Loading...
HomeMy WebLinkAbout18-City Manager CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Charles McNeely, City Manager Subject: Resolution authorizing execution of a Master Services Memorandum of Understanding by and between the City of San Bernardino and the Water Department for City-provided services for FY 2010/11. Dept: City Manager's Office Date: August 8, 2011 MICC Meeting Date: August 15, 2011 Synopsis of Previous Council Action: 1997 through 2009 - Resolutions are adopted annually authorizing Master Services Memorandums of Understanding with the Water Department for the provision of City Services. Recommended Motion: Adopt resolution. J,IIdIJ. rilL! (r~'&atic)J.L, Sign ture Contact person: Barbara Pachon Phone: 5242 Supporting data attached: SR Resolution & MOU Ward: FUNDING REQUIREMENTS: Amount: Reimbursement to be made to various City funds for services provided, as outlined in the staff report. Source: (Acct. No.) (A,.,.t Des"rirtinn) Finance: Council Notes: Agenda Item No. :~ / R i?:l.s-//I Atw &d Vf CITY OF SAN BERNARDINO - REOUEST FOR COUNCIL ACTION Staff Report SUBJECT: Resolution of the City of San Bernardino authorizing the City Manager to execute a Master Services Memorandum of Understanding with the Water Department for payment of City services for FY 2010-11. BACKGROUND: Each year, the Water Department and City enter into a Master Services Memorandum of Understanding (MOU), for the City to provide various support services for the water and sewer treatment operations. On April 19, 2011, the Water Department approved payment of a Master Services MOU for Fiscal Year 2010-11. On May 16,2011, the proposed agreement was presented to the Mayor and Common Council for consideration and was continued until the Cost Allocation Plan (CAP) and Right of Way Study (ROW) were completed. Now that the CAP and ROW have been completed, the MOU for FY 2010- 2011 can be finalized. The MOU has been modified to now include three types of costs to the Water Department. The first type of cost is the allocated central support costs that are included in the CAP. The CAP costs replace the previous central support costs that were individually listed in the MOU as well as paid for with the flat 10% transfer from Water to the City. Having these costs documented in an approved CAP helps ensure the City and Water Department are in compliance with Proposition 218. The costs allocated in the CAP were calculated based on the "best available data and methodology at this time". The City and Water Department staff have agreed to continue meeting to further refine both the data and methodology and any necessary adjustments for future years will be brought back for approval. The second type of cost is the rental fee for use of the City's Right-of-Way by utilities. Since Water has underground infrastructure in the City's right-of-way area, a standard method was used to calculate the value of the public right-of-way and an inventory of the space occupied was computed. From this data a reasonable rental fee was established. The third type of cost is the direct billed contract costs. These costs are not included in the CAP and therefore the Water Department is directly billed for the services they receive. The City's Internal Service Funds are all direct billed services which include such services as Information Technology (IT), Telephone Support, and Worker's Compensation. In addition to direct billed contracts for the Internal Service Funds, the Water Department also has a direct bill contract with the City for AB 2766 Transportation Services. By participating in the City's transportation services, the Water Department is able to maintain compliance with the Air Quality Management District (AQMD) regulations. Attachment I provides a summary breakdown of all the costs to be included in the FY 2010-2011 MOU with the Water Department. These costs are distributed between the water and sewer treatment operations in the Water Department. FINANCIAL IMP ACT: The reimbursement amounts to the City from the Water Department's Master Services Memorandum of Understanding are as follows: IT Fund (679) FY 10111 $3,853,800 10,000 5,200 28,230 126,400 412,000 522,267 Total $4,957,897 The above listed items have been included in the FY 2010-11 budget. RECOMMENDATION: Adopt resolution. ... - I: GI E .c u :ll! <( Cl C.!: Q)'O E C ~,f! III 1/1 c.... Q) Q) c"g ...=> .S!- IllO~ 3:E~ 'O::lo <<: '0 ~ Co . Ill~ v...O ~~N "'Q))- :g:::a=u. ... 1/1 Q) Q) In CJ C .~ III Q) tJ)tJ) - o ... >>Q) -- ._ 1/1 U III :::a= :2 1lI- c..c.. GI ./!IC Ul .. 8~ E3: E >- G..c - I: GI .s 1lI'C ~ I: - ::l ..LL. GI ;: ~ 'C C ::l LL. .. .!l III 3: ... I: GI E 1:: III c.. GI C .. GI - III 3: E ~ ... ~ o .s :2 III c.. - Ul o o ;.: ... ,g t: ./!I Ul o o 1:: I: III go:: g I: l/) .2 - III III .. U _ 0 1:- GI<( 0_ 'C Ul GI 0 -0 III U .2 <( o o "'". ~ co N C") ~ o o o o o LD ~ o o "'". ~ co r-- N ~ .;.: N ,g C ./!I Ul o GI OGl LL. J!I>- I: III Gl3: 0::.,:. ~9 3:'::: ,Cl ... .- 00:: .,!. .c ~ 0:: o o "'". N (j) LD o o "'". N (j) LD o o CIC!. M II) CIC!. M .,. o o C!- o o II) .,. o o co M II) Mo M .,. ./!I Ul o o N 06 ... GI c.. >- I- J!I .s ..c ::l l/) ooooor-- ooC")ooco O.C\!.N.",".O.C\!. OLDOOCONN 'If"'" NN'If""'N ~","LD ~ Ul .s .. Cll 200 I: (]) (])Ola. en 0 .. E E~(])~O Cll .- en " 0 .. 2: I: '-' en en Ol(])O(])..(]) e(/)g.Ol~o a.. .. (]) Cll .. .~ Q.) 0 ~ l/) 0 Q) O-(])=>:;;:(/) I: ~ "0 Cll ._ .- E "0 t _"O:;;:(])l:o cn~l-ro:a. '(ii 0 >- en I: a. CJ)o~>'o::l <( () 0 (/) ._ (/) (])_I<1>rorr... Q.) cJ:::i<D a.>rouoC/)_ >-.s::: (]) .s::: .- OJ .!2 t/J '- a..5 0- Ea.~O(])EE ._ CO (]) "0 0 WO::(/)I-<(() ;.: M .g t: ./!I Ul o o C 'C I: >- OC..I:OCl :;:; ,2 GI ::l:;:; 0 cu.......LLns- Ul~I:1::UlO I:GlOOGlOI:I: - c.. c.. _ c..c.. 8. "5 UEUl- EGI ,go;~~ol- 1:0"GlGlog 8 Ul :; 01: 01: .Ul :;:; "~CDJ:J:~ca 'CGI.....c..c..~E .!!-fNQ)Q)...... mOal<(GiGig~ _3: 1-1->- U ~ C '..... en o ..; o ... ... .,. ./!I Ul o o M GI c.. >- I- J!I o - ..c ::l l/) ..... en CIC!. ..... II) en ..; .,. - c.. GI C .. .!l III 3: >- ..c 'C 'n; a.. ./!I Ul o o <( J!I o I- 'C C l! C) o 00 co 000 o. "'". "'". "'" LD en "'" N (Q ~ .,. en en .. .. Cll Cll (]) (]) >->- LDLD .. .. ~..E 000 00 0"," -.i.n ","N ~~ en en >->- Cll Cll a. a. Z'Z' 66 ~ o E o .. ... - I: GI E 1:: e GI C .. .!l III 3: o - 'C ~ - Ul o o - I: GI E GI 1:: III -g c.. .. GI ClC c.. .. ::l GI -- I: III GlGI3: 'C E >- 1lIc..1lI ...- a. Cl::l c..C"0 ;:,GI- .cg.~ ~~ 0 ;:u- '^ III J!I w..c 0 GI..I- I: GI 0- .c::l c..c.. GI E -0 :!'-o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A MASTER SERVICES MEMORANDUM OF UNDERSTANDING WITH THE WATER DEPARTMENT FOR PROVISION OF CITY SERVICES FOR FISCAL YEAR 2010/2011. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: WHEREAS, The City of San Bernardino ("City") provides certain services to the Water Department ("Department") for which the Department compensates the City; and WHEREAS, it is the desire of the City and the Water Department to enter into a Memorandum of Understanding to memorialize these services; NOW, THEREFORE, BE IT RESOLVED by the Mayor and Common Council of the City of San Bernardino that the Master Services Memorandum of Understanding between the City and the Water Department setting forth the services that are to be provided by the City to the Water Department and the compensation to be paid therefore, a copy of which is attached hereto and incorporated herein as Exhibit "A", is hereby adopted. SECTION 1. The City Manager of the City of San Bernardino is hereby authorized and directed to execute on behalf of said City the Master Services Memorandum of Understanding. SECTION 2. That the implementation date of the Agreement is July I, 2010; therefore, any action taken between July I, 2010 and the date that this Resolution is adopted is hereby ratified. SECTION 3. The authorization granted hereunder shall expire and be void and of no further effect if the agreement is not executed and returned to the Office of the City Clerk within ninety (90) days following the effective date of this resolution. 1 2 3 4 5 6 7 8 9 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A MASTER SERVICES MEMORANDUM OF UNDERSTANDING WITH THE WATER DEPARTMENT FOR PROVISION OF CITY SERVICES FOR FISCAL YEAR 2010/2011. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held day of ,2011, by the following vote, to wit: on the Council Members: NAYS ABSTAIN ABSENT AYES MARQUEZ 10 JENKINS 11 12 13 14 15 16 MCCAMMACK BRINKER SHORETT KELLEY JOHNSON 17 18 19 20 201l. 21 22 23 24 Approved as to Form: 25 26 27 James F. Penman, City Attorney 28 Rachel G. Clark, City Clerk The foregoing resolution is hereby approved this day of Patrick J. Morris, Mayor City of San Bernardino EXHIBIT A 1 MASTER SERVICES 2 MEMORANDUM OF UNDERSTANDING 3 4 THIS MEMORANDUM OF UNDERSTANDING is made and entered into by and 5 between the City of San Bernardino, a charter city ("City"), and the Board of Water 6 Commissioners of the City of San Bernardino ("Board"), who agree that the City shall provide 7 services and the Board shall compensate City as follows: 8 I. SUPPORT SERVICES. The City shall provide to the City of San Bernardino 9 Municipal Water Department ("Department") the services of its City departments in 10 support of Department operations. These services to be provided from the City 11 include the following: 12 A. General administrative and legislative support. Includes the Mayor, City 13 Council, City Clerk, City Manager and General Government Services. 14 B. Human Resources/Civil Services/Equal Emplovment Officer. Typical 15 services of the Chief Examiner and Civil Service include, but are not limited 16 to, testing, certification of eligible employees for outside recruitment and 17 promotions, testing standards for positions in the Department, and 18 administrative hearings on discharges and reductions in rank or 19 compensation. Typical services of Human Resources include, but are not 20 limited to, conducting outside recruitments; administering employee health, 21 dental, vision, and life insurance programs; approving job descriptions, 22 minimum qualifications, administering the Public Employees Retirement 23 System contract and providing the services of the Equal Employment 24 Officer. Department shall also pay to City the actual costs of recruitment- 25 related advertising that is requested by Department. 26 C. Financial/Treasurv Services. Typical financial and treasury services include, 27 but are not limited to, banking, investments, deferred compensation program, 28 -1- 1 2 3 D. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Comprehensive Arumal Financial Report, accounting services for employee health, dental, vision, and life insurance programs. Attornev/Lel?-al Services. The City Attorney shall act as General Counsel to the Department and perform all of its legal work. The City Attorney shall assign sufficient staff to perform the legal services needed by the Department, and such services shall be given priority 1. Outside Counsel. The parties contemplate the continued need for the Department to utilize services of outside special counsel, particularly in water rights matters. The City Attorney and the Department shall jointly determine when the services of outside counsel are required and Department staff shall consult with and obtain the approval of the City Attorney prior to the employment of outside counsel and prior to the assignment of matters to such counsel. The Department shall provide the City Attorney with copies of any agreements that engage outside counsel and ensure that such counsel keep the City Attorney informed of their work and provide to the City Attorney copies of any and all correspondence and documents filed in any court on Department matters and any agreements to hire outside counsel shall be required. 11. Support Staff. In connection with providing the foregoing services, the City Attorney's office shall provide sufficient secretarial, paralegal and investigator support services. lll. Data to be Furnished to the City. The following has been and shall continue to be furnished by the Department to the City: All records and information pertaining to legal requirements of the Department, including any back-up materials, applicable regulations, correspondence, preliminary drafts of agreements, if any, and any -2- 1 other material pertaining to the Department necessary for the 2 performance of legal services. 