HomeMy WebLinkAboutMatrix Consulting Group CONSULTING SERVICES AGREEMENT BETWEEN
THE TOWN OF LOS ALTOS HILLS AND
MATRIX CONSULTING GROUP
THIS AGREEMENT for consulting services is made by and between the Town of Los Altos Hills
("Town")and Matrix Consulting Group("Consultant") (together referred to as the"Parties")as of July 20,
2018 (the"Effective Date").
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement,Consultant
shall provide to Town the services described in the Scope of Work attached as Exhibit A. and incorporated
herein,at the time and place and in the manner specified therein. In the event of a conflict in or
inconsistency between the terms of this Agreement and Exhibit A,the Agreement shall prevail.
1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall
end on December 15,2018.Consultant shall complete the work described in Exhibit A on
or before that date,unless the term of the Agreement is otherwise terminated or extended,
as provided for in Section 8. The time provided to Consultant to complete the services
required by this Agreement shall not affect the Town's right to terminate the Agreement,as
referenced in Section 8.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this
Agreement according to the standards observed by a competent practitioner of the
profession in which Consultant is engaged.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement.In the event that Town, in its sole discretion,at any
time during the term of this Agreement,desires the reassignment of any such persons,
Consultant shall, immediately upon receiving notice from Town of such desire of Town,
reassign such person or persons.
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance
provided in Section 1.1 above and to satisfy Consultant's obligations hereunder.
Section 2. COMPENSATION. Town hereby agrees to pay Consultant a sum not to exceed$35,000
(thirty-five thousand dollars),notwithstanding any contrary indications that may be contained in
Consultant's proposal,for services to be performed and reimbursable costs incurred under this Agreement.
In the event of a conflict between this Agreement and Consultant's proposal,attached as Exhibit A,
regarding the amount of compensation,the Agreement shall prevail. Town shall pay Consultant for
services rendered pursuant to this Agreement at the time and in the manner set forth herein. The
payments specified below shall be the only payments from Town to Consultant for services rendered
pursuant to this Agreement. Consultant shall submit all invoices to Town in the manner specified herein.
Except as specifically authorized by Town in writing, Consultant shall not bill Town for duplicate services
performed by more than one person.
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Consultant and Town acknowledge and agree that compensation paid by Town to Consultant under this
Agreement is based upon Consultants estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees,agents,and subcontractors may be eligible. Town
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the
term of this Agreement, based on the cost for services performed and reimbursable costs
incurred prior to the invoice date. Invoices shall be mailed to the Administrative Services
Director,and shall contain the following information:
• Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice,
etc.;
• The beginning and ending dates of the billing period;
• A Task Summary containing the original contract amount,the number of prior
billings,the total due this period,the balance available under the Agreement,and
the percentage of completion;
• The total number of hours of work performed under the Agreement by Consultant
and each employee,agent,and subcontractor of Consultant performing services
hereunder;
• The Consultant's signature;
• Consultant shall give separate notice to the Town if the total number of hours
worked by Consultant and any individual employee,agent,or subcontractor of
Consultant reaches or exceeds 800 hours within a 12-month period under this
Agreement and any other agreement between Consultant and Town. Such notice
shall include an estimate of the time necessary to complete work described in
Exhibit A and the estimate of time necessary to complete work under any other
agreement between Consultant and Town,if applicable.
2.2 Monthly Payment. Town shall make monthly payments,based on invoices received,for
services satisfactorily performed,and for authorized reimbursable costs incurred. Town
shall have 30 days from the receipt of an invoice that complies with all of the requirements
above to pay Consultant.
2.3 Final Payment. Town shall pay the last invoice,equal to 10%of the total contract
($3,500), pursuant to this Agreement within 60 days after completion of the services and
submittal to Town of a final invoice, if all services required have been satisfactorily
performed.
2.4 Total Payment. Town shall pay for the services to be rendered by Consultant pursuant to
this Agreement. Town shall not pay any additional sum for any expense or cost
whatsoever incurred by Consultant in rendering services pursuant to this Agreement.
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Town shall make no payment for any extra,further, or additional service pursuant to this
Agreement.
