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HomeMy WebLinkAboutMercury Associates, Inc. - 2010-05-17CONTRACTS SUBMITTAL T CITY CLERK'S OFFICE 2010 JU1,11 -2 P1111 12s 02 T_ To: JOAN FLYNN, City Clerk Name of Contractor: Mercury Associates, Inc. Purpose of Contract: For Example: Audit Services or Water Quality Testing Huntington Lake —Huntington Central Park Evaluation and Analysis of Fleet Operations Amount of Contract: $49,335.00 Copy of contract distributed to-. The original insurance certificate/waiver distributed Initiating Dept. F� to Risk Management F] Finance Dept. Fl ORIGINAL bonds sent to Treasurer F-1 Date: Narn, e/ExteAion City Attorney's Office &-b-40/o G:AttyMisc/Contract Forms/City Clerk Transmittal 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND Mercury Associates, Inc. FOR Evaluation and Analysis of Fleet Operations Table of Contents Scopeof Services.....................................................................................................I CityStaff Assistance................................................................................................2 Term; Time of Performance.....................................................................................2 Compensation..........................................................................................................2 ExtraWork...............................................................................................................2 Methodof Payment..................................................................................................3 Disposition of Plans, Estimates and Other Documents...........................................3 HoldHarmless.........................................................................................................3 Professional Liability Insurance.............................................................................4 Certificate of Insurance............................................................................................5 Independent Contractor............................................................................................6 Terminationof Agreement.......................................................................................6 Assignmentand Delegation......................................................................................6 Copyrights/Patents...................................................................................................7 City Employees and Officials..................................................................................7 Notices......................................................................................... 7 Consent....................................................................................................................8 Modification.............................................................................................................8 SectionHeadings.....................................................................................................8 Interpretation of this Agreement..............................................................................8 DuplicateOriginal....................................................................................................9 Immigration...............................................................................................................9 Legal Services Subcontracting Prohibited................................................................9 Attorney's Fees..........................................................................................................10 Survival.....................................................................................................................10 GoverningLaw.........................................................................................................10 Signatories.................................................................................................................10 Entirety......................................................................................................................10 EffectiveDate..................................................................................I I 4 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND Mercury Associates, Inc. FOR Evaluation and Analysis of Fleet Operations THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY, and Mercury Associates, Inc. , a Maryland Corporation hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to perform an evaluation and analysis of fleet operations and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates Mr. Randy Owen who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. agree/surfnet/professional svesto $49 12-07 1 of 11 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on May 17 , 20 10 (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than (4) four months from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time . and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Forty Nine Thousand Three Hundred Thi rt-)I-fi llars ($49 , 335.00 )• 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such agree/surfnet/professional svesto $49 12-07 2 of I l work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 7. DISPOSITION OF PLANS ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are agree/surfnet/professional Svcs to $49 12-07 3 of 11 applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. 9. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONSULTANT's professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above -mentioned insurance shall not contain a self -insured retention without the express written consent of CITY; however an insurance policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims -made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement. If CONSULTANT fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to agree/surfnet/professional svcs to $49 12-07 4 of 11 forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination. CONSULTANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and C. shall promise that such policy shall not be suspended, voided or canceled by either parry, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. agree/surfnet/professional Svcs to $49 12-07 5 of 11 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. agree/surfnet/professional svcsto $49 12-07 6 of 11 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section I hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail -return receipt requested: TO CITY: City of Huntington Beach ATTN: Director of Public Works 2000 Main Street Huntington Beach, CA 92648 agree/surfnet/professional svcsto $49 12-07 7ofII TO CONSULTANT: Randall G. Owen senior vice-president 16051 Comprint Circle Gaithersburg, MD 20877 17. CONSENT When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as agree/surfnet/professional sves to $49 12-07 8 of 11 to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. agree/surfhet/professional svcs to $49 12-07 9 of 11 } 24. ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. CONSULTANT's initials �� 00 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's agree/surfnet/professional svcs to $49 12-07 10 of 11 I behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. This Agreement shall be effective on the date of its approval by the City Attorney. This Agreement shall expire when terminated as provided herein. CONSULTANT, Meccucy Associates, Inc. COMPANY NAME LIZ Paul T. Lauria D print name ITS: (circle one) i3 t)Htfia/President/YbaK AX*xx AND B 0� By - Randall G. Owen print name ITS: (circle one) Secretary/6Naf iMYZMVfDCXOtU MT- Z=0(1MXXX=4VX agree/sur£net/professional svcsto $49 12-07 11 of 11 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California PUM ; � Wc)rk,, Director/ (Pursuant To HBMC §3.03.100) APPROVED AS TO FORM: ` r 2 �L City Attorney Date �"V �/ 2 p O EXIIIBIT "A" Scope of Work A. STATEMENT OF WORK CONSULTANT shall provide consulting services to perform a comprehensive analysis of the City's fleet management operations, programs, and practices. The resulting analysis, reports, recommendations, and action plans will identify opportunities to improve current processes, implementation of necessary systems, and reduce costs. The recommendations resulting from this study must be reliable and attainable. That is, the recommendations (a) must be justified and defensible as best practices for the industry and/or circumstances that are unique to the existing conditions; (b) must be supported by an implementation plan; (c) must be fiscally responsible; and (d) must take full advantage of available industry technology, equipment, tools, and infrastructure. B. CONSULTANT'S DUTIES AND RESPONSIBILITIES CONSULTANT'S duties and responsibilities shall follow provisions specified in the City of Huntington Beach Evaluation & Analysis of Fleet Operations Scope of Work shown below. Methodology and detailed services shall include but are not limited to CONSULTANT'S proposed approach and work plan shown in Exhibit A.I. Upon award and during the contract period, if CONSULTANT chooses to assign different personnel to the project, CONSULTANT must submit the names and qualifications of those staff to CITY for approval before commencing work. C. SCOPE OF WORD 1. Deliverables shall consist of the following: A. Draft report for review. Meet with City management staff and incorporate applicable comments. B. Final report with executive summary (8 bound copies, including PDF format on CD with each bound copy). Final Report must at minimum address the following topics: 1. Provide growth projections and replacement plan of the City's vehicle and equipment fleet for the next 5, 10, and 20 years. 2. Identify available options as to which components of the City's fleet management operations can be consolidated into centralized programs and which operations should remain decentralized and departmentalized. 3. Cost comparisons & analysis of providing certain fleet services in-house versus contracting to private vendors. Provide advantages and disadvantages for both service delivery options. 4. Assess and provide comparables of current staffing and budget levels. 5. Fleet rolling stock assessment (size, age, current condition, and life expectancy). 6. Assess the current inventory of fleet management equipment, computer hardware/software, and other tools dedicated to the fleet maintenance operations and recommend the components necessary for managing and operating an efficient and effective fleet program and their associated cost. 7. Identify the necessary training, credentials and/or certifications for fleet maintenance staff including frequency, renewal period and budget. EXHIBIT A — Evaluation and Analysis of Fleet Operations 8. Identify opportunities that would improve the efficiency and effectiveness of the City's fleet services. 9. Identify policies and standard operating procedure changes that, if implemented, would promote efficient and effective fleet management operations. 