CC 2016-08-09_09c Agreement for Interim CM
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF AGREEMENT WITH REGIONAL GOVERNMENT
SERVICES FOR INTERIM CITY MANAGER SERVICES
DATE: AUGUST 9, 2016
RECOMMENDATION:
It is recommended the City Council approve and authorize the Mayor to execute an
agreement with Regional Government Services (RGS) to provide Interim City Manager
services.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The contract specifies an hourly billing rate of $125 and a monthly housing allowance of
$1,700. Total costs will depend on the length of service of the Interim City Manager;
however it is estimated not to exceed 960 hours over eight months, for a total cost of
approximately $133,600. The City Manager program staffing budget has a balance of
approximately $148,500 for FY 2016-17.
BACKGROUND:
The City is currently recruiting for the position of City Manager and is in need of an
Interim City Manager to fill this role during the recruitment, which is expected to take
approximately eight months. RGS is a governmental joint powers authority that assists
other government agencies with short-term staffing needs. The City Council has
previously used RGS to provide an Interim City Manager. The billing rate at that time
was $120 per hour. The increase of $5 per hour is due to an increase in RGS’
overhead rate, not an increase in compensation to the employee.
ANALYSIS OF ISSUES:
RGS exclusively serves public agencies and hires public-sector experts in every
discipline to offer solutions to short-term staffing needs at competitive prices. They
have provided Interim City Manager solutions to several other communities that were
pleased with the services received. RGS staff member Robert McFall will serve as
Interim City Manager. The attached agreement includes a start date of August 10, 2016.
Mr. McFall is very familiar with the City of Arroyo Grande, having previously assisted the
City with several departmental assessments, executive goal setting and team building,
facilitation of interdepartmental issues, and as the Interim City Manager in 2015. His
Item 9.c. - Page 1
CITY COUNCIL
CONSIDERATION OF AGREEMENT WITH REGIONAL GOVERNMENT SERVICES
FOR INTERIM CITY MANAGER SERVICES
AUGUST 9, 2016
PAGE 2
rapport with the department head team and other city employees will enable him to
quickly come up to speed on issues and concerns and be an effective leader for the
City. He is exceptionally well qualified to fill the Interim City Manager position for the
City of Arroyo Grande.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
Approve the agreement;
Do not approve the agreement; or
Provide direction to staff regarding City Council alternatives.
ADVANTAGES:
Hiring an Interim City Manager will provide the leadership and management for the City
to continue accomplishing required duties while recruiting for a permanent City
Manager. Mr. McFall’s familiarity and rapport with City staff will enable him to step into
this role quickly and continue moving the City forward during this time.
DISADVANTAGES:
The only disadvantage is the cost; however it is anticipated to be within the approved
budget for the City Manager position.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, August 4, 2016. The Agenda
and report were posted on the City’s website on Friday, August 5, 2016. No public
comments were received.
ATTACHMENT:
1. Agreement
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P.O. BOX 1350 | CARMEL VALLEY, CA 93924 | 844.587.7300 | WWW.RGS.CA.GOV
Preamble: The agreement for services described below is also an agreement to engage in a
relationship between organizations – agency partners. In order to establish a mutually
respectful relationship as well as a productive one, RGS has adopted the following values and
business methods.
Our Values
•Expert Services: RGS serves exclusively public sector agencies with its team of public-
sector experts.
•Innovation: RGS encourages and develops innovative and sustainable services to help
each agency meet its challenges through new modes of service provision.
•Customer Driven: RGS customizes solutions to achieve the right level and right kind of
service at the right time for each agency’s unique organizational needs.
•Perseverance: Sometimes the best solutions are not immediately apparent. RGS listens,
works with you, and sticks with it until a good fit with your needs is found.
•Open Source Sharing: RGS tracks emerging best practices and shares them, learning
openly from each other’s hard won experience.
•Commitment: Government agencies are the public’s only choice for many services. Public
trust is earned and must be used wisely. And RGS will do its part. Each agency should
and will know how RGS sets its rates. RGS’ pledge to you is that we will act with honesty,
openness, and full transparency.
