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Item 11 - Proposed Organizational Study/Mngt. Audit Request for Qualifications/Request Solicit Proposals :.GENDA REPORT ~ - ~ CITY OF POW A Y TO: Honorable Mayor and Members of the City FROM: James L. Bowersox, City Man~ INITIATED BY: Peggy A. stewart, Director of Administrative Services Janis Acosta, Management AnalYs~ DATE: March 17, 1992 SUBJECT: Proposed Organizational study/Management Audit Request for Qualifications and Request to Solicit Proposals for a Revenue-Cost Analysis and Sales Tax Audit ABSTRACT In response to the City Council's pursuit to improve the quality of services provided by the City, to assess the city's revenues and expenditures to determine whether fees assessed by the City cover costs associated with services provided by the City, and to ensure that the city is receiving an appropriate sales tax allocation from revenues generated within the City, it is being recommended that the city Council approve the proposed Organization Study/Management Audit Request for Qualifications provided in Attachment A and direct staff to solicit proposals from the Management Services Institute, Inc to conduct a Revenue- Cost Analysis and from Hinderliter, de Llamas and Associates to perform a Sales Tax Audit of the city. BACKGROUND On November 21, 1991, the city Council concurred that an independent audit of the City'S operations would be valuable for improving upon the quality of service the City provides to the public. In response to the Council's request for further management audit information, on January 16, 1992, staff provided the City Council with information about the various types of independent management audits available and indicated to the Council that the scope of work for an audit is entirely dependent upon the City's specific expectations for the management audit process. At that time, the City Council agreed that the selected firm would provide the city assistance in developing the audit's scope of work and directed staff to begin drafting a Request for Qualifications. ACTION: ~ 1 of 42 MAR 1 7 1992- ITEM 11 -----_.._--~ ..-- Agenda Report Request for Qualifications March 17, 1992 Page 2 FINDINGS Provided in Attachments A is a proposed Request for Qualifications (RFQ) for an Organization study/Management Audit. The proposed Organizational study/Management Audit RFQ specifies that the City of poway maintains a commitment to excellence in public service and is seeking a management consulting firm in an effort to improve upon the City's quality of service. The General Scope of the RFQ explains further that the City is pursuing a management audit to improve responsiveness and efficiency through the process of evaluating how the City provides public services, identifying potential areas of improvement, and looking at recommended alternatives. Although government agencies are not often equated with quality, staff has found through the process of developing the proposed RFQ that a recent trend in government is an emphasis on quality service and productivity. Cities are attempting to create more flexible and citizen-orientated agencies by questioning how to provide quality service while seeking ways that enable the city to become more efficient and responsive. Since quality is difficult to measure, many cities are beginning to conduct annual citizen surveys. Surveys have become useful in finding out if citizens are satisfied with city services and whether city departments are meeting the needs of customers. Through a commitment to quality, employee quality training sessions, and exploring new ways of providing customer service, cities are not only improving efficiency and responsiveness but are beginning to create customer driven agencies. - In an effort to emphasis the City's commitment to quality, section three of the proposed RFQ includes a list of general issues to be addressed by the selected firm during the audit process. Specifically, the issues consist of looking at ways of improving the quality of direct services provided by the City, evaluating the role of the City's citizen advisory committees, developing "quality" standards to be incorporated in the City's General Plan, and assessing ways the City can improve communication and responsiveness with citizens. The list of issues also includes reviewing and improving the City's permit process as well as looking at areas where the city could utilize private sector principles, contract more services, or pursue privatization. 2 of 42 MAR 1 7 1992 ITEM 11 - Agenda Report - Request for Qualifications March 17, 1992 Page 3 section three of the organizational study/Management Audit RFQ indicates that the audit process will begin with the selected firm first meeting and working with the City Council to develop the study's scope of work. The RFQ specifies that the public, including the poway Chamber of Commerce, Civic Associations, and Budget Review Advisory Committee, will be invited to provide input throughout the audit process. section three also specifies that after the scope of work has been determined, the total amount for the contract will be negotiated prior to implementing the work plan. Within section four of the RFQ, each firm is required to provide a detailed proposal including a description of the firm, references and work samples of similar work performed, description of approach, and proposed work plan. Firms would also be required to provide resumes, references, and descriptions of similar projects as well as a description of responsibilities for each employee the firm assigns to the project. Furthermore, the City would require information about the firm's hourly rates and availability for employees in addition to a time estimate and ..-- cost range for completing the study/audit process. Since the city may require components from both an organizational study and management audit, "organizational study" has been added to the Management Audit's RFQ title. Typically, an organizational study consists of an analysis of an agency's organizational structure while a management audit includes the review and assessment of the organization, management, operations, effectiveness, workloads, staffing, and morale of the agency. In terms of a process for selecting a firm, responses for the Organizational Study/Management Audit RFQ would be evaluated by a subcommittee comprised of council members, Budget Review Advisory Committee members, and staff. The subcommittee would select the most responsive firms for an interview based on proposal qualifications. The City council would then receive recommendations from the subcommittee based upon the interview process and the evaluation of the most qualified proposal. In addition to conducting an Organizational Study/Management Audit, a Revenue-Cost Analysis and Sales Tax Audit are being proposed to address the Council's previous interests expressed about whether fees assessed by the city cover costs associated with services provided by the City and if the City is receiving an appropriate sales tax allocation from revenues generated ,- within the City. 3 of 42 MAR 1 7 1992 ITE~ 11 Agenda Report Request for Qualifications March 17, 1992 Page 4 A Revenue-Cost Analysis would provide the City with a detailed assessment of the City's revenues and expenditures by identifying and comparing revenues with costs related to providing services, analyzing available revenues and fee structures, and looking at the strengths and weaknesses associated with financing City services. The analysis would also assess alleviatory measures for financing city services while identifying and recommending available revenue sources that may be used or more efficiently utilized. The selected firm would be asked to include salaries, full fringe benefits, expenses, supplies, building occupancy and equipment charges, departmental and general city overhead, indirect costs, fixed asset charges, and miscellaneous costs in the analysis of the City'S expenditures. Many cities in California are finding that they are not receiving their entire sales tax revenue allocation due to point-of-sale distribution and reporting errors. Due to distribution errors, municipal sales tax revenue has at times been misallocated to the state Pool, County Pool, or other jurisdictions. The pursuit of a Sales Tax Audit would ensure that the City is receiving an appropriate sales tax allocation from revenues generated within the city. A Sale Tax Audit would consist of a firm gathering information about the City's sales tax base, inventorying and analyzing every business within the City, identifying point-of- sales distribution and reporting errors, and facilitating corrective action when point-of-sales errors are identified. Since both a Revenue-Cost Analysis and Sales Tax Audit are more technical in nature than a organizational study or management audit, staff is recommending that the City solicit proposals from two specific firms that are widely utilized by municipalities. It is suggested that the City solicit a Revenue-Cost Analysis proposal from the Management Services Institute, Inc. and a Sales Tax Audit proposal from Hinderliter, de Llamas and Associates. Once proposals are received from the two firms, the proposals and contracts would be brought forward to the city Council for approval. Provided in Attachment B is a copy of a Revenue-Cost Analysis proposal prepared by the Management Services Institute, Inc. (MSI) for the City of Riverside. City staff have recently met with Douglas Ayers, Chairman of MSI, Inc. to discuss services available through MSI-copyrighted Municipal Business System. A letter dated January 27, 1992 recapping the meeting with Mr. Ayers is provided in Attachment C. Mr. Ayers indicated to the City that it would take approximately six to twelve months to conduct a Revenue-Cost Analysis on MSI's Municipal Business 4 of 42 MAR 1 7 1992 ITEM 11 . - Agenda Report - Request for Qualifications March 17, 1992 Page 5 System and that the costs for conducting the analysis would total $78,000. The process for conducting the analysis would include MSI staff meeting with City staff to gather financial data as well as train staff to use the MSI Municipal Business System. The total cost of the Revenue-Cost Analysis includes conducting the analysis, providing the City with the necessary software programs and data, and travel and on-site subsistence expenses. A brochure of sales tax management services offered by Hinderliter, de Llamas and Associates is provided in Attachment D. Hinderliter, de Llamas and Associates have indicated that the firm identifies and corrects point-of-sale tax misallocations through computer