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HomeMy WebLinkAboutContracts & Agreements_144-2022AGREEMENT TO PERFORM PROFESSIONAL SERVICES This agreement for the provision of consulting services for the evaluation and preparation of an overhead cost allocation plan and comprehensive user fee and rate study ("Agreement") is made and entered in this 5th day of July, 2022 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City") and Matrix Consulting Group ("Consultant"). City and Consultant are sometimes individually referred to herein as a "Party" and, together, as the "Parties." In consideration of the mutual promises contained herein, City and Consultant agree as follows: ARTICLE 1— ENGAGEMENT OF CONSULTANT 1.1 City hereby engages Consultant to provide evaluation and preparation of an overhead cost allocation plan and comprehensive user fee and rate study for City (the "Services"). 1.2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services. ARTICLE 2 — SERVICES OF CONSULTANT 2.1 The Services that Consultant shall perform are more particularly described in Exhibit "A," titled "Scope of Services," which is attached hereto and incorporated herein by this reference. 2.2 Consultant shall comply with applicable federal, state and local laws and regulations in the performance of this Agreement including, but not limited to, any applicable State prevailing wage laws. ARTICLE 3 — RESPONSIBILITIES OF CITY 3.1 City designates Danielle Garcia, Management Services/Finance Director, as City's representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City's policies and decisions with respect to performance of the Services. ARTICLE 4 — PERFORMANCE OF SERVICES 4.1 The term of this Agreement shall be for a period of one (1) year from the Effective Date of this Agreement (the "Initial Term"). The City shall have the option to extend the Initial Term of this Agreement by one (1) additional one-year terms (each, an "Extended Term"), on the same terms and conditions, by providing written notice to Consultant at least thirty (30) days prior to the expiration of the Initial Term or any Extended Term. 1 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-I.1.FY21-0167.docx.jn 4.2 If Consultant's Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to City, consistent with City Council -adopted policy for the same. It shall be the obligation of Consultant to obtain a copy of such policy from City staff. ARTICLE 5 — PAYMENTS TO CONSULTANT 5.1 Total compensation for Consultant's performance of the Services shall not exceed the amount of forty-nine thousand nine hundred and ninety dollars ($49,990). City shall pay Consultant on a time and materials basis up to the not to exceed amount in accordance with Exhibit "B," titled "Cost Proposal" which is attached hereto and incorporated herein by reference. 5.2 Consultant shall submit monthly invoices to City describing the Services performed during the preceding month. Consultant's invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses related to the Services. City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant's invoice. 5.3 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic mail transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section: CITY: City Clerk City of Redlands 35 Cajon Street P.O. Box 3005 (mailing) Redlands, CA 92373 jdonaldson@cityofredlands.org Phone: (909) 798-7531 CONSULTANT: Richard Brady Matrix Consulting Group 1650 S. Amphlett Blvd., Suite 213 San Mateo, CA 94402 proposals@matruxcg.net 650-858-0507 650-397-4050 ARTICLE 6 — INSURANCE AND INDEMNIFICATION 6.1 The following insurance coverage required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services. Consultant shall not perform any Services unless and until the required insurance listed below is obtained by Consultant. Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a 2 L:1ca\Agreements\Matrix Consulting Group Agreement.PS-1.1.PY21-0167.doexjn provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City. A. Workers' Compensation and Employer's Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Consultant is self -insured or exempt from the workers' compensation laws of the State of California. Consultant shall execute and provide City with Exhibit "C," titled "Workers' Compensation Insurance Certification," which is attached hereto and incorporated herein by this reference, prior to performance of the Services. B. Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. C. Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made. D. Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Consultant owned vehicles used in connection with Consultant's provision of the Services, hired and non -owned vehicles, and employee non -ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self- insurance maintained by City. E. Consultant is expressly prohibited from assigning or subcontracting any of the Services without the prior written consent of City. In the event of mutual agreement by the Parties to assign or subcontract a portion of the Services, Consultant shall add such assignee or subcontractor as an additional insured to the insurance policies required hereby and provide City with the insurance endorsements prior to any Services being performed by the assignee or subcontractor. 