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HomeMy WebLinkAbout2010-04-06; City Council; 20181; Approval of Contract for Integration Services of Integration Services of HCMSCITY OF CARLSBAD - AGENDA BILL 12 AB# 20.181 MTG. 4/06/10 DEPT. HR APPROVAL OF CONTRACT FOR INTEGRATION SERVICES OF THE HUMAN CAPITAL MANAGEMENT SYSTEM (HCMS) DEPT. HEAD°\C^ CITY ATTY. Jfi CITYMGR. I/\^L^ RECOMMENDED ACTION: Adopt Resolution No. 2010-069 approving an agreement with Kinsey & Kinsey, Inc. for the implementation of the Human Capital Management System (HCMS). ITEM EXPLANATION: On January 12, 2010, Council authorized the negotiation of contracts with vendors for the purchase and installation of Human Capital Management System (HCMS) software. Research shows that for large HCMS projects, it is common practice to contract the services of an integrator who is independent of the software vendor. Generally, this is done to save costs on consulting services that, if provided by the actual software vendor, tend to be more expensive than if provided by an integrator. A software integrator leads the analysis and configuration of the software package and helps City staff determine the most effective way of setting up and using the HCMS. An independent software integrator can better represent the City's interests during implementation. The software vendor, Lawson, was awarded a contract with the City on February 16, 2010 based on a best value evaluation by the purchasing officer. Kinsey & Kinsey was selected via the proposal from Lawson, as Lawson's partner and a less expensive way to implement the HCMS software. Kinsey and Kinsey is a certified Lawson integration partner with a long history of successful government installations. The purchasing officer recommends the use of Kinsey and Kinsey, Inc. to lead the integration of the HCMS. FISCAL IMPACT: The one-time fee associated with integration services is $351,802. On January 12, 2010, the City Council authorized staff to transfer funds from the Technology Innovation Fund to the General Capital Construction (GCC) Fund for the HCMS project. Therefore, no new funding is needed for this agreement. Services provided by an integrator end at the conclusion of software implementation, therefore, there are no ongoing costs associated with this agreement. ENVIRONMENTAL IMPACT: This action does not constitute a project as defined under CEQA (California Environmental Quality Act) pursuant to CEQA regulation 15060c(3). EXHIBITS: 2010-0691. Resolution No. 2. Agreement for Services - Kinsey & Kinsey, Inc. DEPARTMENT CONTACT: Donna Hernandez 760-602-7533 donna.hernandez@carlsbadca'.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED * n D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D 4 SYSTEM (HCMS) RESOLUTION NO. 2010-069 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT WITH KINSEY & KINSEY, INC. FOR INTEGRATION SERVICES FOR THE HUMAN CAPITAL MANAGEMENT 5 WHEREAS, on January 12, 2010, Council authorized the purchase and 6 installation of a Human Capital Management System (HCMS); and 7 WHEREAS, integration services of Kinsey & Kinsey, Inc. are necessary to8 achieve the City's desired outcome regarding the successful implementation of the 10 HCMS; and WHEREAS, on January 12, 2010, sufficient funds were transferred from the 12 Technology Innovation Fund to the General Capital Construction (GCC) Fund for the HCMS project and, therefore, no new funding is required. 14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 15 Carlsbad, California, as follows: 16 1. That the above recitations are true and correct. 17 2. That the one-time fee associated with integration services is $351,802. I 0 9 3. That the Mayor is hereby authorized to execute a contract between the City of 20 Carlsbad and Kinsey & Kinsey, Inc. for HCMS integration services. 21 // 22 // 23 // 24 25 26 27 " 28 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 6th day of April. 2010, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Packard and Blackburn. NOES: None. ABSENT: Council Member Hall. ATTEST: LORRAINE M (SEAL) A IJ[ AGREEMENT FOR SERVICES KINSEY & KINSEY, INC THIS AGREEMENT is made and entered into as of the _ t-c day of _ , 2010, by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and Kinsey & Kinsey, Inc. ("Contractor"). RECITALS A. City requires the professional services of an implementer that is experienced in Lawson's Human Capital Management System B. Contractor has the necessary experience in providing professional services and advice related to Lawson's Human Capital Management System, C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2- STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of one year from the date first above written. The City Manager may amend the Agreement to extend it for two additional one year periods or parts thereof if required to complete the scope of work. Extensions will be based upon a satisfactory review of Contractor's performance. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. City Attorney Approved Version #05.06.08 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be Three Hundred Fifty One Thousand Eight Hundred and Two dollars ($351,802). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The City reserves the right to withhold a ten percent (10%) retention for each of the project milestones until City has accepted the work and/or Services of each milestone specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the City's election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to 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 Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. City Attorney Approved Version #05.06.08 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct 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. The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any 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 services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VN". OR with a surplus line insurer on the State of California's List of Eligible Surplus Line Insurers (LESLI) with a rating in the latest Best's Key Rating Guide of at least "A:X". 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless City Attorney or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. 