Loading...
HomeMy WebLinkAboutMaximus, Inc. 2007-04-23CONTRACT APPROVAIJAUTHORIZATION TO PROCEED fiction: When requesting City Manager approval/signature on a contract, submit the attached clist confirming proper review/approvals have been obtained, insurance documents have received and fundinglexpenditure authorizations approved. To: CITY MANAGER Submitted By: nor- _ r TAP Date: S-- Zt--o°> Not esd I RN d II ired I Recv II Description II Requ 1. Use of City's Professional Services Contract emplate (pre-approved by City Attorney) :\City Managefflisk Management\Contract Template Use of Vendors Contract (requires City Attorney review) Pied City Contract Tres City Attorney review) ' m 'B N 1 PL F a Y PA 4/23/2007 8:37 AM AGREEMENTFOR PROFESSIONAL CONSULTING SERVICES This Agreement, made and entered into this 23rd day of April, 2007 ("Effective Date"), by and between CITY OF UKIAH, CALIFORNIA, hereinafter referred to as "City" and MAXIMUS, Inc., a corporation [sole proprietorship, corporation, partnership, limited partnership, limited liability company, etc.] organized and in good standing under the laws of the state of Virginia, hereinafter referred to as "Consultant". RECITALS This Agreement is predicated on the following facts: a. City requires consulting services related to the preparation and valuation of the inventory of infrastructure assets of the City of Ukiah consistent with the requirements of the Governmental Accounting Standards Board (GASB) 34. b. Consultant represents that it has the qualifications, skills, experience and properly licensed to provide these services, and is willing to provide them according to the terms of this Agreement. C. City and Consultant agree upon the Scope-of-Work and Work Schedule attached hereto as Attachment "A", describing contract provisions for the project and setting forth the completion dates for the various services to be provided pursuant to this Agreement. TERMS OF AGREEMENT 1.0 DESCRIPTION OF PROJECT 1.1 The Project is described in detail in the attached Scope-of-Work (Attachment "A"). 2.0 SCOPE OF SERVICES 2.1 As set forth in Attachment "A". 2.2. Additional Services. Additional services, if any, shall only proceed upon written agreement between City and Consultant. The written Agreement shall be in the form of an Amendment to this Agreement. 3.0 CONDUCT OF WORK 3.1 Time of Completion. Consultant shall commence performance of services as required by the Scope-of-Work upon receipt of a Notice to Proceed from City and shall complete such services by no later than August 15, 2007. Consultant shall complete the work to the City's reasonable satisfaction; even if contract disputes arise or Consultant contends it is entitled to further compensation. Std - ProfSmAgreement-Apn12007 PAGE I OF 11 4.0 COMPENSATION FOR SERVICES 4.1 Basis for Compensation. For the performance of the professional services of this Agreement, Consultant shall be compensated on a time and expense basis not to exceed a guaranteed maximum dollar amount of $19,700.00. Labor charges shall be based upon hourly billing rates for the various classifications of personnel employed by Consultant to perform the Scope of Work as set forth in the attached Exhibit B, which shall include all indirect costs and expenses of every kind or nature, except direct expenses. The direct expenses and the fees to be charged for same shall be as set forth in Exhibit B. Consultant shall complete the Scope of Work for the not-to-exceed guaranteed maximum, even if actual time and expenses exceed that amount. 4.2 Changes. Should changes in compensation be required because of changes to the Scope-of-Work of this Agreement, the parties shall agree in writing to any changes in compensation. "Changes to the Scope-of-Work" means different activities than those described in Attachment "A" and not additional time to complete those activities than the parties anticipate on the date they entered this Agreement. 4.3 Sub-contractor Payment. The use of sub-consultants or other services to perform a portion of the work of this Agreement shall be approved by City prior to commencement of work. The cost of sub-consultants shall be included within guaranteed not-to-exceed amount set forth in Section 4.1. 4.4 Terms of Payment. Payment to Consultant for services rendered in accordance with this contract shall be based upon submission of monthly invoices for the work satisfactorily performed prior.to the date of the invoice less any amount already paid to consultant, which amounts shall be due and payable thirty (30) days after receipt by City. The invoices shall provide a description of each item of work performed, the time expended to perform each task, the fees charged for that task, and the direct expenses incurred and billed for. Invoices shall be accompanied by documentation sufficient to enable City to determine progress made and to support the expenses claimed. 