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Matrix Consulting Group Ltd; 2023-05-25; PSA23-2190FLT
PSA23-2190FLT City Attorney Approved Version 12/28/2022 1 AGREEMENT FOR FLEET LEASE/PURCHASE ANALYSIS SERVICES MATRIX CONSULTING GROUP THIS AGREEMENT is made and entered into as of the ______________ day of _________________________, 2023, by and between the City of Carlsbad, California, a municipal corporation ("City") and Matrix Consulting Group, Ltd., a California corporation ("Contractor"). RECITALS A. City requires the professional services of a consultant that is experienced in fleet management consulting. B. Contractor has the necessary experience in providing professional services and advice related to fleet management consulting. C. 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 (1) year from the date first above written. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term shall not exceed thirty-three thousand dollars ($33,000). 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 until City has accepted the work and/or Services 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 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 May 25th PSA23-2190FLT City Attorney Approved Version 12/28/2022 2 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. 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 attorney’s 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-:VII"; OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 PSA23-2190FLT City Attorney Approved Version 12/28/2022 3 10.1 Coverage and Limits. Contractor will maintain the types of coverage and minimum limits indicated below, unless the Risk Manager 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. The full limits available to the named insured shall also be available and applicable to the City as an additional insured. 10.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an “occurrence” basis, including personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 10.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage. 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 Commercial General Liability which shall provide primary coverage to the City. 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. DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 PSA23-2190FLT City Attorney Approved Version 12/28/2022 4 10.5 Submission of Insurance Policies. City reserves the right to require, at any time, 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 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 notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For City For Contractor Name Bradley Northup Name Richard Brady Title Supertinendent Title Project Manager Department Public Works Address 1650 S. Amphlett Blvd, Suite 213 City of Carlsbad San Mateo, CA 94402 Address 2480 Impala Dr. Phone No. 650-858-0507 Carlsbad, CA 92010 Email rbrady@matrixcg.net Phone No. 442-339-2192 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 Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report investments or interests in all categories. Yes No DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 □ PSA23-2190FLT City Attorney Approved Version 12/28/2022 5 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 whose services are 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 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. City may terminate this Agreement by tendering thirty (30) days written notice to Contractor. Contractor may terminate this Agreement by tendering thirty (30) days written notice to City. In the event of termination of this Agreement by either party 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. DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 PSA23-2190FLT City Attorney Approved Version 12/28/2022 6 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. JURISDICTION 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 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 nor 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. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. /// /// /// /// DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 PSA23-2190FLT City Attorney Approved Version 12/28/2022 7 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 CITY OF CARLSBAD, a municipal corporation of the State of California MATRIX CONSULTING GROUP, a California corporation By: By: (sign here) Paz Gomez, Deputy City Manager, Public Works, as authorized by the City Manager Richard P. Brady, President (print name/title) By: (sign here) Courtney Ramos, Secretary (print name/title) 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 Group B Chairman, Secretary, President, or Assistant Secretary, Vice-President 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: CINDIE K. McMAHON, City Attorney BY: _____________________________ Deputy City Attorney DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 PSA23-2190FLT City Attorney Approved Version 12/28/2022 8 EXHIBIT “A” SCOPE OF SERVICES See attached proposal dated April 22, 2023. DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 