In no event shall Consultant submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement,
unless the Agreement is modified prior to the submission of such an invoice by a properly
executed change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the compensation schedule attached hereto as Exhibit B.
2.6 Reimbursable Expenses. Reimbursable expenses are not anticipated. Should any
unforeseen expense arise,Consultant shall first obtain the written approval(via email is
acceptable)of the Administrative Services Director or the City Manager prior to billing such
expense to Town.Reimbursable expenses shall not exceed$1,000.
2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes
incurred under this Agreement and any similar federal or state taxes.
2.8 Payment upon Termination. In the event that the Town or Consultant terminates this
Agreement pursuant to Section 8,the Town shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets to verify costs incurred to that date.
2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization from the Contract Administrator.
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein,Consultant shall,at its sole
cost and expense,provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. Town shall make available to Consultant only the facilities and equipment
listed in this section,and only under the terms and conditions set forth herein.
Town shall furnish physical facilities such as desks,filing cabinets,and conference space,as may be
reasonably necessary for Consultant's use while consulting with Town employees and reviewing records
and the information in possession of the Town. The location,quantity,and time of furnishing those facilities
shall be in the sole discretion of Town. In no event shall Town be obligated to furnish any facility that may
involve incurring any direct expense, including but not limited to computer, long-distance telephone or other
communication charges,vehicles, and reproduction facilities.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant,at its own cost and expense,unless otherwise specified below, shall procure the types and
amounts of insurance listed below 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 the Consultant and its agents,
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representatives,employees,and subcontractors. Consistent with the following provisions, Consultant shall
provide proof satisfactory to Town of such insurance that meets the requirements of this section and under
forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work to
the Town. Consultant shall maintain the insurance policies required by this section throughout the term of
this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not
allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance
required herein for the subcontractor(s)and provided evidence that such insurance is in effect to Town.
Verification of the required insurance shall be submitted and made part of this Agreement prior to
execution. Consultant shall maintain all required insurance listed herein for the duration of this Agreement.
4.1 Workers'Compensation. Consultant shall, at its sole cost and expense, maintain
Statutory Workers'Compensation Insurance and Employers Liability Insurance for any
and all persons employed directly or indirectly by Consultant. The Statutory Workers'
Compensation Insurance and Employers Liability Insurance shall be provided with limits of
not less than$1,000,000 per accident. In the alternative,Consultant may rely on a self-
insurance program to meet those requirements, but only if the program of self-insurance
complies fully with the provisions of the California Labor Code. Determination of whether a
self-insurance program meets the standards of the Labor Code shall be solely in the
discretion of the Contract Administrator.The insurer, if insurance is provided,or the
Consultant, if a program of self-insurance is provided,shall waive all rights of subrogation
against the Town and its officers,officials,employees,and volunteers for loss arising from
work performed under this Agreement.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General requirements. Consultant,at its own cost and expense,shall maintain
commercial general and automobile liability insurance for the term of this
Agreement in an amount not less than$1,000,000 per occurrence,combined
single limit coverage for risks associated with the work contemplated by this
Agreement. If a Commercial General Liability Insurance or an Automobile Liability
form or other form with a general aggregate limit is used,either the general
aggregate limit shall apply separately to the work to be performed under this
Agreement or the general aggregate limit shall be at least twice the required
occurrence limit. Such coverage shall include but shall not be limited to, protection
against claims arising from bodily and personal injury,including death resulting
therefrom,and damage to property resulting from activities contemplated under
this Agreement, including the use of owned and non-owned automobiles.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 (most recent edition)covering comprehensive General Liability on an
°occurrence"basis. Automobile coverage shall be at least as broad as Insurance
Services Office Automobile Liability form CA 0001 (most recent edition), Code 1
(any auto). No endorsement shall be attached limiting the coverage.
