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HomeMy WebLinkAbout307110 HDR CONSULTING - CONTRACT - CONTRACT - 18044PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into the day and year set forth below, by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and HDR, hereinafter referred to as "Professional'. W ITNESSETH: In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services. The Professional agrees to provide services in accordance with the scope of services attached hereto as Exhibit "A", consisting of five (5) pages, and incorporated herein by this reference. 2. The Work Schedule. The services to be performed pursuant to this Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit "B", consisting of one (1) page, and incorporated herein by this reference. 3. Time of Commencement and Completion of Services. The services to be performed pursuant to this Agreement shall be initiated within five (five) days following execution of this Agreement. Services shall be completed no later than April 30, 2004. Time is of the essence. Any extensions of the time limit set forth above must be agreed upon in writing by the parties hereto. 4. Early Termination by City. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: PSA 05/01 Summary of Phase II Tasks u Step 1 Conduct Visioning Workshop with Staff u Step 2 Identify Specific High Value Initiatives for the Business Plan u Step 3 Conduct an Initiative Workshop with Staff u Step 4 Development Draft Business Plan & Receive Comments u Step 5 Complete Implementation Plan u Step 6 Publish Business Plan and Implement Phase III - Implementation Phase III revolves around the City staff implementing the overall business plan. The business plan provides a framework for managing the implementation of specific initiatives as well as a methodology for how to measure success of implementation. Lastly, it is strongly encouraged that the City adopt a specific approach for communicating the progress and results of the - business planning process and implementation to key stakeholder groups. PSA 05/01 its" Exhibit "B" Cost Proposal/Estimated Schedule HDR can accomplish the work outlined in this proposal for the Finance Department business plan for $20,000, not including expenses that are projected be less than $600. Mike Freeman is the Project Manager and Stefanie Mosteller the Project Consultant. Mike will lead, organize and perform the work outlined in this proposal. Stefanie will support the project by coordinating and conducting selected employee interviews and the Finance Department computer survey. Mike will be responsible for interviewing all the City's management staff involved in the business plan. The cost includes all work outlined in this document and 10 color, bound reports for each department plan, and a CD containing all project files and final reports. It is estimated that the business planning process for the City will be completed within 2 months of initiation. It is projected that the business planning would begin in November and be completed by the end of December. Recommended Schedule (To be confirmed with City staff) • November — Project Kick-off with City Staff • December — Scoping Meeting with City Staff • January/February 2004 — Department interviews and computer survey administered • January/February — Customer interview held (Utilities, CMO, City Attorney, Transportation, CTS) • February 2004 — Concurrent assessment of initial department business practices • March 2004 — Department business planning activities • March 2004 — Draft business plan submitted • March/April 2004 — Revisions and publish final plan PSA 05/01 11 ACORM CERTIFICATE OF LIABILITY INSURANCE DATE (MM DD YY) 06/Ol/2004 11/21/2003 PRODUCER Lockton Companies THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION 444 W. 47th Street, Suite 900 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR Kansas City Mo 64112-1906 ALTER THE COVEHAGE AFFORDED (816)960-9000 INSURERS AFFORDING COVERAGE INSURED HDR ENGINEERING, INC. 1013472 ATTN: LOUIS J. PACHMAN 8404 INDIAN HILLS DRIVE OMAHA, NE 68114-4049 THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION GENERAL LIABILITY LIMBS A X COMMERCIALLIABILITY GL03504583 06/01/2003 06/01/2004 EACH OCCURRENCE E 1000000 FIRE DAMAGE An one fire E 1,000,000 MADE [AL CLAIMS MADE a OCCUR MED ESP An one arson E 5,000 PERSONAL B ADV INJURY E 1 000 000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE E 1 OOO OOO POLI V [XI PECT X I OC PRODUCTS -COMP/OP AGG i I OOO OOO AUTOMOBILE LIABILITY B X ANY AUTO BAP3504584 06/Ol/2003 06/01/2004 (E. accidenl'INGLE LIMIT i 1,000,000 ALL OWNED AUTOS BAP3504585 BODILY INJURY (Per person) E XXXXXXX SCHEDULED AUTOS TAP3504586 X HIRED AUTOS X NON -OWNED AUTOS BODILY INJURY (Per accident) i XXXXXXX PROPERTY DAMAGE (Per acadent) E XXXXXXX GARAGE LIABILITY ANY Auro NOT APPLICABLE EXCESS LIABILITY ALTO ONLY - EA ACCIDENT E OTHER THAN EA ACC i AUTO ONLY: AGO E XXXXXXX XXXXXXX XXXXXXX E X OCCUR CLAIMS MADE BX052852174 06/01/2003 a UMBRELLA (EXCLUDES