Proposal for Fleet Consulting Services CARLSBAD, CALIFORNIA April 22, 2023 PSA23-2190FLT Exhibit "A" DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 matrix m consulting group Table of Contents Letter of Transmittal 1 Project Understanding 1 2 Statement of Work 2 3 Firm Experience and Qualifications 8 4 Project Cost 11 1 PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 1650 S. Amphlett Blvd., Suite 213 • San Mateo, CA 94402 • 650.858.0507 SF Bay Area (Headquarters), Boston, Charlotte, Dallas, Irvine, Portland, St. Louis April 22, 2023 Bradley Northup Public Works Superintendent – Fleet Operations City of Carlsbad 2480 Impala Drive Carlsbad, CA 92010-7226 Dear Mr. Northup, We are pleased to provide this proposal to provide fleet consulting services for the City of Carlsbad. We are uniquely qualified for this assessment as we have performed similar work for dozens of government organizations in California and elsewhere around this country and in Canada. Our dedicated fleet consulting team is skilled, certified, and recognized as premier government fleet experts. You spoke with Katherine Vigneau, CAFM, who heads our fleet management practice, and she will manage this project. With more than 30 years of experience in the industry, she is a recognized consultant, columnist, speaker, and trainer on a wide range of fleet topics. Our proposed team has experience with financial management, staffing, replacement planning and best practice reviews of fleet and local government organizations generally. We pride ourselves as being objective evaluators who will always put the interests of our client first. We understand that this is a significant investment for the City, and we appreciate this opportunity to work with you. Please do not hesitate to contact me at rbrady@matrixcg.net or by phone at (650) 858- 0507. Matrix Consulting Group President PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 matrix m consulting group ■ ■ Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 1 1.Project Understanding The City of Carlsbad is seeking the services of an experienced fleet management consulting team to work with city staff to identify options to reduce their capital and operating costs. The city has a mixed municipal mixed fleet of 450 units. They have reliable data provided by the Assetworks FA System, but do not currently have telematics. The fleet is maintained by six mechanics (including one Lead) from a central facility with eight bays (two light duty and six heavy duty). The shop is close to capacity. Maintenance and repairs are performed by city employees. Where appropriate some work will be sent to an outside vendor depending on the need for specialized training, special certifications, or where high shop workloads would prohibit a vehicle from returning to active service within a reasonable amount of time. An internal staffing review showed maintenance staffing to be short by approximately one Full-Time Equivalent (FTE). Fleet is funded through an Internal Service Fund (ISF) for vehicle replacement and operations. Users pay a vehicle rental rate that covers these costs. The replacement fund has a healthy balance. Accident repairs are funded through the operating budget. Current challenges include fleet electrification efforts, rising inflation in the vehicle and equipment market and keeping up with increased maintenance demands. The city has determined that it would like to hire a consulting team who can provide a cost/benefit analysis associated with alternatives to their existing vehicle acquisition model or direct purchasing. Specific questions the city would like answered include: 1.Is leasing a portion of the fleet a cost-effective option? 2.Can a managed leasing option result in efficiencies? a.For what portions of the fleet? b.Will this assist in faster electrification deployments? 3.What level of outsourcing is the most efficient and cost effective? 4.What types of outsourced work provide the greatest cost benefit to the City? 5.What impacts to costs and maintenance can the City expect if it chooses to defer vehicle replacements? The next section of this proposal describes our approach for evaluating these issues. PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 I Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 2 2.Statement of Work This section of our proposal outlines our general principles and presents the proposed task plan for assisting the City with their needs. 1.General Study Approach We believe that several aspects of our study approach should be mentioned and stressed. (1)Project Management One critical success factor in conducting a project of this size and complexity in an efficient, timely, and effective manner is project management. Matrix Consulting Group’s approach ensures that efficiencies are achieved in the gathering and analysis of information, disruption to the day-to-day operations of the City are minimized, and later tasks build upon the results of earlier ones so that backtracking and redundant work effort (and unnecessary costs) are avoided. (2)Information Gathering We collect information through a combination of three methods. First, we will give you an excel checklist of the information we need to perform this review. It will contain items such as a fleet inventory list and maintenance and replacement budgets. Next, we collect further information during interviews with stakeholders. Finally, we would conduct a site visit to increase our understanding of the organization and operational environment. 