HomeMy WebLinkAboutAGR-7252.A - MGT IMPACT SOLUTIONS, LLC - SB 90 MANDATED COST CLAIMS PREPARATION SERVICESPROFESSIONAL SERVICES AGREEMENT
[SB 90 State Mandated Cost Claims Preparation Services]
THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at
Orange, California, on this _____ day of ____________, 2024 (the “Effective Date”) by and
between the CITY OF ORANGE, a municipal corporation (“City”), and MGT IMPACT
SOLUTIONS, LLC, a Florida limited liability company (“Contractor”), who agree as follows:
1. Services. Subject to the terms and conditions set forth in this Agreement,
Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A,”
which is attached hereto and incorporated herein by reference. As a material inducement to City
to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated
and considered the scope of services and fully understands the difficulties and restrictions in
performing the work. The services which are the subject of this Agreement are not in the usual
course of City’s business and City relies on Contractor’s representation that it is independently
engaged in the business of providing such services and is experienced in performing the work.
Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner
in conformance with the standards of quality normally observed by an entity providing such
services to a municipal agency. All services provided shall conform to all federal, state and local
laws, rules and regulations and to the best professional standards and practices. The terms and
conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A"
to the contrary.
Andrea Pham, Assistant Finance Director (“City’s Project Manager”), shall be the person
to whom Contractor will report for the performance of services hereunder. It is understood that
Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or
his/her designee), that Contractor shall coordinate its services hereunder with City’s Project
Manager to the extent required by City’s Project Manager, and that all performances required
hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the
City Manager.
2. Compensation and Fees.
a. Contractor's total compensation for all services performed under this
Agreement, shall not exceed TWENTY THOUSAND FIVE HUNDRED DOLLARS and 00/100
($20,500.00) without the prior written authorization of City.
b. The above compensation shall include all costs, including, but not limited
to, all clerical, administrative, overhead, insurance, reproduction, telephone, travel, auto rental,
subsistence and all related expenses.
3. Payment.
a. As scheduled services are completed, Contractor shall submit to City an
invoice for the services completed, authorized expenses and authorized extra work actually
performed or incurred.
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b. All such invoices shall state the basis for the amount invoiced, including
services completed, the number of hours spent and any extra work performed.
c. City will pay Contractor the amount invoiced within thirty (30) days after
the approval of the invoice
d. Payment shall constitute payment in full for all services, authorized costs
and authorized extra work covered by that invoice.
4. Change Orders. No payment for extra services caused by a change in the scope
or complexity of work, or for any other reason, shall be made unless and until such extra services
and a price therefor have been previously authorized in writing and approved by City as an
amendment to this Agreement. City’s Project Manager is authorized to approve a reduction in the
services to be performed and compensation therefor. All amendments shall set forth the changes
of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor
and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.
5. Licenses. Contractor represents that it and any subcontractors it may engage,
possess any and all licenses which are required under state or federal law to perform the work
contemplated by this Agreement and that Contractor and its subcontractors shall maintain all
appropriate licenses, including a City of Orange business license, at its cost, during the
performance of this Agreement.
6. Independent Contractor. At all times during the term of this Agreement,
Contractor shall be an independent contractor and not an employee of City. City shall have the
right to control Contractor only insofar as the result of Contractor's services rendered pursuant to
this Agreement. City shall not have the right to control the means by which Contractor
accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and
expense, furnish all facilities, materials and equipment which may be required for furnishing
services pursuant to this Agreement. Contractor shall be solely responsible for, and shall
indemnify, defend and save City harmless from all matters relating to the payment of its
subcontractors, agents and employees, including compliance with social security withholding and
all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.
Contractor acknowledges that it and any subcontractors, agents or employees employed by
Contractor shall not, under any circumstances, be considered employees of City, and that they shall
not be entitled to any of the benefits or rights afforded employees of City, including, but not limited
to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or
health, life, dental, long-term disability or workers' compensation insurance benefits.
7. Contractor Not Agent. Except as City may specify in writing, Contractor shall
have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an
agent. Contractor shall have no authority, express or implied, to bind City to any obligation
whatsoever.
8. Designated Persons. Only those qualified persons authorized by City’s Project
Manager, or as designated in Exhibit “A,” shall perform work provided for under this Agreement.
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It is understood by the parties that clerical and other nonprofessional work may be performed by
persons other than those designated.
9. Assignment or Subcontracting. No assignment or subcontracting by Contractor
of any part of this Agreement or of funds to be received under this Agreement shall be of any force
or effect unless the assignment has the prior written approval of City. City may terminate this
Agreement rather than accept any proposed assignment or subcontracting. Such assignment or
subcontracting may be approved by the City Manager or his/her designee.
10. Time of Completion. Except as otherwise specified in Exhibit “A,” Contractor
shall commence the work provided for in this Agreement within five (5) days of the Effective Date
of this Agreement and diligently prosecute completion of the work in accordance with the time
period set forth in Exhibit “A” hereto or as otherwise agreed to by and between the representatives
of the parties.
