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HomeMy WebLinkAboutAgr 2011-02-15 (MGT of America, Inc.)MGT Sacramento 2001 P Street Suite 200 Sacramento, CA 95811 p: (916) 443-3411 f: (916) 443-1766 www.mgtofamerica.com March 16, 2011 MGT OF AMERICA, I N C. Ms. Heidi Bigall Dir. of Admin. Services Town of Tiburon 1505 Tiburon Blvd. Tiburon, CA 94920 Dear Heidi: LIAR 21 2011 ! d iS s Enclosed, please find a copy of the Professional Services Agreement signed by Brad Burgess. Please let me know if you have any questions at all. I can be reached during regular business hours at 916-443-3411, or by e-mail at dlachape@mgtainer.com. Additionally, I can be reached anytime on my cell phone at 916-716-0077. Enjoy this beautiful spring weather! Sincerely, Diona LaChapelle MGT of America, Inc. Enclosure AGREEMENT FOR PROFESSIONAL SERVICES - STATE MANDATED COST RECOVERY THIS AGREEMENT, made and entered this ISRday of CgggA , 2011, by and between the TOWN OF TIBURON, a political subdivision of the State of California, hereinafter called "Town," and MGT OF AMERICA, INC, Florida corporation licensed to do business in California, hereinafter referred to as "Consultant," RECITALS A. The Town is entitled to reimbursement by the State of California for certain costs incurred pursuant to State mandates. Such claims must be processed through the Office of the California State Controller ("Controller"). B. Consultant has particular expertise in the recovery of reimbursable costs, such that the Town finds that it is in the Town's interest to retain Consultant to assist in obtaining the reimbursement for which Town is eligible. C. The parties wish to contract for the Consultant to provide the services described in Exhibit A ("Services"), which is attached hereto and incorporated herein by reference, in accordance with all applicable State requirements. AGREEMENT 1. Scope of Services. Consultant shall perform, and carry out in a professional manner the Services described in Exhibit 1, Proposal, which is attached hereto. The Proposal is incorporated herein by reference except to the extent that it is conflicts with the remainder of this Agreement. 2. Costs and Method of Compensation. Consultant's total compensation for the Services shall be one thousand five hundred dollars per year ($1,500), payable in two installments. During the current year, Consultant will submit the first invoice, for 50% of the total after completing data collection but prior to filing state mandated cost claims; Consultant will submit the second invoice, for the remaining 50% after Consultant has filed all eligible annual claims with the state. If the Town elects to renew this agreement for fiscal year 2011-2012 and/or fiscal year 2012-2013 as set forth in Section II.b of the Proposal, the Consultant will submit its first invoice after Consultant's initial on-site visit and the second invoice, for the remaining 50%, after Consultant has filed all eligible annual claims with the state. 3. Standard of Work; Indemnity. Consultant shall perform the services in a skillful and professional manner compatible with the usual, customary standard of Consultant's profession. Consultant shall indemnify, defend and hold Town harmless from and against claims, liabilities, suits, loss, cost, expense and damages to the extent caused by a negligent act or omission of Consultant's in the performance of the Services pursuant to this Cost Reimburs. Claims, MGT 2-17-11.doc Agreement. 4. Consultant as Independent Contractor. Consultant (including its agents and employees) is not an agent or employee of the Town but is an independent contractor not subject to the direction and control of the Town. Without limiting the foregoing, Consultant shall maintain complete control of its operations and personnel and shall be solely liable and responsible to pay all required salaries, wages, expenses, taxes and other obligations, including, but not limited to, withholding and Social Security. 5. Audit of Books and Records. Town may, in its sole discretion, undertake an independent audit and/or evaluation of the Consultant's records and accounts of expenditures and program activities at its own expense. Consultant shall furnish all items necessary in the Town's discretion to complete said audit and/or evaluation subject to restrictions on confidentiality limited to expenditure or receipt of program funds, and program quality. 6. Insurance. Consultant shall maintain insurance as set forth below. Town shall be added as an additional insured to all required insurance policies. Coverage shall be primary and non- contributory as to the Town. A. Commercial General Liability: Combined single limit of $1,000,000 for each single occurrence and $2,000,000 annual aggregate. B. Commercial Automobile Liability: Combined single limit of $1,000,000 for each single occurrence and $2,000,000 annual aggregate. 