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City of Palo Alto (ID # 2421) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/6/2012 February 06, 2012 Page 1 of 5 (ID # 2421) Summary Title: Utilities Organizational Assessment Contract Title: Approval of an agreement for Professional Services with SAIC Energy, Environment & Infrastructure, LLC in the amount of Two Hundred and Twenty Five Thousand dollars ($225,000) for an Organizational Assessment of the Palo Alto Utilities Department From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council authorize the City Manager to execute a contract for professional services with SAIC Energy, Environment & Infrastructure, LLC in the amount of Two-Hundred and Twenty Five Thousand dollars ($225,000) to complete an organizational assessment of the Utilities Department. Executive Summary The City Council as part of the FY12 budget discussion asked the City Manager to move forward with a plan to retain a firm with expertise in conducting organizational assessments of municipal utility operations. The City issued a formal Request for Proposals (RFP) for this work in the fall of 2011. Seven firms responded to the RFP. After review of the written RFP responses and personal interviews with the finalist firms, SAIC was selected to do the work. Two SAIC innovations they proposed included: 1. A Cultural Assessment Tool. SAIC plans to quantify and measure the existing CPAU culture to determine how the culture is supporting or hindering organizational performance and achievement of strategic initiatives. This work will be essential to developing a practical plan leading to potential attainable improvements in CPAU operations. 2. A Workload Forecasting Tool. SAIC has also developed a forecasting tool to provide a quantitative assessment of staffing requirements. The tool looks at both capital and operating budget-based projects and estimates the labor hours required by task, subtask, project and function. Each project and function is assigned a priority based on a multi-objective function that considers safety, reliability, customer service, regulatory compliance and cost minimization as objectives. The tool then provides a quantitative assessment of the workload and resources to help managers align the work with February 06, 2012 Page 2 of 5 (ID # 2421) available resources. Background and Discussion Solicitation and Evaluation Process Development of the Request for Proposals (RFP) began in the summer 2011. As part of this process the decision was made that the evaluation criteria weighted value would be 90% qualitative and 10% cost. The Request for Proposals (RFP) for these services was issued September 16, 2011. As part of the outreach, sixteen perspective proposers were sent a copy of the RFP. Additionally, the RFP was posted on the City Web Site. Furthermore, a Pre-Proposal Solicitation Conference was held October 5, 2011 to explain the RFP and answer questions submitted by potential proposers regarding the RFP. On November 7, 2011 the RFP closed. Seven proposers responded. These firms were: First Quartile, Moss Adams LLP, PA Consulting Group LLC, SAIC, Nexant, Matrix and Capgemini Consulting. The range of proposal prices submitted was between: $95,000-$516,120. The evaluation committee was comprised of members from the City Manager’s Office, Planning and Community Environment, Utilities and ASD. After reviewing the seven proposals the committee decided to invite four proposers for interviews: First Quartile, Moss Adams LLP, PA Consulting Group LLC, SAIC. After completion of the interviews the evaluation committee unanimously decided to recommend to the City Manager that SAIC be awarded a contract to perform the work. The last major external organizational assessment of the City of Palo Alto Utilities Department (CPAU) was done in November of 1996. This assessment was done by a firm called TB&J which has since been purchased by a larger firm in the same line of work. The City has also completed such studies in the past including an organizational review of paramedic billings and collections and a separate report was done evaluating all city operations. Both of these reports were done in 1994. Since that time, there have been many changes to CPAU’s operations and services to the community. For example, one significant change has been the emergence of sustainability measures due to the passage of AB32 and SB375 in California. CPAU is the largest City department. It operates five enterprise funds in which rates and charges support the services provided as well as the infrastructure maintained and operated by CPAU. In each budget cycle CPAU presents information on suggested rates and charges, recommended capital improvement plans, and operational data. An independent and comprehensive review of CPAU will be conducted, including administration, customer support services, resource management, engineering, and operations. The report will analyze and review how the department is organized, and how the department is performing in terms of providing highly efficient and effective utility services to the community. The purpose for undertaking an organizational assessment is twofold. The first is to review the services CPAU provides to determine optimal staffing levels. The second is to evaluate the current and potential future trends in the utilities industry (electric, gas, water, wastewater collection, fiber), to ensure that CPAU is appropriately positioned to meet those challenges. For example, is CPAU positioned correctly to be appropriately innovative and February 06, 2012 Page 3 of 5 (ID # 2421) effectively and efficiently use state-of-the art technology applications to serve its customers? Should CPAU take full advantage of emerging and new technologies on the horizon and at what cost? What level of leadership should CPAU take as compared to its peers in the area of environmental sustainability and green technologies, and at what cost? The organizational assessment will review current CPAU services and determine how to best deliver required services to customers in the most fiscally responsible way. How it relates to strategic plan The CPAU 2011 strategic plan approved by the City Council will be one of several source documents that will be used by SAIC to perform the CPAU organizational analysis work. Driving the recent completion by CPAU of a new strategic plan was the need for an update since the last plan was completed in 2005. Deliverables A report listing current CPAU services, organizational structure, and services desired by the community Recommendations on the optimal utilities services provision model Report outlining external regulatory and business environment Report outlining future trends and technologies expected to influence the provision of utilities services in the next 5-10 years Assessment of skills required to meet current and future utilities business needs Recommendations on the organizational changes desired to optimally meet the needs of the current and future utility business and the customer service environment Report outlining the current cost of service delivery by function or service Benchmark results comparing CPAU to organizations providing similar services Report providing a comparison of customer satisfaction for CPAU versus similar organizations Recommendations for the adequacy of current staffing and the use of internal versus external service delivery mechanisms Report listing alternative service delivery mechanisms, services that should be discontinued, and services that should be added Recommendations on the optimal service delivery mechanism for the delivery of each service identified The final report will include recommendations on the: 