CONTRACT 5360 Professional Services Agreement Agreement No. 5360
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF EL SEGUNDO AND
REVENUE & COST SPECIALISTS, LLC
This AGREEMENT is entered into this 1 st day of July, 2017, by and between the CITY
OF EL SEGUNDO, a municipal corporation and general law city ("CITY") and REVENUE &
COST SPECIALISTS, LLC, a limited liability company ("CONSULTANT").
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-Huht thousand Oi ht l..lutidred Fifty dollars ($38,850) 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 are 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 cure any
shortcomings to CITY's satisfaction. Costs associated with curing the deficiencies will be borne
by CONSULTANT.
-1-
Agreement No. 5360
PAYMENTS. For the CITY agrees 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 set forth in Exhibit "A") for
the tasks performed.
4. 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.
5. ADDITIONAL WORK.
A. CITY's city manager ("Manager") may determine, at the Manager's sole
discretion, that CONSULTANT must perform additional work ("Additional
Work") to complete the Scope of Work. If Additional Work is needed, the
Manager will give written authorization to CONSULTANT to perform such
Additional Work.
B. If CONSULTANT believes Additional Work is needed to complete the Scope of
Work, CONSULTANT will provide the Manager with written notification that
contains a specific description of the proposed Additional Work, reasons for such
Additional Work, and a detailed proposal regarding cost.
C. Any payments for Additional Work which would cause the total amount paid to
CONSULTANT pursuant to this Agreement to exceed $25,000 must be approved
by CITY's city council. All Additional Work will be subject to all other terms
and provisions of this Agreement.
6. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONSULTANT agrees that it has:
i. Carefully investigated and considered the scope of services to be
performed;
ii. 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
-2-
Agreement No. 5360
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 e from Juv 1, 2017 to J_oii� �0, 2018. 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";
B. Termination as stated in Section 15,
8, TIME FOR PERFORMANCE.
A. CONSULTANT will not perform any work under this Agreement until:
i. 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 hours (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 Exhibit; this Agreement supersedes
any conflicting provisions.
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.
-3-
Agreement No. 5360
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 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
-4-
Agreement No. 5360
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 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:
i. 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.
ii. 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 CONSULTANT's performance under this
Agreement or work product, 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, arising out of CONSULTANT's performance under this
Agreement or work product, 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
-5-
Agreement No. 5360
maintained by CONSULTANT as required by Section 22, and any 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 is it 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:
,Iae of hisurance Limits
Commercial general liability: $1,000,000
Professional Liability $1,000,000
Business automobile liability $1,000,000
Workers compensation Statutory requirement
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
-6-
Agreement No. 5360
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 0106 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 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:
-7-
Agreement No. 5360
If to CONSULTANT: If to CITY:
Revenue & Cost Specialists, LLC City of El Segundo
1519 East Chapman Avenue 350 Main St.
Suite C El Segundo, CA 90245
Fullerton, CA 92831
Attention: Eric S. Johnson Attention: Joseph Lillio
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.
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, sets forth the entire
understanding of the parties. There are no other understandings, terms or other agreements
expressed or implied, oral or written. There is one (1) Exhibit to this Agreement. 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
-8-
Agreement No. 5360
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.
CITY's executive manager, or designee, may execute any such amendment on behalf of CITY.
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.
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]
-9-
Agreement No. 5360
IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and
year first hereinabove written.
