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HomeMy WebLinkAbout1997-01-21; City Council; 14008; XD Consulting Contract ApprovalCITY OF CARLSBAD -AGENDA BILL . AB# jq! 008 APPROVAL OF CONTRACT WITH MTG. 1/21/97 CITY MGR.~ PROCESS REDESIGN FOR EMPLOYMENT DEPT. FlNllS CITY ATTY.& XD CONSULTING TO PERFORM BUSINESS DEPT HD. f+ RECOMMENDED ACTION: Approve Resolution No. 91-2 5 authorizing the Mayor to execute a contract between the City of Carlsbad and XD Consulting to perform a business process redesign for the human resources employment process, and appropriating $35,000 from the General Fund balance. ITEM EXPLANATION: The Financial Information Systems project officially began in March 1994, when the Council authorized staff to proceed with the replacement of the City’s current system. In April 1996, Council approved the contract with Bi-Tech Software, Inc., to provide software for the new financial information system. Phase 5 of the project began shortly thereafter. The project comprises the following seven phases: Phase Task 1 Analyze needs and develop 3 to 5 year plan. 2 Issue RFP to vendors for hardware-and.software. 3 Evaluate the proposals, select vendors. 4 Upgrade microcomputer hardware and software, train 5 employees. 6 Implement core Financial system. 7 Implement HR, Payroll, Permits and Fixed Assets. Select and implement other system needs not met by Bi-Tech. Status Complete Complete Complete Complete In Process Complete Oct 97 Complete July 98 We are in the midst of Phase 5. the implementation of the core financial system. This includes the general ledger, purchasing, accounts payable, accounts receivable and budgeting modules. On January 2, 1997, we went live with the new system for these core financial processes. In February, we will begin the implementation of Phase 6, which includes human resources, payroll, permits and fixed assets. The human resources module is very flexible, allowing the City to develop the system to match business procedures. The City has the opportunity to conduct a Business Process Redesign (BPR) project prior to designing the human resources module so that any changes that are made will be reflected in the new system. The employment process, in particular, is a source of frustration and concern for all departments. Staff interviewed fourteen employees from various departments to determine if a BPR is needed. The general feeling among this group of people is that the employment process is difficult to follow, takes too much time, and is almost impossible to track. Staffs conclusion is that an examination of this process and a subsequent redesign would be very beneficial to the City. There are other areas that will be implemented in Phase 6 that need to be redesigned as well, specifically the payroll and timekeeping process and the compensation and benefits process. These two redesign projects will be performed in-house to help cut down on project costs. Page 2 of Agenda Bill # ; ~-/, 00 8 Staff is requesting approval of a BPR project for the Human Resources Employment process. Human resources is a module of the Bi-Tech Software Financial Information System that includes applicant tracking, employee benefits, employee demographics and job design. This module is scheduled to begin implementation in March 1997. It is critical to complete the BPR process prior to initiating the Human Resources Information System (HRIS) implementation. In order to perform a BPR project correctly, it is necessary to devote the time, money and effort to ensure a quality product. We are proposing to hire XD Consulting, a consultant who has worked with the City on another BPR project (purchasing and accounts payable) to assist with the redesign. Goal of the BPR With the advent of a completely new software system for the day-to-day processing of such things as payroll, budgets, invoice payments and the purchase of goods and services, we are presented with the unique opportunity to look at a much larger sphere of influence with respect to the systems. Instead of simply automating processes and overlaying the new software onto our current procedures, we can seize this chance to tackle a much bigger issue: business processes hampered by numerous steps and unnecessary papetwork. The goal of this project is to streamline the employment process and make it more effective and efficient. An obvious benefit to the City is the reduction of papetwork and staff time, translating to cost savings. Project Scope and Description The BPR project we are proposing is for the Human Resources employment process. This project will involve the following steps. 1. lnifiate the Project. Identify the Steering Committee. Choose the BPR team 2. Understand the Process. Define key business objectives and identify supporting measurements that monitor how well those objectives are met. Document the current process and its requirements. Outline customer needs. 