CONTRACT 4115A CLOSED FIRST AMENDMENT TO
AGREEMENT NO. 4115 BETWEEN
THE CITY OF EL SEGUNDO AND
MGT OF AMERICA,INC.
THIS FIRST AMENDMENT("Amendment")is made and entered into this 15th day of October
2013,by and between the CITY OF EL SEGUNDO, a general law city and municipal corporation
existing under the laws of California("CITY"), and MGT OF AMERICA, INC,a Florida
corporation("CONSULTANT").
1. Pursuant to Section 12 of Agreement No. 4115 ("Agreement"), Section 1 C is amended to
read as follows:
"1. CONSIDERATION.
C. As additional consideration, CITY agrees to pay CONSULTANT a sum not
to exceed twelve thousand six hundred dollars($12,600.0)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. Pursuant to Section 12 of Agreement No. 4115 ("Agreement"),Section 2 A is amended to
read as follows:
"2. SCOPE OF SERVICES.
A. CONSULTANT will perform services listed in the attached Exhibit"A",
which is incorporated by reference."
3. Pursuant to Section 12 of Agreement No. 4115 ("Agreement"), Section 8 is amended to
read as follows:
"8. TERM. The term of this Agreement will be from October 1, 2013 to September 30,
2016."
4. This Amendment may be executed in any number or counterparts,each of which will be an
original,but all of which together constitutes one instrument executed on the same date.
5. Except as modified by this Amendment, all other terms and conditions of Agreement No.
4115 remain the same.
[SIGNATURES ON NEXT PAGE]
4, 1 15A
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year
first hereinabove written.
CIT"Y EL S!E�q��)N X) MGT OF AMERICA,INC.
G11reg ei!ier, "I" J: 8r I i ley B,i I 1 11 rge,5
Cit ager Vr 11artner""
ATTEST:
Taxpayer ID No. 59-1576733
1 r -y 'Wei�er,
C�ty Clerk"",
APPROVED iYy, -F(),j;1)RM, ':
MARK D. H 1,7,N S City Attorney
By:
Karl H. Beqer,,Assistant City Attorney
AMENDMENT "A" " 15 A
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October 8, 2013
Mr. Steve Jones
Business Services Manager
City of El Segundo
350 Main Street
El Segundo, CA 90245
Thank you for the opportunity to continue the City's partnership with MGT of America (MGT). We
are pleased to submit this proposal to the City of El Segundo (City) to provide State Mandate Cost
Claims (SB 90) Consulting Services for the 2013-14 fiscal year. We propose to prepare and file all
annual, and any new or first-time claims for State Controller claiming instructions that are issued
during the 2013-14 fiscal year. Our services and proposed methodology, staffing plan, firm
qualifications, proposed fees, and method of payment are all contained in our proposal.
No other company can match our experience providing comprehensive state mandated cost
reimbursement services. Below are key reasons why MGT is the best firm to meet the City's needs.
4w„ PROPOSED OINSUILTAIN'1""TO TIF E C11IiY- We propose to assign Frank Murphy as the MGT project
manager and lead consultant. Mr. Murphy has led and managed numerous SB 90 and
Cost Accounting consulting engagements over his 10 year career. He has worked with
over 100 agencies including cities, counties and special districts on cost accounting and
state mandated cost claiming projects.
FiUILL SLIME Sri.. SIB '90 Sii:iw ii:,s °w"AR.011RIED FOR THE CiiTY - MGT will provide its full suite of SB 90
Service to the City for the same fee arrangement used in the past several years - fixed
fee of$4,200 for annual and new claims filed in the fiscal year. Besides annual and new
claim preparation, this proposal includes full audit assistance, technical and program
training, and information reporting on state activities.
., COii..LAisoirRATii E oppiiFop,,, H - We will institute a very collaborative process to work closely
with you and Finance's Department staff, as well as other affected department staff to
guarantee the greatest level of success for this engagement. On-going
communications and close coordination is the trademark of the MGT approach.