6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses or liability, including attorneys' fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services. ARTICLE 7 — CONFLICTS OF INTEREST 7.1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by 3 L:5ca\Agreements \Matrix Consulting Group Agreement.PS-1.1.FY21-0167.docx.jn the performance of Consultant's Services. in the performance of its duties hereunder, any Services under this Agreement. 7.2 Consultant agrees it is not a designated Reform Act because Consultant: A. Consultant further covenants and represents that no person having any such interest shall perform employee within the meaning of the Political Does not make a governmental decision whether to: approve a rate, rule or regulation, or adopt or enforce a City law; issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; authorize City to enter into, modify or renew a contract; grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; grant City approval to a plan, design, report, study or similar item; adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof. B. Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City's Conflict of Interest Code under Government Code section 87302. 7.3 In the event City determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk's office pursuant to the written instructions provided by the City Clerk. ARTICLE 8 — GENERAL CONSIDERATIONS 8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in- house counsel by a Party. 8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, result in City's immediate termination of this Agreement. 8.3 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any its agents shall have control over the conduct of Consultant or Consultant's employees, except as herein set forth. Consultant shall supply all necessary tools and instrumentalities required to 4 L:\ca\Agreements\Matrix Consulting Group Agrcement.PS-1.1.FY21-0167.docxjn perform the Services. Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation. 8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City's intent to terminate. If this Agreement is terminated by City, an adjustment to Consultant's compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant. Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination. 8.5 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs andlexpenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Consultant. 8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, any amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant. 8.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California. 8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement. 5 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-1.I.FY21-0167.docx.jn IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement. CITY OF REDLANDS By: ac-r .- •1.Q Charles M. Duggan, Jr., 't er MATRIX CONSULTING GROUP By: AC/LLa/2z/ 5 Richard Brady, President 7-5-22 ATTEST: ax2,441-\/ Donaldson, City CIerk 6 L:1ca\Agreements\Matrix Consulting Group Agreement.PS-1.1.FY21-0167.docx.jn EXHIBIT "A" SCOPE OF SERVICES Project -Wide Tasks There are two key tasks that are consistent across all scopes of work, which occur at the beginning of the project. The following tasks are considered project -wide. Task 1 Data Collection Prior to any initial meetings, the Matrix Consulting Group will provide the City with a list of initial data requirements for the study. This will allow our project team to review this information thoroughly in preparation for initial discussions with staff. A common list of data collection items include: • Budget and actual expenditures on a fund, department, and line -item basis. • Copy of prior studies — cost plan, user fee, and impact fees. • List of all budgeted personnel by fund, department, and division. • Most recent completed Fiscal Year revenue reports for all Departments. • List of all current fees being charged to be included in the analysis. • List of comparative jurisdictions to be included in the analysis. The above list is just a sampling of the type of information that will be requested. The provision of these items allows our project team to familiarize themselves with the City's structure and its current financial practices. Task 2 Study Objectives and Project Schedule Once the data has been collected, the project team will then meet with designated City staff to discuss any issues identified by the project team, as well as to clarify any existing concerns held by the City in regard to the current cost allocation and fee study methodology. Discussions will include: • Review of the City's specific needs and critical issues surrounding development and implementation of the cost allocation plan and fee study. • Opportunities for improvement and restructuring of previous plans and studies, and/or review and discussion of existing cost allocation methodologies and fee study calculations. • Discussion of the uses of a cost allocation plan, as well as concerns or issues that should be addressed during the development of the plan. • Discussions regarding current fee structure and any potential changes. 