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CITY OF CARMEL-BY-THE-SEA
Council Report
August 4, 2015

To:

Honorable Mayor and Members of the City Council


Douglas J. Schmitz, City Administrator

From:

Sharon Friedrichsen

Subject:

Resolutions Authorizing New Professional Services Agreements and


Amendments to Various Existing Professional Services Agreements

RECOMMENDATION:
Adopt resolutions authorizing the City Administrator to:
1. Execute a Professional Services Agreement with Revenue Cost Specialists, LLC for a
user fee study for an amount not to exceed $24,750.
2. Execute Amendment No. 3 to Professional Services Agreement PBD-PSA-FOUR-00613/14 with 4 Leaf, Inc. for contract permit technician services for an additional increase of
$40,000 for a new total not to exceed amount of $172,000.
3. Execute Amendment No. 1 to Professional Services Agreement PBD-PSA-EMC-01414/15 with EMC Planning Group for contract planner services for an additional increase of
$15,000 for a new total not to exceed amount of $40,000.
4. Execute Amendment No. 5 to Professional Services Agreement ASD-PSA-MAR-00313/14 PBD-PSA-EMC-014-14/15 with EMC Planning Group for contract planner services
for an with MarTech for information technology services for an additional increase of
$30,000 for a new total not to exceed amount of $285,000.
EXECUTIVE SUMMARY:
City staff are continuously reviewing service needs, contracts and expenditures and bringing
forth contracts for Council authorization on a regular basis. The professional services
agreements induced within this agenda item are a combination of new agreements and the
continuation of existing contractual services. Contracts with a value of $25,000 or more
require Council authorization.
ANALYSIS/DISCUSSION:
User Fee Study: The City currently charges a fee for a variety of services performed by
multiple departments, such as the issuance of permits (tree removal, design review, land use,
sign, etc.) fines, and fees (overdue library materials, public safety citations, etc.). The
purpose of the fee is to recover the cost of providing the service from the user of said service.
Many of these fees have not been updated for quite some time. As part of the adoption of the
fiscal year 2015-16 budget, Council provided direction regarding a comprehensive review of
the citywide fees. City staff wish to enter into an agreement with Revenue and Cost
Specialists, LLC (RCS) to perform a user fee study that will enable the City to fairly identify
and recover the appropriate costs for services. RCS has extensive experience in working
with local governments on user fees and the firms proposal includes meeting with
Council Meeting Date: 08/04/2015
Agenda Item: 7.I
Page 1

departmental staff to assess the amount of time spent on performing a function, developing
an allocation factor and determining the hourly staff rate, preparing a report and presenting it
to Council, developing a master fee resolution and schedule and providing software, at no
additional cost, that the City can use to update the user fee study and calculate estimated
costs of providing new services. The cost of the study is $24,750. To ensure transparency
and adherence to the Citys purchasing code, the contract is being brought forward for
Council approval due to the contract amount of $24,750 nearing the City Administrators
authorization limit of $24,999 and because Council has been involved with this matter as part
of the FY 15-16 budget hearings.
Planning services: The City has been contracting with 4Leaf, Inc. for a permit technician
within the Community Building and Planning Department. The most recent amendment
increased the total contract amount to $132,000. While the spending to date is approximately
$115,000 and within the authorized amount, the amendment expired on June 30, 2015. It is
recommended that the contract be extended for six additional months and the dollar amount
of the contract be increased by $40,000, to a new total contract amount not to exceed
$172,000, to ensure coverage while a permit technician recruitment is underway. Similarly,
the City has been using the EMC Planning Group for a contract planner and has spent about
$19,000 through June 2015. It is recommended that the contract be increased by an
additional $15,000, which should cover costs for three months, to allow time for the existing
contract planner to close out cases and allow for training and transition for an incoming fulltime planner (a City employee).
IT Services: it is recommended that the existing contract with MarTech for information
technology services be increased by $30,000 and the term of the contract be extended to the
end of the calendar year to provide transitional assistance to the incoming IT Manager as well
as for an additional coverage that may be needed related to the Emergency Operations
Center during the winter rainy season.
Alternatives: Council may either approve the agreements; not approve the agreements or
approve the agreements with different terms such as cost and duration of services.
FISCAL IMPACT:
The cost of the user fee study will be charged to professional services within the
administrative service budget (account 67053-0100). In addition, the cost of the study may be
included as an overhead charge in calculating the new user fees. If approved, any new
forthcoming fees would recover the cost of study as an overhead charge as well as recover
the actual cost of providing a myriad of services. Costs for permit technician and planners
have been included within the departmental budget within salaries and benefits and
professional services (account 69051).
PREVIOUS COUNCIL ACTION/DECISION HISTORY:
Revenue Cost Specialists- N/A as new agreement
4 Leaf Inc.- Amendment No. 2 approved via Resolution 2015-023
EMC- N/A as original agreement signed administratively (under $24,999)
MarTech-Amendment No. 4 approved via Resolution 2015-43
Council Meeting Date: 08/04/2015
Agenda Item: 7.I
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ATTACHMENTS:

