Resolution No. 78071
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RESOLUTION NO. 7807
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AGREEMENT TO PROVIDE MANDATED COST CLAIMING
SERVICES BY AND BETWEEN THE CITY OF VERNON AND DMG-
MAXIMUS FOR FISCAL YEARS 2001-2004
WHEREAS, on October 17, 2000, the City Council of the City of
Vernon adopted Resolution No. 7644 approving an Agreement to Provide
Mandated Cost Claiming Services for the 2000-2001 fiscal year with DMG-
MAXIMUS, which provided for preparing, processing and filing the City
of Vernon's claims for reimbursement of state mandated costs from the
State of California; and
WHEREAS, DMG-MAXIMUS, or its predecessor company David M.
Griffith & Associates, Ltd., has prepared, processed and filed such
state mandated cost claims on behalf of the City of Vernon in an
effective manner and its agreement has been extended annually since
October 20, 1992; and
WHEREAS, DMG-MAXIMUS has submitted an "Agreement to Provide
Mandated Cost Claiming Services" for a period of three (3) years,
actual costs for fiscal years 2000-2003 and estimated costs for fiscal
years 2001-2004; and
WHEREAS, the fixed fee for Annual State Mandated Cost
Reimbursement Claims for the fiscal years 2001-2004 has been set at
Three Thousand'Eight Hundred Fifty Dollars ($3,850), Four Thousand
Fifty Dollars ($4,050) and Four Thousand Two Hundred Fifty Dollars
($4,250), respectively, payable in four equal installments of twenty-
five percent (250) of the fixed fee due on September 1, December 1,
March 1 and June 1 of each year; and
WHEREAS, the fee for other claims funded by the 2001-2004
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legislative sessions will be thirty percent (30%) of such
reimbursements up to a maximum fee of Three Thousand Six Hundred
Dollars ($3,600), Three Thousand Eight Hundred Dollars ($3,800) and
Four Thousand Dollars ($4,000), respectively, with a minimum fee of
Five Hundred Dollars ($500); and
WHEREAS, on August 7, 2001, the Finance Committee recommended
that the City Council approve the recommendation of Bruce V.
Malkenhorst, the Director of Finance, dated August 2, 2001, that an
agreement with DMG-MAXIMUS be approved and executed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Agreement to Provide Mandated Cost Claiming Services, a
copy of which is attached hereto as Exhibit "A" and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute said Agreement for,
and on behalf of, the City of Vernon.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to transmit one fully executed
Agreement to:
DMG-MAXIMUS
Attn: J. Bradley Burgess, Vice President
4320 Auburn Boulevard, Suite 2000
Sacramento, CA 95841
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SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and thereafter
the same shall be in full force and effect.
APPROVED AND ADOPTED this 22"d day of August, 2001.
ATTEST:
X�C_' y
BRUCE V. MALKENHORST, City Clerk
ONIS C. MALBURG, Mayor
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1 STATE OF CALIFORNIA )
ss
2 COUNTY OF LOS ANGELES )
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 7807, was duly adopted by the City Council of the City of Vernon at an
7 adjourned regular meeting of the City Council duly held on Wednesday,
8 August 22, 2001, and thereafter was duly signed by the Mayor of the
9 City of Vernon.
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11 BRUCE V. MALKENHORST, City Clerk
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(SEAL)
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EXHIBIT
VA&
Contract Number : OIF-174
Agreement to Provide
Mandated Cost Claiming Services
THIS AGREEMENT, entered into this day of , 2001 and
effective immediately by and between DMG-MAXIMUS (hereinafter "Consultant") and the City
of Vernon (hereinafter "City"),
WHEREAS, Article XIIIB of the California State Constitution provides that cities may recover
costs associated with carrying out programs mandated by the State of California,
WHEREAS, the City desires to obtain maximum reimbursement for costs incurred in carrying
out State mandated programs, and has determined that engaging the Consultant to assist in the
mandated cost claim preparation process is the most economical and cost effective means for
preparing the City's state mandated cost claims; and
WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced in .
determining the costs of governmental programs and in the submission of cost claims to the State
of California, and
WHEREAS, the City desires to engage the Consultant to assist in developing, submitting, and
negotiating cost claims pertaining to state mandated programs.