7 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-1.1 PY21-0167.docx.jn • Review and identify existing cost recovery policies or established subsidies. • Legal issues or concerns with implementation of new or proposed fees. At the culmination of the meeting, the project team and the designated City staff will leave with a greater understanding of the overall approach and methodology that will be taken by the project team to conduct the User Fee, Impact Fee, and Cost Allocation study. Cost Allocation Plan The development of a Cost Allocation Plan will allow the City to accurately account for the full cost of providing central City services by identifying indirect costs associated with all City Departments, funds, and programs, and develop departmental overhead rates. The following tasks outline our approach for developing a Cost Allocation Plan. Task 1 Interview Staff and Gather Allocation Metrics The project team would review the City's budget and financial structure to identify City departments and services to be allocated. To structure a custom cost allocation model, our project team would perform the following: • • Review and discuss the accounting (fund and organizational levels) structure of the City based on budgeted expenditures to identify any anomalies. Identify and meet specific central services departments to develop allocation bases and ensure that the plan reflects the following aspects: All current services provided by the Department are identified and documented within the Cost Allocation Plan. Allocation bases discussed to be utilized are reflective of the current level of effort and most relatable to the service being performed. The following is a sample flowchart visually representing discussion outcome, the first level is the central services department, the second level is the identified service category, and the third level is the basis by which costs will be allocated: • Discuss alternative allocation procedures, including possible outcomes and potential impacts of each method. 8 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-1.1.FY21-0I67.docx.jn Discuss alternative allocation procedures, including possible outcomes and potential impacts of each method. The points above provide examples of the types of detailed and in-depth discussions that the project team will have with City Departments involved in the cost allocation process. At this point in the process, the project team would reach out to each department and ask for any specific allocation metrics such as purchase orders, invoices, sq. ft. per facility maintained, etc. vvIR Task 2 Review of Draft Cost Allocation Metrics siooto ttiXOSI Based upon units of service identified in Task 1 and the allocation metrics collected, the project team would put together allocation statistic workbooks for review with specific Central Service Departments. The purpose of these workbooks is to review the initial results of the allocation metrics gathered by the project team. The following graphic shows an example of the allocation workbook: 9 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-I.I.PY21-0167.docx.jn 1 1 1 1 1 1 1 1 1 10 14 29 10 Mayor 16 Human Resources 20 City Solicitor 30 Police 35 Fire 40 Community Development 50 Public Works Streets 50 Public Works Facilities 50 Public Works Community Services Water Sewer Self -Insured Fund Liability In 3 30 30 68 0.87% 8.75% 8.75% 19.83% 1 0.29% 7 2.04% 5 1.46% 1 0.29% 185 53.94% 1 0.29% 8 4 In the sample graphic provided, based upon the number of AR Transactions per Fund/Department, the primary support is for Public Works Community Services (54%) for all the Parks and Recreation transactions, followed by Police (20%). Based upon the results of this sample, the project team would verify with Finance that the statistics were allocated to the appropriate fund/department and that the resulting percentage is reflective of the support being provided by the Accounts Receivable staff and function. This type of detailed review is critical for the development of a defensible cost allocation plan. It also ensures that departmental staff and city staff are comfortable with the use of the allocation metrics and the support that those metrics represent. fir2getX® S. Task 3 Structure Cost Allocation Model Once the Central Service departments and administrative functional areas have agreed upon the appropriate allocation metrics for their services; allowable administrative or other indirect costs are allocated to each benefiting City department, operating unit or fund. The project team ensures that methodologies and assumptions comply with Federal regulations and general accounting principles. 1140 10 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-1.1.FY21-0167.docx.jn Task 4 Draft Cost Allocation Report Upon approval of the excel draft results of the cost allocation model, the project team will put together a Cost Allocation Report. This draft report will include a narrative description of all City departments and services included in the cost plan and the methodology used to allocate those services. In addition to the narrative portion, the excel portion will be included identifying how each cost was allocated. Ritte ropACA+Siz Task 5 Final Cost Allocation Report Any narrative edits provided by Finance staff will be incorporated into the Final Cost Allocation report. The results of this report will be incorporated into both the User Fee and Development Impact Fee Study. nevOnto Task 6 Excel -Based Models and Training The City wishes to have the ability to update the final version of the Cost Allocation Plan. Our Excel -based models