City of Simi Valley
Staff Report
J
une 8, 2026
To: Cit
y Council
Fr
om: Administrative Services,
Carolyn Johnson, Administrative Services Director
Subj
ect: Award a professional services agreement to MGT Impact Solutions, LLC for Senate Bill 90 State Mandated Cost Reimbursement Claim Services Sta
ff Recommendation
I
t is recommended that the City Council:
1. A
ward a professional services agreement (Attachment A) to MGT Impact Solutions, LLC in the amount of $25,000 to prepare and file Senate Bill 90 (SB 90) State Mandated Cost Claiming Services for a period of two years (the “Initial Term”) from July 1, 2026, to June 30, 2028.
2. A
uthorize the City Manager , or her designee, to approve any subsequent amendments to the Agreement , in a form approved by the City Attorney, to incorporate future budgeted funds as approved by the City Council for the Agreement and to extend the term for periods not exceeding two (2) years per extension (each, a “Renewal Term”), provided that such extensions do not exceed two (2) additional terms, with the final extension ending on or before June 30, 2032, as desirable.
Ba
ckground
O
n September 1, 2021, the City initiated services with MGT of America Consulting, LLC through a purchase order to prepare and process State Mandated Cost SB 90 claims for reimbursement of costs incurred by the City in providing State- mandated programs.
Satisfied with their performance, the City formalized a written agreement with MGT on June 22, 2022, for a two- year term through June 22, 2024, with an optional two -year renewal period. The agreement was subsequently amended to extend the term through June 22, 2026, consistent with the renewal options, and to increase the total not -to- exceed contract amount to $62,500 to support continued services.
On
August 19, 2024, MGT of America Consulting, LLC , notified the City that it had undergone an entity and name change to MGT Impact Solutions, LLC. To reflect this change, the City approved a Consent of Assignment and Third Amendment assigning all terms, conditions, and obligations of the existing agreement from MGT of America Consulting, LLC to MGT Impact Solutions, LLC (MGT -IS), with no changes to the scope of services, compensation, or other contractual terms.
Agenda Item No.
Consent (8)
Discu
ssion
Thes
e services remain essential to ensuring the City continues to receive timely, compliant reimbursements from the State for mandated programs.
On M
arch 10, 2026, the City received a proposal from MGT -IS to prepare and file all eligible annual claims and any new claims due during fiscal years 2027 and 2028 for the reporting fiscal years of 2026 and 2027. The City reviewed the proposal and fee structure and found that the consultant’s pricing remained stagnant, was competitive and consistent with market rates, and provided added value through institutional knowledge and service continuity.
MGT-IS br
ings extensive experience and specialized expertise in State Mandated Cost (SB 90) claims, backed by a long- standing track record of service to the City, having recovered over $600,000 in costs from State-mandated programs since onboarding in 2021. The firm provides comprehensive, turnkey services that include identifying eligible claims, preparing and filing submissions, and coordinating with City staff, while minimizing administrative burden through simple data-collection reports and summaries. M GT-IS’s approach focuses on maximizing State reimbursement revenues while ensuring accuracy, compliance, and defensibility of claims. Additionally, the firm offers proactive regulatory updates and audit support, as well as structured project management to ensure timely, efficient claim submissions.
In ac
cordance with the Simi Valley Municipal Code Section 2-9.110(b), a contract with a term exceeding five (5) years, including any optional renewals, regardless of the contract amount, requires approval by the City Council. Therefore, staff recommends that the Council award an Agreement to MGT-IS for an amount not to exceed (NTE) $25,000 and authorize the City Manager to approve any subsequent amendments to incorporate future budget to the NTE amount and extend the Agreement up to two additional terms of two years each, up to six (6) years ending June 30, 2032.
Fina
ncial Impact
The c
ost of this action will be included in the FY 2026-27 Adopted Budget and the subsequent recommended Annual Budgets under the Support Services Professional Services account. No appropriation is required.
Cit
y Council Priority
Thi
s item supports the City Council’s Fiscal Stability P illars of Excellence by making strategic investments to diversify revenue streams and ensure long-term fiscal health.