Lir'Aii:EIRS iiiiN Il,,,c)CA,n.. Govi'i iiNMiEiN'T SIB 90 SiERVIICiH - No other firm comes close to meeting our
staff experience, knowledge, and expertise. MGT is the only firm that has two
consultants with over 20 years of experience in the SB 90 arena, and eight other
Sacramento based consultants,with all but one having at least ten years of experience.
MGT proposes to complete all aspects of this proposal related to any new claims released during
2013-2014, and all annual claims that are due on February 18, 2014, for $4,200 for annual claims
CIF I'
0 A R�1:4 U 11 C
41 1 5-A
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Mr. Steve Jones
October 8, 2013
Page 2
and new claims. This fee is inclusive of all other charges such as travel and administrative expenses.
To simplify the contract renewal process for the City, we are also proposing two additional
automatic renewal years using the same fees and contract terms. An additional benefit of this
approach is this will provide a hedge against potential fee increases for the next three years, and
will also make budgeting for this service easy and more predictable. Of course, the City may
choose to cancel this contract provision at any time. As you have become accustomed to with
MGT, our contract process is simple, and quick. The City of El Segundo's preferences drive the
process: you may choose to use your own format for the agreement, or request a contract from
MGT,whichever the City prefers.
2012-2013 Annual Claims due in 50% Payable on December 15,
fiscal year 2013-2014 $4,200 fixed fee 2013, and 50%on March 15th,
2014
2013-2014 Annual Claims due in 50% Payable on December 15,
fiscal year 2014-2015 $4,200 fixed fee 2014, and 50%on March 15th,
2015
2014-2015 Annual Claims due in 50% Payable on December 15,
fiscal year 2015-2016 $4,200 fixed fee 2015, and 50%on March 15th,
2016
We appreciate the trust you have put in our firm, and we hope to have the opportunity to continue
providing El Segundo with the best service possible by offering more tools and information,
experienced and knowledgeable staff, and a guaranteed product. Please don't hesitate to call
Guy Burdick at (916) 443-9236 x 4522 if you have any questions regarding this or any other SB 90
matter. You may also contact me directly at (916) 595-2646. We look forward to speaking with you
in the near future.
J. Bradley., ,�'� ,....,
ss�.
Senior Partner
MGT of America, Inc.
0 I I 1 I I 1 6 PI I I,I A N'N c o I N C
4115
n ,re S'TA'TE MANDATE COST CLAIMS SCOPIE OF SERVICES
Fiscal Years 2013-2014,2014-2015 and 2015-2016
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Any city, county or special district that wishes to supplement existing revenue sources can file
state mandate cost claims (SB 90 claims)with the California State Controller's Office. Like many
public agencies in California, your agency may have difficulties generating sufficient revenue in
recent years to match growing demands for service and increased costs.
If your agency would like to partner with a consulting firm that specializes in SB 90 consulting,
MGT of America (MGT) can do the following:
Identify all possible SB 90 claiming opportunities
Prepare and file all eligible annual FY 2012-2013 SB 90 claims with the SCO
Prepare and file all eligible first time or new SB 90 claims that have claiming instructions
issued during the 2013-2014 fiscal year
Assist with payment tracking
Assist with knowledge transfer and training related to the SB 90 process at the State level
and also related to other local agencies in California
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There are many steps that go into the SB 90 work plan for an agency of this size and complexity,.
However, MGT has identified the following order of activities as the most important
landmark events that must occur for a successful SB 90 claiming engagement during FY 2013-
2014, 2014-2015 and 2015-2016
Quick and painless contract negotiations and approval
Initial kick-off training with all applicable agency staff
Additional on-site meetings as needed
Identification of department fiscal and program contacts within the agency
NEW CLAIMS: FIRST AND SECOND QUARTER OF FY 2013-2014, 2014-2015 an -2016
Establish a schedule and approach needed to complete all new or first-time claims due within
the first quarter and second quarters of FY 2013-2014, 2014-2015 and 2015-2016. This
includes on-site interviews with all applicable department personnel.
Facilitate department staff describing how the agency complies with the specific mandated
programs and assist your agency 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 interpreting the mandate.