would provide the ability for the City to adapt and continuously update fee study results from year to year as the organization changes. After the final draft of the cost plan is approved, at the discretion of City staff, the project team would meet with and train designated City employees on use of the models. Staff will be provided with training that includes: a step-by-step PowerPoint presentation; a User's Manual which explains key concepts, defines basic terms, includes a customized updated checklist of data that needs to be entered, and discusses different scenario options (e.g., adding new central services, removing receivers, etc.). Comprehensive Fee Study 11 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-1.1.FY21-0167.docx.jn This study aims to calculate the full (direct and indirect) cost associated with providing all citywide fee -related services and ensure that current fees are in compliance with state (Prop 26 & 218) and local guidelines. The following tasks provide our workplan for conducting the Comprehensive Citywide Fee Study. Task 1 Develop a Schedule of Current and Potential Fees for Service The scope of this effort will be all user fees charged by the City. Current as well as potential fees and charges will be identified and documented. The project team will work with staff to go through their current fee schedules in line -item by line -item detail. This meeting is critical in ensuring that staff can incorporate any updates or changes to the fee study based upon code, regulation, staffing, process, or technological changes. The focus of this meeting will be the following: • Renaming fees: Rewording or renaming fees to identify services more clearly. • Eliminating fees: Removing any outdated services or fees. • Adding new fees: Capturing any new services or breaking out existing fee categories to more clearly identify all of the services being provided by city staff as well as identifying potential fees for service that the city would like to provide. • Recategorization of fees: Collapsing or expanding multiple fee ranges to better capture the services being provided. For example, eliminating lot ranges or acreages if those do not impact review amount, but adding in categories based upon approval body (i.e. Commission vs. Director level). • Building permit fee basis: Discussing options for charging building fees based upon project valuation or sq. ft. and occupancy type, and / or different types of fees for different types of projects. • Cross -departmental support: Identifying other city divisions / departments that work on fees, to ensure that the final fee calculated reflects the full cost to the City. • City and State surcharges: Capturing any city surcharges such as a Technology or General Plan Maintenance Fee as well as any state surcharges on the fee schedule to more transparently show all fees. It is important to note that this meeting occurs first, as to ensure that any major proposed structural changes are captured prior to collecting time estimate information or developing draft fee results. However, there is the ability to make any adjustments. Task 2 Conduct Time Data Gathering Workshops The project team will conduct workshops to gather time estimates for each service included in the study, interviewing key personnel from each department and analyzing the various activities 12 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-1.1.FY21-0167.docxin being performed. The flowchart shows an example of the steps involved in permit processing and time associated with each step. Intake and Processing • Permit Tech • 15 min Routing • Permit Tech • 10 min Initial Review • Plan Checker •1hr Final Review • Plan Check Eng. • 30 min Issue Permit • Permit Tech • 15 min As the flowchart shows, basic process steps in application/permit processing will be documented and provided in detail for each department / division represented in the study. Where possible, the project team will try to minimize impact on staff by incorporating any baseline assumptions from prior city studies. Staff will be provided time to provide any edits or comments on time estimate information. Deliverable Time Estimate Workbook(s) Meetings 2-3 Virtual Time Estimate Workshops with Each Department Estimated City Support A& 1-4 hours per involved City Departments Project Timeline Weeks 3-8 Task 3 Develop Fully Burdened Hourly Rates Based on the City's staffing and budget information, the project team will calculate fully burdened hourly rates inclusive of direct and indirect costs. The following points highlight the cost components and factors included in fully burdened rates: • Direct costs: This component accounts for salary and benefits associated with each employee or position and is reflective of City staffing and salary reports. • Indirect costs - departmental: This component accounts for administrative and management support provided to line level staff, as well as operational services and supplies which are used in the execution of job duties. This cost component is developed through interviews with staff, as well as an analysis of budgets. • Indirect costs - citywide: This component accounts for citywide support such as Finance, HR, and Solicitor support provided by other city departments. This cost component is derived from the City's Cost Allocation Plan. Once the