11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall
do all things necessary and incidental to the prosecution of Contractor's work.
12. Reserved.
13. Delays and Extensions of Time. Contractor's sole remedy for delays outside its
control, other than those delays caused by City, shall be an extension of time. No matter what the
cause of the delay, Contractor must document any delay and request an extension of time in writing
at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the
length of the delay outside Contractor’s control. If Contractor believes that delays caused by City
will cause it to incur additional costs, it must specify, in writing, why the delay has caused
additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No
additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above,
absent a written amendment to this Agreement.
14. Products of Contractor. The documents, studies, evaluations, assessments,
reports, plans, citations, materials, manuals, technical data, logs, files, designs and other products
produced or provided by Contractor for this Agreement shall become the property of City upon
receipt. Contractor shall deliver all such products to City prior to payment for same. City may
use, reuse or otherwise utilize such products without restriction.
15. Equal Employment Opportunity. During the performance of this Agreement,
Contractor agrees as follows:
a. Contractor shall not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin, mental or physical disability, or
any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed,
and that employees are treated during employment, without regard to their race, color, religion,
sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
Such actions shall include, but not be limited to the following: employment, upgrading, demotion
or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms
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of compensation and selection for training, including apprenticeship. Contractor agrees to post in
conspicuous places, available to employees and applicants for employment, a notice setting forth
provisions of this non-discrimination clause.
b. Contractor shall, in all solicitations and advertisements for employees
placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration
for employment without regard to race, color, religion, sex, national origin, mental or physical
disability, or any other basis prohibited by applicable law.
c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in
all subcontracts for any work covered by this Agreement, provided that the foregoing provisions
shall not apply to subcontracts for standard commercial supplies or raw materials.
16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the
making, or in any way attempt to use its position as a consultant to influence any decision of City
in which Contractor knows or has reason to know that Contractor, its officers, partners, or
employees have a financial interest as defined in Section 87103 of the Government Code.
17. Indemnity.
a. To the fullest extent permitted by law, Contractor agrees to indemnify,
defend and hold City, its City Council and each member thereof, and the officers, officials, agents
and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising
out of:
(1) Any and all claims under workers’ compensation acts and other
employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s
employees arising out of Contractor’s work under this Agreement, including any and all claims
under any law pertaining to Contractor or its employees’ status as an independent contractor and
any and all claims under Labor Code section 1720 related to the payment of prevailing wages for
public works projects; and
(2) Any claim, loss, injury to or death of persons or damage to property
caused by any act, neglect, default, or omission of Contractor, or person, firm or corporation
employed by Contractor, either directly or by independent contract, including all damages due to
loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of
them, arising out of, or in any way connected with the work or services which are the subject of
this Agreement, including injury or damage either on or off City’s property; but not for any loss,
injury, death or damage caused by the active negligence or willful misconduct of City. Contractor,
at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other
proceedings that may be brought or instituted against the Indemnitees on any such claim or liability
covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against
the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage
under this subparagraph.
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b. To the fullest extent permitted by law, and as limited by California Civil
Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liability
arising out of any claim, loss, injury to or death of persons or damage to property to the extent
caused by its negligent professional act or omission in the performance of professional services
pursuant to this Agreement.
c. Except for the Indemnitees, the indemnifications provided in this
Agreement shall not be construed to extend any third party indemnification rights of any kind to
any person or entity which is not a signatory to this Agreement.
d. The indemnities set forth in this section shall survive any closing,
rescission, or termination of this Agreement, and shall continue to be binding and in full force and
effect in perpetuity with respect to Contractor and its successors.
18. Insurance.
a. Contractor shall carry workers’ compensation insurance as required by law
for the protection of its employees during the progress of the work. Contractor understands that it
is an independent contractor and not entitled to any workers’ compensation benefits under any
City program.
b. Contractor shall maintain during the life of this Agreement the following
minimum amount of comprehensive general liability insurance or commercial general liability
insurance: the greater of (1) One Dollars ($1,000,000.00) per occurrence; or (2) all the insurance
coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily
injury, death and property damage and be written on an occurrence basis.
c. Contractor shall maintain during the life of this Agreement, the following
minimum amount of automotive liability insurance: the greater of (1) a combined single limit of
One Million Dollars ($1,000,000.00) or (2) all the insurance coverage and/or limits carried by or
available to Contractor. Said insurance shall cover bodily injury, death and property damage for
all owned, non-owned and hired vehicles and be written on an occurrence basis.
d. Any insurance proceeds in excess of or broader than the minimum required
coverage and/or minimum required limits which are applicable to a given loss shall be available
to City. No representation is made that the minimum insurance requirements of this Agreement
are sufficient to cover the obligations of Contractor under this Agreement.
e. Each policy of general liability and automotive liability shall provide that
City, its officers, officials, agents, and employees are declared to be additional insureds under the
terms of the policy, but only with respect to the work performed by Contractor under this
Agreement. A policy endorsement to that effect shall be provided to City along with the certificate
of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences
that City is an additional insured as a contracting party. The minimum coverage required by
Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability
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insurance that is provided as part of the general or automobile liability minimums set forth herein
shall be maintained for the duration of the Agreement.
f. Contractor shall maintain during the life of this Agreement professional
liability insurance covering errors and omissions arising out of the performance of this Agreement
with a minimum limit of One Million Dollars ($1,000,000.00) per claim. Contractor agrees to
keep such policy in force and effect for at least five (5) years from the date of completion of this
Agreement.
g. The insurance policies maintained by Contractor shall be primary insurance
and no insurance held or owned by City shall be called upon to cover any loss under the policy.
