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Resolution No. 2011-039RESOLUTION NO. 2011-39 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A CONSULTING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND N B S TO REVIEW REVENUE BASE, PROVIDE FUNDING ALTERNATIVES AND IMPLEMENTATION OF FUNDING SOLUTIONS WHEREAS, the City of Vernon ("City") desires to engage a revenue consultant to review the City's revenue base and provide alternatives to increase revenues (the "Services"); and WHEREAS, N B S ("NBS") is qualified and capable of furnishing the labor, materials and expertise necessary to perform the Services; and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (b)(1) and (7) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into a Consulting Services Agreement with NBS to review the City's revenue base and provide alternatives to increase revenues. 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 does hereby find and determine that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Agreement with NBS, a copy of which is attached hereto as Exhibit A. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro -Tern to execute the Agreement for, and on behalf of, the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this resolution and the transactions herein approved or authorized. SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk's designee, to send a fully executed Agreement to NBS. SECTION 6: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 15thday of March, 2011. ATT T: and G. YahagAchi()2ity Clerk r Name: Hil.a.rio Gonzales Title: Mayor / o-T -2- STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, Willard G.. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2011-39, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, March 15, 2011, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this �6 day of March, 2011, at Vernon, California. (SEAL) -3- EXHIBIT A CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND N B S TO REVIEW REVENUE BASE, PROVIDE FUNDING ALTERNATIVES AND IMPLEMENTATION OF FUNDING SOLUTIONS Consultant: Responsible Principal of Consultant: Notice Information - Consultant: Notice Information - City: Commencement Date: Termination Date: Consideration: Records Retention Period COVER PAGE NBS Pablo Perez, Director N B S 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Attention: Pablo Perez Phone: 800-676-7516 Facsimile: 951-296-1998 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Mark Whitworth, City Administrator Telephone: (323) 583-8811 ext. 398 Facsimile: (323) 826-1422 March 15, 2011 March 15, 2012, unless extended pursuant to Section 1 As described in Exhibit B 3 years i l CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND N B S TO REVIEW REVENUE BASE, PROVIDE FUNDING ALTERNATIVES AND IMPLEMENTATION OF FUNDING SOLUTIONS THIS AGREEMENT is made and entered into as of March 15, 2011 ("Effective Date"), by and between the City of Vernon, a California charter City and California municipal corporation ("City"), and N B S, a California corporation ("Consultant"). City and Consultant are collectively referred to herein as the "Parties." RECITALS A. City desires to have certain revenue consultant services provided as more fully set forth in the Scope of Services, attached hereto and incorporated herein as Exhibit A. B. Consultant represents it is qualified and capable of furnishing the labor, i materials, and expertise necessary to perform such services in accordance with the terms and conditions set forth in this Agreement. NOW, THEREFORE, the Parties agree as follows: Section 1. Term and Time of Performance. (a) This Agreement shall commence upon the Commencement Date listed on the Cover Page, and shall remain and continue in effect through the Termination Date listed on the Cover Page, unless sooner terminated pursuant to the provisions of this Agreement. City may renew this Agreement on a year-to-year basis at its discretion. Any services performed prior to the Effective Date listed above, but on or after the Commencement Date, shall for all purposes be deemed to have been performed pursuant to this Agreement, subject to the terms and conditions hereof. . (b) In the event that City renews this Agreement, Consultant may submit a proposal to increase its rates no later than thirty (30) days after receiving notice of City's intent to renew. Any increase in rates must be approved by City before such increase can take effect. If City fails to approve the proposed increase within thirty (30) days of receipt, Consultant may terminate the renewal by giving thirty (30) days written notice. Section 2. Performance. (a) Consultant shall perform the services and tasks described and set forth in the Scope of Services, Exhibit A ("Services"). Additional services must be mutually agreed upon in writing signed by both Parties prior to performance of those additional services. (b) Consultant shall at all times faithfully, competently and to the best of its ability, experience, and talent, perform all Services under this Agreement in accordance with the standard of care and skill ordinarily exercised by members of the profession currently practicing in the same locality as the City under similar circumstances and in a manner reasonably satisfactory to City. Consultant shall at all times comply with the highest ethical standards when performing Services for the City. 2 (c) Consultant shall keep itself informed of all local, state, and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its Services pursuant to this Agreement. Consultant shall at all times observe and comply with all such ordinances, laws and regulations. City, and its City Council members, officers, officials, employees, agents or volunteers shall not be liable at law or in equity occasioned by failure of Consultant to comply with this section. (d) Consultant will not be compensated for any work performed not specified in Exhibit A unless City authorizes such work in advance and in writing. Section 3. Compensation. (a) City.agrees to compensate Consultant, and Consultant agrees to accept in full satisfaction for the Services required by this Agreement, the hourly rate and expense reimbursement set forth in Exhibit B ("Hourly Rate and Expenses"). (b) Consultant shall be entitled to reimbursement only for those expenses expressly set forth in Exhibit B. Any expenses incurred by Consultant that are not expressly authorized by this Agreement will not be reimbursed by City. Section 4. Method of Payment. (a) Invoices. Consultant shall submit invoices monthly for Services and expenses. Invoices shall include the month for which the Services were provided, the dates of such services, and a description of the Services provided for that billing period. Each invoice shall include copies of timesheets, if any, and other supporting documents as City may require. (b) Payments by City. Payments of each invoice shall be made by City within thirty (30) days following receipt of each invoice as to all non -disputed fees. If City disputes any of Consultant's fees, it shall give written notice to Consultant within thirty (30) days of receipt of the disputed invoice. Any amounts in dispute shall be withheld until resolution. Section 5. Personnel. All persons performing Services shall have all the necessary technical expertise, permits, professional licenses, certificates, training, and other qualifications required by this Agreement or other applicable laws. Consultant shall provide City with said permits, licenses, and certificates at the request of City. Section 6. Access. Consultant shall comply with all reasonable access and other restrictions that City may impose. No access to City property for performance of the Services shall be permitted prior to'delivery to City of proof of insurance paid and maintained by Consultant. Section 7. Consultant's Duties and Representations. Consultant represents, covenants and agrees as follows: (a) There are no obligations, commitments, or impediments of any kind that will limit or prevent performance of the Services. (b) Consultant presently has no interest and shall not have any interest, direct or Indirect, which would conflict in any manner with the performance of the Services 3 contemplated by this Agreement. No person having any such interest shall be employed by or be associated with Consultant. (c) There is no litigation pending against Consultant and Consultant is not the subject of any criminal investigation or proceeding, and neither Consultant nor its personnel, to its actual knowledge, have been convicted of a felony. Section 8. Independent Consultant. (a) Consultant is and shall at all times remain, as to City, a wholly independent consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control.. Neither City nor -any of its City Council members, officers, officials, employees, agents, or volunteers shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, officials, employees, agents, or volunteers of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. (b) No employee benefits shall be available to Consultant or its officers, employees, or agents in connection with the performance of this Agreement. Except for Consideration paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for the City. City shall not be liable for compensation or indemnification to Consultant or its officers, employees, or agents for injury or sickness arising out of performing services hereunder. (c) Consultant agrees to pay and be responsible for paying all Federal, State and local taxes for compensation received by Consultant from City while performing services for City. Section 9. Termination. (a) Termination Right. Either Party may, at any time, for any reason or for no reason, with or without cause, terminate this Agreement, by serving upon the other Party at least fifteen (15) days prior written notice. Upon receipt of such notice, Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. (b) Payment Upon Termination. In the event this Agreement is terminated without cause pursuant to this section, City shall pay Consultant for Services performed up to the time of termination on an hourly basis for Services rendered and Consultant shall submit an invoice to City as required under this Agreement. Consultant shall have no other claim against City by reason of such termination, including any claim for compensation. (c) Actions Subsequent to Termination. In the event of termination of this Agreement, Consultant shall deliver all Confidential Information, as defined in Section 11 below, to City within thirty (30) days after the termination of this Agreement. _Consultant shall also take all such other action as City reasonably requires and shall cooperate with City to effectuate an orderly and systematic termination of Consultant's duties and activities hereunder. 4 (d) All of the terms and conditions in the Agreement related to payment, confidentiality, indemnification, dispute resolution and waiver shall survive termination of this Agreement. Section 10. Limitation of City's Liability. City's liability on any kind of claim for any loss or damage arising out of, in connection with, or resulting from this Agreement, shall in no case exceed the amount that is owed to Consultant for the performance of the Services that have been requestedpursuantto this Agreement. In no event shall City be liable for anticipated profits or for incidental, consequential or punitive damages. City shall not be liable for penalties of any description. Section 11. Confidential Status: Disclosure of Information. (a) Confidential Status; Disclosure of Information. All data, customer information, business practices,.business methods, privileged information, privileged communications, trade secrets, financial statements, floor plans, designs, maps, surveys, drawings, models, reports, correspondence, logs, documents, materials or other information developed or created by Consultant, received by Consultant, revealed to Consultant, or provided to Consultant for the performance of this Agreement are deemed confidential and shall not be disclosed by Consultant to any third party without City's prior written consent ("Confidential -Information"). City shall grant consent if disclosure is legally required. All Confidential Information shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. City may disclose to third parties any Confidential Information at its sole discretion. (b) Consultant's obligation not to disclose any Confidential Information shall not extend to information that: i. was in the possession of, or was rightfully known by, the �. Consultant without an obligation to maintain its confidentiality prior to receipt from City; �. ii. is or becomes generally known to the public without violation of this Agreement; Ill. is obtained without an obligation of confidentiality by the Consultant in good faith from a third party having the right to disclose it without an obligation of confidentiality; or iv. information which is required to be disclosed pursuant to any court order or directive having the force of law. . (c) Consultant acknowledges that City's attorney may be advising City on matters relating to the Services performed pursuant to this Agreement and such privileged communications may be disclosed to Consultant to accomplish the purpose for which the City's attorney was consulted. Consultant agrees that, even though such privileged communications may be disclosed to Consultant, the City continues to be the holder of the privilege. Consultant agrees to treat such privileged communications as Confidential Information under this Agreement and to claim the privilege and refuse to disclose such communications until notified in writing by the City that the right to claim the privilege has been revoked. 5 (d) The provisions of this section shall survive the termination of this Agreement. Section 12. Default. Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to Consultant. Section 13. Indemnification. Consultant agrees to defend, indemnify, protect and hold harmless City, its City Council members, officers, officials, employees, agents, and volunteers from and against any and all claims, suits, demands, actions, losses, damages, judgments, settlements, penalties, fines, defensive costs or expenses, Including without limitation, interest, attorneys' fees and expert witness fees, or liability of any kind or nature arising out of or attributable to the acts or omissions of Consultant, or Consultant's officers, employees, or agents which in any way arise out of, result from, or are in any way related to the performance or non-performance of this Agreement, excepting only liability arising'out of the sole negligence or willful misconduct of City, its City Council members, officers, officials, employees, agents, or volunteers. