HomeMy WebLinkAboutREVENUE & COST SPECIALISTINSURANCE ON FILE
WORK MAY PROCEED
UNTIL INSURANCE EXPIRES
�2-;1-%Q23
CLERK OF COUNCIL
DATE: P9
N-2023-023
CONSULTANT AGREEMENT BETWEEN THE CITY OF SANTA ANA
AND REVENUE & COST SPECIALISTS, LLC FOR A RENT STABILIZATION AND
JUST CAUSE EVICTION ORDINANCE COMPREHENSIVE FEE STUDY
�-, THIS AGREEMENT is made and entered into on this 3 day of January, 2023 by and between
NRevenue & Cost Specialists, LLC ("Consultant"), and the City of Santa Ana, a charter city and
L-- municipal corporation organized and existing under the Constitution and laws of the State of
ct California ("City").
z
¢ RECITALS
A. The City desires to retain a Consultant having special skill and knowledge in performing a
rent stabilization and just cause eviction ordinance comprehensive fee study.
B. Consultant represents that Consultant is able and willing to provide such services to the
City.
C. In undertaking the performance of this Agreement, Consultant represents that it is
knowledgeable in its field and that any services performed by Consultant under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Consultant shall perform during the term of this Agreement, the scope of services that was
included in RFP No. 22-155 attached hereto as Exhibit A and incorporated herein by this
reference, and as further delineated in Consultant's proposal, which is attached hereto as Exhibit
B and incorporated herein by this reference.
2. COMPENSATION
a. City agrees to pay, and Consultant agrees to accept as total payment for its services for
City, the rates and charges identified in Exhibit B. The total amount to be expended
during the term of this Agreement shall not exceed $34,300.
b. Payment by City shall be made within forty-five (45) days following receipt of proper
invoice evidencing work performed, subject to City accounting procedures. Payment
need not be made for work which fails to meet the standards of performance set forth
in the Recitals which may reasonably be expected by City.
3. TERM
This Agreement shall commence on the date first written above for a one (1) year term,
with the option for the City to grant up to a one (1) year renewal exercisable by a writing by the
Page 1 of
City Manager and the City Attorney, unless terminated earlier in accordance with Section 15,
below.
4. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an
independent Consultant and not an employee of the City. This Agreement is not intended nor shall
it be construed to create an employer -employee relationship, a joint venture relationship, or to
allow the City to exercise discretion or control over the professional manner in which Consultant
performs the services which are the subject matter of this Agreement; however, the services to be
provided by Consultant shall be provided in a manner consistent with all applicable standards and
regulations governing such services. Consultant shall pay all salaries and wages, employer's social
security taxes, unemployment insurance and similar taxes relating to employees and shall be
responsible for all applicable withholding taxes.
5. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use,
modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property
embodied in plans, specifications, studies, drawings, estimates, and other documents or works of
authorship fixed in any tangible medium of expression, including but not limited to, physical
drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or
caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant
shall require all subcontractors to agree in writing that City is granted a non-exclusive and
perpetual license for any Documents & Data the subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal right to license any and all
Documents & Data. Consultant makes no such representation and warranty in regard to
Documents & Data which were provided to Consultant by the City. City shall not be limited in
any way in its use of the Documents and Data at any time, provided that any such use not within
the purposes intended by this Agreement shall be at City's sole risk.
6. INSURANCE
Contractor shall procure and maintain for the duration of the contract insurance against
claims for injuries to persons or damages to property which may arise from or in connection with
the performance of the work hereunder and the results of that work by the Contractor, his agents,
representatives, employees or subcontractors.
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
Commercial General Liability (CGL): Insurance Services Office Form CG 00 Ot covering CGL
on an "occurrence" basis, including products and completed operations, property damage, bodily
injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a
general aggregate limit applies, either the general aggregatelimit shalt apply separately to this
project/location (ISO CG 25 03 or 25 04) or the generalaggregate limit shall be twice the required
occurrence limit.