10.1.1 Commercial 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 will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liability (if the use of an automobile is involved for Contractor's work for City). $1,000,000 combined single-limit per accident for bodily injury and property damage. City Attorney Approved Version #05.06.08 IP 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The City will be named as an additional insured on General Liability. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. City reserves the right to require, at anytime, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a City Attorney Approved Version #05.06.08 4 1 representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. 15. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For City: For Contractor: Name Debbie Porter Name Bradley J. Kinsey Title Senior Analyst Title Owner Department Human Resources Address 26 N. Park Blvd. City of Carlsbad Glen Ellvn. IL60137 Address 1635 Faraday Avenue Phone No. 630-858-4866 Carlsbad, CA 92008 Phone No. 760-602-2441 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST City will evaluate Contractor's duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and City's Conflict of Interest Code is required of Contractor or any of Contractor's employees, agents, or subcontractors. Should it be determined that disclosure is required, Contractor or Contractor's affected employees, agents, or subcontractors will complete and file with the City Clerk those schedules specified by City and contained in the Statement of Economic Interests Form 700. Contractor, for Contractor and on behalf of Contractor's agents, employees, City Attorney Approved Version #05.06.08 5 8 subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. Contractor further warrants that neither Contractor, nor Contractor's agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that Contractor will file with the City an affidavit disclosing this interest. 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based City Attorney Approved Version #05.06.08 upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for 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, City will 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 the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, 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 City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any City Attorney Approved Version #05.06.08 other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order and all exhibits attached hereto. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. City Attorney Approved Version #05.06.08 8 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CONTRACTOR *By: (sign here Bradley J. Kinsey/CEO (print name/title) b.kinsey@kinsey.com (e-mail address) -By: (2, ATTEST: (sign here) Christine Kinsey / Ass't Treasurer (print name/title) chrkinsey@yahoo.com (e-rnail address) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation, Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-President **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: , City Attorney City Attorney Approved Version #05.06.08 II- EXHIBIT "A" City of Carlsbad, California Lawson Implementation Scope, Plan, Roles & Schedule Services to be Provided by Kinsey & Kinsey, Inc. Statement of Work February 23, 2010 Project Scope The Lawson Software implementation will be a coordinated group project jointly managed by Kinsey & Kinsey, Inc. (K&K) and the City of Carlsbad (City). It is understood that the City will designate a resource to provide project management support. It is further understood that time management software from CyberShift will be deployed in conjunction with the Lawson solutions, and K&K explicitly understands that close cooperation with the CyberShift implementation team will be required. With all of the parties involved, it is especially important to have a clear understanding of how the pieces fit together and where individual responsibilities lay. K&K will provide the necessary training and implementation support to enable the City to learn and operate the software listed below. The following products will be deployed (subject to final negotiation between the City of Carlsbad and Lawson): Human Resource Management Suite Employee Records & Personnel Actions using standard Lawson functionality, without additional process flows, including the additional items below: v' Basic Leave Management S Training Management J Employee Discipline s Employee Grievances Benefit Administration Position Control Payroll, including the additional items below: s W-2s using standard Lawson functionality •/ Quarterly and annual Federal and State tax reporting s New CalPERS reporting and interfacing requirements s Garnishments Employee & Manager Self Service, including the additional items below: J Some limited usage of the Design Studio to tailor screens to the City's environment) City Attorney Approved Version #015.06.08 10 s Performance evaluations (City will continue to use its existing paper evaluation form and it will attach it to the Lawson Performance Evaluation screen) Lawson Business Intelligence (LBI) Business Intelligence / Reporting Crystal Reports Dashboards Lawson Process Flow Integrator Microsoft Add-ins BSI Tax Factory (payroll tax tables) Lawson System Foundation Scope also includes attaching documents (via a link) to transactions created from the above modules via standard Lawson functionality wherever the City believes it has business merit. Scope does not include integration with the City's current imaging system. Other than for the limited use of the Design Studio for Employee & Manager Self Service, this tool will not be used for other Lawson screens. This tool will be considered for use by the City in a subsequent project. The scope for data conversions includes all current HR and payroll data, and all HR and payroll history which is for approximately 12 years, with City accepting responsibility for harvesting data and presenting in a consistent manner for loading into Lawson. Scope also includes development of various interfaces that are detailed later in this Statement of Work (SOW). The LBI and Process Flow deliverables include 180 hours of time. This would typically result in deliverables including a 1/2 day scoping session, the 5 standard Lawson Process Flows listed below, and the development of 2 dashboards, 3 custom Crystal reports (one of which would be CalPERS), 10 process flows or "smart notes" (or equivalent as mutually agreed). K&K will have a senior consultant function as both the application consultant and