5.0 ASSURANCES OF CONSULTANT 5.1 Independent Contractor. Consultant is an independent contractor and is solely responsible for its acts or omissions. Consultant (including its agents, servants, and employees) is not the City's agent, employee, or representative for any purpose. It is the express intention of the parties hereto that Consultant is an independent contractor and not an employee, joint venturer, or partner of Ukiah for any purpose whatsoever. Ukiah shall have no right to, and shall not control the manner*or prescribe the method of accomplishing those services contracted to and performed by Consultant under this Agreement, and the general public and all governmental agencies regulating such activity shall be so informed. Those provisions of this Agreement that reserve ultimate authority in Ukiah have been inserted solely to achieve compliance with federal and state laws, rules, regulations, and interpretations thereof. No such provisions and no other provisions of this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Consultant and Ukiah. Std - ProfSvesAgreement-ApriMN PAGE 2 OF 11 Consultant shall pay all estimated and actual federal and state income and self- employment taxes that are due the state and federal government and shall furnish and pay worker's compensation insurance, unemployment insurance and any other benefits required by law for himself and his employees, if any. Consultant agrees to indemnify and hold City and its officers, agents and employees harmless from and against any claims or demands by federal, state or local government agencies for any such taxes or benefits due but not paid by Consultant, including the legal costs associated with defending against any audit, claim, demand or law suit. Consultant warrants and represents that it is a properly licensed professional or professional organization with a substantial investment in its business and that it maintains its own offices and staff which it will use in performing under this Agreement. 5.2 Conflict of Interest. Consultant understands that its professional responsibility is solely to City. Consultant has no interest and will not acquire any direct or indirect interest that would conflict with its performance of the Agreement. Consultant shall not in the performance of this Agreement employ a person having such an interest. If the City Manager determines that the Consultant has a disclosure obligation under the City's local conflict of interest code, the Consultant shall file the required disclosure form with the City Clerk within 10 days of being notified of the City Manager's determination. 6.0 INDEMNIFICATION 6.1 Insurance Liability. Without limiting Consultant's obligations arising under Paragraph 6.2 Consultant shall not begin work under this Agreement until it procures and maintains for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with its performance under this Agreement. Std - ProfSvG5Agreement-Apri12007 PAGE 3 OF 11 A. Minimum Scope of Insurance Coverage shall be at least as broad as: Insurance Services Office ("ISO) Commercial General Liability Coverage Form No. CG 00 01 11 85. 2. ISO Form No. CA 0001 (Ed. 1/87) covering Automobile Liability, Code 1 "any auto" or Code 8, 9 if no owned autos and endorsement CA 0025. 3. Worker's Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. 4. Errors and Omissions liability insurance appropriate to the consultant's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability. B. Minimum Limits of Insurance Consultant shall maintain limits no less than: General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, the general aggregate limit shall apply separately to the work performed under this Agreement, or the aggregate limit shall be twice the prescribed per occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Worker's Compensation and Employers Liability: Worker's compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. 4. Errors and Omissions liability: $1,000,000 per occurrence. C. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects to the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Std - PmfSvcsAgreement-Apri12007 PAGE 4 OF 11 D. Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: General Liability and Automobile Liability Coverages a. The City, it officers, officials, employees and volunteers are to be covered as additional insureds as respects; liability arising out of activities performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope-of-protection afforded to the City, its officers, officials, employees or volunteers. b. The Consultant's insurance coverage shall be primary insurance as respects to the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. C. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. d. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Worker's Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from Consultant's performance of the work, pursuant to this Agreement. 3. Professional Liability Coverage If written on a claims-made basis, the retroactivity date shall be the effective date of this Agreement. The policy period shall extend from -tqy -1-r 241 to -tom r ea C 4. All Coverages Each Insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. Std - PmfSvesAgreement-Apri12007 PAGE 5 OF 11 Fax sIS : 7074636284 CITY OF UKIAH 85-31-8? 10:23 Pg: 2/2 D, Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following previsions- 1. General Liability and Automobile Liability Coverages a. The City, it officers, officials, employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned, hint or borrowed by the Consultant, The coverage shall contain no special limitations on the scope-of-protection afforded to the City, its officers, officials, employees or volunteers. b_ The Consultant's insurance coverage shall be primary insurance as respects to the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. C. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers- d. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workees Corrvensation and Ermioyers Liabi& Coverabe The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from Consultant's performance of the work, pursuant to this Agreement. 3. Professional Liability Coverage If written on a claims-made basis, the retroactivity date shalt be the effective dale of this Agreement. The'Po#I y period shall extend from Aom-f 2 J to 28m'r 1. 4. All Covers es Each insurance p that coverage shy reduced in oovem notice by certified city. Std _ Pt TVMA90"n Utt•Apr 122 PAGB 5 OF t 3 hall be endorsed to state canceled by either party. rty (30) days prior written d, has been given to the rl z : Ba 91: 11 1.6i-1R-qA QJ 1 Flc7Gcac • W13.1 1 )(P .T E. Acceptability of Insurers Insurance is to be placed with admitted California insurers with an A.M. Best's rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. F. Verification of Coverage Consultant shall furnish the City with certificates of Insurance and with original Endorsements effecting coverage required by this Agreement. The Certificates and Endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The Certificates and Endorsements are to be on forms provided or approved by the City. Where by statute, the City's Workers' Compensation - related forms cannot be used; equivalent forms approved by the Insurance Commissioner are to be substituted. All Certificates and Endorsements are to be received and approved by the City before Consultant begins the work of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. If Consultant fails to provide the coverages required herein, the City shall have the right, but not the obligation, to purchase any or all of them. In that event, the cost of insurance becomes part of the compensation due the contractor after notice to Consultant that City has paid the premium. G. Subcontractors If Consultant uses subcontractors or sub-consultants, it shall cover them under its policies or require them to separately comply with the insurance requirements set forth in this Paragraph 6.1. 6.2 Indemnification. Notwithstanding the foregoing insurance requirements, and in addition thereto, Consultant agrees to indemnify the City for any claim, cost or liability that arises out of, or pertains to, or relates to the performance of services under this contract by Consultant, but this indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by the City, or arising from the active negligence of the city. "Indemnify," as used herein includes the expenses of defending against a claim and the payment of any settlement or judgment arising out of the claim. Defense costs include all costs associated with defending the claim, including, but not limited to, the fees of attorneys, investigators, consultants, experts and expert witnesses, and litigation expenses. References in this paragraph to City or Consultant include their officers, employees, agents, and subcontractors. 7.0 CONTRACT PROVISIONS 7.1 Ownership of Work. All documents furnished to Consultant by City and all documents or reports and supportive data prepared by Consultant under this Agreement are owned and become the property of the City upon their creation and shall be given to City Std - ProfSvesAgreemen[-Apri12007 PAGE 6 OF I I immediately upon demand and at the completion of Consultant's services at no additional cost to City. Deliverables are identified in the Scope-of-Work, Attachment "A". All documents produced by Consultant shall be furnished to City in digital format and hardcopy. Consultant shall produce the digital format, using software and media approved by City. 7.2 Governing Law. Consultant shall comply with the laws and regulations of the United States, the State of California, and all local governments having jurisdiction over this Agreement. The interpretation and enforcement of this Agreement shall be governed by California law and any action arising under or in connection with this Agreement must be filed in a Court of competent jurisdiction in Mendocino County. 7.3 Entire Agreement. This Agreement plus its Attachment(s) and executed Amendments set forth the entire understanding between the parties. 7.4 Severability- If any term of this Agreement is held invalid by a court of competent jurisdiction, the remainder of this Agreement shall remain in effect. 7.5 Modification. No modification of this Agreement is valid unless made with the agreement of both parties in writing. 7.6 Assignment. Consultant's services are considered unique and personal. Consultant shall not assign, transfer, or sub-contract its interest or obligation under all or any portion of this Agreement without City's prior written consent. 7.7 Waiver. No waiver of a breach of any covenant, term, or condition of this Agreement shall be a waiver of any other or subsequent breach of the same or any other covenant, term or condition or a waiver of the covenant, term or condition itself. 7.8 Termination. This Agreement may only be terminated by either party: 1) for breach of the Agreement; 2) because funds are no longer available to pay Consultant for services provided under this Agreement; or 3) City has abandoned and does not wish to complete the project for which Consultant was retained. A party shall notify the other party of any alleged breach of the Agreement and of the action required to cure the breach. If the non-breaching fails to cure the breach within the time specified in the notice, the contract shall be terminated as of that time. If terminated for lack of funds or abandonment of the project, the contract shall terminate on the date notice of termination is given to Consultant. City shall pay the Consultant only for services performed and expenses incurred as of the effective termination date. In such event, as a condition to payment, Consultant shall provide to City all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by the Consultant under this Agreement. Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder, subject to off-set for any direct or consequential damages City may incur as a result of Consultant's breach of contract. 7.10 Duplicate Originals. This Agreement may be executed in duplicate originals, each bearing the original signature of the parties. When so signed, each such document shall be admissible in administrative or judicial proceedings as proof of the terms of the Agreement between the parties. 8.0 NOTICES Std - ProfSvcsAgreement-Apri12007 PAGE 7 OF 11 Any notice given under this Agreement shall be in writing and deemed given when personally delivered or deposited in the mail (certified or registered) addressed to the parties as follows: 9.0 SIGNATURES CONSULTANT 6-4 _ Jotudsws IRS IDN Number CITY OF UKIAH ATT: Brent Smith FINANCE DEPT. 300 SEMINARY AVE. UKIAH, CA 95482-5400 IN WITNESS WHEREOF, the parties have executed this Agreement the Effective Date: MAXIMUS, INC ATT: David. E. Middendorf ASSET SOLUTIONS DIV. 20055 SW PACIFIC HWY., STE 107 SHERWOOD, OR 97140 CITY OF UKIAH BY: CANDACE HORSLEY CITY MANAGER -3 0 - Date 5-30-07 Date APPROVED AS TO FORM: DA 1 PO T CITY ATTORNEY, CITY OF UKIAH Std - ProfSvcsAgceement-Apri12007 PAGE 8 OF 11 Attachment "A" SCOPE OF WORK The inventory and valuation should include all infrastructure assets and improvements required by GASB Statement No. 34 not currently in the City's fixed asset system. Location maps of various network infrastructure assets will be developed and/or provided after contract execution, in conjunction with the City Public Works, Utilities, Finance and/or Information Systems staff. Successful bidder will be expected to provide guidance and assistance to City staff in developing necessary data for determining value of infrastructure including the following: Streets, Sidewalks, Bridges & Culverts, Curbs & Gutters, Water, Sewer and Drainage Systems, Street Lights, Signage, Traffic Control Signals, Medians and Parkways. Land associated with these assets shall be valuated separately. Note: the City of Ukiah maintains a Pavement Management Program. The objective is to provide the City with comprehensive asset management reports which include an inventory of GASB 34 infrastructure assets as well as the determination of historical costs. The principal goals of this engagement are to develop an asset management system that will ensure the ability of the city to book its infrastructure assets using the depreciation method. It must include an up-to-date inventory of infrastructure assets in the City. Specific Tasks required include: 1. Review maps, drawings and other information available to facilitate the inventory and valuation. This review process will need to include onsite data collection and fieldwork. 2. Use actual cost to establish value and, when actual cost information is not available, use generally accepted appraisal practices. 3. The determination of the depreciable lives, accumulated depreciation and annual depreciation for all infrastructure assets. 4. All roads in the city should be capitalized collectively by networks and subsystems. 5. Use the actual date of acquisition or construction to establish acquisition date and when such information is not available, use observed condition or other available data to establish and approximate in-service date. 6. Be prepared to explain and document the methodology used to establish value and/or in-service date. 7. Provide the master file of infrastructure valuation data in an electronic worksheet format as well as hard copy. 8. Summarize the approach and understanding of the project and any special considerations of which the City should be aware. 9. Fully describe all tasks to be performed including field inventory procedures, costing techniques and procedures. 10. Provide a detailed and complete project schedule including milestones and deliverables. Std - ProfSmAgmement-Apri12007 PAGE 9 OF 11 WORKPLAN PLANNING STAGE - The MAXIMUS Project Director will coordinate with the Project Manager and discuss the scope of services. The Project Manager can prepare a tentative schedule for the City to review and distribute to all involved City personnel. A project kickoff meeting will be conducted by the Project Manager and is an opportunity for questions and answers. The RFP mentions requests the identification of anticipated potential problems and from our standpoint we see none. The only problems would stem from City employees keeping data from us for any reason although we certainly don't anticipate this to happen. ONSITE FIELDWORK - The MAXIMUS appraisal team will conduct onsite fieldwork beginning with the Project Kickoff Meeting. All applicable City personnel should attend. This meeting is followed up by the commencement of data collection. Data collection will occur with some assistance from City personnel in order to identify the format of existing data, extensiveness of that data as well as a method for extracting that data for