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2021 Nichols Consulting - SB 90 Cost Preparation Claims ReimbursementMEMORANDUM DATE: TO: FROM: RE: Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. Authority to execute this agreement is based upon: ___ Approved by City Council on ___________________________________________ ___ City Manager’s signing authority provided under the City’s Purchasing Police [Resolution No. 2019-021] for budget expenditures of $50,000 or less. ___ Department Director’s or Manager’s signing authority provided under the City’s Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and $5,000, respectively, or less. Procurement Method (one must apply): ___ Bid ___ RFP ___ RFQ ___ 3 written informal bids ___ Sole Source ___ Select Source ___ Cooperative Procurement Requesting department shall check and attach the items below as appropriate: ___ Agreement payment will be charged to Account No.: _____________________ ___ Agreement term: Start Date ________________ End Date ________________ ___ Amount of Agreement, Amendment, Change Order, etc.: $____________________ REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual Amendments or Change Orders! ___ Insurance certificates as required by the Agreement for Risk Manager approval Approved by: ______________________________ Date: _______________ ___ Bonds (originals) as required by the Agreement (Performance, Payment, etc.) ___ Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) NOTE: Review the “Form 700 Disclosure for Consultants” guidance to determine if a Form 700 is required pursuant FPPC regulation 18701(2) ___ Business License No. __________________; Expires: __________________ ___ Requisition for a Purchase Order has been prepared (Agreements over $5,000) January 20, 2021 Chris Escobedo, Community Resources Director Jaime Torres, Community Resources Analyst SHORT-FORM SERVICES AGREEMENT FOR SB 90/STATE MANDATED COST REIMBURSEMENT CLAIM PREPARATION SERVICES WITH ANDY NICHOLS. N/A   101-2001-60103 December 7, 2020 June 30, 2021 $2,400.00  In Process Monika Radeva 01/21/2021  1  CITY OF LA QUINTA SHORT-FORM SERVICES AGREEMENT ($25,000 OR LESS) 1. PARTIES AND DATE. This Agreement is made and entered into this 19 day of November, 2020, (“Effective Date”) by and between the City of La Quinta, a Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, CA (“City”) and Nichols Consulting, a Sole Proprietorship with its principal place of business at 1857 44th Street, Sacramento, CA 95819 (“Vendor”). City and Vendor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. 2. TERMS AND CONDITIONS. The Parties shall comply with the terms and conditions in the attached Exhibit “A.” 3. SCOPE AND SCHEDULE OF SERVICES. Vendor shall provide to City the services pursuant to the date(s) and schedule(s) described in accordance with the schedule set forth in Exhibit “B.” 4. TERM. The term of this Agreement shall be from December 7, 2020 to June 30, 2021, unless earlier terminated as set forth in the attached Terms and Conditions. This Agreement may not extend beyond a period of five (5) years, unless under the City’s Fiscal Policies and Procedures this Agreement is exempt from the five (5) year limitation. 5. COMPENSATION. Vendor shall receive compensation for services rendered under this Agreement at the rates and schedule set forth in the attached Exhibit “C” but in no event shall Vendor’s compensation exceed Two Thousand Four Hundred Dollars ($2,400) per fiscal year (July 1 to June 30) without written amendment. 6. FORCE MAJEURE. The time period specified for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Vendor including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Vendor shall within ten (10) days of the commencement of such delay notify the City in writing of the causes of the delay. The City shall ascertain the facts and the extent of delay and extend the time for performing the Services for the period of the forced delay when and if in their judgment such delay is  2  justified, and the City’s determination shall be final and conclusive upon the parties to this Agreement. Extensions to time periods for performance of services, which are determined by the City to be justified pursuant to this Section, shall not entitle the Vendor to additional compensation unless City expressly agrees to an increase in writing. 7. INSURANCE. In accordance with Section 4 of Exhibit “A,” Vendor shall, at its expense, procure and maintain for the duration of the Agreement such insurance policies as checked below and provide proof of such insurance policies to the City. Vendor shall obtain policy endorsements on Commercial General Liability Insurance that name Additional Insureds as follows: The City of La Quinta, its officers, officials, employees and agents. Commercial General Liability Insurance: $1,000,000 per occurrence/$2,000,000 aggregate OR $2,000,000 per occurrence/$4,000,000 aggregate Additional Insured Endorsement naming City of La Quinta Primary and Non-Contributory Endorsement Automobile Liability: $1,000,000 combined single limit for bodily injury and property damage. Workers’ Compensation: Statutory Limits / Employer’s Liability $1,000,000 per accident or disease Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor Professional Liability (Errors and Omissions): Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim   A-1 EXHIBIT “A” TERMS AND CONDITIONS 1. Compensation. Vendor shall be paid on a time and materials or lump sum basis, as may be set forth in Exhibit “C”, within 30 days of completion of the Work and approval by the City. 2. Compliance with Law. Vendor shall comply with all applicable laws and regulations of the federal, state and local government. Vendor shall assist the City, as requested, in obtaining and maintaining all permits required of Vendor by Federal, State and local regulatory agencies. Vendor is responsible for all costs of clean up and/or removal of hazardous and toxic substances spilled as a result of his or her Work. In explanation of the forgoing and not by way of limitation, Vendor shall comply with any Federal, State, and local laws, regulations, orders, and guidelines relating to the work provided by the Vendor during the COVID-19 state of emergency declared by the Governor of California and City of La Quinta. Such Federal, State, and local laws, regulations, orders, and guidelines include but are not limited to: Executive Orders from the Governor of California and orders and guidance issued from the California Department of Public Health (DPH); Orders from the Riverside County Public Health Officer; and Emergency Resolutions and Executive Orders from the City Council and City Manager, respectively, for the City of La Quinta. 