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HomeMy WebLinkAboutBaker TillyTown of Los Altos Hills Page 1 of 3 Short form Updated 4/26/22 AGREEMENT THIS AGREEMENT is made and entered into on the 1st day of July, 2023 by and between the TOWN OF LOS ALTOS HILLS (hereinafter referred to as "TOWN") and Baker Tilly, US, LLP (hereinafter referred to as "CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1. CONTRACTOR. Shall provide or furnish the following specified services and/or materials: Conduct an organizational assessment including the evaluation of internal operations of the organization, assess the operational capacity of the City’s efforts, and analyze customer service needs and services. Additionally, examine the work of the City’s standing committees and develop recommendations for optimizing their structure, staffing, and management. 2. EXHIBITS. The following attached exhibits are hereby incorporated into and made a part of this Agreement: Proposal from CONTRACTOR dated February 28, 2023, and revised on June 2, 2023 3. TERMS. The services and/or materials furnished under this Agreement shall commence 07/01/23 and shall be completed by 12/31/23, unless terminated pursuant to Section 5(f). 4. COMPENSATION. For the full performance of this Agreement: a. TOWN shall pay CONTRACTOR an amount not to exceed twenty eight thousand dollars and zero cents ($28,000.00), within thirty (30) days following receipt of invoice and completion/delivery of services/goods as detailed in Sections 1, 2, and 3 of this Agreement and only upon satisfactory delivery/completion of goods/services in a manner consistent with professional/industry standards for the area in which CONTRACTOR operates. TOWN is not responsible for paying for any work done by CONTRACTOR or any subcontractor above and beyond the not to exceed amount. b. Town shall not reimburse for any of CONTRACTOR's costs or expenses to deliver any services/goods. Town shall not be responsible for any interest or late charges on any payments from Town to CONTRACTOR. c. CONTRACTOR is responsible for monitoring its own forces/employees/agents/ subcontractors to ensure delivery of goods/services within the terms of this Agreement. TOWN will not accept or compensate CONTRACTOR for incomplete goods/services. Town of Los Altos Hills Page 2 of 3 Short form Updated 4/26/22 5. GENERAL TERMS AND CONDITIONS. a. HOLD HARMLESS. CONTRACTOR agrees to indemnify, defend and hold harmless the TOWN, its officers, agents and employees from any and all demands, claims or liability of personal injury (including death) and property damage of any nature, caused by or arising out of the performance of CONTRACTOR under this Agreement. With regard to CONTRACTOR’S work product, CONTRACTOR agrees to indemnify, defend and hold harmless the TOWN, its officers, agents and employees from any and all demands, claims or liability of any nature to the extent caused by the negligent performance of CONTRACTOR under this Agreement. b. NON-DISCRIMINATION. No discrimination shall be made in the employment of persons under this Agreement because of the race, color, national origin, age, ancestry, religion or sex of such person. c. INTEREST OF CONTRACTOR. It is understood and agreed that this Agreement is not a contract of employment and does not create an employer-employee relationship between the TOWN and CONTRACTOR. At all times CONTRACTOR shall be an independent contractor and CONTRACTOR is not authorized to bind the TOWN to any contracts or other obligations without the express written consent of the TOWN. In executing this Agreement, CONTRACTOR certifies that no one who has or will have any financial interest under this Agreement is an officer or employee of TOWN. d. CHANGES. This Agreement shall not be assigned or transferred without advance written consent of the TOWN. No changes or variations of any kind are authorized without the written consent of the City Manager. This Agreement may only be amended by a written instrument signed by both parties. e. TERMINATION. This Agreement may be terminated by TOWN upon seven (7) days written notice to CONTRACTOR. Monies owed for work satisfactorily completed shall be paid to CONTRACTOR within 14 days of termination. f. RECORDS. All reports, data, maps, models, charts, studies, surveys, calculations, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that are prepared or obtained pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the TOWN. CONTRACTOR hereby agrees to deliver those documents to the TOWN at any time upon demand of the TOWN. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the TOWN and are not nece ssarily suitable for any future or other use. Failure by CONTRACTOR to deliver these documents to the TOWN within a reasonable time period or as specified by the TOWN shall be a material breach of this Agreement. TOWN and CONTRACTOR agree that until final approval by TOWN, all data, plans, specifications, reports and other documents are preliminary drafts not kept by the TOWN in the ordinary Town of Los Altos Hills Page 3 of 3 Short form Updated 4/26/22 course of business and will not be disclosed to third parties without prior written consent of both parties. All work products submitted to the TOWN pursuant to this Agreement shall be deemed a "work for hire.” Upon submission of any work for hire pursuant to this Agreement, and acceptance by the TOWN as complete, non- exclusive title to copyright of said work for hire shall transfer to the TOWN. The compensation recited in Section 4 shall be deemed to be sufficient consideration for said transfer of copyright. CONTRACTOR retains the right to use any project records, documents and materials for marketing of their professional services. g.CONTRACT ADMINISTRATION. The TOWN hereby designates the Assistant to the City Manager and the City Manager as Contract Administrator for this agreement. The CONTRACTOR shall only take direction regarding the services provided under this Agreement from the Contract Administrator. Furthermore, CONTRACTOR agrees that the Contract Administrator shall be included any meeting, teleconference or written communication between any Town representative including Committee members and the CONTRACTOR. The TOWN may modify the Contract Administrator at any time upon providing written notice to the CONTRACTOR. h.ENTIRE AGREEMENT. This Agreement represents the entire agreement between the Parties. Any ambiguities or disputed terms between this Agreement and any attached Exhibits shall be interpreted according to the language in this Agreement and not the Exhibits. 6.INVOICING. Send all invoices to the contract coordinator at the address below. This Agreement shall become effective upon its approval and execution by TOWN. In witness whereof, the parties have executed this Agreement the day and year first written above. CONTRACT COORDINATOR and representative for TOWN: CONTRACTOR: Peter Pirnejad City Manager Town of Los Altos Hills By: 26379 Fremont Road Signature Date Los Altos Hills, CA 94022 Print name, Title TOWN OF LOS ALTOS HILLS: By: Peter Pirnejad, City Manager Date Baker Tilly US, LLP Carol Jacobs, Managing Director 7/3/2023 7/3/2023 The City of La Verne November 17, 2022 1 February 17, 2023 Peter Pirnejad City Manager Town of Los Altos Hills 6379 Fremont Rd, Los Altos Hills, CA 94022 Delivered electronically Dear Mr. Pirnejad: Thank you for the opportunity to submit a proposal to assist you with an organization review for the Town of Los Altos Hills. Based on our meeting of June 2, 2023 we have made some modifications to the scope to better meet your needs. Our proposed scope of work that reflects our understanding of the Town of Los Altos Hills’ desire to evaluate the internal operations of the organization, assess the operational capacity of the Town’s efforts, and analyze customer service needs and services. Based on our prior work with the Town of Los Altos Hills, we understand its complex operations and unique challenges. Based on our understanding of your needs, we are confident we are the right fit to deliver the organizational assessment services you want. We know that the Town has several objectives for this study, including: • Developing an organization that will preserve institutional knowledge for the future • Developing a realistic career trajectory for staff members • Making sure roles are properly aligned with the needs of the organization as well as the skill sets of staff members We will take care to carefully consider these issues when developing organizational alternatives for the future. On October 1, Management Partners combined with Baker Tilly US, LLP. Longtime, valued clients such as the Town of Los Altos Hills can expect the same in-depth knowledge of local government, team members, and approach as has been provided by Management Partners’ professionals for nearly 30 years. We have provided additional details on the firm later in this proposal. Proposed plan of work Based on our experience with organizational surveys and our understanding of the needs of the Town of Los Altos Hills, we have prepared a plan of work to achieve the goal of creating an organizational review that reflects your needs. Activity 1 – Start project We will begin this project by meeting with you and others you designate to discuss the details of the project approach and execution. The project start-up activity forms the foundation of the relationship between Baker Tilly and your team. During this initial meeting, we will confirm deliverables and due dates 2570 W El Camino Real Suite 640 Mountain View, CA 94040 +1 (650) 857 1655 bakertilly.com Town of Los Altos Hills January 27, 2023 2 to ensure the project is completed on time and on budget and that our proposed scope of work is aligned precisely to meet your goals. It will also be important to introduce this initiative to departme nt managers and employees properly to ensure a good start. We will discuss communication protocols during this meeting as well. We will have provided a data request prior to this meeting and will review the material provided in advance. This will