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11
MGT STATE MANDATE COSH`CLAIMS SCOPE OF SERVICES
11-iscai Yams 2013-2014,2014-2015 and 2015-2016
Prepare all necessary department-wide ICRPs in accordance with Office of Management and
Budget(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.
Receive claims from the single department SB 90 programs and review the claims for
completeness, propriety, and eligibility of costs. Multi-department claims will be handled in a
similar fashion, but MGT will add an additional level of scrutiny with these claims to ensure that
no direct costs are double counted.
Perform a quality assurance review of the SB 90 claims to ensure that the costs are
supported by appropriate source documentation.
Prepare claims and provide the completed claims and ICRPs for review and signature at least
three weeks prior to the claiming deadline.
File the signed claims with the SCO prior to the deadline.
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Establish a schedule and approach needed to complete all annual claims due to the state
by February 15th of each applicable year. This includes on-site interviews with all applicable
department personnel.
Facilitate department staff describing how the agency complies with the specific mandated
programs and assist in determining 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 interpreting the
mandate.
Prepare all necessary department-wide ICRPs in accordance with OMB A-87 guidelines. 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.
Receive claims for single department SB 90 programs and review the claims for completeness,
propriety, and eligibility of costs. Multi-department claims would be handled in a similar fashion,
but MGT would add an additional level of scrutiny with these claims to ensure that no direct
costs are double counted.
Perform a quality assurance review of the SB 90 claims to ensure that they mesh with the
associated department ICRPs.
Discuss any potential or necessary changes with the appropriate staff member.
Provide the completed claims and ICRPs to the agency's coordinator for review and signature
at least three weeks prior to the claiming deadline.
File the signed claims with the SCO prior to the deadline.
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MG STATE MANDATE COSH'CLAIMS SCO112E OF SERVICIES
INscalI Years 2013-2014,2014-2015 and 2015-216
NEW CLAIMS;: HI D AND FOURTH QUARTER---FY 2013-2014, 2014-2015 and 2015-2018
<. Identify new claims that are expected to become mandated programs during 2013-2014,
2014-2015 and 2015-2016. Identify departments likely to be affected by these claims. As part
of this step, MGT will provide early claim summaries and data collection requirements to
provide a head start on documentation strategies.
3 Work with the appropriate department staff, 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 second two quarters of FY 2013-2014, 2014-2015 and 2015-2016. Establish
schedule and approach needed to complete all annual claims due to the state by February 15th
of each applicable year. This includes on-site interviews with all applicable department
personnel.
Facilitate department staff describing how the agency complies with the specific mandated
programs and assist 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 interpreting the mandate.
;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.
Receive claims for single department SB 90 programs, and review the claims for
completeness, propriety, and eligibility of costs. Multi-department claims will be handled in a
similar fashion, but MGT will add an additional level of scrutiny with these claims to ensure that
no direct costs are double counted.
Perform a quality assurance review of the SB 90 claims to ensure that they mesh with the
associated department ICRPs.
Discuss any potential or necessary changes with the appropriate staff member(s).
Provide the completed claims and ICRPs to the agency's coordinator for review and signature
at least three weeks prior to the claiming deadline.
File the signed claims with the SCO prior to the deadline.
MGT views the SB 90 process as a partnership between local government and our firm. We
understand and recognize the agency's preference to have minimal involvement(when
appropriate) in this process to conserve internal resources. We will always approach this SB 90
engagement from that perspective. We will keep you apprised of everything we are doing, but will
manage all aspects of project coordination. We will consistently:
Provide the list of all eligible claims, as well as individual program Claim Summary sheets
and Data Collection forms. All of these concise summaries and forms are available in a
variety of electronic formats(Microsoft Word, Excel, and Adobe PDF)to make use and
disbursement of claiming information as easy as possible.
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G STATE MANDATE DATE COST CLAWS SC011P)IE OF SIERME
II®iscal 1°eam 20'13...2014,2014-2016 aind 2@x'15...2016
• Work in concert with the SB 90 Coordinator to coordinate the overall claiming process.
Once again, minimal reliance will be placed on the agency's SB 90 Coordinator in this
process.