7. Ownership of Documents; Re-Use; Indemnity. A. All documents prepared by Consultant pursuant to this Agreement shall be the property of Town. Town acknowledges that said documents are prepared for use only in connection services described in Exhibit A. Consultant makes no representation that said documents are suitable for re-use for any other purpose. Any such re-use by Town without specific written approval by Consultant shall be at Town's sole risk. Town shall indemnify and hold Consultant harmless from all claims, losses, damages and expenses, including attorneys fees, which may arise from Town's unauthorized re-use of said documents for another project or for any expansion of the Project. B. Nothing in this Section is intended nor shall it be construed to require Consultant to provide its proprietary state mandated cost claiming software to the Town 8. Stop Work Order. Town may at any time, by written notice to Consultant ("Stop Work Order"), require Consultant to stop or suspend performance of the Services, in whole or in part, for a period of up to ninety days after such notice is delivered to Consultant. Upon receipt of the Stop Work Order, Consultant shall immediately comply therewith and take all reasonable steps to minimize the incurrence of costs allocable to the Services covered by the Stop Work Order during the period of work stoppage. Within ninety days of the delivery of the Stop Work Order, or such later time as may be agreed to by the parties, Town shall 2 Cost Reimburs. Claims, MGT 2-17-11.doc either cancel the Stop Work Order or terminate this Agreement as provided in Paragraph 13. Consultant shall resume work upon the cancellation of the Stop Work Order. To the extent that the Stop Work Order results in a documentable increase in the cost of performing the Services or the time required for such performance, Consultant shall receive an equitable adjustment in compensation or an extension of time for performance, as appropriate. 9. Delinquency. In the event that a proper invoice remains unpaid for more than 45 days after submittal, Consultant may commence to charge interest of the unpaid amounts at the lesser of 1.5% per month or the maximum rate allowed under applicable usury laws. In addition, Consultant may suspend the performance of the Services after giving Town 10 days notice of its intent to do so. 10. Termination of Contract. It is expressly understood that either party shall have the right to terminate this agreement within five (5) days written notice to the other party. In such event, Consultant shall deliver to the Town copies of all finished and unfinished surveys, studies, documents, computer disks, and/or reports pertaining to the contract, and Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed through the effective date of termination, provided that Consultant's total compensation in any fiscal year shall not exceed $1,500. 11. Discrimination. In the performance of the terms of this Agreement, Consultant shall not engage in nor permit others he may employ to engage in discrimination in the employment of such persons based on race, color, religion, sex, sexual preference, age, or handicapped conditions. 12. Services and Materials to be Furnished by the Town: The Consultant shall provide guidance to the Town in determining the data required for claims submission. The Town will make its best efforts to provide all data in its possession specifically requested by the Consultant, including documentation and information, to the Consultant in a timely manner. The Consultant shall assume all data so provided to be correct. Consultant shall make its best effort to file claims in a timely manner pursuant to Scope of Services. Consultant shall not be liable for claims that cannot be filed as a result of inadequate data or data provided in an untimely manner. For purposes of this Agreement, data that is five years old or less that is requested by the Consultant must be provided within three weeks of the request to be deemed to have been received in a timely manner unless the circumstances are such as to make it reasonable to request that the Town produce the data more quickly. It is the responsibility of the Town to provide the Consultant with payment information upon receipt of disbursements from the State for any and all claims filed pursuant to this Agreement. 13. Consultant's Liability if Audited: The Consultant will assume all financial and statistical information provided to the Consultant by Town employees or representatives is accurate and complete. Any subsequent disallowance of funds paid to the Town under the claims for whatever reason is the sole responsibility of the Town. 14. Miscellaneous. 3 Cost Reimburs. Claims, MGT 2-17-11.doc A. Other Contract Provisions. Other contract provisions are set forth in Exhibit A. To the extent that there are any inconsistencies with such Exhibit and the other portions of this Agreement, the latter shall prevail. B. Governing Law; Venue. The laws of the State of California shall govern this Agreement. The County of Marin shall be the venue for resolving any disputes arising from this Agreement. C. Severability. If any provision of this Agreement is found to be invalid or unenforceable, the validity and enforceability of the remaining portions shall not be affected unless the effect thereof would materially change the economic burden on either party. D. Successors in Interest; Assignment. This Agreement shall be binding on the assigns and successors in interest to both parties. Neither party may assign their obligations under this Agreement without the written consent of the other party. Notwithstanding the foregoing, Consultant may assign this Agreement without the further consent of the City to Consultant's parent corporation or to an affiliated company that succeeds to business of Consultant contemplated herein E. Entire Agreement; Amendment. This Agreement represents the entire Agreement between the parties. This Agreement may only be amended in writing. IN WITNESS WHEREOF the parties hereto have