HomeMy WebLinkAbout08-20-2015 Government Finance Officers Association - AgreementAGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this
day of v u � ZQ i ' , by and between the CITY OF SAN LUIS OBISPO, a municipal
corporation, ereinafter referred to as City, and the Government Finance Officers Association of the United
States and Canada (GFOA), an Illinois not - for - profit corporation, hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, "periodic formal reviews of operations on a systematic ongoing basis" is an adopted
budget and fiscal policy in the City's Financial Plan; and
WHEREAS, the City is seeking assistance with an organizational assessment of business processes
in the Finance and Information Technology Department; and
WHEREAS, the City desires to hire Contractor to perform organizational assessment services,
including a business process review and developing an action plan, and Contractor is willing to provide such
services in accordance with the terms and conditions of this Agreement.
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 the scope of work is completed.
2. INCORPORATION BY REFERENCE. Standard terms and conditions as described in
Exhibit B, and insurance requirements as described in Exhibit C, are hereby incorporated in and made part
of this agreement.
3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City
will pay and Contractor shall receive compensation in a total sum not to exceed $48,560.
4. CONTRACTOR EXPENSES. The Contractor shall be the responsible party for all
mailing or shipping charges on submissions to the City, and the costs of all travel by the Contractor and the
Contractors' agents and employees necessary for the proper performance of the services required under this
Agreement.
5. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and
agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to
provide services as described in Exhibit A attached hereto and incorporated into this Agreement.
6. AMENDMENTS. Any amendment, modification, or variation from the terms of this
Agreement shall be in writing and shall be effective only upon approval by the City Manager.
7. 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.
8. ATTORNEY'S FEES. Should any action or proceeding be brought to enforce the terms of
this Agreement, the prevailing party shall be entitled to reasonable attorney's fees and costs.
9. NOTICE. All written notices to the parties hereto shall be sent by United States mail,
postage prepaid by registered or certified mail addressed as follows:
City Katie Lichtig, City Manager
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Contractor Government Finance Officers Association of the United
States and Canada (GFOA)
Attn. Mike Mucha
203 North LaSalle Street, Suite 2700
Chicago, Illinois 60601
10. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor 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.
2
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first above written.
ATTEST:
AP O STYT
T
Ch e Dietrick, City Attorney
CITY OF SAN LUIS OBISPO,
A Municipal Corporation
Kap . ity Manager
J/
By: �A� /. C-"�
JefFre le r, qO A
Exhibit A:
'Cors OV
Business Process Review for FIT
July 9, 2015
Revised August 17, 2015
Note: This proposal and description of GFOA methodologies is for the entity listed above. All
information herein is confidential and proprietary to GFOA.
Government Finance Officers Association
203 North LaSalle Street, Suite 2700
Chicago, IL 60601 -1210
312.977.9700 fax: 312.977.4806
July 9, 2015
Monica Irons
Director of Human Resources
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401 -3249
E -MAIL: mirons @slocity.org
Dear Monica:
The Government Finance Officers Association (GFOA) is pleased to present this proposal to the
City of San Luis Obispo, CA (the City), to provide consulting services related to a business
process review of the finance and IT departments and an assessment of the City's finance
function.
More than 400 governments, including many in California, have found value in our experienced
and detailed approach to process, system, and overall organizational assessments. As one of the
premier membership associations for public- sector professionals, GFOA can offer independent,
objective, and best practice- focused consulting services consistent with our mission to improve
government management. In addition, our practitioner focus strives to provide "real" solutions
based on past experience and regular research with our member network.
We look forward to the opportunity to work with you and the City. If there are any questions or
you would like to discuss the proposal, please let me know.
Sincerely,
Mike Mucha
Director, Research and Consulting Center
Government Finance Officers Association
Washington, DC Office
1301 Pennsylvania Avenue, N.W., • Suite 309 Washington, DC 20004 • 202.393.8020 fax: 202.393.0780
www.gfoa.org
Business Process Review for FIT
TABLE OF CONTENTS
Overviewof Proposal ..................................................................................... ............................... 4
Task0: Project Planning ................................................................................ ............................... 4
Task1: Business Process Review ................................................................... ............................... 5
Task2: Action Plan ........................................................................................ ............................... 7
Task3: Implementation Assistance .............................................................. ............................... 8
ProjectSchedule ............................................................................................. .............................10
Price................................................................................................................. .............................11
ProjectAssumptions ....................................................................................... .............................12
Appendix1: GFOA Profile ............................................................................ .............................13
Appendix2: Project Team Resumes ............................................................. .............................14
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■
ME Overview of Proposal
Understanding that no two governments are the same, GFOA follows a conceptual process for
conducting its business process review and organizational assessment projects that is customized
to meet conditions and accomplish specific goals identified by each client. Our proposal for the
City includes two separate phases.