cost components have been documented and developed, the project team will review MOU's, and talk with departmental staff to determine appropriate productive hour calculations. This reduction in available hours will ensure that fully burdened hourly rates account for leave accruals (holiday, vacation, and sick), as well as any meetings or trainings. The project team will utilize the results of this task along with Task 2 to calculate the full cost of services. Deliverable Fully Burdened Hourly Rates Meetings Miglarilliir Virtual Meeting with Finance Estimated City Support., V.._ 1 hour for Finance 13 L:IcalAgreements\Matrix Consulting Group Agreement.PS-1.1.FY21-0I67.docx.jn Project Timeline Weeks 5-9 Task 4 Perform a Total Cost Analysis The Matrix Consulting Group's costing model is built based on the City's operations, budget detail and intended uses for the results. This method is a customized approach specific to each jurisdiction for cost analysis of user fee services. It is a "bottom -up" approach, which is the most defensible methodology for calculating user fees. The methodology incorporates the time estimate information (Task 2) and fully burdened hourly rate information (Task 3). The following graphic shows the cost calculation: Time Estimate Fully Burdened Rate Full Cost Fee This costing method uses time and annual activity level data to establish the cost of providing services on both a unit and annual level. Once the time spent for a fee activity is determined for each individual or position, the team uses its fee and rate software to apply the fully burdened hourly rates calculated in the previous task. Resulting costs are presented on a unit and annual Ievel and are compared to the existing fee schedule and revenue reports. The following graphic shows a sample presentation: Per Unit Surplus / Cost Recovery Fee Title Current Fee Total Cost Per Unit (Deficit) Per Unit Lot Line Adjustment $900 $1,557 ($657) 58% Temporary Use Permit $40 $325 ($285) 12% AVERAGE COST RECOVERY PER UNIT 35% Annual Revenue at Current Revenue at Full Annual Surplus/ Fee Title Workload Fee Cost (Deficit) Lot Line Adjustment 4 $3600 $6,228 ($2,628) Temporary Use Permit 60 $2400 $19,500 ($17,100) TOTAL $6,000 $25,728 ($19,728) As the example in the graphic above indicates, the per unit subsidy for the Lot Line Adjustment at $657 is more than double the per unit subsidy for the Temporary Use Permit. However, the annual results help provide Department management with some additional context, as due to the volume of activity, the larger impact to the Department is felt by the smaller subsidy for the Temporary Use Permit. 14 L:IcalAgreements\Matrix Consulting Group Agreement.PS- FY21-0167.docx.jn The City will obtain detailed information similar to that presented in the previous graphic regarding cost recovery surpluses and deficits on both a detailed (per unit) and global (annualized) level, as well as an understanding of cost components for each service. Task 5 Conduct a Market Rate Survey to Similar Jurisdictions The project team will work with the City to identify jurisdictions within Riverside County or other targeted jurisdictions for the fee comparison survey. This comparative survey activity will be conducted utilizing the following steps: • • • Developing fee scenarios for each department included in the study to be compared to other jurisdictions (i.e., Single Family Home 2,500 sq. ft. $325,000). Graphing the results of the fee analysis for easy visual comparison purposes. Collecting contextual information such as population size, budget, staffing, last time fee study was done, and last fee schedule update. As market surveys do not provide adequate or objective information about the relationship of a jurisdiction's costs to its fees, these steps ensure we provide the City with the most amount of information as possible. 410 lRl:ofoT.f iihow Task 6 Review / Revise Fee Study Results Because the analysis of fees for service is based on estimates and information provided by City staff, it is extremely important that all participants are comfortable with our methodology and with the data they have provided. Once the departments agree that the analysis reflects the reasonable costs of providing services, City management will have an opportunity to review the results. At this point in the process, the project team will provide Departments with Recommended Fee Workbooks. The Recommended Fee Workbooks allow the Departments to input information into the Recommended Fee column and then see its impacts such as the dollar increase, percentage increase, and what percentage of their current costs they are going to recover. to onto 15 L:\ca\Agreements\Matrix Consulting Group AgrcementPS-1.I.FY21-0167.docx.jn Task 7 Prepare a Draft User Fee Study Report Upon conclusion of the fee study, we will prepare a detailed report that summarizes the results of each of the previous work tasks described above. This report will include: A succinct executive summary discussing the study, methodology, and the results. A narrative describing the services included in the study. • A section on proposed modifications to the current fee schedule, including removal or addition of new fees for service. • A section on per unit and annual results for each fee included in the analysis and where workload data is available. • A