3. Design the New Process. Design and document the new process. Cross-check the redesign against Bi-Tech system characteristics. 4. Transition the Business. Build the case for action. Communicate changes and solicit feedback. Develop the implementation plan. Implement changes. Measure the results. It is anticipated that a team of five to eight members will spend approximately 200 hours analyzing and redesigning the employment process. This includes a staff member from the Human Resources Department who will be assigned to this project and will be pulled from the day-to-day tasks in Human Resources. Outside Assistance The City hired XD Consulting in June 1996 to assist with implementation of the FIS and perform a BPR in the purchasing and accounts payable area. The redesign is complete, and implementation of the new process began in November. Due to XD's experience with and knowledge of the City and its business practices, it would be advantageous to the City to hire XD for the human resources BPR to /.. - Page 3 of Agenda Bill # > 3, on 8 maintain continuity of the process improvement project and avoid having to educate another consultant. FISCAL IMPACT: The proposal submitted by XD Consulting provides services for a not-to-exceed limit of $35,000. However, if the project proceeds smoothly and with ideal conditions, the cost of XD Consulting’s services will be $26,500. A contingency fund of $8,500 is built into the proposal, knowing that a wide range of potential issues may arise that will affect the amount of time that XD Consulting staff will have to dedicate. These costs for performing the BPR were not part of the original cost estimate for the project. In order to fund this project, it is necessary to appropriate money from the General Fund Balance. The current balance of the General Fund is approximately $14 million; therefore, there are sufficient funds available for this purpose. EXHIBITS: 1. Resolution No.??- ds authorizing the Mayor to execute a contract with XD Consulting to perform a BPR and appropriating $35,000 from the General Fund balance. 2. Contract between the City of Carlsbad and XD Consulting for professional services, AGREEMENT THIS AGREEMENT, made and entered into as of the &day of Ir\rw?c la , 199, by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as "City", and XD Consulting, hereinafter referred to as "Contractor." RECITALS City requires the services of a Software Implementation Contractor to provide the necessary consulting services for a business process improvement project for the Human Resources recruitment process; and Contractor possesses the necessary skills and qualifications to provide the services required by the City; NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. CONTRACTORS OBLIGATIONS To assist with the City's business process improvement project, as described in the Proposal (Exhibit A), with the exception of the Time Collection Project for Payroll. 2. CITY OBLIGATIONS The City shall provide the contractor with time and resources as needed to perform the business process redesign project, outlined in the contractor's proposal, Exhibit A, with the exception of the Time Collection Project for Payroll. 3. PROGRESS AND COMPLETION The work under this contract will begin within ten (IO) days after receipt of rev. 8/26/96 1 notification to proceed by the City. Extensions of time may be granted if requested by the Contractor and agreed to in writing by both parties. Both parties will give allowance for documented and substantiated unforeseeable and unavoidable delays not caused by a lack of foresight on the part of the Contractor, or delays caused by City inaction or other agencies' lack of timely action. 4. FEES TO BE PAID TO CONTRACTOR The total fee payable for the services to be performed shall not exceed $35,000. No other compensation for services will be allowed except those items covered by supplemental agreements per Paragraph 7, "Changes in Work." All travel expenses incurred by the Contractor will be reimbursed by the City, with a total not to exceed $1,000 through the duration of the contract. The City reserves the right to withhold a ten percent (10%) retention until the project has been accepted by the City. Incremental payments, if applicable, should be made as outlined in attached Exhibit "A," 5. DURATION OF CONTRACT This agreement shall extend for a period of six months from date thereof. The contract may be extended by the City Manager for one (1) additional three (3) month period or part thereof, based upon a review of satisfactory performance and the City's needs. The parties shall prepare extensions in writing indicating effective date and length of the extended contract. 6. PAYMENT OF FEES Payment of approved items on the invoice shall be mailed to the Contractor prior rev. 8/26/96 n L to the 30M day of the month the invoice was submitted. 