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HomeMy WebLinkAboutAGR-7749 - MATRIX CONSULTING GROUP LTD - COST ALLOCATION PLAN AND USER FEE STUDY DEVELOPMENT SERVICES - RFP NO. 24-25.01Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Ds AGR-7749 ST' PROFESSIONAL SERVICES AGREEMENT Cost Allocation Plan and User Fee Study Development Services - RFP No. 24-25.01] THIS PROFESSIONAL SERVICES AGREEMENT (the "Agreement") is made at Orange, California, on this 10th day of September 2024 (the "Effective Date") by and between the CITY OF ORANGE, a municipal corporation ("City"), and MATRIX CONSULTING GROUP, LTD, a California corporation ("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. 2. Compensation and Fees. a. Contractor's total compensation for all services performed under this Agreement, shall not exceed FIFTY-EIGHT THOUSAND FIVE HUNDRED DOLLARS and 00/100 ($58,500.00)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. 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. Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 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. 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 2 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 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. 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 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. 3 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 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. 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. 4 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 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 Million Dollars ($1,000,000) 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. 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. d. 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 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. e.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) 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. f.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. g. Before Contractor performs any work or prepares or delivers any materials, Contractor shall furnish certificates of insurance and endorsements, as required by City, 5 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 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. h. 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. i.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. j.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. k. 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. 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 6 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 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 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 7 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 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 he in Orange County, California. 23. lnteeration. 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 work performed which is inconsistent with or in violation of the provisions of this Agreement shall not be compensated. 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" Matrix Consulting Group, LTD City of Orange 1650 S. Amphlett Blvd, Suite 213 300 E. Chapman Avenue San Mateo, CA 94402 Orange, CA 92866-1591 Attn.: Richard Brady, President Attn.: Trang Nguyen Telephone: (650) 858-0507 Telephone: (714) 744-2235 E-Mail: rbrady@matrixcg.net E-Mail: nguyent@cityoforange.org 8 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 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. IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written. CONTRACTOR" CITY" MATRIX CONSULTING GROUP, LTD CITY OF ORANGE, a municipal corporation a California corporation DocuSipnedby: Itb itl, f. Statue DS *By By: .2DA88777,20447 it Printed Name:Richard Brady Daniel R. Slater, Mayor Title:President Initial *By: r Printed Name:Courtney R Title:Senior Vice President DocuSlpned by: ATTEST: na/aFprggipcA3e Pamela Coleman, City Clerk APPROVED AS TO FORM: DocuSlpned by: By: Mnamr1147BFdon Mike Vigliotta, 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. 1LYA 9 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 EXHIBIT "A" SCOPE OF SERVICES Beneath this sheet.] L)ocusign Envelope ID:4342A889-137AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study I ORANGE, CALIFORNIA July 25, 2024 matrix consulting group Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Table of Contents A Cover Letter i B Company Data 1 C Certificate of Insurance 3 D Validity of Proposal 4 E Certification of Understanding 5 F Statement of Compliance/Terms and Conditions 6 G Resumes and Qualifications of Personnel 7 H Work Plan 12 Fees 24 J Related Experience and References 26 K Sample Report 32 L Resources to be Provided by the City 33 M Certificate of Non-Collusion 34 Appendices 36 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 matrix consulting group July 25, 2024 Wanda Alvarez, Purchasing Officer City of Orange 300 E. Chapman Avenue Orange, CA 92866 Dear Ms. Alvarez: The Matrix Consulting Group is pleased to submit our proposal to develop a Cost Allocation Plan and User Fee Study for the City of Orange. The importance of establishing documented and defensible plans that facilitate the recovery of direct and indirect costs. We understand the importance of establishing documented and defensible studies to recover direct and indirect costs. We have conducted over 300 cost of service studies, mostly in California, and have been providing this service to our client for over 21 years. Our experience in providing similar services and understanding of the impact and implementation issues faced by jurisdictions in Southern California comes from recent work with the following clients: Chula Vista, Glendale, Menifee, Manhattan Beach, Pasadena, Pomona, San Bernardino, South Pasadena, and Walnut. Additionally, we previously worked with the City on its user fee study in 2018 and can utilize that familiarity to ensure timely completion of work products. At Matrix Consulting Group, we distinguish ourselves from our competitors through our commitment to delivering unparalleled value. Our staff possess a deep understanding of service and process assumptions behind the cost of service.This dual expertise allows us to provide comprehensive insights and solutions that optimize efficiency and maximize our clients' value. Additionally, having a local office in Irvine will help facilitate the data collection, staff interviews, and any presentations. I am the firm's President and authorized to contractually bind the firm. Courtney Ramos, a vice president, can provide clarification regarding this proposal. We can be reached at the letterhead locations or via email at rbrady@matrixcg.net and cramos@matrixcg.net Richard Brady, President Matrix Consulting Group, Ltd. 18012 Cowan, Suite 200 Irvine, CA 92614 650.858.0507 SF Bay Area (Headquarters), Charlotte, Dallas, Fort Myers, Irvine, Portland, St. Louis Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA B Company Data Q1. State the company's official name and address and the names and titles of its principal officers; indicate what type of entity, such as corporation, partnership, joint venture, sole proprietorship, etc. and indicate if the firm is incorporated. Our firm's official name is the Matrix Consulting Group, Ltd. Our headquarter location is in San Mateo at the address below,and we have regional offices in Irvine CA), Edwardsville (IL),Charlotte and Cary(NC),the Dallas Metroplex(TX), Portland OR), and the Tampa (FL) area. Matrix Consulting Group, Ltd. 1650 S. Amphlett Blvd., Suite 213 San Mateo, CA 94402 We are a corporation, incorporated in the State of California in 2003. The names and titles of our seven principal owners are: Richard Brady, President Alan Pennington, Senior Vice President and Chief Talent Officer Courtney Ramos, Senior Vice President and Chief Financial Officer Ian Brady, Senior Vice President and Chief Operating Officer Aaron Baggarly, Vice President Jen Winter, Vice President Khushboo Ingle, Vice President Q2. Provide the firm's Federal Employer I. D. Number. 05-0545979 Q3. Provide the name and address of the person to receive notices who is authorized to make decisions and represents the company. Specify in what capacity the person shall be representing the entity and any limitations to their authority. Richard Brady, President of the firm, is authorized to make decisions on behalf of the company. He will be the City's main contact regarding contract negotiation. Courtney Ramos, a senior vice president and financial services practice leader, can clarify information in this proposal. They can be reached at the address above. Matrix Consulting Group 1 Docuslgn Envelope ID:4342A889-B7AE-4782-9FG8-B79412932CG2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA Q4. Furnish the complete firm's address for any mailed funds. Matrix Consulting Group, Ltd. 1650 S. Amphlett Blvd., Suite 213 San Mateo, CA 94402 Q5. State any failures or refusals to complete any contracts and a complete explanation. Our firm has never failed or refused to complete a contract. Q6. Indicate the number of years in business under the present business name. We have been in business under our current name for 21 years. Q7. Indicate the number of years of the firm's experience in providing required, equivalent or related products and services. The Matrix Consulting Group has been providing analytical services to local governments equivalent to those requested by the City of Orange since 2003. Q8. Submit a detailed statement indicating whether the Responder is totally or partially owned by another business organization or individual that will be providing the services to meet the requirements of the Proposal. Our firm is not totally nor partially owned by another business or individual. Q9. Submit a detailed statement indicating whether the Responder totally or partially owns any other business organization that will be providing the services to meet the requirements of the Proposal. Our firm has a wholly owned Canadian subsidiary, MCG Consulting Solutions. However, services to meet the requirements of the City's RFP will be performed by full-time employees of the Matrix Consulting Group. Matrix Consulting Group 2 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CG2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA C Certificate of Insurance We confirm our ability to provide a current certificate of insurance within ten calendar days of notification of selection for award. Matrix Consulting Group 3 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA D Validity of Proposal Our proposal is valid for 120 calendar days from date of submittal. Matrix Consulting Group 4 Docuslgn Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA E Certification of Understanding We agree to the terms outlined in Section III.E of the City's RFP. Matrix Consulting Group 5 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA F Statement of Compliance with Agreement's Articles/Terms and Conditions This proposal is in compliance with said Request for Proposal information, except for those proposed exceptions listed in a separate attachment hereto. (RFP Section Ill, F.1 .b) Please refer to the Appendices section at the end of this proposal for details. Matrix Consulting Group 6 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA G Resumes and Qualifications of Personnel The team is comprised of full-time employees of the firm and organized as follows: Project oversight and City of Orangeoverallprojectapproval. J Primary contact for the project, providing expertise Courtney Ramos in reviewing drafts and Principal-in-Charge presenting results. Responsible for leading interviews,financial Khushboo Ingle analysis, policy discussion Project Manager and development. Coordination of data collection,support City staff Madison Dixson Abnash Minhas Anna Barnett in data development,and Analyst Analyst Analyst populate models.J The following table provides experience summaries for our proposed project team, including types and years of experience, recent clients, and project roles. Matrix Consulting Group 7 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA Courtney Ramos Ms. Ramos is a Senior Vice President and our Financial Services Practice Sr. Vice President Leader who oversees cost allocation plan, user fee, development impact fee, and cost of service engagements. Her tenure with the firm has also Experience: included participation in operational audit engagements focusing on 19 years reviewing organizational and staffing structures to enhance services. Courtney's relevant experience include the completion of over 300 cost of service studies; analysis focuses on development and documentation of direct and indirect costs, fair and equitable allocation methodologies; and expertise in the development of fiscal policies and procedures relating to cost of service and cost recovery. She was the Principal-In-Charge on the previous City of Orange cost-of-service studies as well. In addition to the City of Orange, recent Southern California clients include Burbank, Glendale, Manhattan Beach, Menifee, Pasadena, Redlands, Riverside,San Bernardino,South Pasadena,and Walnut. Courtney received an A.A. degree in Administration of Justice,as well as an A.A. degree in Sociology from Santa Barbara City College. Her certifications include Revenue Enhancement Best Practices. Her role on this project would be to serve as the Principal-in-Charge, ensuring timely project deliverables, quality control, and presentation to stakeholders. Khushboo Ingle Ms. Ingle is a Vice President who manages cost allocation plan, user fee, Vice President development impact fee,and cost of service engagements. Her experience with the firm also includes participation in operational audit engagements Experience: focusing on organization, staffing, and internal processes. 12 years Khushboo has completed over 200 cost of service studies. Recent Southern California clients include Adelanto, Burbank, Glendale, Manhattan Beach, Menifee, Pasadena, Redlands, Riverside, San Bernardino, South Pasadena, and Walnut. She was also the Project Manager who completed previous cost-of-service studies for the City of Orange. Khushboo received a B.A. in International Economics and an M.A. in International Affairs from the University of California — San Diego and is certified in OMB Cost Allocation Best Practices. Her role on this project will be Project Manager, involved in leading meetings, developing draft results, and reviewing results. Matrix Consulting Group 8 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA Madison Dixson Ms. Dixson is an analyst who assists our senior staff on cost allocation plan, Senior Consultant user fee, development impact fee,and cost of service engagements. Experience: During her time with the firm, Ms. Dixson has served as a project analyst for 3 years several Southern California clients including Glendale, Burbank, Pasadena, Menifee, Redlands,Walnut,and San Bernadino. Madison has a B.A. in Anthropology from the University of California — Irvine. She is also certified in OMB Cost Allocation Best Practices. Her role on this project would be to serve as an Analyst, involved in attending meetings,data input,and developing models. Abnash Minhas Ms. Minhas is an analyst who has recently joined our firm to assist our staff Consultant on cost-of-service engagements including cost allocation plan, user fee, and development impact fee studies. She has recently assisted on projects Experience: for Southern California clients including Pomona, Redlands, Glendale, 2 years Menifee, and Chula Vista. Abnash received a B.A. in Economics from the University of California—San Diego. Her certifications include Revenue Enhancement Best Practices. Her role on this project would be to serve as an Analyst, involved in attending meetings, data input, and model development. Anna Barnett Ms. Barnett is an analyst who has recently joined our firm to assist our staff Consultant on cost-of-service engagements including cost allocation plan, user fee, and development impact fee studies. She has recently assisted for projects Experience: on Norman (OK), Lewis County (WA), and Santa Clara County(CA). 