1) set of services that are valued by the community; 2) key features of the external environment that will the influence organizational structure and the delivery of services; 3) appropriate staffing and use of external resources and services; 4) the best way to provide each service; 5) organizational changes needed to support the provision of the recommended services; and 6) a plan to implement the organizational changes over the next three years. The final report will include: An executive summary of key findings February 06, 2012 Page 4 of 5 (ID # 2421) A comprehensive analysis of CPAU’s current effectiveness and efficiency in the delivery of services Recommendations on areas where efficiency and effectiveness can be improved. The report will also identify recommendations in order of priority and consider: Alternative staffing strategies Alternative or modified service delivery methods including, the costs and benefits of privatization options and alternatives Alternative organizational structures and functional relationships within the department, and possible changes to this structure and with third party organizations; and Alternative or modified work methods and protocols Recommendations on changes to the organizational structure to enhance the cost effectiveness and quality of service delivery in the future will analyze: Steps needed to implement the organizational structure Options for phasing in the recommendation Costs for implementation Staffing and additional resources required to implement the changes Changes required in existing policy Impacts to existing employees The recommendations including recommended actions will be ranked by priority, include a resource plan needed to execute (e.g., staff, budget, outside resources), identified success criteria, a workplan and schedule, issues identification and policy implications. Once completed, the report will be presented to the City Manager, the UAC and the City Council for review and action. Based on City Council policy direction, staff will implement the plan recommendations. Timeline and Resource Impacts It is anticipated this work will take approximately four to five months to complete following contract award. Thus, we are anticipating the report will be available in May/June of this year. The Utilities Department (UTL) had budgeted $100,000 in their FY12 budget previously approved by the City Council. The project cost is $225,000. The UTL’s Department will augment the original $100,000 with another $50,000 in current savings in their budget and request the remaining balance of $75,000 in the FY12 Mid-Year budget adjustment. Attachments: Attachment A: Introduction to SAIC, the Project Consultant (PDF) Attachment B: Palo Alto City Council Slides January 2012 (PDF) February 06, 2012 Page 5 of 5 (ID # 2421) Prepared By: Rob Braulik, Director of Office of Management and Budget Department Head: Lalo Perez, Director City Manager Approval: ____________________________________ James Keene, City Manager 120118 dm 6051671 1 CITY OF PALO ALTO CONTRACT NO. C141152 AGREEMENT BETWEEN THE CITY OF PALO AND SAIC ENERGY, ENVIRONMENT AND INFRASTRUCTURE, LLC FOR PROFESSIONAL SERVICES This Agreement is entered into on this 23rd day of January, 2012, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SAIC ENERGY, ENVIRONMENT & INFRASTRUCUTRE, LLC (SAIC), located at 1000 Broadway, Oakland, CA 94607 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to conduct an organizational assessment of the City’s Utilities Department (“Project”) and desires to engage a consultant to perform this assessment 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, 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. 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 120118 dm 6051671 2 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 Two Hundred and Five Thousand Eight Hundred and Eighty-Eight Dollars ($205,888). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Nineteen Thousand One Hundred and Twelve Dollars ($19,112). 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. QUALIFICATIONS/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. 120118 dm 6051671 3 All of the services to be furnished by CONSULTANT under this agreement shall meet the 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. 120118 dm 6051671 4 SECTION 12. SUBCONTRACTING. 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. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Thomas Jensen as the Project Lead to have supervisory responsibility for the performance, progress, and execution of the Services and 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 Rob Braulik, City Managers Office, Telephone:650-329-2512. 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, provided, however, that CONSULTANT shall retain ownership of its intellectual property including the procedures, processes, internal resources, tools and other means used by CONSULTANT to prepare the work product. 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, except the intellectual property, described above, which CONSULTANT used to prepare the work products, 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 with three (3) business days notice, 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. 120118 dm 6051671 5 SECTION 16. INDEMNITY. 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 by blanket endorsement 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 by blanket endorsement under such policies as required above. 18.3. A Memorandum of Insurance (MOI) evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The MOI will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage. If the insurance is canceled or materially reduced in coverage or limits by the insurer, the CONSULTANT shall provide the Purchasing Manager seventy-five (75) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the 120118 dm 6051671 6 insurance without providing prior notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that the current MOI 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 operate as a waiver on the part of CITY of any of its rights under this Agreement. 120118 dm 6051671 7 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. 120118 dm 6051671 8 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 legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 120118 dm 6051671 9 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. 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. // // // // // 120118 dm 6051671 EXHIBIT “A” SCOPE OF SERVICES Project Title: Palo Alto Utilities Department Organizational Assessment Description of Project: An independent and comprehensive review of the CPAU will be conducted, including administration, customer support services, resource management, engineering, and operations. The report will analyze and review how the department is organized, and how the department is performing in terms of providing highly efficient and effective utility services to the community. The purpose for undertaking an organizational assessment is twofold. The first is to review the services CPAU provides to determine optimal staffing levels. The second is to evaluate the current trends and challenges in the utilities industry (electric, gas, water, wastewater collection, fiber), and in the future to ensure that the CPAU is appropriately positioned to meet those challenges. For example, is CPAU positioned correctly to be appropriately innovative and effectively and efficiently use state-of-the art technology applications to serve its customers? Should CPAU take full advantage of emerging and new technologies on the horizon and at what cost? What level of leadership should CPAU take as compared to its peers