7. CHANGES IN WORK If. in the course of the contract, changes seem merited by the Contractor or the City, and informal consultations with the other party indicate that a change in the conditions of the contract is warranted, the Contractor or the City may request a change in contract. Such changes shall be processed by the City in the following manner: A letter outlining the required changes shall be forwarded to the City by Contractor to inform them of the proposed changes along with a statement of estimated changes in charges or time schedule. A Standard Amendment to Agreement shall be prepared by the City and approved by the City according to the procedures described in Carlsbad Municipal Code Section 3.28.172. Such Amendment to Agreement shall not render ineffective or invalidate unaffected portions of the agreement. 8. COVENANTS AGAINST CONTINGENT FEES The Contractor warrants that their firm has not employed or retained any company or person, other than a bona fide employee working for the Contractor, to solicit or secure this agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this agreement. For breach or violation of this warranty, the City shall have the right to annul this agreement without liability, or, in its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fees, gift, or contingent fee. rev. 8/26/96 9. NONDISCRIMINATION CLAUSE The Contractor shall comply with the state and federal laws regarding nondiscrimination. IO. TERMINATION OF CONTRACT In the event of the Contractor's failure to prosecute, deliver, or perform the work as provided for in this contract, the City Manager may terminate this contract for nonperformance by notifying the Contractor by certified mail of the termination of the Contractor. The Contractor, thereupon, has five (5) working days to deliver said documents owned by the City and all work in progress to the Finance Director. The Finance Director shall make a determination of fact based upon the documents delivered to City of the percentage of work which the Contractor has performed which is usable and of worth to the City in having the contract completed. Based upon that finding as reported to the City Manager, the Manager shall determine the final payment of the contract. This agreement may be terminated by either party upon tendering thirty (30) days written notice to the other party. In the event of such suspension or termination, upon request of the City, the Contractor shall assemble the work product and put same in order for proper filing and closing and deliver said product to City. In the event of termination, the Contractor shall be paid for work performed to the termination date; however, the total shall not exceed the lump sum fee payable under paragraph 4. The City Manager shall make the final determination as to the portions of tasks completed and the compensation to be made. rev. 8/26/96 4 11. DISPUTES If a dispute should arise regarding the performance of work under this agreement, the following procedure shall be used to resolve any question of fact or interpretation not otherwise settled by agreement between parties. Such questions, if they become identified as a part of a dispute among persons operating under the provisions of this contract, shall be reduced to writing by the principal of the Contractor or the City Finance Director. A copy of such documented dispute shall be forwarded to both parties involved along with recommended methods of resolution which would be of benefit to both parties. The City Finance Director or principal receiving the letter shall reply to the letter along with a recommended method of resolution within ten (IO) days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the dispute shall be forwarded to the City Council for their resolution through the Office of the City Manager. The City Council may then opt to consider the directed solution to the problem. In such cases, the action of the City Council shall be binding upon the parties involved, although nothing in this procedure shall prohibit the parties seeking remedies available to them at law. t 12. CLAIMS AND LAWSUITS The Contractor agrees that any contract claim submitted to the City must be asserted as part of the contract process as set forth in this agreement and not in anticipation of litigation or in conjunction with litigation. The Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and the Contractor may be subject to criminal prosecution. The Contractor acknowledges that rev. 8/26/96 5 California Government Code sections 12650 etsea., the False Claims Act, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If the City of Carlsbad seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. The Contractor acknowledges that the filing of a false claim may subject the Contractor to an administrative debarment proceeding wherein the Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five years. The Contractor acknowledges debarment by another jurisdiction is grounds for the City of Carlsbad to disqualify the Contractor from the selection process. @(Initial) The provisions of Carlsbad Municipal Code sections 3.32.025, 3.32.026, &(Initial) 027 and 3.32.028 pertaining to false claims are incorporated herein by reference. 