HomeMy WebLinkAbout118550 R W BECK INC - CONTRACT - RFP - P689 UTILITIES STRATEGIC PLANNING INITIATIVE (4)_..:OFESSIONAL SERVICES AGREEML
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 July 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 Citv. 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:
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SCOPE OF SERVICES
WORK PRODUCTS
The work products for this task will include:
■ Initial project library
■ Supplemental information request
■ Roster of candidates for staffing Fort Collins' internal project teams.
■ Dates and meeting/work space arrangements for identified site visits
■ Agenda and participants in Task 3.0 Strategic orientation
■ Schedule for Task 4.0 interviews
TASK 3.0 PROVIDE STRATEGIC ORIENTATION
OBJECTIVE
In this task, R. W. Beck educates Fort Collins' policymakers, senior managers, and
project team members about the expected results, process design and their
respective roles in the Strategic Planning Initiative. Beck and the Strategic Decisions
Group build understanding of national trends in utility restructuring, the competitive
issues facing Fort Collins Utilities and the Utilities' current performance in areas that
are critical to continued success in a more competitive business environment.
DESCRIPTION
R.W. Beck will conduct a Strategic Orientation Meeting of 4 to 6 hours duration in
Fort Collins. The first 1 to 2 hours will be used to introduce the Strategic Planning
Initiative as well as to answer questions and address any identified concerns. The
meeting will be attended by the Strategic Decisions Group, senior and mid -level
managers, other identified project participants and policymakers (City Council, Power
Board and Water Board members will be invited to attend). During the balance of
the meeting, R. W. Beck consultants will facilitate the transfer of information on electric
utility re -regulation and competitive forces developing in the water utility industry. The
purpose of the task is to come to a common understanding of the market environment
in which Fort Collins can expect to operate. A conceptual description of the market
environment will be developed for use in succeeding tasks.
WORK PRODUCTS
The work products for this task will include:
in Agendas, presentations, and facilitated discussions.
■ A conceptual description of the Utilities' market environment
■ A brief letter report documenting high level results of the orientation meeting.
TASK 4.0 ASSESS FORT COLLINS' COMPETITIVE SITUATION AND PERFORMANCE
OBJECTIVE
In this task, R. W. Beck conducts an initial assessment of Fort Collins' current
performance and capabilities, identifying competitive strengths, limitations and
recommendations for improvement. The assessment will identify priority areas of
P:\COMMON\EXHIH[TA.DOC 12/18/98 R. W. Beck 3
SCOPE OF SERVICES
interest where specific actions can be taken immediately, with little or no additional
analysis. It will also identify those priority areas of interest that require further
analysis and consideration as part of the strategic planning process. The
competitive assessment will be conducted at a "reconnaissance" level, gauging Fort
Collins' performance and capability to perform in the following critical areas:
■ Customer services, market understanding, marketing and sales
■ Governance and organization structure
■ Organization and human resource development
■ Business planning and performance management
■ Financial planning, budgeting and cost management
■ Infrastructure planning, development, operation and maintenance
■ Management information and support services
DESCRIPTION
R. W. Beck will review available written materials relating to organizational
performance, and will conduct additional activities to obtain input from Utilities
managers, employees, key customers, and representatives of the community at
large. Data from these activities will be summarized, presented to the Strategic
Decisions Group for review, and used as the basis for developing the detailed work
plan for the Strategic Planning Phase (Tasks 5.0 through 7.0).
Beginning on the day following the Strategic Orientation meeting, Beck's consultants
will conduct up to 20 individual and small group interviews of approximately 1 hour each
with City Council and Utilities Board representatives, the City Manager and all senior
managers reporting directly to the Utilities General Manager. These interviews will
seek input on the Utilities' current situation, future vision, mission, challenges, and
organizational values, as well as gauge attitudes regarding customer -facing functions.
In addition, Beck's consultants will provide consultation to Fort Collins in the
preparation, conduct and analysis of an employee survey and employee focus group
meetings. Beck will conduct a key customer focus group meeting and a focus group
meeting of community leaders. Beck will compile all of the information obtained from
these activities for use in the competitive assessment and subsequent tasks.
