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HomeMy WebLinkAboutStaff Report 4239 City of Palo Alto (ID # 4239) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/18/2013 City of Palo Alto Page 1 Summary Title: Sherry Lund Contract Amendment No. 2 Title: Recommendation from the Council Appointed Officers Committee to Approve Amendment No. 2 to a Consulting Contract with Sherry L. Lund Associates to Increase the Scope of Services and Cost by $10,000 for a Total Year-Two Cost Not To Exceed $61,850, to be Funded from the Council Contingency Fund From: City Manager Lead Department: City Attorney Recommendation The Council Appointed Officers Committee (CAO Committee) recommends that Council approve an Amendment No. 2 to Contract No. S12145456 between the City of Palo Alto and Sherry L. Lund Associates to increase the scope of services and cost for year two of the contract (2013-2014) by $10,000, for a total year two not to exceed amount of $61,850, to be funded by the Council Contingency Fund. Background In April 2012, the Council approved a one-year consulting contract with two one-year options to extend with Sherry L. Lund Associates for the purpose of assisting the Council in conducting annual and mid-year performance evaluations for the City Manager, City Attorney, City Clerk and City Auditor. On March 18, 2013, the Council approved Amendment No. 1 to exercise the first option to extend for one year (July 1, 2013 through July 30, 2014) and approve a scope, schedule and budget of $51,850 for the second year of services. Discussion On October 28th, the CAO Committee met to review the work performed to date by Sherry L. Lund Associates and plan for completion of work for the 2013-2014 year. The Committee noted that the consultant’s services have exceeded initial estimates due to a number of factors, including additional and rescheduled meetings, increased support for compensation review City of Palo Alto Page 2 (including planning, research, analysis and coordination), and added consulting and coaching services. Some of this work has been performed using a small allocation for additional services in the original Year Two budget; most is anticipated in the coming months. In total, the Committee anticipated that completing the 2013-2014 services will require an estimated $10,000 in additional support beyond what is available in the additional services allocation. The Committee unanimously recommended approving the attached Amendment No. 2 to the contract with Sherry L. Lund Associates to increase the scope of services and budget for the 2013-2014 year by $10,000 for a total year-two budget of $61,850. Attachments:  : Sherry L. Lund Associates Amendment No. 2 (PDF) 1 Revision November 13, 2013 AMENDMENT NO. 2 TO CONTRACT NO. S12145456 BETWEEN THE CITY OF PALO ALTO AND SHERRY L. LUND ASSOCIATES This Amendment No. 2 to Contract No. S12145456 (“Contract”) is entered into November __, 2013, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SHERRY L. LUND ASSOCIATES, a sole Proprietor, located at 247 La Cuesta Drive, Portola Valley, CA 94028 (“CONSULTANT”). R E C I T A L S: WHEREAS, in April 2012, the Contract was entered into between the parties for the provision of performance evaluation services for Council Appointed Officers (CAOs), with an initial contract term of one year with two options to extend for one additional year each; and WHEREAS, in March 2013, the parties amended the Contract to exercise the first option and extend the term of the Contract for one year (July 2013 through June 2014) and adopt a scope of services, schedule and budget of not to exceed $51,850 for the second year of services; and WHEREAS, the parties now wish to amendment the Contract to increase the scope of services and budget for year two by an additional Ten Thousand Dollars ($10,000) for a total year two not to exceed amount of $61,850. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 4 is hereby amended to read as follows: “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 for year one shall not exceed Thirty Eight Thousand Five Hundred and Fifty Dollars ($38,550.00) and for year two shall not exceed Forty Nine Thousand Three Hundred Fifty Dollars ($49,350.00), assuming that no cancellation/rescheduling of fees due to CITY’s missing project milestones would apply. In the event Additional Services are authorized, the total compensation for those additional services and reimbursable expenses for year one shall not exceed Three Thousand Eight Hundred and Fifty-Five Dollars ($3,855) for a total contract not to exceed amount of Forty Two Thousand Four Hundred and Five Dollars ($42,405.00) and for year two shall not exceed Twelve Thousand Five Hundred ($12,500) for a total contract not to exceed amount of Sixty-One Thousand Eight Hundred Fifty Dollars ($61,850.00). 2 Revision November 13, 2013 Additional Services, as defined in Exhibit C, 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 prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary, but which is not included within the Scope of Services described in Exhibit “A”.” SECTION 2. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES” b. Exhibit “C” entitled “COMPENSATION”. SECTION 3. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager APPROVED AS TO FORM: _____________________________ City Attorney SHERRY L. LUND ASSOCIATES By:___________________________ Name:_________________________ Title:________________________ Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “C”: COMPENSATION 3 Revision November 13, 2013 Year One 04/24/2012 to 06/30/2013 EXHIBIT “A” SCOPE OF SERVICES 1. PROJECT ELEMENT #1: CAO Annual Performance Evaluations (June/July Timeframe) Phase I – Preparation for Review Session Consultant:  Works with internal liaison to develop contract and schedule project meetings and milestones.  Solicits CAO self-evaluations, reviews them and provides feedback and advice.  Assures CAO questions are clarified and raised with Council.  Prepares and distributes binders to Council, including instructions, CAO self- evaluations and blank evaluation hard copies. Distributes soft copies of forms on the same day.  Reviews Council evaluation feedback; meets with each Council member in person or by phone to refine and clarify written feedback prior to performance review session.  Compiles written comments and numerical feedback from Council and develops a written evaluation summary for each CAO. Prepares and sends confidential hardcopy packet with this information prior to each CAO review session.  Prepares information for closed review sessions that enable Council members to focus their discussion efficiently. Phase II – Performance Review Session Consultant:  Provides facilitation and technical assistance as needed during closed session Council performance review meetings with each CAO. Phase III - Post-Session Wrap-Up Consultant:  Documents agreed-upon unified Council feedback for written reviews.  Meets with each CAO to debrief evaluation meetings.  Prepares final evaluation file copies and obtains necessary signatures. Copies are given to CAO Committee Chair for filing and to each individual CAO. Final action on Council agenda is scheduled with Liaison.  Follows up with CAO Chair to debrief and solicit any additional process improvements. 4 Revision November 13, 2013 2. PROJECT ELEMENT #2: Mid-Year Check-In Performance Discussions (Nov./Dec. Timeframe) The Mid-Year is a simpler, more streamlined process than the annual review, and it has a different purpose. Mid-Year discussions allow CAOs and Council to do four things: 1) Provide answers to CAOs’ performance-based questions from the entire Council; 2) Address any misalignments in expectations; 3) Discuss goals that require mutual involvement and participation; and 4) Address emergent issues. They allow Council to more actively support and manage performance rather than letting a goal potentially drift for an entire year. Consultant:  Gathers feedback from CAOs and Council Members in advance.  Creates a summary of key issues for discussion and distributes it to Council and CAOs in advance.  Facilitates closed session meetings.  Provides post-meeting summaries. 3. PROJECT ELEMENT #3: Staff Member Input for CAO Annual Performance Reviews 1. Interview CAOs to get their context and input for employee feedback (e.g., who, if anyone, is on a performance plan, any other circumstances I should know about. 2. Attend a meeting of each CAO with those being surveyed to introduce myself, describe what we are doing and why. Input will be gathered from the direct reports of the City Manager (12), the City Attorney (9), and the City Auditor (6). In the latter two cases, all employees in the department are also all direct reports. I would also gather input from all 4 employees in the City Clerk’s office. They are not all direct reports, but the small numbers make it essential to include everyone in order to preserve anonymity. 3. Collect written feedback through a combination of a few (probably 5-6) simple written survey questions. I will make some brief follow-up phone calls to explore resulting questions that may arise in the written feedback, and to gather more examples to clarify patterns of comments. Staff feedback will be anonymous to CAOs and to Council but not to the Consultant. Council members will receive a brief (1-3 pages) summary to inform their annual review feedback to CAOs. Due to the highly confidential nature of this assignment, I personally perform all work on this contract. 5 Revision November 13, 2013 4. CITY OF PALO ALTO (Client) Responsibilities In order to support the success of the project and to stay within quoted costs, Client agrees to:  Assure involved parties a) are available for one-on-one and group meetings; and b) complete evaluations on time in order to meet project milestones.  Identify a project manager/internal liaison who can schedule appointments and provide support in getting evaluation items on Council agendas.  Provide an efficient and coordinated contracting process through a single liaison.  Provide meeting space and A-V equipment required.  Commit to a professional and respectful process. 6 Revision November 13, 2013 Year Two 04/24/2013 to 06/30/2014 EXHIBIT “A” SCOPE OF SERVICES 1. PROJECT ELEMENT #1: CAO Annual Performance Evaluations (April-August Timeframe) Phase I – Preparation for Review Session Consultant:  Works with internal liaison to schedule project meetings and milestones.  Solicits CAO self-evaluations, reviews them and provides feedback and advice.  Works with CAOs and Council, as needed to refine performance measures.  Assures CAO questions are clarified and raised with Council  Prepares and distributes binders to Council, including instructions, CAO self- evaluations, blank evaluation, and staff feedback summary in hard copy. Distributes soft copies of forms on the same day.  