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HomeMy WebLinkAbout2023-10-17; City Council; ; Professional Services Master Agreements for Information Technology Services with Avero Advisors, ClientFirst Technology Consulting, and Public Consulting GroupCA Review: JRT Meeting Date: Oct. 17, 2023 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Maria Callander, Director of Information Technology maria.callander@carlsbadca.gov, 442-339-2454 Subject: Professional Services Master Agreements for Information Technology Services with Avero Advisors, ClientFirst Technology Consulting, and Public Consulting Group Districts: All Recommended Actions 1.Adopt a resolution authorizing the City Manager to execute a professional services master agreement for information technology project management and change management services with Avero Advisors, LLC for an amount not to exceed $1,500,000 for a five-year period. 2.Adopt a resolution authorizing the City Manager to execute a professional services master agreement for information technology project management and change management services with ClientFirst Technology Consulting, LLC for an amount not to exceed $1,500,000 for a five-year period. 3.Adopt a resolution authorizing the City Manager to execute a professional services master agreement for information technology project management and change management services with Public Consulting Group, LLC for an amount not to exceed $1,500,000 for a five-year period. Executive Summary The city will be implementing numerous information technology related projects over the course of the next five years to carry out the priority technological projects listed in the city’s Strategic Digital Technology Investment Plan. These projects include upgrading established software, implementing new software and selecting software to consolidate the city’s core administrative systems into a single solution.1 The city will need to have consultants available to help staff manage and complete these complex and interrelated information technology projects. 1 The specific projects listed in the Stratgegic Plan are Core System Consolidation, expansion of the Digital Information Network and implementing an enterprise asset management system, as well as developing new tools for citywide project management. Oct. 17, 2023 Item #2 Page 1 of 79 Staff are seeking the City Council’s approval of master service agreements with three consultants qualified to provide these services. These agreements establish the basic terms and conditions under which the city may call upon these consultants for any needed work. They require the City Council’s approval under Carlsbad Municipal Code Section 3.28.060 - Procurement of Professional Services and Services because the services have the potential to cost the city more than $100,000 per agreement year. With the City Council’s approval, staff would then give the firms task orders for individual projects. That work would be paid for from the funding from each individual project appropriated through the annual budget process or approved separately by the City Council. Explanation & Analysis The city will be replacing or upgrading many of our technology systems over the next five years as part of an ongoing effort to maintain up-to-date, secure and effective digital platforms. The number of related projects and their projected timelines make it necessary to use consultants to augment the department’s three full-time project managers. The Information Technology Department needs project and change management professionals with experience in completing upgrades and new software implementations to continue its progress in carrying out the city’s planned investments in technology. The city published a request for qualifications for information technology project management and change management technology and services on Sept. 21, 2022. This request was intended to provide a short list of qualified firms with the ability and capacity to assist the city with for its information technology projects on an as-needed basis, as individual task arise. The request included two categories of services: • Project management professional services • Change management professional services2 Eleven applicants submitted statements of qualifications in the categories by the Oct. 31, 2022, deadline. A selection committee comprised of city staff members reviewed and ranked the companies using the following criteria: • Ability to meet challenges and carry out required project and change management • Case studies of the services provided for one or two other city or government customers • The cost and value of the proposed work • Additional benefits beyond the defined challenges and needs 2 Change management is a systematic approach to managing the transition or transformation of an organization's technologies and helping people to adapt. Oct. 17, 2023 Item #2 Page 2 of 79 Based on the selection committee’s rankings, and consistent with municipal code Section 3.28.060, staff now recommend the city execute master service agreements with these selected firms: Firm name Annual amount (not to exceed) Five-year term Avero Advisors $300,000 $1,500,000 ClientFirst Consulting $300,000 $1,500,000 Public Consulting Group $300,000 $1,500,000 The City Council approved similar agreements with ClientFirst Technology Consulting and PCG in 2019. These agreements are now coming to an end. The 2019 agreements were for an initial three years with possible one-year extensions. These prior agreements had a possible total of $5,400,000. Of the $5,400,000 available, just under $990,000 was awarded for various projects through task orders issued by the city. The Information Technology Department has found the firms to be very useful partners who have helped the city to move forward with technology projects in a timelier manner. The new agreements would replace the agreements approved in 2019 and add an additional firm to the pool as a new option. Each project and change management agreement will have an initial five-year term. Staff will assign the firms task orders for specific projects on an as-needed basis, with the funding to come from the funding for each individual project. Fiscal Analysis The three master agreements for information technology project management and change management services are for a five-year period each. The maximum compensation under the agreements will be $300,000 per contract year for a total of $1,500,000 over five years for each agreement. Funding for each task order will be provided by the associated information technology project as appropriated by the adoption of the annual budget process or as approved separately by the City Council. Next Steps With the City Council’s approval, staff will execute master service agreements with Avero Advisors, ClientFirst Technology Consulting, and Public Consulting Group. Environmental Evaluation This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. Exhibits 1. City Council resolution - Agreement with Avero Advisors 2. City Council resolution - Agreement with ClientFirst Technology Consultants 3. City Council resolution - Agreement with Public Consulting Group Oct. 17, 2023 Item #2 Page 3 of 79 RESOLUTION NO. 2023-260 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES MASTER AGREEMENT FOR INFORMATION TECHNOLOGY PROJECT MANAGEMENT AND CHANGE MANAGEMENT SERVICES WITH AVERO ADVISORS, LLC FOR AN AMOUNT NOT TO EXCEED $1,500,000 FOR A FIVE-YEAR PERIOD WHEREAS, the City Council of the City of Carlsbad, California has determined that having available project management and change management consultants for professional services that facilitate the timely completion of information technology projects is needed; and WHEREAS, the Information Technology Department solicited, received, and reviewed Statements of Qualifications {SOQs) for professional services consistent with the Carlsbad Municipal Code Section 3.28.060; and WHEREAS, following a review and ranking of the SOQs based on a weighted scoring system staff recommends that Avero Advisors, LLC is qualified and provides the best value to the City of Carlsbad in the discipline of project management and change management; and WHEREAS, expenditures for the professional services are subject to availability of budget appropriations associated with information technology projects. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the City Council hereby authorizes the City Manager to execute the Professional Service Master Agreement with Avero Advisors, LLC in an amount not to exceed $1,500,000 over a five-year period (Attachment A). Exhibit 1 Oct. 17, 2023 Item #2 Page 4 of 79 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 17th day of October, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. KEITH BLACKBURN, Mayor SHERRY�erk � (SEAL) Oct. 17, 2023 Item #2 Page 5 of 79 OocuSign Envelope ID: 789O5089-859O-475A-8AC2-2452O2ACE653 MASTER AGREEMENT FOR PROJECT MANAGEMENT AND CHANGE MANAGEMENT SERVICES AVERO ADVISORS 1 ~ vt?l Attachment A THIS AGREEMENT is made and entered into as of the ______ day of @l ht.i {IV" , 2023, by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as "City", and Avero Advisors a limited liability company, hereinafter referred to as "Contractor." RECITALS A. City requires the professional services of an information technology consulting firm that is experienced in information technology project management and change management. B. The professional services are required on a non-exclusive, project-by-project basis. C. Contractor has the necessary experience in providing professional services and advice related to information technology project management and change management. 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. To the extent any of the terms in any exhibit to this Agreement conflict, in whole or part, with the terms of this Agreement, the terms of this Agreement shall prevail. Contractor's obligations with respect to any project granted to Contractor under this Agreement will be as specified in the Task Description for the project (see paragraph 5 below). 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 five (5) years from the date first above written. 4. PROGRESS AND COMPLETION The work for any project granted to Contractor pursuant to this Agreement will begin within ten (10) days after receipt of notification to proceed by City and be completed within the time specified in the Task Description for the project (see paragraph 5 below). Extensions of time for a specific Task Description may be granted if requested by Contractor and agreed to in writing by the City Manager or the Division Director as authorized by the City Manager ("Director"). The City City Attorney Approved Version 6/12/18 Oct. 17, 2023 Item #2 Page 6 of 79 2 City Attorney Approved Version 6/12/18 Manager or Director will give allowance for documented and substantiated unforeseeable and unavoidable delays not caused by a lack of foresight on the part of Contractor, or delays caused by City inaction or other agencies' lack of timely action. In no event shall a specific Task Description exceed the term of this Agreement. 5.COMPENSATION The cumulative total for all projects allowed pursuant to this Agreement will not exceed three hundred thousand dollars ($300,000) per Agreement year. If the City elects to extend the Agreement, the amount shall not exceed five hundred thousand dollars ($300,000) per Agreement year. The total amount of the Agreement shall not exceed one million five hundred thousand dollars ($1,500,000) for the initial five-year term. Fees will be paid on a project-by-project basis and will be based on Contractor’s Schedule of Rates specified in Exhibit “A”. Prior to initiation of any project work by Contractor, City shall prepare a Project Task Description and Fee Allotment (the "Task Description") which, upon signature by Contractor and for City, the City Manager or Director, will be considered a part of this Agreement. The Task Description will include a detailed scope of services for the particular project being considered and a statement of Contractor's fee to complete the project in accordance with the specified scope of services. The Task Description will also include a description of the method of payment and will be based upon an hourly rate, percentage of project complete, completion of specific project tasks or a combination thereof. 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. DocuSign Envelope ID: 7B9D50B9-B59D-475A-8AC2-2452D2ACE653 Oct. 17, 2023 Item #2 Page 7 of 79 3 City Attorney Approved Version 6/12/18 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 attorneys fees arising out of the performance of the work described herein caused by any willful misconduct or negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. 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. 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless 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. DocuSign Envelope ID: 7B9D50B9-B59D-475A-8AC2-2452D2ACE653 Oct. 17, 2023 Item #2 Page 8 of 79 4 City Attorney Approved Version 6/12/18 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. 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 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. DocuSign Envelope ID: 7B9D50B9-B59D-475A-8AC2-2452D2ACE653 Oct. 17, 2023 Item #2 Page 9 of 79 5 City Attorney Approved Version 6/12/18 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 are: For City: For Contractor: Name Maria Callander Name Abhijit Verekar Title IT Director Title CEO Dept Information Technology Address 512 W. Broadway Ave. Maryville, TN 37801 Address 1635 Faraday Ave Phone 440.991.6628 Carlsbad, CA 92008 Email av@averoadvisors.com Phone 760.602.2454 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 as required in the City of Carlsbad Conflict of Interest Code. Yes No If yes, list the contact information below for all individuals required to file: Name Email Phone Number 17.GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations whichin 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. DocuSign Envelope ID: 7B9D50B9-B59D-475A-8AC2-2452D2ACE653 Oct. 17, 2023 Item #2 Page 10 of 79 □ 18.DISCRIMINATION AND HARASSMENT PROHIBITEDContractor 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 theparties. 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 representativereceiving 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 letteroutlining the disputes will be forwarded to the City Manager. The City Manager will consider the factsand 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 nothingin this procedure will prohibit the parties from seeking remedies available to them at law. 20.TERMINATIONIn 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 Citydecides 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 progressto City at the 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 whichis 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 Contractorhas 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 priceor 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. Contractoracknowledges 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 penaltiespursuant 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 DocuSign Envelope ID: 7B9D50B9-B59D-475A-8AC2-2452D2ACE653 Oct. 17, 2023 Item #2 Page 11 of 79 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 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: 7B9D50B9-B59D-475A-8AC2-2452D2ACE653 Oct. 17, 2023 Item #2 Page 12 of 79 DocuSign Envelope ID: 789D5089-859D-475A-8AC2-2452D2ACE653 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. Executed by Contractor this_l _l t_h ___ day of octobe r , 2023. CONTRACTOR CIT ARLSBAD, a municipal f he State of California By: By: (sign here) Abhijit Verekar CEO By: (print name/title) ATTEST: (sign here) City Clerk (print name/title) 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. CITY OF CARLSBAD, a municipal corporation of the State of California APPROVED AS TO FORM: CINDIE MCMAHON, City Attorney BY: .