upcoming valuations and reporting. Our goal is to minimize the time City personnel must put forth while maintaining completeness in our investigation. OFFSITE VALUATIONS - The MAXIMUS appraisal team will take all data collected while onsite and begin compiling and formatting the information. This phase of work is time consuming and includes not only the valuations of infrastructure components, but preparation of the data in a format that is ready for our ISG team as well. DEPORTS PRODUCTION - Certified appraisal reports are presented in an easy-to-read format. MAXIMUS will provide insurance summary and detail reports. The certified appraisal reports are prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) and will include a Letter of Certification, which will: (a) Identify the property appraised (b) State the purpose and date of the appraisal (d) Define the level of value sought and the premise of value employed (e) Describe the nature of the property included in and excluded from the appraisal (f) Discuss the appraisal investigation (g) Indicate the factual data considered (h) Present the conclusions of value (1) Outline the qualifying and limiting conditions 0) Include the signature of an authorized officer of the Company DELIVERABLES Draft summary and detail reports will be sent to the City via email in a pdf format for City review. The City will have the opportunity to review the reports prior to finals being printed. Detail as well as summary reports are included in the final product. A narrative section that will certify our appraisal and document our procedures will precede your reports. Your reports will include: Ar, AccountinL Reports ® Accounting Summary Report Sorted by Fund, Asset Type ® Accounting Detail Reports Sorted by Fund, Location ® Current year Depreciation Summary by Program -1- Electronic Reports MAXIMUS will provide electronic data in Excel format containing data developed as a result of our study for City use. A file layout with descriptive abbreviations will accompany the data. TIME SCHEDULE The City requires the project completed to the point of providing GASB 34 compliant reports by no later than August 15, 2007. These reports will be used for the City's audited financial statements for the fiscal year ended June 30, 2007. Std - ProfSmAgreement-Apri12007 PAGE 10 OF 11 Attachment "B" COMPENSATION HOURS & FEES BREAKDOWN PROJECT PREPARATION PROJECT MANAGER - 08 HOURS X $125HOUR = ONSITE DATA COLLECTION PROJECT MANAGER - 32 HOURS X $125/HOUR = STAFF APPRAISER - 32 HOURS X $100/HOUR = OFFSITE VALUATIONS PROJECT MANAGER - 68 HOURS x $125/HOUR = REPORTS PREPARATION $ 1,000 $ 4,000 $ 3,200 $ 8,500 $16,700 APPRAISAL LABOR FEES PROCESSOR - 08 HOURS X $125/HOUR= $ 1,000 $17,700 SUB TOTAL $ 2,000 TRAVEL EXPENSES $19,700 TOTAL PROJECT FEES* *This is a not to exceed fixed fee including all out-of-pocket expenses as well as limited future consultation as necessary to clarify issues in the report by the City's auditors or staff. TERMS 1. The fees proposed in this contract are valid for a period of 90 days. 2. MAXIMUS shall not be liable for indirect, special, consequential or punitive damages. MAXIMUS' liability to the City or any third party shall not exceed the total amount to be paid to MAXIMUS under this agreement. 3. MAXIMUS will invoice for 50% of fees upon completion of the fieldwork portion of the project; the final contract amount invoiced with our final reports. Std - ProfSvesAgreement-Apri12007 PAGE 11 OF 11 GL110I 20 CITY OF UKIAH FINANCE DEPT. General Ledger Inquiry Account Summary 699.1201.800.004 1)SPECIAL PROJECTS RESERVE 2)CITY MANAGER 3)ADMINISTRATIVE PROJECTS 4)GASB 34 CONSULTANTS PERIOD MONTH YTD 4/30706 0.00 0.00 5/31/06 0.00 0.00 6/30/06 0.00 0.00 FYE 2006 0.00 0.00 7/31/06 0.00 0.00 8/31/06 0.00 0.00 9/30/06 0.00 0.00 10/31/06 0.00 0.00 11/30/06 0.00 0.00 12/31/06 0.00 0.00 1/31/07 0.00 0.00 2/28/07 0.00 0.00 3/31/07 0.00 0.00 4/30/07 0.00 0.00 CURRENT 60,000.00OR ADOPTED BUDGET 60,000.OOCR REVISED BUDGET 0.00 0.00 60,000.OOCR 100 Current Period Current Year Remaining % Remaining Detail to Display.... A (A/B/D/E/P/I/0) Show Detail Starting At 0,7, / 0,1, / ,2,0,0,6, B/F/S/R/. ACTION?_ ITEM NO: 7d MEETING DATE: April 18, 2007 AGENDA SUMMARY REPORT SUBJECT: AUTHORIZE THE CITY MANAGER TO NEGOTIATE A PROFESSIONAL SERVICES CONTRACT WITH MAXIMUS TO PROVIDE INFRASTRUCTURE INVENTORY AND VALUATION SERVICES CONSISTENT WITH THE REQUIREMENTS OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) 34 BACKGROUND: In June 1999, the Governmental Accounting Standards Board ("GASB") issued Statement No. 34 ("GASB 34") titled "Basic Financial Statements - and Management Discussion and Analysis - for State and Local Governments", known as the "New Governmental Financial Reporting Model" ("New Reporting Model"). This statement established a new financial reporting format for state and local governments, and represents the largest single change in the history of governmental accounting and financial reporting. With the development and release of Statement No. 34, GASB elected to incorporate some of the most popular features of traditional financial reporting found in annual reports of publicly traded companies into the New Reporting Model, including: A narrative overview and analysis in the form of Management's Discussion and Analysis ("MD & A") in a format similar to what is commonly presented in the front of annual reports of publicly traded