comparative survey section outlining fees and their comparison to other local jurisdictions, as well as information regarding budget, staffing, and when they last conducted fee studies. The draft report will be provided to user fee departments and city staff for comments. Itligowr Task 8 Finalize Fee Study Report Any edits or revisions to the draft user fee study report will be incorporated into the finalized fee study report. This finalized fee study report will include all elements of the draft report and any additional cost recovery / policy considerations for council's review. Task 9 Master Fee Schedule Once the final user fee study report is approved, the project team will develop a master fee schedule, consolidating all fees in a singular location. The master fee schedule will include a numbering system, the department name, the fee title, the unit of application, the current fee, the total cost per unit calculated through the study, the surplus / (deficit), the cost recovery, the relevant rule and regulation that applies to the fee type, the staff recommended fee, and the staff recommended cost recovery level. This type of attachment is extremely helpful for staff as part of the staff report provided to Council. 16 L:\ca\Agreements\Matrix Consulting Group Agreement.PS-1.1.FY21-0167.docx.jn Task 10 Presentation of Results The presentation of results to City officials and/or stakeholders is critical to the success of the overall engagement. Because the product from the study is often controversial, the objective of this final step is to present a succinct summary that provides decision makers with key information. The Matrix Consulting Group will attend and present the Study at up to three Committee, Commission, or Council Meetings. 'to wursownciognorana Task 11 Excel -Based Models and Training 101.l�9 igtoli1; i o•'c'iri otonill Mt4» si°:akei 6V Pirvfi°<,�, Ri~P 6ua The City wishes to have the ability to update the final version of the User Fee Study, including the ability to add, revise or remove costs or service types. Our Excel -based models would provide the ability for the City to adapt and continuously update fee study results from year to year as the organization changes. While the model is structured in Excel, the technical model is proprietary and for internal use by City staff only. By having our model based in Excel, the requirements for software training, cost of new products, updates, licensing or other support, is minimized. After the final draft of the user fee study is approved, at the discretion of City staff, the project team would meet with and train designated City employees on use of the models. 01 rogibiofte Staff will be provided with training that includes: a step-by-step PowerPoint presentation; a User's Manual which explains key concepts, defines basic terms, includes a customized updated checklist of data that needs to be entered, and discusses different options. 17 L:\ca\Agreements\Matrix Consulting Group AgreementPS-1.1.FY21-0167.doex.jn EXHIBIT "B" Cost Proposal The following chart provides a breakdown of hours by team member and costs for each task area to conduct a Full Cost Allocation Plan and Comprehensive Citywide Fee Study. Project Project Lead Executive Manager Analyst Analyst Total Cost PROJECT WIDE TASKS Data Collection Study Objectives and Schedule Project Wide Tasks Subtotal FULL COST ALLOCATION PLAN Interview Staff & Gather Allocation Metrics Review Draft Allocation Metrics Structure Cost Model Draft Cost Report Final Full Cost Report Model & Training Full Cost Allocation Subtotal COMPREHENSIVE FEE STUDY Current & Potential Fees Time Data Workshops Fully Burdened Hourly Rates Total Cost Analysis Comparative Survey Review f Revise Results Draft Fee Study Report Final Fee Study Report Develop Master Fee Schedule Presentation of Final Report User Fee Models & Training Comprehensive Fee Study Subtotal Total Hours Hourly Rate Total Professional Fees 0 2 2 2 2 2 2 0 2 0 2 2 4 0 2 4 6 0 0 6 8 0 2 4 6 2 2 4 a 0 2 4 6 2 10 24 38 0 2 4 6 2 10 10 12 0 4 8 12 2 6 10 16 0 0 4 20 4 4 10 16 0 6 10 18 4 6 8 10 0 2 2 12 4 10 0 0 0 6 6 16 16 56 72 138 20 70 $225 $185 $4,500 $1Z950 98 180 $130 $110 $12,740 $19,800 $850 $1,040 $1,890 $1,070 $1,550 $1,660 $1,550 $2,220 $1,550 $9,600 $1,550 $4,920 $3,100 $4,620 $2,720 $4,700 $4,390 $4,150 $1,950 $2,750 $3,650 $38,500 $49,990 Total Project Cost 18 L:1calAgreementslMatrix Consulting Group Agreernent.PS-1.1.FY21-0167.docx $49,990 EXHIBIT "C" WORKERS' COMPENSATION INSURANCE CERTIFICATION Every employer, except the State, shall secure the payment of compensation in one or more of the following ways: (a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self -insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees. CHECK ONE I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and l will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861). I affirm that at all times, in performing the work and activities required er permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers' compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers' compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers' compensation insurance. I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct. MATRIX CONSULTING GROUP By: Date: Richard Brady 19 L:\ca\Agreemants\Matrix Consulting Group Agreement.PS-1.1.FY21-0167.docx