~~-Th& Deputy City Attorney Oct. 17, 2023 Item #2 Page 13 of 79 Oct. 17, 2023 Item #2 Page 14 of 79 DocuSign Envelope ID: 7B9O50B9-B59O-475A-8AC2-2452O2ACE653 EXHIBIT "A" SCOPE OF SERVICES Contractor agrees to provide the following services, as needed by the City and as defined and agreed to on individual task orders: 1) Project management: Within the city's existing project management framework, assist the city w ith future projects and initiatives with project management related tasks such as: • Assessments to identify business, functional and technical requirements • Assisting in developing, issuing, and evaluating request for proposals • Business process mapping and improvement • Providing additional project management staff to augment the city's existing IT project management team 2) Change Management: Assist the city on large projects to ensure that the city is intentional in its efforts to prepare the organization for a change, the transition through the change is as smooth as possible and staff have the training and tools necessary to leverage the benefits of the project including: • Providing change management tools and processes that facilitate citywide communication, knowledge, and the ability for stakeholders to successfully adopt and maintain change related to city projects and initiatives • Providing customized on-demand training materials for business processes and information systems that can be loaded on the city's training platform (Carlsbad Learn) to support the ongoing training needs for existing and future staff Contractor will only be compensated for services once a task order is agreed upon by both Contractor and the City. There will be no compensation for Contractor in advance of a task order, including any time needed to draft a proposed scope of work for the specific task order. City Standards: The city's standard tool for project management is SmartSheet. The city's standard tool for project collaboration (file sharing, virtual project meetings, etc.) is Microsoft Teams. Statement of Cost Services Project Team Role Hourly Rate Project Executive $250 Director of Advisory Services $225 Senior Manager $225 Project Manager $200 Business Analyst $175 Oct. 17, 2023 Item #2 Page 15 of 79 DocuSign Envelope ID: 7B9O50B9-B59O-475A-8AC2-2452O2ACE653 Contractor Methodology/Project Approach Project Management Services: SOLUTION SELECTION ENVIRONMENT-FOCUSED CURRENT-STATE BUSINESS PROCESS MAPPING Avero will develop Business Process Modeling Notation (BPMN) diagrams detailing a roadmap of existing business processes based on documentation & feedback gathered from the City's relevant stakeholders. Avero will assess end-to-end processes to identify strengths & weaknesses in the current business process practices & processes. This current-state process mapping activity will help uncover hidden flaws within the current software and outline a roadmap of what the City envisions to enhance operational efficiency and mitigate existing limitations. In this step, Avero will: • Map daily activities to business processes across the City's systems • Diagram and document workflows • Identify processes that are particularly challenging for staff • Identify inefficiencies, such as bottlenecks or duplications • Identify missing key business activities & essential controls • Determine undefined or poorly defined process ownership responsibilities • Identify insufficient or ineffective performance indicators • Identify structural inefficiencies • Defi ne inefficient access to data and determine the condition of existing data Avero will validate the current-state workflow diagrams with the City's project sponsors before moving forward . FUTURE-STATE BUSINESS PROCESS MAPPING Avero will develop optimized future-state workflow diagrams in BPMN format for business processes across the City's departments that will reflect the "wish list" improvements gathered during the Future-State Visioning project activity. Avero's Project Team will also focus on eliminating bottlenecks, duplicated efforts, manual activities, in-house workarounds, and potential legal & compliance risks within the City's software environment. We will apply our technical knowledge & skills to ensure that the optimized business processes harness the functional capacity of workflow automation offered by modernized software solutions. Furthermore, Avero will map crucial integration points spanning processes & departments to accurately depict data integration between systems. Avero will validate the future-state workflow diagrams with the City's project sponsors before moving forward. NEEDS ASSESSMENT Avero will assess the inherent gaps found between the City's current software environment & the City's ideal software environment by using key findings gathered during Oct. 17, 2023 Item #2 Page 16 of 79 DocuSign Envelope ID: 7B9O50B9-B59O-475A-8AC2-2452O2ACE653 previous project activities. Our team will focus on bottlenecks, redundant efforts, end-user concerns & needs, manual activities, regulatory requirements, and associated dataflows between the existing software system & related software applications. Based on findings collected from our knowledge base of industry best practices & conventional expertise in similar engagements, Avero will make develop a thorough Needs Assessment, including key recommendations from our Project Team to address modernization opportunities & tackle the various challenges present in the current software environment. The new software solution must support efficient business processes across all departments and maximize collaboration , information sharing, and smart utilization of technology. REQUIREMENTS TRACEABILITY MATRIX Avero will conduct a series of Requirements Development Workshops with the City's relevant stakeholders to define the future solution's functional requirements. The business process maps & Needs Assessment will guide this effort, along with any additional "wish list" items that may add value to the desired software's functionality. Avero will work closely with the City's key project stakeholders to ensure that our discussions from the workshops are properly documented and that all functional requirements of the City's relevant stakeholders are noted. Our team will develop a Requirements Traceability Matrix specific to the City's functional requirements for the prospective solution based on information gathered by our team . Avero w ill ensure the matrix is built in a logical manner, broken down by functional area (i.e., each department will have a dedicated space detailing its ow n requirements). By applying industry best practices & our experience modernizing other government organizations' technology environments, our Project Team w ill develop a comprehensive list of critical requirements. Avero will subsequently coordinate a review session with the City's project sponsors to validate, fi nalize, and approve the Requirements Traceability Matrix. RFP DEVELOPMENT & SOLICITATION Avero w ill conduct the fol lowing activities to prepare for the solicitation of a new solution: • Identify critical staff across the City's departments for the Evaluation Committee • Develop a draft RFP document • Defi ne a set of evaluation criteria that meets the req uirements outlined in the pending RFP • Conduct review session(s) with the City's Evaluation Committee for the draft RFP document & evaluation criteria • Revise the RFP document & evaluation criteria as needed, based on feedback from the review session(s) w ith the City's Evaluation Committee • Hold a final review of the RFP document & evaluation criteria with the Oct. 17, 2023 Item #2 Page 17 of 79 DocuSign Envelope ID: 7B9O50B9-B59O-475A-8AC2-2452O2ACE653 City's Evaluation Committee for finalization & approval • Collaborate with the City's procurement agent to release the RFP for response solicitation Avero will work with the City's Evaluation Committee to plan and coordinate any pre- proposal conference meetings, Q&A sessions, and/or site visits that are needed while the RFP is open. Our team w ill either stay onsite or be available remotely to help facilitate discussions and answer any questions about the information published in the RFP. We will review all vendor questions and coordinate with the Evaluation Committee to develop draft responses. Upon completing the draft responses to vendor questions, Avero will share the answers with the City's project sponsors for review & validation. Our team will make any changes that the City deems necessary before finalizing and releasing the responses for publication. PROPOSAL ANALYSIS Avero will analyze the proposals received from vendors in response to the City's RFP for a new solution and appropriately equip the City's Selection Committee with scoring tools that w ill enable evaluators to appropriately assess the vendors' responses. We will develop a thorough Vendor Evaluation Sheet for the City's Selection Committee that includes a written analysis of the vendor proposals received. We will analyze vendors' provisions for warranty & maintenance of their software, assist the Selection Committee in scoring and ranking each vendor, and provide our recommendations for the top vendors that will best meet the City's objectives. The Vendor Evaluation Sheet will incorporate the scoring & ranking done by the Selection Committee, as well as provide a synopsis of the group scoring & the potential benefits & shortcomings of each vendor. We will include potential risks & issues related to the vendor, as well estimated costs of implementation & post-implementation support, for each vendor. Our Project Team will also develop a Vendor Requirements Evaluation Summary that captures how capable each software vendor is in meeting the City's documented requirements. Based on our discussions with the City's Selection Committee & project sponsors, our team will add the top software vendors to the Vendor Shortlist. The vendors on the Vendor Shortlist will be included for the system demos & reference checks. SYSTEM DEMOS & REFERENCE CHECKS Avero, along with the City's Selection Committee, will schedule demonstrations for vendors included on the Vendor Shortlist. Our team will manage the interview & demonstration process (e.g., supplying demo scripts, scheduling demos, and facilitating demos). We will document and distribute demo meeting agendas & scripts to the City's Selection Committee for an overview prior to the demos. These demonstrations from vendors will enable the Selection Committee to receive hands-on, real-time demonstrations of solutions and will help the Selection Committee perceive each solution’s functionalities & workflow capacities, as well as each vendors’ work ethic & culture, to ensure that core values of the City & the vendor are strategically aligned. Additionally, Avèro will develop a reference check template to support vendor selection for all the vendors on the Vendor Shortlist. We will assist the City’s Selection Committee in scheduling and conducting reference calls with vendors’ system clients on behalf of the City & the proposed vendors. We will make sure to follow up on references to help the Selection Committee gain insight on the implementation process. Avèro will gather feedback from the City’s Selection Committee on the system demos & reference checks and further discuss the findings of the Vendor Evaluation Sheet & Vendor Requirements Evaluation Summary with the Selection Committee. Our Project Team will then obtain official approval on vendor selection. CONTRACT NEGOTIATIONS Avèro will develop the vendor’s Statement of Work, including third-party interfaces once a vendor has been officially chosen. We will work with the City’s project sponsors to develop a performance-based contract in which milestones are paid for when they’re accomplished. Avèro will assist with the presentation for the selection & award of the chosen vendor. If desired by the City, Avèro will lead the negotiation on their behalf for best value and work with the chosen vendor to develop a “Best and Final Offer” to secure final pricing, which will result in a final contract. Feedback from the City & the vendor will be incorporated into the final agreement document, which will also be reviewed & validated by them. Our team will also assist the City’s project sponsors with the preparation of any documentation as needed. Please note that Avèro will perform the project activities for Service #2: Project Management (Process-Focused) & for Service #3: Change Management (People- Focused) simultaneously, rather than consecutively. DocuSign Envelope ID: 7B9D50B9-B59D-475A-8AC2-2452D2ACE653 Oct. 17, 2023 Item #2 Page 18 of 79 Oct. 17, 2023 Item #2 Page 19 of 79 DocuSign Envelope ID: 7B9O50B9-B59O-475A-8AC2-2452O2ACE653 Project Management Services: PROJECT MANAGEMENT PROCESS-FOCUSED RISK MITIGATION Avero will develop the following two documents and maintain them throughout the length of the project in order to monitor, communicate, and troubleshoot potential project risks: • Risk Register -which will include the stated risk, a technical description of it, the staff member who identified it (if applicable), the module where it was located (if applicable), and the date it was identified • Resolution Register -which will include the individual assigned to address the risk from the Risk Register, the priority of it, the resolution of it, the staff member responsible for facilitating the resolution , and the date of resolution As risks are assessed & resolutions are considered throughout the project duration, we will suggest customizations (and note the related budgetary impact, timeline impact, and stakeholder impact) to the project, as well as carefully review any project customizations suggested by either the City or the vendor. VENDOR COLLABORATION Avero w ill work w ith the City & the selected vendor to ensure project quality standard compliance via quality assurance (QA) & quality control (QC). We will develop and embed a set of QA/QC processes to ensure project deliverables meet the City's established requirements. We will monitor the vendor's compliance with the negotiated contract and seek to resolve any issues with the vendor's performance. Furthermore, our team will meet regularly with the vendor to communicate budget & timeline expectations and ensure the project is meeting these expectations. We will keep track of the vendor's documentation regarding system configuration, system integration, system testing, and system maintenance, as well as the vendor's documentation regarding system support for both the present & future. We will assist the City & the selected vendor in finalizing and documenting project roles & responsibilities. DEVELOPMENT OF PROJECT DOCUMENTS Avero will collaborate with the City's project sponsors, including the IT Project Manager, IT Enterprise Applications Manager, and/or other department managers, to develop the following plans to utilize during the project: • Communications Plan -w hich will include the type of communication, the group who will be communicated with, the purpose of the communication, the frequency of the communication, and the method of communication • Stakeholder Engagement Plan -which w ill outline the steps for keeping stakeholders engaged & informed throughout the implementation of the Oct. 17, 2023 Item #2 Page 20 of 79 DocuSign Envelope ID: 7B9O50B9-B59O-475A-8AC2-2452O2ACE653 new solution • Training Plan -which will include the training approach, format, participant groupings, and schedule for end-user training o Including training materials to address both current & future trainings to assist current end-users & future end-users (i.e., new staff when hired) understand the functionalities of the new system o Including user manuals, which will detail specific instructions for how employees will complete tasks in the new system OVERSIGHT OF SYSTEM CONFIGURATION & INTEGRATION Avero will coordinate with the City & the selected vendor to ensure workflows are properly configured across all modules with in the new system. This activity will ensure that the optimized business processes are aligned with the functional capacity of the newly- implemented system to maximize efficiency across the City. Our team will also work with the City & the selected vendor to ensure that all required current systems in place at the City are properly integrated with the new system. This activity will ensure that all critical systems are integrated so that the City can benefit from streamlined functionalities configured in the software system. OVERSIGHT OF DATA CONVERSION, MIGRATION, & VALIDATION Avero w ill assist the City & the selected vendor with the conversion, migration, and validation of the City's data that will be moved to the new system. We will analyze the condition of the City's existing data, as well as its existing data-related policies & procedures, in terms of best practices for operational data governance. The following activities will be conducted by our team as part of the data conversion, migration, and validation task: • Review the data & data types being converted and understand information, such as: o The amount, type, and quality of data o The original & target sources & formats o Any cross-reference complexities • Identify the criticality of the City's data and determine how the data conversion, migration, and validation will be performed, along w ith costs, schedules, tools, and any required staff involvement from the City & the vendor • Evaluate and identify City staff & vendor staff to perform the data conversion, migration, and validation based on their expertise & experience • Review any other planning considerations with the City's project sponsors, such as communication, education, data normalization, QA/QC, and data accuracy & completeness OVERSIGHT OF SYSTEM TESTING, USER ACCEPTANCE TESTING (UAT), & END-USER TESTING (EUT) Avèro will assist the City & the selected vendor with the testing of all system requirements in accordance with the contract that the City has with the vendor. This activity will ensure that the required system functionalities across all system modules are operable & that automated workflows are functioning correctly. Any system requirements that are not executable by the Avèro system testers will be documented and reported to the vendor for required system maintenance before UAT with City staff. Additionally, Avèro will coordinate with the City & the selected vendor to choose a group of stakeholders for UAT across the City’s departments to test all system requirements, across all system modules, in accordance with the City’s contract with the vendor. By project managing UAT, Avèro will monitor the user experience that involves the execution of key system functionalities, general system navigation, and automated workflows. Any system requirements that are not executable by the system testing team designated to UAT will be documented and reported to the vendor for required system maintenance before completion of UAT with City staff. Our team will also provide guidance on change management so that the system implementation will be handled most appropriately across the City. Avèro will also work with the City & the selected vendor to provide interactive EUT in a format that best meets the training needs of the City’s end-user community. By project managing EUT, Avèro will ensure that power users receive the training required to develop the operational knowledge base needed to act as the software system “point people” in their respective departments. Avèro will also collaborate with the vendor & power users to facilitate subsequent training sessions to review system navigation, key functionalities, and workflow execution within the new software system. GO-LIVE SUPPORT & POST GO-LIVE SUPPORT Avèro will coordinate with the City & the selected vendor to provide onsite or virtual support during the Go-Live event for each module of the new software system and address any identified project risks. By project managing Go-Live, Avèro will serve as the support liaison between the City & the vendor. Avèro will document any problems that the City staff experience related to system functionality, navigation, workflow execution, or integration and then manage the resolution of all documented issues with the vendor. In addition, Avèro will work with the City & the selected vendor to provide onsite or virtual support during the Post Go-Live period. By project managing Post Go-Live, Avèro will continue to act as a support liaison between the City & the vendor. Avèro will continue to document any issues that City staff experience related to system functionality, navigation, workflow execution, or integration for a period following the Go-Live event. Our team will manage the resolution of all documented issues with the vendor. Furthermore, we will authorize system acceptance for the project closeout. DocuSign Envelope ID: 7B9D50B9-B59D-475A-8AC2-2452D2ACE653 Oct. 17, 2023 Item #2 Page 21 of 79 Oct. 17, 2023 Item #2 Page 22 of 79 DocuSign Envelope ID: 7B9O50B9-B59O-475A-8AC2-2452O2ACE653 CHANGE MANGEMENT SERVICES: CHANGE MANAGEMENT CHANGE MANAGEMENT PLANNING Avero will develop a thorough Change Management Plan, which w ill outline key elements of what City staff can expect from the solution implementation process. Specifically, the Change Management Plan will outline the processes necessary to appropriately