13. STATUS OF THE CONTRACTOR The Contractor shall perform the services provided for herein in Contractor's own way as an independent Contractor and in pursuit of Contractor's independent calling, and not as an employee of the City. Contractor shall be under control of the City only as to the result to be accomplished, but shall consult with the City as provided for in the request for proposal. The persons used by the Contractor to provide services under this agreement shall not be considered employees of the City for any purposes whatsoever. rev. 8/26/96 6 The Contractor is an independent Contractor of the City. The payment made to the Contractor pursuant to the contract shall be the full and complete compensation to which the Contractor is entitled. The City shall not make any federal or state tax withholdings on behalf of the Contractor or hislher employees or subcontractors. The City shall not be required to pay any workers' compensation insurance or unemployment contributions on behalf of the Contractor or hislher employees or subcontractors. The Contractor agrees to indemnify the City within 30 days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which the City may be required to make on behalf of the Contractor or any employee or subcontractor of the Contractor for work done under this agreement or such indemnification amount may be deducted by the City from any balance owing to the Contractor. The Contractor shall be aware of the requirements of the Immigration Reform and Control Act of 1986 and shall comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and Consultants that are included in this agreement. 9 14. CONFORMITY TO LEGAL REQUIREMENTS The Contractor shall cause all drawings and specifications to conform to all applicable requirements of law: federal, state and local. Contractor shall provide all necessary supporting documents, to be filed with any agencies whose approval is necessary. The City will provide copies of the approved plans to any other agencies. rev. 8/26/96 7 15. OWNERSHIP OF DOCUMENTS All plans, studies, sketches, drawings, reports, and specifications as herein required are the property of the City, whether the work for which they are made be executed or not. In the event this contract is terminated, all documents, plans, specifications, drawings, reports, and studies shall be delivered forthwith to the City. Contractor shall have the right to make one (1) copy of the plans for hidher records. 16. REPRODUCTION RIGHTS The Contractor agrees that all copyrights which arise from creation of the work pursuant to this contract shall be vested in City and hereby agrees to relinquish all claims to such copyrights in favor of City. 17. HOLD HARMLESS AGREEMENT Contractor agrees to indemnify and hold harmless the City of Carlsbad and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorney fees arising out of the performance of the work described herein caused in whole or in part by any willful misconduct or negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except where caused by the active negligence, sole negligence, or willful misconduct of the City of Carlsbad. Contractor shall at its own expense, upon written request by the City, defend any such suit or action brought against the City, its officers, officials, employees and volunteers. Contractors indemnification of City shall not be limited by any prior or subsequent declaration by the Contractor. rev. 8/26/96 8 18. ASSIGNMENT OF CONTRACT The Contractor shall not assign this contract or any part thereof or any monies due thereunder without the prior written consent of the City. 19. SUBCONTRACTING If the Contractor shall subcontract any of the work to be performed under this contract by the Contractor, Contractor shall be fully responsible to the City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this contract shall create any contractual relationship between any subcontractor of Contractor and the City. The Contractor shall bind every subcontractor and every subcontractor of a subcontractor by the terms of this contract applicable to Contractor's work unless specifically noted to the contrary in the subcontract in question approved in writing by the City. 20. PROHIBITED INTEREST No official of the City who is authorized in such capacity on behalf of the City to negotiate, make, accept, or approve, or take part in negotiating, making, accepting, or approving of this agreement, shall become directly or indirectly interested personally in this contract or in any part thereof. No officer or employee of the City who is authorized in such capacity and on behalf of the City to exercise any executive, supervisory, or similar functions in connection with the performance of this contract shall become directly or indirectly interested personally in this contract or any part thereof. 