PROFESSIONAL SERVICES AGREEMENT
[Evaluation Services for Maintenance and Operational Practices]
THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on thi s _____ day of ____________, 20 22 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and L.A. CONSULTING, INC., , a California corporation (“Contractor”), who agree as follows:
1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference. As a material inducem ent to City to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. The services which are th e subject of this Agreement are not in the usual course of City’s business and City relies on Contractor’s representation that it is independently engaged in the busi ness of providing such services and is experienced in performing the work.
Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity provid ing such services to a municipal agency. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices. The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.
Mike Dering, Information Technology Project Manager (“City’s Project Manager”), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or his designee), that Contractor shall coordinate its services hereunder with City’s Project Manager to the extent required by City’s Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the City Manager.
2. Compensation and Fees.
a. Contractor's total compensation for all services performed under this Agreement, shall not exceed FORTY-SEVEN THOUSAND FIVE HUNDRED SI XTY-FIVE DOLLARS and 00/100 ($47,565.00) without the prior written authorization of City.
b. The above compensation shall include all costs, including, but not limited to, all clerical, administrative, overhead, insurance, reproduction, telephone, trave l, auto rental, subsistence and all related expenses.
3. Payment.
a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.
2 b. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.
c. City will pay Contractor the amount invoiced within thirty (30) days after the approval of the invoice.
d. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.
4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously au thorized in writing and approved by City as an amendment to this Agreement. City’s Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.
5. Licenses. Contractor represents that it and any subcontractors it may e ngage, possess any and all licenses which are required under state or federal law to perform the work contemplated by this Agreement and that Contractor and its subcontractors shall maintain all appropriate licenses, including a City of Orange business lic ense, at its cost, during the performance of this Agreement.
6. Independent Contractor . At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Agreement. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Agreement. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.
Contractor acknowledges that it and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.
7. Contractor Not Agent. Except as City may specif y in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.
3 8. Designated Persons. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” shall perform work provided for under this Agreement.
It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.
9. Assignment or Subcontracting. No assignment or subcontracting by Contractor of any part of this Agreement or of funds to be received under this Agreement shall be of any force or effect unless the assignment has the prior written approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.
10. Time of Completion . Except as otherwise specified in Exhibit “A,” Contractor shall commence the work provided for in this Agreement within five (5) days of the Effective Date of this Agreement and diligently prosecute completion of the work
11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall do all things necessary and incidental to the prosecution of Contractor's work.
12. Reserved.
13. Delays and Extensions of Time. Contractor's sole remedy for delays outside its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay, Contractor must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Contractor’s control. If Contractor believes that delays caused by City will cause it to incur additional costs, it must specify, in writing, wh y the delay has caused additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement.
14. Products of Contractor. The documents, studies, evaluations, asses sments, reports, plans, citations, materials, manuals, technical data, logs, files, designs and other products produced or provided by Contractor for this Agreement shall become the property of City upon receipt. Contractor shall deliver all such products to City prior to payment for same. City may use, reuse or otherwise utilize such products without restriction.
15. Equal Employment Opportun ity. During the performance of this Agreement, Contractor agrees as follows:
a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms 4 of compensation and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or phys ical disability, or any other basis prohibited by applicable law.
c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.
16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a consultant to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code.
17. Indemnity.
a. To the fullest extent permitted by law , Contractor agrees to indemnify, defend and hold City, its City Council and each member thereof, and the officers, officials, agents and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:
(1) Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s work under this Agreement, including any and all claims under any law pertaining to Contractor or its employees’ status as an independent contractor and any and all claims under Labor Code section 1720 related to the payment of prevailing wages for public works projects; and
(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission other than a professional act or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph.
5 b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liabili ty arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.
c. Except for the Indemnitees, the indemnifications provided in this Agreement shall not be construed to extend any third party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement.
d. The indemniti es set fort h in this section shall survive any closing, rescission, or termination of this Agreement, and shall continue to be binding and in full force and effect in perpetuity with respect to Contractor and its successors.