How RGS Does Business
When you work with RGS you can expect:
•RGS will strive to be explicit up front and put our understandings in writing. Before
making assumptions, we hope to talk directly to prevent any misunderstandings.
•Ongoing interaction throughout our relationship to ensure that your needs are being met,
and that projects progress appropriately and agreed-upon timelines are met.
•RGS is committed to honest interaction.
•When RGS employees are on your site, we expect them to treat people respectfully and be
treated respectfully. If problems arise, we want to communicate early, accurately, and
thoroughly to ensure that we find mutually acceptable solutions.
•As a public agency, partnering is valued. We look out for each agency’s interests
consistent with maintaining the public trust.
•To keep expectations realistic, it is important to understand that RGS is a governmental,
joint powers authority evolving to meet changing local government needs. RGS has
carefully constructed policies and procedures to allow maximum flexibility to meet your
needs.
ATTACHMENT 1
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Agreement For Management and Administrative Services Page 2 of 15
Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
Agreement for Management and Administrative Services
This Agreement for Management Services (“Agreement”) is made and entered into as
of the day of 2016, by and between City or Arroyo Grande, a municipal
corporation of the State of California (“Agency”), and Regional Government
Services Authority (RGS), a joint powers authority, (each individually a “Party” and,
collectively, the “Parties”).
RECITALS
THIS AGREEMENT is entered into with reference to the following facts and
circumstances:
A. That Agency desires to engage RGS to render certain services to it;
B. That RGS is a management and administrative services provider and is qualified
to provide such services to the Agency; and
C. That the Agency has elected to engage the services of RGS upon the terms and
conditions as hereinafter set forth.
TERMS AND CONDITIONS
Section 1. Services. The services to be performed by RGS under this Agreement
shall include those services set forth in the attached Exhibits “A” and
“B”, which are incorporated herein by this reference and made a part
hereof as though it were fully set forth herein.
Where in conflict, the terms of this Agreement supersede and prevail over
any terms set forth in the Exhibits.
1.1 Standard of Performance. RGS shall perform all services
required pursuant to this Agreement in the manner and according
to the standards observed by a competent practitioner of the types
of services that RGS agrees to provide in the geographical area in
which RGS operates.
1.2 Reassignment of Personnel. In the event that Agency, at any
time during the term of this Agreement, desires the reassignment of
personnel, Agency shall make a request to RGS and RGS shall meet
and confer in good faith to consider reassigning such person or
persons. RGS shall assign only competent personnel to perform
services pursuant to this Agreement.
1.3 Time. RGS shall devote such time to the performance of services
pursuant to this Agreement as may be reasonably necessary to meet
the standard of performance described above and to provide the
services described in the Exhibits.
Section 2. Term of Agreement and Termination. Services shall commence on
or about August 10, 2016, and is anticipated to remain in force to June 30,
2017, at which time services may continue on a month-to-month basis
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Agreement For Management and Administrative Services Page 3 of 15
Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
until one party terminates the Agreement, or if Exhibit A contains a “not to
exceed” amount, until that amount of charges has been reached, at which
point the parties shall either amend or terminate this Agreement. This
Agreement may be terminated by either Party, with or without cause, upon
30 days written notice. Agency has the sole discretion to determine if the
services performed by RGS are satisfactory to the Agency which
determination shall be made in good faith. If the Agency determines that
the services performed by RGS are not satisfactory, the Agency may
terminate this Agreement by giving written notice to RGS. Upon receipt of
notice of termination by either Party, RGS shall cease performing duties
on behalf of Agency on the termination date specified and the
compensation payable to RGS shall include only the period for which
services have been performed by RGS.
Section 3. Compensation. Payment under this Agreement shall be as provided in
the Exhibits.
Section 4. Effective Date. This Agreement shall become effective on the date first
herein above written.
Section 5. Relationship of Parties.