in the area of environmental sustainability and green technologies, and at what cost? The organizational assessment will review current CPAU services, and determine how to best deliver required services to customers in the most fiscally responsible way. Some key questions the assessment will answer include the following: • What are the services the CPAU currently provides to the community? • What are the current CPAU efficiencies and inefficiencies? • Are the services currently delivered valued by customers? • What services do customers want that are not currently being offered? • What functions does the CPAU provide that, in other cities, are funded by the General Fund? • What services are provided to the utility from the City’s General Fund? • Is current staffing optimal to support current services? If additional services were desired what additional resources would be needed to deliver them? • How do the services delivered by the CPAU and staffing levels in place to deliver the services, compare to other organizations of similar size providing similar services? Staff expects that industry accepted benchmarks would be provided to quantify the response to this question. • Which services should be provided internally versus externally? For example, are there services the Northern California Power Agency (NCPA) could provide that would save the City money? What services provided to CPAU by the General Fund should be provided internally versus externally? • Are there opportunities to hire external expertise (e.g., construction, engineering, maintenance) that could save money? There should be a discussion on the advantages and disadvantages of various alternative service delivery methods and costs. 120118 dm 6051671 Project Organization and Startup: Immediately upon receiving authorization to proceed, CONSULTANT will meet with City management and the Project team to kick off the CPAU Organizational Assessment. CONSULTANT will facilitate this one to two-day meeting and prepare a working record of matters discussed and decisions made by the group. The City and CONSULTANT teams will establish all critical components to a successful engagement during the kick off meetings. These components include: • Any revisions to the project scope presented in CONSULTANT’s proposal document. • An appropriate “screening” process to prioritize scope and issues described in sufficient detail to allow CPAU project management to direct CONSULTANT’s efforts at the most critical subjects or topics. Although CONSULTANT’s assessment will be fully objective, some further definition of the areas for investigation will be necessary to insure the most cost effective application of CONSULTANT’s assessment. • Final fee estimate. • Roles and responsibilities, and communication and reporting protocols. • Time commitments and other resource requirements from City staff. • Discussion and understanding of CONSULTANT’s initial Request for Information. CONSULTANT’s request, provided prior to the kick-off meetings, will specify particular types of information and documents that are relevant to the goals of the initiative and the specific requirements of the work plan. Scheduled dates for on-site visits and personnel interviews, status meetings (or conference calls) with CPAU and City staff, delivery of interim memoranda of findings, draft Final Report, Final Report, and presentations. Deliverables: Written record of kick-off meeting discussions and decisions on project components, and revisions to CONSULTANT’s proposed work plan as necessary. 120118 dm 6051671 Task 1A: Assess community needs, current organizational structure, and evaluate service delivery. The purpose of the current situation analysis is to review current CPAU services and determine how to best deliver required services to customers in the most cost-effective way. The CONSULTANT team will develop a more in-depth understanding of CPAU’s current services, the utility’s approach to organizational design, and what services are valued and expected by customers. CPAU has recently completed a strategic plan and associated business plans. The CONSULTANT team will pay particular attention to the details of these plans to determine the appropriateness of the organization’s structure to support the defined strategic initiatives and the delivery of current and potential new services. CONSULTANT’S analysis will identify current services provided by CPAU to customers and the community and how these are structurally organized. It is our understanding the CPAU delivers electric, natural gas, water and wastewater, and fiber optic services to a community with a population of approximately 65,408. Our assessment will also extend to include support services provided by CPAU such as engineering design, resource planning and procurement, construction and contract management, system maintenance and operations, customer support and billing, energy and water efficiency services, and services provided to CPAU by the General Fund. Our assessment will rely on information provided by CPAU and we will also conduct interviews with key CPAU management and staff personnel, as identified in Step 1. The organizational assessment will focus on how CPAU is structurally organized and performing to provide the previously mentioned services and will examine the pertinent interfaces within the utilities department to effectively deliver these services to customers. The review will include the assessment of: • Engineering • Operations • Customer Support Services • Resource Management • Utilities Administration CONSULTANT will also assess customer satisfaction with the current services CPAU provides and whether there is a desire and a need for additional services. CONSULTANT will rely on customer satisfaction surveys and any additional information CPAU will provide. Consultant will: • Identify CPAU services and how those services are organized. • Identify all services provided to CPAU by the General Fund. • Identify utilities services the community needs and values (e.g. reliable and safe delivery of water, gas, electricity, and wastewater collection services, assistance for efficient use of resources, fiber to the home). 120118 dm 6051671 • Evaluate CPAU organizational structure, functional responsibilities, and alignment for delivering efficient and effective utility services. • Determine the best way to deliver CPAU services and how the organization might change to provide those services. • Evaluate services to the CPAU by the General Fund, including an evaluation of alternatives with costs and benefits identified. Deliverables: • Report listing current CPAU services, organizational structure, and services desired by the community. • Assessment of whether CPAU current service delivery approaches support its strategic and business plan. • Draft recommendations on the optimal utilities services provision. Task 1B: Assess the external environment in which the CPAU operates, and evaluate work accomplished to date to respond to future trends in service delivery. Whereas Task 1A focused on CPAU’s current relationship with its customers, the objective of Task 1B is to understand the business and political environment in which CPAU currently operates and identify future demands that will impact this environment, including regulatory requirements, new programs, technologies, and services evolving in the utility industry. The result of this task is an evaluation of CPAU’s capability to excel given anticipated future demands on the utilities department. CONSULTANT will rely on the industry knowledge and expertise of its project team to identify current regulatory requirements that may impact CPAU. Additional research will also be conducted to create a complete and detailed list that compiles the regulatory requirements identified and describes the potential impact to CPAU. CONSULTANT’s team also includes professionals very knowledgeable and up-to-date on the latest trends, technologies, programs and services developing in the utility industry. CONSULTANT will bring this expertise to CPAU’s project to identify and evaluate future trends, and assess what value CPAU may gain from early response to these trends such as adoption of emerging technologies or programs. To guide this task, CONSULTANT will develop an assessment protocol that will list the specific research questions we will address and the metrics we will use. We will identify the information sources that these questions and specific metrics will be applied to. CONSULTANT’s review will heavily rely on the evaluation of any material and information provided by CPAU regarding regulatory requirements and future trends. 