HomeMy WebLinkAbout06-19-2018 Agenda Item 06 - Centre for Organization Effectiveness contractMeeting Date: 6/19/2018
FROM: Monica Irons, Director of Human Resources
Prepared By:Elizabeth Turbow, Administrative Assistant
SUBJECT:AUTHORIZE CITY MANAGER TO ENTER INTO A SOLE SOURCE
CONTRACT WITH CENTRE FOR ORGANIZATION EFFECTIVENESS
(COE) FOR EMPLOYEE AND LEADERSHIP DEVELOPMENT PROGRAM
RECOMMENDATIONS
1. Authorize the City Manager to execute a five-year sole source agreement with the COE
(Attachment A) to continue a comprehensive employee and leadership development program
for the City of San Luis Obispo.
2. Approve an amount not to exceed $138,550 in 2018-19.
3. Authorize the City Manager to annually approve a contract amount as included in the annual
budget appropriation.
DISCUSSION
At the 2013-14 Budget Supplement, the City Council authorized one-time costs of $170,000,
expended during 2014-15 and 2015-16, to fund the creation of an employee development and
leadership program for the City. In the 2016-17 fiscal year, Council authorized the City Manager
to enter a sole source agreement with COE to continue this programming and funding was
programmed in to the Human Resource Department’s budget for this purpose. The allocated
funds were spent by the end of June 2017. In 2016-17, the program provided over 100 City
employees (an employee may be a participant in multiple trainings or academies) with a variety
of training and development opportunities. During the 2017-18 fiscal year 120 employees went
through academies or targeted trainings on a variety of topics including supervision, managing
transitions, effective meetings, emotional intelligence, and strengths-based performance. Some
offerings, including a regional Leadership Program, was deferred to 2018-19 to gain buy in from
local city managers regarding the timeframe and commitment necessary for such a program to be
successful.
The partnership with the COE has provided assessments, training, and coaching and consultation
on organizational development related issues. These comprehensive, integrated employee
development and leadership programs are based on proven public-sector competencies and have
gone a long way toward ensuring the City is preparing the next generation of employees to
seamlessly continue quality service to the community. In the 2017-18 fiscal year, 58% of 24
employees promoted had attended at least one COE training, with 37% of those promoted
participating in an academy focused on refining supervisory and management skills. Given the
difficulty in recruiting and retaining employees in positions such as police officer, building and
safety, engineering, and municipal finance, developing internal talent is a key strategy to
ensuring the City’s ability to effectively serve the community.
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The past three years have been focused on establishing a strong foundation and “common
language” within the o rganization. With that foundation, the next phase is to strive towards
operational excellence by reinforcing the learning objectives and fully utilizing the tools and
theories presented in the trainings and academies. The proposed offerings in 2018-19 are paced
to align with other priorities in the City, to build on the foundational work already accomplished,
to ensure the continued strong foundation of the competencies and principles with broad
saturation so employees are “speaking the same language,”, and to take advantage of regional
offerings for cost effectiveness. Since the City started working with the COE in 2014, almost all
of the cities in the County along with the County of San Luis Obispo and the cities of Santa
Maria and Lompoc have sent employees to the academies and trainings now offered through the
COE in our region. Continued regional participation is key to ensuring the viability and cost
effectiveness of the program and sets the foundation for regional collaboration on other topics.
FISCAL IMPACT
Funding for this service is recommended to be approved in the 2018-19 Supplemental Budget
within the Human Resources Department budget Contract Services line item as indicated in the
chart below. In addition, staff requests carrying forward exist ing unexpended (due to purposeful
delays) funds that were encumbered in 2017-18 for a total available balance of $138,550.
Item Account Number Amount
2018-19 Budget for COE 100.30100.7227 $90,550
2017-2018 Remaining Funds 100.30100.7227 $48,000*
Total Available Budget $138,550
Cost of Service Not to exceed
$138,550
Total Remaining Balance $0
*This estimated amount will be requested to be carried over from 2017-2018 to 2018-19.
ALTERNATIVES
Issue an RFP for these services. Council could choose to direct staff to issue an RFP for these
services. This alternative may result in other proposals being submitted but considering the City
has experienced excellent results through this consulting group that specializes in local
government workforce development, it is not likely that this effort would result in a different
outcome in terms of price or the effectiveness of the program. The timeframe required to develop
and solicit proposals will further delay much needed employee development and succession
planning.
Attachments:
a- COE Contract 2018-2019
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AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on June 5
th, 2018, by
and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City,
and THE CENTRE FOR ORGANIZATION EFFECTIVENESS, hereinafter referred to as Contractor.
