HomeMy WebLinkAboutR-2014-115 Utility Billing Business Process (Phase II) Agreement with FCS Group RESOLUTION NO. R- 2014 -115
A RESOLUTION authorizing the City Manager to execute an agreement between
FCS Group and the City of Yakima for consulting services.
WHEREAS, the City of Yakima Utilities Division desires to hire a consultant to
perform phase II of the Utility Billing Business Process; and
WHEREAS, the Business Process analysis performed by Barry Strock
Consulting Associates September 2013 determined the next phase should be to review
current Policies and Procedures, and
WHEREAS, the Purchasing Department and the Finance Department Utility
Services, determined that FCS Group has the experience and expertise to review the
Policies and Procedures, in accordance with the City's requirements; and
WHEREAS, competition is not required for consultant contracts, and
WHEREAS, the Purchasing Department and the Finance Department
successfully completed negotiations with FCS Group for the necessary agreements with
both entities; now, therefore:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is herby authorized to execute the attached professional
services agreement with FCS Group to review Policies and Procedures and determine
improvement areas of the operational processes used to conduct business and
transactions.
ADOPTED BY THE CITY COUNCIL this 16 day of September, 2014.
1°-"i
Micah Cawley, ayor
ATTEST:
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.B.
For Meeting of September 16, 2014
ITEM TITLE: Resolution authorizing an agreement with FCS Group for
Phase II of the Utility Billing Business Process
SUBMITTED BY: Cindy Epperson, Director of Finance and Budget
James Dean, Utility Services Manager
SUMMARY EXPLANATION:
On September 17, 2013, staff requested to hire a consultant to perform a Business Process
Analysis (BPA) Barry Strock Consulting Associates was hired and performed that analysis with
the following conclusion: "BSCA is confident that if Yakima takes the initiative to look clear -eyed
at and invest in its business practices, policies and procedures, organization and management
flows, and its technology solutions, it can connect departments and divisions of the city in a way
that provides the business acumen and customer service that staff, citizens, administration, and
elected officials all want "
BSCA determined the next step or phase should be to review current Policies and Procedures.
Since competition is not required on consultant contracts, staff reviewed organizations that
would be able to do this work FCS Group has worked with the city on several similar projects
and is familiar with many of the City's processes regarding utility billing. Because of
their experience with the City, as well as expertise in the field, they were selected to review the
Policies and Procedures.
FCS Group will determine where and how to improve business operational processes to
conduct the business and transactions and define divisional /departmental accountability and the
consequences for not reaching goals. FCS Group will produce a written formal document
addressing current policies and practices and determine needed changes which will then
produce a "needs" document which will be used to evaluate new utility billing software which is
will be conducted in phase III, currently targeted to begin in late spring of 2015. At this point in
time, we project to have salary savings in this area to cover the contract cost of $41,460
Resolution: X Ordinance:
Other (Specify):
Contract: X Contract Term:
Start Date: End Date:
Item Budgeted: Yes Amount: $41,460
Funding Source /Fiscal
Impact:
Strategic Priority: Public Trust and Accountability
Insurance Required? Yes
Mail to: FCS Group, Redmond Town Center, 7525 166th Avenue
NE, Suite D -215, Redmond, WA 98052
Phone: 425 - 867 -1802
APPROVED FOR
SUBMITTAL: City Manager
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
❑ Resolution FCS Group 8/27/2014 Cover Memo
❑ FCS Group Contract 9/9/2014 Cover Memo
❑ FCS Group - Exhibit A 8/27/2014 Cover Memo
❑ FCS Group - Exhibit B 8/27/2014 Cover Memo
For City of Yakima Use Onty: AGREEMENT
Contract N.. ' Lf i V BETWEEN
Project No
Resolution No !0: 'fir/ I CITY OF YAKIMA, WASHINGTON
RFQP No
AND
FCS GROUP
FOR PROFESSIONAL SERVICES
THIS AGREEMENT, made and entered into on this 117 day of September, 2014, by and
between the City of Yakima, Washington, a municipal corporation with its principal office at 129 North
Second Street, Yakima, WA 98901, hereinafter referred to as "CITY ", and FCS GROUP. with its principal
office 7525 166 Avenue NE, Suite D -215, Redmond, WA 98052 hereinafter referred to as
"CONSULTANT "; said corporation are licensed and registered to do business in the State of Washington,
and will provide services under this Agreement for Utility Billing Process Analysis, hereinafter referred to
as "SERVICES" on behalf of the City of Yakima.