120118 dm 6051671 Additionally, an evaluation of CPAU’s culture will be conducted to understand the values and behaviors that exist within CPAU. Understanding the organization’s culture is critical in developing recommendations that will lead to attainable improvements. CONSULTANT suggests the application of Cultural Transformation Tools® (CTT), trademarked by Barrett Values Center, to conduct such a cultural assessment. This assessment tool will measure how open and flexible CPAU’s culture is to organizational change. Consultant will: • Assess the current regulatory environment. Evaluate the adequacy of the CPAU to fulfill and meet these requirements. Provide a list of current regulatory requirements, with current and recommended staffing levels. • Identify the trends that are developing in the utility industry, and the skills needed to support these trends. Determine how the organization needs to change to support future trends in utilities services and future service delivery requirements. • Evaluate programs, technologies, and services that are expected to be part of future utility services. Provide a matrix on future programs, technologies, and services including an estimate of when these services might be implemented. • Evaluate the adequacy of the current organization to support these future services. Identify deficiencies and make recommendations on organizational changes required to meet future needs. • Evaluate the flexibility of the CPAU culture to change, and make recommendations on change management strategies to implement organizational changes. • Assess what skills will be required to meet indentified future needs. Compare the skills required with current Staff credentials. Make recommendations on rectifying deficiencies through the use of internal and external resources. For internal resources, assess the competitiveness of City compensation to attract qualified personnel. Deliverables: • Prepare a report t comparing the current and future regulatory and potential impact to the CPAU organization . • Prepare a reportt outlining future trends and technologies expected to influence the provision of utilities services in the next 5-10 years. • Provide a matrix assessment of skills required to meet current and future utilities business needs. • Draft recommendations on the organizational changes desired to optimally meet the needs of the current and future utility business and the customer service environment. Task 1C: Determine the cost to deliver services provided by the CPAU, and compare CPAU’s cost to deliver services to other similar agencies. The CONSULTANT team will determine and evaluate the cost for CPAU to deliver current services, including operating and capital improvement expense. A comparative benchmarking 120118 dm 6051671 assessment will be conducted with similar utility organizations. CONSULTANT will confer with CPAU to define the criteria for selecting other utilities. Criteria may include: • Number of retail customers • Customer mix (by utility type) • Total sales volume • Geographic location • Services provided Following establishment of criteria, CONSULTANT will produce a list with a maximum of 10 similar utility organizations to benchmark. Additionally, service delivery costs will be compared against industry best practices, when readily available. Publicly available sources of information may include industry associations such as the American Public Power Association, American Water Works Association, and publications such as the Platts UDI Directory of Electric Power Producers and Distributors. Cost parameters, staff numbers and capabilities, compensation levels, organizational structures, and customer satisfaction indices from other similar utility organizations will be compared to those at CPAU. CONSULTANT will establish a list of corporate and tactical performance measures for this benchmarking effort. Corporate measures will evaluate the status and well-being of CPAU: • Financial and operating ratios • Customer service measures • Reserved funds and fund transfers • Tactical measures will evaluate the performance of the utility organization: • Capital, operation and maintenance cost levels and structure • Retail pricing levels and practices • System reliability and efficiency • Customer service and satisfaction The list of measures will be finalized after (1) consulting with Management and the Project Management team (2) assessing CPAU’s strategic plan and associated business initiatives, and (3) reviewing the availability of target data and practice descriptions. Written descriptions will be produced for each measurement parameter and the list of measures will be provided to Management and the Project Management Team for review. CONSULTANT anticipates that the data that will be used to conduct this benchmarking assessment will be obtained from CONSULTANT’s database, industry information that is readily available, and documentation provided by CPAU. This Task will result in the evaluation of the efficiency of CPAU’s service delivery when compared to costs and associated service delivery practices found at other similar utilities. Consultant will: • Analyze the cost of delivery for each service currently provided, including operating and capital improvement costs. • Benchmark, and analyze results, on the cost of providing services to other similar agencies (and, if available, industry standards). 120118 dm 6051671 • Evaluate the efficiency of the CPAU service delivery, and compare the efficiency of the service delivery to other agencies. • Determine staffing levels and compensation levels, and compare the levels to similar organizations delivering similar services. • Compare customer satisfaction survey results to other similar agencies. • Provide recommendations on the adequacy of current staffing levels. • Provide recommendations on the use of internal versus external service delivery. Deliverables: • Prepare a report outlining the current cost of service delivery by function or service. • Benchmark results comparing CPAU to organizations providing similar services regarding service delivery costs, organizational structures to support the delivery of such services, staffing levels and capabilities, customer satisifaction indices • Draft recommendations for the adequacy of current staffing and the use of internal versus external service delivery mechanisms. Task 1D: Identify and evaluate alternative service delivery methods. The CONSULTANT team will explore potential alternative service delivery methods. This will include services recommended to be added, discontinued, modified or performed by third parties. CONSULTANT’s recommendations will include cost impact to CPAU. Using the findings of the organizational assessment and the comparative analysis conducted