Contractor will determine its own needs in procurement of insurance to cover liabilities other than
as stated above.
h. Before Contractor performs any work or prepares or delivers any materials,
Contractor shall furnish certificates of insurance and endorsements, as required by City,
evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which
shall provide that the insurance in force will not be canceled or allowed to lapse without at least
ten (10) days’ prior written notice to City.
i. Except for professional liability insurance coverage that may be required by
this Agreement, all insurance maintained by Contractor shall be issued by companies admitted to
conduct the pertinent line of insurance business in California and having a rating of Grade A or
better and Class VII or better by the latest edition of Best Key Rating Guide. In the case of
professional liability insurance coverage, such coverage shall be issued by companies either
licensed or admitted to conduct business in California so long as such insurer possesses the
aforementioned Best rating.
j Contractor shall immediately notify City if any required insurance lapses or
is otherwise modified and cease performance of this Agreement unless otherwise directed by City.
In such a case, City may procure insurance or self-insure the risk and charge Contractor for such
costs and any and all damages resulting therefrom, by way of set-off from any sums owed
Contractor.
k. Contractor agrees that in the event of loss due to any of the perils for which
it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery.
Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor
or City with respect to the services of Contractor herein, a waiver of any right to subrogation which
any such insurer may acquire against City by virtue of the payment of any loss under such
insurance.
l. Contractor shall include all subcontractors, if any, as insureds under its
policies or shall furnish separate certificates and endorsements for each subcontractor to City for
review and approval. All coverages for subcontractors shall be subject to all of the requirements
stated herein.
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19. Termination. City may for any reason terminate this Agreement by giving
Contractor not less than five (5) days’ written notice of intent to terminate. Upon receipt of such
notice, Contractor shall immediately cease work, unless the notice from City provides otherwise.
Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily
provided and all allowable reimbursements incurred to the date of termination in compliance with
this Agreement, unless termination by City shall be for cause, in which event City may withhold
any disputed compensation. City shall not be liable for any claim of lost profits.
20. Maintenance and Inspection of Records. In accordance with generally accepted
accounting principles, Contractor and its subcontractors shall maintain reasonably full and
complete books, documents, papers, accounting records, and other information (collectively, the
“records”) pertaining to the costs of and completion of services performed under this Agreement.
City and its authorized representatives shall have access to and the right to audit and reproduce
any of Contractor's records regarding the services provided under this Agreement. Contractor shall
maintain all such records for a period of at least three (3) years after termination or completion of
this Agreement. Contractor agrees to make available all such records for inspection or audit at its
offices during normal business hours and upon three (3) days’ notice from City, and copies thereof
shall be furnished if requested.
21. Compliance with all Laws/Immigration Laws.
a. Contractor shall be knowledgeable of and comply with all local, state and
federal laws which may apply to the performance of this Agreement.
b. If the work provided for in this Agreement constitutes a “public works,” as
that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must
be paid, to the extent Contractor’s employees will perform any work that falls within any of the
classifications for which the Department of Labor Relations of the State of California promulgates
prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it,
shall pay not less than the specified prevailing rates of wages to all such workers. The general
prevailing wage determinations for crafts can be located on the website of the Department of
Industrial Relations (www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract,
Contractor must meet all State registration requirements and criteria, including project compliance
monitoring.
c. Contractor represents and warrants that it:
(1) Has complied and shall at all times during the term of this
Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes,
and orders, including, without limitation, the Immigration Reform and Control Act of 1986
(IRCA); and
(2) Has not and will not knowingly employ any individual to perform
services under this Agreement who is ineligible to work in the United States or under the terms of
this Agreement; and
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(3) Has properly maintained, and shall at all times during the term of
this Agreement properly maintain, all related employment documentation records including,
without limitation, the completion and maintenance of the Form I-9 for each of Contractor’s
employees; and
(4) Has responded, and shall at all times during the term of this
Agreement respond, in a timely fashion to any government inspection requests relating to
immigration law compliance and/or Form I-9 compliance and/or worksite enforcement by the
Department of Homeland Security, the Department of Labor, or the Social Security
Administration.
d. Contractor shall require all subcontractors or subconsultants to make the
same representations and warranties as set forth in Subsection 21.c.
e. Contractor shall, upon request of City, provide a list of all employees
working under this Agreement and shall provide, to the reasonable satisfaction of City, verification
that all such employees are eligible to work in the United States. All costs associated with such
verification shall be borne by Contractor. Once such request has been made, Contractor may not
change employees working under this Agreement without written notice to City, accompanied by
the verification required herein for such employees.
