HomeMy WebLinkAboutStaff Report 4560
City of Palo Alto (ID # 4560)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Enterprise Resource Planning Evaluation Assessment
Contract
Title: Approval of Professional Services Contract with Plante & Moran, PLLC
for Enterprise Resource Planning Evaluation Assessment in the Amount of
$142,175
From: City Manager
Lead Department: IT Department
Recommended Motion
Staff recommends that Council consider the following motion:
Approve, and Authorize the City Manager or His Designee to Execute, the Attached Professional
Services Contract with Plante & Moran, PLLC in the Amount Not to Exceed $142,175. This
Amount Comprises the Professional Services Fee of $129,250 and a 10% Contingency of
$12,925.
Background
The City’s history with SAP began in 2002 when the City selected SAP as its preferred vendor for
an Enterprise Resource Planning system with the purpose of integrating various business
processes within the City. In fiscal year 2003, the implementation of the SAP Enterprise Central
Component (ECC 6.0), SAP core modules, were completed and the SAP system has been
running in the City since 2003, supporting Accounting, Finance, Purchasing, Project
Management, Plant Maintenance, Budgeting, Payroll, Human Resource Management, and
Service Order management. In 2009, the City completed a major upgrade to the SAP ERP
system and, which also replaced the former utility billing system (Banner) with the
implementation of the SAP IS-U module, Customer Relationship Management (CRM), Utilities
Customer Electronic Services (also known as My Utilities Account customer portal) and Business
Intelligence systems (BI).
Both business and technology needs have changed since the current ERP solution was selected
and implemented. Therefore, the City desires to conduct a comprehensive evaluation to
determine a solution to reduce IT application and infrastructure support costs, improve
flexibility, increase user friendliness and intuitiveness of the system, facilitate further
automation of business processes, and improve quality and reliability of information for
City of Palo Alto Page 2
decision making. The assessment does not preclude a decision to remain on SAP completely or
partially going-forward since their recent product announcements indicate a departure from
the past and a shift to contemporary cloud-provided services.
Discussion
The City of Palo Alto requires the services of an Enterprise Resource Planning consultant to
perform an analysis of City’s current SAP environment, business processes and the City’s
strategy; evaluate the ERP market place; and help the City determine a refreshed vision for the
City’s ERP needs. Consultant to perform the following:
Project Management
o Develop a project organizational structure, and charter detailed project plan
Project Initiation
o Conduct a formal project kickoff meeting
Enterprise Resource Planning Needs Assessment
o Defining process-related issues and opportunities for improvement
Review Documents
o Review relevant documentation to understand the current SAP related operations
and technologies
Conduct Departmental Interviews
Conduct Comparative Research
Prepare and Present Enterprise Resource Planning Needs Assessment Report
City Bid Process
RFP Issued February 10, 2014
Non-mandatory Pre-Proposal Teleconference February 19, 2014
Deadline for questions, clarifications February 24, 2014 at 1:00 PM
City of Palo Alto’s response to questions February 27, 2014
Proposals Due
Total of 10 responses received
March 18, 2014 no later than 3:00 PM
Consultant Interviews
Total of 3 vendors were interviewed
April 4, 2014 & April 14, 2014
Consultant selected: Plante Moran April 29, 2014
RESOURCE IMPACT
Funding for this study in the Information Technology Fund was approved by the City Council as
part of the Fiscal Year 2014 Adopted Budget.
POLICY IMPLICATIONS
Approval of these contracts is consistent with current City policies.
City of Palo Alto Page 3
ENVIRONMENTAL REVIEW
This award of contract for professional software services is not a project under the California
Environmental Quality Act (CEQA), therefore, no environmental review is required.
Attachments:
City of Palo Alto Contract Signed (PDF)
CITY OF PALO ALTO CONTRACT NO. S14152736
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND PLANTE & MORAN, PLLC
FOR PROFESSIONAL SERVICES
This Agreement is entered into on this 6th day of May, 2014, ("Agreement") by and
between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and
PLANTE & MORAN, PLLC, a Michigan Professional Limited Liability Company, located at
27400 Northwestern Highway, Southfield, Michigan, 48034 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to conduct a comprehensive evaluation of its ERP System ("Project") and
desires to engage a CONSULTANT to assess CITY's current use of its ERP System in order to help
the CITY determine a refreshed vision for the CITY's ERP needs in connection with the Project
("Services").
