HomeMy WebLinkAbout09/07/2010, C9 - PUBLIC WORKS DEPARTMENT ASSESSMENT council ° Sept 7, 2010
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CITY OF SAN LUIS OBISPO
FROM: Jay D. Walter, Director of Public Works
SUBJECT: PUBLIC WORKS DEPARTMENT ASSESSMENT
RECOMMENDATIONS
1. Approve the use and transfer of$42,900 from the City Manager's Ventures & Contingencies
account to the Public Works Administration operating budget for contract services to perform
an assessment of the Public Works Department as identified in the City Manager's goals for
2010-11..
2. Authorize the City Manager to execute an agreement in the amount of$39,000 with Matrix
Consulting Group to perform the assessment.
DISCUSSION
Background
Council's direction to the City Manager in establishing her goals for 2010-11 was to conduct an
organizational and management analysis of the Public Works Department through the use of a
consultant. As a result of this analysis, the consultant is to develop an assessment of existing
operations, staffing, and service levels, along with an implementation plan for improvement.
The Consultant will review the Public Works Department organization, structure, and methods of
service delivery. The Consultant will evaluate the Public Works Department to determine
whether it is properly staffed with sufficient, trained personnel, and properly organized to
efficiently carry out its duties. The consultant will conduct interviews, review documents and
processes, make comparisons with accepted standards and organizations, and compile the
information into a final report with strategies for improvement. The Department will then use the
report to make changes to improve operations, customer service, management effectiveness,
organization, and strategic direction for the future.
Project Scope
The following areas in all programs of the Department will be evaluated by the consultant and
include a proposal for change or a recommendation to continue with current practices.
1. Core Services: Identify the core and high priority services performed by Public Works to
establish the framework for future structure and operations.
2. Organizational and Management Structure from top to bottom: Reporting
relationships, span of control, staff authority, staffing levels (including vacant positions),
age distribution.
3. Outsourcing and Insourcing Opportunities: Identify key opportunities by function,
other City or private organization comparisons.
2010 Public Works Assessment Page 2
4. Operations: Process efficiency, resource deficiency or redundancy, new equipment or
technology opportunities.
5. Information Technology: Leveraging technology for operational improvements.
6. Best Management Practices and Performance Measures: Identification of
performance management tools and professional organizations,benchmarking against
accepted standards and identifying current levels of service.
7. Trend Analysis: Identifying the most likely trends (positive and negative)that the
Department will face in the future..
8. Community Relations and Customer Service: Internal and external customers, service
request program efficiencies, response time evaluation, opportunities for changes in
service delivery, cost reductions, improvements, metrics of customer satisfaction.
9. Explore other Issues that are Discovered: If during the course of interviews an issue is
identified that involves another department, initiate discussions to fully understand it.
10. Recommendations for Change: Prioritized recommendations, cost/savings associated
with each recommendation, suggested timeline, implementation plan.
RFP Process and Project Schedule
The Request for Proposals (RFP) for the Public Works Department Management and
Performance Audit was issued on June 14, 2010. Proposals were due on July 12, 2010. Staff
received sixteen proposals from consultants across the country. The proposals were reviewed by
a four-person staff panel consisting of members of Public Works and City Administration. The
panel ranked the candidate firms based on the quality of the submitted proposal, the consultant's
understanding of the work, and the consultant's experience in performing similar studies.
Each proposal received a cumulative score based on the above criteria, with a maximum score of
100 possible. The results of the City staff panel evaluations are summarized in the following table:
Average Evaluation
Consultant Score
1. Matrix Consulting Group 75.8
2. RNR Consulting 69.4
3. Harvey Rose 63.2
4. Bucknam &Associates Inc. 62.2
5. FCS Group Inc. 60.4
6. Novak Consulting Group 59.8
7. MGT of America, Inc. 57.4
8. Woolpert 57.4
9. LA Consulting, Inc. 57.0
10. Moss Adams LLP 50.6
11. Capital Partnerships, Inc. 45.8
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2010 Public Works Assessment Page 3
12. CGR Management Consultants 45.2
13. Performance Management Partners 45.0
14. AKT 44.4
15. Koff&Associates 28.8
16. Scott Chadd 27.4
Staff then reviewed the cost proposals from each firm and, based on the reasonable cost of
services proposed by Matrix Consulting Group and Bucknam & Associates, scheduled follow-up
interviews with these two firms. After conducting the interviews, staff was convinced that Matrix
possessed a better understanding of the full scope of the services required. Matrix staff had
extensive experience performing assessments of other Public Works.departments in cities around
the country and in California. Staff is recommending that an agreement be executed with Matrix
Consulting Group, based on the high ranking from the panel, the face-to-face interview, and the
affordable cost of services.
CONCURRENCES
City Manager Katie Lichtig and Interim Finance & Information Technology Director Mary
Bradley both expressed satisfaction with the recommended .consultant based on studies
performed for communities they previously worked for.
FISCAL IMPACT
The cost proposals from the sixteen consultants ranged from a low of $32,500 to a high of
$281,000. The cost of the assessment in the proposal from Matrix Consulting Group is $39,000,
inclusive of all costs needed to perform the work. Staff is recommending a 10 % contingency
fund be included for the project, in case unexpected additional services are required, for a total of
$42,900. Funding is proposed to come from the City Manager's Ventures & Contingencies fund.
There is currently a balance of$50,830 to support this project. Any remaining funds following
the conclusion of the project will be returned via a Budget Amendment Request to the Ventures
and Contingencies account.
Fiscal Impact Summary
Program change opo
Ventures& Contingencies 26100-7303 $ 50,830 $ (42,900) $ 7,930
PW Contract Services 50100-7227 $ - $ 42,900 $ 42,900
TOTAL $ 509830 $ - $ 50,830
ALTERNATIVE
Deny or defer contract award The City Council could chose to deny or defer the Management
and Performance Audit services for the Public Works Department. Staff does not recommend
this alternative as this activity was requested by the Council to confirm Public Works is
delivering the right services as cost effectively as possible.
