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HomeMy WebLinkAbout82-03 RESOLUTIONRESOLUTION NO. 82-03 • A RESOLUTION APPROVING A CONTRACT WITH MAXIMUS, INC. IN THE AMOUNT OF TWENTY-SEVEN THOUSAND TWO HUNDRED FORTY DOLLARS ($27,240.00) FOR A USER FEE STUDY AND COST ALLOCATION PLAN SERVICES; AND APPROVING A PROJECT CONTINGENCY IN THE AMOUNT OF TWO THOUSAND SEVEN HUNDRED SIXTY DOLLARS ($2,760.00). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a contract with Maximus, Inc. in the amount of Twenty -Seven Thousand Two Hundred Forty Dollars ($27,240.00) for A User Fee Study and Cost Allocation Plan services. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a project contingency in the amount of Two Thousand Seven Hundred Sixty Dollars ($2,760.00). PASSED and APPROVED this 3rd day of June, 2003. By: 44-111 SONDRA SMITH, City Clerk APPROVED: By: DAN COODY, May, • • AGREEMENT TO PROVIDE PROFESSIONAL CONSULTING SERVICES FOR THE CITY OF FAYETTEVILLE, ARKANSAS THIS AGREEMENT, entered into this 31-J day of . LAMA. 2003 , and effective immediately by and between MAXIMUS, INC. (hereinafter called the "Consultant"), and City of Fayetteville, Arkansas (hereinafter called the "City"), WITNESSETH THAT: WHEREAS, the City has programs which operates with outside funding, and WHEREAS, the City supports these programs with support services paid for by City's general funds, and WHEREAS, outside users will pay a fair share of these costs if supported by an appropriate cost allocation plan or fee study, and WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced in the requirements of developing and negotiating such governmental cost allocation plans, and WHEREAS, the City desires to engage the Consultant to assist in developing a comprehensive user fee cost recovery system. NOW THEREFORE, the parties hereto mutually agree as follows: 1. Employment of Consultant. The City agrees to engage the Consultant and the Consultant hereby agrees to perform the following services. 2. Scope of Services. The Consultant shall do, perform, and carry out in a good professional manner the following services: A. Review the City's current cost allocation matrix for appropriateness and make recommendations to improve the cost allocation methodology, bases, and procedures, and make recommendations to improve the process. B. Perform a comprehensive user fee study including a schedule of current fees and charges, a cost revenue analysis, a determination of the current cost of services delivered, an identification of the unit cost for each service and the revenue potential for each existing fee, an identification of new fees for possible implementation and their associated revenue potential. Page 1 of 5 • • C. Design and implement a cost recovery system for use by the City's personal computers. D. Provide training for City staff in the use of the cost recovery system and provide program technical support for one year following acceptance of the final product. E. Present findings of study to the City Council and the public at a regularly scheduled Council meeting 3. Time of Performance. The services to be performed hereunder by the Consultant shall be undertaken and completed in such sequence as to assure their expeditious completion and best carry out the purposes of the agreement. All services required hereunder shall be completed each year within four (4) months after the notice to proceed by the City, depending upon availability of data and City staff schedules. This contract shall terminate December 31', 2003 4. Compensation. The City agrees to pay the Consultant a sum not to exceed Twenty Seven Thousand Two Hundred Forty Dollars ($27,240) for all services required herein, which shall include reimbursement for expenses incurred. Consultant agrees to complete the project and all services provided herein for said sum. If the Consultant is not required to make the presentation of findings to the City Council as described in paragraph 2E, the City shall be entitled to a fee reduction in the amount of One Thousand Three Hundred Dollars ($1,300). 5. Method of Payment. The Consultant shall be entitled to payment in accordance with the provisions of this paragraph. Upon delivery of draft plans, Consultant will invoice the City for $10,370. Upon delivery and presentation of the final user fee study, the Consultant will invoice the City an additional $10,370. Upon the completion of training and delivery the MaxCars cost recovery system, Consultant will invoice the City for $6,500. Payments are due within 30 days of receipt of each invoice. 6. Changes. The City may, from time to time, require changes in the scope of the services of the Consultant to be performed hereunder. Such changes, which are mutually agreed upon by and between the City and the Consultant, shall be incorporated in written amendment to this agreement. 7. Services and Materials to be Furnished by the City. The City shall furnish the Consultant with space and all available necessary information, data, and materials pertinent to the execution of this agreement. The City shall cooperate with the Consultant in carrying out the work herein, and shall provide adequate staff for liaison with the Consultant and other agencies of City government. 