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT AND SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION. The obligations in this section are in addition to Consultant's duty to provide insurance and shall not be limited by any limitation on the amount or type of insurance coverage carried by Consultant. Section 1.4. Insurance. (a) Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive General Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Consultant or Consultant's officers, employees, or agents. (b) Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy:or policies of Comprehensive Vehicle Liability insurance covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit, covering any vehicle utilized by Consultant or Consultant's officers, employees, or agents in performing the services required by this Agreement. (c) Consultant agrees to maintain in force at all times during the performance of work under this Agreement workers compensation insurance as required by law. (d) Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Excess Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit. Each Excess Liability Insurance policy shall provide policy coverage and terms at least as broad as those required of the primary insurance and shall provide that such Excess Liability N. Insurance policy will drop down and assume the underlying insurer's obligations and provide coverage in the event the underlying insurer becomes insolvent. (e) Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Professional Liability Insurance (errors and omissions) with minimum limits of Two Million Dollars ($2,000,000), to protect City from any losses sustained through any errors or omissions committed by Consultant or Consultant's officers, employees or agents in performing Serivices required by this Agreement. Further, if the policy is on other than an occurrence basis, Consultant shall maintain in full force and effect such insurance for one year after performance of work under this Agreement is completed. (f) Consultant shall require each of its sub -consultants or sub -contractors to maintain insurance coverage that meets all of the requirements of this Agreement. (g) The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best's Insurance Guide. (h) Consultant agrees that if it does not keep the aforesaid insurance in full force and effect City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may take out the necessary insurance and pay, at Consultant's expense, the premium thereon. (i) At all times during the term of this Agreement, Consultant shall maintain on file with the Risk Manager, a certificate or certificates of insurance, satisfactory to the City Attorney and Risk Manager, along with a copy of the policy declarations page for each policy, showing that the aforesaid policies are in effect in the required amounts. Upon request by City, Consultant shall cause its insurers to issue certified copies of the insurance policies evidencing that the coverage and policy endorsements required under this Agreement arermaintained in force. Consultant shall, prior to commencement of work under this Agreement, file with the Risk Manager, such certificate or certificates and a copy of the policy declarations page for each policy. Q) All of the policies of insurance required by this Agreement shall contain (1) an endorsement naming the City, its City Council members, officers, officials, employees, agents, and volunteers as additional insureds; provided, however, an endorsement naming the City as an additional insured is not required for the Professional Liability Insurance policy, (2) an endorsement providing that the policies cannot be canceled or reduced except with thirty (30) days prior written notice to City, and (3) an endorsement specifically stating that the coverage contained in the policies affords Insurance pursuant to the terms and conditions as set forth In this Agreement. (k) The insurance provided by Consultant shall be primary to any coverage available to City, and any insurance or self-insurance maintained by City, its City Council members, officers, officials, employees, agents, or volunteers shall be excess of Consultant's insurance and shall not contribute with it. The,policies of insurance required by this Agreement shall include provisions for waiver of subrogation. Consultant hereby waives all rights of subrogation against City, its City Council members, officers, officials, employees, agents, and volunteers. 7 (1) Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self -insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses. Section 15. Assignment and Subcontracting. Consultant shall not assign or attempt to assign any portion of this Agreement, or subcontract any required performance hereunder, without the prior written approval of City. Any assignment or subcontract made In violation of this section is invalid and void. Section 16. Arbitration and Venue. Any,dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration in Los Angeles, California. The arbitration shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and Procedures. The arbitrator shall be a retired judge. All decisions of the arbitrator shall be in writing, and the arbitrator shall provide written reasons for their decision. The arbitration decision shall be final and binding on the Parties. Judgment on the award may be entered in any court having jurisdiction pursuant to this Agreement. This clause shall not preclude Parties from seeking provisional remedies in aid of arbitration from a court having jurisdiction pursuant to this Agreement. The exclusive jurisdiction and venue under this Agreement shall be the Superior Court of California, Los Angeles County. Section 17. Attorneys Fees. In the event a dispute, claim or litigation arises regarding this Agreement, the prevailing party shall be entitled to reimbursement for reasonable attorneys fees and actual costs, which may be set by the arbitrators or the court in the same action or in a separate action brought for that purpose, in addition to any other relief which is obtained. Section 18. Governing Law. This Agreement shall be interpreted and enforced according to, and the Parties rights and obligations governed by, the domestic law of the State of California, without regard to its laws regarding choice of applicable law. Section 19. Entire Agreement and Modifications. This Agreement, including attachments incorporated herein by reference, represents the entire integrated agreement and understanding between the Parties, and supersedes all prior or contemporaneous negotiations, representations, agreements, understandings and statements, written or oral. This Agreement may only be modified by a writing signed by both Parties. Section 20. Waiver. The waiver by either party of a breach or default by the other party shall not be deemed a waiver of any different or later breach whether of the same or other covenant or condition; nor shall any delay or omission by either party to exercise any right it may have hereunder operate as a waiver of any breach or default of such a right. The failure of either party to this Agreement to exercise any of its rights under this Agreement does not constitute a breach thereof and shall not be deemed to be a waiver of such rights or a waiver of any subsequent breach. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. Section 21. Force Maieure. Neither party shall be considered in default of any of its obligations under this Agreement when a failure of performance shall be due to an uncontrollable force. The term "uncontrollable force" shall mean flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, federal, state, or municipal EE action, statute, ordinance, or regulation, embargoes of the United States Government or any other government, which by exercise of due diligence such party could not reasonably have been expected to avoid and by exercise of due diligence has been unable to overcome. Either parry rendered unable to fulfill any of its obligations under this Agreement by reason of an uncontrollable force shall give written notice within five (5) business days of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch. Section 22. City Not Obligated -to Third Parties. City shall not be obligated or liable under this Agreement to any party other than Consultant. Section 23. Notices. All notices, approvals, consents and other communications between the Parties shall be in writing, and shall be sent by certified mail (return receipt requested) or other delivery service which provides evidence of delivery, using the address set forth on the Cover Page under "Notice Information - City' or "Notice Information — Consultant," as appropriate, or at such other address as may be furnished by either party to the other in writing. Mailed notices will be deemed communicated as of the day of receipt. Section 24. Cover Paae and Exhibits. The Cover Page and all documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. Section 25. Headings, Headings used in this Agreement are for convenience and ease of reference only and shall not affect the interpretation of the Agreement. Section 26.. Survival of Terms. All of the terms and conditions in this Agreement related to payment, confidentiality, indemnification, dispute resolution and waiver shall survive termination of this Agreement. Section 27. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect, and shall in no way be affected, impaired or Invalidated. Section 28. Authority to Execute This Agreement. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of Consultant and has the authority to bind Consultant -to the performance of its obligations under this Agreement. [Signatures Begin on Next Page). 9 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City and California municipal corporation By. Hilario Gonzales Mayor ATTEST: By Willard G.--Yamaguchi, City Clerk APPROVED AS TO FORM: By Willard G. Yamaguchi, Interim City Attorney N B S, a California corporation 10 EXHIBIT A - EXHIBIT A SCOPE OF SERVICES Consultant. shall perform the following services on behalf of City: complete the work described in the proposal..dated February 9, 2011, a copy of which is attached hereto and incorporated by reference as attached, The City of Vernon currishtly provides police, fire protedtibh and rase' t# services within the boundaries of City. The operational'expertses'for providing these services have traditionally been funded by the general fund -In the'p981, F#Offues from the power plant allowed the general fund to over the cost of pttfviding the services mentioned above, including Class 1 fitb p'rotecti'dn. Howeve`, with an ever changing economic enviromrnent and the corresponding drop in revenues,'the general fund is no longer able to caVer the operetlonal axpense's and mahtain current levels of service. The City has requested a review of the' City's revenue base to identify funding alternatives and assistance with the iiriplerh'etitation of solutions to maintain current levels of service needed by the business community. Upon the completion of the review of the City's revenue base, the City will receive a Financial Modeling Report. This report will provide appropriate recommendations for revenue generation, based on the comparison of various applicable solutions ` and rate methodologies. In addition to the Financial Modeling Report, the City will NBS has provided high also be provided with a detailed Implementation plan and all documentatioh and quality service to our District assistance required in completing the ptoposed recommendation which will most for nearly a decade with likely Include a utility user tax and an assessment and/or special tax district respect to services involving formation. our standby assessment districts. From planning and This proposal describes our approach to this project based upon our Project documentation preparation to Team's experience in the: labels and mailings, as liaison between financial Development of special financing tools based upon special and general benefit advisors, legal counsel and Knowledge of Proposition 218 and experience in conducting property owner the County of Riverside Tax mailed ballot proceedings and registered voter elections Assessor office, etc..., your staff is always available to answer questions and By virtue ofzur experience and understanding of the unique needs of this deliver. endeavor, we present the following work plan. Karen Hornbarger IWORK PLAN District Secretary Lake Hemet Municipal The following outline describes the specific tasks to be performed by NBS and Water District summarizes key deliverables related to one or more, but not limited to, the following funding solutions: • Community Facilities District --Emphasis on public safety. + Fire Service Assessment District —Emphasis -on the Fire DepartMent's Class I Rating. • Parcel Tax — A citywide parcel tax to replace the current warehousing parcel tax. • Business Improvement District —.Emphasis on public safety. • Utility User Tax — A tax on all utilities. Phase I — Working with the City to Obtain Information Project Management NBS will work closely with the City to review the City's general fund budget -with emphasis on the Police Department and Fire Department (including EMS) budgets. During'this process NBS will provide sufficient project management, administration; Proposal'to Provide Services — City "of Vernon ' Prepared by NBS — February 9, 2011 and procedural elements enabling clear and complete delivery of tequited wdrk products. Sub -tasks include: • Data collection, analysis, validation, and interpretation including pollc8, fire and EMS_ budget data, current and projected revenues, etc. • Meeting attendance. Consultants will plan for two orlsite meetings with the City. These events are intended to accommodate progress points with City 5tgff. Project management, including coordination of conference calls, budget monitoring, and preparation of regular progress reports, etc. Phase 19 — Review of City's Revenue Base Budget Analysis NBS will prepare a report detailing the City's current and projected revenues as compared to projected expenditures from the general fund with particular emphasis nn current and projected costs for police protection, fire protection and rescue services. Sub -tasks include: 41 Acquisition and interpretation of current budgets and historical expenditures attributable to police protection, fire protection and rescue operations from the City, including direct, indirect, and allocated items. • Acquisition and interpretation of any documented levels of service for police protection, fire protection and rescue services (and related activities). Included in this effort will be organizational structure and core services, as available. • Acquisition and summary of any City -tracked data-describing4ail volume and geographic origination for police protection, fire protection and rescue services. • Acquisition and summary. of externally -available data in service territories, including parcel size, land use, and assessed valuation. • Identification of functional costs of service within the master organization, such a: police response/operations, fire response/operations, emergency responseloperations, fire prevention, etc. Acknowledgement of other revenue sources, such as fire prevention tegulatory fees, fire/emergency response billings, etc. Preparation of a report describing -the analytical process and findings of the review of the City's revenue base and costs with emphasis on police and fire. io Preparation of.presentation materials and attendance at one meeting of the City Council (or its designated subcommittee) to review findings. Phase 2 — Recommendation for Alternative Funding Strategies