5.1 It is understood that the relationship of RGS to the Agency is that of
an independent contractor and all persons working for or under the
direction of RGS are its agents or employees and not agents or
employees of Agency. The Agency and RGS shall, at all times, treat
all persons working for or under the direction of RGS as agents and
employees of RGS, and not as agents or employees of the Agency.
Agency shall have the right to control RGS only insofar as the
results of RGS’s services rendered pursuant to this Agreement and
assignment of personnel pursuant to Section 1.
5.2 RGS shall provide services under this Agreement through one or
more employees of RGS qualified to perform services contracted for
by Agency. The positions of RGS staff who will coordinate services
to the Agency are indicated in the Exhibits. The Executive Director
or assigned supervising RGS staff will consult with Agency on an as-
needed basis to assure that the services to be performed are
meeting Agency’s objectives.
5.3 Agency shall not have the ability to direct how services are to be
performed, specify the location where services are to be performed,
or establish set hours or days for performance of services, except as
set forth in the Exhibits.
5.4 Agency shall not have any right to discharge any employee of RGS
from employment. However, Agency shall have the right to
terminate this Agreement pursuant to Section 2 of this Agreement.
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
5.5 RGS shall, at its sole expense, supply for its employees providing
services to Agency pursuant to this Agreement any and all benefits,
such as worker’s compensation, disability insurance, vacation pay,
sick pay, or retirement benefits; obtain and maintain all licenses
and permits usual or necessary for performing the services; pay any
and all taxes incurred as a result of the employee(s) compensation,
including employment or other taxes; and provide Agency with
proof of payment of taxes on demand.
Section 6. Loss Occurrence Coverage. RGS is self-insured and maintains loss
occurrence coverage through its membership in the Municipal Insurance
Cooperative (“MIC”), a California Joint Powers Authority, which is a risk
purchasing joint powers authority. Consistent with sections 990.4 and
990.8 of the Government Code, the MIC provides coverage to RGS, in
excess of its member retained limit, against claims for injuries to persons
or damages to property that may arise from or in connection with the
performance of the work hereunder by RGS and its agents,
representatives, employees, and subcontractors.
6.1 Workers’ Compensation Coverage.
6.1.1 General requirements. RGS shall, at its sole cost and
expense, maintain statutory Workers’ Compensation coverage and
Employer’s Liability coverage with limits of not less than
$1,000,000.00 per occurrence.
6.1.2 Waiver of subrogation. The Workers’ Compensation
coverage shall be endorsed with or include a waiver of subrogation
in favor of the Agency for all work performed by RGS, its
employees, agents, and subcontractors.
6.2 Commercial General, Automobile, and Professional
Liability Coverages
6.2.1 General requirements. RGS, at its own cost and expense,
shall maintain commercial general and automobile liability
coverage for the term of this Agreement in an amount not
less than $2,000,000 per occurrence, combined single limit
coverage for risks associated with the work contemplated by
this Agreement. RGS shall additionally maintain
commercial general liability coverage in an amount not less
than $2,000,000 aggregated for bodily injury, personal
injury, and property damage.
6.2.2 Minimum scope of coverage. The MIC MOC is not
written on ISO forms but provides coverage at least as broad
as the latest version of the following: (A) General Liability:
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
Insurance Services Office Commercial General Liability
coverage (occurrence form CG 0001); and (B) Automobile
Liability: Insurance Services Office Business Auto Coverage
form number CA 001, code 1 (any auto).
6.3 Professional Liability Insurance. RGS, at its own cost and
expense, shall maintain for the period covered by this Agreement
professional liability coverage for licensed professionals performing
work pursuant to this Agreement in an amount not less than
$2,000,000 covering the licensed professionals’ errors and
omissions.