WITNESSETH:
RECITALS
WHEREAS, CITY desires to retain the CONSULTANT to provide services described in this
Agreement and subsequent Amendments thereto; and
WHEREAS, CONSULTANT represents that it has available and offers to provide personnel with
knowledge and experience necessary to satisfactorily accomplish the work within the required time and that
it has no conflicts of interest prohibited by law from entering into this Agreement;
NOW, THEREFORE, CITY and CONSULTANT agree as follows:
SECTION 1 INCORPORATION OF RECITALS
1.1, The above recitals are incorporated into these operative provisions of the Agreement.
SECTION 2 SCOPE OF SERVICES
2.1 CONSULTANT agrees to perform those services described hereafter. Unless modified in writing
by both parties, duties of CONSULTANT shall not be construed to exceed those services
specifically set forth herein.
2.2 CONSULTANT shall use its best efforts to maintain continuity in personnel and shall assign, FCS
Group as Consultant -in- Charge throughout the term of this Agreement unless other personnel are
approved by the CITY.
2.3 Basic Services: CONSULTANT agrees to perform those tasks described in Exhibit A, entitled
"Scope of Work" (WORK) which is attached hereto and made a part of this Agreement as if fully
set forth herein.
2.4 Additional Services: CITY and CONSULTANT agree that not all WORK to be performed by
CONSULTANT can be defined in detail at the time this Agreement is executed, and that
additional WORK related to the Project and not covered in Exhibit A may be needed during
performance of this Agreement. CITY may, at any time, by written order, direct the
CONSULTANT to revise portions of the WORK previously completed in a satisfactory manner,
delete portions of the WORK, or request that the CONSULTANT perform additional WORK
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beyond the scope of the WORK. Such changes hereinafter shall be referred to as "Additional
Services."
2.4.1 If such Additional Services cause an increase or decrease in the CONSULTANT'S cost
of, or time required for, performance of any services under this Agreement, a contract
price and /or completion time adjustment pursuant to this Agreement shall be made and
this Agreement shall be modified in writing accordingly.
2.4.2 Compensation for each such request for Additional Services shall be negotiated by the
CITY and the CONSULTANT according to the provisions set forth in Exhibit B,
attached hereto and incorporated herein by this reference, and if so authorized, shall be
considered part of the WORK. The CONSULTANT shall not perform any Additional
Services until so authorized by CITY and agreed to by the CONSULTANT in writing.
2.5 The CONSULTANT must assert any claim for adjustment in writing within thirty (30) days from
the date of the CONSULTANT's receipt of the written notification of change.
SECTION 3 CITY'S RESPONSIBILITIES
3.1 CITY- FURNISHED DATA: The CITY will provide to the CONSULTANT all technical data in
the CITY'S possession relating to the CONSULTANT'S services on the WORK.
3.2 ACCESS TO FACILITIES AND PROPERTY: The CITY will make its facilities reasonably
accessible to CONSULTANT as required for CONSULTANT'S performance of its services and
will provide labor and equipment as reasonably required by CONSULTANT for such access.
3.3 TIMELY REVIEW: The CITY will examine the CONSULTANT'S studies, reports, proposals,
and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond
and financial advisors, and other consultants as CITY deems appropriate; and render in writing
decisions required of CITY in a timely manner. Such examinations and decisions, however, shall
not relieve the CONSULTANT of any contractual obligations nor of its duty to render
professional services meeting the standards of care for its profession.
3.4 CITY shall appoint a CITY'S Representative with respect to WORK to be performed under this
Agreement. CITY'S Representative shall have complete authority to transmit instructions and
receive information. CONSULTANT shall be entitled to reasonably rely on such instructions
made by the CITY'S Representative unless otherwise directed in writing by the CITY, but
CONSULTANT shall be responsible for bringing to the attention of the CITY'S Representative
any instructions which the CONSULTANT believes are inadequate, incomplete, or inaccurate
based upon the CONSULTANT'S knowledge.
3.5 Any documents, services, and reports provided by the CITY to the CONSULTANT are available
solely as additional information to the CONSULTANT and will not relieve the CONSULTANT of
its duties and obligations under this Agreement or at law. The CONSULTANT shall be entitled to
reasonably rely upon the accuracy and the completeness of such documents, services and reports,
but shall be responsible for exercising customary professional care in using and reviewing such
documents, services, and reports and drawing conclusions there from.