the project coordinator. It is expected that this person will work in conjunction with the City's PM to manage the project. Standard procedures call for regular (typically weekly) project teams meetings and biweekly steering committee meetings to ensure that management remains involved with the project and aware of all issues. The Steering Committee should include the Executive Sponsor, the City's Project Manager, and functional experts from each directly affected operating entity (hr, payroll, technology, possibly finance). An Issues Log will be maintained by the City's PM which will identify problems encountered during implementation, identify the parties responsible for resolution and agreed upon follow-up dates. City Attorney Approved Version #05.06.08 11 Project Assumptions General: The Standard K&K/Lawson Expedited Implementation Methodology will be followed. The tasks described in this SOW define that methodology. Project transparency and communication channels will support the success of this project. K&K will assume a schedule of management meetings. Services to be provided are outlined in this SOW. For further required services beyond those proposed by K&K, the City will have access to such services by following the amendment process. CyberShift will go-live at the same time as the Lawson system. The project schedule could range from 12 to 15 months, depending on the final implementation strategies for both Lawson and CyberShift. K&K has agreed to this estimated schedule within its SOW costs, as long as the City is flexible on when K&K will work on the project. Specifically, in order for K&K's economic model to work their consultants will have to predominately work full-time for logical phases of the project. For example, K&K consultants could work on the project full-time for a few months and then pull out for a period of time while the City and/or CyberShift complete their other work. However, working part-time throughout the whole project would not work for K&K based on what they bid in their SOW. A final schedule will be developed in the Planning Phase of the project and agreed to jointly by K&K and the City. K&K services will start approximately 30 to 60 days after its contract is approved. This will give the City time to complete the Scope Statement deliverable and document its current business processes. Project Management: CITY will join K&K in taking responsibility for achievement of milestones and completion of deliverables. The Steering Committee will provide guidance and advice, monitor project status and make critical decisions during the overall City Attorney Approved Version #05.06.08 12 implementation project. The City PM will maintain an Issues Log throughout the duration of the Project. K&K will name a senior consultant to be the firm's project coordinator. It is expected that this person will work closely with the City. Project Resources: s When K&K consultants are onsite, they will work 40 hours over 4 days per week s In order to meet the scheduled dates for the project deliverables, K&K and the City personnel may be required to perform work outside of the normal business hours; to the extent practicable, this will be minimized. •/ The City reserves the right to approve K&K team members assigned to the project. If any member of the K&K team is deficient in completing its duties, the City will notify K&K and K&K agrees to replace that person with a person of similar training and experience and to ensure that the new K&K member is fully updated on the project without causing material delays in the project schedule. s The City will be the lead and provide technical staff to scrub and convert legacy payroll and human resource data associated with the project engagement s The City will provide subject matter experts in the development of to-be payroll and human resource business processes. •S K&K will be responsible for the configuration and setup of the system, including functionalities and processes. The City will provide the business rules to K&K (to allow K&K to configure the system) and test the system. v' The City will be responsible for the lead role in customized test scripts and participation in system and user acceptance testing. s The City will be responsible for the lead role in development of customized training materials and business process documentation. s The City will be responsible for participation and management of cut- over planning, go-live, and post-implementation services. City Attorney Approved Version #05.06.08 13 Training, Testing, Documentation and Other Management Tools: s K&K will provide a written future state summary as a section 1.2 deliverable. s K&K will provide a written conversion plan as a section 1.3 deliverable. s K&K will not provide custom end-user documentation. ^ The City will assume responsibility for all custom end-user documentation of applications and processes. Lawson provides complete on-line documentation of delivered functionality which can be customized to include site-specific instructions. Such changes and other documentation as may be desired are the responsibility of City. The Lawson Learning Accelerator tool provides an excellent vehicle for documenting processes and creating additional training and reference materials. S The City PM will assume change management responsibilities with assistance from K&K. S K&K will be providing training sessions for the City's implementation team, those that will have primary responsibility for running the applications, in accordance with the training details outlined in this SOW. Technical training will be provided through Lawson public classes in one of the Lawson regional offices and is not part of this SOW. Every attempt will be made to facilitate the City's use of Lawson's Irvine, CA facility, but specific class availability and project needs may require that some technical training be obtained by attending classes in one of Lawson's eight other regional offices. •S K&K will provide application training at the City's facilities. S An integrated project workplan will be created that includes tasks and deliverables for the City, K&K, CyberShift and Velocity. It will be developed by the City in collaboration with all three vendors. Project Delays ^ Delays caused by the City in delivering requested or required services may result in changes to the project schedule and/or additional charges. The City will need to agree that such changes are appropriate