1 year Anna has a B.A. in Mathematics with concentration in Data Science, and a B.S. in Economics from Wofford College in Spartanburg,South Carolina. Her certifications include Revenue Enhancement Best Practices. Her role on this project would be to serve as an Analyst, involved in attending meetings, data input, and model development. Detailed resumes for Courtney Ramos and Khushboo Ingle begin on the following page. Matrix Consulting Group 9 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA COURTNEY RAMOS SENIOR VICE PRESIDENT / CHIEF FINANCIAL OFFICER Ms. Ramos is our Financial Services Practice Leader,who oversees Relevant CA Clients: cost allocation plan, user fee, development impact fee, and cost of Citrus Heights service engagements. Her tenure with the firm has also included Cupertino participation in operational audit engagements focusing on Dixon reviewing organizational and staffing structures to enhance Elk Grove services. Courtney's relevant experience include: Fairfield Glendale Completed over 250 cost of service studies for clients across the Humboldt County United States. Livermore Analysis focuses on development and documentation of direct Long Beach and indirect costs, fair and equitable allocation methodologies, Manhattan Beach and defensible results. Orange Pacific Grove Expertise also includes development of fiscal policies and Redwood City procedures relating to cost of service and cost recovery. San Bernardino County San Pablo Experience Highlights San Mateo Santa Clara Manhattan Beach, CA: Courtney served as the project executive and Santa Clara County project manager on this engagement which determined the Sonoma County South San Francisco overhead allocation and full cost of providing city fee-based Stanislaus County services. Key analysis included:Sunnyvale Identifying services provided by City staff, including documenting Vacaville services, and service levels. Winters Willits Ensuring fair and equitable allocations of support services. Recommending capital project allocation through direct Years of Experience: 19 engineering charges.Education: Repeat client who engaged us for the same study 4 years later. A.A. Administration of Riverside, CA: This study reviewed the City's overhead review Justice,A.A. Sociology practices. Key analysis included: Santa Barbara City College CA). Ensuring all central services are appropriately accounted for in the plan. Professional Association / Identifying best practices for cost allocation. Certification: Government Finance Role on This Engagement: As Principal-in-Charge, Courtney will Officers Association provide expertise in reviewing drafts and presenting results. California Society of Municipal Finance Officers Revenue Enhancement Best Practices Matrix Consulting Group 10 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA KHUSHBOO INGLE VICE PRESIDENT Ms. Ingle is a Vice President who manages cost allocation plan, user Relevant CA Clients: fee, development impact fee, and cost of service engagements. Her Berkeley experience with the firm also includes participation in operational Citrus Heights audit engagements focusing on reviewing organizational, staffing, Cupertino and internal processes to enhance services.Dixon Elk Grove Khushboo's relevant experience include: Fairfield Completed over 150 cost of service studies for clients across the Humboldt County United States. Livermore Long Beach Analysis focuses on verifying and reviewing cost of service Manhattan Beach assumptions and ensuring compliance with best practices.Orange Expertise also includes impact fee studies and development fee- Pacific Grove studies. Redwood City San Bernardino County San Pablo Experience Highlights San Mateo Santa Clara Orange, CA: Khushboo served as the Project Manager on this Santa Clara County engagement which looked at conducting a citywide fee study and Sonoma County development impact fee analysis. Key analysis includes: South San Francisco Stanislaus County Streamlining land use categories for Fire impact fees to represent Sunnyvale the current types of use. Vacaville Identifying growth projections and appropriate nexus Winters considerations for impact fees. Years of Experience: 12 Downey, CA: Khushboo served as the project manager on this engagement which looked and developing a citywide cost plan, Education: comprehensive user fee study, and Development Impact Fees. Key B.A., University of analysis included: California — San Diego, Review of current administrative functions, and ensuring all International Economics appropriate functions were included in the plan. M.A., University of Incorporating updated metrics to account for each service area. California — San Diego, Calculation of Indirect costs.International Affairs Professional Association / Role on This Engagement: Khushboo will serve as the Project Certification: Manager on this engagement, leading interviews and coordinating California Society of necessary data collection for the financial analysis, policy Municipal Finance Officers discussions, and working with the Data Analyst to compile and Revenue Enhancement analyze data.Best Practices Matrix Consulting Group 11 Docusign Envelope ID:4342A889-B7AE-4782-9FG8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA Work Plan This section of our proposal demonstrates our project understanding and provides an overview of our approach and proposed work plan, including task deliverables and overall project schedule. Project Understanding The City of Orange is requesting a Full Cost Allocation Plan and a User Fee Study. The City last conducted these studies in 2017 and 2018, respectively. Consistent with best Practices, the City is interested in engaging with an external consultant to conduct an update. It is important to review and update the Full Cost Allocation Plan to capture any organizational changes that have occurred in the last 6 years, as well as shifts in the types of services. The results of this analysis can be used by the General Fund to justify transfers from non-general fund sources, as well as be incorporated in the user fee study. The previous user fee study was conducted in 2018 and included all areas of service including facility rentals, building fees, and EMS fees. As part of the previous analysis, we worked with the City to convert their valuation-based fee schedule to one more based on scope of services — occupancy and square footage. Additionally, at the end of that study, we provided staff with excel-based models for annual updates and changes. The scope of the updated user fee study will be to utilize that prior information and any in-house updates, but also ensure that all new services are being captured and any feedback / input regarding use and implementation of current fee structures are incorporated. Through this process we will reevaluate all fees for service and ensure that it capture updated services and updated direct and indirect costs. Methodology and Approach The Matrix Consulting Group works with clients of all sizes in over 45 states across the U.S. and Canada. Every project is unique but is managed according to the following essential project approach: Matrix Consulting Group 1 2 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA Understanding City-specific financial data. Workingcollaborativelywtih Citystaff through meetings and9 workshops. Applying industry standards, best management practices, and technical expertise for cost allocation and user fee application. Calculating defensible results with buy-in from internal and external stakeholders. Providing recommendations and transferring knowledge and work products to City staff for successful implementation. These approaches allow us to provide services to our clients that not only meet their needs and adhere to state and local guidelines but also educate staff about fees' uses and applications and provide guidance for future updates or increases. Work Plan The following outlines our detailed task plan to conduct the study. These scopes of work can be conducted concurrently. Project-wide Tasks There are three key tasks that would span all three scopes and then the tasks would vary based on each scope of work. The following tasks would be conducted for all scopes. Task 1 I Data Collection Prior to any initial meetings, we will provide the City with a list of data requirements. This will allow our project team to review this information thoroughly in preparation for initial discussions with staff. A common list of data collection items include: Budgeted Expenditures per Fund and Department. Staffing per Fund and Department. List of current fees to be included in the scope. Copy of any previous studies / analyses. List of comparable jurisdictions for the comparative analysis. These items will allow our project team to familiarize themselves with the City's structure. Deliverable List of basic data requirements for the Study Matrix Consulting Group 13 Docusign Envelope ID:4342A889-137AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA Task 2 I Study Objectives and Project Schedule Once the data has been collected, the project team will then meet with City staff to discuss any issues identified by the project team, as well as to clarify any existing issues or concerns held regarding the current cost allocation and user fee study methodology. Discussions will include: Review of the City's specific needs and critical issues surrounding development and implementation of the cost allocation and user fee study. Opportunities for improvement and restructuring of previous cost allocation and fee analyses. Discussion of cost recovery goals. At the culmination of the meeting,the project team and the designated City staff will leave with a greater understanding of the overall approach and methodology that will be taken by the project team to conduct the cost allocation and user fee study. L i 6 Task 3 / Excel-Based Model and Training The City wishes to have the ability to update the final version of the cost allocation and fee studies, including the ability to add, revise or remove costs or service types, as well as update assumptions regarding any fee changes. Our technical models would provide the ability for the City to adapt and continuously update each study annually. We have previously provided our fee-based model(s) to the City for annual updates. We have updated our model(s) since the previous analysis, but many of the components are same. While the models are structured in Excel, the technical models are proprietary and for internal use by City staff only. By having our model based in Excel, the requirements for software training, new software, updates, licensing, or other support, are minimized. After the final draft of the cost allocation plan and user fee study is approved,the project team would meet with, and train designated City employees on use of requested models. Staff will be provided with training that includes: a User's Manual which explains key concepts, defines basic terms, includes a customized updated checklist of data that needs to be entered, and discusses different scenario options (e.g., adding new central services, removing receivers, etc.), as well as instruction tabs for the Fee Models. Matrix Consulting Group 14 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA DeliverableI Excel Model and Backup Documentation Cost Allocation Plan Tasks The City of Orange is requesting the development of a Cost Allocation Plan to capture the indirect costs associated with direct programs and services. The City last conducted this study in 2017 and would like to update it to ensure that all indirect costs associated with operations are captured. The tasks to be conducted are described below. Task 1 Interview Staff and Gather Allocation Metrics The project team would review the City's previous cost allocation plan, as well as current financial structure to identify City departments and services to be allocated. To structure a custom cost allocation model, our project team would perform the following: Review and discuss the accounting (fund and organizational levels) structure of the City based on budgeted expenditures to identify any anomalies. Identify and meet specific central services departments to develop allocation bases and ensure that the plan reflects the following aspects: All current services provided by the Department are identified and documented within the Cost Allocation Plan. Allocation bases discussed to be utilized are reflective of the current level of effort and most relatable to the service being performed. The following is a sample flowchart visually representing discussion outcome, the first level is the central services department,the second level is the identified service category, and the third level is the basis by which costs will be allocated: Finance H Payroll Accounts Payable Financial Reporting of Employees per of Invoices per Actual Expenses per Division Division Division Discuss alternative allocations, including outcomes and potential impacts. Matrix Consulting Group Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA The points above provide examples of the types of detailed and in-depth discussions that the project team will have with City departments involved in the cost allocation process. At this point in the process,the project team would reach out to each department and ask for specific allocation metrics such as purchase orders, invoices, sq. ft. per facility, etc. Deliverable Allocation Metric Requests from Support Departments Task 2 I Review of Draft Cost Allocation Metrics Based on the units of service identified in Task 1 and the allocation metrics collected,the project team would put together allocation workbooks for review with central service departments. The purpose of these workbooks is to review the initial results of the allocation metrics. The following graphic shows an example of the allocation workbook: of AR Transactions Fund Dept Desc per Fund/Dept Allocation% 1 10 City Manager 3 0.87% 1 16 Human Resources 30 8.75% 1 20 City Attorney 30 8.75% 1 30 Police 68 19.83% 1 35 Fire 1 0.29% 1 40 Development Services 7 2.04% 1 50 Public Works Streets 5 1.46% 1 51 Public Works Facilities 1 0.29% 1 52 Community Services 185 53.94% 10 Water 1 0.29% 14 Sewer 8 2.33% 29 Self-Insured Liability Fund 4 1.17% TOTAL 343 100.00% In the sample graphic provided, based on the number of AR Transactions per fund/department, the primary support is for Community Services (54%) for all the Parks and Recreation transactions, followed by Police (20%). Based upon the results of this sample, the project team would verify with Finance that the statistics were allocated to the appropriate fund/department and that the resulting percentage is reflective of the support being provided by the Accounts Receivable staff and function. This type of detailed review is critical for the development of a defensible cost allocation plan. It also ensures that departmental staff and City staff are comfortable with the use of the allocation metrics and the support that those metrics represent. iverable f 4. a k, Matrix Consulting Group 16 Docusign Envelope ID:4342A889-B7AE-4782-9FG8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA Task 3 Structure and Prepare Draft Full Cost Allocation Plan Once the central service departments and administrative functional areas have agreed upon, the appropriate allocation metrics for services, allowable administrative or other indirect costs are allocated to each benefiting department, operating unit, or fund. At this point the project team would begin customizing the Cost Plan to ensure methodologies and assumptions comply with Federal regulations (2 CFR 225) by utilizing a double-step down allocation methodology and general accounting principles. During the development of the cost allocation plan, the project team will ensure that any expenses included in the plan are vetted and reviewed with Finance staff, as well as incorporate any direct reimbursements. The results of the draft cost allocation plan will be provided to staff in numerical format in Excel prior to the development of a draft report. Finalize the Cost Allocation Plan Upon review and approval of the draft cost plan by central service departments and the Finance Department, the project team will finalize the Cost Allocation Plan and report. The final deliverables associated with the Cost Allocation Plan will be: Cost allocation plan report: including all detailed allocation schedules, cost schedules, summary schedules, and narrative information regarding the central services included. Excel summary schedule:the results of the full cost allocation plan in Excel format for ease of calculations, incorporation into City documents, and review by staff. This type of final work product ensures that information is available in a variety of formats for City staff to use. The detailed report serves as backup documentation; whereas the Excel results can be input into budget documents. Comprehensive User Fee Study Tasks The City of Orange would like to review all of its fees for service. As we worked with the City on its previous fee study, we will utilize that knowledge along with meeting with staff to ensure all services are captured, in compliance with legal regulations, and documented through an updated master fee schedule.. The following tasks provide an overview of the level of detail utilized to conduct the comprehensive fee study. Matrix Consulting Group r Docusign Envelope ID:4342A889-B7AE-4782-9FG8-1379412932CG2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA Task 1 Develop a Schedule of Current and Potential Fees for Service The project team will work with staff to review their current fee schedules in line-item detail, including any major modifications that have been made since the previous fee study. This meeting is critical in ensuring staff can incorporate any updates or changes to the fee study based on code, regulation, staffing, process, or technological changes. The focus of this meeting will be the following: Renaming fees: Rewording or renaming fees to identify services more clearly. Eliminating fees: Removing any outdated services or fees. Adding new fees: Capturing any new services or breaking out existing fee categories to identify all the services being provided by City staff more clearly and identify potential fees for services that the City would like to provide. Recategorization of fees: Collapsing or expanding multiple fee ranges to better capture the services provided. For example, eliminate lot ranges or acreages if those do not impact the review amount, but add categories based upon the approval level (i.e., Commission vs. Director level). It is important to note that this meeting occurs first to ensure that any significant