W I T N E S S E T H:
WHEREAS, on June 5th, 2018, City Council authorized the City Manager to execute a sole source
agreement with the Centre for Organization Effectiveness for fiscal year 2018-19.
WHEREAS, Contractor is qualified to perform this type of service and has submitted a proposal to
do so which has been accepted by the City.
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.INCORPORATION BY REFERENCE. Contractor agrees to perform the services set
forth in the Proposal, hereinafter referred to as Exhibit C, which is incorporated herein by this reference.
Contractor further agrees to comply with the City’s standard terms and conditions and insurance
requirements which are attached hereto as Exhibits A and B, respectively, and incorporated herein by this
refer ence. Should there be any conflict between Contractor’s proposa l and the City’s standard terms or
conditions, the City’s standard terms and conditions shall control.
3.CITY'S OBLIGATIONS. For providing programs offered by the Centre for Organization
Effectiveness as specified in this Agreement, City will pay and Contractor shall receive therefor
compensation in a total sum not to exceed $138,550.
4.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
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provide services as set forth in Exhibit C. Contractor further agrees to the contract performance terms and
requirements set forth in Exhibit A and B, respectively.
5.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 Council or City Manager of
the City.
6.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.
7.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 City of San Luis Obispo
Human Resources Department
990 Palm Street
San Luis Obispo, CA 93401
Contractor The Centre for Organization Effectiveness
7310 Miramar Road, Suite 380
Miramar, CA 92126
8.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.
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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 CONTRACTOR
By:____________________________________ By: ___________________________________
City Manager
APPROVED AS TO FORM:
_____________________________________
City Attorney
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Exhibit A
GENERAL TERMS AND CONDITIONS
REQUIREMENTS
1.Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages
and amounts specified in Exhibit B within 10 (ten) calendar days as a precondition to contract
execution.
2.Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate
before execution of the contract. Additional information regarding the City's business tax program
may be obtained by calling (805) 781-7134.
CONTRACT PERFORMANCE
3.Ability to Perform.The 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.
4.Laws to be Observed. The 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 performanc e of the work.
5.Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Contractor is required to pay.
6.Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and
fees, and give all notices necessary.
7.Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial S afety.
8.Public and Employee Safety.Whenever the 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.
9.Preservation of City Property.The 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 resulting from the Contractor's operations, it shall be replaced or restored at the
Contractor's expense. The facilities shall be replaced or restored to a condition as good as when
the Contractor began work.
10.Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontr actors
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.
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11.Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it
will not engage in, nor permit such subcontractors 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.
12.Work Delays. Should the Contractor be obstructed or delayed in the work r equired 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. 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 c omplete 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.
13.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 Contractor
(Net 30).
14.Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the 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.
15.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.
16.Interests of Contractor. The Contractor 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 Contractor further covenants that, in the
performance of this work, no subcontractor or person having such an interest shall be employed.
The 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, the Contractor shall at all times be deemed an independent contractor and
not an agent or employee of the City.
17.Hold Harmless and Indemnification.The 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 the Contractor's employees, agents or officers that arise from or are connected with or
are caused or claimed to be caused by the acts or omissions of the 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 the 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.
18.Contract Assignment. The 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.
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19.Termination. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify the Contractor in
writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar
day notice of time thereafter in which to perform said work or cure the deficiency.
If the Contractor has not performed the work or cured the defic iency within the ten days specified
in the notice, such shall constitute a breach of the contract a nd the City may terminate the contract
immediately by written notice to the Contractor 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 Contractor'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 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 the Contractor as may be set forth in the Agreement
payment schedule; compensation for any other work, services or goods performed or provided by
the Contractor shall be based solely on the City's assessment of the value of the work-in-progress
in completing the overall work scope.
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 Contractor be entitled to receive in excess of
the compensation quoted in its proposal.
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Exhibit B
INSURANCE REQUIREMENTS
Consultant Services
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 covera ge (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code
1 (any auto).
3. 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:
1. 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.
3. 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.
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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:VII.
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.
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Exhibit C
PROPOSAL OF SERVICES
PROPOSAL
City of San Luis Obispo
Employee Development & Learning
FY 2018-2019
Project Description
The City Manager and Human Resources Director for the City of San Luis Obispo has
requested consultant services to facilitate several employee development opportunities over
the 2018-2019 Fiscal Year which will ensure City employees are well-equipped for current
and future demands by focusing on the development of proven public-sector competencies,
preparation for supervisory, program management, and leadership roles in complex
environments. This work will connect to the development programs offered in Fiscal Years
2015-2018 and support the sustainability of the groundwork that has been laid to ensure
continued conversation, collaboration, and engagement of all staff.
