The City of Capitola
Request for Proposal for
Financials, Business License,
Permitting, Loan Servicing, and Staff
Published: April 25, 2008
Note: Responses to this RFP are due by 5PM, on Thursday,
May 29, 2008
TABLE OF CONTENTS
1.) Executive Summary 3
2.) Profile of the City of Capitola 4
3.) Current Environment 6
4.) Project Scope and Timeline 11
5.) Vendor Instructions 13
6.) Vendor and System Requirements: 16
7.) Evaluation of Proposals 26
8.) Terms and Conditions 28
9.) Appendices 30
A. User Reference List
B. Pricing Worksheet
C. Standard City Contract
Purpose. The City of Capitola (the City) is issuing this Request for Proposal (RFP) for the purpose
of obtaining information and firm bids for ERP software including Financials, Business License,
Permitting, Loan Servicing and Staff Time Billing. It is the City’s preference to enter into an
agreement with a single vendor who can provide the complete range of required modules. Third
party applications for some of the modules will also be considered but must be fully disclosed in
the RFP response. The City will also accept proposals directly from vendors offering only
Permitting, Loan Servicing, or Staff Time Billing. Conversely, those vendors that provide all
modules except Permitting, Loan Servicing, and/or Staff Time Billing are encouraged to respond
with the modules available in their software suite of applications. Vendors will not be eliminated
from consideration if they are missing one or all of the indicated modules.
The City is seeking a complete response from vendors who can demonstrate that they possess the
organizational, functional, and technical capabilities to perform the services, and meet or exceed
the requirements and service levels specified herein. The City and the vendor will negotiate a final
contract incorporating pertinent portions of the vendor’s response to the RFP, a comprehensive list
of all deliverables and services to be performed by the vendor, applicable vendor documentation,
product literature, and pricing information.
Information concerning the City’s objectives, current environment, project scope and timeline,
requirements, RFP response parameters and evaluation criteria are discussed in the balance of this
Contractual Philosophy. The City’s intent is to form a long-term relationship with the selected
Negotiations Philosophy. The City and the successful vendor will develop and enter into an
agreement to provide the software and services necessary to meet the project goals.
Negotiation Methodology and Timeline. It is the intent of the City to successfully negotiate a
contract by September 5, 2008.
Profile of the City of Capitola
The City of Capitola, California was incorporated in 1949. The City is an intimate beach village
tucked in a river valley in Santa Cruz County on the Monterey Bay, located one hour away from
San Jose and an hour and a half from San Francisco. The City has a permanent staffing level of
approximately 70 full-time City employees, which serve an estimated 9,960 residents and
approximately 20,000 – 30,000 daily visitors during the peak tourist season. City services include
the City Manager Office, City Clerk, City Council, Finance, Information Systems, Community
Development including Housing, Building, Parks, Recreation, Public Works, Capital Improvements
Fund, Redevelopment Agency and Police. Separate special districts provide water, sewer, library
and fire services.
The City has adopted the Council/Manager Form of Government. The City Council consists of five
members (four City Council members and the Mayor) elected at large by the voters of the City.
The City Council is responsible for enacting legislation, establishing policies, and providing
guidance and direction for actions that affect the quality of life in the City. Local elected officials
also represent the City at a variety of forums at the County, Regional, State and National levels, in
order to make certain that the interests of the City and cities in general are promoted.
The following table summarizes the key demographics of the City:
Fiscal Year July - June. Single entity and one Chart of Accounts.
Annual Operating Budget 2007-08 Operating $ 12.6 million (City General Fund)
2007-08 CIP Funds $ 1.8 million
1. Cash Receipts 21 transaction entry, 30 query and report
2. Loan servicing 3 transaction entry, 10 query and report
3. Business License 5 transaction entry, 21 query and report
4. Other Modules 6 transaction entry, 21 query and report
Active Vendor Records 500
Active Customer Records 400
Business License Volume 1,400 active
Housing Loan Volume 400
Capital Projects 14 active projects for FY 07/08.
The City primarily contracts out work for the design and construction of large public works
projects. Much of the funding is derived from Local General Sales & Use Tax, Federal, State, and
Gas Tax Funds. Capital projects are currently maintained in the General Ledger and supported with
additional details in Excel spreadsheets. Budget areas related to projects or activities range from
street maintenance to building maintenance, parks initiatives and activities, landscaping
maintenance, Redevelopment Projects, etc.
Other Programs and Unique Functions
The City maintains approximately 80 Community Development Department Cost Recovery
Accounts, which are used to monitor project deposits made to the City to cover staff costs related
to planning projects. These deposits cover such activities as plan review and related building
permits, and are collected prior to plan approval and permit issuance. The City tracks the deposit
balances and deducts related expenditures against those accounts as services are provided by City
staff or outside consultants. Presently, these deposits are held in a liability account in the General
Ledger with supporting Excel spreadsheets to track detailed information. The Excel detail
information includes project dollars and billable staffing time per project. Deposit balances are
increased as required or reimbursed at the end of the project if there are unused balances.
The City also manages a housing loan program. Income-qualified individuals and housing
developers that qualify for these programs have a variety of loan agreements with varying terms.
Most loan terms are principal plus simple interest due upon sale of the property. Currently loan
balances are maintained on the balance sheet with supporting calculations and detail tracked in
Excel. Additional spreadsheets capture detailed information pertaining to property particulars,
funding sources, and terms and conditions of the contracts.
The City’s current financial system is Fund Balance, which was implemented in 1994 and runs on a
Microsoft Windows based operating system. Over the years, the system failed to update or
integrate various modules and as a result, many functions are performed by stand-alone
applications or Microsoft Excel. This lack of integration creates many problems and inefficiencies.
In addition, the current system is not user-friendly and fails to provide decentralized access to
financial information and reports. The Fund Balance system does not meet the City’s information
The following table defines all applications currently in use by the City, and their status:
City of Capitola Current Systems
Module Vendor Platform Overview/Status/Integration
General Ledger (GL) Fund Balance Windows, See above discussion in “Current
(FB) Pervasive SQL System Overview”
Accounts Payable (AP) Fund Balance Windows, This is the only Fund Balance
Pervasive SQL module that is integrated with the
GL. AP module does not interface
with City’s PO process, which is
performed via Word. AP module
cannot support banking “positive
pay” (anti-fraud) services.
Purchasing/Requisition (PO) MS Word, Excel Windows, Not integrated. City does not
Excel 2000 encumber funds and P.O.s are
generated in Word. City has
decentralized purchasing. The City
desires to automate the PO
process and integrate with GL and
Accounts Receivable (AR) Quickbooks Windows, City billings and receivables are
Quickbooks generated/managed in Quickbooks.
2007 The FB system provides an AR
module; however it is still in a
DOS-like interface with no future
vendor upgrade. Quickbooks is not
interfaced with FB-GL; therefore,
manual journal entries are entered
into GL for billings.
Revenue/Cash Receipting Manual receipt N/A Carbon copy receipt ledgers are
ledgers used to receive revenues at City
Hall, the Police Station and the
Recreation department. Receipts
are manually tallied with weekly
Module Vendor Platform Overview/Status/Integration
Loomis pick-ups at each site. The
AR Clerk enters receipt batches
into the GL via a manual journal
entry. There is no automation or
system audit trail of revenues.
Only cash and checks are accepted
at City Hall and the Police
Department. Recreation has the
additional option of credit card (via
Bank of America)
Bank Reconciliation Cleared checks N/A Staff uses Bank of America month-
entered into FB end statements to determine the
checks and deposits that cleared.
The checks are manually cleared in
the AP system to generate the
cleared check and outstanding
check registers. Then, the bank
reconciliation is performed. RDA
bank reconciliation uses automated
The checking account balances are
evaluated weekly with cash
transfers performed on Fridays.