proposed structural changes are captured prior to collecting time estimate information or developing draft fee results. However, there is the ability to make future adjustments. Deliverable Proposed Fee Structure(s) Task 2 I Conduct Time Data Gathering Workshops Having worked with the City previously, we do have access to prior time estimation data. Additionally, we understand that City staff have had the ability to update these assumptions annually since the previous fee study. Therefore, the project team will crosswalk the existing fee schedule against available information and conduct workshops to reevaluate existing time estimates and gather any new time estimates needed. Below is an example of the steps involved in permit processing and the time associated with each step. Intake Routing • Initial Review Final Review Issue Permit Permit Tech: Permit Tech: Plan Checker: lk Plan Checker: Permit Tech: 15 mins 10 mins 1 hour 30 mins 15 mins The project team will conduct multiple time estimate workshop(s) for each department / division included in the study, and the workshop results will be Excel-based workbook(s) Matrix Consulting Group 8 Docusign Envelope ID:4342A889-B7AE-4782-91-C8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA that staff can review. Staff will be provided time for any edits or comments on time estimate information. In fr. ...Jc(s) Develop Fully Burdened Hourly Rates Based on the City's staffing and budget information, the project team will calculate fully burdened hourly rates, including direct and indirect costs. The following points highlight the cost components and factors included in fully burdened rates: Direct costs: This component accounts for salary and benefits associated with each employee or position and reflects City staffing and salary reports. Indirect costs - Departmental: This component accounts for administrative and management support provided to line-level staff, as well as operational services and supplies that are used in the execution of job duties. This cost component is developed through interviews with staff and an analysis of budgets. Indirect costs - Citywide: This component accounts for citywide support such as Finance, HR, and Attorney support provided by other departments. This would be calculated based on the full cost allocation plan. Once the cost components have been documented and developed, the project team will review MOUs and talk with departmental staff to determine appropriate productive hour calculations. These reduced available hours will ensure fully burdened hourly rates account for leave accruals (holiday, vacation, and sick) and any meetings or training. Deliverable 'um Fully Burdened Hourly Rates bask 4 I Perform Total Cost Analysis The Matrix Consulting Group's costing model is built based on the City's operations, budget details, and intended uses for the results. This method is a customized approach specific to each jurisdiction for cost analysis of user fee services. It is a "bottom-up" approach, the most defensible methodology for calculating user fees. The methodology incorporates the time estimate information and fully burdened hourly rate information. The following graphic shows the cost calculation: Time Fully Full Cost Estimate Burdened Fee Rate Matrix Consulting Group Docusign Envelope IL):4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA This costing method uses time and annual activity level data to establish the cost of providing services on both a unit and an annual level. Once the time spent for a fee activity is determined for each individual or position, the team uses its fee and rate software to apply the fully burdened hourly rates calculated in the previous task. Resulting costs are presented on a unit and annual level and are compared to the existing fee schedule and revenue reports. The City will obtain detailed information regarding cost recovery surpluses and deficits on both a detailed (per unit) and global (annualized) level, as well as an understanding of cost components for each service. Deliverable Per Unit and Annual Fee Study Results Task 5 Conduct a Market Rate Survey We will work with the City to identify jurisdictions in Orange County, or elsewhere in the Southland, to conduct a comparative survey of fees. This comparative survey activity will include: Developing fee scenarios for each department included in the study to be compared to other jurisdictions. Graphing the results of the fee analysis for easy visual comparison purposes. Single Family Home-New Permit and Plan Check Fees 8,000.00 7,000.00 6,000.00 Permit Plan Check 5,000.00 4,000.00 3,000.00 2,000.00 1,000.00 III0.00 o ci a a n a E E E E ae U U U UU O Collecting contextual information such as population size, budget, staffing, last time fee study was done, and last fee schedule update. Matrix Consulting Group iii Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA As market surveys do not provide adequate or objective information about the relationship between a jurisdiction's costs and fees, these steps ensure we provide the City with the most information possible. Deliverable Comparative Graphs (included in Draft Report) Task 6 I Review/ Revise Fee Study Results Because the analysis of service fees is based on estimates and information provided by City staff, all participants must be comfortable with our methodology and the data they have provided. Once the department agrees that the analysis reflects the reasonable costs of providing services, City management can review the results. At this point, the project team will provide City staff with Recommended Fee Workbooks. The Recommended Fee Workbooks will provide departments / divisions with the fee study results in MS Excel. The following shows an example of the workbook: Current-Per Unit Results Surplus/(Deficit) Cost Recovery Fee Title Current Fee Total Cost Per Unit Lot Line Adjustment 900 1,557 657) 58% Temporary Use Permit 40 325 285) 12% Recommended Fee Change to Recommended Recommended Recommended Change to Fee Cost Fee Title Fee Fee Recommended Fee Recovery% Lot Line Adjustment 1,200 300 33% 77% Temporary Use Permit 100 60 150% 31% Recommended Fee Annual Potential Revenue at Revenue at Change in Fee Title Workload Current Fee Recommended Fee Revenue Lot Line Adjustment 4 3,600 4,800 1,200 Temporary Use Permit 60 2,400 6,000 3,600 TOTAL 6,000 10,800 4,800 As the graphic indicates, the recommended fee workbook allows the City to input information into the Recommended Fee column and see its impacts, such as the dollar increase, percentage increase, and what percentage of their current costs they will recover. Additionally, the workbook allows the City to calculate potential increases or declines in revenue because of the recommended fees. Deliverable 4 t1. yt tfiAh"4 Y` e Matrix Consulting Group 21 Uocusgn Envelope IL):4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA Task 7 Prepare a Draft User Fee Study Report Upon conclusion of the fee study, we will prepare a detailed report summarizing the results of each of the previous work tasks described above. This report will include: A concise executive summary discussing the study, methodology, results, and narrative describing the services included in the study. A section on proposed modifications to the current fee schedule, including removal or addition of new fees for service. A section on per unit and annual results for each fee is included in the analysis, as well as where workload data is available. A comparative survey section outlining key fees, their comparison to other local jurisdictions, and contextual information regarding budget and staffing. The draft report will be provided to City staff for comments. Finalize Fee Study Report Any edits or revisions to the draft user fee study report will be incorporated into the finalized fee study report. This finalized fee study report will include all elements of the draft fee study report and any additional cost recovery considerations and policy considerations for the City Council's review. Master Fee Schedule Once the final user fee study report is approved,the project team will help the City update its master fee schedule. This attachment is extremely helpful as part of the staff report provided to the Council upon adoption. Deliverabl- Task 10 I Present the Final Report to Key Stakeholders The presentation of results to City officials and/or stakeholders is critical to the success of the overall engagement. Because the product from the study is often controversial, the objective of this final step is to present a succinct summary that provides decision makers with key information. The Matrix Consulting Group will attend and present the study at up to three (3) Committee or Council meetings, including any fee adoption Matrix Consulting Group 2 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA hearings. We believe that these number of meetings is typically sufficient to ensure that there is buy-in from the stakeholders. Timeline The City has indicated that this project will occur from September — December 31, 2024. With that in mind, we propose the following four-month schedule, shown on a task-by- task basis. Tasks 1 2 3 4 4+ Project Wide Tasks Data Collection Study Objectives/Project Schedule Excel-Based Models/Training Cost Allocation Plan Tasks Interview Staff/Gather Metrics Review Draft Metrics Draft Report Prepare Final Report User Fee Study Tasks Current& Potential Fees Data Workshops Fully Burdened Hourly Rates Total Cost Analysis Comparative Survey Review/Revise Results Draft Fee Study Report Prepare Final Report Update Master Fee Schedule Presentation The above timeline is for completing the analysis, development of implementation options. However, this timeline does result in fee implementation no earlier than March 2025, due to the 60 day waiting period for development-related fees. If the City is interested in implementation by January 1, 2025, that would require completion of the project by October 2024, which would not be feasible, given a start date of September 2024. Presentations and excel-based models and trainings, would be available after project completion. Matrix Consulting Group 23 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA I Fees The Matrix Consulting Group proposes to perform the tasks and services associated with the development of a Full Cost Allocation Plan and User Fee Study for a fixed-price fee of 58,500. The following table shows our proposed cost by estimated hours per task and position. Principal- Project Analysts Total in-Charge Mgr. 3) Cost Project-wide Tasks Data Collection 0 2 4 1,100 Study Objectives/Project Schedule 2 2 2 1,400 Excel-Models/Training 2 4 6 2,500 Subtotal Project-Wide Tasks 4 8 12 5,000 Cost Allocation Plan Tasks Interview Staff/Gather Metrics 0 4 6 1,900 Review Draft Metrics 0 6 10 3,000 Draft Report 2 4 26 5,500 Prepare Final Report 2 4 10 3,100 Subtotal CAP Tasks 4 18 52 13,500 Comprehensive User Fee Tasks Current&Potential Fees 0 4 8 2,200 Data Workshops 0 6 14 3,600 Fully Burdened Hourly Rates 0 6 20 4,500 Total Cost Analysis 0 10 26 6,400 Comparative Survey 0 4 24 4,600 Review/Revise Results 0 8 16 4,400 Draft Fee Study Report 0 10 20 5,500 Prepare Final Report 2 6 12 3,900 Develop Master Fee Schedule 0 2 8 1,700 Presentation 4 8 0 3,200 Subtotal Comprehensive Fee Study Tasks 6 64 148 40,000 Total Hours 14 90 212 Hourly Rate 300 250 150 Total Professional Fees 4,200 $22,500 $31,800 58,500 Total Project Cost 58,500 This price is a fixed, not-to-exceed price contract, inclusive of all travel and any other expenses. Our typical practice is to bill for hours worked monthly. If any additional services are required,they will be billed at the hourly rates noted. The Matrix Consulting Group is committed to helping our clients develop accurate and defensible cost-of-service methodologies and ensure that they can implement the results Matrix Consulting Group 24 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA of these studies appropriately. Our project team will work with City staff to facilitate an understanding of the results and how to incorporate those results into budget and policy documents, informational handouts, and other City materials. Our client support continues after a final report has been issued. We understand that questions can arise well after project completion and are committed to working with our clients to answer any questions about methodologies and applications of results. This support is provided to our clients at no extra cost. Matrix Consulting Group 25 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA J Related Experience and References This section contains information about our experience providing services requested by the City or Orange as well as five project references. Cost Allocation Plan Experience Our firm has extensive experience developing comprehensive cost allocation plans, as well as indirect cost rate proposals for various municipal organizations across the United States. Regardless of jurisdiction size, our goal is to document and define the services being provided, and accurately allocate costs to all beneficiaries. The following points highlight our experience with developing cost allocation processes and metrics: Administrative Functions: Our firm has extensive experience in evaluating processes and functions associated with City Clerk, Finance, Human Resources, and Purchasing. From basic tasks and responsibilities to process improvement and oversight controls, our project teams can: Identify core service functions, such as payroll, employee benefits, budget preparation, agenda, and commission support. Review current data metrics, and work with staff to ensure resulting allocations are appropriate, fair, and equitable. Recognize services that are not in direct support of departments, including business licenses and elections, and ensure they are accurately identified, but not further allocated. Our project teams understand the core services associated with administrative functions, as well as the time associated with process completion, and are adept at helping staff determine daily, weekly, monthly, or annual time spent on a task. These assumptions form the core basis of a cost allocation plan, and should be defensible not only through documentation, but also by City staff. Governmental Functions: The Matrix Consulting Group has worked with and been a part of managerial studies relating to City Manager and Legal services. Additionally, we have extensive experience working with, and presenting to various boards, councils, and subcommittees. Our understanding of the various types of services provided allow our project teams to assess what services are best for allocation, including: Categorizing services and support that benefit the City as an organization, such as contract negotiation, and approval of internal policies. Matrix Consulting Group 26 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-6 794 1 2932GC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA Identifying services that benefit the City economically, such as lobbying, and economic development, which should not be allocated. Our team understands how these costs can and should be treated in an OMB compliant plan, including making staff aware of common practices, as well as aggressive allocation options. Internal Services: The Matrix Consulting Group has significant experience evaluating services and functions associated with facilities maintenance, fleet services, and information technology. While these services can be part of the general fund or internal services, their allocation is important when trying to understand the indirect costs associated with any Fund, Department, or Program. Our project teams work with these departments to: Review existing allocation processes and metrics to ensure compliance with state and federal regulations. Determine if newer metrics, or metric alterations could provide more accurate allocations. Indirect Cost Rate Proposals: Our firm's experience with indirect cost rate proposals ranges from developing City-wide proposals to departmental and divisional proposals. We look at all indirect costs related to the service and program area, determine if it is allowable and then set up the indirect cost rate calculation. Based upon the jurisdiction's rate methodology we are versed in provisional, fixed final, and fixed carry forward rates. We work with our clients to review rates, outline appropriate applications, and customize templates based upon cognizant agency guidelines. Our project team members are well versed in Office of Management and Budget (OMB) guidelines for cost allocation, Generally Accepted Accounting Principles (GAAP), and best management practices outlined by the Government Finance Officers Association (GFOA) relating to cost allocation and cost recovery. We are committed to ensuring that all cost centers being allocated comply with state and local laws, use fair and equitable allocation metrics, and are documented and defensible. Recent clients of the Matrix Consulting Group to whom our proposed project team have provided Cost Allocation Plan services are included in the following table: Matrix Consulting Group Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA Jurisdiction Full Cost OMB Indirect Rates Annual Plan Adelanto, CA X Agoura Hills, CA X Burlingame, CA X X X Calimesa,CA X X X Citrus Heights,CA X X Cupertino,CA X X Daly City,CA X Dixon,CA X X Downey,CA X X Dublin,CA X X X Elk Grove,CA X X X Fairfield,CA X X Hercules, CA X X