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Home My WebLink About25G - AGMT COST REIMBURSEMENT SVCSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 21, 2018 TITLE: APPROVE FIRST AMENDMENT TO AGREEMENT WITH MGT OF AMERICA CONSULTING, LLC FOR STATE MANDATED COST REIMBURSEMENT SERVICES (STRATEGIC PLAN NO. 4, 1) u RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a first amendment to agreement with MGT of America Consulting, LLC to amend the scope of services and increase the compensation by $11,400 to provide for SB90 State mandated cost reimbursement claim services, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION Local agencies provide various programs and services which are mandated by the State of California. When the Governor or Legislature mandate new programs or higher level of service, the State Constitution requires the State to reimburse local agencies for all eligible expenses through the SB90 State mandated cost reimbursement claims process. Over the past three years, the City of Santa Ana has received approximately $260,000 per year in State reimbursement for mandated programs and services required in law enforcement agencies. On September 16, 2013, at the conclusion of a Request for Proposals (RFP) process, the City entered into a three-year contract agreement with MGT of America, Inc. (Consultant) to provide SB90 claim preparation services, for a total not to exceed amount of $34,3.00 with two additional one-year options to renew at the City's discretion. On August 2, 2016, the City exercised the first of two one-year extension options for a total not to exceed amount of $56,525 which consisted of $11,400 for SB90 cost reimbursement claims and $45,125 for preparation of reimbursement claims for the Public Works Agency's capital projects (Agreement No. A-2016-199). On September 19, 2017, the City entered into a one-year contract agreement with the Consultant with provision for a one-year extension to prepare applicable State mandated cost reimbursement 25G-1 Approve First Amendment to Agreement with MGT of America Consulting, LLC For State Mandated Cost Reimbursement Services August 21, 2018 Page 2 claims effective September 19, 2017 through September 18, 2018 (Agreement No. A-2017-251). The agreement was a continuance of services initially provided under Agreement No. A-2016-199 referenced above. However, the parties did not include reference for services provided for annual claims under SB90. Therefore, staff is requesting Council approval to amend the Scope of Services and the Compensation section of the agreement to include services provided for SB90 claims and cover costs incurred for the claims. The amendment will also recognize the change in the Consultant's reorganization of its corporate structure. As a result, the Consultant will be referred to as MGT of America, LLC, the parent company of MGT of America Consulting, LLC, effective as of the date of this amendment. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #4 City Financial Stability, Objective #1 (Maintain a Stable, Efficient, and Transparent Financial Environment). FISCAL IMPACT There is no direct fiscal impact on any expenditure accounts of the City or its related agencies. Upon receipt of monies from the State of California, funds in the amount up to $11,400 will offset revenues received in the SB90 state mandated cost reimbursement revenue account (account no. 01114002-50503). Sergio Vidal 51y Assistant Director Finance and Management Services Agency SR Exhibit: 1. First Amendment to Agreement with MGT of America Consulting, LLC 25G-2 EXHIBIT 1 FIRST AMENDMENT TO CONSULTANT AGREEMENT WITH MGT OF AMERICA CONSULTING, LLC THIS FIRST AMENDMENT TO AGREEMENT is entered into this 21st day of August 2018, by and between MGT of America, LLC, the parent company of MGT of America Consulting, LLC ("Consultant"), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On