analysis, cross directory checks, field investigations, and ongoing coordination with businesses and the State Board of Equalization. The firm also focuses on educating local businesses about business tax when correcting critical errors rather than enforcement so improve municipalities' relationships with local businesses. FISCAL IMPACT - An Organizational Study/Management Audit costs in the range of $12,000 to $55,000. The lower range costs would relate to a smaller scope of work such as departmental analysis and the higher end of the range would involve a full organizational analysis. A Revenue-Cost Analysis has been estimated to cost $78,000. The cost of Sales Tax Audit conducted by Hinderliter, de Llamas and Associates is unknown at this time, however the contract with the firm would be structured to produce an economic return greater than the cost of the tax audit service. RECOMMENDATION It is recommended that the city Council approve the proposed Request for Qualifications for an Organizational study/Management Audit and direct staff to solicit proposals from the Management Services Institute, Inc to conduct a Revenue-Cost Analysis and from Hinderliter, de Llamas and Associates to perform a Sales Tax Audit of the City. Attachments: A. Request for Qualifications - Organizational Study/Management Audit B. Sample Revenue-Cost Analysis proposal C. Letter dated January 27, 1992 from Douglas Ayers, Chairman of Management Services Institute, Inc. D. Hinderliter, de Llamas and Associates Brochure 5 of 42 MAR 1 7 1992 ITEl': 11 - -------------- CITY OF POWAY Request for Qualifications ORGANIZATIONAL STUDY / MANAGEMENT AUDIT I. GENERAL SCOPE: The City of poway is seeking a management consulting firm to conduct an organizational study/management audit of the City's operations. The City of poway has a commitment to excellence in public service and desires to look at ways in which the City can improve the quality of its service to the public. Through the process of an organizational study/management audit, the city is seeking to improve responsiveness and efficiency by evaluating how the City currently provides public services, identifying potential areas of improvement, and looking at recommended alternatives. II. BACKGROUND INFORMATION: The City of poway is a rural residential community encompassing 40 square miles in the County of San Diego and has a population of approximately 44,500 residents. The city incorporated in December, 1980 as a full-service general law City and operates under the Council/Manager form of government. Currently, the City has 218 full-time employees and provides water, sewage disposal, fire, paramedic, park and recreation, planning and building, engineering, street maintenance, and landscape maintenance services. Law enforcement services are provided by the San Diego County Sheriff's Department. Since incorporation, the City of poway has been growing at an extremely rapid pace. In 1983, the poway Redevelopment Agency was established with a $400 million financing cap which serves the 8,200 acre paguay Redevelopment Project area. In the mid- 1980's, the City began actively working toward the development of the 2,400 acre South poway Planned Community in which the City has successfully encouraged commercial and industrial development in south Poway's 1,200 acre South poway Business Park. Furthermore, within the past ten years, the City has constructed an 815 seat Performing Arts Center, entered into numerous joint projects with the poway Unified School District, developed over 141 acres of parkland, constructed an olympic-sized community pool, and networked over 50 miles of pedestrian/equestrian trails. III. ISSUES: The firm selected to conduct the organizational study will first begin working with the poway City Council to develop the study's specific goals, objectives, and scope of work. Since the City Council would like the pUblic to have an opportunity to ATTACHMENT A ITEM 11 6 of 42 MAR 1 7 1992 - participate in the study, the Poway Chamber of Commerce, Civic - Associations, and Budget Review Advisory Committee will be invited to provide input throughout the Organizational Study/. Management Audit process. Once a scope of work has been determined for the organizational study/management audit, the total amount for the contract will be negotiated prior to the commencement of the work plan. Seven specific issues to be addressed during the study include: 1) looking at areas within the city where direct service is provided by the City and determining how to enhance the quality of providing those services; 2) assessing how the City can improve its communication with the public; 3) exploring ways in which the City can independently determine how government can be more responsive (ie., citizen surveys); 4) developing "quality" standards to be included in the City's General Plan; 5) reviewing the city's permit process to determine whether there are ways to improve upon the process and to ensure t~at the City is doing everything possible to accelerate the permit application process; 6) considering areas where the city might utilize private sector principles or begin contracting out more services or pursue privatization; and 7) evaluating the role of the City's various citizen advisory committees and assessing whether committees should continue to act in an advisory capacity or become responsible for operational decisions. _. IV. STATEMENT OF OUALIFICATIONS: Firms interested' in sUbmitting a statement of qualifications to the City of poway should provide a detailed proposal which includes the following information: A. A description of the firm B. References and work samples where similar work has been performed by the firm c. Description of proposed approach to conducting the organizational study/management audit and outline of proposed workplan D. Resumes, references, and descriptions of similar projects for each employee that would be assigned to work on the study E. Description of responsibilities assigned to each employee that would be involved in conducting the study F. Hourly rates and availability of each employee involved in the analysis ..- -2- MAR 1 7 1992 i~-"'f" 11 7 of 42 d~.::~ - - - -- -----.------.---.----- G. Estimated time required to complete the analysis H. Cost range for conducting the analysis V. INTERVIEW PROCESS: All responses received by the City of poway will be carefully evaluated by a subcommittee comprised of Council members, Budget Review Advisory Committee members, and city staff. Based upon proposal qualifications, the most responsive firms will be selected for an interview. Following the interview process, the City Council will receive recommendations from the subcommittee based upon evaluation of the most qualified proposals. The City Council will then make a selection and enter into negotiations with the selected firm. VI. SUBMITTAL INFORMATION: All responses to the Request for Qualifications must be received by the City no later than . Please submit all responses to the following address: city Manager's Office City of poway P.O. Box 789 Poway, CA 92074 For questions or additional information, contact Peggy stewart, Director of Administrative Services, at (619) 679-4311- -3- toIAR 1 7 1992 \..,..,.,' 11 .iL,..'';J 8 of 42 .~.} \~ ~ , - PROPOSAL TO PREPARE AND IMPLEMENT j'. - MUNICIPAL BUSINESS SYSTEM FOR THE CITY OF RIVERSIDE _. 1ft Management 91 Services Institute 9 of 42 ATTACHt.1ENT B MAR 1 7 1992 IT~M 11 , .. . .'A ..... .~. - - - '" . '" Copyright 1989 by Management Services Institute, Inc. All righ Is reserved. 'No part of this work covered by the copyright hereon may be reDroduced or copied in any form or by any means -- graphic, electronic or mechanical, including photocoPyinl:, recording, taping or information storage and retrieval systems -- wilhout written permission of Management Services Institute, Inc., 14790 Firestone Boulevard, La Mirada, California 90638 (714) 670-0800 -.. 10 of 42 MAt:; 1 7 1932 r"-~ ~ . 1 . .~.,;" .!. .\, · ~-W Douglas Ayres. President ~ ~ I Rick Kermer, ~PA, VieePresident III Management ServiCeS Institute Lee Weber, Vice President INCOIiII'OIlAHD _James D. Williams, Viee President 14790 FIRESTONE BLVD., SUITE 200, LA MlRADA, CA 90638 714/670.0800 January 20, 1989 Honorable Mayor and City council VIA: Mrs. Barbara Steckel, Finance Director City of Riverside 3900 Main street Riverside, California 92522 Honorable Mayor and city Council: This Proposal is presented to the Mayor and City Council as authorized by the city Council Finance Committee at its January 9, 1989 meeting. The Proposal is based on numerous discussions held between Finance Director Barbara Steckel, Assistant city Manager Larry Paulsen, Budget Officer Bob Tremont and me over the past several months. The MSI-copyrighted Municipal Business System is based on the legal requirements and inherent business principles of California Constitution Article XIIIB, the so-called "Gann Proposition 4 Initiative". At completion of our work the Mayor and City Council will have data enabling you to make policy decisions based on full- costing data not previously made available by the City's standard governmental accounting and supplemental standard cost distribution system. In our process we are able to answer two big nagging questions constantly asked in various forms by those who make payments to local government: 1. What am I getting for my money? 