The assumptions used are: bank
balances, checks issued that week,
payroll (if any) and current
Business Licensing Fund Balance Windows, Not integrated.
Fixed Assets Management MS Excel Windows, Excel is used to record and
Excel 2000 depreciate the City’s fixed assets
and infrastructure, which are in
accordance with the City’s
capitalization policy. Individual
departments track items below the
City’s capitalization policy via Excel
or other means.
Project Accounting & MS Excel Windows, Staff tracks projects via Excel.
Management Excel 2000 Public Works CIP projects are
tracked in GL via separated funds,
which capture the revenues and
expenditures (only AP invoices).
Grant Accounting & MS Excel Windows, Staff track projects via Excel and
Management Excel 2000 required forms.
Contract Management Manual N/A Contract management is
decentralized to each department.
Module Vendor Platform Overview/Status/Integration
They are manually kept in folders.
Financial Reporting (CAFR, GASB Fund Balance Windows, Fund Balance reports are used to
34) MS Excel Excel 2000 generate the basic revenue and
expenditure and balance reports.
Excel is used for all other
Budget Development and MS Excel Windows, Budget development is completely
Management Excel 2000 performed in Excel. Once adopted,
the data is manually entered into
the GL system. Budget journal
entries are posted to record budget
Payroll Outsourced to Windows Staff administers payroll,
ADP timesheets and labor management
using ADP. (Bi-weekly payroll)
Personnel Outsourced to Windows The City expanded the ADP
ADP/Manual services to include the limited
Human Resources module in March
Recreation Program Registration RecWare Windows/ RecWare captures the recreation
FoxPro dept program information. The
revenue reports are printed and
provided to the AR Clerk, who
enters them manually via journal
entries into the GL.
Housing Loans and Assessments MS Excel Windows, Housing loans are tracked via GL,
Excel 2000 Excel and manually in 3 different
sets of loan folders.
Staff Time Billing MS Excel Windows, The Community Development
Excel 2000 planner billing system is tracked in
Permit Tracking MS Word Windows, Staff tracks planning projects in
Word 2000 Word and in the “intake book”
(journal). Fees are not tracked.
Building Permit PT WIN Windows, PTWIN is a database program.
Paradox Data is input from paper
application. Project valuation is
entered and the system calculates
the fees. It also has the capability
to do inspection scheduling and
the reports are compliant with
regulatory requirements. PTWIN is
not integrated with the GL. The
fees are manually entered as cash
receipts into the GL via journal
Module Vendor Platform Overview/Status/Integration
Parking Citations Outsourced to Internet; Excel Paper tickets are sent to Phoenix.
Phoenix Group. Phoenix enters into system,
accepts payment, and deposits
funds into City bank account.
Payments are also accepted by
Capitola PD and DMV. All payments
are tracked by Phoenix. Staff
reconciles cash monthly and posts
to the GL system. There is no
automated audit trail.
Other Citations Santa Cruz N/A The Santa Cruz County Courts
County Courts administers all other police
citations. The County provides
checks to the City for various
revenues, which the Staff manually
posts as journal entries into the
The City is open to examining its current processes and leveraging efficiencies that would be
provided by new software, while avoiding unnecessary complexity. The City plans to utilize
modules in a new system where it adds the most value, and eliminate manual processes and
spreadsheets as much as possible. The City will evaluate the extent of system utilization following
the software demonstration process and consider the best options to meet requirements as
Current Network: The City of Capitola finance department and the majority of future finance
systems users access servers via a 100/1000 Mb Ethernet network. Currently the City runs data
over four T1s for connectivity to remote facilities. The current system does not function well over
T1 connections. The City requires the new application to run without significant performance
degradation over existing T1 connections. Facilities range from 2 user to 6 users.
Current Platform: The Financial system runs on a Microsoft 2003 Server and uses a Pervasive
SQL database. The new application must function on current Microsoft operating systems.
Security: The City would like to see security to the menu level at minimum; field level might be
optimal in some areas of the application that might access confidential information. Security should
be relatively easy to implement, audit and administer.
Desktops: There are approximately 60 desktops city wide running Windows XP. The Microsoft
Office 2000 Suite is the core business application for word processing, spreadsheet, and
presentation needs. The City uses Microsoft Exchange for email.
Business Drivers. The primary business drivers for this selection project include the following:
Adopt current technologies that offer flexibility in navigation, reporting and user
Streamline business processes and increase employee productivity and efficiency while
maintaining integrity of data.
Improved decision making process (i.e. budgeting) via better information.
Improved integration across applications to provide City wide access to data.
Simplified method to download financial data and reports into Excel for reporting and
Improved integration with outside software packages in use by the City (i.e. Recware and
Replace outdated software and hardware that has reached the end of its useful life.
Empower employees to work proactively and not reactively; be able to find answers to daily
questions faster and analyze business performance with flexible reporting tools.
Improve efficiency through automation of manual processes (i.e. workflow routing) and
integration between modules.
It is the City’s intent to reduce many of the paper-based business processes and inefficiencies by
implementing a new system that is fully integrated, flexible, and open to allow connection to
external systems using integration tools provided by the selected vendor.
Strategic Plan and IT Technology Directives. The new system should provide end users with
the ability to enter and manipulate data in an on-line interactive mode, including simultaneous
access to files. The City’s high level objectives include the following:
Partner with a stable and visionary software technology provider for our core systems.
Improve internal controls from the increased use of alerts, triggers, and workflow
throughout all systems.
Provide interactivity between core systems and the MS Office Suite.
Utilize user-friendly reporting tools to query databases with drill down capabilities.
Use a product “out of the box” with minimal customization and implement the Best
Practices inherent in the software.
Improve usability and accuracy through the implementation of fully integrated systems.
Explore benefits of remote vendor support to minimize internal IT costs.
Develop a long term User/Vendor relationship that will be service oriented, with continued
upgrading of software that will meet the increasing needs of a small progressive city.
The proposed system must be designed with the recognition that the City will have changing
requirements. The City must be able to amend the product using vendor authorized tools so the
application can be tailored to fit the look, feel, and functionality required by different users within
the City. Any such configurations should not impact the City’s ability to stay on the product
Project Scope and Timeline
The objective of this RFP is to solicit proposals from vendors that can provide an integrated, fully
developed, and previously implemented ERP software including Financials, Business License,
Permitting, Loan Servicing and Staff Time Billing Financial System. Subject to review and approval
of available modules, the City intends to purchase an ERP financial system that encompasses the
following specific modules and functional areas:
General Ledger Asset Management
Purchase Order Bank Reconciliation
Accounts Payable Business License
Accounts Receivable/Miscellaneous Staff Time Billing
Cash Receipting/Cashiering Report Writer/Reporting
Project/Grant Accounting Loan Servicing
Considered Modules/Functionality for Future
Permitting Code Enforcement
The modules defined above encompass the core focus of the project and will be implemented
using a phased approach as recommended by the selected vendor. At this time, the City does not
plan to implement Planning and Building Permit, or Code Enforcement modules as part of the new
finance package procurement. However, there may be plans in the future to do so. The City
expects some level of process improvement through implementation of a new financial software
system and intends to adopt best practices offered by the selected vendor where possible. Vendors
who are invited to demonstrate their product should be prepared to discuss the application’s best
The City believes that completely integrated packaged solutions exist that can meet its core
business requirements for this system. The City will also consider vendors that offer only
Permitting, Staff Time Billing, or Loan Servicing.
The City expects to make minimal modifications to the selected package. The intent of this
strategy is to minimize vendor costs, expedite implementation, and ensure that the City will be
able to remain on the application upgrade path offered by the vendor.
Timeline. The City intends to complete the selection process using the following schedule.
However, the City reserves the right to modify or reschedule procurement milestones as
necessary. Evaluation of standalone systems, i.e. Staff Time Billing/Permitting and/or Loan
Servicing, may occur later than this timeline. The City desires to go-live with Phase I approximately
January 2009, and wishes to obtain vendor comments on such plans.