6.4 All Policies Requirements.
6.4.1 Coverage requirements. Each of the following shall be
included in the coverage or added as an endorsement:
a. Agency and its officers, employees, agents, and
volunteers shall be covered as additional covered
parties with respect to RGS’s general commercial, and
automobile coverage for claims, demands, and causes
of action arising out of or relating to RGS’s
performance of this Agreement and to the extent
caused by RGS’s negligent act, error, or omission.
b. An endorsement to RGS’s general commercial, and
automobile coverages must state that coverage is
primary with respect to the Agency and its officers,
officials, employees and volunteers.
c. All coverages shall be on an occurrence or an accident
basis, and not on a claims-made basis.
6.4.2 Acceptability of coverage providers. All coverages
required by this section shall be acquired through providers
with a Bests' rating of no less than A: VII or through sources
that provide an equivalent level of reliability.
6.4.3 Verification of coverage. Prior to beginning any work
under this Agreement, RGS shall furnish Agency with
notifications of coverage and with original endorsements
effecting coverage required herein. The notifications and
endorsements are to be signed by a person authorized by the
Municipal Insurance Cooperative to bind coverage on its
behalf. The Agency reserves the right to require complete,
certified copies of all Memorandums of Coverage at any time.
6.4.4 Subcontractors. RGS shall include all subcontractors as
insureds under its coverage or shall furnish separate
certificates and endorsements for each subcontractor. All
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
coverages for subcontractors shall be subject to all of the
requirements stated herein.
6.4.5 Variation. During the term of this agreement, RGS may
change the insurance program in which it participates. RGS
will provide reasonable notice of any such change to Agency
and replacement copies of Certificates of Coverage and
endorsements.
6.4.6 Deductibles and Self-Insured Retentions. RGS shall
disclose any self-insured retention if Agency so requests
prior to performing services under this Agreement or within
a reasonable period of time of a request by Agency during the
term of this Agreement.
6.4.7 Maintenance of Coverages. The coverages stated herein
shall be maintained throughout the term of this Agreement
and proof of coverage shall be available for inspection by
Agency upon request.
6.4.8 Notice of Cancellation or Reduction in Coverage. In
the event that any coverage required by this section is
reduced, limited, or materially affected in any other manner,
RGS shall provide written notice to Agency at RGS’s earliest
possible opportunity and in no case later than five days after
RGS is notified of the change in coverage.
Section 7. Legal Requirements.
7.1 Governing Law. The laws of the State of California shall govern
this Agreement.
7.2 Compliance with Applicable Laws. RGS and any
subcontractors shall comply with all laws applicable to the
performance of the work hereunder.
7.3 Reporting Requirements. If there is a statutory or other legal
requirement for RGS to report information to another government
entity, RGS shall be responsible for complying with such
requirements.
7.4 Other Governmental Regulations. To the extent that this
Agreement may be funded by fiscal assistance from another
governmental entity, RGS and any subcontractors shall comply with
all applicable rules and regulations to which Agency is bound by the
terms of such fiscal assistance program.
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
7.5 Licenses and Permits. RGS represents and warrants to Agency
that RGS and its employees, agents, and any subcontractors have all
licenses, permits, qualifications, and approvals of whatsoever
nature that are legally required to provide the services
contemplated by this Agreement. RGS represents and warrants to
Agency that RGS and its employees, agents, and subcontractors
shall, at their sole cost and expense, keep in effect at all times
during the term of this Agreement any licenses, permits, and
approvals that are legally required to practice their respective
professions.
7.6 Nondiscrimination and Equal Opportunity. RGS shall not
discriminate, on the basis of a person’s race, religion, color, national
origin, age, physical or mental handicap or disability, medical
condition, marital status, sex, or sexual orientation, against any
employee, applicant for employment, subcontractor, bidder for a
subcontract, or participant in, recipient of, or applicant for any
services or programs provided under this Agreement. RGS shall
comply with all applicable federal, state, and local laws, policies,
rules, and requirements related to equal opportunity and
nondiscrimination in employment, contracting, and the provision
of any services that are the subject of this Agreement.
Section 8. Keeping and Status of Records.
