Contract - SCI Consulting Group - 2023-02-15AGREEMENT FOR CONSULTANT SERVICES
This Agreement is made and effective as of February 15, 2023, between the Costa Mesa
Sanitary District, a sanitary district (“District”), and SCI Consulting Group, (“Consultant”),
with reference to the following facts:
Recitals
Whereas SCI Consulting Group is a firm that prepares special assessments to be
submitted to the Orange County Auditor-Controller for collection as part of individual
property tax billings.
Whereas SCI Consulting Group provides a comprehensive parcel and levy audit
in the first year.
Whereas SCI Consulting Group provides annual levy administration services.
Whereas SCI Consulting Group is qualified by virtue of experience, training,
education and expertise to accomplish services.
Now, therefore, the parties agree as follows:
1. TERM
This Agreement shall commence on February 15, 2023, and shall remain and
continue in effect until tasks described herein are completed, unless sooner terminated
pursuant to the provisions of this Agreement.
2. SERVICES
CONSULTANT shall perform services described in Exhibit “A”. Specifically,
CONSULTANT shall perform a comprehensive parcel and levy audit in the first year, fiscal
year (FY) 2022-23, and provide annual levy administration services for FY 2023-24,
2024-25, and 2025-26, with the option of provide annual levy administration services for
FY 2026-27 and 2027-28 solely at the discretion of the DISTRICT.
CONSULTANT shall provide the County Auditor/Tax Collector with our toll-free
phone number for property owners to directly contact SCI Consulting Group throughout
the fiscal year regarding any questions that arise. SCI will perform research throughout
the fiscal year and if necessary, revise any assessments which we find to be based upon
incorrect information being used to apply the method of assessment.
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3. PERFORMANCE
Consultant shall, at all times, faithfully, competently and to the best of his/her/its
ability, experience, and talent perform all tasks described herein. Consultant shall
employ, at a minimum, generally accepted standards and practices utilized by persons
engaged in providing similar services as are required of Consultant hereunder in
meeting its obligations under this Agreement.
4. DISTRICT MANAGEMENT
District’s General Manager shall represent District in all matters pertaining to the
administration of this Agreement. The General Manager shall be authorized to act on
District’s behalf and to execute all necessary documents which enlarge the Tasks to be
Performed or change Consultant’s compensation, subject to Section 5 hereof.
5. PAYMENT
DISTRICT agrees to pay CONSULTANT for performing annual levy administration
services according to the following schedule.
Task Fiscal Year Fee
First-Year Comprehensive Parcel and Levy Audit
(One-time Fee) 2022-2023 $ 27,250
Annual Levy Administration Services 2023-2024 $ 21,500
(3% increase for subsequent years) 2024-2025 $ 22,145
2025-2026 $ 22,809
Extended Year Optional 2026-2027 $ 23,494
Extended Year Optional 2027-2028 $ 24,198
The work plan for the first year includes one meeting with District staff. If the District
requires SCI to attend a meeting for future levy administration services, a fee of $1,500
will be invoiced. Customary incidental expenses, including property data, travel, and other
out-of-pocket costs, shall be billed as incurred, with a total amount not to exceed $750
per fiscal year without prior authorization from the District.
(a) Consultant shall not be compensated for any services rendered in
connection with its performance of this Agreement which are in addition to those set
forth herein, unless such additional services are authorized in advance and in writing
by the General Manager. Consultant shall be compensated for any additional services
in the amounts and in the manner as agreed to by General Manager and Consultant at
the time District’s written authorized is given to Consultant for the performance of said
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services.
(b) Consultant will submit invoice once the Comprehensive Parcel and Levy
Audit is completed in the first year. Consultant will invoice 65% of the cost for the
Annual Levy Administration Services in August and the remaining balance in January.