companies; RECOMMENDED ACTION: 1) Award a professional services contract to MAXIMUS in the amount of $19,700 for the preparation and valuation of the inventory of infrastructure assets of the City of Ukiah for implementation of GASB Statement No. 34, and authorize the City Manager to negotiate contract language and execute the agreement . ALTERNATIVE COUNCIL OPTIONS: Do not award the bid. FUNDING: Amount Budgeted Account Number Additional Funds Requested $60,000 699.1201.800.004 N/A Requested by: Prepared by: Brent Smith, Finance Director Coordinated with: Candace Horsley, City Manager Approved: Aln Candace Horsley, City anager ➢ Expanded budgetary reporting, including comparisons of actual results with the original budget and the final (amended) budget; and ➢ Government-wide (consolidated) financial statements that provide a clear picture of the whole Cam, rather than individual fund statements; ➢ Lastly, capitalization and depreciation of the City's "infrastructure assets" (e.g. roads, sewer system and drainage system) that will require the preparation of the necessary detailed infrastructure inventory. The infrastructure inventory is the only outstanding element left for the City to implement Prior to the adoption of the New Reporting Model, the financial statements of public agencies generally included land, buildings and equipment only. After adoption of the New Reporting Model, the City's financial statements will now have to include roadways, sewer systems, drainage systems and other infrastructure assets. In many cities and governmental agencies, many of these infrastructure systems were constructed using debt financing, rather than cash reserves. After the adoption of the New Reporting Model, financial advisors and other interested parties will be able to compare the agency's cost and depreciated value of sewers, storm drains and other infrastructure assets with the amount of debt used to finance their construction. In addition, the City Council, staff, financial advisors and the City's residents will be able to analyze the amount of its investment and depreciated book value of the entire infrastructure of the City. The City is Ukiah is required to implement ALL provisions of GASB 34 with the issuance of its audited financial statements for FY2006-2007. By approving Staffs request, this should provide staff with adequate time to complete the final element of inventory and ensure compliance by the required date (September 1, 2007), especially in light of the significant amount of work required to conduct the infrastructure inventory. Non-compliance with Statement No. 34 would require the City's auditors, Davis Hammon & Co. to issue a qualified opinion (rather than an unqualified "clean" opinion), rendering the annual financial statements to be non-compliant with federal and state legal requirements. This would result in the City's bond ratings to fall to an unacceptable risk category and may require the repayment of federal and state funds deemed ineligible. PROCESS: We received a total of eight responses out of the eighteen vendors who received the GASB 34 Request for Proposals (RFP). Staff was quite pleased with the response rate. Staff used the following criteria which were listed in the RFP to evaluate each of the bids received and assigned points to each in order to score and rank accordingly: A. Criteria i. The firm's licensing, independence with respect to the City of Ukiah. ii. Qualifications and related experience of the team who will serve the City of Ukiah (Partner, Manager and Senior Staff). iii. Experience of the firm providing GASB34 services to California Cities. iv. Reference of Local Government Clients. v. Thoroughness of approach to providing GASB 34 services to the City of Ukiah, including adequacy of analytical procedures and types of assistance expected from City staff. vi. Demonstration of the understanding of the objectives and scope of the work. vii. Commitment to timeliness in the conduct of the work. viii. Maximum fees to conduct /provide the services. ix. Adherence to the instructions in this request for proposal on preparing and submitting the proposal. The evaluation staff consisted of three individuals, (two from Finance and one from Engineering) who reviewed, rated and discussed each proposal. The list of qualified bids was narrowed down to three qualified vendors who are listed below (including their related pricing) GK & Associates $23,365 Maximus $19,700 American Appraisal Associates $12,500 After a thorough review process, Staff's recommendation to Council is to award the qualified bid to MAXIMUS. This firm put together a very strong proposal that clearly defined the scope of work in detail and which supported all the other necessary RFP criteria. Even though the quote was in the middle ground of the bids received, the proposal contained adequate hours in order to adequately perform on- site infrastructure data collection as well as all other tasks of the project. Another part of the selection of MAXIMUS is that the firm's personnel have engineering, accounting and state & local government experience. One last critical item in the selection of MAXIMUS was their past experience in this type of project along with their strong list of municipal clients that they have provided GASB 34 asset valuation services for. CONCLUSION: Based on a thorough evaluation of the eight proposals received, staff recommends awarding a professional services