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HomeMy WebLinkAbout118550 R W BECK INC - CONTRACT - RFP - P689 UTILITIES STRATEGIC PLANNING INITIATIVE (2)PROFESSIONAL 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 R. W. BECK, INC., a corporation, hereinafter referred to as "Professional'. WITNESSETH: 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. Time of Commencement and Completion of Services. The services to be performed pursuant to this Agreement shall be initiated within thirty (30) days following execution of this Agreement. Services shall be completed no later than November 30, 1999. Time is of the essence. Any extensions of the time limit set forth above must be agreed upon in writing by the parties hereto. 3. Early Termination by Ci#y. 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. PSA 10/97 Task 6.1 has been separately contracted by Purchase Order No. 8833485-000-OP issued by the City of Fort Collins on April 12, 1999. Task 6.1 is not a part of the scope of services or authorized fee for this contract. TASK 6.2 PLANNING TEAM ORIENTATION & TRAINING In this task, R. W. Beck will work with MBS to plan and conduct 12 hours of GroupsWork training for all members of the Strategic Directions Team and Focus Area Teams, tentatively scheduled for the week of June 28. At the end of that training (on or about July 1) R. W. Beck will present the work plan, team processes and expected results from Phase 2 of the Strategic Planning Initiative. This will include review and discussion of the team charters as prepared initially by Beck and will serve as formal "kick-off" for the focus area teams. TASK 6.3 PROJECT MANAGEMENT In this task, R. W. Beck will manage the schedule, project budget and overall progress of the teams in achieving their respective objectives. Beck will also prepare monthly status reports, work with FCU's Project Manager to handle project logistics, and prepare correspondence as required to ensure overall coordination of effort. TASK 6.4 FACILITATION OF STRATEGIC DIRECTIONS TEAM In this task, R. W. Beck will facilitate the work of the Strategic Directions Team. Beck consultants will prepare meeting agendas, attend and manage the meetings, document and critique work products, and prepare correspondence as required. Beck and MBS will meet at least monthly (April, then July through November, 1999) with the Strategic Directions Team to monitor the performance of the Focus Area teams, review their work, and provide direction and support, as required. R. W. Beck's level of supplemental support and deliverable work products (beyond the basic services described above) will be determined jointly by FCU's General Manager, with input from the Team and Beck consultants, within a budget allowance authorized by FCU. During the initial meeting of the Strategic Directions Team (April 29, 1999), Beck reviewed the work products from Task 5.0 (mission & value proposition statements). MBS then outlined a process leading to completed mission, value proposition, and core values statements. MBS will provide assistance, as needed, to implement the process and produce the completed statements. Also during the initial meeting, the Strategic Directions Team reviewed draft charters developed by Beck for each of the Focus Area Teams, setting forth their respective purposes, boundaries of activity, expected results, work products, resources and performance accountabilities. These charters will be modified as discussed and presented to the Focus Area Teams during formal kick- off on or about July 1. The Strategic Directions Team, with input from Beck and MBS will monitor the performance of the teams, providing direction and support as needed. TASK 6.5 FOCUS AREA ANALYSES In this task, R. W. Beck will serve as expert resources to the Focus Area Teams; efforts will vary depending on the focus area as outlined in the Phase 2 Organization and Planning document. FCU staff will serve as facilitators for each team, preparing meeting agendas, attending and managing meeting dynamics each month (July through September, 1999). Through its role on the Strategic Directions Team and Focus Area Teams (to a variable extent), Beck will provide input to and critique work products. Additional subject area experts from Beck will be available for consultation, as requested by the teams. R. W. Beck's level of supplemental support and deliverable work products (beyond the basic services described above) will be determined jointly by the Focus Area Team Sponsor and Beck's facilitator, within a budget allowance authorized by FCU. The Focus Area Teams will meet at least twice monthly during the term of Phase 2, or until their work is completed. Their principal function is to carry out additional analyses of current conditions and to consider alternative strategies. The combined work of the Focus Area Teams