caused their duly authorized representatives to execute this Agreement the day and year above written. CONSULTANT . Bra ley Burgess Senior GT of America TOWN OF TIBURON Margaret . Curran Town Manager, Town of Tiburon APPROVED AS TO FORM: 11.1 Ann R. Danforth, Town Attorney 4 Cost Reimburs. Claims, MGT 2-17-11.doc MGT Sacramento 2001 P Street Suite 200 Sacramento, CA 95811 ph: (916) 443-3411 fax: (916) 443-1766 www.mgtofamerica.com June 22, 2010 Ms. Heidi Bigall Dir. Of Admin. Services Town of Tiburon 1505 Tiburon Blvd. Tiburon, CA 94920 MGT OF AMERICA, INC. Subject: State Mandated Cost Claiming Services & Contract for FY 2010-2011 Dear Heidi, t has been a pleasure partnering with the Town of Tiburon on your state mandated cost claiming engagements for the past several years. We would like to continue providing your agency with the same excellent service, as we anticipate continued reimbursement claiming opportunities for California agencies. MGT proposes to complete all aspects of this proposal related to annual claims that are due on February 15th, as well as new and first time claims, for a fee of one thousand seven five hundred dollars ($1,700) ($1,500) and new er first time elaims dur-ing the eligible c-en , eight hundFed dellaFs ($800). The Tewn may se ef thes ' is fee's --e-saint, Fees are inclusive of all travel and administrative expenses. This arrangement has changed from the previous multi-year agreement of a capped amount of up to $2,900. To simplify the contract renewal process for the Town, we are also proposing two additional automatic renewal years using the same fees and contract terms. An additional benefit of this approach is this will provide a hedge against potential fee increases for the next five years, and will also make budgeting for this service easy and more predictable. Of course, the Town may choose to cancel this contract provision at any time. MGT's contract process is simple, and quick. The Town's preferences drive the process: you may choose to use your own format for the agreement, or continue using MGT's contract, whichever the Town prefers. Should the Town choose to use MGT's contract, please return one signed copy to our office. We appreciate the trust you have put in our firm and we hope to have the opportunity to continue providing Tiburon with the best service possible by offering more tools and information, experienced and knowledgeable staff, and a guaranteed product. Please don't hesitate to call our office at (916) 443-3411, or call me directly at (916) 716-0077 if you have any questions regarding this or any other SB 90 matter. I look forward to working with you in the weeks and months ahead. Sincerely, Diona LaChapelle, Manager MGT of America, Inc. dlachape a-mgtamer.com Town of Tiburon - SB 90 Claiming Services 2 1 P a g e MGT O= Anti; P, iC A, INC PROFESSIONAL FEES MGT would like to offer the Town of Tiburon the following fee arrangements: Professional Fees MGT will complete all aspects of this proposal related to the annual claims that are due on February 15, 2011, February 15, 2012, and February 15, 2013; and all aspects of this proposal related to all new, or first-time claims (at the Town's discretion) for which claiming instructions are issued during the 20 10-1I, 2011-12, and 2012-13 fiscal years at the following terms: $1,500 Payment Options & "Pain-Free" Contract Approval Process As with our previous agreement, the annual claims will be at a fixed price, due upon receipt of invoices issued by MGT. In the event that the State Controller's Office releases claiming instructions during the eligible contract period, new or first time claims will not be filed or invoiced unless the Town chooses to exercise this provision of the contract. The terms of this agreement may be renewed for two additional fiscal years, exclusively at your agency's option. The additional term of services would be from July 1, 2013 to June 30th, 2014 as well as July 1, 2014 to June 30th, 2015. Pricing would remain the same as quoted in the proposal or agreement. The additional fiscal years are 2013-2014 and 2014-2015 during the renewal periods. MGT wants to make the contracting process as easy as possible on your staff. We promise you a quick, painless contract approval process. We typically provide certificates of insurance and signed contracts within one to two days. The bottom line is that we want to continue earning Tiburon's business. We thank you very much for the opportunity to provide you with this proposal to provide state mandate claiming service. PROFESSIONAL SERVICES AGREEMENT By and Between Town of Tiburon and MGT of America, Inc. This agreement is made and entered into this day of 2010 by the Town of Tiburon, hereinafter referred to as "Client", and MGT of America, Inc., hereinafter referred to as "MGT". Now, therefore, in consideration of the mutual promises contained herein, the parties agree as follows: SERVICES MGT will provide those services as outlined in its proposal letter to Client specified in this agreement, attached hereto and incorporated herein as Exhibit "A". Specific scope of services are as follows: a) Prepare and file eligible SB 90 claims for annual claims due on February 15 of each year listed in Section II TIMETABLE. Claims must exceed $1,000 to be eligible to file with the State. b) Prepare and file eligible SB 90 claims for all new, or first-time mandates, which have claiming instructions issued by the State Controller's office during