Livermore, CA X X X Malibu, CA X Manhattan Beach,CA X X X Millbrae,CA X X Pacific Grove,CA X X Pomona,CA X X Port of Long Beach,CA X X Redwood City, CA X X Riverside, CA X X Sacramento Regional Transit,CA X X X San Mateo,CA X X X San Ramon,CA X Santa Clara,CA X X X South San Francisco, CA X X Sunnyvale, CA X X X Details about any project listed above are available upon request. User Fee Study Experience Our firm has extensive experience conducting comprehensive user fee studies for a variety of municipal organizations and departments. When conducting comprehensive user fee studies, the focus is often on Community Development (building, planning, and engineering) and Parks and Recreation services. The following points highlight our experience in these areas: Community Development: Our firm has extensive experience in evaluating development review permitting functions for Building, Planning, Engineering, and Fire Prevention. From the basic process steps for submitting, reviewing, inspecting, and approving applications and permits to development of processes, procedures, and cost recovery goals, our project teams can address topics as: Matrix Consulting Group 28 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA The best metric for assessing fees, such as building valuation, square footage, construction estimate, or number of fixtures. Appropriate deposit amounts, guidelines, and processes to ensure actual cost recovery is achieved. Setting fees at levels that both recover costs but are not cost prohibitive. Cost recovery and implementation options for support services including General Plan Updates, Technology Fees, GIS, etc. Beyond understanding processes and assessing time estimates provided, our project teams are aware of the cross-departmental support associated with application and permit services. These costs are included in the full cost calculation and can be expressed as part of the established fee or a separate fee. Parks and Recreation: The Matrix Consulting Group has worked with every type of recreation function, including traditional parks and recreation, libraries, and open space preserves. Our experience spans master and strategic planning, park condition assessments, and program staffing and cost recovery. Our project teams are well versed in the areas that most impact cost recovery, including: The best use of a tiered recovery approach, such as resident versus non- resident, or profit versus non-profit. Setting fees according to the cost recovery pyramid to ensure that premium services have a higher cost recovery. The goal in reviewing parks and recreation costs for service, is to ensure that fees and rates are set at a level that allows the City to continue to serve the community in a manner consistent with current goals and commitments. Our firm also has extensive experience in calculating cost of services for administrative functions such as Finance and City Clerk, as well as public safety services relating to Police, Fire Prevention, and EMS. All our cost of service and user fee studies are developed in compliance with California State regulations including Propositions 218 and 26, as well as government codes 66014 and 66016 which stipulate that user fees charged by local agencies "...may not exceed the estimated reasonable cost of providing the service for which the fee is charged". The following table includes a sampling of California clients for whom we have conducted user fee studies, including the types of departments and services reviewed: Matrix Consulting Group Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA Planning Building Engineering Fire Admin Utility Police Recreation Jurisdiction Fees Fees Fees Fees Fees Fees Fees Fees Adelanto, CA X X X X X Agoura Hills, CA X X X X X Burlingame, CA X X X X X X X X Calimesa, CA X X X X X Capitola, CA X X X X Citrus Heights,CA X X X X X X Cupertino,CA X X X X Dixon,CA X X X X X X Downey,CA X X X X X X X X Dublin, CA X X X X X X X Elk Grove, CA X X X Glendale,CA X X X X X X X X Livermore, CA X X X X Los Altos Hills,CA X X X X Malibu, CA X X X X X Manhattan Beach, CA X X X X X X X X Menifee, CA X X X X X X X Millbrae, CA X X X X X X Mill Valley, CA X X X X X X Montebello, CA X X X X X X X X Orange,CA X X X X X X X X Pacific Grove, CA X X X X X X Redwood City,CA X X X X X X X X San Mateo,CA X X X San Ramon,CA X X X X X X Santa Clara,CA X X X X X X X X South Pasadena,CA X X X X X X X So.San Francisco,CA X X X X X X X X Stockton, CA X X X X Vacaville,CA X X X X X X X Winters,CA X X X X X X X Details about any project listed above are available upon request. References The following table references five clients for whom similar services were provided and managed by our project executive and project manager. Client Contact Project Type Agoura Hills,CA Ramiro S. Adeva Ill Comprehensive Fee Study Assistant City Manager Overhead Cost Analysis 818) 597-7353 radeva@agourahillscity.orq Matrix Consulting Group 30 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932GC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA Client Contact Project Type Burlingame,CA Helen Yu-Scott Cost Allocation Plan Finance Director Comprehensive Fee Study 650) 558-7222 hyscott@burlingame.orq Calimesa,CA Celeste Reid,CPA Cost Allocation Plan Finance Director Comprehensive Fee Study 909) 795-9801 creid@cityofcalimesa.net Malibu,CA Renee Neerman Cost Allocation Plan Finance Manager Comprehensive Fee Study 310)456-2489 ext. 222 rneerman@malibucity.orq San Ramon,CA J. Kelly Session Comprehensive Fee Study Administrative Services Director Overhead Cost Analysis 925) 973-2576 ksessions@sanramon.gov Additional details or references are available upon request. Matrix Consulting Group 31 Uocusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA K Sample Report The link below provides access to final Fee Study and Cost Allocation Plan reports our proposed project team recently completed for the City of San Ramon, CA. https://drive.google.com/drive/folders/1 fola6WKWdTHpl V-NSjYyMDCa5f0S1 kl?usp=sharing Matrix Consulting Group 32 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA L Resources Provided by the City We envision a close working relationship with the City throughout the project. We place a strong emphasis on transparency and robust communication. To ensure these effective outcomes we will set up bi-weekly (every 2 weeks) updates with the City. These updates can be in the form of a brief meeting or a summary status email which outlines the work completed to date, the current tasks being performed, and any future tasks. These communications allow us to keep the City informed of any hurdles in completing the project, as well as allow staff to provide input on any key findings from the fee study and cost allocation analysis. Task-Specific Estimated City Support The table below shows the estimated level of City support needed for tasks described in Section H: Work Plan. Tasks Estimated City Support Project Wide Tasks Data Collection 4-8 hours for staff to collect and distribute information Study Objectives/Project Schedule 1 hour for all involved City departments Excel-Based Models/Training 1-2 hours of virtual training Cost Allocation Plan Tasks Interview Staff/Gather Metrics 1 hour per City support department Review Draft Metrics 1 hour per City support department Draft Report 1 hour for Finance department Prepare Final Report None User Fee Study Tasks Current&Potential Fees 1 hour for all involved City departments Data Workshops 1-4 hours for all involved City departments Fully Burdened Hourly Rates 1 hour for Finance department Total Cost Analysis 1-3 hours for all involved City departments Comparative Survey None Review/Revise Results 1-2 hours per department Draft Fee Study Report 1-2 hours per department to review report Prepare Final Report None Update Master Fee Schedule None Presentation 1-2 hours for presentation review This approach ensures that our joint efforts consistently yield effective results and outcomes that will benefit the City. Matrix Consulting Group 33 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange,CA M Certificate of Non-Collusion A signed Certificate of Non-Collusion is included on the following page. Matrix Consulting Group 34 Docusign Envelope ID:4342A889-137AE-4782-9FC8-B79412932CC2 SECTION VII: ATTACHMENTS ATTACHMENT A: CERTIFICATE OF NON-COLLUSION Note: This form must be completed and signed by an authorized representative of each bidder.] Be it known that Richard Brady name), being first duly sworn, deposes and testifies that he/she is the President relationship with bidding firm), of Matrix Consulting Group, Ltd. legal name of bidding firm), making the foregoing bid: 1. The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. 2. The bid is genuine and not collusive or sham. The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. 3. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. 4. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. 5. All statements contained in the bid are true. 6. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose. 7. Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder. 8. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on July 17, 2024 date], at San Mateo city], California state]. That all the abovestatements are true to the best of my knowledge. 2/..../tai Ge tha i Signed Page 30 of 40 Docusign Envelope ID:4342A889-137AE-4782-9FC8-679412932CC2 Proposal to Develop a Cost Allocation Plan and User Fee Study Orange, CA Appendices We have reviewed the City's Sample of Standard Professional Services Agreement Attachment B) in its entirety. We are willing and able to comply with all terms and conditions except the insurance requirement regarding coverage for owned automobiles. Our firm does not own automobiles, as such we cannot provide coverage for this. Our insurance otherwise complies with contract requirements, and we would request an exception on this minor issue. This proposed exception will not impact cost, scheduling or other areas of our proposal. In the following pages are provided the first two-pages from the two issued addenda for this project. Matrix Consulting Group 36 Docusign Envelope ID:4342A889-87AE-4782-9FC8-B79412932CC2 OFOi O e 71. vCbUIVTYCP Finance Department - Purchasing Division Addendum No. 1 Date: July 18, 2024 To:All Bidders Subject: RFP 24-25.01 — Cost Allocation Plan and User Fee Study A. The following are answers to questions submitted for the project referenced above. 1. Question: "Is this a specific document that you can provide or are we to include our own cost spreadsheet under that name?" Answer:Please provide your own sheet. 2. Question: "Item F.1.b on page 11 of the RFP states that we must list exceptions in a separate attachment. Can we add the attachment as an appendix to our main proposal, or would you like it as a completely separate document? Answer:Yes, please append the clearly labeled list of exceptions to the main proposal. 3. Question: "If a separate document,would you like the same number of copies (4; 3 bound, 1 unbound) as the main proposal?" Answer:Yes. 4. Question: "Can you make available the comprehensive user fee study performed in 2018?" Answer:Attachment A —A comprehensive user fee study report was not adopted by the City Council. However, attached is the 2018 Draft Report on the Citywide Cost of Services (User Fee) Study presented to the City Council. B. This is to notify of the clarification to the deadline and submission instructions. 1. The original RFP 24-25.01 stated the proposal due date of July 22, 2024, by 5:00 pm P.T. the new deadline is July 25, 2024, by 5:00 pm P.T.. 2. We will be accepting both bound and digital copies of the proposals, giving you the option to submit in either format. Page 1 of 3 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Careful note of the Addendum by all parties of interest is necessary in order that the proper allowances are made in strict accordance with the Addendum, relevant to other official communications if any, and the related specifications. All trades associated shall be fully advised by their Contractor in the performance of all related work, which will be required for the successful implementation of these changes. Please note all previously posted questions and answers have been included in this addendum. Bidder shall signify the receipt of this addendum with a signature on page 2 of this Addendum No. 1. Please contact Wanda Alvarez for any questions regarding this addendum at walvarez(a cityoforange.orq or call (714) 744-2266. Wanda Alvarez Purchasing Officer Richard Brady, President , authorized representative for company Matrix Consulting Group,Ltd. , hereby acknowledge the receipt of RFP 24-25.01— Cost Allocation Plan and User Fee Study- Addendum No. 1 documents from your agency, City of Orange, dated July 18, 2024. Matrix Consulting Group, Ltd. Company Name July 22, 2024 Signature of Authori d Company Representative Date 650-858-0507 Phone number rbrady@matrixcg.net Email address We appreciate your cooperation and promptness regarding the documentation procedure. Page 2 of 3 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 pF 0&{ G~: . A G'co o. a i f1NT`[ Finance Department - Purchasing Division Addendum No. 2 Date: July 22, 2024 To:All Bidders Subject: RFP 24-25.01 — Cost Allocation Plan and User Fee Study This is to notify you of clarification to Addendum No. 1 for Proposal packet submittal. Addendum No. 1 states, "We will be accepting both bound and digital copies of the proposals, giving you the option to submit in either format." Digital copies of the Proposal packet shall be submitted by email to Wanda Alvarez, Purchasing Officer at walvarezcitvoforange.orq. Careful note of the Addendum by all parties of interest is necessary in order that the proper allowances are made in strict accordance with the Addendum, relevant to other official communications if any, and the related specifications. All trades associated shall be fully advised by their Contractor in the performance of all related work, which will be required for the successful implementation of these changes. Please note all previously posted questions and answers have been included in this addendum. Bidder shall signify the receipt of this addendum with a signature on page 2 of this Addendum No. 2. Please contact Wanda Alvarez for any questions regarding this addendum at walvarez(a cityoforange.orq or call (714) 744-2266. Wanda Alvarez Purchasing Officer Page 1 of 2 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 I, Richard Brady, authorized representative for company Matrix Consulting Group, hereby acknowledge the receipt of RFP 24-25.01— Cost Allocation Plan and User Fee Study- Addendum No. 2 documents from your agency, City of Orange, dated July 22, 2024. Matrix Consulting Group Company Name e/. ./4244Z 924 7-22-24 Signature of Authored Company Representative Date 650-858-0507 Phone number rbrady@matrixcg.net Email address We appreciate your cooperation and promptness regarding the documentation procedure. Page 2 of 2 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 MATRICON2 ACORDT, CERTIFICATE OF LIABILITY INSURANCE DATD/YYYY) 7/26/206/2024 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy, certain policies may require an endorsement.A statement on this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTNAME: Christine Christine Torrance USI Insurance Services, LLC r2i/2 Ne ):602 666-4830 FAXAic,No 610 537-2283 2375 E. Camelback Road, Suite 250 E MAIIE88: christine.torrance@usi.com Phoenix, AZ 85016 INSURER(S)AFFORDING COVERAGE NAIC C 877 468-6516 INSURER A:Sentinel insurance Company Ltd. 11000 INSURED INSURER B:Hartford-WC Multiple Issuing Cos 00914 Matrix Consulting Group, Ltd. INSURER C:Swiss Re Corp Solutions America Ins Co 29874 1650 S. Amphlett Blvd.,Ste 213 INSURER D:Twin City Fire Insurance Company 29459 San Mateo,CA 94402-1234 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUER POLICY EFF POLICY EXP LIMITS LTR INSR VIVO POLICY NUMBER MDOIYYYY) (MMIDDIYYYY) A X COMMERCIAL GENERAL LIABILITY X X 59SBAR00849 08/08/2024 08/08/2025 EACH OCCURRENCE 2,000,000 CLAIMS-MADE X OCCUR PREMISES(EaEoNorT.uEr ence) $1,000,000 MED EXP(Any one person) $10,000 PERSONAL&ADV INJURY S2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $4,000,000 PRO- POLICY X JECT LOC PRODUCTS-COMP/OP AGG S4,000,000 OTHER: S A AUTOMOBILE LIABILITY X X 59SBAR00849 08/08/2024 08/08/2025 (Ea arB.cllNdeD SINGLE LIMIT $2,000,000 ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY(Per accident) $ X AUTOS ONLY X NON-OWNED PROPERTY DAMAGE AUTOS ONLY Per accident) S A X UMBRELLA LIAR X OCCUR 59SBAR00849 08/08/2024 08/08/2025 EACH OCCURRENCE 3,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE 3,000,000 DED X RETENTION$10,000 B WORKERS COMPENSATION X 59WECAB6SO4 08/08/2024 08/08/2025 X STATUTE OTH- ERANDEMPLOYERS'LIABILITY ANY OFFICER/MEMBER PROPRIETOR/PARTNER/EXECUTIVEECUTIVE Y/YN N/A E.L.EACH ACCIDENT 1,000,000 Mandatory In NH)E.L.DI RARE-EA EMPLOYEE $1,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT S1,000,000 C Cyber Liability C4LTK141409CYBER20 10/04/2023 10/04/2024 $2,000,000/$5,000 ret D Professional Liab 59PG029737224 08/08/2024 08/08/2025 $2,000,000/$3,000,000 10,000 ded/ea claim DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES(ACORD 101,Additional Remarks Schedule,may be attached It more space is required) General Liability, including completed operations,and Hired& Non-Owned Auto Liability include an automatic Additional Insured endorsement that provides Additional Insured status to the Certificate Holder, only when there is a written contract or written agreement between the named insured and the certificate holder and with regard to work performed by or on behalf of the named insured.General Liability, Hired & Non-Owned Auto Liability and Workers Compensation provide a blanket Waiver of Subrogation in favor of the See Attached Descriptions) CERTIFICATE HOLDER CANCELLATION City of O SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE y Orangeg THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 300 E. Chapman Avenue ACCORDANCE WITH THE POLICY PROVISIONS. Orange, CA 92866-1591 AUTHORIZED REPRESENTATIVE T588-2015 ACORD CORPORATION.All rights reserved. ACORD 25(2016/03) 1 of 2 The ACORD name and logo are registered marks of ACORD S45680452/M45667941 VAPZP IDocusign Envelope IU:4342A889-B7AE-4782-9FC8-B79412932CC2 DESCRIPTIONS (Continued from Page 1) same, when required by written contract.General Liability and Hired &Non-Owned Auto Liability contain a special endorsement with "Primary and Non-Contributory"wording,when required by written contract. Umbrella follows form to Business (General) Liability, Hired & Non-Owned Auto Liability and Workers Compensation.This form is subject to any/all respective policy provisions. Additional Insured: City, its officers, officials, agents, and employees SAGITTA 25.3(2016/03) 2 of 2 S45680452/M45667941 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 IVIQui IA IsUI MUM. vI U UIl, LLU BUSINESS LIABILITY COVERAGE FORM Policy Number: 59SBAR00849 2. Applicable To Medical Expenses Coverage e. A trust, you are an insured. Your trustees We will not pay expenses for"bodily injury": are also insureds, but only with respect to their duties as trustees. a. Any Insured To any insured,except"volunteer workers". 