Monterey Model. The Monterey Model A Functional Partnership Model. What is this presentation about?

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1 The Monterey Model A Functional Partnership Model Hans Uslar Deputy City Manager City of Monterey, CA close and effective partnership between DoD and military communities is absolutely critical not only in the health of communities across the nation, but to the strength of our military as well. Monterey has been a leader in this area. Secretary of Defense Leon E. Panetta, August 6, 2012 Monterey Model What is this presentation about? Example of a public public partnership Contractual relationship between Cities and Army Monterey Model adds value to organization, finances, and City

2 Monterey Model Enhances Mission Effectiveness Reduces the costs at the Defense Language Institute Sells Municipal Services Successful Principles Create / Invent New Legislation Use / Interpret Existing Regulations Work / Identify Win Win Collaborations We provide Municipal Services Street Maintenance Facilities Maintenance Project Management (Design/Construction/Inspection) Traffic Engineering Ballfield Maintenance

3 FAQs 2.2 million square feet maintained 184 Facilities in Monterey 19,000 + work orders annually $14.5 million contract in FY 12 Public and private compensation averaged $30.69 per hour" in June Private industry averaged $28.78 per hour report Meanwhile, "total employer compensation costs for State and local government workers averaged $41.16 per hour Audience Challenge What was this presentation about?

4 Audience Challenge Public Public Partnership?? NO not really! Answer The Monterey Model describes a way of turning a municipal organization into a cost driven municipal corporation Public Public Partnership was the mean to achieve a cost conscientious organization Win for the residents Win for the military Win for the people s money

5 Questions/Comments? Fred Meurer City of Monterey (831) Hans Uslar City of Monterey (831)

6 EQUIPMENT SHARING AGREEMENT This Agreement is entered into as of by and between the and the pursuant to Streets and Highways Code sections 909, 942 and 1803, and Government Code section PURPOSE OF AGREEMENT 1.1 This is an Agreement for the sharing of motor vehicles and equipment (hereinafter referred to as Equipment ) by and between (hereinafter referred to as OWNING AGENCY ) and (hereinafter referred to as NON-OWNING AGENCY ). 1.2 OWNING AGENCY will hereby share Equipment with the NON-OWNING AGENCY under the terms and conditions of this Agreement including the Conditions detailed below and on the subsequent pages, the equipment described and identified on the Attachment A - Details of Equipment, for use at such location, for such guaranteed sharing period and at such reimbursement rates as stated in Attachment B Equipment Reimbursement Rates. 2.0 OWNING AGENCY S REPRESENTATIVE The OWNING AGENCY s representative shall be: Name/Title/Position Phone Number/ 3.0 SHARING PERIOD AND REIMURSEMENT RATES 3.1 Sharing Period: The sharing period shall cover all time from the point the equipment is picked up from OWNING AGENCY (or the point it is delivered to the NON-OWNING AGENCY), until it is returned to OWNING AGENCY, or is picked up from the NON-OWNING AGENCY. 3.2 Reimbursement Rates: Equipment may be shared on a daily, weekly and monthly basis. NON-OWNING AGENCY will reimburse OWNING AGENCY for the use of shared equipment through a reimbursement rate. Daily rates are for a consecutive period of 24 hours or less. Weekly rates are for a consecutive period of seven calendar days, and monthly rates are for a period of 30 calendar days. The number of hours the equipment is operated shall not exceed 10 hours in one (1) day, 50 hours in one (1) week, or 200 hours in one (1) month. 4.0 EQUIPMENT USAGE 4.1 Equipment shared under this Agreement shall be used by employees of the NON- OWNING AGENCY to conduct official business. All drivers shall be appropriately licensed, with a satisfactory driving record. All equipment operators shall be properly trained and qualified to operate the equipment shared under this Agreement. 4.2 The NON-OWNING AGENCY shall use and operate, and permit the use and operation of the equipment in a careful manner and in compliance with all requirements of any governmental authority having jurisdiction, as applicable. 4.3 The NON-OWNING AGENCY shall maintain responsibility for paying all fines and other Equipment Sharing Agreement Page 1 of 7