in previous steps and the Consultant doing the following: • Identifing and analyzing alternative ways to deliver utilities services, and identifying services that should be discontinued. services not currently provided, and potential alternatives for the provision of those services.and • Determining the cost for each alternative service delivery method, and provide a list of the pros and cons of the current method and each alternative delivery method identified and. • Making recommendations on the best way to provide each service identified, including an analysis of potential privatization/outsourcing options. The CONSULTANT team will work closely with management and the project team to agree on candidate areas for alternative service delivery methodology. This discussion will result in identification of a list of services to be added, discontinued and/or modified. The CONSULTANT team will evaluate CPAU’s adequacy and ability to effectively and efficiently provide these alternative service delivery methods. The current structure, staffing and staff skill sets will be evaluated as to capability to support alternative service delivery methods. The CONSULTANT team will determine estimated cost increases or cost savings for each recommended alternative. Leveraging findings from previous steps the CONSULTANT team will conduct additional primary and secondary research to estimate the costs associated with implementing recommendations for alternative service delivery methods and mechanisms. 120118 dm 6051671 The CONSULTANT will also evaluate the Pros and Cons for Each Alternative Service Delivery Method based on earlier work done. The CONSULTANT team will aggregate potential benefits, challenges, risks and issues that may arise as a result of implementing any of the recommendations for alternative service delivery. This will require a meeting between the CONSULTANT team and management and the project team to facilitate a thorough dialogue around the impacts of each proposed recommended change in service delivery. Once the pros and cons are fully understood and agreed upon by both parties, a final set of potential alternative service delivery methods will be produced succinctly presenting the advantages and disadvantages for each alternative service delivery method. A summary report that includes findings outlined in memoranda submitted in Tasks 3A and 3B along with a high-level qualitative and quantitative evaluation of the advantages and disadvantages for each alternative service delivery method. Deliverables: • A report listing potential alternative service delivery mechanisms and service devlivery methods covering services that could be be discontinued, modified or performed by outside agencies.. Report would also includeoptimal service delivery mechanism for the delivery of each service identified. • A report outlining the cost impact of each alternative service delivery method. • A summary report that includes findings outlined in memoranda submitted in earlier tasks along with qualitative and quantitative evaluation of the advantages and disadvantages for each alternative service delivery method. Task 1E: Organizational Options and Staffing Levels The CONSULTANT team will draw on findings from all previous steps of the work plan to describe alternative organizational options for CPAU. Included will be alternative staffing levels and staffing mix. We will also describe alternative ways for CPAU to receive services currently provided from the General Fund. All changes presented will be focused on reducing costs, improving service delivery effectiveness and/or improving customer satisfaction. CONSULTANT will also provide an Implementation Plan addressing all of CONSULTANT’s recommended actions. The Implementation Plan will show prioritization and timeline for recommendations, costs to implement, any identified staffing changes, and any needed policy or procedural changes. At completion of this step CONSULTANT will deliver a Draft Final Report for City’s review. In this task, the CONSULTANT team will use the list of potential alternative service delivery methods developed in previous steps. Findings from all previous work plan steps will guide the CONSULTANT team in arriving at the final recommendations. During this final selection of alternatives, the CONSULTANT team will meet with management and the project team to explain the logic behind the team’s selections. Included will be staffing levels and skill sets for each recommended structure. If the CONSULTANT team can clearly demonstrate a service can be more cost effectively delivered by a third party, a recommendation will be made to that effect. All changes presented will be focused on reducing costs, improving service delivery effectiveness and/or improving customer satisfaction. 120118 dm 6051671 Alternatives to Services Provided from the General Fund. This component of the task examines those services provided to CPAU that are funded by the City’s General Fund. The CONSULTANT team will determine the services in question and how these services impact CPAU’s from an operational and financial basis. CONSULTANT will then review and analyze alternatives. These alternatives could include different methods as to how the services can be funded, such as funded from utility revenues. Other alternatives could be to discontinue the service, or more cost-effectively obtain the same service from a third party. Implementation Plan, CONSULTANT will develop an Implementation Plan addressing all of CONSULTANT’s recommended actions regarding alternative service delivery methods and CPAU’s organizational structure. The Implementation Plan will show prioritization and timeline for recommendations, costs to implement, staffing changes, potential roles and responsibilities and identification of needed policy or procedural changes. Considerable dialogue with management and the project team will be necessary to formulate the Implementation Plan. The activities of the Implementation plan must be carefully integrated and coordinated all other CPAU initiatives planned or underway, and CONSULTANT will coordinate with management and the project team. Deliverables: • Draft Final Report, including the following recommendations: 1) set of services that are valued by the community; 2) key features of the external environment that will influence organizational structure and the delivery of services; 3) appropriate staffing and use of external resources and services; 4) the best way to provide each service; 5) organizational changes needed to support the provision of the recommended services; and 6) a plan to implement the organizational changes over the next three years. Project Deliverables and Final Project Report A. The Final Report will include: • An executive summary of key findings; • A comprehensive analysis of the CPAU’s current effectiveness and efficiency in the delivery of services • Recommendations on areas where efficiency and effectiveness can be improved. The report should identify recommendations in order of priority and should consider: • Alternative staffing strategies; • Alternative or modified service delivery methods including, the costs and benefits of privatization options and alternatives; • Alternative organizational structure and functional relationships within the department, and possible changes to this structure and with third party organizations; and • Alternative or modified work methods and protocols. • Recommendations on changes to the organizational structure to enhance the cost effectiveness and quality of service delivery in the future. Recommendation should analyze: 120118 dm 6051671 • Steps needed to implement the organizational structure; • Options for phasing in the recommendation; • Costs for implementation; • Staffing and additional resources required to implement the changes; • Changes required in existing policy; • Impacts to existing employees. B. Execution of plan and strategy. The plan will consider and address anticipated policy issues, challenges, and phasing recommendations. C. Provide a comprehensive set of recommendations for recommended actions ranked by priority, resource plan needed to execute (e.g., staff, budget, outside resources), success criteria, workplan and schedule, and issues and policy implications. D. Presentation of the Final Report and findings to the City Manager, Utilities Advisory Commission, and the City Council. Meetings that are incorporated into the project budget in include: 2 City Council meetings, 1 Finance Committee meeting, 1 Utilities Advisory Committee meeting and 1 meeting with the City Manager. 