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4.2.3 Additional requirements. Each of the following shall be included in the
insurance coverage or added as a certified endorsement to the policy:
a. The Insurance shall cover on an occurrence or an occurrence basis,and
not on a claims-made basis.
b. Town, its officers,officials,employees, and volunteers are to be covered
as insureds as respects:liability arising out of work or operations
performed by or on behalf of the Consultant;or automobiles owned,
leased, hired,or borrowed by the Consultant
c. For any claims related to this Agreement or the work hereunder,the
Consultant's insurance covered shall be primary insurance as respects
the Town, its officers,officials, employees, and volunteers. Any insurance
or self-insurance maintained by the Town, its officers,officials,employees,
or volunteers shall be excess of the Consultant's insurance and shall not
contribute with it.
d. Each insurance policy required by this clause shall be endorsed to state
that coverage shall not be canceled by either party,except after 30 days'
prior written notice has been provided to the Town.
4.3 Professional Liability Insurance.
4.3.1 General requirements. Consultant,at its own cost and expense,shall maintain
for the period covered by this Agreement professional liability insurance for
licensed professionals performing work pursuant to this Agreement in an amount
not less than$1,000,000 covering the licensed professionals'errors and
omissions. Any deductible or self-insured retention shall not exceed$150,000 per
claim.
4.3.2 Claims-made limitations. The following provisions shall apply if the professional
liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be
provided for at least five years after completion of the Agreement or the
work,so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant must purchase an extended period coverage
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for a minimum of five years after completion of work under this
Agreement.
d. A copy of the claim reporting requirements must be submitted to the Town
for review prior to the commencement of any work under this Agreement.
4.4 All Policies Requirements.
4.4.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests'rating of no less than A:VII.
4.4.2 Verification of coverage. Prior to beginning any work under this Agreement,
Consultant shall furnish Town with complete copies of all policies delivered to
Consultant by the insurer, including complete copies of all endorsements attached
to those policies. All copies of policies and endorsements shall show the signature
of a person authorized by that insurer to bind coverage on its behalf. If the Town
does not receive the required insurance documents prior to the Consultant
beginning work,it shall not waive the Consultant's obligation to provide them. The
Town reserves the right to require complete copies of all required insurance
policies at any time.
4.4.3 Deductibles and Self-Insured Retentions. Consultant shall disclose to and
obtain the mitten approval of Town for the self-insured retentions and deductibles
before beginning any of the services or work called for by any term of this
Agreement. At the option of the Town,either:the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects the Town,its officers,
employees,and volunteers;or the Consultant shall provide a financial guarantee
satisfactory to the Town guaranteeing payment of losses and related
investigations,claim administration and defense expenses.
4.4.4 Wasting Policies. No policy required by this Section 4 shall include a",vasling"
policy limit(i.e.limit that is eroded by the cost of defense).
4.4.5 Waiver of Subrogation. Consultant hereby agrees to waive subrogation which
any insurer or contractor may require from vendor by virtue of the payment of any
loss. Consultant agrees to obtain any endorsements that may be necessary to
affect this waiver of subrogation.
The Workers'Compensation policy shall be endorsed with a waiver of subrogation
in favor of the entity for all work performed by the consultant,its employees,
agents,and subcontractors.
4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and endorsements for each
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subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.5 Remedies. In addition to any other remedies Town may have if Consultant fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
herein required,Town may,at its sole option exercise any of the following remedies,which
are alternatives to other remedies Town may have and are not the exclusive remedy for
Consultant's breach:
• Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
• Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder,or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof;and/or
• Terminate this Agreement.
Section 5. INDEMNIFICATION AND CONSULTANTS RESPONSIBILITIES.
Consultant shall indemnify,defend with counsel acceptable to Town, and hold harmless Town and its
officers,officials, employees,agents and volunteers from and against any and all liability, loss,damage,
claims,expenses,and costs(including without limitation, attorney's fees and costs and fees of litigation)
(collectively,"Liability")of every nature arising out of or in connection with Consultant's performance of the
Services or its failure to comply with any of its obligations contained in this Agreement,except such Liability
caused by the sole negligence or willful misconduct of Town.
The Consultant's obligation to defend and indemnify shall not be excused because of the Consultant's
inability to evaluate Liability or because the Consultant evaluates Liability and determines that the
Consultant is not liable to the claimant. The Consultant must respond within 30 days,to the tender of any
claim for defense and indemnity by the Town, unless this time has been extended by the Town. If the
Consultant fails to accept or reject a tender of defense and indemnity within 30 days, in addition to any
other remedy authorized by law, so much of the money due the Consultant under and by virtue of this
Agreement as shall reasonably be considered necessary by the Town, may be retained by the Town until
disposition has been made of the claim or suit for damages,or until the Consultant accepts or rejects the
tender of defense,whichever occurs first.