Sugge
sted Motion
I
move to award a professional services agreement to MGT Impact Solutions, LLC, in the amount of $25,000, to prepare and file Senate Bill 90 (SB 90) State Mandated Cost Claiming Services for a period of two years through June 30, 2028; and to authorize the 2 City Manager, or her designee, to approve any subsequent amendments to the Agreement to incorporate future budgeted funds, increasing the not -to-exceed amount, and extend the term of the Agreement up to two (2) Renewal Terms, with a final extension ending on or before June 30, 2032, as desirable.
Summa
ry
The C
ity has utilized MGT-IS's services since 2021, providing comprehensive, turnkey services that ensure the accurate, timely, and compliant preparation and submission of SB 90 State -mandated cost -reimbursement claims. MGT Impact Solutions, LLC has successfully recovered State reimbursements to the City while minimizing staff workload.
In March, the City received a proposal from MGT-IS, and staff found the proposed fees to be consistent with market rates and reflect the value of the firm’s expertise and institutional knowledge. It is recommended that the City Council award a professional services agreement to MGT-IS in the amount of $25,000 to prepare and file SB 90 State- mandated cost claiming services and authorize the City Manager, or her designee, to approve any subsequent amendments to the Agreement.
Pr
epared by: Johanna Medrano, Deputy Administrative Services Director, Budget & Purchasing
Atta
chments:
Atta
chment A – MGT PSA
3 Attachment A
AGREEMENT NO. 3260150
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF SIMI VALLEY AND
MGT IMPACT SOLUTIONS LLC
FOR SB90 STATE MANDATED COST REIMBURSEMENT SERVICES
THIS AGREEMENT is entered into this 8TH day of June 2026, by and between the CITY OF SIMI VALLEY, a municipal corporation and general law city (“CITY”) and MGT IMPACT SOLUTIONS, LLC a Florida limited liability company (“CONSULTANT”).
1. CONSIDERATION.
A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, below;
B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement;
C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed $25,000 for CONSULTANT’s services. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit “A,” which is incorporated by reference.
2. SCOPE OF SERVICES.
A. CONSULTANT will perform services listed in the attached Exhibit “A,” which is incorporated by reference.
B. CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement.
3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CITY will continuously monitor CONSULTANT’s services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have fifteen (15) days after such notification to cure any shortcomings to CITY’s satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT.
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4. PAYMENTS. CITY will pay CONSULTANT in accordance with the schedule of fees in Exhibit “ A”. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit “A”) the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that work during the preceding billing month and a cumulative cash flow curve showing projected and actual expenditures versus time to date.
5. NON-APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year.
6. ADDITIONAL WORK.
A. CITY’s City Manager (“Manager”) may determine, at the Manager’s sole discretion, that CONSULTANT must perform additional work (“Additional Work”) to complete the Scope of Work. If Additional Work is needed, the Manager will give written authorization to CONSULTANT to perform such Additional Work.
B. If CONSULTANT believes Additional Work is needed to complete the Scope of Work, CONSULTANT will provide the Manager with written notification that contains a specific description of the proposed Additional Work, reasons for such Additional Work, and a detailed proposal regarding cost.
C. Payments over $ 25,000 for Additional Work must be approved by CITY’s City Council, Manager or Department Head as provided in title 2, chapter 9 of CITY’s municipal code. All Additional Work will be subject to all other terms and provisions of this Agreement.
7. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONSULTANT agrees that it has:
i. Carefully investigated and considered the scope of services to be performed;
ii. Carefully considered how the services should be performed; and
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iii. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.
B. If services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT’s own risk until written instructions are received from CITY.
8. TERM. The term of this Agreement will be from July 1, 2026 to June 30, 2028 (the “Initial Term”). This Agreement may be renewed for up to two (2) consecutive two- year periods (each, a “Renewal Term”), not to exceed a total of four additional years through June 30, 2032. Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances:
A. Completion of the work specified in Exhibit “A”;
B. Termination as stated in Section 16.
9. TIME FOR PERFORMANCE.
A. CONSULTANT will not perform any work under this Agreement until:
i. CONSULTANT furnishes proof of insurance as required under Section 23 of this Agreement; and
ii. CITY gives CONSULTANT a written notice to proceed.