2. Who is paying for what services? Our work has been accepted on a sole source basis by every City for which we have worked because of our copyrighted forms, system, Report, and IBM/PC-compatible software. We license all to the city at completion of the work. Further, our work products are additionally unique in that they I have numerous baCk-up volumes and the computer program, all of which document an audit trail. All our numbers can be reproduced, explained how they were originally derived, and thus verified and updated or revised by city staff. A very minor portion -- around I eight percent -- of our overall work is what has commonly been referred to as "a cost allocation plan". MSI' s work generally _ follows the principles and requirements of Federal OMB Circular A- 87 (FMC 74-4). Such a federal CAPlan, if needed, can be produced from our copyrighted CAP templates for little additional work, I either by us or by City staff, once our overall work is completed. . I 11 of 42 MAR 1 7 1992 ITi:1.:~ 11 L- "<' · m HI city of Riverside Proposal -- Page 2 An extensive list of city staff and elected official names and telephone numbers is provided in the Proposal to verify all our contentions. Please call them -- any and all of them. I personally do all the presentations, which after delivery of the Report or Reports typically consist of a staff meeting and four or more City Council study sessions, followed by a presentation at the statutorily-required public hearing. Then there are several department/division head implementation meetings. We also provide a series of adoption and implementation documents consisting of an ordinance, a public hearing notice, a resolution, and an executive order form. This process has been accepted and approved by several score City Attorneys. In summary, Management Services Institute, Inc. performs techni- cally proficient work which is politically sensitively performed and presented, and adopted, and implemented. Our Reports have never resulted in an increase in All Funds reve- nues of less than 10%, without political problems. And all our work is based on the letter and spirit of Article XIIIB of the california Constitution, otherwise known as the Gann Prop 4 Initiative. We look forward to the possibility of working with the Mayor, city Council, and staff of the City of Riverside to assure the financial viability of all City services and the City financing base by seeking ways to serve most economically and to finance most fairly the City services enjoyed by the residents, business persons, and organizations in the City. Should you have any questions I will be pleased to respond to them personally or in writing. sincerely, CV.~ DOUGLAS W. AYRES President Proposal Attached 12 of 42 MAR 1 7 1992 m::k~ 11 ~t) . . - .- , _ PROPOSAL Management Services Institute, Incorporated (MSI) is pleased to submit this Proposal to customize and implement our copyrighted Municipal Business System for the City of Riverside. General Backaround of prooosal MSI herewith agrees to apply our copyrighted computerized Municipal Business System to making a comprehensive analysis of all fee and, if selected, tax-financed services of the city. Our MBSystem has now been adopted by 70 client cities, and we are working on cities 71 through 77. As we point out later herein in detail, the strength of our MBSystem system is in the ability of the city Council to utilize the findings to make informed policy decisions, and in staff being able to know and to control costs. You will note from perusal of the Proposal that our approach to governmental financial management is unique both as to technique and application. Our System will permit the City to operate itself in a more 'businesslike manner and, in the process, be free of fluctuating state and federal revenues and have an organized way to balance revenues with service demands. More important, our System assures a considerable measure of fairness and equity for taxpayers in the payment for City services by those who most use those services, thus in the process, it implements not only the letter but also the spirit of Proposition 4 of 1979 (the Gann "Spirit of 13" Initiative), now Article XIIIB of the California Constitution. And our Plan provides both financial and political predictability to City finances and services. All Components contained in the Proposal encompass the City's entire operation and all of its agencies. At the end of our work we provide the City with a perpetual license to our System, as outlined in the Proposal. Authorization by the appropriate authorized City official signified by a letter accepting this Proposal is all we need for our purposes, or we will execute a formal contract should the City so desire. 1 13 of 42 MAR 1 7 1992 lTE:l~ 11 " . city of Riverside MBS proposal Services To Be Provided Attachment A, following, graphically presents those services which MSI offers as part of its Municipal Business System Program. You have expressed a desire for us to prepare for the City those marked as Components I, II and III. The others could be available to the City after completion of the outlined Components. Each is now explained in some detail. component I -- Revenue/cost Service Center Analysis As the core of the MSI work, upon which all other Components are based, Management Services Institute proposes to develop a business-type costing system for the City such that the full costs of all fee and tax financed or fee-financable services are known and quantified. Service centers will be identified for all City- provided services, specific revenues will be matched to those specific service centers, and revenue and full costing information will be provided to City management, the City Council, and designated service center managers. Costs will be defined pursuant to the terms and intent of the authors of Proposition 4 (now California Constitution Article XIIIB) . All such defined costs will be identified and reported so that cost control can be improved significantly. Another result will be specific identification of beneficiaries of services not received or desired by the entire public so that service fees and charges can be set equitably, tax subsidies known and limited or eliminated, if desired, taxes diverted to those who are more needy, and California Constitutional provisions and rate-limiting legislation complied with. This process results in the MSI-copyrighted and computerized Municipal Business System. Any process which does not utilize the elements, definitions and process of Prop 4 is suspect in both acceptance and legality. What is a MuniciDal Business Svstem CMBS)? The MSI-copyrighted MBSystem is an analysis of revenues and costs for specific functions or "service centers." The system applies private business multi-line corporate costing and management principles and practices to specific local government services. Revenues and full business costs for each such center are identified and compared. 2 14 of 42 MAR 1 7 1992 fr~;~~ . - .i 1 '. , - - 1ft . Attachment A HI MANAGEMENT SERVICES INSTITUTE FinancIal Systems Components Capital Financing Advisor Strategies C("'Mp()NENT II I Accounting Computerization System Revision Assistanc. Assistance T f COMPONENT II FMC-74-4 General (A-87) Financing Cost Allocation Plan Commentary -- Forms and COMPONENT I Budget Forms Procedure REVENUE/COST CENTER and Revisions ANALYSIS System Long Range Organizational Financial Analysis Plan ! 1 Proposition 4 Development Limit Impact Fee Studies Computation (AB 1600) I I Water, Sewer, Electrical, Refus. Rate Analysis I .- I I MAR 1 7 1992 r"'-] " 11 15 of 42 .~ ~.t I 3 . city of Riverside MBS proposal The basic principle involved is the identification and recognition of full costs following the Constitutiona;lly intended business definitions, not just those costs which are budgeted. Costs include, among others, salaries, full fringe benefits, central service expenses, supplies, building occupancy and equipment charges, departmental and general overhead, fixed asset charges, and miscellaneous costs. Fee revenues and such costs when identified are then compared to determine if fees collected cover the cost of providing the service, or if the general taxpayer is unwittingly and probably unwillingly subsidizing the service with their City tax monies, by making up the difference between fees collected and full costs incurred. Results of Application of MBS. Attachment B, following, provides an example of one of several summaries ~ncluded in a Report completed for another fairly small city four years ago. In this example some 73 specific fee-financed services were analyzed and this summary shows the cost for that particular city to deliver each unit of service and the average revenue received for each transaction. In broader terms, the total cost to that city to deliver these 73 services neared $15 million, for which less than $9 million in offsetting revenue was collected. The MBSystem also has been applied to cities both smaller and nearly as large as the City of Riverside, and has proved to be quite beneficial. See the list of references later in this Proposal for specific cities. The MBSystem identifies all cost elements so that City management personnel can control all costs, and be able to provide City Council with meaningful policy alternatives due to the availability of specific cost data relating to the provision of a specific service. As important, such comprehensive and detailed data permits the City Council to make meaningful policy decisions concerning the degree of tax subsidy, if any, to be provided for each service and to know where taxes are going so that they might defend such to constituents as appropriate and necessary. The potential exists for the City given in the example to significantly enhance the quality of its services by raising nearly $6 million in annual revenues outside any tax, revenue, or spending limitations, should its City Council so desire. The MSI-copyrighted business-oriented full costing approach produces similar data for each city analyzed, which data is customized to the size and variety of services provided by each. 4 MAR 1 7 1992 IT~kJ 11 16 of 42 ,-uy VI .Jcl_gll:' "~""~~'~"'-""" L.> ( S""".ry of Reveroues, Costs and ubsidies by Service lkllt . _ Fiscal Year 198'1-1965 8udg~t_ . SERVICE LNIT SlJ8SIDY IISI REVEIU COST IPROFITl . SERVICE CENTER LNIT NJ. PERLNIT PERLNIT PER LNIT - - - 5-1 BUlldirog Plaro Checklrog Plaro 1,130 '53.10 m.lo 118.00 -- 5-2 Corostructloro Inspectioro Porai t ~,570 193.98 149.H 11-".83) 5-3 ~blle flo.. Pk.Annual Inspection Porait no 12.86 15.87 13. 01 5-~ Bldg. Relocation Review/Routing Poralt 8 1250.00 1210.13 1139.88) 5-5 Revle. of Requested Annexation Appl icat ion ~ 1125.00 sz, 372. 25 12, 2~ 7.25 H Negative Declaration Revi.. Application 166 1150.60 12~.50 1112&.10) 5-7 Envlro....ntal Revi.. Applicatioro 3 1250.00 15, 809. 00 15,559. 00 5-8 Preli.lnary ProJect Revi.. Application 150 SO. 00 1392.59 1392. 59 5-9 Design Revi.. Application 175 S2OO. 00 1355. 90 1155.90 5-10 Land Divisioro RIYi.. Application 12 11~1.67 '346.08 S204. 42 5-11 5ubchvisior, /lap Revi.. /lap 52 '788.46 1303. 19 11485.271 5-12 /lap and I.prov_nt Plan Checking Plan 60 11.166.67 '1,611.35 ~.68 5-13 Public l.prv.t.Enrineerl~ Serv. Parcel ~5 152.67 1605.71 1453. ~ 5-1~ Public I.prove_ Inspec ion Peralt 90 1863.33 '1~.17 '507.83 5-15 Zone Variance I Use Revillf Application 12 1150.00 .17 '56.17 5-16 Zone Change Review Application 27 1118.52 1227.70 1109.19 5-17 Condltior..1 Use Revi.. Application 50 12~. 00 1420. 08 1180.08 5-18 5peclfic Plan Revi.. Application ~ 1750. 00 '519.75 11230.251 5-19 SpecifiC Plan Preparation Application See Text Ifl Ifl Ifl 5-20 Spec I flc Plan Aaend..nt Revi.. Application 2 1500. 00 1526.50 126. 50 5-21 Seneral Plan Aaerdllent Revillf Application ~ S5OO.00 s;M.25 IS 159. 75) 5-2Z Zoning Ordinance Revi.. Application 17 SO. 00 14~. 35 14~. 