1) Conduct a Business Process Review. GFOA's business process review projects will
focus on business process but also look at other critical components such as policies,
staffing, technology, and overall structure.
2) Develop an Action Plan. Assessment results are delivered with a focus on improvement.
Our practitioner- focused approach will provide guidance on how to overcome current
issues. Action plans are prioritized and will be prepared collaboratively with City staff to
provide recommendations on how the plans can be adopted.
ME
® Task 0: Project Planning
No project can be successful without proper planning and tools to manage the effort. Working
together, GFOA and the City project manager will prepare the following tools, which will be
essential to project coordination.
Project Plan. Project plans are typically done in Microsoft Project but can be developed
in Excel if the City prefers. GFOA will provide this document, which identifies all the
detailed tasks for the project, the person responsible for executing those tasks, the
estimated time required for completion, and any dependencies that a given task may have
relative to other tasks. Once the project plan is provided, GFOA will continue to update
it, along with the City's project manager (or other point of contact).
Project Documentation Procedures. At the beginning of the project, GFOA and the
City will identify procedures for communication and posting/sharing documents. If the
City uses a collaboration website for project and document management, GFOA
consultants can post to that site. If desired, GFOA can also host a website with
collaboration tools specifically for this project.
■ Project Staffing — GFOA's project team for this engagement will be:
❖ Engagement Manager — Mike Mucha, Director, Research and Consulting
❖ Project Lead* — Eva Olsaker, Senior Manager
❖ Project Lead* — Matt Bubness, Manager
❖ Project Consultant — Barry McMeekin, Consulting Practice Manager.
*Note: For this project Eva Olsaker and Matt Bubness will share project lead/manager roles.
Task 0: Project Planning
Phase Duration • 2 weeks
Cost • Included
Deliverables • D0: Project Plan
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■■
No Task 1: Business Process Review
We conduct our projects with the underlying goal of helping organizations achieve high
performance in financial management. In assessing the City's financial functions provided by the
Finance and IT department (F.I.T.), we will apply the model explained below. Analysis and
actionable recommendations based on industry best practice, the experiences of other
governments, and the City's ultimate goals will be communicated using the model's structure.
Meet Stakeholder Expectations
• Desired outcomes
Process y, Activities
• Best Practices
• Transparency
• Accountability
I • Leadership
Supporting ■ • Decision Support
Tools • Business Process
• Value Added Activities
• Reporting/ Communications
• Policies • Control
• Documentation
• Technology
• Staffing
GFOA will approach this engagement from two interdependent perspectives. The first is
organizational efficiency — Is the City doing things right? Questions explored from this
perspective include:
❖ Are all finance office functions performed as efficiently as possible?
❖ Are staff resources sufficient, and are staff members adequately trained?
❖ Do they take advantage of recent technological developments and trends in
public- sector financial management?
The second perspective is strategic — Is the City doing the right things? In other words, are the
finance office's strategies, activities, and programs aligned with the City's mission and with
customer expectations, and is the organization using recognized best practices? Often,
organizations continue to perform tasks because "it's the way we've always done it." Questions
explored from this perspective include:
❖ Are processes and policies up to date? Do they adequately meet the needs of
internal and external customers?
❖ Do current processes lead to effective financial management?
Task 1 -A: Information Gathering
Before arriving on -site, GFOA's team will conduct a document review to gather information on
departmental background, relevant policies and procedures, the organizational structure, and
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defined roles and responsibilities. GFOA staff will then conduct interviews with finance staff and
key users of the finance office's services (to be identified by the City). Most interviews will be
conducted in person, either in groups or individually, during on -site visit. GFOA will also
facilitate meetings by major business process to better understand finance operations. During this
visit, GFOA staff will conduct any necessary follow -up meetings to cover information collected
during the document review. Depending on the number of interviews required outside the finance
office, GFOA may conduct interviews with other selected stakeholders in person, by telephone,
or through web surveys. As part of the project, GFOA will focus on the following:
•:� Policy Review. GFOA staff will collect and review relevant documentation for
the project. GFOA will use this documentation, along with any other information
deemed relevant and provided by the City, to gain an understanding of the City's
operations and to identify key business issues to explore during the employee and
customer interviews. GFOA will also review practices for how the City
documents policies and processes, and how it communicates this information to
key stakeholders.