CITY I, SEIvADO REVENUE& (."(")ST SPECIALISTS, LLC
Q)
Eric S. Johriso
Greg(-'at- tei- :2�
9 r
City N get d-re Vice President
ATTEST:
....................... Taxpayer ID No. 33-0787781
('ity �'Iet,k'
APPROVED AS TO FORM:
If
V
for
Mark D. Hensley,
City Attorney
-10-
Agreement I fXNART A
Proposal for a
Cost Allocation & User Fee Study
Q , for the City of EI Segundo
..M
Ost
V
Peell . ts"
15sg East Chapman Avenue, Suite C
Fullerton, CA 92831
(714) 992-9020
www.revenuecost.com
Agreement No. 5360
TABLE OF CONTENTS
Tableof Contents.......................................................................................................................1
CoverLetter ...............................................................................................................................2
ExecutiveSummary................................................................................... .........,...................4
Software........-........................................................................................................................5
Scopeof Work/Methodology....................................... ...............,...............,...................6
WorkPlan.......... ............ ...............................6
ProjectTimeline....................................................................................................................10
SampleReports............................................................... . .......,................11
Company Description and Experience............................ .................,..............,..15
History of Revenue &Cost Specialists ...................................................................................15
Experience in Providing Similar Services...............................................................................15
Capabilities of Staff and Qualifications.................................................................................. 17
Experience&Qualifications...................................................................................................18
References............................................,.........,............................,...........,.................................20
Appendix—Resumes of Proposed Staff
Separate Envelope—Project Budget
��,, Y.„�•�:A°arae_°
1 1 +' s l
b I
Agreement No. 5360
May 19, 2017
City of EI Segundo
City Clerk's Office
3S0 Main Street, Room S
EI Segundo, CA 90245-3813
RE: Request for Proposal—Cost Allocation& User Fee Study
Revenue&Cost Specialists,LLC(RCS)appreciatesthe opportunityto respond with this Proposal
to perform a Cost Allocation and User Fee Study for the City of EI 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. In addition, the City wants an A-87 Cost Allocation Plan for
calculation of overhead rates for grant programs. As the result of this review, a master fee
resolution will be developed that will accurately representthe costs of providing services.
To achieve these goals RCS will work with City staff in a collaborative way that minimizes the
impacton City staff while still collecting accurate information that reflectsthe costs and services
in EI 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 August 31, 2017.
µ ,
Agreement No. 5360
I V° d upi �mlii,�,r',i�Vtvu
RCS looks forward to continue being of assistance to the City of EI 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.
Si c, rely,
\ ._..�
ERIC ''�i'OHNSON
Vice rPr ident
o Cover Letter 3
Agreement No. 5360
M
=1
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.
The City also wants an A-87 Cost Allocation Plan which complies with Federal Circular A-87 as
well as the State Controller's Office Guidelines for Cost Claiming. This Plan will use the most
recent audited actual expenditures.
Based on the full cost information, RCS will review with staff a proposed fee structure that will
recover these 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 EI Segundo and quickly identify what those
operations cost. This will be done through the use of on-site meetings with staff. it is these
face to face meetings with the City staff who perform the work that insures that the data is
accurate.We do not drop off forms and expect City staff to do our work for us.
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 s00%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 benefits that particular property
Cl'" CNOMW
i ,'p_^paaitl,° •,. Executive SurnMary - 4
Agreement No. 5360
SMI "� ' � /' � � • �' iIN ,Vmur
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
Councils insures thatthe EI Segundo City Council will be able to meet the objectives of the City.
SOFTWARE
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 thatthe system is properly installed and the data from this Study will be installed
atthe City with no licensing limitations at the 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.costa Ilocation.com.
sl
°+..�'� gin.
('"A:�
� :dku.°: u.u. . Executive '-5urn ary - 5
Agreement No. 5360
H
SCOPE OF WORK/METHODOLOGY
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. All meetings will be on-site at the City. RCS does not leave
forms with staff and expect them to be filled out. 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, 2i8, and 26.
Cost Allocatiori l„flan
Task 1: 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 is 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 i hour per department to review the results of the allocations.
l v;:v k?s'b�.�a.;.
OM
c •� i- e bye ,
.> a.� �.., v . �.s l r� a.,. r k .
Agreement No. 5360
rte,
Task 4: Prepare Draft Cost Allocation Plan and Review with City Staff
RCS will make any changes and prepare a Draft Report with allocations to end user
departments using our 20-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 ofthe Fee Study and can also be used to determine the amounts for transfers
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.
A-87 Cost Allocation Plan
The A-87 Cost Allocation Plan is required to be based on audited actual expenditures. Therefore,
RCS will use the FY 2016-3.7 audited expenditures once the audit process is complete. For the
time allocations to the various central services the OMB Circular requires verifiable time
allocations. Therefore, RCS will work with City staff to determine the level of time detail that
exists. Most likely this will require time allocations at the divisional level.
The end result will be a Cost Plan with appropriate overhead rates for each department and
division so that staff may be charged to Federal grant programs. RCS will provide five bound
copies and a PDF file of the Final Report.
RCS will then work with City staff on submitting the A-87 Plan to the relevant cognizant agency
and work with that agency until the A-87 Plan is approved.