prepare the City staff who will be using the new system for the changes ahead, set appropriate expectations for these users, and describe how our team will monitor & manage any resistance identified from these users. The Change Management Plan will also serve as a guide for the various City department managers who will be guiding their staff through the implementation of the new solution. IMPLEMENTATION PLANNING Avero will develop a comprehensive Implementation Plan to outline each phase of the solution implementation so that the City's project sponsors, including the IT Project Manager, IT Enterprise Applications Manager, and/or other department managers, will have a solid understanding of what to expect. The plan will include estimated costs & timeframes, as well as necessary City staff resources, to implement the new solution properly. This detailed plan will consider how to balance the City staff members' current workloads with the workload demands that are connected with the implementation. STAFF PREPARATION Avero will assist w ith the training associated with the implementation of the new solution. Once the Training Plan has been developed, we will utilize it to prepare City staff for the system implementation & the relevant implications. Our team will assist with providing specific train ing to various staff levels, from entry-level employees to executive leaders. We will consistently monitor the user experience involving the execution of key system functionalities, general system navigation, and automated workflows. We will be available for City staff to share their feedback on which of their project-related expectations are not being met, and we will seek to find solutions to better prepare & advise them for the system implementation. RESOLUTION NO. 2023-261 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES MASTER AGREEMENT FOR INFORMATION TECHNOLOGY PROJECT MANAGEMENT AND CHANGE MANAGEMENT SERVICES WITH CLIENTFIRST TECHNOLOGY CONSULTING, LLC FOR AN AMOUNT NOT TO EXCEED $1,500,000 FOR A FIVE-YEAR PERIOD WHEREAS, the City Council of the City of Carlsbad, California has determined that having available project management and change management consultants for professional services that facilitate the timely completion of information technology projects is needed; and WHEREAS, the Information Technology Department solicited, received, and reviewed Statements of Qualifications (SOQs) for professional services consistent with the Carlsbad Municipal Code Section 3.28.060; and WHEREAS, following a review and ranking of the SOQs based on a weighted scoring system staff recommends that ClientFirst Technology Consulting, LLC is qualified and provides the best value to the City of Carlsbad in the discipline of project management and change management; and WHEREAS, expenditures for the professional services are subject to availability of budget appropriations associated with information technology projects. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the City Council hereby authorizes the City Manager to execute the Professional •Service Master Agreement with ClientFirst Technology Consulting, LLC in an amount not to exceed $1,500,000 over a five-year period (Attachment A). Exhibit 2 Oct. 17, 2023 Item #2 Page 23 of 79 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 17th day of October, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. l KEITH BLACKBURN, Mayor SHERRY FREISINGER, City Clerk (SEAL) Oct. 17, 2023 Item #2 Page 24 of 79 DocuSign Envelope ID: 08EFBF40-395F-4056-8E71-ADBA2A823DC4 MASTERAGREEMENTFORPROJECTMANAGEMENTAND CHANGE MANAGEMENT SERVICES Attachment A CLIENTFIRST TECHNOLOGY CONSUL TING, LLC /,)._ THIS AGREEMENT is made and entered into as of the 1,,, 6 day of 0 Ct\> b :!N'.: , 2023, by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as "City", and ClientFirst Technology Consulting, LLC a limited liability company, hereinafter referred to as "Contractor." RECITALS A. City requires the professional services of an information technology consulting firm that is experienced in information technology project management and change management. B. The professional services are required on a non-exclusive, project-by-project basis. C. Contractor has the necessary experience in providing professional services and advice related to information technology project management and change management. 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. To the extent any of the terms in any exhibit to this Agreement conflict, in whole or part, with the terms of this Agreement, the terms of this Agreement shall prevail. Contractor's obligations with respect to any project granted to Contractor under this Agreement will be as specified in the Task Description for the project (see paragraph 5 below). 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 five (5) years from the date first above written. 4. PROGRESS AND COMPLETION The work for any project granted to Contractor pursuant to this Agreement will begin within ten (10) days after receipt of notification to proceed by City and be completed within the time specified in the Task Description for the project (see paragraph 5 below). Extensions of time for a specific Task Description may be granted if requested by Contractor and agreed to in writing by the City Manager or the Division Director as authorized by the City Manager ("Director"). The City City Attorney Approved Version 6/12/18 Oct. 17, 2023 Item #2 Page 25 of 79 2 City Attorney Approved Version 6/12/18 Manager or Director will give allowance for documented and substantiated unforeseeable and unavoidable delays not caused by a lack of foresight on the part of Contractor, or delays caused by City inaction or other agencies' lack of timely action. In no event shall a specific Task Description exceed the term of this Agreement. 5.COMPENSATION The cumulative total for all projects allowed pursuant to this Agreement will not exceed three hundred thousand dollars ($300,000) per Agreement year. The total amount of the Agreement shall not exceed one million five hundred thousand dollars ($1,500,000) for the five-year term. Fees will be paid on a project-by-project basis and will be based on Contractor’s Schedule of Rates specified in Exhibit “A”. Prior to initiation of any project work by Contractor, City shall prepare a Project Task Description and Fee Allotment (the "Task Description") which, upon signature by Contractor and for City, the City Manager or Director, will be considered a part of this Agreement. The Task Description will include a detailed scope of services for the particular project being considered and a statement of Contractor's fee to complete the project in accordance with the specified scope of services. The Task Description will also include a description of the method of payment and will be based upon an hourly rate, percentage of project complete, completion of specific project tasks or a combination thereof. 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. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 26 of 79 3 City Attorney Approved Version 6/12/18 8.OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. 9.OTHER PUBLIC AGENCY OPTION It is intended that any other public agency (i.e., city, district, public authority, public agency, municipal utility and other political subdivision or public corporation of California) located in the State of California shall have the option to participate in a similar services contract and/or purchases being offered in this Agreement under the same terms and conditions. CONSULTANT has the option to agree or disagree to such contracts and/or purchases on a case-by-case basis. CONSULTANT agrees to extend the same pricing, terms, and conditions as stated in this Agreement. The City shall incur no financial responsibility in connection with any contract and/or purchase by another public agency. The public agency shall accept sole responsibility for placing order or payments to the vendor. 10.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 willful misconduct or negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. 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. 11.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. 11.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless 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. 11.1.1 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 DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 27 of 79 4 City Attorney Approved Version 6/12/18 separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 11.1.2 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. 11.1.3 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. 11.1.4 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. 11.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 11.2.1 The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City. 11.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 11.2.3 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. 11.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 11.4 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. 11.5 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. 12.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. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 28 of 79 5 City Attorney Approved Version 6/12/18 13.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. 14.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. 15.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. 16.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 are: For City: For Contractor: Name Maria Callander Name David Krout Title IT Director Title Managing Partner Dept Information Technology Address 980 Montecito Drive, Suite 209 CITY OF CARLSBAD CORONA, CA 92879 Address 1635 Faraday Ave Phone 951-739-7989 Carlsbad, CA 92008 Email dkrout@clientfirstcg.com Phone 760.602.2454 Name Tom Jakobsen Title Managing Partner Address 980 Montecito Drive, Suite 209 CORONA, CA 92879 Phone 951-739-7989 Email tjakobsen@clientfirstcg.com 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. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 29 of 79 I I I I I I I ~ -===--------- -===-----I~-===----- 6 City Attorney Approved Version 6/12/18 17.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 as required in the City of Carlsbad Conflict of Interest Code. Yes No If yes, list the contact information below for all individuals required to file: Name Email Phone Number 18.GENERAL COMPLIANCE WITH LAWSContractor 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 performanceof 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 serviceswith 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. 19.DISCRIMINATION AND HARASSMENT PROHIBITEDContractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 20.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 agreementbetween the parties. Representatives of Contractor or City will reduce such questions, and theirrespective 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 bothparties. The representative receiving the letter will reply to the letter along with a recommendedmethod 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. TheCity 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 bindingupon the parties involved, although nothing in this procedure will prohibit the parties from seekingremedies available to them at law. 21.TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City mayterminate 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 contemplatedby this Agreement, City may terminate this Agreement upon written notice to Contractor. Uponnotification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City at the address contained in this Agreement. City will makea determination of fact based upon the work product delivered to City and of the percentage of DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 30 of 79 □ 7 City Attorney Approved Version 6/12/18 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. 22.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 considerationcontingent 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. 23.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 anticipationof 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 personknowingly 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 afalse 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. 24.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 other county. 25.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. 26.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 DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 31 of 79 DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 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. 27. 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: 04\AV ~t (sign here) DAVID KROUT Managing Partner (print name/title) By: 1~ (sign here) Tom Jakobsen senior Pa rtner (print name/title) ARLSBAD, a municipal n f h State of California ATTEST: ~ SHERRY FREISINGER City Clerk 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. CITY OF CARLSBAD, a municipal corporation of the State of California APPROVED AS TO FORM: CINDIE MCMAHON, City Attorney BY: ~W ~-Thµ., Deputy City Attorney Oct. 17, 2023 8 City Attorney Approved Version 6/12/18 Item #2 Page 32 of 79 9 City Attorney Approved Version 6/12/18 EXHIBIT “A” SCOPE OF SERVICES Contractor agrees to provide the following services, as needed by the City and as defined and agreed to on individual task orders: 1) Project management: Within the city’s existing project management framework, assist the city with future projects and initiatives with project management related tasks such as: Assessments to identify business, functional and technical requirements Assisting in developing, issuing, and evaluating request for proposals Business process mapping and improvement Providing additional project management staff to augment the city’s existing IT project management team 2) Change Management: Assist the city on large projects to ensure that the city is intentional in its efforts to prepare the organization for a change, the transition through the change is as smooth as possible and staff have the training and tools necessary to leverage the benefits of the project including: Providing change management tools and processes that facilitate citywide communication, knowledge, and the ability for stakeholders to successfully adopt and maintain change related to city projects and initiatives Providing customized on-demand training materials for business processes and information systems that can be loaded on the city’s training platform (Carlsbad Learn) to support the ongoing training needs for existing and future staff Contractor will only be compensated for services once a task order is agreed upon by both Contractor and the City. There will be no compensation for Contractor in advance of a task order, including any time needed to draft a proposed scope of work for the specific task order. City Standards: The city’s standard tool for project management is SmartSheet. The city’s standard tool for project collaboration (file sharing, virtual project meetings, etc.) is Microsoft Teams. Statement of Cost Services Professional fees and expenses are based on the scope and approach outlined in a task order. Standard billing rates for these types of services reflect the levels and skill sets of the consultant(s) assigned to specific aspects of the project. ClientFirst will limit annual hourly rates to not more than 3% per year. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 33 of 79 10 City Attorney Approved Version 6/12/18 Contractor Methodology/Project Approach Project Management Services We have extensive experience in assisting clients with project management and implementation for various information technology systems. To that end, we have developed the following methodology to assist the City with the implementation and project management for improved processes, application systems, infrastructure, communications, and cybersecurity. Depending on the specific individual project needs, our project management services can include: Assist the City in managing vendor work efforts Provide detailed design specifications where necessary Manage the change-order process and provide recommendations on specific change-order requests Identify project risks and develop risk-mitigation plans Maintain project schedules and action items and provide ongoing follow up Inspect vendor work efforts and manage vendor documentation and project close-out activities Supplement City staff as necessary to assist in on-schedule and on-budget project completion DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 34 of 79 Personnel David Krout Tom Jakobsen Jamie Shell Cindy Belcher Tatjana Meser Craig Williams Chad Griewahn Michael Redmond Janet Federioo Michael Truncale Cyndi Hoxie Tam Ly Aaron Ayala Pete Graziano John Lambert Toby Soto Thomas Weiman Marcia Struwing Staff Title Partner, Management Consulting Practice Leader Partner, IT Infrastructure and Operations Consulting Practice Leader Director. Enterprise Applications Consulting ns Consulting ons Consulting Director, Enterprise Applicatio Manager, Enterprise Applicati Director, Infrastructure Consu Director, Infrastructure Consu Manager, IT Infrastructure Co Management Consultant Senior Management Consulta Management Consultant Management Consultant Senior Consultant Senior Network Engineer Practice Leader !ting Services !ting Services nsulting nt Senior GIS Consultant Enterprise Communications C Senior Teleoommunications C onsulting Practice Leader onsultant - Hourly Rate $ 235 $235 $ 215 $ 215 $ 205 $ 215 $ 215 $ 215 $195 $195 $195 $185 $195 $195 $225 $195 $ 215 $195 11 City Attorney Approved Version 6/12/18 PROJECT MANAGEMENT METHODOLOGY ClientFirst will provide project management services to assist the City of Carlsbad with the successful implementation of technology projects. ClientFirst’s Project Management services utilize PMI industry best practices and follow a structured methodology to insure the successful completion of projects on time and within budget. Each of these project process groups, and potential activities and services provided are described below. Project Initiation Phase The initiation phase of a Project is an important step when formulating the business case and authorization to begin a project. For any typical technology project, this process begins with the development of a Project Charter and an assessment of the impacted groups (stakeholders). ClientFirst Project Management oversight begins with the development of a project charter to identify the following: Project definition and impacted stakeholders Identification of Project Sponsors and authority of Project Manager Preliminary scope and estimated timeline Business objectives and measurement matrix Once a City of Carlsbad project has been authorized and the initial Project Charter developed, the ClientFirst Project Manager will continue to work with City staff to develop the detailed components of the Project Management Plan during the Project Planning Phase. Project Planning Phase Knowledge Areas The planning phase of a project plays a critical role in its overall success. ClientFirst’s extensive project management experience with a variety of City technology projects will play a critical role to ensure that all the Project Management Plan components are addressed and accurately reflect the goals and objectives of the project. Each of these plan components will be skillfully laid out to account for the time, budget, and scope constraints identified during this planning phase. Below is a brief description of tasks/inputs for each of these knowledge areas. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 35 of 79 City Attorney Approved Version 6/12/18 Scope Management Plan A ClientFirst scope management plan begins with collecting details on the specific requirements that are needed to meet the project’s business objectives. Depending upon the specific project, this process usually begins with needs assessment activities, such as workshops, interviews, surveys, observations, to document the specific needs, organizational impacts, as well as resources that will be needed for the project. Time (Schedule) and Resource Management Plans Based on the scope of the project that has been identified, a baseline schedule is determined that considers the available resources and activities required to be completed. These plans require the following inputs to be identified during the planning process: Define specific activities/actions to be performed to meet deliverables Define sequencing of activities to be completed and identify interdependencies Estimate activity resources (quantity, duration, schedule availability) Develop baseline project schedule Risk Management Plan For significant projects, risks need to be identified early on to avoid major delays and budget overruns. The purpose of a risk management plan is to identify potential risks, assess the impact of the risk on the project and determine potential mitigation strategies to address each of the risks identified. Some risks have more substantial impacts on a project and require aggressive actions, while others are low impact risks that only require monitoring and awareness. The goal of the risk management plan is to be proactive in dealing with potential issues on the project and adjusting accordingly to the overall Project Management Plan. Cost Management Plan (Budget) Based on the initial scope and resource plans identified, a cost management plan will be identified for each project. There is a direct correlation between time, scope, and costs to every project. This is commonly referred to as the Project Manager’s Triple-Constraint Triangle. The idea being that an adjustment to one of these areas will have a positive/negative effect on the other elements within the constraint triangle. For example, if the project schedule needs to be extended, there will be a direct impact on the cost of the project. By doing a thorough analysis of requirements and project scope during the planning phase of the project, significant budget overruns can be avoided later in the project and/or can be accommodated within contingency plans identified as part of the project risk assessment. ClientFirst’s experience with similar technology projects will play a significant role in identifying costs and resources needed for these types of projects. Our expertise in navigating similar initiatives will help to identify potential costs and risks more accurately to further plan strategies to mitigation unforeseen problems or roadblocks on any City IT project. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 36 of 79 Budget/Cost Scope Time/Schedule 13 City Attorney Approved Version 6/12/18 Quality Assurance Plan A Quality Assurance plan and associated detailed test plans are not just nice to have, but rather an essential success factor for all project initiatives. As part of the overall Project Management Plan, a well-conceived Quality Assurance process needs to be identified and implemented to meet the business objectives for the project. Change Management Plan A Change Management Plan specifically addresses the methodology and approach needed to assist project participants manage the change of processes, tools, and organizational culture. Communication Plan The Communications Plan deals with the “people-side of change” and plays an integral part in the success of any project. As part of the overall Project Management responsibilities provided by ClientFirst to the City of Carlsbad, a realistic communications plan will be developed to keep all levels of participants/stakeholders informed about the project’s status, deliverables, and activities. Based on the initial stakeholder assessment completed as part of the Project initiation activities, a mutually agreeable communications plan will be developed for each project. The communication plan will identify the means, frequency, and audience of the various types of communication channels desired for the type of project initiated (e.g., bi-monthly status calls, monthly Executive Sponsor hi-level briefings (project dashboards), detailed action item lists, etc.) Execution / Monitoring and Controlling Project Phases Based on all the planning work completed during the initiation and planning phases of the projects, the execution phase focuses on deploying and executing each of the above discussed components of the Project Management Plan. These activities include the day-to-day deployment of activities and deliverables, in concert with the execution of the communications plan and stakeholder management plans. Depending on the type of project, the execution phase could also include the formal procurement process for selecting a vendor with the best fit to requirements identified early in the project. Throughout the execution phase of the Project, there will most likely be changes identified to scope, resources needed, project schedule, and potential costs. All these types of adjustments will be managed and addressed by the CLIENTFIRST Project Manager through a formal, agreed- upon change control process. The success/completion metrics established during the planning phase will also be used to monitor the health and progress of the projects. Project plan documents will be updated and maintained throughout the lifecycle of the project. Other types of project assistance include:  Executing the Quality Assurance plan  Third-Party Vendor Management – contract negotiations, Statement of Work review and development, resource scheduling, budget controls  Execution of communications plan DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 37 of 79 14 City Attorney Approved Version 6/12/18 Monitoring change management initiatives, including stakeholder training Monitoring project costs, deliverables, resources, schedules, and update plans accordingly Maintain and update Project Risk Management Plan as needed Coach, mentor, and motivate team members and contractors, and influence them to take positive action and accountability for their assigned work Providing escalation assistance to address critical issues before, during, and after they may arise to determine contingency/mitigation strategies Project Closure The final project process group is Project Closure. On any given project, there are always lessons to be learned and processes identified that could be improved that would benefit future initiatives. This final project phase is an opportunity to compile lessons learned, conduct a final project analysis against metrics established early on, as well as archive project documentation and supporting materials for future reference. Typical Project Management Scope and Work Steps This project will require coordination of City personnel, selected vendors, and the ClientFirst team. Following are the typical work steps for technology projects: 1.Project Management and Routine Planning Meetings The selected vendor will be required to provide a proposed implementation schedule. We will review the schedule and recommend modifications, as necessary. Project Planning Meetings – We will work with the City and the selected vendor to customize this plan to meet the City requirements and cause as little disruption as possible. The process will require discussions and planning meetings on the best method to convert, modify, and enhance existing infrastructure and associated services. Routine Project Meetings and Calls – We will conduct meetings with the equipment and telecom service vendors and maintain ongoing communications to ensure that the implementation of the system goes as smoothly as possible. Implementation Status – We will monitor the status of the equipment installation at various points during the project. We anticipate at least weekly meetings/conference calls throughout the implementation. Change Order Monitoring – Part of this process will be to monitor any change orders and proposed upgrades or modifications to the system design and configuration. Our work will also include routine meetings with the City regarding the status of the project and budget. 2.Project Management Duties – Ensuring that projects follow the City's long- term objectives We will work with the selected equipment vendor to design and implement the solution. Manage overall project scope and change control procedures for the City Provide recommended next steps and impact analysis when required Provide project oversight, guiding activities that meet City goals Identify critical due dates and deliverables Highlight risks and assist with mitigation as appropriate Maintain a high-level project plan DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 38 of 79 15 City Attorney Approved Version 6/12/18 Monitor the execution of change management plans Assist the City in identifying and developing communications plans Perform quality assurance checks and develop benchmarks to instill project integrity 3.Vendor Management – Saving money through best-practice vendor controls We will work with the selected vendors to coordinate the implementation of the new systems services and the conversion of the existing services. Assist the City in the definition of vendor scopes of work, or bills of materials Follow City procurement ordinances and policies and best practices Assist the City in procuring IT infrastructure equipment and services Assist the City in directing and coordinating vendor activities Review and validate vendor documentation Review vendor implementation work efforts and provide feedback to City Create punch lists and communicate with vendors as necessary Assist the City in determining payment schedules and timing 4.Implementation Assistance – Creating project momentum When necessary, we will assist City staff in key implementation tasks to maintain project momentum and prevent delays. Monitor project progress to completion Assist in the coordination of vendor implementation activities Assist in the execution of change management plans Develop communications for implementations Assist in the creation of policies and procedures in support of implementation activities Develop standard operating procedures and other documentation in support of vendor implementation activities Review and comment on vendor-provided documentation Implement phased payment methodology to ensure consistency of duties performed by vendor 5.Project Close-Out – Ensuring compliance with contract, legal, and code requirements Part of any project is “close-out,” which includes verifying all project requirements are met documentation, final vendor payments, and knowledge transfer. We will work with the City to validate final vendor service delivery steps and make sure that the City receives proper documentation and support to reduce ongoing costs. Assist in project close-out activities Finalize documentation and procedures Assist in vendor payment and quality assurance discussions DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 39 of 79 16 City Attorney Approved Version 6/12/18 Change Management Services When embarking on technology improvements that involve switching to a new system, change is inevitable. A structured change management methodology is critical to help staff from multiple departments come together and adopt new processes and embrace these changes. ClientFirst provides change management services in various scopes and approaches to fit the individual project needs, agency resources and budgets. We have developed the following philosophies and methodology to fit those needs. Background Change management is often thought of as being part of the project management process when selecting and implementing new technology within an organization. While both involve structured strategies and complement each other, there is a distinct difference between the two. Project management refers to the technical process of completing a project on time and on budget. Change management specifically has to do with helping people manage the change of processes, tools, and organizational culture. Understanding the scope and impact of a technology change to an organization’s culture and business processes is the starting point for developing an effective change management plan. Implementing a change management plan involves effectively communicating this vision to employees and receiving buy-in and acceptance of these changes. The successful implementation of change management strategies plays a significant role in the success of any project. Extensive research has been conducted on this topic which has consistently found that there is a direct correlation between projects being completed on time, on budget, and achieving identified objectives/benefits when a structured change management plan is implemented. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 40 of 79 Adequate Change Management Inadequate 0-1anga Management l'~rcenta5e of pr:Jccts that h,ve a:h,e'/ed the dem ed n!-:jP.r.tivP. 3co:l :han.~e M3nai:;ement Fxrrllent C:hr,ngP. Mnnr.g~rnP.nt ProjP.c:t ohjP.c:tivP.~ ilrP. morP. likely to be achieved when cho11ge rr1c1nc:1gcHrn:ml is P.ffP.~tivP.ly ,irrliP.rl. 17 City Attorney Approved Version 6/12/18 An organization can purchase a system that includes every imaginable feature and function. However, unless the employees understand (1) why processes will be changing, (2) the benefits of these changes, and 3) how the changes will impact the way they will do their jobs in the future, the benefit of new technology may never be realized and implemented. Worse yet, the project may end up costing more than anticipated and take years to implement. Common Misconceptions and Change Management Mistakes In today’s technology world, change is inevitable, and use is rapidly increasing. Consider the advances made in the last two decades alone. The Internet and cell phone technology have forever changed the way we access information and entertainment. Organizations that have a formal change management plan/strategy are better equipped to deal with the evolution of technology in today’s world. In order to adopt a successful change management strategy, these are some key considerations and common mistakes to consider. The software vendor is not responsible for your organization’s adoption of changes. Many organizations make the mistake of thinking that the software vendor is responsible for making the software work according to how the organization does business. Unless you have specifically identified in the contract and/or RFP, using detailed and specific language about the desired software behavior, the vendor’s system could perform in a different intended manner to fulfill the same requirement. Most of the public sector software implementation projects today involve configurable commercial off-the-shelf products. This means that with the exception of some configurable options, the software is not going to be customized and modified through development efforts without potential significant costs, if at all. Inevitably, this will require changes to business processes along the way. It is the organization’s responsibility to ascertain how these changes will impact how business is done and the best way to address these changes with staff. It is not the vendor’s responsibility to do this, however, it is a critical step in the process of having a successful project and adoption of the new system. Employees will not necessarily accept the new system on their own and do what they are told. Every employee responds to change differently. Some will embrace it, some will resist it, while others will retire before going through the change process. For example, in a military and law enforcement environment, there is a no-questions-asked mentality that works well in certain cases. However, failure to address the people side of change and consider the process each individual must go through to accept and embrace business process changes will only make the implementation more difficult. By establishing a structured change management plan involving all stakeholders throughout the process and communicating the goals and rewards of the change, a successful implementation is possible. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 41 of 79 18 City Attorney Approved Version 6/12/18 Proactively developing a change management plan from the project’s inception is the best strategy. It is never too late to develop a change management strategy/plan. However, it is more productive and less costly to be proactive from the start rather than waiting until the project is over budget and delayed. A change management plan should be developed at the inception of a project prior to evaluation, vendor selection, and beginning the implementation phase. It goes hand in hand with identifying project resources, how long it will take to implement the system (scheduling), identifying additional costs over time, and identifying tasks needed to be scheduled and completed as part of the process. In addition, by involving stakeholders early on in the process, it is more likely to facilitate early adoption of changes needed and ensure that requirements are adequately identified prior to selecting and implementing a new vendor. Executive Management needs to be involved in the details of the day-to-day activities of the implementation, not just escalations. One of the biggest misconceptions when implementing new technology is that executives and higher-level management are only responsible to secure the appropriate funding for a project and get involved during escalations, delegating lower-level decisions and tasks to the next management tier/level. It is extremely important for executives to remain active and visible throughout the duration of the project to communicate the organizational goals and objectives and show support in obtaining these goals. They must remain informed regularly as to the critical transformational changes that will be needed and be a part of continually communicating those objectives throughout the organization. Mid-level managers will also require executive-level support, because they will be the ones dealing with the individual direct report’s change process. Results of an Effective Change Management Strategy For the organization and project, the result of an effective change management plan will be savings of time, money, and resources. Research shows that the advantage of an effectively implemented change management plan will: Make the project six times more likely to achieve project goals Make the project five times more likely to be finished on or before the completion deadline Make the project two times more likely to stay on or below budget The impact of an effective change management plan also extends to the individual staff level. Some of these effects include: Employees adapt to change more quickly Employees are more motivated, productive, and efficient Employees feel included and engaged Employees understand why the change is taking place DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 42 of 79 19 City Attorney Approved Version 6/12/18 Basic Principles of an Effective Change Management Plan What is Enterprise Change Management? It is the systematic deployment of change management skills, tools, and processes throughout an organization with the following goals in mind: Improve the utilization of human capital Ensure all projects deliver people-dependent ROI Mitigate change saturation and its detrimental effects Instill organizational agility and the ability to respond to increasing amounts of change Create competitive advantage and be an innovation leader Change management is a critical component of organizational agility. As organizations tackle more change today than ever before, the ability to react quickly and efficiently is critical for success. For individual project applications, change management plans should be integrated with project management activities. It should be presented as a unified front for deploying change, rather than being an add-on or “nice to have” when time permits. Change management should be initiated when a new project or change is introduced, not well into the project lifecycle or during the implementation phase. By doing so, this allows for the creation of a common language for change so that people in roles across the organization share an understanding and dialect when discussing changes. Who Needs to be Involved in the Change Management Plan? The entire organization will be involved with the change management plan. However, each level will serve different roles in the adoption of change. While organizations differ, the following groups generally need to understand what change management is, know why it is important, and be able to develop their own competencies to effectively engage in change. Senior leaders (Change Managers) Project leaders and team members (Change Navigators) HR, training, and organizational development professionals (Change Navigators) Managers and supervisors (Change Agents) Front-line employees When an organization builds change capability, the individuals in that organization consider effectively managing change to be one of their job responsibilities. They understand their unique role and fulfill it when changes happen. On a project-by-project basis, a change management team will need to be established. These individuals will be responsible for conducting the change activities for the project, communications, and support of training, managing resistance, and adoption of the change. When is the time to Initiate a Change Management Plan? The sooner the better. In fact, innovative organizations are looking beyond project-by-project applications, developing enterprise-wide change management capabilities. DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 43 of 79 20 City Attorney Approved Version 6/12/18 What is a Change Management Plan? It is important to understand that organizational change occurs only when individual people adopt the change. Each person responds differently to change. There are many change management theories and methodologies. By following a structured process, such as the Prosci methodology, individual change management and organizational change management are uniquely integrated to ensure that business results are achieved. This methodology follows a three-phase process: Phase 1 – Preparing for change Phase 2 – Managing change Phase 3 – Reinforcing change Phase 1 – Preparing for Change The first phase provides the situational awareness that is critical for creating an effective Change Management Plan. By using proven tools and techniques, this phase will help provide insight into the scope, size, and impact of the change at hand. The key activities in this phase include in-depth assessments of staffing requirements, assessing the level of impact on the organization by functional areas as well as on individuals, and identifying potential challenges to mitigate resistance. Phase 2 – Managing Change The second phase of creating a Change Management Plan is to develop the strategy and action plan based upon the assessment findings in Phase 1. This plan will integrate and work hand in hand with the Master Project Plan. The components of this plan will articulate the steps that will be taken to support the individuals impacted by the project. There are five suggested components to this plan which include: Communications Plan Sponsor Roadmap Training Plan Coaching Plan Resistance Management Plan Implementation of these plans will be successful if the organization can achieve the following: Articulate and communicate a clear vision for the change as often as necessary Include and engage legacy system experts early in the process Communicate the risks of not changing Eliminate uncertainty through transparency Involve team members in the decision-making Provide a sounding board for employee’s concerns Create learning opportunities for the team/employees Celebrate small wins along the way DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 44 of 79 Business Need The People Side of Change Successful Change Concept& Design Implementation Post Implementation Phases of a Change Project City Attorney Approved Version 6/12/18 Phase 3 – Reinforcing Change It is not enough to implement the plans without really understanding if they are having a positive effect. Constant feedback and communication are needed to reinforce the change process and assess how individuals are progressing through the stages of adoption. The three critical activities during this phase include: Collecting and analyzing feedback Diagnosing gaps and managing resistance Implementing corrective actions and celebrating successes DocuSign Envelope ID: D8EFBF40-395F-4D56-8E71-ADBA2A823DC4 Oct. 17, 2023 Item #2 Page 45 of 79 ..... RESOLUTION NO. 2023-262 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES MASTER AGREEMENT FOR INFORMATION TECHNOLOGY PROJECT MANAGEMENT AND CHANGE MANAGEMENT SERVICES WITH PUBLIC CONSULTING GROUP, LLC FOR AN AMOUNT NOT TO EXCEED $1,500,000 FOR A FIVE-YEAR PERIOD WHEREAS, the City Council of the City of Carlsbad, California has determined that having available project management and change management consultants for professional services that facilitate the timely completion of information technology projects is needed; and WHEREAS, the Information Technology Department solicited, received, and reviewed Statements of Qualifications (SOQs) for professional services consistent with the Carlsbad Municipal Code Section 3.28.060; and WHEREAS, following a review and ranking of the SOQs based on a weighted scoring system staff recommends that Public Consulting Group, LLC is qualified and provides the best value to the City of Carlsbad in the discipline of project management and change management; and WHEREAS, expenditures for the professional services are subject to availability of budget appropriations associated with information technology projects. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the City Council hereby authorizes the City Manager to execute the Professional Service Master Agreement with Public Consulting Group, LLC in an amount not to exceed $1,500,000 over a five-year period (Attachment A). Exhibit 3 Oct. 17, 2023 Item #2 Page 46 of 79 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 17th day of October, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. KEITH BLACKBURN, Mayor SHERRY FREISINGER, City Clerk (SEAL) Oct. 17, 2023 Item #2 Page 47 of 79 DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E48772CA7F9 MASTERAGREEMENTFORPROJECTMANAGEMENTAND CHANGE MANAGEMENT SERVICES PUBLIC CONSUL TING GROUP, LLC Attachment A ,., ? vJ... THIS AGREEMENT is made and entered into as of the __ v_"---day of 0 l,'1'U bw I 2023, by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as "City", and Public Consulting Group, LLC a limited liability company, hereinafter referred to as "Contractor." RECITALS A. City requires the professional services of an information technology consulting firm that is experienced in information technology project management and change management. B. The professional services are required on a non-exclusive, project-by-project basis. C. Contractor has the necessary experience in providing professional services and advice related to information technology project management and change management. 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. To the extent any of the terms in any exhibit to this Agreement conflict, in whole or part, with the terms of this Agreement, the terms of this Agreement shall prevai l. Contractor's obligations with respect to any project granted to Contractor under this Agreement will be as specified in the Task Description for the project (see paragraph 5 below). 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 five (5) years from the date first above written. 4. PROGRESS AND COMPLETION The work for any project granted to Contractor pursuant to this Agreement will begin within ten (10) days after receipt of notification to proceed by City and be completed within the time specified in the Task Description for the project (see paragraph 5 below). Extensions of time for a specific Task Description may be granted if requested by Contractor and agreed to in writing by the City Manager or the Division Director as authorized by the City Manager ("Director''). The City City Attorney Approved Version 6/12/18 Oct. 17, 2023 Item #2 Page 48 of 79 2 City Attorney Approved Version 6/12/18 Manager or Director will give allowance for documented and substantiated unforeseeable and unavoidable delays not caused by a lack of foresight on the part of Contractor, or delays caused by City inaction or other agencies' lack of timely action. In no event shall a specific Task Description exceed the term of this Agreement. 5. COMPENSATION The cumulative total for all projects allowed pursuant to this Agreement will not exceed three hundred thousand dollars ($300,000) per Agreement year. If the City elects to extend the Agreement, the amount shall not exceed three hundred thousand dollars ($300,000) per Agreement year. The total amount of the Agreement shall not exceed one million five hundred thousand dollars ($1,500,000) for the initial five year term. Fees will be paid on a project-by- project basis and will be based on Contractor’s Schedule of Rates specified in Exhibit “A”. Prior to initiation of any project work by Contractor, City shall prepare a Project Task Description and Fee Allotment (the "Task Description") which, upon signature by Contractor and for City, the City Manager or Director, will be considered a part of this Agreement. The Task Description will include a detailed scope of services for the particular project being considered and a statement of Contractor's fee to complete the project in accordance with the specified scope of services. The Task Description will also include a description of the method of payment and will be based upon an hourly rate, percentage of project complete, completion of specific project tasks or a combination thereof. 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. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 49 of 79 3 City Attorney Approved Version 6/12/18 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 attorneys fees arising out of the performance of the work described herein caused by any willful misconduct or negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. 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. 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless 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. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 50 of 79 4 City Attorney Approved Version 6/12/18 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. 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 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. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 51 of 79 5 City Attorney Approved Version 6/12/18 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 are: For City: For Contractor: Name Maria Callander Name Yvonne De la Rosa Title IT Director Title Engagement Manager Dept Information Technology Address 6261 Hazel Avenue, #1330 Orangevale, CA 95662 Address 1635 Faraday Ave Phone 916.565.8090 Carlsbad, CA 92008 Email services@pcg.com Phone 760.602.2454 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 as required in the City of Carlsbad Conflict of Interest Code. Yes No If yes, list the contact information below for all individuals required to file: Name Email Phone Number 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. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 52 of 79 □ 6 City Attorney Approved Version 6/12/18 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 at the 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. 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 DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 53 of 79 7 City Attorney Approved Version 6/12/18 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 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: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 54 of 79 DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 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 Agr nt. CONTRACTOR (sign here) Gary Garofalo chief operating officer (print name/title) ATTEST: By: fd{Vl (sign here) SHERRY FREISINGER City Clerk (print name/title) 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. CITY OF CARLSBAD, a municipal corporation of the State of California APPROVED AS TO FORM: CINDIE MCMAHON, City Attorney BY: ~lAlAifir t :txw crDeputy City Attorney 8 City Attorney Approved Version 6/12/18 Oct. 17, 2023 Item #2 Page 55 of 79 City Attorney Approved Version 6/12/18 EXHIBIT “A” SCOPE OF SERVICES Contractor agrees to provide the following services, as needed by the City and as defined and agreed to on individual task orders: 1) Project management: Within the city’s existing project management framework, assist the city with future projects and initiatives with project management related tasks such as:  Assessments to identify business, functional and technical requirements  Assisting in developing, issuing, and evaluating request for proposals  Business process mapping and improvement  Providing additional project management staff to augment the city’s existing IT project management team 2) Change Management: Assist the city on large projects to ensure that the city is intentional in its efforts to prepare the organization for a change, the transition through the change is as smooth as possible and staff have the training and tools necessary to leverage the benefits of the project including:  Providing change management tools and processes that facilitate citywide communication, knowledge, and the ability for stakeholders to successfully adopt and maintain change related to city projects and initiatives  Providing customized on-demand training materials for business processes and information systems that can be loaded on the city’s training platform (Carlsbad Learn) to support the ongoing training needs for existing and future staff Contractor will only be compensated for services once a task order is agreed upon by both Contractor and the City. There will be no compensation for Contractor in advance of a task order, including any time needed to draft a proposed scope of work for the specific task order. City Standards: The city’s standard tool for project management is SmartSheet. The city’s standard tool for project collaboration (file sharing, virtual project meetings, etc.) is Microsoft Teams. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 56 of 79 Oct. 17, 2023 Item #2 Page 57 of 79 DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Statement of Cost Services The table below provides our hourly professional fees at different staff levels, based on project assignments and nature of the work. MAXIMUM TITLE ROLE DESCRIPTION HOURLY RATE Engagement Provides services for initial project identification, Manager/Program setup, goals, and assists with contract procurement. $225 Manager Provides senior level Project Management support, Senior Project Manager from project initiation/setup phases through to $205 implementation. May also include program and portfolio management direction as needed. Provides project coordination support for specific project efforts, tasks and needs. Project coordinators Project Coordinator can be especially helpful when additional project $185 oversight and support is needed after initial project setup, to drive outcomes and delivery. Provides senior level Change Management strategy and support, from initial project phases, through all stages of Change Management work. Senior Senior Change Change Management consultants are especially $205 Management Consultant helpful in the beginning of projects to determine strategy and approach, as well as consulting along the way -or to assist in the navigation of project or organizational challenges. Change Management Provides direct Change Management support for Consultant change activities and assists in driving specific $185 (identified) strategies forward to completion . Contractor Methodology/Project Approach PCG is a recognized national leader in the delivery of Project Management services. We are proud of our Business Solutions Center of Excellence (CoE) and Project Management Methodology (PMM) which bolster the knowledge and support of our consultants in the delivery of successful, time-tested Project Management services. Our consultants are formally trained to support their Project Management certification efforts. Our experienced staff mentor more junior staff on Project Management Institute (PMI) Project Management Body of Knowledge (PMBOK®) and other industry standards and best practices. We have more than 40 PM l-certified Project Management Practitioners within our Technology Consulting practice alone. 