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2010 Public Works Assessment/ Page 4
ATTACHMENTS
1. Project Plan
2. Agreement with Matrix Consulting Group
Available in the Council Reading File:
Request for Proposals
Matrix Consulting Group proposal
T:\Council Agenda ReportsTublic Works CAR\2010Wdmin\Managcment Assessment\CAR Matrix Rpt.doc
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Attachment l
iPublic Works Organizational an. Management
PURPOSE
Through the use of a consultant, .conduct an organizational and management analysis of the
Public Works Department. As a result of this analysis, the consultant shall develop an assessment
of existing operations, staffing, and service levels, along with an implementation plan, which the
Department will use to implement any recommended changes proposed to result in
improvements in customer service, management effectiveness, organization and strategic
direction for the future.
OBJECTIVES AND DELIVERABLES
1. Conduct analysis
2. Report on existing service assessment
3. Develop recommendations on a five year strategy for Public Works.
4. Implementation Plan
PROJECT STRATEGY AND SCOPE
1. Conduct Analysis
The Consultant will review the Public Works Department organization and structure. The
Consultant will evaluate the Public Works Department to determine whether it is properly staffed
with sufficient, trained personnel, and properly organized to efficiently carry out its duties. The
consultant will be conducting interviews, reviewing documents and processes, making
comparisons with accepted standards and organizations, and compiling the information into a
final report with strategies for improvement.
2. Ensure Involvement of Public Works employees
Use multiple communication methods,but predominately face to face interviews or meetings.
Provide pre-meeting information via email. Allow time for staff members to review findings,but
create deadlines for input.
Project Scope
The following areas for all programs in the Department will be evaluated by the consultant
including a review of existing and a proposal for changes, or a recommendation to continue with
current practices.
1. Core Services: Identify the core and high priority services performed by Public Works
to establish the framework for future structure and operations.
2. Organizational and Management Structure from top to bottom: Reporting
relationships, span of control, staff authority, staffing levels (including vacant positions),
age distribution.
3. Outsourcing and Insourcing Opportunities: Identify key opportunities by function,
other City or private organization comparisons.
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Organizational and Management Analysis: Project Plan Aiftachmnt 1
4. Operations: Process efficiency, resource deficiency or redundancy, new equipment or
technology opportunities.
5. Information Technology: Leveraging technology for operational improvements.
6. Best Management Practices and Performance Measures: Identification of
performance management tools and professional organizations,benchmarking against
accepted standards and identifying current levels of service.
7. Trend Analysis: Identifying the most likely trends (positive and negative) that the
department will face in the future.
8. Community Relations and Customer Service: Internal and external customers, service
request program efficiencies,response time evaluation, opportunities for changes in
service delivery, cost reductions, improvements, metrics of customer satisfaction.
. 9. Explore other Issues that are Discovered: If during the course of interviews an issue is
identified that involves another department, initiate discussions to fully understand it.
10. Recommendations for Change: Prioritized recommendations, cost/savings associated
with each recommendation, suggested timeline, implementation plan.
KEY PROJECT ASSUMPTIONS
1. Process will be identified and embraced by staff as positive.
2. Public Works staff will choose to be engaged and involved in the evaluation.
3. The consultant will be provided all of the information they need to perform their work.
4. The Consultant hired has an understanding of public works type operations and
customers and not an exclusively organizational norms background.
5.. City Manager's Office and Public Works staff will work collaboratively to implement
this project.
PROJECT CONSTRAINTS AND LIMITATIONS
1. It will be hard for staff to devote time to the evaluation as other important job functions
will certainly come up.
2. The consultant must complete the analysis, make recommendations and provide them in
final form by May 2011.
3. Some employees may not want to participate, or will view it as a management tool to
initiate layoffs.
4. Some recommendations may not be implementable because of resource constraints.
PROJECT ORGANIZATION AND TEAM
Staff Providing Support to the Consultant
1. Public Works Director
2. Acting Assistant City Manager
3. Other Department Heads as needed
4. Public Works Managers and Supervisors
5. Public Works staff
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Organizational and Management Analysis_: Project Plan age
6. Public Works customers in other Departments (for example Parks and Recreation and
Utilities).
7. Public Works customers in the development review process.
STAKEHOLDERS
The Stakeholders for this project include the following: the City Council, Public Works
Department and other City department employees, and the community.
PROJECT TASKS AND SCHEDULE
Schedule of milestones
Date Task-
June 14, 2010 Dissemination of the RFP
July 12, 2010 Proposals due to the City of San Luis Obispo
July 26, 2010 Interviews conducted with short list candidates
August 16, 2010 Award of agreement_
Sept-Dec 2010 Analysis b consultts
December 2010 Draft report submitted for review
January 2011 Consultant revisions
March 2011 Draft Final report discussed with City Manager
April 2011 Draft final report discussed with Public Works staff
May 2011 Final report due to City Manager
July 2011 Begin to implement recommendations
PROJECT RESOURCES
1. Third party facilitator funding possibly from Ventures and Contingencies or from the
unappropriated General Fund reserve because this is a Council initiated objective for the
City Manager.
2. Parks and Recreation Organizational Assessment
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Attachment 2
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo
on 2010 by and between the CITY OF SAN LUIS OBISPO, a municipal
corporation, hereinafter referred to as City, and MATRIX CONSULTING GROUP hereinafter
referred to as Consultant.
WITNESSETH
WHEREAS, on June 14, 2010, the City requested proposals for the Public Works
Department Management and Performance Audit.
WHEREAS, pursuant to said request, Consultant submitted a proposal that was accepted
by City for said services.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
1. Term. The term of this Agreement shall be from the date this Agreement is made and .
entered, as first written above, until acceptance or completion of said services.