September 19, 2017, the City entered into Agreement #A-2017-251 with Consultant to prepare applicable State Mandated Cost Reimbursement claims for the term of September 19, 2017 through September 18, 2018. The current term of the Agreement is still in effect and allows for a one-year option to extend the term. B. The Agreement is a continuance of services initially provided under Agreement A-2016-199, pursuant to RFP 13-035. Included within the services requested under the RFP and Agreement A-2016-199 were fees and rates for annual claims under SB 90. C. In preparing the draft for Agreement A-2017-251, the parties inadvertently did not include reference for services provided for State Mandated Cost Reimbursement claims under SB 90. D. In accordance with the terms and conditions of the Agreement, the parties desire to amend the Scope of Services and the Compensation amount of the Agreement to reflect services provided by the Consultant to cover costs incurred for State Mandated Cost Reimbursement claims under SB 90. E. The City also recognizes the change in the Consultant's reorganization of its corporate structure that occurred on November 17, 2017. The City shall refer to the Consultant, for the purpose of this Agreement, as MGT of America Consulting, LLC, effective as of the date of this First Amendment. THE PARTIES THEREFORE AGREE: Section 1, SCOPE OF SERVICES, shall be amended to include the attached Exhibit B as an additional scope of services to this Agreement. 2. Section 2, COMPENSATION, shall be amended to increase the annual sum, as detailed in the attached invoices attached hereto as Exhibit C. The total costs for the services provided in Exhibit C shall not exceed $.11,400.- The total amount to be expended under the amended terms of this Agreement shall not exceed $56,525. Except as hereinabove modified in this First Amendment, the terms and conditions of said Agreement remain unchanged and in full force and effect. Page 1 of 2 25G-3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council ►:110Utr110.YM.10E00]03VA Sonia R. Carvalho, City Attorney By: inmaraijogosian Assistant City Attorney RECOMMENDED FOR APPROVAL: David Valentin Chief of Police CITY OF SANTA ANA RAUL GODINEZ II City Manager MGT OF AMERICA CONSULTING, LLC By: Title: Page 2 of 2 25G-4 Exhibit B Description of Scope/ Services to be performed by the Consultant A. Prepare and submit cost claims for FY 2016-2017 in in accordance with the annual claiming instructions and deadlines provided by the State (February 15, 2018) B. Facilitate department interviews to document and understand how the City complies with each eligible mandate reimbursement program C. Prepare and submit other new or first-time cost claims pursuant to the State Controller's Office (SCO) claiming instructions which are issued in accordance with parameters and guidelines received from the Commission on State Mandates and mailed to local agencies during the fiscal year D. Prepare all eligible City claims that exceed the State minimum of $1,000. Review the claims for completeness, propriety and eligibility of costs E. Discuss any edits with appropriate City member, provide completed claims to City for review and signature by no later than three weeks prior to State claiming deadlines F. File/ deliver the executed claims with the SCO prior to claiming deadline(s) G. Provide assistance to the City in responding to inquiries about and/ or defending the claims filed by the City that are audited or desk reviewed by the Office of the State Controller H. Monitor the general payment status of all claims submitted and still due on behalf of the City/ County pursuant to SB 90 claims due from the State I. Assist the City with any claims filed by MGT of America that are audited by the SCO J. Provide on- going support and status updates related to the anticipated changes in the claiming process arena