Financial Modeling NBS will present a report outlining which funding options will best meet the fiscal needs of the City, Including findings and recommendations. The report -will ;include, but n,ot.11mlterl to, the following: • The current and future revenue base needed to sustain the general fund, The City will work with NBS to determine the need. Proposal to Provide Services — City of Vernon 2' Prepared by NBS — February 8, 2011 The report will establish a rate schedule and total revenues to be generated from the funding program(s). The estimated financial impact on various business Industries in comparlbon with the surrbuhyding cities. • Timeframes for implementation and any statute requirements to Initiate the funding program(s). • Based on NBS' analysis and, potential revenue, NBS will provide recommendations on which funding program(s) will best fit the needs and expectations of the City. In addition and/or in more detail, the report and sub -tasks include: • Review of current revenues to validate the true current revenue source • Identification and contrasting of various funding sources • Determination of viable funding levels through financial modeling and tax -base analysis, accounting for assessed value of property, current tax amount and relevant sharing of property tax bill, ownership, types of land use, income and property ownership composition • Establishment of a recommended funding option • Discussion of political viability of sources • Discussion of legal restrictions on the use of different sources • Discussion of legislative changes associated with implementation of each source • Estimation of timefromes for implementation of each source • Discussion of the reliability of each source • Clear recommendation of a specific approach justified by the aforementioned tasks • Formal documentation of analytical findings and recommendations and circulation to City staff (Financial Modeling Report) • Presentation of findings and recommendations Phase 3 - Prepare Outreach Materials Required for Adopting Implementation Strategy Education and Outreach Plan NBS will develop strategies to educate the community on the funding program(s), NBS will prepare a -report describing approaches to sharing information with the public to enable the successful implementation of the funding strategies. Sub - tasks include: • Development of a communication plan, Including specific benchmarks/mettles to measure incremental progress toward goals • Identification of tactical steps for accountability and clear planning/predictabillty • Recommendation of a rnedia strategy to create awareness of the central "problem," and then communication of the proposed solution Proposal to Provide Services — Cityof Vernon 3 Prepared by NBS — February 9, 2011 + Recommendations of key targets for communicatlon in the public au'dierice, Identification of key allies, and steps to neutralile opposition 0 Formal documentation of findings; and°recommendations and circulation to City staff and finalization upon receipt of commentary Phase 4 — bevglop/Modify Existing Ordinances and Itnplornerit Ulutidns Outreach and Implementation/Formation NOS will assist the City In developing.or modifying existing oidihances that pertain to certain funding programs (and/or applicable Resolutions and Stuff Reports). NBS will perform tasks aiding the implementation of a funding program which will most likely Include, but not limited to, one or more of the following options: • Community Facilities District— Emphasis on public safety, • Fire Service Assessment District — Emphasis on the Fire Department's Class 1 Rating. • Parcel Tax - A citywide parcel tax to replace the current warehousing parcel tax. • Business Improvement District — Emphasis on -public safety. • Utility User Tax — A tax on all utilities. The purpose of this task is simply to provide the City with a current cost estimate for full-scale services. However, this cost estimate may need to be revisited based on the outcome of the previous phases. A complete work plan.and scope of services will also be provided based on the outcome of the previous phases. Proposal to Provide Services — City of Vemon Prepared by NBS — February 9, 2011 iSCHEDULB FOR CO-MPLETJONj The following is a tentative schedule for the tasks mentioned previously. NBS will meet with the City prior to project commencement in order to discuss rrfiiestones and to finalize the project schedule: Thning Task Phase 1A _ Working with the City to..0'btain. DOOM Information Project Management 4h—t3C1 days, Phase fS— Rbvilew of City's Revenue Base Budget Analysis h 2 R nd ti 4- Alt r tive 44 NSS has done an exemplary job in handling 30 - O days: 1-,— e ass comme a on r a na Funding Strategies Financial Modeling much of our City''s Phase 3 — Prepare Outreach Materials Roqui'red complex district work, 30 days, for Adopting Implementation Strategy allowing our staff to Education and Outreach Plan concentrate on their own essential tasks, Their analysts are extremely Phase 4 — Develop/Modify Existing Ordinances knowledgeable, quick to - ii moriths= and Implement Solutions respond, and are a Outreach and Implementation/Formation pleasure to work with. 77 Betsy St. John Director of Finance and Administration Services h Proposal to Provide Servibes — City of Vernon- Prepared by NBS — February 9, 7011 EXHIBIT B EXHIBIT B FEES EN NSS,has prbvide,a the fallowing ebst.prppb.sal based on the information provided end fur untlets#an°dlrig of the overall 1pv81,ot effort required: Should iViS be selected as tYse rnbst qualifi ii firrtr tU:Work with the City, we will endeavor to sat u a fee:atid billing scfiedtiie'that:ls;commens,uratp ti'Rh iti tasks required that mo$ti the needs_bf'the City. Consulting Phase 1A - Project Management................................................................$6,000 (a) Phase 1 B — Budget Analysis .................. ........................ I.......... I .......... ..... $12,500 (s) Phase 2 - Financial Modeling.....................................................:.............$21,000 (a) Phase 3 - Education and Outreach Plan.......................not to exceed $19,500 (a) (b) Phase 4 —Outreach and Implementation/Formation ..... not to exceed $84,500 (a) (b) a. Excludes out-of-pocket expenses (see below) Quality is paramount in b. Assumes the implementation of two solutions the services you provide, Expenses and we have faith in your professional abilities, OustQ ary.out-cif-pocitet expenses will be billed to the City at actual cost to NBS. accuracy, Urnellnes, and Thaw: expenses; rosy include, but not be limited to travel, mailing fulfillment, postage, overall integrity. tolephone, reproduction, materials, lodging, meals and various third -patty charges for �j data, maps, and recording fees. John M. Donoghue Financial Analyst Additional Services City of Folsom The following table shows our current hourly rates. Additional services authorized by the City but not included in the scope of services will be billed at this rate or the then applicable hourly rate. Terms Proposal to Provide Services — City of Vernon 17 Prepared by NBS — February 9, 2011 OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 March 23, 2011 Pablo Perez Director NBS 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Re: Consulting Services Agreement Dear Mr. Perez: The insurance requirements have been met. Transmitted herewith is a fully executed agreement, as referenced above, approved by City Council on March 15, 2011, through Resolution No. 2011-39. If you have any questions regarding this matter, please call Mr. Rory Burnett at 323/583-8811 ext. 262. Very, ruly yours, WILLARD G. Y GU I City Clerk WGY:dj Enclosure c: Purchasing Department Resolution No. 2011-39 Agreement File No. 11-030 E#fusivefy IndustriaC CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND N B S TO REVIEW REVENUE BASE, PROVIDE FUNDING ALTERNATIVES AND IMPLEMENTATION OF FUNDING SOLUTIONS Consultant: Responsible Principal of Consultant: Notice Information - Consultant: Notice Information - City: Commencement Date: Termination Date: Consideration: COVER PAGE N B S Pablo Perez, Director N B S 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Attention: Pablo Perez Phone: 800-676-7516 Facsimile: 951-296-1998 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Mark Whitworth, City Administrator Telephone: (323) 583-8811 ext. 398 Facsimile: (323) 826-1422 March 15, 2011 March 15, 2012, unless extended pursuant to Section 1 As described in Exhibit B Records Retention .Period 3 years CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND N B S TO REVIEW REVENUE BASE, PROVIDE FUNDING ALTERNATIVES AND IMPLEMENTATION OF FUNDING SOLUTIONS THIS AGREEMENT is made and entered into as of March 15, 2011 ("Effective Date"), by and between the City of Vernon, a. California charter City and California municipal corporation ("City"), and N B S, a California corporation ("Consultant"). City and Consultant are collectively referred to herein as the "Parties." RECITALS A. City desires to have certain revenue consultant services, provided as more fully set forth in the Scope of Services, attached hereto and incorporated herein as Exhibit A. B. Consultant represents it is qualified and capable of furnishing the labor, materials, and expertise necessary to perform such services in accordance with the terms and conditions set forth in this Agreement. NOW, THEREFORE, the Parties agree as follows: Section 1. Term and Time of Performance. (a) This Agreement shall commence upon the Commencement Date listed on the Cover Page, and shall remain and continue in effect through the Termination Date listed on the Cover Page, unless sooner terminated pursuant to the provisions of this Agreement. City may renew this Agreement on a year-to-year basis at its discretion. Any services performed prior to the Effective Date listed above, but on or after the Commencement Date, shall for all purposes be deemed to have been performed pursuant to this Agreement, subject to the terms and conditions hereof. (b) In the event that City renews this Agreement, Consultant may submit a proposal to increase its rates no later than thirty (30) days after receiving notice of City's intent to renew. Any increase in rates must be approved by City before such increase can take effect. If City fails to approve the proposed increase within. thirty (30) days of receipt, Consultant may terminate the renewal by giving thirty (30) days written notice. Section 2. Performance. (a) Consultant shall perform the services and tasks described and set forth in the Scope of Services, Exhibit A ("Services"). Additional services must be mutually agreed upon in writing signed by both Parties prior to performance of those additional services. (b) Consultant shall at all times faithfully, competently and to the best of its ability, experience, and talent, perform all Services under this Agreement in accordance with the standard of care and skill ordinarily exercised by members of the profession currently practicing in the same locality as the City under similar circumstances and in a manner reasonably satisfactory to City. Consultant shall at all times comply with the highest ethical standards when performing Services for the City. f! (c) Consultant shall keep itself informed of all Focal, state, and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its Services pursuant to this Agreement. Consultant shall at all times observe and comply with all such ordinances, laws and regulations. City, and its City Council members, officers, officials, employees, agents or volunteers shall not be liable at law or in equity occasioned by failure of Consultant to comply with this section. (d) Consultant will not be compensated for any work performed not specified in Exhibit A unless City authorizes such work in advance and in writing. Section 3. Compensation. (a) City•agrees to compensate Consultant, and Consultant agrees to accept in full satisfaction for the Services required by this Agreement, the hourly rate and expense reimbursement set forth in Exhibit B ("Hourly Rate and Expenses"). (b) Consultant shall be entitled to reimbursement only for those expenses expressly set forth in Exhibit B. Any expenses incurred by Consultant that are not expressly authorized by this Agreement will.not be reimbursed by City. Section 4. Method of Payment. (a) Invoices. Consultant shall submit invoices monthly for Services and expenses. Invoices shall include the month for which the Services were provided, the dates of such services, and a description of the Services provided for that billing period. Each invoice shall include copies of timesheets, if any, and other supporting documents as City may require. (b) Payments by City. Payments of each invoice shall be made by City within thirty (30) days following receipt of each invoice as to all non -disputed fees. If City disputes any of Consultant's fees, it shall give written notice to Consultant within thirty (30) days of receipt of the disputed invoice. Any amounts in dispute shall be withheld until resolution. Section 5. Personnel. All persons performing Services shall have all the necessary technical expertise, permits, professional licenses, certificates, training, and other qualifications required by this Agreement or other applicable laws. Consultant shall provide City with said permits, licenses, and certificates at the request of City. Section 6. Access. Consultant shall comply with all reasonable access and other restrictions that City may impose. No access to City property for performance of the Services shall be permitted prior to "delivery to City of proof of insurance paid and maintained by Consultant. Section 7. Consultant's Duties and Representations. Consultant represents, covenants and agrees as follows: (a) There are no obligations, commitments, or impediments of any kind that will Limit or prevent performance of the Services. (b) Consultant presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the Services K contemplated by this Agreement. No person having any such interest shall be employed by or be associated with Consultant. (c) There is no litigation pending against Consultant and Consultant is not the subject of any criminal investigation or proceeding, and neither Consultant nor its personnel, to its actual knowledge, have been convicted of a felony. Section 8. Independent Consultant. (a) Consultant is and shall at all times remain, as to City, a wholly independent consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor•any of its City Council members, officers, officials, employees, agents, or volunteers shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents except as forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, officials, employees, agents, or volunteers of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. (b) No employee benefits shall be available to Consultant or its officers, employees, or agents in connection with the performance of this Agreement. Except for Consideration paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for the City. City shall not be liable for compensation or indemnification to Consultant or its officers, employees, or agents for injury or sickness arising out of performing services hereunder. (c) Consultant agrees to pay and be responsible for paying all Federal, State and local taxes for compensation received by Consultant from City while performing services for City. Section 9. Termination. (a) Termination Right. Either Party may, at any time, for any reason or for no reason, with or without cause, terminate this Agreement, by serving upon the other Party at least fifteen (15) days prior written notice. Upon receipt of such notice, Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. (b) Payment Upon Termination. In the event this Agreement is terminated without cause pursuant to this section, City shall pay Consultant for Services performed up to the time of termination on an hourly basis for Services rendered and Consultant shall submit an invoice to City as required under this Agreement. Consultant shall have no other claim against City by reason of such termination, including any claim for compensation. (c) Actions Subsequent to Termination. In the event of termination of this Agreement, Consultant shall deliver all Confidential Information, as defined in Section 11 below, to City within thirty (30) days after the termination of this Agreement. Consultant shall also take all such other action as City reasonably requires and shall cooperate with City to effectuate an orderly and systematic termination of Consultant's duties and activities hereunder. 