the State's 2010-11, 2011-12, and 2012-13 fiscal year. Claims must exceed $1,000 to be eligible to file with the State. c) Prepare indirect cost rate proposals to accompany all claims if the resulting rate is above 10%. d) Provide information to the Town about new claiming opportunities in a timely manner. e) Provide liaison services between the Town and the State Controller for all claims filed by the MGT that are contested by the State Controller either through desk review or field audit. f) Assist with payment tracking and SB 90 claim tracking and coordination. II. TIMETABLE a) Initial Term The initial term of this agreement is three fiscal years. It is anticipated that all work for the initial period will commence on July 1, 2010 and will be completed by June 30, 2013, at which time, the Town will be able to renew this agreement at the same terms for two additional fiscal years. b) Renewal Period The terms and conditions of this agreement shall remain effective and may be renewed for two additional fiscal years, at the Town's option. The additional term of services would be from July 1, 2013 to June 30th, 2014 as well as July 1, 2014 MGT O~ AME R IC.A, IN C Page 1- Town of Tiburon, SB 90 Agreement to June 30th, 2015. The fiscal years in item 11(b) are 2013-2014 and 2014-2015 during the renewal periods. The Town may choose to cancel this provision at any time. III. PAYMENT a) Annual & New and First Time Claims In consideration for the services rendered by MGT pursuant to this agreement, Client agrees to pay MGT upon completion of the following: MGT will complete and file all eligible annual claims that are due on February 15th , and new and first time claims, for the following fee. Fixed Fee Each Year of Term 2009-10 Annual Claims New Claims issued during 20 10-11 2010-11 Annual Claims New Claims issued during 201 1-12 201 1-12 Annual Claims New Claims issued during 2012-13 $1,500 fixed fee $1,500 fixed fee $ 1,500 fixed fee Payable 50% after on- site visit and 50% after claims filed Payable 50% after on- site visit and 50% after claims filed Payable 50% after on- site visit and 50% after claims filed Fixed Fee Each Year of Renewal Period 2012-13 Annual Claims New Claims issued during 2013-14 2013-14 Annual Claims New Claims issued during 2014-15 Payable 50% after on- $1,500 fixed fee site visit and 50% after claims filed Payable 50% after on- $1,500 fixed fee site visit and 50% after claims filed This fee is all inclusive (no expenses will be charged to the Town for this part of the engagement). There are no caps on number of claims, audit support, or site meetings/visits. MGT O'- AME RICA, I N C Page 2 - Town of Tiburon, SB 90 Agreement IV. CLIENT RESPONSIBILITY a) Furnish Consultant with all available and necessary information, data, worksheets, and documentation necessary for Consultant to perform the services hereunder in a timely fashion. Consultant shall assume all data is accurate and, if supplied in a timely manner, will file the claims in a timely manner. b) Cooperate with Consultant in carrying out the work herein. c) Provide adequate staff for liaison with the Consultant for each affected department. d) Develop and maintain source documentation sufficient to support SB 90 claims that are filed with the State for a period of at least three (3) years after the last date of claim payment or filing. V. CONSULTANT LIABILITY The Consultant will assume all data supplied by the Town is accurate and correct. Any subsequent disallowance of funds paid to the Town pursuant to the SB 90 claims filed under this agreement is the sole responsibility of the Town. In any event, the Consultant's total liability under this agreement shall not exceed the compensation received by the Consultant for work pursuant to this agreement. VI. MODIFICATION The Client and MGT may, by mutual agreement, modify this Contract. Any modification must be in writing and must be signed by the Contractor's principal agent and the Client's designate. VII. GENERAL TERMS AND CONDITIONS No alteration or variation of this Contract and no understandings or agreements not incorporated herein, unless made in writing between the parties hereto, shall be binding. The parties hereby agree that no person shall, on the grounds of race, color, creed national origin, religion, disability, or sex, be excluded from or denied participation in, or otherwise subjected to discrimination under any activity performed pursuant to this Contract. VIII. CANCELLATION The Client and MGT shall have the right to terminate this Contract at any time before the date of completion: (a) by either party at any time for failure of the other party to comply with the terms and conditions of this Agreement; (b) by either party upon 10 days prior written notice to the other party; or (c) upon mutual written agreement of both parties. In the event of termination, MGT shall stop work immediately and shall be entitled to compensation for professional fees and expense reimbursement to the date of termination and for any work necessitated by that termination. MGT O AMERICA I N C . Page 3 - Town of Tiburon, SB 90 Agreement IX. CONTRACTOR EMPLOYEES In performance of this Contract, MGT and any agent or employee of the MGT shall act in an independent capacity and not as an officer or employee or agent of the Client, nor shall any party be covered under the Client's personnel rules and regulations. The Client shall have no responsibility for deductions or contributions