35 5-23 Coapllanee Certification Application 38 110.00 169.18 '59.18 5-2~ Over load/Hou5ellOving Rev./Appv'1 Application 125 18.00 '13.98 .5. 98 5-25 toe llc:cupation Revl.. Application 60 125.00 '99.98 '7~.98 5-26 5tlftt Excavation Inspection Application 100 1150.00 1151.15 11.15 5-27 Subdlv.5tlftt 5ign Installation 5ign Sets 200 S50.00 183.1~ 1J3.1~ 5-28 Subdivision Landscape Inspection New Building 955 13.75 113. 59 '9.84 5-29 Vl!Ilicle Code Enfortelll!nt Citation 10,489 112.97 $73. 35 160. 38 5-30 Citt Code Enfore...nt Citation 923 113.00 190.51 .n.51 5-31 Par ing Er,forcewnt Ci tation 1,321 118.17 '10.16 118. Oil 5-32 Downtown Off-5tlftt Parking Space 327 SO. 00 125.42 125.42 5-33 Business Regulation Perai t 1~3 1I0.~9 .16. 69 16.20 5-~ Garage/Yard Sale Regulation Pennt 465 14.00 14.06 SO. 06 5-35 Ani..! Regulation LicellSl! 2,230 '15.25 139. 2~ 123.99 5-36 Bicycle Reristration License IOS 12.86 110. <J.\ 18.09 5-37 Fingerprin ing Service Card 2~7 15.00 13.48 (11.52) 5-38 Records Check I Letter Issuance t.tter 25 SO. 00 '3.4-\ 13.~~ 5-~ Police Cri.. Report Sale Report m 13.50 14.35 SO. 84 5-~0 Co""ealed Weapon Plrait Investig. Application 10 13.00 IH.80 111.80 5-~1 Pc.lice False Alara Response False AI.", 2,387 SO.~9 121.75 121.2& 5-~2 Rbarodoned VeIlicll Rl!lICIval Vthicle ~50 SO. 00 '1~.95 'H.95 5-13 IlPfective VeIlicle Inspection Vthlcle I,~ SO. 00 14.71 14.71 5-4-\ Rental of Coaaunlty Center 5pace Hour 1,600 112.00 116.21 14.21 5-45 Retoreation EquipllE'nt Rental Rental 150 16.67 13.50 113. I7l 5-46 Rental of Coaaunlty Garden Plots Plot 35 110.00 1879.03 1869.03 5-~7 s..i.ln~ Pool Orvration I /laint. Ad.ission 35, 000 SO.91 11.42 SO. 51 5-~8 Racquet lllWaI yball Progr.. Hour 21,000 '1.10 '5. 7~ 14.~ 5-49 Ball field Reservation Service Hour 450 '1.00 '7.91 16.91 5-50 Coaounity Ballflold FacilitIes Hour 2550 SO. 00 '16.38 '16.38 5-51 Serolor Citizen Progr..s Part IClpant 750 12.00 1160.80 '158.80 5-52 Senior Citizon Transportation Rider 8,000 SO. 50 '3.9ll '3.48 5-53 Recreation Classes Part i ci pant 7,900 '5.89 '12.65 16.76 5-5't SpeCial Aecroation Events Event 12 S833. 33 13, 142.08 sz, 308. 1S 5-55 Youth Sports Programs PartiCIpant 10,000 'I.~ '3.84 '2.4-\ 5-56 Adult Sports Progra.os Participant 10,000 '3.00 16.66 '3.66 5-57 "ISCfllar~us Sports Progr..s PartiCipant 1,500 '5.33 '19.89 '14.56 5-58 TI r,y Tot PrograllS PartICIpant 1,500 '18.67 121.53 12.86 5-59 Coreesslons peratlon ~ Ifl Ifl Ifl Ifl 5-60 Sewage Collect Ion I Treat..nt Connection 12, 500 166. 88 '130.99 16~. II 5-61 Sewer 5toppage lnvestiration Request 300 SO. 00 .95. 2~ '95.2~ 5-62 IlPhnq.Sewer Olsconnec ./Restor. 01 sconnection 575 121.7~ '72.16 '50.42 5-63 UtilIty Street Use "lies 205.5 12,068.13 11,634.87 11433.2(,1 5-6~ Refuse Street Use Cust...~ 8,695 SO. 00 '13.80 113.80 S-65 !lalnter..r"", of Stlftt Landscaping Parcels 23,000 10.65 '5.75 '5.10 S-6Ci /lalnt"..""e of 5treet Troes Parcels 23, 000 SO. 00 '9. 48 '9.48 5-67 SweepIng of Cltl Streets Parce ls 23, 000 SO. 00 16. II 16.11 _. 5-68 SoeePlng of Sta I HIghways "IllS Sooept 800 SO. 00 '11.20 '11.20 5-69 ",lInte""nce of Alleys "lie 3.9 SO.OO 14,761.~ 14,761.~ S-70 llalntenanee of 5tora Drains Parce ls 23,000 SO. 00 14. 12 14. 12 5-71 T..bl.....d RellOval RNoval 200 SO. 00 148. 18 148.18 5-72 1Ia!r,t",.r",. of Stlftt lighting Parcels 23,000 SO. 00 'I~.W '14.~ 5-73 lnst.llatlor, of Street Banre~ Installations I '590.00 10.00 1'590.001 5 MAR 1 7 1992 1""-" " 11 iI~."'", 17 of 42 , . City of Riverside MBS proposal Constitutional Basis for the Svstem. In 1978, with the passage of Proposition 13, California taxpayers issued a mandate for lower taxes. Seventeen months later California citizens passed the "Gann Initiative", Proposition 4 of the special November 1979 election, which further addressed taxes by placing a computed "lid" on the appropriation of taxes. The System, which was already in place in several cities in which MSI President, Douglas W. Ayres was involved, was modified in response and has now been applied to more than 70 Western cities. . The Management Services Institute cost control methodology has been developed pursuant to the requirements of that Proposition 4, relative to determining full "costs reasonably borne" incurred in providing governmental fee-financed services. In other words, there is now in California a Constitutional mandate for local government to be conscious of what it costs to provide specific services, and to know whether those services are being supported by taxes, fees or a combination of both. The value of the MSI Component I Revenue/Cost Center Analysis is that a business-type methodology is applied consistently to all City services which permits comparison among City services and also to similar private sector services. MSI uses the definitions of "Cost reasonably borne" set out by the Authors of Proposition 4 in their Constitutional intent documents. Those authors represented the California Taxpayers Association, the California Chamber of Commerce, the California Association of Realtors, the National Tax Limitation Committee, and the "Spirit of 13, Inc." movement of Paul Gann. Their definitions are those used by business. Thus the requirement to apply business principles and practices to government. Elements of Comoonent I. In this key central Component we perform the following: 1- Conduct a half day seminar for City executives, management, supervisory and finance staff regarding the business philosophy, legal base, and operational aspects of the MSI costing system, providing a detailed explanation of the steps to be followed and the role of City staff. 2. Research and document each current City fee and charge, for each City fund. 3. Compile a seven year revenue history for each such source. 6 18 of 42 MAR 1 7 1992 1'''-;1 " . . . i;. j,;~ 2. 1 , . , - - city of Riverside MBS Proposal 4. Develop a tentative list of City-financed service centers and circulate the list to City staff to ascertain that revenue, cost and unit work statistics can be secured from them if not centrally available. 5. Revise the service center list based on City staff input. 6. Chart each current revenue source for the seven years, both for budgeted and actual amounts. 7. Analyze the city's complete revenue/fee structure and historical trends. This work is compiled using the MSI- copyrighted "Revenue Data Worksheet for Fees and Charges" attached in Appendix A. 8. By utilizing existing city records if adequate and complete, and/or by supervising an internal City process carried out by City staff, develop appropriate capital asset expense (depreciation) schedules for distribution to the several service centers. The MSI-copyrighted fixed asset "Inventory" and "Fixed Asset Expense Calculation" worksheets and computer templates are utilized for this process. A copy of both are included - in Appendix A. For each user service center we prepare our MSI-copyrighted "Cost Data Worksheet." We utilize our "Personnel Cost Allocation Sheet" and our "Program Cost Allocation Sheet", copies of which are attached in Appendix A herein. In this process we perform the following steps to complete Component I: 9. Determine the City organizational unit performing each service and prepare a "Cost Data Worksheet" and computer templates for each defined service center. 10. Analyze the relationship between the service, any fee charged, and the user/service beneficiary. 11. Working with City personnel, determine the unit of measure for the service provided through the service center, and the number of units provided the last fiscal year and projected for the current fiscal year. 12. Determine direct costs of providing the service. 13. Analyze the city's accounting records and budget, and determine the indirect costs of providing services. Develop appropriate standard formulas for distributing 7 19 of 42 MAR 1 7 1992 i . :':...1 11 ----- ---------- . City of Riverside MBS Proposal each major indirect cost to the several service centers, which formula may be consistently applied year-to-year. 14. Redistribute appropriate indirect costs to the service centers by use of the Cost Data Worksheet and computer templates. 15. Develop a City general overhead rate. 16. Develop appropriate City departmental overhead rates which can be used for all city internal, interfund, utili ty and enterprise, special assessment, and external billing, and charging or costing processes. 17. Apply general and departmental overhead rates to the service centers. 18. Alert city staff as to revenue and budget variables. Such is necessary due to the establishment by Constitution Article XIIIB of a "base year" for gpvernment appropriations. 19. Compute costs, revenues, excess revenues or excess costs, both in gross terms and by number of service units established by step 11, for each regulatory license, user fee or service charge source of revenue. Certain legally permissible groupings, or separations, may be made or may be necessary to be made in this process. Result. The MSI-copyrighted process, outlined above as Component I, will determine fair, equitable, legally proper and consistent relationships between City operations and funds. From the service center data comes the ability to know, control, and manage costs matched for the most part to revenues received for the specific services provided by each service center. The result is a businesslike approach to costs and the. ability of City management personnel to become cost-effective systematically. As important, the City council also is aware of any discrepancies between fees paid and services rendered for any of the service centers, thereby being able to both make policy as to the use of tax monies, and to judge cost-effectiveness. California Constitution Article XIIIB went into effect July 1, 1980. It effectively requires delineation and documentation of the true and full cost relationships between City functions and revenues. Government Code Sections 54990 to 54993 also limit 8 20 of 42 MAR 1 7 1992 r".