Specific activities will include:
■ Review documents received in response to the Requests for Information
submitted in Tasks 1.0 and 2.0
■ Prepare interview guides, and outside focus group agendas. Consult with Fort
Collins in the development, conduct and analysis of the employee survey and
focus group meetings. Fort Collins will conduct a written survey of Utilities'
employees and up to 4 focus group meetings of 10 to 12 employees each,
selected from throughout the organization
■ Conduct a focus group meeting of 10 to 12 representatives from among the
Utilities' key accounts
■ Conduct a focus group meeting of 15 to 20 representatives from neighborhood
associations and similar organizations
■ Analyze results of surveys, interviews, and focus groups
P:\COMMON\EXHIBITA. OOC 12/18/98 R. W. Beck 4
SCOPE OF SERVICES
■ Prepare a summary written report of key findings and recommendations
■ Presentation of findings and recommendations to a combined meeting of the
electric and water Boards.
WORK PRODUCTS
The work products for this task will include:
■ Interview guides, and focus group agendas
■ Analysis and written summary of findings and recommendations
■ List of "quick win" actions that can be implemented with little or no additional
analysis
■ List of priority areas for further analysis and review in the Strategic Planning
Phase (Tasks 5.0 through 7.0)
TASK 5.0 DEVELOP ORGANIZATIONAL VALUES, VISION & MISSION
OBJECTIVE
In this task, R. W. Beck works with the Strategic Decisions Group to build
understanding of the customer, stakeholder and employee values and vision that
should guide the Utilities as it strives for continued success in a more competitive
business environment. The Strategic Decisions Group will establish a core
statement of values, vision and mission to guide the strategic planning process.
DESCRIPTION
R. W. Beck will review any available written materials relating to organizational
values. Information obtained in the interviews, surveys and focus group activities in
Task 4.0, will be used, along with input from community leaders on the qualities they
value in their utility services and in their relationship with the Fort Collins Utilities.
Values related data from these activities will be summarized and presented to a
combined work session of the Strategic Decisions Group and senior managers for
review, discussion and the development of a core values, vision and mission
statement to guide the working teams in their activities.
Specific activities will include:
■ Summarize values -related information gleaned in Task 4.0
■ Meet with the Strategic Decisions Group and senior managers to prepare a core
values, vision and mission statement
WORK PRODUCTS
The work products for this task will include:
■ Agenda for Strategic Decisions Group meeting
■ Core values, vision and mission statement and guidance document
P;\COMMON\EXHIBITA.DOC 12/18/98 R. W. Beck 5
EXHIBIT B
BUDGET SUMMARY
Task
Task
Consulting
Labor
Total
#
Description
Hours
Fees
Expenses
Cost
1 & 2
Organize & Manage
100
$14,900
$2,600
$17,500
Project
3
Provide Strategic
54
$9,100
$1,500
$10,600
Orientation
4
Assess Competitive
272
$43,400
$4,800
$48,200
Situation & Performance
5
Develop Organizational
72
$12,700
$1,300
$14,000
Values, Vision & Mission
TOTALS
498
$$0,100
$10,200
$90,300
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EXHIBIT C
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.
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EXHIBIT D
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 ('Beck'I with
respect to the following facts:
Beck has been retained by City to provide consulting services 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 parties 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 Beck'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.
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CONFIDENTIALITY AGREEMENT
5. The Agreement shall 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 �,��� rtcS C�ri/►G{rce ®GCC�-��j�
R. W. BECK INC.
Its
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Professional:
With Copy To:
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
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, to include reimbursables, 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. PE ject 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 Statutory
Employer's Liability $1,000,000
Comprehensive General Liability $1,000,000 per occurrence
$1,000,000 aggregate
Comprehensive General Automobile $1,000,000 combined single limit
Professional Liability $1,000,000 per claim and in the aggregate
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
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Professional shall be entit. to use all documents, analyses, and L 3r 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.
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
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PSA 10/97
manner consistent with th, iverall schedule for the performance o, a services hereunder. The
Professional may rely on the accuracy of information provided by the City and its representatives,
except to the extent it is unreasonable for the 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 Thousand One
Hundred Dollars ($80,100.00) plus reasonable expenses as set forth in Exhibit "B" consisting of
one page and incorporated herein by this reference. All such fees and costs shall not exceed
Ninety Thousand Three Hundred Dollars ($90,300.00). 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.
4'� ��
10. Phase II Option. 7The=ofCollinseserves the right to enter into a new
contract, for Phase II 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 II.
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.
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12. Monthly R ort. Commencing thirty (30) days aftt. _he 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 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.
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 of ten (10) days within which to cure said default. In the event the default
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PSA 10/97
remains uncorrected, the F .y declaring default may elect to (a) tern. ,te 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 parry'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 "C", consisting of one (1) page,
attached hereto and incorporated herein by this reference and Exhibit "D", Confidentiality,
consisting of one page and attached hereto and incorporated herein by this reference.