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2. Automobile Liability: Insurance Services Office Form dumber CA 0001 covering, Code (any
auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non -owned), withlimit no less
than $1,000,000 per accident for bodily injury and property damage. (Note: Autobile liability is
not required if an automobile is not required to perform services)
3. Workers' Compensation insurance as required by the State of California, with StatutoryLimits,
and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily
injury or disease. (Not required if consultant provides written verification it has no employees)
4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant's
profession, with limit no less than $1,000,000 per occurrence or claim.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown
above, the City requires and shall be entitled to the broader coverage and/or the higher limits
maintained by the contractor. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional
insureds on the CGL policy with respect to liability arising out of work or operations performed
by or on behalf of the Consultant including materials, parts, or equipment furnished in connection
with such work or operations. General liability coverage can be provided in the form of an
endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20 10 1185 or both
CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this contract, the Consultant's insurance coverage shall be primary
insurance primary coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its
officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the
City, its officers, officials, employees, or volunteers shall be excess of the Consultant's insurance
and shall not contribute with it.
Notice of Cancellation
Each insurance po licy required above shall state that coverage shall not be canceled, except with
notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said
Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of
subrogation, but this provision applies regardless of whether or not the City has received a waiver
of subrogation endorsement from the insurer.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the City. The City may require the
Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses
and related investigations, claim administration, and defense expenses within the retention. The
policy language shall provide, or be endorsed to provide, that the self -insured retention may be
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satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims -made basis:
1. The Retroactive Date must be shown and must be before the date of the contractor the
beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least
five
(5) years after completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -made
policyform with a Retroactive Date prior to the contract effective date, the Consultant
must purchase "extended reporting" coverage for a minimum of five (5) years after
completion of contract work.
Verification of Coverage
Consultant shall furnish the City with original Certificates of Insurance including all required
amendatory endorsements (or copies of the applicable policy language effecting coverage required
by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all
policy endorsements to City before work begins. However, failure to obtain the required
documents prior to the work beginning shall not waive the Consultant's obligation to provide them.
The City reserves the right to require complete, certified copies of all required insurance policies,
including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the
requirements stated herein, and Contractor shall ensure that City is an additional insured on
insurance required from subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the
risk, prior experience, insurer, coverage, or other special circumstances.
INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers,
agents, employees, contractors, special counsel, and representatives from liability: (1) for,personal
injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for
personal injury, including death, and claims for property damage, which may arise from the
negligent operations of the Contractor, its subcontractors, agents, employees, or other persons
acting on its behalf which relates to the services described in section I of this Agreement; and (2)
from any claim that personal injury, damages, just compensation, restitution, judicial or equitable
relief is due to the negligent operations of the Contractor, its subcontractors, agents, employees, or
other persons acting on its behalf which relates to the services described in section I of this
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Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just
compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by
reason of the events referred to in this Section or by reason of the terms of, or effects, arising from
this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for
the defense of the City, including fees and costs for special counsel to be selected by the City,
regarding any action by a third party asserting that personal injury, damages, just compensation,
restitution, judicial or equitable relief due to personal or property rights arises by reason of the
terms of, or effects arising from Contractor's performance under this Agreement. City may make
all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding
the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8, the
above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims
that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the
Contractor.
8. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives, and
employees against any and all liability, including costs, for infringement of any United States'
letters patent, trademark, or copyright infringement, including costs, contained in the work product
or documents provided by Consultant to the City pursuant to this Agreement.
9. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed
under this Agreement. Consultant shall maintain complete and accurate records with respect to
the costs incurred under this Agreement and any services, expenditures, and disbursements
charged to the City for a minimum period of three (3) years, or for any longer period required by
law, from the date of final payment to Consultant under this Agreement. All such records and
invoices shall be clearly identifiable. Consultant shall allow a representative of the City to
examine, audit, and make transcripts or copies of such records and any other documents created
pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to this Agreement for a period of three
(3) years from the date of final payment to Consultant under this Agreement.
10. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such
information is reasonably understood to be confidential and/or proprietary, Consultant agrees that
it shall not use or disclose such information except in the performance of this Agreement, and
further agrees to exercise the same degree of care it uses to protect its own information of like
importance, but in no event less than reasonable care. "Confidential Information" shall include all
nonpublic information. Confidential information includes not only written information, but also
information transferred orally, visually, electronically, or by other means. Confidential
information disclosed to either party by any subsidiary and/or agent of the other party is covered
by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any
information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the
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Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant
without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e)
is independently developed by the Consultant without reference to information disclosed by the
City.
11. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests, direct
or indirect, which would conflict in any manner with performance of services specified under this
Agreement.
12. NON-DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital status,
sexual orientation, gender identity, gender expression, gender, medical conditions, genetic
information, or military and veteran status, age, national origin, ancestry, or disability, as defined
and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization,
promotion, termination or other employment related activities or any services provided under this
Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all
applicable federal, state and local laws and regulations.
13. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Contractor, and supersedes any and all other agreements, oral or written, between the parties. In
the event of a conflict between the terms of this Agreement and any attachments hereto, the terms
of this Agreement shall prevail. This Agreement may not be modified except by written instrument
signed by the City and by an authorized representative of Contractor. The parties agree that any
terms or conditions of any purchase order or other instrument that are inconsistent with, or in
addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each
party to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, which is not embodied herein.
14. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Contractor,
Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without
the City's prior written consent shall be considered null and void. Nothing in this Agreement shall
be construed to limit the City's ability to have any of the services which are the subject to this
Agreement performed by City personnel or by other Contractors retained by City.
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15. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant
compensation for all services performed by Consultant prior to receipt of such notice of
termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Consultant to
deliver to the City all work product(s) completed as of such date, and in such case
such work product shall be the property of the City unless prohibited by law, and
Consultant consents to the: City's use thereof for such purposes as the City deems
appropriate.
b. Payment need not be made for work which fails to meet the standard of
performance specified in the Recitals of this Agreement.
16. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of this Agreement shall be effective unless it is in writing and signed by
the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or
remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not
similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.
17. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity,
interpretation, performance, and enforcement of any of the clauses of this Agreement shall be
determined and governed by the laws of the State of California. Both parties further agree that
Orange County, California, shall be the venue for any action or proceeding that may be brought or
arise out of, in connection with or by reason of this Agreement.
18. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder
and required by the laws and regulations of the United States, the State of California, the City of
Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and
in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and
exemptions. Said inability shall be cause for termination of this Agreement.
19. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement
shall be in writing and shall be deemed to be properly given if delivered in person or mailed by
first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in
the manner provided in this Section, to the following persons:
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To City:
Clerk of the City Cotincil
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax: 714- 647-6956
With courtesy copies to:
Executive Director, Mike Garcia
Community Development Agency
City of Santa Ana
20 Civic Center Plaza (M-26)
P.O. Box 1988
Santa Ana, California 92702
Fax:
To Contractor:
Eric Johnson
President
Revenue & Cost Specialists
1519 E. Chapman, Suite C
Fullerton, CA 92831
Phone:714-992-9027
Email: eric@revenuecost.com
A party may change its address by giving notice in writing to the other party. Thereafter,
any cormmunication shall be addressed and transmitted to the new address. If sent by mail,
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above. If sent by fax, communication shall be effective or deemed to have
been given twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating these
time frames, weekends, federal, state, County or City holidays shall be excluded.
20. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the
power, authority and right to bind their respective parties to each of the terms of
this Agreement, and shall indemnify City fully, including reasonable costs and
attorney's fees, for any injuries or damages to City in the event that such authority
or power is not, in fact, held by the signatory or is withdrawn.
b. The Agreement is the final and complete agreement and any prior or
contemporaneous agreements for similar services between the parties is superseded
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N-2023-023
by this Agreement. This shall not apply where the Parties are currently engaged
and Consultant is providing services not contemplated by this Agreement.
C. All Exhibits referenced herein and attached hereto shall be incorporated as if fully
set forth in the body of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: ° "l
Jose Montoya
Assistant City Attorney
Mike Garcia
Executive Director
Community Development Agency
CITY OF SANTA ANA
Kristine Ridge
City Manager
CONSULTANT:
Eric
Revenue & Cost Specialists
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EXHIBIT A
REQUEST FOR PROPOSALS NO. 22-155
FOR
RENT STABILIZATION AND JUST CAUSE EVICTION
ORDINANCE COMPREHENSIVE FEE STUDY
CITY OF SANTA ANA
KEY RFP DATES: The schedule below is tentative and subject to change at the
discretion of the City, with appropriate notice to prospective Proposers.
Issue Date:
Deadline for Requests for Information
Proposal Due Date:
Review of Proposals:
Friday, November 18, 2022
Monday, November 28, 2022 4:00 P.M.
Monday, December 5, 2022 4:00 P.M.
December 8, 2022
CITY OF SANTA ANA
EXHIBIT
SCOPE OF SERVICES
Consultant shall perform services as set forth below and deliver the final report to the City by no later
thanMarch 13, 2023:
II. Consultant shall conduct a comprehensive fee study to determine appropriate program fees that
would recover all program costs associated with services provided under the City's Rent
Stabilization and Just Cause Eviction Ordinance (Ordinance).