-' , 11 .:.......,,1, , ~ - - city of Riverside MBS proposal certain fees and charges to "costs reasonably borne". Our work will provide the basis for accomplishing these ends. City staff Involvement, Assistance, and Training City staff have requested that this Proposal contain provisions enabling the MSI computer program, work papers, and cost finding techniques be transferred to City staff as the MSI work progresses. Further, MSI has found in its larger client cities that the sheer size of the organization and the numbers of employees involved require considerable liaison between City management and the MSI staff for data gathering in order to maintain the work schedule and integrity of data. Citv staff Assianed to MSI. To meet City requirements and to assure adequate city staff involvement and training in all the MSI costing techniques and technical accounting distributions, the pricing and scheduling of this Proposal -- as contained on the following pages -- is predicated on the City assigning one and one- half full time regular City employees to the MSI project staff. Those two. persons would participate in the MSI work and provide entre to and liaison with City management personnel, be trained on an on-going basis in the MSI techniques, copyrighted computer programs, and accounting details, and fully participate in the work alongside MSI staff. The quick start in internal organizational knowledge which these one and one-half persons would provide also literally will enable MSI to complete the work in the stipulated ten calendar months. Without them the time consumption would be several months longer, and several score dollars more. MSI Specifications for Citv Staffina. The full time person must be an experienced, recognized, mid-level or above City staff person who has acceptance in and recognition by all City management personnel. Additionally, he/she must be trained and experienced in IBM/PC microcomputer operation and in Lotus 1-2-3 software, analytical techniques, and accounting analysis. MSI reserves the right to reject persons submitted until a suitable City employee is assigned. The half-time person can be of lower level, but must possess the same attributes as listed above. Involvement of Other Citv staff Minor amounts of time of other city supervisory staff will be involved, but spaced such that no significant time demands are made which will be onerous. Information analysis and provision of data which MSI cannot secure without close cooperation from City sources 9 21 of 42 liAR 1 ~ '9"2 ....:-'," , 1 w _. ~ I.J I, _lH.4 _0 .. city of Riverside MBS Proposal will primarily account for this City staff involvement. While MSI will accept full responsibility for the accuracy and completeness of its work, data must be provided us from city files and by City personnel such that we can assure ourselves that our work is both complete and accurate. Following is a somewhat detailed explanation of City staff participation in the MSI cost/analysis steps in which any degree of city staff would be involved. Citv staff Time Reauirements. MSI accepts full responsibility for the gathering, compilation, and development of all data required for completion of the assignment. However, we must secure that data from City staff. Additionally city staff should relate to the work which is being accomplished, both in understanding and in end result. To so accomplish some City staff time in assistance to MSI is required. That time is outlined herein, following the steps listed on the prior pages. Steo 1 requires all supervisory staff attendance for one-half day. Two or three identical half-day sessions can be scheduled if desired. Steo 2 necessitates our being taught the filing system in the City Clerk's Office such that we can locate documentation for the legal base for all revenues for completion of the revenue manual which we prepare. Steo 4 can only be done through an all-day meeting with all supervisory personnel so that MSI-prepared preliminary service center list can be heavily modified to reflect the full needs and services of the City. Several group meetings will be required. As the work progresses the list is further modified through interview with supervisors. Note: This is the step where special services similar in scope and nature to those for which a fee is charged, but for which no current fee is collected, are discovered and added to the service center list for costing. MSI experience has shown that there usually is around a one-fourth increase in the number of service centers for which a fee should be instituted, once costs are known and an appropriate full cost recovery fee schedule can be set. Steo 8 usually requires the dedication of one person week for each department to the inventory and evaluation of fixed assets. Asset heavy departments, such as Public Works, and utilities, and Parks and Recreation operations usually require two or so person weeks. This process is organized and supervised by MSI, but staffed by City personnel. We have acceptable techniques in which we instruct 10 22 of 42 MAR 1 7 '992 \'~:- -,., '1 I . t ~_J.... ..;. " .. - - city of Riverside MBS proposal City personnel that assure a minimum of time and a maximum of accuracy. . step 11 involves data which is in the possession only of operating departments and divisions. One day per operation usually suffices. step 12 will be spread over a four month period, during which each supervisory person will spend cumulatively perhaps a half day with MSI staff. The purpose is to allocate 100% of the time of 100% of all city employees to service centers, generally with three verifying interviews being conducted for each position. step 13 will involve perhaps a half day orientation of MSI staff by City finance personnel such that we understand the City's accounting and recordkeeping systems. steps in Tax option are encompassed within the above, if that Option is accepted. Presentation usually requires attendance and participation by department heads, as does adoption and implementation. A series of three half-day meetings usually suffices for implementation up to and including first collection of enhanced revenues. - MSI Staff Work. The MSI staff, listed later herein, performs all staff work, usually being in residence in Riverside several days a week for approximately nine months. A highly personalized approach is taken to staffing the project by MSI staff, such that the ambience of the City, its staff culture, and a high level of sensitivity to the City's political climate are secured and utilized. No subcontractors are used. MSI employees perform ALL work personally. Uniaue Approach and Product. Management Services Institute has been quite successful and believes it has its costing process perfected, both analytically as well as from policy making and public acceptance standpoints. Our documentation is extensive and all non-computer work products and work papers are turned over to the City at the end of the process, as are computer printouts. All computer programs and the computerized data base upon which the Report is based also are turned over to the city staff, with licenses and instruction, as set out later herein. The software will run on any IBM-compatible PC, or a Hewlett- Packard Vectra. 11 MAn 1 7 19Q2 .....".," 1 1 23 of 42 ,. '\ I ~ · · :...... .). .. City of Riverside MBS proposal Comoonent IA -- Ootional Tax-Suooorted Service Center Analvsis. MSI has found that an increasing number of city Councils and their constituents want to know where ALL City money comes from and goes, not just those derived from fees and charges. The MSI Revenue/Cost Analysis process is conducive to the determination of and full distribution of the costs of ALL services, including those which of practical necessity must be financed by taxes. Thus MSI offers this optional Component. The advantage to selection of this Component IA is to account for all the city's revenues and costs, and which segment of society pays for, and which benefits from each service, whether fee or tax- financed. In this Component IA we accomplish the following steps: 1. Include all tax revenue sources in the seven year revenue history prepared as a part of Component I. 2. Research and prepare an MSI-copyrighted Revenue sheet for each tax and non-fee revenue source. 3. Work with City staff to develop a "program" structure for tax-financed services, such that these programs can be costed in a manner similar to that used for fee- financed services. 4. Prepare an MSI-copyrighted "Cost" sheet for each such tax-financed service center. 5. Distribute all city service costs as between fee- financed, tax-financed, and mixed service centers, in the process accounting for all City costs and revenues. 6. Prepare a summary of tax-financed service centers. 7. Write a separate Chapter in the text describing tax revenues, costs, and the comparison between the two, and the impact on total City financial status. 8. Illustrate both by text and in tabular form the impact of costs on taxes and total City finances if full costs are not recovered or controlled within the fee-financed service centers. 9. Include all such data in the microcomputerized data base and program. 12 24 of 42 MAR 1 7 1992 ~",-.".~ ''I . ~ j;~A.. ..:. 1. " . - - . City of Riverside MBS Proposal -- ComDonent II -- General Financina Commentarv. A Report is provided at the completion of the Component I and IA work, which is based on our by now intimate knowledge of the City's revenue, accounting, reporting and management control systems, derived from the work in Components I and IA. In this Component we will do the following: 1. Prepare a Report appraising the strengths, weaknesses, and potential alleviatory measurers for financing of the City's services. The Report provides extensive financial, accounting, legal, and practical explanation of the work, the product, the process used in arriving at it, and the results. 2. Recommend specific steps that could be taken to enhance financial information to management and city Council, increase revenues, and decrease or better control costs. 3. Identify and suggest revenue sources which may be unused or better used, but which are available. 4. Present the Report to City staff and the Mayor and city Council. 5. Explain the Report, its methodology, its contents, and its suggestions and recommendations to the City council at up to six City Council or Council Committee study sessions or meetings. 6. Prepare and present a Model Fee Ordinance, public hearing notice, and Model Fee Resolution to the City Council at a City Council meeting, and explain each at the statutorily-required public hearing. 7. Make appropriate public appearances and speeches up to a total of six, at the request of the city. 8. Meet with City staff and assist and advise in implementation techniques and in developing detailed rate structures, where needed, up to a total of four meetings. 9. Attend additional staff, City council, or explanatory meetings and make added presentations if requested, at the then-current MSI time and expense rates. Backaround of Services to be Provided as ComDonent II. Most of the work done in Component I and optional Component IA, and reported on in Component II, is now necessary in California to comply fully with Proposition 4 (Article XIIIB) . But more 13 MAR 1 7 1992 , , . 25 of 42 . . 6-01.... .. 