and also approve any related charges. Delays caused by K&K will not result in additional charges to the City. City Attorney Approved Version #05.06.08 14 /7 Project Work Plan 1.1 - Project Strategy Meeting/Project Plan Development The project strategy meeting is the official kick-off session to establish the project objectives, direction, introduce the Implementation Methodology, review the preliminary project plan, and establish a team approach to achieve a successful implementation. Objective: This is a critical step. It is crucial to the success of the implementation that certain information is obtained and agreed upon: • Commitment • Project Scope and Goals • Roles & responsibilities Critical components to developing a successful Project Plan include: • Milestones • Critical Dates • Project Constraints • Critical Business Issues The first draft of the project schedule is reviewed. Revisions will likely be required in the forthcoming weeks. The initial schedule documents mission critical tasks required to implement the product and it attempts to assign a realistic time frame to the project tasks. K&K will provide a high level project plan template (without dates) in Microsoft Excel (or other mutually agreed-upon format) which the Steering Committee will use to complete a draft Project Plan. The project activities will thereafter be updated by the City PM and managed by all responsible parties against this project plan for the duration of the implementation. The plan should include enough detail to allow the City to create a long-term staffing schedule (which will necessarily be subject to regular revision). Deliverables to the Project: K&K Strategy Meeting agenda Meeting Facilitation Draft Project Plan (Schedule) Attend Kickoff Meeting (a joint responsibility) Weekly Team Meetings (a joint responsibility)** Bi-Weekly Status Report and Steering Committee Meeting (a joint responsibility)** Maintain Project Library (a joint responsibility)** CITY Scope Statement (to be completed prior to K&K starting the project) Project Team Training Room City Attorney Approved Version #05.06.08 15 Project Management Plan (to include K&K components from their draft Project Plan deliverable) Development & Production Environments (via Velocity) Kickoff Meeting Presentation (with input from K&K) Attend Kickoff Meeting (a joint responsibility) List of Critical Business Issues List of Application Business Objectives Project Team Identified Project Plan Review City Hosted SharePoint Site for Project Library Maintain Project Library (a joint responsibility)** Execute Communication Plan** Maintain Integrated Workplan (which includes tasks and deliverables for the City, K&K, CyberShift and Velocity).** Maintain Issue Log** Weekly Team Meetings (a joint responsibility)** Summary Minutes for Weekly Team Meetings** Bi-Weekly Status Report and Steering Committee Meeting (a joint responsibility)** Summary Minutes for Steering Committee Meetings** ** This deliverable occurs throughout the project. 1.2 - Current State / Future State Analysis The Project Team needs to understand how the business currently operates. This step requires review and documentation of the City's critical work flows. Information gathering that began during the software selection process will continue through the conference room pilot. K&K consultants will introduce Lawson best practices and develop consensus on "To-Be" specifics for implementation. Objective: The goal of this activity is to establish a base line for remaining implementation tasks. That is because some analysis of business requirements was used in the software selection process. As a first step, the implementation team will confirm the critical business issues established in the sales cycle. The team will formalize the project's scope and goals, establish the project standards and develop the application business objectives. A second step is to identify current business practices. The City will document its current business processes in flowchart format prior to K&K starting the project. Once K&K starts the project, the City team will review the flowcharts with K&K so that everyone will have the same understanding. This will also include a review of the process deficiencies noted by the City in its analysis. Identifying current business practices City Attorney Approved Version #05.06.08 16 and procedures is a significant forerunner to determining how to implement these processes into the Lawson framework. Before the Project Team begins to develop new procedures, they want to identify obsolete and outdated practices, as well as ones that are working well. The goal of the implementation project is not to change how the City does business, but rather, where possible, to improve it. For the very reason that new software requires new procedures, few team members want to put a lot of effort into documenting old systems. Everyone is eager to start on the 'new' systems; however, the time taken here is normally more than recovered in later activities. For instance, development meetings are more productive when everyone has previously agreed on how the current systems work and what is to be kept. In the design phase, the team members will document the new procedures. The deliverables from this activity provide a starting point. When examining current business practices, all of the departments that will be affected by the application(s) being implemented need to be considered. A review of all the major functions within the departments will be completed and documented. Given the resource-intensive schedule to go-live, procedures will be prioritized based on crucial business functions and complexity. This will become a working document that can translate into CRP scripts, new procedure manuals and training guides. Deliverables to the Project: K&K High-level Future State Work Sessions (that include relevant demo's of Lawson to help the team conceptualize the new Future State design) Final Future State (focus will be on the significant and/or the complex business processes). CITY The Client should be looking at who uses the reports or forms. What is the volume of transactions? Are there files that should be cleaned up? Can the process be improved? Current Process Analysis (via a medium level of detail using flowcharts and bullets of major process deficiencies; focus will be on the significant and/or the complex business processes. This deliverable will be substantially