HomeMy WebLinkAbout25B - AGMT WITH CHAZEY PARTNERSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 4, 2020
TITLE
APPROVE AN AMENDMENT TO THE
AGREEMENT WITH CHAZEY PARTNERS, INC.,
IN THE AMOUNT OF $91,735 FOR THE
EXPANSION OF THE SCOPE OF WORK FOR
THE BUSINESS PROCESSES ASSESSMENT
AND IMPLEMENTATION PROJECT, FOR A
TOTAL AGREEMENT AMOUNT NOT TO
EXCEED $504,735
(NON -GENERAL FUND)
(STRATEGIC PLAN NO. 7, 5E)
CLERK OF COUNCIL USE ONLY:
_••e•
❑ As Recommended
❑ As Amended
❑ Ordinance on 11' Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CK�P►111►1�1q�iC�
/s/Kristine Ridge FILE NUMBER
CITY MANAGER
RECOMMENDED ACTION
Authorize the City Manager to execute the First Amendment to the Agreement with Chazey
Partners, Inc. for the expansion of the scope of work of the Public Works Agency Business
Processes Assessment and Implementation Project to include Building Maintenance, Fleet
Services, Central Stores, and City Yard Operations, increasing the agreement amount by $91,735,
for a total agreement amount not to exceed $504,735, including expenses, subject to non -
substantive changes approved by the City Manager and City Attorney.
DISCUSSION
On February 20, 2018, at the conclusion of a competitive Request for Proposals process, the Public
Works Agency (PWA) entered into an agreement with Chazey Partners (Chazey) to complete an
assessment of PWA business practices and to assist with the implementation of recommended
operational changes associated with the assessment. Most PWA business processes currently in
use were implemented over 30 years ago with few updates over the years. Some processes had
evolved to accommodate specific work locations, available technology, and individual employee
computer skill levels. PWA management desired to take advantage of opportunities proposed by
Chazey to streamline operations and improve efficiency, with a goal of better managing grants,
being a better stewardship of public funds, and improving service delivery to the community.
In November 2018, as part of a reorganization to streamline operations, the City began the process
of transitioning the City's Building Maintenance, Fleet Services, Central Stores, and Corporate Yard
operations from the Finance and Management Services Agency to PWA, beginning in Fiscal Year
2019-20. As part of this reorganization, PWA management asked Chazey to expand the scope of
the Business Processes Assessment and Implementation Project to also review the administrative
processes of the newly added operations.
25B-1
Amend Agreement with Chazey Partners, Inc.
February 4, 2020
Page 2
Chazey proceeded with the project in two phases, incorporating the expanded PWA operations. In
Phase 1, Chazey's assessment identified and prioritized stakeholder needs, quantified full-time
equivalent (FTE) effort and associated costs for PWA business processes, and benchmarked
current activities against peer organizations. Chazey conducted roundtables to gather current -state
process steps and to design future -state processes with PWA and other City agencies' input.
A key Phase 1 output was a prioritized Opportunity Matrix highlighting expected efficiencies from
business process improvement (Exhibit 2). The Opportunity Matrix included 62 potential
opportunities for process improvement across Public Works. Each opportunity was ranked for its
Benefit, Cost, Time, and Difficulty to implement and then were reviewed and prioritized with PWA
staff. This prioritized Opportunity Matrix was also reviewed with the project governance committee
that included the Executive Directors of the Public Works Agency, Finance & Management Services
Agency, as well as the Chief Technology Innovations Officer.
Phase 2 comprised the design, build, and implementation of identified process improvement
opportunities. The following four projects were selected for immediate implementation:
Consolidated Customer Invoice Statement: Provides a customer -friendly accounts
receivable statement for Public Works customers. Statements will be available "on -demand"
for PWA customers and include itemized invoice charges, applied payments and credits,
and aging buckets for amounts due. Prior to this, providing a consolidated statement
required a manual review of all customer invoices, researching and reconciling both
payments and credits assigned to each invoice, and then manually developing a statement
for the customer. Chazey staff has designed the statement document, completed the report
formatting, and will coordinate the upload into Lawson (the City's Enterprise Resource
Management system).
2. Automated Vendor Notifications: Using data and existing functionality in Lawson, Chazey
created an automated notification process for PWA vendors and the supporting engineering
administrative staff. These notifications will identify when vendor insurance coverage
expires, allowing the engineering department to be proactive in gathering the required
documentation without disrupting the vendor's planned engagement with the City. Prior to
this, a member of the PWA administrative staff was responsible for manually identifying the
expiration of coverage and contacting both the vendor and supporting City engineering staff
to update the documentation to reflect active insurance coverage. The streamlined process
will allow the engineering department staff members to work directly with the identified
vendor to keep them current.