B. Should CONSULTANT begin work on any phase in advance of receiving written authorization to proceed, any such professional services are at CONSULTANT’s own risk.
10. TIME EXTENSIONS . Should CONSULTANT be delayed by causes beyond CONSULTANT’s control, CITY may grant a time extension for the completion of the contracted services. If delay occurs, CONSULTANT must notify the Manager within forty- eight hours (48 hours), in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement’s schedule. The Manager will extend the completion time, when appropriate, for the completion of the contracted services.
11. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this 6 City of Simi Valley
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Agreement supersedes any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits appear below:
Exhibit A: MGT Impact Solutions Proposal
12. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties.
13. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number.
14. PERMITS AND LICENSES . CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.
15. WAIVER. CITY’s review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT’s performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character.
16. TERMINATION.
A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause.
B. CONSULTANT may terminate this Agreement at any time with CITY’s mutual consent. Notice will be in writing at least thirty (30) days before the effective termination date.
C. Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT'’ own cost; CITY will not be obligated to compensate CONSULTANT for such work.
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D. Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY’s option, become CITY’s property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section 1(C).
E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated.
F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY’s termination under this Section.
17. OWNERSHIP OF DOCUMENTS; EXCEPTIONS; WARRANTY. Except as otherwise provided below, all documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT (collectively, “Documents”) under this Agreement are CITY’s property. CONSULTANT may retain copies of such Documents as desired but will deliver all original materials to CITY upon CITY’s written notice. CITY agrees that use of CONSULTANT’s completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY’s own risk. CONSULTANT warrants that all Documents it drafts and completes pursuant to this Agreement constitutes original work. Specifically, CONSULTANT understands and agrees that use of artificial intelligence (AI) tools including, without limitation, ChatGPT, Microsoft’s Bing Chat, Google’s Bard, and Meta’s LLaMA (Large Language Model Meta AI), in the performance of this Agreement does not constitute an original work, i.e., submitting Documents generated by such AI tools to CITY and representing it as CONSULTANT’s original work constitutes a material breach of this Agreement, constitutes a false claim, and may also violate applicable intellectual property right laws including, without limitation, United States Copyright Law. Accordingly, and notwithstanding any other provision of this Agreement as to ownership, CITY specifically rejects ownership of such Documents. CONSULTANT is required to indemnify and defend CITY to the fullest extent allowed by applicable law should it violate this Section.
18. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by CONSULTANT to any other person or public CITY without CITY’s prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties.
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19. INDEMNIFICATION.
A. CONSULTANT agrees to the following:
i. Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY’s request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT’s officers, agents,
employees, or representatives, in the performance of this Agreement, except for such loss or damage arising from CITY’s sole negligence or willful misconduct.
ii. Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney’s fees), injuries, or liability, arising out of this Agreement, or its performance, except to the extent that such loss or damage arises from CITY’s sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY’s request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise.
B. For purposes of this section “CITY” includes CITY’s officers, officials, employees, agents, representatives, and certified volunteers.
C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement.
D. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 23, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification.
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20. ASSIGNABILITY. This Agreement is for CONSULTANT’s professional services.
CONSULTANT’s attempts to assign the benefits or burdens of this Agreement without CITY’s written approval are prohibited and will be null and void. Notwithstanding the foregoing, CONSULTANT, or its permitted successive assignees or transferees, may assign or transfer this Agreement or delegate any rights or obligations hereunder without consent: (i) to any entity controlled by, or under common control with, CONSULTANT, or its permitted successive assignees or transferees; or (ii) in connection with a merger, reorganization, transfer, sale of assets or change of control or ownership of CONSULTANT, or its permitted successive assignees or transferees.
21. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY.
CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees.
Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only.
22. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement.