7 liens that might be incurred against equipment shared under this Agreement, and shall hold the OWNING AGENCY harmless from and against any and all such fines, assessments, fees, charges, expenses, penalties and forfeitures incurred in connection with the use of shared equipment. 4.4 Fueling NON-OWNING AGENCY will be responsible for supplying all fuel used during the share period. Equipment fuel tank(s) will be full at the commencement of the share period, and the tank(s) shall be full when the equipment is returned at the end of the share period. 5.0 EQUIPMENT DELIVERY/PICKUP 5.1 NON-OWNING AGENCY shall be responsible for picking up and returning and equipment shared under this Agreement, unless other arrangements have been made with OWNING AGENCY. Equipment may be picked up and delivered between AM and PM, through (except holidays). 5.2 The OWNING AGENCY s primary contact person for equipment pickup and delivery will be: Name/Title/Position Phone Number/ The OWNING AGENCY s contact shall be notified at least hours in advance of each pickup or delivery, or on the day preceding a pickup or delivery, in cases where the pickup or delivery is to be made prior to AM. 5.3 The OWNING AGENCY will insure that all pre-delivery equipment servicing is performed in accordance with recognized industry standards. 5.4 Equipment Turn-In: Equipment ready for turn-in shall be returned by the NON-OWNING AGENCY within hours of the expiration of the share period. This period does not include weekend days or holidays that occur consecutively to the termination date. 5.5 Inspections: Equipment shared under this Agreement is certified to be in good repair and ready for the intended use. Equipment shared under this Agreement shall be inspected by representatives of the OWNING AGENCY and of the NON-OWNING AGENCY at the time of delivery/pickup, and again at the time of turn-in. The results of these inspections shall be documented on an equipment condition assessment form (Attachment A). The form shall document the condition of all major components of the equipment. Digital photographs of the equipment shall also be taken at the time of pickup to insure that existing damage is documented appropriately. 6.0 MAINTENANCE AND REPAIRS 6.1 NON-OWNING AGENCY shall be responsible for performing all required maintenance (such as fluid level checks and daily pre-trip inspections) during the share period, except: BIT inspections Scheduled preventive maintenance (PM) inspections Equipment Sharing Agreement Page 2 of 7

8 6.2 NON-OWNING AGENCY shall be responsible for performing minor repairs and adjustments as required to keep the equipment in safe operating condition during the share period. Minor repairs may consist of, but are not limited to: the replacement of defective lighting components or mirrors, tightening of fasteners, adjustment of hinges or latches, replacing leaky hydraulic hoses, adding make-up oil, and adding air to tires. These repairs will be made by qualified personnel; specifically, those persons or contractors employed by the NON-OWNING AGENCY to maintain and repair the NON- OWNING AGENCY s own fleet equipment. 6.3 In all cases, NON-OWNING AGENCY shall inform OWNING AGENCY prior to commencing any repairs considered to be other than minor. Repair issues shall be reported to: at Name/Title Phone 6.4 NON-OWNING AGENCY may request approval to charge OWNING AGENCY for the cost of any repair that is not the result of damage or negligence by NON-OWNING AGENCY. Charges will be accepted at the OWNING AGENCY s discretion, and payment will be in the form of a credit against the reimbursement rate. The OWNING AGENCY reserves the right to cancel the share, or to substitute another equipment unit of the same type in lieu of authorizing repairs. 6.5 The NON-OWNING AGENCY shall be responsible for the replacement of damaged or worn-out ground engaging tools such as cutting edges and bits. 6.6 The NON-OWNING AGENCY shall be responsible for the replacement of any windshields that are cracked or damaged during the share period. 6.7 Tires: In accordance with item 5.5 above, the tires on shared equipment shall be inspected and determined to be sound at the commencement of the share period. Tires shall have adequate tread depth to insure safe and legal operation during the share period. NON- OWNING AGENCY shall be responsible for all tire repairs during the share period, and shall replace any damaged tires that cannot be safely repaired. 7.0 EQUIPMENT DAMAGE 7.1 The NON-OWNING AGENCY will be responsible for the cost of repairing all damage incurred during the share period that is not considered to be normal wear and tear. 7.2 Definitions: At a minimum, the following definitions shall apply to this Agreement Normal wear and tear is defined as dents, dings, paint chips, or scratches three inches (3 ) or less in size, pitted (but not cracked) windshields, and interior wear such as soiled carpets and seats Excess wear and tear is defined as dents, dings, paint chips, or scratches more than three inches (3 ) in size, cracked or punctured bumpers, chipped or cracked windshields, interior holes, burns, rips, tears, or stains requiring heavy cleaning or replacement of fabric, interior damage such as gouged steering wheels or dashboards, missing equipment, and any exterior or interior damage attributable to collision, as well as mechanical repairs resulting from damage or negligence A Total Loss is defined as: the estimated cost to repair the equipment is equal to at least 80 percent of the retail market value of the equipment prior to the Equipment Sharing Agreement Page 3 of 7