Release RFP to vendors April 25, 2008
Vendor Questions Due May 9, 2008
Answers to RFP Questions Published to Web Site May 16, 2008
RFP Responses Due May 29, 2008
Evaluation of vendor Proposals Complete June 30,2008
Finalists Notified/vendor Short-List Released July 1,2008
Vendor Demonstrations July 15-31,2008
Vendor Reference Checks August 2008
Contract Review and Negotiation August 2008
Contract for Council Approval September 11, 2008
Implementation-Phase I September-December2008
Phase I go-live (modules to be determined) January 1, 2009
Proposal Responses. The City must receive responses to this RFP no later than the date
specified in Section 4. Proposals received after the due date will not be accepted. No additional
time will be granted to any vendor unless by addendum to this RFP.
Vendors must submit:
One (1) original with signature by an authorized corporate officer
Four (4) hardcopies of proposal
One (1) electronic version of the entire RFP response on a CD
One (1) electronic version of Section 6 on a CD, and
One (1) copy of the Requirements Section 6 in MS Word format to the following address:
Lisa Saldana, CPA
City of Capitola
420 Capitola Ave
Capitola, California 95010
Proposal Response Format. The RFP response should adhere to the following format:
Section Title Contents
Section 1 Executive Summary Overview description of proposed solutions,
vendor experience, and contact information (one
Section 2 Contractual Description of vendor’s method for supporting
Philosophy and Core the City’s contractual philosophy and core values
Values (one to two pages).
Section 3 Requirements Requirements document (Section 6 of the RFP)
completed according to the instructions provided.
Each item should have a ranking and a
qualitative comment about how the software
supports the requirement.
Section 4 Pricing Estimates that include pricing for software,
maintenance, and implementation services. Use
spreadsheet in Appendix B of RFP.
Section 5 Implementation A summary of implementation methodology that
Methodology includes a detailed implementation plan for tasks
required and associated time frame (limit 15
pages). The plan should include services to
support software implementation, training, data
conversion, integration, etc. Include a high-level
recommendation of a phased approach for the
modules in this RFP.
Section 6 Support Strategy Description of strategy to support ongoing
training and usability of the system after initial
implementation as well as remote support
Section 7 Hosting Options Provide an overview of the hosting options
available for proposed software solution. The City
is open to considering a hosted solution but it is
not a requirement.
Section 8 Other Information A. User Reference List: form in Appendix A of
B. User Group information: regional and
C. Copy of vendor contract to be used for
software license, services, and maintenance.
D. Exceptions to the City’s RFP or contract
provided in Appendix D of RFP.
E. Copy of standard escrow agreement.
F. Recommended hardware and network
G. Other information to support the evaluation
of your software. Limit to 30 pages or less.
Vendors that deviate from this format may be deemed by the City as unresponsive. The City will
also accept proposals directly from vendors offering only Permitting, Loan Servicing, or Staff Time
Billing. The City is the sole authority to determine responsiveness. Proposals should be prepared
simply, providing a straightforward, concise delineation of the capabilities necessary to satisfy the
requirements of the RFP. Technical literature and elaborate promotional materials should not be
submitted at this time. Emphasis in the proposals should be on completeness, clarity of content
and adherence to the presentation structure required by this RFP and not on volume. Costs for
developing proposals in response to the RFP are the obligation of the vendor and are not
chargeable to the City. All proposals and accompanying documentation will become the property of
the City and will not be returned.
Pre-Submittal Questions. There will be no formal pre-bidders conference. Questions regarding
the RFP may be submitted via email to the City by 5:00PM May 9, 2008:
Lisa Saldana, CPA
City of Capitola
420 Capitola Avenue, Capitola, California 95010
The list of questions submitted with their respective answers will be posted the City’s website by
May 16, 2008. After RFP responses have been submitted and prior to release of the vendor Short
List, inquiries concerning the RFP or the selection process should be directed to:
Pamela Ettien, Manager
Phone : 425-216-4030
RFP Amendments. The City reserves the right to request clarification on any proposal or to ask
respondents to supply any additional material deemed necessary to assist in the evaluation of the
proposal. The City reserves the right to change the RFP schedule or issue amendments to the RFP
at any time. The City also reserves the right to cancel or reissue the RFP.
Rejection of Proposals. The City reserves the right to reject any or all proposals, to waive any
minor informalities or irregularities contained in any proposal, and to accept any proposal deemed
to be in the best interest of the City.
Proposal Validity Period. Submission of a proposal will signify the vendor’s agreement that its
proposal and the content thereof are valid for 180 days following the submission deadline and will
become part of the contract that is negotiated between the City and the successful vendor.
Disclaimer. The City reserves the right to share, with any consultant of its choosing, the RFP and
any resultant proposals in order to secure expert opinion.
Non-Obligation. Receipt of proposals in response to this RFP does not obligate the City in any
way. The right to accept or reject any proposal shall be exercised solely by the City. The City shall
retain the right to abandon the proposal process at any time prior to the actual execution of a
contract with a vendor, and the City shall bear no financial or other responsibility in the event of
Public Disclosure. All materials provided to the City by vendors are subject to State and City
public disclosure laws.
Vendor and System Requirements
This section includes the vendor, technical, and functional requirements to be evaluated in this
RFP. The Requirements section will become Section 3 of your RFP response. This is not a
comprehensive list of all of the City’s requirements, but includes the key requirements that will be
used to evaluate the RFPs and will be included as part of the signed contracts. Each item has been
provided a ranking of R, I or N. (R) indicates a feature is required, (I) indicates the feature is
important to the final decision, and a ranking of (N) indicates a feature would be nice to have in a
solution. Software applications that are missing a significant number of required features and
technology preferences may be eliminated from consideration.
Vendors must provide a rating for every item. If the requirement does not pertain to the proposal
being submitted, enter “N/A”. If a submitted RFP includes blank responses the document may be
considered as unresponsive. Use the following rating system to evaluate each requirement
and include a brief description of how the software supports the stated requirement:
4 Standard and available in the current release. Software
supports this requirement. No customization or modification is
3 Meets requirement with minor configuration or modification.
Configuration maintains application on upgrade path. Testing and
production of modifications will be completed by implementation
date. Include an estimate for the cost of the modification.
2 Available with 3rd party software application. Indicate name of
the application recommended and number of installs jointly
1 Does not meet requirement and requires substantial system
modification. Indicate timing required and estimated cost of
0 Not available. Software will not meet requirement.
F Future Release. Requirement will be available in future release.
Indicate anticipated release month and year.
This section of the RFP response should be provided in hard copy AND
soft copy using the MS Word format.
Page setup may be changed to landscape as needed to allow adequate space for
R = Required
I = Important
The City of Capitola
N = Nice to have Requirements
Vendor and Software Complete this section for each component of your response: software
vendors, implementation partners, etc.