❖ Process Review and Documentation. GFOA has found through experience that
a "process focus" is critical to our assessment projects. Much can be learned from
identifying, documenting, and reviewing the end -to -end processes the
organization uses to conduct business. GFOA's highly collaborative mapping
process will make use of focus group meetings with a wide variety of
stakeholders. This step is extremely important to the success of the project,
allowing stakeholders to better understand existing processes (including
limitations and inefficiencies). We expect to focus the process mapping and
documentation on key processes including, but not necessarily limited to:
• Procure -to -Pay Process
• Contract Management
• Project Accounting /Grant Accounting
• Financial Reporting
• Capital Asset Tracking
• Budget Preparation Process (Capital and Operating Budget)
• Internal Controls
• Revenue Management
• Business Tax
After documenting processes, we will apply process improvement principles and
our collective experience in working with other governments to help determine
improvement opportunities.
❖ System Assessment. As part of the process review, GFOA will review any
previously completed technology assessments and gather any additional
information to assess the City's use of its financial system and associated shadow
or subsidiary systems. GFOA will review potential areas of redundancy,
underutilized systems, or functions that are not performing as intended. GFOA
will also review the overall integration of systems and how well the systems
support the City's business processes.
❖ Stakeholder Analysis. Each financial process has an intended outcome serving
the needs of an internal or external customer. GFOA will get feedback from
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customers and assess customer expectations, ongoing communications, and the
level of customer service provided. (Customers may also include department
heads, department fiscal officers, budget analysts, and the city council, for
instance.)
❖ Overall Organizational Assessment. In addition to the specific focus on process
and policy, we will also look at other factors that contribute to a sound financial
management function, including organizational structure, staffing roles and
responsibilities, communications, use of key performance metrics, underlying
technology, and other factors identified during the assessment.
This review will include an assessment of how the City distributes its financial
functions among the (centralized) F.I.T. department and other (decentralized)
departments.
Task 1 -13: Communication of Assessment Report
We will meet with the City project manager /project sponsor and others designated by the finance
office. The purpose of this meeting is to discuss preliminary findings in order to test our
assumptions and to make sure that we access additional information as necessary to get a full
picture of the situation. GFOA will evaluate the information gathered earlier based on our
knowledge of best financial and management practices for similar organizations, gained from our
research and from GFOA's best practices in financial management. We will then develop a draft
report that highlights key findings for the City's review.
All findings will be validated by City staff, and any issues requiring further information will be
addressed at this time. GFOA will also begin preliminary discussions of alternatives with the
project manager and begin planning the development of the action plan.
Phase Duration • 1 -2 months
Cost • $32,320
Deliverables • Dl: Assessment Report w/ Recommendations
■®
ME Task 2: Action Plan
It is our intent that this action plan be a joint product of GFOA and the City. This is one way in
which we try to assure that recommendations will be accepted and implemented and that staff
will "own" the process. After completion of the report from Phase 1 and the identification of
alternatives, GFOA will facilitate an action plan with key staff and document decisions. Action
plans can differ but will ultimately include a series of recommendations prioritized by their ability
to improve outcomes and ease of implementation. For each identified improvement, GFOA will
identify a method of tracking, including persons responsible, and overall outcomes /measures of
progress.
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1
2
3
4
5
6
7
8
9
In past projects, recommendations for improvement have included some of the following:
1) Implementation of Processes Improvements. GFOA has assisted with design,
documentation, and training around new processes.
2) Technology Requirements. If technology solutions are required to manage the
improvement, GFOA has assisted with definition of requirements and facilitation of a
procurement and selection process to acquire technology for a number of governments.
3) Organizational Changes. GFOA has also been involved with overall department re-
structuring and has assisted with developing new policies, procedures, and structure,
when necessary.
Based on the action plan meetings, GFOA will prepare a final report. The report will include
GFOA's findings and recommendations, the action plan, any relevant change management
recommendations, and suggested resources to access during the implementation of the action
plan.
Assessment Report
Phase Duration
• 1 month
Cost
• $6.240
Deliverables
• D2: Action Plan
• D3• Final Report
■
■ Task 3: Implementation Assistance
GFOA is prepared to help with implementation of recommendations included in the action plan.