User Fee Study
Task s: Kick-off Meeting
RES 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.
?'a,w
S c o p e of o Ir k . 7
Agreement No. 5360
1111 IN it
., �. +i t � r 1NI ■x ROOM
�1 �I,PVu
rm(
Task 2: 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 EI 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 i hour per department.
Task 3: 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
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 the fact that we allocate S00%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 i-z 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.
gl'6" ° ^'i;ui'i;et u,'. _> c o f° e o 'r W o r Iw -
Agreement No. 5360
IiI.-II01 M!
143,
Task 6: Prepare a Fee Survey
RCS will compare existing and proposed fees in key benchmark areas with those charged
by other comparable agencies. To insure thatthis process is comparing like services,RCS
recommends that the City compare the fees involved in moving a typical development
from the beginning to the end of the development process.
Task 7: 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 five bound
copies,one unbound copy,and 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 8: 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 assistthe staff in the implementation of the revised service fees
at up to two meetings.
S cor) e o F Work - 9
Agreement No. 5360
� �' � � s � �r � li al',Isti"91 Y�ij• ; I r,„i it imuMmiiuu,;��'�i, �ud�A,i
,����w ����i�W♦ ..,�� ,��.. Ilii
Y'I'' II'' I ��m .L..,l �I Ilii',
����'° li. .,...L. I I V,I'° I ,
Work would begin immediately on notification bythe 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 supports the 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 August September October November December
Cost Allocation Plan
Review Central Services/Time
I p
�j IY^I Y ji�d�N@'4�a Iu ININ girl V�V�I°N I
Review Allocation Factors
Review Results with Departments gyp,
Prepare Final Cost Allocation Plan1 'Y ,YIIVA
Uer If=ee study
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
^b il�ll ���w��u'w�tr,�
R,V
1
0 d,vk:u lu ;III: II.II.a Scope of `v PrP it l(. - :.s..
Agreement No. 5360
Fig
S A I Ip 1....IE', IF E IG::: .,.;E-JR VR:�:�';: F.
Demonstration Copy
REVENUE AND COST SUMMARY WORKSHEET
SERVICE REFERENCE NO.
VARIANCE REVIEW S-021
PRIMARY DEPARTMENT UNIT OF SERVICE SERVICE RECIPIENT
PLANNING APPLICATION Developer/Resident/Business
DESCRIPTION OF SERVICE
Review proposed variance from terms of'zoning code and prepare staff report for the Planning Commission
CURREN T 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 COST'COMPARISON
UNIT REVENUE: $1,067.30 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 FOR COS .....
T 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-$620 per application plus 30%of the application fee for each additional Rem after the first Rem
subject to Administrative Adjustment
May 13,2013
.. I ,'tit
Scope of Work - :, 3.
Agreement No. 5360
hili: 1111:011111!! ;H!
S A M P IL E F E E S IE 1:Z II :,, C.10 S r DETAH W 0 R K S IIq E
Demonstration Copy
COST DETAIL WORKSHEET
...................
SERVICE REFERENCE NO.
VARIANCE REVIEW S-021
.................
NOTETOTAL UNITS
Unik Costs are an Avprage of ToW UnIN
DEPARIVAENT 1.1:1.0..',.3..W.l.(.Y.4 u; UM1212,21 6ML .h.1 rol cn01 .$T!
Planiomryp $pV",3 l,2W
r FlanComrn ?e"71%
:nrcn Of I Pl@n(-'.omm
F1131iri,j R PlanGrAiirn $-KL4 70
6 11't Al',iM C Plan(,rmrri 10 $l '0,,K,
F A
11kxv,11 , AlDl,.MN Plan Comm 111) 4 6d
J
TYPE SUBF01FAL 21.50 $2,647.09
111.,.,,nii Ch-,,v Adrnin C()MM DEV DIRECTOR RV P-rrnpl 117 $7599 $76
l 11"y'ning PLACVIW,MANrG ER RV Permit rj $9294 V $93
V 11.41ming COMBO PLANIJER rV Permit $27692 $277
Ralnun,) ADMIN ASSK�TANT RV Permit 2','� $17 18 i $17
TYPE SUBTOTAL 3.S8 $463.03 S463
Er4rwring rlw,V+41T,jl"Er? Adrom Alustrrient a 17 $2522 3 $76
Corry Dev Admin ;"WN1 0EV 1114:21.",t"Al Admvn Acju.tment 021.5 $3800 3 $114
Ply WDJ zt, MAN A,,,;'R Admin AcIlustment 103 $18688 3 $5%
Flaming :'�OKIFIKPLAPINP.R Admwi Aqu*nent 293 S3,31635 3 $1,009
R"irV ADMIN N,*dSTMAT Adroo kim-linent 050 $34,36 3 $10"11
TYPE SUBTOTAL 4.76 $619-81 VIA."