• Coax departments to ensure that all eligible claims are filed on time to avoid the 10
percent penalty. It is critical to work with the departments after the on-site interviews to
ensure that all questions are answered and deadlines met.
• Ensure that all eligible claims are filed on time, and upon request, provide written
documentation explaining why the agency will not file certain claims.
DATA COLLECTION
The three components of data collection related to this engagement include: direct cost program
data, indirect cost data, and supporting documentation.
Direct Cost Program Data Collection
Conduct individual meetings with departments to discuss all reimbursable mandated
activities. Develop a schedule and plan for collecting the necessary data to ensure claims are
completed well before the claiming deadlines.
Departmental indirect Cost Data Collection
Gather salary and benefit data from the accounting staff or the individual departments for all
required fiscal years.
Collect certain pages from the agency's cost allocation plan.
Gather information required to prepare OMB A-87 compliant ICRPs. This will be carried out in
concert with other department interviews. It is important that this step occur each year because
departments reorganize, assignments shift, new personnel is hired, or personnel retire.
Supporting Documentation Collection
MGT will work with departments to determine the documentation that must be submitted to
the state as attachments to claims, and what documentation should be maintained in archived
files in case of the SCO inquiry or field audit. MGT will then collect only the documentation the
SCO requires to be submitted.
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We believe there is no cookie cutter approach to successful orientation and training. Some of the
department personnel are undoubtedly savvy and experienced with SB 90 claiming„ while others
are likely to be new to the process. MGT will tailor its level of training to meet the needs of each
department. As we have previously stated, early communication is the most important aspect of
this component. We will consistently:
r,z Provide electronic notification on upcoming mandate claims as soon as the Parameters and
Guidelines for these programs are approved. This will be done primarily via e-mail and will
provide both the key department personnel, as well as your Coordinator, the most complete
view of upcoming SB 90 programs.
IPage 4 of '7
MGT STATIE M INDATE COSH'CLAIMS SCOPE OF SERVICES
Rscall Years 2013-2014,2014-2015 and 2015-2016
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Provide on-site training for both program and fiscal staff. It is important that both areas of
each affected department understand the state's requirements and any specific issues related
to the particular mandate from a programmatic and fiscal standpoint. In addition, we will
provide a history and overview of the SB 90 program to any department staff that are new to
the process.
Assist to establish relevant, defensible source documentation standards for each claim within
each of the claiming departments. Our goal for each of the claims is to ensure that
documentation exists to establish that the mandate was performed and personnel costs are
adequately documented.
Provide perspectives related to how other agencies are interpreting and claiming each
mandate to ensure nothing is missed. Provide guidance on the current acceptable range of
costs being claimed by similar agencies so you will be aware of any foreseeable exposures
existing at the claiming stage.
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Once data has been received by MGT, consulting staff will prepare all eligible claims on behalf of
the agency using required SCO claim forms.
Direct Costs
Prepare all claims that apply to single departments. Once again, our experience will ensure
that no cost components are misinterpreted or omitted.
Coordinate and prepare all multi-department claims. Simply gathering data for mandates
that span different departments is not enough. The data must be cross-referenced and
analyzed to ensure that each department is capturing cost data for the same cases and are not
misclassifying certain cases, a very common occurrence.
Indirect
Prepare ICRPs for all claiming departments. The ICRPs provide an approved method for
claiming departmental indirect costs. The ICRPs will be prepared using the same software,
methodology, and figures used to produce our clients' OMB A-87 Cost Allocation Plan. At this
step, it is vital to ensure that no staff time being claimed as a direct cost in the claim is also
included in the ICRP.
Filing Procedures
MGT will provide the SB 90 Coordinator with a clear, understandable process for receiving the
completed claims/ICRPs and obtaining the necessary signatures. There will be no points of
confusion as to where the completed claims should be mailed, or who is responsible for making
sure the claims are received and filed with the SCO on time.
MGT will perform one final quality control check to ensure that each claim has signed two
original coversheets, all parts of the claim are included, and all required documentation is
attached.