1. Contact Information
Company Name and Address
Contact Person: Name and Title
Phone, Email, Website
2. Company Information
Year Founded; Private vs. Public
Revenue and Income: Current and Prior Year
Nearest regional office to the City
3. Company Employee Counts
Help Desk Support
4. Number of Sites Installed
Total for proposed solution
Government Entities in California
City Governments: Number and Population Range
City Governments in California: Number and Population Range
5. Target User Profile
Sizing Range: Population or Operating Budget
Sizing Sweet Spot: Population or Operating Budget
6. Implementation Model – Direct or VAR
7. Version Releases: Current version and release date, installed
base, typical release schedule, number of prior versions
8. User protection plan (e.g. source code held in Escrow).
Modules/Functionality Indicate if each module is
integrated in suite or a
recommended 3rd party
R 1. General Ledger
R 2. Purchase Order
R 3. Accounts Payable
R 4. Accounts Receivable/Billing
R 5. Cash Receipting/Cashiering
R 6. Project/Grant Accounting – indicate if separate module or within GL
R 7. Asset Management
Revision: 4-15-08 17
Module/Functionality Indicate if each module is
integrated in suite or a
recommended 3rd party
R 8. Business License
R 9. Report Writer/Reporting
I 10. Staff Time Billing-Indicate module in your suite to support specified
I 11. Loan Servicing
Modules That May be Considered in the Future
N 12. Permitting
N 13. Code Enforcement
Cost This should tie to Section
4 of RFP Response
1. Software – based on following user counts:
Cash Receipts 21 transaction entry, 30 query and report
Loan Servicing 3 transaction entry, 10 query and report
Business License 5 transaction entry, 21 query and report
Other Modules 6 transaction entry, 21 query and report
2. Implementation – define as ratio of services to software.
3. Annual Maintenance – define as % of software cost.
4. Database – additional license and maintenance.
5. Other – specify.
Technology Numeric ranking and
I 1. Platform preference: Windows 2003 Server.
Indicate Platforms supported and % of installs for each.
Indicate Databases supported and % of installs for each.
Indicate source code language.
R 2. Thin-client, Windows GUI interface.
R 3. Discuss ability to support remote deployment to approximately four
locations via T1 line. Identify potential performance issues.
I 4. Real time updates with batch posting option.
R 5. Describe security options (i.e. menu or screen level by group or user,
modify vs. read-only, etc.)
R 6. Open integration architecture, i.e. ActiveX, XML, Java, etc.
R 7. ODBC compliant.
R 8. Bi-directional integration to Microsoft Excel and Word.
N 9. Support electronic signatures.
N 10. Support for Citizen Self-Service (Business Licensing, etc.).
I 11. Describe the ability of the system to comply with Payment Card
Industry (PCI) requirements.
I 12. System supports encryption on individual database fields.
13. Integration: Discuss experience and number of installs with integration
to the following systems:
R Parks and Recreation-RecWare to General Ledger.
Revision: 4-15-08 18
Technology Numeric ranking and
R Payroll-ADP to General Ledger and Project Accounting.
R Loan servicing.
I GIS (ESRI).
Numeric ranking and
These requirements apply to all modules. List any exceptions in
R 1. Out-of-the box integration of all required modules.
R 2. Audit trail with user, date, and time stamp.
I 3. User configurable menus, fields and screens.
I 4. Flexible field lengths in description fields (over 30).
R 5. Drill down through all modules.
R 6. Rule-based workflow routing (e.g. PO, invoice, etc.).
N 7. Date effectivity to trigger alerts, flags, and messaging.
I 8. User defined queries with wild card search, drop down lists or other
methods to facilitate look-up and save queries for future use.
I 9. Central Address ID file through all modules.
R 10. Indicate imaging functionality available in the system for invoices,
packing lists, development plans, etc. and ability to attach to
N 11. Application Hosting: discuss options available for application and
R General Ledger Numeric ranking and
R 1. Indicate chart of account format options; characters and segments. The
City is open to changes. The current structure is:
Fund (3) – Department (3) – Object (5) – Sub Object (3)
R 2. Indicate number of periods allowed. (desire 13 or more periods)
R 3. Indicate how the software supports the Modified Accrual Method of
R 4. Multiple journal entry types: recurring, reversing, allocations, import
I 5. Ability to attach documents electronically to journal entries.
N 6. Interest apportionment and allocations based on quarterly balance.
R 7. Fund accounting with automatic inter-fund balancing.
R 8. Operate in multiple periods; post in prior or future periods with user
R 9. Describe level of compliance in all areas of governmental reporting
including: GAAP, GAAFR, GASB, and CAFR.
R Purchase Order Numeric ranking and
R 1. Encumbrance accounting and reporting across multiple fiscal years.
Ability to carryover purchase orders from 1 year to the next.
Revision: 4-15-08 19
R Purchase Order Numeric ranking and
R 2. Purchase Order attributes: type, department, open PO’s (charge accts
at various stores-approx 50), attachments, etc.
R 3. Allow decentralized vendor creation on a purchase order with approval
required by finance department.
R 4. Budget check at creation of purchase order with warning if over-budget.
I 5. Allow multiple receipts/invoices to be applied to a purchase order.
I 6. Online purchase order approval routing with primary/secondary
I 7. Bid and quote management to capture vendor quotes. May be via user-
defined fields or attached form.
Numeric ranking and
R 1. Master vendor file attributes: type, Minority or Woman-Owned Business
Enterprise (MWBE), status, parent/child, addresses, contact information,
insurance requirements, multiple remit to addresses.
R 2. Support decentralized invoice processing with 2 way matching (invoice
R 3. Manage recurring payables with ability to override.
R 4. Flag an invoice to be paid by a separate check.
I 5. Online budget checking at invoice entry.
I 6. Alerts or edits to disallow over-liquidation of PO’s.
R 7. Duplicate invoice checking at invoice entry.
R 8. 1099 tracking to invoice level with electronic reporting.
I 9. Flag reimbursable invoices (i.e. grant funded expenditures).
R 10. Support electronic payments to vendors (e.g. ACH, EFT, Wire, etc.).
R 11. Positive Pay management.
I 12. Tools to support cash management (i.e. available cash for investing).
I 13. Sales and Use Tax tracking and reporting; flag at invoice or line item
R 14. Describe process to run off-cycle checks.
R 15. Indicate support for bank reconciliation utilizing electronic files supplied
R Accounts Receivable Numeric ranking and
R 1. Indicate number of revenue types available: Rents, restitution, staff
service, fuel, mobile home admin fee, grants, business license
underpayments, Business Improvement Assessment, developer fees,
planning fees, consultant fees, interest due from HOA, NSF checks.
R 2. Default GL account number in customer file with override capability.
R 3. Interface with 3rd party applications such as Recware, loan servicing
software, and building permit software.
Revision: 4-15-08 20
R Accounts Receivable Numeric ranking and
R 4. Track deposits by multiple categories such as contractor, developer,
boat space, and tree deposits, and other miscellaneous deposits
I 5. Departments to have ability to enter invoices (decentralized).
Cash Receipting/Cashiering Numeric ranking and
R 1. Accept multiple payment methods (Cash, Check, Credit Card, EFT, ACH
R 2. Define multiple types of cash receipts and associated default
information for that type (i.e. Animal Control, Parking Ticket, Business
R 3. Support multiple (currently 3 sites) decentralized cash receipting
R 4. Accept and post online credit card payments.
R 5. Include a percentage of sale or flat fee for credit card transactions.
R 6. Process third party deposits to our account (i.e. sales tax, collection
agency, ADP, etc).
R 7. Ability to modify cash receipt form to include various information (i.e.
R 8. Weekly deposit batch by location.
N 9. Interface to check reader; verify and post transaction.
R 10. Interface to credit card reader; verify and post transaction.
N 11. Drill to/from central cash receipting to/from external cash system, i.e.
Recware, to view transaction detail.
R 12. Support online banking.
R 13. Indicate receipt number configuration (number and type of characters,
user vs auto assigned, etc.).
N 14. Cash receipts to trigger additional data to be captured (i.e. tree permits
or building permit requiring a business license).
I 15. Vendor solution to avoid multiple customer accounts/names for one
customer (i.e. Will Smith, Bill Smith, and Smith, W.).
I 16. Capture user defined fields in transaction.
I 17. Create or process a pending transaction (i.e. user doesn’t have required
data to post).
R 18. Detailed transaction report with the ability to filter by date, type of
transaction, location, department, and user.
R 19. Explain handling of confidential data, including credit card security.
I 20. Support for centralized cash receipting; receive cash that relates to
receivables outside of the software suite (i.e. 3rd party revenue solutions
or external agencies).