With respect to third party claims against the Consultant,the Consultant waives any and all rights of any
type to express or implied indemnity against the Indemnitees.
Notwithstanding the forgoing,to the extent this Agreement is a"construction contract"as defined by
California Civil Code Section 2782,as may be amended from time to time,such duties of consultant to
indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782.
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In the event that Consultant or any employee,agent,or subcontractor of Consultant providing services
under this Agreement is determined by a court of competent jurisdiction or the California Public Employees
Retirement System(PERS)to be eligible for enrollment in PERS as an employee of Town, Consultant shall
indemnify,defend,and hold harmless Town for the payment of any employee and/or employer
contributions for PERS benefits on behalf of Consultant or its employees,agents,or subcontractors, as well
as for the payment of any penalties and interest on such contributions,which would otherwise be the
responsibility of Town.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement,Consultant shall
be an independent contractor and shall not be an employee of Town. Town shall have the
right to control Consultant only insofar as the results of Consultant's services rendered
pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3;
however,otherwise Town shall not have the right to control the means by which
Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding
any other Town,state,or federal policy, rule,regulation,law, or ordinance to the contrary,
Consultant and any of its employees,agents,and subcontractors providing services under
this Agreement shall not qualify for or become entitled to, and hereby agree to waive any
and all claims to,any compensation,benefit,or any incident of employment by Town,
including but not limited to eligibility to enroll in the California Public Employees Retirement
System(PERS)as an employee of Town and entitlement to any contribution to be paid by
Town for employer contributions and/or employee contributions for PERS benefits.
6.2 Consultant Not an Agent. Except as Town may specify in writing,Consultant shall have
no authority,express or implied,to act on behalf of Town in any capacity whatsoever as an
agent. Consultant shall have no authority,express or implied,pursuant to this Agreement
to bind Town to any obligation whatsoever.
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. Consultant and any subcontractors shall comply with
all laws applicable to the performance of the work hereunder.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Consultant and any subcontractors
shall comply with all applicable rules and regulations to which Town is bound by the terms
of such fiscal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to Town that Consultant and
its employees, agents,and any subcontractors have all licenses, permits,qualifications,
and approvals of whatsoever nature that are legally required to practice their respective
professions. Consultant represents and warrants to Town that Consultant and its
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employees, agents,any 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. In addition to me foregoing,
Consultant and any subcontractors shall obtain and maintain during the term of this
Agreement a valid Business Licenses from Town.
7.5 Nondiscrimination and Eaual Opportunity. Consultant 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 by Consultant under this
Agreement. Consultant 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, including but not limited to the satisfaction of any positive obligations required
of Consultant thereby.
Consultant shall include the provisions of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. Town may cancel this Agreement at any time and without cause upon
written notification to Consultant.
Consultant may cancel this Agreement upon thirty(30)days'written notice to Town and
shall include in such notice the reasons for cancellation.
In the event of termination,Consultant shall be entitled to compensation for services
performed to the effective date of termination;Town, however,may condition payment of
such compensation upon Consultant delivering to Town any or all documents,
photographs,computer software,video and audio tapes,and other materials provided to
Consultant or prepared by or for Consultant or the Town in connection with this
Agreement.
8.2 Extension. Town may,in its sole and exclusive discretion,extend the end date of this
Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a
written amendment to this Agreement, as provided for herein. Consultant understands and
agrees that, if Town grants such an extension,Town shall have no obligation to provide
Consultant with compensation beyond the maximum amount provided for in this
Agreement. Similarly, unless authorized by the Contract Administrator,Town shall have
no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred
during the extension period.
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8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the
parties.
8.4 Assignment and Subcontracting. Town and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant's unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to Town for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Consultant shall not subcontract any portion of the
performance contemplated and provided for herein, other than to the subcontractors noted
in the proposal,without prior written approval of the Contract Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between Town and Consultant shall survive
the termination of this Agreement.