8. Termination of Agreement for Cause,. If, through any cause, the Consultant shall fail to fulfill in timely and proper manner his obligation under this agreement, the City shall thereupon have the right to terminate this agreement Page 2 of 5 • • with cause, by giving written notice to the Consultant of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination. 9. Information and Reports. The Consultant shall, at such time and in such form as the City may require, furnish such periodic reports concerning the status of the project, such statements, certificates, approvals, and a set of copies of proposed and executed plans and claims and other information relative to the project as may be requested by the City. The Consultant shall furnish the City, upon request, with copies of all documents and other materials prepared or developed in conjunction with or as part of the project. 10. Records and Inspections. The Consultant shall maintain full and accurate records with respect to all matters covered under this agreement. The City shall have free access at all proper times to such records, and the right to examine and audit the same and to make transcripts therefrom, and to inspect all program data, documents, proceedings, and activities. 11. Accomplishment of Proiect. The Consultant shall commence, carry on, and complete the project with all practicable dispatch, in a sound economical and efficient manner. In accomplishing the project, the Consultant shall take such steps as are appropriate to insure that the work involved is properly coordinated with related work being carried on in the City. 12. Provisions Concerning Certain Waivers Subject to applicable law, any right or remedy which the City may have under this contract may be waived in writing by the City by a formal waiver, if, in the judgement of the City, this contract, as so modified, will still conform to the terms and requirements of pertinent laws. 13. Matters to be Disregarded, The titles of the several sections, subsections, and paragraphs set forth in this contract are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of the provisions of this contract. 14. Completeness of Contract. This contract and any additional or supplementary document or documents incorporated herein by specific reference contain all the terms and conditions agreed upon by the parties hereto, and no other agreements, oral or otherwise, regarding the subject matter of this contract or any part thereof shall have any validity or bind any of the parties hereto. 15. City Not Obligated to Third Parties, The City shall not be obligated or liable hereunder to any party other than the Consultant. 16. Indemnity,. Consultant shall indemnify and save harmless the City against any and all claims, demands, suits or judgements for sums of money to any party for injury or damages to persons or property growing out of, resulting from or by reason of any negligent acts or omissions by the Consultant, its agents, servants Page 3 of 5 • • or employees while engaged upon or in connection with the services required or performed by the Consultant hereunder. Consultant shall additionally indemnify and hold the City harmless from any and all claims and/or liens for labor, service, or materials furnished to the Consultant in connection with the performance of the Consultant's obligation under this agreement. 17. When Rights and Remedies Not Waived. In no event shall the making by the City of any payment to the Consultant constitute or be construed as a waiver by the City of any breach of covenant, or any default which may then exist, on the part of any such breach or default exists shall in no way impair or prejudice any right or remedy available to the City in respect to such breach or default. 18. Personnel. The Consultant represents that he has, or will secure at his own expense, all personnel required in performing the services under this agreement. Such personnel shall not be employees of or have any contractual relationship with the City. All of the services required hereunder will be performed by the Consultant or under his supervision, and all personnel engaged in work shall be fully qualified to perform such services. 19. Litigation. By entering this agreement Consultant waives jurisdiction and venue and submits to the jurisdiction of the City of Fayetteville, Arkansas, regardless of Consultants residence or domicile. Consultant agrees that said court shall be the exclusive jurisdiction for any suits, actions, claims or demands arising out of or in connection with this agreement. 