4 (d) All of the terms and conditions in the Agreement related to payment, confidentiality, indemnification, dispute resolution and waiver shall Survive termination of this Agreement. Section 10. Limitation of City's Liability. City's liability on any kind of claim for any loss or damage arising out of, in connection with, or resulting from this Agreement, shall in no case exceed the amount that is owed to Consultant for the performance of the Services that have been requested pursuant to this Agreement. In no event shall City be liable for anticipated profits or for incidental, consequential or punitive damages. City shall not be liable for penalties of any description. ._Section 11. Confidential Status; Disclosure of Information. (a) Confidential Status; Disclosure of Information. All data, customer information, business practices, business methods, privileged information, privileged communications, trade secrets, financial statements, floor plans, designs, maps, surveys, drawings, models, reports, correspondence, logs, documents, materials or other information developed or created by Consultant, received by Consultant, revealed to Consultant, or provided to Consultant for the performance of this Agreement are deemed confidential and shall not be disclosed by Consultant to any third party without City's prior written consent ("Confidential Information"). City shall grant consent if disclosure is legally required. All Confidential Information shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. City may disclose to third parties any Confidential Information at its sole discretion. (b) Consultant's obligation not to disclose any Confidential Information shall not extend to information that: i. was in the possession of, or was rightfully known by, the Consultant without an obligation to maintain its confidentiality prior to receipt from City; ii. is or becomes generally known to the public without violation of this Agreement; iii. is obtained without an obligation of confidentiality by the Consultant in good faith from a third party having the right to disclose it without an obligation of confidentiality; or iv. information which is required to be disclosed pursuant to any court order or directive having the force of law. (c) Consultant acknowledges that City's attorney may be advising City on matters relating to the Services performed pursuant to this Agreement and such privileged communications may be disclosed to Consultant to accomplish the purpose for which the City's attorney was consulted. Consultant agrees that, even though such privileged communications may be disclosed to Consultant, the City continues to be the holder of the privilege. Consultant agrees to treat such privileged communications as Confidential Information under this Agreement and to claim the privilege and refuse to disclose such communications until notified in writing by the City that the right to claim the privilege has been revoked. 5 (d) The provisions of this section shall survive the termination of this Agreement. Section 12. Default. Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to Consultant. Section 13. Indemnification. Consultant agrees to defend, indemnify, protect and hold harmless City, its City Council members, officers, officials, employees, agents, and volunteers from and against any.and.all claims, suits, demands, actions, losses, damages, judgments, settlements, penalties, fines, defensive costs or expenses, including without limitation, interest, attorneys' fees and expert witness fees, or liability of any kind or nature arising out of or attributable to the acts or omissions of Consultant, or Consultant's officers, employees, or agents which in any way arise out of, result from, or are in any way related to the performance or non-performance of this Agreement, excepting only liability arising'out of the sole negligence or willful misconduct of City, its City Council members, officers, officials, employees, agents, or volunteers. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT AND SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION. The obligations in this section are in addition to Consultant's duty to provide insurance and shall not be limited by any limitation on the amount or type of insurance coverage carried by Consultant. Section 14. Insurance. (a) Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive General Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Consultant or Consultant's officers, employees, or agents. (b) Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policyor policies of Comprehensive Vehicle Liability insurance covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit, covering any vehicle utilized by Consultant or Consultant's officers, employees, or agents in performing the services required by this Agreement, (c) Consultant agrees to maintain in force at all times during the performance of work under this Agreement workers compensation insurance as required by law.. (d) Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Excess Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit. Each Excess Liability Insurance policy shall provide policy coverage and terms at least as broad as those required of the primary insurance and shall provide that such Excess Liability n Insurance policy will drop down and assume the underlying insurer's obligations and provide coverage in the event the underlying insurer becomes insolvent. (e) Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Professional Liability Insurance (errors and omissions) with minimum limits of Two Million Dollars ($2,000,000), to protect City from any losses sustained through any errors or omissions committed by Consultant or Consultant's officers, employees or agents in performing Serivices required by this Agreement. Further, if the policy is on other than an occurrence basis, Consultant shall maintain in full force and effect such insurance for one year after performance of work under this Agreement is completed. (f) Consultant shall require each of its sub -consultants or sub -contractors to maintain insurance coverage that meets all of the requirements of this Agreement. (g) The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best's Insurance Guide. (h) Consultant agrees that if it does not keep the aforesaid insurance in full force and effect City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may take out the necessary insurance and pay, at Consultant's expense, the premium thereon. (i) At all times during the term of this Agreement, Consultant shall maintain on file with the Risk Manager, a certificate or certificates of insurance, satisfactory to the City Attorney and Risk Manager, along with a copy of the policy declarations page for each policy, showing that the aforesaid policies are in effect in the required amounts. Upon request by City, Consultant shall cause its insurers to issue certified copies of the insurance policies evidencing that the coverage and policy endorsements required under this Agreement are maintained in force. Consultant shall, prior to commencement of work under this Agreement, file with the Risk Manager, such certificate or certificates and a copy of the policy declarations page for each policy. 0) All of the policies of insurance required by this Agreement shall contain (1) an endorsement naming the City, its City Council members, officers, officials, employees, agents, and volunteers as additional insureds; provided, however, an endorsement naming the City as an additional insured is not required for the Professional Liability Insurance policy, (2) an endorsement providing that the policies cannot be canceled or reduced except with thirty (30) days prior written notice to City, and (3) an endorsement specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (k) The insurance provided by Consultant shall be primary to any coverage available to. City, and any insurance or self-insurance maintained by City, its City Council members, officers, officials, employees, agents, or volunteers shall be excess of Consultant's insurance and shall not contribute. with it. The,policies of insurance required by this Agreement shall include provisions for waiver of subrogation. Consultant hereby waives all rights of subrogation against City, its City Council members, officers, officials, employees, agents, and volunteers. 7 (1) Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self -insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses. Section 15. Assignment and Subcontracting. Consultant shall not assign or attempt to assign any portion of this Agreement, or subcontract any required performance hereunder, without the prior written approval of City. Any assignment or subcontract made in violation of this section is invalid and void. Section 16. Arbitration and Venue. Any.dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration in Los Angeles, California.. The arbitration shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and Procedures. The arbitrator shall be a retired judge. All decisions of the arbitrator shall be in writing, and the arbitrator shall provide written reasons for their decision. The arbitration decision shall be final and binding on the Parties. Judgment on the award may be entered in any court having jurisdiction pursuant to this Agreement. This clause shall not preclude Parties from seeking provisional remedies in aid of arbitration from a court having jurisdiction pursuant to this Agreement. The exclusive jurisdiction and venue under this Agreement shall be the Superior Court of California, Los Angeles County. Section 17. Attorneys Fees. In the event a dispute, claim or litigation arises regarding this Agreement, the prevailing party shall be entitled to reimbursement for reasonable attorneys fees and actual costs, which may be set by the arbitrators or the court in the same action or in a separate action brought for that purpose, in addition.to any other relief which is obtained. Section 18. Governing Law. This Agreement shall be interpreted and enforced according,to, and the Parties rights and obligations governed by, the domestic law of the State of California, without regard to its laws regarding choice of applicable law. Section 19. Entire Agreement and Modifications. This Agreement, including attachments incorporated herein by reference, represents the entire integrated agreement and understanding between the Parties, and supersedes all prior or contemporaneous negotiations, representations, agreements, understandings and statements, written or oral. This Agreement may only be modified by a writing signed by both Parties. Section 20. Waiver. The waiver by either party of a breach or default by the other party shall not be deemed a waiver of any different or later breach whether of the same or other covenant or condition; nor shall any delay or omission by either party to exercise any right it may have hereunder operate as a waiver of any breach or default of such a right. The failure of either party to this Agreement to exercise any of its rights under this Agreement does not constitute a breach thereof and shall not be deemed to be a waiver of such rights or a waiver of any subsequent breach. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. Section 21. Force Majeure. Neither party shall be considered in default of any of its obligations under this Agreement when a failure of performance shall be due to an uncontrollable force. The term "uncontrollable force" shall mean flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, federal, state, or municipal action, statute, ordinance, or regulation, embargoes of the United States Government or any other government, which by exercise of due diligence such party could not reasonably have been expected to avoid and by exercise of due diligence has been unable to overcome. Either party rendered unable to fulfill any of its obligations under this Agreement by reason of an uncontrollable force shall give written notice within five (5) business days of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch. Section 22. City Not Obligated to Third Parties. City shall not be obligated or liable under this Agreement to any party other than Consultant. Section 23. Notices. All notices, approvals, consents and other communications between the Parties shall be in writing, and shall be sent by certified mail (return receipt requested) or other delivery service which provides evidence of delivery, using the address set forth on the Cover Page under "Notice Information City" or "Notice Information — Consultant, as appropriate, or at such other address as may be furnished by either party to the other in writing. Mailed notices will be deemed communicated as of the day of receipt. Section 24. Cover Page and Exhibits. The Cover Page and all documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. Section 25. Headings. Headings used in this Agreement are for convenience and ease of reference only and shall not affect the interpretation of the Agreement. Section 26. Survival of Terms. All of the terms and conditions in this Agreement related to payment, confidentiality, indemnification, dispute resolution and waiver shall survive termination of this Agreement. Section 27. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect, and shall in no way be affected, impaired or invalidated. Section 28. Authority to Execute This Agreement. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of Consultant and has the authority to bind Consultant to the performance of its obligations under this Agreement. [Signatures Begin on Next Page]. 