23. INSURANCE.
A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below:
Type of Insurance Limits
C ommercial general liability: $1 ,000,000 per claim, $2,000,000 aggregate
Professional Liability $1,000,000
Business automobile liability $1,000,000
Workers compensation Statutory requirement
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B. Commercial general liability insurance will meet or exceed the requirements of the most recent ISO-CGL Form. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name CITY, its officials, and employees as “additional insureds” under said insurance coverage and to state that such insurance will be deemed “primary” such that any other insurance that may be carried by CITY will be excess thereto. Such endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or equivalent. Such insurance will be on an “occurrence,” not a “claims made,” basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY.
C. Professional liability coverage will be on an “occurrence basis” if such coverage is available, or on a “claims made” basis if not available. When coverage is provided on a “claims made basis,” CONSULTANT will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out o f any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect.
D. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto).
E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of “A:VII.”
F. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT’s expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or ter minate pursuant to Section 16.
G. Self-Insured Retention/Deductibles. All policies required by this Agreement must allow CITY, as additional insured, to satisfy the self -insured retention (“SIR”) and deductible of the policy in lieu of CONSULTANT (as the named insured) should CONSULTANT fail to pay the SIR or deductible requirements. The amount of the SIR or deductible is subject to the approval 11 City of Simi Valley
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of the City Attorney and the Risk Manager. CONSULTANT understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by CONSULTANT as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should CITY pay the SIR or deductible on CITY’s behalf upon the CONSULTANT’S failure or refusal to do so in order to secure defense and indemnification as an additional insured under the policy, CITY may include such amounts as damages in any action against CONSULTANT for breach of this Agreement in addition to any other damages incurred by CITY due to the breach.
24. USE OF SUBCONTRACTORS . CONSULTANT must obtain CITY’s prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation.
25. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on the project, which will include a schedule update and a short narrative description of progress during the past month for each major task, a description of the work remaining and a description of the work to be done before the next schedule update.
26. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows:
If to CONSULTANT:
If to CITY:
Attention: Director Contract Operations Attention: Carolyn Johnson, Administrative Service Director
MGT Impact Solutions, LLC City of Simi Valley
432 West Kennedy Blvd., Ste. 200 2929 Tapo Canyon Road
Tampa, FL 33609 Simi Valley, CA 93063
(813) 327-4717 (805)583-6361
[email protected] [email protected]
Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.
27. CONFLICT OF INTEREST . CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY’s conflict of interest regulations.
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28. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT’s bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT’s bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability.
29. THIRD PARTY BENEFICIARIES . This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT’s or CITY’s obligations under this Agreement.
30. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Ventura County.
31. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement.
32. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. There is one (1) Attachment to this Agreement. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns.
33. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.
34. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect.
35. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. CITY’s M anager, or designee, may execute any such amendment on behalf of CITY.
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36. ELECTRONIC SIGNATURES. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one Agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Agreement, Agreements ancillary to this Agreement , and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature.
37. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement.
38. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement.
39. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties’ reasonable control, then the Agreement will immediately terminate without obligation of either party to the other.
40. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY.
[SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF , the parties hereto have executed this Agreement the day and year first hereinabove written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: MGT IMPACT SOLUTIONS, LLC
By:
Algeria R. Ford, City Attorney
Print Name: TREY TRAVIESA
Approved as to Content: Title: CHAIRMAN AND CEO
Samantha C. Argabrite, City Manager
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Carolyn Johnson
Administrative Services Director
15 Proposal
Submitted by:
MGT IMPACT SOLUTIONS
Proposal
MARCH 10, 2026
SB 90 STATE MANDATED
COST REIMBURSEMENT
SERVICES
16 Exhibit A
MGT.US
CITY OF SIMI VALLEY , CA
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES
MARCH 10, 2026
Table of Contents
TRANSMITTAL LETTER .......................................................................................... 1 FIRM PROFILE ......................................................................................................... 2 FIRM PROFILE .......................................................................................................... 3 EXPERIENCE AND QUALIFICATIONS OF KEY PERSONNEL ................................. 5 PROJECT APPROACH ............................................................................................ 7 SCOPE OF SERVICES ............................................................................................... 7 WORK PLAN ............................................................................................................. 8 PROFESSIONAL FEES ............................................................................................ 10 17 CITY OF SIMI VALLEY, CA | MARCH 10, 2026
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES PAGE 1 Transmittal Letter
March 10, 2026
Ms. Carolyn Johnson
Administrative Services Director
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Subject: Proposal for State Mandated Cost Claiming Services (SB 90) Dear Ms. Johnson:
We appreciate the opportunity to provide the City of Simi Valley (City) with this proposal for State Mandated Cost Claiming Services (SB 90). MGT Impact Solutions LLC (MGT) believes that we offer the City solutions that will meet your specific objectives while providing the best value.