8.1 Records Created as Part of RGS’s Performance. All final
versions of reports, data, maps, models, charts, studies, surveys,
photographs, memoranda, plans, studies, specifications, records,
files, or any other documents or materials, in electronic or any other
form, that RGS prepares or obtains pursuant to this Agreement and
that relate to the matters covered hereunder shall be the property of
the Agency. RGS hereby agrees to deliver those documents to the
Agency upon termination of the Agreement, if requested. It is
understood and agreed that the documents and other materials,
including but not limited to those described above, prepared
pursuant to this Agreement are prepared specifically for the Agency
and are not necessarily suitable for any future or other use.
8.2 Confidential Information. RGS shall hold any confidential
information received from Agency in the course of performing this
Agreement in trust and confidence and will not reveal such
confidential information to any person or entity, either during the
term of the Agreement or at any time thereafter. Upon expiration
of this Agreement, or termination as provided herein, RGS shall
return materials which contain any confidential information to
Agency. For purposes of this paragraph, confidential information is
defined as all information disclosed to RGS which relates to Agency
past, present, and future activities, as well as activities under this
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Agreement For Management and Administrative Services Page 8 of 15
Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
Agreement, which information is not otherwise of public record
under California law. Agency shall notify RGS what information
and documents are confidential and thus subject to this section 8.2.
8.3 RGS’s Books and Records. RGS shall maintain any and all
ledgers, books of account, invoices, vouchers, canceled checks, and
other records or documents evidencing or relating to charges for
services or expenditures and disbursements charged to the Agency
under this Agreement for a minimum of 3 years, or for any longer
period required by law, from the date of final payment under this
Agreement.
8.4 Inspection and Audit of Records. Any records or documents
that Section 8.3 of this Agreement requires RGS to maintain shall
be made available for inspection, audit, and/or copying at any time
during regular business hours, upon oral or written request of the
Agency. Under California Government Code Section 8546.7, if the
amount of public funds expended under this Agreement exceeds
$10,000.00, the Agreement shall be subject to the examination and
audit of the State Auditor, at the request of Agency or as part of any
audit of the Agency, for a period of three years after final payment
under the Agreement.
Section 9. Non-assignment. This Agreement is not assignable either in whole or in
part without the written consent of the other party.
Section 10. Amendments. This Agreement may be amended or modified only by
written Agreement signed by both Parties.
Section 11. Validity. The invalidity, in whole or in part, of any provisions of this
Agreement shall not void or affect the validity of any other provisions of
this Agreement.
Section 12. Disputes. Should any dispute arise out of this Agreement, Agency agrees
that it shall only file a legal action against RGS, and shall not file any legal
action against any of the public entities that are members of RGS.
Section 13. Governing Law/Attorneys’ Fees. This Agreement shall be governed
by the laws of the State of California and any suit or action initiated by
either party shall be brought in San Luis Obispo County, California. In the
event of litigation between the Parties hereto to enforce any provision of
the Agreement, the prevailing Party shall be entitled to reasonable
attorney’s fees and costs of litigation.
Section 14. Mediation. Should any dispute arise out of this Agreement, the Parties
shall meet in mediation and attempt to reach a resolution with the
assistance of a mutually acceptable mediator. Neither Party shall be
permitted to file legal action without first meeting in mediation and
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
making a good faith attempt to reach a mediated resolution. The costs of
the mediator, if any, shall be paid equally by the Parties. If a mediated
settlement is reached, neither Party shall be deemed the prevailing party
for purposes of the settlement and each Party shall bear its own legal costs.
Section 15. Employment Offers to Our Staff. Should the AGENCY desire to offer
permanent or temporary employment to an RGS employee who is either
currently providing RGS services to the AGENCY or has provided RGS
services to the AGENCY within the previous six months, said AGENCY will
be charged a fee equal to the full-time cost of the RGS employee for one
month, using the most recent RGS bill rate for the RGS employee’s
services to the Agency. This fee is to recover RGS’ expenses in recruiting
the former and replacement RGS staff.