9 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City and California municipal corporation By: Hilario Gonzales Mayor ATTEST: By: Willard G. Yamag i, Cityg6rk APPROVED AS TO FORM: By: "YYama , Interim City Att y N B S, a California corporation Name: AWH4 Fe. hENlnr k Title: ?Xeswewr 4- eco a- By: --J� -J'/� Name: M11H46C f-t-"7/Vt& Title: CFCK C M fc�f EXHIBIT A SCOPE OF SERVICES Consultant shall perform the following services on behalf of City: complete the work described in the proposaLdated February 9, 2011, a copy of which is attached hereto and incorporated by reference as attached. GG NBS has provided high quality service to our District for nearly a decade with respect to services involving our standby assessment districts. From planning and documentation preparation to labels and mailings, as liaison between_ financial advisors, legal counsel and the County of Riverside Tax Assessor office, etc..., your staff is always available to answer questions and deliver. Karen Hornbarger District Secretary Lake Hemet Municipal Water District ]BACKGROUND AND EXECUTIVE SUMMARY] The City of Vernon currently provides police, fire protection and rescu'a services within the boundaries of City. The operational expenses`for providing these services have traditionally been funded by the general funds -In the past, revetues from the power plant allowed the general fund to diver the coat df pttividing the services mentioned above, including Class 1 fire protection: However, with an ever changing economic environment and the Corresponding drop in revenues, the general fund is no longer able to cover the operational expensesand maintain current levels of service. The City has requested a review of the Ciity's revenue base to identify funding alternatives and assistance with the impletrithtation of solutions to maintain current levels of service needed by the business community. Upon the completion of the review of the.City's revenue base, the City will receive a Financial Modeling Report. This report will provide appropriate recommendations for revenue generation, based on the comparison of various applicable solutions and rate methodologies. In addition to the Financial Modeling Report; the City will also be provided with a detailed implementation plan and all documentation and assistance required in completing the proposed recommendation which will most likely include a utility user tax and an assessment and/or special tax district formation. This proposal describes our approach to this project based upon our Project Team's experience in the: • Development of special financing tools based upon special and general benefit • Knowledge of Proposition 218 and experience in conducting property owner mailed ballot proceedings and registered voter elections By virtue of our experience and understanding of the unique needs of this endeavor, we present the following work plan. jWORK PLAN The following outline describes the specific tasks to be performed by NBS and summarizes key deliverables related to one or more, but. not limited to, the following funding solutions: • Community Facilities District --Emphasis on public safety. + Fire Service Assessment District — Emphasis -on the Fire Department's Class 1 Rating. • Parcel Tax — A citywide parcel tax to replace the current warehousing parcel tax. • Business Improvement District —Emphasis on public safety. • Utility User Tax — A tax on all utilities. Phase I — Working with the City to Obtain Information Project Management NBS will work closely with the City to review the City's general fund budget with emphasis on the Police Department and Fire Department (including EMS) budgets. During'this process NBS will provide sufficient project management, administration; Proposal to Provide Services — City of Vernon Prepared by NBS — February 9, 2011 and procedural elements enabling clear and complete delivery of required work products. Sub -tasks include: • Data collection, analysis, validation, and interpretation including police, fire and EMS budget data, current and projected revenues, etc. • Meeting attendance. Consultants will plan for two onsite meetings with the City. These events are intended to accommodate progress points with City staff. • Project management, including coordination of conference calls, budget monitoring, and preparation of regular progress reports, etc. Phase 18 — Review of City's Revenue Base Budget Analysis NBS will prepare a report detailing the City's current and projected revenues as compared to projected expenditures from the general fund with particular emphasis on current and projected costs for police protection, fire protection and rescue services. Sub -tasks include: • Acquisition and interpretation of current budgets and historical expenditures attributable to police protection, fire protection and rescue operations from the City, including direct, indirect, and allocated items. • Acquisition and interpretation of any documented levels of service for police protection, fire protection and rescue services (and related activities). Included in this effort will be organizational structure and core services, as available. • Acquisition and summary of any City -tracked data describing -call volume and geographic origination for police protection, fire protection and rescue services. • Acquisition andsummary of externally -available data_in service territories, including parcel size, land use, and assessed valuation. • Identification of functional costs of service within the master organization, such a police response/operations, fire response/operations, emergency response/operations, fire prevention, etc. • Acknowledgement of other revenue sources, such as fire prevention regulatory fees, fire/emergency response billings, etc. • Preparation of a report describing the analytical ,process and findings of the review of the City's revenue base and costs with emphasis on police and fire. • Preparation of presentation materials and attendance at one meeting of the City Council (or its designated subcommittee) to review findings. Phase 2 — Recommendation for Alternative Funding Strategies Financial Modeling NBS will present a report outlining which funding options will best meet the fiscal needs of the City, including findings and recommendations. The report -will Include, but not.limited to, the following: • The current and future revenue base needed to sustain the general fund. The City will work with NBS to determine the need. Proposal to Provide Services - City of Vernon Prepared by NBS — February 9, 2011 • The report will establish a rate schedule and total revenues to be generated from the funding program(s). • 'the estimated financial impact on various business industries in comparison with the surrounding cities. • Timeframes for implementation 'and any statute requirements to initiate the funding program(s). • Based on NBS' analysis and potential revenue, NBS will provide recommendations on which funding programs) will best fit the needs and expectations of the City. In addition and/or in more detail, the report and sub -tasks include: • Review of current revenues to validate the true current revenue source • Identification and contrasting of various funding sources • Determination of viable funding levels through financial modeling and tax -base analysis, accounting for assessed value of property, current tax amount and relevant sharing of property tax bill, ownership, types of land use, income and property ownership composition • Establishment of a recommended funding option • Discussion of political viability of sources • Discussion of legal restrictions on the use of different sources • Discussion of legislative changes associated with implementation of each source • Estimation of timeframes for implementation of each source • Discussion of the reliability of each source • Clear recommendation of a specific approach justified by the aforementioned tasks • Formal documentation of analytical findings and recommendations and circulation to City staff (Financial Modeling Report) • Presentation of findings and recommendations Phase 3 — Prepare Outreach Materials Required for Adopting Impteme`ritation Strategy Education and Outreach Plan NBS will develop strategies to educate the community on the funding program(s). NBS Will prepare a report describing approaches to sharing information with the public to enable the successful implementation of the funding strategies. Sub - tasks include: • Development of a communication plan, including specific benchmarks/metrics to measure incremental progress toward goals • Identification of tactical steps for accountability and clear planning/predictability • Recommendation of a media strategy to create awareness of the central "problem," and then communication of the proposed solution Proposal to Provide Services — City of Vernon Prepared by NBS — February 9, 2011 3 • Recommendations of key targets for communication in the public audience, identification of key allies, and steps to neutralize opposition • Formal documentation of findings. and recommendations and circulation to City staff and finalization upon receipt of commentary Phase 4 — bevelop/Modify Existing Ordinances and Implement Sblutldns Outreach and Implementation/Formation NBS will assist the City in developing or modifying existing ordinances that pertain to certain funding programs (and/or applicable Resolutions and Staff Reports). NBS will perform tasks aiding the implementation of a funding program which will most. likely include, but not limited to, one or more of the following options: • Community Facilities District — Emphasis on public safety, • Fire Service Assessment District — Emphasis on the Fire Department's Class 1 Rating._ • Parcel Tax — A citywide parcel tax to replace the current warehousing parcel tax. • Business Improvement District — Emphasis on public safety. • Utility User Tax — A tax on all utilities. The purpose of this task is simply to provide the City with a current cost estimate for full-scale services. However, this cost estimate may need to be revisited based on the outcome of the previous phases. A complete work plan.and scope of services will also be provided based on the outcome of the previous phases. Proposal to Provide Services — City of Vernon Prepared by NBS — February 9, 2011 GG NBS has done an exemplary job in handling much of our Citys complex district work, allowing our staff to concentrate on their own essential tasks. Their analysts are extremely knowledgeable, quick to respond, and are a pleasure to work with. 15. Betsy St. John Director of Finance and Administration Services JSCHEDULE FOR COMPLETION1 The following is a tentative schedule for the tasks mentioned previously. NBS will meet with the City prior to project commencement in order to discuss milestones and to finalize the project Schedule: .Timing Task, Phase 1A _ Working with the City to Obtain Ongoing information Project Management 45 — 60 days Phase 10 — Review of City's Revenue Base Budget Analysis Phase 2 — Recommendation for Alternative 30 — 45 days Funding Strategies Financial Modeling Phase 3 — Prepare Outreach Materials Requited 30 — 45 days for Adopting Implementation Strategy Education and Outreach Plan Phase 4 — Develop%Modify Existing Ordinances -4 --8 months and Implement Solutions Outreach and. implementation/Formation Proposal to Provide Services — City of Vernon Prepared by NBS — February 9, 2011 EXHIBIT B FEES GG Quality is paramount in the services you provide, and we have faith in your professional abilities, accuracy, timelines, and overall integrity. �I John M.Donoghue Financial Analyst City of Folsom [PROPOSED FBES1 NBS has provided the following cost proposal based on the information provided and our understanding of the overall level of effort required. Should NBS be selected as the most qualified firm to work with the City, we will endeavor to set up a fee and billing schedule that is commensurate with the tasks required that meets the needs of the City. Consulting Phase 1A - Project Management..................................................... :......... $6,006 (a) Phase 1 B — Budget Analysis....................................................... ........ $12,500 (a) Phase 2 Financial Modeling .......... .... ........................... ............$21,000 (a) Phase 3 - Education and Outreach Plan ....................... not to exceed $19,500 (a) (b) Phase 4 Outreach and Implementation/Formation .....not to exceed $84,500 (a) (b) a. ,Excludes out -of. -pocket expenses (see below) b. Assumes the implementation of two solutions Expenses Customary out-of-pocket expenses will be billed to the City at actual cost to NBS. These expenses may include, but not be limited to travel, mailing fulfillment, postage, telephone, reproduction, materials, lodging, meals and various third -party charges for data, maps, and recording fees. Additional Services The following table shows our current hourly rates. Additional services authorized by the City but not included in the scope of services will be billed at this rate or the then applicable hourly rate. T I Hourly Rate Director $ 100 Senior Consultant/Programmer 150 Engineer 140 Consultant 130 Analyst 100 Clerical/Support 55 Terms Consulting fees will be invoiced on a monthly basis as tasks are completed. Expenses will be itemized and included in the next invoice. If the.project is prematurely terminated by either party, NBS shall receive payment for work completed. "Payment shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days simple interest will begin to accrue at the rate of 1.5% per month. Either party can cancel administration contracts with 30 days written notice. Proposal to Provide Services - City of Vernon Prepared by NBS — February 9, 2011 17 Page 1 of 1 Juarez, Debbie From: Mermis, Michelle Sent: Wednesday, March 23, 2011 1:11 PM To: Juarez, Debbie Subject: NBS Consulting Insurance has been approved. 