20. Consultant Liability if Audited. The Consultant will assume all financial and statistical information provided to be accurate and complete. Any subsequent litigation or disallowance of funds paid to the City under the user fee plan is the sole responsibility of the City. 21. Copyrighted Materials. Consultant's report developed pursuant to this contract shall be provided to Client. Copies shall be retained by Consultant. Client acknowledges that the report format to be provided by Consultant is copyrighted. Consultant shall insure that all copies of its report bear the copyright legend. Client agrees that the right, title and interest in and to the copyright materials lies with the Consultant. Client may use the report solely for and on behalf of the Client's operations to maintain accounting records and/or to monitor program costs against state or federal budgetary ceilings. Client agrees not to reproduce, publish, use or otherwise distribute the report except as provided by this contract. Client further agrees that it will take appropriate action by instruction, agreement or otherwise with its employees to satisfy its obligations with respect to use, copying, protection and security of the report format. Consultant shall retain all records related to this contract for three (3) years following termination, during which the Client has the right to audit such records at its election. 22. Assignment, The parties hereby agree that Consultant may assign, convey or transfer its interest, rights and duties in this Agreement to an affiliated Page 4 of 5 • • company or its parent company which succeeds to substantially all of the business of the Consultant. 23. Notices. Any notices, bills, invoices, or reports required by this agreement shall be sufficient if sent by the parties hereto in the United States mail, postage paid, to the addresses noted below: City of Fayetteville c/o Kevin Springer 113 West Mountain Street Fayetteville, Arkansas 71701 Payment Address: MAXIMUS, INC. P.O. Box 791188 Baltimore, Maryland 21279-1188 Correspondence Address: MAXIMUS INC. 940 North Tyler Road Suite #204 Wichita, Kansas 67212 IN WITNESS WHEREOF, the City and the Consultant have executed this agreement as of the date first written above. Signature: Name: Dan Coody CITY FAYE VILLE Title: Cl/Vt.-a-010 V MAXIMUS, INC Signature: Name: Title: vice President Page 5 of 5 F1'e. Trtt117MICIROFILM•ED Sicceer DEPARTMENTAL CORRESPONDENCE �[Vd`o3 TO: Mayor Dan Coody and Department Directors THRU: Hugh Earnest, Chief Administrative Officer Steve Davis, Finance & Internal Services Director/ FROM: Kevin Springer, Budget Manager DATE• September 17, 2004 SUBJEC r: Draft User Fee Study — Request for Corrections Please find attached an Executive Summary that presents the results of a study, conducted by Maximus, Inc., of the full cost of services provided by the City of Fayetteville, Arkansas, for services for which user fees are currently being charged or might by charged. Each fee section has the responsible Department Director listed. Please review the listing to make sure that you are responsible for the fee sections marked. Please let me know as soon as possible if any mistakes were made. For each fee area that you are responsible for, please review and make sure that everything is correct. In addition, please address any of the comments that were made by Budget & Research staff. Feel free to distribute the listing to your division heads for completion but make sure that all items under your direction go through you back to Budget & Research. The information developed will be presented to the City Council Ordinance Review committee during October 2004. The requested timeframe for completion of your user fee study section is Friday September 24, 2004. If you have any questions or comments about any of the information I have given you, please don't hesitate to contact me. Also, if you require any assistance from either me or my staff, please let me know. Thank you for your attention to this matter. RECEIVED SEP 1/200} CITY OF CITY CLERK'S OFFICE C T • c(pst -. 3 (D a c m°R co c o a n c N o R N CCD N C -. o, C (D n =- n c,"m CL v• n of n ID u (ro c0 a y 0 0 rt 0 ama g o q '< n o, • c 3 (-00o c 0 Oa rtte.Oi 0 • 4 0 C O aD_g•nro n ffi 4 ^7. 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V tD A N 0+ • 4 4, AA AO !' w ^ -EA N Hl AA.AA V 01 i r 1R 01 OD r ,'.0 Na A r QOi O co W p0' W tNJ1 al 01 r pWp r W In A v a O O .A v NI 1-s tD Ja NJ V VI NJ uois!A!a/3uaugwedaa Apisgns;ua.unD QQr 01 7 n (p 7 0 O O N 1 n � 7 f 7 C (D Cu 7 N n o • a 9 o 5 Nc c S U N O d 5 c n <(Dmg N '< N a 01 n c 01 n S O, N 01 c a 0) a o 5 (7, (D 2 CI :. ((DD N 11 1lM 1-s tD r CO e s! nnolaq palm A • • i 3 m m th U l0 (dd /) el - (1) r 0. d O U VN_ n In rtO1 S N (D r' n (D O 7 U U • O 7G C y, 7 C � ((DD O in ozrr d N nn rr o N r7r ny 7 `G UZIo -11 3 01 CD 01 • roto 00) 0) N 5 S (D O_ N 7) 0) -h O C (D (D co n at 0. 