MGT will hand deliver all signed claims received from the agency to the SCO on or before
the stated deadline. We will also provide the SCO with a Declaration of Service form, as well as
Claims Receipts for their staff to sign and return.
IPage 5 oU7
T SIAT IE.:. MANDATE COST Q,...AN s SCOPIE OF" SERVICES
Hscaa Years 2013-2014,2014-2015 David 20162016
MGT submits hard copies of all claims to the SCO. However, many of our clients prefer to
share claims and ICRPs prior to claim submission electronically by converting all claims and
ICRPs into Adobe PDF documents. We believe sharing documents results in many positive
benefits. Sharing information between the department staff and MGT is very easy using e-mail.
Adobe PDF claims can be stored electronically with both the consultant and the claiming
departments. This process saves paper which is environmentally friendly, and also makes
sharing claims with your claiming departments effortless.
Remittance Tracking
MGT will assist with all aspects of remittance tracking throughout the entire fiscal year. We will
consistently:
Provide copies of all claims receipts, declarations, and summary claiming reports.
Assist with tracking claim payments made by the state. Now that the state has resumed this
function, MGT will assist with this sometimes confusing process.
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The claiming process is obviously the key aspect of this engagement, but the ongoing support
services that MGT offers are important complementary services to continuously upgrading your
staff's knowledge basis, relations, and communications with the state and contract agencies, and
anticipation of changes to the claiming process.
Liaisons Assistance
MGT will also provide liaison assistance with the SCO at the desk review level. The SCO
may call requesting additional information, or duplicate documentation that may have been
misplaced in their offices. We will field these calls and fulfill all appropriate requests without the
need for your staff to get involved. In addition, our staff has extensive experience preparing
local agencies for field audits and assisting in their � ,...�............m..m:m...... ...:.mmmm :.::..::w.:w.::...www iwww.w..... w.
representation beyond the exit conference. MGT
offers assistance and response on any current or „ N%''T' Ad a.a I a F A III I NI I A 171 u
future field audit that may result from claims filed in
the past.
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Stags Updates
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The SIB 90 process is constantly changing and
evolving. MGT will provide targeted, relevant
communication on statewide issues,
interpretations, and actions at the state capitol
relating to the SB 90 process throughout the fiscal
year via MGT Instant Updatesc, a series of e-mail
communiques designed to keep our clients up to
date with the latest mandate legislation, California u
Commission on State Mandates decisions, and M''
Page 6 of 7 �..
4115
NIGT STATE MANDATE ATE os"r CLAWS SCOPE OF SERVICES
II Years 2013-2014,2014-2016 and 2015 2016
state agency interpretations. MGT will sift through all of the pertinent activity to provide the most
relevant information throughout the year, saving you time and resources.
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MGT really wants your business and strives to make the contracting or purchasing process as
simple as humanly possible. Our legal review time is minimal; requests for insurance verification
are also handled quickly.
The terms of this agreement may be renewed for two additional fiscal years, exclusively at your
agency's option. This scope of services is written for the agency's 2013-2014, 2014-2015 and
2015-16 fiscal years. The initial term is July 1, 2013 to June 30, 2014. Two additional terms of
services would be from July 1, 2014 to June 30th, 2015, as well as July 1, 2015 to June 30th,
2016. Pricing would remain the same as quoted in the proposal, letter or agreement.
1460/89 Administrative License Suspension Police
982/00 California Public Records Act (coming soon, 10 prior years) All
1022/99 Crime Victims' Domestic Violence Incident Reports Police
698/98 Domestic Violence Arrests and Victim Assistance Police
246/95 Domestic Violence Arrest Policies and Standards Police
1120/96 Health Benefits for Survivors of Peace Officers & Firefighters HR/Benefits
956/01 Identity Theft Police
901/00 Local Government Employee Relations HR/Attorney
182/01 Municipal Storm Water and Urban Runoff Discharges (select agencies only) Pub Works
630/78 Peace Officers Personnel Records: Unfounded Complaints & Discovery Police
675/90 Peace Officers Procedural Bill of Rights Police
999/91 Rape Victims Counseling Center Notices Police
1249/92 Threats Against Peace Officers Police
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