2.Work Plan We will conduct a detailed analysis of fleet operations to recommend alignment with industry best practices and cost efficiencies whilst maintaining or improving service standards. Task 1 Launch Project and Compile Fleet Profile (Status Quo) The project team will first assess and understand the current fleet profile which includes the inventory, staffing, policies, and facilities. We will compile a detailed inventory showing fleet size, composition, age, and current outsourcing and leasing practices. This task allows us to learn about the unique characteristics, programs, and services supported by the fleet and includes: •Request for Information (RFI). We will provide the city with a comprehensive RFI that details the data we will require to conduct the project. We will provide a PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 I Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 3 structured data collection template to ensure all required information is collected and to identify any items that are not readily available. We will concentrate on the last three complete fiscal years of cost and utilization data. An example of a RFI for a recent project appears below. Request for Information (RFI) Section # General Information Description Governance G-1 Organization's Strategic Plan G-2 Asset Management Policies and Plans G-3 Fleet policies and plans (maintenance, outsourcing, fuel, safety, etc.) Organization O-1 Organizational Chart for the entire organization O-2 List of fleet reps with names, positions, location and contact information Fleet Lifecycle and Replacement R-1 Fleet Asset Inventory Listing (see other tabs for format and instructions) R-2 Fleet Lifecycle policies (acquisition, remarketing, in-service utilization of assets) R-3 Fleet Lifecycle parameters by unit class (miles/hours, trips or other metrics used) Budget B-1 Fleet capital budget and expenditures by department (current and last 2 FY) B-2 Fleet operating budget (fuel and maintenance) and expenditures by department B-3 Outsourcing budget Information Management I-1 Description of the FIMS in use (models used if applicable) I-2 List of users/super-users on FIMS by module I-3 Description of responsibility and accountability for fleet information Maintenance M-1 List of facilities used for maintenance M-2 PM schedules M-3 Metrics on PM compliance and overdue •Kick-off. We will conduct a project kick-off meeting to review study objectives, approach, the work plan, interim deliverables, and schedule. •Facility Review. Once the project initiation meeting has been completed, we will conduct initial interviews with fleet program stakeholders to enhance our understanding of conditions on the ground. We will use our facility assessment tool to determine the capacity and limitations of the facility. •Consolidated inventory. Through data provided and initial interviews, we will establish the fleet inventory that will be the basis for future study. The inventory will contain unit and VIN numbers, make, model, year, purchase date, current odometer, anticipated mileage and capital, fuel, and insourced maintenance and outsourcing costs. A sample consolidated inventory by vehicle type and average mileage can be seen below: PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 4 Equipment Class Count Ave Mileage Sedan 5 27,283 SUV 32 40,528 Van 13 67,746 Pick-up 55 55,636 Truck MD 42 48,983 Truck Dump 13 45,351 Truck Service 8 18,126 Heavy Equipment 1 47,020 TOTAL 169 47,696 •Current status of maintenance operations. We will review the organization and job descriptions of staff as well as maintenance and outsourcing policies to understand the status quo. •Vehicle Equivalency Unit Analysis (VEU). We will use industry-accepted methodology to confirm if current staffing levels are adequate for the work required. We will calculate the number of hours typically required to maintain a fleet of the current size and composition and recommend maintenance staff required for various levels of outsourcing such as the example below where we determined that outsourcing 10% of the maintenance workload would mean that the organization needed 15.9 FTE mechanics. % Outsourced City FTE 10 15.9 15 15.0 20 14.2 25 13.3 30 12.4 35 11.5 40 10.6 •Project management and reporting framework. From project kick-off, a framework will be in place to ensure overall management of all aspects of the review. We will collaborate with the city to select a regular time for project update meetings and will provide a summary of progress and challenges. A draft profile will be submitted to allow the city to edit or add to the information