9 damage as determined by an independent appraisal. 7.3 Equipment Damage Repair Due to Accidents: The OWNING AGENCY will be notified immediately if equipment shared under this Agreement is involved in an accident. The NON-OWNING AGENCY shall be responsible for repairing all equipment damage due to accidents. In cases where equipment damage is caused by another party and that party assumes responsibility, the NON-OWNING AGENCY shall arrange to have the equipment repaired and shall seek reimbursement from the other party s insurance carrier. The OWNING AGENCY will be notified prior to the commencement of any repairs, and reserves the right to accept or reject the repairs upon inspection. In the event that the other party s insurance company does not accept full responsibility, the NON-OWNING AGENCY shall be responsible for covering any deficits remaining. NON-OWNING AGENCY shall observe and comply with all applicable laws, ordinances, codes and regulations of governmental agencies, including federal, state, municipal, and local governing bodies, having jurisdiction over the scope of services covered within this Agreement, including all applicable provisions of the California Occupational Safety and Health Act. NON-OWNING AGENCY shall indemnify and hold County harmless from any and all liability, fines, penalties and consequences from any of NON-OWNING AGENCY s failures to comply with such laws, ordinances, codes and regulations. Accidents: If a death, serious personal injury or substantial property damage occurs in connection with NON-OWNING AGENCY s use of equipment under this Agreement, NON-OWNING AGENCY shall immediately notify Name/Title by telephone at. Phone NON-OWNING AGENCY shall promptly submit to Name/Title a written report, in such form as may be required by OWNING AGENCY, of all accidents which occur in connection with this Agreement. This report must include the following information: (1) name and address of the injured or deceased person(s); (2) name and address of NON-OWNING AGENCY s assignee, if any; (3) name and address of NON- OWNING AGENCY s liability insurance carrier, unless self-insured; and (4) a detailed description of the accident and whether any of OWNING AGENCY s staff were involved. NON-OWNING AGENCY further agrees to take all reasonable steps to preserve all physical evidence and information which may be relevant to the circumstances surrounding a potential claim, while maintaining public safety, and to grant to the OWNING AGENCY the opportunity to review and inspect such evidence, including the scene of the accident. 7.4 Equipment Damage Resulting in a Total Loss: In cases of equipment damage resulting in a total loss, the NON-OWNING AGENCY shall be responsible for covering the loss. The OWNING AGENCY shall submit an invoice to the NON-OWNING AGENCY for any equipment determined to be a Total Loss. The amount of the invoice shall be equal to 80 percent of the retail market value of the equipment prior to the damage as determined by an independent appraisal, and as agreed upon by the NON-OWNING AGENCY at the time the share is initiated. In cases where equipment damage is caused by another party and that party assumes responsibility, the NON-OWNING AGENCY shall seek reimbursement from the other party s insurance carrier. If the reimbursement is greater than 80 percent of the retail market value prior to the damage, the entire amount of the reimbursement will be consigned to the OWNING AGENCY. Equipment Sharing Agreement Page 4 of 7