8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement,Town's remedies shall include,but not be limited to,the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications,drawings, reports,design documents,and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to complete the work described in Exhibit A not
finished by Consultant;or
8.6.4 Charge Consultant the difference between the cost to complete the work
described in Exhibit A that is unfinished at the time of breach and the amount that
Town would have paid Consultant pursuant to Section 2 if Consultant had
completed the work.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant's Performance. All 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
Consultant prepares or obtains pursuant to this Agreement and that relate to the matters
covered hereunder shall be the property of the Town. Consultant hereby agrees to deliver
those documents to the Town upon termination of the Agreement. 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 Town and are
not necessarily suitable for any future or other use. Town and Consultant agree that, until
final approval by Town,all data,plans, specifications, reports and other documents are
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confidential and will not be released to third parties without prior written consent of both
parties.
9.2 Consultant's Books and Records. Consultant 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 Town under this Agreement for a minimum of 3 years,or for any longer period
required by law,from the date of final payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Consultant 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 Town. Under California Government Code Section 8546.7,if the amount of public
funds expended under this Agreement exceeds$10,000.00,the Agreement shah be
subject to the examination and audit of the State Auditor,at the request of Town or as part
of any audit of the Town,for a period of 3 years after final payment under the Agreement.
Section 10 MISCELLANEOUS PROVISIONS.
10.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for
declaratory relief,to enforce or interpret the provision of this Agreement,the prevailing
party shall be entitled to reasonable attorneys'fees in addition to any other relief to which
that party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
10.2 Venue. In the event that either party brings any action against the other under this
Agreement,the parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County of Santa Clara or in the United States District Court
for the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid,void,or unenforceable,the provisions of this Agreement not so
adjudged shall remain in full force and effect. The invalidity in whole or in part of any
provision of this Agreement shall not void or affect the validity of any other provision of this
Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the parties.
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10.6 Use of Recycled Products. Consultant shah prepare and submit all reports,written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
10.7 Conflict of Interest. Consultant may serve other clients,but none whose activities within
the corporate limits of Town or whose business, regardless of location,would place
Consultant in a"conflict of interest,"as that term is defined in the Political Reform Act,
codified at California Government Code Section 81000 et seq.
Consultant shall not employ any Town official in the work performed pursuant to this
Agreement. No officer or employee of Town shall have any financial interest in this
Agreement that would violate California Government Code Sections 1090 et seq.
Consultant hereby warrants that it is not now, nor has it been in the previous 12 months,
an employee,agent, appointee,or official of the Town. If Consultant was an employee,
agent,appointee,or official of the Town in the previous twelve months, Consultant
warrants that it did not participate in any manner in the forming of this Agreement.
Consultant understands that,if this Agreement is made in violation of Government Code§
1090 et seq.,the entire Agreement is void and Consultant will not be entitled to any
compensation for services performed pursuant to this Agreement, including reimbursement
of expenses,and Consultant will be required to reimburse the Town for any sums paid to
the Consultant. Consultant understands that, in addition to the foregoing, it may be subject
to criminal prosecution for a violation of Government Code§ 1090 and, if applicable,will
be disqualified from holding public office in the State of California.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting,focus group,or
interview related to this Agreement,either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by Carl Cahill("Contract
Administrator"). All correspondence shall be directed to or through the Contract
Administrator or his or her designee.
10.10 Notices. Any written notice to Consultant shall be sent to:
Courtney Ramos,Vice President
Matrix Consulting Group
201 San Antonio Circle
Suite 148
Mountain View, CA 94040
Any written notice to Town shall be sent to:
Carl Cahill, City Manager
26379 Fremont Rd.
Los Altos Hills,CA 94022
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10.12 Integration. This Agreement, including the scope of work attached hereto and
incorporated herein as Exhibits A, and B represents the entire and integrated agreement
between Town and Consultant and supersedes all prior negotiations,representations, or
agreements,either written or oral.
Exhibit A Scope of Services
Exhibit B Hourly Compensation Schedule
10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be an original and all of which together shall constitute one agreement.
The Parties have executed this Agreement as of the Effective Date.