3 E. Police and Fire Safety Services. The City shall provide to Department all 4 safety-related services. Typical services shall include, but are not limited to, 5 police patrol, fire rescue and emergency response, and hazmat services. 6 F. Compensation. The annual costs for these support services shall be based on 7 the Full Cost Allocation Plan adopted by the Mayor and Common Council 8 on August 15, 2011, and which was compiled in accordance with Generally 9 Accepted Accounting Principles and also based on many of the methods of 10 indirect cost allocation as defined by the Federal Office of Management and 11 Budget's (OMB) Circular A-87. The allocated costs were calculated based 12 on the "best available data and methodology at this time." The City and 13 Water Department staff have agreed to continue meeting to further refine 14 both the data and methodology and make any adjustments needed in future 15 years. For FY 2010-11 the reimbursement rate for services is $3,261,400. 16 17 2. RIGHT-OF-WAY RENTAL FEE. This is a fee calculated and charged on water 18 underground infrastructure in the City's right-of-way area. A standard method was 19 used to calculate the value of the public right-of-way and an inventory of the space 20 occupied was computed. From this data a rental fee was established. For FY 2010- 21 II the fee is $592,400. 22 23 3. DIRECT BILLED CONTRACTS. Services provided from City Internal Service 24 Funds and Special Revenue Funds are not part of the Full Cost Allocation Plan and 25 therefore are provided to the Department on a fee-for-service basis. The services to 26 be provided on fee-for-service contracts include: 27 A. EMPLOYEE ASSISTANCE PROGRAM. Department shall pay to City the 28 $650 per month for the Employee Assistance Program. Department shall also -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 pay to City a flat annual fee of $2,200 for its proportionate share of the administrative costs of the Employee Assistance Program (total of $10,000 for FY 2010-11). B. RIDESHARE COORDINATOR. Department shall pay to City a flat annual rate of $5,200 for FY 20 I 0-11 for the services of its Rideshare Coordinator, who shall provide services to Department employees as required by the Air Quality Management District (AQMD) including, but not limited to: I. Developing, updating and implementing a Trip Reduction Plan and complying with all other AQMD Regulation requirements, including the provision of trip reduction incentives for Department employees; 11. Promoting the Trip Reduction Plan and rideshare activities, and tracking and documenting employee participation; Ill. Acting as a liaison with AQMD and attending all training, meetings and workshops as required by AQMD. C. CALL CENTER. Department shall pay for participation m the San Bernardino Direct Call Center program herein referenced as ("SB Direct"). The SB Direct program is a central, city-wide "response-center" that is designed to act as a "one-stop-shop" for all non-emergency requests for information or for service and accept concerns/suggestions. The Office of the City Manager oversees the provision of services. In connection with providing the foregoing services, the Office of City Manager will provide an office assistant to help in the operation of the program. The Department will pay to the City a flat rate of$28,230 for FY 2010-11. D. TELEPHONE SERVICES. Department shall pay for the use of City's telephone system as follows: I. Actual monthly telephone charges attributable to the ports assigned to the Water Department, Water Yards, Water Reclamation Plant and RIX Plant. -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11. A proportionate share of the fixed costs of operations, debt retirement/system hardware, and leased lines, based upon the portion of total telephone ports assigned to the Water Department, Water Yards, Water Reclamation Plant and RlX Plant. 111. For FY 2010-11 the estimated amount to be paid for the above two items is $126,400. IV. As approved in the Telephone Equipment MOD dated January 24, 2011, (Resolution No. 2011-18) the Department fully purchased the telephone switch upgrade in the amount of $400,000 and the City agreed upon share is $220,000 (55%) which the City is to pay the Department $44,000 on or before January 30, for a term of five years with the first payment due by January 30, 2012 and the final payment due by January 30, 2016. E. WORKERS' COMPENSATION ADMINISTRATION. Department shall pay to City for the administration of its Workers' Compensation Program, its proportionate share of the budgeted cost of administration based upon budget payroll costs, provided that the Department provides to the City the budget figures for payroll within a reasonable time after Department's budget is adopted. For any year in which payroll figures are not made available to the City in a timely fashion, the percentage shall be the same as that used for the prior year. For fiscal year 2010-11, this shall be twenty percent (20%). In addition, the Department shall pay the actual cost of the amount paid out on its claims. For FY 2010-11 the estimated amount to be paid is $412,000. F. INFORM A TION TECHNOLOGY (IT). -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 4. 15 16 III 17 III 18 III 19 III 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III I. Services. The City Manager's Office or IT Director shall act as a private contractor to provide the Department IT related services as defined in the attached agreements (Attachment "1" FY 2010- II) incorporated herein by reference upon approval by the Board of Water Commissioners and the City of San Bernardino. 11. Compensation. The agreed upon cost to provide this service is $522,267 for FY 2010-11. 111. The Department agreed to fully purchase computer back up equipment in the total amount of $172,868 and the agreed upon City share is $127,038. The City shall repay the Department over a five year period of $25,408 per year with the first payment in January 2012 and the final payment in January 2016. TERM. This Memorandum of Understanding shall terminate as of June 30, 2011, unless terminated by either party at least thirty (30) days prior to July 1,2012. -6- 20 James F. Penman, City Attorney 21 22 23 24 25 26 27 28 1 MASTER SERVICES 2 MEMORANDUM OF UNDERSTANDING 3 By and between the City of San Bernardino and the Board of Water Commissioners of the City 4 of San Bernardino for the provision of City services for Fiscal Year 2010/2011. 5 6 7 8 BOARD OF WATER COMMISSIONERS 9 10 11 12 13 14 15 16 17 18 19 Date: Toni Callicott, President Robin L. Ohama, Secretary CITY OF SAN BERNARDINO Date: Charles E. McNeely, City Manager Approved as to Form: ATTEST: Rachel Clark, City Clerk -7- Attachment 1 INFORMATION TECHNOLOGY CONTRACT SERVICES FISCAL 2010/2011 This document details the services Information Technology proposes to provide to the Water Department during fiscal 2010/2011 at a contract price of $522,267. Office Automation GIS . . . . . . . . . . Provide technical assistance for Water Department office automation servers and domain controllers · Troubleshoot 'malfunctioning' Microsoft operating systems and Office products (Word, Excel, Outlook, PowerPoint and Access). . Provide use of the City's file, anti-virus, anti-spam and email servers and processes. · Create, delete, and alter network accounts, scripts, and user folders on the City office automation server as required. · Create, delete, set security and alter email, public folders and mailboxes. · Maintain anti-virus software on client and server PCs. Includes installation and upgrades of anti-virus software (semi-annual), anti-virus scan engine (quarterly), and new virus pattem files as they become available. . Provide introductory Outlook training classes as requested. . Audit email content and usage upon request. . Department-wide upgrade to Microsoft Office 2007 (or 201 0) including Outlook, Word, Excel and Access. · City-wide upgrade of main email software to Exchange 2007 (or 2010). (This upgrade will provide larger mailboxes, improved system response, improved security, and Apple iPhone support. Additionally Outlook Web Access (OWA) will now mirror the look and feel of Outlook 2003/2007 including spell check.) Provide maps and/or reports as requested. (Large maps, map series and special papers are available at cost of materials.) Add Water district layers as required to ArcGIS. Continue ArcGIS training and establish an internal City ArcGIS user group. Provide access to County Assessor data through the parcel layer. Provide access. to year 2000 census data with extrapolations through 2013 Provide access to appropriate GIS layers. Provide assistance to Water GIS personnel. Provide access to all personnel (not just GIS staff) to the City's web based GIS. Provide access to any ESRI software and software licenses provided and specified by the City's Enterprise License Agreement (ELA) with ESRI. Provide ELA management as Attachment 1 provided by the City's ESRI ELA Memorandum of Understanding lotemal Usage Agreement. Public Web Site . Provide web site hosting on the City web server. . Facilitate direct update-access to Water Department content on the City web server through the Civica Content Management System (CMS). . Provide Civica CMS user training. . Provide limited web page design and development services. . Publish web site content provided by the Water Department to the City web server. . Provide web server administrative services including performance monitoring, system tuning, system security, and installation of server software upgrades and service packs. . Maintain sbcitywater.org domain name system service. Intranet (Internal) Web Site . Provide access to the City's Intranet web site content. . Host Water Department content designated internal use only on the City's Intranet server. (Exam pies: policies and procedures, standard forms, employee benefit information, etc.) This content will be accessible to all employees, but not the public. . Facilitate direct update-access to Water Department content on the City's Intranet web site through the Civica Content Management System (CMS). . Provide online how-to procedural documentation of Office products. (Examples: How to use OWA, how to create and use Personal Folders, how to find a particular file on your PC, how to identify spam, what should I do when I get a virus, quick tutorial on Word 2007, Outlook 2007, etc.) Virtual Server Manaoement · Provide management and monitoring of the Water Department's VMware Virtual Server environment. · Manage data replications services to the Water Department's Local Recovery Center when operational. Network · Provide access to the City's TCP/IP network via digital spread spectrum radio bridges. · Provide access to the Internet via the City's recently upgraded higher-speed connection. · Set up and maintain Internet access accounts to facilitate web browsing by authorized individuals. · Provide secure inbound and outbound Internet mail service using the SMTP protocol. 