SECTION 4 AUTHORIZATION, PROGRESS, AND COMPLETION
4.1 In signing this Agreement, CITY grants CONSULTANT specific authorization to proceed with
WORK described in Exhibit A. The time for completion is defined in Exhibit A, or as amended.
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SECTION 5 COMPENSATION
5.1 COMPENSATION ON A TIME SPENT BASIS AT SPECIFIC HOURLY RATES: For the
services described in Exhibit A, compensation shall be according to Exhibit B - Schedule of
Specific Fees and Hourly Rates, attached hereto and incorporated herein by this reference, on a
time spent basis plus reimbursement for direct non - salary expenses.
5.1.1 DIRECT NON - SALARY EXPENSES: Direct Non -Salary Expenses are those costs
incurred on or directly for the PROJECT including, but not limited to, necessary
transportation costs, including current rates for CONSULTANTS vehicles; meals and
lodging; laboratory tests and analyses; printing, binding and reproduction charges; all
costs associated with other outside nonprofessional services and facilities; special CITY -
requested and PROJECT - related insurance and performance warranty costs; and other
similar costs. Reimbursement for Direct Non -Salary Expenses will be on the basis of
actual charges and on the basis of current rates when furnished by CONSULTANT.
Estimated Direct Non - Salary Expenses are shown in Exhibit B.
5.1.1.1 Travel costs, including transportation, lodging, subsistence, and incidental
expenses incurred by employees of the CONSULTANT and each of the
Subconsultants in connection with PROJECT WORK; provided, as follows:
• That a maximum of U.S. INTERNAL REVENUE SERVICE allowed
cents per mile will be paid for the operation, maintenance, and
depreciation costs of company or individually owned vehicles for that
portion of time they are used for WORK. CONSULTANT, whenever
possible, will use the least expensive form of ground transportation.
• That reimbursement for meals inclusive of tips shall not exceed a
maximum of forty dollars ($40) per day per person. This rate may be
adjusted on a yearly basis.
• That accommodation shall be at a reasonably priced hotel /motel.
• That air travel shall be by coach class, and shall be used only when
absolutely necessary.
5.1.2 Telephone charges, computer charges, in -house reproduction charges, first class postage,
and FAX charges are not included in the direct expense costs, but are considered included
in the Schedule of Specific Hourly Billing Rates.
5.2 Unless specifically authorized in writing by the CITY, the total budgetary amount for this
PROJECT shall not exceed forty one thousand, four hundred sixty Dollars ($41,460). The
CONSULTANT will make reasonable efforts to complete the WORK within the budget and will
keep CITY informed of progress toward that end so that the budget or WORK effort can be
adjusted if found necessary. The CONSULTANT is not obligated to incur costs beyond the
indicated budget, as may be adjusted, nor is the CITY obligated to pay the CONSULTANT
beyond these limits. When any budget has been increased, the CONSULTANT'S excess costs
expended prior to such increase will be allowable to the same extent as if such costs had been
incurred after the approved increase, and provided that the City was informed in writing at the
time such costs were incurred.
5.3 Proposed Payment Schedule
The Consultant shall submit an invoice to the City's Representative each month for payment for
services and work performed during the billing period. The invoice shall include a summary of the
hours spent, expenses incurred, and a description of the work performed. For any services
authorized by the City beyond the fixed fee scope of work shall follow a monthly payment
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schedule as follows: The CONSULTANT shall submit to the City's Representative an invoice
each month for payment for services completed through the accounting cut -off day of the previous
month. Such invoices shall be for services and WORK performed and costs incurred prior to the
date of the invoice and not covered by previously submitted invoices. The CONSULTANT shall
submit with each invoice a summary of time expended on the PROJECT for the current billing
period, and any other supporting materials determined by the City necessary to substantiate the
costs incurred. CITY will use its best efforts to pay such invoices within thirty (30) days of
receipt and upon approval of the WORK done and amount billed. CITY will notify the
CONSULTANT promptly if any problems are noted with the invoice. CITY may question any
item in an invoice, noting to CONSULTANT the questionable item(s) and withholding payment
for such item(s). The CONSULTANT may resubmit such item(s) in a subsequent invoice together
with additional supporting information required.