MGT is uniquely qualified to provide the City with the best staffing and highest level of service available in the state mandate claiming area. Our primary goal for this SB 90 engagement is to produce and file state mandated cost claims that maximize revenue while being technically sound and accurate. We will continue to provide the City with our turn-key approach to state mandated cost claiming while minimizing the impact on your department staff and resources. Full Suite of SB 90 Services Tailored for the City – MGT continues to offer a full suite of SB 90 services to the City with all annual claims due on February 15th, plus all new or first-time claims that are due during the fiscal year, for a fixed fee. Please see the cost section in this proposal for pricing details. In addition to annual and new claim preparation, this proposal includes up to four hours of audit assistance plus SB 90 program training and updates on what’s happening with SB 90 payments and future eligible programs.
Leaders in Local Government SB 90 Services – No other firm comes close to meeting our staff experience, knowledge, and expertise. MGT is the only firm that has multiple consultants with over 15 years of experience in the SB 90 arena.
For more than ten years our professional staff have been key partners in the City’s SB 90 claiming process. We appreciate the opportunity to continue this partnership. If you have any questions, please contact Diana Hancock at 916.662.2439 or by email at [email protected].
Sincerely,
Patrick
J. Dyer, Vice President
18 CITY OF SIMI VALLEY, CA | MARCH 10, 2026
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES PAGE 2 Firm Profile
Impacting communities for good.
MGT brings 50 years of experience driving
positive social change and performance in
education, government, nonprofits, and critical
infrastructure/private industries through
assisting clients to strengthen their foundation,
change systematically, and enable resiliencies
for long-lasting change. Since inception, MGT
has significantly grown in size and capacity –
working with state and local governments and
education partners. Today, we bring a team of
over
900 professionals who offer in-depth
market knowledge and understanding so we can
hit the ground running.
MGT is a privately held, employee-owned and
financially stable limited liability company with a
deep roster of staff and a commitment to serving
the public. Our clients care about addressing the
world’s most-pressing problems, and so do we.
Their “why” is our why.
What sets us apart is our ability to customize and offer individualized support but also the resources of a larger infrastructure to enable flexibility in impacting to-scale. Throughout our history, MGT has successfully delivered more than 30,000 projects through a thoughtful balance of balancing the “immediate” needs while changing systems to plan for future resilience and success.
Our Commitment
MGT embraces the most complex challenges on the leadership agenda, with deep commitment, agility, and local expertise to make a measurable and profound impact. Simply stated, We are
impacting communities for good.
FIRM AT A GLANCE
MGT | FIRST LOOK
Name: MGT Impact Solutions, LLC (MGT)
Locations: Headquarters in Tampa Florida;
branch offices nationwide
Cooperative Contracts:
Allied States Cooperative (ASC) #23-
7449
The Interlocal Purchasing System
(TIPS) #220601
Structure: Privately held, employee -owned,
client-driven Limited Liability Company
Lines of Business : Strategy and
Implementation, Performance and
Operations, IT Infrastructure, and Cyber
Security and Resilience for public sector
and commercial companies.
years
50 900
consultants
30,000
projects
19 FIRM PROFILE
CITY OF SIMI VALLEY, CA | MARCH 10, 2026
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES PAGE 3
A Social Impact Commitment
MGT’s Expertise
Our firm includes more than 900 professionals, structured into the following primary groups, along with various internal infrastructure groups to support our operations and growth.
DEFINED BY IMPACT
Making a profound impact on society is at the heart of who we are and what we do. The City of Simi Valley should be proud to make a difference in the lives of the citizens in your community, and we are proud to work with you toward this goal. Our team empowers organizations through innovations in people, processes, and technology to lift and strengthen your solutions.