done prior to K&K starting the project.) Copies of Reports, Forms and Screens List of Current Interfaces List of Application of Business Objectives List of Critical Business Issues Policy Issues & Recommendations Resulting from the Final Future State City Attorney Approved Version #05.06.08 17 10 1.3 - Outline conversion and interface plans The Project Team needs to define all of the interfaces that will be required and the legacy data that will be converted so that adequate time may be scheduled for these functions. Objective: The goal of this activity is to identify the interfaces and determine the responsibilities of the specific team members that will be involved in the interface creation. In addition, the data conversions will be defined. It is understood that additional resources will be made available to assist with the harvesting of the legacy data. The team will document the requirements for the conversions and interfaces and the technical members will begin writing some of the programs, as needed. Deliverables to the Project: K&K Meeting facilitation Introduction of Lawson API's Review of planned interfaces and interface options Review of standard data conversion process and issues Written summary of the conversion and interface plan CITY The City should include the technical resources that will be available for the project and be prepared to assist in determining where skills may need to be supplemented by K&K or other outside resources. Knowledge of applications to be interfaced Knowledge of legacy data to be converted Understanding of the amount of data to be converted 2.1 - Project Team Training Functional training will be provided by K&K at the City's facilities. In the classroom, the Project Team members learn about system set up, features and processing flow. K&K will utilize standard Lawson training materials, but use them selectively, tailoring the training to City's specific needs and interests. Technical training will be provided in Lawson public classes; these are held in Irvine, CA and other locations throughout the US. Inasmuch as the solution is being hosted by Velocity, technical training for System Administration and Security Administration are not on the recommended list (but would be if the solution were to be hosted internally). Learning Accelerator Training will be provided as early in the process as practical so that full utilization may be made of this tool. It is recommended that wherever the specific processes of the City require more help instruction than is provided by the standard Lawson on-line City Attorney Approved Version #05.06.08 18 Z.1 help, that scripts be developed using the Learning Accelerator tool. It is generally understood that the tool will be used to document processes for on-going training of new employees and also to support the specific processes which will be utilized by non-power users (i.e., Requisition Self- Service). Education Proposed Private Education (provided at client site with client resources, 12 person limit, training performed by K&K staff at $1,400/day) plus travel expenses: Human Resources & Payroll Training Human Resource Structure - 3 days Payroll Structure & Processing - 2 days Benefits Processing - 2 days Personnel Processing - 2 days HR & Payroll Functional Reporting - 1 day Implementing Employee & Manager Self Service - 1 day Total K&K Private Education 11 days Public Education provided by Lawson @ $900/person/day: Note: Public Education is training that is required by Carlsbad staff for purposes of being able to effectively complete the project implementation; however, this is provided in this SOW for informational purposes and no cost or effort by K&K is included in this SOW. The City will register for these classes through the MyLawson.com web portal and payment will be made directly to Lawson. Technical Training Introduction to Lawson Business Intelligence - 4 days LS9 Security Training - 4 days Build ProcessFlow Custom Solutions, 9.0-4 days Total Public Education 12 days Objective: Provide training to the Project Team to allow them to make setup and procedural decisions and identify potential issues. Deliverables to the Project K&K Training Material In electronic format Instructors CITY Full participation Technical Team Training (via Lawson) City Attorney Approved Version #05.06.08 19 2.2 -Application Exploration After the City Project Team has attended training, they must spend time on the system at their site. The team uses this time to understand how the basic Lawson system works. With this hands-on experience, the team can begin documentation on how their business process will integrate with Lawson Objective: This activity occurs after the Project Team completes a Lawson training course. The purpose is for the team members to experiment with the functions available in an application and reinforce the concepts they learned in class. With a thorough understanding of the basic applications, the team can confidently decide how Lawson is to be incorporated into the business. Despite the training materials and classroom instruction, most people cannot remember all the details from class. Neither can the instructors cover every nuance of the applications. Therefore, it is important that the team make the time to get onto the system and experiment. This initial exploration is supported by standard test data delivered by Lawson and has been previously installed at Carlsbad by K&K. While the sample data is not that of a City, experience has shown it to be adequate for the limited purpose of application exploration. Activities for City's team include; unit testing, investigating the results of the setup parameters and procedure documentation. K&K will work with the team after training to help reinforce the concepts. The City project team will also informally test the system for significant performance issues. This is being done early in the project, because if problems are encountered it will give the City ample time to address them with Lawson or Velocity (as opposed to waiting until the end of the project to do performance testing). Deliverables to the Project K&K Consultants Project Team Training Workbook CITY Complete Exercises (from Project Team training workbook) Optionally - Complete Quiz answers. Issue Forms Setup Parameter Documentation Informal Performance Testing City Attorney Approved Version #05.06.08 20 2.3 - Build Setup Parameters Upon completion of training and