HomeMy WebLinkAbout09 - Organizational Review of the Utilities DepartmentCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 9
March 10, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Utilities Department
George Murdoch, Utilities Director
949/644 -3011 orgmurdoch @city.newport- beach.ca.us
SUBJECT: Contract with OMTS for Organizational Review of the Utilities
Department, Budget Amendment
ISSUE:
Should the City enter into a contract with Ohlund Management & Technical Services
(OMTS) to do an organizational review of the Utilities Department?
RECOMMENDATION:
1. Authorize the City Manager to sign a professional services agreement with OMTS in
an amount not to exceed $40,000 to perform an organizational review of the Utilities
Department.
2. Adopt Budget Amendment #BA -_ in the amount of $40,000 (from water and
wastewater enterprise system reserves to Utilities' professional and technical
services account).
DISCUSSION:
The Utilities Department provides water, wastewater, and electrical services to the
communities of Newport Beach. Additionally, the Utilities Department oversees the
operation and maintenance of the City owned oil wells. From time to time, City staff
believes that it is appropriate to have outside experts review some of our functions to
ensure that we are meeting our goal to serve the public in the best manner possible.
With recent retirements, vacancies and changes in administration, staff believes it is
time to have someone from the outside, with an expertise in utilities functions, review
what we do in Utilities, how we do it, and with what level of personnel.
Ohlund Management & Technical Services (OMTS) performed a department wide
organizational review of the Utilities Department in 2006. As a result of that study, staff
implemented some changes such as the consolidation of two positions into one to
Contract with OMTS
March 10, 2009
Page 2
provide better customer service, the creation of the Water Conservation Coordinator to
expand our conservation efforts, and the creation of the Water Quality Coordinator to
assure our water meets or exceeds all Federal, State, and Local regulations.
Some of the important issues that will be addressed in this review are:
• What program functions are appropriate to be performed by the Administrative Unit?
• What is the ideal staffing level for the Administrative Unit?
• What tasks /responsibilities are currently being performed by the Department?
• Are tasks /responsibilities assigned the appropriate priority, and if not, what should the
priority be?
• What changes and /or additional resources are required to appropriately address as many
functions as possible?
• What should the top management structure of the Department be?
• What position(s) should provide direct backup to the Director and Chief Operator?
We enter the review period with no preconceptions about its outcome. We look forward
to reading whatever conclusions the consultant arrives at given the consultant's
expected level of expertise in reviewing Utilities functions.
Funding. Funding for this Review is available within the Utilities Department's reserves
assuming the Council approves a Budget Amendment transferring these funds to the
Department's professional and technical services account.
This Agenda Item. This agenda item asks the City Council to authorize the City
Manager to execute a Professional Services Agreement approved by the City Attorney's
Office and based on the attached proposal by OMTS. The contract would authorize the
expenditure of up to $40,000. The Utilities Department Director, George Murdoch will
oversee the project.
Environmental Review: The City Council's approval of this Agenda Item does not
require environmental review.
Public Notice: This agenda item may be noticed according to the Brown Act (72 hours
in advance of the public meeting at which the City Council considers the item).
Submitted by:
eor a Mu doch
Utilities Director
Attachments: PSA, OMTS Proposal, Budget Amendment — BA #
PROFESSIONAL SERVICES AGREEMENT WITH
LISA OHLUND MANAGEMENT & TECHNICAL SERVICES
FOR UTILITIES ORGANIZATIONAL REVIEW
THIS AGREEMENT is made and entered into as of this _ day of
2009, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation
( "City "), and LISA OHLUND MANAGEMENT & TECHNICAL SERVICES, a Sole
Proprietorship, whose address is 30111 Branding Iron Road, San Juan Capistrano,
California, 92675 ( "Consultant ") and is made with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of Califomia.and the Charter of City.
B. City is planning to perform an Organizational Review of the Utilities Department.
C. City desires to engage Consultant to provide management consulting services to
conduct the Organizational Review ( "Project').
D. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Consultant for purposes of Project shall be Lisa Ohlund.
F. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on the 30th day of September, 2009, unless terminated earlier as set
forth herein.
2. SERVICES TO BE PERFORMED
Consultant shall diligently perform all the services described in the Scope of
Services attached hereto as Exhibit A and incorporated herein by reference. The
City may elect to delete certain tasks of the Scope of Services at its sole
discretion.
3. TIME OF PERFORMANCE
Time is of the essence in the performance of services under this Agreement and
Consultant shall perform the services in accordance with the scope of services
included in Exhibit A. The failure by Consultant to strictly adhere to the schedule
may result in termination of this Agreement by City.
Notwithstanding the foregoing, Consultant shall not be responsible for delays due
to causes beyond Consultant's reasonable control. However, in the case of any
such delay in the services to be provided for the Project, each party hereby
agrees to provide notice to the other party so that all delays can be addressed.
3.1 Consultant shall submit all requests for extensions of time for performance
in writing to the Project Administrator not later than ten (10) calendar days
after the start of the condition that purportedly causes a delay. The Project
Administrator shall review all such requests and may grant reasonable
time extensions for unforeseeable delays that are beyond Consultant's
control.
3.2 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the
circumstances, by either telephone, fax, hand - delivery or mail.
4. COMPENSATION TO CONSULTANT
City shall pay Consultant for the services on a time and expense not -to- exceed
basis in accordance with the provisions of this Section and the Schedule of
Billing Rates attached hereto as Exhibit B and incorporated herein by reference.
Consultant's compensation for all work performed in accordance with this
Agreement, including all reimbursable items, shall not exceed Forty Thousand
Dollars and 00/100 ($40,000.00) without prior written authorization from City.
No billing rate changes shall be made during the term of this Agreement without
the prior written approval of City.
4.1 Consultant shall submit monthly invoices to City describing the work
performed the preceding month. Consultant's bills shall include the name
of the person who performed the work, a brief description of the services
performed and /or the specific task in the Scope of Services to which it
relates, the date the services were performed, the number of hours spent
on all work billed on an hourly basis, and a description of any
reimbursable expenditures. City shall pay Consultant no later than thirty
(30) days after approval of the monthly invoice by City staff.
4.2 City shall reimburse Consultant only for those costs or expenses
specifically approved in this Agreement, or specifically approved in writing
in advance by City. Unless otherwise approved, such costs shall be
limited and include nothing more than the following costs incurred by
Consultant:
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A. Approved reproduction charges.
B. Actual costs and /or other costs and /or payments specifically
authorized in advance in writing and incurred by Consultant
in the performance of this Agreement.
4.3 Consultant shall not receive any compensation for Extra. Work performed
without the prior written authorization of City. . As used herein, "Extra
Work" means any work that is determined by City to be necessary for the
proper completion of the Project, but which is not included within the
Scope of Services and which the parties did not reasonably anticipate
would be necessary at the execution of this Agreement. Compensation
for any authorized Extra Work shall be paid in accordance with the
Schedule of Billing Rates as set forth in Exhibit B.
4.4 Notwithstanding any other provision of this Agreement, when payments
made by City equal 90% of the maximum fee provided for in this
Agreement, no further payments shall be made until City has accepted the
final work under this Agreement.
5. PROJECT MANAGER
Consultant shall designate a Project Manager, who shall coordinate all phases of
the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Consultant has designated LISA OHLUND to
be its .Project Manager. Consultant shall not remove or reassign the Project
Manager or any personnel listed in Exhibit A or assign any new or replacement
personnel to the Project without the prior written consent of City. City's approval
shall not be unreasonably withheld with respect to the removal or assignment of
non -key personnel.
Consultant, at the sole discretion of City, shall remove from the Project any of its
personnel assigned to the performance of services upon written request of City.
Consultant warrants that it will continuously furnish the necessary personnel to
complete the Project on a timely basis as contemplated by this Agreement.