collected. The final version of the fleet profile will show current practices and will be the baseline upon which all future deliverables are built. PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 5 TASK RESULT Current fleet profile report with a consolidated inventory, and sections on organization, responsibilities, budget, policies and outsourcing. Task 2 Identify Options for Leasing, Short Term Rental and Outsourcing As the City has specifically requested that external options be identified and compared, the project team will conduct interviews with internal stakeholders and industry representatives to identify the options available to augment the current capacity of the City’s fleet operation. We understand that certain restraints such as market availability may limit these options. Interviewees include: •Internal stakeholders will include department staff. •Industry representatives will include local maintenance facilities and fleet management companies. The project team will use the interviews to identify the potential options for further review. Typically, such options may include outsourcing a specific type of work to dedicate shop resources to areas where they are best suited, leasing a portion of the fleet from a Fleet Management Company (FMC), or some combination of these alternatives. At the City’s request one internal option, lengthening existing lifecycles, will be considered. TASK RESULT Outsourcing or leasing options for further review. Task 3 Conduct a Cost / Benefit Analysis In this task, we will assess financial and other costs and benefits of the status quo and each option identified in the previous task. This will lead to a recommended course of action that will address the needs of the City to reduce its capital and operating costs in the most efficient manner. The steps involved include: Step 1 – Define Decision Criteria We will identify and define the criteria that are important to the City in determining the best course of action. On a recent project involving an outsourcing decision, these included the following. PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 6 Factor Description Control City determines priorities of repair. Cost Containment Costs for services are managed and competitive. Safety Safety of workers and operators is prioritized. Service Interruption Change to service levels during transition to the new model. Accountability There are incentives or penalties for performance. Vehicle Availability Timely service and correct diagnosis Mechanic Skills Mech skills are tailored to their assignments. Right-type Equipment Equipment is correctly specified. Repair Quality Safe, reliable repairs with no comebacks. Customer Service Excellent communication with customers. Step 2 – Weight the Criteria Once the City agrees on the criteria to be used to make the outsourcing/leasing decision, these criteria will be weighted according to their relative importance. Step 3 – Assess the Options Each of the options (including Status Quo) will be assessed using the criteria and weights determined in the previous steps. A recent comparison looked like this: Status Quo A B Factor Description Weight Rank Score Rank Score Rank Score Control City determines priorities of repair. 5 1 5 2 10 3 15 Cost Containment Costs for services are managed and competitive. 5 1 5 3 15 2 10 Safety Safety of workers and operators is prioritized. 4 1 4 2 8 3 12 Service Interruption Change to service levels during transition to the new model. 4 3 12 3 12 1 4 The highest scoring options will be fully described along with all associated costs and benefits. PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 7 TASK RESULT Cost/Benefit Analysis with recommendation for the best option. Task 4 Compile the Final Report Upon the conclusion of the preceding tasks, we will prepare a detailed report which summarizes the results of each of the previous work tasks and clearly delineates the recommended changes and associated costs. This draft report will include a description of the study methodology and fleet profile. The report will be structured as follows: •Executive Summary •Introduction •Option Description •Cost/Benefit Analysis •Recommendation Summary and Implementation Plan •Appendices Once the draft report is complete, we will submit it to the City Project Lead and work with them to clarify any questions. Once the report is checked for factual accuracy and comments returned to our project team, we will make the necessary edits and produce a final version. We will provide e-copies of the final report, and all attachments to the City Project Lead. We will also provide a presentation summarizing the project results. TASK RESULT Draft and Final Reports in the format shown. 3.Schedule We can complete the project within 12 weeks subject to the availability of data and timely review of draft deliverables by the City. PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 8 3.Firm Experience and Qualifications This section of our proposal will provide an overview of the firm, our experience, and the proposed project team for this engagement. 