3 0 c(0 ✓ t CD d a 0 ns which can enhance revenues from these ino 3o s4insw auj K 0.c 7 0_ 0) fro 0101 rt U O O_ l0 ((0 2 ((0 S (D N CU 2 7 7 3i d 7 n 0 7 n c N 0_ S n d 2 7 rg. 0- (D 7 l0 2 O (D 3 0 S.N31010D ONISO13 0. d S n d m (D m in 0 n- cu 0. • rp • (D X O_ o 7 to, 7i O 0- 11' m n 7 w (0 s C N G O CU a,-3 (D O- rr d (D ..y, Vdi Q O O d nD n " CD v (0 C rr (D 0- 0 -1D • 0_ N -0 7 0. w 7 CD d n • = S O N (D -n N in 3 co • 7 X n CL C n 3 N. - at n > 3 ( r' o C CD • `^ rt c n D d n rt 0. K rt 0 (d%) O 00) ((D N (OD crrie M N N O = 7 S O (D d rr U1 z -01:1 �O C o ▪ 3 -1(D5 5 l0 co � n (n T N O O • d O 7 7 7 0 (p_ , -o+, Q. rt (D d S -0 7 n S ✓ r Accurate user fees can create a "rationing" of services and allow for the measurement of true market demand. User fees are paid by all service users, including those exempt from certain taxes. Providing certain public services at an amount equal to their full cost can have numerous benefits to both the City and its citizens: • tO 0 3 2 E ^ ) o 3' n $ ; E \ / § c / ro / \ \ o \ \ ,a \ a. ric ro / 0 \ / ro ro3 ueD sae; Jasn 3 3 \ 113FDICU) •ainssaid anuanaJ • ¥ CD ®U* »2 iƒ ; I�n, §-J ), c�&# o ca 0 7 § [ % /2 O\/ o® 3 / /7 n3_ al » n � z2f t2rt a {CL ( ° Ft. \ \ fD CV 7Cii-2 Cr � � c rD 7 $ E : _ \) co \) /\ 77 NOI1JflUOalNI 'I • • pn 701rt 7 - 0_ cr d (D N O N 7 O rt 3 `O 3 n- o O m (D N rr (D (D N N X -1 -n N 0 in CO n CA O N N N 3 (n o rr 0 rt l0 N n O O OC N < CD (D 3 3 z • �• rD -IaC ' < 0 c mrD (D 3 TT oo r, W m m ' a . c In G. o � '< a (D 3 c v cn CA of obi a 0 - in N N Vf (D (D O d N N X pj (nCD V' o O G (DCD 3 3 O 3 3 (D D_ rr 'o ?(D O c N to rr O 3W 3 (D O_ fD om n 3 a) va < r of (D 03 M n (D •p fD rr o 0 s � � rr A 10 C °i 'o CD (D w nn d o cm tal n vii O v() n A computer based cost analysis was completed which compares service costs per unit to revenue amounts o D o o v K 0 01 V n d n a o 3 to0 n M r m N G N't 0 ori 0) O 0 7 v 0l 7 a N (D mg 0 0l v 0 0 5 l0 0 c 0l m OI m 0 rci(D 3- d Q. • 0l .. ro <• z N N 2 3 0) 7 0) l0 CD3 (D 7 01 7 0 O U (D 0) O 7 0) s;uaupedap aDpuas panp . Extensive data collection and research were accomplished in all central service departments of the City, as well as in the 0 0l o o a 0 0l 9 3 7 (D CL rr ((DD o 0 (=D 3 0 rt r- 0 N 3 7 (D N. 3 o 3 N N• (D 0 (o O o alCt .p 3 f D /r n n 0 1 _a n vi rN� C (.7). N 0 13 O N . D1 N d (0 N 3. n r m N 3 g• Q d C roin }0u0 0 `° 3 a n' 3 0 fD 7 v 00 6 —1 • o o nae 17). c c m C 7 I F • N j 3 0. c N 3- 3 7 01 N U re 1 S (NY • rt d 7• g. m tin N (o o Gr O U n a 0) — — 0 Q 3 a (0 a ."< N a d 01 ET 0 C N A.VV' tri = 2 0 N 01 n N N• 01 O)� o 3 3 • S; 0 0l 0 O 3 (D a.mseaw an.q e 5 (p 7 X r+ a = c (ft 7(D G _ n 7 O N 3 3 CD al 0 ^ m a = o O' 0 t0 o_ n N S d n m N R 2 N - g rD n e cu r=i 7 0 m O K O __. 0l 0 0 c = 7' N la O n no a c (D1 0 o (D Nn 0 3 a 1� N 2 U 7 0l =. d N 7— a V) x l 00) N In o 0 7 O 0zT o • rt 1Y II. APPROACH AND METHODOLOGY • • n o j d j m J n m o Ej rD (D (7) rt a N fD o o v D .�' (rtD vOi 7 rt 'a ro * 3 v^ a x a (D O o1 O 4 n a" CD 0 d N 0 N (D C O ('p C N C_ (gyp V1 O (D rt• 5 8 0- V a Dl 5 D O iii g rt n n rt m < c % m -i m 01 0 n 3 °rt' 1n Ort 4 C 'a 0 (p n d• S n 0 N 3 O rt 7 rt ri- O 0 7 O O n Sm c m 3 oP o m M. -1 0 O S ID Z rt • O O r0_r, <. - n h fp N 0 O n U 0 7 (D p CI)a 0 0 p V1 0 (SD 7 d (D 1011 7 0 1n C (D N rr (D r 0 (D U d C 0 O N a• O 0 n. nn 0 n c (D th rt N d 0 (D 00 N n O (0 Orr N N 3 N 0 * rt j 4 N S C r0r 6 (, - n 7- (D N rt N 0 1 d n 0 fn' n rr 3 n Z min ai oin -s c o a 0 - CT ''t 5 iv co n 0- N o -h rt O o Ort s a o rt U S d 0 1C/1 S O (p l co co o1 mo p. d N o(rtD 0O m V1 m -aa 3 0 3 3 (co c to O- D nl 01 r+:- pn X re: U , '"'1 C (D 0 (p C cu (D (eV( ,i. (n (D Or0_r 0 7 N ao n v1 N 0) O > 0. 3 Oa n X =f,0 2• nS C r a N l0 (n C < R l7 D1 n. o. n rt C O D 10 N A. 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N OT 0 0 m rt a 3 -o a m m n tn c m n 0 0) T rt 3o o m T o o n m b N ci < C El O ' l(0 T mC 0 m Cr m CO r N O g d d10 N 0 3 m o m 2 m n 0 m N d to � m 0 0 CD d ((D N m ox c a t0 0 m d n a 0 0 c O tn N o m d 0 3 d o- 0. 0. d U (D O c b b m a c a to m 5ai 7 d a 0 a 3 O C N m 0 m ox, 3 a m • • 1.1 Concurrent Plat: Non Res 1.2 Concurrent Plat: 10 or Less Res 1.3 Concurrent Plat: 11-25 Res 1.4 Concurrent Plat: 26+ Res 2 Concept Plat 3.1 Final Plat: 10 or Less Res 3.2 Final Plat: 11-25 Res 3.3 Final Plat: 26+ Res 3.4 Final Plat: Non Res gi Z 2 r r w r 0 n2 g N yt N N N i-` /-` r 0 0 O O 0 0 0 O 0 o L/10 O O 0 0 O 0 O O 0 0 O 0 o O o N 0 N in La yt -coA A W 0 0 Va w r 0 Vf IA t+ r V O 0 0 Y b 0 iR r> S 0 441 0 N V o C rli N O 5 W a W 5 a V w N 5 o 0 A to 0 W A 0 A N 0 A to 0 Current Recovery % W 411- 00 O O O O A O O N iP O O O O O 0 O 0 N O 0 0 0 0 C T g N A CAL -to 5 O i+ m in O 404A- V Vwi in O 4. r N 0 _0A V O O O O O -69- N b O O M N AAp '.D O O iA N A -~-` w w *Vr ...aO P 5 O Fee @ Full Cost an H N to - W A V 55 O O O +n N V O +n 4. w 0 V 0 O O O VI 3.0 O Y 0 VD +w w w A O 4A. 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(0 E � o c m Y Y Y Y Y Y O O G G C O O O O a O O O O O O In p r N N N N N N ID Y C W m o 0 0 0 0 0 o Oo IO O O O o O O O (U 4. I- 0 • m w y'Ac O Ib m In In In In In In (1 O N Y a T U, Vi U' Vi In U, C R N N m m m m m m m m V c o Lu w w w w w w o S o a o 0 0 0 0 o •2 N m Ii O O O rn w 0 C OJ OD V1 in IA 01 VI In O O Y Y Y Y Y Y 0 In VI IA In In to o o o a a a a a a O a mj S d n m Ch art +w +n 4. u• +n an A < In N V V V V V V 3 N Q1 A V a In VI In 01 01 Vi rt (D 0 0 § [ » J « z § \■ \ \%f�-- } c / C 0 Er ( § R t 2 ? - ; { I . < • » » a * R \ m / } k \ In 1 & o y I / }a ° ^ ° (An \ 0 A 0 / \ 0o Dl _ k rt 0 [ \ / \ \ / \ ! OCD 0 / In } \ / } p / a a f % fl / / / -'\ 21. g \ El § & 8 2 J 7 E § •-' c - 2 0 \NJ i \ / c rt \ / i • CD \ } CD E - - \ \ \ ( / 0 \ FAYETTlVILLE THE CITY OF FAYETTEVILLE. ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: THROUGH FROM: DATE: Subject: Brenda Thiel, Alderman, and Chair - Ordinance Review Committee Don Marr, Alderman - Ward 2 Conrad Odom, Alderman - Ward 3 Robert Rhoads, Al an - Ward 3 Dan Coody, M Stephen Davis, Finance & IWn, November 16, 2004 Executive Summary — User Fee Report Director,) Attached is a copy of the Executive Summary of the User Fee Study prepared by Maximus, Inc. This report remains a draft report because there are at least three areas that need further review: Billing & Collections - page 25 The items listed are more related to non-payment of utilities or for returned check charges due to presenting checks for payment that arte returned for non -sufficient funds. These items do not fall within the traditional meaning of the term — user fee. • Alcoholic Beverage & Privilege Permits - page 41 The consultant refers to these permit fees as "not true fee -for -service areas." These permits are a combination of initial and renewal permits. The cost captured in the draft report does not appear to capture any cost from the Police Department. • Building Safety - page 44 These cost reflected by these fees needs to include Building Safety, a portion of Planning and a portion of Billing & Collection. A review must be conducted to determine if costs from each of these areas has been properly accounted for. The proposed process for this user fee update is multi -part: • Determine the City's policy for subsidy in each fee area; • Develop enabling ordinances adjusting the various user fees; and, • Implementation of adjusted fees. Cc: Robert Reynolds, Alderman, Ward I Kyle Cook, Alderman, Ward 2 Lioncld Jordan, Alderman, Ward 4 Shirley Lucas, Alderman, Ward 4 Kit Williams, City Attorney Kevin Springer, Budget Manager CD -J C O Cr 3 m 3 a Co d (Y C a N C Cr N o ^ (D C ^ m CD T N N C a = n CD C ao ° N (D N. 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S �G �G r. O x Cr N D CD T O -< < a CS J m p O CD 2 d in CDD .C.. .C. (J CD m d S Y J (D - C? O J (1) N - a) CD Q (n O 0 00) d + ^ ^ C n C y (D d d C j 0 C C)..' N d W O n c N 0 CD - S Cr ^ N (gyp d < O N CD 0 to O ^ : Cr 0 • C C p n 0 0 CD ^ S S J Cr S S Cr . . Cr _ (D d N CD CD -c CD 0 to Ol 0O0 n CD CD CD n -O C Cr Cr N n D a) 0) n (-D CD d -' d n CD CD C Cr Cr J D S S • 0 0 S CD = 5- (4 0 J J 0 NAME OF FILE: Resolution No. 82-03 CROSS REFERENCE: Itam S Date Document 1 06/03/03 Res. 82-03 w/agreement 2 05/20/03 staff review form draft resolution memo to City Council copy of draft agreement letter to Steve Davis 3 06/11/03 memo to Kevin Springer NOTES: SOF REVIEW FORM - FINANCIAL OBLI:ION rt4.l¢ f .JVG X AGENDA REQUEST X CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council Meeting of: June 3, 2003 FROM: Kevin Springer Budget & Research Finance & Internal Services Name Division Department ACTION REQUIRED: Contract approval with Maximus, Inc. for a User Fee Study and Cost Allocation Plan Services in the amount of $27,240 and a contingency for $2,760 for a total of $30,000. The contract will provide the City with what it costs to perform current services, identify new revenue sources, and provide a cost allocation plan as well as the software to the City for future updates to be performed by staff. COST TO CITY: $30,000.00 Cost of this request 1010.1330.5314.00 Account Number 30,000.00 Category/Project Budget Funds Used to Date User Fee & Cost Allocation Plan Program Category / Project Name Other Capital Improvements Program / Project Category Name 03023.1 $ 30,000.00 General Project Number Remaining Balance Fund Name BUDGET REVIEW: Budgeted Item Budget Adjustment Attached Budget Manager Date CONTRACT/GRANT/LEASE REVIEW: - ____S/it/03 O 5 f 1(o3 Accounting Manager Date Internal 1i orDate City Att ney Da a Purc Manager Date Division Head Date Department Director Date Finance & Internal Services Dir. Date Chief ___________01 Cer Date Mayor / Date Received in Mayor's Office Date Cross Reference; Previous Ord/Res#: Orig. Contract Date: Orig. Contract Number: New Item: Yes No FAYETTEV?LLE THE CITY OF EAYETTEVIIIE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Kevin Springer Budget & Research Division From: Clarice Buffalohead-Pearman City Clerk's Division Date: 6/11/2003 Re: Resolution 82-03 Attached hereto is an executed copy of the above resolution passed by the City Council June 3, 2003 approving a contract Maximus, Inc. for a user fee study and cost allocation plan services. I am returning to you one original signed contract and one original signed copy along with this resolution will be microfilmed and filed with the city clerk's office. If anything else is needed, please let the city clerk's office know /cbp Attachment(s) cc: Nancy Smith, Internal Auditor FAYETTEtILLE • THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: City