6. ADMINISTRATION
This Agreement will be administered by the Utilities Department. GEORGE
MURDOCH, Utilities Director shall be the Project Administrator and shall have
the authority to act for City under this Agreement. The Project Administrator or
his authorized representative shall represent City in all matters pertaining to the
services to be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
In order to assist Consultant in the execution of its responsibilities under this
Agreement, City agrees to, where applicable, provide access to, and upon request
of Consultant, one copy of all existing relevant information on file at City. City will
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provide all such materials in a timely manner so as not to cause delays in
Consultant's work schedule.
8. STANDARD OF CARE
8.1 All of the services shall be performed by Consultant or under Consultant's
supervision. Consultant represents that it possesses the professional and
technical personnel required to perform the services required by this
Agreement, and that it will perform all services in a manner commensurate
with community professional standards. All services shall be performed
by qualified and experienced personnel who are not employed by City, nor
have any contractual relationship with City. By delivery of completed
work, Consultant certifies that the work conforms to the requirements of
this Agreement and all applicable federal, state and local laws and the
professional standard of care.
8.2 Consultant represents and warrants to City that it has, shall obtain, and
shall keep in full force in effect during the term hereof, at its sole cost and
expense, all licenses, permits, qualifications, insurance and approvals of
whatsoever nature that is legally required of Consultant to practice its
profession. Consultant shall maintain a City of Newport Beach business
license during the term of this Agreement.
8.3 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by
reason of strikes, lockouts, accidents, or acts of God, or the failure of City
to fumish timely information or to approve or disapprove Consultant's work
promptly, or delay or faulty performance by City, contractors, or
governmental agencies.
9. HOLD HARMLESS
To the fullest extent permitted by law, Consultant shah indemnify, defend and
hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers, and employees (collectively, the "Indemnified Parties ") from and
against any and all claims (including, without limitation,: claims for bodily injury,
death or damage to property), demands, obligations, damages, actions, causes
of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses
(including, without limitation, attorneys fees, disbursements and court costs) of
every kind and nature whatsoever (individually, a Claim; collectively, "Claims "),
which may arise from or in any manner relate (directly or indirectly) to any breach
of the terms and conditions of this Agreement, any work performed or services
provided under this Agreement including, without limitation, defects in
workmanship or materials or Consultant's presence or activities conducted on
the Project (including the negligent and /or willful acts, errors and/or omissions of
Consultant, its principals, officers,. agents, employees, vendors, suppliers,
consultants, subcontractors, anyone employed directly or indirectly by any of
them or for whose acts they may be liable or any or all of them).
Notwithstanding the foregoing, nothing herein shall be construed to require
Consultant to indemnify the Indemnified Parties from any Claim arising from the
sole negligence or willful misconduct of the Indemnified,Parties. Nothing in this
indemnity shall be construed as authorizing any award of attorney's fees in any
action on or to enforce the terms of this Agreement. This indemnity shall apply to
all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitation upon the amount of
indemnification to be provided by the Consultant.
10. INDEPENDENT CONTRACTOR
It is understood that City retains Consultant on an independent contractor basis
and Consultant is not an agent or employee of City. The manner and means of
conducting the work are under the control of Consultant, except to the extent
they are limited by statute, rule or regulation and the expressed terms of this
Agreement. Nothing in this Agreement shall be deemed to constitute approval
for Consultant or any of Consultant's employees or agents, to be the agents or
employees of City. Consultant shall have the responsibility for and control over
the means of performing the work, provided that Consultant is in compliance with
the terms of this Agreement. Anything in this Agreement that may appear to give
City the right to direct Consultant as to the details of the performance or to
exercise a measure of control over Consultant shall mean only that Consultant
shall follow the desires of City with respect to the results of the services.
11. COOPERATION
Consultant agrees to work closely and cooperate fully with City s designated
Project Administrator and any other agencies that may have jurisdiction or
interest in the work to be performed. City agrees to cooperate with the
Consultant on the Project.