likely include budgets, staffing, departmental strategic or business plans, prior studies, employee turnover data, performance metrics, and workload data among other items. We understand that the work associated with this review is in addition to the normal work of the organization. Our goal is to integrate our activities in a manner that is thoughtful and minimizes disruption to the department. Activity 2 – Gather information Next, we will conduct a high-level analysis of the organizational structure, staffing and spans of control. We will conduct up to 15 interviews with you, the director, and managers and supervisors in the Town to understand different perspectives about strengths and weaknesses, staffing levels, workload, training, and promotional opportunities, and to hear ideas for improving efficiency and effectiveness. To provide an opportunity for all employees to share feedback about the Town’s organizational structure and workload and team dynamics, we will design and administer an electronic survey for all department employees. We will develop a draft and review it with you before finalizing it. We want to ask their opinions about staffing, workload, training and professional development, and other issues that arise during the interviews. We will work with you to ensure that any employees who do not have access to a computer are able have access to a paper copy. We will also ask employees, managers and members of the Town’s standing committees about the work of the committees and how best to maximize their impact and management. At the conclusion of this activity, we will summarize results, develop themes, and identify any additional information gathering work that will round out our understanding of the Town’s structure and staffing. Activity 3 – Conduct focus groups Next, we will conduct up to four focus groups with staff and members of the standing committees from across the organization to share what we learned during the gather information activity and to solicit their ideas for improvement for managing and carrying out their respective functions. We will partner with t he Town’s project team to identify individuals to participate in the focus groups and prepare a summary of information learned to date to provide to focus group participants, so they are prepared to be fully engaged and to brainstorm solutions. Activity 4 – Develop organizational enhancements Using the information from interviews and our review of data and documents, the employee survey, and focus groups, we will analyze the Town’s structure, staffing, workload and spans of control, taking into account best practices in the industry as well as what is working well. We will then develop a plan for organizational enhancements which will focus on qualitive and qualitative data, and a lignment with the overall goals of the Town. We will share this with you and senior managers to determine employee support for the program. We will also consider possible organizational improvements to address the three high priority areas mentioned above and in light of Town Hall expansion plans. Activity 5 – Assess the work and structure of the Town’s standing committees In a previous engagement, our firm analyzed the work of the Town’s standing committees and developed recommendations on their work. In this engagement we will take a fresh look at the standing committees Town of Los Altos Hills January 27, 2023 3 and consider ways to staff and manage the committees. We recognize that the standing committees are a very real component of Los Altos Hills governance and operation and that finding meaningful and workable management tools is essential. Activity 6 – Report Results During this activity, we will prepare our observations and preliminary recommendations and meet with you and others you designate to review them. This will be an opportunity to discuss what we learned and observed in our analysis, and to hear feedback about the opportunities for improvement we have identified. This discussion provides a preview of the issues and recommendations that will be addressed in the project report. Once we have received feedback about the various recommendations, we will prepare a draft report. It will include our analysis and recommendations about the organization structure, staffing, spans of control, and succession planning elements. We will present the draft for review and comment. At the conclusion of the review period, we will consider all changes and suggested revisions and prepare the final report. Reports prepared by Baker Tilly are rich in detail, with recommendations supported by quality analysis. We take pains to ensure that our analysis and subsequent recommendations are organized in an easy-to- understand format and presented in a positive manner. Baker Tilly is committed to recommending actions that result in meaningful operational improvements and can be implemented in the real world. Once comments have been received, the final project report will be prepared, peer reviewed, and then transmitted to you. Activity 