2 Attachment I . Design, configure, install and maintain WAN network links utilizing digital spread spectrum radio bridges, fiber gigabit links and switched frame relay. . Provide assistance in designing, configuring, installing and maintaining all components of the City's network infrastructure. . Provide access to the City's intranet utilizing the City's high-speed switched gigabit Ethemet backbone. . Administer 2 Unix-based firewalls that provide security to the City's network and Internet connection and also provide virus filtering on all protocols. . Provide DNS naming service, including name registration and name server management. . Administer maintenance and service contracts for SBC Intemetworking, SBC, NPA Computers Inc., Citrix, Accent Computers, Secure Computing and Hewlett Packard/Compaq Inc. . Provide and maintain authorized access to the City's local network through a secure web based Remote access system and standards-based VPN. . Install, maintain and troubleshoot Cat Ve UTP cable plant including cables, jacks, wall plates and punch down assemblies. (Major cabling projects, drilling, or new conduit work may be subcontracted, and would represent a cost to Water). . Provide for 'first-defense' anti-spam protection at the firewall/eve!. Financials (Sunaard Public Sector) . Administer system at operating system level, including installation and upgrades of the following software: . IBM operating system (OS/400) . HTE Naviline . HTE application software (GMBA, payroll, purchasinglinventory, fleet, etc.) . Develop fonm and check definitions as required (ACOM EZeDocs) . Perfonm accounts payable backups on request prior to weekly final register and check processing, and transmit positive pay data to Wells Fargo. . Transmit direct deposit and positive pay data to Wells Fargo. . Provide after hours access and technical assistance to maintenance vendors as necessary. Documentlmaaina . Administer system at server level, including installation and upgrades of the following software: . Microsoft operating system (Windows 2000, 2003 Server) . Microsoft database (SOL Server 2000, 2005) 3 Attachment 1 o Provide assistance to Water Department personnel in installation and troubleshooting of client applications. o Act as technical liaison to the software vendor in resolving problems as needed. o Provide after hours access and technical assistance to maintenance vendors as necessary. o Provide support of Laserfiche document imaging system. o Review of interface configurations. o Technical assistance for installation and configuration of hardware and software. o Provide server level support for OptispoolfOptiview applications. Permit Trackino o Provide access to the Accela Permits+ system. o Perform server administrative services including performance monitoring, system tuning, and installation of software upgrades and patches. o Act as technical liaison to the software vendor in resolving problems. City Business Svstem (Linus) o Provide access to County Assessor pancel information. Utility Billino (UB) o Administer system at operating system level, including installation and upgrades of the following software: o IBM Operating system (OS/400) o Existing UB related software programs (Sungard Public Sector (SPS), Naviline, HTEDMS, Itron, Acorn, ITRAN (Remittance Processor), Cognos QREP) o Act as technical liaison with operating system vendor (IBM), ulility billing software vendors (SPS, Itron, Acom, Cognos), and remittance processor vendor (TUI). o Provide assistance with setup of user accounts, access, and security at the operating system level. o Provide after hours access and technical assistance to maintenance vendors as necessary. o Provide technical assistance for Naviline software and existing third party applications (Itron, Acorn, Standard Register, Cognos). (This does not include assistance in how to USe Naviline or third party software.). o Maintain support for internally created interface applications (ECC, positive pay, bank drafting). o Provide Cognos Impromptu (QREP) training to report writing staff. o Create and/or assist users in creating reports using Cognos Impromptu (QREP). 4 Attachment 1 . Provide bill design and modification services (QREP). . Provide notification design and modification services using HTEDMS. . Monitor and maintain the automated derogatory file updates for the remittance processor (ITRAN). . Generate and transmit refund check positive pay data to Wells Fargo. . Transmittal of bank drafting data to Wells Fargo. . Establish methods for customers to directly access account information. . Establish procedures for correction and maintenance of service addresses. . Maintain Microsoft SOL 2000 database for Remittance Processing. Miscellaneous Water Systems Employee Training Tracking System . Provide administrative, technical and application support to end-users of system. . Provide additional development as needed Maintenance Contract Tracking System . Provide administrative, technical and application support to end-users of system. Vehicle and Equipment Rental Management System . Provide administrative, technical and application support to end-users of system. Maximo . Assist in performing system administration functions such as application software upgrades. . Act as technical liaison to the vendor in resolving problems. . Work towards migration to Sungard Naviline applications if required. DataQuick . Act as technical liaison to the vendor in resolving problems. Experian Credit Check System . Act as technical liaison to the vendor in resolving problems. J.J. Keller & Associates (Compliance Information Manager & Workplace Safety Management software) . Act as technical liaison to the vendor in resolving problems. 5 Attachment I Operations . Perform daily backups (Monday - Friday) of Sungard application data, Athena (Laserfiche), Triton (HRlRemitlance), WUServer, and office automation servers. . Perform weekly, monthly, and year-end full system backups of Sungard, Athena (Laserfiche), Triton (HRlRemitlance), WUServer, and office automation servers. . Provide remote backup monitoring for remote servers (ARIEL) . The IT Division is not responsible for backing up data that is not saved to these aforementioned servers. . Provide offsite storage for selected weekly, monthly and year-end full system backups in a secure off-site media storage facility. . Provide backup media and related supplies. . Maintain tape library. . Retrieve off-site tapes and restore data as required. . Ship equipment to vendors for repair. . Provide utility billing print services including: . Initial, Cycle, Off-cycle, and Final Bills . Delinquent Notices . 48 Hour Disconnect Notices . Multi-family Disconnect Notices (10 Day Notice) . Retum Check Letlers . Tenant Letters . Customer refund checks . Bill Notices . Install PC software including SB Client. Client Access, Maximo, HTE Naviline, Cognos Impromptu, virus protection, Microsoft operating systems and Office suite. . T rou bleshoot PC and printer malfunctions. . Provide preventative maintenance for printers. . Install and relocate PCs and printers. . Maintain inventory of PCs, laptops, printers and desktop software, on equipment connected to the City network. . Service walk-through at City Hall, Water Yards, Water Admin Bldg, and WRP twice per week. . On-site business-hours support from 6:00 AM to 5:30 PM, Monday through Thursday, and 6:00 AM to 4:30 PM on Fridays. . On-site after-hours support for special processing, report printing, upgrades, etc. . Administer maintenance contracts for desktop PCs & printers, laptops, and line printers. 6 Other . . . . . . . . . . . Attachment 1 Provide support and guidance for Business Continuity / Disaster management plan. Provide training and guidance to Water Department BSG staff. IT representative attendance at department meetings (agenda setting/debriefing, WTC, Web site committee) as requested and/or possible. Review & sign-off of requests for technology purchases. monitoring for department-wide compatibility and standardization. Keep the Water Department informed of City technology projects of interest. Develop simple Microsoft Access and Visual Basic applications. Administer Business Continuity / Disaster Management plan for mission-critical systems. Develop tools for management to more easily access reports and data from systems. Manage catalog of all applications. systems and databases that identifies assets available to management. Manage and coordinate technology projects. Attend training provided by systems vendors and provide follow-up training to Water Department staff. Notes: The following notes represent information that may have an impact on Water and/or reminders of topics that have been brought up from a technology perspective for consideration in planning for the Mure. . A technology replacement fund should be considered (i.e. major selVer hardware and software upgrades. networl< upgrades, PC replacements, printers, etc.) . Additional Civica licensing has been acquired for Intranet Development. Water may wish to review this option for internal needs. 7 CITY OF SAN BERNARDINO INTEROFFICE MEMORANDUM TO: James F. Penman City Attorney Henry Empefio, Jr. 1/-f;, Sr. Deputy City Attorney FROM: DATE: August 12,2011 RE: Master Services MOU and Cost Allocation Plan CC: Diane C. Roth, Sr. Assistant City Attorney; Stephanie D. Easland, Sr. Assistant City Attorney On the August 15, 20 II Council Meeting Agenda are the following two related items: 18. Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City Manager to execute a Master Services Memorandum of Understanding with the Water Department for provision of City services for Fiscal Year 2010/2011 and 2011/2012. 21. Full Cost Allocation Plan Report and Right of Way Study. I recomniend that the Mayor and Council continue both of these items to the September 6, 2011 Council meeting because of the legal issues raised in the attached Memorandum from Stacey R Aldstadt, General Manager of the Water Department to Mayor Patrick Morris regarding the "Full Cost Allocation Plan Report for FY 2010-11". Ms. Aldstadt correctly outlines several Proposition 218 issues which must be resolved before the Mayor and Council takes action on both of these items. Ms. Aldstadt will be on vacation out of the state and will not attend the August 15,2011 Council meeting. If the Mayor and Council proceeds to approve the proposed Master Services MOD at the August 15,2011 Council Meeting, the Board of Water Commissioners would still have to consider this proposed agreement at their meeting on September 6, 2011 before the agreement can be implemented. F:\EMPENO\Walcr\MSA MOU_wpd -:11/8 ..,f #2( 1/15'/11 TO: FROM: SUBJECT: DATE: COPIES: CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT Mayor Patrick Morris Stacey R. Aldstadt, General Manager, Water Department "FULL COST ALLOCATION PLAN REPORT for FY 2010-11" August 10, 2011 Board of Water Commissioners; Henry Empefio, Senior Deputy City Attorney; Don Shackelford, Water Department Finance; Robin Ohama, Deputy General Manager, Water Department; City Manager Charles McNeely; City Finance Director Barbara Pachon ATTACHMENT: "City of San Bernardino Municipal Water Department Cost Allocation PIan Review - August 4, 2011" On Friday, August 5, 2011, Art Griffith (SAle) and I again met with representatives from the City to discuss the Matrix Cost Allocation Plan (CAP). Also present at the meeting were you, Jim Morris, Gary Goelitz and Greta Davis (Matrix), Andrea Travis-Miller, Barbara Pachon, and Diane Roth. This meeting was the City's response to my July 5, 2011 memorandum to Henry Empefio. While the two sides have been debating the merits of the Matrix numbers, the Master Services Agreement (MSA) for FY 2010/2011 (effective for the period of time between July 1,2010 and June 30, 2011 -last year'! MSA) has been continued for approval many times. The Board of Water Commissioners approved the FY 2010/2011 MSA earlier this year, before the Matrix CAP was provided to the Department. At the August 5"' meeting, we were provided with a nine-page table showing the City's response to my memorandum dated July 5, 2011, a one-page table entitled "Estimated Impacts on Utility Funds and Rates Cost Allocation/Right of Way Study Analysis, and a one-page table entitled "Sewer Funds 5 Year Phased in Cost Adjustments Cost Allocation/Right of Way Analysis." We certainly appreciate the time and effort expended in the City's response and, as you envisioned, look forward to setting aside differences of opinion regarding the CAP. However, in light of the very serious consequences of fiUling to comply with the requirements of Proposition 218 (now codified as California Constitution Articles XIII C and D), it is incumbent upon the Department to continue to clarify its position regarding the methodology used by Matrix to allocate costs. This is true because, in order to withstand a challenge based on Proposition 218, the Department (and the City) must be prepared to demonstrate that water and sewer treatment rates do not exceed the funds "FULL COST ALLOCATION PLAN