
1519 East Chapman Avenue, Ste C
Fullerton, CA 92831
Attention: Eric S. Johnson
Phone: (714) 992-9027
Email: eric@revenuecost.com
If to CITY:
City of El Segundo
350 Main Street
El Segundo, CA
Attention: Joseph Lillio
Phone: (310) 524-2318
Email: jlillio@elsegundo.org
Any such written communications by mail will be conclusively deemed to have been
received by the addressee upon deposit thereof in the United States Mail, postage
prepaid and properly addressed as noted above. In all other instances, notices will be
deemed given at the time of actual delivery. Changes may be made in the names or
addresses of persons to whom notices are to be given by giving notice in the manner
prescribed in this paragraph.
26. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest
laws and regulations including, without limitation, CITY's conflict of interest regulations.
27.SOLICITATION. CONSULTANT maintains and warrants that it has not employed
nor retained any company or person, other than CONSULTANT's bona fide employee,
to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not
paid nor has it agreed to pay any company or person, other than CONSULTANT's bona
fide employee, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement.
Should CONSULTANT breach or violate this warranty, CITY may rescind this
Agreement without liability.
28.THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is
generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of
any other party. There will be no incidental or other beneficiaries of any of
CONSULTANT's or CITY's obligations under this Agreement.
29.INTERPRETATION. This Agreement was drafted in and will be construed in
accordance with the laws of the State of California, and exclusive venue for any action
involving this agreement will be in Los Angeles County.
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30. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state,
and local laws applicable to this Agreement.
31. ENTIRE AGREEMENT. This Agreement, and its Exhibit(s), sets forth the entire
understanding of the parties. There are no other understandings, terms or other
agreements expressed or implied, oral or written. This Agreement will bind and inure to
the benefit of the parties to this Agreement and any subsequent successors and
assigns.
32. RULES OF CONSTRUCTION. Each Party had the opportunity to independently
review this Agreement with legal counsel. Accordingly, this Agreement will be
construed simply, as a whole, and in accordance with its fair meaning; it will not be
interpreted strictly for or against either Party.
33.SEVERABILITY. If any portion of this Agreement is declared by a court of
competent jurisdiction to be invalid or unenforceable, then such portion will be deemed
modified to the extent necessary in the opinion of the court to render such portion
enforceable and, as so modified, such portion and the balance of this Agreement will
continue in full force and effect.
34.AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary
action has been taken by the Parties to authorize the undersigned to execute this
Agreement and to engage in the actions described herein. This Agreement may be
modified by written amendment.
35.ACCEPTANCE OF ELECTRONIC SIGNATURES. The Parties agree that this
Agreement, agreements ancillary to this Agreement, and related documents to be
entered into in connection with this Agreement will be considered signed when the
signature of a party is delivered by electronic (pdf) or facsimile transmission. Such
electronic or facsimile signature will be treated in all respects as having the same effect
as an original signature.
36. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience
of reference only and will not affect the interpretation of this Agreement.
37. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this
Agreement.
38. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire,
flood, explosion, acts of terrorism, war, embargo, government action, civil or military
authority, the natural elements, or other similar causes beyond the Parties' reasonable
control, then the Agreement will immediately terminate without obligation of either party
to the other.
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39. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT
represents that it has demonstrated trustworthiness and possesses the quality, fitness
and capacity to perform the Agreement in a manner satisfactory to CITY.
CONSULTANT represents that its financial resources, surety and insurance experience,
service experience, completion ability, personnel, current workload, experience in
dealing with private consultants, and experience in dealing with public agencies all
suggest that CONSULTANT is capable of performing the proposed contract and has a
demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY.
[Signatures on next page]
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IN WITNESS WHEREOF the parties hereto have executed this Agreement the
day and year first hereinabove written.