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to provide the
Services as more fully described in Exhibit "A", attached to and made a part of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in
this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in
Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
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SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution
through completion of the services in accordance with the Schedule of Performance attached as
Exhibit "B" unless terminated earlier pursuant to Section 19 of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of
Services under this Agreement. CONSULTANT shall complete the Services within the term of this
Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part
of this Agreement. Any Services for which times for performance are not specified in this Agreement
shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner
based upon the circumstances and direction communicated to the CONSULTANT. CITY's
agreement to extend the term or the schedule for performance shall not preclude recovery of damages
for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit "A", including both payment
for professional services and reimbursable expenses, shall not exceed One Hundred Twenty Nine
Thousand Two Hundred Fifty Dollars ($129,250). In the event Additional Services are authorized,
the total compensation for services and reimbursable expenses shall not exceed Zero Dollars ($0).
The applicable rates and schedule of payment are set out in Exhibit "C-1", entitled "HOURLY
RATE SCHEDULE," which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed
without the prior written authorization of CITY. Additional Services shall mean any work that is
determined by CITY to be necessary for the proper completion of the Project, but which is not
included within the Scope of Services described in Exhibit "A".
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the services performed and the applicable charges (including an
identification of personnel who performed the services, hours worked, hourly rates, and reimbursable
expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-1"). If applicable,
the invoice shall also describe the percentage of completion of each task. The information in
CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall
send all invoices to the CITY's project manager at the address specified in Section 13 below. The
CITY will generally process and pay invoices within thirty (30) days of receipt.
SECTION 6. OUALIFICATIONS/STANDARD OF CARE. All of the Services shall be
performed by CONSULTANT or under CONSULTANT' s supervision. CONSULTANT represents
that it possesses the professional and technical personnel necessary to perform the Services required
by this Agreement and that the personnel have sufficient skill and experience to perform the Services
assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted,
have and shall maintain during the term of this Agreement all licenses, permits, qualifications,
insurance and approvals of whatever nature that are legally required to perform the Services.
All of the services to be furnished by CONSULTANT under this agreement shall meet the
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professional standard and quality that prevail among professionals in the same discipline and of
similar knowledge and skill engaged in related work throughout California under the same or similar
circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and
in compliance with all federal, state and local laws, ordinances, regulations, and orders that may
affect in any manner the Project or the performance of the Services or those engaged to perform
Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all
charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS.
CONSULTANT shall correct, at no cost to CITY, any and
all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives
notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design
documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors,
omissions or ambiguities discovered prior to and during the course of construction of the Project.
This obligation shall survive termination of the Agreement.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%)
of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY
for aligning the PROJECT design with the budget, incorporate CITY approved recommendations,
and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing
the Services under this Agreement CONSULTANT, and any person employed by or contracted with
CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an
independent contractor and not an agent or employee of the CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or
transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations
hereunder without the prior written consent of the CITY manager. Consent to one assignment will
not be deemed to be consent to any subsequent assignment. Any assignment made without the
approval of the CITY manager will be void.
SECTION 12. SUBCONTRACTING.
®Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to
be performed under this Agreement without the prior written authorization of the CITY manager or
designee.
['Option B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that
subconsultants may be used to complete the Services. The subconsultants authorized by CITY to
perform work on this Project are:
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CONSULTANT shall be responsible for directing the work of any subconsultants and for any
compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning
compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
Subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of
the CITY manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Adam Rujan as the
project director to have supervisory responsibility for the performance, progress, and execution of the
Services and Mike Riffel as the project manager to represent CONSULTANT during the day-to-day
work on the Project. If circumstances cause the substitution of the project director, project
coordinator, or any other key personnel for any reason, the appointment of a substitute project
director and the assignment of any key new or replacement personnel will be subject to the prior
written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly
remove personnel who CITY finds do not perform the Services in an acceptable manner, are
uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to
the safety of persons or property.