..........
TOTALS 29.83 $1,269.50 $7.617
........... ..... .........__........w
IA 2.0
QVQt�OL"
Scope of Work - 12
Agreement No. 5360
SAMPLE Fk A I 'Y A L L.0(",A"VE,D I 10 U R P,"r E 1")E [All REJ'(')R'T'
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
Totall AvalWk-firo %of Salary Howly Rato
DIRECT COSTS:
Avail.Work HourslSalary 9,918 $4916
Fringe Benefits 35,10% $16-94
Maintenance&Operafion Costs 8.33°/® $4,01
Building Occupancy Costs 0-00% $000
Debt Service Costs 000% WOO
INDIRECT COSTS:
Overhead Costs 103.28% $4974
Fixed Asset Replacement Costs 0.00% 1 $0.00
TOTAL-All Costs $118-85
May 13,2013
ost
pvrvia Scope of Work - 1- 3
Agreement No. 5360
SAMPL.,E POSI 110N TIME DE TAH- REPORT
Demonstration Copy
Time Detail by Position
Position: A90 ACCOUNT iNGMANAGER #of Employees: 1.000
Memo-
SubOrg,001-21000-21000 Finance Administfatiort
TOTAL
UNIT TIME UNITS TIME PERCENT
CAP-050 BUD(-1ET PREPA'00RDINAT*N 1%
CGP-05'I GENEFLal,ACGOUNT ING Ramaindef Ot firno 'V,',,94 1 00'2'8 9)1!11,
CAP-054 PURCHA ING SERVICES 3% 05U 1 '895,1 3(6%
CIAJI-055 A(,COLJNIG PAYABLES 15% 1.4 7 911; 1 95 1 S OIA
CAP 056 PAYROLL SERVIGI-S 4% 6(,;1,,, 1 66,12 4u"
CAP-059 GDEIG SUPPORT 3% 43 59 1 14 14 59 3,D)%
CLOP-060 REDEVELOPMFNI SUPPORT 25% 4 13'2.5 1 41,3 215 25 C01%
r-AP-1061 FNANCr DEP,r GI)PRORT 5% 82I 6 1 8,2 65 501%
CAP-042 GRANT ADMINISTRATON 5% 4 9 G9 1 40 2 1 1110111�
S M ANIMAL 00INTROL, 114 Hr/Monlh 0 00 7,000 2 yX, 0 90'X1
S-124 HYDRAJ,�f METER RENIAJ-SERWICE W k 4/Mo-Rental u7 07 43 2 0f5 0 Itw,
S-138 RErURNED 0HECK PROGE6SING '112 Hr Month U 370 595 11131,41m,
TAXAe POLICE FALSE At RESPONSE 15 MfrWo-64hng 0 c�1 520 96 1't
00
May 13 2013
LAV 11 1 U
scope ofWork - 14
Agreement No. 5360
COMPANY DESCRIPTION AND EXPERIENCE
RCS was established in 198o as Management Services Institute by two former City Managers
and a Finance Director in the wake of the passage of Propositions 4 and 13. They had already
been costing services in their respective cities but now saw that more and more cities would
need this information. These early studies would provide the template for costing work done
throughout the state.
Management Services Institute changed its name to Revenue& Cost Specialists in 1996 so as to
have a name that better reflects what we do. RCS has continued that same tradition of helping
public agencies identify their service costs, either directly through a study or indirectly by
providing software.
I11, A 111i p k1 ' V
We have performed costing and fee services for over zoo local agencies in five states. Below is
a list of recent cities that are similar to the City of EI Segundo where we have also performed
costing services.
City of Diamond Bar — Cost Allocation Plan and Comprehensive Fee Study: RCS recently
completed a Cost Allocation Plan and Comprehensive Fee Study for the City in 2017. The City
Council is currently reviewing the fee recommendations.