9 rev. 8/26/96 21. VERBAL AGREEMENT OR CONVERSATION No verbal agreement or conversation with any officer, agent, or employee of the City, either before, during or after the execution of this contract, shall affect or modify any of the terms or obligations herein contained nor entitle the Contractor to any additional payment whatsoever under the terms of this contract. 22. SUCCESSORS OR ASSIGNS Subject to the provisions of Paragraph 18, "Hold Harmless Agreement," all terms, conditions, and provisions hereof shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns. 23. EFFECTIVE DATE This agreement shall be effective on and from the day and year first written above. 24. CONFLICT OF INTEREST The City has determined, using the guidelines of the Political Reform Act and the City's conflict of interest code, that the Contractor will not be required to file a conflict of interest statement as a requirement of this agreement. However, Contractor hereby acknowledges that Contractor has the legal responsibility for complying with the Political Reform Act and nothing in this agreement releases Contractor from this responsibility. 25. INSURANCE The Contractor shall obtain and maintain for the duration of the contract and any rev. 8/26/96 10 .. and all amendments insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. Said insurance shall be obtained from an insurance carrier admitted and authorized to do business in the State of California, with the exception of the consultant's Professional Liability Insurance. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:V" and shall meet the City's policy for insurance as stated in Resolution No. 91-403. A. Coveraaes and Limits. Contractor shall maintain the types of coverages and minimum limits indicated herein, unless a lower amount is approved by the City Attorney or City Manager: 1. Comprehensive General Liability Insurance. $1,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits shall apply separately to the work under this contract or the general aggregate shall be twice the required per occurrence limit. 2. Automobile Liability (if the use of an automobile is involved for Contractor's work for the City). $1,000,000 combined single-limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the Labor Code of the State of California and rev. 8/26/96 11 Employer's Liability limits of $1,000,000 per accident for bodily injury. 4. Professional Liability. Errors and omissions liability appropriate to the contractor's profession with limits of not less than $500,000 per claim. Coverage shall be maintained for a period of five years following the date of completion of the work. B. Additional Provisions. Contractor shall ensure that the policies of insurance required under this agreement contain, or are endorsed to contain, the following provisions. 1. The City shall be named as an additional insured on all policies excluding Workers' Compensation and Professional Liability. 2. The Contractor shall furnish certificates of insurance to the City before commencement of work. 3. The Contractor shall obtain occurrence coverage, excluding Professional Liability which shall be written as claims-made coverage. 4. This insurance shall be in force during the life of the agreement and any extension thereof and shall not be canceled without 30 days prior written notice to the City sent by certified mail. 5. If the Contractor fails to maintain any of the insurance coverages required herein, then the City will have the option to declare the Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order that the required coverages may be maintained. The Contractor is responsible for any payments made by the City to obtain or maintain such insurance rev. 8/26/96 12 and the City may collect the same from the Contractor or deduct the amount paid from any sums due the Contractor under this agreement. 26. RESPONSIBLE PARTIES The name of the persons who are authorized to give written notices or to receive written notice on behalf of the City and on behalf of the Contractor in connection with the foregoing are as follows: For City: For Contractor: Title: Senior Management Analyst, Info Sys Project Name: Jeanne Flack Address: City of Carlsbad, 1200 Carlsbad Village Drive Carlsbad, CA 92008 Title : Partner Name: Gary Helling, XD Consulting Address: 3760 Convoy St., Suite 332 San Diego, CA 921 11 27. BUSINESS LICENSE Contractor shall obtain and maintain a City of Carlsbad Business License for the duration of the contract. 