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Title:
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Approval of an Amendment to the Existing Professional Services Agreement with AK & Company to Provide SB 90 State Mandated Claiming Services for Fiscal Year 2009-10.
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City of Culver City, California
Agenda Item Report
Meeting Date: 11/30/09 Item Number: C-2
CITY COUNCIL AGENDA ITEM: Approval of an Amendment to the Existing
Professional Services Agreement with AK & Company to Provide SB 90 State
Mandated Claiming Services for Fiscal Year 2009-10.
Contact Person/Dept.: Mary V. Noller/
Finance Department
Phone Number: 310-253-6012
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas – City Council (11/25/09); (Telephone) AK &
Company (11/25/09).
Department Approval:
Mark Scott (11/24/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (11/24/09)
Chief Financial Officer Approval:
Mark Scott (by M. Noller) (11/24/09)
City Manager Approval:
Mark Scott (11/25/09)
RECOMMENDATION:
Staff recommends that the City Council approve an amendment to the existing
professional services agreement with AK & Company to provide filing of state
mandated cost reimbursement services.
BACKGROUND:
The Constitution of the State of California provides for the reimbursement of costs
incurred by local agencies and school districts for programs mandated by the State.
Costs mandated by the state means any increased costs which a local agency or
school district is required to incur after July 1, 1980, as a result of any statute
enacted after January 1, 1975, or any executive order implementing such statue
which mandates a new program or higher level of services in an existing program.
Over the last four fiscal years the City has received approximately $225,200 in
mandated cost reimbursements, the majority of which was received in fiscal 2005-06
and 2006-07. This amount includes reimbursements for prior fiscal years in which
the state did not reimburse local governments due to limited funding sources. Fiscal
years 2007-08 and 2008-09 saw lower amounts due to the fact the state did not fully
fund this program during those years. The discontinuance of Open Meetings
reimbursement the last few years also contributed to the reduction, but reports City of Culver City, California
Agenda Item Report
currently state this mandated cost may be reinstated for reimbursement in the near
future.
Since Culver City has kept up with the filing of claims on an annual basis, it ensures
the City receives these monies once the State is able to fund it, even on prior owed
years.
DISCUSSION:
During the past few years AK & Company has been invaluable in assisting the City
with the filing of state mandated claims, and they continue to keep staff up-to-date
on current related legislative activities. Our consultant has over twelve years
experience and responsibility for the timely submission of local government
mandated cost reimbursement claims, and over twenty-seven years with City,
County and Special Districts in general. The hands-on experience and oversight
employed by our consultant is significant in enabling Culver City in capturing all
monies due it from this process. As mentioned previously, the State has not always
been able to fully fund these mandates annually, but with our keeping up with the
reimbursements on an annual basis we are able to receive the funding when the
State is able to fund the program.
The consultant’s location is also very beneficial and enables her to regularly attend
Commission on State Mandates meetings on a regular basis, which are held in
Sacramento. We are able to literally obtain up-to-the-hour news as decisions that
may or may not affect us are made. There are a handful of pending new claims that
are being discussed this fiscal year for approval, but only one or two would be viable
claims to Culver City. A claim must reach a $1,000 reimbursement threshold in
order for a city to file, and most new claims being considered would not reach this
threshold for Culver City, or even apply to the City.
An amendment to the current contract for AK & Company is being requested so
there is no gap in the state mandated cost reimbursement claims for this fiscal year.
FISCAL ANALYSIS:
The proposed cost of the amendment to the current agreement with AK & Company
is a fixed fee of $4,650 and a variable fee of no less than $400 and no more than
$2,000 or 20% of the total value of all claims years filed, whichever is less, per each
mandate in which Culver City may file. The total amount for fiscal 2009-10 will not
exceed $7,500. There is sufficient funding appropriated in the Finance
Administration & Budget Division budget to pay for these services in fiscal 2009-10.
City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1. Approve an amendment to the existing professional services agreement for
AK & Company to provide State Mandated Cost Reimbursement preparation
services for current approved mandates for an additional amount not-to-
exceed $7,500 (aggregate of $35,800); and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.