City of Corona—Cost Allocation Plan and Comprehensive Fee Study: RCS developed a Cost
Allocation Plan and Comprehensive Fee Study for the City most recently in 2015 and provides
annual Cost Allocation Plans to the City.RCS has been providing these services forthe City since
1990.
City of Lancaster—Cost Allocation Plan and Comprehensive Fee Study:RCS developed a Cost
Allocation Plan and Comprehensive Fee Studyforthe City in 2006,Zoog,and 203.4.RCS has also
updated the Cost Allocation Plan in 2010, 203.1, 203.2, and 203.6.
City of Hermosa Beach—Cost Allocation Plan and Comprehensive Fee Study:RCS developed
a Cost Allocation Plan and Comprehensive Fee Study in 2006 and 2016. The fee
recommendations were approved by the City Council.
City of Santa Clarita—Cost Allocation Plan and Comprehensive Fee Study: RCS developed a
Cost Allocation Plan and Comprehensive Fee Study for the City most recently in 2014 and has
a��M �^tr�.4tlbp�iF
Experience & Qualifications - 3. 5
Agreement No. 5360
'111RI III!
also updated the Cost Allocation Plan in 201-1, 2012, and 2013, 2014, 2015, and 2o16. RCS has
been providing these services for the City since 1995.
City of Lathrop—Cost Allocation Plan: RCS has been providing annual Cost Allocation Plans
for the City since 2000.
Experience & Qualifications- 16
Agreement No. 5360
o • ` -
a
Kul" a hIVdIII�adxiV;iw�
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. Kermer has been providing costing services for almost 38 years and Mr. Johnson has been
providing these same services for more than 27 years. 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.
Mr.Johnson will be conducting the interviews with staff as well as the presentations to the City
Council, with Mr. Kermer providing assistance as needed.Therefore we do not need to rely on
producing Status Memoranda; we will actually be at City Hall to tell you in person how the
project is going.
A check of the references included in this proposal will confirm that Mr.Kermer and Mr.Johnson
have the experience to not only produce a Cost Allocation Plan and Fee Study Report that City
staff can support, but also a Report that the City Council can easily understand and adopt.
The resumes for Mr. Kermer and Mr.Johnson are included on the following pages as well as the
Appendix at the end of this proposal.
lxs
9�N. �� tuaQic...r.u. . Experience & Qualifications - 17
Agreement NO. 5360
�`�����U�U��~� ��U�U� QUALIFICATIONS EXPERIENCE�� ____
Albeiift Ri&haird ("Rick") Kerrneil'�, Jr,
Piresiden't
1::1/U(*J110N Municipal Experience
Bachelor«FArts in City ofBuena Park Director nfFinance/City Treasurer(1976-3.979)
Gcmnomics-UniveohYot
Chicago City ofLynwood ' Fiscal Officer(zg7S-z976)
Master ofBusiness
Lance, 5o|| 8' Lunghard, CPAs 'Senior Auditor(zg7z'1g75)
Administration in
Accounting and ccoon ngan a Related Experience
Methods/Computers
University ofChicago City of Carlsbad—Cost Allocation Plan and Fee for Services Update:
PROFESS|ONAL Mr. Kerrner just completed the fifth project for the City. The first
CERToF|CAT|ON project was done totally byMr. Kernoar& Mr.Johnson.The latest was
Certified Public performed byCity staff with RCS training and review.
Accountant,State of
California(Retired)
AFFILIATIONS '
Cit� of Fountain ValUay—Cmst AllocationPlan and Fee for Services
Update: Mr.Kerrnerhas been providing services tothe City since zoo5.
California Society of The latest project isanupdate fur'ustthe Planning Department which
'
Municipal Finance will bagoing tmCouncil inJune.
Officers
Government Finance
Officers Association
City of HighYamd—CommpmehemsiveFeefsr Services: Mr. Kermerhas
PUBLICATIONS been working with the City since its incorporation in3.987tokeep its
fees current with its costs.
Co-Author of"Cost
Accounting for California
[ities,^League of
California Cities,zg8z City of Mission Viejo — Cost AUKocmtlmm Plan & Comprehensive Fee
Sacramento [A
' Study: Mr. Kerrner developed a Cost Allocation Plan and
483 Yea,sofProfessionaU Comprehensive Fee Study for the City in 203z. The fee
Experience recommendations were approved bythe City Council.