Meets with each Council member by phone or in person to collect evaluation feedback on each CAO.  Compiles written comments and numerical feedback from Council and develops a written evaluation summary for each CAO. Prepares and sends confidential soft copy and hard copy packet and with this information prior to each CAO review session.  Prepares information for closed review sessions which enables Councilmembers to focus their discussion efficiently. Phase II – Performance Review Session Consultant:  Provides facilitation and technical assistance during closed session Council performance review meetings, and performance goal-setting with each CAO.  Documents agreed-upon unified Council feedback for written reviews and goals. 7 Revision November 13, 2013 Phase III – Post-Session Wrap-Up Consultant:  Meets with CAOs to debrief evaluation meetings.  Prepares final evaluation file copies and obtains necessary signatures. Copies are given to CAO Committee Chair for filing and to each individual CAO. Final action on Council agenda is scheduled with City Liaison.  As needed, meets with CAO Chair and/or Committee members to get additional feedback and/or refine future process. Phase IV – Compensation Analysis, Discussions and Potential Action Consultant:  Provides guidance and format to City HR staff member, who collects competitive compensation data and formats it as requested by Consultant.  Analyzes results and works with CAO Chair to prepare for closed session discussions.  Documents decisions. CAO Chair works with internal staff to agendize compensation items for Council meetings and to prepare any resulting changes in contracts.  Performs other compensation-related tasks as requested by CAO Chair or Council. Phase V – Supplemental Consulting and Coaching Consultant agrees to provide supplemental coaching and performance consulting services as requested by the Council. 2. PROJECT ELEMENT #2: Mid-Year CAO Check-In Performance Updates (Nov./Dec. Timeframe) Phase I – Advance Preparation for Discussions 8 Revision November 13, 2013 Consultant:  Interviews each Councilmember for 45-60 minutes to gather update feedback on the four CAOs, including a) whether CAO is on track with goals/objectives, b) whether Councilmember wishes to make any changes/course corrections in Councilmember expectations or CAO performance, and c) whether Councilmember wishes to provide other feedback  Interviews each CAO for 30 minutes to see if there are questions or issues they would like to raise with the Council  Summarize Council feedback and CAO questions and prepare agendas and materials for closed sessions to support efficient and effective discussion Phase II – Closed Session Performance Check-in Discussions Consultant:  Meets with Council in closed session to agree on update feedback  Meets with Council and each CAO for feedback and discussion Phase III – Wrap Up Consultant:  Documents agreed-upon Council feedback  Answers follow-up questions with CAOs  Refines process for future, as requested by Council 3. PROJECT ELEMENT #3: Staff Member Input for CAO Annual Performance Reviews Consultant:  Attends each CAO’s staff meeting to introduce self, explain purpose of soliciting feedback and process 9 Revision November 13, 2013  One-on-one with each CAO, listen to CAO’s perspective and weigh context  For Attorney, Auditor and Clerk – Ask staff members to respond in writing to 4-6 targeted questions that require comments. Read comments and follow-up with brief phone interviews.  For Manager – Conduct individual interviews of approximately one-hour in length  Summarize final feedback and include it in Council’s feedback package  Provide follow-up consulting as requested 4. CITY OF PALO ALTO (Client) Responsibilities In order to support the success of the project and to stay within quoted costs, Client agrees to:  Assure involved parties a) are available for one-on-one and group meetings; and b) complete evaluations on time in order to meet project milestones.  Identify an internal liaison that can schedule appointments and provide support in getting evaluation items on Council agendas.  Provide meeting space and A-V equipment required.  Commit to a professional and respectful process 10 Revision November 13, 2013 Year One 04/24/2012 to 06/30/2013 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 for each task. 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 $38,550.00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, either due to expanded scope or due to the CITY’S not meeting project milestones, the maximum compensation shall not exceed $42,405.00. 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 11 Revision November 13, 2013 Services, including reimbursable expenses, does not exceed $38,550.00 and the total compensation for Additional Services does not exceed $42,405.