2. Start and Completion of Work. Work on this project shall begin within 30 calendar days
after contract execution and shall be completed in accordance with the Consultant's
submitted phase/task schedule.
3. Work Delays. Should the Consultant be obstructed or.delayed in the work required to be
done hereunder by changes in the work or by any default, act, or omission of the City, or by
strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials,
equipment, or labor due to federal government restrictions arising out of defense or war
programs, then the time of completion may, at the City's sole option, be extended for such
periods as may be agreed upon by the City and the Consultant. In the event that there is
insufficient time to grant such extensions prior to the completion date of the contract, the City
may, at the time of acceptance of the work, waive liquidated damages that may have accrued
for failure to complete on time, due to any of the above, after hearing evidence as to the
reasons for such delay, and making a finding as to the causes of same.
4. Termination. If, during the term of the contract, the City determines that the Consultant is
not faithfully abiding by any term or condition contained herein, the City may notify the
Consultant in writing of such defect or failure to perform. This notice must give the
Consultant a 10 (ten) calendar day notice of time thereafter in which to perform said work or
cure the deficiency.
If the Consultant has not performed the work or cured the deficiency within the ten days
specified in the notice, such shall constitute a breach of the contract and the City may
terminate the contract immediately by written notice to the Consultant to said effect.
Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights
under the contract except, however, any and all obligations of the Consultant's surety shall
remain in full force and effect, and shall not be extinguished, reduced, or in any manner
waived by the termination thereof.
In said event, the Consultant shall be entitled to the reasonable value of its services
performed from the beginning date in which the breach occurs up to the day it received the
City's Notice of Termination, minus any offset from such payment representing the City's
damages from such breach. "Reasonable value" includes fees or charges for goods or
services as of the last milestone or task satisfactorily delivered or completed by the
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Consultant as may be set forth in the Agreement payment schedule; compensation for any
other work, services or goods performed or provided by the Consultant shall be based solely
on the City's assessment of the value of the work-in-progress in completing the overall
workscope.
The City reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the City's sole discretion, so as to
permit a full and complete accounting of costs. In no event, however, shall the Consultant be
entitled to receive in excess of the compensation quoted in its proposal.
If, at any time during the term of the contract, the City determines that the project is not
feasible due to funding shortages or unforeseen circumstances, the City reserves the right to
terminate the contract. Consultant will be paid compensation due and payable to the date of
termination.
5. Ability to Perform. The Consultant warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment; labor, materials, and licenses necessary to
carry out and complete the work hereunder in compliance with any and all applicable federal,
state, county, city, and special district laws, ordinances, and regulations.
6. Sub-contract Provisions. No portion of the work pertinent to this contract shall be
subcontracted without written authorization by the City, except that which is expressly
identified in the Consultant's proposal. Any substitution of sub-consultants must be approved
in writing by the City. For any sub-contract for services in excess of$25,000, the subcontract
shall contain all provisions of this agreement.
7. Contract Assignment. The Consultant shall not assign, transfer, convey or otherwise
dispose of the contract, or its right, title or interest, or its power to execute such a contract to
any individual or business entity of any kind without the previous written consent of the City.
8. Inspection. The Consultant shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Consultant are being performed in accordance with the
requirements and intentions of this contract. All work done and all materials furnished, if any,
shall be subject to the City's inspection and approval. The inspection of such work shall not
relieve Consultant of any of its obligations to fulfill its contract requirements.
9. Record Retention and Audit. For the purpose of determining compliance with various laws
and regulations as well as performance of the contract, the Consultant and sub-consultants
shall maintain all books, documents, papers, accounting records and other evidence
pertaining to the performance of the contract, including but not limited to the cost of
administering the contract. Materials shall be made available at their respective offices at all
reasonable times during the contract period and for three years from the date of final
payment under the contract. Authorized representatives of the City shall have the option of
inspecting and/or auditing all records. For Federally funded projects, access to records shall
also include authorized representatives of the State.and Federal government. Copies shall
be furnished if requested
10. Conflict of Interest. The Consultant shall disclose any financial, business, or other
relationship with the City that may have an impact upon the outcome of this contract, or any
ensuing City construction project. The Consultant shall also list current clients who may have
a financial interest in the outcome of this contract, or any ensuing City construction project
which will follow.
The Consultant covenants that it presently has no interest, and shall not acquire any
interest—direct, indirect or otherwise—that would conflict in any manner or degree with the
performance of the work hereunder. The Consultant further covenants that, in the
Management&Performance Audit– Public Works 2
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performance of this work, no sub-consultant or person having such an interest shall be
employed. The Consultant certifies that no one who has or will have any financial interest in
performing this work is an officer or employee of the City. It is hereby expressly agreed that,
in the performance of the work hereunder, the Consultant shall at all times be deemed an
independent Consultant and not an agent or employee of the City.
11. Rebates, Kickbacks or Other Unlawful Consideration. The Consultant warrants that this
contract was not obtained or secured through rebates,, kickbacks or other unlawful
consideration, either promised or paid to any City employee. For breach or violation of the
warranty, the City shall have the right in its discretion; to terminate the contract without
liability; to pay only for the value of the work actually performed; to deduct from the contract
price; or otherwise recover the full amount of such rebate, kickback or other unlawful
consideration.
12. Covenant Against Contingent Fees. The Consultant warrants by execution of this contract
that no person or selling agency has been employed, or retained, to solicit or secure this
contract upon an agreement or understanding, for a commission, percentage, brokerage, or
contingent fee, excepting bona fide employees or bona fide established commercial or selling
agencies maintained by the Consultant for the purpose of securing business. For breach or
violation of this warranty, the City has the right to annul this contract without liability; pay only
for the value of the work actually performed, or in its discretion, to deduct from the contract
price or consideration, or otherwise recover the full amount of such commission, percentage,
brokerage, or contingent fee.