Section 16. Entire Agreement. This Agreement, including the Exhibits, comprises
the entire Agreement.
Section 17. Indemnification.
17.1 RGS’ indemnity obligations. RGS shall indemnify, defend, and
hold harmless Agency and its legislative body, boards and
commissions, officers, and employees (“Indemnitees”) from and
against all claims, demands, and causes of action by third parties,
including but not limited to attorneys’ fees, arising out of RGS’
performance of this Agreement, to the extent caused by RGS’
negligent act, error, omission or willful misconduct. Nothing herein
shall be interpreted as obligating RGS to indemnify Agency against
its own negligence or willful misconduct.
Further, RGS will defend and indemnify Agency, and hold it
harmless, from any claim, demand or cause of action arising from a
finding or assertion that as a result of providing services to Agency,
an RGS employee or a person performing work pursuant to this
Agreement is entitled to benefits from, or is covered by the Social
Security Retirement System, the California Public Employee
Retirement System, or any other defined benefit retirement system.
Notwithstanding the foregoing, however, RGS’s obligation for any
payments to such a claimant shall be limited to those payments
which Agency may be required to pay. Pursuant to Section 5.1 of
this Agreement, Agency has an obligation to treat all persons
working for or under the direction of RGS as agents and employees
of RGS, and not as agents or employees of the Agency. Under this
obligation, Agency further agrees that it shall fully cooperate with
RGS in defending against any finding or assertion that an RGS
employee is an employee of Agency and required to be enrolled in a
defined benefit retirement system. Further, Agency shall notify
RGS within five (5) working days of receipt of any notice requiring
Agency to submit to an examination of any kind related to the
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
status of an RGS employee and his/her relationship with Agency.
17.2 Agency’s indemnity obligations. Agency shall indemnify,
defend and hold harmless RGS and its officers, directors, employees
and agents from any and all claims and lawsuits where such persons
are named in the lawsuit solely by virtue of them temporarily
staffing a position with Agency, or solely because of a duty any of
them performs while temporarily staffing that position.
It is the intent of the parties here to define indemnity obligations
that are related to or arise out of Agency’s actions as a
governmental entity. Thus, Agency shall be required to indemnify
and defend only under circumstances where a cause of action is
stated against RGS, its employees or agents:
a. which is unrelated to the skill they have used in the
performance of the duties delegated to them under this
Agreement;
b. when the allegations in such cause of action do not suggest
the active fraud or other misconduct of RGS, its employees,
or agents; or
c. where an Agency employee, if he had been acting in a like
capacity, otherwise would be acting within the scope of that
employment.
Whenever Agency owes a duty hereunder to indemnify RGS, its
employees or agents, Agency further agrees to pay RGS a
reasonable fee for all time spent by any RGS employee, or spent by
any person who has performed work pursuant to this Agreement,
for the purpose of preparing for or testifying in any suit, action, or
legal proceeding in connection with the services the assigned
employee has provided under this Agreement.
Section 18. Notices. All notices required by this Agreement shall be given to Agency
and RGS in writing, by first class mail, postage prepaid addressed as follows:
Agency: City of Arroyo Grande
300 E Branch Street
Arroyo Grande, CA 93420
RGS: Regional Government Services Authority
P. O. Box 1350
Carmel Valley, CA 93924
Email:contracts@rgs.ca.gov
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
on the date first written by their respective officers duly authorized on their behalf.
DATED: __________, 2016 Agency
By: __________________________________
Jim Hill, Mayor
APPROVED AS TO FORM:
DATED: __________, 2016 By: _____
Heather K. Whitham, City Attorney
DATED: __________, 2016 Regional Government Services Authority
By:
Richard H. Averett, Executive Director
APPROVED AS TO FORM:
DATED: __________, 2016 By:
Sky Woodruff, Authority Counsel
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
Exhibit A
Compensation.
1. Fees. The Agency agrees to pay to RGS the hourly rates set forth in the tables
below for each RGS employee providing services to Agency, which are based in
part on RGS’ full cost of compensation and support for the RGS employee(s)
providing the services herein described.