18. Insurance.
a. Contractor shall carry workers ’ compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any worker s’ compensation benefits under a ny City program.
b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) One Million Dollars ($ 1,000,000) per occurrence; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.
c. Contractor shall maintain during the life of this Agreement, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($1,000,000) or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis.
d. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of Contractor under this Agreement.
e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability 6 insurance that is provided as part of the general or automobile liability minimums set forth herein shall be maintained for the duration of the Agreement.
f. Contractor shall maintain during the life of this Agreement professional liability insurance covering errors and omissions arising out of the performance of this Agreement with a minimum limit of One Million Dollars ($1,000,000) per claim. Contractor agrees to keep such policy in force and effect for at least five (5) years from the date o f completion of this Agreement.
g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upo n to cover any loss under the policy.
Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above.
h. Before Contractor performs any work or prepares or delivers any materials, Contractor shall fur nish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days’ prior written notice to City.
i. Except for professional liability insurance coverage that may be required by this Agreement, all insurance maintained by Contractor shall be issued by companies admitted to conduct the pertinent li ne of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. In the case of professional liability insurance coverage, such coverage shall be issued by companies ei ther licensed or admitted to conduct business in California so long as such insurer pos sesses the aforementioned Best rating.
j Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City.
In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all d amages resulting therefrom, by way of set -off from any sums owed Contractor.
k. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery .
Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.
l. Contractor shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to City for review and approval. All coverages for subcontractors shall be subject to all of the requirements stated herein.
7 19. Termination. City may for any reason terminate this Agreement by giving Contractor not less than five (5) days’ written notice of intent to terminate. Upon receipt of such notice, Contractor shall immediately cease work, unless the notice from City provides otherwise.
Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Agreement, unless termination by City shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.
20. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and ot her information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement.
City and its authorized representatives shall have access to and the right to audit and reproduce any of Contractor's records regarding the services provided under this Agreement. Contractor shall maintain all such records for a period of at least three (3) years after termination or completion of this Agreement. Contractor agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.
21. Compliance with all Laws/Immigration Laws.
a. Contractor shall be knowledgeable of and c omply with all local, state and federal laws which may apply to the performance of this Agreement.
b. If the work provided for in this Agreement constitutes a “public works,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid, to the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for c rafts can be located on the web site of the Department of Industrial Relations (www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.
c. Contractor represents and warrants that it:
(1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the I mmigration Reform and Control Act of 1986 (IRCA); and
(2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and
8 (3) Has properly maintained, and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and
(4) Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.
d. Contractor shall require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.
e. Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.
f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.
g. If Contractor or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee, that shall constitute a material breach of this Agreement and may be cause for immediate termination of this Agreement by City.
h. Contractor agrees to indemnify and hold City, its officers, officials, agents and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures City may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in connection with the performance of this Agreement.
22. Governing Law and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California and Contractor agrees to submit to the jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in Orange County, California.
23. Integration. This Agreement constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the work to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any work performed which is inconsistent with or in violation of the provisions of this Agree ment shall not be compensated.
9 24. Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally , by e -mail, or by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission.
“CONTRACTOR” “CITY”
L.A. Consulting, Inc. City of Orange
2711 N. Sepulveda Blvd, Ste. 602 300 E. Chapman Avenue Manhattan Beach, CA 90266 Orange, CA 92866-1591
Attn.: Harry C. Lorick Attn.: Mike Dering
Telephone: (310)374-5557 Telephone: (714)-744-2285 E-Mail: [email protected] E-Mail: [email protected]
25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.
[Remainder of page intentionally left blank; signatures on next page]
10 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.
“CONTRACTOR” “CITY”
L.A. CONSULTING, INC., a California CITY OF ORANGE, a municipal corporation corporation
*By: By:
Printed Name: Mark A. Murphy, Mayor
Title:
*By: ATTEST:
Printed Name:
Title:
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
Mary E. Binning
Senior Assistant City Attorney
*NOTE: City requires the following signature(s) on behalf of the Contractor:
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolutio n, certified by the Secretary close in time to the execution of the Agreement, must be provided to City.
EXHIBIT “A”
SCOPE OF SERVICES
[Beneath this sheet.]