TOWN OF LOS ALTOS HIL CONSULTANT
Carl Cahill, City Manager Courtney Ramos, -- P =-ident
Attest:
/111/ /
Deborah Padovan, Town Clerk
Approved as to Form:
Steven T. Mattes,Town Attomey
1070873.1
Consulting Services Agreement between July 20,2018
Town of Los Altos Hills and Matrix Consulting Group Page 13 of 18
RESOLUTION 56-18
A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS
AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH
MATRIX CONSULTING GROUP FOR AN AMOUNT NOT TO EXCEED $35,000 FOR
PREPARATION OF A COST ALLOCATION PLAN AND USER FEE STUDY
WHEREAS, the City Council of the Town of Los Altos Hills approved solicitation of bid
proposals for an organizational assessment; and
WHEREAS, the Request for Proposal was emailed to four consulting companies and posted on
the California Society of Municipal Finance Officer website; and
WHEREAS,the Town received five proposals; and
WHEREAS, the Town's financial consultant from Management Partners, along with two
Finance Directors and one Assistant Finance Director from other cities reviewed the proposals
and conducted in-person interviews of four firms; and
WHEREAS, Matrix Consulting Group is best suited to provide the needed services, and
received outstanding references; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Town of Los Altos
Hills that the City Manager is hereby authorized on behalf of the Town to enter into a consulting
contract with Matrix Consulting Group,with a not to exceed amount of$35,000; and
NOW,THEREFORE, BE IT RESOLVED that the Administrative Services Director is hereby
authorized to utilize $14,500 in leftover funds from the 2017-18 Administrative Services budget
to pay for a portion of the costs, along with the $25,000 in new funding budgeted in 2018-19.
The $4,500 in additional funds over$35,000 may be used for contingencies, if necessary.
The above and foregoing Resolution was passed and adopted by the City Council of the Town of
Los Altos Hills at a regular meeting held on 10 day of July,2018 by the following vote:
AYES: Radford, Spreen, Corrigan, Waldeck, Wu
NOES: None
ABSTAIN: None
ABSENT: None
BY:
ohn Radford, Mayor
ATTEST:
Yia
Deborah Padovan, City Clerk
Resolution 56-I8 Page I
Exhibit A
Scope of Work
OVERHEAD COST ALLOCATION PLAN AND
COMPREHENSIVE USER FEE STUDY
LOS ALTOS HILLS
✓'fid" 1
CALIFORNIA
Project Background
The purpose of this project is to ensure that the Town of Los Altos Hills is utilizing
justifiable overhead allocation rates and accurately accounting for the true cost of
providing various programs and services within Town operations. It is the Town's
goal to have a well-documented and defensible cost allocation plan that will
incorporate appropriate general and administrative cost allocations into the
budget; identify overhead rates that can be used in the calculation of billable
hourly rates for grants, fees, federal reimbursements, and other billings; and
develop charges for user fees that comply with Proposition 218 and Proposition
26.
PROJECT SCOPE OF WORK
A. Project Scope—Overhead Cost Allocation Plan (CAP)
Project tasks shall include, but are not necessarily limited to, the following. If
the consultant feels that additional tasks are warranted, they must be clearly
identified in the consultant's proposal.
1. Work with selected Town staff to refine the project scope, purpose, uses
and goals of the Town's CAP to ensure that the Plan is both accurate and
defensible.
Consulting Services Agreement between July 20,2018
Town of Los Altos Hills and Matrix Consulting Group Page 14 of 18
2. Work with the Town staff in developing cost categories and allocation
criteria for current and future programs.
3. Meet with staff, conduct preliminary and follow-up interviews as needed to
gain an understanding of the Town's practices and operations and review
any background materials from the Town as needed.
4. Prior to follow-up interviews described in A-3 above, and prior to developing
the CAP and User Fee Study, meet along with Administrative Services
Director and/or Town Financial Consultant to present Finance and
Investment Subcommittee the cost allocation and user fee methodology and
receive comments for consideration. An estimated 2 hours of meetings with
the Subcommittee may be required here.
5. Develop an Overhead CAP for calculating both the full costs of providing
departmental and city services, and the OMB compliant costs. The model
shall allow for:
a) Additions, revisions or removal of direct and overhead costs so that
the overhead cost allocation plan can be adapted to a range of
activities which may have differing cost recovery goals.
b) Calculation of citywide overhead rates and a fully burdened rate for
each position in the Town, including documentation which
supports those rates.
c) Be used for budget setting and also for "truing up" based on actual
expenditures at year end.