13. Compliance with Laws and Wage Rates. The Consultant shall keep itself fully informed of
and shall observe and comply with all applicable state and federal laws and county and City
of San Luis Obispo ordinances, regulations and adopted codes during its performance of the
work. This includes compliance with prevailing wage rates and their payment in accordance
with California Labor Code. For purposed of this paragraph, "construction" includes work
performed during the design and preconstruction phases of construction, including but not
limited to, inspection and land surveying work.
14. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Consultant is required to pay.
15. Permits, Licenses and Filing Fees. The Consultant shall procure all permits and licenses,
pay all charges and fees, and file all notices as they pertain to the completion of the
Consultant's work. The City will pay all application fees for permits required for the
completion of the project, including building and regulatory permit application fees.
Consultant will provide a 10 day notice for the City to issue a check.
16. Safety Provisions. The Consultant shall conform to the rules and regulations pertaining to
safety established by OSHA and the California Division of Industrial Safety.
17. Public and Employee Safety. Whenever the Consultant's operations create a condition
hazardous to the public or City employees, it shall, at its expense and without cost to the City,
furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and
other devices and take such other protective measures as are necessary to prevent
accidents or damage or injury to the public and employees.
18. Preservation of City Property. The Consultant shall provide and install suitable
safeguards, approved by the City, to protect City property from injury or damage. If City
property is injured or damaged resulting from the Consultant's operations, it shall be replaced
or restored at the Consultant's expense. The facilities shall be replaced or restored to a
condition as good as when the Consultant began work.
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19. Immigration Act of 1986. The Consultant warrants on behalf of itself and all sub-
consultants engaged for the performance of this work that only persons authorized to work in
the United States pursuant to the Immigration Reform and Control Act of 1986 and other
applicable laws shall be employed in the performance of the work hereunder.
2.0. Consultant Non-Discrimination. In the award of subcontracts or in performance of this
work, the Consultant agrees that it will not engage in, nor permit such sub-consultants as it
may employ, to engage in discrimination in employment of persons on any basis prohibited
by State or Federal law.
21. Accuracy of Specifications. The specifications for this project are believed by the City to
be accurate and to contain no affirmative misrepresentation or any concealment of fact.
Consultants are cautioned to undertake an independent analysis of any test results in the
specifications, as City does not guaranty the accuracy of its interpretation of test results
contained in the specifications package. In preparing its proposal, the Consultant and all
sub-consultants named in its proposal shall bear sole responsibility for proposal preparation
errors resulting from any misstatements or omissions in the specifications that could easily
have been ascertained by examining either the project site or accurate test data in the City's
possession. Although the effect of ambiguities or defects in the specifications will be as
determined by law, any patent ambiguity or defect shall give rise to a duty of Consultant to
inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or
defect to be construed against the Consultant. An ambiguity or defect shall be considered
patent if it is of such a nature that the Consultant, assuming reasonable skill, ability.and
diligence on its part, knew or should have known of the existence of the ambiguity or defect.
Furthermore, failure of the Consultant or sub-consultants to notify City in writing of
specification defects or ambiguities prior to proposal submittal shall waive any right to assert
said defects or ambiguities subsequent to submittal of the proposal.
To the extent that these specifications constitute performance specifications, the City shall
not be liable for costs incurred by the successful Consultant to achieve the project's objective
or standard beyond the amounts provided therefor in the proposal.
In the event that, after awarding the contract, any dispute arises as a result of any actual or
alleged ambiguity or defect in the specifications, or any other matter whatsoever, Consultant
shall immediately notify the City in writing, and the Consultant and all sub-consultants shall
continue to perform, irrespective of whether or not the ambiguity or defect is major, material,
minor or trivial, and irrespective of whether or not a change order, time extension, or
additional compensation has been granted by City. Failure to provide the hereinbefore
described written notice within one (1) working day of Consultant's becoming aware of the
facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role
of the defect or ambiguity in the plans or specifications concerning the dispute.
22. Indemnification for Professional Liability. To the fullest extent permitted by law, the
Consultant shall indemnify, protect, defend and hold harmless the City and any and all
of its officials, employees and agents("Indemnified Parties") from and against any and
all losses, liabilities, damages, costs and expenses, including attorney's fees and
costs, which arise out of, pertain to, or relate to the negligence, recklessness, or willful
misconduct of the Consultant.
23. Non-Exclusive Contract. The City reserves the right to contract for the services listed in
this proposal from other consultants during the contract term.
24. Required Deliverable Products and Revisions. The Consultant will be required to provide
documents addressing all elements of the workscope called for in the Request for Proposals.
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City staff will review any documents or materials provided by the Consultant and, where
necessary, the Consultant will respond to staff comments and make such changes as
deemed appropriate. Submittals shall include the previous marked up submittal (returned to
the Consultant) to assist in the second review. Changes shall be made as requested or a
notation made as to why the change is not appropriate.
2 copies of draft reports
2 copies of the final preliminary report, plus markups
Draft reports shall be submitted as paper copies AND one electronic copy submitted in Word.
Final documents shall be submitted as camera-ready original, unbound, each page printed on
only one side, including any original graphics in place and scaled to size,. ready for
reproduction AND one electronic copy submitted in Adobe Acrobat format.
Electronic files shall be submitted on CD and all files must be compatible with the Microsoft
operating system. Each CD must be clearly labeled and have a printed copy of the directory.
Files may be emailed to the City in lieu of putting them on CD.
25. Ownership of Materials. Upon completion of all work under this contract, ownership and
title to all reports, documents, and estimates produced as part of this contract will
automatically be vested in the city and no further agreement will be necessary to transfer
ownership to the City. The Consultant shall furnish the City all necessary copies of data
needed to complete the review and approval process.