Council THRU: Dan Coody, Mayor Hugh Earnest, Chief Administrative Officer Stephen Davis, Finance & Internal Services Directo j FROM: Budget & Researc DATE: May 12, 2003 SUBJECT: Approval of a contract with Maximus, Inc. for a User Fee Study and Cost Allocation Plan Services Background During the 2003 budget process, staff identified the need to have the user fees updated to provide options to City Council for overall funding opportunities. The last user fee study was performed in 1991. Since then, some of the user fees, currently charged by the City, were updated in 1996/1997. Current Status This will be the first comprehensive user fee study undertaken by the City since 1991. The information from this study will provide City Council with the full cost of services. A determination can then be made if the City wants to provide the service as a taxpayer provided service (no fee) or a full fee service. A selection committee met on April 11 to discuss the RFP for a User Fee Study/Cost Allocation Plan. Approval of the RFP resulted in the advertisement being placed in the Arkansas Democrat Gazette. In addition, three leading firms that specialize in this area were mailed RFPs. All advertising/mailings were in accordance with City policies. The City received one response from the RFP from Maximus. Inc. Additionally, this contract will provide the City with a windows based cost allocation plan that will replace the City's DOS based software package. The new cost allocation software complies with all current federal guidelines. The current budget for the User Fee Study/Cost Allocation Plan is $25,000. The proposal received from Maximus, Inc. to conduct the study and provide the software is for $27,240. Staff requests adding a contingency of $2,760 for a not to exceed amount of $30,000. The contingency is for two extra public hearings at $1,300 each and funds for advertising the meetings, if needed. The increase in the project budget is from the Budget & Research Division's Salaries & Wages account due to a position vacancy of five months. Recommendation The selection committee recommended approval of the contract with Maximus, Inc. for an amount not to exceed $30,000. Staff Review Form - Page 2 Description Comments: Budget Manager Accounting Manager City Attorney Purchasing Manager ADA Coordinator Internal Auditor Grants Coordinator Meeting Date June 3, 2003 Reference Comments: RESOLUTION NO. A RESOLUTION APPROVING A CONTRACT WITH MAXIMUS, INC. IN THE AMOUNT OF TWENTY-SEVEN THOUSAND TWO HUNDRED FORTY DOLLARS ($27,240.00) FOR A USER FEE STUDY AND COST ALLOCATION PLAN SERVICES; AND APPROVING A PROJECT CONTINGENCY IN THE AMOUNT OF TWO THOUSAND SEVEN HUNDRED SIXTY DOLLARS ($2,760.00). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a contract with Maximus, Inc. in the amount of Twenty -Seven Thousand Two Hundred Forty Dollars ($27,240.00) for A User Fee Study and Cost Allocation Plan services. Section 2. That the City Council of the City of F yC e, A kansas hereby approves a project contingency in the amou t o us n • Seven Hundred Sixty Dollars ($2,760.00). PASSED and APPROVED .� 3rd day o9 i n 2003. DAN COODY, Mayor SONDRA SMITH, City Clerk AAMMUS HELPING GOVERNMENT SERVE THE PEOPLE• May 15, 2003 Stephen Davis Finance & Internal Services Director City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 Dear Mr. Davis: Per the request of Kevin Springer, enclosed please find two signed original User Fee & Cost Allocation Plan contracts for the June 3`d City Council meeting. If you have any questions, or require additional information from us, don't hesitate to contact me. Sincerely, MAXIMUS Inc. Bret Schly r Manager - Cost Allocation Services bretschlyer@max1mus.com 316-729-0732 cc: Kevin Springer - City of Fayetteville 940 N. TYLER ROAD • SUITE 204 • WICHITA. KS 67212 • 316.729.0732 • FAX 3/6. 729,olii 9 • • AGREEMENT TO PROVIDE PROFESSIONAL CONSULTING SERVICES FOR THE CITY OF FAYETTEVILLE, ARKANSAS I THIS AGREEMENT, entered into this day of 200, and effective immediately by and between MAXIMUS, INC. (hereinafter called the "Consultant"), and City of Fayetteville, Arkansas (hereinafter called the "City"), WITNESSETH THAT: • WHEREAS, the City has programs which operates with outside funding, and WHEREAS, the City supports these programs with support services paid for by City's general funds, and WHEREAS, outside users will pay a fair share of these costs if supported by an appropriate cost allocation plan or fee study, and WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced in the requirements of developing and negotiating such governmental cost allocation plans, and WHEREAS, the City desires to engage the Consultant to assist in developing a comprehensive user fee cost recovery system. NOW THEREFORE, the parties hereto mutually agree as follows: 1. Employment of Consultant. The City agrees to engage the Consultant and the Consultant hereby agrees to perform the following services. 