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “We Help Public Works Work”
Phone: 310-374-5777• Fax: 310-374-5557• email: [email protected] 2711 Manhattan Avenue, Suite 602 • Manhattan Beach, California 90266 Internet address: www.laconsulting.com
February 4, 2022
Mr. Mike Dering, PMP
Project Manager
Information Technology
300 E. Chapman Avenue
Orange, CA 92866
[email protected]
Subject: Scope of Work for Evaluation of Maintenance and Operational Practices for Public Works and Community Services Departments
Dear Mr. Dering:
Pursuant your request and recent email, we have enclosed the revised subject scope of work to include the proposed schedule and cost for specific tasks to evaluate current processes, systems, and methods for the Public Works and Community Services Departments. This will provide the basis for establishing and configuring the new CMMS, Cartegraph, to be a tool for process improvement.
Also, specific recommendations will be provided for these future opportunities identified that may contribute to the continuous improvement business and systems process being utilized by both Departments in the application of the new system.
We appreciate the opportunity and look forward to assisting City in optimizing their limited resources.
Sincerely,
Harry C. Lorick, P.E., PTOE, PWLF
Principal
Enclosure:
Proposed Scope of Work
Evaluation of Maintenance and Operational Practices
City of Orange Public Works and Community Services Departments
This scope of services is based on a discussion with City staff in an on-site meeting on January 14th, 2022, and feedback via email on February 2, 2022.
SCOPE OF WORK OVERVIEW
The subject scope of work outlined herein is to be conducted by LA Consulting, Inc. (“LAC”) for the City of Orange (“City”) Public Works Department’s (“Department”) and Community Services Department (“CS Department”).
The project entails an evaluation of current processes, systems, and methods of both Department’s and CS Departments’ operations, including streets, traffic, stormwater, parks, facilities, and potable water, and a review of the recommendations from LAC’s Final Report from 2001. LAC will provide an overview of the current state of operations and maintenance and will outline specific processes and configuration that should be included in the implementation of the new computerized maintenance management system (CMMS). Further, LAC will identify and document opportunities for improved efficiency and effectiveness to operations offered by the new system. In addition to the work within the following scope, LAC will be available to support the implementation of the new system and the recommendations for future improvements by guiding staff in a program that will work for the City.
Successful completion of this project is dependent on the effective interaction and participation between LAC and Departmental personnel, as well as LAC’s experience. The approach has been developed to ensure effective and interactive communication to lead to a comprehensive result that reflects the Departments’ true needs that can be implemented in the new system.
WORK TASKS
TASK 1 – PROJECT INITIATION
The following tasks are intended to familiarize Departments’ employees with the approach LAC will execute during the evaluation and the guidance LAC will provide. Furthermore, these tasks serve to educate LAC of both Department’s current work processes and assets, as well as to collect information regarding current operations and business practices, input from Public Works and Community Services staff, management, and City Administration.
TASK 1.1 – PROJECT STARTUP
During this first task, we will begin our team planning efforts associated with the project. LAC will initiate the project immediately after the contract is signed. LAC staff will conduct an initial presentation with the Director of Public Works, Deputy Director, Director of Community Services, and the IT Project Manager (PM), along with related operations managers and analysts, to review the City’s objectives and their perception of the approach and procedures needed to compile and analyze their maintenance and operational information.
Up to ten (10) structured interviews will be conducted with key leadership, including the managers of Fleet, Maintenance, Water Operations, Community Services, Parks and other key staff that have a major impact on controlling and directing operations. Further, site visits will be conducted by the LAC team to observe general work performed and existing assets. The objective of these sessions is to develop working relationships with key staff and gain a general understanding of each of the objectives. Additional meetings may be held to refine the project’s
LA Consulting, Inc.© February 2022 Page 2 of 8 City of Orange, CA approach, work plan, and methodology to effectively accommodate the specific needs and desires of the City.
End Product: Key City staff will be consulted, and project concepts will be understood.
TASK 1.2 – PREPARE DETAILED WORK PLAN
LAC will prepare a detailed schedule and work plan based on our observations and discussions with each group in the initial task. The project tasks will be further refined with milestone changes if the information obtained from Task 1.1 warrants.
End Product: A detailed schedule and work plan will be prepared.