EL '
04/10M
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Joaquiij Vazquez,
Deputy,0ty Attorney
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REVENUECOST SPECIALISTS, LLC
a
Eric S. Joh n„
President
Agreement No. 6240
Exhibit A
Proposal for a
,M Cost Allocation & User Fee Study
for the City of El Segundo
3.53.9 East Chapman Avenue, Suite C
Fullerton, CA 92831
(714) 992-9020
www.revenuecost.com
Agreement No. 6240
Cost Allocation & User Fee Study for thefe"�
TABLE OF CONTENTS
Tableof Contents.. .......... .......................... ......................................... .. ............i
CoverLetter—.—..... ................... ....,,... , .......................... .......................,... .....,... ,,,.,,,...2
Executive Summary.. ..... ....... ................................................................4
Software..... ......... ........ . .......... ,......,...,.......,.......--...,....,....,. ..... ,.., ,.,.--s
Scopeof Work/Methodology........ ......... ......................, ...,.. ................ ........ ......,......,..,...6
WorkPlan.................................................................................................. ...................6
ProjectTimeline .................................................. — ...... ...... .............,.., .,,....., .,.................9
SampleReports........................................................................................... .......,..,,......so
Capabilities of Staff and Qualifications .............. ..... ..,,......... ........,...... ...............i4
ProjectBudget ............................ .................. ................... ........ ........... .........--- .... ..... --16
goTable of Contents - i
Agreement No. 6240
September 14, 2021
Mr. Joe Lillio, Finance Director
City of El Segundo
3So Main Street
El Segundo, CA 9024S
RE: Request for Proposal — Cost Allocation & User Fee Study
Revenue & Cost Specialists, LLC (RCS) appreciates the opportunity to respond with this Proposal
to perform a Cost Allocation and User Fee Study for the City of El Segundo to allow the City to
fairly identify and recover the appropriate costs for services. RCS has been providing fee and
costing services since 198o, and it exclusively works with local government agencies
Specifically, the City wants to identify the full costs of all operational services that are either
currently charged a fee or could be charged a fee. As part of the full costs of services, the City
needs a Cost Allocation Plan which would fairly distribute the overhead costs to the end -user
services provided to the public. As the result of this review, a master fee resolution will be
developed that will accurately represent the costs of providing services.
To achieve these goals RCS will work with City staff in a collaborative way that minimizes the
impact on City staff while still collecting accurate information that reflectsthe costs and services
in El Segundo. We will use our superior experience to efficiently gather information from staff
during personal meetings with the appropriate staff. As former City staff ourselves, we
understand that time is precious. We will also insure that City staff will be able to stand behind
the information and recommendations in the Report.
RCS will then present the Report to the City Council so that the Council understands not only
the results of the fees but also the implications for tax subsidy policy. This background on the
differences between fees and taxes is crucial information for the Council as they make these
financial decisions that affect the community.
The terms of this proposal will be honored until February 28, 2022.
Ei
Cover Letter- 2
Agreement No. 6240
RCS looks forward to continue being of assistance to the City of El Segundo and appreciates the
opportunity to respond with this proposal. If there are any questions, please contact Mr.
Johnson at (714) 992-9027 or eric@revenuecost.com.
Sincerely,
ERIC S. JOHNSON
President
T5
Cover Letter- 3
Agreement No. 6240
EXECUTIVE SUMMARY
The City wants to identify the full costs of all operational services that are either currently
charged a fee or could be charged a fee. As part of the full costs of services, the City needs a full -
cost Cost Allocation Plan which would fairly distribute the overhead costs to the end -user
services provided to the public. In addition, the Cost Allocation Plan will provide detail on the
amounts that the General Plan could recover from other funds that receive services from the
General Fund. This would allow for fair and defensible transfers from these funds to the General
Fund.
Based on the full cost information, RCS will review with staff a proposed fee structure that will
recoverthese costs in the most equitable and efficient way possible. This may involve flat fees,
deposits, valuation -based fees, step -increase fees, or a combination of these. But the eventual
fee recommendations included in the final report and master fee resolution will be defensible,
easy to understand, and be supported by City staff.
We will use our experience in other similar cities to efficiently construct the model that
represents how operations are conducted in El Segundo and quickly identify what those
operations cost.
We will use a series of focused meetings to review the time information that is generated. We
have found that this method is preferable and generates better data than one big meeting to
collect this data. This gives City staff time to digest and reflect on the information that is being
generated. We also identify the total time of City staff for all services that they are involved in.
We will identify i00% of the staff time on i00% of the services that they provide. This gives
City staff a fuller perspective on their time allocations instead of merely looking at time
allocations for individual services in a vacuum. These methods will insure that City staff feels
confident about the data and, therefore, confident in supporting the results in public hearings.