2. Scope of Services. The Consultant shall do, perform, and carry out in a good professional manner the following services: A. Review the City's current cost allocation matrix for appropriateness and make recommendations to improve the cost allocation methodology, bases, and procedures, and make recommendations to improve the process. B. Perform a comprehensive user fee study including a schedule of current fees and charges, a cost revenue analysis, a determination of the current cost of services delivered, an identification of the unit cost for each service and the revenue potential for each existing fee, an identification of new fees for possible implementation and their associated revenue potential. El Page I of 5 ri I 1 I I I 4. Compensation. The City agrees to pay the Consultant a sum not to exceed Twenty Seven Thousand Two Hundred Forty Dollars ($27,240) for all services required herein, which shall include reimbursement for expenses incurred. Consultant agrees to complete the project and all services provided herein for said sum. If the Consultant is not City Council described in required to make the presentation of findings to the as paragraph 2E, the City shall be entitled to a fee reduction in the amount of One Thousand Three Hundred Dollars ($1,300). C. Design and implement a cost recovery system for use by the City's personal computers. D. Provide training for City staff in the use of the cost recovery system and provide program technical support for one year following acceptance of the final product. E. Present findings of study to the City Council and the public at a regularly scheduled Council meeting 3. Time of Performance. The services to be performed hereunder by the Consultant shall be undertaken and completed in such sequence as to assure their expeditious completion and best carry out the purposes of the agreement. All services required hereunder shall be completed each year within four (4) months after the notice to proceed by the City, depending upon availability of data and City staff schedules. This contract shall terminate December 31, 2003 5. Method of Payment. The Consultant shall be entitled to payment in accordance with the provisions of this paragraph. Upon delivery of draft plans, ' Consultant will invoice the City for $10,370. Upon delivery and presentation of the final user fee study, the Consultant will invoice the City an additional $10,370. Upon the completion of training and delivery the MaxCars cost recovery system, Consultant will invoice the City for $6,500. Payments are due within 30 days of receipt of each invoice. I6. Changes. The City may, from time to time, require changes in the scope of the services of the Consultant to be performed hereunder. Such changes, which are mutually agreed upon by and between the City and the Consultant, shall be incorporated in written amendment to this agreement. 7. Services and Materials to be Furnished by the City. The City ' shall furnish the Consultant with space and all available necessary information, data, and materials pertinent to the execution of this agreement. The City shall cooperate with the Consultant in carrying out the work herein, and shall provide adequate staff for liaison with the Consultant and other agencies of City government. I8. Termination of Agreement for Cause. If, through any cause, the Consultant shall fail to fulfill in timely and proper manner his obligation under this agreement, the City shall thereupon have the right to terminate this agreement 1 Page 2 of 5 with cause, by giving written notice to the Consultant of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination. 1 9. Information and Reports. The Consultant shall, at such time and in such form as the City may require, furnish such periodic reports concerning the status of the project, such statements,. certificates, approvals, and a set of copies of proposed and executed plans and claims and other information relative to the project as may be requested by the City. The Consultant shall furnish the City, 1 upon request, with copies of all documents and other materials prepared or developed in conjunction with or as part of the project. 10. Records and Inspections The Consultant shall maintain full and accurate records with respect to all matters covered under this agreement. The City shall have free access at all proper times to such records, and the right to 1 examine and audit the same and to make transcripts therefrom, and to inspect all program data, documents, proceedings, and activities. 11. Accomplishment of Project. The. Consultant shall commence, carry on, and complete the project with all practicable dispatch, in a sound economical and efficient manner. In accomplishing the project, the Consultant shall take such steps as are appropriate to insure that the work involved is properly coordinated with related work being carried on in the City. 1 12. Provisions Concerning Certain Waivers Subject to applicable law, any right or remedy which the City may have under this contract may be waived in writing by the City by a formal waiver, if, in the judgement of the City, this contract, as so modified, will still conform to the terms and requirements of pertinent laws. 1 13. Matters to be Disregarded. The titles of the several sections, subsections, and paragraphs set forth in this 'contract are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of the provisions of this contract. 