10 In the event that the other party s insurance company does not accept full responsibility, the NON-OWNING AGENCY shall be responsible for covering any deficits remaining. 7.5 Equipment Damage Resulting from Excess Wear and Tear: When the NON-OWNING AGENCY returns equipment to the OWNING AGENCY at the end of the equipment s share period, an assessment for excess wear and tear shall be made at the time the equipment is returned. If excess wear and tear damage exists, the OWNING AGENCY shall submit an invoice to the NON-OWNING AGENCY for the excess wear and tear damage. The invoiced repair amounts shall be obtained from a reputable industry guide such as the Mitchell Collision Estimating and Reference Guide. Excess wear and tear shall be fully documented, including clear photographic evidence of the damage. 7.6 Stolen Equipment: The NON-OWNING AGENCY shall assume responsibility if shared equipment is stolen while in its control. The NON-OWNING AGENCY shall be liable to pay the OWNING AGENCY 80 percent of the retail market value of the equipment as determined by an independent appraisal, and as agreed upon by the NON-OWNING AGENCY at the time the share is initiated. If the stolen equipment is recovered subsequent to the delivery of the replacement equipment, the OWNING AGENCY may choose to consign the recovered equipment to the NON-OWNING AGENCY, or refund a portion of the payment made by the NON- OWNING AGENCY, at its discretion. The value of any refunds will be determined by an independent appraisal of the recovered equipment. 8.0 EQUIPMENT IDENTIFICATION Equipment shared under this Agreement may or may not be equipped with seals or logos identifying them as property of. If equipment is equipped with such logos, the OWNING AGENCY will obscure them with magnetic sheets prior to the commencement of the share period. The NON-OWNING AGENCY shall insure that their own logos are affixed to the equipment at all times during the share period, and at no time during the share period shall logos be exposed. 9.0 INSURANCE NON-OWNING AGENCY shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the use of the equipment shared under this Agreement, or demonstrate to OWNING AGENCY that NON-OWNING AGENCY is equivalently selfinsured. Insurance will be provided in the form and amounts shown in Exhibit - Minimum Insurance Requirements. NON-OWNING AGENCY shall provide verification of coverage at the time equipment prior to final execution of this Agreement INVOICING AND PAYMENTS 10.1 The OWNING AGENCY shall submit invoice(s) to NON-OWNING AGENCY monthly; showing payments due for all equipment shared during the previous month Equipment that is in the NON-OWNING AGENCY s possession for the entire month shall be invoiced at the full monthly amount shown in Attachment B. Equipment that is in the NON-OWNING AGENCY s possession for less than a full month shall be invoiced at a pro-rata amount based on the number of days the equipment was in the NON-OWNING AGENCY s possession, using a combination of weekly and daily rates as appropriate. A month shall be defined as thirty (30) days for the purposes of this calculation. Equipment Sharing Agreement Page 5 of 7