to Social Security, unemployment insurance, or any other benefits, nor shall income tax be withheld. X. PROJECT MANAGER Diona LaChapelle of MGT shall act as Project Manager and shall serve as contact for the Client. Contact information is as follows: 2001 P Street, Suite 200 Sacramento, CA 95811 Phone 916-443-3411 Fax 916-443-1766 EMAIL: dlachape@mgtamer.com XI. LEGAL REQUIREMENTS It is agreed that for the duration of this agreement, MGT and Client will comply with all applicable laws and regulations of the State of California, State of Florida and the federal government, including but not limited to, the Equal Employment Opportunity Act, the Occupational Safety and Health Act and audit requirements. XII. METHOD & PLACE OF GIVING NOTICE, SUBMITTING BILLS & MAKING PAYMENTS All notices, bills, and payments shall be made in writing and may be given by personal delivery or by mail. Notices, bills, and payments sent by mail shall be addressed as follows: TO CITY/COUNTY/DISTRICT: Ms. Heidi Bigall Dir. Of Admin. Services Town of Tiburon 1505 Tiburon Blvd. Tiburon, CA 94920 TO CONSULTANT: Mr. Brad Burgess, Senior Partner, Costing Services Practice MGT of America 2001 P Street, Suite #200 Sacramento, CA 95811 MGT o AMERICA Inc Page 4 - Town of Tiburon, SB 90 Agreement MGT STATE MANDATE COST CLAIMS SCOPE OF SERVICES Fiscal Years 2010-11; 2011.12 and 2012-2013 (EXHIBIT "A") OUR UNDERSTANDING OF SB 90 CLAIMING NEEDS Any city, county or special district that wishes to supplement existing revenue sources can file state mandate cost claims (SB 90 claims) with the California State Controller's Office. Like many public agencies in California, your agency may have difficulties generating sufficient revenue in recent years to match growing demands for service and increased costs. If your agency would like to partner with a consulting firm that specializes in SB 90 consulting, MGT of America (MGT) can do the following: c.R Identify all possible SB 90 claiming opportunities eq Prepare and file all eligible late FY 2008-2009 SB 90 claims with the State Controller (SCO) cap Prepare and file all eligible annual FY 2009-2010 SB 90 claims with the SCO c Prepare and file all eligible first time or new SB 90 claims that have claiming instructions issued during the 2010-2011 fiscal year c:~ Assist with payment tracking c~i Assist with knowledge transfer and training related to the SB 90 process at the State level and also related to other local agencies in California MGT WORK PLAN AND CALENDAR OF TASKS There are many steps that go into the SB 90 work plan for an agency of this size and complexity. However, MGT has identified the following order of activities as the most important landmark events that must occur for a successful SB 90 claiming engagement during FY 2010-11, 2011-12, and 2012-13: c:,a Quick and painless contract negotiations and approval c~3 Initial kick-off training with all applicable agency staff cA Additional on-site meetings as needed c~z Identification of department fiscal and program contacts within the agency LATE SB 90 CLAIMS: FY 2008-2009 c--~ Establish a schedule and approach needed to complete all eligible late claims due prior to February 15, 2011. This includes on-site interviews with all applicable department personnel. c~ Facilitate department staff describing how the agency complies with the specific mandated programs and assist in determining eligible costs based on the following criteria: The test claim's Statement of Decision. The California Commission on State Mandates approved Parameters and Guidelines. The SCO's claiming instructions. How other agencies around the state are complying with and interpreting the mandate. Page 1 of 8 MG! STATE MANDATE COST CLAIMS SCOPE O SERVICES Fiscal Years 2110-11, 2011.12 and 2012-2013 -1 cIR Prepare all necessary department-wide ICRPs in accordance with Office of Management and f ! Budget (OMB) A-87. MGT consultants have prepared thousands of ICRPs over the past 25 years. We believe that our experience has developed a depth of understanding that is unmatched in the field. " c~a Receive claims from single department SB 90 programs and review the claims for completeness, propriety, and eligibility of costs. Multi-department claims will be handled in a similar fashion, but MGT will add an additional level of scrutiny with these claims to ensure that no direct costs are missed or double counted. c Perform a quality assurance review of the SB 90 claims to ensure that the costs are supported by appropriate source documentation. c;Q Prepare claims and provide the completed claims and ICRPs to the agency's coordinator for review and signature this summer. c:;z File the signed late claims with the SCO. c~R Prepare and file re-released Open Meetings Act claims for the following fiscal years: 2005- 2006, 2006-2007, 2007-2008 and 2008-2009 (if necessary) NEW CLAIMS: FIRST AND SECOND QUARTER OF FY 2010-2011, 2011-2012, & 2012-2013 Establish a schedule and approach needed to complete all new or first-time claims due within the first quarter and second quarters of FY 2010-11, 2011-12, and 2012-13. This includes on- site interviews with all applicable department personnel. < Facilitate department staff describing how the agency complies with the specific mandated programs and assist your agency to determine eligible costs based on the following criteria: The test claim's Statement of Decision. The California Commission on State Mandates approved Parameters and