Payment shall be made within thirty (30) days of receipt of each invoice as to all non-
disputed fees. If the District disputes any of Consultant’s fees, it shall give written notice
to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set
forth on the invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE
a) The DISTRICT may, at any time, for any reason, with or without cause,
suspend or terminate this AGREEMENT, or any portion hereof, by serving upon
the CONSULTANT written notice. Upon receipt of said notice, the CONSULTANT
shall immediately cease all work under this AGREEMENT, unless the notice
provides otherwise. If the DISTRICT suspends or terminates a portion of this
AGREEMENT, such suspension or termination shall not make void or invalidate
the remainder of this AGREEMENT.
b) In the event this AGREEMENT is terminated pursuant to this Section, the
DISTRICT shall pay to the CONSULTANT the actual value of the work performed
up to the time of termination, provided that the work performed is of value to the
DISTRICT. CONSULTANT shall immediately turn over all work- product to
DISTRICT in a readily usable form. Upon termination of the AGREEMENT
pursuant to this Section, the CONSULTANT will submit an invoice to the DISTRICT
pursuant to Section 5.
7. DEFAULT OF CONSULTANT
a) The CONSULTANT's failure to comply with the provisions of this
AGREEMENT shall constitute a default. In the event that CONSULTANT is in
default for cause under the terms of this AGREEMENT, DISTRICT shall have no
obligation or duty to continue compensating CONSULTANT for any work
performed after the date of default and can terminate this AGREEMENT
immediately by written notice to the CONSULTANT. If such failure by the
CONSULTANT to make progress in the performance of work hereunder arises out
of causes beyond the CONSULTANT's control, and without fault of negligence of
the CONSULTANT, it shall not be considered a default.
b) As an alternative to the procedure for immediate termination for default set
forth in subparagraph (a), if the General Manager or his/ her delegate determines
that the CONSULTANT is in default in the performance of any of the terms or
conditions of this AGREEMENT, he/ she may in his/ her discretion cause to be
served upon the CONSULTANT a written notice of the default and demand to cure.
The CONSULTANT shall have ten (10) days after service upon it of said notice to
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cure the default by rendering a satisfactory performance. In the event that the
CONSULTANT fails to cure its default within such period of time, the DISTRICT
shall have the right, notwithstanding any other provision of this AGREEMENT, to
terminate this AGREEMENT without further notice and without prejudice to any
other remedy to which it may be entitled at law, in equity or under this
AGREEMENT.
8. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to
the professional services required by this Agreement and will produce the work product
specified in Exhibit A and other such information required by District that relate to the
performance of services under this Agreement. Such work product shall be fully usable
by District. The consultant shall maintain adequate records of services provided in
sufficient detail to permit an evaluation of services. All such records shall be maintained
in accordance with generally accepted accounting principles and shall be clearly
identified and readily accessible. Consultant shall provide free access to the
representatives of District or its designees at reasonable times to such books and
records; shall give District the right to examine and audit said books and records; shall
permit District to make transcripts therefrom as necessary; and shall allow inspection
of all work, data, documents, proceedings, and activities related to this Agreement.
Such records, together with supporting documents, shall be maintained for a period of
three (3) years after receipt of final payment. Alternatively, all documents produced shall
be maintained and owned at District offices.
(b) Upon completion, termination or suspension of this Agreement, all work
product reduced to any medium and other documents prepared in the course of
providing the services to be performed pursuant to this Agreement shall become the
sole property of the District and may be used, reused, or otherwise disposed of by the
District without the permission of the Consultant. With respect to computer files,
Consultant shall make available to the District, at the Consultant’s office and upon
reasonable written request by the District, the necessary computer software and
hardware for purposes of accessing, compiling, transferring, and printing computer
files.