The CITY's project manager is Michael Tsao, project manager, Division, Information Technology,
Palo Alto, CA 94303, Telephone:650-617-3114. The project manager will be CONSULTANT's
point of contact with respect to performance, progress and execution of the Services. The CITY may
designate an alternate project manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including
without limitation, all writings, drawings, plans, reports, specifications, calculations, documents,
other materials and copyright interests developed under this Agreement shall be and remain the
exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees
that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested
in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual
property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make
any of such materials available to any individual or organization without the prior written approval of
the CITY Manager or designee. CONSULTANT makes no representation of the suitability of the
work product for use in or application to circumstances not contemplated by the scope of work.
SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during
the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to
matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such
records for at least three (3) years after the expiration or earlier termination of this Agreement.
SECTION 16. INDEMNITY.
❑[Option A applies to the following design professionals pursuant to Civil Code Section
2782.8: architects; landscape architects; registered professional engineers and licensed
professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall
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protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and
agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of
any nature, including death or injury to any person, property damage or any other loss, including all
costs and expenses of whatever nature including attorneys fees, experts fees, court costs and
disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or
willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
N[Option B applies to any CONSULTANT who does not qualify as a design professional as
defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law,
CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members,
officers, employees and agents (each an "Indemnified Party") from and against any and all demands,
claims, or liability of any nature, including death or injury to any person, property damage or any
other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees,
court costs and disbursements ("Claims") resulting from, arising out of or in any manner related to
performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors
under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance of CONSULTANT's services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant,
term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not
be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of
any subsequent breach or violation of the same or of any other term, covenant, condition, provision,
ordinance or law.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full
force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D".
CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an
additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers
with AM Best's Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to
transact insurance business in the State of California. Any and all contractors of CONSULTANT
retained to perform Services under this Agreement will obtain and maintain, in full force and effect
during the term of this Agreement, identical insurance coverage, naming CITY as an additional
insured under such policies as required above.
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18.3. Certificates evidencing such insurance shall be filed with CITY concurrently
with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk
Manager and will contain an endorsement stating that the insurance is primary coverage and will not
be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the
Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the
insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to
CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the
cancellation or modification within two (2) business days of the CONSULTANT's receipt of such
notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the
insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions
of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be
obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as
a result of the Services performed under this Agreement, including such damage, injury, or loss
arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The CITY Manager may suspend the performance of the Services, in whole or
in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written
notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately
discontinue its performance of the Services.
19.2. CONSULTANT may terminate this Agreement or suspend its performance of
the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a
substantial failure of performance by CITY.
19.3. Upon such suspension or termination, CONSULTANT shall deliver to the
CITY Manager immediately any and all copies of studies, sketches, drawings, computations, and
other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given
to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will
become the property of CITY.
19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid
for the Services rendered or materials delivered to CITY in accordance with the scope of services on
or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided,
however, if this Agreement is suspended or terminated on account of a default by CONSULTANT,
CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's
services which are of direct and immediate benefit to CITY as such determination may be made by
the CITY Manager acting in the reasonable exercise of his/her discretion. The following Sections
will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25.
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will
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operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY:
Office of the CITY Clerk
CITY of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULTANT covenants that it presently has
no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would
conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement,
it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT
certifies that no person who has or will have any financial interest under this Agreement is an officer
or employee of CITY; this provision will be interpreted in accordance with the applicable provisions
of the Palo Alto Municipal Code and the Government Code of the State of California.
21.3. If the Project Manager determines that CONSULTANT is a
"CONSULTANT" as that term is defined by the Regulations of the Fair Political Practices
Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure
documents required by the Palo Alto Municipal Code and the Political Reform Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color, gender, age, religion,
disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status,
weight or height of such person. CONSULTANT acknowledges that it has read and understands the
provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section
2.30.510 pertaining to nondiscrimination in employment.