Revision: 4-15-08 21
R Project/Grant Accounting Numeric ranking and
R 1. Discuss system support for project accounting; separate module vs. via
general ledger accounts. The City envisions using this functionality to
support the following: CIP projects, Grants, Community Development
Projects, Developer Deposits, etc.
R 2. Ability to track projects with multiple funding sources and tie
expenditures to funding source within individual project or in total, for
the life of the project or for fiscal periods.
R 3. Inception-to-date reporting.
R 4. Expense allocations (expenditures, payroll, benefits-import from ADP or
third party system) across projects, sub-projects, and funds. Also ability
to record multiple revenue sources for project.
R 5. Track deposits by multiple categories such as contractor, developer,
boat space, tree deposits, housing projects, grants, and other
miscellaneous deposits received..
R 6. Ability to close part of a project upon completion of that portion.
R 7. Project reporting: based on all project attributes at summary and detail
level. (e.g. Total project, individual sub-project, original budget, budget
revisions, expenditures, % of completion, percentage billed, etc.).
R 8. Provide grant management accounting, billing, and reporting across
multiple years, reimbursement and expenditure tracking by grant.
R 9. Integrates and transacts with Accounts Receivable, Cash Receipts &
Accounts Payable, Budgeting, and General Ledger.
I 10. Ability to create grant reimbursement billings linked to Accounts
I 11. Project costing attributes: budget, overhead cost, sub-project, tasks,
start date, close date, funding source, location, project manager,
contractors, deposits, notes, etc. Provide list or number of available
fields/user defined fields.
N 12. Project change order management
R Asset Management Numeric ranking and
R 1. Capture asset attributes: parent/child relationships, purchase order,
invoice, class, location, number, department, account, funding sources,
acquisition date, depreciation method or non-depreciable, disposal date,
replacement value, etc.
I 2. Track repairs, maintenance, and improvements to assets.
R 3. GASB 34 compliance and reporting.
N 4. Indicate support for infrastructure management (i.e. light poles, etc.).
R Budget Numeric ranking and
R 1. Indicate if Budget module is available in suite or from 3rd party vendor.
If 3rd party, discuss level of integration with all modules.
R 2. Support budget export to and import from Excel spreadsheets.
Revision: 4-15-08 22
R Budget Numeric ranking and
I 3. Multiple budget iterations with comments field and notes as to why
I 4. Import position budgeting data from ADP applications for payroll and
I 5. What-if modeling and analysis.
R 6. Support two-year budget process (Currently, the City budget includes
“adopted” year 1 and “planned” year 2. For example, adopted fy08/09
and planned fy09/10 budgets.).
N 7. Support five-year financial planning.
R Business License Numeric ranking and
1. Business License fee is calendar year, prorated by the quarter for
contractors located outside of Capitola and all new applications received
R 2. Support multiple business classifications and types: Professional
Services, Retail, Contractor, Miscellaneous (itinerant vendors, taxi cabs,
R 3. Define security by user to allow view-only access to departments and to
block confidential information (i.e. view-only access for specific fields).
R 4. Query and report by any field (i.e. business address [street or number],
area, name, type of license, etc).
R 5. User defined fee structure including penalties and administration fee,
with pro-ration and override capability.
R 6. Annual fee based on gross receipts for Retail category.
I 7. Ability to batch receive Business License cash immediately, then update
and post to individual accounts with additional required information (i.e.
sales, number of professional staff).
I 8. Business license status that allows activation and inactivation without
recreating new record (i.e. for contractors that require intermittent
business license for work performed in the city).
R 9. Generate and print business license certificates that are user
R 10. Define license expiration dates and print on certificate.
R 11. Define license period, including multiple dates for itinerant vendors.
I 12. Integrates and transacts with Accounts Receivable, Cash Receipts and
Accounts Payable, and General Ledger.
N 13. Online access to business license listing without confidential data.
I 14. Support online applications and renewals.
I 15. Doing Business As (DBA) field.
R 16. Auto issue next number and overwrite.
R 17. Pre-filled annual renewal notices with mailing labels.
I 18. Issue past due notices and statements for renewals.
Revision: 4-15-08 23
R Report Writer/Reporting Numeric ranking and
R 1. Indicate reporting tools used and level of integration to all modules.
R 2. Report on all modules and fields (including user definable fields).
R 3. Launch reports and queries from within the application; distribute via
R 4. Support date-range parameter or point in time reporting.
R 5. Reports export to Excel and PDF format
R 6. Budget vs. Actual reporting with visibility to percent of budget expended
or remaining at a point in time.
I 7. Drill down to source transactions from online reports or queries.
R 8. User defined Workspace or Dashboard tool; define tasks, queries,
I 9. Online ad-hoc report or query library with dynamic data refreshing.
R 10. Use multiple filters simultaneously.
I 11. Schedule reports to run and export/save to City computer file network.
I 12. Ability to perform calculations (i.e. add, subtract, multiply, divide,
round, subtotal, total, average, etc.) from all modules and fields.
N 13. Print report parameters in the report header/footer.
N 14. Generate reports from ADP database for payroll and human resources.
N 15. Insert item in report, such as City logo or picture.
I Staff Time Billing : If your system does not provide a Staff Time
Billing functionality, the City will still consider your proposal.
Numeric ranking and
You may also submit a proposal for only this module, if
R 1. The City receives deposits that are intended to cover the cost of
services for a particular Zoning Permit Plan. Staff charge time to that
Plan Review and external costs can be applied to the deposit. The goal
is to track the reduction to that deposit and determine if additional
funds should be collected to complete the project or if a refund is due.
Indicate how your software would support this functional item and what
module would be used. Involves about 80 projects or 1000 entries per
R 2. Ability to track date, year, week #, project #, project address, deposit
$, # of hours, hourly rate $, adjustment +/-.
R 3. Ability to change billing rates and apply retroactively.
R 4. Ability to generate refunds and invoices.
R 5. Automated monthly journal entries.
R 6. Project balances easily available.
R 7. Interface with General Ledger, Accounts Payable, Accounts Receivable,
and Cash Receipts.
R 8. Ability to select multiple rates.
R 9. Reporting available by staff billing positions within project and in total.
Revision: 4-15-08 24
I Loan Servicing: If your system does not provide a Loan Servicing
functionality, the City will still consider your proposal. You may Numeric ranking and
also submit a proposal for only this module, if applicable. comments.
R 1. Indicate whether software suite includes a specific Loan Servicing
Module, suite has an alternative solution, 3rd party applications
previously integrated into suite, or are a single product vendor.
R 2. Central Information File for borrower data including multiple addresses,
multiple loans, relationships, etc.
R 3. Multiple loan attributes – up to 4 titleholders, multiple sourcing.
R 4. Track multiple sources of funds, check numbers, escrow information.
R 5. Multiple payment options – interest only, principal only, partial
R 6. Incremental cashflow tracking – disbursement and repayment.
R 7. Multiple sort/sub-sorts by any combination of fields.
R 8. Provide future dating of interest due/loan balance as of specified date.
R 9. Calculate total loan balances as of defined date including future dating;
all of a certain type of loan, etc.
R 10. Attach documentation to property records.
R 11. Ability to integrate with financial system and download to Excel.
R 12. Seamless interface to Accounts Payable.
R 13. Seamless interface from Cash Receipts.
R 14. Audit trail including date, initiator of change, original information, and
R 15. Ability to run project/location/roll-up location (park) level reports.
I 16. Payoff statements with future dating.
I 17. Commentary fields.
I 18. Insurance/tax/other tracking or tickler system.
I 19. 1098 reporting.
I 20. Ability to name and save user defined report formats.
I 21. Indicate # of user definable fields.
I 22. Indicate # of years accessible/sortable.