12. CITY POLICY
Consultant shall discuss and review all matters relating to policy and Project
direction with City's Project Administrator in advance of all critical decision points
in order to ensure the Project proceeds in a manner consistent with City goals
and policies.
13. PROGRESS
Consultant is responsible for keeping the Project Administrator and/or his /her
duly authorized designee informed on a regular basis regarding the status and
progress of the Project, activities performed and planned, and any meetings that
have been scheduled or are desired.
14. INSURANCE
Without limiting Consultant's indemnification of City, and [)nor to commencement
of work. Consultant shall obtain, provide and maintain at its own expense during
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the term of this Agreement, a policy or policies of liability insurance of the type
and amounts described below and in a form satisfactory to City.
A. Certificates of Insurance. Consultant shall provide certificates of
insurance with original endorsements to City as evidence of the insurance
coverage required herein. Insurance certificates must be approved by
City's Risk Manager prior to commencement of performance or issuance
of any permit. Current certification of insurance shall be kept on file with
City at all times during the term of this Agreement.
B. Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
C. Acceptable Insurers. All insurance policies shall be issued by an
insurance company currently authorized by the Insurance Commissioner
to transact business of insurance in the State of California, with an
assigned policyholders' Rating of A (or higher) and Financial Size
Category Class VII (or larger) in accordance with the latest edition of
Best's Key Rating Guide, unless otherwise approved by the City's Risk
Manager.
D. Coverage Requirements.
i. Workers' Compensation Coverage. Consultant shall
maintain Workers' Compensation Insurance and Employer's
Liability Insurance for his or her employees in accordance with the
laws of the State of California. In addition,: Consultant shall require
each subcontractor to similarly maintain Workers' Compensation
Insurance and Employer's Liability Insurance in accordance with
the laws of the State of California for all of the subcontractor's
employees. Any notice of cancellation or non - renewal of all
Workers' Compensation policies must be received by City at least
thirty (30) calendar days (10 calendar days written notice of non-
payment of premium) prior to such change. The insurer shall agree
to waive all rights of subrogation against City, its officers, agents,
employees and volunteers for losses arising from work performed
by Consultant for City.
ii. General Liability Coverage. Consultant shall maintain
commercial general liability insurance in an amount not less than
one million dollars ($1,000,000) per occurrence for bodily injury,
personal injury, and property damage, including without limitation,
contractual liability. If commercial general liability insurance or
other form with a general aggregate limit is, used, either the general
aggregate limit shall apply separately to the work to be performed
under this Agreement, or the general aggregate limit shall be at
least twice the required occurrence limit.
iii. Automobile Liability Coverage. Consultant shall maintain
automobile insurance covering bodily injury and property damage
for all activities of the Consultant arising out of or in connection with
work to be performed under this Agreement, including coverage for
any owned, hired, non -owned or rented vehicles, in an amount not
less than one million dollars ($1,000,000);combined single limit for
each occurrence.
E. Endorsements. Each general liability and automobile liability insurance
policy shall be endorsed with the following specific language:
L The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insureds with
respect to liability arising out of work perf n-ned by or on behalf of
the Consultant.
ii. This policy shall be considered primary insurance as respects to
City, its elected or appointed officers, officials, employees, agents
and volunteers as respects to all claims, I'osses, or liability arising
directly or indirectly from the Consultant's operations or services
provided to City. Any insurance maintained by City, including any
self- insured retention City may have, shall be considered excess
insurance only and not contributory with =the insurance provided
hereunder.
iii. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with
respect to the limits of liability of the insuring company.
iv. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
V. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to City, its elected or appointed
officers, officials, employees, agents or volunteers.
vi. The insurance provided by this policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits, by either party
except after thirty (30) calendar days (10 calendar days written
notice of non- payment of premium) written notice has been
received by City.
F. Timely Notice of Claims. Consultant shall give. City prompt and timely
notice of claim made or suit instituted arising out of or resulting from
Consultant's performance under this Agreement.
G. Additional Insurance. Consultant shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of
the work.