will be used by the Strategic Directions Team to develop goals, strategies and performance measures aimed at moving FCU to a more competitive position. The teams will remain in place to assist the Strategic Decisions team and senior managers as requested during the remainder of the Strategic Planning Initiative. TASK 6.6 STRATEGY DEVELOPMENT Task 6.6 is not a part of the scope of services or authorized fee for this contract. In this task, the Strategic Directions Team, with input from the Focus Area teams, will articulate FCU's strategic direction, priority goals and performance measures. Information obtained in Tasks 1.0 through 6.5, as previously reported to and discussed with the Strategic Directions Team, will be the basis for strategic thinking and planning. Work will involve the Strategic Decisions Team and the four Focus Area teams individually, and collectively, as needed. R. W. Beck will facilitate up to three work sessions and will assist the Strategic Decisions Group to articulate strategies and an action plan that is clearly understood and embraced by all stakeholders WORK PRODUCTS The work product for this task will be a concise written summary of the Strategic Plan, including situation description, corporate mission, value proposition, core values, vision, goals, strategies and performance measures. TASK 7.0 STRATEGY ROLL -OUT AND IMPLEMENTATION (PHASE 3) Task 7.0 is not a part of the scope of services or authorized fee for this contract. OBJECTIVE In this task, the Strategic Directions Team and the senior managers will develop and articulate specific actions, schedules, accountabilities and organizational interventions needed to communicate and implement the strategic plan. DESCRIPTION Following the strategy development (Task 6.6), R. W. Beck will develop a framework for the preparation of detailed action plans outlining both near -term (1 year) and long-term (3 to 5 year) strategies and supporting actions. This framework will include a format for the development of progress reporting against target performance measures and/or milestones, management delegations, accountabilities and resource allocations. Emphasis will be on those strategies that hold potential for concrete near term successes, as well as the creation of organizational agility in responding to market and operational forces not yet apparent. Work Products Work products for this task will include: ■ A written format for the preparation of action plans, including specific outcomes, schedules, accountabilities and budget resource allocations ■ A written critique of selected action plans prepared by FCU BUDGET SUMMARY R. W. Beck will complete Tasks 6.2 through 6.5 (Basic Services) for a total fixed fee of $84,600, including expenses. The allowance for supplemental services will be used as authorized by FCU and will be paid on the basis of labor hours and actual expenses billed by R. W. Beck. Task # Task Description Consulting Hours Labor Fees Expenses Total Cost 6.2 Planning Team Orientation & Training 50 $ 6,850 $ 1,650 $ 8,500 6.3 Project Management 80 $10,400 $ 200 $10,600 6.4 Facilitation of Strategic Directions Team 180 $25,500 $ 8,240 $33,740 6.5 Focus Area Analyses 180 $26,500 $ 5,260 $31,760 TOTALS Basic Services 490 $69,250 $15,350 $84,600 ALLOWANCE Supplemental Services 192 $29,500 $ 500 $30,000 TOTALS 682 $98,750 $ 15,850 $114,600 EXHIBIT B YEAR 2000 READINESS DISCLOSURE STATEMENT Section 1. To the best of the knowledge of the individual signing this Agreement, Contractor hereby certifies that it has investigated and evaluated those information resources or systems to be provided or used in connection with the performance of this Agreement, and based on the information currently available, Contractor to the best of its knowledge has no reasonable basis to expect that the performance of this Agreement will be impeded or prevented as a result of a failure by Contractor to become "Year 2000 Compliant." Section 2. Contractor agrees to notify the City as soon as reasonably practicable of any information resources or systems that it determines may not be Year 2000 Compliant and may, as a result, materially impair Contractor's ability to perform the Services as set forth in the Agreement. 