contract to MAXIMUS for the inventory and valuation of the City's infrastructure assets. If the City Council is in agreement, staff suggests authorizing the City Manager to negotiate and execute a professional services agreement with the firm. FISCAL IMPACT: The FY2006-2007 City budget includes an appropriation'of $60,000 for GASB 34 services. The contract amount proposed by MAXIMUS is $19,700. JocS From: Sue Goodrick [mailto:sueg@cityofukiah.com] Sent: Thursday, May 17, 2007 7:53 AM To: 'Mary Horger' Cc: 'Brent Smith; Debbie Pollock Subject: RE: CITY OF UKIAH CERTIFICATE - GL Endorsement Importance: High MY APOLOGIES - I hadn't gotten through all my emails BEFORE I sent the one regarding Auto Insurance. WE ARE GOOD TO GO!!!!! Sue I'll provide copies to Debbie for file. HOORAYM From: Mary Horger [mailto:maryh@cityofukiah.com] Sent: Wednesday, May 16, 2007 6:56 AM To: Sue Goodrick Cc: Brent Smith Subject: FW: CITY OF UKIAH CERTIFICATE - GL Endorsement Good morning, Sue: Here is the add'I insured for the GL. Can you review for adequacy? Thanks. Mary AC CERTIFICATE OF NIlaD1YY) DATE (M LMBMTY INSURANCE 04/2 4/07 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION MARSH USA INC. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE SUITE 400 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 1255 23RD STREET, N.W. ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. WASHINGTON, DC 20037 COMPANIES AFFORDING COVERAGE Attn: SHARON HENNING - T-202-263-7600 COMPANY 500625-GAUW-06-07 A FEDERAL INSURANCE CO INSURED COMPANY MAXIMUS, INC. AND ALL SUBSIDIARIES B TWIN CITY FIRE INSURANCE COMPANY 11419 SUNSET HILLS ROAD RESTON, VA 20190 COMPANY C HARTFORD INSURANCE CO. OF THE MIDW EST COMPANY D COVERAGES This certificate supersedes and replaces any previously issued certificate. 5 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSU RANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE (MMIDD/YY) DATE (MM/DD/YY) GEN ERAL LIABILITY GENERAL AGGREGATE $ 2,000,000 A X COMMERCIAL GENERAL LIABILITY 3537-42-97 05/01/06 05/01/07 PRODUCTS - COMP/OP AGG $ 2,000,000 CLAIMS MADE ® OCCUR PERSONAL & ADV INJURY $ 1,000,000 OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE $ 1,000,000 FIRE DAMAGE (Any one fire) $ 1,000,000 MED EXP An one person) $ 10,000 AUT OMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 A X ANY AUTO 74978992 (ACS) 05/01/06 05/01/07 A ALL OWNED AUTOS 74978994 (VA) 05/01/06 05/01/07 BODILY INJURY $ (Per person) SCHEDULED AUTOS HIRED AUTOS BODILY INJURY $ (Per accident) NON-OWNED AUTOS PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM $ WO RKERS COMPENSATION AND EMP LOYERS' LIABILITY X TORY LIMBS ER B IOWBRMF5811 (WI) 05/01/06 05/01/07 EACH ACCIDENT $ 1,000,000 C THE PROPRIETOR/ X INCL 1 OW NMF5810 (AOS) 05/01/06 05/01/07 DISEASE - POLICY LIMIT $ 1,000,000 PARTNERS/EXECUTIVE OFFICERS ARE: EXCL DISEASE - EACH EMPLOYEE $ - 1,000,000 OTHER DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS RE: INFRASTRUCTURE VALUATION PROJECT STARTING APRIL 23, 2007 AND COMPLETING BY AUGUST 15, 2007 THE CITY OF UKIAH, ITS EMPLOYEES AND ITS AGENTS AR E INCLUDED AS ADDITIONAL INSUREDS UNDER THE GENERAL LIABILITY AND AUTOMOBILE LIABILITY COVERAGES AS REQUIRED BY CONTRACT WITH THE NAMED INSURED. CERTIFICATE' HOLDER CLE-00 1 5606 1 0-20 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURANCE COMPANY WILL ENDEAVOR TO MAIL CITY OF UKIAH 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, 300 SEMINARY AVENUE UKIAH, CA 95482 BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE =N _ Timothy M. Sasser ACORD 25 (11/05) © AC ORD CORPORATION 1988"` DATE(MM/DD/YYYY) A CORD., CERTIFICATE OF PLIABILITY INSURANCE 04/24/2007 PRODUCER Aon Risk Services Inc. of Washington, D.C./ Hunt , THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY 200 East Randolph AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS Chicago IL 60601 USA CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # PHONE-C866) 283-7122 FAX 847 953-5390 INSURED INSURER A: American international specialty Lines 26883 MAXIMUS, Inc. 11419 Sunset Hills Road INSURER B: Reston vA 20190 USA ' INSURER C: INSURER D: ' INSURER E: COVER-AGES SIR may App! 7Y THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR ADD' INSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE(MM\DD\YY) POLICY EXPIRATION DATE(MM\DD\YY) LIMITS ERAL LIABILITY EACH OCCURRENCE COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED PREMISES (Ea occurence) CLAIMS MADE M OCCUR MED E (Anv one person) PERSONAL & ADV INJURY GENERAL AGGREGATE GENT, AGGREGA'T'E LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG PRO- POLICY 1 ❑ ❑ 1 LOC JECr AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT ANY AUTO (Ea accident) ALL OWNED AUTOS BODILY INJURY SCHEDULED AUTOS ( Per Person) HIRED AUTOS BODILY INJURY NON OWNED AUTOS (Per accident) PROPERTY DAMAGE (Per accident) GARAGE LIABILITY AUTO ONLY - EA ACCIDENT ANY AUTO OTHER THAN EA ACC • ® AUTO ONLY AGO EXCESS [UMBRELLA LIABILITY EACH OCCURRENCE ❑ OCCUR ❑ CLAIMS MADE AGGREGATE H DEDUCTIBLE RETENTION - WC STA TU TH- O WORKERS COMPENSATION AND T EMPLOYERS' LIABILITY E.L. EACH ACCIDENT ANY PROPRIETOR / PARTNER / EXECUTIVE OFFICEWMEMBER EXCLUDED? E.L. DISEASE-EA EMPLOYEE byes, describe under SPECIAL PROVISIONS E.L. DISEASE-POLICY LIMIT below A 006268919 05/01/06 $1,000,000 OTHER Professional Liability Prof Liability DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS RE: David