120118 dm 6051671 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within dates 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. • Due Date for Task 1A Deliverables: Completed by April 2. • Due Date for Task 1B Deliverables: Completed by May 2. • Date for Task 1C Deliverables: Completed by May 2. • Date for Task 1D Deliverables: Completed by May 28. • Date for Task 1E Deliverables: Completed by May 28. 16 120118 dm 6051671 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $205,888. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $225,000. 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. 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. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $500 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 expenses, 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. 120118 dm 6051671 EXHIBIT C-1 HOURLY RATE SCHEDULE Scope Labor Categories Est. Hours Hourly Rate Extended Rate Step 1 - Project Organization and Startup Sr. Consultant 1 16 $290.00 $4,640.00 Sr. Consultant 2 16 $285.00 $4,560.00 Sr. Consultant 3 16 $205.00 $3,280.00 Sr. Consultant 4 16 $170.00 $2,720.00 Travel and Living Expenses $5,060.00 Not to Exceed, Step 1 $20,260.00 Step 2 - Current Situation Analysis Sr. Consultant 1 8 $290.00 $2,320.00 Sr. Consultant 2 16 $285.00 $4,560.00 Sr. Consultant 3 16 $205.00 $3,280.00 Sr. Consultant 4 16 $170.00 $2,720.00 Sr. Consultant 5 4 $208.00 $832.00 Sr. Consultant 6 4 $250.00 $1,000.00 Sr. Consultant 7 4 $250.00 $1,000.00 Consultant 0 $0.00 Task 2A - Community Needs, Current Organizational Structure, and Service Delivery (CPAU RFP Task 1A) Consultant 0 $0.00 Travel and Living Expenses $1,500.00 Subtotal, Task 2A $17,212.00 Sr. Consultant 1 8 $290.00 $2,320.00 Sr. Consultant 2 24 $285.00 $6,840.00 Sr. Consultant 3 16 $205.00 $3,280.00 Sr. Consultant 4 8 $170.00 $1,360.00 Sr. Consultant 5 8 $208.00 $1,664.00 Sr. Consultant 6 8 $250.00 $2,000.00 Sr. Consultant 7 8 $250.00 $2,000.00 Consultant 1 4 $170.00 $680.00 Task 2B - External Environment and Future Trends (CPAU RFP Task 1B) Consultant 2 8 $141.00 $1,128.00 Travel and Living Expenses $4,180.00 Subtotal, Task 2B $25,452.00 Sr. Consultant 1 0 $290.00 $0.00 Sr. Consultant 2 8 $285.00 $2,280.00 Sr. Consultant 3 16 $205.00 $3,280.00 Sr. Consultant 4 8 $170.00 $1,360.00 Sr. Consultant 5 8 $208.00 $1,664.00 Sr. Consultant 6 8 $250.00 $2,000.00 Sr. Consultant 7 8 $250.00 $2,000.00 Consultant 1 32 $170.00 $5,440.00 Task 2C - Cost to Deliver Services and Cost Comparisons (CPAU RFP Task 1C) Consultant 2 0 $141.00 $0.00 Travel and Living Expenses $500.00 Subtotal, Task 2C $18,524.00 Not to Exceed, Tasks 2A–2C $61,188.00 120118 dm 6051671 Scope Labor Categories Est. Hours Hourly Rate Extended Rate Step 3 - Alternative Service Delivery Methods Sr. Consultant 1 4 $290.00 $1,160.00 Sr. Consultant 2 16 $285.00 $4,560.00 Sr. Consultant 3 8 $205.00 $1,640.00 Sr. Consultant 4 16 $170.00 $2,720.00 Sr. Consultant 5 8 $208.00 $1,664.00 Sr. Consultant 6 8 $250.00 $2,000.00 Sr. Consultant 7 8 $250.00 $2,000.00 Consultant 1 0 $170.00 $0.00 Task 3A - Identification of Alternative Service Delivery Methods (CPAU RFP Task 1D) Consultant 2 8 $141.00 $1,128.00 Travel and Living Expenses $2,970.00 Subtotal, Task 3A $19,842.00 Sr. Consultant 1 0 $290.00 $0.00 Sr. Consultant 2 4 $285.00 $1,140.00 Sr. Consultant 3 4 $205.00 $820.00 Sr. Consultant 4 8 $170.00 $1,360.00 Sr. Consultant 5 4 $208.00 $832.00 Sr. Consultant 6 4 $250.00 $1,000.00 Sr. Consultant 7 4 $250.00 $1,000.00 Consultant 1 28 $170.00 $4,760.00 Task 3B - Cost Impact for Alternative Service Delivery Methods (CPAU RFP Task 1D, cont.) Consultant 2 0 $141.00 $0.00 Travel and Living Expenses $1,500.00 Subtotal, Task 3B $12,412.00 Task 3C - Pros and Cons for Each Alternative Service Delivery Method (CPAU RFP Task 1D, cont.) Sr. Consultant 1 0 $290.00 $0.00 Sr. Consultant 2 16 $285.00 $4,560.00 Sr. Consultant 3 8 $205.00 $1,640.00 Sr. Consultant 4 8 $170.00 $1,360.00 Sr. Consultant 5 4 $208.00 $832.00 Sr. Consultant 6 4 $250.00 $1,000.00 Sr. Consultant 7 4 $250.00 $1,000.00 Consultant 1 0 $170.00 $0.00 Consultant 2 8 $141.00 $1,128.00 Travel and Living Expenses $500.00 Subtotal, Task 3C $12,020.00 Not to Exceed, Tasks 3A–3C $44,274.00 Step 4 - Organizational Options Sr. Consultant 1 4 $290.00 $1,160.00 Sr. Consultant 2 8 $285.00 $2,280.00 Sr. Consultant 3 8 $205.00 $1,640.00 Sr. Consultant 4 8 $170.00 $1,360.00 Sr. Consultant 5 4 $208.00 $832.00 Sr. Consultant 6 4 $250.00 $1,000.00 Sr. Consultant 7 4 $250.00 $1,000.00 Consultant 1 0 $170.00 $0.00 Task 4A - Organizational Options and Staffing Levels (CPAU RFP Task 1E) Consultant 2 0 $141.00 $0.00 Travel and Living Expenses $500.00 Subtotal, Task 4A $9,772.00 Task 4B - Alternatives to Services Sr. Consultant 1 4 $290.00 $1,160.00 120118 dm 6051671 Scope Labor Categories Est. Hours Hourly Rate Extended Rate Sr. Consultant 2 4 $285.00 $1,140.00 Sr. Consultant 3 4 $205.00 $820.00 Sr. Consultant 4 0 $170.00 $0.00 Sr. Consultant 5 0 $208.00 $0.00 Sr. Consultant 6 0 $250.00 $0.00 Sr. Consultant 7 0 $250.00 $0.00 Consultant 1 4 $170.00 $680.00 Provided from the General Fund (CPAU RFP Task 1E, cont.) Consultant 2 0 $141.00 $0.00 Travel and Living Expenses $500.00 Subtotal, Task 4B $4,300.00 Sr. Consultant 1 4 $290.00 $1,160.00 Sr. Consultant 2 4 $285.00 $1,140.00 Sr. Consultant 3 4 $205.00 $820.00 Sr. Consultant 4 0 $170.00 $0.00 Sr. Consultant 5 0 $208.00 $0.00 Sr. Consultant 6 0 $250.00 $0.00 Sr. Consultant 7 0 $250.00 $0.00 Consultant 1 4 $170.00 $680.00 Task 4C - Implementation Plan (CPAU RFP Task 1E, cont.) Consultant 2 0 $141.00 $0.00 Travel and Living Expenses $1,500.00 Subtotal, Task 4C $5,300.00 Sr. Consultant 1 8 $290.00 $2,320.00 Sr. Consultant 2 24 $285.00 $6,840.00 Sr. Consultant 3 20 $205.00 $4,100.00 Sr. Consultant 4 24 $170.00 $4,080.00 Sr. Consultant 5 8 $208.00 $1,664.00 Sr. Consultant 6 8 $250.00 $2,000.00 Sr. Consultant 7 8 $250.00 $2,000.00 Consultant 1 20 $170.00 $3,400.00 Task 4D - Draft and Final Reports (CPAU RFP Task 1E, cont.) Consultant 2 12 $141.00 $1,692.00 Travel and Living Expenses $0.00 Subtotal, Task 4D $28,096.00 Not to Exceed, Tasks 4A–4D $47,468.00 Presentations Sr. Consultant 1 16 $290.00 $4,640.00 Sr. Consultant 2 24 $285.00 $6,840.00 Sr. Consultant 3 20 $205.00 $4,100.00 Consultant 2 8 $141.00 $1,128.00 Travel and Living Expenses $4,180.00 Subtotal, Presentations $20,888.00 TOTAL NOT TO EXCEED, ALL TASKS AND PRESENTATIONS $194,078.00 Optional Tasks: Scope Labor Categories Est. Hours Hourly Rate Extended Rate Sr. Consultant 4 16 $170.00 $2,720.00 Optional Task 1 - Customer Surveys and Focus Group Meetings Consultant 1 36 $170.00 $6,120.00 Travel and Living Expenses $2,970.00 Not to exceed, Optional Task 1 $11,810.00 120118 dm 6051671 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 WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED BY BLANKET ENDORSEMENT: CONTRACTOR, AT ITS SOLE 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 CONTRACTOR AND 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 SEVENTY-FIVE DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY BLANKET 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 MEMORANDA 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. 