application exploration, the Project Team will begin defining how Lawson will work for the City. This is the primary design component of the project. In this step, the Project Team actually constructs the basic system structure, defines master files and identifies user-defined fields. Lawson typically provides a number of options for getting to a specific end; this step includes an exploration of those options and decisions on deployment. Objective: The goal is to get to the full functionality desired in the most simple means possible. Where processes can be streamlined, they will be streamlined. Where more complex processes are required to better deal with specific issues, these processes will be delivered. Deliverables to the Project K&K Consultants Module Configuration and Build (i.e., all Lawson modules are configured and ready for unit testing in the conference room pilot) CITY Definition of Business Rules (to allow K&K to configure the system) Security Configuration & Build (via Velocity) 2.4 - Script preparation for conference room pilot The team writes the CRP scripts now. K&K consultants will provide sample scripts for generic functions, but the scripts that are of most value will be those defined by the City which reflect the specific challenges which their operating environment presents. The difficult and odd-ball scenarios are the ones that will best test the setup. Objective: The scripts should be written in enough detail so that when all have been successfully executed there should be confidence in the setup and a significant amount of knowledge transfer to the core team. This is both a system test and an important training event. The bulk of the time invested here will be the clients, and the client has the primary responsibility for the scripts creation. The scripts are an outline of the steps they would do to complete a business procedure. Procedures like producing a check or gathering the data to enter and verify a batch. The basis for the scripts will be the decisions made and documented during the Business Procedure Review. Scripts can also be utilized as the basis for a Procedure Manual. City Attorney Approved Version #05.06.08 21 Deliverables to the Project K&K Sample scripts Application and Technical Consulting CITY Actual operating scenarios, especially those that have been problematic 2.5 - Review and clean-up legacy data The purpose of this activity is to ensure that duplicate and erroneous data is scrubbed, purged, and consolidated as appropriate prior to converting and loading into Lawson. Objective: Live data will be incorporated into the conference room pilot. Data clean- up can be a very big endeavor, depending on the client. Good work on the front-end will preclude a lot of reworking of conversion processes. Because the City knows and owns the data, ultimately the client must bear the responsibility to ensure that it is accurate. Deliverables to the Project K&K Project Planning Consulting MS Add-in instruction & examples to facilitate data review via Excel CITY Significant time and effort to get legacy data into a pristine condition 2.6 - Process flow, dashboards & report development This activity will result in the design, development and delivery of the City-specific functionality available through the Lawson Business Intelligence Suite. The process builds on a 1/2 day scoping session, the 5 standard Lawson Process Flows, and the development of 2 dashboards, 3 custom Crystal reports (one of which would be CalPERS), and 10 Process Flows/Smart Notes (and trade- offs/substitutions may be identified). Objective: Process flows or Smart Notes as appropriate will be developed to automate new hire, termination, and personnel action processes. Role- specific dashboards will be delivered to provide custom views of the Lawson environment. Crystal reports will be written to supplement the hundreds of standard out-of-the-box Lawson reports. Deliverables to the Project K&K City Attorney Approved Version #05.06.08 22 Half day scoping session for LBI & Process Flow overview and exploration Design specifications Draft and work-in-process checks Final LBI & Process Flow output Custom Crystal Reports (new CalPERS report and 2 additional ones to be identified by the City) Configured W-2 Forms (using standard Lawson functionality) CITY Sample reports Custom Crystal Reports (outside of those developed by K&K) 3.1 - Data Conversion and Interfaces As part of the Business Needs Analysis, conversions and interfaces will have been identified and resources assigned to complete them. It is generally desirable to complete them sooner rather than later in the project. If not completed prior to System Testing, this will be the time when they must be ready for testing. Lawson provides interface programs for a number of data areas. K&K will provide assistance in mapping, preparing and testing the required programs. And while K&K can assist in data validation, the data ultimately is that of the City and the City must take responsibility for the accuracy of same. The following interfaces will be provided: • Payroll and Benefits will submit withholding payments as appropriate for levies, CalPERS (based on the new reporting and interfacing requirements), Savings Bonds, Deferred Compensation, BBS, and United Way. • HRIS to IFAS (bi-directional) • HRIS to data warehouse (standard LBI deliverable) • Active Directory (bi-directional) • Payroll to General Ledger (bi-directional) • Cybershift time entry to Payroll • Payroll preparation interfaced to IFAS to check general ledger and project budgets (which exist in IFAS) and ensure that budgets are adequate to cover the general ledger and/or project expenses as prepared; this must also come with a trial posting capability to review any IFAS budget exceptions prior to posting the Lawson payroll as final to the IFAS general ledger and the project ledger; once the budget review is complete (including making the necessary changes to the CyberShift and Lawson employee timecards to avoid general ledger and/or project budget overages and rerunning payroll), post the revised payroll as final to the IFAS City Attorney Approved Version #05.06.08 23 general ledger and project ledger; exception reporting will be provided. • Direct Deposit/EFT Interface to the City's Bank Deliverables to the Project K&K Assistance with data conversion Legacy data mapped to Lawson applications Lawson Data Extraction Processing/Interface Configuration/Development