5.4 Payment terms are net 30 after receipt of approved invoice(s).
SECTION 6 RESPONSIBILITY OF CONSULTANT
6.1 INDEMNIFICATION:
(a) CONSULTANT agrees to defend, indemnify, and hold harmless the CITY, its elected
officials, agents, officers, employees, agents and volunteers (hereinafter "parties
protected ") from (1) claims, demands, liens, lawsuits, administrative and other
proceedings,(including reasonable costs and attorneys fees) and (2) judgments, awards,
losses, liabilities, damages, penalties, fines, costs and expenses of any kind claimed by
third parties arising out oi; or related to any death, injury, damage or destruction to any
person or any property to the extent caused by any negligent act or action, default, error
or omission or willful misconduct arising out of the CONSULTANT's performance
under this Agreement. In the event that any lien is placed upon the City's property or any
of the City's officers, employees or agents as a result of the negligence or willful
misconduct of the CONSULTANT, the CONSULTANT shall at once cause the same to
be dissolved and discharged by giving bond or otherwise.
(b) CITY agrees to indemnify and hold the CONSULTANT harmless from loss, cost, or
expense of any kind claimed by third parties, including without limitation such loss, cost,
or expense resulting from injuries to persons or damages to property, caused solely by the
negligence or willful misconduct of the CITY, its employees, or agents in connection
with the service.
(c) If the negligence or willful misconduct of both the CONSULTANT and the CITY (or a
person identified above for whom each is liable) is a cause of such third party claim, the
loss, cost, or expense shall be shared between the CONSULTANT and the CITY in
proportion to their relative degrees of negligence or willful misconduct and the right of
indemnity will apply for such proportion.
(d) Nothing contained in this Section or this Agreement shall be construed to create a
liability or a right of indemnification in any third party.
6? In any and all claims by an employee of the CONSULTANT, any subcontractor, anyone directly
or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the
indemnification obligations under this Agreement shall not be limited in any way by any
limitation on the amount or types of damages, compensation, or benefits payable by or for the
CONSULTANT or a subcontractor under workers' or workmens' compensation acts, disability
benefit acts, or other employee benefit acts.
CONSULTANT'S INITIALS An CITY'S INITIALS 44
Page 4 of 10
SECTION 7 AUDIT AND ACCESS TO RECORDS
7.1 The CONSULTANT, including its subconsultants, shall maintain books, records, documents and
other evidence directly pertinent to performance of the WORK under this Agreement in
accordance with generally accepted accounting principles and practices consistently applied. The
CITY, or the CITY'S duly authorized representative, shall have access to such books, records,
documents, and other evidence for inspection, audit, and copying for a period of three years after
completion of the WORK. The CITY shall also have access to such books, records, and
documents during the performance of the WORK, if deemed necessary by the CITY, to verify the
CONSULTANT'S WORK and invoices.
7.2 Audits conducted pursuant to this section shall be in accordance with generally accepted auditing
standards and established procedures and guidelines of the reviewing or auditing agency.
7.3 The CONSULTANT agrees to the disclosure of all information and reports resulting from access
to records pursuant to this section provided that the CONSULTANT is afforded the opportunity
for an audit exit conference and an opportunity to comment and submit any supporting
documentation on the pertinent portions of the draft audit report and that the final audit report will
include written comments, if any, of the CONSULTANT.
7.4 The CONSULTANT shall ensure that the foregoing paragraphs are included in each subcontract
for WORK.
7.5 Any charges of the CONSULTANT paid by the CITY which are found by an audit to be
inadequately substantiated shall be reimbursed to the CITY.
SECTION 8 INSURANCE
8.1 At all times during performance of the Services, CONSULTANT shall secure and maintain in
effect insurance to protect the City and the CONSULTANT from and against all claims, damages,
losses, and expenses arising out of or resulting from the performance of this Contract.
CONSULTANT shall provide and maintain in force insurance in limits no less than that stated
below, as applicable. The City reserves the rights to require higher limits should it deem it
necessary in the best interest of the public.
8.1.1 Commercial General Liability Insurance. Before this Contract is fully executed by the
parties, CONSULTANT shall provide the City with a certificate of insurance as proof of commercial
liability insurance and commercial umbrella liability insurance with a total minimum liability limit of
One Million Dollars ($1,000,000.00) per occurrence combined single limit bodily injury and property
damage, and Two Million Dollars ($2,000,000.00) general aggregate. The certificate shall clearly state
who the provider is, the coverage amount, the policy number, and when the policy and provisions
provided are in effect. Said policy shall be in effect for the duration of this Contract. The policy shall
name the City, its elected officials, officers, agents, employees, and volunteers as additional insureds,
and shall contain a clause that the insurer will not cancel or change the insurance without first giving
the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but
failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall
be crossed out and initialed by the insurance agent). The insurance shall be with an insurance company
or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington.