120118 dm 6051671 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 CONSULTANT SHALL PROVIDE CITY AT LEAST A SEVENTY-FIVE (75) 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 CONSULTANT 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 NATIONAL SECURITY • ENERGY & ENVIRONMENT • HEALTH • CYBERSECURITY © SAIC. All rights reserved. Utilities Department Organizational Assessment City of Palo Alto City Council Presentation January 2012 Agenda SAIC Project Team Similar Engagements Innovative Assessment Tools Project Timeline Conclusion & Questions SAIC.com © SAIC. All rights reserved. Who Is SAIC? 3 •Science Applications International Corporation (SAIC), is a FORTUNE 500® company with approximately 41,000 employees located in 450 offices worldwide, generating $11.1 billion revenue in FY 2011. •The 2009 acquisition of R. W. Beck by SAIC created a firm with an unparalleled pool of talent and resources to deliver complete integrated solutions to utilities. •Organized within SAIC’s Energy Environment & Infrastructure division, these consulting resources have more than 25 years of experience in conducting organizational assessments for various electric, water, wastewater, and natural gas utilities throughout the country. •SAIC’s local presence includes offices in Oakland, Sacramento, and San Diego. Our proposed project manager, Tom Jensen, lives and works in Oakland, while our External Environment Task Leader, Steve Rupp, is in Sacramento. In addition to our proposed project team, we have hundreds of professionals who work day-to- day with utilities. SAIC.com © SAIC. All rights reserved. Introduction to Project Team 4 Similar Engagements SAIC Project Team Similar Engagements Innovative Assessment Tools Project Timeline Conclusion & Questions SAIC.com © SAIC. All rights reserved. Brownsville Public Utilities Board Management & Organizational Assessment •Brownsville Public Utilities (BPUB) is a municipally owned water, wastewater & electric utility in Brownsville, TX governed by a Board of Directors with approximately 50,000 customers. •Purpose: Conduct objective assessment of the organizational structure, strategic & business planning, financial management, operations & maintenance, & overall effectiveness of the utilities. •Highlights: •Using Integrated Systems Approach the assessment resulted in over 100 recommendations related to: •Governance •Planning •Organizational structure & staffing •Financial services & rate design •Water & wastewater services •Electric services •Corporate support services 6 SAIC.com © SAIC. All rights reserved. BPUB Primary Issues & Recommendations Four Primary Issues (PI) & Recommendations (R) were given top priority in the final report •PI 1: Policies for the Board of Directors are not Established & Understood •R: Board policy statements should be developed •PI 2: BPUB does not exhibit a “Planning Culture” •R: Update Strategic Plan •R: Review items that only exceed budget, once approved by Board •R: Involve all employees in planning process •PI 3: An alternate organizational structure is needed •R: Implement proposed organizational structure to more effectively & efficiently manage core functions •PI 4: Water & wastewater utility staffing challenges may create safety issues •R: Assign additional staff to treatment plants •R: Hire/cross-train electrician to serve water & wastewater facilities •R: Hire additional licensed professional engineer to assist in project design & construction. 7 SAIC.com © SAIC. All rights reserved. Lafayette Utilities Systems Organizational Assessment •Lafayette Utilities System (LUS) is a municipally owned utility that provides water, wastewater, electric & fiber services to approximately 60,000 customers in Lafayette, LA. •SAIC has conducted various organizational assessments for LUS over the last 15 years. Examples include assessment for the Civil Engineering & the Power Production Division •Purpose: Conduct objective assessment of the organizational structure, planning culture, operations & maintenance, & overall effectiveness of the divisions. •Assessment resulted in recommendations related to: •Planning •Organizational structure & staffing •Processes 8 SAIC.com © SAIC. All rights reserved. LUS Civil Engineering Division Org Assessment Issues & Recommendations Issues (I) & Recommendations (R) found in LUS report Section 1 •I: Strategic vision & priorities should be established •R: Facilitate a strategic planning process •I: Organizational structure does not support core functions •R: Reorganize division to focus on core areas •I: Insufficient & inadequate planning tools create inefficiencies •R: Implement planning processes & tools 9 SAIC.com © SAIC. All rights reserved. LUS Power Plant Division Org Assessment Issues & Recommendations Issues (I) & Recommendations (R) found in LUS report Section 2 •I: The span of control of Superintendent is very broad •R: Reduce span of control by creating supervisory level •I: Power Plant division is not adequately staffed •R: Pay scales need to be reviewed to attract & maintain qualified personnel •I: Increased costs due to outsourcing & skilled craft augmentation contracts •R: Aggressive efforts to staff vacant positions & reduce dependency on external contractors 10 SAIC.com © SAIC. All rights reserved. Pasadena Water and Power Electric Master Plan & Staffing Analysis •Pasadena Water and Power (PWP) is municipal utility serving 55,000 electric and 33,000 water customers in Pasadena, CA. •Purpose: Conduct objective assessment of the current electrical system, including an organization and staffing analysis, to develop a comprehensive plan for the future. •Highlights: •SAIC developed a Master Plan for PWP which included organization and staffing recommendations. •SAIC developed a Workload Forecasting Tool which was provided to PWP to aid in personnel resources management. 11 SAIC.com © SAIC. All rights reserved. Fortis Turks & Caicos Islands (formerly PPC) Organizational Assessment •Fortis Turks & Caicos Islands (Fortis TCI), formerly PPC, is an investor-owned electric utility located in Providenciales, Turks & Caicos Islands with approximately 10,000 customers. •Purpose: Conduct objective assessment of the utility to determine how to improve organizational effectiveness & efficiency. •Highlights: •Using Integrated Systems Approach the assessment resulted in recommendations related to: •Strategic planning •Cultural challenges •Organizational structure & staffing •Leadership development & succession planning 12 Innovative Assessment Tools SAIC Project Team Similar Engagements Innovative Assessment Tools - A “Systems” Approach - Cultural Transformation - Workload Forecasting Project Timeline Conclusion & Questions SAIC.com © SAIC. All rights reserved. An Approach that Looks at Organizations as “A System.” Greater value to the Utility in using a holistic view. 1414 Strategic Plan Organizational Structure & Processes Personnel Skills & Capabilities Cost Requirements & Structure Cultural Flexibility Optimize Service Delivery SAIC.com © SAIC. All rights reserved. Cultural Transformation Tool (CTT) •Understanding an organization’s current culture, and the values that drive that culture, is critical in developing plans and initiatives that will lead to attainable improvements. •The tool SAIC uses to conduct a cultural assessment is a powerful instrument that describes corporate cultures by identifying the core values that exist within each functional area of the organization. It provides a framework for understanding how the individuals, teams and organizations develop and grow and provides insight into how to align an organization’s culture. •The CTT assessment tools are based on the Seven Levels of Consciousness model. 