The other key result of identifying i00% of City services is that we are identifying not only the
cost of fee services, but also of community -supported services, such as fire services, and street
and park maintenance services. This allows us to have a real discussion with real numbers with
the City Council about tax subsidy policy. Since we are identifying the full costs of fee services,
we are also therefore identifying the current subsidy of general tax dollars for these services.
Therefore, we can show the City Council how much they are subsidizing fee services at the
expense of community -supported services. Does the City want to continue to use precious tax
dollars to support a zone change on a particular parcel that only benefitsthat particular property
owner or use those tax dollars on things that can only be supported by tax dollars, like fire and
maintenance services? They will now have that information to be able to make that conscious
choice.
Thus, the support of staff, changing the discussion to tax subsidy policy instead of fee increases,
and the experience of RCS in successfully presenting the results of similar studies to City
0
Executive SummarY - 4
Agreement No. 6240
Councils insures that the El Segundo City Council will be able to meet the objectives of the City..
&Mm�
RCS has developed a unique and sophisticated Windows -based stand-alone software package
that is both user-friendly and comprehensive at the same time. The Governmental Business
System is designed to be used in any organization and allows for the flexibility to easily make
changes to your organization and your services. It includes easy -to -use interfaces and easy -to -
understand reports, without the worry of incorrect formulas inherent in Excel -based systems.
The system is based on an easily downloaded package. It is not a spreadsheet based format, but
uniquely designed for municipal purposes in determining cost allocations and service costs.
This will allow the City to continuously update the Cost Allocation and User Fee Studies, as well
as input hypothetical services to calculate the estimated costs of providing new services.
RCS will insure that the system is properly installed and the data from this Study will be installed
at the City with no licensing limitations atthe completion of the Study. RCS will provide training
on the use of the software in addition to phone and email support.
A demonstration of the software can be downloaded at www.costaIlocation.com.
Executive Summary- 5
Agreement No. 6240
SCOPE OF WORK/METHODOLOGY
LUD:+ MR3 0
The proposed Work Plan is described below for the Cost Allocation Plan and User Fee Study.
The Work Plan for the various parts of the Study will be done concurrently as there are
overlapping steps and the results of the Cost Allocation Plan are needed for the overhead
component of the Fee Study.
As is detailed in the task list below, RCS uses only firm principals to perform the necessary
meetings with the departments. We use our experience to work with staff, which makes the
process quicker and the results more accurate.
This process will allow the City to have well documented and defensible service costs which will
be used to develop fees that will be in compliance with Propositions 4, 218, and 26.
Task is Review Central Services and Allocate Staff Time
RCS will meet with City staff to review central services for indirect departments and
allocate staff time and costs to those central services. City staff time would be
approximately 1-2 hours per central service department in this process and would need
to meet with RCS to establish the central service listing, quantify the department staff
time involved in those central services, and review the results.
Task 2: Review Allocation Factors
RCS will meet with City staff to review the factors for allocating each central service
identified. These factors will form the basis for allocating the central service costs. This
meeting will be concurrent with the time allocation meeting. City staff involvement for
data gathering is a function of the availability of the required information, but RCS will
use its experience to develop allocation factors which are easily reproducible from year
to year but still fairly allocate the central service costs.
Task 3: Review Results with Departments
RCS will calculate allocations to the functional centers and review the results with the
managers of the various central service departments. City staff time for this process will
be less than 1 hour per department to review the results of the allocations.
Scope of Work- 6
Agreement No. 6240
Cost Allocation & User Fee Study for, E0010t ^, �dWit
�
RCS will make any changes and prepare a Draft Report with allocations to end user
departments using our zo-step allocation model. RCS will review this Draft Report with
the City's management group and make any necessary adjustments.
Task 5: Prepare Final Cost Allocation Plan
RCS will make any changes and prepare a Final Report with allocations to end user
departments. It will be these results that will be used for the City general overhead
component of the Fee Study and can also be used to determine the amounts fortransfers
to the General Fund for support provided to other funds. RCS will provide five bound
copies, one unbound copy, and a PDF file of the Final Report. RCS will make a
presentation to the City Council to assist in their understanding of the cost allocation
process and its results.