Program fees include but are not limited to a Rental Registry Fee and three petition fees (Fair
Return Petition, Capital Improvement Petition and Tenant Petition):
A. The Rental Registry Fee is to fund the City's cost to implement, administer, monitor,
support, and enforce the provisions of the Ordinance.
B. The Fair Return Petition is for a landlord to request a rent increase in excess of that
provided in the Ordinance in order to obtain a fair and reasonable return on their rental
unit(s).
C. The Capital Improvement Petition is for a landlord to request a pass -through cost to their
tenants to cover expenses incurred by the landlord to complete capital improvements for
their rental unit(s).
D. The Tenant Petition is for a tenant to request a review of a rent increase in excess of the
maximum amount allowed, to request a reduction in rent based on decreased housing
services, to request a reduction in rent based on failure of the landlord to maintain a
habitable premises, to contest a Capital Improvement cost as an unauthorized or
excessive pass -through, or for any other violation of the Ordinance by a landlord.
III. Consultant shall develop new program fees, rates, and charges. Consultant must perform the
following tasks at minimum:
A. Conduct interviews of appropriate City staff as needed to gain an understanding of the
Ordinance future processes and operations.
B. Incorporate the proposed Ordinance Work Plan when analyzing the fee structure in
relation to all employee roles and responsibilities.
C. Document the justification for the determination of each fee and its rate.
D. Review similar fees and applicability in comparable municipalities and document findings.
IV. Account for the most efficient way to implement the Ordinance in accordance with the following
principles:
RFP No. 22-155 RS/JCEO Comprehensive Fee Study Page 18 of 33
(a CITY OF SANTA ANA
A. The Rental Registry Fee will be as low and lean as possible as to avoid any unnecessary
burdens on tenants and landlords;
B. Analyze the efficiency and provide a cost comparison of utilizing a hybrid of services
between consultants and city staff; and
C. Identify and analyze ways to build upon other existing services across the City to
administer the Ordinance.
V. Present the following options as it relates to the fees associated with a Fair Return Petition, Capital
Improvement Petition, and Tenant Petition:
A. Financial impact of having petition fees separate from the Rental Registry Fee;
B. Financial impact of having petition fees included in the Rental Registry Fee;
C. Financial impact of having no petition fees.
VI. Report on other matters revealed during the course of your evaluation that the City should
consider addressing.
VII. Present all draft findings to the City for review. Present the final report and conclusions to the
City Manager and/or City Council for final approval and adoption of the new fees in the City's
Miscellaneous Fee Schedule.
VIII. Provide a completed draft report to be reviewed by the Community Development Agency team
prior to finalizing. The draft and final fee study report must include the following:
A. Justifications for the implementation of each new program fee and its applicable rate.
B. Recommendations regarding the implementation of fees based on the research and cost
analysis performed by the consultant, the consultant's knowledge and expertise of
municipal fees. The report must include a comparison of fees charged in other jurisdictions
with similar Rent Stabilization and Just Cause Eviction Ordinances, programs and
services.
C. Best practices for establishing new fees and a model or methodology to allow the City the
ability to calculate the estimated costs of providing any new services under consideration.
D. Propose the most efficient way to implement the Ordinance.
RFP No. 22-155 RS/JCEO Comprehensive Fee Study Page 19 of 33
EXHIBIT B
Proposal for the City of Santa Ana
RENT STABILIZATION AND
JUST CAUSE EVICTION ORDINANCE
COMPREHENSIVE FEE STUDY
1519 E Chapman Ave
Suite C
Fullerton, CA 92831
(714) 992-9020
www.revenuecost.com
EC -
PROPOSED WORK PLAN
All fee calculations begin with a cost allocation plan. The purpose of a cost allocation plan is
to distribute costs associated with centralized agency -wide support and management
services to the operating departments of the City that provide direct service to the
community. RCS will utilize the City's existing Cost Allocation Plan. If that is not available or
not current, we will calculate a general overhead percentage, which is less accurate yet still
defensible.
Next, RCS will review with staff the service costs
and propose a fee structure that will recover these
costs in the most equitable and efficient way
possible. The user fees will represent how
operations are conducted in the City, and may
involve flat fees, deposits, valuation -based fees, ,
step -increase fees, or a combination of these. The
eventual fee recommendations included in the
final report and master fee resolution will be
defensible, easy to understand, and be supported
by City staff.