of state government 25G-5 Y/f61{'10iF8 INVOICE Invoice for FSW i FY18 i City of Santa Ana i SB90 i FY17 i CA i 8624 i MGT of America Consulting, LLC Exhibit C Project: FSW I FY18 1 City of Santa Ana I SB90 FY17 I CA 18624 Invoice #32085 due October 07, 2017 STATUS: Late (282 days over) IssuE DATE: September 07, 2017 PAYMENT SCHEDULE: Net 30 **e*i MGT CONSULTING GROUP TO: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92702 Attn: Jasmine Yu, CPA Sr. Accountant jyu@santa-ana.org FROM: MGT of America Consulting, LLC 4320 West Kennedy, Suite 200, Tampa FL 33609 PHONE: 813-327-4717 Employer Identification Number: 81-0878597 STATEMENT OF SERVICES TITLE SUBTOTAL Annual SB 90 Claiming $2,850.00 Fixed Fee $2,850.00 Total $2,850.00 MESSAGE First quarterly invoice for State Mandate Cost Claiming (SS 90) services provided during FY 17-18 fiscal year Jul -Aug -Sep 2017 Terms: Total amount due within 30 days of invoice date. A service charge of 1 1R% permonth will be assessed on any unpaid balance over 60 days. https:llmgtconsulting.mavenlink.com/invoices/2940595 25G-6 1/1 7/1612018 INVOICE Invoice for FSW I FYI 1 City of Santa Ana I SB90 I FY17 ICA 18624 1 MGT of America Consulting, LLC Project: FSW I FY18 1 City of Santa Ana I SB90 FY17 I CA 18624 Invoice #32775 due January 28, 2018 STATUS: Late (169 days over) ISSUE DATE: December 29, 2017 PAYMENT SCHEDULE: Net 30 STATEMENT OF SERVICES TITLE Annual SB 90 Claiming Q2 SB 90 services, for 2016-17 actual claims due 2115/18. Terms: Total amount due within 15 days of invoice date. A service charge of 11/2% per month will be assessed on any unpaid balance over 60 days. **i*i MGT CONSULTING GROUP TO: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92702 Attn:jasmine Yu, CPA Sr. Accountant jyu@santa-ana.org FROM: MGT of America Consulting, LLC 4320 West Kennedy, Suite 200, Tampa FL 33609 PHONE: 813-327-0717 Employer Identification Number: 81-0878597 AMOUNT $2,850.00 Fixed Fee $2,850.00 Total $2,850.00 https://mgtconsulting.mavenlink.com/invoices/3310215 25G-7 1/1 7116/2018 INVOICE Invoice for FSW I FYI 1 City of Santa Ana I SB90 I FY17 ICA 18624 1 MGT of America Consulting, LLC Project: FSW I FY18 1 City of Santa Ana I SB90 FY17 I CA 18624 Invoice #33298 due April 25, 2018 STATUS: Late (82 days over) ISSUE DATE: March 26, 2018 PAYMENT SCHEDULE: Net 30 **e*i MGT CONSULTING GROUP TO: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92702 Atm: Jasmine Yu, CPA Sr. Accountant jyu@santa-ana.org FROM: MGT of America Consulting, LLC 4320 West Kennedy, Suite 200, Tampa FL 33609 PHONE: 813-327A717 Employer Identification Number: 81-0878597 STATEMENT OF SERVICES TITLE AMOUNT Annual SB 90 Claiming $2,850.00 Fixed Fee $2,850.00 Total $2,850.00 MESSAGE 3rd quarterly invoice for State Mandate Cost Claiming (SB 90) services provided during FY 17-18 fiscal year Jan -Feb -Mar 2018 Terms: Total amount due within 30 days of invoice date. hftps:flmgtconsulting.mavenlink.com/invoices/3636315 25G-8 1/1 7/16/2018 INVOICE Invoice for FSW i FY18 i City of Santa Ana ( SB90 i FY17 ICA 186241 MGT of America Consulting, LLC Project: FSW I FY18 1 City of Santa Ana I SB90 FY17 I CA 18624 Invoice #33434 due May 30, 2018 STATUS: Late (47 days over) ISSUE DATE: April 30, 2018 PAYMENT SCHEDULE: Net 30 **i*i MGT CONSULTING GROUP TO: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92702 Attn: Jasmine Yu, CPA Sr. Accountant jyu@santa-ana.org FROM: MGT of America Consulting, LLC 4320 West Kennedy, Suite 200, Tampa FL 33609 PHONE: 813-327-4717 Employer Identification Number: 81-0878597 STATEMENT OF SERVICES TITLE AMOUNT Annual SB 90 Claiming $2,850.00 Fixed Fee $2.850.00 Total $2,850.00 MESSAGE 4th quarterly invoice for State Mandate Cost Claiming (SB 90) services provided during FY 17-18 fiscal year Apr -May -Jun 2018 Terms: Total amount due within 30 days of invoice date. hdps://mgtconsulting.maventink.cornhnvoices/3767125 25G-9 111 25G-10