Task 1:
Task 2:
Task 3:
EMS
Kick-off Meeting
RCS will conduct a meeting with City staff explaining the operational methodology of
the study and the role of City staff. We will review any possible issues that may arise as
well as answer any questions from City staff about the process. This meeting is crucial
for the process as we want to insure that everyone understands the various steps in the
process and what is expected of them.
Review the Service List with Departmental Staff
RCS will review the service list through meetings with City staff. We will also work with
Departmental staff to determine any changes to the fee calculation methods. For
instance, for Building Permits we could determine that we want to continue to use
valuation for new Building Plan Check and Inspection, or use a different method instead.
The end result, whichever method is utilized, will be a fee structure that best fits the City
of El Segundo going forward. While this list will change during the course of the Study as
it is refined, it will be the initial basis from where we start. City staff time for this review
will be less than s hour per department.
Staff Time Allocations
RCS will interview personnel providing end -user services to insure that costs from all
functional areas directly involved with a service are included in the cost of that service.
This component will form the bulk of the time spent by staff. There will be two to four
Scope of Work- 7
Agreement No. 6240
meetings with supervisory level staff in each functional area to create and verify the
amount of time spent by staff on the services identified in the task above. We do not ask
City staff to do our job by filling out forms detailing where they spend their time. This
iterative process, and thefactthatwe allocate i00%of all departmental staff, allows
everyone to insure that the information being generated is valid and reliable. A
sample Time Detail Report is included in the following pages.
Task 4: Develop Fully Allocated Hourly Rates
RCS will develop a fully allocated hourly rate for each departmental employee, including
salaries and benefits, miscellaneous operating service and supply costs, overhead costs
from the above Cost Allocation Plan, debt service, and other direct costs as identified,
which can be used for all charging and costing processes. A Sample Hourly Rate Report
is included in the following pages.
Task 5: Prepare Draft Report
RCS will prepare a Draft Reportthat identifies the total costs for each service, the current
fees, and makes fee recommendations for each service presented. RCS will review this
draft report with the departments, so that each department will have final input on the
fees presented in the final report. City staff time would be approximately 1-2 hours per
department for those departments that have fee services. A sample of the Service
Summary and Cost Detail Reports that are provided for each service is included in the
following pages.
Task 6: Prepare Final Report
Based on staff input, RCS will prepare a Final Report, which will have recommendations
for new fees and subsidy percentages and projections of new revenues from those fees.
The Report will also include explanatory text and various summary tables to easily
explain the results and the context. All recommended fees will be in compliance with
Propositions 4, 218, 26, and any other applicable laws. RCS will provide a PDF file of the
Final Report, as well as an electronic copy of a Master Fee Resolution with the City's
proposed fees included in it.
Task 7: Present Report to the City Council
RCS will assist the City Council in the review and adoption of revised service fees and
subsidy percentages and assist the staff in the implementation of the revised service fees
at up to two meetings.
Scope of Work- 8
Agreement No. 6240
Work would begin immediately on notification by the City. It is very important that staff has the
time to review and absorb the information. This will insure that the resulting Report is accurate
and that staff supportsthe results. Therefore, RCS proposes the following schedule of tasks over
the course of the project to meet the City's needs. This schedule, of course, will require the
cooperation of staff.
Task January February March April
Review Central Services/Time
Review Allocation Factors
Review Results with Departments
Prepare Final Cost Allocation Plan
Kick -Off Meeting
Review Service List
Review Staff Time Allocations
Develop Fully Allocated Hourly Rates
Prepare Draft Report
Prepare Final Report
Present Report to the City Council
Scope of Work-9
Agreement No. 6240
Demonstration Copy
REVENUE AND COST SUMMARY WORKSHEET
......................................................�
SERVICE REFERENCE NO.
VARIANCE REVIEW
W S-021
.............
PRIMARY DEPARTMENT UNIT OF SERVICE SERVICE RECIPIENT
PLANNING APPLICATION Developer/ResidentBusiness
_....... _........ ........................ _.....................................................
DESCRIPTION OF SERVICE
Review proposed variance from terms of zoning code and prepare staff report for the Planning Commission
............ . �.._._......