2. Each of the following is also an insured: b. Hired Person a. Employees And Volunteer Workers To a person hired to do work for or on behalf Your "volunteer workers" only while of any insured or a tenant of any insured. performing duties related to the conduct of your business, or your "employees", other c. Injury On Normally Occupied Premises than either your "executive officers" (if you To a person injured on that part of are an organization other than a premises you own or rent that the person partnership, joint venture or limited liability normally occupies.company) or your managers (if you are a d. Workers' Compensation And Similar limited liability company), but only for acts Laws within the scope of their employment by To a person, whether or not an you or while performing duties related to employee" of any insured, if benefits for the conduct of your business. the "bodily injury" are payable or must be However, none of these "employees" or provided under a workers' compensation volunteer workers" are insureds for: or disability benefits law or a similar law. 1) "Bodily injury" or "personal and e. Athletics Activities advertising injury": To a person injured while practicing, a) To you, to your partners or instructing or participating in any physical members (if you are a partnership exercises or games, sports or athletic or joint venture), to your members contests. if you are a limited liability f. Products-Completed Operations Hazard company), or to a co-"employee" while in the course of his or her Included with the "products-completed employment or performing duties operations hazard". related to the conduct of your g. Business Liability Exclusions business, or to your other Excluded under Business Liability Coverage. volunteer workers" while performing duties related to the C. WHO IS AN INSURED conduct of your business; 1. If you are designated in the Declarations as: b) To the spouse, child, parent, a. An individual, you and your spouse are brother or sister of that co- insureds, but only with respect to the employee" or that "volunteer conduct of a business of which you are the worker" as a consequence of sole owner. Paragraph (1)(a)above; b. A partnership or joint venture, you are an c) For which there is any obligation insured. Your members, your partners, and to share damages with or repay their spouses are also insureds, but only with someone else who must pay respect to the conduct of your business. damages because of the injury c. A limited liability company, you are an described in Paragraphs (1)(a) or insured. Your members are also insureds, b) above; or but only with respect to the conduct of your d) Arising out of his or her providing business. Your managers are insureds, but or failing to provide professional only with respect to their duties as your health care services. managers.If you are not in the business of d. An organization other than a partnership, providing professional health care joint venture or limited liability company, you services, Paragraph (d) does not apply are an insured. Your"executive officers"and to any nurse, emergency medical directors are insureds, but only with respect technician or paramedic employed by to their duties as your officers or directors. you to provide such services. Your stockholders are also insureds, but only 2) "Property damage"to property: with respect to their liability as stockholders. a) Owned, occupied or used by, Page 10 of 24 Form SS 00 08 04 05 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM b) Rented to, in the care, custody or b. Coverage under this provision does not control of, or over which physical apply to: control is being exercised for any 1) "Bodily injury" or "property damage" purpose by you, any of your that occurred; or employees", "volunteer workers", any partner or member (if you are 2) "Personal and advertising injury" a partnership or joint venture), or arising out of an offense committed any member (if you are a limited before you acquired or formed the liability company). organization. b. Real Estate Manager 4. Operator Of Mobile Equipment Any person (other than your"employee" or With respect to "mobile equipment" registered in volunteer worker"), or any organization your name under any motor vehicle registration while acting as your real estate manager. law, any person is an insured while driving such c. Temporary Custodians Of Your equipment along a public highway with your Property permission. Any other person or organization responsible for the conduct of such person is Any person or organization having proper also an insured, but only with respect to liability temporary custody of your property if you arising out of the operation of the equipment, and die, but only: only if no other insurance of any kind is available 1) With respect to liability arising out of the to that person or organization for this liability. maintenance or use of that property;and However, no person or organization is an insured 2) Until your legal representative has with respect to: been appointed, a. "Bodily injury" to a co-"employee" of the d. Legal Representative If You Die person driving the equipment; or Your legal representative if you die, but b. "Property damage" to property owned by, only with respect to duties as such. That rented to, in the charge of or occupied by representative will have all your rights and you or the employer of any person who is duties under this insurance. an insured under this provision. e. Unnamed Subsidiary 5. Operator of Nonowned Watercraft Any subsidiary and subsidiary thereof, of With respect to watercraft you do not own that yours which is a legally incorporated entity is less than 51 feet long and is not being used of which you own a financial interest of to carry persons for a charge, any person is an more than 50% of the voting stock on the insured while operating such watercraft with effective date of this Coverage Part. your permission. Any other person or The insurance afforded herein for any organization responsible for the conduct of subsidiary not shown in the Declarations such person is also an insured, but only with respect to liability arising out of the operation as a named insured does not apply to injury or damage with respect to which an of the watercraft, and only if no other insured under this insurance is also an insurance of any kind is available to that person or organization for this liability. insured under another policy or would be an insured under such policy but for its However, no person or organization is an termination or upon the exhaustion of its insured with respect to: limits of insurance. a. "Bodily injury" to a co-"employee" of the 3. Newly Acquired Or Formed Organization person operating the watercraft; or Any organization you newly acquire or form, b. "Property damage" to property owned by, other than a partnership, joint venture or rented to, in the charge of or occupied by limited liability company, and over which you you or the employer of any person who is maintain financial interest of more than 50% of an insured under this provision. the voting stock, will qualify as a Named 6. Additional Insureds When Required By Insured if there is no other similar insurance Written Contract, Written Agreement Or available to that organization. However: Permit a. Coverage under this provision is afforded The person(s) or organization(s) identified in only until the 180th day after you acquire Paragraphs a. through f. below are additional or form the organization or the end of the insureds when you have agreed, in a written policy period, whichever is earlier; and Form SS 00 08 04 05 Page 11 of 24 Docusign Envelope ID:4342A889-B7AE-4782-9FG8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM contract, written agreement or because of a e) Any failure to make such permit issued by a state or political inspections, adjustments, tests or subdivision, that such person or organization servicing as the vendor has be added as an additional insured on your agreed to make or normally policy, provided the injury or damage occurs undertakes to make in the usual subsequent to the execution of the contract or course of business, in connection agreement, or the issuance of the permit. with the distribution or sale of the A person or organization is an additional products; insured under this provision only for that f) Demonstration, installation, period of time required by the contract, servicing or repair operations, agreement or permit. except such operations performed at the vendor's premises in However, no such person or organization is an connection with the sale of the additional insured under this provision if such product; person or organization is included as an additional insured by an endorsement issued g) Products which, after distribution by us and made a part of this Coverage Part, or sale by you, have been labeled including all persons or organizations added or relabeled or used as a as additional insureds under the specific container, part or ingredient of any additional insured coverage grants in Section other thing or substance by or for F.—Optional Additional Insured Coverages. the vendor; or a. Vendors h) "Bodily injury" or "property damage" arising out of the sole Any person(s) or organization(s) (referred to negligence of the vendor for its below as vendor), but only with respect to own acts or omissions or those of bodily injury" or "property damage" arising its employees or anyone else out of "your products" which are distributed acting on its behalf. However, this or sold in the regular course of the vendor's exclusion does not apply to: business and only if this Coverage Part provides coverage for "bodily injury" or I) The exceptions contained in property damage" included within the Subparagraphs(d) or(f); or products-completed operations hazard". ii) Such inspections, adjustments, 1) The insurance afforded to the vendor tests or servicing as the vendor is subject to the following additional has agreed to make or normally exclusions: undertakes to make in the usual course of business, in This insurance does not apply to:connection with the distribution a) "Bodily injury" or "property or sale of the products. damage" for which the vendor is 2) This insurance does not apply to any obligated to pay damages by insured person or organization from reason of the assumption of whom you have acquired such products, liability in a contract or agreement. or any ingredient, part or container, This exclusion does not apply to entering into, accompanying or liability for damages that the containing such products.vendor would have in the absence of the contract or agreement; b. Lessors Of Equipment b) Any express warranty 1) Any person or organization from unauthorized by you;whom you lease equipment; but only with respect to their liability for "bodily c) Any physical or chemical change injury", "property damage" or in the product made intentionally personal and advertising injury" by the vendor;caused, in whole or in part, by your d) Repackaging, except when maintenance, operation or use of unpacked solely for the purpose of equipment leased to you by such inspection, demonstration, testing, person or organization. or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; Page 12 of 24 Form SS 00 08 04 05 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM 2) With respect to the insurance afforded e. Permits Issued By State Or Political to these additional insureds, this Subdivisions insurance does not apply to any 1) Any state or political subdivision, but occurrence" which takes place after only with respect to operations you cease to lease that equipment. performed by you or on your behalf for c. Lessors Of Land Or Premises which the state or political subdivision 1) Any person or organization from has issued a permit. whom you lease land or premises, but 2) With respect to the insurance afforded only with respect to liability arising out to these additional insureds, this of the ownership, maintenance or use insurance does not apply to: of that part of the land or premises a) "Bodily injury", "property damage" leased to you. or "personal and advertising 2) With respect to the insurance afforded injury" arising out of operations to these additional insureds, this performed for the state or insurance does not apply to: municipality; or a) Any "occurrence" which takes b) "Bodily injury" or "property damage" place after you cease to lease that included within the "products- land or be a tenant in that completed operations hazard". premises; or f. Any Other Party b) Structural alterations, new 1) Any other person or organization who construction or demolition is not an insured under Paragraphs a. operations performed by or on through e. above, but only with behalf of such person or respect to liability for "bodily injury", organization. property damage" or "personal and d. Architects, Engineers Or Surveyors advertising injury" caused, in whole or 1) Any architect, engineer, or surveyor, but in part, by your acts or omissions or only with respect to liability for "bodily the acts or omissions of those acting injury", "property damage" or "personal on your behalf: and advertising injury" caused, in whole a) In the performance of your or in part, by your acts or omissions or ongoing operations; the acts or omissions of those acting on b) In connection with your premises your behalf: owned by or rented to you; or a) In connection with your premises; c) In connection with "your work" and or included within the "products- b) In the performance of your completed operations hazard", but ongoing operations performed by only if you or on your behalf. i) The written contract or written 2) With respect to the insurance afforded agreement requires you to to these additional insureds, the provide such coverage to following additional exclusion applies: such additional insured; and This insurance does not apply to ii) This Coverage Part provides bodily injury", "property damage" or coverage for "bodily injury" or personal and advertising injury" property damage" included arising out of the rendering of or the within the "products- failure to render any professional completed operations hazard". services by or for you, including:2) With respect to the insurance afforded a) The preparing, approving, or to these additional insureds, this failure to prepare or approve, insurance does not apply to: maps, shop drawings, opinions, Bodily injury", "property damage" or reports, surveys, field orders, personal and advertising injury" change orders, designs or arising out of the rendering of, or the drawings and specifications; or failure to render, any professional b) Supervisory, inspection, architectural, engineering or surveying architectural or engineering services, including: activities. Form SS 00 08 04 05 Page 13 of 24 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM a) The preparing, approving, or This General Aggregate limit does not failure to prepare or approve, apply to "property damage" to premises maps, shop drawings, opinions, while rented to you or temporarily reports, surveys, field orders, occupied by you with permission of the change orders, designs or owner, arising out of fire, lightning or drawings and specifications; or explosion. b) Supervisory, inspection, 3. Each Occurrence Limit architectural or engineering Subject to 2.a. or 2.b above, whichever activities. applies, the most we will pay for the sum of all The limits of insurance that apply to additional damages because of all "bodily injury", insureds are described in Section D. — Limits property damage" and medical expenses Of Insurance. arising out of any one "occurrence" is the How this insurance applies when other Liability and Medical Expenses Limit shown in insurance is available to an additional insured the Declarations. is described in the Other Insurance Condition The most we will pay for all medical expenses in Section E. — Liability And Medical Expenses because of "bodily injury" sustained by any General Conditions. one person is the Medical Expenses Limit No person or organization is an insured with shown in the Declarations. respect to the conduct of any current or past 4. Personal And Advertising Injury Limit partnership, joint venture or limited liability Subject to 2.b. above, the most we will pay for company that is not shown as a Named Insured in the sum of all damages because of all the Declarations. personal and advertising injury" sustained by D. LIABILITY AND MEDICAL EXPENSES any one person or organization is the Personal LIMITS OF INSURANCE and Advertising Injury Limit shown in the Declarations. 