Attachment 1. Resolution- Revenue Cost Specialists


Attachment 2. Resolution- ASD-PSA-FOUR-006-13/14 Amendment No.3
Attachment 3- Resolution- ASD-PSA-FOUR-006-13/14 Amendment No.1
Attachment 4- Resolution- ASD-PSA-MAR-003-13/14 PBD-PSA-EMC014-14/15 Amendment No . 5

APPROVED:

Council Meeting Date: 08/04/20 15


Agenda Item: 7.1
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ATTACHMENT - 1

RESOLUTION 2015-_____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO A PROFESSIONAL SERVICES
AGREEMENT WITH REVENUE COST SPECIALISTS, LLC FOR USER FEE STUDY FOR
AN AMOUNT NOT TO EXCEED $24,750
WHEREAS, the City charges various fees to users for services for the issuance of
permits and imposes fines and fees for other services and citations;
WHEREAS, the City wishes to have a comprehensive review performed and a user
fee study conducted in order to appropriately and accurately identify the cost of providing the
service;
WHEREAS, the City wishes to utilize a consultant specializing in user fee studies for
local governments;
WHEREAS, all agreements exceeding $24,999.00 require City Council approval to be
valid.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF CARMEL-BY-THE-SEA does hereby:
Authorize the City Administrator to Execute a Professional Services Agreement with
Revenue Cost Specialists, LLC for a Not to Exceed Amount of $24,750 for the
completion of a user fee study.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA on this 4th day of August 2015 by the following vote:
AYES:

COUNCIL MEMBERS:

NOES:

COUNCIL MEMBERS:

ABSENT:

COUNCIL MEMBERS:

ABSTAIN:

COUNCIL MEMBERS:

SIGNED:

ATTEST:

Jason Burnett, MAYOR

Lee Price, Interim City Clerk

Council Meeting Date: 08/04/2015


Agenda Item: 7.I
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ATTACHMENT - 2

RESOLUTION 2015-_____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AMENDMENT NO. 3 TO
PROFESSIONAL SERVICES CONSULTING AGREEMENT PBD-PSA-FOUR-006-13-14
WITH 4LEAF INC. FOR PERMIT TECHNICIAN SERVICES FOR AN AMOUNT NOT TO
EXCEED $172,000
WHEREAS, the City currently utilizes a contracted firm, 4Leaf, Inc., for a permit
technician services to augment existing staffing; and,
WHEREAS, the contract with 4Leaf, Inc. was originally entered into on November 14,
2013 and subsequently amended via Resolutions 2014-19 and 2015-023.
WHEREAS, the current contract expired on June 30, 2015 and the City wishes to
continue to utilizes these services within the fiscal year 201-516.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF CARMEL-BY-THE-SEA does hereby:
Authorize the City Administrator to Amend the Professional Services Consulting
Agreement with 4Leaf Inc. for an increase of $40,000 for a new Not to Exceed Amount
of $172,000 for a Contract Term Ending on December 31, 2015 as shown in Exhibit A.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA on this 4th day of August 2015 by the following vote:
AYES:

COUNCIL MEMBERS:

NOES:

COUNCIL MEMBERS:

ABSENT:

COUNCIL MEMBERS:

ABSTAIN:

COUNCIL MEMBERS:

SIGNED:

Jason Burnett, MAYOR

ATTEST:

Lee Price
Interim City Clerk

Council Meeting Date: 08/04/2015


Agenda Item: 7.I
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Exhibit A
Amendment No. 3 to Contract
PBD-PSA-FOUR-006-13-14
Contract Permit Technician Services
1. This amendment (the "Amendment") is made by City of Carmel-by-the-Sea and 4Leaf, Inc.
parties to agreement PBD-PSA-FOUR-006-13-1414 (the "Agreement") dated 14 November 2013 and
last modified by Amendment Number 2 approved by the City on 7 April 2015.
2. The Agreement is amended as follows:
a. The Term of the Agreement is modified as follows:
The Term of the Agreement is modified to be extended to terminate on December 31, 2015
unless services are no longer needed prior to December 31, 2015.
b. The Compensation of the Agreement is modified as follows:
The compensation of the Agreement, included the extension until December 31, 2015 shall
not exceed $172,000.

3. Except as set forth in this Amendment, the Agreement is unaffected and shall continue in full force
and effect in accordance with its terms. If there is conflict between this amendment and the
Agreement or any earlier amendment, the terms of this amendment will prevail.

CONSULTANT:
By:

_____________________________
Kevin Duggan
President

Date: ______________________

_____________________________
Doug Schmitz
CITY Administrator

Date: ___________________

CITY:
By:

ATTEST:
By:

_____________________________
Lee Price
Interim CITY Clerk

Date: ______________________

Council Meeting Date: 08/04/2015


Agenda Item: 7.I
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ATTACHMENT - 3
RESOLUTION 2015-_____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AMENDMENT NO. 1 TO
PROFESSIONAL SERVICES CONSULTING AGREEMENT PBD-PSA-EMC-014-14/15
WITH EMC PLANNING GROUP INC. FOR PLANNING SERVICES FOR A TOTAL
CONTRACT AMOUNT NOT TO EXCEED $40,000
WHEREAS, the City currently utilizes a contracted firm, EMC Planning Group, for an
associate and senior planner services to augment existing staffing; and,
WHEREAS, the contract with EMC Planning Group Inc. was originally entered into on
March 14, 2015 for an amount not to exceed $25,000; and
WHEREAS, the current contract expires on February 2016 and departmental
expenditures are nearing $25,000; and
WHEREAS, the department wishes to continue services and all Agreements exceeding
$24,999.00 require City Council approval to be valid.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF CARMEL-BY-THE-SEA does hereby:
Authorize the City Administrator to Amend the Professional Services Consulting
Agreement with EMC Planning Group, Inc. for an increase of $15,000 for a new Total
Contract Not to Exceed Amount of $40,000 as shown in Exhibit A.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA on this 4th day of August 2015 by the following vote:
AYES:

COUNCIL MEMBERS:

NOES:

COUNCIL MEMBERS:

ABSENT:

COUNCIL MEMBERS:

ABSTAIN:

COUNCIL MEMBERS:

SIGNED:

ATTEST:

Jason Burnett, MAYOR

Lee Price
Interim City Clerk

Council Meeting Date: 08/04/2015


Agenda Item: 7.I
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Exhibit A
Amendment No. 1 to Contract
PBD-PSA-EMC-014-14/15
Contract Planner Services
1. This amendment (the "Amendment") is made by City of Carmel-by-the-Sea and EMC Planning
Group, Inc. parties to agreement PBD-PSA-EMC-014-14/15 (the "Agreement") dated March 9, 2015.
2. The Agreement is amended as follows:
a. The Compensation of the Agreement is modified as follows:
CITY shall pay CONSULTANT in an amount not to exceed $40,000, in accordance with
this Contract, for fiscal years 2014-15 and 2015-16.