N Permitting-May be available in financial suite or 3rd party
N Provide information/instructional materials about your Permitting module or
N Code Enforcement-May be available in financial suite or 3rd party
N Provide information/instructional materials about your Code Enforcement
module or solution.
Revision: 4-15-08 25
Evaluation of Proposals
The City’s project team and SoftResources LLC will evaluate the RFPs. SoftResources LLC has been
engaged by the City to assist with the RFP review process based on their unbiased software
selection methodology and expertise. The evaluators will consider how well the proposed solution
meets the City’s requirements as described in the RFP. It is important that the responses be clear
and complete to ensure that the evaluators can adequately understand all aspects of the proposal.
Based on the evaluation of the RFP responses, SoftResources will present a Short List of vendors
to the City for their final review and evaluation through a software demo process. The City will
make the ultimate final decision regarding the finalist vendor.
Evaluation Factors. Selection of finalists will be primarily according to the following criteria:
Quality, clarity, and completeness of the proposal.
Adherence to requirements for RFP preparation.
Vendor viability and strength.
Ability to meet functional and technical requirements.
Software scalability, flexibility, and ease of use.
Compatibility and integration with existing hardware and software.
Vendor’s experience on similar projects.
Total cost of ownership.
The evaluation factors identified above reflect a wide range of considerations. While cost is
important, other factors are also significant. The City may select other than the lowest cost
solution. The objective is to choose a vendor capable of providing a reliable and integrated solution
within a reasonable budget. All proposals will be evaluated using the same criteria. The City
reserves the right to negotiate any element contained or not contained in the proposal.
Notification. Based on the evaluation of the RFPs the City will select a Short List of three or four
vendors and invite them to participate in Pre-Demo Meetings and Software Demos. The selected
vendors will be notified in writing or email by the date indicated in Section 4.
Pre-Demo Meetings. Once the Short List of vendors has been identified, the vendors will be
invited to participate in a Pre-Demo Meeting with the Project Team. The purpose of this meeting
will be to allow the vendor time to acquire additional information about the scope of the project
and to review any questions about the Demo Script presented to the vendors.
Scripted Demos. The functional and technical product Demos will be presented to the City by the
Short Listed vendors according to a pre-defined script issued by the City. All vendors must follow
this script during their Demo process. The evaluation criteria for the Demo process will include
adherence to the script as well as the ability to successfully demonstrate the product’s ability to
meet the functional and technical requirements. The City reserves the right to request additional
information, interviews, follow-up demonstrations, or any other type of clarification of proposal
information it deems necessary to evaluate the final vendors.
Revision: 4-15-08 26
Post-Demo Technical Evaluation. In addition to scripted functional demonstrations, the City
may request a more extensive technical Demo. This Demo will be scheduled on an as-needed basis
for specific applications.
Implementation vendor Selection. Once the City has completed the selection of the software
they will determine if a separate implementation vendor selection project is necessary. The City
reserves the right to not select the implementation partner that responds to the RFP or
demonstrates the software on behalf of the vendor.
Site Visits. The City may choose to conduct site visit(s) to the software vendor’s headquarters
and/or other users as part of the evaluation process. The visits may be used to determine the
successful vendor, and will be conducted following scheduled software demonstrations of the Short
Listed vendors. Evaluation of the vendor client sites will be based on the following: assessment of
the vendor’s service during system implementation, assessment of the quality and timeliness of
vendor’s ongoing support, overall user satisfaction with the system.
Contract Award and Execution. The City reserves the right to make an award without further
discussion of the proposal submitted. The City shall not be bound or in any way obligated until
both parties have executed a vendor contract. The City also reserves the right to delay contract
award and/or not to make a contract award.
Revision: 4-15-08 27
Terms and Conditions
The following terms and conditions apply to this RFP and are not inclusive of all terms and
conditions in the final contract.
Business License and Taxation. The successful vendor and all subcontractors must hold a valid
business in the City of Capitola and any additional professional licenses and registrations that may
be required by the State of California.
Choice of Laws. The contact/agreement shall be subject to and interpreted pursuant to the laws
of the state of California.
Copyright and Confidentiality. Selected vendor shall maintain strict privacy of all City records,
data and files (regardless of media), including any copyrighted material received from the City.
Insurance Requirements. The vendor awarded the contract will be subject to the City’s
requirements for insurance reflecting the minimum amounts and conditions as defined by the
requirements in Appendix C.
Litigation/Jurisdiction/Venue. Should either party bring any legal or equitable action, the
prevailing party in such action shall recover, in addition to all other relief, its reasonable attorney’s
fees and court costs to be fixed by the court. Any and all such court action shall take place and be
vested either in the Municipal Court or Superior Court of Santa Cruz County, California.
Payment. The City will pay invoices submitted by the selected vendor as progress is made on the
implementation project and agreed upon service stipulated in the final agreement. Prior to
payment, invoices will be reviewed to determine if billing is reflective of actual agreed upon project
progression and performance. Upon acceptance of the billing by the City’s staff Financial System
Project Manager the payment will be processed and submitted to the vendor.
Prime vendor. It is recognized that multiple vendors may wish to combine their resources in
responding to this Request for Proposal. A Proposal with such a combination is acceptable,
provided that the complete Proposal contains all required information and indicates which vendor
shall be responsible for each of the components that make up the complete system. In addition,
one of the vendors shall be designated as responsible for the complete definition, delivery,
integration, implementation, and maintenance of the system, referred to as the “Prime vendor”.
Proposals, Public Information. The City will attempt to protect legitimate trade secrets of the
vendor. Any proprietary information contained in the vendor's proposal must be clearly designated
and shall be labeled with the words "Proprietary Information." Marking the entire proposal or any
one or more of the major sections as proprietary will neither be accepted nor honored. The vendor
should be aware that the City is required by law to make certain records available for public
inspection with certain exceptions. The vendor, by submission of materials marked proprietary,
acknowledges and agrees that the City will have no obligation or liability to the vendor in the event
that the City must disclose these materials.
Revision: 4-15-08 28
Satisfaction of the City Attorney. The acceptance and subsequent award of a submitted
proposal shall be at the review and satisfaction of the City Attorney and the City’s Financial System
Source Code. This Request for Proposal will require that the selected vendor provide to the City
the source code, in its entirety for all purchased software modules, either by direct possession or
via an escrow account.
Warranties. All warranties must be clear, concise and in writing. Warranties shall be specific as to
what is and is not covered along with the exact term (in calendar days) of each covered item.
Warranties shall cover all individual modules, supplied or created interfaces, and any ancillary
product that is purchased from the awarded vendor. In addition, the awarded vendor will warrant
and guarantee the seamless integration and interface of modules proposed herein. Bidders must
warrant to the City that software specifications, capabilities, and performance characteristics are as
stated in the proposal and accompanying documentation. Submission of a Proposal will represent
your agreement to these conditions.
Workers’ Compensation. The vendor shall procure and maintain for the life of the
Contract/Agreement, Workers’ Compensation Insurance covering all employees with limits meeting
all applicable state and federal laws. This coverage shall extend to any subcontractor that does not
have their own Workers’ Compensation and Employer’s Liability Insurance.
Software Versions. The City of Capitola will not accept Beta versions of the software. All
applications are to have a referencable install base and thorough testing.
Contract Definition. The contract between the City of Capitola and the selected vendor to
provide the required software and related services will consist of:
This Request for Proposal.
The selected vendor's Proposal response.
The vendor’s product demonstration and related handouts and electronic
Related Commentary – any communications from the vendor clarifying the proposal,
technology, project planning, implementation services, training, 3rd party
applications, software functionality, support services and professional services.
Documents containing any additional items stipulated during contract negotiations.
A mutually agreed upon Statement of Work that outlines the project scope, project
timeline, assigned responsibilities (vendor and customer) and estimated hours by
role for the major work components, deliverables, milestones, and costs by major
A “signature page”.