5Wichefre 914ermis City of Vernon Risk9Kanagement 323-583-8811 ext. 812 3/23/2011 e r �G RECEIVED MAR o $ 2a�1�� ap� MAR 0 8 2011 CLERKS t1�`( _ CITY ADMINISTRATION STAFF REPORT FINANCE DEPARTMENT DATE: March 8, 2011 TO: Mark Whitworth, City Administrator FROM: Rory Burnett Finance Director') RE: REVENUE CONSULTANT BACKGROUND: City of Vernon's total expenditures currently exceed total revenues. Due to the current state of the national economy, revenues are not expected to grow substantially in the near future. In order to bring expenditures and revenues into balance, Finance Staff was directed to seek out several experienced revenue consultants to review the City's revenue base and provide alternatives to increase revenues. Separate meetings were held with three consultants: Revenue & Cost Specialist, David Taussig & Associates (DTA) and NBS. The meetings were attended by the Finance, Health, Community Service Directors, Interim Police Chief Assistant Fire Chief, City Clerk, and various staff members. From the meetings it was determined that DTA and NBS had more experience in assisting the City and a cost proposal/general scope of work was requested from the two consultants. Attached, are their submitted cost proposals. RECOMMENDATION: It is my recommendation City Council approves a consulting service agreement with NBS to carry out the following Phases: Phase I (Working with the City to Obtaining Information - Project Management) Phase 113 (Review of City's Revenue Base — Budget Analysis) Phase 2 (Recommendation for Alternative Funding Strategies — Financial Modeling) Once Phase IA Phase 2 have been completed NBS will make a presentation of their finding and any recommendations to City Council. City Council would have the option whether to continue forward with Phases 3` &4. Staff spoke to various department heads that attended the meetings and the majority, including myself, believed NBS was more through and capable of providing a full range of service. FISCAL IMPACT: NBS' proposed cost is approximately$40,000 for Phases IA — Phase 2. NIBIS Local Government Solutions February 9, 2011 Mr. Alex Kung Senior Accounting Manager City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 RE: Proposal to Review Revenue Base, Provide Funding Alternatives and Implementation of Funding Solutions Dear Alex: Thank you for considering NBS to review the revenue base, provide funding alternatives and implement funding solutions for the City of Vernon (the "City"). We trust that the following document communicates a thorough and methodical approach to providing the City with strategies that will allow it to fund and maintain service levels for the City and the business community. The proposed work plan provides an all-inclusive and complete solution for the City. For over a decade, NBS has teamed successfully with public agencies to develop and sustain solutions in nearly all public finance topics (from cost of services analysis to special financing districts and special taxes) and across every imaginable form, of public infrastructure/service. We work exclusively With the public sector and have a client list of over 200 agencies served with distinction. Please note: 0 - NBS works with public agencies across California, providing the exact type of services requested by the City NBS, performed the FIRST Proposition 218 ballot process after its passage in 1996, and we have been at the forefront ever since 0 NBS is an independent firm and is unique in that it works exclusively for public agencies, and thus will have no conflicts of interest with private interests. • NBS has provided funding solutions for a number of similar efforts, including Big Bear Community Services District, Kensington Police Protection Community Services District, City of Hughson, Deer Springs Fire Protection District, Valleycenter Fire Protection District, Suisun FireProtection District, City of Long Beach, City of Los Angeles, and the City of Patterson, among many 0 NBS staff have worked for many agencies in the Los Angeles region for two decades, and are familiar with the resources The fee and scope provided in this proposal is based upon the current information that has been gathered by NBS as the chosen course of action for the City. Upon review of the detailed sub -tasks for each item listed in the scope of work, the City may chose to adjust the work plan which will then adjust the fee accordingly. NBS believes the best approach is to work closely with City staff to determine the exact approach and appropriate fee required to complete this project. We look forward to the opportunity to discuss our ideas and themes with you as you consider your alternatives in consultants. Please feel free to contact me or Danielle Wood (dwood@nbsgov.com) with any questions you may have at 1.800.676.7516 or pperez(a)nbsgov.com. Cordially, NBS Pablo Perez Director 32605 Temecula Parkway, Suite 100 1 Temecula, CA 92592 1 Toll free: 800,676.7516 1 Fax: 951.296.1998 SECTION PAGE Introductory Letter .................. ......... .........: ........ ......... ......... ......... ......... ................ Prior Page Section 1. SCOPE OF SERVICES .... ......... ......... ......... ......... ......... ........ ......... .........1 Background and Executive Summary ....: ......... ......... ........: ......... ......... ........1 WorkPlan .. ......... ......... .............................. ......... ......... ......... ......... ......... 1 Section 2. SCHEDULE FOR COMPLETION ........ .................. ......... ......... ......... ......... 5 Section 3. QUALIFICATIONS AND EXPERIENCE. .................. ......... ......... ......... ... NBSQualifications ....................... ..................... ......... ......... ......... ......... .........6 Staff Qualifications ............ ......... ......... ......... ......... ......... ......::: ::.... 7 Staff Organizational Chart ................................ ......... ........, ......... ......... .........8 Resumes ............... ......... ......... ......... .................. ......... ........ ......... .........8 Relevant Project Descriptions ................. .................... ......... ......... ..................12 Section 4. WARRANTIES AND INSURANCE ......:.. ......... .................. ......... ..................15 Section 5. PROPOSED FEE ............. ....... ......... ......... ......... ......... ........... ...............17 Proposal to Provide Services — City of Vernon Table of Contents Prepared by NBS — February 9, 2011 66 NBS has provided high quality service to our District for nearly a decade with respect to services involving our standby assessment districts. From planning and documentation preparation to labels and mailings, as liaison between financial advisors, legal counsel and the County of Riverside Tax Assessor office, etc..., your staff is always available to answer questions and deliver. 99 Karen Hornbarger District Secretary Lake Hemet Municipal Water District The City of Vernon currently provides police, fire protection and rescue services within the boundaries of City. The operational expenses for providing these services have traditionally been funded by the general fund. In the past, revenues from the power plant allowed the general fund to cover the cost of providing the, services mentioned above, including Class 1 fire protection. =However, with an ever changing economic environment and the corresponding drop in revenues, the general fund is no longer able to cover the operational expenses and maintain current levels of service, The City has requested a review of the City's revenue base to identify funding alternatives and assistance with the implementation of solutions to maintain current levels of service needed by the business community. Upon the completion of the review of the City's revenue base, the City will receive a Financial Modeling Report. This report will provide appropriate recommendations for revenue generation, based on the comparison of various applicable solutions and rate methodologies. In addition to the Financial Modeling Report, the City will also be provided with a detailed implementation plan and all documentation and assistance required in completing the proposed recommendation which will most likely include a utility user tax and an assessment and/or special tax district formation. This proposal describes our approach to this project based upon' our Project Team's experience in the: ® Development of special financing tools based upon special and general benefit ® Knowledge of Proposition 218 and experience in conducting property owner mailed ballot proceedings and registered voter elections By virtue of our experience and understanding of the unique needs of this endeavor, we present the following work plan. IW®RK PLANT The following outline describes the specific tasks to be performed by NBS and summarizes key deliverables related to one or more, but. not limited to, the following funding solutions: • Community Facilities District — Emphasis on public safety. • Fire Service Assessment District — Emphasis on the Fire Department's Class 1 Rating. • Parcel Tax — A citywide parcel tax to replace the current warehousing parcel` tax, ® Business Improvement District— Emphasis on public safety: • Utility User Tax - A tax on all utilities: Phase 1A — Working with the City to Obtain Information Project Management NBS will work closely with the City to review the City's general fund budget with emphasis on the Police Department and Fire Department (including EMS) budgets. During this process NBS will provide sufficient project management, administration, Proposal to Provide Services — City of Vernon y Prepared by NBS - February9, 2011 and procedural elements enabling clear and complete delivery of required work products. Sub -tasks include: ® Data collection, analysis, validation, and interpretation including police, fire and EMS budget data; current and projected revenues, etc. a Meeting attendance. Consultants will plan for two onsite'meetings with the City. These events are intended to accommodate progress points with City staff. a Project management, including coordination of conference calls; budget monitoring, and preparation of regular progress reports, etc. Phase 1B -Review of City's Revenue Base Budget Analysis NBS will prepare a report detailing the City's current and projected revenues as compared to projected expenditure's from the general fund with particular emphasis on current and projected costs for police protection, fire protection and rescue services. Sub -tasks include: • Acquisition and interpretation of Current budgets and historical expenditures attributable to police protection, fire protection and rescue operations from the. City, including direct, indirect, and allocated items: • Acquisition and interpretation of any documented levels of service for police protection, fire protection and rescue services (and related activities). Included in this effort will be organizational structure and core Services, as available`. • Acquisition and summary of any City -tracked data describing call volume and geographic origination for police protection, fire protection and rescue Services. • Acquisition and summary of externally -available data in service territories, including parcel size, land use, and assessed valuation. o Identification of functional costs of service within the master organization, such'a police response/operations, fire response/operations, emergency response/operations, fire prevention, etc. • Acknowledgement of other revenue sources, such as fire prevention regulatory fees, fire/emergency response billings, etc. • Preparation of a report describing the analytical process and findings of the review of the City's revenue base and costs with emphasis on police and fire. ® Preparation of presentation materials and attendance at one meeting of the City Councilor its designated subcommittee) to review findings. Phase 2 Recommendation for Alternative Funding Strategies Financial Modeling NBS will present a report outlining which funding options will best meet the fiscal needs of the City, including findings and recommendations.. The report will include, but not limited to, the following: The current and future revenue base needed to sustain the general fund. The City will work with NBS to determine the need. Proposal to Provide Services - City of Vernon 2 Prepared by NBS - February 9 2011 • The report will establish a rate schedule and total revenues to be generated from the funding program(s). • The estimated financial impact on various business industries in comparison with the surrounding cities. Timeframes for implementation and any statute requirements to initiate the funding program(s). Based on NBS' analysis and potential revenue, NBS will provide recommendations on which funding program(s) will best fit the needs and expectations of the City. In addition and/or in more detail; the report and sub -tasks include: ® Review of current revenues to validate the true current revenue source • Identification and contrasting of various funding sources • Determination of viable funding levels through financial modeling and tax -base analysis, accounting for assessed value of property, current tax amount and relevant sharing of property tax bill, ownership, types of land use, income and property ownership composition • Establishment of a recommended funding option • Discussion of political viability of sources • Discussion of legal restrictions on the use of different sources g Discussion of legislative changes associated with implementation of each source ® Estimation of timeframes for implementation of each source m Discussion of the reliability of each source • Clear recommendation of a specific approach justified by the aforementioned tasks d Formal documentation of analytical findings and recommendations and circulation to City staff (Financial Modeling Report) • Presentation of findings and recommendations Phase 3 Prepare Outreach Materials Required for Adopting Implementation Strategy Education and Outreach Plan NBS will develop strategies to educate the community on the funding program(s). NBS will prepare a report describing approaches to sharing information with the public to enable the successful implementation of the funding strategies. Sub - tasks include: • Development of a communication plan, including specific benchmarks/metrics to measure incremental progress toward goals • Identification of tactical steps for accountability and clear; planning/predictability • Recommendation of a media strategy to create awareness of the central "problem," and then communication of the proposed solution Proposal to Provide Services — City of Vernon 3 Prepared by NBS February 9, 2011 • Recommendations of key targets for communication in the public audience; identification of key allies, and steps to neutralize opposition • Formal documentation of findings. and recommendations and circulation to City staff and finalization upon receipt of commentary Phase 4 - Develop/Modify Existing Ordinances and Implement Solutions Outreach and Implementation/Formation NBS will assist the City in developing or modifying existing ordinances that pertain to certain funding programs (and/or applicable Resolutions and Staff Reports). NBS will perform tasks aiding the implementation of a funding program which will most likely include, but not limited to, one or more of the following options: • Community Facilities District - Emphasis on public safety. • Fire Service Assessment District Emphasis on the Fire Department's Class 1 Rating. • Parcel Tax - A citywide parcel tax to replace the current warehousing parcel tax. • Business Improvement District - Emphasis on public safety. • Utility User Tax - A tax on all utilities. The purpose of this task is simply to provide the City with a current cost estimate` for full-scale services. However, this cost estimate may need to be revisited based on the outcome of the previous phases. A complete work plan and scope of services will also be provided based on the outcome of the previous phases. Proposal to Provide Services - City of Vernon 4 Prepared by NBS - February 9, 2011 ISDHEDULE FOR COMPLETION The following is a tentative schedule for the tasks mentioned previously. NBS will meet with the City prior to project commencement in order to discuss milestones and to finalize the project scheduler 66 NBS has done an exemplary job in handling much of our City's complex district work, allowing our staff to concentrate on their own essential tasks. Their analysts are extremely knowledgeable, quick to respond, and are a pleasure to work with. Betsy St. John Director of Finance and Administration Services Proposal to Provide Services - City of Vernon 5 Prepared by NBS - February 9, 2011 6 "Whether it's been bo` help establish and manage new assessment districts o/ hcclean upthe mess ' from problem districts, N83has always been a company comprised of high quality professionals that mmnk effectively with staff and the debt management team toprovide solutions that work. They are always n0/first call.