6. Work with staff to test alternative conditions of work volume that may impact the
overhead allocation to departments. For example, if overhead is set assuming a
certain volume of budgeted activity for the Planning and Building Divisions, how
would (or how should) a change in that work volume, either up or down, impact
the overhead allocation at the end of that year? The results of this analysis will
be an important part of the subsequent presentations to the Finance Committee,
as discussed below.
7. Deliver presentations on the Plan to the Finance and Investment Committee for
review first, and then the Town Council. Make necessary revisions to the Plan as
required, based on input. Proposal should assume the consultant will attend
approximately two Finance and Investment Committee and subcommittee
meetings for up to 3 hours each (total of 6 hours), including work described in A-
4 above, and one subsequent meeting with the City Council for up to 90 minutes.
(These time estimates assume total time needed for presentation of both the
CAP and the Fee Study). Depending on the questions and input from the
Consulting Services Agreement between July 20,2018
Town of Los Altos Hills and Matrix Consulting Group Page 15 of 18
Committee and the Council, additional meetings may be required. It is assumed
those additions, if required, will be compensated as additional services based
upon hourly rates shown in Exhibit B.
8. Review and test the Excel model with Town staff to ensure they can use it and
update it when it is finalized.
9. Prepare a final report and provide four (4) bound copies, one unbound copy, and
an electronic model in Excel which can be updated in subsequent years by Town
staff. Either the report or the model should contain documentation on the
methodology used for each allocation, and the rationale/basis for that allocation.
Excel model should contain documentation on how to perform annual updates.
10. Be available to consult with Town staff on use of the model or should the need
arise in the future to defend the cost allocation plan as a result of audits or other
challenges.
B. Project Scope— User Fee Study
The consultant shall conduct a comprehensive review of the cost of service structure
with the goal of establishing a consistent, defensible, and objectively based set of
user fees. User fees may include per-employee charge-out rates, if applicable, using
results from the CAP for overhead costs. (Sewer rates and AB 1600 impact fees are
excluded from this study).
Project tasks shall include, but are not necessarily limited to, the following. If the
consultant feels that additional tasks are warranted, they should be discussed in the
consultant's proposal.
1. A review of the documentation supporting the current fee structures for all
departments and services.
2. Utilize the CAP developed as part of this project to calculate the costs of
providing current levels of specific city services.
3. Prepare a User Fee Study, including modifications to the current fee
categories, if outdated. Fee study should also include a billable rate
schedule for specific employees/categories, where appropriate, taking into
account the total costs of each service.
4. The report should also identify/separate the direct costs from the indirect
and/or overhead costs for each service/fee category.
5. Provide a survey comparison and analysis of recommended fees with similar
and neighboring cities such as Los Altos, Los Gatos, Palo Alto, Atherton,
Woodside, Cupertino, and Saratoga. This information will be used in
presenting fee recommendations to the Finance and Investment Committee
and the Council, for their reference.
6. Review draft report with City Manager, Finance and Department staff.
Consulting Services Agreement between July 20,2018
Town of Los Altos Hills and Matrix Consulting Group Page 16 of 18
7. Prepare and deliver presentations to the Finance & Investment Committee
and/or Subcommittee to facilitate their understanding of the plan and its
implications for the Town and make necessary adjustments as required
before presenting to the Town Council. As discussed in Section A-7 above,
staff expects that two meetings will be required with the Committee and/or
Subcommittee for up to 3 hours each meeting (up to 6 hours total), and one
meeting with the City Council of up to 90 minutes in total for both the CAP
and the User Fee Study.
8. Review and test the Excel model with Town staff to ensure they can use it
and update it when it is finalized.
9. Prepare a final report and provide four(4) bound copies, one unbound copy,
and a single PDF/Word file to the Town, including an electronic model in
Excel which can be updated by Town staff in the future. Excel model should
contain documentation on how to perform annual updates.
10. Consult with Town staff in the future should it become necessary to defend
the Town's User Fees as a result of any other challenge.
