To: MAYOR AND CITY COUNCIL
From: JENNIFER PAUL, FINANCE DIRECTOR
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APPROVE AGREEMENT WITH MGT OF AMERICA CONSULTING, LLC FOR PREPARING AND FILING SB 90 COST CLAIMS TO OBTAIN REIMBURSEMENT FOR STATE-MANDATED PROGRAMS IN AN AMOUNT NOT TO EXCEED $21,500 FOR THE TERM OCTOBER 19, 2021 TO OCTOBER 18, 2026.
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EXECUTIVE SUMMARY
The California Constitution and California Government Code require the state to reimburse cities and counties for State-mandated services and programs. The concept of state reimbursement of local agencies for state-mandated activities originated with the Property Tax Relief Act of 1972, known as Senate Bill (SB) 90. In FY20-21, the City received $21,240 in reimbursements from SB 90 claims.
The City's agreement with MGT of America Consulting, LLC to provide SB 90 cost-claiming services has expired. After contacted other nearby cities to obtain the names of firms providing SB 90 cost-claiming services, Financial Services staff requested proposals from three (3) firms: Cost Recovery Systems, Inc. (CRS); Nichols Consulting, LLC; and MGT of America Consulting, LLC (MGT). CRS and MGT submitted proposals. Nichols Consulting did not respond.
After reviewing the proposals received, staff recommends City Council approve a five-year agreement with MGT due to providing the City with the lowest cost proposal, having extensive knowledge and understanding of the City's claims and eligible programs and a history of providing the City with excellent service for many years. MGT currently provides SB 90 cost-claiming services to over 140 cities and counties in California, including Hermosa Beach, El Segundo, Huntington Beach, Inglewood, Anaheim, Burbank and Santa Barbara.
BACKGROUND
The passage of Senate Bill (SB) 90 and other legislation authorized the state to reimburse cities for state-mandated programs and established a cost-claiming process for cities to obtain reimbursement from the state.
In recent years, the City...
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