May 16, 2023
Finance Department
DATE: May 16, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager, Internal Services
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Subject:
Contract with David Wellhouse & Associates to Prepare
and File Claims for State Mandated Cost Reimbursement
FINANCIAL IMPACT: The City will receive approximately $100,000 per year when the State Mandated Claims are paid by the State of California. The revenue will be deposited in the General Fund (01917090-334352). The proposed expenditure,
not to exceed $10,000 per year (01177015-400201).
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
City staff requests approval of a contract with David
Wellhouse & Associates, Inc. to prepare and file claims for state Mandated Cost Reimbursement.
RECOMMENDED ACTION:
APPROVE a contract with David Wellhouse & Associates
in an amount not to exceed $30,000, to prepare and file claims for State Mandated Cost Reimbursement, with a
term beginning July 1, 2023, and ending June 30, 2026,
with a $20,000 two-year option to renew – Finance
Department (Nickie Mastay/ Mubeen Qader 510-412-
2077/ Antonio Banuelos 510-620-6741).
AGENDA
REPORT
May 16, 2023
DISCUSSION:
Article XIIIB, Section 6, of the California Constitution requires the State of California to reimburse local agencies for the costs of new programs mandated by the state. The requirement that the state pay for the costs of programs it mandates to local governments first originated in 1972 with the passage of SB 90, also known as the Property Tax Relief Act of 1972. Since the passage of SB 90, the original law has been amended several times and was written into the Constitution in 1979, when California voters approved Proposition 4. Although Article XIIIB provides the legal guidance for reimbursement to local agencies, the reimbursement process is still referred to as the “SB 90” process. This term has been commonly used to refer to the entire body of statutes and procedures that govern the reimbursement process.
Every year, the City of Richmond is eligible to claim reimbursement for its SB 90 state mandated programs. Eligible reimbursements in past years have included the Open Meetings Act, absentee ballots, domestic violence background checks, identity theft, municipal storm water, crime statistic reports, and administrative license suspension, including others. In prior years, the City has utilized the services of a consultant, David Wellhouse and Associates, to research, prepare, and submit its SB 90 claims for reimbursement.
On August 31, 2022, the Finance Department issued a Request for Qualifications (RFQ) for the collection, documentation, preparation, filing, and monitoring of its state mandated claims (Attachment 2). The RFQ was posted on the City’s BidsOnline system where 886 vendors were notified, and 10 vendors downloaded copies of the RFQ. On September 22, 2022, two electronic proposals were received. The proposals were reviewed by City staff members and each vendor was found to be compliant. David Wellhouse and Associates was selected because of their qualifications, experience, and final cost. The rating matrix for both vendors is attached as Attachment 4.
City staff is requesting approval of a three-year contract with David Wellhouse and Associates to prepare and file claims for state mandated cost reimbursement, in an amount not-to exceed $30,000, with a term beginning July 1, 2023, and ending June 30, 2026, with a $20,000 two-year option to renew.
DOCUMENTS ATTACHED:
Attachment 1 – Contract
Attachment 2 – Request for Qualifications
Attachment 3 – Project Report
Attachment 4 – Rating Matrix