14. Completeness of Contract. This contract and any additional or supplementary document or documents incorporated herein by specific reference contain all the terms and conditions agreed upon by the parties hereto, and no other agreements, oral or otherwise, regarding the subject matter of this contract ' or any part thereof shall have any validity or bind any of the parties hereto. 15. City Not Obligated to Third Parties. The City shall not be obligated or liable hereunder to any party other than the Consultant. 16. Indemnity. Consultant shall indemnify and save harmless the City against any and all claims, demands, suits or judgements for sums of money to any party for injury or damages to persons or property growing out of, resulting from or by reason of any negligent acts or omissions by the Consultant, its agents, servants Page 3 of 5 • • or employees while engaged upon or in connection with the services required or performed by the Consultant hereunder. Consultant shall additionally indemnify and hold the City harmless from any and all claims and/or liens for labor, service, ' or materials furnished to the Consultant in connection with the performance of the Consultant's obligation under this agreement. ' 17. When Rights and Remedies Not Waived. In no event shall the making by the City of any payment to the Consultant constitute or be construed as a waiver by the City of any breach of covenant, or any default which may then ' exist, on the part of any such breach or default exists shall in no way impair or prejudice any right or remedy available to the City in respect to such breach or default. 18. Personnel. The Consultant represents that he has, or will secure at his own expense, all personnel required in performing the services under this ' agreement. Such personnel shall not be employees of or have any contractual relationship with the City. All of the services required hereunder will be performed by the Consultant or under his supervision, and all personnel engaged in work shall be fully qualified to perform such services. 19. Litigation. By entering this agreement Consultant waives jurisdiction ' and venue and submits to the jurisdiction of the City of Fayetteville, Arkansas, regardless of Consultants residence or domicile. Consultant agrees that said court shall be the exclusive jurisdiction for any suits, actions, claims or demands arising out of or in connection with this agreement. 20. Consultant Liability if Audited The Consultant will assume all financial and statistical information provided to be accurate and complete. Any subsequent litigation or disallowance of funds paid to the City under the user fee plan is the sole responsibility of the City. 21. Copyrighted Materials Consultant's report developed pursuant to this contract shall be provided to Client. Copies shall be retained by Consultant. Client acknowledges that the report format to be provided by Consultant is copyrighted. Consultant shall insure that all copies of its report bear the copyright legend. Client agrees that the right, title and interest in and to the copyright materials lies with the Consultant. Client may use the report solely for and on behalf of the Client's operations to maintain accounting records and/or to monitor program costs against state or federal budgetary ceilings. Client agrees not to reproduce, publish, use or otherwise distribute the report except as provided by this contract. Client further agrees that it will take appropriate action by instruction, agreement or otherwise with its employees to satisfy its obligations with respect to use, copying, protection and security of the report format. Consultant shall retain all records related to this contract for three (3) years following termination, during which the Client has the right to audit such records at its election. 22. Assignment. The parties hereby agree that Consultant may assign, convey or transfer its interest, rights and duties in this Agreement to an affiliated Page 4 of 5 company or its parent company which succeeds to substantially all of the business of the Consultant. 23. Notices. Any notices, bills, invoices, or reports required by this agreement shall be sufficient if sent by the parties hereto in the United States mail, postage paid, to the addresses noted below: City of Fayetteville Payment Address: c/o Kevin Springer MAXIMUS, INC. 113 West Mountain Street P.O. Box 791188 Fayetteville, Arkansas 71701 Baltimore, Maryland 21279-1188 Correspondence Address: MAXIMUS INC. 940 North Tyler Road Suite #204 Wichita, Kansas 67212 IN WITNESS WHEREOF, the City and the Consultant have executed this agreement as of the date first written above. CITY OF FAYETTEVILLE Signature: Name: Title: MAXIMUS, INC Signature: Name: Jerry McKenzie ' Title: Vice President I a a Page 5 of 5 a