1 n -- .' . City of Riverside MBS proposal importantly, these steps and procedures are necessary to develop and maintain a realistic municipal financial system following business concepts and procedures. And to assure a reasonable degree of fairness and equity in the tax system. The MSI System would orient the city in those businesslike directions quite strongly. Such are' the underlying dictates of Proposition 4, and a result of the revenue-cost squeeze forced by Proposition 13 and the inflation rate of the last decade. The purview of the MSI work, and of our Revenue/Cost study and Component II Report would be the revenues, expenses, and costing systems for all fee-financed or financable City services as well as tax-financed services if that option is selected. ,Our goal is to assure the City's present and future financial viability, its capability to deliver services and to utilize its financial resources both wisely and in a responsible, fair and economical way. In other words, to get the most for the revenue dollar and to best utilize monies now and in the future, wherever possible, by having the best possible financial and management information. In addition, we will suggest in this Report revenue sources and alternative ways with which City services and capital improvement projects could be financed. Such could be the next step in the ci ty I s financial planning process with which to adj ust to the changed revenue mix caused by the Federal and State governments withdrawing financial sources from cities. Alternatives are available to the City, provided they are planned for and all costs are considered. Component III -- Computerization Assistance Due to the volume and complexity of data developed and utilized in the Municipal Business System analysis, MSI utilizes a microcomputer from the initiation of work, placing all data into the micro. At the end of Components I, IA, and II, we would turn over all the City'S data, the software programs, and a perpetual license for their use. Additionally three days of instruction would be provided to selected City staff. All periodic program updates will be provided at no additional cost. The City also would become a member of the MSI/MBS User Group. This Component III will enable City staff to maintain a constantly updated version of our Components I and IA work products, thereby eliminating the need for an annual maintenance contract, or an elaborate and expensive cost accounting system, unless otherwise desired for day-to-day management purposes. 14 26 of 42 MAR 1 7 1992 {; ~:.; 11 . . - - city of Riverside MBS Proposal - The software also can run on a Hewlett-Packard Vectra. The software consists of MSI-copyrighted templates written over Lotus 1-2-3. Timinq of Services The following Schedule sheets on the next pages present the timetable for the services proposed. The work of Component I would be initiated around February 15, 1989, and continue steadily through submission of the Report for Component II in mid-December. Since Components I and IA are key and basic, any decision to delay project initiation past March 1 would cause our schedule to slip commensurately and may require a re-examination of the length of the time frame to ensure that no additional MSI project obligations have been incurred which might affect project timing and cost. The Component III transfer of data and software would be conducted in January and February of 1990. Fee for Services - The fee for our services for the quoted Components is the following: Comoonent Fee I. Revenue/Cost (MBS) --Fees. . . . . . . . . . . . . . . . . . . $ 2 5 0 , 000 IA. Tax Supported Service Analysis (Optional)...$25,000 II. Financial Commentary Report (included in Component I) III. Microcomputer Program License (included in Component I) The above fees cover all costs except any required business license, and report reproduction, which we will have printed in the number you determine with our actual costs to be billed to the City, which costs would be added to the contract price. In this way the city will control the volume and cost of Report reproduction, and distribution. - 15 27 of 42 MAR 1 7 1992 '''''''''~..".., 11 I...... . -----..---..- -------. --.......--... ..-..-------- ---........--- _..__._..~ fEB 1989 lIAR 1989 APR 1989 IlAY 1989 JUNE 1989 JULY 191' ------..---- .--------- -.........--...... ...........-........ --..-..----- ............--- 7 " 21 28 5 12 19 26 2 91623 7 " 21 28 4 II 1825 I 8 22 2 ...............-......................................................., SCHEDULE AND SUMMARY OF ACTIONS COMPONENT I o. REVENUE/COST CENTER ANALYSIS 1. Conduct Seminar . -. . . . . . . . . . . . . . . . . . . 0 . . 2. Research revenues . . ....++++++. . . . . . . . . . . . . . . . 0 3. Compile revenue hi.tory . . . . ..++... . 0 . . . . . . . . . . . . . . 4. Develop service center lilt 0 . 0 . . . . 11111 1111111. . . . . . . . . . 0 . . 5. Revise .ervice center ll.t . . . . . 0 0 . . . 111111111 .. . . . . . . . . . . 6. Chart revenue lources . . . . . . . . . . . . . ++ ++ .. .. . 0 . . . . . 7. Analyze fee structure . . . . . 0 0 . . . 0 . . 0 . .... +++ ++++++.. 0 . . . 8. Develop fixed Isset expenses . . . . 0 0 . . . 0 . 0 0 . . . . . . "11111111111.. 9. Determine units perfonmfng seryices . . 0 0 . . . . . . . . . . . . . . . 0 . . 0 .. 10. Analyze relltionships . . . . . . 0 . . . 0 . 0 . . 0 . 0 0 . . 0 0 . 1'. Detennfne units of aeryice 0 . . . . . . . . . . . . . . 0 . . . . . . 0 . 12. Detenm;ne direct costs . . . . 0 . . 0 . 0 . . . . . . . . . . . . . . 13. Determine Indirect co.t. . . . . . . . . . . 0 . . 0 . . . . . 0 . . . . 14. Redi.tribute Indirect coot. . . . . . . . . . . . . . . . . . . . . . . . . 15. Develop IMerll overhead rates . . . . . 0 . 0 . . . . . . . . . . . . . . . . 16. Develop deportmentll overhead rite. . . . . . . . . . . . . . . . . . . . . . . . . 17. Apply overhead rite. . . . . . . . . . . . . . . . . . . . . . . . . 18. Alert I. to vlrllbl.. . . . . . 0 . . . . 0 . . . . . . . 0 . . 0 . . 19. Compute revenues and cOlta . . . . . . 0 . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . 0 . . COMPONENT " .. GENERAL fiNANCING COMMENTARY . . . . . . 0 . 0 . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . 1. Prepere report . . . . . . . 0 . . . 0 . . . . . . . . . . 0 0 2. Mike lpecific recommendttlono . . . 0 . . 0 . 0 . . . . . 0 . . . . 0 . 0 3. Suggest revenue lources . 0 0 . . . 0 . . . . . . . . . . . . . . . 4. Present report . . . . . . 0 . 0 . . . . 0 . . . . . 0 . 0 . . 5. Draft ordinences/assist in presentltion . . . . . 0 0 . 0 . . . . . . . . . . 0 . . . . . . . 0 0 . . 0 . 0 . . 0 . . 0 . . 0 . 0 0 . . COMPONENT III -- COMPUTERIZATION . . . . . . 0 . . . 0 . . . 0 . . . 0 . . . . . . . . . . 0 . . . 0 . . . 0 . . . . 0 . . . . . 1. Turn over software 0 0 . . . . 0 0 0 . . . 0 0 . 0 . . . 0 . . 0 . 2. Turn over ~t. disks . . . . . . . 0 . . . . . . . 0 . . . . . . . . 3. Instruct City Itaff . . 0 . . . . . 0 . . . . 0 . 0 0 . . . . . . . it. Assist In update de.lgn . . . . . 0 . . . 0 0 . . . . . . 0 . . . . . . ----.---...-.-----------.-.-.---.-------------- +++++ . lepresents period durfng which work "ill be accompl hhed end not the tl... .necessary to do the work. ..... lepresents work completed in phases. _.. . .epresents presentation of leport ++ ++ .+ Represents work done in phlses 16 28 of 42 MAl:: 1 7 1992 rr='" :1 .~.... , __CITY OF RIVERSIDE - . ----------.. ---------- ---......-...... ..'-....-----. 'O..-------- ---......_--- ------....... AUG 1989 SEPT 1989 OCT 1989 IIOV 1989 DEC 1989 JAR ~99O FEI 1990 ...---......--.. -----..--..- ---_..........,- .....---.......-- --......-........ .....-----..... .---....-.... 7142128 4 II 1825 1 8 15 22 I 8 15 22 1 8 15 22 I 81522 I 8 15 2. ........*............................._..........................................., SCHEDULE AND SUMMARY OF ACTIONS COMPONENT I .. REVENUE/COST CERTER ANALYSIS 1. Conduct Seminor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Research revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Compile revenue history . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Develop .ervice center lflt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Revi.e ..rvice center ltlt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Chlrt revenue sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Analyze fee structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . I. Develop fixed uset expenses .... . . . . . . . . . . . . . . . . . . . . . . . . . . 9. DeteMlline ",its perfonni,. leryie" .. .. ... .. . . . . . . . . . . . . . . . . . . . . . . . . 10. Analyze relltionshipo . . . 1111111 II.. . . . . . . . . . . . . . . . . . . . . . 11. Detenoine units of service . 111111111. . . . . . . . . . . . . . . . . . . . . . . . 12. Dete~fne direct COlt. . . 1111111 ".. . . . . . . . . . . . . . . . . . . . . . . 13. Determine indirect costl . . . . --. . . . . . . . . . . . . . . . . . . . . 14. Redistribute indirect costs . . . . . ....... . . . . . . . . . . . . . . . . . . . 15. Develop generll overlleod rotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. Develop deport_tll overheod rotH . . . . . . . --. . . . . . . . . . . . . . . . . . . 17. Apply overheod rites . . . . . . . . . -. -. . . . . . . . . . . . . . . . ". Alert I' to variables . . . . . . . . . . . . -. . . . . . . . . . . . . . 19. C""",,te revenun.ond cosu . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COMPONENT II .. GENERAL FINANCING COMMENTART . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-- . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Preper. report . . . . . . . . . . -. . . . . . . . . . . . . . . . 2. Mike specific recommendotlons . . . . . . . . . . . . . -. . . . . . . . . . . . . 3. Sug;es t reveRJe sourCD . . . . . . . . . . . . . . . -. . . . . . . . . . . 4. Present report . . . . . . . . . . . . . . . . . . - . . . . . . . . . 5~ Dr.ft ordinances/lssilt in present.tio. . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COMPONENT III .. COMPUTERIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Turn over software . . . . . . . . . . . . . . . . . . . . -. . . . . . 2. Turn over d.ta diakl . . . . . . . . . . . . . . . . . . . . . . -. . . . 3. Instruct City stiff . . . . . . . . . . . . . . . . . . . . . . . . -- . . 4. Ass 1st In \4lCIIte design . . . . . . . . . . . . . . . . . . . . . . . . . . -. ..........-..........-......................-.. -+ . Represents period o...ring which work will be leeomplished Ind not the tl. necessary to do the work. .+ .+ . Represents work completed in phases. ... . Represents presentation of Report .+ .. .. Represents work done in phases 17 29 of 42 ,MAR 1 7 1992 r::;...