Page 5 of 10
8.1.2. Commercial Automobile Liability Insurance.
a. If CONSULTANT owns any vehicles, before this Contract is fully executed by
the parties, OIC shall provide the City with a certificate of insurance as proof of
commercial automobile liability insurance and commercial umbrella liability insurance
with a total minimum liability limit of Two Million Dollars ($2,000,000 00) per
occurrence combined single limit bodily injury and property damage. Automobile
liability will apply to "Any Auto" and be shown on the certificate.
b. If CONSULTANT does not own any vehicles, only "Non -owned and Hired
Automobile Liability" will be required and may be added to the commercial liability
coverage at the same limits as required in that section of this Contract, which is
Section 8.1.1 entitled "Commercial General Liability Insurance ".
c. Under either situation described above in Section 3.a and Section 13.b, the
required certificate of insurance shall clearly state who the provider is, the coverage
amount, the policy number, and when the policy and provisions provided are in effect.
Said policy shall be in effect for the duration of this Contract. The policy shall name
the City, its elected officials, officers, agents, employees, and volunteers as additional
insureds, and shall contain a clause that the insurer will not cancel or change the
insurance without first giving the City thirty (30) calendar days prior written notice
(any language in the clause to the effect of "but failure to mail such notice shall impose
no obligation or liability of any kind upon the company" shall be crossed out and
initialed by the insurance agent). The insurance shall be with an insurance company or
companies rated A -VII or higher in Best's Guide and admitted in the State of
Washington.
8.1.3. Statutory workers' compensation and employer's liability insurance as required by state
law.
SECTION 9 SUBCONTRACTS
9.1 CONSULTANT shall be entitled, to the extent determined appropriate by CONSULTANT, to
subcontract any portion of the WORK to be performed under this Agreement.
SECTION 10 ASSIGNMENT
10.1 This Agreement is binding on the heirs, successors and assigns of the parties hereto. This
Agreement may not be assigned by CITY or CONSULTANT without prior written consent of the
other, which consent will not be unreasonably withheld. It is expressly intended and agreed that no
third party beneficiaries are created by this Agreement, and that the rights and remedies provided
herein shall inure only to the benefit of the parties to this Agreement.
SECTION 11 INTEGRATION
11.1 This Agreement represents the entire understanding of CITY and CONSULTANT as to those
matters contained herein. No prior oral or written understanding shall be of any force or effect
with respect to those matters covered herein. This Agreement may not be modified or altered
except in writing signed by both parties.
SECTION 12 JURISDICTION AND VENUE
12.1 This Agreement shall be administered and interpreted under the laws of the State of Washington.
Jurisdiction of litigation arising from this Agreement shall be in Washington State. If any part of
this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and
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void insofar as it conflicts with said laws, but the remainder of this Agreement shall be in full
force and effect. Venue of all disputes arising under this Agreement shall be Yakima County,
State of Washington.
SECTION 13 EQUAL EMPLOYMENT and NONDISCRIMINATION
13.1 During the performance of this Agreement, CONSULTANT and CONSULTANT's
subconsultants shall not discriminate in violation of any applicable federal, state and/or local law
or regulation on the basis of age, sex, race, creed, religion, color, national origin, marital status,
disability, honorably discharged veteran or military status, pregnancy, sexual orientation, and any
other classification protected under federal, state, or local law. This provision shall include but not
be limited to the following: employment, upgrading, demotion, transfer, recruitment, advertising,
layoff or termination, rates of pay or other forms of compensation, selection for training, and the
provision of services under this Agreement. CONSULTANT agrees to comply with the
applicable provisions of State and Federal Equal Employment Opportunity and Nondiscrimination
statutes and regulations.
SECTION 14 SUSPENSION OF WORK
14.1 CITY may suspend, in writing by certified mail, all or a portion of the WORK under this
Agreement if unforeseen circumstances beyond CITY'S control are interfering with normal
progress of the WORK. CONSULTANT may suspend, in writing by certified mail, all or a
portion of the WORK under this Agreement if unforeseen circumstances beyond
CONSULTANT's control are interfering with normal progress of the WORK. CONSULTANT
may suspend WORK on PROJECT in the event CITY does not pay invoices when due, except
where otherwise provided by this Agreement. The time for completion of the WORK shall be
extended by the number of days WORK is suspended. If the period of suspension exceeds ninety
(90) days, the terms of this Agreement are subject to renegotiation, and both parties are granted the
option to terminate WORK on the suspended portion of Project in accordance with SECTION 15.