CITY Data conversion Legacy data identified, provided in an acceptable format (Excel preferred) Data cleansing completed Expertise regarding all legacy applications 3.2 - Conference Room Pilot Testing The conference room pilot enhances the Project Team's understanding of Lawson applications. The goal is to assure that the planned implementation effectively addresses City's business issues and validates decisions made on set up and procedures in a hands-on environment. The CRP is performed using a small controlled set of data. K&K will lead the City staff through the execution of the conference room pilot. The CRP will also include running a payroll for at least 50 employees. As the last step in the CRP, a reasonable amount of performance testing will be conducted by the City for the Lawson system. This will include 10 to 12 users entering repeated transactions, running reports, etc., and monitoring system response times. Conducting the performance tests will be a City and Velocity responsibility. Objective: The objective is to use the Lawson Software applications after training and application exploration and initial data conversion is complete in order to enhance understanding, verify assumptions made concerning functionality, fit, enhancements, interfaces and business practices. After the training is completed, the Project Team prepares test scripts to perform during the CRP. The tests will use a small controlled set of data that is representative of normal processing. The Project Team then conducts the CRP to evaluate progress, address issues that have arisen and review plans and schedules. During the Conference Room Pilot, issues will arise. Unexpected results can occur and sometimes a new script will be required. It is important to City Attorney Approved Version #05.06.08 24 document the issues on the Issue Log as they are identified. The Issue Log will include the name of the resource assigned to find a resolution and a targeted date for completion for items identified during implementation and post implementation. During the Conference Room Pilot there will undoubtedly be issues surface that require a change in the system setup to remedy. Such changes will be made contemporaneously and all affected scripts rerun in order to get to desired results. This can be a very iterative process. At the completion of the Conference Room Pilot, the Project Team is prepared with responsibilities, policies, procedures, task lists, decisions to be made, issues to be resolved, and interfaces, enhancements, or modifications needed to take the applications into production. CRP cannot take the place of training, but it should greatly accelerate and enhance the learning process. This should not be the first time the Project Team has signed onto the system. Involvement of all the members of the project is crucial. Deliverables to the Project K&K CRP Workbook Consulting Sample scripts and assistance with creating custom scripts Maintain issues log CITY CRP Scripts, including difficult actual scenarios Issue Forms Updates to Procedure Manuals Perform the CRP testing Performance Testing 3.3 -Review Reports, Train Ad Hoc Reporting The CRP will produce results that can be analyzed with the standard Lawson reports most of which can be run in a variety of ways depending on the selection criteria used. Where standard reports don't seem to measure up to the requirement, ad hoc reporting with the MS Add-ins will be explored, and failing this, custom Crystal reports can be developed. Deliverables to the Project K&K Consulting Standard report and assistance with creating ad hoc reports CITY City Attorney Approved Version #05.06.08 25 Legacy reports selected by the City Issue descriptions 4.1 - System Test This is the final test of the whole system (including conversions, interfaces and modifications) prior to the final cut-over to production and will be considered an acceptance test. The parallel processing of payroll shall serve as the system and acceptance test. Objective: It is now "show time" and this is the final opportunity to determine if any show stoppers exist. Several earlier steps in the methodology have included testing such as application exploration and CRP. Now is the time to put it all together: conversions, interfaces, and volume. This also serves as an opportunity to review the hardware, database, operating systems and security. (Note: Security testing, depending on the desired level of security, identification and setup of security will have already been completed.) Another objective of the system test is to get acceptance of the new system from management, the Project Team and end users. For this reason, some, if not all of the end users are brought into the project for the System Test. K&K will develop system test plans. It will consist of two components: • Parallel Testing - Parallel testing will be utilized for both HR and payroll; two parallel tests will be completed. A parallel test is defined as including all employees from a recent City payroll and usage of all Lawson and CyberShift system components as they are planned for in production (i.e., timecards, time badges, employee self-service, personnel actions, direct deposit/EFT interface, creation of the CalPERS interface, etc.). That is, all data for the parallel tests should be entered into the system using the standard screens of Lawson and CyberShift, and not methods to simulate portions of the test. • CRP Test Scripts - The CRP test scripts will be rerun again using City staff outside of the core project team. Deliverables to the Project: K&K Test Plan Problem resolution facilitation Consulting CITY Test execution for two HR and payroll parallel tests. City Attorney Approved Version #05.06.08 26 Test execution of the CRP test scripts. Updates to Issue Log 5.1 - End User Training The people using the new system must be trained on the system and any related procedures before go-live. It is expected that the City's personnel will be able to lead this training, having been trained by K&K, under a train-the-trainer methodology. Training for this functionality can generally be completed in an hour or two for fairly large groups. Objective: The objective of this step is to train the users so they are capable of performing their job responsibilities using Lawson applications. It is human nature to resist change. The resistance and stress can be minimized by providing project updates to the user base early and