^ ~ ~ JimSadno Director ofFinance and Administrative Services City of La Habra Heights � NBS is on independent firmthat assists local governmental agencies, including: w Cities ° Counties * Special-purpose districts, including water, sewer ° School districts For 15 N8� '�_- ������������ ��� _'����� �����. -��._--���� ��-� ` and engineering pr�en�ra�h*dhoth�uoeofGpao�|F1nanong[�o�o� -'-- Swhich m odeling for funding_~_-_-.___-_-_n-_-.---_-_._.--- ' formation of and This focus NB�� committed special' ' �d , and vveare oomnn t#providinga000aamentenginaernO. special tax consulting, public finance analyses and other related services that are inthe best interests ofalocal agency and its constituents. The firm was founded in1gg6byexperienced finance and engineering professionals, and has worked with more than 25Opublic agencies todate. ' From a public agency's perspective, we believe the following five points are the most important qualities ofNBG: `` ` 1. NBS staff are the most experienced in this^ ' �������d��.��.a�f�o�����r15 years ' tohundreds Vf' local public agencies, including many projects |nLos Angeles County . 2. Differentiation The unique qualities ofN8Sinclude: ° Working solely for local public agencies, without the inherent conflict of inhsneoL ^ ° Focus onthe needs oflocal agencies that use all manners oflocal funding,~ ` including rates, fees, special taxeo, and assessments. * Development ofproprietary software solutions for certain services, which ` ^ incorporates the latest intechnology. 3. Benefits -Byusing NBG.apublic agency gets: * Quality ofwork and attention to detail. \ • High |ovo| of service. m Real stewardship, offering solutions that make sense for the public. ° Value and reasonable fees. 4. Base Infrastructure and Systems - The 'backbone ofNBS ^- includes:• Robust information and data technology systems. !` ° Quality control systems toensure accuracy. w Anemergency preparedness and business back-up plan. m Options for enhanced data availability via proprietary software. 5. Strong Track Record - Most importantly, NBRhuu a proven track record nf delivering services ontime, andemonstrated by: = Continuous growth ofclient base. ° High client retention rate. • Strong client references. ^eultimategoa|cfNBSiotoprnv�de support, expertise' and solutions that allow local agencies tofocus Vntheir communities' needs and core services. ' ^ ^` Proposal 0uProvide Services - City ofVernon O Prepared byNBS-Fobmary 9\2011 ,' IS"TAFF QUAI_IFICATIONSI NBS is staffed with seasoned experts who are dedicated to providing our clients with the best possible results. The NBS staff of over 35 consultants and engineers has extensive experience in the fields of finance, management; engineering, and local governance and combine their knowledge to, produce a synergy that results in maximum success and minimum risk: The NBS staff is fully conversant with all changes to laws, codes, and regulations affecting local governments. Recognized as leaders in their field, they are often asked to teach university courses, serve as expert witness, and participate in workouts for troubled agencies. In addition, NBS staff works with our clients as - partners by developing an intimate knowledge of their needs and responding with strategic and timely solutions. NBS is pleased to make the following individuals available to the City for this important project: • Danielle Wood - Client Services Director: Ms. Wood will be responsible for obligating NBS to all commitments, schedule, and deliverables for this project and will ensure that the City's fundamental objectives for the project are being met at all times. • Pablo Perez - Project. Manager: Mr. Perez will serve as the primary point of contact for City stiff and all phases of the project which include Project Management, Review of the City's Revenue Base, Financial Modeling, Education and Outreach, and implementation/formation. Pablo will be fully conversant in all findings and will be onsite for all events to present recommendations and findings to staff, the City Council, and any other public bodies or public hearings. Pablo will work closely with the City's designated project manager to monitor schedule and delivery of work products to the City's satisfaction. He will also provide senior -level technical analysis as warranted throughout the project. • Dennis Klingelhofer, PE - Assessment Engineer: Mr. Klingelhofer will provide senior -level technical analysis in support of the project. Trevor Speer and Tiffany Ellis -Consultants: Mr. Speer and Ms. Ellis will assist Mr. Perez in providing specific tasks and inputs necessary for the complete analysis of funding sources/options available to the City. While we will commit the above -identified individuals for the duration of the City's project, please note that with a staff of more than35, NBS has the infrastructure necessary to deliver the City's required work products in any unforeseen conditions that require additional labor efforts. We also have an extensive group of individuals available for any quality assurance/quality control efforts beyond those anticipated. Proposal to Provide Services - City of Vernon 7 Prepared by NBS - February 9, 2011 66 NBS has provided the City with excellent service and has highly competent staff working on the City's account. 99 Sabrina Rodriquez Financial Analyst III Citv of Oxnard IRESUMES1 Danielle Wood Client Services Director Danielle will be responsible for all initial engagements with the City. Danielle Wood is Client Services Director with NBS where she and her staff form and administer special financing districts such as Community Facilities Districts, Landscape Maintenance Districts, 1913/1915 Act Improvement Districts, Drainage Assessment Districts, Special Safety Services Districts, Benefit Assessment Districts, and Property -Based Business Improvement Districts. Danielle has been selected on several occasions to participate in speaking panels on topics such as Enhancing Revenues for Special Districts, Delinquency Management Programs and the Judicial Foreclosure Process. Danielle has also worked with agencies on auditing Assessment Districts including preparing funds analyses, determining current and future bond debt variances, auditing parcel levy histories, and preparing recommendations for ongoing administration. Pablo Perez Project Manager Pablo Perez is a Director with NBS where he and his staff form and administer various types of Special Financing Districts (SFD). He has over 19 years of experience, and is actively involved with district formations and bond issuance/refunding analysis as well as daily management of district administration' operations. He also performs feasibility studies and related financial projects. Proposal to Provide Services - City of Vernon Prepared by NBS - February 9, 2011 8 ® SFD projects: Mr. Perez has significant experience with many types of SFD's including: - 1972 Act Maintenance Districts - Standby and other Fees and Charges 1915 and 1911 Act Assessment Districts - Community Facilities Districts (CFD's) - Business Improvement Districts (BID's) - Benefit Assessment Districts (BAD's) Public Safety Districts including Fire Assessments and Taxes 0 His involvement includes analysis of district finances as well as oversight of tasks such as audits of assessment liens, delinquency management activities, apportionment of liens, continuing disclosure, arbitrage rebate calculations, bond tenders, and district workouts. Proposition 218: Mr. Perez provides Proposition 218 consulting services related to the establishment or increase of fees, :charges and assessments. He is an acknowledged expert in Proposition 218 compliance programs. County Data Procurement: Mr. Perez is on a "first name basis" with many of the County assessor and auditors staff in the State, including Los Angeles. Sample Clients: Mr. Perez has worked for many public agencies including: - City of Los Angeles - City of La Habra Heights - City of Long Beach City of Oakland Mr. Perez has 22 years of experience in the private and public finance sectors, including 19 years specializing in special financing districts. Prior to working in public finance administration, he worked for a financial firm in New York. Dennis Klingelhofer, PE Assessment Engineer Dennis Klingelhofer brings over 20 years of engineering experience, primarily in the field of assessments and special taxes to NBS. Dennis is well known throughout California, and respected by his peers in this field of work. • Assessment Engineering: Mr. Klingelhofer has in-depth knowledge of California's public finance and special assessment procedures. He has served as Assessment Engineer for the formation of Public Finance Districts including 1913 Improvement Act districts, 1972 Landscaping and Lighting Act` districts, Mello -Roos Community Facilities Districts, 1982 Benefit Assessment Act districts, Fire Suppression Assessment Districts, and Special Tax Districts for police and fire services. He has worked with agencies to identify financing' alternatives, evaluate the feasibility of forming special districts, and to prepare the necessary documents/reports required for district formation. • Fiscal Analysis: As a registered professional engineer, Mr. Klingelhofer has developed AB 1600 fee programs which allow cities to collect the proportional share of the costs of infrastructure and other public facilities needed to serve new development. He has also conducted evaluations of the impact of organization changes on local government under the Cortese/Knox Act dealing with the fiscal impacts of development on communities and analyzing Proposal to Provide Services - City of Vernon 9 Prepared by NBS — February 9, 2011 Proposal to Provide Si Prepared by NBS — FE the cost of services. He has also been responsible for the development of policies and procedures for work planning and scheduling, resource allocation, project administration and project management and has provided project management services on large multi -disciplinary projects. Mr. Klingelhofer's engineering experience includes these relevant projects (of many): Deer Springs Fire Protection District's Special Assessment formation Carmel Valley Neighborhood Cost Reimbursement District, San Diego Public Safety Impact Fee Study (AB1600), Indio Trevor Speer Consultant Trevor Speer is a Manager at NBS where he administers special financing districts including 1913/1915 Act Assessment Districts, Mello -Roos Community Facilities Districts, Landscape and Lighting Districts, Water and Sewer Standby Charge Districts and Property -Based Business Improvement Districts. Trevor oversees three other analysts and is responsible for the management of nearly 200 districts and 700,000 parcels. He has over four years experience working with all aspects of special district administration including levy submittal, continuing disclosure reporting and delinquency management. • District Administration: Trevor has experience in the ongoing administration of 1913/1915 Act Assessment Districts, Mello -Roos Community Facilities Districts, Property -Based Business Improvement Districts, Water and Sewer Standby Districts and Landscape and Lighting Districts. His experience includes preparation of annual assessment levy calculations, direct assessment billings; district fund analyses, bond ,call preparation and monitoring of delinquent assessments to ensure timely debt service repayment. • Database Management: As an experienced analyst in database management, Trevor has worked with databases as large as -2 million records and has been responsible for the levy of districts with over 300,000 parcels. His experience with data manipulation allows him to create unique queries and generate custom reports used for special projects and mail merges for agencies such as the City of Chula Vista, the City of La Habra Heights, the City of Long Beach and Salt Lake County. • Continuing Disclosure: Trevor has prepared and disseminated Municipal Disclosure Reports for special financing districts - including 1915 Act Assessment Districts, Community Facilities Districts and Marks Roos Bonds in with Securities Exchange Commission regulation 15c2-12. • Delinquency Management: Trevor also works extensively on delinquency management. This includes the gathering of county data, removing assessments from the county tax roll, and coordinating with foreclosure attorneys to ensure the foreclosure process is conducted in accordance with bond covenants. • Levy Submittal Management: Trevor is also responsible for coordinating the annual levy submittal of eight counties, which include over 100 special financing districts and over 150,000 parcels. �rvices — City of Vernon 10 :bruary 9, 2011 Tiffany Ellis Consultant Tiffany Ellis is a Consultant at NBS where she forms and administers special financing districts including 1913/1915 Act Assessment Districts, Mello -Roos Community Facilities Districts, Landscape and Lighting Districts, Benefit Assessment Districts, and Energy Assessment Districts. She is actively involved in the daily administration of district administration operations. • District Administration: Tiffany has experience in ongoing administration for 1913/1915 Act Assessment Districts, Mello --Roos Community Facilities Districts, Landscape and Lighting Districts and Energy Assessment Districts. Her experience includes preparing annual assessment levy calculations, direct assessment billings, district fund analyses, debt service tracking and monitoring delinquent assessments to ensure timely debt service repayment. Tiffany administers numerous districts with an aggregate parcel count of over 128,000 parcels. • Energy Assessment Districts: Tiffany works extensively with one of California's first energy independence programs and contractual assessments in the County of Sonoma. This includes the gathering of county data, bond calls, assessment payoffs; debt service tracking, cash flow analysis, and levy submittals. • LMD/BAD Formation and Assessment Increases: Tiffany assists public agencies with Proposition-218 compliance, the coordination of city council and community outreach meetings, in addition to preparing notices, ballots and other materials. • Levy Submittal Management: Tiffany is responsible for coordinating the annual levy submittal for multiple counties, which include over 130 special financing districts and over 115,000 parcels. • Continuing Disclosure: Tiffany prepares, disseminates and is responsible for many Continuing Disclosure Reports for over a dozen public agencies. She has completed continuing disclosure reports for all types of municipal bonds in compliance with Securities Exchange Commission regulation 15c2- 12. • Delinquency Management: Tiffany works extensively on delinquency management. This includes the gathering of county data, removing assessments from the county tax roll, and dealing with foreclosure attorneys and property owners. Special Projects: In addition to the above listed responsibilities, Tiffany works on several special projects including District Closeouts, assisting public agencies with the coordination of public hearings, assisting