FuU �UentList avz/4�::)Ieat
xvvvw.revenmecusrrCmm
u.,ua�c
E x, p e r i e, in c e & 0 u m l� c a ti o m i. �
Agreement No. 5360
is S. Johnson
Vice President
Bachelor of Arts in Municipal Experience
Political Science- City of Redlands—Redevelopment Intern (3.987--1989)
University of Redlands
,F,i-1111 �%P1 r 1 11-1, Related Experience
California Society of City of Corona—Cost Allocation Plan and Comprehensive Fee Study:
Municipal Finance Mr.Johnson developed a Cost Allocation Plan and Comprehensive Fee
Officers SStudy for the City most recently in 2013. He has been providing these
Government Finance services for the City since 19go.
Officers Association
City of Lancaster — Cost Allocation Plan and Comprehensive Fee
Study: Mr. Johnson developed a Cost Allocation Plan and
Comprehensive Fee Study forthe City most recently in:zoo6,Zoog,and
3 c11K, 2014. He has also updated the Cost Allocation Plan in 2010, 2011,2012,
and 2-o16.
City of Fullerton—A-87 Cost Allocation Plan: Mr.Johnson developed
an A-87 Cost Allocation Plan in 2o16 for approval by cognizant
agencies.
City of Diamond Bar—Cost Allocation Plan and Comprehensive Fee
Study: Mr. Johnson developed a Cost Allocation Plan and
Comprehensive Fee Study in 2017. The City Council review of the fee
recommendations are scheduled for February 2017.
City of San Bernardino Municipal Water—Cost Allocation Plan and
Comprehensive Fee Study: Mr. Johnson developed a Cost Allocation
Plan and Comprehensive Fee Study for the Water Agency in 2oi6.
Review of the Fee recommendations by the Water Board is upcoming.
111j)Q('j;d i'StN,1!A 11 Experience & Qualifications - iq
Agreement No. 5360
WE
1qu r loll i rc�i��,
REFERENCES
Revenue & Cost Specialists has recently completed similar projects for the following public
agencies and would request you to contact them for references:
Jurisdiction Contact, Title,
City of Diamond Bar Dianna Honeywell Finance Director
909/839-7051-
City
09/839-7051City of Lathrop Sandra Frias Budget Manager
209/941-7328
Orange County Fire Authority Gina Cheung Accounting Manager
7141573-6303 n, d ll;i'w Al,Iu. 11,5"' )C:Ci�c�..:..;-.o:.�
City of Fullerton Julia James Admin Svcs Director
7 4173 5 _.u. i �lw.r:....:- .1lert, Qu,,c.,:�, s
1 8-6 zi Juli�i.1 �)�i I�r?....,. .___w.�.�.___
City of San Bernardino Water Terri Willoughby Finance Director
9091384-3184 ter ri„vvIIi ,�i.ng iby(."bsI:aniwcll (,)I-�)
City of Santa Clarita Carmen Magana Admin Svcs Director
661/255-4997 cniar Qw:,. .0santa-cJaritammcom
City of Hermosa Beach Viki Copeland Finance Director
310/318-0225 V,C-0 a ml n cli.CIS
q r "
QVVI n l'I
d rr;t,
R e ( dr e n c e s - .2, o
Agreement No. 5360
Appendix
Resumes of Proposed Staff
Agreement No. 5360
ERIC . 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.