CURRENT FEE STRUCTURE
Planning Commission Variance - $1,630 per application
Area Variance Committee - $1,280 per application
RV Permit - $250 per application, plus $250 if an area variance committee hearing is required-
Admin. Adjustment - $965 per application
REVENUE AND_Ct $T COMPARISON
N
UNIT REVENUE: $1,067.50 TOTAL REVENUE: $6,405
UNIT COST: $1,269.50 TOTAL COST: $7,617
UNIT PROFIT (SUBSIDY): _.. ..... $(202.00) TOTAL PROFIT (SUBSIDY): $(1,212)
TOTAL UNITS: 6 PCT. COST RECOVERY: 84.09%
SUGGESTED FEE�FO_........_....�...........�..............�.._... � w.,.,,,,,,,,,,,,,,,,,...,,,,,......._........................................
R COST RECOVERY OF: 100%
Planning Commission Variance - $2,645 per application plus 30% of the application fee for each additional item after
the first item subject to Variance
Planning Commission Variance (SFR Owner -occupied) - $1,325
RV Permit - $465 per application, plus $465 if an Administrative Adjustment is required-
Admin. Adjustment - $620 per application plus 30% of the application fee for each additional item after the first item
subject to Administrative Adjustment
w. .. ....... _ ........_........... ....
May 13, 2013
0 Scope of Work- io
Agreement No. 6240
f
Demonstration Copy
COST DETAIL WORKSHEET
SERVICE
REFERENCE NO.,
VARIANCE REVIEW
S-021
NOTEm..,e.................________________...__
...........,
......... . .....................................
�............
��.........� -
TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT
POSITION
TYPE
UNIT TIME
UNIT COST ANN. UNITS TOTAL g2§
Engineering
CIVIL ENGINEER ASSOC
Plan Comm
1 00
$148 35
2
$297
Engineering
CIVIL ENG PRINCIPAL
Plan Comm
1 00
$164 45
2
$329
Com Dev. Admin
COMM DEV DIRECTOR
Plan Comm
150
$227 97
2
$456
Planning
PLANNING MANAGER
Plan Comm
2.50
$464 70
2
$929
Planning
COMBO PLANNER
Plan Comm
1150
$1,36676
2
$2,734
Planning
ADMIN ASSISTANT
Plan Comm
4.00
$274 84
2
$550
TYPE SUBTOTAL
21.50
$2,647.09
$5,294
Com Dev. Admin
GOMM DEV. DIRECTOR
RV Permit
050
$75 99
1
$76
Planning
PLANNING MANAGER
RV Permit
0.50
$9294
1
$93
Planning
COMBO PLANNER
RV Permit
233
$276.92
1
$277
Planning
ADMIN ASSISTANT
RV Permit
0.25
$17.18
1
$17
TYPE SUBTOTAL
3.58
$463,03
$463
Engineering
CIVIL ENGINEER ASSOC
Admin Adjustment
0 17
$25.22
3
$76
Com Dev Admin
COMM DEV DIRECTOR
Admin Adjustment
0 25
$36..00
3
$114
Planning
PLANNING MANAGER
AdminAdjustmenL
100
$185.88
3
$558
Planning
COMBO PLANNER
Admin Adjustment
2 83
$336 35
3
$1.009
Planning
ADMIN ASSISTANT
Admin Adjustment
050
$34 36
3
$103
TYPE SUBTOTAL
4.75
$619.81
$1,859
TOTALS
29.83
$1,269,50
$7,617
......................
-..................
.....�ay13, 2013.....................
.
Scope
of Work-
ii
Agreement No. 6240
x
..