f. Contractor shall require all subcontractors or sub-consultants to make the
same verification as set forth in Subsection 21.e.
g. If Contractor or subcontractor knowingly employs an employee providing
work under this Agreement who is not authorized to work in the United States, and/or fails to
follow federal laws to determine the status of such employee, that shall constitute a material breach
of this Agreement and may be cause for immediate termination of this Agreement by City.
h. Contractor agrees to indemnify and hold City, its officers, officials, agents
and employees harmless for, of and from any loss, including but not limited to fines, penalties and
corrective measures City may sustain by reason of Contractor's failure to comply with said laws,
rules and regulations in connection with the performance of this Agreement.
22. Governing Law and Venue. This Agreement shall be construed in accordance
with and governed by the laws of the State of California and Contractor agrees to submit to the
jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in
Orange County, California.
23. Integration. This Agreement constitutes the entire agreement of the parties. No
other agreement, oral or written, pertaining to the work to be performed under this Agreement shall
be of any force or effect unless it is in writing and signed by both parties. Any wo rk performed
which is inconsistent with or in violation of the provisions of this Agreement shall not be
compensated.
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24. Notice. Except as otherwise provided herein, all notices required under this
Agreement shall be in writing and delivered personally, by e-mail, or by first class U.S. mail,
postage prepaid, to each party at the address listed below. Either party may change the notice
address by notifying the other party in writing. Notices shall be deemed received upon receipt of
same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-
mail shall be deemed received on the date of the e-mail transmission.
“CONTRACTOR” “CITY”
MGT Impact Solutions, LLC City of Orange
3600 American River Dr, Suite 150 300 E. Chapman Avenue
Sacramento, CA 95864 Orange, CA 92866-1591
Attn.: Patrick J. Dyer Attn.: Andrea Pham
Telephone: 916-502-5243 Telephone: 714-744-2251
E-Mail: pdyer@mgt.us E-Mail: apham@cityoforange.org
25. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as
original signatures.
[Remainder of page intentionally left blank; signatures on next page]
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IN WITNESS of this Agreement, the parties have entered into this Agreement as of the
year and day first above written.
“CONTRACTOR” “CITY”
MGT IMPACT SOLUTIONS, LLC CITY OF ORANGE, a municipal corporation
a Florida limited liability company
*By: By:
Printed Name: Thomas C. Kisela, City Manager
Title:
*By: ATTEST:
Printed Name:
Title:
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
Mike Vigliotta, City Attorney
By:
Nathalie Adourian
Senior Assistant City Attorney
*NOTE: City requires the following signature(s) on behalf of the Contractor:
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the
Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary
or an Assistant Treasurer. If only one corporate officer exists or one corporate
officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter
into this Agreement. A copy of the corporate resolution, certified by the
Secretary close in time to the execution of the Agreement, must be provided to
City.
√
A. Trey Traviesa
11/14/2024
11/14/2024
Carla Luke
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EXHIBIT “A”
SCOPE OF SERVICES
[Beneath this sheet.]
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SUBMITTED BY:
PATRICK J. DYER
VICE PRESIDENT
3600 American River Drive, Suite 150
SACRAMENTO, CA 95864
916.502.5243
pdyer@mgt.us
PROPOSAL FOR SB 90 STATE MANDATED COST
CLAIMS PREPARATION SERVICES
CITY OF ORANGE, CALIFORNIA
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CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
COVER LETTER
Andrea Pham
City of Orange, CA
Finance Department
714-744-2251
Dear Ms. Pham:
MGT Impact Solutions, LLC (MGT) is a leader strategic advisory and technology solutions consulting firm,
celebrating its 50-year anniversary of supporting organizations and public professionals in their pursuit of
performance excellence. Our proposed team is confident that our prior experience and individual expertise,
bolstered by supporting software and technology, is the right partner to provide professional services for SB-
90 Reimbursement and Cost Plan Development for the City of Orange.
Our team has over 30 years of experience with the type of services the city needs. We’re committed to using
data and research to align with our expertise to produce findings and recommendations based on best
practices, policies, and procedures for similar-sized institutions. We are a nationally recognized team ready
to partner with the City of Orange and will offer:
National Experience: Our strategy advisory and management consulting solutions have been trusted by
our clients throughout the U.S. for 50 years. We continue to set the standard for creativity and
commitment to our clients’ goals – qualities that set MGT apart from all competitors.
Experienced Staff and Proven Methodologies: In the attached proposal, we have outlined a plan to
provide services to the city. Our proposed project team has the knowledge and experience to
successfully complete the project.
Proven Track Record: Our firm has managed more than 30,000 client engagements nationally, many of
which initiated by repeat business, reflecting our clients’ satisfaction with our services and ability to
exceed expectations. Our culture is to provide our project managers and project teams with the latitude
to make decisions without recourse to corporate approval. We assign staff that have performed the type
of work you need while empowering you to adjust the project as needed to meet your expectations.