15 SAIC.com © SAIC. All rights reserved. Seven Levels of Organizational Consciousness Positive Focus /Excessive Focus SERVICE MAKING A DIFFERENCE INTERNAL COHESION TRANSFORMATION SELF-ESTEEM RELATIONSHIP SURVIVAL SERVICE TO HUMANITY Long-term perspective. Future generations. Ethics.. DEVELOPMENT OF CORPORATE COMMUNITYPositive spirit. Creativity. Honesty. Shared vision and values. CONTINUOUS RENEWAL Innovation. Personal Growth. Teamwork.Organizational growth through employee participation. BEING THE BEST. BEST PRACTICEProductivity, efficiency, quality, systems and processes. Bureaucracy. Complacency. RELATIONSHIPS THAT SUPPORT CORPORATE NEEDSOpen communication. Customer satisfaction. Respect. Manipulation. Blame. PURSUIT OF PROFIT & SHAREHOLDER VALUEFinancial stability. Employee health and safety. Exploitation. Over-control. Level 7 Level 6 Level 3 Level 2 Level 1 Level 5 Level 4 COLLABORATION WITH CUSTOMERS & THE LOCAL COMMUNITYStrategic alliances. Employee fulfillment. Environmental awareness. 16 SAIC.com © SAIC. All rights reserved. PPC: Group (80) Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Personal Values Current Culture Values Desired Culture Values IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 0-1-7-2 | IROS (L)= 0-0-0-0 IROS (P)= 2-5-6-0 | IROS (L)= 0-0-0-0 Matches PV - CC 1CC - DC 6PV - DC 5 Health Index (PL) PV: 10-0CC: 10-0DC: 13-0 1. accountability 40 4(R) 2. honesty 38 5(I) 3. commitment 27 5(I) 4. caring 23 2(R) 5. continuous learning 23 4(I) 6. ambition 21 3(I) 7. performance 21 3(I) 8. positive attitude 21 5(I) 9. respect 21 2(R) 10. reliability 20 3(R) Black Underline= PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal 1. community involvement 35 6(S) 2. customer satisfaction 34 2(O) 3. cost management 29 3(O) 4. safety 26 1(O) 5. continuous improvement 24 4(O) 6. accountability 18 4(R) 7. being the best 18 3(O) 8. leadership development 18 6(O) 9. long-term perspective 18 7(O) 10. making a difference 18 6(S) 1. accountability 43 4(R) 2. teamwork 36 4(R) 3. customer satisfaction 31 2(O) 4. continuous improvement 23 4(O) 5. leadership development 23 6(O) 6. open communication 22 2(R) 7. cost management 21 3(O) 8. coaching/ mentoring 20 6(R) 9. reliability 19 3(R) 10. being the best 16 3(O) 11. commitment 16 5(I) 12. continuous learning 16 4(O) 13. positive attitude 16 5(I) Values Plot Copyright 2011 Barrett Values Centre February 2011 SAIC.com © SAIC. All rights reserved. Current Strengths Key Issues MovingForward Personal Values: •Take ownership of actions & demonstrating dedication •Building relationships based on authenticity •An upbeat & determined approach to expanding knowledge & skills to be effective •Top Value: Accountability Current Culture: •Participating in the community & having positive impact •Attention to the bottom line & creating secure work environment where employees take ownership of their actions •Being leaders in the industry •Top Value: Community Involvement •Entropy is slightly elevated at 13% •No potentially limiting values; however some issues beneath the surface may be cause for frustration: •Employees feel stifled by rigid systems/processes & lack of communication •May be working against each other at times due to lack of empowerment & uncertainty about the future •No values at Level 5: Internal Cohesion: May be a gap, covered or new area for development Personal Values to Desired Culture: •Reliability, commitment, continuous learning, positive attitude •Suggests employees desire greater sense of satisfaction & connection with their workplace Current to Desired Culture: •Accountability, customer satisfaction, continuous improvement, leadership development, cost management, being the best •Suggest employees have confidence in the direction of PPC •Values concentrated in Level 4 – Transformation – suggest desire for more energy directed to employee participation & development Desired Culture: •New values indicate that employees want to strengthen the way they work together: •Opportunities to work together & learn from each other •Take ownership of their actions •Establish high standards & principles Cultural Assessment Summary –An Example 18 SAIC.com © SAIC. All rights reserved. Cultural Assessment Recommendations –from recently completed project •Develop internal communication plan to share results of assessment. •Define the key processes & systems to focus on in the next year. Develop specific actions and programs that will foster changes. •Examine new values desired to determine meaning & associated behaviors. •Discuss how the Utility can continue to live the values carried from Current to Desired Culture. •Consider the Values Jump and determine significance. •Determine & define what values the Utility wants to espouse. 19 SAIC.com © SAIC. All rights reserved. Workload Forecasting Tool An Excel© spreadsheet based tool developed by SAIC that: •Provides a quantitative assessment of workload and staffing requirements •Allows management to understand the work that needs to get done and resources required to perform that work in the required timeframe •Allows quantification of resource needs to help solve hiring and outsourcing decisions •Includes templates for estimating resource needs for operating, maintenance and capital projects 20 SAIC.com © SAIC. All rights reserved. Workload Forecasting Tool, cont. •SAIC will evaluate CPAU’s existing staffing levels for field construction work, project management and engineering work to determine how time is allocated between administrative, O&M, customer projects and capital improvement projects. 21 Allocation Hours/Year Tas k O w n e r Task Name Tim e A l l o c a t e d Hou r s P e r Y e a r MG T & A d m i n Op e r a t i o n s / Ma i n t e n a n c e Cu s t o m e r P r o j e c t s CIP MG T & A d m i n O& M Cus t o m e r C a p i t a l Pro j e c t s Ca p i t a l R e p l a c e m e n t & Im p r o v e m e n t s Chen “As Built” drawing revisions & updating 10 hrs/wk 500 30% 40% 30% 0 150 200 150 Chen Drawing for new project of underground utility district 10 hrs/wk 500 50% 50% 0 0 0 500 Chen Another work assigned 5 hr/wk 250 20% 40% 40% 0 50 100 100 Moeis Material specifications 3 hrs/day 666 100% 0 666 0 0 Moeis Material inventory 1 hr/day 222 50% 50% 0 222 0 0 Moeis Underground utility districts 2 hrs/day 444 100% 0 0 0 444 SAIC.com © SAIC. All rights reserved. Workload Forecasting Tool, cont. •SAIC will assist CPAU in prioritization of proposed projects to determine schedules and associated FTE requirements 22 SAIC.com © SAIC. All rights reserved. Workload Forecasting Tool, cont. •SAIC will assist CPAU in evaluating the hours currently spent to support each function compared to the hours required to meet budget projections and the impact of levelizing, expanding and/or outsourcing resources. 23 Project Timeline SAIC Project Team Similar Engagements Innovative Assessment Tools Project Timeline Conclusion & Questions SAIC.com © SAIC. All rights reserved. Project Timeline 25 Conclusion & Questions SAIC Project Team Similar Engagements Innovative Assessment Tools Project Timeline Conclusion & Questions SAIC.com © SAIC. All rights reserved. 2727 Why Select SAIC? Utility Experts Innovative Approach to Organizational Assessments Experience with Multi- Service Utilities Local Presence & Knowledge To Optimize Service Delivery at the City of Palo Alto Questions