E. Middendorf. Infastructure valuation Pr oject starting April 23, 2007 and completing by August 15, 2007. OERTIFFCATE HOLDER CANCF LLATdON city of Ukiah SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION 300 seminary Avenue DAIT THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL Ukiah CA 95482 USA 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT'. BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE i! 1~G6~ ~T}..1_ Camu,w q 1&4W& TF ACORD 25 2Q!7/08 ACORD CORPORATION 1983 O z O u 'G c. U 05/16/2007 07:42 FAX 2125538261 Q001 POLICY NUMBER: 10 UEN TE5891 K1 COMMERCIAL GENERAL LIABILITY CG 20 26 07 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s) CITY OF UKIAH 300 SEMINARY AVENUE UKIAH, CA 95482-5400 Information required to complete this Schedule, if not shown above, will be shown in the Declarations. Section II - Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: A. In the performance of your ongoing operations; or B. In connection with your premises owned by or rented to you. CG 20 26 07 04 0 ISO Properties, Inc., 2004 Page 1 of 1 05/16/2007 09:27 FAX 2125538261 IM 001 TE9901B (Ed. Effective 3/92) ADDITIONAL INSURED This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM 10 UUN TE6206 The provisions and exclusions that apply to LIABILITY COVERAGE also apply to this endorsement. CITY OF UKIAH- 300 SEMINARY AVENUE, UKIAH, CA 95482-5400 (Enter Name and Address of Additional Insured.) is an insured, but only with respect to legal responsibility for acts or omissions of a person for whom Liability Coverage is afforded under this policy. The additional Insured is not required to pay for any premiums stated in the policy or earned from the policy. Any return premium and any dividend, if applicable, declared by us shall be paid to you. You are authorized to act for the additional insured in all matters pertaining to this insurance. We will mail the additional insured notice of any cancellation of this policy. If the cancellation is by us, we will give ten days notice to the additional insured. The additional insured will retain any right of recovery as a claimant under this policy. Form TE 99 01 B v,laiver of Cur Rf-- tmi .whu- HTK Ild i I Ierr 1' III= p IA a efI[ i y as I,jr i trial v, K is J I HE H n[ : -11_ A S J(E.'-NCE C5 7 d;-- ak¢rjf t(Inr i' :_--u tghQS as t. mo do, afsabd pA y 'nlms awMo PFw . d is Na In ured anf' A. ~I t h~w tL~ ~r ni_~ P um gyan:a'Vu . vy i x_11 M or"! A: ,rM n_ ,_rwc_ Ur - ir';I i x r qan r, un : art d h the Wank s a r"m r - I , an V K Mn rrr. ,rk - ',-n r _.0 a -m: r elm s you 505b th.: 3 rc- m nt `r" wi T aT sum r wea& d j,__ ; sir Adirecdyto benef~-_r4ar iW named m r' T",_ ITAMED UNWURED F"> B WRITTEN GJNTRACT TO V 00 03 13 FUled in .S.A. Countersigned by AUfflari r. c CITY F KI INSURANCE REQUIREMENTS CONSULTANTS Consultant(s) shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant(s), his agents, representatives, or employees. L Minimum Scope of Insurance Coverage shall be at least as broad as: A. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). B. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). C. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. D. Errors and Omissions liability insurance appropriate to the consultant's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability. II. Minimum Limits of Insurance Consultant shall maintain limits no less than: A. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations, as applicable. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. B. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. C. Workman's Compensation Employer's Liability: $1,000,000 per accident for bodily injury or disease. D. Errors and Omissions liability: $1,000,000 per occurrence. Ill. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officers, officials, employees and volunteers; or the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. IV. REQUIRED Insurance Provisions Proof of general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: A. The City, its officers, officials, employees, and volunteers are to be covered as ADDITIONAL INSURED with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts or equipment, furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance, or as a separate owner's policy. B. The workers' compensation policy is to be endorsed with a waiver of subrogation. The insurance company, in its endorsement, agrees to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the City. NOTE: You cannot be added as an additional insured on a workers' comp policy. C. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance with respect to the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be in excess of the Consultant's insurance and shall not contribute with it. D. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. E. Note: (This protects the Consultant) -Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of Civil Code. V. RATING - Acceptability of Insurers Insurance is to be placed with admitted California insurers with a current A.M. Best's rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. VI. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City. If endorsements are on forms other than the City's forms, those endorsements or policies must conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time. If you have questions regarding our insurance requirements contact: Risk Manager (707) 463-6287 or FAX (707) 463-6204 01/07