REPORT for FY 2010-11" August 11, 2011 Page 2 required to provide the property related service. Howard Jarvis T oxpq)'ers Asm., et at. v. City of Fremo (2005) 127 CaJ. AppA'" 914. Moreover, the services allocated to the Department cannot be "general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners." Howard Janis T oxpq)'m Asm., stpra, 127 CaI. App.4'" at p. 923, citations omitted. At the August 5'" meeting, at my request, and because we had not had the opportunity to review it before the meeting, we did not review the item-by-item response provided to the Department's July 5, 2011 memorandum. Rather, we focused on the "Estimated Impacts on Utility Funds" spreadsheet. It appeared, from the spreadsheet, that the Water Fund would be asked to contribute $3,353,800, but would then be credited with $1,256,900 for the cost of water used by the City (a cost that has, to date, been zero up to the City's negotiated baseline). The $3,353,800 does not include the costs to be paid to the IT department. The Sewer Fund would be asked to contribute $500,000, or the same amount it has been contributing absent a CAP. The City insisted that time was of the essence and desired adoption of the FY 2010/2011 Master Services Agreement at the August 15, 2011 council meeting. The City indicated it would provide the Department with a revised Master Services Agreement by Monday, August 8, 2011, with the plan that the Department could review the language and make any changes in time for the August 15'" council meeting. The Department asked for justification for the contribution from the Sewer Fund and we were then given the "Sewer Funds 5 Year Phased in Cost Adjustments" spreadsheet, which indicated an i.crease to the allocation for "Water Sewer Treatment" over the next five years. The increase results in an allocation by FY 2015-2016 of $1,331,900. The spreadsheet did not explain how the allocation had been made. Again, that justification was to be provided in time to review it, adjust it and discuss any changes before the council meeting. The Department was provided a draft staff report and a revised MSA on August 9, 201 I. The justification for the sewer treatment/sewer collection allocation and increases was provided to the Department on August 10, 2011 at approximately noon. After assimilating all of the new information provided, it appears that it may not be possible to achieve fully both goals of finishing this regrettably divisive discussion and complying with Proposition 218. COST ALLOCATION PLAN FOR WATER FUND: There continue to be costs allocated to the Water Fund that are not reasonably related to the cost of service. Costs allocated "based on budget size" for the Mayor's office, the Council office, the City Manager's office (Administration and Neighborhood Services), Finance "FUll COST ALLOCATION PLAN REPORT for FY 2010-11" August 11, 2011 Page 3 (General Accounting and PurchllSing) 0($89,238, $58,215, $159,458 and $75,631, respectively, are based on a fundamentally flawed methodology. Matrix defends this methodology as following "financial best practices in Cost Allocation principles," but fails to account for the governmental organization differences posed by the City's Charter. It defies common sense to say that the Water Department imposes the same organizational burdens on the Mayor's office, Council office and the City Manager's office as any other department in the City Qess 25% as an arbitrary reduction) because the Charter provides that these offices cannot have the same organizational involvement. Charter Section 163 provides that the Board of Water Commissioners is enpowered to "generally regulate, control, manage, renew, repair and extend me entire water system of the City." The Board of Water Commissioners executes mese powers through its General Manager, who has management oversight over the functions of me Water Department. That is not the case wim other city departments. The Finance department for me City does not perform any fmancial or accounting functions for the Water Department. As has been explained several times, the Water Department uses a cost accounting memod, to track costs related to projects, as befits a utility's enterprise funds. The City does not use the same memod. The City does not provide any purchasing support fimction to the Water Department. In fact, to make matters perfectly clear, me City's Finance Department does not provide any "support" function for me Water Department in Finance whatsoever. It is a clear misstatement of facts to say that the Water Department provides its own "supplemental support" to the City's Finance Department. Simply making the statement, as Matrix does, does not make it true. Imposition of these costs will violate the terms of Proposition 218. Additionally, allocations for Fire and Police-related costs (Fire Emergency Communication, Fire Rescue, and Police PatroQ are based on flawed or incomplete data, such that while me methodology usedmay be valid, the numbers are still insupportable because of bad input data. The data and methodology begs the question as to whether these services are "general governmental services," which are not to be allocated pursuant to Howard Jam! T axp'!Jm Au". We continue to maintain that the costs allocated from the Water Fund to ROW tree trimming and concrete maintenance are inflated, as set forth in the July 5, 2011 letter. Nonetheless, the Water Department is prepared to accept the following cost allocation to the Water Fund for the purposes of approving the revised MSA for FY 2010/2011 (provided that the language of the revised MSA is changed to reflect a one year deal): "FULL COST ALLOCATION PLAN REPORT for fY2010-11" August 11,2011 Page 4 MASTER SERVICES AGREEMENT (WATER FUND) CONTRIBUTION FOR F/Y 2010/2011 General Fund Em 10 ee Assistance Pro AB 2766 Fund Tele hone Call Center Su Estimated Tele hone Su Estimated Worker's Com IT Fund ort ort Fund $3,353,800 incl. CAP /RO $10,000 $5,200 $28,230 $126,400 $412,000 $522,267 The lease agreement between the City and the Department provides for an additional payment of $177,826. COST ALLOCATION FOR SEWER FUND: There continue to be costs allocated to the Sewer Fund that are not reasonably related to the cost of service. Costs allocated "based on budget size" for the Mayor's office, the Council office, the City Manager's office (Administration and Neighborhood Services), Finance (General Accounting and Purchasing) of $75,938, $49,539, $117,501 and $64,359, respectively, are based on the same fund2mentally flawed methodology outlined above. According to the latest breakdown provided to the Department, Matrix has allocated $345,790 for Right of Way (ROW) tree trimming to the sewer treatment system. This demonstrates a misunderstanding of the physical properties of the sewer treatment system. As you know, the City owns and maintains the sewer collection system, which consists of sewer pipelines and lift stations. The Water Department owns and operates the treatment system, which is located on one large piece of land off of E Street. The Water Department maintains all of the landscaping (induding tree trimming) on this piece of property. Additional treatment is provided by the tertiary treatment plant located in Colton. There is no City tree trimming attributable to the sewer treatment system, so the $345,790 figure cannot be reasonably related to the provision of sewer treatment Further objection is made to the allocation between sewer treatment and sewer collection. The new information provided shows that Matrix has allocated much of the total $1.7 million overall sewer "general govemmental" costs (e.g., Mayor's office, City Clerk, City Manager, fIR, etc.) to sewer treatment, rather than sewer collection. Of the $2.16 million, sewer treatment is allocated $1.33 million and sewer collection (the 510 miles, plus, pipelines and lift stations) is allocated $347,555. The City intends to maintain the allocation from the Sewer Fund for fY 2010/2011 at its current $500,000, but then intends to begin increasing the assessment over FY 2011/2012 to FY 2015/2016 to the $1.33 million number. The current City draft for adoption of the CAP and the MSA states: "FULL COST AlLOCATION PLAN REPORT for FY 2010-11" August 11,2011 PageS "The Sewer Treatment per the CAP/ROW should actually be paying just over $1.3 million of the total Sewer costs of $2,162,400. Since the Sewer Treatment fund does not currently have funds available to pay this amount, it is proposed that these costs be phased in over a S year period. Attachment 3 provides the proposed schedule for phasing in the payment of these costs. In FY 2010-2011, the City Sewer Collection will pay the higher CAP/ROW costs, and each year as the Sewer Treatment increases its payment for the CAP /ROW, the cost to the Sewer Collection will decrease by a corresponding amount By implementing a phased schedule, there will be no net increase in cost due to the CAP/ROW for sewer . " setV1ce. There are several problems with this: (1) The costs for general governmental services are disproportionately attributed to sewer treatment. For example, sewer treatment is assessed $117,501 from the City Manager's office for "administration and community relations." The sewer collection system is assessed $8,272 for the same services. The explanation from Matrix is that the costs were "allocated based on budget size." That means that, because the Sewer Fund is much larger than the Sewer Collection Fund, the Sewer Fund pays more. However, again, this ignores the reality that the City Manager manages the sewer collection system, through public works, and the Water Department General Manager manages the sewer treatment system. (2) The sewer treatment facilities are regional facilities. Other municipalities (Highland and Lorna Linda) are impacted by this cost allocation. (3) Because the proportionate share for sewer treatment is not based on organizational realities, the allocation violates Proposition 218. Again, the Water Department is prepared to accept the following cost allocation to the Sewer Fund for the purposes of approving the revised MSA for FY 2010/2011 (provided that the language of the revised MSA is changed to reflect a one year deal): MASTER SERVICES AGREEMENT CONTRIBUTION (SEWER FUND) F/Y 2010/2011 General Fund I $500,000 FY 2010/2011 MSA The City indicates that it intends to extend the MSA for two years (FY 2010/2011 and FY 2011/2012). This is problematic in that much of the data and some of the methodology used to develop the CAP must still be discussed and refined. Arguably, although flawed, the data and methodology could be used to justify one year of cost allocations, but the Water Department does not want to approve the continued use of flawed data and poorly developed methodology. "FUll COST AllOCATION PLAN REPORT for FY 2010-11" August 11,2011 Page 6 With the above-outlined concerns in mind, the Water Department offers the following roadmap for consideration: First, continue adoption of the FY 2010-2011 Master Services Agreement to September 6, 2011. Edit the FY 2010-2011 MSA to reflect the following negotiated CAP numbers: MASTER SERVICES F/Y 2010/2011 General Fund (incl. CAP/ROW) $3,353,800 Emplovee Assistance Program $10,000 AB 2766 Fund $5,200 Telephone Call Center Support $28,230 Estimated Telephone Support Fund $126,400 Estimated Worker's Compensation $412,000 IT Fund $522,267 General Fund $500.000 TOTAL $4,957,897 The FY 2010-2011 MSA should state that the allocated costs were calculated based on the "best available data and methodology at the time, but that the City and the Water Department will meet to further refine both the data and methodology." Second, bring the FY 2011-2012 Master Services Agreement to council with substantially the same numbers and with a similar caveat that the "best available data and methodology have been applied at this time. The City and the Water Department agree to meet to further refine both." Third, set up a small working group to discuss further refinement of data and methodology, with the goal to establish a multi-year Master Services Agreement reflecting future negotiations. In addition, the Water Department will be amending its Rules and Regulations, Rule 21, to eliminate the provision of free water to the City. The Department believes that these issues can be resolved with further dialogue between the parties and remains committed to doing what is best for the City, the Department and the ratepayers. Very truly yours, ~~ General Manager attachment City of San Bernardino Municipal Water Department Review of August 4 Draft of Cost Allocation Plan August 10, 2011 Summary Things that Changed ]. Change in dollar amounts (sewer = sewer collection plus sewer treatment): Water Sewer CAP March 15 Draft $7,112,561 $2,824,073 CAP June 22 Draft $3,752,472 $2,093,138 CAP June 29 Draft $3,111,374 $1,880,972 CAP August 4 Draft $2.761,356 $' ,679,401 Change from June 29 to Augusl4 ($350,018) ($201,571) CAP (Augusl4 Draft) $2.761,356 $1,679,401 ROW Fee (ft4>ril 21 Draft) $592.448 $483.011 Total (Aug 5 meeting Attachment 2, rounded) $3,353.800 $2,162.400 2. Costs related to contents in the existing lease were removed. Implication is that lease payment is in addition to CAP payments. Reduction in water cost allocation = $] 13,434, reduction in sewer cost allocation = $0. 