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SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally Preferred
Purchasing policies which are available at the CITY's Purchasing Department, incorporated by
reference and may be amended from time to time. CONSULTANT shall comply with waste
reduction, reuse, recycling and disposal requirements of the CITY's Zero Waste Program. Zero
Waste best practices include first minimizing and reducing waste; second, reusing waste and third,
recycling or composting waste. In particular, CONSULTANT shall comply with the following zero
waste requirements:
• All printed materials provided by CONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes,
invoices, reports, and public education materials, shall be double -sided and printed
on a minimum of 30% or greater post -consumer content paper, unless otherwise
approved by the CITY's Project Manager. Any submitted materials printed by a
professional printing company shall be a minimum of 30% or greater post -consumer
material and printed with vegetable based inks.
• Goods purchased by CONSULTANT on behalf of the CITY shall be purchased in
accordance with the CITY's Environmental Purchasing Policy including but not
limited to Extended Producer Responsibility requirements for products and
packaging. A copy of this policy is on file at the Purchasing Office.
• Reusable/returnable pallets shall be taken back by the CONSULTANT, at no
additional cost to the CITY, for reuse or recycling. CONSULTANT shall provide
documentation from the facility accepting the pallets to verify that pallets are not
being disposed.
SECTION 24. NON -APPROPRIATION
24.1. This Agreement is subject to the fiscal provisions of the Charter of the CITY
of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty
(a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal
year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion
of the fiscal year and funds for this Agreement are no longer available. This section shall take
precedence in the event of a conflict with any other covenant, term, condition, or provision of this
Agreement.
SECTION 25. MISCELLANEOUS PROVISIONS.
25.1. This Agreement will be governed by the laws of the State of California.
25.2. In the event that an action is brought, the parties agree that trial of such action
will be vested exclusively in the state courts of California in the County of Santa Clara, State of
California.
25.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value of
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legal services provided by attorneys employed by it as well as any attorneys' fees paid to third
parties.
25.4. This document represents the entire and integrated agreement between the
parties and supersedes all prior negotiations, representations, and contracts, either written or oral.
This document may be amended only by a written instrument, which is signed by the parties.
25.5. The covenants, terms, conditions and provisions of this Agreement will apply
to, and will bind, the heirs, successors, executors, administrators, assignees, and CONSULTANTs of
the parties.
25.6. If a court of competent jurisdiction finds or rules that any provision of this
Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this
Agreement and any amendments thereto will remain in full force and effect.
25.7. All exhibits referred to in this Agreement and any addenda, appendices,
attachments, and schedules to this Agreement which, from time to time, may be referred to in any
duly executed amendment hereto are by such reference incorporated in this Agreement and will be
deemed to be a part of this Agreement.
25.8 If, pursuant to this contract with CONSULTANT, CITY shares with
CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about
a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and
appropriate security procedures to protect that Personal Information, and shall inform CITY
immediately upon learning that there has been a breach in the security of the system or in the security
of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing
purposes without CITY's express written consent.
25.9 All unchecked boxes do not apply to this agreement.
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25.10 The individuals executing this Agreement represent and warrant that they have
the legal capacity and authority to do so on behalf of their respective legal entities.
25.11 This Agreement may be signed in multiple counterparts, which shall, when
executed by all the parties, constitute a single binding agreement
IN WITNESS WHEREOF, the parties hereto have by their duly authorized
representatives executed this Agreement on the date first above written.
CITY OF PALO ALTO
CITY Manager
APPROVED AS TO FORM:
Senior Asst. CITY Attorney
Attachments:
EXHIBIT "A":
EXHIBIT "B":
EXHIBIT "C":
EXHIBIT "C-1":
EXHIBIT "D":
Name:
Title:
CONSULTANT
PLANTE & MORAN, PLLC
By: Ad -
140,1,44 R. vJ -Iv
?r+n.TA, erg_
SCOPE OF WORK
SCHEDULE OF PERFORMANCE
COMPENSATION
SCHEDULE OF RATES
INSURANCE REQUIREMENTS
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EXHIBIT "A"
SCOPE OF SERVICES
CONSULTANT shall assist CITY to conduct an Enterprise Resource Planning Evaluation as
follows:
The City of Palo Alto requires the services of an ERP CONSULTANT to perform an analysis of
CITY's current SAP environment, business processes and the CITY's strategy; evaluate the ERP
market place; and help the CITY determine a refreshed vision for the CITY's ERP needs.