Contract Documents and Precedence. The documents constituting the contract between the
City of Capitola and the Vendor are intended to be complementary so that what is required by any
one of them shall be as binding as if called for by all of them. In the event of any conflicting
provisions or requirements within the several parts of the Contract Documents, they shall take
precedence in the following order: Change Orders (with the most recent taking precedence);
Statement of Work, Contract Document Amendments; the Contract Document as described in the
signed Agreement; Request for Proposal Addenda; Request for Proposal; and Vendor’s Proposal.
Revision: 4-15-08 29
Revision: 4-15-08 30
User Reference List
Provide five user references that most closely reflect similar users to the City’s scope of work
within the past five years. Reference sites should be fully implemented and live on the current
version of the software.
1. Name of User:
Population: Concurrent Users:
Contact Name/Title: Telephone #:
Go Live Date:
2. Name of User:
Population: Concurrent Users:
Contact Name/Title: Telephone #:
Go Live Date:
3. Name of User:
Population: Concurrent Users:
Contact Name/Title: Telephone #:
Go Live Date:
Revision: 4-15-08 31
4. Name of User:
Population: Concurrent Users:
Contact Name/Title: Telephone #:
Go Live Date:
5. Name of User:
Population: Concurrent Users:
Contact Name/Title: Telephone #:
Go Live Date:
Revision: 4-15-08 32
Vendors may attach additional pricing information; please use this template to summarize pricing. Include in
your assumptions incremental software pricing for additional users
Software – Primary $ Assumptions: Licensing for user counts
Accounts Receivable/Misc. Billing
Staff Time Billing Indicate Suggested Module
Loan Servicing Indicate Suggested Module
Optional Modules/Functions $
Implementation $ Assumptions: Ratio of services to software
Maintenance Per Year $ Assumptions: Percent of software
Grand Total Software, Implementation, Maintenance
If a hosted solution is proposed, please provide assumptions and costs.
Revision: 4-15-08 33
Standard City Contract
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is entered into on ________________, 200_, by and between the City of
Capitola, a Municipal Corporation, hereinafter called "City" and ______________________________,
hereinafter called "Consultant".
WHEREAS, City desires certain services described in Appendix One and Consultant is capable of
providing and desires to provide these services;
NOW, THEREFORE, City and Consultant for the consideration and upon the terms and
conditions hereinafter specified agree as follows:
Scope of Services
The services to be performed under this Agreement are set forth in Appendix One.
Duties of Consultant
All work performed by Consultant, or under its direction, shall be sufficient to satisfy the City's
objectives for entering into this Agreement and shall be rendered in accordance with the generally accepted
practices, and to the standards of, Consultant's profession.
Consultant shall not undertake any work beyond the scope of work set forth in Appendix One
unless such additional work is approved in advance and in writing by City. The cost of such additional
work shall be reimbursed to Consultant by City on the same basis as provided for in Section 4.
If, in the prosecution of the work, it is necessary to conduct field operations, security and safety of
the job site will be the Consultant's responsibility excluding, nevertheless, the security and safety of any
facility of City within the job site which is not under the Consultant's control.
Consultant shall meet with _________________________________________, called "Director,"
or other City personnel, or third parties as necessary, on all matters connected with carrying out of
Consultant's services described in Appendix One. Such meetings shall be held at the request of either party
hereto. Review and City approval of completed work shall be obtained monthly, or at such intervals as may
be mutually agreed upon, during the course of this work.
Duties of the City
City shall make available to Consultant all data and information in the City's possession which
Revision: 4-15-08 34
City deems necessary to the preparation and execution of the work, and City shall actively aid and assist
Consultant in obtaining such information from other agencies and individuals as necessary.
The Director may authorize a staff person to serve as his or her representative for conferring
with Consultant relative to Consultant's services. The work in progress hereunder shall be reviewed
from time to time by City at the discretion of City or upon the request of Consultant. If the work is
satisfactory, it will be approved. If the work is not satisfactory, City will inform Consultant of the
changes or revisions necessary to secure approval.
Fees and Payment
Payment for the Consultant's services shall be made upon a schedule and within the limit, or
limits shown, upon Appendix Two. Such payment shall be considered the full compensation for all
personnel, materials, supplies, and equipment used by Consultant in carrying out the work. If
Consultant is compensated on an hourly basis, Consultant shall track the number of hours Consultant,
and each of Consultant’s employees, has worked under this Agreement during each fiscal year (July 1
through June 30) and Consultant shall immediately notify City when the number of hours worked during
any fiscal year by any of Consultant’s employees reaches 900 hours. In addition each invoice submitted
by Consultant to City shall specify the number of hours to date Consultant, and each of Consultant’s
employees, has worked under this Agreement during the current fiscal year.
Changes in Work
City may order major changes in scope or character of the work, either decreasing or increasing
the scope of Consultant's services. No changes in the Scope of Work as described in Appendix One
shall be made without the City's written approval. Any change requiring compensation in excess of the
sum specified in Appendix Two shall be approved in advance in writing by the City.
Time of beginning and Schedule for Completion
Consultant shall begin work upon its receipt of a written Notice to Proceed from Director. The
Notice to Proceed shall not be issued until after this Agreement has been approved and authorized by the
The schedule for completion of the work shall be as shown upon Appendix Three. In the event
that major changes are ordered, the schedule for completion as stated in Appendix Three will be adjusted
by City so as to allow Consultant a reasonable period of time within which to complete any additional
work which may be required as a result of the ordered changes.
In the event Consultant is delayed in performance of its services by circumstances beyond its
control, the City will grant Consultant a reasonable adjustment in the schedule for completion as
described in Appendix Three provided that to do so would not frustrate the City's objective for entering
into this Agreement. All claims for adjustments in the schedule of completion must be submitted to City
by Consultant within thirty calendar days of the time of occurrence of circumstances necessitating the
Consultant acknowledges that it is necessary for Consultant to complete its work on or before
the completion date set forth in Appendix Three in order to allow the City to achieve its objectives for
entering into this Agreement. The parties therefore agree to make every effort to meet the schedule
noted in Appendix Three of this Agreement.
Revision: 4-15-08 35
City shall have the right to terminate this Agreement at any time upon giving ten days written
notice to Consultant. Consultant may terminate this Agreement upon written notice to City should the
City fail to fulfill its duties as set forth in this Agreement. In the event of termination, City shall pay the
Consultant for all services performed and accepted under this Agreement up to the date of termination.
Consultant shall procure and maintain for the duration of the contract insurance against claims
for injuries to persons or damages to property which may arise from or in connection with the
performance of the work hereunder by the Consultant, his agents, representatives, or employees.
i. Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial Liability coverage (occurrence Form CG 0001).
2. Insurance Services office Form Number CA 0001 covering Automobile Liability,
Code 1 (any auto).
3. Workers’ Compensation insurance as required by the State of California.
4. Errors and Omissions Liability insurance appropriate to the consultant’s profession.
Architects’ and engineers’ coverage shall include contractual liability.
ii. Minimum Limits of Insurance
Consultant shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence and $2,000,000 in aggregate
(including operations, for bodily injury, personal and property damage.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property
3. Errors and Omissions Liability: $1,000,000 per claim and in the aggregate.
Other Insurance Provisions
The commercial general liability and automobile liability policies are to contain, or be endorsed to
contain, the following provisions:
Revision: 4-15-08 36
1. The City of Capitola, its officers, officials, employees and volunteers are to be covered
as additional insureds as respects: liability arising out of work or operations performed
by or on behalf of the Consultant or automobiles owned, leased, hired or borrowed by
2. For any claims related to this project, the Consultant’s insurance coverage shall be
primary insurance as respects the City, its officers, officials, employees and volunteers.
Any insurance or self-insurance maintained by the City, its officers, officials,
employees or volunteers shall be excess of the Consultant’s insurance and shall not
contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that coverage
shall not be canceled by either party, except after thirty (30) days’ prior written notice
by certified mail, return receipt requested, has been given to the City.