3. Except as set forth in this Amendment, the Agreement is unaffected and shall continue in full force
and effect in accordance with its terms. If there is conflict between this amendment and the
Agreement or any earlier amendment, the terms of this amendment will prevail.
CONSULTANT:
By:

_____________________________
Michael Groves
President

Date: ______________________

_____________________________
Doug Schmitz
CITY Administrator

Date: ___________________

CITY:
By:

ATTEST:
By:

_____________________________
Lee Price
Interim CITY Clerk

Date: ______________________

Council Meeting Date: 08/04/2015


Agenda Item: 7.I
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ATTACHMENT - 4

RESOLUTION 2015-_____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AMENDMENT NO. 5 TO
PROFESSIONAL SERVICES CONSULTING AGREEMENT ASD-PSA-MAR-003-13/14
WITH MARTECH INC FOR INFORMATION TECHNOLOGY SERVICES FOR AN AMOUNT
NOT TO EXCEED $285,000
WHEREAS, the City is in need of ongoing information technology services; and,
WHEREAS, MarTech, Inc. currently provides these services to the City; and,
WHEREAS, the contract with MarTech was originally entered into in fiscal year 201213 and has been amended by Resolution 2013-17, Resolution 2015-06, Resolution 2015-024
and Resolution 2015-043 to extend the term of the contract and dollar amount; and,
WHEREAS, the City wishes to continue these services for a limited duration into fiscal
year 2015-16 and has budgeted funds for these services.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF CARMEL-BY-THE-SEA does hereby:
Authorize the City Administrator to Amend the Professional Services Consulting
Agreement with MarTech Inc. by $30,000 for a new Not to Exceed Amount of
$285,000 for a Contract Term Ending on December 31, 2015 as shown in Exhibit A.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THESEA on this 4th day of August 2015 by the following vote:
AYES:

COUNCIL MEMBERS:

NOES:

COUNCIL MEMBERS:

ABSENT:

COUNCIL MEMBERS:

ABSTAIN:

COUNCIL MEMBERS:

SIGNED:

ATTEST:

Jason Burnett, MAYOR

Lee Price, MMC


Interim City Clerk

Council Meeting Date: 08/04/2015


Agenda Item: 7.I
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Exhibit A
Amendment No. 5 to Contract
ASD-PSA-MAR-003-13/14
1. This amendment (the "Amendment") is made by City of Carmel-by-the-Sea and Martech, Inc.
parties to agreement ASD-PSA-MAR-))#-13/14 (the "Agreement") dated 12 June 2013 and modified
by Amendments Number 1, 2, 3 and 4.
2. The Agreement is amended as follows:
a. The Term of the Agreement is modified as follows:
The Term of the Agreement is modified to be extended to terminate on 31 December 2015.
b. The Compensation of the Agreement is modified as follows:
The contract is amendment to increase by $30,000. The total amount of the contract from
June 12, 2013 to December 31, 2015 shall not exceed $285,000.
3. Except as set forth in this Amendment, the Agreement is unaffected and shall continue in full force
and effect in accordance with its terms. If there is conflict between this amendment and the
Agreement or any earlier amendment, the terms of this amendment will prevail.
CONSULTANT:
By:

_____________________________
Jeff Marshall

Date: ______________________

_____________________________
Doug Schmitz
CITY Administrator

Date: ___________________

CITY:
By:
Its:

ATTEST:
By:
Its:

_____________________________
Lee Price
Interim CITY Clerk

Date: ______________________

Council Meeting Date: 08/04/2015


Agenda Item: 7.I
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