6 – Support implementation Baker Tilly has a strong bias for action. Our reports and resulting recommendations become tools for setting priorities, and for developing work plans. After completing the project report, we will prepare a draft Implementation Action Plan (IAP) incorporating each recommendation in the project report. The draft action plan sets forth the steps required for implementation, assigns responsibility for a ction, and an assigned priority level (immediate, near or long term) for initiating each recommendation. The action plan is prepared as a draft and becomes final once the director integrates the action steps into the work plan and develops dates for planned completion. The action plan offers an important management tool for actual implementation of the work reflected in the project report. With most of our project reports, Baker Tilly takes another discrete step to improve communications and transparency within the organization, by sharing the final action plan with the chief executive of the local government, accompanied by an appropriate cover letter. This conveys the work planned and underway to improve efficiency and effectiveness and elevates the entire organizational improvement process to the attention of top management within the local government. We have learned that this step builds support and understanding for the improvements outlined in the IAP. The action plan is prepared as a draft and becomes final once the director integrates the action steps into the work plan develops dates for planned completion. The action plan offers an important management tool for actual implementation of the work reflected in the project report. About Baker Tilly Celebrating more than 90 years serving our valued clients As a future-looking firm, we celebrate more than 90 years in the marketplace by honoring our roots and continuing to shape our future. We embrace the fact that local governments can’t stand still — and we won’t stand still. As we help our clients identify new needs and opportunities, we innovate and change to work better. Town of Los Altos Hills January 27, 2023 4 Our roots took hold in 1931 in Waterloo, Wisconsin, where we began as a public accounting firm specializing in canning factory audits. Since that time, we have grown with more than 40 different business combinations, each with its own rich history, expanding our presence coast to coast and globally and expanding our scope across industries, services and areas of expertise. One thing has not changed over time: our shared passion for enhancing the services our clients deliver. Delivering specialized expertise to our public sector clients Unlike many of our contemporaries, Baker Tilly is organized by industry, not service line. What does this mean for the Town of Los Altos Hills? It means you will be served by a carefully selected team that blends our government-focused professionals with experienced specialists in staffing and organizational analysis as well as law enforcement. The Town of Los Altos Hills will be working with knowledgeable professionals who understand the specific challenges you face — and who will provide innovative solutions to help you overcome them. State and local government is a complex, unique environment shaped by fiscal, regulatory and operational considerations not found in other industries. We recognize this complexity, and we are eager to serve as a truly valued advisor to the public sector. Nationwide, our state and local government practice serves more than 4,200 state and local governmental entities, including municipalities, special districts, counties, public utilities, school districts and trans it. Town of Los Altos Hills January 27, 2023 5 Celebrating our recent combination with Management Partners In October 2022, Management Partners combined with Baker Tilly US, LLP (Baker Tilly) to create a premier public sector consulting practice. The fast pace of change in local government – from towns to cities to counties – is not slowing down. To continue serving and improving communities, local leaders need trusted consultants to help navigate change. This combination adds a unique and significant layer of experience to Baker Tilly’s robust public sector practice. Our project team members are former local government leaders and managers stemming from all operational facets. They have nearly three decades of field - tested techniques and proven methodologies. Our combined services include: • Executive Recruitment • Executive Coaching • Executive Performance Assessment • Organization Assessments • Organization Development • Performance Management • Process Improvement • Strategic and Business Planning • Service Sharing and Service Consolidation • Management Services • Financial Planning, Budgeting and Analysis Aligning key engagement team members with your goals Your handpicked team of professionals offers a collaborative focus supported by the breadth and depth of our firm’s national resources. We believe in strong personal relationships, and this means a personal