Demonstration Copy
Fully Allocated Hourly Rate
Position Detail
POSITION TITLE:
COMBO PLANNER
POSITION CODE:
COMBO
SUBORG UNIT:
Planning
SUBORG UNIT CODE:
285-60000-61050
NO. OF FTE'S:
6.000
POSITION STATUS:
FT
FRINGE GROUP:
2
Total Avail-Wk-Hrs % of Salary Hourly Rate
DIRECT COSTS:
Avail. Work Hours/Salary
Fringe Benefits
Maintenance & Operation Costs
Building Occupancy Costs
Debt Service Costs
INDIRECT COSTS:
Overhead Costs
Fixed Asset Replacement Costs
TOTAL - All Costs
ES9
9,918 $48.16
35.18% $16,94
8.33%
$4.01
0 00%
$0.00
0.00%
$0.00
10328% $49.74
0.00% $0 00
$118 85
May 13, 2013
Scope of Work- iz
Agreement No. 6240
Demonstration Copy
Time Detail by Position
Position: A90 ACCOUNTING MANAGER # of Employees: 1.000
Memo:
SubOrg: 001-21000-21000 Finance Administration
TOTAL
UNIT TIME UNITS TIME PERCENT
CAP-050
BUDGET PREPICOORDINATION
1%
1653
1
1653
100%
CAP-051
GENERAL ACCOUNTING
Remainder Of Time
66284
1
66284
4010%
CAP-054
PURCHASING SERVICES
3%
4959
1
4959
300%
CAP-055
ACCOUNTS PAYABLES
15%
24795
1
24795
15 00%
CAP-056
PAYROLL SERVICES
4 %
6612
1
66 12
4 00%
CAP-059
CDBG SUPPORT
3%
4959
1
4959
300%
CAP-060
REDEVELOPMENT SUPPORT
25%
41325
1
41325
2500%
CAP-061
FINANCE DEPT SUPPORT
5%
8265
1
6265
5 00%
CAP-062
GRANT ADMINISTRATION
3%
4959
1
4959
300%
S-088
ANIMAL CONTROL
114 Hr/Month
000
7,000
298
018%
S-124
HYDRANT METER RENTAL SERVICE
114 Hr/Mo - Rental
007
43
298
018%
S-138
RETURNED CHECK PROCESSING
112Hr/Month
002
370
595
036%
TAX-06
POLICE FALSE ALARM RESPONSE
15 Min/Mo - Billing
001
520
298
018%
1.65300 100 00%
May 13, 2013
Scope of Work- 3.3
Agreement No. 6240
CAPABILITIES OF STAFF & QUALIFICATIONS
The principals of RCS have a long and respected history of performing our studies in a
professional and expedient manner. We do not send out junior staff to perform these vital
services to our clients.
Mr. Johnson has been providing costing services for almost 32 years. Mr. Johnson will be
conducting the interviews with staff as well as the presentations to the City Council. There is no
other company that has this level of experience that will be provided directly to you.
We have provided these services to a wide array of public agencies, from the smallest special
district to larger and more complex cities and counties. By using only principals with
unparalleled experience in the operations of municipal agencies, we are able to set up and
conduct meetings that will be productive. This efficient use of resources means that we are able
to provide these services using less hours than less experienced consultants. This allows us to
complete projects with more accurate information in a more timely fashion.
;0 Experience & Qualifications- 14
Agreement No. 6240
ERIC S. JOHNSON
EDUCATION
Bachelor of Arts - University of Redlands, Redlands, California
PROFESSIONAL EXPERIENCE
Revenue & Cost Specialists/Management Services Institute - Partner
(January 1990 - Present) Provide general financial management assistance to municipalities, counties, and special districts,
Unit Distribution - Customer Service Representative
(July 1989 - January 1990) Administered a distribution account for client and acted as a liaison between client and their
customers.
City of Redlands Redevelopment Agency - Redevelopment Intern
(November 1987 - May 1989) Researched issues related to Redevelopment for the Director. Audited the Agency budget.
Researched and reported on the Agency's 20% "set -aside" responsibilities for Low & Moderate Income Housing.