TASK 1.3 – ESTABLISH A REVIEW COMMITTEE
A Review Committee from both Public Works and Community Services will be established to ensure an effective project, with communication and credibility, among all levels of the organization. The group be updated at major milestones and will provide direction to LAC. In addition, the Committee will periodically review progress and accomplishments, providing LAC with guidance. The Committee members will develop a firsthand understanding of the project’s process and developments, as they are documented and presented. This method will promote a sound understanding of the analysis process and ensure the credibility of LAC’s findings and recommendations. It was recommended that the City appoint two in-house Study Coordinators (i.e. one from Public Works and another from Community Services) to work closely with LAC.
These two individuals will assist in researching and compiling any required operational data and act as a liaison between the Review Committee and LAC.
The Committee will consist of selected key City executive and management representatives.
They will work with the project team on the current Public Works and Customer Services information; and finally, the review of the findings and recommendations. In addition, the participants will identify contacts that will assist in compiling project data.
End Product: A Review Committee and the two Study Coordinators will be identified to work with LAC to ensure project credibility and assist in data research.
TASK 1.4 – CONDUCT ORIENTATION
A general orientation session will be conducted to further establish uniform understanding of LAC’s role between the Committee and the project team during the second week of the on-site effort. During this meeting, LAC will describe, in detail, the proposed approach, schedule, and identify any potential obstacles. A review of the systematic approach and the operational data that will be researched and compiled, will be presented to all Committee members and available employees, along with the benefits that can be expected from the system implementation.
End Product: A uniform understanding between staff participating in the evaluation and LAC as to the project objectives, work methods, and schedule.
TASK 2 – DATA COLLECTION AND BASELINE PREPARATION
After a Review Committee has been established and orientation meetings have taken place, LAC will interview staff and collect data on all aspects of the City’s current Public Works and Community Service maintenance and operations. This will be accomplished through a series of sub-tasks described below.
LA Consulting, Inc.© February 2022 Page 3 of 8 City of Orange, CA TASK 2.1 – WORK HISTORY (CITY PERFORMS – LAC ANALYZES)
LAC will review work performed for each major activity within each group based on interviews and data from the Department’s CMMS database, MaintStar. The data compiled will be analyzed and will include person-days of annual work, by activity, as well as work units accomplished and cost per unit. This analysis will be performed for each activity.
End Product: A history of maintenance and operational activities will be documented for a multi-year basis.
TASK 2.2 – FEATURES INVENTORY AND ASSET COLLECTION REVIEW (CITY PERFORMS – LAC ANALYZES)
With the assistance of City employees, LAC will confirm the summaries of inventories of infrastructure features that relate to work being performed. Existing data files and spatial data, information from staff, and observations will be used to determine values. The City will assist in the actual research, with guidance from LAC.
Existing records, including CMMS, Finance, and GIS data, will be utilized in lieu of gathering data in the field. LAC will perform some limited confirmation of the information for accuracy.
End Product: Existing infrastructure features, inventories, and history will be compiled and confirmed.
TASK 2.3 – RESOURCE DATA (CITY PERFORMS – LAC ANALYZES) LAC will request a historical listing by general category for labor, equipment, and material resources used with the assistance of City employees. LAC shall determine the format after consultation with the Review Committee. Further, LAC will request the historical calculated avoidable overhead that has been applied to labor costs within the CMMS.
End Product: Resource data will be collected.
TASK 2.4 – FINANCIAL RESOURCE DATA (CITY PERFORMS – LAC
ANALYZES)
The existing systems identified, along with past budgetary information, will be used to collect the financial data. Historical workloads will be compiled from data found within the Department’s CMMS. This includes budgets compiled for the last two years; both in house and contract numbers will be compiled.
End Product: Workload and financial data will be captured.
TASK 2.5 – MANAGEMENT APPROACH AND PREPARATION OF BASELINE PAPER
All key strategic goals and functions identified in structured interviews will be further analyzed through the appraisal of available planning documents such as inventories, needs identification systems, complaints, routine maintenance schedules, activity guidelines, work methods, and work programs. The scheduling methods and assignment of work processes will be recorded and discussed with various staff. The work orders or log items that track work performed and hours/resources expended will be identified and observed. Finally, the control mechanisms, such as generated reports and analysis, will be evaluated. Any graphs and/or figures that track work effort, accomplishment, and expenditures will be obtained and evaluated.