Guidelines. The SCO's claiming instructions. How other agencies around the state are complying with and interpreting the mandate. c~R Prepare all necessary department-wide ICRPs in accordance with Office of Management and Budget (OMB) A-87. MGT consultants have prepared thousands of ICRPs over the past 25 years. We believe that our experience has developed a depth of understanding that is unmatched in the field. c-, Receive claims from the single department SB 90 programs and review the claims for completeness, propriety, and eligibility of costs. Multi-department claims will be handled in a similar fashion, but MGT will add an additional level of scrutiny with these claims to ensure that no direct costs are double counted. c~ii Perform a quality assurance review of the SB 90 claims to ensure that the costs are supported by appropriate source documentation. c,~ Prepare claims and provide the completed claims and ICRPs for review and signature at least three weeks prior to the claiming deadline. c~ File the signed claims with the SCO prior to the deadline. Page 2 of 8 MGT STATE MANDATE COST CLAIMS SCOPE OF SERVICES Fiscal Years 2010-11. 2011-,12 and 2012-2013 ANNUAL CLAIMS: DUE TO THE STATE BY FEBRUARY 15, 2011, 2012, & 2013 c~e Establish a schedule and approach needed to complete all annual claims due to the state by February 15th of each applicable year. This includes on-site interviews with all applicable department personnel. Facilitate department staff describing how the agency complies with the specific mandated programs and assist in determining eligible costs based on the following criteria: The test claim's Statement of Decision. The California Commission on State Mandates approved Parameters and Guidelines. The SCO's claiming instructions. How other agencies around the state are complying with and interpreting the mandate. Prepare all necessary department-wide ICRPs in accordance with OMB A-87 guidelines. MGT consultants have prepared thousands of ICRPs over the past 25 years. We believe that our experience has developed a depth of understanding that is unmatched in the field. c.izReceive claims for single department SIB 90 programs and review the claims for completeness, propriety, and eligibility of costs. Multi-department claims would be handled in a similar fashion, but MGT would add an additional level of scrutiny with these claims to ensure that no direct costs are double counted. c ~Q Perform a quality assurance review of the SIB 90 claims to ensure that they mesh with the associated department ICRPs. c-:iz Discuss any potential or necessary changes with the appropriate staff member. (zQ Provide the completed claims and ICRPs to the agency's coordinator for review and signature at least three weeks prior to the claiming deadline. c:izFile the signed claims with the SCO prior to the deadline. NEW CLAIMS: THIRD AND FOURTH QUARTER-FY 2010-2011, 2011-2012, & 2012-2013 c Identify new claims that are expected to become mandated programs during FY 2010-11, 2011-12, and 2012-13, and the departments likely to be affected by these claims. As part of this step, MGT will provide early claim summaries and data collection requirements to provide a head start on documentation strategies. c~, Work with the appropriate department staff, as new claiming instructions are issued by the SCO, to establish schedules and approaches needed to complete all new or first-time claims due during the second two quarters of FY 2010-11, 2011-12, and 2012-13. Establish schedule and approach needed to complete all annual claims due to the state by February 15th of each applicable year. This includes on-site interviews with all applicable department personnel. r: QFacilitate department staff describing how the agency complies with the specific mandated programs and assist to determine eligible costs based on the following criteria: Page 3 of 8 MGT STATE MANDATE COST CLAIMS SCOPE OF SERVICES N`z `p Fiscal Years 2010-11; 2011-12 and 2012-2013 The test claim's Statement of Decision. ri The California Commission on State Mandates approved Parameters and Guidelines. ❑ The SCO's claiming instructions. o How other agencies around the state are complying with and interpreting the mandate. c~Prepare all necessary department-wide ICRPs in accordance with OMB A-87. MGT consultants have prepared thousands of ICRPs over the past 25 years. We believe that our experience has developed a depth of understanding that is unmatched in the field. c_-~Receive claims for single department SB 90 programs, and review the claims for completeness, propriety, and eligibility of costs. Multi-department claims will be handled in a similar fashion, but MGT will add an additional level of scrutiny with these claims to ensure that no direct costs are double counted. cQPerform a quality assurance review of the SIB 90 claims to ensure that they mesh with the associated department ICRPs. c1iDiscuss any potential or necessary changes with the appropriate staff member(s). c:aProvide the completed claims and ICRPs to the agency's coordinator for review and signature at least three weeks prior to the claiming deadline. (-RFile the signed claims with the SCO prior to the deadline. PROJECT COORDINATION MGT views the SIB 90 process as a partnership between local government and our firm. We understand and recognize the agency's preference to have minimal involvement (when appropriate) in this process to conserve internal resources. We will always approach this