PROF. LIAB) DEDUCTIBLE FORM RETENTION E C WORKERS COMPENSATION AND 90-14910-01 06/01/2003 EMPLOYERS' LIABILITY EACH OCCURRENCE i 06/01/2004 AGGREGATE E E E 06/01/2004 X WC STATU- OTH 1,000,000 ] 000 000 XXXXXXX XXXXXXX XXXXXXX E.L. EACH ACCIDENT E 1 000 000 E.L. DISEASE - EA EMPLOYEE E 1,000,000 D OTHER PLN113978408 06/01/2003 ARCHS & ENGS PROFESSIONAL E.L. DISEASEPOLLMIT - ICY IE 06/01/2004 PER CLAM: $I,000,000. AGO: 1 OOO 000 LIABILITY $1,000,000. DESCRIPTION OF OPERATIONS/LOCATION& EHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS CCRTICIPATC Unl nee CITY OF FORT COLLINS ATTN: PURCHASING P.O. BOX 580 FORT COLLINS CO 80522 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOW TOMAIL30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, YYi-FAII. TO-0O_iO;HgLL AUTHORIZED REPRESENTATIVE 25-S(7/97) F.,ae..Re..regarding this .MIACMe,ceased the nRmM.nskd in the 'PmaRPer.eniuhelwreshe eP.elry the client .ow•HDRixor.�—�oACORD CORPORATION 1988 Professional: City: With Copy to: Mike Freeman City of Fort Collins, Purchasing City of Fort Collins, Finance Regional Partner, HDR PO Box 580 PO Box 580 Management Consulting Fort Collins, CO 80522 Fort Collins, CO 80522 19 Old Town Square Fort Collins, CO 80524-2471 In the event of any such early termination by the City, the Professional shall be paid for services rendered prior to the date of termination, subject only to the satisfactory performance of the Professional's obligations under this Agreement. Such payment shall be the Professional's sole right and remedy for such termination. 5. Design, Project Indemnity and Insurance Responsibility. The Professional shall be responsible for the professional quality, technical accuracy, timely completion and the coordination of all services rendered by the Professional, including but not limited to designs, plans, reports, specifications, and drawings and shall, without additional compensation, promptly remedy and correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold harmless the City, its officers and employees in accordance with Colorado law, from all damages whatsoever claimed by third parties against the City; and for the City's costs and reasonable attorneys fees, arising directly or indirectly out of the Professional's negligent performance of any of the services furnished under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $500,000 combined single limits, and errors and omissions insurance in the amount of $1,000,000. 6. Compensation. In consideration of the services to be performed pursuant to this Agreement, the City agrees to pay Professional a fixed fee in the amount of Twenty Thousand Dollars ($20, 000) plus reimbursable direct costs. All such fees and costs shall not exceed Twenty Thousand Six Hundred ($20,600). Monthly partial payments based upon the Professional's billings and itemized statements are permissible. The amounts of all such partial payments shall be based upon the Professional's City -verified progress in completing the services to be performed pursuant PSA 05/01 2 hereto and upon the City's approval of the Professional's actual reimbursable expenses. Final payment shall be made following acceptance of the work by the City. Upon final payment, all designs, plans, reports, specifications, drawings, and other services rendered by the Professional shall become the sole property of the City. 7. City Representative. The City will designate, prior to commencement of work, its project representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the project. All requests for contract interpretations, change orders, and other clarification or instruction shall be directed to the City Representative. The City's Representative is Darin Atteberry, Deputy City Manager. 8. Monthly Report. Commencing thirty (30) days after the date of execution of this Agreement and every thirty (30) days thereafter, Professional is required to provide the City Representative with a written report of the status of the work with respect to the Scope of Services, Work Schedule, and other material information. Failure to provide any required monthly report may, at the option of the City, suspend the processing of any partial payment request. 9. Independent Contractor. The services to be performed by Professional are those of an independent contractor and not of an employee of the City of Fort Collins. The City shall not be responsible forwithholding any portion of Professional's compensation hereunderforthe payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose. 10. Personal Services. It is understood that the City enters into this Agreement based on the special abilities of the Professional and that this Agreement shall be considered as an agreement for personal services. Accordingly, the Professional shall neither assign any responsibilities nor delegate any duties arising under this Agreement without the prior written consent of the City. 11. Acceptance Not Waiver. The City's approval of drawings, designs, plans, specifications, reports, and incidental work or materials furnished hereunder shall not in any way PSA 05/01 3 relieve the Professional of responsibility for the quality or technical accuracy of the work. TheCity's approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement. 12. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default. 13. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period often (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting party commences legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non -defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred because of the default. 14. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 15. Law/Severability. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. PSA 05/01 4 THE CITY OF FORT COLLINS, COLORADO By: Ja es BhOneill II, CPPO, FNIGP Direc r rcag & Risk Management DATE: 2 c I HDR AdriaWJ. Hualk6bee Title: Vice President CORPORATE PRESIDENT OR VICE PRESIDENT Date: //101z0003 ATT ST: (Corporate Seal) Corporate Secretary PSA 05/01 Exhibit "A" Introduction Organizations both public and private struggle with structuring internal support functions to provide excellent customer service to the departments or clients they support in an effective and efficient way. There is and will always be a tension between support functions and operating departments. Cost, quality of service, level of service, and clear roles and responsibilities are some of the more significant issues that tend to get in the way of smooth running and efficient support services groups. Few support functions have clearly defined work programs and service levels that leave the recipient department unclear and confused or not satisfied with the service level. HDR's experience is that a business planning process helps support operations create effective and efficient programs that are oriented toward collaboratively addressing the specific business needs and challenges of its users, be they technology related, financial related, process related, or others. HDR brings a proven business planning approach and process to help Fort Collins address these issues with Finance. The following outlines the recommended approach for completing the business planning process. Recommended Business Planning Process for Finance Kickoff Meetings Staff/Customer Interviews Market Assessment Financial Assessment Typical Deliverables Presentation on Key Findings Visioning Workshop Business Case (a) Initiative Workshop Business Plan Implementation Plan Typical Deliverables Specific Action Plan sm Project Management Producing Results Communicating Progress Typical Deliverables Monthy Reporting Process/Progress Through discussions with City staff, it has been determined that a business planning approach will produce the following results for the Finance Department: u An overall, practical plan for organizing and executing the work of the department that focuses on addressing high value opportunities for improvement u A plan that is based on seeking the input of the department's customers u A plan that will outline how to improve the customer focus of Finance PSA 05/01 u A plan that will outline the organizational, financial, and operational challenges of the department today — and a specific plan for addressing these challenges u A plan that will engage the management team in the overall process o A plan that identifies operational efficiencies and is financially constrained o A plan that produces significant results for both the Finance Department and the City Phase I — Initial Assessment Phase Phase I is organized to logically and successfully launch the overall business planning project and to meet the specific goals and objectives established at the kick-off meeting with the staff and customers of the Finance Department. Phase I is an important overall step in the process in that it provides the opportunity for the consultants to learn about the organization and to identify the preliminary issues that may be addressed in the business planning process. One of the key parts of Phase I will be organizing a meeting of the key operating department heads to communicate about the need for this project and enlist their specific support for making the business plan a success. The goal of the kick-off meeting with this group is to develop commonly held short and long-term goals for Finance and to gain their personal commitment to developing and implementing specific changes that will improve the overall operations of the department. Other key components of Phase I include addressing key market, organizational, and financial issues. The following section outlines these steps. Market Assessment The market assessment provides insight into the overall environment in which the department operates. The market assessment focuses on the following types of issues: u Overall changes happening in the municipal finance marketplace u Key trends that will impact the department u Analysis of existing programs planned to address upcoming trends The information from