3. Standard of Care. The Vendor shall perform the Work in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession practicing under similar conditions. 4. Insurance. The Vendor shall take out and maintain, during the performance of all work under this Agreement: A. Commercial General Liability Insurance in the amounts specified in Section 7 of the Agreement for bodily injury, personal injury and property damage, at least as broad as Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001), and if no amount is selected in Section 7 of the Agreement, the amounts shall be $1,000,000 per occurrence/$2,000,000 aggregate; B. Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, of at least $1,000,000 per accident for bodily injury and property damage, at least as broad as Insurance Services Office Form Number CA 0001 (ed. 6/92) covering automobile liability, Code 1 (any auto); C. Workers’ Compensation in compliance with applicable statutory requirements and Employer's Liability Coverage of at least $1,000,000 per accident or disease. Vendor shall also submit to City a waiver of subrogation endorsement in favor of city, and D. Professional Liability (Errors and Omissions) coverage, if checked in section 6 of the Agreement, with a limit not less than $1,000,000 per claim and which shall be endorsed to include contractual liability. Insurance carriers shall be authorized by the Department of Insurance, State of California, to do business in California and maintain an agent for process within the state. Such insurance carrier shall have not less than an "A"; "Class VII" according to the latest Best Key Rating unless otherwise approved by the City. 5. Indemnification. The Vendor shall indemnify and hold harmless the City, its Council, members of the Council, agents and employees of the City, against any and all claims, liabilities, (including liability related to exposure to communicable diseases, illnesses, or viruses), expenses or damages, including responsible attorneys’ fees, for injury or death of any person, or damage to property, or interference with use of property, or any claim of the Vendor or subcontractor for wages or benefits which arise in connection with the performance of this Agreement, except to the extent caused or resulting from the active negligence or willful misconduct of the City, its Council, members of the Council, agents and employees of the City. The foregoing indemnity includes, but is not limited to, the cost of prosecuting or defending such action with legal counsel acceptable to the City and the City’s attorneys’ fees incurred in such an action. 6. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal  A-2 court situated in the County of Riverside, State of California. 7. Termination. The City may terminate the services procured under this Agreement by giving 10 calendar days written notice to Vendor. In such event, the City shall be immediately given title and possession to any original field notes, drawings and specifications, written reports and other documents produced or developed for the services. The City shall pay Vendor the reasonable value of services completed prior to termination. The City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Vendor shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. Vendor may terminate its obligation to provide services under this Agreement upon 30 calendar days' written notice to the City only in the event of City’s failure to perform in accordance with the terms of this Agreement through no fault of Vendor. 8. Agreement Terms. Nothing herein shall be construed to give any rights or benefits to anyone other than the City and the Vendor. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal. Notice may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the parties to the addresses set forth in the Agreement. Vendor shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Vendor is retained as an independent contractor and is not an employee of the City. No employee or agent of Vendor shall become an employee of the City. The individuals signing this Agreement represent that they have the authority to sign on behalf of the parties and bind the parties to this Agreement. This is an integrated Agreement representing the entire understanding of the parties as to those matters contained herein, and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. This Agreement may not be modified or altered except in writing signed by both parties hereto.   