The ERP CONSULTANT will present a comprehensive evaluation report to the CITY with the
following information:
• Gap analysis, proposer will identify deficiencies within the current system's
business and technology.
o Propose opportunities for improved system design and efficiency;
o Identify pain -points and challenges (weaknesses);
o What are the risks and opportunities;
• Identify the effectiveness of the existing system in meeting the business needs of the
CITY.
o Identify the pros and cons of using the current application to fulfill these
needs;
o Estimate the time and costs to implement and support;
o Compare these costs to alternatives;
• Conduct an overall evaluation of existing system hardware (servers, backup
appliance, and Firewall).
o Identify the pros and cons of the current hardware;
o Propose opportunities for improvement and costs;
• Conduct an overall evaluation to determine if the CITY should solicit proposals from
other ERP solution providers and provide the business case to support such an
endeavor.
• Benchmark support and maintenance costs (i.e. to similar sized cities and
municipalities.)
• Determine if the current application allows the ability to respond quickly and cost-
effectively to changing business and technical needs;
• The CONSULTANT will conduct a series of time extensive, on -site interviews with
the various department personnel to fully assess the existing ERP system, as well as
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identifying future ERP needs. The following interviews and meetings, as a minimum
will be required:
Administrative Services
o Budget
o Accounting
o Payroll
o Purchasing
o Store
Utilities
o Billing Management
o Customer Service and Customer Relationship Management
o Device Management
o Financial Contract Accounts
o Utilities Customer Electronic Services
o Work Management
o Business Intelligence
People Strategy & Operations
o Processes and Management
Public Works
o Refuse
Information Technology
o Technology Strategy and Roadmap
All Other Departments (CITY Attorney, CITY Auditor, CITY Clerk, CITY Manager,
Community Services, Planning & Community Development, Information Technology,
Library, Police, and Fire)
o Budget/Position
o Procurement
o Time Entry
• Proposer shall identify and describe expectations of what shall be the CITY's
responsibilities in performing the above Tasks in detail.
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• The Project Manager and vendor will develop milestones, deliverables, and payment
schedule upon vendor selection.
Tasks:
Phase 0: Project Management
Phase Objective and Summary of Activities: The purpose of this phase is to conduct activities that
are relevant to managing the project and enhancing its success for the CITY. The major activities to
be performed are as follows:
• Develop a Project Organizational Structure that defines staff roles and expectations
• Develop a Project Charter that provides a framework from which the project will
progress
• Develop a detailed Project Plan identifying the activities, responsibilities and timing
of tasks necessary to complete the project
• Establish a Project Collaboration Environment to act as a repository for project
information
• Conduct periodic status meetings to monitor project progress
Project Initiation
A project initiation conference call will be conducted to introduce the project team, finalize the
project scope, deliverables and timetables. These objectives will be accomplished through the
development of a project organizational structure, project charter, detailed project plan and regularly
scheduled progress meetings. In addition, CONSULTANT will conduct a formal project kickoff
meeting for CITY participants at a mutually convenient time.
Define Project Organizational Structure
As standard practice in the majority of our CONSULTANT's engagements, especially those related
to technology and process transformation, CONSULTANT has designed a very collaborative
approach to ensure a high probability of success.
During the early stages of the project CONSULTANT suggests creating a cross -functional group of
representatives from essential departments to be involved in the process. This group will be involved
in all aspects of defining system needs, selecting a new system and creating an environment of
collaboration and communication between critical organizational departments. They are suggested to
increase the probability of long-term project success within CITY.