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15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the services to be
provided under this Agreement shall not be assigned, transferred contracted or
subcontracted out without the prior written approval of City. Any of the following
shall be construed as an assignment: The sale, assignment, transfer or other
disposition of any of the issued and outstanding capital stock of Consultant, or of
the interest of any general partner or joint venturer or syndicate member or
cotenant if Consultant is a partnership or joint- venture or syndicate or cotenancy,
which shall result in changing the control of Consultant. Control means fifty
percent (50 %) or more of the voting power, or twenty -five percent (25 %) or more
of the assets of the corporation, partnership or joint-venture.
16. SUBCONTRACTING
The parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of
Consultant. Assignments of any or all rights, duties or obligations of the
Consultant under this Agreement will be permitted onlywith the express written
consent of City. Consultant shall not subcontract any portion of the work to be
performed under this Agreement without the prior writtenll'authorization of City.
17. OWNERSHIP OF DOCUMENTS
Each and every report, draft, map, record, plan, document and other writing
produced (hereinafter "Documents "), prepared or caused to be prepared by
Consultant, its officers, employees, agents and subcontractors, in the course of
implementing this Agreement, shall become the exclusive property of City, and
City shall have the sole right to use such materials in its discretion without further
compensation to Consultant or any other party. Consultant shall, at Consultant's
expense, provide such Documents to City upon .prior written request.
Documents, including drawings and specifications, prepared by Consultant
pursuant to this Agreement are not intended or represented to be suitable for
reuse by City or others on any other project. Any use of completed Documents
for other projects and any use of incomplete Documents without specific written
authorization from Consultant will be at City's sole risk and without liability to
Consultant. Further, any and all liability arising out of changes made to
Consultant's deliverables under this Agreement by City or persons other than
Consultant is waived against Consultant and City assumes full responsibility for
such changes unless City has given Consultant prior notice and has received
from Consultant written consent for such changes.
18. COMPUTER DELIVERABLES
All written documents shall be transmitted to City in the City's latest adopted
version of Microsoft Word and Excel.
19. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the services in this Agreement, shall be kept
confidential unless City authorizes in writing the release of information.
20. OPINION OF COST
Any opinion of the construction cost prepared by Consultant represents his /her
judgment as a design professional and is supplied for the general guidance of
City. Since Consultant has no control over the cost of labor and material, or over
competitive bidding or market conditions, Consultant does not guarantee the
accuracy of such opinions as compared to contractor bids or actual cost to City.
21. INTELLECTUAL PROPERTY INDEMNITY
The Consultant shall defend and indemnify City, its agents, officers,
representatives and employees against any and all liability, including costs, for
infringement of any United States' letters patent, trademark, or copyright
infringement, including costs, contained in Consultant's drawings and
specifications provided under this Agreement.
22. RECORDS
Consultant shall keep records and invoices in connection with the work to be
performed under this Agreement. Consultant shall maintain complete and
accurate records with respect to the costs incurred under this Agreement and
any services, expenditures and disbursements charged to City, for a minimum
period of three (3) years, or for any longer period required by law, from the date
of final payment to Consultant under this Agreement. All such records and
invoices shall be clearly identifiable. Consultant shall allow a representative of
City to examine, audit and make transcripts or copies of such records and
invoices during regular business hours. Consultant shall 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 to Consultant under this
Agreement.
23. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction
of the dispute with respect to such payment. Such withholding shall not be
deemed to constitute a failure to pay according to the terms of this Agreement.
Consultant shall not discontinue work as a result of such withholding. Consultant
shall have an immediate right to appeal to the City Manager or his /her designee
with respect to such disputed sums. Consultant shall be entitled to receive
interest on any withheld sums at the rate of return that City earned on its
investments during the time period, from the date of withholding of any amounts
found to have been improperly withheld.
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24. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than what
would have resulted if there were not errors or omissions in the work
accomplished by Consultant, the additional design, construction and /or
restoration expense shall be bome by Consultant. Nothing in this paragraph is
intended to limit City s rights under the law or any other sections of this
Agreement.
25. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Consultants in connection with the
Project.
26. CONFLICTS OF INTEREST
The Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act "), which (1) requires such
persons to disclose any financial interest that may foreseeably be materially
affected by the work performed under this Agreement, and (2) prohibits such
persons from making, or participating in making, decisions that will foreseeably
financially affect such interest.
If subject to the Act, Consultant shall conform to all requirements of the Act.
Failure to do so constitutes a material breach and is grounds for immediate
termination of this Agreement by City. Consultant shall indemnify and hold
harmless City for any and all claims for damages resulting from Consultant's
Violation of this Section.
27. NOTICES
All notices, demands, requests or approvals to be given under the terms of this
Agreement shall be given in writing, and conclusively shall be deemed served
when delivered personally, or on the third business day after the deposit thereof
in the United States mail, postage prepaid, first -class mail, addressed as
hereinafter provided. All notices, demands, requests or approvals from
Consultant to City shall be addressed to City at:
Attn: George Murdoch
Utilities Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA, 92663
Phone: 949/644 -3011 Fax 949/723 -3522
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All notices, demands, requests or approvals from CITY to Consultant shall be
addressed to Consultant at:
Attention: Lisa Ohlund
Lisa Ohlund Management & Technical Services (OMTS)
30111 Branding Iron Road
San Juan Capistrano, California 92675
Phone: 949 - 661 -9395
28. TERMINATION
In the event that either parry fails or refuses to perform any of the provisions of
this Agreement at the time and in the manner required, that party shall be
deemed in default in the performance of this Agreement. If such default is not
cured within a period of two (2) calendar days, or if more than two (2) calendar
days are reasonably required to cure the default and the defaulting party fails to
give adequate assurance of due performance within two (2) calendar days after
receipt of written notice of default, specifying the nature of such default and the
steps necessary to cure such default, and thereafter diligently take steps to cure
the default, the non - defaulting party may terminate the Agreement forthwith by
giving to the defaulting party written notice thereof.
Notwithstanding the above provisions, City shall have the right, at its sole
discretion and without cause, of terminating this Agreement at any time by giving
seven (7) calendar days prior written notice to Consultant. In the event of
termination under this Section, City shall pay Consultant for services satisfactorily
performed and costs incurred up to the effective date of termination for which
Consultant has not been previously paid. On the effective date of termination,
Consultant shall deliver to City all reports, Documents and other information
developed or accumulated in the performance of this Agreement, whether in draft
or final form.
29. COMPLIANCE WITH ALL LAWS
Consultant shall at its own cost and expense comply with all statutes,
ordinances, regulations and requirements of all governmental entities, including
federal, state, county or municipal, whether now in force or hereinafter enacted.
In addition, all work prepared by Consultant shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be
subject to approval of the Project Administrator and City.
30. WAIVER
A waiver by either party of any breach, of any term, covenant or condition
contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
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31. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the parties hereto, and all preliminary negotiations
and agreements of whatsoever kind or nature are merged herein. No verbal
agreement or implied covenant shall be held to vary the provisions herein.
32. CONFLICTS OR INCONSISTENCIES
In the event there are any conflicts or inconsistencies between this Agreement
and the Scope of Services or any other attachments attached hereto, the terms
of this Agreement shall govern.
33. INTERPRETATION
The terms of this Agreement shall be construed in accordance with the meaning
of the language used and shall not be construed for or against either party by
reason of the authorship of the Agreement or any other rule of construction which
might otherwise apply.
34. AMENDMENTS
This Agreement may be modified or amended only by a written document
executed by both Consultant and City and approved as to form by the City
Attorney.
35. SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of
this Agreement shall continue in full force and effect.
36. CONTROLLING LAW AND VENUE
The laws of the State of California shall govern this Agreement and all matters
relating to it and any action brought relating to this Agreement shall be
adjudicated in a court of competent jurisdiction in the County of Orange.