Thank you for the opportunity to serve your community. You will hear us talk passionately about our
purpose: Improving the quality of people's lives in the communities we serve through improved
education, government services, and public/private infrastructure. We hope to partner with the city of
Orange to provide value-added insight to produce transformative change for your community. Should you
have questions on any aspect of this proposal, please contact me at 916.443.3411 or pdyer@mgtus.com.
Regards,
Patrick J. Dyer, Vice President
Authorized to bind the firm
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CITY OF ORANGE, CALIFORNIA
PROPOSAL FOR SB 90 STATE MANDATED COST CLAIMS PREPARATION SERVICES
TABLE OF CONTENTS
CITY OF ORANGE’S SB 90 CLAIMING PROJECT ............................................................................. 2
MGT OF AMERICA CONSULTING, LLC ............................................................................................... 3
QUALIFICATIONS OF PROPOSED STAFF ........................................................................................... 4
EXPERIENCE WITH STATE MANDATED COST CLAIMING .......................................................... 5
APPROACH AND METHODOLOGY .................................................................................................... 7
STATE MANDATED COST CLAIMING: SCOPE OF SERVICES ...................................................... 7
WORK PLAN ....................................................................................................................... 7
PROPOSED SCHEDULE AND CLAIMING TIMELINE ...................................................................... 12
PROPOSED PROJECT FEES ..................................................................................................................... 12
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CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
CITY OF ORANGE’S SB 90 CLAIMING PROJECT
The City of Orange can supplement existing revenue sources by filing state mandate cost claims (SB 90
claims) with the California State Controller’s Office. Like many public agencies in California, Orange will
benefit from filing SB 90 claims and seeking reimbursement for state mandated programs.
The City would like to partner with a consulting firm that specializes in SB 90 consulting to do the
following:
Identify all possible SB 90 claiming opportunities.
Prepare and file eligible annual FY 2023-2024 SB 90 claims with the State Controller during the
City’s 2024-2025 fiscal year.
Prepare and file all eligible first time or new SB 90 claims that have claiming instructions issued
during the 2024-2025 fiscal year.
Assist the City with payment tracking.
Assist the City with knowledge transfer and training related to the SB 90 process at the State
level, and related news from other local agencies in California.
We are pleased to provide the City with a one-year or a three-year option. The scope of services will
remain the same for the term of the agreement for the additional quoted periods for the city’s FY 2025-
2026 and FY 2026-2027.
Impacting communities for good.
MGT brings fifty years of experience driving positive social change and performance in education,
government, nonprofits, and critical infrastructure/private industries through assisting clients to
strengthen their foundation, change systematically, and enable resiliencies for long-lasting change.
Since inception, MGT has significantly grown in size and capacity – working with state and local
governments and education partners. Today, we bring a team of over 900 professionals who offer in-
depth market knowledge and understanding so we can hit the ground running.
MGT is a privately held, employee-owned and financially stable limited liability company with a deep
roster of staff and a commitment to serving the public. Our clients care about addressing the world’s
most-pressing problems, and so do we. Their “why” is our why.
What sets us apart is our ability to customize and offer individualized support but also the resources of a
larger infrastructure to enable flexibility in impacting to-scale. Throughout our history, MGT has
successfully delivered more than 30,000 projects through a thoughtful balance of balancing the
“immediate” needs while changing systems to plan for future resilience and success.
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CITY OF ORANGE’S SB 90 CLAIMING PROJECT
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
It is part of our firm's philosophy that a structure, which
emphasizes teamwork and cooperation, will always yield a
better outcome for our clients. This structure and
approach also ensures that our clients will always have
more than one consultant involved with their project,
including at least one senior consulting professional
involved with every facet of the engagement.
We are proud of our California heritage and consulting
roots. Prior to merging with MGT, the original founders of
Public Resource Management Group, LLC (PRM) all
started their consulting careers with David M. Griffith and
Associates (DMG) during the mid-1980s and early 1990s.
That association formed our professional belief system
and approach. Our core values are:
•Providing exceptional technical consulting services
•Developing partnerships with our clients that result in
successful long-term relationships
•Guaranteed deliverables and services
Our Commitment
MGT embraces the most complex challenges on the leadership agenda, with deep commitment, agility,
and local expertise to make a measurable and profound impact. Simply stated. We are impacting
communities for good.
In local government cost consulting, our firm has over 100 years of combined experience in the SB 90,
cost allocation, and indirect cost calculation consulting areas. Our predecessors at DMG were originally
asked by the California State Controller’s Office (SCO) to assist in the development of the original ICRP
format and methodology. That format is still in use today. In our various corporate incarnations since
1985, our consultants have worked with over 250 cities, all 58 counties, and over 100 special districts in
California.