1 EXHIBIT C CONFIDENTIALITY AGREEMENT This Agreement is entered into this 21" day of October 1998, between the City of Fort Collins, Colorado ("City") and R. W. Beck, Inc., a Washington corporation (" BecV1 with respect to the following facts: Beck has been retained by City to provide consulting seances in connection with a Strategic Planning Initiative for the Fort Collins Utilities. It is anticipated that the City will furnish Beck certain information which is either non- public, confidential or proprietary in nature and the parties desire to protect the confidentiality of this information as appropriate. NOW, THEREFORE, in consideration of permitting the disclosure of certain information and the promises contained herein, the pasties agree as follows: 1. Beck will keep confidential all information marked as confidential by the City (the "Information`, and, except as otherwise permitted herein, will not disclose the Information in whole or in part other than in connection. with the Strategic Planning Initiative. Beck agrees to reveal the Information only to its agents, representatives, attorneys or employees who need to know the Information for the purpose of completing the Strategic Planning Initiative who are informed of the confidential nature of the Information and who agree to act in accordance with the terms of this Agreement. 2. Beck will not be prohibited from disclosing or using any information which; a. is or becomes generally available to the public other than as a result of a disclosure by Beck; b. was already in Be&s possession before any disclosure of the Information by the City; c. has been or is obtained by Beck from a third party (other than one acting on behalf of the City) who Beck has no reason to believe is not lawfully in possession of the Information and who Beck has no reason to believe is in violation of any contractual, legal or fiduciary obligation to the City with respect to the Information; d. is required to be. disclosed by a subpoena or other directive of a court, administrative agency, quasi-judicial body or arbitration panel; or e. is independently developed by Beck. 4. All drawings, programs, software, data, financial information and other written Information submitted by the City to Beck or its representatives shall be promptly returned to the City upon its request. Beck may retain one copy of the information for its legal records. 1 CONFIDENTIALITY AGREEMENT 5. The Agreement shalt be governed by, and construed in accordance with, the laws of the State of Colorado. 6. This Agreement will terminate five years from the date hereof or on such earlier date as may be mutually agreed by the parties. 7. This Agreement is binding upon and will inure to the benefit of the City and Beck and their respective successors and assigns. IN WITNESS WHEREOF, the parties have signed this Agreement the date first written above. CITY OF FORT COLLINS, COLORADO . Its IVAIK4G5 ®Gtf�rt�ltc� R. W. BECK INC By Its K All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: Professional: R. John Miner, Sr. Director R. W. Beck, Inc. 4412 Spicewood Springs RD Suite 705 Austin, TX 8759 8567 City: Mike Smith City of Fort Collins Utilities P. O. Box 580 Fort Collins, CO 80522 With Copy To: Timothy R. Corrigan, National Director R. W. Beck, Inc. 1125 Seventeenth St. Suite 1900 Denver, CO 80202-2615 With Copy To: Opal F. Dick, CPPO, Sr. Buyer City of Fort Collins Utilities P. O. Box 580 Fort Collins, CO 80522 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. 4. Design, Project. Indemnity and Insurance Responsibility. The Professional shall maintain insurance with the following required coverages and minimum limits and, upon request, will provide insurance certificates to the City: Workers' Compensation Employer's Liability Comprehensive General Liability Statutory $1,000,000 $1,000,000 per occurrence $1,000,000 aggregate Comprehensive General Automobile $1,000,000 combined single limit Professional Liability PSA 10/97 $1,000,000 per claim and in the aggregate `1 5. Reuse of Work. All documents, analyses, and other data provided by the Professional for its use in providing services under this Agreement ("Professional's Work Items") are instruments of service and are and shall remain the property of the Professional. The Professional shall be entitled to use all documents, analyses, and other data provided by the City or by others at the City's direction, for the purpose of performing the Services hereunder, however, the City shall retain ownership to any such information. Those items designated in the Scope of Services as Work Products ("Work Products") shall be jointly owned by the Professional and the City. The City shall have the right to retain, copy, modify, or otherwise use all Work Products for its information, reference, or any other purpose in connection with this or other City projects or undertakings. The Professional may, at its sole discretion, copyright any of the Work Products that do not contain confidential or proprietary information of or provided by the City; provided that no action by the Professional shall restrict the City's right to retain, copy, modify, or otherwise use the Work Products for its information, reference, or any other purpose in connection with this or other City projects or undertakings. 