Cities and Districts with code compliance on several topics related to land -based financing, assistance with judicial foreclosure processes and pre -formation and pre -bond disclosure analysis. Proposal to Provide Services— City of Vernon 11 Prepared by NBS — February 9, 2011 Proposal to Provide Se Prepared by NBS - Fe The following is an overview of our experience relating to the review of budgets, funding solutions and formation of special financing districts to pay for those services. NBS has formed well over a hundred Special Financing Districts including districts such as 1913/1915 Act Improvement Districts, Drainage Assessment Districts, Community Facilities Districts, Special Safety Services Districts, Benefit Assessment Districts, Landscape Maintenance Districts, and Property -Based Business Improvement Districts. Our staff is dedicated to preparing accurate Special Assessment and Special Benefit Methodologies and Rate and Method of Special Tax Apportionment Models: In addition, NBS assists agencies in appropriately selecting the type of special district to form when several options are legally feasible. Our staff have years of experience in appropriately matching the individual characteristics of the special financing district to the particular needs of the public agency and the individual project. Below please find relevant project descriptions and references who may be contacted: Deer Springs Fire Suppression Benefit Assessment District iC,Project Formation _ Mr. Klinglehofer, P.E. served as Assessment Engineer for the formation of the Deer Springs Fire Protection District's "Fire Suppression Benefit Assessment District" which was created in 1 2004. This assessment district was formed to replace an 1 i i existing "Fire Suppression Benefit Assessment" which was scheduled to sunset in June 30, 2007, but was no longer able to provide a sufficient level of revenue to allow the Fire I Protection District to improve service levels to parcels within the District. Mr. Klingelhofer also served as the Assessment Engineer for the original assessment district formation. As the i first step in the formation of the new assessment district, Mr. f Klingelhofer worked with District staff to develop the "Deer Springs Fire Protection District Funding Strategy Report" j i which analyzed the funding requirements for alternative levels j Protect Desription osery f ice (number of stations and staffing). This report looked c at alternative funding options available to the District and recommended the formation of a new Fire Suppression Benefit Assessment District. Based upon this recommendation, a detailed review of the District's costs was completed to identify those expenses which could be funded through the benefit assessment and the benefit nexus was developed to support 1 E the new assessment. Property owner meetings were held, and a public information mailer was developed to inform property owners of the need for additional revenues and how that - revenue would be used to improve fire response levels. I Property owner ballots were prepared and mailed to each parcel within the District, who overwhelmingly supported the �- formation of the new assessment district. Mr. Klingelhofer has ' also served as the Assessment Engineer for the annual i administration of the district for the past several years. Capt. Susan Magdaleno, Fire Marshall j °Reference Name;and (P) 760.749.8001 Contact1nforrnatign Liz Heaton, Finance Assistant y [j[{I - (P) 760.749.8001 - . ! 8709 Circle R Drive, Escondido, CA 92026 12 rvices — City of Vernon bruary 9, 2011 Mi ON Assessment District Formation for Fire Protection Assessment District _ The City of Patterson retained NBS to form a Fire Protection Assessment District for a large area within the City. NBS was involved from the inception of the project and worked closely with the City and multiple constituents to develop a solution that achieved the goal of funding fire services for a new, large residential subdivision. NBS worked under a tight timeline to analyze the special benefit and prepare an Engineer's Report detailing those findings as well as an Assessment Diagram showing the benefited parcels. NBS prepared and mailed the requisite assessment ballots and notices to all property owners and then tabulated those ballots to determine whether there was a majority protest. NBS also prepared and mailed direct bills to collect the first year's assessments since the timing of the formation did not allow for collection on the County property tax rolls. The City was pleased with NBS' work performance and retained our firm for the formation of the Walgreen's Site Benefit Assessment District. Cleve Morris, CityTManager No. 1 Plaza, P.O. Box 667,'Patterson, CA 95363 (P) 209.895.8000 (E) cmorris(a-)ci.oatterson.ca.us w� Assessment District Formation for Rodeo Flat AD Formation (Completed) Ranchero Way AD Formation (Commencing) The Nevada Irrigation District ("NID) in the Sierra foothills . retained NBS as advisor and Assessment Engineer to form an Assessment District ("AD") to provide approximately $1 MM in capital as part of a financing plan for desperately needed water system infrastructure in an area known as Rodeo Flat. This l infrastructure was needed to hook up the residents to the existing NID treated water system as the local wells were l becoming inadequate, both in terms of water quality and quantity. NBS was involved from the inception of the financing project, initially looking at the feasibility of either a CFD or a 1913/1915 Act assessment district. NBS worked closely with the property owners and NID staff to analyze many issues that lead to a successful solution. The final AD solution included` the ability to for property owners to add the NID connection fee to the AD financing. NBS used the various new factors and existing conditions to formulate the Method of Apportionment. NBS prepared the required Engineer's Report, Boundary Map', Assessment Diagram, Proposition 218 Assessment Ballot proceeding documents, other needed information related to the formation. This AD was noteworthy for the following primary reasons: • It solved a long-standing water well problem ® Received a 94% approval from property owners, with 86% of the assessment ballots returned The NID was pleased with the results of the Rodeo Flat AD 1 formation and has retained NBS as the consultant for the formation of Ranchero Way AD which has recentIV commenced. Timothy A Crough, P.E., Assistant General Manager �Reference Name and 1036 West Main Street, Grass Valley CA 95945 Contact Information P 530.273.6185 E crou h nid dst ca us _ ..)._. _ �) _g Y ( _ . a. Proposal to Provide Services — City of Vernon 13 Prepared by NBS — February 9, 2011 Financial Modeling NBS-was retained by the Pleasant Hill Recreation and Park District to explore financing options available to pay the costs of providing certain new improvements as well as upgrades to existing improvements throughout the District. NBS identified the best financing options available based on the types of improvements, the benefit to the community in general, as well as specific properties within the District. There are a total of 13,382 parcels within the District boundary, of which 12,195 or 91 % are single family homes. The remaining 1,187 parcels are made up of various commercial parcels, multi -family residential parcels and vacant or non - assessable lots. NBS completed a recommendation report that outlined the various rate structures and financial impact on the property owners based on each type of financing mechanism available. Mr. Bob Berggren General Manager, 147 Gregory Lane, Pleasant Hill, CA 94523 (P) 925.682.0896 (E) bberggren@pleasanthillrec.com Parcel Tax Formation The Kensington Police Protection and Community Services District retained NBS to assist with the process to establish a supplemental special tax. While the District had an existing special tax, it was approved several years ago and did not include an annual inflator. Like most local agencies, revenues from property taxes have declined in recent years and expenses such as PERS, Social Security and Medicare have increased. In order to keep police services locally provided, and to maintain sufficient cash reserves, additional funds were required. The District identified a revenue goal to meet their needs. NBS developed the structure for the supplemental tax, keeping in mind the existing special tax and the need for an annual escalation factor. NBS prepared the measure language, required resolution and ordinance describing the special tax and provided testimony at the public hearing on the issue. NBS also coordinated closely with the County Elections Division to ensure that all requirements were met. Because the timeline for this project left no room for error, the work with the County was essential to facilitate a smooth delivery to the Elections Gregory E. Harman, Police Chief/General Manager 217 Arlington Avenue, Kensington, CA 94707 (P) 510.526.4141 (E) gharman@kensingtoncalifornia.org Proposal to Provide Services — City of Vernon Prepared by NBS — February 9, 2011 64 Government agencies especially need to demonstrate to the public that we are accurate, efficient, honest and professional. NBS reflects these qualities by helping us meet our mission goals. Cal Camara General, Manager Hesperia Recreation and Park District For the protection of our clients, NBS is covered by the insurance policies described in the following table. Workers' Compensation Insurance is maintained at the level required by state law. Errors and omissions is covered under our Professional Liability insurance policy. Workers' Compensation $1,000,000.00 General Liability $2,000,000.00 Professional Liability $2,000,000.00 NBSGOVE-01 SBB ACORD„ CERTIFICATE OF LIABILITY INSURANCE 141712009 DAT� �772 PRcooaURucenso 1{ 0023500 (650) 54f-2900 THIS CERTIFICATE 18 ISSUED AS A MATTER OF INFORMATION Vanorsdale Insurance Services ONLY AND CONFERS NO HEIGHT$ UPON THE CERTIFICATE - 490A Murptly Canyon Road, Suite 510 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR San Olcga, CA92i23 - AU.TeR THE COVERAGE AFFORDED BYTHE POLICIES BELOW, - INSURERS ApFQRDING COVERAGE NAIC 1t _ -- IRSWtEn NBS GovarnmanEnanca Group—,—_.____,...,,..... _,.� _�,... _.�„�.....- IRSllRERA Mand Casuall Insurance Company 32005 Temacula Parkway, Suite 100 InRras, American States Insurance Rom nn Tome cola, GA 0251JI u Uaeltc RopUt111c lndemril._:� v Gi5UREitn: - COVERAGES _ A THEPOL10111.5 OF INSURANGG LISTED BELOW HAVE BEEN 19SLEDTD THE INURED NAMCD ABOVE FOR THE POLICY PrMOOINDIDATED, NOT NITHSTANDING ANY ReQUIRGMENT.TERM ORCONDITION OF ANY CONTRACT MOTHER DOCOMENT WITH RNSPEGTTq WHICH THIS OERFIFIC'ATE.MAyve 183UED OR -. ldAY PEk'rAlN YRiL1NSU17ANCE AFFORDED BY THE POLVES DESCRIBED HEREIN IS SUBJErl TO -ALL T RIE TERNIS, EXCLUSIONS AND CONDITION$ OF SMH POtdCIP=.$. AGfeRGGATE41Lurn, [OWN MAY RAVE BEEN REDUCED BY PAID MINI& a PONO`fNU1aiER 4AdYTi_ dEHERALL)AUILM _.. FJgi OCCUIUtFKCL f. 2,00000 A° X -gl COWCKM 60,140011"ILrfY PA$00053837 912A2009 912412010 �h.__� 2,DPP,AD ..._. 2 CRAIUI AOI L^e! OCOUR S 10,00 �n _ r^�SrxfU1 $kDWtNNar ?� �nt{uV,VU 4,000,00 aErr€t1©caECr:T .LtI.U1AwYu9s?LR; PRODUCtS-COMPAiPA06 AuraraoaReVAGILlvr a;Rftdce€,aue �.. 1,000,00 B X DICHOOD3345 0124f2009 0/2412010 Eaaxteend "�" AL401VNEn /1}fL.S'. UOMOILYIRJEWY seuEouLENIAVTos i� reel � nIRF.-DAU10S g047LYENJURY NowowIPa3IvYro$ LPttBc en4 - ....... PRi7r°,liTYEbRMAC -- T ARA06L1Aa1Jjrr AOYa ONLY. EAACtNdEri x__ _ - 'sNYhU1Kt 4T#1R21HAN_ nuTooNLY. Aae EkCESSNMaRELU�41A]HlLTTY OCCUR L._J URMS WCE'. AaiiRCU7+iC 9'. .v »....,�.,.:..,..: 13EnU7TE91.0 q Rl"TEfd[git $ 5. WORXtRSCOMP✓;NSATIONAi� X TATV' 'DTN= - C GFlPLOYExsL1AaRITr 77$555A3 - :g/2RiZ0Pg 912412010 ,. tanlnzraMF.T0NPWaTHEWEXtcLmv[ €.L @A�#ACCN !}T 5 ... 1,OOP,PO ,aournaunaer p.Ul1EUf I LL DISEAar•Epp LAirn.o'YS. OFFIGERiiALLVDEREAY., I FL DMI MIMIC, POLiCT LIMIT S 1,000.00. onrrn DESCRIFTtOfi {Si ePEpATleN9l U7CAT(¢R$ i WN9141i I EXCLUMIS ADDED 8Y rNO0R5ENEnrt:.4PECIAL PRa5N510vs Except 10 day3 lmllc+ of cancollatfon'for nonpayment of preellum. ho City of Lincoln, Its officers, officials, employees, and volunteers are named additional Insured pet CO201007104 form regarding General liability and Arno Liabfllly per CA7110 03 07 form. Primary Wording for GL appdos per Coverage form952001 Ed 4�01? & Auto poraoverag0 to A00 Of 03 00. cERTIFICATE HOLDER.. _ CANCELLATION::. _.. SHOULe ANTQF TRe/aOrE aESCRlaEO POLICIESDE GARCU€lF,a aeroRi° 1R14 E%PIDAri . aATFTI1E8E0F,TttEk431l010 RIS0Aia,.X1Li&4DEAVp(tTtl tlAe, 3Q'..a_�pelytiy(�fITLq Renck TO TNa G£RaPICA7E NGbgEKH.UAE0TU T11Fz tiELT, aUT FAILI3R@TODp'g4 EH/µ naP69t#IDOSLLOATION ORUMILITYCF Ar1YIdVDUPONTHE IRSURER,ITS AGENTS OR - --Re['RE5eRTATNES. Ada1dRPII:DRWRE&CfrrAT1Y5 ACORD 25.(20011138) -. �j ACdRD OOR06RAT)OHli f Proposal to Provide Services — City of Vernon 15 Prepared by NBS - February 9, 2011 i Proposal to Provide Services — City of Vernon Prepared by NBS — February 9, 2011 16 Quality is paramount in the services you provide, and we have faith in your professional abilities, accuracy, timelines, and overall integrity. 91 John M.Donoghue Financial Analyst City of Folsom .*_ NBS has provided the following cost proposal based on the information provided and our understanding of the overall level of effort required. Should NBS be selected as the most qualified firm to work with the City, we will endeavor to set up a fee and billing schedule that is commensurate with the tasks required that meets the needs of the City. Consulting Phase 1 A - Project Management .......................... ,...... .......................$6,000 (a) Phase 1 B — Budget Analysis .... ....................................................... $12,500 (a) Phase 2 - Financial Modeling .... ............................... ........................... $21,000 (a) Phase 3 Education and Outreach Plan ....................... not to exceed $19,500 (a) (b) Phase 4 -Outreach and Implementation/Formation ..... not to exceed $84,500 (a) (b) a. Excludes out-of-pocket expenses (see below) b. Assumes the implementation of two solutions Expenses Customary out-of-pocket expenses will be billed to the City at actual cost to NBS. These expenses may include, but not be limited to travel, mailing fulfillment, postage; telephone, reproduction, materials, lodging, meals and various third -party charges for data, maps; and recording fees. Additional Services The following table shows our current hourly rates. Additional services authorized by the City but not included in the scope of services will be billed at this rate or the then applicable hourly rate. Director $ 190 Senior Consultant/Programmer 150 Engineer 140 Consultant 130 Analyst 100 Clerical/Support 55 Terms Consulting fees will be invoiced on a monthly basis as tasks are completed. Expenses will be itemized and included in the next invoice. If the project is prematurely terminated by either party, NBS shall receive payment for work completed. Payment shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days simple interest will begin to accrue at the rate of 1.5% per month. Either party can cancel administration contracts with 30 days written notice. Proposal to Provide Services — City of Vernon Prepared by NBS February 9, 2011 17