1. The Most We Will Pay 5. Damage To Premises Rented To You Limit The Limits of Insurance shown in the Declarations and the rules below fix the most The Damage To Premises Rented To You we will pay regardless of the number of: Limit is the most we will pay under Business Liability Coverage for damages because of a. Insureds; property damage" to any one premises, while b. Claims made or"suits" brought; or rented to you, or in the case of damage by fire, c. Persons or organizations making claims or lightning or explosion, while rented to you or bringing "suits". temporarily occupied by you with permission of 2. Aggregate Limits the owner. The most we will pay for:In the case of damage by fire, lightning or explosion, the Damage to Premises Rented To a. Damages because of "bodily injury" and You Limit applies to all damage proximately property damage" included in the caused by the same event, whether such products-completed operations hazard" is damage results from fire, lightning or explosion the Products-Completed Operations or any combination of these. Aggregate Limit shown in the Declarations. 6. How Limits Apply To Additional Insureds b. Damages because of all other "bodily The most we will pay on behalf of a person or injury", "property damage" or "personal organization who is an additional insured and advertising injury", including medical under this Coverage Part is the lesser of: expenses, is the General Aggregate Limit a. The limits of insurance specified in a shown in the Declarations. written contract, written agreement or This General Aggregate Limit applies permit issued by a state or political separately to each of your "locations" subdivision; or owned by or rented to you. b. The Limits of Insurance shown in the Location" means premises involving the Declarations. same or connecting lots, or premises Such amount shall be a part of and not in whose connection is interrupted only by a addition to the Limits of Insurance shown in street, roadway or right-of-way of a the Declarations and described in this Section. railroad. Page 14 of 24 Form SS 00 08 04 05 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-1379412932CC2 BUSINESS LIABILITY COVERAGE FORM If more than one limit of insurance under this 1) Immediately send us copies of any policy and any endorsements attached thereto demands, notices, summonses or applies to any claim or "suit, the most we will pay legal papers received in connection under this policy and the endorsements is the with the claim or"suit"; single highest limit of liability of all coverages 2) Authorize us to obtain records and applicable to such claim or "suit". However, this other information; paragraph does not apply to the Medical Expenses 3) Cooperate with us in the investigation, limit set forth in Paragraph 3.above. settlement of the claim or defense The Limits of Insurance of this Coverage Part apply against the"suit"; and separately to each consecutive annual period and to 4) Assist us, upon our request, in the any remaining period of less than 12 months, starting enforcement of any right against any with the beginning of the policy period shown in the person or organization that may be Declarations, unless the policy period is extended liable to the insured because of injury after issuance for an additional period of less than 12 or damage to which this insurance months. In that case, the additional period will be may also apply. deemed part of the last preceding period for purposes of determining the Limits of Insurance. d. Obligations At The Insured's Own Cost E. LIABILITY AND MEDICAL EXPENSES No insured will, except at that insured's own GENERAL CONDITIONS cost, voluntarily make a payment, assume any obligation, or incur any expense, other 1. Bankruptcy than for first aid,without our consent. Bankruptcy or insolvency of the insured or of e. Additional Insured's Other Insurance the insured's estate will not relieve us of our If we cover a claim or "suit" under this obligations under this Coverage Part. Coverage Part that may also be covered 2. Duties In The Event Of Occurrence, by other insurance available to an Offense, Claim Or Suit additional insured, such additional insured a. Notice Of Occurrence Or Offense must submit such claim or "suit" to the other insurer for defense and indemnity. You or any additional insured must see to it that we are notified as soon as However, this provision does not apply to practicable of an "occurrence" or an the extent that you have agreed in a offense which may result in a claim. To written contract, written agreement or the extent possible, notice should include: permit that this insurance is primary and non-contributory with the additional 1) How, when and where the "occurrence" insured's own insurance. or offense took place; f. Knowledge Of An Occurrence, Offense, 2) The names and addresses of any Claim Or Suit injured persons and witnesses; and Paragraphs a. and b. apply to you or to 3) The nature and location of any injury any additional insured only when such or damage arising out of the occurrence", offense, claim or "suit" is occurrence"or offense. known to: b. Notice Of Claim 1) You or any additional insured that is If a claim is made or "suit" is brought an individual; against any insured, you or any additional 2) Any partner, if you or an additional insured must: insured is a partnership; 1) Immediately record the specifics of the 3) Any manager, if you or an additional claim or "suit" and the date received; insured is a limited liability company; and 4) Any "executive officer" or insurance 2) Notify us as soon as practicable. manager, if you or an additional You or any additional insured must see to insured is a corporation; it that we receive a written notice of the 5) Any trustee, if you or an additional claim or"suit" as soon as practicable. insured is a trust; or c. Assistance And Cooperation Of The 6) Any elected or appointed official, if you Insured or an additional insured is a political You and any other involved insured must:subdivision or public entity. Form SS 00 08 04 05 Page 15 of 24 Docusign Envelope ID:4342A889-B7AE-4782-9FCB-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM This Paragraph f. applies separately to 3) We have issued this policy in reliance you and any additional insured. upon your representations. 3. Financial Responsibility Laws b. Unintentional Failure To Disclose a. When this policy is certified as proof of Hazards financial responsibility for the future under If unintentionally you should fail to disclose the provisions of any motor vehicle all hazards relating to the conduct of your financial responsibility law, the insurance business at the inception date of this provided by the policy for "bodily injury" Coverage Part, we shall not deny any liability and "property damage" liability will coverage under this Coverage Part comply with the provisions of the law to because of such failure. the extent of the coverage and limits of 7. Other Insurance insurance required by that law.If other valid and collectible insurance is b. With respect to "mobile equipment" to available for a loss we cover under this which this insurance applies, we will Coverage Part, our obligations are limited as provide any liability, uninsured motorists, follows: underinsured motorists, no-fault or other coverage required by any motor vehicle a. Primary Insurance law. We will provide the required limits for This insurance is primary except when b. those coverages. below applies. If other insurance is also 4. Legal Action Against Us primary, we will share with all that other No person or organization has a right under insurance by the method described in c. this Coverage Form: below. a. To join us as a party or otherwise bring us b. Excess Insurance into a "suit" asking for damages from an This insurance is excess over any of the insured; or other insurance, whether primary, excess, b. To sue us on this Coverage Form unless contingent or on any other basis: all of its terms have been fully complied 1) Your Work with. That is Fire, Extended Coverage, A person or organization may sue us to recover Builder's Risk, Installation Risk or on an agreed settlement or on a final judgment similar coverage for"your work"; against an insured; but we will not be liable for 2) Premises Rented To You damages that are not payable under the terms of this insurance or that are in excess of the That is fire, lightning or explosion applicable limit of insurance. An agreed insurance for premises rented to you settlement means a settlement and release of or temporarily occupied by you with liability signed by us, the insured and the permission of the owner; claimant or the claimant's legal representative. 3) Tenant Liability 5. Separation Of Insureds That is insurance purchased by you to Except with respect to the Limits of Insurance, cover your liability as a tenant for and any rights or duties specifically assigned property damage" to premises rented in this policy to the first Named Insured, this to you or temporarily occupied by you insurance applies: with permission of the owner; a. As if each Named Insured were the only 4) Aircraft,Auto Or Watercraft Named Insured; and If the loss arises out of the maintenance b. Separately to each insured against whom or use of aircraft, "autos" or watercraft to a claim is made or"suit" is brought.the extent not subject to Exclusion g. of Section A.—Coverages. 6. Representations 5) Property Damage To Borrowed a. When You Accept This Policy Equipment Or Use Of Elevators By accepting this policy, you agree:If the loss arises out of "property 1) The statements in the Declarations damage" to borrowed equipment or are accurate and complete; the use of elevators to the extent not 2) Those statements are based upon subject to Exclusion k. of Section A. — representations you made to us; and Coverages. Page 16 of 24 Form SS 00 08 04 05 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932GC2 BUSINESS LIABILITY COVERAGE FORM 6) When You Are Added As An When this insurance is excess over other Additional Insured To Other insurance, we will pay only our share of Insurance the amount of the loss, if any, that That is other insurance available to exceeds the sum of: you covering liability for damages 1) The total amount that all such other arising out of the premises or insurance would pay for the loss in the operations, or products and completed absence of this insurance; and operations, for which you have been 2) The total of all deductible and self- added as an additional insured by that insured amounts under all that other insurance; or insurance. 7) When You Add Others As An We will share the remaining loss, if any, with Additional Insured To This any other insurance that is not described in Insurance this Excess Insurance provision and was not That is other insurance available to an bought specifically to apply in excess of the additional insured. Limits of Insurance shown in the However, the following provisions Declarations of this Coverage Part. apply to other insurance available to c. Method Of Sharing any person or organization who is an If all the other insurance permits additional insured under this Coverage contribution by equal shares, we will follow Part: this method also. Under this approach, a) Primary Insurance When each insurer contributes equal amounts Required By Contract until it has paid its applicable limit of This insurance is primary if you insurance or none of the loss remains, have agreed in a written contract, whichever comes first. written agreement or permit that If any of the other insurance does not permit this insurance be primary. If other contribution by equal shares, we will insurance is also primary, we will contribute by limits. Under this method,each share with all that other insurance insurer's share is based on the ratio of its by the method described in c. applicable limit of insurance to the total below. applicable limits of insurance of all insurers. b) Primary And Non-Contributory 8. Transfer Of Rights Of Recovery Against To Other Insurance When Others To Us Required By Contract a. Transfer Of Rights Of Recovery If you have agreed in a written If the insured has rights to recover all or contract, written agreement or part of any payment, including permit that this insurance is Supplementary Payments, we have made primary and non-contributory with under this Coverage Part, those rights are the additional insured's own transferred to us. The insured must do insurance, this insurance is nothing after loss to impair them. At our primary and we will not seek request, the insured will bring "suit" or contribution from that other transfer those rights to us and help us insurance.enforce them. This condition does not Paragraphs(a) and (b) do not apply to apply to Medical Expenses Coverage. other insurance to which the additional b. Waiver Of Rights Of Recovery (Waiver insured has been added as an Of Subrogation) additional insured. If the insured has waived any rights of When this insurance is excess, we will recovery against any person or have no duty under this Coverage Part to organization for all or part of any payment, defend the insured against any"suit" if any including Supplementary Payments, we other insurer has a duty to defend the have made under this Coverage Part, we insured against that "suit". If no other also waive that right, provided the insured insurer defends, we will undertake to do waived their rights of recovery against so, but we will be entitled to the insured's such person or organization in a contract, rights against all those other insurers.agreement or permit that was executed prior to the injury or damage. Form SS 00 08 04 05 Page 17 of 24 Docusign Envelope ID:4342A889-B7AE-4782-9FG8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM F. OPTIONAL ADDITIONAL INSURED 3. Additional Insured -Grantor Of Franchise COVERAGES WHO IS AN INSURED under Section C. is If listed or shown as applicable in the Declarations, amended to include as an additional insured one or more of the following Optional Additional the person(s) or organization(s) shown in the Insured Coverages also apply. When any of these Declarations as an Additional Insured - Optional Additional Insured Coverages apply, Grantor Of Franchise, but only with respect to Paragraph 6. (Additional Insureds When Required their liability as grantor of franchise to you. by Written Contract, Written Agreement or Permit) 4. Additional Insured - Lessor Of Leased of Section C., Who Is An Insured, does not apply Equipment to the person or organization shown in the a. WHO IS AN INSURED under Section C. is Declarations. These coverages are subject to the amended to include as an additional terms and conditions applicable to Business insured the person(s) or organization(s) Liability Coverage in this policy, except as shown in the Declarations as an Additional provided below: Insured — Lessor of Leased Equipment, 1. Additional Insured - Designated Person Or but only with respect to liability for "bodily Organization injury", "property damage" or "personal WHO IS AN INSURED under Section C. is and advertising injury" caused, in whole or amended to include as an additional insured in part, by your maintenance, operation or the person(s) or organization(s) shown in the use of equipment leased to you by such Declarations, but only with respect to liability person(s)or organization(s). for "bodily injury", "property damage" or b. With respect to the insurance afforded to personal and advertising injury" caused, in these additional insureds, this insurance whole or in part, by your acts or omissions or does not apply to any "occurrence" which the acts or omissions of those acting on your takes place after you cease to lease that behalf: equipment. a. In the performance of your ongoing 5. Additional Insured - Owners Or Other operations; or Interests From Whom Land Has Been b. In connection with your premises owned Leased by or rented to you. a. WHO IS AN INSURED under Section C. is 2. Additional Insured - Managers Or Lessors amended to include as an additional Of Premises insured the person(s) or organization(s) shown in the Declarations as an Additional a. WHO IS AN INSURED under Section C. is Insured —Owners Or Other Interests From amended to include as an additional insured Whom Land Has Been Leased, but only the person(s)or organization(s)shown in the with respect to liability arising out of the Declarations as an Additional Insured - ownership, maintenance or use of that part Designated Person Or Organization; but only of the land leased to you and shown in the with respect to liability arising out of the Declarations. ownership, maintenance or use of that part of the premises leased to you and shown in the b. With respect to the insurance afforded to these additional insureds, the followingDeclarations. additional exclusions apply: b. With respect to the insurance afforded to these additional insureds, the following This insurance does not apply to: additional exclusions apply: 1) Any "occurrence" that takes place This insurance does not apply to: after you cease to lease that land; or 1) Any "occurrence" which takes place 2) Structural alterations, new after you cease to be a tenant in that construction or demolition operations premises; or performed by or on behalf of such person or organization. 