~ 11 - '. . city of Riverside MBS Proposal We will submit twelve invoices of equal monthly amounts totalling the amount of the above Components which you select. The first invoice will be submitted ten days after notice to proceed. Each invoice would be due within 30 days of submission. Subsequent invoices would be submitted each month following. These prices and the Proposal are good until March 20, 1989. We have found it both desirable and more economical for the City if it provides us with some sort of reasonably suitable work space within City Hall, telephone, and minor incidental clerical, typing and reproduction service. These can be easily absorbed within existing resources and would be utilized only modestly, not to exceed a value of $4,000. While much of our work would be conducted actually at the City, significant parts of it involving microcomputer data input, "number crunching", and accounting analysis do not require our presence. During those times we would, of course, be available by telephone as and if necessary. Assurances We always give assurances that our Component II Report would provide specific recommendations upon which the Mayor and City Council could be reasonably expected to take positive action, which actions would generate sufficient added revenue and/or cost- effectiveness savings so as to offset our fee ten-fold within'not more than six months. Based on our rather considerable experience in more than 71 other cities, we have every reasonable expectation to provide a more equitable balance between cost and effectiveness of services provided to certain beneficiary groups and the fees and charges made for those services to those beneficiaries. Further, any such additional revenues which might be gained would be continuing and cumulative, whereas our fee is one-time only. We would invite you to inquire of our other client cities as to results and the level of acceptability achieved. They are listed below. Project staff Our professional qualifications are attached hereto as Appendix B. Douqlas W. Ayres personally will be in charge of the project and will directly oversee and participate in the work. Mr. Ayres will make all the presentations. 18 30 of 42 , "02 1.....-' ~ , 1 MAR 1 , 190 . ...... - '. . - - . city of Riverside MBS Proposal A.R. "Rick" Kermer. CPA. Vice President, will be the Project Manager. Owen O. Olsen. CPA. will assist on the indirect cost distribution analysis processes. Heidi Petersen. Senior Analvst. will participate in all phases of the work as assigned. Kenneth Hubler. Analvst. will participate in all phases of the work as assigned. Susie Wendorff. Analvst. will participate in all phases of the work as assigned. Larrv Rieale. Analvst. will participate in all phases of the work as assigned. Pamela S. Swift. CMC does revenue research into both history, sources, ~egal authorization and rate structures. Other MSI staff also will be assigned as needed so as to maintain _.. the schedule set out herein, and to assure continuance of the quality of product which MSI has become noted for. Oualifications You will see from perusal of our professional qualifications that both Mr. Kermer and Mr. Ayres have been City Finance Directors, City Treasurers, and data processing managers; Kermer in three cities. Ayres also has been a City Clerk. The three MSI principals have conducted a total of more than 400 consulting engagements. Weber and Ayres have been city managers of six cities among them, and Weber the initial interim City Manager of two additional newly incorporated cities. We also have other accountants, analysts, planners, engineers, EDP systems analysts and programmers available to us, as needed. Mr. Kermer co-Authored the League of California Cities publication "Cost Accounting for California Cities", the manual which is recommended as the standard to be followed by California cities. All three MSI principals also teach or have taught at the graduate level and provide professional seminars on financial, personnel, and management subjects through both the University of Southern California and the California State University and College System. Mr. Ayres also served on the faculty at the Graduate School of Management of the University of California, Irvine. 19 31 of 42 MAR 1 7 1992 1:-;:=.: 11 . . City of Riverside MBS Proposal References We have completed similar projects for the following jurisdictions and would request you to contact the following for references: Jurisdiction Reference Title City of Compton James Goins City Manager 213/537-8000 Tim Brown City Controller City of Antioch Lee Walton City Manager 415/778-4531 Gene Poertner Finance Director city of Morgan Hill Fred Mortensen City Manager 408/779-7271 Art College III Finance Director city of Rancho Mirage Carl Hatfield City Manager 619/324-4511 Steve Birbeck Finance Director City of Westminster Robert Huntley Interim City Manager 714/898-3311 Murray Warden City Manager City of Carson William Parrott Finance Director 213/830-7600 City of Los Altos Arne Croce City Manager 415/948-1491 Diane Gershuny Ass't City Manager City'of Foster City Richard Wykoff City Manager 415/349-1200 Jim Hardy Ass't City Manager City of Porterville Guy Huffaker City Manager 209/784-1400 Bill Mc Guire Finance Director City of Folsom William Kime City Manager 916/355-7200 Luther Faler Finance Director city of Marina vince De Maggio Public Works Director 408/384-3715 City of Taft steve Wright City Manager 805/763-3144 Nellie Bazelle Finance Director City of Shafter Wade McKinney City Administrator 805/746-6361 Jo Barrick Finance Director City of Cudahy Gerry Caton City Manager 213/773-5143 George Joseph Finance Director 20 32 of 42 MAR 1 7 1992 I. ~i~;: 11 " . - - . city of Riverside MBS proposal Jurisdiction Reference Title City of Salinas Roy Herte City Manager 408/758-7201 John Copeland Finance Director City of Carpinteria Allan Coates City Manager 805/684-5405 ' Jeff Butzlaff Ass't City Manager city of Upland Lee Travers City Manager 714/982-1352 Phyliss Proctor Finance Director city of Bakersfield Dale Hawley city Manager 805/326-3775 John stinson BUdget Director City of Corona James Wheaton city Manager 714/736-2374 Bill Garrett Deputy City Manager City of Redlands John Holmes City Manager 714/798-75l0 George Kanael Finance Director City of Brea Ed Wohlenberg City Manager 714/990-:7770 Denise Ovrom Ass't city Manager City of Chino Richard Rowe City Manager -. 714/627-7577 Mary O'Neil Dir. Mgmt. Services City of Lema Linda Robert Mitchell City Manager 714/796-2531 Larry Ronnow Finance Director City of Big Bear Robert Van Nort city Manager Lake Jeff Brunsdon Finance Director 714/866-5831 City of La Palma Paul Bussey City Manager 714/523-7700 Linda Stromberg Admin. Ass't City of Hermosa Bob Blackwood Ass't City Manager Beach Kathy Revisky City Clerk 213/376-6984 Gary Bruch City Treasurer City of Alhambra Kevin Murphy City Manager 818/570-5014 Mike Paulus Ass't City Manager City of El Segundo Bill Glickman Public Works Director 213/322-4670 Jose Sanchez Finance Director - 21 33 of 42 MAR 1 7 1992 . ~ ~~"4! 11 -- . . City of Riverside MBS Proposal Jurisdiction Reference Title City of Claremont Betty Rose Ass't City Manager 714/624-4531 city of Oceanside Ron Bradley city Manager 619/439-7258 City of San Dean Porter Finance Director Clemente Myrna Erway City Clerk 714/361-8311 ci ty of Lake Ron Molendyk City Manager Elsinore Phyllis Rogers Ass't city Manager 714/674-3124 City of Vista Morris Vance City Manager 619/726-1340 Frank Rowland Finance Director City of Azusa Geoff Craig Finance Director 818/334-5125 Lloyd Wood Police Chief city of South Gate Bruce Spragg City Admin. Officer 213/563-9502 Lee Squire Finance Director city of Rialto Joey Aguilar Finance Director 714/820-25,42 Joe Sampson City Clerk City of Monrovia Jim Starbird City Manager 818/359-3231 Jeanne Kennedy Ass't City Mgr. City of San Juan Steve Julian City Manager Capistrano Bob Boone Finance Director 714/493-1171 Mary Ann Hanover City Clerk City of Rancho Lauren Wasserman City Manager Cucamonga Jim Hart Admin. Svcs. Dir. 714/989-1851 city of Grand Tom Schwab City Manager Terrace 714/824-6621 city of Seal Beach Robert Nelson city Manager 213/431-2527 Denis Thomas Finance Director City of Merced Duane Milnes City Manager 209/385-6834 Rita Geldert Ass't City Manager 22 34 of 42 ' MAR 1 7 1992 1"'1"""1.' 11 ..... .. . . . - - . city of Riverside MBS proposal Jurisdiction Reference Title city of Palm Desert Bruce Altman city Manager 619/346-0611 City of La Mirada Gary Sloan City Manager 213/943-0131 Robert Guiterrez Ass't city Manager city of Banning Thomas Huebner City Manager 714/922-1200 Bill Olsen Finance Director city of Bend, ORE Art Johnson City Mgr, Emeritus 503/388-5504 Jim Kerfoot Finance Director City of Lynwood Charles Gomez City Manager 213/608-0220 Don Fraser Ass't city Manager A more extensive and specific list can be provided on request. Please also see listings on individual professional resumes. Mavor and Council References. The Mayors and city Council members of the above Cities also can be contacted if desired for attestation to the policy and political sensitivity and acceptability of our work when it comes to the Council for - presentation, consideration, adoption, and ultimate implementation. For your convenience references are listed below: MAYOR AND COUNCIL MEMBER REFERENCE LIST Curtis Wright, Mayor, city of Morgan Hill 408/779-7271 Jeff Bleaman, Mayor, City of Rancho Mirage 619/324-4511 Jack Kipp, Mayor, City of Folsom 916/355-7200 Bob Fitzgerald, Mayor, City of Foster City 415/349-1200 Russ Jeffries, Mayor, City of Salinas 408/758-7201 Frank Carpenter, Councilman, City of Upland 714/982-1352 Gary Miller, Mayor, City of Corona 714/736-2371 Clarice Blamer, Mayor, City of Brea 714/990-7704 John Spivey, Councilman, City of Big Bear Lake 714/585-8444 Nathan Simon, Mayor, City of Fontana 714/350-7601 23 35 of 42 MAR 1 7 1992 ;::~.."'''''1 11 i.~..." .. . . . . City of Riverside MBS Proposal MAYOR AND COUNCIL MEMBER REFERENCE LIST Ardys Koobs, Councilwoman, city of Lorna Linda 714/825-8678 John Rankin, Mayor, City of Porterville 209/784-1400 Larry Bagley, Mayor, City of Oceanside 619/439-7304 Keith Nelson, Councilman, City of La Palma 714/527-1069 Carole Beswick, Mayor, City of Redlands 714/798-7531 Ben Ashley, Mayor, city of La Mirada 213/943-0131 Gloria McClellan, Mayor, city of vista 619/726-1340 William Meachem, Councilman, city of San Clemente 714/498-6592 Elmer Digneo, Mayor, City of Loma Linda 714/825-8678 Don Ratty, Councilmember, city of Bakersfield 805/326-3751 James H. Childs, Vice-Mayor, city of Bakersfield 805/326-3751 Bruce Latta, Councilman, City of Azusa 818/334-5125 Al Yankey, Councilman, City of Chino 714/627-7577 Barbara Sheldon, Mayor, City of Banning 714/849-4511 Paul Richards, II, Mayor, City of Lynwood 213/537-8000 Thomas Lewis, Mayor, City of Carpinteria 805/684-5405 Phyllis Maurer, Councilmember, City of Salinas 408/758-7201 Dr. John Robertson, Mayor, city of Cudahy 213/773-5143 Robert Baldwin, Mayor, City of Monrovia 818/359-3231 Wayne Deats, Councilman, City of Taft 805/763-4211 John MCDonald, San Diego County Board of Supervisors and former Councilman, City of Oceanside 619/236-555 24 36 of 42 MAR 1 7 1992 .."'