11 10.3 Charges shall not accrue until the NON-OWNING AGENCY accepts delivery of the equipment, and shall cease upon return of the equipment to the OWNING AGENCY WARRANTY As the OWNING AGENCY is neither a manufacturer nor a supplier of the equipment to be shared, the OWNING AGENCY makes no warranties, express or implied, including, without limitation, the condition of the equipment, its design, its capacity, its performance, its construction, its workmanship, or its fitness for any particular use. All equipment is shared on an as is basis. OWNING AGENCY shall not be held liable in any event to NON-OWNING AGENCY for any loss, delay or damage of any kind resulting from defects in, or inefficiency of, equipment shared under this Agreement, or accidental breakage thereof INDEPENDENT CONTRACTOR NON-OWNING AGENCY is an independent contractor and shall not for any purpose be deemed to be an employee, agent, or other representative of the OWNING AGENCY. NON-OWNING AGENCY shall not assign, sublet, transfer, or otherwise substitute its interest in this Agreement, or any of its obligations hereunder, without the prior written consent of the OWNING AGENCY. Notwithstanding the foregoing, if the OWNING AGENCY determines that pursuant to state and federal law NON-OWNING AGENCY is an employee for purposes of income tax withholding, OWNING AGENCY may upon two week s notice to NON-OWNING AGENCY, withhold from payments to NON-OWNING AGENCY hereunder federal and state income taxes and pay said sums to the federal and state governments 13.0 INDEMNITY The NON-OWNING AGENCY shall indemnify OWNING AGENCY, its, elected officials, officers, employees and agents against, and hold OWNING AGENCY harmless from, any and all claims, actions, suits, proceedings, costs, expenses, damages and liabilities, including attorney s fees, arising out of, connected with, or resulting from the equipment or the sharing thereof; including without limitation, the manufacture, selection, delivery, leasing, sharing, control, possession, use, operation, maintenance or return of the equipment, except when solely resulting from the OWNING AGENCY s own negligence or recklessness. NON-OWNING AGENCY shall further indemnify OWNING AGENCY, its, elected officials, officers, employees and agents, and hold OWNING AGENCY harmless from all loss and damage to the equipment during the share period, except when solely resulting from the OWNING AGENCY s own negligence or recklessness. NON-OWNING AGENCY recognizes and agrees that included in this indemnity clause, but not by way of limitation, is the NON-OWNING AGENCY s assumption of any and all liability for injury, disability and death of workers and other persons caused by the operation, use, control, handling or transportation of the equipment during the share period, except when solely resulting from the OWNING AGENCY s own negligence or recklessness. [OPTIONAL] In the event that NON-OWNING AGENCY or any employee, agent, or subcontractor of NON-OWNING AGENCY is determined by a court of competent jurisdiction or the Alameda County Employees Retirement Association (ACERA) or California Public Employees Retirement System (PERS) to be eligible for enrollment in ACERA and PERS as an employee of OWNING AGENCY, NON-OWNING AGENCY shall indemnify, defend, and hold harmless OWNING AGENCY for the payment of any employee and/or Equipment Sharing Agreement Page 6 of 7

12 employer contributions for ACERA and PERS benefits on behalf of NON-OWNING AGENCY or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of OWNING AGENCY WORKERS COMPENSATION NON-OWNING AGENCY shall provide Workers' Compensation insurance, as applicable, at NON-OWNING AGENCY s own cost and expense and further, neither the NON- OWNING AGENCY nor its carrier shall be entitled to recover from OWNING AGENCY any costs, settlements, or expenses of Workers' Compensation claims arising out of this Agreement ENTIRE AGREEMENT This document constitutes the entire Agreement between OWNING AGENCY and NON- OWNING AGENCY; and it shall not be amended, altered or changed except by a written Amendment signed by the parties hereto TERMINATION: OWNING AGENCY has and reserves the right to terminate this Agreement upon 30 days notice to NON-OWNING AGENCY CHOICE OF LAW This Agreement shall be governed by the laws of the State of California SUBLEASING NON-OWNING AGENCY shall not sub-lease or allow other than its own employees to use equipment shared under this Agreement SIGNATORY By signing this Agreement, signatory warrants and represents that he/she executed this Agreement in his/her authorized capacity and that by his/her signature on this Agreement, he/she or the entity upon behalf of which he/she acted, executed this Agreement. For : Signature Name Date Title For : Signature Name Date Title Equipment Sharing Agreement Page 7 of 7