6. Standard of Care. The Professional will perform services under this Agreement with the degree of skill and diligence normally practiced by professional engineers or consultants performing the same or similar services. No other warranty or guarantee, expressed or implied, is made with respect to the services furnished under this Agreement and all implied warranties are disclaimed. 7. Consequential Damages. In no event and under no circumstances shall the Professional be liable to the City for any interest, loss of anticipated revenues, earnings, profits, increased expense of operations, loss by reason of shutdown or non -operation due to late completion, or for any consequential, indirect or special damages. PSA 10/97 3 8. Information Provided by Others. The City agrees to make reasonable efforts to provide to the Professional in a timely manner information the Professional determines, in its reasonable discretion, to be necessary for its performance of the services hereunder. It shall be Professional's obligation to identify any such information and notify the city of the same in a manner consistent with the overall schedule for the performance of the services hereunder. The Professional may rely on he accuracy of information provided by the City and its representatives, except to the extent it is unreasonable for professional to do so based on the information otherwise available to the Professional. 9. 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 Eighty-four Thousand Six Hundred Dollars, ($84,600.00) to included reimbursable direct costs. A supplemental allowance of Thirty Thousand Dollars($30,000.00) has been included for items defined in the attached scope. Supplemental work must have prior approval of designated City Representative. 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 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. 10. Phase III Option. The City of Fort Collins reserves the right to enter into a new contract, for Phase III of this work. The final scope of work and compensation shall be mutually agreed to by both parties. Inclusion of this option does not in any way bind the City of Fort Collins to enter into a contract for Phase III. PSA 10/97 4 11. 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. 12. 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. 13. 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 for withholding any portion of Professional's compensation hereunder for the payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose. 14. 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. 15. 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 relieve the Professional of responsibility for the quality or technical accuracy of the work. The City'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. PSA 10/97 5 16. 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. 17. 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. 18. 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. 19. 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. 20. Special Provisions. Special provisions or conditions relating to the services to be performed pursuant to this Agreement are set forth in Exhibit "B", consisting of one (1) page], attached hereto and incorporated herein by this reference and Exhibit "C", Confidentiality, consisting of one page and attached hereto and incorporated herein by this reference. PSA 10/97 6 ATTEST: City IAS Irv, FORM:` THE CITY OF FORT COLLINS, COLORADO By, De.Aq J . Fisch ach 61 City Manager By: Jame4 B. 'Neill II, CPPO Direct r Purchasing & Risk Management DATE: (' Z14 I i `7 R. W. BECK INC. Date: Y-3/1 °J9 ATTEST: - _- (Corporate Seal) GerAnrRtP SeeFE ry `-6 ;IQ\-� <�'A'"-" _O i _=1a pv —_ o a,n TRACY L. ISCHY Nodry p i ubec. swe Of hqs ComMWn EVkn j,,, , PSA 10/97 EXHIBIT "A" SCOPE OF SERVICES OVERVIEW R. W. Beck, Inc. has designed the work plan for the Strategic Planning Initiative to be highly collaborative from start to finish. The principal focus of this effort is the formulation of business strategy; however, the planning process itself is intended to help build an organization, which functions more collaboratively across departmental boundaries. A Strategic Directions Team, comprised of the General Manager and selected senior managers from the Fort Collins Utilities (FCU), along with consultants from R. W. Beck and Managed Business Solutions (MBS), will guide Phase 2 and Phase 3 of the effort. Senior managers, employees, customer groups and other stakeholders will participate and provide input at specific points in the planning process, which is carried out in a series of tasks over a period of approximately 12 months. PHASE 1 COMPETITIVE ASSESSMENT R. W. Beck began the Initiative in December 1998 with a strategic orientation and high level Competitive Assessment of the electric, water, wastewater and stormwater utilities. This phase, completed in March 1999, was an initial look at FCU's current performance and capabilities, identifying competitive strengths, challenges and