Strategy & Implementation
Working alongside an organization’s
C-suite, we help leaders co-create
strategy through organizational
reviews and data analytics to create
actionable roadmaps for success.
Cyber Security & Resilience
From real-time, 24/7 monitoring to
proactive threat detection and rapid
incident response, we can give you the
tools to heighten your network’s
security posture and keep it there.
IT Infrastructure & Digital
We provide engineering expertise to
modernize IT infrastructure and
ensure your technology
implementation is properly designed,
integrated, modernized, and
maintained.
Performance & Operations
Bridging the gap between strategy and
enduring change, we support efficient
revenue allocation, promote economic
development, and create fairness in
hiring and contracting systems.
20 FIRM PROFILE
CITY OF SIMI VALLEY, CA | MARCH 10, 2026
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES PAGE 4 Our
MGT Vision
To achieve our mission of being the social impact and performance leader in our industry, we are continuously improving to earn the privilege of being selected as our clients’ partner of choice in the mission-critical domains we impact. By elevating education systems, managing and securing critical networks, solving complex human capital and fiscal problems, and advancing equity as a performance imperative, we can impact communities, for good through client partnership.
We deliver these solutions through our “three-point stance” of technology, education, and performance offerings. With our long-term vision of creating profound social impact through client performance, we seek out the “best of the best” to join us in our work supporting clients’ top priorities.
Markets we serve:
• Higher Education
• Prek-12
• Government
• Nonprofits
• Commercial Industries
21 EXPERIENCE AND QUALIFICATIONS OF KEY PERSONNEL
CITY OF SIMI VALLEY, CA | MARCH 10, 2026
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES PAGE 5
Experience and Qualifications of
Key Personnel
We believe our firm is uniquely able to assemble the most experienced, best qualified professional staff for this engagement. The City’s project will continue to be primarily staffed by consultants from our Sacramento office.
DIANA HANCOCK, MANAGER | PROJECT MANAGER
Ms. Hancock is a Manager with MGT and has over fifteen years of professional consulting experience working with local governmental agencies. She is experienced with large scope state mandated costs projects (SB 90), being responsible for coordination and s ubmission of SB 90 claims, with extensive experience in defending clients in desk and field audits. She has participated in, managed, and completed more than 100 separate consulting engagements throughout his career for cities, counties, towns, and special districts. Her wide range of experience, along with her exceptional organizational and interpersonal skills, makes her a significant asset to every one of her projects.
Ms. Hancock will oversee the daily work of the project and ensure project implementation occurs on schedule and in accordance with all project requirements. She will be responsible for the following:
Development of the overall project plan
Staff interviews
Preparation of all indirect cost rates (ICRP), mandated cost claims and claim review Timely submittal of claims to State Controller
Interfacing with the SCO related to field audits
Responding to desk reviews performed by the SCO
Project Approach
Scope of Services
MGT provides true turn-key mandate cost claiming services to its clients, and our approach is based around personal interaction. Our staff is involved with our clients’ claiming process throughout the year, providing proactive news, reports, and the earliest notification of new SB 90 claims possible.
We provide our clients with claiming summaries and data collection guides to assist them in understanding all of the eligible components of each program. This process supplements the interviews that our staff conduct to ensure each department contact understands precisely what data is required, and what the internal deadlines are for submission.
Most cities and Towns are at risk of desk reviews from the State Controller. We believe that part of our job is assisting your departments to understand the appropriate levels of documentation required for each claim the City files.
22 PROJECT APPROACH
CITY OF SIMI VALLEY, CA | MARCH 10, 2026
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES PAGE 6
Finally, the project manager will complete all claims, all indirect cost rate proposals, and compile all elements of the claims in electronic format and send to the City for review and signature well in advance of the claiming deadline.
MGT Consulting will provide the following services to the City:
Identify all possible SB 90 claiming opportunities.
Prepare and file all eligible annual SB 90 claims with the SCO. Prepare and file all eligible first time or new SB 90 claims that are due during the fiscal year of the contract.
Provide assistance with SCO desk reviews and up to four hours assistance in responding to field audits.