MGT | FIRST LOOK
Name: MGT Impact Solutions , LLC (MGT)
Locations: Headquarters in Tampa Florida;
branch offices nationwide
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QUALIFICATIONS OF PROPOSED STAFF
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
QUALIFICATIONS OF PROPOSED STAFF
We believe our firm is uniquely able to assemble the most experienced, best qualified professional
staff for this engagement. MGT proposes to assign Mr. Patrick Dyer and Mr. Chris Brunette to the
Orange SB 90 claiming engagement
PROJECT EXECUTIVE – PATRICK J. DYER , VICE PRESIDENT
Introduction and Experience: Our firm’s SB 90 practice is led by Patrick Dyer, one of the original
employees at Public Resource Management Group, which was acquired by MGT in August 2007. Prior to
joining MGT, he was a Senior Manager with DMG and Maximus. In total, Mr. Dyer has been directly
involved with state mandate cost consulting for over 20 years, and personally served over 100 cities and
40 counties in the SB 90 claiming area.
Mr. Dyer has given SB 90, cost accounting and ICRP training workshops to over a dozen national,
regional and state associations, as well as the American Governmental Accounting Association.
Mr. Dyer received a Bachelor of Science in Business Administration/Finance from the California State
University at Sacramento.
Project Specific Role: Mr. Dyer will be responsible for the overall coordination and execution of the
Orange engagement. He will be directly involved with contract negotiations and finalization. He will
also guide the preparation of the reimbursement claims, and provide technical assistance. Mr. Dyer will
ensure that all aspects of service delivery are accomplished in the best possible manner.
PROJECT MANAGER – CHRIS BRUNETTE, SENIOR CONSULTANT
Introduction and Experience: Mr. Brunette is a Senior Consultant with MGT’s Performance Solutions
Group (PSG) and has a background in local government reimbursement, cost allocations, and project
management. Mr. Brunette currently assists nine California local government entities with their efforts
to gather and submit claims for SB-90 reimbursement. Additionally, she develops cost plans and
indirect cost rate proposals.
Project Specific Role: Mr. Brunette will prepare all ICRPs and the SB 90 reimbursement claims for the
Orange engagement. He will also defend the ICRPs associated with the SB 90 engagement with SCO
desk reviewers or field auditors.
ANALYST & CLAIMS ASSISTANT – GEORGIA BORISON, SR. ANALYST
Introduction and Experience: Ms. Borison is a senior analyst with MGT Consulting. As a specialist in SB
90 claim preparation, she will assist the team with creating PDFs and finalizing claim forms.
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STATE MANDATE COST CLAIMING EXPERIENCE
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
STATE MANDATE COST CLAIMING EXPERIENCE
No current SB 90 consultant/firm has prepared claims for as long as MGT’s team (starting in 1990). The
team has a personal client list includes over 180 cities, and 50 of the 58 counties in California. As a firm,
MGT currently provides state mandated cost-claiming services to over 130 cities, counties and school
districts in California. The list of city clients that have been served by our consultants during their careers
is extensive. Most of our clients have used our firm, or predecessor firms for many years. It is also the
case that many of our clients contract with MGT for multiple consulting engagements each year. A small
sample of relevant MGT projects include:
AGENCY SERVICE PERIOD PROJECT(S)
City of Anaheim 2003 to present SB 90 Services, Cost Allocation Plan
City of Riverside 2003 to present SB 90 Services
County of Orange 2008 to present SB 90 Services, Cost Allocation Plan
County of Riverside 2005 to present SB 90 Services, Cost Allocation Plan
City of Stockton 2003 to present SB 90 Services
City of Oakland 2004 to present SB 90 Services, Cost Allocation Plan
City of Burbank 2003 to present SB 90 Services, Cost Allocation Plan
City of Sacramento 2003 to present SB 90 Services, Cost Allocation Plan
City of Temecula 2004 to present SB 90 Services
City of Santa Barbara 2003 to present SB 90 Services, Cost Allocation Plan
City of Whittier 2004 to present SB 90 Services, User Fee Analysis
City of Newport Beach 2005 to present User Fee Analysis
City of Livermore 2003 to present SB 90 Services, User Fee Analysis, Right of Way
In state mandated cost claiming, our consultants have filed claims and provided consulting services for
40 of the State's 58 counties. Our staff has also prepared SB 90 claims for over 250 cities, 30+ counties,
and over 100 school and special districts.
SOCAL AND SAN DIEGO AREA EXPERIENCE
MGT currently files SB 90 claims for dozens of cities in Southern California, as well as Imperial County,
Orange County and Riverside County. In San Diego and Orange counties, we file claims for over twenty
cities. This breadth of experience and communication leads to a deeper understanding of what costs are
usual and customary in this region and results in stronger, more supportable claims and documentation.
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STATE MANDATE COST CLAIMING EXPERIENCE
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
ORANGE, A VALUED, EXISTING CLIENT
MGT currently files SB 90 claims for the City of Orange and has done so for over 9 years. The claiming
process with the City has been smooth and successful.