SB 90 engagement from that perspective. We will keep you apprised of everything we are doing, but will manage all aspects of project coordination. We will consistently: • Provide the list of all eligible claims, as well as individual program Claim Summary sheets and Data Collection forms. All of these concise summaries and forms are available in a variety of electronic formats (Microsoft Word, Excel, and Adobe PDF) to make use and disbursement of claiming information as easy as possible. • Work in concert with the SIB 90 Coordinator to coordinate the overall claiming process. Once again, minimal reliance will be placed on the agency's SIB 90 Coordinator in this process. • Coax departments to ensure that all eligible claims are filed on time to avoid the 10 percent penalty. It is critical to work with the departments after the on-site interviews to ensure that all questions are answered and deadlines met. • Ensure that all eligible claims are filed on time, and upon request, provide written documentation explaining why the agency will not file certain claims. DATA COLLECTION The three components of data collection related to this engagement include: direct cost program data, indirect cost data, and supporting documentation. Page 4 of 8 MGT A ti. ! ; h 1 N . STATE MANDATE COST CLAIMS SCOPE OF SERVICES Fiscal Years 2010-11. 2011-12 a►id 2012-2011 Direct Cost Program Data Collection c-.o, Conduct individual meetings with departments to discuss all reimbursable mandated activities. Develop a schedule and plan for collecting the necessary data to ensure claims are completed well before the claiming deadlines. Departmental Indirect Cost Data Collection c~ Gather salary and benefit data from the accounting staff or the individual departments for all required fiscal years. Collect certain pages from the agency's cost allocation plan. (-~R Gather information required to prepare OMB A-87 compliant ICRPs. This will be carried out in concert with other department interviews. It is important that this step occur each year because departments reorganize, assignments shift, new personnel is hired, or personnel retire. Supporting Documentation Collection c,,3 MGT will work with departments to determine the documentation that must be submitted to the state as attachments to claims, and what documentation should be maintained in archived files in case of the SCO inquiry or field audit. MGT will then collect only the documentation the SCO requires to be submitted. ORIENTATION AND TRAINING FOR DEPARTMENT STAFF We believe there is no cookie cutter approach to successful orientation and training. Some of the department personnel are undoubtedly savvy and experienced with SB 90 claiming, while others are likely to be new to the process. MGT will tailor its level of training to meet the needs of each department. As we have previously stated, early communication is the most important aspect of this component. We will consistently: c.R Provide electronic notification on upcoming mandate claims as soon as the Parameters and Guidelines for these programs are approved. This will be done primarily via e-mail and will provide both the key department personnel, as well as your Coordinator, the most complete view of upcoming SB 90 programs. c~q Provide on-site training for both program and fiscal staff. It is important that both areas of each affected department understand the state's requirements and any specific issues related to the particular mandate from a programmatic and fiscal standpoint. In addition, we will provide a history and overview of the SB 90 program to any department staff that are new to the process. c-,R Assist to establish relevant, defensible source documentation standards for each claim within each of the claiming departments. Our goal for each of the claims is to ensure that documentation exists to establish that the mandate was performed and personnel costs are adequately documented. c Provide perspectives related to how other agencies are interpreting and claiming each mandate to ensure nothing is missed. Provide guidance on the current acceptable range of costs being claimed by similar agencies so you will be aware of any foreseeable exposures existing at the claiming stage. Page 5 of 8 MGT STATE MANDATE COST CLAIMS SCOPE OF SERVICE: AN.( {.,~A, IN Fiscal Years 2010-11, 2011-12 and 2092-2013 CLAIM PREPARATION Once data has been received by MGT, consulting staff will prepare all eligible claims on behalf of the agency using required SCO claim forms. Direct Costs c,?,Prepare all claims that apply to single departments. Once again, our experience will ensure that no cost components are misinterpreted or omitted. c~ Coordinate and prepare all multi-department claims. Simply gathering data for mandates that span different departments is not enough. The data must be cross-referenced and analyzed to ensure that each department is capturing cost data for the same cases and are not misclassifying certain cases, a very common occurrence. Indirect Costs r~3 Prepare ICRPs for all claiming departments. The ICRPs provide an approved method for claiming departmental indirect costs. The ICRPs will be prepared using the same software, methodology, and figures used to produce our clients' OMB A-87 Cost Allocation Plan. At this step, it is vital to ensure that no staff time being claimed as a direct cost in the claim is also included in the ICRP. Filing Procedures MGT will provide the SB 90 Coordinator with a