However, we are not able to propose specific services before completing the action plan. On past
projects we have taken on the role as researcher, best practice advisor, project manager, quality
control, and/or facilitator of internal discussions.
It is expected that for the City's project, our role could focus on tracking improvement efforts,
providing periodic reviews of progress, helping communicate changes to a larger City audience,
and assisting with subject matter expertise when necessary. For the proposal, we have allotted a
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total of $10,000 for this task. After development of the action plan, GFOA would be happy to
provide a more detailed proposal with a fixed scope /price.
Phase Duration • 1 month
Cost • $200 /Hour up to $10,000
Deliverables • D4: TBD
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■M .
■ M Project Schedule
GFOA has proposed the following high -level schedule for completing all work described in this
proposal. GFOA requests that the City provide at least one (1) month prior notice for beginning
the project so we can schedule resources /site visits. GFOA is open to discussing alternative
schedules that would best meet the needs of the City if there are concerns with what is proposed
here.
Task 0: Project Planning
Task 1: Assessment
Task 2: Action Plan
Task 3: Implementation Assistance
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■
Price
Unless noted, all pricing is provided as a fixed fee inclusive of all travel costs incurred by GFOA
staff. GFOA will invoice for project deliverables once they are completed.
Summary of Fees by Task
Phase
0
Milestone
Project Management and Planning
Price
DO
Project Management Documents
$0
1
Business Process Review
1 -A
Information Gathering
Included in
1 -B
1 -13
Communication of Key Findings
$32,320
2
Action Plan
2 -13
Action Plan
$6,240
3
Implementation Assistance
3 -A
TOTAL
TBD ($200/hour)
$10,000
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on
® Project Assumptions
• GFOA assumes that City staff will be available to participate in meetings and provide
information necessary to the project.
• GFOA will complete tasks in this proposal with a combination of on -site and off -site
work.
• Each site visit will include one or two GFOA consultants and last approximately two to
three days (depending on planned activities). GFOA site visits will be scheduled in
advance with the City's project manager. The City is responsible for inviting the
appropriate stakeholders to meetings based on agenda topics.
• GFOA has proposed services listed for a fixed fee based on completion of deliverables
(unless noted). The fixed fee amount and hourly rate comprises all expenses, including
travel. GFOA will invoice monthly for the amount listed in this proposal for
tasks /milestones completed within the previous month.
• When performing work on -site, GFOA staff will be provided appropriate office
workspace.
• If it becomes necessary for the City to request additional resources or expand the scope of
the project beyond what is listed in this proposal, additional work will be secured as an
amendment to the contract between the City and the GFOA, and the work will be
performed at the rate of $200/hour.
• As an educational, nonprofit, professional membership association, GFOA reserves the
right to publish non - confidential documents describing the results of the services
described in this scope of work. GFOA will not publish any item with the name of the
City without obtaining prior written consent of the government.
• GFOA is a nonprofit membership association made up of members representing
organizations like the City. GFOA's liability and indemnification under any agreement
reached with your organization will be limited to the extent of fees paid by insurance
coverage currently in force. This limitation applies to all exposures under this
engagement.
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■
Appendix 1: GFOA Profile
Company i I
j Government Finance Officers Association of the United
Official Company Name
States and Canada
GFOA is a 501(c)3 nonprofit association governed by an
Company Ownership
18- person executive board made up of public- sector
professionals.
203 North LaSalle Street
Suite 2700
Chicago, IL 60601
Location of Company Offices
1301 Pennsylvania Avenue, N.W.
Suite 309
Washington D.C. 20004
Location of Office Servicing CA
GFOA's primary office is in Chicago. All research and
Accounts
consulting staff are located in the Chicago office.
Number of Employees:
GFOA has approximately 50 employees.
Location from which employees will be
Chicago, IL
assigned
Mike Mucha
Director, Research and Consulting
203 North LaSalle Street
Suite 2700
Chicago, IL 60601
Contact Information
Office: 312 - 977 -9700
Direct: 312 - 578 -2282
Email: mmucha@gfoa.org
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Appendix 2: Project Team Resumes
Mike Mucha, Director, Research and Consulting
Mike Mucha joined GFOA in 2006 and is now the Director of the Research
and Consulting Center. Mike oversees GFOA consulting projects, research
activities, the Government Finance Review, planning for GFOA training and
conferences, the GFOA website, and other strategic initiatives for GFOA.