26. Release of Reports and Information. Any reports, information, data, or other material
given to, prepared by or assembled by the Consultant as part of the work or services under
these specifications shall be the property of City and shall not be made available to any
individual or organization by the Consultant without the prior written approval of the City.
The Consultant shall not issue any news release or public relations item of any nature,
whatsoever, regarding work performed or to be performed under this contract without prior
review of the contents thereof by the City and receipt of the City s written permission.
27. Copies of Reports and Information. If the City requests additional copies of reports, or any
other material in addition to what the Consultant is required to furnish in limited quantities as
part of the work or services under these specifications, the Consultant shall provide such
additional copies as are requested, and City shall compensate the Consultant for the costs of
duplicating of such copies at the Consultant's direct expense.
28. Attendance at Meetings and Hearings. As part of the workscope and included in the
contract price is attendance by the Consultant at up to one public meeting to present and
discuss its findings and recommendations. Consultant shall attend as many "working"
meetings with staff as necessary in performing workscope tasks.
29. Consultant Invoices. The Consultant shall deliver a monthly invoice to the City, itemized by
project work phase and task or, in the case of on-call contracts, by project title. Invoice must
include a breakdown of hours billed and miscellaneous charges and any sub-consultant
invoices, similarly broken down, as supporting detail.
30. Payment. For providing services as specified in this Agreement, City will pay and
Consultant shall receive therefore compensation in a total sum not-to-exceed $39,000 fee for
services. Should the Consultant's reporting contain errors or deficiencies, the Consultant
shall be required to correct them at no increase in cost to the City.
Progress payments shall be made on a monthly basis as invoiced by the Consultant for
expenses incurred with cumulative monthly payments not to exceed:
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$ 31,200 (80%) Prior to submittal of Management report; and
$38,220 (98%) Prior to Council approval of report
The Consultant shall be reimbursed for hours worked at the hourly rates attached to this
agreement. Hourly rates include direct salary costs, employee benefits, overhead and fee.
In addition, the Consultant shall be reimbursed for direct costs other than salary and vehicle
cost that have been identified and are attached to this agreement. The Consultant's
personnel shall be reimbursed for per diem expenses at a rate not to exceed that currently
authorized for State employees under State Department of Personnel Administration rules.
31. Payment Terms. The City's payment terms are 30 days from the receipt of an original
invoice and acceptance by the City of the materials, supplies, equipment or services provided
by the Consultant(Net 30).
32. Resolution of Disputes. Any dispute, other than audit, concerning a question of fact arising
under this contract that is not disposed of by agreement shall be decided by a committee
consisting of the City's Project Manager and the City Director of Public Works, who may
consider written or verbal information submitted by the Consultant. Not later than thirty days
after completion of all deliverables necessary to complete the plans, specifications and
estimate, the Consultant may request review by the City Council of unresolved claims or
disputes, other than audit, in accordance with Chapter 1.20 Appeals Procedure of the
Municipal Code.
Any dispute concerning a question of fact arising under an audit of this contract that is not
disposed of by agreement, shall be reviewed by the City's Chief Fiscal Officer. Not later than
30 days after issuance of the final audit report, the Consultant may request a review by the
City's Chief Fiscal Officer of unresolved audit issues. The request for review must be
submitted in writing.
Neither the pendency of a dispute, nor its consideration by the City will excuse the consultant
from full and timely performance in accordance with the terms of this contract.
33. Agreement Parties.
City: Jay Walter Consultant: Richard Brady
City of San Luis Obispo Matrix Consulting Group
919 Palm Street 721 Colorado Avenue, Ste 101
San Luis Obispo, CA 93401 Palo Alto, CA 94303
All written notices to the parties hereto shall be sent by United States mail, postage prepaid
by registered or certified mail addressed as shown above.
34. Incorporation by Reference. City Request for Proposal and Consultant's proposal dated
July 12, 2010, are hereby incorporated in and made a part of this Agreement. In the event
there are conflicts between the terms, conditions or requirements set forth in Request for
Proposals and the Consultant's proposal, the terms, conditions and requirements of the
Public Works Department Management and Performance Audit services shall govern the
performance of this Agreement.
35. Amendments. Any amendment, modification or variation from the terms of this Agreement
shall be in writing and shall be effective only upon written approval by the Director of Public
Works.
36. Working Out of Scope. If, at any time during the project, the consultant is directed to do
work by persons other than the City Project Manager and the Consultant believes that the
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work is outside of the scope of the original contract, the Consultant shall inform the Project
Manager immediately. If the Project Manager and Consultant both agree that the work is
outside of the project scope and is necessary to the successful completion of the project,
then a fee will be established for such work based on Consultant's hourly billing rates or a
lump sum price agreed upon between the City and the Consultant. Any extra work performed
by Consultant without prior written approval from the City Project Manager shall be at
Consultant's own expense.
37. Complete Agreement. This written agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the
parties hereto. No oral agreement, understanding or representation not reduced to writing
and specifically incorporated herein shall be of any force or effect, nor shall any such oral
agreement, understanding or representation be binding upon the parties hereto. For and in
consideration of the payments and agreements hereinbefore mentioned to be made and
performed by City, Consultant agrees with City to do everything required by this Agreement,
the said specification and incorporated documents.
Authority to Execute Agreement. Both City and Consultant do covenant that each individual
executing this agreement on behalf of each party is a person duly authorized and empowered to
execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first above written.
CITY OF SAN LUIS OBISPO:
ATTEST:
Elaina Cano, City Clerk Katie Lichtig, City Manager
APPROVED AS TO FORM: _ CONSULTANT:
Christine Dietrick, City Attorney By: Richard Brady, Principal
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ATTACHMENT
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo
on 2010 by and between the CITY OF SAN LUIS OBISPO, a municipal
corporation, hereinafter referred to as City, and MATRIX CONSULTING GROUP hereinafter
referred to as Consultant.