CONTACT INFORMATION FOR THIS PROJECT
Firm: MGT Impact Solutions, LLC
Contact Person: Patrick J. Dyer, Vice President
Contract Signature: Patrick J Dyer, Vice President
Location: 3600 American River Drive, Suite 150, Sacramento, CA 95864
Contact Information: 916.502.5243 pdyer@mgt.us
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APPROACH AND METHODOLOGY
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
APPROACH AND METHODOLOGY
STATE MANDATED COST CLAIMING: SCOPE OF SERVICES
MGT provides true turn-key mandate cost claiming services to its clients, and our approach is based
around personal interaction. Our staff is involved with our clients’ claiming process throughout the
year, providing proactive news, reports, and the earliest notification of new SB 90 claims possible.
We provide our clients claiming summaries and data collection guides to assist them to understand all
eligible components of each program. This process supplements the on-site interviews that our staff
conducts to ensure that each department contact understands precisely what data is required, and what
the internal deadlines are for submission.
While Orange may not be at risk for State Controller field audits given the size of its claims, we believe
that part of our job is assisting your departments to understand the appropriate levels of
documentation required for each claim the City files.
Finally, the project manager will complete all claims, all indirect cost rate proposals, and compile all
elements of the claims in both a hard copy and Adobe .pdf format and send them to the City for review
and signature well in advance of the claiming deadline.
Throughout the year, our consultants attend the key meetings with the Commission on State Mandates,
the State Controller, Department of Finance and other important stake holders to ensure that we have a
thorough understanding of all pending issues and interpretations in the SB 90 area, as well as all
upcoming local government reimbursement claims.
MGT Consulting will provide the following services to the City of Orange:
Identify all possible SB 90 claiming opportunities
Prepare and file all eligible annual SB 90 claims with the SCO
Prepare and file all eligible first time or new SB 90 claims that have claiming instructions issued
during the given fiscal year
Assist the City with payment tracking
Assist the City with knowledge transfer and training related to the SB 90 process at the State
level and related to pertinent activities from other local agencies in California.
WORK PLAN
NEW CLAIMS: DUE THROUGHOUT THE FISCAL YEAR
Establish a schedule and approach needed to complete all new or first-time claims due within
the first quarter and second quarters of each fiscal year. This includes on-site interviews with all
applicable City department personnel.
Docusign Envelope ID: C40FADA3-9198-4678-A574-7B25D5E17694
APPROACH AND METHODOLOGY
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
Determine general compliance with the eligible state mandates, and determine eligible costs
based on the following criteria:
▪The test claim’s Statement of Decision
▪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 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.
Receive claims from the City for SB 90 programs and review the claims for completeness,
propriety, and eligibility of costs.
Perform a quality assurance review of the City’s SB 90 claims to ensure that the costs are
supported by appropriate source documentation.
Prepare claims and provide the completed claims and ICRPs to the City for review and signature
at least two weeks prior to the claiming deadline.
File the signed claims with the SCO prior to the deadline.
ANNUAL CLAIMS: DUE TO THE STATE BY FEBRUARY 15TH
Establish schedule and approach needed to complete all annual claims due to the state by
February 15th. This includes on-site interviews with all applicable department personnel.
Interview specific department staff to introduce all eligible SB 90 claims and how each
department complies with the state’s requirements.
Prepare all necessary department-wide ICRPs in accordance with OMB A-87. MGT consultants
have prepared thousands of ICRPs over the past 28 years. We believe that our experience has
developed a depth of understanding that is unmatched in the field.
Receive claim information from the City and calculate all eligible direct costs.
Perform a quality assurance review of the City’s SB 90 claims to ensure that they mesh with the
associated department ICRPs.
Discuss any potential or necessary changes with the appropriate City department.
Provide the completed claims and ICRPs to the City for review and signature at least two weeks
prior to the claiming deadline.
File the signed claims with the SCO prior to the deadline.
PROJECT COORDINATION
MGT views the SB 90 process as a partnership between Orange and our firm. We will work with the
City at any level of local involvement that you prefer. We value your time and internal resources. We
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APPROACH AND METHODOLOGY
CITY OF ANAEHIM | 8.20.24| SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
will keep the City apprised of everything we are doing, but will manage all aspects of project
coordination. We will provide the City with:
A list of all eligible claims, as well as Claim Summary sheets and Data Collection forms. These
concise summaries and forms are available in a variety of electronic formats (Microsoft Word,
Excel, and Adobe PDF) to make claiming information easy to understand.
Work in concert with Orange’s SB 90 Coordinator to coordinate the City’s claiming 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 provide the City with written documentation
explaining why the County will not file certain claims upon request, if applicable.
DATA COLLECTION
The three components of data collection related to this engagement include: direct cost program data,
indirect cost data, and supporting documentation.
DIRECT COST PROGRAM DATA COLLECTION
Conduct individual meetings with departments to discuss all reimbursable mandated activities.
Develop a schedule and plan for mining the necessary data to ensure claims are completed well
before the claiming deadlines.
DEPARTMENTAL INDIRECT COST DATA COLLECTION
Gather salary and benefit data from the City or the individual departments
Collect certain pages from the City’s cost allocation plan.