Mike also leads GFOA's consulting practice and focuses on providing
guidance to local governments on how to use technology more effectively,
improve business processes and administrative practices, and implement
best practices in financial management. Mike has managed projects for both
large and small governments. He regularly speaks at GFOA training events
and has written numerous articles on public- sector budgeting, process improvement, performance
management, and technology.
Recent clients have included Pasco County Schools (FL), Orange County Schools (FL), City of
Spokane (WA), Spokane Transit Agency (WA), City of Longmont (CO), City of Hayward (CA),
Sonoma County (CA), Yolo County (CA), Douglas County (KS), the City of Westerville (OH),
and the City of Aspen (CO).
Education
• B.B.A., Economics, University of Iowa
• M.S., Public Policy and Management, Carnegie Mellon University
Eva olsaker, Senior Manager
Eva Olsaker joined GFOA in 2005 and is a Senior Manager in the Research
,..,Aand Consulting Center. Eva brings 19 years of experience in both private- and
P ublic- sector technology and management consultin g projects, specializing in
project management, technology needs assessments, business case analysis,
business process analysis and improvement, software selection methodologies,
and implementation assistance. She focuses on improving business processes,
specializing in human resources, payroll, and finance.
Prior to joining GFOA, Eva was a senior consultant with a private
management - consulting firm for ten years. Eva consulted with private- and public- sector
organizations to implement customer relationship management software and improve current
business processes, productivity, and methodologies. She developed client- specific planning
management tools for county departments and private utilities, created an organization -wide
management system tool that captured productivity /utilization levels of front -line staff, and
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served as a liaison in the software development process, assuring the business requirements and
end -user needs where met and incorporated.
Recent clients have included San Juan County (NM), Town of Firestone (CO), City of Longmont
(CO), Whitman County (WA), Wild Horse Pass Development Authority (AZ), City of Berkeley
(CO), City of Farmington (NM), Cleveland Public Library (OH), and the Gila River Indian
Community (AZ).
Education
• B.A., Political Science, Ball State University
Barry McMeekin, Consulting Practice Manager
Barry McMeekin is the Consulting Practice Manager for GFOA's Research
and Consulting Center. Barry has a broad range of expertise in financial,
purchasing, fleet, facilities, and inventory operational areas, both as consultant
and practitioner. Prior to coming to GFOA, Barry worked for the City of
Pittsburgh, PA, and Allegheny County, PA, where he filled roles including
project lead on initiatives related to improving organizational efficiency,
outsourcing, and technology implementation.
Recent clients have included the City of Beverly Hills (CA), Pasco County Schools (FL), Orange
County Schools (FL), San Bernardino County (CA), Spokane Transit Authority (WA), Bernalillo
County (NM), Clark County (NV), Placer County Water Agency (CA), and Board of Water
Works of Pueblo (CO).
Education
• B.A., University of Pittsburgh
Matt Bubness, Manager
Matt Bubness is a Manager with the Research and Consulting Center. Matt is
working on developing GFOA's best practices for budgeting for school
districts and community colleges, which will be used to support GFOA's
Award for Best Practices in School Budgeting. He also participates in other
consulting engagements and research assignments. Prior to joining GFOA,
Matt worked for Chicago Public Schools and City Colleges of Chicago, most
recently as the operations and finance director for all special education
programming at CPS. Before that, he held roles in operating and capital
budgeting and revenue forecasting. Prior to his local government experience,
Matt worked in the municipal bond field, including credit rating analysis and structuring bond
issuances.
Education
B.S., Public Affairs, Indiana University
M.P.A., Indiana University
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EXHIBIT B
GENERAL TERMS AND CONDITIONS
1. Business License & Tax. Contractor must have a valid City of San Luis Obispo business tax
certificate prior to execution of the contract. Additional information regarding the City's business
tax program may be obtained by calling (805) 781 -7134.
2. Ability to Perform. Contractor 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 federal, state, county, city, and special district
laws, ordinances, and regulations.
Laws to be Observed. Contractor 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.
4. Payment of Taxes. The contract prices shall include full compensation for all taxes that
Contractor is required to pay.
Permits and Licenses. Contractor shall procure all permits and licenses, pay all charges and
fees, and give all notices necessary.
6. Safety Provisions. Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial Safety.
7. Public and Employee Safety. Whenever Contractor'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.
Preservation of City Property. Contractor 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 as a result of Contractor's operations, it shall be replaced or restored at Contractor's
expense. The facilities shall be replaced or restored to a condition as good as when the
Contractor began work.