3. Some costs were removed, based on oUI comments that they are not related to the provision of water service (Passport Acceptance, Business RegistrationITL T Collections, Special Events/Arts&Culture, Fine Arts and Cultural Affairs). Reduction in water cost allocation = $146,883, reduction in sewer cost allocation = $139,615. 4. Fire Department costs related to fire dumpsters were moved from Water to Integrated Waste. This is a change from the numbers, but not the narrative, from the 6/28 draft. Reduction in water cost allocation of $89,402. 5. Small methodology changes in applying a 25% discount to sewer as well as water for City Council support, City Manager administration, Finance general accounting, Finance purchasing. Reduction in sewer cost allocation of approximately $50,000. Things that Didn't Change The remaining methodologies didn't change. The August 4 draft CAP didn't split sewer collection and sewer treatment. Information provided on August I 0 did split sewer collection and sewer treatment, but did not provide documentation of the specific methodology for this split. City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 2 Remaining Differences I. For many items, the amount allocated still exceeds the value of the services provided 2. Previously raised legal concerns related to public safety cost allocations and the California Constitution still exist. This creates significant legal risk to the Department and the City. [Department to verify language) 3. The allocation between sewer collection and sewer treatment is very flawed. This creates significant legal risk to the Department and the City. [Department to verify language] City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 3 Specific Review Comments Building Use 1.003 City Hall Concur. Removed from the CAP because it is included in the Municipal Water Department (Department) lease. 1.004 Other Not applicable. No costs allocated to water or sewer treatment Equipment Use Concur. There is no cost allocated to water or sewer treatment. Mayor Do not concur. The Board of Water Commissioners (BOWC) provides policy guidance and oversight for the Department, not the Mayor. The Mayor appoints board members and is only involved during sewer treatment rates. Mayor occasionaHy handles citizen complaints related to the Department. Costs allocated to Department exceed services provided. Allocation based on budget with 25% water discount and sewer treatment discount is not acceptable. The Mayor's office does not provide $165,176 worth of services to the Department. The Municipal Water Department (Department) will support allocation based on budget with a 75% water discount and 75% sewer treatment discount. Council Do not concur. Council holds public hearings for sewer treatment rates (at most once a year) only. There is no official water involvement. However, the Department has some interaction with Council because citizens do sometimes contact their counciImember if there is an issue with water or sewer treatment. Costs allocated to Department exceed services provided. Allocation based on budget is not acceptable. The Council does not provide $107,754 worth of services to the Department. City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 4 The Department will support a budget-based allocation with 75 percent discount for water sewer treatment. City Clerk Administration, SEI Filings, and Boards and Commission Support Do not concur. The Department maintains minutes and agendas for all BOWC activities. The City Clerk may handle one action (sewer treatment rate hearing) per year. The Department does all of its own document retention. The City Clerk's office provides some limited support to the Department when questions arise regarding Form 700 compliance, AB 1234 or posting requirements. They do assist with research regarding resolutions, and the Department estimates they assist the Department a dozen times per year. Costs allocated to Department exceeds services provided. Allocation based solely on budget is not acceptable. The City Clerk's office (including elections, described below) does not provide $198,873 in services to the Department. The Department will support eliminating this requirement for water and allocation based on budget with a 90% water and sewer treatment discounts. Elections Do not concur. The Department's Board of Water Commissioners are appointed. Costs allocated to Department exceed services provided. Allocation based on budget is not acceptable. The Department will support eliminating all costs allocated to Water and Sewer Treatment. Passport Acceptance Concur. Records Management Concur. Business RegistrationlTL T Collections Concur. City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 5 City Treasurer Investments Concur Banking and Cashiering Services Concur City Attorney Municipal Legal Services Concur Litigation Concur Prosecution Concurrence not yet determined The Department believes that prosecution activities are not related to the provision of water or sewer treatment services, and allocation of these costs would be a Proposition 2 J 8 violation. The Department's legal representative from the City Attorney's office was not asked for input into the CAP. EDA Services Not applicable. These costs are allocated directly to EDA in their entirety. City Manager Administration Do not concur. The Department's General Manager is responsible for the leadership, direction and oversight of the Department as directed by the BOWC, not the City Manager. There is very limited interaction with the City Manager or City Manager office staff. Costs allocated to Department exceed services provided. Allocation based on budget with 25% water and sewer treatment discount is not acceptable. The City Manager's office does not provide $276,959 worth of services to the Department. City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 6 The Department will support allocation based on budget with a 90% water discount and 90% sewer treatment discount. Communications and Community Relations Do not concur. For water and sewer treatment services, these activities are completed by the Department. Costs allocated to Department exceed services provided. Allocation based on budget with no discount to the Department is not acceptable. The Department will support allocation based on budget with a 90% water discount and 90% sewer treatment discount. Grants Coordination Concur, provided grants obtained and administered by the Department are not included. Intergovernmental Reiations Concur. Allocation is based on the number of legislative actions and no cost is allocated to water or sewer treatment. For the Department's activities, this activity is completed by the Department with no involvement from the City Manager's office. Noting that there have been no legislative actions related to water or sewer is clear evidence that many of the other allocations in the CAP are very flawed (examples include Mayor, Council, City Clerk, City Manager). Organizational Effectiveness Concurrence not yet determined The CAP allocates costs based on the number of internal audit issues. Neighborhood Services Do not concur. The Department completes its own outreach and citizen participation efforts. . Costs allocated to Department exceed services provided. Allocation based on budget with no discount to the Department is not acceptable. The Department will support eliminating all costs allocated to Water and Sewer Treatment. City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 7 Special Events/Arts and Culture Concur. Finance All CAP Categories Do not concur. For water and sewer treatment, the Department provides all services that the Finance Department provides for other city departments. The Finance Department does not provide $139,990 worth of services to the Department. The Department will support eliminating all costs allocated to Water and Sewer Treatment. General Government Fine Arts & Cultural Affairs Concur. Non-Departmental Concurrence not yet determined Professional Contracts Concur. Charter 186 Concur PERS Concur Lease Payments ConcWTence not yet determined The Department requires specific documentation of the nearly $200,000 in lease payments attributed to water, and requires the "debt budget" that forms the basis of the lease payment allocation in the CAP. City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 8 Human Resources Administration and Employee Services Concur. Workforce Planning and Retention Do not concU!. The Department provides all workforce planning and retention services. Allocation based on the number of recruitments and trainings is not acceptable. The Department will support eliminating all costs allocated to Water and Sewer Treatment. Civil Service Administration Concur Employment Services Concur Facilities Management Custodial Maintenance Concur. Building Maintenance Concur. All Utility Support Costs Except for Fire Dumpsters . F~re Emergency Communications · Utility Support - Right of Way Tree Trimming · Utility Support - Public Works - Real Property · Utility Support - Fire Hazmat · Utility Support - Police Patrol · Utility Support - Concrete Maintenance City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 9 . Utility Support - Fire Rescue Do not concur Specific objections were transmitted on July 6, and these objections remain. Previously raised legal concerns related to public safety cost allocations and the California Constitution still exist. This creates significant legal risk to the Department and the City. The Department further objects to the allocation of these costs between sewer treatment and sewer collection. The August 4 draft CAP allocates these costs in their entirety to sewer treatment. However, these services all are provided in the sewer collection system, and must be allocated to sewer collection. City Hall Security City Hall Building Concur. EDA Building Not applicable. These costs are allocated directly to EDA in their entirety. Utility Support - Fire Rescue Do not concur. The Department has requested the actual response data that the fire responses cost allocation is based on. See above discussion of Fire Emergency Communications. Utility Support - Fire Dumpsters Concur. Utility Support - Police Infrastructure Do not concur. The CAP allocates two types of costs: infrastructure protection - patrol, and critical infrastructure training. Infrastructure Protection. Patrol CAP allocation is based on 65 incidents per year requiring 405 hours of patrol time. The Department seeks documentation on what each incident was, and how the 405 hours of patrol time are substantiated. The Department also seeks documentation proving that these costs are not redundant with Utility Support - Police Patrol costs above. City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 10 Critical Infrastructure Training The CAP allocation is based on a 29 person team receiving 42 hours of training each year related to the water supply. The Department seeks