WITNESSETH
WHEREAS, on June 14, 2010, the City requested proposals for the Public Works
Department Management and Performance Audit.
WHEREAS, pursuant to said request, Consultant submitted a proposal that was accepted
by City for said services.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows`
1. Term. The term of this Agreement shall be from the date this Agreement is made and
entered, as first written above, until acceptance or completion of said services.
2. Start and Completion of Work. Work on this project shall begin within 30 calendar days
after contract execution and shall be completed in accordance with the Consultant's
submitted phase/task schedule.
3. Work Delays. Should the Consultant be obstructed or delayed in the work required to be
done hereunder by changes in the work or by any default, act, or omission of the City, or by
strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials,
equipment, or labor due to federal government restrictions arising out of defense or war
programs, then the time of completion may, at the City's sole option, be extended for such
periods as may be agreed upon by the City and the Consultant. In the event that there is
insufficient time to grant such extensions prior to the completion date of the contract, the City
may, at the time of acceptance of the work, waive liquidated damages that may have accrued
for failure to complete on time, due to any of the above, after hearing evidence as to the
reasons for such delay, and making a finding as to the causes of same.
4. Termination. If, during the term of the contract, the City determines that the Consultant is
not faithfully abiding by any term or condition contained herein, the City may notify the
Consultant in writing of such defect or failure to perform. This notice must give- the
Consultant a 10 (ten) calendar day notice of time thereafter in which to perform said work or
cure the deficiency.
If the Consultant has not performed the work or cured the deficiency within the ten days
specified in the notice, such shall constitute a breach of the contract and the City may
terminate the contract immediately by written notice to the Consultant to said effect.
Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights
under the contract except, however, any and all obligations of the Consultant's surety shall
remain in full force and effect, and shall not be extinguished, reduced, or in any manner
waived by the termination thereof.
In said event, the Consultant shall be entitled to the reasonable value of its services
performed from the beginning date in which the breach occurs up to the day it received the
City's Notice of Termination, minus any offset from such payment representing the City's
damages from such breach. "Reasonable value" includes fees or charges for goods or
services as of the last milestone or task satisfactorily delivered or completed by the
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Consultant as may be set forth in the Agreement payment schedule; compensation for any
other work, services or goods performed or provided by the Consultant shall be based solely
on the City's assessment of the value of the work-in-progress in completing the overall
workscope.
The City reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the City's sole discretion, so as to
permit a full and complete accounting of costs. In no event, however, shall the Consultant be
entitled to receive in excess of the compensation quoted in its proposal.
If, at any time during the term of the contract, the City determines that the project is not
feasible due to funding shortages or unforeseen circumstances, the City reserves the right to
terminate the contract. Consultant will be paid compensation due and payable to the date of
termination.
5. Ability to Perform. The Consultant warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to
carry out and complete the work hereunder in compliance with any and all applicable federal,
state, county, city, and special district laws, ordinances, and regulations.
6. Sub-contract Provisions. No portion of the work pertinent to this contract shall be
subcontracted without written authorization by the City, except that which is expressly
identified in the Consultant's proposal. Any substitution of sub-consultants must be approved
in writing by the City. For any sub-contract for services in excess of$25,000, the subcontract
shall contain all provisions of this agreement.
7. Contract Assignment. The Consultant shall not assign, transfer, convey or otherwise
dispose of the contract, or its right, title or interest, or its power to execute such a contract to
any individual or business entity of any kind without the previous written consent of the City.
8. Inspection. The Consultant shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Consultant are being performed in accordance with the
requirements and intentions of this contract. All work done and all materials furnished, if any,
shall be subject to the City's inspection and approval. The inspection of such work shall not
relieve Consultant of any of its obligations to fulfill its contract requirements.
9. Record Retention and Audit. For the purpose of determining compliance with various laws
and regulations as well as performance of the contract, the Consultant and sub-consultants
shall maintain all books, documents, papers, accounting records and other evidence
pertaining to the performance of the contract, including but not limited to the cost of
administering the contract. Materials shall be made available at their respective offices at all
reasonable times during the contract period and for three years from the date of final
payment under the contract. Authorized representatives of the City shall have the option of
inspecting and/or auditing all records. For Federally funded projects, access to records shall
also include authorized representatives of the State and Federal government. Copies shall
be furnished if requested.
10. Conflict of Interest. The Consultant shall disclose any financial, business, or other
relationship with the City that may have an impact upon the outcome of this contract, or any
ensuing City construction project. The Consultant shall also list current clients who may have
a financial interest in the outcome of this contract, or any ensuing City construction project
which will follow.
The Consultant covenants that it presently has no interest, and shall not acquire any
interest—direct, indirect or otherwise—that would conflict in any manner or degree with the
performance of the work hereunder. The Consultant further covenants that, in the
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performance of this work, no sub-consultant or person having such an interest shall be
employed. The Consultant certifies that no one who has or will have any financial interest in
performing this work is an officer or employee of the City. It is hereby expressly agreed that,
in the performance of the work hereunder, the Consultant shall at all times be deemed an
independent Consultant and not an agent or employee of the City.
11. Rebates, Kickbacks or Other Unlawful Consideration. The Consultant warrants that this
contract was not obtained or secured through rebates, kickbacks or other unlawful
consideration, either promised or paid to any City employee. For breach or violation of the
warranty, the City shall have the right in its discretion; to terminate the contract without
liability; to pay only for the value of the work actually performed; to deduct from the contract
price; or otherwise recover the full amount of such rebate, kickback or other unlawful
consideration.
12. Covenant Against Contingent Fees. The Consultant warrants by execution of this contract
that no person or selling agency has been employed, or retained, to solicit or secure this
contract upon an agreement or understanding, for a commission, percentage, brokerage, or
contingent fee, excepting bona fide employees or bona fide established commercial or selling
agencies maintained by the Consultant for the purpose of securing business. For breach or
violation of this warranty, the City has the right to annul this contract without liability; pay only
for the value of the work actually performed, or in its discretion, to deduct from the contract
price or consideration, or otherwise recover the full amount of such commission, percentage,
brokerage, or contingent fee.