often. Upper management must communicate the need and value proposition for putting in a new system prior to the start of training. Deliverables to the Project: K&K Sample Training Materials from Past Projects Instructor support CITY Training Plan Training Materials (tailored to the City's environment) User Guides (tailored to the City's environment) Instructors Trained End Users 5.2 - Final Data Conversion and Clean-up Prior to live processing the final round of data conversion will be completed. Reports will be run from Lawson and verified against corresponding reports from the legacy systems. Objective: This step must be completed successfully before live processing can begin. This will ensure that the Lawson system will continue from the exact place that the legacy system end. Deliverables to the Project K&K Assistance with data conversion CITY Data conversion City Attorney Approved Version #05.06.08 27 Legacy data identified, provided in an acceptable format (Excel preferred) Data cleansing completed 5.3 - Readiness Assessment The readiness assessment takes place several weeks prior to the scheduled go-live date. The purpose is to review the implementation plan and verify all tasks are complete. Objective: This step includes a meeting, but like the other activities in the methodology, more tasks are involved. The meeting is held prior to go- live to identify and prioritize incomplete tasks, review end-user feedback and ensure acceptance of the system. At this time a decision must be made to go into production as scheduled or consider a delay. If the decision is to move forward, then a second objective is to develop and/or complete the cutover plan. Other activities associated with this phase are final conversions, completion of open issues and communication to all vendors and customers of the impending changes. Some of the technical activities that will need to be validated include: activating security, developing a system backup schedule, and finalizing the disaster recovery plan. Deliverables to the Project: K&K Meeting Facilitation Readiness Assessment Inputs to Completed Implementation Plan (aka Cutover Plan, including transition to Lawson Global Support) Inputs to Contingency Plan CITY Completed Implementation Plan (with input from K&K, CyberShift and Velocity) Contingency Plan 5.4 - Production - Go Live This is the completion of the tasks to go-live. Objective: Production (go-live) is the execution of a series of procedures, not just a single event. In other words, 'live' is not the day after the readiness meeting when everyone decided to go live. The Production activities are dependent on satisfactory parallel payroll runs. The status of 'going into production' lasts until the users perform all their jobs confidently and efficiently. City Attorney Approved Version #05.06.08 28 3/ Deliverables to the Project: K&K Consultants Help-desk CITY Live Function System Executed Implementation Plan (aka Cutover Plan) 6.1 - Post Implementation Support, Audit/Review K&K consultants will typically stay on-site for 6 weeks after go-live in order to support the first full month of live processing and the completion of month-end reporting and closing procedures. After the new system has been up and running for several months, it is time to measure the success of the implementation and identify subsequent projects. This review can be scheduled anywhere from 2 to 6 months after go-live date. It is not uncommon to defer tasks into order to meet dates; this is the time to address them again. Objective: This step provides closure for the implementation. The Post Implementation Audit/Review is used to identify any features and procedures that were deferred to meet deadlines. The City then measures the benefits and costs of developing a plan to implement them. When the Audit/Review occurs (two to six months after go-live), K&K works with the Project Team to judge the quality of the implementation. The system Audit/Review will: • Review procedures for additional improvements • Identify any operational problems (software, people, policies) • Highlight the benefits of the project. City's Management will review: • Comparison of planned costs to actual (time and money) • Determine if the planned savings have been realized • Determine what % of their overall objectives have been met Deliverables to the Project: K&K Post Implementation Review and support On-site support Consultants' findings CITY City Attorney Approved Version #05.06.08 29 Running the new system with an open mind and with an understanding that processes that initially seem difficult will become second nature over time Payments Time will be billed as accrued with net 30 day terms, with the City holding back 10% of each invoice until completion of the respective project milestones (milestones are identified by roman numerals, below). The City will sign off on the milestone completions to trigger payment of the holdback. Time may be moved from milestone to milestone, but at no time should the City's total milestone payments exceed the total budgeted for the milestones completed. Travel will be billed as accrued and will comply with the City's published policy. DAYS PRICE I. Planning Phase $23,940 Kick Off Meeting 0.63 Review Current State / Future State; Define & 15.00 Document "To-Be" Details Outline conversion and interface plan 1.00 II. System Design & Initial Set-up $67,680 Classroom Training 11.00 Application Exploration & Setup Design 8.00 Build setup parameters in Test environment 24.00 Script Preparation & Guidance 4.00 III. Process Flows, Smart Notes & Report Development $31,680 Process Flows, Smart Notes & Report Development 22.00 IV. Conversions, Interfaces, Security $84,320 Review and clean-up legacy data 3.00 Convert and validate data 10.00 Develop Interfaces 10.00 Final Conversion and Data Clean-up 5.00 Security Configuration & Validation 10.25 V. Conference Room Pilot $20,160 Test HR and payroll scripts 10.00 Review Reports, Assist with Ad Hoc reporting 4.00 VI. Go-Live Activities $34,560 User Acceptance and Integration Testing 1.00 End User Training 3.00 Readiness Assessment - Parallel Processing 20.00 Live Processing City Attorney Approved Version #05.06.08 30 VII. Post Live Support Issue Resolution, Quality Assurance 20.00 $43,200 Closing and Reporting 10.00 TOTAL SERVICES $305,540 ESTIMATED TRAVEL* $ 46,262 TOTAL $351,802 * Actual travel costs will be billed City Attorney Approved Version #05.06.08 31 34-