3. Implementation of a Cycle Count Process: As part of the expanded Phase 1 scope,
Chazey identified a need for a regular cycle count process in the City's Central Stores
warehouse. Implementing a cycle count process is a best practice in which different portions
of inventory are physically checked on a continuous schedule. This process will help control
inventory shrinkage and manage accounting activity related to the inventory current. Chazey
developed the documentation, identified specific Lawson system requirements, and
prepared execution instructions for the warehouse staff. Prior to this, no regular cycle count
was performed and there was little documentation or support from Lawson for this process.
25B-2
Amend Agreement with Chazey Partners, Inc.
February 4, 2020
Page 3
4. Automating project billing data entry into ePersonality: Because the City is engaged in
various projects funded through state and federal grants, labor hours allocated to each
project must be tracked for grants management and billing purposes. Chazey utilized
Robotics Process Automation (RPA) to automate data entry and allocation of project labor
hours from a timekeeping database directly into the City's ePersonality payroll system.
Currently this process is a highly manual, time-consuming effort that takes one FTE in PWA
approximately 2 days each month to complete. After the automation is complete, and
following a payroll software upgrade, the time to complete this process will be reduced to a
half -day of effort or less each month.
It was subsequently decided by PWA Management and the project governance committee that,
using the Opportunity Matrix as a guide, the remaining 58 opportunities would be prioritized and
implemented by PWA staff in conjunction with supporting City agencies. Chazey will complete the
four selected projects, providing software programming and implementation instructions, where
required.
The requested compensation increase of $91,735 will allow Chazey to be compensated for work
completed in the delivery of the expanded Scope of Work (Exhibit 1). As stated earlier, the
additional Scope of Work was to expand the scope of the Business Processes Assessment and
Implementation Project, including the administrative processes of the newly added Building
Maintenance, Fleet Services, Central Stores, and Corporate Yard operations from the Finance and
Management Services Agency to PWA.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #7 - Team Santa Ana, Objective #5
(create a culture of innovation and efficiency within the organization), Strategy E (identify best
practices and opportunities for process improvement and automation across City departments in
order to provide efficient and effective delivery of City services to the community.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Expenditures for the Chazey Partners, Inc., agreement amendment will be paid by Public Works
internal service funds, accounted for in the Public Works Administration & Planning fund, as
outlined below:
FISCAL
YEAR
ACCOUNTING
UNIT -ACCOUNT#
FUND
DESCRIPTION
ACCOUNTING UNIT, ACCOUNT
DESCRIPTION
AMOUNT
Public Works Admin
Public Works — Admin Services,
FY 2019-20
10117601-62300
$91,735
& Planning
Contract Services — Professional
Amendment Total:
$91,735
All funds are budgeted and available for expenditure in Fiscal Year 2019-20.
25B-3
Amend Agreement with Chazey Partners, Inc.
February 4, 2020
Page 4
APPROVED AS TO FUNDS AND ACCOUNTS:
Nabil Saba, PE Kathryn Downs, CPA
Acting Executive Director Executive Director
Public Works Agency Finance & Management Services Agency
►691JiIUIVil
Exhibit: 1. First Amendment to Agreement — Business Process Assessment and
Implementation Plan
2. Opportunity Matrix
25B-4
Exhibit 1
FIRST AMENDMENT TO AGREEMENT WITH CHAZEY PARTNERS, INC. FOR
BUSINESS PROCESS ASSESSMENT AND IMPLEMENTATION PLAN
THIS FIRST AMENDMENT to the above -referenced agreement is entered into on February 4, 2020,
by and between Chazey Partners, Inc. ("Consultant"), and the City of Santa Ana, a charter city and
municipal corporation organized and existing under the Constitution and laws of the State of
California ("City").
RECITALS,
A. The parties entered into Agreement No. A-2018-028, dated February 20, 2018, by which
Consultant agreed to prepare a Business Process Assessment and Implementation Plan for the
City's Public Works Agency ("Agreement"). The Agreement expires on February 19, 2020, and
is currently in effect.
B. The parties wish to amend the Agreement to expand the scope of services, and increase the
maximum expenditure under the Agreement to compensate for said additional services.
The Parties therefore agree:
1. Section 1, Scope of Services, is amended to include the evaluation of business practices and
related services for the Building Maintenance, Fleet Services, Central Stores, and City Yard
divisions, as identified in Exhibit A-1 to this First Amendment.
2. Section 2.a., Compensation, is amended as follows:
• Increase the total sum to be expended under the Agreement by $91,735, as detailed in
Exhibit B-1 to this First Amendment.
• Implement a 10%retention from any future invoice payments, to be paid within forty-five
(45) days of acceptance of final deliverables.
3. Except as modified by this First Amendment, all terms and conditions of the Agreement shall
remain in full force and effect.
[Signature page to follow]
#23339v2 2 5 B _5
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement
on the date and year first written above.
ATTEST
DAISY GOMEZ
Clerk of the Council
APPROVED AS TO FORM
SONIA R. CARVALHO
City Attorney
By:V= $V.