37. EQUAL OPPORTUNITY EMPLOYMENT
Consultant represents that it is an equal opportunity employer and it shall not
discriminate against any subcontractor, employee or applicant for employment
because of race, religion, color, national origin, handicap, ancestry, sex or age.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED AS TO FORM:
By:
yne Elea cham ,
Assistant City Aft ney
for the City of Newport Beach
ATTEST:
By:
Leilani Brown,
City Clerk
Attachments:
Exhibit A - Scope of Services
Exhibit B - Billing Rate
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CITY OF NEWPORT BEACH,
A Municipal Corporation
By:
Homer Bludau, City Manager
for the City of Newport Beach
CONSULTANT:
By:
Lisa Ohlund, Principal
for OMTS
Lisa Ohlund Management & Technical Services
30111 Branding Iron Road, San Juan Capistrano, CA 92675
February 18, 2009
Mr. Dave Kiff
Assistant City Manager
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Phone: 949 - 661 -9395
IXHIBQ'A'
Subject: Proposal to Assistance with Utilities Department Administrative Issues
Dear Mr. Kiff:
Lisa Ohlund Management & Technical Services (OMTS) is pleased to submit this proposal to perform
the subject professional services. We have structured this letter proposal to reflect the format used in
past submittals to the city.
Identity of Firm and Proiect Office
Lisa Ohlund Management & Technical Services
A Sole Proprietorship
30111 Branding Iron Road
San Juan Capistrano, California 92675
(949) 661 -9395 (Telephone)
(949) 661 -9395 (Fax)
Email: omts @cox.net
Contact: Lisa Ohlund
Firm History, Size and Experience
OMTS was established in July 1995 by founding principal, Lisa Ohlund. The firm has occupied office
space in San Juan Capistrano, California since 1995. Ms. Ohlund is the firm's sole employee and
supports the firm's current workload.
Related Firm Experience
Information regarding our experience is appended to this proposal as an attachment.
Proiect Approach
The City desires to retain a consultant to assist with certain personnel related issues and other
questions related to the Division's core functions. These items have been grouped into four specific
tasks and our approach to addressing them is discussed below:
Mr. Dave Kiff
Proposal to Perform Organizational Review
February 18, 2009
Task 1: Administrative Issues — The City desires the answers to the following questions:
• What program functions are appropriate to be performed by the Administrative Unit?
• What is the ideal staffing level for the Administrative Unit?
To complete this task, information would be obtained through interviews with employees and
management/other Units, examination of records and through our experience with other cities /agencies.
A draft memorandum will be prepared and submitted to the Utilities Director and /or the Assistant City
Manager that includes a discussion of our findings and recommendations.
Task 2: Departmental Risk Analysis — The City desires the answers to these questions:
• What tasks /responsibilities are currently being performed by the Department?
• Are these assigned the appropriate priority, and if not, what should the priority be?
• What changes and /or additional resources are required to appropriately address as many
functions as possible?
Through a review of the Department Mission Statement, regulatory requirements, current practices,
interviews with staff, risk analysis and our best professional judgment, we will develop a Function Priority
List that includes our recommended ranking of the functions the Department as compared to the current
priority. In a memorandum, we will discuss the rationale for its priority placement, where resources are
allocated currently, if they are appropriately allocated, if additional resources are required, identification
of the resource and where it should be allocated.
Task 3: Departmental Management Structure — The City desires the answer to the questions:
• What should the top management structure of the Department be?
• What position(s) should provide direct backup to the Director?
Concurrent with the preceding tasks, the current organizational and management structure of the
Department would be reviewed and evaluated based upon interviews with the Utility Director and the
Assistant City Manager, information developed in the preceding tasks, the structure of similar
organizations and our best professional judgment. A memorandum will be prepared that includes a
discussion of our findings and recommendations.
Proposed Schedule
We anticipate that this work will be concluded within a 90 -day time period; however, if additional time is
required, we would advise the City within 20 calendar days of the expiration of the initial 90 day period,
and request an extension. Work on the project would commence on February 18, 2009.