2) Structural alterations, new construction or demolition operations 6. Additional Insured - State Or Political performed by or on behalf of such Subdivision —Permits person or organization.a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the state or political subdivision shown in the Declarations as an Additional Page 18 of 24 Form SS 00 08 04 05 Docusign Envelope ID:4342A889-67AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM Insured — State Or Political Subdivision - e) Any failure to make such Permits, but only with respect to inspections, adjustments, tests or operations performed by you or on your servicing as the vendor has agreed behalf for which the state or political to make or normally undertakes to subdivision has issued a permit. make in the usual course of b. With respect to the insurance afforded to business, in connection with the these additional insureds, the following distribution or sale of the products; additional exclusions apply: f) Demonstration, installation, This insurance does not apply to:servicing or repair operations, except such operations performed 1) "Bodily injury", "property damage" or at the vendor's premises in personal and advertising injury" connection with the sale of the arising out of operations performed for product; the state or municipality; or g) Products which, after distribution 2) "Bodily injury" or "property damage" or sale by you, have been labeled included in the "product-completed or relabeled or used as a operations" hazard. container, part or ingredient of any 7. Additional Insured—Vendors other thing or substance by or for a. WHO IS AN INSURED under Section C. is the vendor; or amended to include as an additional h) "Bodily injury" or "property insured the person(s) or organization(s) damage" arising out of the sole referred to below as vendor) shown in the negligence of the vendor for its Declarations as an Additional Insured - own acts or omissions or those of Vendor, but only with respect to "bodily its employees or anyone else injury" or "property damage" arising out of acting on its behalf. However, this your products" which are distributed or exclusion does not apply to: sold in the regular course of the vendor's i) The exceptions contained in business and only if this Coverage Part Subparagraphs (d)or(f); or provides coverage for "bodily injury" or ii) Such inspections, property damage" included within the products-completed operations hazard". adjustments, tests or servicing as the vendor has agreed to b. The insurance afforded to the vendor is make or normally undertakes subject to the following additional exclusions: to make in the usual course of 1) This insurance does not apply to:business, in connection with a) "Bodily injury" or "property the distribution or sale of the damage" for which the vendor is products. obligated to pay damages by 2) This insurance does not apply to any reason of the assumption of insured person or organization from liability in a contract or agreement. whom you have acquired such This exclusion does not apply to products, or any ingredient, part or liability for damages that the container, entering into, vendor would have in the absence accompanying or containing such of the contract or agreement; products. b) Any express warranty 8. Additional Insured —Controlling Interest unauthorized by you; WHO IS AN INSURED under Section C. is c) Any physical or chemical change amended to include as an additional insured in the product made intentionally the person(s) or organization(s) shown in the by the vendor; Declarations as an Additional Insured — d) Repackaging, unless unpacked Controlling Interest, but only with respect to solely for the purpose of inspection, their liability arising out of: demonstration, testing, or the a. Their financial control of you; or substitution of parts under b. Premises they own, maintain or control instructions from the manufacturer, while you lease or occupy these premises. and then repackaged in the original container; Form SS 00 08 04 05 Page 19 of 24 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM This insurance does not apply to structural The limits of insurance that apply to additional alterations, new construction and demolition insureds are described in Section D. — Limits Of operations performed by or for that person or Insurance. organization. How this insurance applies when other insurance 9. Additional Insured — Owners, Lessees Or is available to an additional insured is described in Contractors — Scheduled Person Or the Other Insurance Condition in Section E. — Organization Liability And Medical Expenses General a. WHO IS AN INSURED under Section C. is Conditions. amended to include as an additional G. LIABILITY AND MEDICAL EXPENSES insured the person(s) or organization(s) DEFINITIONS shown in the Declarations as an Additional Insured—Owner, Lessees Or Contractors, 1. "Advertisement" means the widespread public but only with respect to liability for "bodily dissemination of information or images that injury", "property damage" or "personal has the purpose of inducing the sale of goods, and advertising injury" caused, in whole or products or services through: in part, by your acts or omissions or the a. (1) Radio; acts or omissions of those acting on your 2) Television; behalf: 3) Billboard; 1) In the performance of your ongoing 4) Magazine; operations for the additional insured(s); or 5) Newspaper; 2) In connection with "your work" b. The Internet, but only that part of a web performed for that additional insured site that is about goods, products or and included within the "products- services for the purposes of inducing the completed operations hazard", but sale of goods, products or services; or only if this Coverage Part provides c. Any other publication that is given coverage for "bodily injury" or widespread public distribution. property damage" included within the However, "advertisement" does not include: products-completed operations hazard". a. The design, printed material, information or images contained in, on or upon the b. With respect to the insurance afforded to packaging or labeling of any goods or these additional insureds, this insurance products; or does not apply to "bodily injury", "property damage" or "personal an advertising b. An interactive conversation between or injury" arising out of the rendering of, or among persons through a computer network. the failure to render, any professional 2. "Advertising idea" means any idea for an architectural, engineering or surveying advertisement". services, including: 3. "Asbestos hazard" means an exposure or 1) The preparing, approving, or failure to threat of exposure to the actual or alleged prepare or approve, maps, shop properties of asbestos and includes the mere drawings, opinions, reports, surveys, presence of asbestos in any form. field orders, change orders, designs or 4. "Auto" means a land motor vehicle, trailer or drawings and specifications; or semi-trailer designed for travel on public 2) Supervisory, inspection, architectural roads, including any attached machinery or or engineering activities. equipment. But "auto" does not include 10. Additional Insured — Co-Owner Of Insured mobile equipment". Premises 5. "Bodily injury" means physical: WHO IS AN INSURED under Section C. is a. Injury; amended to include as an additional insured b. Sickness; or the person(s) or Organization(s) shown in the c. Disease Declarations as an Additional Insured — Co- Owner Of Insured Premises, but only with sustained by a person and, if arising out of the respect to their liability as co-owner of the above, mental anguish or death at any time. premises shown in the Declarations. 6. "Coverage territory" means: Page 20 of 24 Form SS 00 08 04 05 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM a. The United States of America (including its b. You have failed to fulfill the terms of a territories and possessions), Puerto Rico contract or agreement; and Canada; if such property can be restored to use by: b. International waters or airspace, but only if a. The repair, replacement, adjustment or the injury or damage occurs in the course removal of "your product" or "your work"; of travel or transportation between any or places included in a. above;b. Your fulfilling the terms of the contract or c. All other parts of the world if the injury or agreement. damage arises out of: 12. "Insured contract" means: 1) Goods or products made or sold by you in the territory described in a.above; a. A contract for a lease of premises. However, that portion of the contract for a 2) The activities of a person whose home lease of premises that indemnifies any is in the territory described in a. person or organization for damage by fire, above, but is away for a short time on lightning or explosion to premises while your business; or rented to you or temporarily occupied by 3) "Personal and advertising injury" you with permission of the owner is offenses that take place through the subject to the Damage To Premises Internet or similar electronic means of Rented To You limit described in Section communication D. — Liability and Medical Expenses Limits provided the insured's responsibility to pay of Insurance. damages is determined in the United States of b. A sidetrack agreement; America (including its territories and c. Any easement or license agreement, possessions), Puerto Rico or Canada, in a including an easement or license suit" on the merits according to the agreement in connection with construction substantive law in such territory, or in a or demolition operations on or within 50 settlement we agree to. feet of a railroad; 7. "Electronic data" means information, facts or d. Any obligation, as required by ordinance, programs:to indemnify a municipality, except in a. Stored as or on; connection with work for a municipality; b. Created or used on; or e. An elevator maintenance agreement; or c. Transmitted to or from f. That part of any other contract or computer software, including systems and agreement pertaining to your business applications software, hard or floppy disks, including an indemnification of a CD-ROMS, tapes, drives, cells, data municipality in connection with work processing devices or any other media which performed for a municipality) under which are used with electronically controlled you assume the tort liability of another equipment. party to pay for"bodily injury" or "property 8. "Employee" includes a "leased worker". damage" to a third person or organization, Employee" does not include a "temporary provided the "bodily injury" or "property worker". damage" is caused, in whole or in part, by you or by those acting on your behalf. 9. "Executive officer" means a person holding Tort liability means a liability that would be any of the officer positions created by your imposed by law in the absence of any charter, constitution, by-laws or any other contract or agreement. similar governing document. Paragraph f. includes that part of any 10. "Hostile fire" means one which becomes contract or agreement that indemnifies a uncontrollable or breaks out from where it was railroad for "bodily injury" or "property intended to be. damage" arising out of construction or 11. "Impaired property" means tangible property, demolition operations within 50 feet of any other than "your product" or "your work", that railroad property and affecting any railroad cannot be used or is less useful because:bridge or trestle, tracks, road-beds, tunnel, a. It incorporates "your product" or "your work" underpass or crossing. that is known or thought to be defective, However, Paragraph f. does not include deficient, inadequate or dangerous;or that part of any contract or agreement: Form SS 00 08 04 05 Page 21 of 24 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM 1) That indemnifies an architect,1) Power cranes, shovels, loaders, engineer or surveyor for injury or diggers or drills; or damage arising out of: 2) Road construction or resurfacing a) Preparing, approving or failing to equipment such as graders, scrapers prepare or approve maps, shop or rollers; drawings, opinions, reports, e. Vehicles not described in a., b., c., or d. surveys, field orders, change above that are not self-propelled and are orders, designs or drawings and maintained primarily to provide mobility to specifications; or permanently attached equipment of the b) Giving directions or instructions, following types: or failing to give them, if that is the 1) Air compressors, pumps and primary cause of the injury or generators, including spraying, damage; or welding,building cleaning, 2) Under which the insured, if an geophysical exploration, lighting and architect, engineer or surveyor, well servicing equipment; or assumes liability for an injury or 2) Cherry pickers and similar devices damage arising out of the insured's used to raise or lower workers; rendering or failure to render professional services, including those f. Vehicles not described in a., b., c., or d. listed in (1) above and supervisory, above maintained primarily for purposes inspection,architectural or other than the transportation of persons or engineering activities. cargo. 13. "Leased worker" means a person leased to However, self-propelled vehicles with the you by a labor leasing firm under an following types of permanently attached agreement between you and the labor leasing equipment are not "mobile equipment" but firm, to perform duties related to the conduct of will be considered "autos": your business. "Leased worker" does not 1) Equipment, of at least 1,000 pounds include a "temporary worker". gross vehicle weight, designed 14. "Loading or unloading" means the handling of primarily for: property: a) Snow removal; a. After it is moved from the place where it is b) Road maintenance, but not accepted for movement into or onto an construction or resurfacing; or aircraft, watercraft or"auto"; c) Street cleaning; b. While it is in or on an aircraft, watercraft or 2) Cherry pickers and similar devices auto"; or mounted on automobile or truck c. While it is being moved from an aircraft, chassis and used to raise or lower watercraft or "auto" to the place where it is workers; and finally delivered; 3) Air compressors, pumps and but "loading or unloading" does not include the generators, including spraying, movement of property by means of a mechanical welding,building cleaning, device, other than a hand truck, that is not geophysical exploration, lighting and attached to the aircraft,watercraft or"auto". well servicing equipment. 15. "Mobile equipment" means any of the following 16. "Occurrence" means an accident, including types of land vehicles, including any attached continuous or repeated exposure to substantially machinery or equipment:the same general harmful conditions. a. Bulldozers, farm machinery, forklifts and 17. "Personal and advertising injury" means injury, other vehicles designed for use principally including consequential "bodily injury", arising off public roads; out of one or more of the following offenses: b. Vehicles maintained for use solely on or a. False arrest, detention or imprisonment; next to premises you own or rent;b. Malicious prosecution; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, on which are permanently mounted: Page 22 of 24 Form SS 00 08 04 05 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM c. The wrongful eviction from, wrongful entry Work that may need service, maintenance, into, or invasion of the right of private correction, repair or replacement, but occupancy of a room, dwelling or which is otherwise complete, will be premises that the person occupies, treated as completed. committed by or on behalf of its owner, The "bodily injury" or "property damage" landlord or lessor; must occur away from premises you own d. Oral, written or electronic publication of or rent, unless your business includes the material that slanders or libels a person or selling, handling or distribution of "your organization or disparages a person's or product" for consumption on premises you organization's goods, products or services; own or rent. e. Oral, written or electronic publication of b. Does not include "bodily injury" or material that violates a person's right of property damage"arising out of: privacy; 1) The transportation of property, unless f. Copying, in your "advertisement", a the injury or damage arises out of a person's or organization's "advertising condition in or on a vehicle not owned idea" or style of"advertisement"; or operated by you, and that condition g. Infringement of copyright, slogan, or title of was created by the "loading or any literary or artistic work, in your unloading" of that vehicle by any advertisement"; or insured; or h. Discrimination or humiliation that results in 2) The existence of tools, uninstalled injury to the feelings or reputation of a equipment or abandoned or unused natural person. materials. 