9. INDEMNIFICATION
a) Indemnification for Professional Liability. When the law establishes a
professional standard of care for CONSULTANT' s services, to the fullest extent
permitted by law, CONSULTANT shall indemnify, protect, defend, and hold
harmless DISTRICT and any and all of its officials, employees, and agents from
and against any and all losses, liabilities, damages, costs, and expenses, including
attorney' s fees and costs to the extent the same arise out of, pertain to, or relate
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to the negligence, recklessness, or willful misconduct of CONSULTANT, its
officers, agents, employees, or sub- consultants (or any entity or individual that
CONSULTANT shall bear the legal liability thereof) in the performance of
professional services under this AGREEMENT.
b) Indemnification for Other than Professional Liability. Other than in the
performance of professional services and to the fullest extent permitted by law,
CONSULTANT shall indemnify, defend, and hold harmless DISTRICT and any and
all of its employees, officials, and agents from and against any liability ( including
liability for claims, suits, actions, arbitration proceedings, administrative
proceedings, regulatory proceedings, losses, expenses, or costs of any kind,
whether actual, alleged, or threatened, including attorney's fees and costs, court
costs, interest, defense costs, and expert witness fees), where the same arise out
of, pertain to, relate to, are a consequence of, or are in any way attributable to, in
whole or in part, the performance of this AGREEMENT by CONSULTANT or by
any individual or entity for which CONSULTANT is legally liable, including, but not
limited to, officers, agent, employees, or sub- consultants of CONSULTANT.
10. INSURANCE
CONSULTANT shall maintain prior to the beginning of and for the duration of this
AGREEMENT insurance coverage as follows:
1). Minimum Scope of Insurance. Coverage shall be at least as broad as the
latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2)
Automobile Liability: Insurance Services Office Business Auto Coverage form
number CA 0001, code 1 (any auto); and (3) Workers' Compensation and
Employer' s Liability: Workers' Compensation insurance as required by the State
of California and Employer's Liability Insurance.
2). Minimum Limits of Insurance. Applicants shall maintain limits no less than:
(1) General Liability: $ 1, 000, 000 per occurrence for bodily injury, personal injury,
and property damage. (2) Automobile Liability: $ 1, 000, 000 per accident for bodily
injury and property damage; and (3) Workers' Compensation and Employer' s
Liability: Workers' Compensation limits as required by the Labor Code of the State
of California. Employer' s Liability limits of $ 1, 000, 000 per accident for bodily
injury or disease.
3) Insurance Endorsements. The insurance policies shall contain the following
provisions, or Applicant shall provide endorsements on forms supplied or approved
by the District to add the following provisions to the insurance policies:
A) General Liability. The general liability policy shall be endorsed to
state that: (1) the District, its directors, officials, officers, employees, agents
and volunteers shall be covered as additional insured with respect to the
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Work or operations performed by or on behalf of the Applicant, including
materials, parts or equipment furnished in connection with such work; and
(2) the insurance coverage shall be primary insurance as respects the
District, its directors, officials, officers, employees, agents and volunteers,
or if excess, shall stand in an unbroken chain of coverage excess of the
Applicant' s scheduled underlying coverage. Any insurance or self-
insurance maintained by the District, its directors, officials, officers,
employees, agents and volunteers shall be excess of the Applicant' s
insurance and shall not be called upon to contribute with it in any way.
B) Automobile Liability. The automobile liability policy shall be endorsed
to state that: (1) the District, its directors, officials, officers, employees,
agents and volunteers shall be covered as additional insureds with respect
to the ownership, operation, maintenance, use, loading or unloading of any
auto owned, leased, hired or borrowed by the Applicant or for which the
Applicant is responsible; and (2) the insurance coverage shall be primary
insurance as respects the District, its directors, officials, officers,
employees, agents and volunteers, or if excess, shall stand in an unbroken
chain of coverage excess of the Applicant' s scheduled underlying
coverage. Any insurance or self-insurance maintained by the District, its
directors, officials, officers, employees, agents, and volunteers shall be
excess of the Applicant' s insurance and shall not be called upon to
contribute with it in any way.
C) Workers' Compensation and Employers’ Liability Coverage. The
insurer shall agree to waive all rights of subrogation against the District, its
directors, officials, officers, employees, agents, and volunteers for losses
paid under the terms of the insurance policy which arise from work
performed by the Applicant.
D) Errors and Omissions covering the professional services described
in this Agreement.