1.Introduction to the Firm The Matrix Consulting Group is an international management consulting firm, based in California, which is focused on assisting government organizations improve the quality and cost-effectiveness of their programs and services. In the 20 years since the firm was founded, we have conducted over 1,500 studies. We have a dedicated fleet team that is comprised of individuals with experience as fleet managers and as fleet consultants. We have conducted over 300 fleet studies and many of these involved tasks similar to the work requested by the City. In addition, our Project Manager has worked with NAFA Fleet Management Association for 20 years and has shaped their education and certification programs in all functional areas of fleet management including fleet outsourcing, RFP development, vehicle acquisition, policy development, emergency preparedness, maintenance and repair, replacement planning, sustainability, and information technology. The following table shows a sample of the clients for whom we have conducted fleet assessments. The types of fleet assessments conducted include outsourcing studies, fleet best practice reviews, benchmarking comparisons, policy writing, vehicle equivalency unit analysis, optimum lifecycle calculations, replacement planning and sustainability conversions. PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 I Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 9 Project Year Scope University of Lethbridge 2022 Policy Development Miami Beach, FL 2022 Utilization, Staffing and Pool Management Elsinore Valley Water District 2022 Replacement Planning and Electrification Mount Pleasant, SC 2022 Maintenance Outsourcing and RFP Preparation Issaquah, WA 2022 Outsourcing, Utilization, EV Conversion Simi Valley, CA 2022 Utilization, Best Practices, Maintenance Staffing Spokane, WA 2022 Best Practices, THV Review and Benchmarking Minnesota DOT, MN 2022 Benchmarking, Utilization and Electrification Long Beach, CA 2022 Best Practices, Outsourcing and Utilization Hydro Ottawa, ON 2022 Best Practices, Utilization, Staffing Santa Barbara, CA 2022 Cost Recovery, Policies and Utilization Beaufort/Jasper WSA, SC 2021 Best Practices, Cost Recovery and Utilization Cal Water, CA 2021 Best Practices, Safety Program Policy Review Denton, TX 2021 Phase II – Outsourcing and Electrification Greeley, CO 2021 Best Practices, Organizational Structure and FMIS Vaughan, ON 2021 Best Practices, Benchmarking and FMIS Wood Buffalo, AB 2021 Outsourcing, Utilization and Policies Bexar County, TX 2020 Fleet Operations Review, Utilization Garland, TX 2020 Fleet Operations Review, Utilization NAFA DOT Guide 2020 DOT Guide Development Nebraska DOT, NE (Sub) 2020 Utilization, Replacement Planning Santa Clara, CA 2020 Fleet Operations, Utilization and Electrification Watsonville, CA 2020 Utilization, ISF Policy Alaska Railroad, AK 2019 Fleet Operations Review, Utilization Bloomington, MN 2019 Best Practices, Fleet Operations Review BREC, LA 2019 Asset Management and Maintenance Review Denton, TX 2019 Best Practices Fleet Operations Review Phase I Forsyth County, GA 2019 Best Practices Fleet Operations Review Kirkland, WA 2019 Cost Recovery and Rates System Littleton, CO 2019 Fleet Replacement Plan Trent Lakes, ON 2019 Fleet Operations Review, Utilization Watsonville, CA 2019 Best Practices Fleet Operations Review Phase I Wichita, KS 2019 Best Practices, ISF and Rates development PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 10 2.Project Team We propose a highly experienced project team with significant fleet management and consulting experience. The consultants proposed are certified professionals through NAFA Fleet Management Association. The following table provides brief biographies for our proposed project team. Katherine Vigneau, CAFM, heads the fleet management practice and has more than 30 years of experience as a fleet manager and fleet management consultant. Kate is a nationally recognized expert in fleet best practices. She spent 27 years in the Canadian Army, where she provided management oversight for fleet policies and best practices of a fleet of 32,000 vehicles. She has spent more than ten years as the Director of Professional Development for NAFA, responsible for their education and certification programs. Her recent fleet projects include Cal Water (CA), Issaquah (WA), Long Beach (CA), Clear Roads, Spokane (WA), Simi Valley (CA), Vaughan (ON), and Wood Buffalo (AB). Kate will serve as the Project Manager. David Branch is a Manager with the Matrix Consulting Group. Prior to joining the Matrix Consulting Group, he completed internships with the City of Riverside, CA Planning Division and the public policy department of the Los Angeles Chamber of Commerce. He received his BS in Public Policy, Management, and Planning from USC and his Master of Education from University of Missouri St. Louis. He is located in our Irvine, CA office. During his time with the firm, he has worked as a fleet analyst on numerous fleet projects including Ogden (UT), Watsonville (CA), Garland (TX), Forsyth County (GA), Los Angeles County (CA), Long Beach (CA), Issaquah (WA), Simi Valley (CA) and Anderson County (SC). David will be a fleet analyst. Tim Coxwell, CAFM is an experienced fleet manager and is new to Matrix Consulting Group. In his career he has worked for third-party service providers such as Goodyear, and Genuine Parts NAPA and later managed a Sheriff’s fleet of 576 vehicles. He has extensive maintenance and shop experience as an ASE Certified Master Automotive Technician, Service Consultant, and Parts Specialist and has completed the FSA Co-operative Purchasing Program Bid Evaluations. Tim is a speaker and trainer at industry events such as NAFA and Florida Sheriff’s Association. He is also an accomplished author and contributor to NAFA’s education reference guides including the Department of Transportation Guide and the Information Management Guide. Tim has worked as a fleet analyst for Miami Beach (FL) and Spokane (WA). Tim will be a fleet analyst. PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 Proposal for Fleet Consulting Carlsbad, CA Matrix Consulting Group 11 4.Project Cost The fixed price for this contract is $33,000 which includes one site visit. We are flexible in adjusting the program deliverables and timetable to better accommodate your budget and needs. Role Project Mgr Fleet Analyst Tech Analyst Title Director Sr Mgr Mgr Total Fees Rate $200 $185 $150 1. Fleet Profile 12 0 28 $6,600 2. Identify Options 16 16 16 $8,560 3. Cost/Benefit Analysis 16 24 24 $11,240 4. Final Report 8 0 16 $4,000 Total Hours 52 40 84 335 Cost for Hours $10,400 $7,400 $12,600 $30,400 Travel Expenses $2,600 Total Project Cost $33,000 Should the City wish to pursue additional work/tasks, we will respect the rates offered for a period of 12 months from the date of this proposal. PSA23-2190FLT Exhibit "A" (cont.) DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 I DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 MATRICON2 ACORD™ CERTIFICATE OF LIABILITY INSURANCE I DATE (MM/DD/YYYY) 5/17/2023 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s). PRODUCER 2~~I~cT Chelsea Grell USI Insurance Services, LLC r1JgNJ5'o, Ext): 858 477-9201 I rffc , Nol: 610 537-2283 4730 La Jolla Drive, Ste 310 ~ttJ~ss: chelsea.grell@usi.com San Diego, CA 92122 INSURER(S) AFFORDING COVERAGE NAIC# INSURER A : Sentinel Insurance Company Ltd. 11000 INSURED INSURER B : Hartford Accident & Indemnity Company 22357 Matrix Consulting Group, Ltd INSURER c : Twin City Fire Insurance Company 29459 1650 S Amphlett Blvd, Ste 213 INSURER D : San Mateo, CA 94402-1234 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR INSR WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) A X COMMERCIAL GENERAL LIABILITY 59SBARO0849 08/08/2022 08/08/2023 EACH OCCURRENCE $2,000,000 f--D CLAIMS-MADE ~ OCCUR f--8~~bffiH ?E~~~6tir~ence l $1,000,000 MED EXP (Any one person) f-- $10,000 PERSONAL & ADV INJURY $2,000,000 f-- GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $4,000,000 Fl lx1 PRO-n LOC $4,000,000 POLICY _ JECT PRODUCTS -COMP/OP AGG OTHER: $ A AUTOMOBILE LIABILITY 59SBARO0849 08/08/2022 08/08/2023 COMBINED SINGLE LIMIT $2,000,000 /Ea accident\ f-- ANY AUTO BODILY INJURY (Per person) $ f---OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accident) $ -HIRED NON-OWNED PROPERTY DAMAGE X AUTOS ONLY X AUTOS ONLY /Per accident\ $ - $ A X UMBRELLA LIAB ~ OCCUR 59SBARO0849 08/08/2022 08/08/2023 EACH OCCURRENCE $3 000 000 f-- EXCESS LIAB CLAIMS-MADE AGGREGATE $3 000 000 DED I X I RETENTION $10 000 $ B WORKERS COMPENSATION 59WECAB6S04 08/08/2022 08/08/2023 X IPER I IOTH- AND EMPLOYERS' LIABILITY STATUTE ER Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE[y] E.L. EACH ACCIDENT $1,000,000 OFFICER/MEMBER EXCLUDED? y N/A (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $1,000,000 If yes, describe under E.L. DISEASE - POLICY LIMIT $1,000,000 DESCRIPTION OF OPERATIONS below C Professional Liab 59PG0297372 08/08/2022 08/08/2023 $2,000,000/$3,000,000 $10,000 ded/each claim DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) General Liability, including completed operations, and Auto Liability include an automatic Additional Insured endorsement that provides Additional Insured status to the Certificate Holder, only when there is a written contract or written agreement between the named insured and the certificate holder and with regard to work performed by or on behalf of the named insured. General Liability, Auto Liability and Workers (See Attached Descriptions) CERTIFICATE HOLDER CANCELLATION City of Carlsbad/CMWD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 1200 Carlsbad Village Drive ACCORDANCE WITH THE POLICY PROVISIONS. Carlsbad,CA 92008 AUTHORIZED REPRESENTATIVE I ~ i':::,-7~ ---© l9E8-2015 ACORD CORPORATION. All ri hts reserved. g ACORD 25 (2016/03) 1 of 2 The ACORD name and logo are registered marks of ACORD #S40094244/M40093639 SAJZP DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 ? DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12 DocuSign Envelope ID: 99211319-807E-4184-AA30-64429CBD0B12