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
MGT will work with City departments to determine the documentation that must be submitted
to the state as attachments to claims, and what documentation should be maintained in the
City’s 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 CITY DEPARTMENT STAFF
We believe there is no cookie cutter approach to successful orientation and training. Some of the City’s
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 provide:
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APPROACH AND METHODOLOGY
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
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.
On-site training for both program and fiscal staff. It is important that both parts of each
affected department understand the state's requirements and any specific issues related to the
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.
Assistance to determine relevant and defensible source documentation standards for each claim
within each of the City’s claiming departments.
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 the City will be aware of any foreseeable exposures existing at
the claiming stage.
CLAIM PREPARATION
Once data has been received from the City, MGT will prepare all eligible claims on behalf of the City
using required SCO claim forms.
DIRECT COSTS
Prepare all claims that apply to single departments. Once again, our experience will ensure that
no cost components are misinterpreted or omitted.
Coordinate and prepare all multi-departmental 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
Prepare ICRPs for all claiming departments. The ICRPs provide an approved method for claiming
departmental indirect costs.
FILING PROCEDURES
MGT will provide the City’s SB 90 Coordinator with a clear, understandable process for receiving the
completed claims/ICRPs and obtaining the necessary signatures. The City will know where the
completed claims need to be mailed. Once we receive the, Brad and Justin will be responsible for
making sure the claims are received and filed with the SCO on time.
MGT will perform one final quality control check to ensure that the City has signed two original
coversheets, all parts of the claim are included, and required documentation is attached.
MGT will hand deliver all signed claims received from the City to the SCO on or before the stated
deadline. We will also provide the SCO with a Claims Receipts for their staff to sign and return.
Docusign Envelope ID: C40FADA3-9198-4678-A574-7B25D5E17694
APPROACH AND METHODOLOGY
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
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 City and MGT is very easy using e-mail. Adobe PDF claims can
be stored electronically by both the City and our firm. This process saves paper which is
environmentally friendly, and makes sharing claims with your claiming departments effortless.
REMITTANCE TRACKING
MGT will assist the City with all aspects of remittance tracking throughout the entire fiscal year. We will
provide the City with:
Copies of all signed claims receipts (includes all claims filed and amounts for each)
When the City receives payments for SB 90 claims, please let us know and we will ensure that
the State is paying the full amount owed and answer any questions that you may have.
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 complimentary services to continuously upgrading the City’s knowledge
base, relations, and communications with the state and contract agencies, and anticipation of changes
to the claiming process.
LIAISON ASSISTANCE
MGT will also provide liaison assistance with the SCO at the desk review level. The SCO will call
requesting additional information, or duplicate documentation that may have gotten lost in
their offices. We will field these calls and fulfill all appropriate requests without the City’s need
to get involved. We will also assist the City if the SCO field audits any claim filed by our firm.
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PROPOSED SCHEDULE AND CLAIMING TIMELINE
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
PROPOSED SCHEDULE AND CLAIMING TIMELINE
MGT will complete SB 90 data collection and claims preparation using this schedule:
OCT/NOV NOV/DEC JANUARY FEBRUARY
10/1
Begin data collection
and follow up on
eligible activity w/
MGT.
11/10 All mandate specific
claim data due to MGT
MGT Claim
Preparation
Compile data, calculate
indirect cost rates, format
claims, and follow up with
departments.
1/12 MGT distribute
claims and ICRPs for
city review
2/1
Claims to City for final
review and signature
Questions and follow
up from 10/14 –
10/31. Department
deadline with MGT
for data submission
10/31.
1/30
Edits and changes due
to MGT
2/8 Signed claims
returned to MGT
Feb 15th
Hand Deliver
Claims to State
PROPOSED PROJECT FEES
MGT will complete and file all eligible annual claims that are due on February 2025, as well as all new,
or first-time claims for which claiming instructions are issued during the 2024-2025 and 2025-2026
fiscal years, for the following fees.
SINGLE FIXED FEE PRICING
TASKS COVERED PROPOSED
ANNUAL FEE PAYMENT TERMS
New & Annual SB 90 Claim
Preparation/Submission
For FY 2024-2025
Fixed Fee $10,000 Quarterly billing
New & Annual SB 90 Claim
Preparation/Submission
For FY 2025-2026
Fixed Fee $10,500 Quarterly billing
Docusign Envelope ID: C40FADA3-9198-4678-A574-7B25D5E17694
PROPOSED PROJECT FEES
CITY OF ORANGE | 10.9.24 | SB-90 REIMBURSEMENT AND COST ALLOCATION DEVELOPMENT
If the City would rather have a one-year agreement for FY2024-2025, please use the amount shown
above for that year.
This fee is all inclusive (no expenses will be charged to the City). It is anticipated that these claims will
be almost exclusively by one department (Police), and the City could have a PERB claim (Human
resources) as well. There were eleven programs last year filed last year by Orange.
MGT is confident that the professional commitment of resources and variety of services offered under
this proposal is unmatched. Thank you for the opportunity to submit this proposal to the City.
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