SECTION 15 TERMINATION OF WORK
15.1 Either party may terminate this Agreement, in whole or in part, if the other party materially
breaches its obligations under this Agreement and is in default through no fault of the terminating
party. However, no such termination may be effected unless the other party is given: (1) not less
than fifteen (15) calendar days written notice delivered by certified mail, return receipt requested,
of intent to terminate; and (2) an opportunity for consultation and for cure with the terminating
party before termination. Notice shall be considered issued within seventy-two (72) hours of
mailing by certified mail to the place of business of either party as set forth in this Agreement.
15.2 In addition to termination under subsection 15.1 of this Section, CITY may terminate this
Agreement for its convenience, in whole or in part, provided the CONSULTANT is given: (1) not
less than fifteen (15) calendar days written notice delivered by certified mail, return receipt
requested, of intent to terminate; and (2) an opportunity for consultation with CITY before
termination.
15.3 If CITY terminates for default on the part of the CONSULTANT, an adjustment in the contract
price pursuant to the Agreement shall be made, but (1) no amount shall be allowed for anticipated
profit on unperformed services or other WORK, and (2) any payment due to the CONSULTANT
at the time of termination may be adjusted to the extent of any additional costs or damages CITY
has incurred, or is likely to incur, because of the CONSULTANT'S breach. In such event, CITY
shall consider the amount of WORK originally required which was satisfactorily completed to
date of termination, whether that WORK is in a form or of a type which is usable and suitable to
CITY at the date of termination and the cost to CITY of completing the WORK itself or of
employing another firm to complete it. Under no circumstances shall payments made under this
provision exceed the contract price. In the event of default, the CONSULTANT agrees to pay
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CITY for any and all damages, costs, and expenses whether directly, indirectly, or consequentially
caused by said default. This provision shall not preclude CITY from filing claims and/or
commencing litigation to secure compensation for damages incurred beyond that covered by
contract retainage or other withheld payments.
15.4 If the CONSULTANT terminates for default on the part of CITY or if CITY terminates for
convenience, the adjustment pursuant to the Agreement shall include payment for services
satisfactorily performed to the date of termination, in addition to termination settlement costs the
CONSULTANT reasonably incurs relating to commitments which had become firm before the
termination, unless CITY determines to assume said commitments.
15.5 Upon receipt of a termination notice under subsections 15.1 or 15.2 above, the CONSULTANT
shall (1) promptly discontinue all services affected (unless the notice directs otherwise), and (2)
deliver or otherwise make available to CITY all originals of data, drawings, specifications,
calculations, reports, estimates, summaries, and such other information, documents, and materials
as the CONSULTANT or its subconsultants may have accumulated or prepared in performing this
Agreement, whether completed or in progress, with the CONSULTANT retaining copies of the
same.
15.6 Upon termination under any subparagraph above, CITY reserves the right to prosecute the WORK
to completion utilizing other qualified firms or individuals; provided, the CONSULTANT shall
have no responsibility to prosecute further WORK thereon.
15.7 If, after termination for failure of the CONSULTANT to fulfill contractual obligations, it is
determined that the CONSULTANT has not so failed, the termination shall be deemed to have
been effected for the convenience of CITY. In such event, the adjustment pursuant to the
Agreement shall be determined as set forth in subparagraph 15.4 of this Section.
15.8 If, because of death, unavailability or any other occurrence, it becomes impossible for any key
personnel employed by the CONSULTANT in PROJECT WORK or for any corporate officer of
the CONSULTANT to render his services to the PROJECT, the CONSULTANT shall not be
relieved of its obligations to complete performance under this Agreement without the concurrence
and written approval of CITY. If CITY agrees to termination of this Agreement under this
provision, payment shall be made as set forth in subparagraph 15.3 of this Section.
SECTION 16 DISPUTE RESOLUTION
16.1 In the event that any dispute shall arise as to the interpretation of this agreement, or in the event of
a notice of default as to whether such default does constitute a breach of the contract, and if the
parties hereto cannot mutually settle such differences, then the parties shall first pursue mediation
as a means to resolve the dispute. If the afore mentioned methods are either not successful then
any dispute relating to this Agreement shall be decided in the courts of Yakima County, in
accordance with the laws of Washington. If both parties consent in writing, other available means
of dispute resolution may be implemented.