28. ENTIRE AGREEMENT This agreement, together with any other written document referred to or contemplated herein, embody the entire agreement and understanding between the rev. 8/26/96 13 parties relating to the subject matter hereof. Neither this agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. Executed by Contractor this z.4.* day of \W @-fZcJ:j " 7 LJ ATTEST: (print namehitle) By: (sign here) ALETHA L. RAUTENKRANZ (print namehitle) City Clerk (Proper notarial acknowledgment of execution by Contractor must be attached.) (President or vice-president and secretary or assistant secretary must sign for corporations. If only one officer signs, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering that officer to bind the corporation.) APPROVED AS TO FORM: RONALD R. BALL 14 rev. 8/26/96 I ” .. CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT 0 personally known to me -OR- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)&are subscribed to instrument and acknowledged to me executed the same i&her/ capacity(ies), and that b@ her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. SIMATURE NOTARY OPTIONAL^^ Though the information below is not required by law, 1 may prove valuable to persons relying on the document and could prevent lraudulenl reattachment of this form. . CAPACITY CLAIMED BY SIGNER 0 INDIVIDUAL 0 CORPORATE OFFICER PARTNER(S) 0 LIMITED 0 GENERAL TITLE(S) 0 ATTORNEY-IN-FACT 0 TRUSTEES 0 GUARDlANlCONSERVATOR 0 OTHER SIGNER IS REPRESENTING WMEOF PERSON(S1 OR ENTITV(IES) DESCRIPTION OF ATTACHED DOCUMENT c Agreement TITLE OR TYPE OF DOCUMENT Fourteen (14) NUMBER OF PAGES March 24, 1997 DATE OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE ~~ c CITY OF CARLSBAD PLAN FOR PROCESS IMPROVEMENTS IN HUMAN RESOURCES INTRODUCTION The City of Carlsbad will continue its process improvement initiative, focusing on the Human Resources Department. Two main areas have been identified for redesign: Recruitment / Hiring and Payroll. We suggest a different approach for each of these. The Recruitment I Hiring process is large and involved, requiring on-going input from a number of departments. A team of City of Carlsbad employees, both from within the process and outside, will work together to develop the redesign. In this way, process improvement of the Recruitment / Hiring process will be managed as the Purchasing / AP redesign was. Payroll is also complex. However, other than for time collection and entry, the calculation of payroll is handled by no more than a few people, so it is less far-reaching as a process than Recruitment / Hiring. In addition, from our experience with Bi-Tech, we know the payroll module of the Bi-Tech system is less flexible. Therefore, the City will need to follow Bi-Tech protocol rather dosely. For these reasons, we recommend a more limited approach to redesigning the brocess. Based on available statistics and information from employee interviews, ,we suggest analyzing the current Time Collection process. This information will then feed the Bi-Tech implementation work on the payroll module. XDconsulting I I Om6 C! PROJECT STRUCTURE Recruitment I Hiring Project The following groups will be involved in the Recruitment I Hiring project: + Facilitator + Team Process Owner + Steering Committee The team will be composed of customers of the process, representatives from the process’s staff and a facilitator. Two to three days a week, the team will work a half-day together. In addition, team members may be required to work up to half a day each week outside of team hours. The team will have four to six members, including the XDconsulting facilitator. The process owner will be the process champion and will lead the change effort. The steering committee will provide vision and direction to the team. It will have three or four members. c Time Collection Project The following groups will be involved in the Time Collection project: + Facilitator + Review Committee An XDconsulfing facilitator will interview customers of the process and payroll staff, in group sessions or individually. We will streamline the process as fits the Bi-Tech system and then communicate the new procedures to the Bi-Tech implementation team. The review committee for this project will be larger and broader than the typical steering committee. Review committee members will be chosen both from inside and outside the process. They will review and validate the recommendation. XDconsulting 2 ” C’ c WORKPLAN - Recruitment I Hiring Project A description of the targeted tasks involved in each of the four phases of the Recruitment I Hiring project is given below. Initiate the Project Interview the process owner and Steering Committee. Pick the team. In choosing team members, often personality and a combination of analytic skills and “big picture“ perspective