9. Immigration Act of 1986. Contractor warrants on behalf of itself and all sub - contractors
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.
10. Contractor Non - Discrimination. In the performance of this work, Contractor agrees that it will
not engage in, nor permit such sub - contractors as it may employ, to engage in discrimination in
employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
11. Work Delays. Should Contractor 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 Contractor.
12. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice
and acceptance by the City of the services provided by Contractor (Net 30).
13. Inspection. Contractor shall furnish City with every reasonable opportunity for City to ascertain
that the services of Contractor 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 Contractor of
any of its obligations to fulfill its contract requirements.
14. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment to Contractor.
15. Interests of Contractor. Contractor covenants that it presently has no interest, and shall not
acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree
with the performance of the work hereunder. Contractor further covenants that, in the
performance of this work, no sub - contractor or person having such an interest shall be employed.
Contractor 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, Contractor shall at all times be deemed an independent contractor and not
an agent or employee of the City.
16. Hold Harmless and Indemnification. Subject to the limitation set forth below, Contractor
agrees to defend, indemnify, protect and hold the City and its agents, officers and employees
harmless from and against any and all claims asserted or liability established for damages or
injuries to any person or property, including injury to Contractor's employees, agents or officers
which arise from or are connected with or are caused or claimed to be caused by the acts or
omissions of Contractor, and its agents, officers or employees, in performing the work or services
herein, and all expenses of investigating and defending against same; provided, however, that
Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising
from the established sole negligence or willful misconduct of the City, its agents, officers or
employees.
Contractor's liability for any matter arising under this Agreement or from any transaction
contemplated herein, including without limitation the provision of the Services, shall not exceed
the actual amount paid by an insurer as a result of any claim made with respect to such matter
under Contractor's insurance policies as set forth in Exhibit C (the "Liability Cap "). The City
acknowledges that the Liability Cap is a material term upon which Contractor has relied in
entering into this Agreement and that Contractor would not have entered into this Agreement in
the absence of such provision.
17. Contract Assignment. Contractor 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.
T
18. Termination. If, during the term of the contract, the City determines that Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify Contractor in
writing of such defect or failure to perform; which notice must give Contractor a 10 (ten) calendar
day notice of time thereafter in which to perform said work or cure the deficiency.
If Contractor 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 Contractor to said effect. Thereafter, neither party shall have
any further duties, obligations, responsibilities, or rights under the contract.
In said event, Contractor 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 Contractor as may be set forth in the Amended
Agreement payment schedule; compensation for any other work, services or goods performed or
provided by Contractor 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 Contractor be entitled to
receive in excess of the compensation quoted in its proposal.
The City reserves the right to terminate the contract for convenience at any time upon 30 days'
notice to the Contractor. In the event of termination for convenience, Contractor shall be entitled
to the reasonable value of its services performed up to the date of termination set forth in the
notice of termination, provided that the Contractor shall in no event be entitled to receive any
amount in excess of the compensation quoted in its proposal or for work not authorized by the
City from the date of notice of termination to the date for termination of services specified in said
notice.
19. Ownership of Materials. All original drawings, plan documents and other materials prepared by
or in possession of Contractor as part of the work or services under these specifications shall
become the permanent property of the City, and shall be delivered to the City upon demand.
20. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by Contractor 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
Contractor without the prior written approval of the City.
21. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, Contractor shall
provide such additional copies as are requested, and City shall compensate Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
22. Attendance at Meetings and Hearings. As part of the workscope and included in the contract
price is attendance by the Contractor to public meetings to present and discuss its findings and
recommendations. Contractor shall attend as many "working" meetings with staff as necessary in
performing workscope tasks.
23. Proprietary Items. All work product produced as a result of the Services provided hereunder
shall be the property of the City; however, Contractor's methodologies (e.g., surveys, reference
databases) that it has developed before and during this engagement are the property of Contractor
(collectively, and together with any Contractor proprietary assessment tools, the "GFOA
Intellectual Property "). In particular, in the course of performance hereunder, Contractor may use
(and may authorize the City's personnel to use) certain GFOA Intellectual Property to assist in
engagement completion. The City shall not have or obtain any right or title to or interest in such
GFOA Intellectual Property (or in any modifications or enhancements thereto). Contractor makes
no express or implied warranties of any kind regarding the GFOA Intellectual Property.