RGS and Agency acknowledge and agree that compensation paid by Agency to
RGS under this Agreement is based upon RGS’s costs of providing the services
required hereunder, including salaries and benefits of employees. The parties
further agree that compensation hereunder is intended to include the costs of
contributions to any pensions and/or annuities for which RGS may be obligated
for its employees or may otherwise be contractually obligated.
Consequently, the parties agree that adjustments to the hourly rate shown below
for “RGS Staff” will be made for changes to the salary and/or benefits costs
provided by RGS to such employee. On July 1 of each year, RGS’ hourly bill rates
will be adjusted by the percentage change in the Employment Cost Index (total
compensation - not seasonally adjusted) for state and local government workers
(“ECI”) from March of the prior year to March of the current year. Irrespective of
the movement of the ECI, RGS will not adjust its hourly rates downward; nor will
RGS adjust its hourly rates upward in excess of a two and one-half percentage
(2.5%) change excepting instances where there was no increase in the prior year’s
hourly rates. In that event, RGS will adjust its hourly rates by the full percentage
change in the ECI from March of the prior year to March of the current year.
2. Reimbursement of RGS’s Administrative Cost. The Agency shall
reimburse RGS for overhead as part of the hourly rate specified below, and direct
external costs. Support overhead costs are those expenses necessary to
administering this Agreement, and are included in the hourly rate. Direct
external costs, including such expenses as travel or other costs incurred for the
exclusive benefit of the Agency, will be invoiced to the Agency when received and
without mark-up. These external costs will be due upon receipt.
3. Terms of Payment. RGS shall submit invoices monthly for the prior month’s
services. Invoices shall be sent approximately 10 days after the end of the month
for which services were performed and are due and shall be delinquent if not
paid within 30 days of receipt. Delinquent payments will be subject to a late
payment carrying charge computed at a periodic rate of one-half of one percent
per month, which is an annual percentage rate of six percent, which will be
applied to any unpaid balance owed commencing 7 days after the payment due
date. Additionally, in the event the Agency fails to pay any undisputed amounts
due to RGS within 15 days after payment due date, then the Agency agrees that
RGS shall have the right to consider said default a total breach of this Agreement
and the duties of RGS under this Agreement may be terminated by RGS upon 5
working days’ advance written notice.
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Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
Payment Address. All payments due RGS shall be paid to:
Regional Government Services Authority
PO Box 1350
Carmel Valley, CA 93924
[EXHIBIT A CONTINUES ON FOLLOWING PAGE]
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AGENCY CONTACTS
Agency Billing Contact. Invoices are sent electronically only. Please provide the
contact person to whom invoices should be sent:
NAME EMAIL
Debbie Malicoat dmalicoat@arroyograde.org
Agency Insurance Contact. Please provide the contact person to whom the
certificate of coverage should be sent:
NAME ADDRESS
Debbie Malicoat City of Arroyo Grande
300 E Branch Street
Arroyo Grande, CA 93420
RGS STAFF
CLASSIFICATION HOURLY RATE*
Interim City Manager $125
*The Hourly Rate does not include direct external costs which will be invoiced to the
Agency with no markup.
Agency shall pay housing allowance of $1,700 per month. This is in
addition to the hourly rate paid for Interim City Manager Services.
Item 9.c. - Page 16
Agreement For Management and Administrative Services Page 15 of 15
Between the City of Arroyo Grande and Regional Government Services Authority August 1, 2016
Exhibit B
Scope of Services. RGS shall assign an RGS employee to perform the functions as
described below:
• Perform the functions of Interim City Manager as assigned.
• Be reasonably available to perform the services during the normal work week, as
agreed upon.
The Interim City Manager will work an average of 32 hours
per week.
• Meet regularly and as often as necessary for the purpose of consulting about the
scope of work performed.
• Perform related work as required.
2687561.2
Item 9.c. - Page 17
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Item 9.c. - Page 18