SECTION 17 NOTICE
17.1 Any notice required to be given under the terms of this Agreement shall be directed to the party at
the address set forth below. Notice shall be considered issued and effective upon receipt thereof
by the addressee -party, or seventy-two (72) hours after mailing by certified mail to the place of
business set forth below, whichever is earlier.
CITY: City of Yakima
Tony O'Rourke, City Manager
129 North 2nd Street
Yakima, WA 98901
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CONSULTANT: FCS Group
Redmond Town Center
7525 166 Avenue NE, Suite I) -215
Redmond, WA 98052
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their
respective authorized officers or representatives as of the day and year first above written.
CITY IF YAKIMA
A I
V , A PeZ-
TMIK'Rour Signature
Printed Name: pLA.l 47 .0v Printed Name: Peter Moy
4
Title: City Manager Title: F'rincipal
Date: 2// Date:_ kfr7 //y
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Attest e L :.41h ��� %E' ' II
City Cl-r .-: I ` 40
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Page 9 of 10
EXHIBIT A
SCOPE OF SERVICES
EXHIBIT B
Professional Fees and Rates
Page 10 of 10
UTILITY BILLING BUSINESS PROCESSES EXIBIT A
CITY OF YAKIMA, WASHINGTON DRAFT
SCOPE OF WORK AND TASK PLAN
Task 1 — Kick -Off Meeting and Background Review
We will conduct a kick off meeting with the City's Project Manager and other key utility billing staff
to review the project, methodology, timelines, expectations, and desired outcomes. Based on the
goals for this project, the first task is to discuss and confirm the final scope, data requirements, key
stakeholders, and deliverables. We will also compile and issue a data request for information such as
any related documentation from the Strock report, the 2014 budget, related organizational charts, job
descriptions, and any documentation describing the current business processes or procedures for
performing the utility billing activities. We will review the Strock report and identify any overlap in
information to be collected or any information or issue that needs clarification.
Task 2 — Interview Key Stakeholders
To obtain a better understanding of the any issues and concerns about the utility billing activities and
processes, we will interview key stakeholders including managers, employees, and any other
stakeholders identified by the City's project manager. We will conduct no more than seven interview
sessions (interview sessions can be for an individual or for a group of people). During our interviews
we will cover a variety of topics and issues related to the utility billing operations. We will develop a
set of interview questions and format the questions so we can also gather information on what are the
strengths, weaknesses, opportunities, and threats regarding the City's utility billing processes.
Task 3 — Identify and Document the Utility Billing Processes
As a first step to identifying the utility billing processes, we will identify what the responsibilities are
for each staff member involved in the utility billing process, and then we will document at a high
level the processes used to meet those responsibilities. To document the processes we will conduct
group sessions with the utility billing staff to identify the steps involved with each process. Based on
these staff sessions the key process steps will be identified, and we will develop process maps for
each process. Once the process steps are identified and the process mapping is done, we will analyze
the processes to identify any issues that affect the timeliness, fairness, efficiency, and effectiveness
of the process. Specific processes might include the following:
• Utility bill production
• Customer support via phone, in person, and written contact
• Customer billing remedial actions (e.g. suspension of service)
• New and terminated accounts
• Payment collection
• Interface with Building permits
As part of the documentation and review of such processes, we will be analyzing the processes to
determine if any of the following exist:
• Billing system "work arounds"
•:;> FCS GROUP
UTILITY BILLING BUSINESS PROCESSES EXIBIT A
CITY OF YAKIMA, WASHINGTON DRAFT
• Duplication of effort
♦ Differences in or a lack of procedures among staff
• Process bottlenecks
♦ Number of review levels
• Reasons and causes for issues identified by internal stakeholders
Task 4 — Review Results With Utility Services Management
Once we have completed Tasks 4, we will review the process documentation with the Utility
Services management to determine if there are any gaps in the processes, to identify similarities and
differences among the survey participants and the City, and to discuss any potential
recommendations. If changes are required or additional work is needed, we will perform any
additional work needed. This phase may involve additional interviews with program staff, business
process flow diagramming, additional data gathering and analysis, and /or additional research.