Consulting Services Agreement between July 20,2018
Town of Los Altos Hills and Matrix Consulting Group Page 17 of 18
Exhibit B
HOURLY COMPENSATION SCHEDULE
Courtney Ramos, Project Manager: $175/hr.
Khushboa Hussain, Lead Project Analyst $125/hr.
Jessica Deshong, Data Analyst $75/hr.
Consulting Services Agreement between July 20,2018
Town of Los Altos Hills and Matrix Consulting Group Page 18 of 18
353004
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THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
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If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on
this certificate does not confer rights to the certificate holder in lieu of such endorsement(sl.
PRODPROUCECER0974 ACT Samuel Vazquez
JUPHONE E,I.S02-666-4633 FAX,NoI;610-537-2283
USI Insurance Services Inc. ,MAII-
ADDRESS;rs_ 1gamuel.Vazquez@usi.com
8331 Norman Center Dr,Ste 500 --
INSURERIS)AFFORDING COVERAGE _ NAIC0
Bloomington,MN,55437 INSURER A: Sentinel Insurance Co.Ltd 11000
INSURED INSURERS: Sentinel Insurance Company Ltd. 11000
Matrix Consulting Group,Ltd
INSURER C: Twin City Fire Insurance Company 29459
201 San Antonio Cir Suite 148 INSURER o; Philadelphia Insurance Company 23850
INSURER
Mountain View,CA 940401254 INSURER F'.
COVERAGES CERTIFICATE NUMBER: 13275315 REVISION NUMBER: Sae below
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT.TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
Iint NSR TYPE OF INSURANCE POOL SUER POLICY EFF POLICY EXP EO YWLD POLICY NUMBER IMMID[YYYY) IMEVngYYYYI AMTS
A X COMMERCIAL GENERAL WBEI}Y 41SBAR001349 8/8/2017 8/8/2018 EACH OCCURRENCEAGE TO 2.000IX0
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AUTOMOBILE WBILILYGMIBINEO SINGLE LIMB
A 41SBAR00B49 8/812017 8/8/2018 IES acidHln s x.aoo.000
ANY AUTO BODILY INJURY(Per person) $
OWNED —SCHEDULED BODILY INJURY(Per accident) S
AUTOS ONLY AUTOS
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AUTOS ONLY -AUTOS ONLY (Pe.acpgpla
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B UMBRELLA LAB x OCCUR 41SBAR00849 81812017 8/8/2018 EACH OCCURRENCE S SI,W. ,002
EXCESS UAB CLAIMS-MADE AGGREGATE S $10.^0,002
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WORKERS COMPENSATOR PEP
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OFFICERMEM ERE%CNER/EXACUTIVE Y7 LUDED? NIA EL.EACH ACCIDENT $ 1'WO"D'tl
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DESCRIPTION OF OPERATIONS below EL.DISEASE-POLICYLIMIT 5
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DESCRIPTION OF OPERATONSI LOCATIONS VEHICLES(ACORD le1,Addabnel Remnksscnesub,may be attached it mon space M required)
550008-0405 Certificate holder is named as additional insured as It relates to general 8 auto liability 8 waiver of subrogation is granted as it relates to
general and auto liability and workers comp in accordance with the terms and conditions of the policies.Umbrella follows form as it relates to additional
insureds.The above coverage is primary and noncontributory where required by written contract.
CERTIFICATE HOLDER CANCELLATION
Town Of Los Altos Hills SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
26379 Fremont RD THE EXPIRATION DATE THEREOF, NOTICE WILL BE DEUVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
Los Altos Hills,CA 94022
AUTHORIZED REPRESENTATHE
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The ACORD name and logo are registered marks of ACORD ®1988-2015 ACORD CORPORATION. All rights reserved.
ACORD 25(2016103)
•
Client Code:353004 SID:13275315
Certificate of Insurance (Con't)
OTHER Coverage
INSR TYPE OF INSURANCE ADDL WVD POLICY NUMBER EFFECTIVE DATE EXPIRATION DATE LIMIT
LTR INSR SUBR (MMDD/YY) (MMDDIN/)
D Directors&Officers PH501260210 7/15/2017 7/15/2010 $�,pA,WJ51,cm,mu
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Certificate of Insurance-Cony