documentation of training materials that substantiate the time required, training received, and participants that received this training. Requested Information New request Documentation of "financial best practices in Cost Allocation Principles" from an industry-recognized source not affiliated with the City's consultant. Request made July 6, 20 I I. City Attorney's Office: Documentation of the specific prosecutorial services related to water and sewer treatment services and the specific documentation ofthis cost allocation used in the CAP. Request made July 6, 201 1. City Manager's Office: The specific internal audit issues related to water and sewer treatment. Request made July 6, 201 I. General Government: The exact nature of the approximately $80,000 in non-departmental services provided to water and sewer treatment. Request made July 6, 201 I. General Government: specific documentation of the lease payments attributed to water, Request made July 6, 2011. General Government: The "debt budget" that forms the basis of the lease payment allocation in the CAP Request made July 6, 201!. Right of Way Tree Trimming: More documentation of the right of way cost allocation is needed. Documentation provided is not labeled and does not show the ultimate source of data used to generate CAP cost allocations. The utility support for tree trimming is part of the overall Parks Department budget for tree trimming and it appears that 29 percent of the total program cost was considered utility support. Since no mention of utility support appears in the Parks Department budget, the Department requests specific documentation of how costs allocable to utility support were identified. Request made July 6, 20 I I. Fire HazMat: CAP allocations are based on a total of 85 Hazmat incidents. The Department is not aware of any of these involving its own facilities and already maintains certified hazardous chemical personnel for its facilities. The Department seeks the specific documentation that shows what the 85 Hazmat incidences were. Request made July 6, 201 I. Police Infrastructure Protection - Patrol: Documentation proving that these costs are not redundant with Utility Support - Police Patrol costs. Request made July 6, 201 I. Police Infrastructure Protection - Critical Infrastructure Training: Documentation of training materials that substantiate the time required, training received, and participants that received this training. City of San Bernardino Municipal Water Department Cost Allocation Plan Review August 10, 2011 Page 11 Request made June 30, 2011. Fire Rescue: Documentation of the approximately 144 service calls from the Fire Department that formed the basis for cost allocations to water and sewer. CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Date: May 2, 2011 Subject: Resolution of the City of San Bernardino authorizing the City Manager to execute a Master Services Memorandum of Understanding with the Water Department for provision of City services for Fiscal Year 2010.11. From: Charles McNeely, City Manager Dept: City Manager's Office MIce Meeting Date: June 6, 2011 Synopsis of Previous Council Action: 1997 through 2009 - Resolutions are adopted annually authorizing Master Services Memorandums of Understanding with the Water Department for the provision of City Services. Recommended Motion: Adopt resolution. Contact person: James Graham, Assistant to City Mgr. Phone: 5122 Supporting data attached: SR Resolution & MOlT Ward: City Wide FUNDING REQUIREMENTS: Amount: No Cost to the City Source: Finance: Council Notes: Agenda Item No. 8S- OCP- ()UJ~ .).I) I { Na-w f3ac~ CITY OF SAN BERNARDINO - REOUEST FOR COUNCIL ACTION Staff Report SUBJECT: Resolution of the City of San Bernardino authorizing the City Manager to execute a Master Services Memorandum of Understanding with the Water Department for provision of City services for FY 20 I 0-11. BACKGROUND: Each year, the Water Department and City enter into a contract, a Master Services Memorandum of Understanding (MOU), for the City to provide various support services needed for the water and wastewater treatment operations. On April 19, 2011 the Water Department approved the proposed Master Services MOU for Fiscal Year 2010-11. On May 16,2011 the proposed agreement was presented to the Mayor and Common Council for consideration and was continued for further discussion. The following provides additional information on the background and financial impact of this proposed agreement. Unlike most other City departments, a Master Services MOU is necessary with the Water Department for the provision of support services for two reasons: first, the City establishes the Water Department as a financially separate entity governed by an appointed board of directors; and secondly, State law provides that the funds overseen by Water Department are classified as enterprise funds and are restricted to paying only for water and wastewater treatment service related costs. The Master Services MOU identifies the costs of the documented support services provided by the City to the Water Department. City Services Provided to the Water Departmentfor FY 2010-11 The following are the support services the Water Department contracted for the City to provide for FY 2010-11 related to the Water Department's water and wastewater treatment operations. The list identifies the fund the City has used to pay for the services provided to the Water Department, and the total cost of such services for FY 2010-11 : Services Fund Amount 1. Employee Assistance Program Workers Compensation $10,000 2. Rideshare Coordinator Transportation Fund 5,200 3. Workers' Comp Claims/Adm. Workers Compensation 412,000 4. Information Technology IT Fund 522,267 5. Telephone Services Telephone Fund 126,400 6. Police and Fire Departments General Fund 500,000 7. Equal Opportunity Officer General Fund 57,200 8. City Attorney General Fund 200,435 9. Civil Service 10. Human Resources, Finance City Treasurer General Fund 87,780 General Fund 192.200 TOTAL $2,113,482 Additionally, on June 30, 2010, the Mayor and Common Council approved the preparation of a cost allocation plan for all services that the City provides to support various enterprise functions and operations such as water, sewer, and refuse. Over the past number of years, cities throughout the state have prepared and adopted similar modem cost allocation plans to provide an accurate accounting of the full cost for various services and operations. These cost allocation plans further provides the documentation necessary to comply with the provisions of Proposition 218. Under Proposition 218, for property-related services such as water, sewer, and refuse, only costs related to the provision of such services may be included in the rates charged for the services. Therefore, cost allocation plans help ensure that cities remain compliant with the state constitutional requirements of Proposition 218. The City contracted with Matrix to perform the analysis and prepare the cost allocation plan. It is anticipated that this plan will be presented to the Mayor and Common Council for consideration at the June 20, 2011 meeting. FINANCIAL IMPACT: The anticipated reimbursement amounts from the Water Department Master Services Memorandum of Understanding were included in the FY 2010-11 adopted budget, as follows: Budl!et bv Fund FY 10111 General Fund (001): $1,037,615 IT Fund (679): 522,267 AB 2766 Fund (111): 5,200 Teleohone Suoport Fund (630): 126,400 Worker's Comp Fund (678): 422,000 Total $2,113,482 If these documented costs that the City has already incurred by providing services to the Water Department are not reimbursed, the City's budget will experience an immediate and unforeseen shortfall in anticipated revenue. As a result, an examination of options to address the revenue shortfall would occur, including reductions in City Services and personnel. RECOMMENDATION: Adopt the resolution. CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Charles McNeely, City Manager Subject: Resolution of the City of San Bernardino authorizing the City Manager of the City of San Bernardino to execute a Master Services Memorandum of Understanding with the Water Department for provision of City services for Fiscal Year 2010/2011. Dept: City Manager's Office Date: May 2, 2011 MICC Meeting Date: May 16,2011 Synopsis of Previous Council Action: 1997 through 2009 - Resolutions are adopted annually authorizing Master Services Memorandums of Understanding with the Water Department for the provision of City Services. Recommended Motion: Adopt resolution. {!~,~ Signature Contact person: James Graham, Assistant to City Mgr. Phone: 5122 Supporting data attached: SR Resolution & MOll Ward: City Wide FUNDING REQUIREMENTS: Amount: No Cost to the City Source: Finance: Council Notes: Agenda Item No. q 05~/&-8lJ(1 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Subiect: Resolution of the City of San Bernardino authorizing the City Manager of the City of San Bernardino to execute a Master Services Memorandum of Understanding with the Water Department for provision of City services for Fiscal Year 2010/2011. Staff Report Backl!:round: The Water Department contracts with the City for various services. Below is a summary of the services provided by the City to the Water Department which shall be reimbursed pursuant to the attached Master Services Memorandum Of Understanding ("MOU"), which are based on the City's cost of providing these services to the Water Department: MOU Section FY 10/11 FY 09/10 Notes Section 1. Equal Employment Officer: $57,200 $42,400 Flat rate to the General Fund Section 2. City Attorney: $200,435 $190,890 Flat rate to the General Fund Section 3. Civil Service: $87,780 $69,200 Flat rate to the General Fund Section 4. Human Resources, Finance, and City Treasurer: $192,200 $56,200 Flat rate to the General Fund Total to the Workers' Compensation Fund) $650 per month, plus $2,200 for Section 5. Employee Assistance proportionate share of program: $10,000 $10,000 administrative costs Section 6. Rideshare Coordinator: $5,200 $5,200 Flat rate to the AB 2766 Fund Reimbursement for actual costs, plus proportionate share of fixed Section 7. Telephone services: $126,400 $126,400 costs. Reimbursement for actual costs of claims, plus proportionate share of administrative costs (estimates Section 8. Workers' Compensation: $412,000 $412,000 based on previous years). Flat rate to IT Fund for IT Section 9. Information Technology: $522,267 $539,600 Contract Services Section 10. Police and Fire Depts.: $500,000 $500,000 Flat rate to General Fund The City receives 10% of net revenue from each land sale Section II. Water Dept. Land Sales $- $ - Total $2,113,482 $1,951,890 It should be noted that on April 19, 2011 the Board of Water Commissioners of the City of San Bernardino adopted the attached Master Services Memorandum of Understanding for FY 20 I O- II reflecting the reimbursement amounts. (attachment) I On February 7, 2011 the Water Department, Mayor and Common Council approved funding for a Customer Service Representative I in the amount of $28,300 for FY20 10/11. In addition, the Water Department and Mayor and Common Council approved the funding strategy for the SB Direct Phone Switch in the amount of $400,000 on January 24, 20 II. These figures are not included in the chart. Chane:es From Prior Year: The cost for services related to the City Attorney, Civil Service, Human Resources, Finance and City Treasurer have increased by approximately $178,500. The majority of the increase is related to reimbursement for payroll charges, such as broker and administrative fees related to Mercer, the City's benefits/healthcare administrator, and staff time ($105,000). For the current year, reimbursement for treasury, investment, and banking services provided by the City Treasurer were added ($40,500). Other costs increases are related to the increase of Civil Service's percentage of time spent providing services to the Water Department ($18,600) and increases for personnel costs in Human Resources and the City Attorneys Office ($14,400). The cost for Information Technology Services has decreased from $539,600 to $522,267. The reductions are related to decrease in staff time and services available to be provided to the Water Department pursuant to the City's 10% employee concessions. As such, the reduction of $17,333 will not have an impact on the General Fund or IT Fund. Financial Impact: Anticipated reimbursement amounts from the Water Department Master Services Memorandum of Understanding were included in the FY 2010-11 preliminary and adopted budgets, as follows: Budget by Fund FY to/11 General Fund (001): $1,037,615 IT Fund (679): $522,267 AB 2766 Fund (III): $5,200 Telephone Support Fund (630): $126,400 Worker's Comp Fund (678): $422,000 Total $2,113,482 Recommendation: Adopt attached resolution. 