13. Compliance with Laws and Wage Rates. The Consultant shall keep itself fully informed of
and shall observe and comply with all applicable state and federal laws and county and City
of San Luis Obispo ordinances, regulations and adopted codes during its performance of the
work. This includes compliance with prevailing wage rates and their payment in accordance
with California Labor Code. For purposed of this paragraph, "construction" includes work
performed during the design and preconstruction phases of construction, including but not
limited to, inspection and land surveying work.
14. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Consultant is required to pay.
15. Permits, Licenses and Filing Fees. The Consultant shall procure all permits and licenses,
pay all charges and fees, and file all notices as they pertain to the completion of the
Consultant's work. The City will pay all application fees for permits required for the
completion of the project, including building and regulatory permit application fees.
Consultant will provide a 10 day notice for the City to issue a check.
16. Safety Provisions. The Consultant shall conform to the rules and regulations pertaining to
safety establishefty OSHA and the California Division of Industrial Safety.
17. Public and Employee Safety. Whenever the Consultant's operations create a condition
hazardous to the public or City employees, it shall, at its expense and without cost to the City,
furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and
other devices and take such other protective measures as are necessary to prevent
accidents or damage or injury to the public and employees.
18. Preservation of City Property. The Consultant shall provide and install suitable
safeguards, approved by the City, to protect City property from injury or damage. If City
property is injured or damaged resulting from the Consultant's operations, it shall be replaced
or restored at the Consultant's expense. The facilities shall be replaced or restored to a
condition as good as when the Consultant began work.
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19. Immigration Act of 1986. The Consultant warrants on behalf of itself and all sub-
consultants engaged for the performance of this work that only persons authorized to work in
the United States pursuant to the Immigration Reform and Control Act of 1986 and other
applicable laws shall be employed in the performance of the work hereunder.
20. Consultant Non-Discrimination. In the award of subcontracts or in performance of this
work, the Consultant agrees that it will not engage in, nor permit such sub-consultants as it
may employ, to engage in discrimination in employment of persons on any basis prohibited
by State or Federal law.
21. Accuracy of Specifications. The specifications for this project are believed by the City to
be accurate and to contain no affirmative misrepresentation or any concealment of fact.
Consultants are cautioned to undertake an independent analysis of any test results in the
specifications, as City does not guaranty the accuracy of its interpretation of test results
contained in the specifications package. In preparing its proposal, the Consultant and all
sub-consultants named in its proposal shall bear sole responsibility for proposal preparation
errors resulting from any misstatements or omissions in the specifications that could easily
have been ascertained by examining either the project site or accurate test data in the City's
possession. Although the effect of ambiguities or defects in the specifications will be as
determined by law, any patent ambiguity or defect shall give rise to a duty of Consultant to
inquire prior to proposal submittal. Failure to so inquire.shall cause any such ambiguity or
defect to be construed against the Consultant. An ambiguity or defect shall be considered
patent if it is of such a nature that the Consultant, assuming reasonable skill, ability and
diligence on its part, knew or should have known of the existence of the ambiguity or defect.
Furthermore, failure of the Consultant or sub-consultants to notify City in writing of
specification defects or ambiguities prior to proposal submittal shall waive any right to assert
said defects or ambiguities subsequent to submittal of the proposal.
To the extent that these specifications constitute performance specifications, the City shall
not be liable for costs incurred by the successful Consultant to achieve the project's objective
or standard beyond the amounts provided therefor in the proposal.
In the event that, after awarding the contract, any dispute arises as a result of any actual or
alleged ambiguity or defect in the specifications, or any other matter whatsoever, Consultant
shall immediately notify the City in writing, and the Consultant and all sub-consultants shall
continue to perform, irrespective of whether or not the ambiguity or defect is major, material,
minor or trivial, and irrespective of whether or not a change order, time extension, or
additional compensation has been granted by City. Failure to provide the hereinbefore
described written notice within one (1) working day of Consultant's becoming aware of the
facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role
of the defect or ambiguity in the plans or specifications concerning the dispute.
22. Indemnification for Professional Liability. To the fullest extent permitted by law, the
Consultant shall indemnify,protect, defend and hold harmless the City and any and all
of its officials, 'employees and agents(`Indemnified Parties") from and against any and
all losses, liabilities, damages, costs and expenses, including attorney's fees and
costs, which arise out of,pertain to, or relate to the negligence, recklessness, or willful
misconduct of the Consultant.
23. Non-Exclusive Contract. The City reserves the right to contract for the services listed in
this proposal from other consultants during the contract term.
24. Required Deliverable Products and Revisions. The Consultant will be required to provide
documents addressing all elements of the workscope called for in the Request for Proposals.
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City staff will review any documents or materials provided by the Consultant and, where
necessary, the Consultant will respond to staff comments and make such changes as
deemed appropriate. Submittals shall include the previous marked up submittal (returned to
the Consultant) to assist in the second review. Changes shall be made as requested or a
notation made as to why the change is not appropriate.
2 copies of draft reports
2 copies of the final preliminary report, plus markups
Draft reports shall be submitted as paper copies AND one electronic copy submitted in Word.
Final documents shall be submitted as camera-ready original, unbound, each page printed on
only one side, including any original graphics in place and scaled to size, ready for
reproduction AND one electronic copy submitted in Adobe Acrobat format.
Electronic files shall be submitted on CD and all files must be compatible with the Microsoft
operating system. Each CD must be clearly labeled and have a printed copy of the directory.
Files maybe emailed to the City in lieu of putting them on CD.
