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
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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.
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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
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..
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
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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
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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
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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
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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
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Agreement
TITLE OR TYPE OF DOCUMENT
Fourteen (14)
NUMBER OF PAGES
March 24, 1997
DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE
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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
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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.
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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
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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
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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
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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
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0.
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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
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.-" .
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:
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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 @