E) All Coverages. Each insurance policy required shall be endorsed to
state that: (A) coverage shall not be suspended, voided, reduced or
canceled except after thirty (30) days prior written notice by U. S. postal
mail, has been given to the District; and ( B) any failure to comply with
reporting or other provisions of the policies, including breaches of
warranties, shall not affect coverage provided to the District, its directors,
officials, officers, employees, agents and volunteers.
4) Acceptability of Insurers. Insurance is to be placed with insurers with a
current A.M. Best' s rating no less than A-: VII, licensed to do business in California,
and satisfactory to the District.
11. INDEPENDENT CONSULTANT
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a) THE CONSULTANT is and shall at all times remain as to the DISTRICT a wholly
independent consultant. The personnel performing the services under this
AGREEMENT on behalf of CONSULTANT shall at all times be under
CONSULTANT' s exclusive direction and control. Neither DISTRICT nor any of its
officers, employees, or agents shall have control over the conduct of
CONSULTANT or any of CONSULTANT' s officers, employees, or agents, except
as set forth in this AGREEMENT. CONSULTANT shall not at any time or in any
manner represent that it or any of its officers, employees, or agents are in any
manner officers, employees, or agents of the DISTRICT. CONSULTANT shall not
incur or have the power to incur any debt, obligation, or liability whatsoever against
DISTRICT or bind DISTRICT in any manner.
b) No employee benefits shall be available to the CONSULTANT in connection
with the performance of this AGREEMENT. Except for the fees paid to
CONSULTANT as provided in the AGREEMENT, DISTRICT shall not pay salaries,
wages, or other compensation to CONSULTANT for performing services
hereunder for DISTRICT. The DISTRICT shall not be liable for compensation or
indemnification to the CONSULTANT for injury or sickness arising out of
performing services hereunder.
12. LEGAL RESPONSIBILITIES
The CONSULTANT shall keep itself informed of State and Federal laws and
regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this AGREEMENT. The CONSULTANT shall at all
times observe and comply with all such laws and regulations. The DISTRICT and its
officers and employees shall not be liable at law or in equity occasioned by the failure of
the CONSULTANT to comply with this Section.
13. UNDUE INFLUENCE
CONSULTANT declares and warrants that no undue influence or pressure has
been used against or in concert with any officer or employee of the DISTRICT in
connection with the award, terms, or implementation of this AGREEMENT, including any
method of coercion, confidential financial arrangement, or financial inducement. No officer
or employee of the DISTRICT will receive compensation, directly or indirectly, from
CONSULTANT or from any officer, employee, or agent of CONSULTANT in connection
with the award of this AGREEMENT or any work to be conducted as a result of this
AGREEMENT. The violation of this Section shall be a material breach of this
AGREEMENT entitling the DISTRICT to any and all remedies at law or in equity.
14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
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No member, officer, or employee of DISTRICT, or their designees or agents, and
no public official who exercises authority over or has responsibilities with respect to the
project during his/ her tenure or for one year thereafter shall have any interest, direct or
indirect, in any agreement or sub- agreement, or the proceeds thereof, for work to be
performed in connection with the project performed under this AGREEMENT.
15. RELEASE OF INFORMATION / CONFLICTS OF INTEREST
a) All information gained by CONSULTANT in the performance of this
AGREEMENT shall be considered confidential and shall not be released by
CONSULTANT without DISTRICT' s prior written authorization. CONSULTANT
and its officers, employees, agents, or sub- consultants shall not, without written
authorization from the General Manager or unless requested by the District
Counsel, voluntarily provide declarations, letters of support, testimony at
depositions, response to interrogatories, or other information concerning the work
performed under this AGREEMENT or relating to any project or property located
within the DISTRICT. Response to a subpoena or court order shall not be
considered " voluntary" provided CONSULTANT gives DISTRICT notice of such
court order or subpoena.