The most important part of our work is performed
through a series of focused meetings with staff.
Face-to-face meetings commit staff to the timeline and
ensure that our study draws from the most knowledgeable person on the subject matter. A
series of meetings also gives City staff time to digest and reflect on the information
generated. RCS uses only company principals with more than 20-plus years of experience to
conduct these meetings, which makes the process quicker and the results more accurate. Our
process provides the City with well -documented and defensible service costs that will be
used to develop fees that comply with Propositions 4, 218 and 26.
We also identify 100% of the staff time on 100% of the services they provide. This gives City
staff a complete perspective on their time allocations instead of merely looking at time
allocations for individual services in a vacuum. These methods will ensure that City staff
feels confident about the data and, therefore, confident in supporting the results in public
hearings.
RCS' process will do more than calculate the desired user fees. We take a deep dive into each
and every fee, discussing its purpose, structure, legal defensibility, payment collection
effectiveness, and value to the community. Based on our 42 years of experience, we are
comfortable recommending the restructuring, addition and removal of fees to make it better
for the City.
Proposal - Rent Stabilization & Just Cause Eviction Ordinance Fee Study
Page 14
0
RCS' Comprehensive Fee Study Will Provide the Following
�l
Legal
Review
ry
4
Project Tasks
RCS' Proposal will perform all scope of work items listed in the City of Santa Ana Request for
Proposal. The task descriptions below further explain the steps and timeline of RCS' fee
study. The City's RFP shall prevail should there be conflicting language with RCS' proposal.
Task 1: Obtain Budget, Personnel and other Data
RCS will review and prepare necessary files for the project. This includes obtaining
and reviewing prior cost allocation plans, line -item budget details, salary schedules,
MOUs and fringe benefit details, ordinances, policies and procedures, and staff
reports.
Task 2: Identify Services and Allocated Resources
RCS will conduct a kick-off meeting with City staff explaining the operational
methodology of the study and the role of City staff. We will review any possible issues
that may arise as well as answer any questions from City staff about the process.
Through a series of focused meetings, RCS will interview personnel providing end -
user services to ensure that costs from all functional areas directly involved with a
service are included in the cost of that service. This component will form the bulk of
the time spent by staff. There will be four to five meetings with supervisory level staff
to create and verify the amount of time spent by staff on the services identified in the
task above. We do not ask City staff to do our job by filling out forms detailing where
they spend their time. This interactive process, and the fact that we will allocate 100%
Proposal - Rent Stabilization & Just Cause Eviction Ordinance Fee Study
Page15
of all Rent Stabilization Program staff, allows everyone to ensure that the information
being generated is valid and reliable.
Through the meetings with City staff, RCS will discuss all potential rent stabilization
program fees and fee calculation methodologies. We will also discuss workflow with
City staff, with the objective of developing processes and fees that are easily
understood by everyone and best fits the City of Santa Ana going forward. Task 2 and
Task 3 below will take the most time, as we take a deep dive into the requirements of
the City's Exhibit I - Scope of Services.
Task 3: Calculate Full Cost of Services
RCS will develop a fully burdened hourly rate for each program employee, including
salaries and benefits, miscellaneous operating service and supply costs, overhead
costs, debt service, and other direct costs as identified, which can be used for all
charging and costing processes.
Task 4: Prepare a Fee Survey
RCS will compare proposed fees with those charged by other comparable agencies
and provide the City with an easy to understand summary.
Task 5: Draft and Final Report and Review with City Staff
RCS will prepare a Draft Report that identifies the total costs for each service. RCS will
review this draft report with the City's Management team for final input on the fees
presented in the final report. Our reports clearly detail the fee descriptions, rate
recommendations, calculation methodology, program staffing, and projected
revenues and expenditures.
Based on staff input, RCS will prepare a Final Report, which include explanatory text
and summary tables to easily explain the results and the context. All recommended
fees will be in compliance with Propositions 4, 218, 26, and any other applicable laws.
All supporting documents will be provided to City at project completion.
Task 6: Public Meetings
RCS will participate in up to four public meetings to assist staff and the City Council
in the review and adoption of proposed rent stabilization service fees.
Proposal - Rent Stabilization & Just Cause Eviction Ordinance Fee Study
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0
PROJECT TIMELINE
RCS can begin work in December, and will present the Final Report to the City on or before
March 13, 2023. We will make ourselves available to attend any necessary public meetings
after the delivery of the final report.