Assist the City of with knowledge transfer and training on the eligible components of each State-mandated program.
Work Plan
MGT has identified the following order of activities as the most important milestones that must occur for the City to have a successful SB 90 claiming engagement.
TASK 1.0: NEW CLAIMS
1.1 Establish a schedule and approach needed to complete all new or first-time claims due within the fiscal year.
1.2 Assist department staff in understanding the specific mandated requirements for each new SB 90 program, and how the City complies with the specific reimbursable portions of each program.
1.3 Prepare all necessary department ICRPs associated with the new SB 90 program.
1.4 Prepare claims and perform a quality assurance review of the City’s new SB 90 claim(s) to ensure the costs are supported by appropriate source documentation.
1.5 Provide the completed claims and ICRPs to the City for review and signature prior to the claiming deadline.
1.6 File the signed claims with the SCO prior to the deadline.
TASK 2.0: AN NUAL CLAIMS: DUE TO THE STATE BY FEBRUARY 15TH
2.1 Establish schedule and approach needed to complete all annual claims due to the state by February 15th.
2.2 Work with department staff in describing how the City complies with the specific mandated programs and help the City determine eligible costs.
2.3 Meet with staff to discuss data collection needs and establish deadlines for data to be due.
2.4 Prepare all necessary department wide ICRPs as they apply to the eligible SB 90 programs.
23 PROJECT APPROACH
CITY OF SIMI VALLEY, CA | MARCH 10, 2026
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES PAGE 7
2.5 Prepare claims from the City for SB 90 programs and review the claims for completeness, propriety, and eligibility of costs.
2.6 Perform a quality assurance review of the City’s SB 90 claims to ensure they mesh with the associated department ICRPs.
2.7 Discuss any potential or necessary changes with the appropriate City staff member.
2.8 Provide the completed claims and ICRPs to the City for review and signature prior to the claiming deadline.
2.9 File the signed claims with the SCO prior to the deadline.
STATE MANDATE REIMBURSEMENT INFORMATION
The SB 90 process is constantly changing and evolving. MGT will provide targeted, relevant communication on statewide issues, interpretations, and actions at the state capitol relating to the SB 90 process throughout the fiscal year via MGT Instant Updates©, a series of e-mail communiqués designed to keep our clients
up to date with the latest mandate
legislation, California Commission on State
Mandates decisions, and state agency
interpretations. MGT will sort through all of
the pertinent activity to provide the City with
the most relevant information throughout
the year, saving the City time and resources.
AUDIT ASSISTANCE
MGT will monitor State Controller requests
or issues that could affect the City’s SB 90
claims. MGT will also provide liaison
assistance with the SCO at the desk review
level. The SCO may call requesting
additional information, or duplicate
documentation that may have been
misplaced in their offices. Our firm will field
these calls and fulfill all appropriate
requests without the need for the City’s
involvement, if possible.
Nobody wants to see the SCO auditing their
claims, but higher levels of scrutiny are a
fact of life. Our team has extensive experience preparing local agencies for field audits and assisting in their representation beyond the exit conference.
This engagement includes up to four hours of audit assistance. If the City requests additional audit assistance, MGT will bill the City at the Consultant’s hourly rate. 24 CITY OF SIMI VALLEY, CA | MARCH 10, 2026
SB 90 STATE MANDATED COST REIMBURSEMENT SERVICES PAGE 8
Cost
MGT looks forward to continuing our partnership with Simi Valley. MGT proposes to perform the services included in this proposal for fiscal years 2027 and 2027 for a fixed fee of $25,000. This price includes filing all eligible annual claims due February 15, 2027 and February 28,, and any new claims due during fiscal years 2027 and 2028.
Professional Fees
CLAIMS COVERED PROPOSED FEE PAYMENT TERMS
FY 2025-2026 Annual &
New Claims filed during FY
2026-2027
Fixed Fee $12,500
Payable in full after
submittal to SCO of annual
SB 90 claims.
FY 2026-2027 Annual &
New Claims filed during FY
2076-2028
Fixed Fee $12,500
Payable in full after
submittal to SCO of annual
SB 90 claims.
25