B-1  EXHIBIT “B” SCOPE AND SCHEDULE OF SERVICES Vendor shall provide SB 90/State Mandated cost reimbursement claims for a variety of programs for the City. Please view the scope of services in Section II. Claiming Opportunities for the City of La Quinta in the attached SB 90/State Mandated Cost Reimbursement Claim Preparation Services by Nichols Consulting for the City of La Quinta as reference. SB 90/State Mandated Cost Reimbursement Claim Preparation Services by Nichols Consulting for the City of La Quinta I. History & Background of the Senate Bill 90 (SB 90)/State-Mandated Cost Process The concept of state reimbursement to local agencies and school districts for state mandated activities originated with the Property Tax Relief Act of 1972 (Senate Bill 90, Chapter 1406, Statutes of 1972), known as SB 90. The primary purpose of the Act was to limit the ability of local agencies and school districts to levy taxes. To offset these limitations, the Legislature declared its intent to reimburse local agencies and school districts for the costs of new programs or increased levels of service mandated by state government. In 1979, voters approved Proposition 4, which added article XIII B to the California Constitution and superseded the SB 90 legislation. Article XIII B imposed appropriation limits on the tax proceeds of both state and local governments. Section 6 of article XIII B requires that whenever the Legislature or any state agency mandates a new program or higher level of service on local government, the state must provide a subvention of funds to reimburse the associated costs, with certain exceptions. To implement section 6 of article XIII B, the Legislature enacted Government Code section 17500 under Chapter 1459, Statutes of 1984. Under Government Code section 17500, the State Controller’s Office releases Claiming Instructions for SB 90/State Mandated Cost Claims. Local Government Agencies have 120 days to file timely claims and one-year after that deadline to file “Late” claims with a 10% penalty. II. Claiming Opportunities for the City of La Quinta As described above, the City of La Quinta is eligible to file SB 90/State Mandated Cost reimbursement claims for a variety of programs, the scope of services for the City of La Quinta is for the reimbursable State-Mandated Cost activities of: Driving Under Influence (DUI) – Administrative License Suspension (a.k.a. “Admin per Se”) Domestic Violence Calls – Reimbursable programs include: o Domestic Violence Arrest Policies and Standards o Domestic Violence Arrests and Victims Assistance Local Government Employee Relations – Costs associated with Public Employment Relations Board (PERB) cases as required by the Meyers-Milias- Brown Act (MMBA) Local Agency Employee Organizations: Impasse Procedures II - Costs associated with Factfinding after Impasse has been reached. All Other Eligible Claiming Opportunities – Any Other Claim Deadlines which the City is able to claim eligible costs, including (but not limited to) the recently approved programs: o U Visa 918 Form, Victims of Crime: Nonimmigrant Status o Racial and Identity Profiling o Vote by Mail:Ballots: Prepaid Postage III. Information and Data Requested by Nichols Consulting During the course of gathering all necessary information for the preparation of eligible programs for the City of La Quinta: Police/Sheriff Statistics – Approximately 75-90 minutes of Sheriff Department time to pull data in general, non-specific terms and summarize this information on my form in order to prepare these claims in accordance with State Controller’s Office guidelines. County Sherriff Department Billing Rate – County Sheriff Department Billing Rates by Title/Position. The document I typically need is an Annual Addendum to the agreement with the County Sheriff. IV. Compilation of All Eligible Costs for Reimbursement from the State of California Nichols Consulting has proposed to prepare all eligible SB90/State Mandated Cost claims for the City of La Quinta through the end of the 2019 – 2020 fiscal year. Nichols Consulting will calculate all eligible direct and indirect costs in accordance with both State and Federal Guidelines, in order to maximize reimbursement for the City of La Quinta. After your claims have been completed and approved to your satisfaction, Nichols Consulting will hand-deliver the claims to the State Controller’s Office and will receive a receipt of transmission. Claims are typically paid by the State Controller’s Office the following May or June (for Late-Claims) and the following August/September for timely- filed claims. V. Payment Dates for FY 2018-19 and FY 2019-20 Annual Claims With regards to payments from the State of California, the State Controller’s Office will be issuing checks for the FY 2018-19 “Late” Annual Claims in the Spring 2021. This payment will represent approximately 40% of the estimated revenue for the City of La Quinta. Another set of payments will be made (40-45%) in the Summer/Fall of 2021. Any remaining/outstanding balance will be paid in the Spring of 2022. VI. Fee Options for Nichols Consulting Claim Preparation Services Nichols Consulting is proud to offer two different fee options (Fixed or Contingent) for the City of La Quinta: a. Fixed Fee of $2,400 for all Eligible Claims for FY 2018-19 & 2019-20 Nichols Consulting is offering to prepare and submit all eligible claims. Under this arrangement, Nichols Consulting is offering comprehensive SB 90/State Mandated Cost Claim Preparation Services for a Fixed Fee of $2,400. This fee would be due and payable in two separate payments of $1,200. The date of these two installments are: October 31, 2020 and March 31, 2021. or b. Contingent Fee (20%) for all Eligible Claims for FY 2018-19 & 2019-20 Nichols Consulting is offering to prepare and submit all eligible claims. Under this arrangement, Nichols Consulting is offering comprehensive SB 90/State Mandated Cost Claim Preparation Services for a Contingent Fee of 20%, with a “Not-to-Exceed” of $3,600. Although Nichols Consulting is offering two different fee methods, we are also willing to consider alternative fee arrangements for our Professional Services for State-Mandated Cost Claiming Services.  C-1  EXHIBIT “C” COMPENSATION FOR SERVICES Compensation for services in Exhibit “B” shall be as follows: Two Thousand Four Hundred Dollars ($2,400) upon the successful completion of all eligible claims. Vendor will be paid in one installment of ($2,400) on March 31, 2021. Please view Option a. in Section VI. Fee Options for Nichols Consulting Claim Preparation Services. in the attached SB90/State Mandated Cost Reimbursement Claim Preparation Services by Nichols Consulting for the City of La Quinta as reference.