13 H. R SEC RATING CHAINS FOR SYSTEM PROGRAM MANAGERS. The Secretary of the Air Force, in managing system program management responsibilities for sustainment programs not assigned to a program executive officer or a direct reporting program manager, shall comply with the Department of Defense Instructions regarding assignment of program responsibility. Subtitle D Readiness SEC INTERGOVERNMENTAL SUPPORT AGREEMENTS WITH STATE AND LOCAL GOVERNMENTS. (a) AGREEMENTS AUTHORIZED. Chapter 137 of title 10, United States Code, is amended by adding at the end the following new section: Intergovernmental support agreements with State and local governments (a) IN GENERAL. (1) The Secretary concerned may enter into an intergovernmental support agreement with a State or local government to provide, receive, or share installation-support services if the Secretary determines that the agreement will serve the best interests of the department by enhancing mission effectiveness or creating efficiencies or economies of scale, including by reducing costs. (2) Notwithstanding any other provision of law, an intergovernmental support agreement under paragraph (1) (A) may be entered into on a sole-source basis; (B) may be for a term not to exceed five years; and (C) may use, for installation-support services provided by a State or local government, wage grades normally paid by that State or local government. (3) An intergovernmental support agreement under paragraph (1) may only be used when the Secretary concerned or the State or local government, as the case may be, providing the installationsupport services already provides such services for its own use. (b) EFFECT ON FIRST RESPONDER ARRANGEMENTS. The authority provided by this section and limitations on the use of that authority are not intended to revoke, preclude, or otherwise interfere with existing or proposed mutual-aid agreements relating to police or fire protection services or other similar first responder agreements or arrangements. (c) AVAILABILITY OF FUNDS. Funds available to the Secretary concerned for operation and maintenance may be used to pay for such installation-support services. The costs of agreements under this section for any fiscal year may be paid using annual appropriations made available for that year. Funds received by the Secretary as reimbursement for providing installation-support services pursuant to such an agreement shall be credited to the appropriation or account charged with providing installation support. (d) EFFECT ON OMB CIRCULAR A-76. The Secretary concerned shall ensure that intergovernmental support agreements authorized by this section are not used to circumvent the requirements of Office of Management and Budget Circular A-76 regarding public-private competitions. (e) DEFINITIONS. In this section:

14 H. R (1) The term installation-support services means those services, supplies, resources, and support typically provided by a local government for its own needs and without regard to whether such services, supplies, resources, and support are provided to its residents generally, except that the term does not include security guard or fire-fighting functions. (2) The term local government includes a county, parish, municipality, city, town, township, local public authority, school district, special district, and any agency or instrumentality of a local government. (3) The term State includes the District of Columbia, the Commonwealths of Puerto Rico and the Northern Mariana Islands, American Samoa, Guam, and the United States Virgin Islands, and any agency or instrumentality of a State.. (b) CLERICAL AMENDMENT. The table of sections at the beginning of such chapter is amended by adding at the end the following new item: Intergovernmental support agreements with State and local governments.. SEC EXPANSION AND REAUTHORIZATION OF PILOT PROGRAM FOR AVAILABILITY OF WORKING-CAPITAL FUNDS FOR PRODUCT IMPROVEMENTS. (a) EXPANSION. Section 330 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law ; 122 Stat. 68) is amended (1) in subsection (a), by inserting, the Secretary of the Navy, and the Secretary of the Air Force (in this section referred to as the Secretary concerned ) after the Secretary of the Army ; (2) in subsection (d) (A) by inserting by the Secretary concerned after submitted ; and (B) by inserting by the Secretary concerned after used ; and (3) in subsection (e) (A) in paragraph (1), by striking the Assistant Secretary of the Army for Acquisition, Logistics, and Technology, in consultation with the Assistant Secretary of the Army for Financial Management and Comptroller, and inserting the Secretary concerned ; and (B) in paragraph (2), by striking the Assistant Secretary of the Army for Acquisition, Logistics, and Technology and inserting the Secretary concerned. (b) COVERED PRODUCT IMPROVEMENTS. Subsection (b) of such section is amended (1) by inserting retrofit, modernization, upgrade, or rebuild of a before component ; and (2) by striking reliability and maintainability and inserting reliability, availability, and maintainability. (c) LIMITATION ON CERTAIN PROJECTS. Subsection (c)(1) of such section is amended by striking performance envelope and inserting capability. (d) REPORTING REQUIREMENT. Subsection (e) of such section is amended (1) in paragraph (2), by striking 2012 and inserting 2017 ; and