CLIENTS SERVED
COST OF SERVICE FEE STUDIES COST OF SERVICE FEE STUDIES COST ALLOCATION PLANS
City of Arcadia Orange County Fire Authority City of EI Segundo
City of Atascadero City of Oroville City of Elk Grove
City of Azusa City of Oxnard City of Folsom
City of Banning City of Palm Springs City of Glendora
City of Barstow City of Peoria,Arizona City of Hermosa Beach
City of Beverly Hills City of Pico Rivera City of La Canada-Flintridge
City of Carlsbad City of Pismo Beach City of Lakewood
City of Carmel-by-the-Sea City of Redlands City of La Mirada
Carpinteria-Summerland Fire District City of Rialto City of Lancaster
City of Corona City of San Clemente City of La Puente
Contra Costa County City of San Gabriel City of Lathrop
City of Desert Hot Springs City of San Marino City of Lincoln
City of Diamond Bar City of Santa Clarita City of Los Altos
City of Dublin,Ohio City of Santa Paula City of Lynwood
City of EI Segundo City of Seaside City of Manhattan Beach
City of Elk Grove City of Simi Valley City of Menifee
City of Eureka City of Solana Beach City of Marina
City of Folsom City of South Lake Tahoe City of Needles
City of Glendale City of South Pasadena City of Oakdale
City of Glendora City of Stockton City of Oroville
City of Hermosa Beach City of Thousand Oaks City of Oxnard
City of Highland City of Tracy City of Palmdale
City of Huntington Beach Town of Truckee City of Pasadena
Imperial County Ventura County Fire District City of Peoria,Arizona
City of La Canada-Flintridge City of West Covina City of Pico Rivera
City of Lakewood City of West Jordan,Utah City of Pismo Beach
City of La Mirada City of Westminster Placer County Water Agency
City of Lancaster City of Yuba City Riverside County Transport.Comm.
City of La Puente San Bernardino Assoc.Gov't
City of Lincoln COSTAt PLANS County of San Bernardino Spec Dist.
City of Lindsay City of San Gabriel
City of Loma Linda Town of Apple Valley City of San Marino
City of Long Beach Marine Bureau City of Arcadia City of Santa Clarita
City of Los Altos City of Atascadero City of Santa Monica
Town of Mammoth Lakes City of Azusa City of Santa Paula
City of Manhattan Beach City of Barstow City of Seaside
City of Marina City of Beverly Hills City of Solana Beach
City of Menifee City of Carlsbad City of South Pasadena
City of Milpitas Coachella Valley Assoc of Gov't City of Suisun City
City of Monterey County of Cobb,GA City of Thousand Oaks
City of Morgan Hill City of Concord City of Tracy
City of Morro Bay City of Corona County of Tulare
City of Needles City of Desert Hot Springs City of Westminster
City of Oakdale City of Diamond Bar
Agreement No. 5360
ALBERT RICHARD("RICK") KERMER,JR.
EDUCATION
Bachelor of Arts-University of Chicago-Economics
Master of Business Administration-University of Chicago-Accounting and Math Methods/Computers
PROFESSIONAL CERTIFICATION
Certified Public Accountant-Retired,State of California
PROFESSIONAL EXPERIENCE
Revenue&Cost Specialists/Management Services Institute - President
(1979-Present)Chief Executive Officer of a diversified management services company.
City of Buena Park-Director of Finance/City Treasurer
(1976-1979)Managed a department responsible for administering the budget and general accounting plus
water billing,treasury management, business licensing and data processing of a full-service city.
Developed and implemented an integrated on-line financial and program budgeting system. Prepared
City's first Annual Financial Report for FY 1978-79 which received a CSMFO Meritorious Award.
Municipal Finance Consultant,Lecturer and Author
(1976-Present)Performed accounting and financial assistance to numerous municipal governments.
Assisted redevelopment agencies,housing authorities,and other specialized districts. Provided contractual
accounting services to cities including service as Acting Controller of Compton.
Lecturer on governmental accounting,budgeting,cost accounting and risk management at the University of
Southern Califomia. Speaker at several League of California Cities meetings on risk management and cost
accounting.Co-author of several articles on risk management published by the Municipal Finance Officers
Association and Western Cities magazine. Co-author of the League of California Cities publication,Cost
Accounting for California Cities.
City of Lynwood-Fiscal Officer
(1975-1976)Created Finance Department. Established centralized purchasing and review of accounts
payable. Administered risk management program. Organized utility billing system for accounting control
and follow-up on delinquents.
Lance,Soll& Lunghard,CPAs-Senior Auditor
(1971-1975)Audited the Cities of Bell,California City,Claremont,Costa Mesa,Duarte,Torrance,
Lynwood,Montclair,Oxnard, Rialto,San Dimas and Whittier. Recommended warrant processing and
receipting procedures. Reviewed internal control and recommended changes to strengthen same. Prepared
annual financial reports and monitored adherence to generally accepted accounting procedures.