Projet Timeline Dec Jan Feb Mar
2022 2023 2023 2023
Obtain Budget & Personnel Data
Identify services and Allocated resources
Calculate Full Cost of Services
Prepare a Fee Survey
Draft Report
Final Report
Public Meetings
ONSITE MEETINGS AND VIDEO CONFERENCING MEETINGS
RCS is available to be onsite at the City for the project kick-off meeting and all working
meetings occurring the same day. RCS Partner(s) will also be present at all public meetings
involving the City Council.
RCS will utilize our Zoom account, or any video conferencing platform of the City's choosing,
to facilitate all other working meetings. Our experience has determined that the use of video
conferencing is more flexible in scheduling meetings, permitting City staff to quickly access
reports and files on their computers, and allowing everyone to view and discuss the same
documents at the same time.
CLIENT INPUT
RCS will make every effort to advise, seek input from and, in general, explain the work as it
is being performed. For a project to be completed successfully, we depend on dedicated and
engaged staff participation. Most of the staff participation is to attend working meetings with
RCS. There will be no "homework" to be completed and returned to us.
The City should also designate a Project Manager for the fee study who will:
1) Identify key City staff and coordinate the kick-off meeting(s)
2) Assist in obtaining requested information
3) Coordinate the review of draft reports, and
4) Provide project direction if needed
Proposal - Rent Stabilization & Just Cause Eviction Ordinance Fee Study
Page 17
FE
COST PROPOSAL
RCS is pleased to provide Santa Ana with the following project costs and
milestones/deliverables, with a NOT TO EXCEED AMOUNT OF $34,300.
Obtain Budget & Personnel Data
Summary Schedules
8
1,400
Identify Services & Allocated Resrouces
Time Detail Reports
80
14,000
Calculate Full Cost of Services
Fully Alloc. Hourly Rate Reports
16
2,800
Prepare a Fee Survey
Survey Summary Report
24
4,200
Draft Report
Draft Fee Study Report
40
7,000
Final Report
Final Report
16
2,800
Council Meeting & Public Hearing
Public Meetings
12
2,100
The above proposal is based on a cost of $175 per hour. No additional work shall be
performed by RCS, unless approved in advance, in writing, by the City. The billing rate for
any additional work not covered by this proposal would be $195 per hour.
Our proposal covers all costs except for the following additional costs that the City may incur:
• Meeting attendance beyond those identified in this proposal.
• Printing of reports beyond those stated in the RFP.
Proposal - Rent Stabilization & Just Cause Eviction Ordinance Fee Study
Page 18
Court, Sara
From: City of Santa Ana <certificate-request@ctrax.jdidata.com>
Sent: Monday, January 23, 2023 9:10 AM
To: eric@revenuecost.com; mstrohman@kessleralair.com; Court, Sara
Subject: Internal Notice of Compliance
NOTICE OF COMPLIANCE
CITY STAFF: PRINT THIS PAGE AND INCLUDE WITH AGREEMENT TO THE CLERK OF THE COUNCIL
Contractor Revenue & Cost Specialists, LLC
Name:
Project TBD (034)
Number:
Project Consultant Agreement Between The City Of Santa Ana And Revenue &
Name: COst Specialists, LLC For A Rent Stabilization And Just Cause Eviction
Ordinance Comprehensive Fee Study
The Certificate of Insurance (COI) submitted indicates that the coverages are in compliance with the
insurance requirements. No further action is required at this time.
The compliant coverage(s) are:
TYPE OF INSURANCE
AUTOMOBILE LIABILITY
GENERAL LIABILITY ..
PROFESSIONAL LIABILITY
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
POLICY
NUMBER
PHBX20001810
PHBX20001810
PHSD 1684113
EIG298014203
EXPIRATION
DATE
12/31/2023
12/31/2023
COI DATE
01/03/2023
01/19/2023
12/31/2023 01/03/2023
12/31/2023 01/03/2023
FILE NAME
Revenue & Cost
Specialist - City
of Santa Ana
Cert.pdf
Revenue & Cost
Specialist -
Updated City of
Santa Ana
Cert.pdf
Revenue & Cost
Specialist - City
of Santa Ana
Cert.pdf
Revenue & Cost
Specialist - City
of Santa Ana
Cert.pdf
Thank you,
City of Santa Ana
Risk Management Division
in partnership with
CTrax Plus Services Team
1/23/202312:09 PM