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. .Scope of Services
The Consultant shall prepare claims for reimbursable state mandated costs as provided
herein.
A. Annual State Mandated Cost Reimbursement Claims
The Consultant shall prepare and file applicable actual annual state mandated cost
reimbursement claims for the 2000-2001 fiscal year and estimated claims for the 2001-
2002 fiscal year. The fiscal year 2000-2001 actual claims to be filed are claims that are
included in the State Controller's Claiming Instructions that provide for timely filed
claims to be submitted by January 15, 2002.
B. All Other Claims for Which Claiming Instructions Are Issued in FY 2001-
2002
With the exception of the claims in Scope of Services I.A. above, the Consultant shall
prepare, submit and file on the City's behalf, all other eligible actual and estimated state
mandated cost reimbursement claims for which State Controller Claiming Instructions are
issued in the 2001-2002 fiscal year.
City of Vernon 1 - July 5, 2001
Contract Number: OIF-174
2. Consultant Claim Filing Requirements
The Consultant shall file these claims to the extent that appropriate documentation is
available and verifiable and that claim amounts exceed $200 per claim.
3. Costs and Method of Compensation
A. Scope of Services I.A. - Annual State Mandated Cost Reimbursement Claims
For the services provided pursuant to Scope of Services 1.A., the City agrees to pay the
Consultant upon submission of the claims to the State Controller, a fixed fee of three
thousand eight hundred fifty dollars ($ 3,850). The fee would be due in four equal
installments: Twenty-five percent (25%) or $ 962.50 of the fixed fee shall be due on
September 1, 2001, December 1, 2001, March 1, 2002, and June 1, 2002.
B. Scope of Services 1.13. - All Other New Claims for Which Claiming
Instructions are Issued in FY 2001-2002
For the services provided pursuant to Scope of Services LB, the City agrees to pay the
Consultant a contingent fee of 30% of the amount claimed and paid, to 'maximum of
three thousand six hundred dollars ($ 3,600). Payment shall be made from monies
actually received from the State resulting. from the Consultant's efforts. Monies received
shall be defined as payments resulting from the Consultant's filing of cost claims in Scope
of Services I.B.
In the event that the total amount of claims paid by the State is less than one thousand six
hundred sixty-seven dollars ($1,667), the City shall pay the Consultant a fixed fee of five
hundred dollars ($500).
The fee, which in no case shall exceed the maximum amount, is due within four weeks of
City receipt of reimbursement from the State. ,
Three -Year Option
The City may elect to secure a three-year contract pursuant to Scope of Services I.A. and
I.B. at a secured rate as follows with the fees structured as Costs and Method of
Compensation 3 above:
Annual Claims Other Claim
2001-2002 $ 3,850 $ 3,600
2002-2003 $ 4,050 $ 3,800
2003-2004 $ 4,250 $ 4,000
City of Vernon - 2 - July 5, 2001
. '' . . ,
Contract Number : OIF-174
4.
5.
6.
7.
Please check and initial here your choice for a three-year contract.
❑ Yes for three-year option
(initials)
❑ No for three-year option
(initials)
Services and Materials to be Furnished by the City
The Consultant shall provide guidance to the City in determining the data required for
claims submission. The Consultant shall assume all data so provided to be correct. The
City further agrees to provide all specifically requested data, documentation and
information to the Consultant in a timely manner. Consultant shall make its best effort to
file claims in a timely manner pursuant to Scope of Services. Consultant shall not be
liable for claims that cannot be filed as a result of inadequate data or data provided in an
untimely manner.
For purposes of this Agreement, data that is requested by the Consultant must be
provided within three weeks of the request, or three weeks prior to the filing deadline,
whichever would come first, to be deemed to have been received in a timely manner. It is
the responsibility of the City to provide the Consultant with payment information upon
receipt of disbursements from the State for any and all claims filed pursuant to this
agreement.