b) CONSULTANT shall promptly notify DISTRICT should CONSULTANT or
its officers, employees, agents, or sub- consultants be served with any summons,
complaint, subpoena, notice of deposition, request for documents, interrogatories,
requests for admissions, or other discovery request, court order, or subpoena from
any person or party regarding this AGREEMENT or the work performed thereunder
or with respect to any project or property located within the DISTRICT. DISTRICT
retains the right, but has no obligation, to represent CONSULTANT and/ or be
present at any deposition, hearing, or similar proceeding. CONSULTANT agrees
to cooperate fully with DISTRICT and to provide the opportunity to review any
response to discovery requests provided by CONSULTANT. However, DISTRICT'
s right to review any such response does not imply or mean that DISTRICT has a
right to control, direct, or rewrite said response.
c) CONSULTANT covenants that neither he/ she/ it nor any officer or principal
of their firm have any interest in, or shall acquire any interest, directly or indirectly,
which will conflict in any manner or degree with the performance of their services
hereunder. CONSULTANT further covenants that in the performance of this
AGREEMENT, no person having such interest shall be employed by it/them as an
officer, employee, agent, or sub- consultant. CONSULTANT further covenants that
CONSULTANT has not contracted with nor is performing any services, directly or
indirectly, with any developer(s) and/ or property owner(s) and/ or firm(s) and/ or
partnership(s) owning property in the DISTRICT or the study area and further
covenants and agrees that CONSULTANT and/ or its subconsultants shall provide
no service or enter into any agreement or agreements with a/ any developer( s)
and/ or property owner( s) and/ or firm(s) and/ or partnership( s) owning property
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in the DISTRICT or the study area prior to the completion of the work under this
AGREEMENT.
16. NOTICES
Any notices which either party may desire to give to the other party under this
AGREEMENT must be in writing and may be given by: (i) personal service, (ii) delivery
by a reputable document delivery service, such as, but not limited to, Federal Express,
which provides a receipt showing date and time of delivery, or (iii) mailing in the United
States Mail, certified mail, postage prepaid, return receipt requested, addressed to the
address of the party as set forth below or at any other address as that party may later
designate by notice:
To DISTRICT: Costa Mesa Sanitary District
290 Paularino Avenue
Costa Mesa, California 92626
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To CONSULTANT: SCI Consulting Group
4745 Mangels Blvd.
Fairfield, California 94534
17. ASSIGNMENT
The Consultant shall not assign the performance of this Agreement, nor any part
thereof, nor any monies due hereunder, without prior written consent of the District.
18. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force
and effect, all licenses required of it by law for the performance of the services described
in this Agreement.
19. GOVERNING LAW
The District and Consultant understand and agree that the laws of the State of
California shall govern the rights, obligations, duties, and liabilities of the parties to this
Agreement and also govern the interpretation of this Agreement. Any litigation
concerning this Agreement shall take place in the municipal, superior or federal district
court with jurisdiction over the Costa Mesa Sanitary District.
19. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating
to the obligations of the parties described in this Agreement. All prior or
contemporaneous agreements, understandings, representations, and statements,
oral or written, are merged into this Agreement and shall be of no further force or
effect. Each party is entering into this Agreement based solely upon the representations
set forth herein and upon each party's own independent investigation of any and all
facts such party deems material.
7. CONTENTS OF PROPOSAL
Consultant is bound by the contents of Exhibit A hereto and incorporated herein
by this reference.
8. MODIFICATION
No modification to this Agreement shall be effective unless it is in writing
and signed by authorized representatives of the parties hereto.
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9.AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant
warrants and represents that he/she has the authority to execute this Agreement on
behalf of the Consultant and has the authority to bind Consultant to the performance of
its obligations hereunder.
10.INTERPRETATION
In the event of conflict or inconsistency between this Agreement and any other
document, including any proposal or Exhibit hereto, this Agreement shall control unless
a contrary intent is clearly stated.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed this day and year first above written.
COSTA MESA SANITARY DISTRICT CONSULTANT
General Manager Signature
ATTEST:
District
Clerk
President
APPROVED AS TO FORM:
District Counsel
John W. Bliss
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