10 City Attorney Approved Version 6/1 2/18 11 City Attorney Approved Version 6/12/18 PCG’s PMM has four (4) basic objectives that we believe are the foundation of any sound project methodology which we will use to support development of our deliverables to the City of Carlsbad. Without these in place, control methods, procedures, and other Project Management best practices will not be effective. Our specific objectives include:in place, control methods, procedures, and other project management best practices will not be effective. Our specific objectives include:  High-Quality Work – Deliver high quality services and work products that address the business objectives and meet the requirements of the City of Carlsbad.  On-Time Delivery – Complete deliverables on schedule and within budget.  Effective Communication – Timely and accurate communication to the City of Carlsbad project participants and stakeholders throughout the entire project.  Proactive Management – Identify potential problems before they develop and initiate appropriate corrective action. The PCG PMM ensures that various review activities are conducted, work teams and deliverables are coordinated, and high-quality work products are delivered to the City of Carlsbad. This includes meeting the agreed-to timeline for each deliverable. All the consultants that will be used under this agreement are seasoned project management professionals with many years of experience. Working on many projects and juggling different timelines means knowing how to prioritize. Projects will have different priorities, and tasks within those projects will also have different priorities. PCG staff know how to prioritize and understand what is really important and what may be just a nice to have. As evidenced by staff resumes, our project managers have worked in program management offices (California Employment Development Department, for example) and have served on multiple projects at the same time. Our approach is built on three principles that serve as its cornerstone and reinforce the notion that projects require a commitment that starts from the very beginning:  Understand the Goal – Success will begin with an understanding of the City’s projects. PCG Project Managers are active listeners, avid consumers of information, and facilitators of structured discussion that results in a common understanding of the project goals by both PCG and city staff.  Be Proactive and Stay on Task – PCG maintains progress by planning ahead, communicating actively, being collaborative, and leading decisively as well as accepting responsibility for outcomes.  Deliver Results – PCG will work collaboratively with the City of Carlsbad to successfully deliver on time, within scope, and on budget while exceeding expectations. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 58 of 79 12 City Attorney Approved Version 6/12/18 Figure 1. PCG’s PMM Knowledge Areas PROJECT MANAGEMENT PRODUCTS AND SERVICES In providing project management support to the city, PCG will employ a wide range of products and services to help project teams effectively plan for and manage the implementation of selected products. Our PM practitioners are trained to select the appropriate tools and services as the project progresses throughout the project life cycle. PCG practitioners are trained on a wide range of specialized templates and tools to help support effective Project Management on all types of projects. The ability to identify PM needs and customize the right product, service, and template is an important component of our approach. Some of the specialized products, services, tools are listed below:  Deliverables (with associated templates) o Project Charter o Project Management Plan o Communications Plan o Stakeholder Management Plan o Kickoff Meeting presentation o Requirements Management Plan DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 59 of 79 13 City Attorney Approved Version 6/12/18 o Procurement Management Plan o Testing Plan o Training Plan o Cutover Plan  Services o Includes services across all of the PMBOK areas: integration, scope, schedule, cost, quality, human resources (HR), communications, risk, procurement, and stakeholder management. Goals of Project Management Services Working closely with the city, PCG’s goal is to be focused on the success of the city’s goals and objectives. We have always worked hard to help ensure a mutual beneficial relationship is established and maintained throughout our engagement and beyond in order to achieve the desired outcomes despite changes in funding, setbacks, and delays which one or the other is usually challenged. Additionally, defining and regularly measuring our progress against a set of critical success factors will guide us to successfully build a partnership, a highly functioning team that will complete what is needed to deliver a successful project for the City of Carlsbad. PCG will not only provide staff who are qualified and experienced resources, we will:  Foster a functional relationship approach – PCG treats our clients as partners. We view our partnership with the City of Carlsbad as truly collaborative, where we are both mutually invested in not only the successful completion of a competitive procurement but also in the successful implementation of a procured solution that will support the City of Carlsbad for years to come.  Develop and maintain trust – Trust is key to any relationship, and PCG will work with the City of Carlsbad to build and maintain trust. PCG will demonstrate confidence in our team members by continuously following through with the services we provide the City. It is important to PCG that we not only build trust with the City of Carlsbad’s team but also become a trusted advisor to the City. PCG has selected staff who are not only experts in their industry but also trusted advisors to their clients.  Demonstrate follow through – PCG believes that follow through is a critical success factor to fostering a functional relationship. PCG encourages its staff to be in close contact with clients and to demonstrate their ability to deliver on our commitments.  Provide continuity of staff – PCG strives to maintain staff continuity. Consistent, long- term staffing of PCG resources will help to ensure the success of relationship management. With a customer-centric approach and our dedication and continued commitment to your program’s success, our team can provide the City of Carlsbad with the required programmatic planning, comprehensive project services and experienced resources, to help the department’s ability to plan and deliver projects that add true value to an organization. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 60 of 79 14 City Attorney Approved Version 6/12/18 Scope of Project Management Services The scope of PCG’s Project Management services is to focus on the ten PMBOK Guide knowledge areas – integration, scope, schedule, cost, quality, human resources (HR), communications, risk, procurement, and stakeholder. Our PMM includes plans and templates for each of the knowledge areas based on industry standards and best practices and can be customized to best fit the needs of a project based on the project size, scope, and other factors. These knowledge area plans and templates are designed to integrate with existing client processes or function as standalone processes if required. Approach to Project Management Services We believe effective Project Management and the ability to expertly manage multiple current projects (or program management) begin with a structured, disciplined, and repeatable approach utilizing industry standards and best practices. These components provide the foundation for project success; however, Project Management is more than building a schedule, assigning tasks, and monitoring progress. Project management requires looking at a challenge, understanding the goal, assessing the resources available, plotting a course, and keeping things on track until completion. Project management is about finding solutions within given constraints and focusing on adding value to the organization by maximizing return on investment. To this end, we have developed PCG’s proven Project Management Methodology (PMM), which:  Draws upon formal processes and standards established by industry leaders such as the Project Management Institute (PMI®) and the Institute of Electrical and Electronics Engineers (IEEE)  Supports the life cycle definition and processes and tools for all ten PMI knowledge areas that support comprehensive Project Management  Adheres to the Project Management Body of Knowledge (PMBOK Guide) for Project Management practices  Incorporates industry standards such as the Capability Maturity Model Integration (CMMI) and Information Technology Infrastructure Library (ITIL)  Is customizable based on our hands-on project delivery experience and expertise  Acknowledges that each project is unique  Assures the flexibility to respond to specific needs and challenges Our PMM Foundational Values and Principles Our PMM is built on the foundational values of guiding principles, clear objectives, and being standards-based. We have carefully identified and developed these values by drawing on project retrospectives and work completed in numerous engagements to help ensure that high-quality Project Management services are delivered. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 61 of 79 15 City Attorney Approved Version 6/12/18 We will closely with the city to develop a collaborative relationship emphasizing objectivity, balance, and support. We will provide direction, daily management, and pro-active communication to help ensure the project's success and develop high-quality deliverables in a timely and efficient manner. At the beginning of the project, we will work with the City, any additional vendors, and project stakeholders to establish a set of critical success factors the project must address. The business objectives of the project will be identified and highlighted. We will also keep a close watch on technical and process activities and challenges to provide a clear and accurate status of the project’s progress. The Project Management delivery life cycle describes the high-level process of delivering a project and the clear, repeatable steps taken to make a project happen. The life cycle of a project starts by defining the problem and understanding what needs to be delivered. In PMBOK, this effort is focused on the Initiating phase of a project, where a solution to fixing that problem or defining what needs to be delivered is defined, and an approach to executing it is created (Planning). That plan must then be put into action (Executing) while being tracked to ensure objectives are being achieved (Monitoring & Controlling). The project is then deployed, performance is evaluated, and the project is then complete (Closing). Our Framework for Full Delivery Life Cycle Management There are several approaches for managing project activities, including Phased, Lean, Agile, and Iterative. Regardless of the methodology employed, careful consideration must be given to all phases through the full delivery life cycle. PCG’s unique approach to Project Management includes three tenets, which distinguish five key Project Management processes, all of which is informed by three best-practice resources. It is PCG’s “3-5-3” PMM Approach, as shown in Figure 2. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 62 of 79 PCG'S 3-5-3 PMM Approach Understand the Goal Be Proactive Deliver Results -----PMBOK IEEE SEICMMI 16 City Attorney Approved Version 6/12/18 Figure 2: PCG's 3-5-3 PMM Approach The PCG “3-5-3” PMO approach starts with industry best practices, derived from three primary sources: The Project Management Institute’s (PMI®) Project Management Body of Knowledge (PMBOK), The Institute of Electrical and Electronics Engineers, Inc. (IEEE) Standards, and The Software Engineering Institute (SEI): The Capability Maturity Model Integration (CMMI). With those three sources as a foundation, PCG solidifies its approach around five key project management processes which are as recognizable as they are fundamentally sound. We rely on these five key project management processes time and again to bring order and maintain discipline on every engagement. They are: Initiating: Begins at project conceptualization and focuses on building the foundation of the project Planning: Centers on formalizing the project plan, budget and schedule, including employment of project management tools Execution: Occurs throughout the life of the project. Execution is an iterative process that often requires re-planning to accommodate unforeseen changes in priority or scope. Controls: Also occurs throughout the life of the project. The focus here is on tracking process against the plan, while controlling for scope, schedule, budget and human resource needs. Closeout: Formalizes acceptance of the project. Lessons learned are documented, transition activities are completed, and all documentation is formally accepted and transitioned to operations support. Initially, PCG’s “3-5-3” PMO approach carries many industry similarities. However, the PCG differentiator is the last component of our approach, the three “tenets.” These tenets describe not just an approach but an attitude, the attitude we bring to technology project management engagements. It is how we view our responsibilities; it is how we conduct ourselves; it is how we interact with our client and project stakeholders, the solution providers, and others; and it is how we hold ourselves accountable, working as your project management agent. These tenets are: Understand the Goal: Success begins with an understanding of the project. Project management staff must be active listeners, avid consumers of information, and effective facilitators of discussions that result in a common understanding of the project goals by all parties. We work with our clients to understand their goals and objectives, both initially and over the course of the engagement, and manage their projects towards a successful implementation. Be Proactive: Progress is maintained by thinking ahead, communicating actively, being collaborative, leading decisively, and accepting responsibility for outcomes. PCG will be working closely with project leadership and key stakeholders, anticipating pain points, managing project risk, and ensuring that they remain informed every step of the way. Deliver Results: For PCG, success is realized when a project is delivered on time, in scope, on budget and PCG has exceeded our clients’ expectations. We believe that our Project Management Framework and approach ensures that we can achieve these objectives. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 63 of 79 17 City Attorney Approved Version 6/12/18 To help ensure the utmost adherence to the project scope, our PMM focuses on the ten PMBOK Guide knowledge areas – integration, scope, schedule, cost, quality, human resources (HR), communications, risk, procurement, and stakeholder. Our PMM includes plans and templates for each of the knowledge areas based on industry standards and best practices and can be customized to best fit the needs of a project based on the project size, scope, and other factors. These knowledge area plans and templates are designed to integrate with existing client processes or function as standalone processes if required. The plans from each of the ten knowledge areas are compiled together to form the Project Management Plan – this plan dictates all Project Management protocol for the project. The project management plan is made available to all stakeholders to help ensure there is a common Project Management methodology across the complete project life cycle. Additional Processes and Documentation Our PMM is a well-tested methodology that provides a project with all the necessary Project Management plans and other documents for project success. In addition to the knowledge area plans described in the previous section, the PMM also includes several key processes and documents that PCG believes are critical for the project's success. These value-add processes and tools include:  Requirements Management  Change Control Management  Deliverable Management  Release Management As with the knowledge area plans, PCG’s PMM comes with customizable templates for each of the value-add plans that will be tailored to meet the specific needs of the project. PCG‘s PMM Requirements Management Another output from the Scope Management process is a Requirements Management Plan. The PMM recognizes this as a key plan for successful projects. Requirements help define the purpose of a project and are the foundation of the project. The stated requirements determine what is to be produced or achieved. They represent project capabilities to which a project outcome should conform by defining the scope of a project and what the system must do, as well as help describe the criteria for project success. One of the primary reasons that projects fail is because requirements are incomplete or incorrect. If the requirements are inaccurate or incomplete, the project is likely to fail no matter what is done in subsequent phases. Requirements Management details the processes and procedures to ensure proper Requirements Management, including how requirements are gathered, analyzed, organized, approved, and managed. The PMM process leverages best practices and industry standards with tools for gathering, analyzing, organizing, approving, and managing requirements and includes:  Requirements Management Development Process  Requirements Management Traceability Process DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 64 of 79 18 City Attorney Approved Version 6/12/18  Requirements Management Change Management Process  Requirements Management Best Practices  Requirements Management Tools PCG has worked with many requirements management tools, such as Jira, TFS, GitHub, and Azure DevOps. PCG’s PMM Change Control Management The PMBOK Guide discusses Integrated Change Control in the Project Integration Management section. PCG’s PMM methodology recognizes product and system change control as an important project activity and therefore includes processes that involve systematic management of all changes. Change Control Management is the process of defining how changes to the project (scope, deliverables, timeline, etc.) will be managed. The Change Management process is the mechanism used to initiate, record, assess, approve, and resolve proposed project changes. If any unexpected circumstances or variances arise on the project, the Change Control Plan assists the project manager and stakeholders in assessing what corrective action to take. All project changes should be managed through a formal change control process that includes change control procedures for all items that can affect the project scope, schedule and/or cost. Typically, a Change Control Board is formed with those who collectively possess the authority for making decisions regarding the proposed changes. Strategies available to a project for dealing with proposed changes include reducing scope, adding more resources, or accepting the fact that the scope has increased by updating the project schedule and creating a new baseline. Any change should be documented in a formal change request and analyzed for project impact. The use of a formal change control management procedure is necessary when any project changes are requested as it is often difficult to tell initially whether a proposed change is limited to a change in scope or affects the schedule and or cost. A formal change control management process should include the following steps. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 65 of 79 19 City Attorney Approved Version 6/12/18 Figure 3: PCG’s PMM Change Control Process PCG’s process leverages best practices and industry standards to ensure that all changes to the project are reviewed and approved in advance, all changes are coordinated across the entire project and that all stakeholders are notified of the approved changes to the project. PCG has used several tools to manage change control, including some of the tools mentioned in Requirements Management above, such as Jira, TFS, GitHub, and Azure DevOps. PCG’s PMM Deliverable Management Although the PMBOK Guide does not call out Deliverable Management as a Project Management process, our PMM recognizes that ensuring that the project has a well-defined process for managing the life cycle of deliverables from definition through acceptance is an important project activity. Managing assigned project deliverables identified by the Statement of Work, will be critical to ensuring a complete project plan, schedule, and supporting a successful delivery. Deliverables management is the process of defining the deliverables that are a part of the project. A deliverable is a product or service given to the client and usually has a due date and is tangible, measurable, and specific. Examples include software products, documentation, and training. Our PMM includes a well-defined process for managing the life cycle of deliverables to ensure that the City of Carlsbad’s expectations are met. At a high level, the process of deliverables management includes the steps of:  Checklist Development  Deliverable Expectations Document DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 66 of 79 ~deotlfv ood documeot the reqoi"'" <hMge J • Verify the change is valid and requires management • Dec_ide whether to execute the change • Execute decision, including revision to project plans if necessary • Verify that action is complete and close change request 20 City Attorney Approved Version 6/12/18  Deliverable Production  Draft Submission  Client Walkthrough  Formal Review  Defect Correction  Deliverable Acceptance The tools that PCG normally uses for Deliverable Management include an overview and a checklist for Deliverable Review and Acceptance. PCG’s PMM Release Management While the PMBOK Guide does not call out Release Management as a Project Management process, our PMM recognizes that the packaging and controlled release of new and enhanced functionality is an important project activity. Release Management is the process of planning and implementing an integrated set of functional components and processes in a controlled manner. This helps to ensure that there is a transparent and integrated view for both business and IT plans, more stable production release and creates predictability in delivery timeframes, costs, and support requirements, and can assist with resource utilization consistent with corporate priorities. The PMM processes leverage ITIL best practices to provide a robust release management approach and to help ensure that the client’s expectations are met. At a high level, this includes:  Release identification and release naming  Control and approval processes  Deployment activities and communication  Release procedures and planning  System monitoring and acceptance An important component to Release Management is understanding the different types of releases and how they can support the different project and client needs. Our project team is flexible enough to support frequent releases in an agile environment and partner with clients on “big bang” or all-at-once style releases. In projects such as the City of Carlsbad’s Portfolio Management effort, the “big bang” style release is the most appropriate to meet stakeholder, user, and technology needs. Our project team has extensive experience supporting complex, multi-faceted IT projects with the need to release functionality at one time. PCG’s project team understands and employs key strategies for big-bang releases such as comprehensive and complete project schedules, careful risk/issue management, regular reporting, and maintaining critical milestones to show progress. Our experience with large-scale IT projects and one-time, big-bang implementations (as demonstrated through the provided project examples) makes PCG the perfect partner for the Portfolio Management Project. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 67 of 79 21 City Attorney Approved Version 6/12/18 PCG uses the following tools for Release Management: Comprehensive and complete project schedules, risk/issue management, regular reporting to leadership, and maintaining critical milestones to show progress. PCG’s experience in guiding and supporting our clients through various type of releases can be of great value to the City of Carlsbad. Our ability to assess what each release needs and quickly working to apply templates and strategies will be of immediate help in developing a consistent framework for releases across multiple areas and project lines. With a foundation rooted in IT service delivery, our team understands the importance of maintaining a high level of quality in the projects and products we deliver. To assist the City of Carlsbad’s IT Department, quality will be implemented at two levels - our processes and methodologies used to execute and deliver projects, and our highly qualified and industry certified professional consultant team. This dual approach allows IT department leadership to feel confident in the knowledge that comes with working with a vendor with a demonstrated history of high-quality services. Our practices help ensure that perspectives from multiple disciplines are considered, vetted, and built upon to deliver a superior result. Our unrivaled and proven methodologies, such as the Project Management Methodology (PMM), pictured in Figure 4, were developed specifically to support IT project work like those requested by City of Carlsbad’s IT Department. These methodologies, which incorporate industry standards such as those from the PMI, industry best practices, and the collective experience of previous PMO projects, were developed to provide a consistent level of maturity to support project success. CHANGE MANAGEMENT PRODUCTS AND SERVICES In providing change management support to our clients, PCG has a wide range of products and services to assist leadership and project teams effectively plan for, manage, and reinforce change. Our trained practitioners work closely with clients selecting the appropriate tools and services in each of the three change phases, as well as within organizational change management work for departments. Often, working with state and county clients, we find that certain tools and templates find their way into multiple phases – to build a customized strategy to meet individual needs. PCG’s blend of Change Management services and tools reduce risks and shapes the outcomes of change by identifying and supporting the people, processes, and technologies that must be involved. Our ability to deliver what is needed for success across all areas of operation ensures that moving from the current state to the future state is smooth, successful, and achieves lasting benefits. It is also important to consider PCG practitioners are trained on a wide range of additional and specialized templates and tools to help support effective Change Management in all types of One of PCG’s most important services is our ability to work closely and collaboratively with leadership and project teams to devise a customized solution to provide a CM approach that will projects and organizations. The ability to identify CM needs and customize the right product, service, and template is an important component of our approach. work best for a particular organization, project, or scenario. Our team has the “right balance” of client experience (to make recommendations for templates and tools), along with the ability to look at each client and situation in a new light to devise the “best” approach, services, and tools to meet unique needs and opportunities. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 68 of 79 22 City Attorney Approved Version 6/12/18 Goals of Change Management Services Developing strong goals early in an engagement is a critical component to Change Management work. Our team of trained Change Management consultants work closely with leadership at the beginning of every engagement to devise clear goals and a strategy that aligns with exactly what our clients want to achieve. The overall goal of our Change Management services is to help our clients understand and embrace – employing a strong Change Management approach enables an organization to achieve far greater results and the ability to drive adoption throughout an organization. We will partner with the City of Carlsbad to bring Change Management services that will enable better results and outcomes by preparing, equipping, and supporting individuals through their change journey, and driving adoption, usage, and improving overall initiative success. PCG has develop a wide range of tools and templates to help clients like the City of Carlsbad. An example of one such tool, the Four P’s, allows our consultants to work with leadership to clearly define and articulate change management goals for a project. Using our framework and templates, change consultants can partner with clients to assist in the development of strong goals early in the project effort. Figure 4: Change Management "Four Ps" Method for Goal Identification Our project team will quickly integrate with leadership and project teams on a given project, to identify and capture specific goals for providing Change Management services. Identifying, capturing, and analyzing goal areas will provide strong data and strategy to help the City of Carlsbad meet organizational and project needs. We understand the City of Carlsbad needs to quickly focus on key areas such as the following.  Provide information, analysis, and strategy recommendations for both organizational and project change impacts people and teams  Help an organization and project teams better plan for and deliver critical change  Identify gaps between requirements and results, and provide ideas to address  Limit variability in an organization’s approach to change  Create a culture of assisting people through change  Increase the likelihood of project efficiency and success  Help to grow the City of Carlsbad project and portfolio teams to be able to embrace and thrive in a change-driven world DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 69 of 79 + + + -- 23 City Attorney Approved Version 6/12/18 Change Management is the discipline that guides how we prepare, equip and support individuals to successfully adopt change to drive organizational success and outcomes. Our approach to supporting the City of Carlsbad can have numerous benefits throughout the organization – and even impact end-users or the City of Carlsbad’s community. Our team looks to partner with the City of Carlsbad to establish and deliver on strategies that help support individuals (at many different levels and areas) through their individual and group change journeys. We will work with the city to devise strategies that will achieve the following marks.  Address different impacts on people and teams - The City’s projects and initiatives have a significant impact on the ways individual people do their work on a day-to-day basis. Change can impact processes, systems, tools, job roles, workflows, mindsets, behaviors and more. And each change impacts different groups within your organization differently. To manage these impacts during times of change, our Change Management professionals employ a structured approach that includes helpful knowledge, processes, and tools.  Deliver people-dependent return on investment or ROI - Organizations undertake initiatives to capitalize on an opportunity, solve a problem, or improve performance. You can achieve some of the desired outcomes simply by installing the solution. However, much of the benefit is tied to people changing the way they do their jobs. Applying Change Management prepares, equips, and supports people, so they can successfully change how they do their jobs. This enables organizations like the City of Carlsbad to capture the adoption contribution and people-dependent portion of the project's true value.  Close the gap between requirements and results - All too often, organizational changes end up meeting requirements without delivering expected results. They deliver the necessary outputs without delivering expected outcomes. This is what happens when the organization focuses efforts on the solution itself, rather than its benefits. Closing the gap between requirements and results, between outputs and outcomes, and between solutions and benefits requires focusing on the people who must use the change every day. How will you reap benefits from a solution if people do not adopt and use it? Applying Change Management enables you to close the gaps by preparing, equipping, and supporting people through the change, so they can bring it to life in their daily work.  Increase the likelihood of project success - Change management data and current research consistently shows that initiatives with excellent Change Management are six times more likely to meet objectives than those with poor Change Management. In fact, by simply moving from “poor” to “fair,” Change Management increases the likelihood of meeting objectives three-fold. The better you apply Change Management, the more likely you are to deliver on project objectives.  Mitigate mission-critical risk - Ignoring the people side of change creates both costs and risks. When you ignore adoption and usage of a solution, you focus exclusively on meeting technical requirements. This leads to what Prosci identifies as costs from redesigning, reworking, revisiting, redoing, retraining, rescoping, and in some cases, retreating. Failing to plan for and address the people side of change leads to greater absenteeism and attrition, reduced productivity, lower morale, and disengaged employees. And customers feel the impacts along with the organization. Change management helps you mitigate mission-critical risks. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 70 of 79 24 City Attorney Approved Version 6/12/18  Limit variability in change - Change is difficult. To the extent possible, you want to remove the chance or variability associated with project changes and initiatives. Project management accomplishes this through sequencing milestones, deliverables, activities and resources over the project or initiative's life cycle. But these actions only address the technical side of a change as you design, develop, and deliver it. Unless you proactively support and guide people through the impacts from project changes, you leave success to chance. Change management mitigates or removes variability by preparing, equipping, and supporting employees, so they can engage, adopt, and use the change successfully.  The “right way” to treat people - How many times have we heard, “Our employees are our most important asset”? Yet, when a change gets implemented, employees typically receive an email on Monday for training on Tuesday and go-live on Wednesday. That is not the right way to treat people—especially your organization's most valuable asset. By proactively engaging, equipping, and supporting people during times of change, you demonstrate in words and deeds that you truly value them. And the entire organization benefits as a result. Scope of Change Management Services PCG understands the challenges many organizations face when attempting to integrate Change Management into project work or organizational structures. One of the first challenges is the consideration of scope – how do we appropriately factor in the scope of Change Management for projects, portfolios, and to our organization as a whole? Our team brings the experience to sit with clients, listen, and truly understand what is really needed at the organization, portfolio, and project levels. We then dive in to help each client and project establish a strong Change Management scope and determine factors such as the following. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 71 of 79 25 City Attorney Approved Version 6/12/18 Figure 5: Change Management Scope Questions Some of the hallmarks of our approach to scoping Change Management efforts that we feel will be extremely beneficial in helping the City of Carlsbad include the following. • Benefits of Establishing Scope: As with any discipline or methodology, it is important to distinguish between the activities that fall within the scope of Change Management and the Project Management activities that occur in parallel or in collaboration with Change Management. • Risks of Not Establishing Change Management Scope: In addition, there is an inherent risk of not clearly establishing scope. It becomes very easy for one group to believe that they are responsible for work that falls under the work responsibilities of another group, resulting in confusion and ineffective workstreams. Understanding the respective scope and boundaries enables both disciplines to work effectively together while avoiding any overlap of activities that may create conflicts for the project. The boundaries also enable the separation of solution design, development and implementation from the actions required to manage the technical side and people side of that solution's deployment. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 72 of 79 26 City Attorney Approved Version 6/12/18 • Creating a Unified Value Proposition for Scope Determination: The PCG Change Management approach and framework utilizes the Prosci Unified Value Proposition Model to identify and bring forward the key elements of implementing a change within an organization. This model helps to identify and communicate how the technical side of change (Project Management) and people side of change (Change Management) must come together to deliver success for a change initiative. Success is defined as meeting or exceeding project objectives and realizing organizational benefits. PCG’s Prosci-certified Change Management practitioners assist organizations in building out their own unified value proposition models, to identify key factors the organization should consider in bringing about change. For the City of Carlsbad, factors such as – various organizations managing projects in different ways, the need for more data driven decisions in portfolio management, moving towards more sustainability in project approaches, and a future state of even greater customer service. Using this Prosci model is of great benefit to organizations when working on questions of Change Management scope. Figure 6: Consideration of the Technical and People Side of Change Approach to Change Management Services PCG recognizes the City of Carlsbad’s need to completely revolutionize their approach to Project, Portfolio, and Change Management services; our experience, knowledge, and innovative approaches to these types of large-scale changes make us an ideal partner for this endeavor. As City leadership assesses various approaches to this change, one thing is clear: Change Management support for processes, departments, and the individuals doing daily work, will be a critical component. In addition to providing solutions, our team can help establish a strong organizational Change Management approach to support the move of teams and individuals to this new way of conceptualizing work. Our approach to providing support in Change Management services can directly help the City of Carlsbad in the following ways.  Clearly identify the goals and drivers of the changes, to clearly communicate to various audiences – as well as collect feedback to drive adjustments to strategy, creating a feedback “loop” to better meet needs.  Help form a vision and plan that meets leadership needs and is clear to teams. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 73 of 79 DHign Tec:bftk.11 SIClt O~lop Oe!liver Reason + for .. -Change -Success ~ -Sid• .. ' 27 City Attorney Approved Version 6/12/18  Drive buy-in and engagement and help improve understanding at all levels and areas  Provide a comprehensive approach to communication and training, critical to transition success.  Use readiness assessments to provide data on areas needing additional work.  Partner with leadership to identify and prioritize areas of need.  Help to drive an ongoing strategy and environment of change and development for all departments and levels, in a connected and consistent way. Our experience in partnering with clients for project and organizational change management endeavors has provided us with a clear understanding of helping organizations through changes and becoming a more agile, growth-centered entities. This experience will help us partner with the City of Carlsbad to identify needs and develop a customized plan to quickly deliver success through Change Management areas. Accelerating our client’s ability to deliver on their mission through people-engagement, enablement and empowerment strategies is what drives us, which is why our PCG OCM Service Line maintains a training and certification program that provides our consultants with the tools, processes, and guidance needed to ensure a consistent application and delivery of high- quality services for driving change in state government. Our team of highly experienced OCM consultants are certified in the Prosci Model of Change Management and collectively has more than a century of experience delivering OCM services in various levels and capacities on state and local government projects across the country. We know we can partner with the City of Carlsbad for effective Change Management strategies, as we have helped other clients with similar challenges. At PCG, we are passionate about getting results for our clients like the City of Carlsbad and delivering Solutions that Matter. PCG’s Organizational Change Management (OCM) Service Line was created to help ensure every engagement is approached and delivered with the same reliability and success our clients have come to expect from us. Within this service line, we maintain a training and certification program for our OCM practitioners that provides our employees with the tools needed to fully support our clients in providing quality services and deliverables. The Prosci methodology is a proven industry standard model that organizes change into a 3- phase process with each phase building on the previous. The three phases are: 1. Preparing for Change 2. Managing Change 3. Reinforcing Change This model, in concert with the PCG OCM toolset, can be tailored to design a comprehensive, person-centric approach that inspires your stakeholders to adopt new behaviors, processes, and technologies. An overview of PCG’s approach and deliverables typically associated with each phase is described below. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 74 of 79 Oct. 17, 2023 Item #2 Page 75 of 79 DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Stop3 Figure 7: Prosci Phase Methodology Preparing for Change The Preparation phase includes the tasks associated with scoping and defining the change strategy, engaging the sponsor, identifying, and assembling change champions to support the transition and assessing stakeholders. PCG will apply a checklist of activities to understand what efforts may have already been completed prior to starting its work. Design the Change Management Strategy Working with the Project Management team, PCG will design a Change Management strategy that is appropriate and effective for the project. We begin by reviewing project source materials to gain an understanding of the project. From there, we engage the primary sponsor to confirm the project's vision and success measures. Next, we develop an initial list of stakeholders as well identify key business experts to provide insights into the organization's current operations. With this information, PCG will analyze and categorize the stakeholders and begin documenting how the organization's stakeholders will be affected. Building upon our extensive history in state and local government systems implementations and conversations with your organization, PCG will produce a strategy document and roadmap that describes the scope of the effort, stakeholder assessments, high-level organizational impacts and recommendations that accelerate adoption. Figure 8: Prosci Phase Methodology 28 City Attorney Approved Version 6/1 2/18 29 City Attorney Approved Version 6/12/18 Assess Stakeholders and Engage the Sponsor A key component to enabling able project success is managing stakeholders and their expectations. To do this, PCG will partner with your organization to identify who the stakeholders are and understand their roles within the organization. From there, we will determine their needs and concerns which becomes the foundation of an engagement roadmap. The engagement roadmap will define the activities used to enable and promote stakeholder participation. Sponsors are the most powerful proponents of the project – they have committed the organization and its resources toward business transformation and are critical to accelerating adoption. As we work to understand how the sponsors view the project, PCG will conduct a structured sponsor interview to find out what is different between today and the future state. The output of this exercise helps us craft the messaging and prepare sponsors for managing the transition. Deliverables and work products typically completed for the Preparing for Change phase:  Change Management Strategy Document  Status Reports as agreed  Oral Presentations as needed Facilitating and Managing Change The Manage phase is the execution of organizational change activities, which includes communicating the change, engaging stakeholders, and supporting training activities. The primary goal of this phase is targeting the right change activity to the right stakeholder at the right time. PCG will produce the planning and execution tools and will customize them appropriately to fit the needs of the project. Develop and Implement Change Management Plans The Master Change Management Plan (MCM) is composed of a collection of plans that stand alone as discrete tools for specific activities associated with guiding stakeholders through the transition. However, as a collection, the plans represent a comprehensive toolset for guiding organizational change management. PCG will produce plans that will include executive summaries, overviews, target audiences, business reasons for each segment, and objective measures for success for each segment. The MCM will include the following discrete plans (descriptions of each plan below):  Communications plan  Engagement roadmap  Training management plan DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 76 of 79 30 City Attorney Approved Version 6/12/18 Communications Plan PCG will develop the Communications Plan by working with the project team and identified stakeholders. In creating the Communications Plan, it will be key to consider current mechanisms and past communications. These considerations will optimize the impact of project messaging and drive stakeholders closer to adopting the change. The Communications Plan will identify the audiences, key messages, and timing, and will determine content packaging, delivery method, frequency, and sender. The messages will be organized by their timing in the project, and each phase has specific key messages. The messages are assigned a delivery mechanism and a sender that effectively conveys that message. The communication activity will occur at a specific date and time to help ensure that the right messages are received at the right time in the project. Training Management Plan PCG will partner with the city’s internal training team in the development of a cohesive, robust training strategy that will include:  Training needs assessment support – providing organizational impacts to help determine who should be trained and the information to be taught.  Training curriculum and materials review – sharing best practices and feedback on course materials and instructional methods.  Training pilot activities – supporting pilot development and participating in pilot activities.  Training delivery and deployment schedule support – sharing insights gleaned from engagement ctivities to ensure workforce constraints are considered.  User training feedback review – collecting and discussing training participant feedback and determining the best approach for incorporating input into training materials. Deliverables and work products typically completed for the Managing Change phase:  Master Change Management Plan  Schedule of the Change Management activities  Change management plan implementation checklists  Status reports  Oral presentations Reinforcing and Sustaining Change The final phase in managing change is evaluating engagement, monitoring performance, addressing resistance, and celebrating success. During this phase, PCG will review the success measures defined at the beginning of the project with the primary sponsor and establish a cadence of collecting and evaluating data. As part of monitoring performance, PCG will audit DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 77 of 79 31 City Attorney Approved Version 6/12/18 compliance with new processes, systems, and roles. Compliance auditing includes focus group feedback, observation and usage reports that will gauge user adherence. Our findings will highlight what is working well and where there are opportunities for improvement. With this knowledge, sponsors and leaders will be well-equipped to address stakeholders. Deliverables and work products typically completed for the Reinforcing Change phase: • Feedback and compliance report • Transition plan • Status reports • Oral Presentations as needed While a solid framework and methodology is important, we recognize that the City of Carlsbad needs experienced change consultants who are able to customize this strategy for the specific projects and challenges the City faces. Both our Project and Change Management approaches provide a solid foundation and framework – while remaining flexible enough to be customized for our client’s needs. Our trained consultants work daily with project and organizational teams to take these frameworks and bring them to life – to match up with specific client needs. With an understanding of our solid yet flexible approaches, we move forward to share our Goals for Project Management and Change Management services. Timeline for Change Management Services Timing is a critical component of Change Management services. Our experienced Change Management team understands that successful Change Management efforts and outcomes hinge significantly on timing. The City of Carlsbad has identified the desire and need for a structured and integrated approach to helping prepare end-users for change; the identification of this need is one of the most crucial factors to integrating CM services and support – often and early. Employees need to understand the purpose of the project or business transformation as well as the vital role they play. In other words, what will be expected of them throughout the project and after implementation? Our Change Management and project experience has helped us understand – in many organizations and environments, communicating information only a few times does not make it stick. Our approach recommends and supports providing employees plenty of time to process organizational changes before implementation begins. This way, they feel involved and know that their input matters. In our experience supporting clients with Change Management has demonstrated there are many advantages to beginning Change Management efforts early in the project cycle. 1) Provides Time to Assess Business Readiness: Before beginning any business transformation, it’s essential to conduct a business readiness assessment. This single step can help you determine if your organization has the expertise, resources, and culture necessary to support and sustain a major shift. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 78 of 79 32 City Attorney Approved Version 6/12/18 Initial business readiness assessments include discussions on defining portfolio and project strategies, alignment of these strategies with enterprise-wide goals, helping to identify and articulate the scope of change, assessing levels of buy-in and support for the change, and resource recommendations. Through these discussions, our goal is to assist clients in determining if the team or organization is ready to embrace the change to come. 2) Helps an Organization to Avoid Change Fatigue: One of the most common sources of change resistance is change fatigue – this is the sense of apathy or resignation that employees feel when an organization enacts multiple changes in a short period of time without proper planning or communication. Feelings of fatigue are especially common when changes are sprung on employees without warning. While implementing multiple changes at once may be unavoidable, you can minimize change fatigue by at least giving employees time to prepare for upcoming changes, so they do not feel rushed or overwhelmed. 3) Drives Buy-In and Engagement: Waiting until later in the project cycle to start informing end users of change creates several issues for a project, organization, and overall end-user adoption. When organizations wait till right before a change goes live to inform employees that there are major changes coming – employee resistance and pushback is a natural response. Our consultants understand these factors and have helped organizations avoid this situation, by working with projects to develop communication plans as early as possible. While initial buy-in is important, you need a supportive, involved workforce for all phases of your project. For example, before implementation, you will need employee involvement in business process reengineering efforts. In addition, after go-live, a supportive workforce is essential as they will be more likely to effectively use new software, which ensures you achieve expected benefits. 4) Technical Project Tasks Can Distract from Change Management Efforts: If you are planning to implement new technology, your project team is likely to be focused on hands-on technical activities to migrate data and deploy the new system. This is not the ideal time to try to develop a Change Management Plan. While you may have a dedicated Change Management team that can solely focus on the human aspect of change, this team will need the support of other project team members to truly develop and execute an effective plan. There are several strong reasons for an early start to Change Management activities, as well as ensuring Change Management is “baked into” all project phases and states. When you begin Change Management early in the project cycle, you have plenty of time to integrate it into your overall project plan so team members know what people-focused activities will be essential during implementation and how they can support these efforts. If you begin Change Management early, you are not rushing to try to fit in organizational assessments, focus groups, training, communication, and other essential activities into a few short months. DocuSign Envelope ID: E132CCEC-8F8E-473A-A515-5E4B772CA7F9 Oct. 17, 2023 Item #2 Page 79 of 79