Additionally, CONSULTANT would also anticipate formation of project teams that consist of
process owners and process end -users of the various processes being executed (i.e., Core
Accounting, Procurement, Budgeting, etc.) These teams would be used to validate developed system
requirements and provide input during the vendor due diligence phase of the project. It is also
anticipated that these groups would also form the basis of the project teams during the
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implementation phase of the project.
Develop Project Charter
At the start of the project, a Project Charter will be developed that will provide a framework for the
following areas of focus:
• Project overview
• Vision statement
• Project stakeholders
• Project duration
• Project influences
• Scope plan (both in and out of scope items)
• Project staffing
The Project Charter will be provided to CITY for review and approval prior to commencing
significant project activities.
Develop Project Plan
CONSULTANT will work with CITY to incorporate the following into a Microsoft Project TM Plan:
• Major phases and milestones
• Key work tasks and their due dates with assigned responsibility
CONSULTANT believes that the tentative project schedule has many expectations of allotted time
that are appropriate and reasonably attainable. CONSULTANT believes that the allotted time for
certain very important tasks and activities such as the finalist ERP vendor demonstrations and other
due diligence activities may require additional time in order to meet reasonable convenience and
workload balancing of CITY staff.
CONSULTANT will work with the leadership group during this activity to design a Project Plan that
is appropriate and meets CITY's overall priorities.
Schedule and Moderate Project Status Meetings
Continuous feedback is the key to a successful project. In this way, problems can either be avoided
entirely, or addressed early on, to minimize wasted effort and keep the project on schedule.
CONSULTANT will schedule periodic status conference calls with CITY's leadership group to
collectively:
• Report on the status of the Project Plan and timeline
• Re -schedule tasks as necessary and update Project Plan
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• Discuss major open issues and develop strategies to address them
Phase 1: ERP Needs Assessment
Phase Objective and Summary of Activities: The purpose of this phase is to conduct a needs
assessment of the current SAP environment related to key municipal process areas relevant to the
project for the purpose of defining process -related issues and opportunities for improvement.
Activities to be included in this phase are as follows:
• Obtain and review relevant documents to obtain background information on the
current and desired ERP environment
• Assess CITY's current technology infrastructure and SAP environment
• Conduct departmental and cross -functional interviews
• Develop an ERP Needs Assessment report identifying the effectiveness of the
existing system in meeting the business needs of the CITY and options and
alternatives for a future path
Review Documents
CONSULTANT will request and review the appropriate, relevant documentation to gain a
comprehensive understanding of CITY's SAP -related operations and current technologies.
Documents to be reviewed include the following:
• Mission Statements
• Previous studies that are relevant to the project
• Relevant operating policies and procedures
• Relevant SAP Implementation Documentation
• Relevant SAP System Documentation
• Relevant process and function descriptions/handbooks, pre-existing workflow
documentation/flowcharts, such as those that CITY has already developed
• Organizational charts
• Cost models, current operating budget detail, purchasing plans for technology, etc.
• Relevant hardware, software and network diagrams, and/or other documents, illustrating the
layout, networking, etc.
• Listing of existing systems supporting the various business processes that will be evaluated
for potential replacement or interfacing to the new ERP
• Listing of additional "shadow systems" and non-integrated systems
• Listing of transaction & operating volumes anticipated for the future ERP environment
• Critical systems to be interfaced with the new software
• Outstanding enhancement requests on current relevant systems
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• Locations of all sites involved in the project, identification of sites that share common
property, identification of sites to be visited, and schedules of staff for visits
• CITY standards for hardware, software, network operating systems, protocols, etc.
• Departmental interview questionnaires
Assess CITY's Information Technology Infrastructure
CONSULTANT will gather technical information from CITY staff directly involved with supporting
the current technical environment. The results of reviewing documentation and staff discussions will
allow CONSULTANT to identify and document the legacy technologies, infrastructure, and
facilities. The potential implementation and administration of a new software solution will require a
thorough and responsive support and communication infrastructure.