EXHIBIT C
INSURANCE
The Contractor 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 Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code
1 (any auto).
Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
4. Errors and Omissions Liability insurance as appropriate to the consultant's profession.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self- Insured Retentions. Any deductibles or self- insured retentions must be declared
to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self- insured retentions as respects the City, its officers, officials, employees and volunteers;
or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Contractor; premises owned, occupied or used by the Contractor;
or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain
no special limitations on the scope of protection afforded to the City, its officers, official,
employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self- insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
The Contractor's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the
City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A:VH.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability and
automobile liability coverage required by this clause must also be provided. The endorsements are to be
signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
10
Gs.t Y QA
Manager Report
Final City Manager Ap roval
Approver Name
Date Approved
City Administration
Michael Codron
8/20/15
Reviewer Routing List
Reviewer Name
Date Reviewed
City Attorney
Jed (with
questions/comments)
7/29
Finance & Information Technology
mwP
8/6
July 29, 2015
FROM: Michael Codron, Assistant City Manager 9KC
PREPARED BY: Shannon Sims, Administrative Assistant III
SUBJECT: Contract with Government Finance Officers Association (GFOA)
RECOMMENDATION
Enter into an agreement with Government Finance Officers Association of the United States and
Canada (GFOA) for organizational assessment services, including a business process review and
developing an action plan in accordance to the terms of the attached agreement. Contract amount is
not to exceed $48,560.
DISCUSSION
Background
An adopted budget and fiscal policy in the City's Financial Plan cal Is for periodic formal reviews of
operations on a systematic ongoing basis. Over the past five years, organizational assessments have
been conducted for Public Works, Community Development, Finance and IT, and City Fire.
Funding is available in the City's budget every other year to support this effort. In 2013, Municipal
Resource Group (MRG) prepared an Organizational Assessment of the Finance and Information
Technology Department (Attachment 1). This assessment looked primarily at the organizational
structure of FIT, and included a review of the Human Resources Department with the concept that a
merger of the two support departments could be warranted. Ultimately, changes were recommended
to the structure of the Finance Division only. Some of those changes have already been
implemented.
Since the 2013 MRG Assessment, implementation of the recommended organizational structure has
included the addition of a Budget Manager position, conversion of the Finance Division Manager to
a Finance Operations Manager position, the creation of a senior accountant position, and other
changes to the supervisory structure and work rotations of the accounting assistants. There has been
some recent turnover in the division and the department is currently recruiting a new Budget
Manager and Senior Accountant.
FIT Assessment - 2015
The assessment services that are recommended at this time will assist the members of the FIT team
by taking a close look at workflows and business processes. A recent e -mail sent to the City Council
by the FIT Director provides a good high -level overview of some of the challenges that the
department has recently faced (Attachment 2). Fundamental challenges associated with payroll,
business tax renewals and appeals, and utility billing, have highlighted the need for a thorough
evaluation. The Human Resources Director and City Manager have determined that the best
approach to address these issues is through additional consultant services. An outside perspective
will help ensure that FIT is not limited by their collective experience, but can identify and
implement best management practices and streamlined processes where possible.
Options Evaluated
In considering the options available to the City for these services, there were three consultants that
were asked for input, and two different approaches were considered, as described below:
Professional Placement — The City Manager and HR Director reached out to two firms
that specialize in temporary placement of qualified professionals that could help our
organization in this capacity. The first was Management Partners, and the second was
Citygate. An interview was conducted with a professional recommended for placement
by Management Partners, and Citygate also identified a potential tit in terms of a
professional placement, but ultimately neither candidate was available during the
timeframes needed.
Consultant Services — The City Manager and HR Director also discussed the
consultative service approach with Management Partners, Citygate, and the consultant
division of Government Finance Officers Association (GFOA). GFOA is a non -profit
service provider with a mission of improving government management. This was the
approach that was ultimately selected.
As described in the attached memo from the City Manager, each firm was evaluated for their ability
to commit the resources needed to provide the business process review for the City (Attachment 3).
A final discussion between the City Manager, HR Director, Community Development Director and
Assistant City Manager resulted in the decision to move forward with GFOA. Finally, Attachment 3
also includes a list of agencies assisted by GFOA provided as references. Community Development
Director Derek Johnson performed the reference checks and each agency provided positive
feedback regarding the personnel, process, and outcomes of the work performed.