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A MASTER SERVICES MEMORANDUM OF UNDERSTANDING WITH THE WATER DEPARTMENT FOR PROVISION OF CITY SERVICES FOR FISCAL YEAR 2010/2011. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: WHEREAS, The City of San Bernardino ("City") provides certain services to the Water Department ("Department") for which the Department compensates the City; and WHEREAS, it is the desire of the City and the Water Department to enter into a Memorandum of Understanding to memorialize these services; NOW, THEREFORE, BE IT RESOLVED by the Mayor and Common Council of the City of San Bernardino that the Master Services Memorandum of Understanding between the City and the Water Department setting forth the services that are to be provided by the City to the Water Department and the compensation to be paid therefore, a copy of which is attached hereto and incorporated herein as Exhibit "A", is hereby adopted. SECTION 1. The City Manager of the City of San Bernardino is hereby authorized and directed to execute on behalf of said City the Master Services Memorandum of Understanding. SECTION 2. That the implementation date of the Agreement is July I, 2010; therefore, any action taken between July I, 20 I 0 and the date that this Resolution is adopted is hereby ratified. SECTION 3. The authorization granted hereunder shall expire and be void and of no further effect if the agreement is not executed and returned to the Office of the City Clerk within ninety (90) days following the effective date of this resolution. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A MASTER SERVICES MEMORANDUM OF UNDERSTANDING WITH THE WATER DEPARTMENT FOR PROVISION OF CITY SERVICES FOR FISCAL YEAR 2010/2011. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of ,201 I, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ VACANT BRINKER SHORETT KELLEY JOHNSON MCCAMMACK Rachel G. Clark, City Clerk The foregoing resolution is hereby approved this day of 201 I. Patrick J. Morris, Mayor City of San Bernardino 23 24 Approved as to Form: 25 26 27 28 ~~,C7~t~~ ~~J James F. Penman, City Attorney ~ ~ t f I (, r '7 .6(, ~ 17) tk '1)-' 6~~' I f..-.. ~ . t4 c-...II:~ +L u.4Pln~r":!:'? ~ u:: 1(.> '10 1 U. . ~ "\ tL LvctZ, ~. ~ z2:.~ ~, 1-:;1 1 MASTER SERVICES 2 MEMORANDUM OF UNDERSTANDING 3 4 THIS MEMORANDUM OF UNDERSTANDING is made and entered into by and 5 between the City of San Bernardino, a charter city (City), and the Board of Water 6 Commissioners of the City of San Bernardino (Board), who agree that the City shall provide 7 services to the City of San Bernardino Municipal Water Department (Department), for which 8 the Board will compensate City as follows: 9 I. EOUAL EMPLOYMENT OFFICER. Department shall pay to City the flat 10 annual fee of$57,200 for the services of its Equal Employment Officer and support staff. 11 2. CITY ATTORNEY. The City Attorney shall act as General Counsel to the 12 Department and perform all of the Department's legal work. The City Attorney shall assign 13 sufficient staff to perform the legal services needed by the Department, and such services shall 14 be given priority. 15 A. Outside Counsel. The parties contemplate the continued need for the 1 6 Department to utilize services of outside special counsel, particularly in water rights matters. 17 The City Attorney and the Department shall jointly determine when the services of outside 18 counsel are required. The Department shall consult with and obtain approval of the City 1 9 Attorney prior to the employment of outside counsel, and prior to assignment of Department 20 matters to outside counsel. The Department shall provide the City Attorney with copies of any 21 agreements that engage outside counsel and ensure that such counsel keep the City Attorney 22 informed of its work and provide the City Attorney copies of any and all correspondence and 2 3 documents filed in any court on Department matters. 24 B. Support Staff. In connection with providing the foregoing services, the 25 City Attorney's office will provide sufficient secretarial, paralegal and investigator support 2 6 services. 27 III 28 III -1- 1 C. Data to be Furnished to the City Attornev. The following has been and 2 will continue to be furnished by the Department to the City Attorney: All records and 3 information pertaining to legal requirements of the Department, including any back-up 4 materials, applicable regulations, correspondence, preliminary drafts of agreements, if any, and 5 any other material pertaining to the Department necessary for the performance of legal services. 6 D. Compensation. 7 (I) Attornev Services. It is anticipated that the services to be 8 supplied by the City Attorney will constitute, on the average, an amonnt equal to fifty percent 9 (50%) of the time of one Senior Deputy City Attorney. 10 (2) Secretarial. Other Staff and Services. It is anticipated that the 11 services to be supplied by the Legal Secretary will constitute, on the average, an amonnt equal 12 to fifty percent (50%) of the time of one Legal Secretary II and 10% of the time of other staff. 13 (3) The above City Attorney services shall be provided to the Water 14 Department at a flat annual fee of $200,435. 15 3. CIVIL SERVICE. Department shall pay to City for the services of its Chief 16 Examiner and for Civil Service Administration a flat annual fee of $87,780. Typical services 17 shall include, but not be limited to, testing and certifYing eligible employees for outside 18 recruitment and promotions, testing standards for positions in the Department, and 19 administrative hearings on discharges and reductions in rank or compensation. 20 4. HUMAN RESOURCES. FINANCE. AND CITY TREASURER. 21 A. Department shall pay to City for the services of its Human Resources, 22 Finance, and City Treasurer departments a flat annual fee of $192,200. Typical services shall 2 3 include, but not be limited to, conducting outside recruitments; administering employee health, 24 dental, vision, and life insurance programs; approving job descriptions and minimum 25 qualifications; administering the Public Employees Retirement System contract; and treasury, 26 investment, and banking functions. 27 B. Department shall also pay to City the actual costs of recruitment-related 28 advertising that is requested by Department. -2- 1 2 3 4 5 6 7 EMPLOYEE ASSISTANCE PROGRAM. A. Department shall pay to City $650 per month for the Employee Assistance Program. 5. B. Department shall also pay to City a flat annual fee of $2,200 for its proportionate share of the administrative costs of the Employee Assistance Program. C. Total costs for this program is $10,000. RlDESHARE COORDINATOR. Department shall pay to City a flat annual fee 6. 8 $5,200 for the services of its Rideshare Coordinator, who shall provide services to Department 9 employees as required by the Air Quality Management District (AQMD) including, but not 10 limited to: 11 A. Developing, updating and implementing a Trip Reduction Plan and 12 complying with all other AQMD Regulation requirements, including the provision of trip 13 reduction incentives for Department employees; 14 B. Promoting the Trip Reduction Plan and rideshare activities, and tracking 15 and documenting employee participation; and 16 C. Acting as a liaison with AQMD and attending all training, meetings and 17 workshops as required by AQMD. 18 7. TELEPHONE SERVICES. 19 A. System Charges. Department shall pay to the City for the use of City's 20 telephone system the actual monthly telephone charges attributable to the ports assigned to 21 Water City Hall, Water Yards, Water Reclamation Plant and Rialto offices; plus a proportionate 22 share of the fixed costs of operations, debt retirement/system hardware, and leased lines, based 2 3 upon the portion of total telephone ports assigned to Water City Hall, Water Yards, Water 24 Reclamation Plant and Rialto offices. 25 26 27 8. B. The total cost for this program is $126,400. WORKERS' COMPENSATION ADMINISTRATION. A. Services. Department shall pay to City for the administration of its 2 8 Workers' Compensation Program its proportionate share of the budgeted cost of administration -3- 1 based upon budgeted payroll costs, provided that the Department provides to the City the 2 budget figures for payroll within a reasonable time after Department's budget is adopted. For 3 any year in which payroll figures are not made available to the City in a timely fashion, the 4 proportionate share shall be the same as that used for the prior year. For fiscal year 20 I 0/20 11, 5 the proportionate share shall be twenty percent (20%). In addition, the Department will 6 reimburse the City for the actual costs paid on Department claims. 7 B. The total cost for this program is $412,000. 8 9. INFORMATION TECHNOLOGY (IT). 9 A. Services. The City Manager's Office or IT Director will act as a private 1 0 contractor to provide the Department IT related services as defined in the attached agreement 11 (Attachment I), incorporated herein by reference, upon approval by the Board and the City. 12 B. Compensation. The above IT services shall be provided to the 13 Department at a flat annual fee of $522,267. 14 10. POLICE AND FIRE DEPARTMENTS. Department shall pay to City a flat 15 annual fee of $500,000 for safety-related costs associated with the Water Reclamation Plant. 16 II. WATER DEPARTMENT LAND SALES. Department shall pay to City ten 17 percent (10%) ofthe net revenue from each land sale. 18 12. TERMS. This Memorandum of Understanding shall terminate as of June 30, 19 2011, unless terminated by either party at least thirty (30) days prior to July 1,2011. 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III -4- 19 20 1 MASTER SERVICES MEMORANDUM OF UNDERSTANDING 2 3 4 By and between the City of San Bernardino and the Board of Water Commissioners of the City 5 of San Bernardino for the provision of City services for Fiscal Year 20 I 0/20 11. 