this assessment provides the backdrop for further developing the business plan and provides factual information against which specific ideas and issues can be validated. Organizational Assessment The organizational assessment helps identify those issues that may be holding the organization back from achieving long-term success. The organizational assessment is designed to review a broad range of issues that include the following: o Overall Strategy • Why do we exist? • What is our purpose? • Do we have a clearly stated and focused strategy for meeting our goals? o Strategy Execution PSA 05/01 • How do we plan and get our work done? What is our approach? What are our processes? • How is work prioritized? How is success defined? How do we execute our plans? o Organizational Culture • Does the culture encourage and foster high performance? • How does the organization monitor its progress? o Organizational Structure • Are roles and responsibilities dearly defined within the department and with those we serve? • Are there clearly defined, and logical reporting relationships? • Are we organized to implement our plans quickly? • Is communication from management from employees and employees to management effective? • How well does our department communicate with the key stakeholders we serve? o People • Do we have the right people in the right places? • Do our people have the skills and the tools to be successful? o Customer Focus • What specific tools and techniques do we use to measure customer satisfaction? • How do we incorporate customer feedback into changes in our work processes? o Leadership • Do our leaders and managers articulate what success is? • Do our managers identify opportunities and recommend changes in strategy? o Operations • Business model — best model for long-term success? • Organizational structure — does it work? • Staffing levels — appropriate to vision, mission, goals? Staff perspectives on reorganization and meeting future objectives • Are work processes and practices up-to-date? Are we doing the right kinds of things to best serve our customers? Financial Assessment Over time, to be successful, any organization must have sufficient, re -occurring revenue sources to meet its goals. In the financial assessment, the consultants take a broad look at the varying revenue sources of the City and provide insight into the adequacy of those funds to accomplish the mission of Finance. In the assessment, the following issues are examined: PSA 05/01 o Finances • Operations & maintenance analysis Capital planning analysis Sources and uses analysis M Analysis of gaps in long-term finances compared with needs/goals Summary of Phase I Tasks u Step 1 Kick-off Meetings o Department Head team o Finance staff u Step 2 Conduct Interviews o Internal staff o Customers u Step 3 Market Assessment u Step 4 Organizational Assessment u Step 5 Financial Assessment u Step 6 Summarize Findings Phase II — Opportunities & Plan Formation The key to Phase II is the development of a specific vision, mission, and goals for each department that will become the basis of the overall business plan. HDR will develop the vision, mission, and goals in concert with the department head team, the Finance Director, department staff, and key customer groups. Phase II will result in the identification of high -value initiatives the Departments will implement to meet the overarching objectives. The business plan will detail 4-6 top priorities for each department to accomplish in the coming 12 to 18 month time period - that will be integrated into the overall strategy and to the extent required, budget process. Each initiative will be fully thought out and a specific implementation plan will be developed that will guide the staff through initiation to project completion. An important task in Phase II is the visioning workshop. HDR will guide the department through a practical visioning and goal setting process that will result in a 3-5 year vision for the department and the specific steps required to move in that direction. The visioning workshop is highly interactive for the participants and results in an authentic and implementable approach. HDR will facilitate the process and add industry expertise to the goal setting and initiative identification to help the City produce the best plans possible. Following the visioning workshop, the HDR staff will build each high priority initiative identified into conceptual implementation plan. The implementation plan will outline why the initiative is being pursued, what benefit it will produce, who will lead it, and how it will be done and at what cost. Once these initiatives are developed, the HDR/City team will re -convene and review the initiatives and then collaboratively build a detailed implementation plan. The result of this meeting will be the creation of a plan to implement the specific initiatives. These initiatives are then used along with the background material generated in Phase I to create the draft business plan. PSA 05/01