are more important than the specific area in which they work. Understand the Process Define key business objectives and identify supporting measurements (“metrics”) that monitor how well those objectives are met. Establish ultimate goals for each of the metrics. Document the current process and its requirements. This will be achieved through team meetings. Outline customer needs. Identify which activities are required, value-adding, etc. Look for redundancies and excessive hand-offs. Design the New Process Design and document the new process. We will do creative thinking exercises and learn about how the process is done elsewhere. We may benchmark too - i.e.. compare metrics with cities. An integral part of this step will be outlining how roles, skills, measurements and incentives must change. Cross-check the redesign against system characteristics, looking for any inconsistencies. XDconsulting’s system implementation team will work with the process team. XDconsulting 3 10/3/96 t. .. Transition the Business . Build the case for action. For example, determine the cost of customers' common work-arounds that will be eliminated with the redesign. . Communicate changes and solicit feedback. Communication is important - if people don't buy-in, they won't allow the redesign to succeed. At this point, we will also set the mechanism in place for continuous improvement. . Develop the implementation plan. We may take a phased approach or simply present the new procedures to the people who will be impacted. Implement changes. This may involve pilot projects depending on the scale of the changes. Measure the results. This will be done by Human Resources staff and team members over time. c XDconsulting 4 IW6 c, PROJECTED TIME COMMITMENTS - Recruitment I Hiring Project INITIATE THE PROJECT + Interview process owner & Steering Committee + Pick team UNDERSTANDTHEPROCESS t Define key business objectives & identify + Document current process & requirements + Outline customer needs DESIGN THE NEW PROCESS + Design and document new process + Cross-check redesign against system TRANSITION THE BUSINESS + Build case for action + Communicate changes & solicit feedback + Develop implementation plan + Implement changes t Measure results supporting measurements 5 7 ' 5 2 5 35 15 25 10 3 5 60 10 50 20 5 10 15 5 30 20 5 5 20 5 10 20 20 60 I 15 XDconsulting 5 .. c. WORKPIAN - Time Collection Project A description of the targeted tasks involved in the Time Collection project is given below. C' . Study Bi-Tech payroll module. The facilitator will learn how Bi-Tech handles payroll. We will work through Bi-Tech documentation as well as communicating directly with Bi-Tech trainers. . Interview "customers" of the process. The facilitator will hold group sessions with employees of different departments. We will examine the City's range of time collection needs. . Interview payroll staff. To assess the current process, the facilitator will schedule time with staff that work in the payroll process. The format may be one-on-one interviews or group sessions. Gather and analyze data. To complement the information collected from the interviews, the facilitator will review available data. For example, the Customer Satisfaction Survey recently distributed by the Human Resources Department will be an input. They may also monitor the process to collect further information. . Communicate new procedures to Bi-Tech implementation team. We will provide the Bi-Tech implementation team with procedures to help put in place the payroll module. XDconsulting 6 .. .- ,. .. c c PROJECTED TIME COMMITMENTS - Time Collection Proiect + Study Bi-Tech payroll module + Interview payroll staff Interview "customers" of the process Gather and analyze data Communicate new procedures to Bi-Tech implementation team 6 12 8 14 20 I TOTAL 60 I XDconsulting 7 .. .. 0. ., <.. PROFESSIONAL FEES AND TIMING Professional Fees The following table summarizes the hours assigned to each task from our proposed workplan. I I I I Initiate the Project 12 I $1.500 I 01 $0 I Understand the Process $6,250 50 $4,375 35 $8,750 70 Transition the Business $1,875 15 $10,000 80 Design the New Process $2,500 20 ., .... .......... .. ~ '. .: .,. TOTAL ,,: .......... .. :;.: ,:.::: ...... . ' 242.. . :$8,750. :. :,:<~..i~,;i:iii70,, '. ,..I. $26;500' ....... ............ ............. ................ .......................... ......... w '' '' ' ' We will perform work under this agreement on a time and materials basis. Professional services will be billed at a rate of $150 per hour for partners, $125 for consultants and $40 for paraprofessional assistance. We will also bill for actual out-of-pocket expenses for travel, subsistence, copying, fax, telephone, etc. that are directly incurred through our performance of this project. We are willing to present a not-to-exceed price of $35,000 for the Recruitment I Hiring project and $7,500 for the Time Collection project. Implementation projects vary widely in levels of complexity based on the required project scope. During implementation, the scope tends to vary from the initial plan as new system functionality is discovered or the need for modifications is raised. Based on these circumstances, it is very important to manage project scope and measure changes in terms of the effect on the overall project. The scope of our involvement is specifically defined in this proposal. Significant changes to project scope or level of involvement could require additional work and will have to be evaluated at that time. XDconsulting will present scope change issues to the City for consideration and resolution before commencement of related work. c XDconsulfing 8 I Om6 i. .- the month. Our invoices will itemize the time spent by task and by staff member. Our At the end of each month, we will bill you for the actual time spent on the project during invoices will also include actual expenses, as discussed above, and will not exceed $2,000 for the project. The terms of our invoices are Net 30 days. XDconsulting is prepared to perform work outside of the agreed workplan if specifically requested and approved in advance by the City of Carlsbad. As customary, these additional services, authorized by the City, will be billed on a time and materials basis at the quoted hourly rates. Timing We have begun work on the Recruitment I Hiring project. The team will be selected by the end of this week and will begin meeting regularly during the week of October 21. This project must be completed before Bi-Tech system implementation of the HR module, currently scheduled for first quarter, 1997. With the Time Collection project, we are prepared to start work within two weeks of your acceptance of this proposal. Similar to the Recruitment I Hiring project, this project must be completed prior to payroll module system implementation, due to begin in the second quarter of 1997. (: XDconsulting 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .-" . RESOLUTION NO. 97-25 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT BETWEEN XD CONSULTING AND THE CITY OF CARLSBAD TO PERFORM A BUSINESS PROCESS REDESIGN AND APPROPRIATING $35,000 FROM THE GENERAL FUND BALANCE WHEREAS, in April 1996 the City Council approved the contract with Bi-Tech Software for the purchase of software and related services for the new Financial Information System; and WHEREAS, the Financial Information System is proceeding into Phase VI, which is the installation and implementation of the Human Resources, Payroll, Fixed Assets and Permits software modules; and WHEREAS, there is a need to review the Human Resources employment procedures to make process improvements; and WHEREAS, XD ConSulting is currently assisting with the implementation of Bi- Tech Software and performing a business process redesign project on the purchasing and accounts payable procedures; and WHEREAS, it is advantageous to the City to hire XD Consulting for the Human Resources business process review because of their experience with and knowledge of the City and its procedures; and WHEREAS, the total cost of the services provided to the City by XD Consulting for this project will be $35,000, and funds are available in the General Fund balance to accommodate this expense. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 4 .. 1 2 2 4 E E 7 E 5 1c 11 1.2 15 14 15 1E 17 la 19 2a 21 22 23 24 25 26 27 28 c 1. That the above recitations are true and correct. 2. That the Mayor of the City of Carlsbad is authorized to sign the contract between the City of Carlsbad and XD Consulting. 3. That the fees and compensation for said services shall be $35,000 and shall be described in the contract between the City of Carlsbad and XD Consulting. 4. That $35,000 is appropriated from the General Fund balance to the Financial Information System project budget. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council, on the 21st day of January , 1997 , by the following vote to wit: AYES: Council Members Lewis, Finnila, Nygaard, Kulchin and Hall NOES: None ABSENT: None ATTEST: &.L& 4. -&?? ALETHA L. RAUTENKRANZ, City Clerk \ (SEAL) . April 1,1997 Gary Helling, Partner XD Consulting 3760 Convoy Street, Suite 332 San Diego, CA 921 11 Re: Perform Business Redesign for the Human Resources Employment Process The Carlsbad City Council, at its meeting of January 21, 1997, adopted Resolution No. 97-25, approving an agreement with XD Consulting to perform a business process redesign for the human resources employment process. Enclosed please find a fhlly signed copy of the agreement and a copy of Resolution No. 97-25, for your files. Assistant City ClerkV mijp Enclosures 1200 Carlsbad Village Drive - Carlsbad, California 92008-1989 - (760) 434-2808 @