interest in the Town of Los Altos Hills from some of our most experienced team members. Engagement team members are introduced below. ENGAGEMENT TEAM FOR THE TOWN OF LOS ALTOS HILLS Andy Belknap — Managing Director Project role: Project director • Andy has more than 20 years of local government experience, including service as a city manager, public works director, a variety of interim management positions, and as consultant to California municipalities and special districts. He has a specialization in in local government financial management; has led numerous projects to address structural fiscal deficits. Andy has served well over 200 California and Nevada local governments, many on multiple occasions, including 19 of the largest 20 cities. • During 2008 and 2009, Andy served as an expert witness in the City of Vallejo’s bankruptcy proceeding. In 2011 and 2014 he served as project manager for the City of Stockton’s AB 56 process mediation and subsequent chapter 9 bankruptcy and recovery. Between 2015 and 2017 he managed the City of San Bernardino’s bankruptcy and developed the plan of adjustment for the City, which led to fundamental changes in governance and operations. As a result of bankruptcy recovery and other work, he is expert at developing Town of Los Altos Hills January 27, 2023 2 ENGAGEMENT TEAM FOR THE TOWN OF LOS ALTOS HILLS alternative service delivery arrangements, as well as revenue development, over a broad array of municipal services. • A trained economist, Andy brings a special expertise to fiscal analysis and public finance issues. His blend of quantitative skills, coupled with a practitioner’s understanding of public services and management systems, adds value to all types of organizational and policy analysis. Steve Mermell— Special Advisor Project role: Project manager • More than 30 years of local government experience, including service as a city manager, assistant city manager, finance director, as well as a variety of other management positions. • Expert in local government financial management; developed and implemented strategies to address structural budget deficits. Developed a funding plan to address a $150 million unfunded pension liability. During the 2009 financial crisis, managed the refinancing of $270 million in auction-rate certificates. • Successfully obtained voter approval for measures related to an increase in local sales tax, cannabis regulation and taxation, a special tax to support library operations, and continuation of annual transfers from power utility fund to the city’s general fund. • As assistant city manager restructured the Pasadena Public Health Department; eliminated millions of dollars of annual losses by shifting clinical programs to non-profit partners while improving service delivery. As city manager oversaw departments’ responses to the COVID-19 pandemic. Pete Gonda — Senior Manager Project role: Subject matter-specialist • More than 20 years of experience in municipal government, with an emphasis on analytics, budgeting, procurement management, contracts and performance measurement. • Served as purchasing officer for the City of Sunnyvale, California for nine years, where he managed an award-winning centralized purchasing division with $42 million in annual operational spending. • Bid and awarded $80 million in capital projects under a federally funded local economic stimulus program at a 30% savings and implemented continuous process improvements for a variety of services. • Served as a senior management analyst in Sunnyvale’s Finance Department, where his responsibilities included intergovernmental relations, policy analysis and revenue/expense management, including cost of service studies and related activities. Town of Los Altos Hills January 27, 2023 3 • Also worked in Sunnyvale’s Department of Public Safety, the City of San Jose’s Office of Economic Development, and the City of Saratoga’s City Manager’s Office. Professional fee Baker Tilly anticipates devoting xxx hours of our staff time to complete the plan of work described above. The total cost of this project is $28,000, which includes all fees and expenses. The ultimate test of a quality project is that the client is pleased with the results, and we are committed to achieving that goal. Conclusion The Town of Los Altos Hills will continue to be a valued client of Baker Tilly, and I will be personally involved in all aspects of our relationship, from planning through completion. Thank you for the opportunity to make tangible contributions to your success. Our team is excited to earn your trust, and we look forward to discussing your questions and feedback. Sincerely, Carol Jacobs, Managing Director Baker Tilly US, LLP +1 (714) 287-1547 | carol.jacobs@bakertilly.com The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. © 2022 Baker Tilly US, LLP. Baker Tilly US, LLP, trading as Baker Tilly, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such. Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s behalf. 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