Item Coversheet
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER

AGENDA REPORT
 
Item 9.
TO:Honorable Mayor and City Council Members
FROM: Michael B. O’Kelly, City Manager
BY:

Will Kaholokula, Director of Finance and Administrative Services

SUBJECT:APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT FOR STATE MANDATED REIMBURSEMENT CLAIMS WITH MGT OF AMERICA CONSULTING, LLC
DATE:July  27, 2020
RECOMMENDATION:
It is staff's recommendation that the City Council approve the attached Resolution, approving a three-year agreement with MGT of America Consulting, LLC to prepare the City's State Mandated Cost Claim (SB90) for fiscal years 2019-20 through 2021-22. 
BACKGROUND/DISCUSSION:

Article XIIIB, section 6 of the State Constitution requires that whenever the Legislature or any State agency mandates a new program or higher level of service on local government, the State must provide a subvention of funds to reimburse the associated costs, with certain exceptions.  To implement section 6 of Article XIIIB, the Legislature enacted Government Code Section 17500, under Chapter 1459, Statutes of 1984.  Under Government Code section 17500, the State Controller's Office releases Claiming Instructions for SB90.

 

MGT has prepared the State Mandated Cost Claims for the City during the past six years, with excellent results.  MGT's contract agreement for SB90 expired on 8/6/2019.  Annually, the City submits claims to the State of California for reimbursement under the SB90 provision.  For fiscal year 2018-19, the City's claims totaled $22,006 and were submitted for the following programs:

  • Administrative License Suspension
  • Domestic Violence Arrests and Victim Assistance
  • Domestic Violence Arrest Policies and Standards
  • Peace Officer Personnel Records-Unfounded Complaints and Discovery
  • Peace Officers Procedural Bill of Rights
  • Rape Victims Counseling Center Notice
  • U Visa 918 Form-Victims of Crime Non-immigrant Status

 

The City received $14,578 in Fiscal Year 2016/17, $17,276 in 2017/18, $29,102 in 2018/19 and $13,493 in 2019/20 through this State mandated cost reimbursement program.

 

In keeping with good business practices, City staff solicited proposals for SB90 consultant services, and on March 17, 2020, the City issued a Request for Proposals (RFP) for SB90 consultant services (Exhibit 3). The RFP was posted on the California Municipal Finance Officers website and City of Bell Gardens' website.  The City received proposals from two qualified firms.  City staff reviewed each proposal. Below is the summary of fees for two (2) proposals received by the City.


Audit  Firm 2019-20  2020-21    2021-22 
 MGT of America Consulting LLC $5,000 $5,250 $5,500
 Maximus Consulting Services, Inc. $7,000 $7,000 $7,000

 


CONCLUSION:

The process for cost recovery is complex and time consuming.  Due to complexities of the process, and intricacies of working with the Commission on State Mandates, many cities are contracting with consulting firms for their reimbursements due as outlined in SB90.  Based on technical competence,  services and pricing, staff is recommending the City Council approve the agreement with MGT of America Consulting, LLC .  If selected, MGT of America Consulting, LLC will prepare the City’s SB 90 reimbursement claims for fiscal year 2019-20 to 2021-22.

 

FISCAL IMPACT:
The funds to pay for this service are budgeted annually in the City's General Fund in the Department of Finance and Administrative Services.  The cost over the three-year period is $15,750 which is an increase of $750 as compared to our current contract. 
ATTACHMENTS:
Description
Exhibit 1 - Resolution No. 2020-56
Exhibit 2 - MTG of America Consulting, LLC Contract Agreement
Exhibit 3 - Request for Proposals
Exhibit 4 - MGT of America Consulting, LLC Proposal
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, Assistant City Attorney for Rick R. Olivarez, City Attorney
Will Kaholokula, Director of Finance and Administrative Services