Scope of Work
In this case, GFOA is uniquely suited to tarn• Out the . review. . GFOA follows a conceptual process
for conducting its business process review and organizational assessment projects that is customized
to meet the conditions and accomplish the specific goals identified by the City. GFOA's proposal
for the City includes two separate phases.
1) Conduct a Business Process Review— GFOA's business process review will focus on
business process, but also review other critical components such as policies, staffing,
technology, and overall structure — including the FIT Department's role as a support
department within the larger organization, and the ownership of business processes in the
organization that are typically or optimally housed in FIT.
2) Develop an Action Plan — Assessment results are expected to be delivered with a focus
on improvement. GFOA uses a practitioner focused approach that is designed to provide
actionable guidance on how to overcome current issues. According to the proposal,
Comment [DC1]: Why? Was there no one else
willing to propose on the scope of work we provided
or are there Just not other qualified firms that do
this? And on a related note, is their proposal
intended to be the scope of work exhibit? If so, it
needs some formatting clean up. Sloppy
inconsistencies/cut and paste jobs in places
MC: Added a section to discuss the process and
options evaluated
Comment [DC2]: Remind me if we did an RFP
on this and if not why not; if so, how many
proposers did we get, what was the eval criteria and
the results of the eval. Again, are they the only game
going or clearly the best suited to this project and
why?
MC: No RFP per the City's purchasing policies — we
had detailed conversations with three consultants and
through team meetings — Lichtig, Irons, Johnson,
Codron — determined GFOA was the best fit See
Attachment 3 regarding selection process.
Comment [DC3]: Is there intended to be any
focus on the decentralization of functions that has
happened over time, where functions currently live .
and whether and how that should be reconsidered? 1
didn't see that in the proposal expressly, which
seemed like a potentially lost opportunity to me for a
support department, especially if restructuring is a
possible alternative to be considered or
recommended.
MC: We will update the scope to have this addressed
specifically, though this is understood by the
consultant Reorganization is not an expected
outcome, since org structure was recently evaluated
by Tom Sinclair. This project will be focused on
process improvement and workflow
FIT Assessment - 2015
Paqe 3
action plans are prioritized and will be prepared collaboratively with City staff to help
with implementation of recommendations.
FISCAL IMPACT
The City Manager has set aside $55,000 from 2014 -15 Ventures and Contingencies to fund the
project. The contract amount of $48,560 was negotiated with GFOA to provide the attached
scope of work (Attachment 4).
Fiscal Impact Summary
ALTERNATIVES
Wait until new staff is hired to begin the assessment. There are currently three important
recruitments happening in the Finance division. Waiting is not recommended because of
the significant amount of document/process review that the consultant will need to
undertake.
Conduct the review with existing staff resources. Staff could employ a process
improvement methodology and use a cross - departmental team to assess and implement
recommendations. This is not recommended because it is not part of our work program
for existing staff, and FIT would likely benefit more from a best - practices review by a
consultant with a wide range of practical experience, such as GFOA. .
ATTACHMENTS
1. Organizational Assessment FIT Department (April 2013)
2. F.-mail to City Counpii Re ag rdh F1T L2e artment Challen?es
3. Memo from City Manager describing consultant selection proc+ Ss and rel'Crcnccs c leci,ccl
4. Contract for execution by City Manager
a. Exhibit A — GFOA's Business Process Review for FIT
T \City Manager Reports \City Manager Report Template docx
Item
Available Budget
Proposed
Balance
Organizational Assessment
55,000
48,560
6,440
Total
$ 55,000.00
1 $ 48,560.00
1 $ 6,440.00
ALTERNATIVES
Wait until new staff is hired to begin the assessment. There are currently three important
recruitments happening in the Finance division. Waiting is not recommended because of
the significant amount of document/process review that the consultant will need to
undertake.
Conduct the review with existing staff resources. Staff could employ a process
improvement methodology and use a cross - departmental team to assess and implement
recommendations. This is not recommended because it is not part of our work program
for existing staff, and FIT would likely benefit more from a best - practices review by a
consultant with a wide range of practical experience, such as GFOA. .
ATTACHMENTS
1. Organizational Assessment FIT Department (April 2013)
2. F.-mail to City Counpii Re ag rdh F1T L2e artment Challen?es
3. Memo from City Manager describing consultant selection proc+ Ss and rel'Crcnccs c leci,ccl
4. Contract for execution by City Manager
a. Exhibit A — GFOA's Business Process Review for FIT
T \City Manager Reports \City Manager Report Template docx