This activity will include a write up of the current IT infrastructure and related technologies which
will, at a minimum:
• Identify the pros and cons of the current hardware environment
• Propose opportunities for improvement
Conduct Departmental Interviews
CONSULTANT anticipates using a participative approach involving CITY staff interacting with our
CONSULTANTs to assess SAP and other current software systems, identify the strengths and
limitations in existing systems, identify process improvements, realistic timelines, and staffing
impacts. CONSULTANT has found that an inclusive approach tends to yield the greatest return to
the client and dramatically improves implementation success rates. After reviewing the
documentation collected, CONSULTANT will conduct interviews with teams representing
departments directly involved with CITY's key municipal management business processes which
ERP vendors typically address.
During the interviews, CONSULTANT will discuss current SAP supported business and
technological workflows and processes within CITY. As per the requirements in the RFP,
CONSULTANT has scoped out our interviews to include discussions with the following major
CITY stakeholders:
• Administrative Services
• Utilities
• People Strategy and Optimization
• Public Works
• Information Technology
• Other Departments including (Process Users):
o City Attorney
o City Auditor
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o City Clerk
o Community Services
o Planning and Community Development
o Library
o Police
o Fire
• City Management
These interviews will address the following areas:
• Inventory and use of existing SAP system and associated business processes
• Identification of process and system deficiencies/limitations and discussion of solutions
• Identification of shadow systems that have been developed
• Plans for process and technology changes
• Needs for data sharing and integration including interaction with Clients, the State, outside
agencies, and other CITY departments
• Existing processes and workflows
• Issues and opportunities within each of the process areas
CONSULTANT anticipates conducting interviews related to the following municipal management
business processes and sub -processes listed below:
• Core Financials including general ledger; accounts payable, budget, treasury, purchasing,
project management, capital/fixed asset management, inventory, debt service, cost
allocations, etc.
• Human Resources including risk management, payroll, position control, personnel
management, recruitment/applicant tracking, time & attendance, benefit administration and
active employee accruals, etc.
• Procurement including requisitions, purchase orders, asset disposal, etc.
These sessions will focus on reviewing sub -functions that are performed within each of the areas
above to discuss both system and operational areas. Additionally, CONSULTANT anticipates
conducting cross -functional sessions for the following areas that will include both process owners
and process end -users meeting together to discuss opportunities for improvements in the defined
process areas:
• Inventory Management/Stores
• Budget
• Procurement
• Time and Attendance
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• Projects and Grants
• Contract Management
Conduct Comparative Research
CONSULTANT will utilize comparative research with other entities similar to the CITY that are
using both SAP and other ERP systems. As well, we intent to leverage research an work
CONSULTANT has conducted relative to private sector organizations. CONSULTANT will take
the results from its "Best Practices" research and conduct applicable comparisons with the CITY to
include the following areas:
• System support structure and staffing patterns
• ERP Implementation Costs/Approach
• Ongoing ERP system support and maintenance costs
• Upgrade Success
• Alternate service delivery options that are being used
• Other areas deemed necessary, including document management and mobility.
CONSULTANT will work with the CITY to identify appropriate targets based on similar
demographic information.
Prepare and Present ERP Needs Assessment Report of the Existing SAP Environment
CONSULTANT will prepare an ERP Needs Assessment Report encompassing each of the SAP
supported process areas identifying potential areas for improvement. CONSULTANT's assessment
will examine your SAP environment with the following areas of focus:
• CITY Business Direction for SAP
• CITY's challenges and priorities
• Existing SAP utilization by all functions
• Current business processes and opportunities for improvement
• Current Analytics systems utilization
• Internal and external information sharing needs
• SAP support resource (IT staff and funds) availability
• SAP solutions best practices (private and public)
• Potential existing solution gaps/risks/risk mitigation/roadblocks
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EXHIBIT "B"
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the project managers for CONSULTANT and CITY so
long as all work is completed within the term of the Agreement. CONSULTANT shall provide a
detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the
notice to proceed.