Publications:
Co-Author ofCostAccountirn' for_Cliforrtia Cities.League of California Cities, 1981 Sacramento,CA
Agreement No. 5360
ALBERT RICHARD("RICK")KERMER,JR.-(continued)
CLIENTS SERVED
SERVICE COST STUDIES SERVICE COST STUDIES(cont
City of Alhambra City of South Gate
City of Banning City of South Lake Tahoe
City of Big Bear Lake City of Springville;Utah
City of Brea City ol`Thousand Oaks
City of Carlsbad City of Tulare
City of Carpinteria City of Turlock
City of Ceres CjLV of Upland
City of Chino City of Villa Park
City of Claremont City of Vista
City of Coachella City of Westminster
County of Contra Costa City of West Jordan,Utah
City of Corona
City of Cudahy COST ALLOCATION PLAN
City of Dinuba City of Alhambra
City of Dublin,Ohio City of Buena Park
City of Folsom City of Carlsbad
City of Fontana City of El Cajon
City of Foster City City of Lynwood
City of Fountain Valley City of Rialto
City of Fullerton City of San Rafael
City of Goodyear,Arizona City of Solana Beach
City of Hemet City of Thousand Oaks
City of Highland Orange County Vector Control District
City of Huntington Beach
County of Imperial CASH MANAGEMENT
City of La Mirada City of Buena Park
City of La Palma City of Commerce
City of Lake Forest City of Compton
City of Lemoore La Mirada Civic Theater
City of Lindsay City of Palmdale
City of Los Altos
City of Lynwood ACCOUNTING PROCEDURES
City of Mammoth Lakes City of Buena Park
City of Marina Commerce Redevelopment City
City of Merced City of Compton
City of Milpitas City of La Habra
City of Monrovia City of La Palma
City of Monterey City of Morgan Hill
City Of Moreno Valley City of Palmdale
City of Morgan Hill South Gate Housing Authority
City of Norwalk
City of Oakdale DATA PROCESSING
City of Oceanside City of La Palma
Oceanside Harbor District Ontario-Montclair School District
City of Palmdale City of Palmdale
City of Palm Desert City of San Clemente
City of Pasadena City of South Gate
City of Pittsburg City of Villa Park
City of Pomona
City of Port Hueneme ORGANIZATIONAL AND MANAGEMENT
City of Rancho Cucamonga City of La Mirada
City of Rancho Palos Verdes Ontario-Montclair School District
City of Red Bluff City of South Gate
City of Redlands City of Vista
City of Rialto
City of Richmond UTILITV RATE STUDIES
City of Riverside City of Brea
City of Rocklin City of Chino
City of Salinas City of El Segundo
City of San Clemente
City of San Juan Capistrano LONG RANGE FINANCIAL PLAN
City of San Rafael City of Chino
City of Sanger City of Cudahy
City of Santa Clarita City of Lake Elsinore
City of Scotts Valley City of South Gate
City of Sea]Beach City of Hesperia
City of Selma City of Turlock
City of Sierra Madre
City of Solana Beach
Agreement No. 5360
en't
os
peciallsts, i,i,c
1519 East Chapman Avenue, Suite C
Fullerton, CA 92831
(714) 992-9020
www.revenuecost.com
Agreement No. 5360
PROJECT BUDGET
Revenue & Cost Specialists proposes the following options shown below. if the City were to
choose both the Cost Allocation Plan and the User Fee Study there would be efficiencies
which would be passed on to the City as a lower total price.
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
Total Cost Allocation Plan Only I $8,000 i
� � I
User Fee Study
Kick-Off Meeting Informational Meeting $11500
Develop Service List Preliminary Service List $1500
i
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 Only $28,000
Both Total CAP& Fee Study $32,000
A-87 Cost Allocation Plan $5,000
The current RCS billing rate is$195 per hour.
The above fees cover all costs exceptforthe following additional costs which the City may incur:
any business license tax imposed on RCS which is not waived by the City,
insurance coverage beyond our basic general liability and workers compensation
requiring an additional premium',
1 RCS standard coverage includes workers compensation pursuant to slate law,comprehensive liability insurance with a combined single limit
coverage of$2,000,000 and professional liability insurance with acombined coverage of$21000,000.
Agreement No. 5360
IM sales or use tax or any other tax imposed on RCS services,and
Mi report reproduction beyond identified number of copies of the final Reports.
City Council meeting attendance beyond the two identified meetings in this proposal.
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.