JOON M. FUNK
Assistant City Attorney
RECOMMENDED FOR APPROVAL
NABIL SABA, PE
Interim Executive Director
Public Works Agency
CITY OF SANTA ANA
KRISTINE RIDGE
City Manager
CONSULTANT
_7 -S
Name: Phil Searle
Title: CEO, Chazey Partners
25B-6
#23339v2
EXHIBIT A-1 to First Amendment
Chazey
Partners
EXTENSION OF SUPPORT
FOR AGREEMENT A-2018-028
Prepared for City of Santa Ana Public Works Agency I May 2019
25B-7
Phase 2 Extension I City of Santa Ana Public Works Agency
1 PROPOSAL FOR EXTENSION
1.1 BACKGROUND
In February 2018, The City of Ana Public Works Agency (PWA) engaged Chazey Partners to evaluate its financial
and administrative business practices, recommend operational changes and support the implementation and
operationalization of the future state operating model and processes for all Agency functions and operations, as
well as the following business processes: cash; asset management; budget; procurement; billing; and timesheets.
The scope of work/methodology was separated into 2 phases of work. Phase 1 was focused on the evaluation of
the Agency's business practices and identifying and documenting the future state procedures and software
requirements and completed on August 23, 2018. The key deliverables of this phase included:
• Documentation of business processes, including As -Is processes and workarounds, and To -Be process
flows in swim lane format to the desktop procedure level
• Future State Recommendations with optimized, streamlined and standardized processes, including
changes to current roles and responsibilities, evaluation/recommendations on policies and procedures,
and recommendations for a leading practice financial, performance and compliance reporting framework
• Compliance with OMB Uniform Guidance, including plans for training and maintenance
• Technology assessment and specifications for any new recommended software to support the
streamlining of processes and facilitate data collection, reporting and budgeting
• If found necessary, the development of an RFP for the system selection and assistance in selecting the
new system
• Development of new operating model and organizational structure to deliver optimal future state,
achieving operational and staffing improvements while incorporating technology solution(s) and enablers
Phase 2 began in early September 2018. It's focus is on the implementation and operationalization of the new
operating model, including processes and procedures as well as recommended / approved technology
improvements. The key deliverables for this phase are:
• Build of end -to -end future state processes and procedures to effectively align with technology
improvements, including hand-offs and exception documentation and testing
• Implementation of OMB Uniform guidance training and maintenance plans together with the new
procedures and processes, ensuring these are operationalized and working compliantly
• Operationalization of future state, including comprehensive implementation plans with a detailed
deployment approach to support training, the rollout of technology and processes, go -live, stabilization
and optimization
1.2 ADDITIONAL SUPPORT
With the recent realignment of Fleet, Building Maintenance and Stores under the PWA, both the team and the
administrative responsibilities have expanded. The inclusion of this work exceeded the ability to complete all
Phase 2 activities within the currently approved budget. In addition, Chazey has identified up to 24 opportunities
for process improvement that can be delivered as a proof of concept to PWA with training and support for
implementation by PWA.
Chazey Partners
r - •
Exhibit B-1 to First Amendment
Invoice No:
Invoice Date:
Agreement No:
FAO:
Invoice To:
City of Santa Ana
Executive Director
Public Works Agency
20 Civic Center Plaza
Santa Ana, CA 92701
10737
March 1, 2018
A-2018-028
Margaret Mercer
INVOICE
Billing for project fees for City of Santa Ana:
Phil Searle
Craig Ackerman
Robert Towle
Robert Jones
Ronan Decry
Janey Jux
Kim Bernal
Robert Salawa-Adam
Lindsey LaGesse
Jen Rudnicki
Total Days
Engagement Partner
Sr. Project Manager
Subject Matter Expert
BPI Manager
RPA Developer
BPI Manager
BPI Manager
BPI Analyst
BPI Analyst
BPI Analyst
Chazey Partners Inc.
52 Chestnut Avenue
Los Gatos, CA 95030
US S2�21,7
Nov-18 Dec-18
Jan-19 TOTAL
0.31
0.69 1.00
2.66
2.00 4.66
11.80
12.31 24.11
- 2.50
6.78 9.28
7.00
11.50 18.50
1.75 3.88
- 6.78
5.63
6.78
- 23.52 37.16
69.96
Fees at Rates per Consultant
- 31,943
47,149
79,092
Expenses
1,480 4,910
6,253
12,643
Total Invoice (US$)
1,480 36,853
53,402
91,735
Terms: Due Within 30 Days Please
Please send a check to Chazey Partners Inc. at 52 Chestnut Avenue, Los Gatos, CA 95030 or
wire the money in US$ direct to:
Beneficiary: Chazey Partners Inc.
Bank Name: First Republic Bank
Bank Address: 275 Los Gatos Saratoga Road, Los Gatos, CA 95030
Wire Routing Number: 321081669
ACH Routing Number: 321081669
SWIFT Address: FRBBUS6S
Account Number: 80000595265
Chaney Partners Inc.
Company Registered Number: 3100351
52 Chestnut Avenue, Los Gatos, CA 95030
25B-9
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