Milestone/Deliverable
Anticipated Delivery
Timeframe
Detailed Project Plan Accepted
Deliverable: Detailed Project Plan
Draft Analysis Report
Deliverable: Draft Analysis Report
Report Revisions
Deliverable: Revised Draft Report
Prepare Final Report
Deliverable: Final Report
5 Days from Contract
Execution
60 Days from Contract
Execution
75 Days from Contract
Execution
90 Days from Contract
Execution
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EXHIBIT "C"
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement, and as set forth in the budget
schedule below. Compensation shall be calculated based on the hourly rate schedule attached
as exhibit C-1 up to the not to exceed budget amount for each task set forth below.
The compensation to be paid to CONSULTANT under this Agreement for all services
described in Exhibit "A" ("Basic Services") and reimbursable expenses shall not exceed
$129,250.00 CONSULTANT agrees to complete all Basic Services, including reimbursable
expenses, within this amount. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum amount of compensation set forth herein shall
be at no cost to the CITY.
CONSULTANT shall perform the tasks and categories of work as outlined and budgeted
below. The CITY's Project Manager may approve in writing the transfer of budget amounts
between any of the tasks or categories listed below provided the total compensation for Basic
Services, including reimbursable expenses, does not exceed $129,250.00.
BUDGET SCHEDULE NOT TO EXCEED AMOUNT
Task 1 $10,000
(Detailed Project Plan)
Task 2 $99,250
(Draft Analysis Report)
Task 3 $0
(Revised Draft Report)
Task 4 $20,000
(Final Analysis Report)
Sub -total Basic Services $129,250
Reimbursable Expenses $0
Total Basic Services and Reimbursable expenses $129,250
Additional Services (Not to Exceed) $0
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Maximum Total Compensation $129,250
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses.
All requests for payment of expenses shall be accompanied by appropriate backup
information. Any expense anticipated to be more than $0.00 shall be approved in advance by
the CITY's project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization
from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level of
effort, and CONSULTANT's proposed maximum compensation, including reimbursable
expense, for such services based on the rates set forth in Exhibit C-1. The additional services
scope, schedule and maximum compensation shall be negotiated and agreed to in writing by
the CITY's project manager and CONSULTANT prior to commencement of the services.
Payment for additional services is subject to all requirements and restrictions in this
Agreement
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EXHIBIT "C-1"
HOURLY RATE SCHEDULE
Hourly rate for all categories (including all travel and incidental expenses): $235/hr.
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EXHIBIT "D"
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN
AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM
BEST'S KEY RATING OF A -:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE
STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITHCITY'S INSURANCE REOUIREMR4TS. AS SPECIFIED. BELOW
MINIMUM LIMITS
REQUIRED
TYPE OF COVERAGE
REQUIREMENT
EACH
OCCURRENCE
AGGREGATE
YES WORKER'S COMPENSATION
STATUTORY
YES EMPLOYER'S LIABILITY
STATUTORY
BODILY INJURY
$1,000,000
$1,000,000
YES GENERAL LIABILITY, INCLUI '4G
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE
$1,000,000
$1,000,000
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
BODILY INJURY& PROPERTY DAMAGE
$1,000,000
$1,000,000
LIABILITY
COMBINED.
BODILY INJURY
$1,000,000
$1,000,000
- EACH PERSON
$1,000,000
$1,000,000
- EACH OCCURRENCE
$1,000,000
$1,000,000
YES AUTOMOBILE LIABILITY, EXCLUDING
ALL OWNED, HIRED NON -OWNED
PROPERTY DAMAGE
$1,000,000
$1,000,000
BODILY INJURYAND PROPERTY
$1,000,000
$1,000,000
DAMAGE, COMBINED
YES
PROFESSIONAL LIABILITY,INCLUDING,
ERRORS AND OMISSIONS,
MALPRACTICE (WHEN APPLICABLE),
AND NEGLIGENT PERF RMANCE
ALL DAMAGES
$1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SJLE COST AND EXPENSE,
SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT,
THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTORAND ITS SUBCONSULTANTS, IF ANY, BUT
ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING
AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN
COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL
INSUREDS"
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS
AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER
INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL
NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS
ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF
THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER
THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY
AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT
OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
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