4. Coverage shall not extend to any indemnity coverage for the active negligence of the
additional insured in any case where an agreement to indemnify the additional insured
would be invalid under Subdivision (b) of Section 2782 of the Civil Code.
iii. Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless
otherwise acceptable to the City.
iv. Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements
affecting coverage by this clause. The endorsements should be on forms provided by the City
or on other than the City’s forms provided those endorsements conform to City requirements.
All certificates and endorsements are to be received and approved by the City before work
commences. The City reserves the right to require complete, certified copies of all required
insurance policies, including endorsements affecting the coverage required by these
specifications at any time.
Consultant agrees to indemnify, defend, and hold harmless the City, its officers, agents and
employees, from and against any and all claims, demands, actions, damages, or judgments, including
associated costs of investigation and defense arising in any manner from consultant’s negligence,
recklessness, or willful misconduct in the performance of this agreement.
Civil Rights Compliance/Equal Opportunity Assurance
Every supplier of materials and services and all consultants doing business with the City of
Capitola shall be in compliance with the applicable provisions of the Americans with Disabilities Act of
1990, and shall be an equal opportunity employer as defined by Title VII of the Civil Rights Act of 1964
and including the California Fair Employment and Housing Act of 1980. As such, consultant shall not
discriminate against any person on the basis of race, religious creed, color, national origin, ancestry,
disability, medical condition, marital status, age or sex with respect to hiring, application for
employment, tenure or terms and conditions of employment. Consultant agrees to abide by all of the
Revision: 4-15-08 37
foregoing statutes and regulations.
Legal Action/Attorneys' Fees
If any action at law or in equity is brought to enforce or interpret the provisions of this
Agreement, the prevailing party shall be entitled to reasonable attorney's fees in addition to any other
relief to which he or she may be entitled. Either the Santa Cruz County Superior or Municipal Court
shall have jurisdiction over any such action and that Court shall be authorized to determine which party
is the prevailing party and what amount constitutes reasonable attorneys' fees to be awarded to the
This Agreement shall not be assigned without first obtaining the express written consent of the
Director after approval of the City Council.
This Agreement may not be amended in any respect except by way of a written instrument
which expressly references and identifies that particular Agreement, which expressly states that its
purpose is to amend this particular Agreement, and which is duly executed by the City and Consultant.
Consultant acknowledges that no such amendment shall be effective until approved and authorized by
the City Council, or an officer of the City when the City Council may from time to time empower an
officer of the City to approve and authorize such amendments. No representative of the City is
authorized to obligate the City to pay the cost or value of services beyond the scope of services set forth
in Appendix Two. Such authority is retained solely by the City Council. Unless expressly authorized by
the City Council, Consultant's compensation shall be limited to that set forth in Appendix Two.
Revision: 4-15-08 38
1. Project Manager. Director reserves the right to approve the project manager assigned by
Consultant to said work. No change in assignment may occur without prior written approval of the City.
2. Consultant Service. Consultant is employed to render professional services only and any
payments made to Consultant are compensation solely for such professional services.
3. Licensure. Consultant warrants that he or she has complied with any and all applicable
governmental licensing requirements.
4. Other Agreements. This Agreement supersedes any and all other agreements, either oral
or in writing, between the parties hereto with respect to the subject matter, and no other agreement,
statement or promise related to the subject matter of this Agreement which is not contained in this
Agreement shall be valid or binding.
5. City Property. Upon payment for the work performed, or portion thereof, all drawings,
specifications, records, or other documents generated by Consultant pursuant to this Agreement are, and
shall remain, the property of the City whether the project for which they are made is executed or not. The
Consultant shall be permitted to retain copies, including reproducible copies, of drawings and
specifications for information and reference in connection with the City's use and/or occupancy of the
project. The drawings, specifications, records, documents, and Consultant's other work product shall not
be used by the Consultant on other projects, except by agreement in writing and with appropriate
compensation to the City.
6. Consultant's Records. Consultant shall maintain accurate accounting records and other
written documentation pertaining to the costs incurred for this project. Such records and documentation
shall be kept available at Consultant's office during the period of this Agreement, and after the term of this
Agreement for a period of three years from the date of the final City payment for Consultant's services.
7. Independent Contractor. In the performance of its work, it is expressly understood that
Consultant, including Consultant's agents, servants, employees, and subcontractors, is an independent
contractor solely responsible for its acts and omissions, and Consultant shall not be considered an
employee of the City for any purpose.
8. Conflicts of Interest. Consultant stipulates that corporately or individually, its firm, its
employees and subcontractors have no financial interest in either the success or failure of any project
Revision: 4-15-08 39
which is, or may be, dependent on the results of the Consultant's work product prepared pursuant to this
9. Notices. All notices herein provided to be given, or which may be given by either party
to the other, shall be deemed to have been fully given and fully received when made in writing and
deposited in the United States mail, certified and postage prepaid, and addressed to the respective parties
CITY OF CAPITOLA
420 Capitola Avenue
Capitola, CA 95010
CITY OF CAPITOLA
Richard Hill, City Manager
Approved as to Form:
John G. Barisone, City Attorney
Scope of Services
[To be filled in for each individual agreement.]
Revision: 4-15-08 40
Fees and Payments
For the services performed, the City will pay the Consultant on a time-charge plus expense basis, monthly as
charges accrue, the sum of consultant's salary expenses and non-salary expenses.
Salary expenses include the actual direct pay of personnel assigned to the project (except for routine secretarial and
accounting services) plus payroll taxes, insurance, sick leave, holidays, vacation, and other fringe benefits. The percentage
of compensation attributable to salary expenses includes all of Consultant's indirect overhead costs and fees. For purposes of
this Agreement, Consultant's salary expenses and non-salary expenses will be compensated at the rates set forth in the fee
schedule attached to this appendix and in accordance with the terms set forth therein. Non-salary expenses include travel,
meals and lodging while traveling, materials other than normal office supplies, reproduction and printing costs, equipment
rental, computer services, service of subconsultants or subcontractors, and other identifiable job expenses. The use of
Consultant's vehicles for travel shall be paid at the current Internal Revenue Service published mileage rate.
Salary payment for personnel time will be made at the rates set forth in the attached fee schedule for all time
charged to the project. Normal payroll rates are for 40 hours per week. Consultant shall not charge the City for personnel
overtime salary at rates higher than those set forth in the attached fee schedule without the City's prior written authorization.
Budget estimates of the cost of each phase of the project are as follows:
[TO BE FILLED IN INDIVIDUALLY FOR EACH AGREEMENT]
Variations from the costs for each phase which are justified by statements indicating personnel time expended are
allowed after advance written City approval is obtained, in the manner set forth in the Agreement; however, in no event shall
the total fee charged for the scope of work set forth in Appendix One exceed the budget of $ without additional
advance written City authorization.
Payments shall be made monthly by the City based on itemized invoices from the Consultant which
list actual costs and expenses. Such payments shall be for the invoice amount.
Invoices shall indicate the percentage completion of each work task as identified in the Scope of
Work (Appendix One), the overall percentage of completion of the total required services and the hours
worked by Consultant's staff.
Unless otherwise specified in the attached fee schedule, Consultant's fees shall be payable on
monthly statements. The monthly statements shall detail the time worked by each class of employee and
the expenses incurred for which billing is made. The monthly statements shall contain the following
affidavit signed by a principal of the Consultant's firm:
"I hereby certify as principal of the firm of , that the charge of $
as summarized above and shown in detail on the attachments is fair and reasonable, is in accordance with
the terms of the Agreement dated , , and has not been previously paid."
[TO BE FILLED IN INDIVIDUALLY FOR EACH SPECIFIC PROJECT]
Revision: 4-15-08 41