Project Cost
OMTS proposes to discount our $165 per hour rate to $130 per hour for the entirety of this project. It is
estimated that we would allocate approximately 20 hours per week to this effort for the 90-day period.
References
Irvine Ranch Water District
Mr. Dave Kiff
Proposal to Perform Organizational Review
Mr. Paul Jones
15600 Sand Canyon Avenue
Irvine, CA 92618
(949) 453 -5300
City of Livermore
Mr. Darren Greenwood
Water Resources Department
101 W. Jack London Boulevard
Livermore, CA 94550
(925) 960 -8100
Mr. Bob Kellison
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
(714) 593 -4601
Mr. Mike Markus
Orange County Water District
10500 Ellis Avenue
Fountain Valley, CA 92708
(714) 378 -3305
February 18, 2009
Again, thank you for the opportunity to submit this proposal. I look forward to discussing this project with
you at your earliest convenience.
Sincerely,
,r � �t:
r
Lisa Ohlund
Principal
Attachments — Attachment A — Experience
OHLUND MANAGEMENT & TECHNICAL SERVICES
SCHEDULE OF HOURLY BILLING RATES
Effective January 1, 2000 through December 31, 2009
MANAGEMENT
Principal
LITIGATION
Principal
TECHNICAL SUPPORT (TELEPHONIC)
General Management Issues
Specific Technical Issues Requiring Research
Direct expenses billed at cost.
EXHIBIT "B'
HOURLY RATE
i465:98-
tI3o,ac)
$300.00
$75.00
$55.00
MARCH 16TH TENTATIVE COUNCIL AGENDA
4:30 p.m. STUDY SESSION
Sharon
Homer
Leilani
Potential Smoking Ban in Public Places
Current Economic Trends
7:00 p.m. COUNCIL MEETING
Presentation
City Attorney
Amendment to Nuisance Abatement Ordinance second reading)
city Mana er
Approval of CVB Contract
Formation of Tourism BID
Appeal of Use Permit — 1216 West Balboa Boulevard
Appeal of Hearing Officer's Continuance — 1115 West Balboa Boulevard
Amendment #1 to the Settlement Agreement with SLBTS
E AC Appointment
General Services
Award of Non - Exclusive Solid Waste Collection Franchise to A2Z Recycling Services, Inc. Public
Hearing and Second Reading of Ordinance
Planning
Planning Commission Agenda
Hyatt Regency Hotel Expansion and Timeshare Project second reading)
Formation of an Ad Hoc Committee for Negotiating the Conexant and Koll Company Development
Agreements
Appeal of Planning Commission Denial for Parcel Map No. NP2008 -12 and Code Amendment
No.CA2008 -001 for the Property at 627 West Bay
Public Works
Community Youth Center Parking Lot Rehabilitation- Award of Contract
Oasis Senior Center Rebuild — Award of Contract
Public Hearing to Approve Revised Engineer's Report and Amended Boundary Map AD 19
Approval of Amendment No. 3 to Professional Services Agreement with Richard Edmonston
Utilities
BA
Approval of PSA with Ohlund Management &.Technical Services for Utilities Organizational
Review
City of Newport Beach
.BUDGET AMENDMENT
2008 -09
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
PX from enterprise system reserves
EXPLANATION:
NO. BA- 09BA -041
AMOUNT: $40,000.00
Increase in Budgetary Fund Balance
X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from water and wastewater fund balances for a PSA with Ohlund Management
and Technical Services to perform an organizational review of the Utilities Department.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
500 3605 Water Fund - Fund Balance
530 3605 Sewer Fund - Fund Balance
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:
4Finacta
Signed:
Signed:
Description
Description
5500 Utilities - Water
8080 Services Professional & Technical NOC
5600 Utilities - Wastewater
8080 Services Professional & Technical NOC
Approval:
Administrative
Services Director
Manager
City Council Approval: City Clerk
Amount
Debit Credit
$30,000.00 *
$10,000.00 *
Automatic
$30,000.00
$10,000.00
Date
Da
Date