LA Consulting, Inc.© February 2022 Page 4 of 8 City of Orange, CA These existing work processes will be documented in a short summary in context of the basic management processes of planning, organizing, scheduling, and controlling. In addition, the maintenance structure and organization will be identified, and general assignments and responsibilities of key staff will be outlined.
LAC will flowchart how work is currently identified, planned, organized, scheduled, performed, and monitored for the Department or maintenance yards using the information obtained in previous steps. All reporting information will be documented. Both proactive (preventative) and responsive maintenance will be identified.
LAC will outline the general workflow for each group, including data and automated system approaches for all groups. This subtask will be documented in a concise 7-12 page working paper and distributed to the Review Committee. LAC will present baseline information to Review Committee for their input.
End Product: Overview of existing management processes and current and historical data for each group, documented in a concise baseline working paper (7-12 pages).
TASK 3 – EVALUATE OPPORTUNITIES
The LAC team will use collected information and previous experience to compare historical and current maintenance and operations, as well as discover opportunities where additional improvement can be made. Comparisons will also be made to various other groups within the City, other comparable agencies, published benchmark data, and from LAC’s experience. The following subtasks will be performed in this effort:
TASK 3.1 – WORKFLOW ANALYSIS
An idealized workflow, borrowing from the American Public Works Association (APWA), National Association of City Engineers (NACE), and LAC’s experience, will be compared to the actual processes utilized within the Department. Any differences will be noted with specific opportunities identified and changes documented.
Opportunities for improvement may relate to streamlining and or reengineering processes, or the elimination of unnecessary steps. The current mission, vision, and goals will be compared to existing business processes and those of other successful benchmark agencies to determine alignment.
TASK 3.2 – WORK METHOD
A sample of (4-5) key activities within each group (i.e. Public works and Community Services) will be discussed by LAC with employees to determine crew size, equipment used, work method(s), quality of work, and productivity noted. Comparisons and opportunities for improvement will be identified, based on LAC’s experience, discussions with employees, and other agency data. This will include outlining specific activity work methods along with a flowchart of the work processes.
TASK 3.3 – RESOURCE AND ORGANIZATION EVALUATION
LAC will analyze historical activity frequencies or levels of service (LOS) using information collected in previous tasks. These LOS/frequencies will be compared from year to year, as well as with other comparable agencies and published benchmark data.
LA Consulting, Inc.© February 2022 Page 5 of 8 City of Orange, CA Further, LAC will review the operational structure versus actual day-to-day operations. Spans of control, staff mix, skills, and turnover, leave, and management parameters will be reviewed and benchmarked against other agencies, by work function.
TASK 3.4 – WORKLOAD AND PLAN
The procedures used by the City to develop annual maintenance budgets will be examined; including methodology for estimating work accomplished, annual labor hours, equipment resources, and average daily production using the information from previous tasks and discussions with maintenance employees, outlined in the baseline working paper.
This review will focus upon the relationship of funding to workload and will also cover sources of funding, allocation of the funds, the impact of funding and workload changes/constraints, and how maintenance expenditures are justified.
TASK 3.5 – TECHNOLOGY EVALUATION
LAC will review the City’s current databases, existing software platforms, and associated data models for all infrastructure and system operations as they relate to maintenance and operational functions. Technology, including wireless applications, GIS, GPS, and web-enabled capabilities, will be outlined. LAC will review the various inputs and outputs, developing an understanding of how the existing data is processed. A general logic flow will be developed that outlines the processes. LAC will also interview key employees who manage the databases.
LAC will outline the City’s current automated systems with operational functions, and any efforts needed to meet the desired system goals. Areas not covered, or that lack the desired results, will be documented.
End Product: Outline of current automated systems and functions and compared with desired system goals to identify effort needed to meet the goals.
TASK 3.6 – COMPARISON OF CURRENT PROCESSES TO 2001’s FINAL
REPORT RECOMMENDATIONS
In this subtask, LAC will perform a simplified evaluation of current processes, systems, and methods for the groups. LAC will compare these against recommendations made in LAC’s 2001 Final Report, and the changes that have occurred in operations and maintenance. Further, LAC will evaluate the status of each of the 2001 Final Report recommendations, documenting any efficiency and/or effectiveness impacts to operations.