6 7 8 9 BOARD OF WATER COMMISSIONERS OF THE CITY OF SAN BERNARDINO 10 11 Date: 4~/1/11 12 13 14 15 t ~~~~ Robm L. 0 ama, Secretary 16 17 18 CITY OF SAN BERNARDINO Date: Charles E. McNeely, City Manager 21 Approved as to Form: 22 23 24 25 26 27 28 ATTEST: James F. Penman, City Attorney Rachel Clark, City Clerk -5- Attachment 1 INFORMATION TECHNOLOGY CONTRACT SERVICES FISCAL 2010/2011 This document details the services Information Technology proposes to provide to the Water Department during fiscal 2010/2011 at a contract price of $522,267. Office Automation . Provide technical assistance for Water Department office automation servers and domain controllers . Troubleshoot "malfunctioning" Microsoft operating systems and Office products (Word, Excel, Outlook, PowerPoint and Access). . Provide use of the City's file, anti-virus, anti-spam and email servers and processes. . Create, delete, and alter network accounts, scripts, and user folders on the City office automation server as required. . Create, delete, set security and alter email, public folders and mailboxes. . Maintain anti-virus software on client and server PCs. Includes installation and upgrades of anti-virus software (semi-annual), anti-virus scan engine (quarterly), and new virus pattern files as they become available. . Provide introductory Outlook training classes as requested. . Audit email content and usage upon request. . Department-wide upgrade to Microsoft Office 2007 (or 2010) including Outlook, Word, Excel and Access. . City-wide upgrade of main email software to Exchange 2007 (or 2010). (This upgrade will provide larger mailboxes, improved system response, improved security, and Apple iPhone support. Additionally Outlook Web Access (OWA) will now mirror the look and feel of Outlook 2003/2007 including spell check.) GIS · Provide maps and/or reports as requested. (Large maps, map series and special papers are available at cost of materials.) · Add Water district layers as required to ArcGIS. · Continue ArcGIS training and establish an internal City ArcGIS user group. · Provide access to County Assessor data through the parcel layer. · Provide access to year 2000 census data with extrapolations through 2013 . Provide access to appropriate GIS layers. . Provide assistance to Water GIS personnel. · Provide access to all personnel (not just GIS staff) to the City's web based GIS. · Provide access to any ESRI software and software licenses provided and specified by the City's Enterprise License Agreement (ELA) with ESRI. Provide ELA management as Attachment 1 provided by the City's ESRI ELA Memorandum of Understanding Internal Usage Agreement. Public Web Site . Provide web site hosting on the City web server. · Facilitate direct update-access to Water Department content on the City web server through the Civica Content Management System (CMS). . Provide Civica CMS user training. · Provide limited web page design and development services. · Publish web site content provided by the Water Department to the City web server. · Provide web server administrative services including performance monitoring, system tuning, system security, and installation of server software upgrades and service packs. · Maintain sbcitywater,org domain name system service. Intranet (Internal) Web Site . Provide access to the City's Intranet web site content. · Host Water Department content designated internal use only on the City's Intranet server. (Examples: policies and procedures, standard forms, employee benefit information, etc.) This content wi Ii be accessible to all employees, but not the public. o Facilitate direct update-access to Water Department content on the City's Intranet web site through the Civica Content Management System (CMS). o Provide online how-to procedural documentation of Office products. (Examples: How to use OWA, how to create and use Personal Folders, how to find a particular file on your PC, how to identify spam, what should I do when I get a virus, quick tutorial on Word 2007, Outlook 2007, etc.) Virtual Server Manaoement · Provide management and monitoring of the Water Department's VMware Virtual Server environment. · Manage data replications services to the Water Department's Local Recovery Center when operational. Network · Provide access to the City's TCP/IP network via digital spread spectrum radio bridges. · Provide access to the Internet via the City's recently upgraded higher-speed connection. · Set up and maintain Internet access accounts to facilitate web browsing by authorized individuals. · Provide secure inbound and outbound Intemet mail service using the SMTP protocol. 2 Attachment 1 · Design, configure, install and maintain WAN network links utilizing digital spread spectrum radio bridges, fiber gigabit links and switched frame relay. · Provide assistance in designing, configuring, installing and maintaining all components of the City's network infrastructure. · Provide access to the City's intranet utilizing the City's high-speed switched gigabit Ethernet backbone. · Administer 2 Unix-based firewalls that provide security to the City's network and Internet connection and also provide virus filtering on all protocols. · Provide DNS naming service, including name registration and name server management. · Administer maintenance and service contracts for SBC I ntemetworking , SBC, NPA Computers Inc., Citrix, Accent Computers, Secure Computing and Hewlett Packard/Compaq Inc. · Provide and maintain authorized access to the City's local network through a secure web based Remote access system and standards-based VPN. · Install, maintain and troubleshoot Cat Ve UTP cable plant including cables, jacks, wall plates and punch down assemblies. (Major cabling projects, drilling, or new conduit work may be subcontracted, and would represent a cost to Water). · Provide for 'first-defense' anti-spam protection at the firewall level. Financials (Sunoard Public Sector) · Administer system at operating system level, including installation and upgrades of the following software: . IBM operating system (OS/400) . HTE Naviline · HTE application software (GMBA, payroll, purchasing/inventory, fleet, etc.) · Develop form and check definitions as required (ACOM EZeDocs) · Perform accounts payable backups on request prior to weekly final register and check processing, and transmit positive pay data to Wells Fargo. · Transmit direct deposit and positive pay data to Wells Fargo. · Provide after hours access and technical assistance to maintenance vendors as necessary. Document Imaoino · Administer system at server level, including installation and upgrades of the following software: · Microsoft operating system (Windows 2000, 2003 Server) · Microsoft database (SQL Server 2000, 2005) 3 Attachment 1 . Provide assistance to Water Department personnel in installation and troubleshooting of client applications. . Act as technical liaison to the software vendor in resolving problems as needed. . Provide after hours access and technical assistance to maintenance vendors as necessary. . Provide support of Laserfiche document imaging system. . Review of interface configurations. . Technical assistance for installation and configuration of hardware and software. . Provide server level support for Optispool/Optiview applications. Permit Trackinq . Provide access to the Accela Permitst system. . Perform server administrative services including performance monitoring, system tuning, and installation of software upgrades and patches. . Act as technical liaison to the software vendor in resolving problems. City Business System (Linus) . Provide access to County Assessor parcel information. Utilitv Billinq (UB) . Administer system at operating system level, including installation and upgrades of the following software: . IBM Operating system (OS/400) . Existing UB related software programs (Sungard Public Sector (SPS), Naviline, HTEDMS, Itron, Acom, ITRAN (Remittance Processor), Cog nos QREP) . Act as technical liaison with operating system vendor (IBM), utility billing software vendors (SPS, Itron, Acom, Cognos), and remittance processor vendor (TUI). . Provide assistance with setup of user accounts, access, and security at the operating system level. . Provide after hours access and technical assistance to maintenance vendors as necessary. . Provide technical assistance for Naviline software and existing third party applications (Itron, Acom, Standard Register, Cognos). (This does not include assistance in how to use Naviline or third party software.). . Maintain support for internally created interface applications (ECC, positive pay, bank drafting). . Provide Cog nos Impromptu (QREP) training to report writing staff. . Create and/or assist users in creating reports using Cognos Impromptu (QREP). 4 Attachment 1 . Provide bill design and modification services (OREP). . Provide notification design and modification services using HTEDMS. . Monitor and maintain the automated derogatory file updates for the remittance processor (lTRAN). . Generate and transmit refund check positive pay data to Wells Fargo. . Transmittal of bank drafting data to Wells Fargo. . Establish methods for customers to directly access account information. . Establish procedures for correction and maintenance of service addresses. . Maintain Microsoft SOL 2000 database for Remittance Processing. Miscellaneous Water Systems Employee Training Tracking System . Provide administrative, technical and application support to end-users of system. . Provide additional development as needed Maintenance Contract Tracking System . Provide administrative, technical and application support to end-users of system. Vehicle and Equipment Rental Management System . Provide administrative, technical and application support to end-users of system. Maximo . Assist in performing system administration functions such as application software upgrades. . Act as technical liaison to the vendor in resolving problems. . Work towards migration to Sungard Naviline applications if required. DataOuick . Act as technical liaison to the vendor in resolving problems. Experian Credit Check System . Act as technical liaison to the vendor in resolving problems. J.J. Keller & Associates (Compliance Information Manager & Workplace Safety Management software) . Act as technical liaison to the vendor in resolving problems. 5 Attachment 1 Operations . Perform daily backups (Monday - Friday) of Sungard application data, Athena (Laserfiche), Triton (HRlRemittance), WUServer, and office automation servers. . Perform weekly, monthly, and year-end full system backups of Sungard, Athena (Laserfiche), Triton (HRlRemittance), WUServer, and office automation servers. . Provide remote backup monitoring for remote servers (ARIEL) . The IT Division is not responsible for backing up data that is not saved to these aforementioned servers. . Provide offsite storage for selected weekly, monthly and year-end full system backups in a secure off-site media storage facility. . Provide backup media and related supplies. . Maintain tape library. . Retrieve off-site tapes and restore data as required. . Ship equipment to vendors for repair. . Provide utility billing print services including: . Initial, Cycle, Off-cycle, and Final Bills . Delinquent Notices . 48 Hour Disconnect Notices . Multi-family Disconnect Notices (10 Day Notice) . Return Check Letters . Tenant Letters . Customer refund checks . Bill Notices . Install PC software including SB Client, Client Access, Maximo, HTE Naviline, Cog nos Impromptu, virus protection, Microsoft operating systems and Office suite. . Troubleshoot PC and printer malfunctions. . Provide preventative maintenance for printers. . Install and relocate PCs and printers. . Maintain inventory of PCs, laptops, printers and desktop software, on equipment connected to the City network. . Service walk-through at City Hall, Water Yards, Water Admin Bldg, and WRP twice per week. . On-site business-hours support from 6:00 AM to 5:30 PM, Monday through Thursday, and 6:00 AM to 4:30 PM on Fridays. . On-site after-hours support for special processing, report printing, upgrades, etc. . Administer maintenance contracts for desktop PCs & printers, laptops, and line printers. 6 Other . . . . . . . . . . . Attachment 1 Provide support and guidance for Business Continuity / Disaster management plan. Provide training and guidance to Water Department BSG staff. IT representative attendance at department meetings (agenda setting/debriefing, WTC, Web site committee) as requested and/or possible. Review & sign-off of requests for technology purchases, monitoring for department-wide compatibility and standardization. Keep the Water Department informed of City technology projects of interest. Develop simple Microsoft Access and Visual Basic applications. Administer Business Continuity / Disaster Management plan for mission-critical systems. Develop tools for management to more easily access reports and data from systems. Manage catalog of all applications, systems and databases that identifies assets available to management. Manage and coordinate technology projects. Attend training provided by systems vendors and provide follow-up training to Water Department staff. Notes: The following notes represent information that may have an impact on Water and/or reminders of topics that have been brought up from a technology perspective for consideration in planning for the future. . A technology replacement fund should be considered (i.e. major server hardware and software upgrades, networ\< upgrades, PC replacements, printers, etc.) . Additional Civica licensing has been acquired for Intranet Development. Water may wish to review this option for internal needs. 7