COST OF SERVICE FEE STUDIES
City of Arcadia
City of Atascadero
City of Azusa
City of Banning
City of Barstow
City of Beverly Hills
City of Carlsbad
City of Carmel -by -the -Sea
Carpinteria-S u mmerl and Fire District
City of Corona
Contra Costa County
City of Desert Hot Springs
City of Diamond Bar
City of Dublin, Ohio
City of El Segundo
City of Elk Grove
City of Eureka
City of Folsom
City of Glendale
City of Glendora
City of Hermosa Beach
City of Highland
City of Huntington Beach
Imperial County
City of La Canada-Flintridge
City of Lakewood
City of La Mirada
City of Lancaster
City of La Puente
City of Lincoln
City of Lindsay
City of Loma Linda
City of Long Beach Marine Bureau
City of Los Altos
Town of Mammoth Lakes
City of Manhattan Beach
City of Marina
City of Menifee
City of Milpitas
City of Monterey
City of Morgan Hill
City of Morro Bay
City of Needles
City of Oakdale
15
CLIENTS SERVED
COST OF SERVICE FEE STUDIES,
Orange County Fire Authority
City of Oroville
City of Oxnard
City of Palm Springs
City of Peoria, Arizona
City of Pico Rivera
City of Pismo Beach
City of Redlands
City of Rialto
City of San Clemente
City of San Gabriel
City of San Marino
City of Santa Clarita
City of Santa Paula
City of Seaside
City of Simi Valley
City of Solana Beach
City of South Lake Tahoe
City of South Pasadena
City of Stockton
City of Thousand Oaks
City of Tracy
Town of Truckee
Ventura County Fire District
City of West Covina
City of West Jordan, Utah
City of Westminster
City of Yuba City
COST ALLOCATION PLANS,
Town of Apple Valley
City of Arcadia
City of Atascadero
City of Azusa
City of Barstow
City of Beverly Hills
City of Carlsbad
Coachella Valley Assoc of Gov't
County of Cobb, GA
City of Concord
City of Corona
City of Desert Hot Springs
City of Diamond Bar
COST ALLOCATION PLANS
City of El Segundo
City of Elk Grove
City of Folsom
City of Glendora
City of Hermosa Beach
City of La Canada-Flintridge
City of Lakewood
City of La Mirada
City of Lancaster
City of La Puente
City of Lathrop
City of Lincoln
City of Los Altos
City of Lynwood
City of Manhattan Beach
City of Menifee
City of Marina
City of Needles
City of Oakdale
City of Oroville
City of Oxnard
City of Palmdale
City of Pasadena
City of Peoria, Arizona
City of Pico Rivera
City of Pismo Beach
Placer County Water Agency
Riverside County Transport. Comm.
San Bernardino Assoc. Gov't
County of San Bernardino Spec Dist.
City of San Gabriel
City of San Marino
City of Santa Clarita
City of Santa Monica
City of Santa Paula
City of Seaside
City of Solana Beach
City of South Pasadena
City of Suisun City
City of Thousand Oaks
City of Tracy
County of Tulare
City of Westminster
Experience & Qualifications- 15
Agreement No. 6240
PROJECT BUDGET
Revenue & Cost Specialists proposes the following project budget below.
Task Milestones/Deliverables Total Cost
Total Cost Allocation Plan
Review Central Services/Time
List of Central Services
$750
Develop Allocation Factors
Index of Allocation Factors
$1,250
Review Results with Departments
Review of Initial Results
$2,750
Prepare Draft Cost Allocation Plan
Review of Draft Allocations
$2,000
Prepare Final Cost Allocation Plan
Final Report
$1,250
$8,000
Total Cost Allocation Plan
User Fee Study
Kick -Off Meeting
Informational Meeting
$1,500
Develop Service List
Preliminary Service List
$1,500
Develop Staff Time Allocations
Time Detail Reports
$13,000
Develop Fully Allocated Hourly Rates
Fully Allocated Hourly Rate Reports
$2,000
Prepare Draft Report
Draft Fee Study Report
$4,500
Prepare Final Report
Final Report
$3,000
Present Report to the City Council
Council Presentation
$2,500
User Fee Study
$24,000
$32,000
Total Project Fee
The current RCS billing rate is $i95 per hour.
The above fees cover all costs except forthe following additional costs which the City may incur:
E insurance coverage beyond our basic general liability and workers compensation
requiring an additional premium',
N City Council meeting attendance beyond the two identified meetings in this proposal.
1 RCS standard coverage includes workers compensation pursuant to state law, comprehensive liability insurance with a combined single limit
coverage of $2,000,000 and professional liability insurance with a combined coverage of $2,000,000.
Project Budget- 16
Agreement No. 6240
RCS will submit four equal invoices plus any miscellaneous costs from the previous paragraph.
The first invoice will be submitted ten days after notice to proceed. Each invoice will be due
within 3o days of submission.
Project Budget- 3.7