clear, understandable process for receiving the completed claims/ICRPs and obtaining the necessary signatures. There will be no points of confusion as to where the completed claims should be mailed, or who is responsible for making sure the claims are received and filed with the SCO on time. c, MGT will perform one final quality control check to ensure that each claim has signed two original coversheets, all parts of the claim are included, and all required documentation is attached. MGT will hand deliver all signed claims received from the agency to the SCO on or before the stated deadline. We will also provide the SCO with a Declaration of Service form, as well as Claims Receipts for their staff to sign and return. c-o, MGT submits hard copies of all claims to the SCO. However, many of our clients prefer to share claims and ICRPs prior to claim submission electronically by converting all claims and ICRPs into Adobe PDF documents. We believe sharing documents results in many positive benefits. Sharing information between the department staff and MGT is very easy using e-mail. Adobe PDF claims can be stored electronically with both the consultant and the claiming departments. This process saves paper which is environmentally friendly, and also makes sharing claims with your claiming departments effortless. Page 6 of 8 MGT STATE MANDATE COST CLAIMS SCOPE OF SERVICES Fiscal Years 2010-11, 2011-12 and 2012-2013 Remittance Tracking MGT will assist with all aspects of remittance tracking throughout the entire fiscal year. We will consistently: c.~Z Provide copies of all claims receipts, declarations, and summary claiming reports. c Assist with tracking claim payments made by the state. Now that the state has resumed this function, MGT will assist with this sometimes confusing process. ONGOING SUPPORT AND STATUS UPDATES The claiming process is obviously the key aspect of this engagement, but the ongoing support services that MGT offers are important complementary services to continuously upgrading your staff's knowledge basis, relations, and communications with the state and contract agencies, and anticipation of changes to the claiming process. Liaison Assistance c MGT will also provide liaison assistance with the SCO at the desk review level. The SCO may call requesting additional information, or duplicate documentation that may have been misplaced in their offices. We will field these calls and fulfill all appropriate requests without the need for your staff to get involved. In addition, our staff has extensive experience preparing local agencies for field audits and assisting in their representation beyond the exit conference. MGT offers assistance and response on any current or future field audit that may result from claims filed in the past. Status Updates The SIB 90 process is constantly changing and evolving. MGT will provide targeted, relevant communication on statewide issues, interpretations, and actions at the state capitol relating to the SB 90 process throughout the fiscal year via MGT Instant Updates , a series of e-mail communiques designed to keep our clients up to date with the latest mandate legislation, California Commission on State Mandates decisions, and state agency interpretations. MGT will sift through all of the pertinent activity to provide the most relevant information throughout the year, saving you time and resources. Page 7 of 8 MGT G mf. R:"A' I'V:. STATE MANDATE COST CLAIMS SCOPE OF SERVICES Fiscal Years 2010-11, 2011-12 and 2012-2013 Year End Mandate Report cwt Upon request, MGT will prepare an annual MGT Mandate Report° for the agency. This full- color summary claiming report breaks down the annual and first-time claiming cycles into graphic images. In past reports, we have displayed the following comparisons: Dollars claimed per department, Total claims per department, and Dollars claimed for the current fiscal year compared to the past year. If there are additional ways that you would like to see the claim data displayed or analyzed, please let us know. A few sample pages of the MGT Mandate Report© are as follows: CONTRACT PROCESS & RENEWAL PERIODS MGT really wants your business and strives to make the contracting or purchasing process as simple as humanly possible. Our legal review time is minimal; requests for insurance verification are also handled quickly. The terms of this agreement may be renewed for two additional fiscal years, exclusively at your agency's option. This scope of services is written for the agency's 2010-2011, 2011-2012, and 2012-2013 fiscal years. The additional term of services would be from July 1, 2013 to June 30th, 2014, as well as July 1, 2014 to June 30th, 2015. Pricing would remain the same as quoted in the proposal or agreement. The additional fiscal years are 2013-2014 and 2014-2015 during the renewal periods. Page 8 of 8 STATE MANDATED COST CLAIMS RECEIPT Town of Tiburon May 20, 2010 Claimaint ID: 9821922 Date Delivered: May 20, 2010 The State Controller, Division of Accounting, hereby acknowledges receipt of the following State Mandated Cost Claims submitted by MGT of America, Inc.: Program # Mandate Fiscal Year Actual 219 Open Meetings Act / Brown Act Reform 2005-2006 $ 9,089 2006-2007 $ 7,049 2007-2008 $ 8,601 2008-2009 $ 8,828 Total Amount of Claims Filed: $ 330567 Number of Claims by Type: 4 Received by: California State Controller Date Division of Accounting Bureau of Local Reimbursement MGT OF AMERICA, INC. dlachape(a)mgtamer.com