recommendations for improvement. The assessment identified priority areas of interest where specific actions can be taken immediately, with little or no additional analysis. It also identified those priority areas of interest that require further analysis and consideration as part of the strategic planning process. The competitive assessment was conducted at a "reconnaissance" level, relying heavily on R. W. Beck's knowledge of the utility world and the current body of knowledge within FCU. That body of knowledge included existing documents as well as the knowledge and opinions of FCU's policymakers, management, customers and employees. PHASE 2 STRATEGIC PLANNING In the Strategic Planning phase that follows the Competitive Assessment, four (4) internal teams of FCU employees will conduct focused analyses of the most important strategic questions, using the information and direction provided in the assessment phase as a point of beginning. These Focus Area Teams will carry out their work with oversight and input from the Strategic Directions Team. The Strategic Directions Team will also refine and take its overall direction from the mission, value proposition and core values statements developed earlier by the senior managers. Based on the work of the Focus Area Teams, the Strategic Directions Team, with input from the senior managers, will formulate goals, strategies and appropriate measures for monitoring performance against the plan. At the conclusion of this phase, the plan will be presented to and approved by FCU's policymakers. PHASE 3 ROLLOUT & IMPLEMENTATION In the final Rollout and Implementation phase, The Strategic Directions Team, with further assistance as required from the Focus Area teams and senior managers, will prepare a roadmap for implementing the plan, and will initiate communications and other actions needed to support its full implementation. Work Plan R. W. Beck, working with Managed Business Solutions (MBS), will help FCU assess its readiness for competition and develop a strategic business plan for competitive positioning of its utilities. The competitive challenges facing the electric utility as a result of pending industry re -regulation may be more urgent; however, the water, wastewater and stormwater utilities are also likely to face similar challenges from private contract operators. MBS will work under a separate consulting agreement with FCU. R. W. Beck's work will be accomplished in the following tasks: TASKS 1.0 THROUGH 5.0 (PHASE 1) - COMPLETED TASK 6.0 STRATEGIC BUSINESS PLANNING (PHASE 2) Objectives The strategic focus areas that were identified in the Competitive Assessment provide a starting point for this task. These focus areas embody questions that are considered especially critical to FCU's future success in a more competitive business environment. In this task, the Focus Area Teams will carry out further analyses of current conditions and consideration of alternative strategies. The combined work outputs of the Focus Area Teams will be used by the Strategic Directions Team to develop goals, strategies and performance measures aimed at moving FCU to a more competitive position. The thrust of the strategic plan is to (1) increase FCU's awareness of competitive conditions; (2) improve FCU's capability to quickly adjust to changing markets for utility services; and (3) help FCU operate successfully to achieve its mission, vision and value proposition, while honoring its core values. As stated earlier, the transformation of FCU to a more collaborative organization is central to the achievement of these objectives. TASK 6.1 PHASE 2 ORGANIZATION & PLANNING Description In this task, R. W. Beck will work with MBS to organize and plan the work activities for Phase 2. Beck and MBS will meet once in Fort Collins with FCU's General Manager, Deputy General Manager and Project Manager (meeting held on April 2, 1999). Following this meeting Beck and MBS will confer with FCU by telephone and e-mail, as required, to reach final agreement on the following: ■ Composition, role, scope of activities, deliverables, meeting schedule and resource requirements of the Strategic Directions Team. This information will be documented in a team charter statement. ■ Composition, role, scope of activities, deliverables, meeting schedule and resource requirements for each of the Focus Area Teams. This information will be documented in individual team charter statements. ■ Criteria and processes for selecting Focus Area Team leaders and members from the FCU organization. ■ Startup orientation and training for Focus Area Team leaders and members. ■ Protocols for periodic performance reviews of Focus Area Teams and provision for outside interventions, when needed. ■ Phase 2 schedule, including milestones for presentation and review of results. ■ Consultant scopes of service and budgets.