End Product: Outline comparison between current operations and idealized ones and identify opportunities for further improvement.
TASK 4 – DOCUMENT AND PRESENT FINDINGS AND RECOMMENDATIONS The findings of Task 3 and related subtasks will be compiled, documented, and presented by LAC to the Review Committee and to all relevant supervisors and managers for review and further discussion. Findings and recommendations related to processes, methods, resources, and technology will cover all basic management functions from work planning, organization, directing and controlling, and improving, and will highlight best business practices.
After the presentations, the information will be assembled into the working paper and submitted to the Committee for further comment and input. Upon receiving comments from the Committee,
LA Consulting, Inc.© February 2022 Page 6 of 8 City of Orange, CA the findings and related baseline information will be used to outline a series of initial recommendations. LAC will present the initial recommendations to both the Committee and to all impacted supervisors and managers in a meeting. Using their feedback, a draft final report will be developed and submitted. The working paper produced during this task will provide the information necessary to document benefits. Input and guidance from the Review Committee and key operations staff will be encouraged during both the findings and recommendations presentations to assist LAC in further refining the recommended solutions.
End Product: Working paper that documents initial findings (5 - 10 pages). In addition, a draft report will be compiled and submitted.
TASK 5 – DOCUMENTED ACTION PLAN WITH RECOMMENDATIONS
The action plan working paper will be finalized after meeting with City staff and a draft final document will be submitted. After the presentation, input from the Review Committee will be encouraged to assist LAC in refining recommendations for further improvement.
After all input and feedback is considered related to the draft working paper, a final report (25-35 pages) will be submitted to the City. The report will include explicit recommendations that, when implemented, will further improve the effectiveness and efficiency of operations. Both short- and long-term benefits and costs will be estimated. The focus will be on working with the employees at all levels from management, supervisors, and line staff to develop a “play book” or action plan that will allow the City to continue to pursue continuous improvement in the new system.
The final report will include an executive summary, baseline, findings, and recommendations sections covering policy, operational, procedural, and organizational recommendations. All recommendations will be related to facts collected during the project and the documented successes of benchmark agencies. This process will ensure buy-in among employees of recommendations that can be implemented.
The final report will outline specific actions and configurations that should be established in the new system, along with any operations and business practice suggestions.
End Product: A final written report for system improvements that documents baseline operations, evaluation findings, and recommendations, along with a 4-5-page executive summary will be submitted.
TASK 6 – MONTHLY STATUS AND QUALITY CONTROL
Monthly status reports will be prepared for the City. These reports will include a listing of all the project tasks with a summary status and a percent complete for each task.
End Product: Monthly status report will be provided.
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PROPOSED SCHEDULE
This project is predicted to take three months yet could be influenced by the City’s participation.
If the project starts on February 21, 2022, the effort could be completed by May 9th, 2022, if the support criteria below are met.
SUPPORT
LAC’s successful process outlined in our scope along with our experience in various projects is based on considerable employee involvement. If the City is to adhere the schedule, the following must occur:
Project Coordinators with some City background (i.e. Public Works and Community Services) in which LAC can schedule overall effort must be provided. Staff must be made available for interviews.
Assistance provided to schedule meetings, presentations locations, yards, etc. Documents requested must be produced within seven working days of the request. Provide data and upload in electronic formats to expedite the process. The documents produced by LAC must be reviewed by the City in less than seven working days.
Provide relevant input with corresponding support data for working papers used for data collection.
Staff must be available for meetings and follow-up within a two weeks’ notice and make attempt to schedule with one week.
Coordination must occur for joint meeting dates and onsite reviews between the two coordinators to eliminate redundant effort and communication.
PROPOSED COST
LAC is comfortable estimating the cost by task in a lump sum costing basis, having done similar projects. Our experience in this type of effort and our knowledge of the area allows us to use our experience to make these estimates. As shown in the figure below, the total cost for the six tasks is $47,565.
This is a challenging assignment, and LAC has the capabilities and necessary resources to ensure a successful project with real and achievable short and long term recommendations outlined.
LA Consulting, Inc.© February 2022 Page 8 of 8 City of Orange, CA