Project Scope
The following opportunities will be executed throughout the 2018-2019 Fiscal Years and will
be facilitated by various consultants determined to be the best fit for each engagement.
Additional Academy Programs
City of SLO employees will have the ability to participate in regionally-offered academy
programs including S.T.A.R.T (Supervisors Transition and Readiness Training) and
Supervisor Academy as well as the option of the Manager or Lead ership Academy, depending
on availability of offerings. These academies will be offered at different times throughout
the year.
x S.T.A.R.T –Fall 2018
x Supervisor Academy - Spring 2019
x Regional Management Academy – FY 2018-2019
x Regional Leadership Academy – September 2018-2019
Individual Contributor Programs
The Individual Contributor Programs are newly customized programs designed to meet the
needs of staff who do not have supervisorial responsibility but are interested in gaining
exposure to City-wide best practices.
x Foundations in Excellence – Spring 2019
Alumni Support
To support the ongoing application of tools gained from the Academy Programs, an Alumni
Day will be offered late in the Spring after all new academy cohorts have graduated. The
Centre can help with the design and set up for the day and also facilitate the program.
Additional support for Alumni can be designed as requested (i.e. web-based spot programs,
“Ted-talk” format learning sessions, etc.).
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Additional Solutions to Support Integration and Alignment
Targeted Training Sessions
A total of 6 open-enrollment sessions on different topics to be offered (two sessions) on the
same day, each in a half-day format, and open to all staff. Topic suggestions:
x Change Management/Resiliency
x Operational/Performance Excellence
x DISC/Strengths Applying the Knowledge
Executive Development
As a continuation of development efforts for the executive team, it is an appropriate time to
again gather well-rounded performance feedback for the Department Heads through the
Competency Instrument. A full-day Executive Retreat will include feedback debriefing as
well as appropriately planned development/team-building content for the Executive Team.
Individual coaching will be available for each Department Head, Council, and the City
Manager (up to 2 hours of coaching each).
Proposed Costs & Invoicing Parameters
The following table represents the costs for each program or project as well as the invoicing
parameters of each activity:
City of San Luis Obispo
Learning and Organization Development Program Elements FY 2018-2019
FY 18-19 Budget Assumptions
Budget Allotted for FY 18-19 $100,000
Carryover from Leadership Academy Postponement $ 22,500
Carryover Balance from Public Works Session Payback $ 7,500
Carryover Balance from Executive Development and Coaching Delay $ 8,550
Total Budget
$138,550
Executive Development/Coaching and 360s for five Executives/DHs
•August 2018
•Next five 360s would occur in August 2019 (FY 19-20)
$11,850
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Executive Offsite Retreat
•Summer 2018
•Topic: Taking our Development Investment to the Next Level…
Performance/Operational Excellence
$ 8,000
Executive Offsite Retreat
•January/February 2019
•Topic: TBD, Building on Summer session and work with City Council,
input from community meetings/goal setting work that occurs
$ 8,000
Alumni Day for 100 people (8:30am-2:30pm)
•Agenda TBD
•Likely Spring 2019
$18,000
Targeted Trainings:
•DISC/Strengths Applying the Knowledge ($8,400)
•Offered AM/PM on same day
•Possible cost savings with travel
•Change Management/Resiliency ($8,400)
• Offered AM/PM on same day
•Possible cost savings with travel
•Operational/Performance Excellence ($8,400)
•Offered AM/PM on same day
•Engaging people in bigger picture, not project
management from a technical side
•Possible cost savings with travel
$25,200
HR Consulting Support and City Council/Strategic Planning Support $13,030
For example:
•Council workshop or Executive Offsite with Council – Fall 2018
•Focus on Strategic Planning for City (major City goals and
what are the extras)
Regional Foundations in Excellence ($499/person)
•Potentially City responsible for all 30 seats to
guarantee that it is offered
•City credited if seats are filled by other organizations
$14,970
Regional START ($429/person)
$0
Regional Supervisors Academy ($1,099/person)
$0
Regional Management Academy ($2,249/person)
$0
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Leadership Academy ($2,999/person)
•12 people from City ($36,000)
•13 people from County ($39,000) – this is still
unknown
•City/County credited if seats listed above are filled by
other organizations
Presentations Workshop ($7,000 total) –
$36,000
requirement for Certified Public Manager Credential
•Potentially City pays half ($3,500)
•Potentially County pays half ($3,500)
$ 3,500
TOTAL $138,550
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Proposed by: Accepted by:
___________ ______
____________
Sommer Kehrli Monica Irons
Executive Director, TCFOE Director of HR, City of San Luis
Obispo
Date: ________ Date: _____________
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