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PSA 10/97
THE CITY O(FF FFORT COLLINS, COLORADO
JoM F. Fischbach
City Manager
By:2,
AM,twV-�-
J mes B. O'Neill 11, CPPO
Di ec,14dr of Purchasing & Risk Management
DATE: 121 Z21 q8
A EST:
JA� Vill% &n A
City Clerk ,.
APPROVED AS TO FORM
Assistant City Attorney
R. W. BECK, INC.
By: ✓%
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PSA 10/97
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EXHIBIT A
FORT COLLINS UTILITIES
STRATEGIC PLANNING INITIATIVE
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. A Strategic Decisions Group, comprised of
policymakers and executive management from the Fort Collins Utilities along with
R. W. Beck's most senior consultants, will direct the entire effort. Senior
management, 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 six months.
R. W. Beck and the Strategic Decisions Group begin the Initiative with an
investigation of the competitive issues facing the Utilities and its current performance
in areas that are critical to continued success in a more competitive business
environment. This phase (Tasks 1.0 through 4.0) could be characterized as a
Competitive Assessment. The objective of this phase is to gather available
information, identify critical issues, define the strategic decisions that must be made
and identify the additional information and analyses needed to make those decisions.
In the Strategic Planning phase (Tasks 5.0 through 7.0) R. W. Beck continues to
work with the Strategic Decisions Group to develop and articulate the values, vision
and mission for the Fort Collins Utilities. Beck also helps organize up to three other
internal teams that assist in conducting focused analyses of the most important
strategic issues, using the information and direction provided in the assessment
phase. The internal teams, with oversight and input from Beck and the Strategic
Decisions Group, then formulate goals, strategies and appropriate measures for
monitoring performance against the plan.
In the final Rollout and Implementation phase (Task 8.0), The Strategic Decisions
Group, with assistance from the internal teams, prepares a roadmap for
implementing the plan, and initiates communications and other actions that will
support its full implementation. Beck assists in this phase by preparing a format for
the development of action plans to implement strategies and by critiquing selected
action plans developed by Fort Collins.
P:\COMMON\EXHI BITA.DOC 12/18/98
SCOPE OF SERVICES
WORK PLAN
R. W. Beck will assist Fort Collins in an assessment of its readiness for competition
and in the development of a strategic business plan for competitive positioning of its
Utilities. R. W. Beck's work will be accomplished in the following tasks:
TASK 1.0 PLAN THE PROJECT & APPROVE A CONTRACT
OBJECTIVE
In this task, R. W. Beck and Fort Collins build further understanding of the strategic
issues facing the Utilities along with the objectives, expected results and deliverable
work products for the Strategic Planning Initiative. Beck obtains information and
opinions from the General Manager and senior management in order to reach
agreement on the work plan, budget and schedule.
DESCRIPTION
R. W. Beck's project manager will meet with the General Manager and Deputy General
Manager to discuss the proposal and to obtain additional information needed to develop
an approved work plan, schedule and budget. Fort Collins will provide selected
documents in response to Beck's initial request for information.
WORK PRODUCTS
Work products for this task will include:
■ R. W. Beck's standard information request for strategic planning, customized for
the Fort Collins Utilities
■ A project work plan, budget, schedule and contract ready for approval by Fort
Collins
TASK 2.0 ORGANIZE & STARTUP THE PROJECT
OBJECTIVE
R. W. Beck builds a general understanding of the Fort Collins Utilities organization,
management information resources, current performance and strategic issues.
Beck, along with Fort Collins' General Manager, Deputy General Manager and
Project Manager, determine membership of the Strategic Decisions Group and
identify candidates for participation on other internal teams. Beck and Fort Collins'
project manager establish project protocols and onsite arrangements.
DESCRIPTION
After reviewing the information provided by Fort Collins in Task 1.0, R. W. Beck will
organize the project library and request follow-up information as required.
R. W. Beck's project manager will meet with Fort Collins' project manager, General
Manager and Deputy General Manager to make specific arrangements for the
strategic orientation meeting and other activities included in the initial site visit by
members of Beck's project team. R. W. Beck's project manager and Fort Collins'
project manager will establish project communication protocols and make
arrangements for onsite project activities.
P:\COMMON\EXHIBITA.DOC 12/18/98 R. W. Beck 2