18. "Pollutants" means any solid, liquid, gaseous or 20. "Property damage" means: thermal irritant or contaminant, including smoke, a. Physical injury to tangible property, vapor, soot, fumes, acids, alkalis, chemicals and including all resulting loss of use of that waste. Waste includes materials to be recycled, property. All such loss of use shall be reconditioned or reclaimed. deemed to occur at the time of the 19. "Products-completed operations hazard"; physical injury that caused it; or a. Includes all "bodily injury" and "property b. Loss of use of tangible property that is not damage" occurring away from premises physically injured. All such loss of use you own or rent and arising out of "your shall be deemed to occur at the time of product" or"your work" except:occurrence"that caused it. 1) Products that are still in your physical As used in this definition, "electronic data" is possession; or not tangible property. 2) Work that has not yet been completed 21. "Suit" means a civil proceeding in which or abandoned. However, "your work" damages because of "bodily injury", "property will be deemed to be completed at the damage" or "personal and advertising injury" earliest of the following times:to which this insurance applies are alleged. a) When all of the work called for in Suit" includes: your contract has been completed. a. An arbitration proceeding in which such b) When all of the work to be done at damages are claimed and to which the the job site has been completed if insured must submit or does submit with your contract calls for work at our consent; or more than one job site. b. Any other alternative dispute resolution c) When that part of the work done at proceeding in which such damages are a job site has been put to its claimed and to which the insured submits intended use by any person or with our consent. organization other than another 22. "Temporary worker" means a person who is contractor or subcontractor furnished to you to substitute for a permanent working on the same project. employee" on leave or to meet seasonal or short-term workload conditions. 23. "Volunteer worker" means a person who: a. Is not your"employee"; Form SS 00 08 04 05 Page 23 of 24 Docuslgn Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 BUSINESS LIABILITY COVERAGE FORM b. Donates his or her work; 2) The providing of or failure to provide c. Acts at the direction of and within the warnings or instructions. scope of duties determined by you; and c. Does not include vending machines or d. Is not paid a fee, salary or other other property rented to or located for the compensation by you or anyone else for use of others but not sold. their work performed for you. 25. "Your work": 24. "Your product": a. Means: a. Means: 1) Work or operations performed by you 1) Any goods or products, other than real or on your behalf; and property, manufactured, sold, handled,2) Materials, parts or equipment distributed or disposed of by: furnished in connection with such work a) You; or operations. b) Others trading under your name; b. Includes: or 1) Warranties or representations made at c) A person or organization whose any time with respect to the fitness, business or assets you have quality, durability, performance or use acquired; and of"your work"; and 2) Containers (other than vehicles),2) The providing of or failure to provide materials, parts or equipment warnings or instructions. furnished in connection with such goods or products. b. Includes: 1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of"your product"; and Page 24 of 24 Form SS 00 08 04 05 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 POLICY NUMBER: 59SBAR00849 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT - AGGREGATE LIMITS (PER PROJECT) This endorsement modifies insurance provided under the following: BUSINESS LIABILITY COVERAGE FORM A. Section D. LIABILITY AND MEDICAL EXPENSES 4. If the applicable "project" has been abandoned, LIMITS OF INSURANCE is amended as follows: delayed, or abandoned and then restarted, or if 1. The General Aggregate Limit under Section D.the authorized contracting parties deviate from LIABILITY AND MEDICAL EXPENSES LIMIT plans, blueprints, designs, specifications or OF INSURANCE applies separately to each of timetables, the "project" will still be deemed to your"projects". be the same "project". 2. The limits shown in the Declarations for Liability 5. The provisions of Section D. LIABILITY AND and Medical Expenses, Damage To Premises MEDICAL EXPENSES LIMIT OF INSURANCE Rented To You and Medical Expenses continue not otherwise modified by this endorsement to apply. shall continue to apply as stipulated. 3. When coverage for liability arising out of the B. Additional Definitions products-completed operations hazard" is The following definition is added to Section G. provided, any payments for damages because LIABILITY AND MEDICAL EXPENSES of "bodily injury" or "property damage" included DEFINITIONS: in the "products-completed operations hazard" 1. "Project" means "your work" at location(s) away will reduce the Products-Completed Operations from premises owned or rented to you. Aggregate Limit, and not reduce the General Aggregate Limit. Form SS 04 33 04 05 Page 1 of 1 2005, The Hartford Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT Policy Number: 59 WEC AB6SO4 Endorsement Number: Effective Date: 08/08/24 Effective hour is the same as stated on the Information Page of the policy. Named Insured and Address: MATRIX CONSULTING GROUP LTD 1650 S AMPHLETT BLVD STE 213 SAN MATEO CA 94402 We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. This agreement shall not operate directly or indirectly to benefit anyone not named in the Schedule. SCHEDULE Any person or organization for whom you are required by contract or agreement to obtain this waiver from us. Endorsement is not applicable in KY, NH, NJ or for any MO construction risk Countersigned by Authorized Representative Form WC 00 03 13 Printed in U.S.A. Process Date: 06/29/24 Policy Expiration Date: 08/08/25 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 POLICY INSURER LIST BY JURISDICTION INSURER NAIC JURISDICTION Sentinel Insurance Company Ltd. 11000 AZ IA ONE HARTFORD PLAZA HARTFORD CT 06155 Hartford Accident and Indemnity Company 22357 VA MT NY ONE HARTFORD PLAZA HARTFORD CT 06155 Trumbull Insurance Company 27120 PA ONE HARTFORD PLAZA HARTFORD CT 06155 Hartford Casualty Insurance Company 29424 CA ONE HARTFORD PLAZA HARTFORD CT 06155 Twin City Fire Insurance Company 29459 MA CO IL KY AK FL UT OR ONE HARTFORD PLAZA HARTFORD CT 06155 Hartford Underwriters Insurance Company 30104 NV MO NE NJ HI TX NC ONE HARTFORD PLAZA HARTFORD CT 06155 Nutmeg Insurance Company 39608 IN ONE HARTFORD PLAZA HARTFORD CT 06155 THE COVERAGE PROVIDED IN EACH JURISDICTION IS WITH RESPECT TO THE LOCATIONS OF THE NAMED INSURED IN THAT JURISDICTION IN ACCORDANCE WITH THE WORKERS' COMPENSATION LAW OF THAT JURISDICTION. AS USED IN THIS POLICY, "COMPANY", "WE", "US"AND "OURS" MEAN THE MEMBER INSURANCE COMPANIES OF THE HARTFORD INSURANCE GROUP COLLECTIVELY PROVIDING THIS INSURANCE. Nothing herein, contained shall be held to vary, waive, alter or extend any of the terms, conditions, agreements or information of the policy, other than as herein stated. Form WC 66 04 40 Printed in U.S.A. Process Date: 06/29/24 Policy Expiration Date: 08/08/25 Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 v, G°FVOR° Agenda ItemCOPq ^ P City Council Item #: 3.3. 9/24/2024 File #: 24-0513 TO: Honorable Mayor and Members of the City Council THRU: Tom Kisela, City Manager FROM: Trang Nguyen, Finance Director 1 . SUBJECT Agreement with Matrix Consulting Group, LTD for the preparation of a citywide Cost Allocation Plan and User Fee Study. 2. SUMMARY At the June 25, 2024, City Council meeting, staff was directed to prepare and issue a Request for Proposal to develop a Cost Allocation Plan and User Fee Study. The City received two responses. Matrix Consulting Group, LTD was the top ranked consultant based on the evaluation of the proposals. 3. RECOMMENDED ACTION Approve the agreement with Matrix Consulting Group, LTD in the amount of $58,500 for the preparation of a citywide Cost Allocation Plan and User Fee Study; and authorize the Mayor and City Clerk to execute on behalf of the City. 4. FISCAL IMPACT The expense for this amendment is $58,500 and will be funded through the General Fund (100). 100.1231.51670.00000 Other Professional & Consulting Services 5. STRATEGIC PLAN GOALS Goal 2: Be a fiscally healthy community b: Analyze future fiscal needs and potential revenue opportunities. d: Effectively manage and develop City assets. 6. DISCUSSION AND BACKGROUND At the June 24, 2024, City Council meeting, staff was directed to prepare and issue a Request for Proposal (RFP) to develop a Cost Allocation Plan and User Fee Study. The purpose of a cost allocation plan is to identify and distribute central service and other administrative support costs to the users of those services. These kinds of costs include finance, facility maintenance, personnel, and certain departmental administrative functions. Cost allocation plans help a city determine the full City of Orange Page 1 of 3 Printed on 9/18/2024 powered by Legistar'" Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Item #: 3.3. 9/24/2024 File #: 24-0513 costs by identifying the indirect/overhead allocations to be added to a program's direct costs. Once developed, the full program costs can help set internal city charges and be used as a basis to establish user fees, permits and applications, billing rates, hourly rates, and costs of special services. Furthermore, a cost allocation plan can be used to charge indirect overhead to federal and state grants and charge external agencies and funds their fair share of support costs. A user fee study determines the full cost of services offered by a government agency for which user fees are currently charged or could be charged. According to State law, city fees for services cannot exceed the cost of providing the service. The purpose of this updated study is to identify the full cost of providing these services, therefore identifying any subsidy of General Fund tax dollars for said services. This study will examine and determine if the actual costs associated with city services are achieving full cost recovery. The last comprehensive citywide user fee study was completed in 2018. It is recommended by industry professionals in the cost recovery sector that local governments update their cost-based fee studies every three to five years. Staff contacted and solicited proposals from reputable firms. All firms were presented with the scope of work, project schedule, plans and product specifications. The proposals were received as follows: 1. Matrix Consulting Group, LTD Irvine $58,500 2. Baker Tilly US, LLP, Irvine 74,600 Proposals received were evaluated based on background and experience in organizational analysis evaluation, staff expertise and overall experience of personnel assigned to the work, time required to accomplish the requested services, public sector experience in municipal setting conducting similar studies, references, and overall cost. Matrix Consulting Group, LTD was ranked as the top consultant. Therefore, staff recommends Matrix Consulting Group, LTD be awarded the agreement in the amount of$58,500. The scope of service includes examining the total costs associated with providing city services and providing recommendations for changes in fees that will achieve full cost recovery. Matrix's costing model is built based on the City's operations, budget details and intended use for the results. The method used is a customized approach specific to the City. Upon conclusion of the fee study, Matrix will produce and present a detailed report summarizing the results that will include: A concise executive summary discussing the study, methodology, results and narrative describing the services included in the study. A section on proposed modifications to the current fee schedule, including removal or addition of new fees for service. A section on per unit and annual results for each fee in the analysis, as well as where workload data is available. A comparative survey section outlining key fees, their comparison to other local jurisdictions, and contextual information regarding budget and staffing. A methodology for annual updates including CPI adjustments and a calculation to determine cost recovery for any new fees. City of Orange Page 2 of 3 Printed on 9/18/2024 powered by LegistarTM Docusign Envelope ID:4342A889-B7AE-4782-9FC8-B79412932CC2 Item #: 3.3. 9/24/2024 File #: 24-0513 7. ATTACHMENTS Professional Services Agreement with Matrix Consulting Group, Ltd. City of Orange Page 3 of 3 Printed on 9/18/2024 powered by LegistarTM DocuSign Certificate Of Completion Envelope Id:4342A889B7AE47829FC8B79412932CC2 Status:Completed Subject:Matrix Consulting Group,LTD(AGR-7749)Cost Allocation Plan and User Fee Study; RFP No.24-25.01 Source Envelope: Document Pages:76 Signatures:3 Envelope Originator: Certificate Pages:5 Initials:3 Sally Trejo AutoNav:Enabled 300 E Chapman Ave Envelopeld Stamping:Enabled Orange,CA 92866 Time Zone:(UTC-08:00)Pacific Time(US&Canada) strejo@cityoforange.org IP Address:67.52.190.252 Record Tracking Status: Original Holder:Sally Trejo Location:DocuSign 9/25/2024 11:04:28 AM strejo@cityoforange.org Signer Events Signature Timestamp Mike Vigliotta signed by: Sent:9/25/2024 11:14:01 AM mvigliotta@cityoforange.org Vil(,tdi{'a Viewed:9/26/2024 8:01:30 AM Security Level:Email,Account Authentication 060B01F36 78 E496 Signed:9/26/2024 8:01:35 AM None) Signature Adoption: Pre-selected Style Using IP Address:67.52.190.252 Electronic Record and Signature Disclosure: Accepted:7/19/2023 8:49:30 AM ID:39cb2a2b-f319-4abb-a401-c125e37c81ad Daniel R.Slater Doc.Sbanedby:Sent:9/26/2024 8:01:38 AM dan@danslater.com K. Sit&Viewed:9/26/2024 4:43:15 PM Security Level:Email,Account Authentication 02 13 88 13 77 7A20 41 Signed:9/26/2024 4:43:22 PM None) Signature Adoption: Pre-selected Style Using IP Address:99.53.92.156 Electronic Record and Signature Disclosure: Accepted:9/26/2024 4:43:15 PM ID:73d578b0-31aa-499c-ae85-39b372a005a9 Pamela Coleman r—Duc.SWMdby:Sent:9/26/2024 4:43:24 PM pcoleman@cityoforange.org Viewed:9/30/2024 9:46:55 AM City Clerk DB2BEDCBSBEF43A... Signed:9/30/2024 9:48:13 AM City of Orange Security Level:Email,Account Authentication Signature Adoption:Uploaded Signature Image None) Using IP Address:207.212.33.91 Signed using mobile Electronic Record and Signature Disclosure: Not Offered via DocuSign Richard Brady DS Sent:9/30/2024 9:48:16 AM rbrady@matrixcg.net Viewed:9/30/2024 11:19:51 AM Son Signed:9/30/2024 11:22:34 AM Matrix Consulting Group Security Level:Email,Account Authentication Signature Adoption:Pre-selected Style None) Using IP Address:73.92.252.217 Electronic Record and Signature Disclosure: Accepted:9/30/2024 11:19:51 AM ID:cc608e20-dd39-4bd4-9099-2b6bbd5caa5c Signer Events Signature Timestamp Courtney Ramos Sent:9/30/2024 11:22:38 AM cramos@matrixcg.net L(Viewed:9/30/2024 11:24:08 AM Vice President,Secretary Signed:9/30/2024 11:24:19 AM Matrix Consulting Group Signature Adoption: Pre-selected Style Security Level:Email,Account Authentication None) Using IP Address:73.92.252.217 Electronic Record and Signature Disclosure: Accepted:9/30/2024 11:24:08 AM ID:cd139705-043c-46a7-b47a-20899fefb18a Sally Trejo DS Sent:9/30/2024 11:24:22 AM strejo@cityoforange.org Viewed:9/30/2024 11:25:52 AM Administrative Assistant Signed:9/30/2024 11:25:58 AM City of Orange Security Level:Email,Account Authentication Signature Adoption: Pre-selected Style None) Using IP Address:67.52.190.252 Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Andrea Pham COPIED Sent:9/30/2024 11:26:01 AM apham@cityoforange.org Security Level:Email,Account Authentication None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Ryan Sullivan COPIED Sent:9/30/2024 11:26:02 AM rsullivan@cityoforange.org Security Level:Email,Account Authentication None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/25/2024 11:14:01 AM Certified Delivered Security Checked 9/30/2024 11:25:52 AM Signing Complete Security Checked 9/30/2024 11:25:58 AM Completed Security Checked 9/30/2024 11:26:02 AM Payment Events Status Timestamps Electronic Record and Signature Disclosure Electronic Record and Signature Disclosure created on: 1/27/2023 10:00:28 AM Parties agreed to:Mike Vigliotta,Daniel R.Slater,Richard Brady,Courtney Ramos ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Orange (we,us or Company) may be required by law to provide to you certain written notices or disclosures. 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CITY OF ORANGE DIGITAL SIGNATURE AGREEMENT TRANSMITTAL AGREEMENT WITH: MATRIX CONSULTING GROUP, LTD CONTRACT ADMINSTRATOR: RYAN SULLIVAN DEPT FINANCE EXT 2238 CITY MANAGER APPROVAL AGENDA I/ CITY COUNCIL APPROVAL COUNCIL MEETING DATE 9/10/24 ITEM# 3.3 V ATTACHMENTS INCLUDED For each person who needs to sign,you must provide the following information: VENDOR NAME TITLE EMAIL RICHARD BRADY PRESIDENT RBRADY@MATRIXCG.ET COURTNEY RAMOS VICE PRESIDENT CRAMOS@MATRIXCG.NET For additional person(s) needing an electronic copy of the fully executed agreement,please provide the following: NAME TITLE EMAIL ANDREA PHAM ASSISTANT FINANCE DIRECTOR APHAM@CITYOFORANGE.ORG RYAN SULLIVAN RSULLIVAN@CITYOFORANGE.ORG I as kk Eti reck Q:\001 AGREEMENTS