25. Ownership of Materials. Upon completion of all work under this contract, ownership and
title to all reports, documents, and estimates produced as part of this contract will
automatically be vested in the city and no further agreement will be necessary to transfer
ownership to the City. The Consultant shall furnish the City all necessary copies of data
needed to complete the review and approval process.
26. Release of Reports and Information. Any reports, information, data, or other material
given to, prepared by or assembled by the Consultant as part of the work or services under
these specifications shall be the property of City and shall not be made available to any
individual or organization by the Consultant without the prior written approval of the City.
The Consultant shall not issue any news release or public relations item of any nature,
whatsoever, regarding work performed or to be performed under this contract without prior
review of the contents thereof by the City and receipt of the City's written permission.
27. Copies of Reports and Information. If the City requests additional copies of reports, or any
other material in addition to what the Consultant is required to furnish in limited quantities as
part of the work or services under these specifications, the Consultant shall provide such
additional copies as are requested, and City shall compensate the Consultant for the costs of
duplicating of such copies at the Consultant's direct expense.
28. Attendance at Meetings and Hearings. As part of the workscope and included in the
contract price is attendance by the Consultant at up to one public meeting to present and
discuss its findings and recommendations. Consultant shall attend as many "working"
meetings with staff as necessary in performing workscope tasks..
29. Consultant Invoices. The Consultant shall deliver a monthly invoice to the City, itemized by
project work phase and task or, in the case of on-call contracts, by project title. Invoice must
include a breakdown of hours billed and miscellaneous charges and any sub-consultant
invoices, similarly broken down, as supporting detail.
30. Payment. For providing services as specified in this Agreement, City will pay and
Consultant shall receive therefore compensation in a total sum not-to-exceed $39,000 fee for
services. Should the Consultant's reporting contain errors or deficiencies, the Consultant
shall be required to correct them at no increase in cost to the City.
Progress payments shall be made on a monthly basis as invoiced by the Consultant for
expenses incurred with cumulative monthly payments not to exceed:
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$ 31,200 (80%) Prior to submittal of Management report; and
$38,220 (98%) Prior to Council approval of report
The Consultant shall be reimbursed for hours worked at the hourly rates attached to this
agreement. Hourly rates include direct salary costs, employee benefits, overhead and fee.
In addition, the Consultant shall be reimbursed for direct costs other than salary and vehicle
cost that have been identified and are attached to this agreement. The Consultant's
personnel shall be reimbursed for per diem expenses at a rate not to exceed that currently
authorized for State employees under State Department of Personnel Administration rules.
31. Payment Terms. The City's payment terms are 30 days from the receipt of an original
invoice and acceptance by the City of the materials, supplies, equipment or services provided
by the Consultant(Net 30).
32. Resolution of Disputes. Any dispute, other than audit, concerning a question of fact arising
under this contract that is not disposed of by agreement shall be decided by a committee
consisting of the City's Project Manager and the City Director of Public Works, who may
consider written or verbal information submitted by the Consultant. Not later than thirty days
after completion of all deliverables necessary to complete the plans, specifications and
estimate, the Consultant may request review by the City Council of unresolved claims or
disputes, other than audit, in accordance with Chapter 1.20 Appeals Procedure of the
Municipal Code.
Any dispute concerning a question of fact arising under an audit of this contract that is not
disposed of by agreement, shall be reviewed by the City's Chief Fiscal Officer. Not later than
30 days after issuance of the final audit report, the Consultant may request a review by the
City's Chief Fiscal Officer of unresolved audit issues. The request for review must be
submitted in writing.
Neither the pendency of a dispute, nor its consideration by the City will excuse the consultant
from full and timely performance in accordance with the terms of this contract.
33. Agreement Parties.
City: Jay Walter Consultant: Richard Brady
City of San Luis Obispo Matrix Consulting Group
919 Palm Street 721 Colorado Avenue, Ste 101
San Luis Obispo, CA 93401 Palo Alto, CA 94303
All written notices to the parties hereto shall be sent by United States mail, postage prepaid
by registered or certified mail addressed as shown above.
34. Incorporation by Reference. City Request for Proposal and Consultant's proposal dated
July 12, 2010, are hereby incorporated in and made a part of this Agreement. In the event
there are conflicts between the terms, conditions or requirements set forth in Request for
Proposals and the Consultant's proposal, the terms, conditions and requirements of the
Public Works Department Management and Performance Audit services shall govern the
performance of this Agreement.
35. Amendments. Any amendment, modification or variation from the terms of this Agreement
shall be in writing and shall be effective only upon written approval by the Director of Public
Works.
36. Working Out of Scope. If, at any time during the project, the consultant is directed to do
work by persons other than the City_Project Manager and the Consultant believes that the
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work is outside of the scope of the original contract, the Consultant shall inform the Project
Manager immediately. If the Project Manager and Consultant both agree that the work is
outside of the project scope and is necessary to the successful completion of the project,
then a fee will be established for such work based on Consultant's hourly billing rates or a
lump sum price agreed upon between the City and the Consultant. Any extra work performed
by Consultant without prior written approval from the City Project Manager shall be at
Consultant's own expense.
37. Complete Agreement. This written agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the
parties hereto. No oral agreement, understanding or representation not reduced to writing
and specifically incorporated herein shall be of any force or effect, nor shall any such oral
agreement, understanding or representation be binding upon the parties hereto. For and in
consideration of the payments and agreements hereinbefore mentioned to be made and
performed by City, Consultant agrees with City to do everything required by this Agreement,
the said specification and incorporated documents.
Authority to Execute Agreement. Both City and Consultant do covenant that each individual
executing this agreement on behalf of each party is a person duly authorized and empowered to
execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first above written.
CITY OF SAN LUIS OBISPO:
ATTEST:
Elaina Cano, City Clerk -Katie Lichtig, City Manager
APPROVE AS
TO FORM:- [� CONSULTANT:
nstine ietrick, City Attorney By: Richard Brady, Principal
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