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $26,000.00 PROJECT ELEMENT #1: Task 2 $6,550.00 PROJECT ELEMENT #2: Task 3 $6,000.00 PROJECT ELEMENT #3: Sub-total Basic Services $38,550.00 Reimbursable Expenses $0.00 Total Basic Services and Reimbursable expenses $38,550.00 Additional Services (Not to Exceed) $3,855.00 Maximum Total Compensation $42,405.00 12 Revision November 13, 2013 CANCELLATION/RESCHEDULING POLICY Cancellation/Rescheduling Policy: There is no charge made if an onsite consulting date can be mutually rescheduled by Client and Consultant within 3 weeks of the original date; if the session cannot be rescheduled during this time frame, the cancellation schedule applies. (For example: If a consulting date has been set for June 1st, the mutually agreed upon rescheduled date must fall between June 2-22nd. A rescheduled date later than June 22nd would incur a cancellation/rescheduling fee as indicated below). Fees for cancellation (or rescheduling as previously described) for any reason are applied on the following schedule, which reflects both advance preparation and exclusive holding of a date for a client: 6 weeks in advance - 25% fee; 5 weeks in advance - 50% fee; 4 weeks in advance - 100% fee. A cancellation fee also applies to individual appointments missed without 24 hours notice based on an hourly rate of $250 per hour multiplied by the number of hours scheduled for the missed appointment. Expenses will be charged according to their cost accrued at time of cancellation. 13 Revision November 13, 2013 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. Expenses for which CONSULTANT shall be reimbursed are: None 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 $0.00 shall be approved in advance by the CITY’s project manager. 14 Revision November 13, 2013 ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced authorization from the CITY’s project manager or council member direction. The parties recognize that on occasion the CONSULTANT may be directed to immediately perform Additional Services and in such cases it is not possible to obtain a written proposal in advance. However, when timing permits before performing Additional Services, 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 Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: 1. Re-work that results from City Council members, officials, or City staff not performing their responsibilities as set forth in Exhibit A, Paragraph 4 in a timely fashion (thus requiring re-work in order to complete the project); 2. Meetings missed without 24 hours notice; and 3. Additional scope of services not covered in Exhibit “A”. 15 Revision November 13, 2013 Year Two 04/24/2013 to 06/30/2014 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 for each task. 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 $49,350.00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, either due to expanded scope or due to the CITY’S not meeting project milestones, the maximum compensation shall not exceed $61,850.00. 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 16 Revision November 13, 2013 between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $49,350.00 and the total compensation for Additional Services does not exceed $61,850.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $32,300.00 PROJECT ELEMENT #1: Task 2 $7,550.00 PROJECT ELEMENT #2: Task 3 $9,500.00 PROJECT ELEMENT #3: Sub-total Basic Services $49,350.00 Reimbursable Expenses $0.00 Total Basic Services and Reimbursable expenses $49,350.00 Additional Services (Not to Exceed) $12,500.00 Maximum Total Compensation $61,850.00 17 Revision November 13, 2013 CANCELLATION/RESCHEDULING POLICY Cancellation/Rescheduling Policy: There is no charge made if an onsite consulting date can be mutually rescheduled by Client and Consultant within 3 weeks of the original date; if the session cannot be rescheduled during this time frame, the cancellation schedule applies. (For example: If a consulting date has been set for June 1st, the mutually agreed upon rescheduled date must fall between June 2-22nd. A rescheduled date later than June 22nd would incur a cancellation/rescheduling fee as indicated below). Fees for cancellation (or rescheduling as previously described) for any reason are applied on the following schedule, which reflects both advance preparation and exclusive holding of a date for a client: 6 weeks in advance - 25% fee; 5 weeks in advance - 50% fee; 4 weeks in advance - 100% fee. A cancellation fee also applies to individual appointments missed without 24 hours notice based on an hourly rate of $250 per hour multiplied by the number of hours scheduled for the missed appointment. Expenses will be charged according to their cost accrued at time of cancellation. 18 Revision November 13, 2013 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. Expenses for which CONSULTANT shall be reimbursed are: None 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 $0.00 shall be approved in advance by the CITY’s project manager. 19 Revision November 13, 2013 ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced authorization from the CITY’s project manager or council member direction. The parties recognize that on occasion the CONSULTANT may be directed to immediately perform Additional Services and in such cases it is not possible to obtain a written proposal in advance. However, when timing permits before performing Additional Services, 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 Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: 1. Re-work that results from City Council members, officials, or City staff not performing their responsibilities as set forth in Exhibit A, Paragraph 4 in a timely fashion (thus requiring re-work in order to complete the project); 2. Meetings missed without 24 hours notice; and 3. Additional scope of services not covered in Exhibit “A”.