--:,, 11 M....,... . . . - - . City of Riverside MBS Proposal MAYOR AND COUNCIL MEMBER REFERENCE LIST Jon Mikels, San Bernardino County Board of Supervisors and former Mayor, City of Rancho Cucamonga 714/383-5102 Larry Walker, San Bernardino County Board of Supervisors and former Mayor, City of Chino 714/627-7577 cost-Conscious City Operations Mr. Ayres and Mr. Kermer have well-deserved reputations for their long-standing efforts in bringing cost-consciousness to city operations and the considerable management advantages of such. Also, the ease with which the Mayor and city Council can relate to their constituents when programs, services, revenues and true costs are known and then financial plans and projections are developed to cope with costs, service demands and expectations. The Management Services Institute staff looks forward to being of assistance in bringing the management advantages and the revenue fairness ~nd equity benefits of our System to the City, the Mayor, his staff, its City Council, and their constituents, and to City staff. 25 37 of 42 MAR 1 7 1992 m:l~-: 11 . ~ . 1ft " 4 SIManagement Services Institute INCORPORATED .t 2521 W. LA PALMA AVENUE. SUITE A, ANAHEIM, CA92801 (714)220-1717 FAX(714)220-9112 .c;:'''-) ;0-..0=.1 -<.~\ ;7':"~ ~ 1 'I '''' -;:;. ,1 ~-;--::~ ;'~:-: ~\... \.~ ~ ',Jt :;- .' J . .~ ... J1s...;oI ,,,",,,:J :":~'" I, '"</ ~"'ZJ ~ .II January 27, 1992 JAN 27 1992 Mr. James L. Bowersox, city Manager C'''-'f r -~ . - City of poway - P.O. Box 789 II', .....),- i'..Ui.(fA Y Poway, CA 92064 CITY :V1Ai'J!:,GERS OFFICE Dear Jim: Thank you and Finance Director stewart for meeting with Dennis Ross and me on Wednesday, January 22 to hear of the work of MSI, Inc,' in assisting California local governments to secure adequate revenues with which to maintain required service levels and infras- tructure. We look forward to the possibility of assisting you in your quest for financial stability and equity for the City and its citizens. To recap the estimates provided you toward the end of our meet- ing, MSI would agree to provide detailed and specific Proposals to provide the following services to the City for the following fees: Municical Business Svstem 1MBS1. In this work we would conduct our copyrighted revenue/cost analysis for the City in from six to twelve months, depending on the staff and time intensity desired by you. Our fees would be as follows: Fee Analysis................... $ 50,000 Tax Analysis.........".......... $ 10,000 Program License & Data......... $ 8,000 We also are reimbursed our staff out-of-pocket travel and on- site subsistence expenses not to exceed $10,000. Additionally, were the City to realize an added $300,000 per year in revenues in the first year after the completion of our work and presentation of our Report then, for each of the following three fiscal years, the City would pay MSI an additional $15,000 per year. The 85 cities which we have served as sole source supplier with the MBS process during the past 12 years each has experienced an all-funds revenue increase of at least ten per cent, with no sig- nificant political fallout or difficUlty. Our work and Programs are copyrighted, thus we qualify as sole source supplier. Develocment Impact Fees lDIFs 1 . As stated to you, MSI developed the concept of Development Impact Fees in California, preparing our first such analysis in 1980. Since that time we have set the tech- nical and legal standards for the imposition of such fees in the State, and are prepared to complete such work for the City for the following fee: ATTACHMENT C MAR 1 7 1992 IT~}..~ 1 1 L 38 of 42 . .' . - Mr. James Bowersox - poway Page 2 t , Development Impact Fees (DIF).......... $ 45,000 Program License and Data Transfer...... $ 4,000 Gov. Code Sec. 66006 Project Tracking, Accounting and Reporting Software.... $ 12,000 We also require reimbursement for out-of-pocket travel and sub- sistence expenses for this work, not to exceed $10,000. The Master Facilities Plan sets the unassailable legal base for the DIFs per the "nexus" requirement of the Nollan U.S. Supreme Court decision, and California Government Code Secs. 66000 - 66006. Since you already have completed this work, we would review and advise on what we felt would be desirable revisions and additions to your document on a Time and Expense basis at a fee not-to-exceed $10,000. The MFP/DIF work takes six to nine months, again depending on the emphasis put on decision making by City staff as to equipment and infrastructure projects to be encompassed in the Master Facili- ties Plan. As related to you, the MFP, in effect, has to be a 30 year Capital Improvement Plan based on build-out of the City'S Com- prehensive General Plan and all its Elements. - The MBS and DIF projects can proceed independently or parallel. The only place the two merge, if desired, is through application of the General Overhead rate computed by the MBS project to the col- lection of Development Impact Fees. Other Follow-On Services Also as outlined to you somewhat, on completion of the MBS and DIF work we are in a unique position to review and recap all the City's "problems" and to develop a solution, expressed in terms of legally available and politically feasible revenue base, rates, and schedule. We would perform this follow-on analysis and Report for $20,000 in not to exceed four months. We also have a microcomputerized Long Range Financial Plan which projects major revenues and services for ten years, and is capable of being utilized in "what if" scenarios relative to pro- posed new developments and their consequent cost and revenue impacts. We would produce that from the MBS/DIF data base, after completion of those services, for an additional $45,000, including transferring of data and program license. On request, we will provide formal Proposals, complete with detailed work plans, explanatory material, numerous references of satisfied City staff and elected officials for whom we have worked, and schedules. 39 of 42 MAR 1 7 1992 m:A~ 11 . .. . . " Mr. James Bowersox - poway Page 3 We look forward to the possibility of working with you and the poway City Council and staff. Ayres MAR 1 7 1992 ITr:A~ 11 40 of 42 I- .~ )< .1i - -- J~ Cc ~~ CD CD EE Glc W Ol~ en (J) ~'g OCD c> W '" ~& <( Iii.:! .... i!$ GlC <( z jl ~g en <( CD..... >~ :I: GlO ~ 0='" . J .~ ~! .i~~ ti j~i ~ 1 ii - .---- - - ---.- ~ --- -._- _. .-.. ---- <Il , fIl ' .... olJ ~ . -....-. ~ ~ .~ -5i ~ u ~ is "'3 0 t:: ~ ~ '" 01) M Cl:l I1J .... ._ -- c co:I 1.l ... ..... 8. a C'd .!:! c ... ~ 'u ~ g :c ~ Y - E ~ 0 0.. l!:! ~ '0 ~ ~ c 0 ~ co:I ~ ~ olJ 0 g ~ .~ .= d ~.~ tII U U 011 0.. 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CIS .2 ~ ~~ 3. ~ c -5 ~ n ] ~.5 ~ - Vl ';;j .: .~ tl ~ _ "0 :.::: ~ llJ-U -C~ClSca Vl g 2 ~ e'"O Il.) lU ::I w~ Vl ... llJ .c ,_ '" c::r Vl IIJ 0 CIS 0 C.Vl_-U VlJ.,J'"O Zz ,5 I)lJ E ~ _ ~ 0 OIl ~ Vl CIS .... - Vl C '- ~- .E]~:aEg~E~o~ zli; ;.-. - ~ ::c ~ 'c ..s ~ u ~ U <~ ~ ~ - ci .5 'O'fJ '"0 r: g 0 ,5 _ llJ llJ llJ c.._ l:Q C W :E '0 ::I ~ .c.s ;; ~ '; '': 00 '"O~-~"31So"5~"3 0 g _ Il.) Vl _ Vl Clj CIS Vl '2 ; e ~ -; ~ ~ Vi r: .=: .5 ~ J., 0..1 ..:!l ~ 0 ;;.-.. ~ '"0 -5 '- c ~ ~ ~ llJ IIJ '1:: :8 0 8. llJ .D 0 C ..:-' 0 0 U 0 .... -55;';',::1: 0 t:VI...CIS~~Vl...t:~Vl '- t: .D '''-' CIS c.....J 0 c u.. ::I .E llJ ..... OllJb~~o"Ou~.~sg~1S~~g O-W ~"'-5-5llJ-x"OCIS~~illJ~ .::!llJ <II::> r<') ~.'~ g ca 13 ~ g ea gj) c ~ ~ ~ .E ~j Oz ~a~~~;;~c~i~~~.~-5~~vi ....w ...:C.O.J:UCOIoll"'Il.)OIlJC"'O Il.) ...> ~5'~~~~6i's~>0-5::1~c~= Ow o U _ C ca U U ::I C U '"0 Vl _ 0 ._ llJ >00 :~~~~Vl55~E';]i~~~~'~ .~g~llJr:.- E-o- I.Il c~a::l ~~ U _.J:e-_;;'-"IIJ~ ullJ IIJl;:O e.D c~~- (Q~'"O~ ~CVl ~o ~ I~ llJ_l.IleLI~.cU'_ClS~ O~llJClSU'- ~ll.)~.5.C-llJVlI.ll~~~C~uu'"Og 0<11 ::I _ t: Vi ~ .c ::I '- :.::: ..:..:: ~ .Vi ::I -5 ~ _ ... c co'.... c - 0 0 CIS U 8.::1 '"0... .c o~ ClSu._~eoo::l_'_1IJ ~ ll.)o~_ we( ~~&IIJ~~-.5.5~~gl.llcix~.5'i 00<11 .c ... ~ ~.c ~ ~ 2 & 5r u">..2;:9 ~ :2 c. ~ ~ ~ ~ 5 ~ -= 8 ~ 0I.i C CD g ~ ;:; ~ .5 :c LLl - .- ::I C '- C 0 C lU ._ llJ CIS .c Vl Vl~3.2~~~O'~~'S~~.5E~g .!:!o..c~><-= c:::~~O..I::Il.Ilu:a'= ClSIl.)0'-~~o.2-,_c.c$::IE~CIS Vl~....'"O_...~_::I~O_.D _ --_._- c~o~.8e]'o . llJ otl 0 lU 0..1 ... I.Il C VI ;;.-.. Vl .c ' C , - .5 ; .5 E ~ oS ] '~.2 ~ ~ 5 - ~ ~.E oocu~ ~~ .- .- llJ W usgs ~.. ~ ~ a .- a s - .5 ~ ~ - '5 :s -a E ~ ~ ' 0 ullJuouocS;; .: -5 fr '8 .5 ;:9 .9 2 E ~ 5 ' ~ s; ~ Vi ;; gf 00 'E - "0 Vl ~ ~ 0 '.::l CIS ~ 0"0 'c 0I.i i Il.) C _ .- VI O.J:~"" CIS CIS.2llJ.c"O ::> o C e. .2 u '; ~ . C u"O.E 0"0 ~c..c;s"O C C .J: ~ -:; "0 C 0 C .- ~ _ u ... .c loll gOJjE~~~ o I.Il C 0 ~ .!:: 8. u llJ U :c c - Il.) 1":1 .- C (Q <II u Il.) '0 U C '"0 ::1::1 @ ~ CIS E i:! ~ .g, gJ E ~ ~ -t3 ug;.(6~~ x~ llJ oS ~ .5 .5 .J: g E fi n B 5 'E .2 ff e -g .~ Vl ~ ;:; '"0..2 ;:9 U ::I Q.l "0 x 's ~ ..c ~ u Vl :;> ~:;;~~:,?!.gl ~w ; CIS 0 llJ .~ 0 ... CIS ~ 'g g'~ '0 ~ g;.D ~ ~J.c = I.Il -... ..... ~ ... 0 - '"0 :::lCU~Q.l_(QQ.l<;;c~1IJ I.Il E ~ -g .::::: 15 .... ~n~llJ!:"l-=~~c .~.!:! Vl 1":1"2 '"0 <II'" CIS-U-=:S-ollJloIl:::l 8 ~ g :: g .~ ~l ~ ~ :;:9 . '0 .D ~ ~ ..... c We( :;;~...'-e~Vl~= '"0 ~ CIS i:! 5 -5 __ E! .- ~ ~;;.-.. E :::! Vl 2: 'Vi l;: OJ) CIS ....0 CIS Q.l.,E 0 CUClS= fre i >< '0 .g ~ 'i ~ otl E ~ E 0 .~ llJ c. c .- c u ~z - "0 IIJ llJ ;;.., ~ Q.l .... llJ il;SllJUEIIJ-g ~:::l>->(;; :9 ~ ~ E ~ 'E CCIS::IC=uccc ~ .- E c 0 CIS C .- IIJ :e ~ ~ ~ C ~ .~ ....J "E :~ 8 .c t: > llJ >< '"0 > 0 Vl llJ I.Il U._ Vl ~ ~ o .c llJ ._ 0 C Il.) llJ > ._ .- >. ::I U e;a CIS'I:: e Q.l E .... "0 .... "0 ~ ... - c - ... 0 x ~ ' ~.:: ;; = .c 0 ~1.Il ;;.-.. Vl ~ ::I .;;: ~ ~ ~.5 0 ~ ~ c. 0 ._ CIS 0.. U W ClS ~.... . E .~ "0 i >-> C llJ .c ~ c ... .:= .- e OIJ C ~ eJJ ....J:;;-=.!:!Q.l z ..c .c @ ~ 9 c C U g ~ -5 -0 0..1 ~ e g ~ .E '0 C..5 '"Oc.DE:.a~ U I.Il .-::1 CIS ~.J: Q.l ;::::: llJ ".; ... _ 0 E ..c "0 Q.l E t: X.2"'2 E! ~.5 ... g 8. g ~ Vi E .::! ~fJ ~ ";: ... 0 I.Il C a ..c .- 0 '5 ;; efJ Il.) ~ .- Il.) CIS .c Q.l .c 0I.i': 0 .(i'.!:! 0 E s: efJ - u Co ou2~IAR 1 7 1992 1"'71." 42 of 42 :6.5~oSBle~~ .5 ~ ~ E ~ ~ 8 (; ~ .5 @ r: I.Il .;:: 0.. C .-..... 11