Task 5 — Conduct City Survey
We will survey three similar cities to compare selected policies and procedures as well as the utility
billing software used by each City. As part of the survey effort we will work with the City staff to
identify the key questions and information that the City wants to collect. We will work with the
City's project manager to select the comparable cities and to develop the information and questions
that the City will find most useful for improving its operations and billing systems.
Task 6 — Prepare Draft and Final Report
A draft report will be prepared that describes the key assumptions, methodologies, process analysis,
survey comparisons, potential issues, and recommendations. We will provide the Utility Services
with a draft report to review and will discuss the results and review any comments that it might have
concerning the draft report. Once the issues and comments have been addressed, a final report will be
issued. We will provide five bound reports and an electronic version of the report.
Optional Task 7 — Make Presentations
If requested, we will make one presentation on the results of the utility billing process study. The
City's project manager will determine who will attend the presentation (e.g. City utility management,
City Council, etc.).
•:;> FCS GROUP 2
UTILITY BILLING BUSINESS PROCESSES EXIBIT B
CITY OF YAKIMA, WASHINGTON DRAFT
BUDGET ESTIMATE
The table below summarizes our estimated cost to perform the task plan delineated in this section.
i _ Consultant Hours
I
{ Principal Senior Analyst Admin. Total
Tasks Moy Aaker Support Labor Hours Budget
Effective Hourly Billing Rates: $225 $130 $80
Task 1 — Kick-Off Meeting and Background Review 6 4 11 $1,950
T ask 2 — Interview Key Stakeholders 8 8 16 $2,840
T ask 3— Identify and Document the Utility Billing Processes 32 64 97 $15,600
Task 4 — Review Results With Utility Services Management 8 8 16 $2,840
T ask 5 — Conduct City Survey 8 32 1 41 $6,040
T ask 6 — Prepare Draft and Final Report 28 24 2 ® $9,580
Travel and Expenses $1,000
Project Budget 90 'J 140 1 5 1 235 1 $39,850
Optional Task 7 —Make Presentations 6 2 8
Total Project Budget With Optional Task ' 96 1 142 1 5 1 243 1 $ 41,460
•:;> FCS GROUP 1
r f •
•
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.B.
For Meeting of September 16, 2014
ITEM TITLE: Resolution authorizing an agreement with FCS Group for
Phase II of the Utility Billing Business Process
SUBMITTED BY: Cindy Epperson, Director of Finance and Budget
James Dean, Utility Services Manager
SUMMARY EXPLANATION:
On September 17, 2013, staff requested to hire a consultant to perform a Business Process
Analysis (BPA) Barry Strock Consulting Associates was hired and performed that analysis with
the following conclusion: "BSCA is confident that if Yakima takes the initiative to look clear -eyed
at and invest in its business practices, policies and procedures, organization and management
flows, and its technology solutions, it can connect departments and divisions of the city in a way
that provides the business acumen and customer service that staff, citizens, administration, and
elected officials all want "
BSCA determined the next step or phase should be to review current Policies and Procedures.
Since competition is not required on consultant contracts, staff reviewed organizations that
would be able to do this work FCS Group has worked with the city on several similar projects
and is familiar with many of the City's processes regarding utility billing. Because of
their experience with the City, as well as expertise in the field, they were selected to review the
Policies and Procedures.
FCS Group will determine where and how to improve business operational processes to
conduct the business and transactions and define divisional /departmental accountability and the
consequences for not reaching goals. FCS Group will produce a written formal document
addressing current policies and practices and determine needed changes which will then
produce a "needs" document which will be used to evaluate new utility billing software which is
will be conducted in phase III, currently targeted to begin in late spring of 2015. At this point in
time, we project to have salary savings in this area to cover the contract cost of $41,460
Resolution: X Ordinance:
Other (Specify):
Contract: X Contract Term:
Start Date: End Date:
Item Budgeted: Yes Amount: $41,460
Funding Source /Fiscal
Impact:
Strategic Priority: Public Trust and Accountability
Insurance Required? Yes
Mail to: FCS Group, Redmond Town Center, 7525 166th Avenue
NE, Suite D -215, Redmond, WA 98052
Phone: 425 - 867 -1802
APPROVED FOR
SUBMITTAL: City Manager
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
❑ Resolution FCS Group 8/27/2014 Cover Memo
❑ FCS Group Contract 9/9/2014 Cover Memo
❑ FCS Group - Exhibit A 8/27/2014 Cover Memo
❑ FCS Group - Exhibit B 8/27/2014 Cover Memo