Third Party Obligations
The parties hereby agree that Consultant may assign, convey or transfer its interest,
rights, and duties in this Agreement to an affiliated company or its parent company which
succeeds to substantially all of the business of the Consultant.
Consultant Liability if Audited
The Consultant will assume all financial and statistical information provided to the
Consultant by City employees or representatives is accurate and complete. Any
subsequent disallowance of funds paid to the City under the claims for whatever reason is
the sole responsibility of the City.
Indirect Costs
The cost claims to be submitted by the Consultant may consist of both direct and indirect
costs. The Consultant may either utilize the ten percent (10%) indirect cost rate allowed
by the State Controller or calculate a higher rate if City records support such a
calculation. The Consultant by this Agreement is not required to prepare a central service
cost allocation plan or departmental indirect cost rate proposals for the City.
City of Vernon - 3 - July 5, 2001
4,
Contract Number : 01F-174
8.
9.
[U]
11.
Consultant Assistance if Audited
If audited, the Consultant shall make workpapers and other records available to the State
auditors. If requested by the City, the Consultant shall provide assistance to the City in
defending claims at the desk audit level if an audit results in a disallowance of at least
twenty percent (20%) or seven hundred fifty dollars ($750), whichever is greater.
Reductions of less than twenty percent (20%) or seven hundred fifty dollars ($750) shall
not be contested by the Consultant. Nothing in this section or any part of this Agreement
shall be construed to include Incorrect Reduction Claims preparation.
Insurance
Consultant shall acquire and maintain appropriate general liability insurance, workers'
compensation insurance, automobile insurance, and professional liability insurance. Such
insurance shall (a) name City, its appointed and elected officials, and its employees as
insured; and (b) be primary with respect to insurance or self-insurance programs
maintained by City. Consultant shall furnish a properly executed Certificate of Insurance
to City prior to commencement of work under this Agreement which shall clearly
evidence coverages afforded and provide that such insurance shall not be materially
changed, terminated, or allowed to expire except on thirty -days' prior written notice to
City. Consultant shall maintain such insurance from the time work first commences until
completion of the work under this Agreement, and shall replace such certificates for
policies expiring prior to completion of work under this Agreement.
Changes
The City may, from time to time, require changes in the scope of services of the
Consultant to be performed hereunder. Such changes, which are mutually agreed upon
by and between the City and the Consultant, shall be incorporated in written amendment
to this agreement.
Termination of Agreement
If, through any cause, the Consultant shall fail to fulfill in a timely and proper manner its
obligation under this agreement, the City shall thereupon have the right to terminate this
agreement by giving written notice to the Consultant of such termination and specifying
the effective date thereof, at least five (5) days before the effective date of such
termination.
City of Vernon 1 = 4 - July 5, 2001
Contract Number : OIF-174
12. City Contact Person
The City designates the following individual as contact person for this contract:
Name: Telephone:
Title: Fax:
Address:
OFFER IS MADE BY CONSULTANT OFFER IS ACCEPTED BY CITY
y: By:
Bradley urg s, Vice P esident City Official
DMG-MAXIM
Date: July 5, 2001 Date:
City of Vernon - 5
July 5, 2001
SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 826-1438
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
DMG-Maximus
Attn: J. Bradley Burgess
Vice President
4320 Auburn Boulevard
Suite 2000
Sacramento, CA 95841
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
September 17, 2001
KENNETH X. DeDARIO
Director of Municipal Utilities
FAX: (323) 826-1425
STEVEN t PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX:(323)826-1481
Re:_ Three Year Agreement for Mandated Cost Claiming Services
Dear Mr. Burgess:
The insurance requirement has been met. Transmitted herewith is an
original executed copy of an Agreement by and between the City of
Vernon and DMG-Maximus approved at the Vernon City Council meeting held
August 22, 2001.
If you have any questions regarding this matter, please call Mr.
Pozzebon at 323/583-8811 ext. 229.
Very truly yours,
i
Chief Dep y City Clerk
GJO:ng
CC: Joan Francone
Lewis Pozzebon
Resolution No. 7807
Agreement File No. 01-059