10. Evaluate the implementation of alternative fuel(s) including types, uses, costs and benefits. 11. Recommend policies and procedures for vehicle replacement. C. Provide a formal presentation of findings and recommendations for department heads and City Administrator. D. Prepare a detailed proposal including itemized cost and timeframe estimates to implement CONSULTANT'S recommendations. 2. The following are work tasks assumed to be necessary for preparing the deliverables described above. CONSULTANT shall perform the following tasks through review of records and data, onsite tours and observations, meetings, discussions, department surveys and interviews, focus groups and other assessment tools: A. Project Development Plan. Based on a thorough understanding of the purpose, objectives and scope; the consultant will submit the following for approval: a. Proposed work plan. b. Reporting methods, formatting standards for project reports and documentation, and frequency of reports. c. Proposed schedule for progress & final reports, and presentations. B. Fleet Analysis. Anticipated tasks include but not limited to the following: a. Analyze available data. The consultant will identify and analyze all applicable fleet data, such as: i. Inventory by department, year, make, model, weight class, etc. ii. Mileage, vehicle maintenance, fuel data. iii. Maintenance & fuel costs and other historical data. b. Evaluate fleet organizational structure: i. Identify City's fleet departments and areas of responsibilities. ii. Identify departmental fleet managers, key staff members, and chain of command and decision making authority. iii. Interview and/or survey departmental managers and staff. iv. Determine fleet personnel's experience, level of knowledge, skills and abilities. c. Perform onsite visits, observe and evaluate operations: i. Observe fleet operations, systems, and procedures. ii. Observe fleet maintenance processes and procedures. iii. Evaluate fueling locations and document conditions, equipment, security, safety, etc. iv. Evaluate fueling processes and procedures. v. Observe other departmental shops and operations where appropriate. d. Analyze and evaluate existing fleet management programs, practices and standard 2 EXHIBIT A — Evaluation and Analysis of Fleet Operations operating procedures to identify areas where efficiencies and cost savings can be achieved. Areas of focus include but not limited to the following: i. Fleet administration and operational rates (chargeback rates, surcharges and markup, etc.). ii. Vehicle acquisitions. iii. Vehicle leasing and chargeback. iv. Pool vehicles. V. Maintenance and repair facilities. vi. Preventive maintenance programs and compliance levels. vii. Lifecycle cost and budget analysis. viii. Mechanic staffing level, labor rate and productivity analysis. ix. Contracted services/operations. X. Towing/roadside assistance. xi. Storeroom and parts services. xii. Fueling services. xiii. Customer service. xiv. Staff training. xv. Safety and security. e. Evaluate implementation of an enterprise fund/chargeback system: i. Chargeback rate structure. ii. Vehicle/equipment replacement planning process including budget forecasting. iii. Analyze implementation issues. iv. Recommend implementation plan and timeframe. f. Assess the use and need of information systems and other technologies and make recommendation: i. Evaluate existing technical resources and infrastructure. ii. Evaluate the availability, use and application of technology. iii. Recommend improvements, provide cost estimates and implementation timeframe C. Analyze findings and benchmark against best practices: a. Review and analyze the fleet study results. b. Determine the City's cost of services and compare to benchmarks. c. Make recommendations that will improve operations and to reduce costs. d. Identify and assess possible barriers and constrains to recommendations. e. Recommend implementation plan and timeframe. EXHIBIT A — Evaluation and Analysis of Fleet Operations EXHIBIT "A. I" Proposal to Provide Fleet Management Consulting Services We understand that the City of Huntington Beach is seeking proposals from experienced and qualified firms to conduct and assessment and analysis of fleet operations within the City. We understand that that fleet operations are somewhat decentralized within the City with four departments (Public Works, Police, Fire, and Beach Maintenance) operating repair shops. We understand that in total the City owns S90- vehicles and pieces o equipment. e un erstand specfic areas of operation to be addressed in the study include organizational structure, policies, standard operating procedures and performance activities; and include findings and provide recommendations relative to fleet management, maintenance, operations, and information/data management. We understand the evaluation and analysis of fleet operations must at minimum address the following topics: a) Provide growth projections and replacement plan of the City's vehicle and equipment fleet for the next 5, 10, and 20 years. b) Identify available options as to which components of the City's fleet management operations can be consolidated into centralized programs and which operations should remain decentralized and departmentalized. c) Cost comparisons & analysis of providing certain fleet services in-house versus contracting to private vendors. Provide advantages and disadvantages for both service delivery options. d) Assess and provide comparables of current staffing and budget levels. e) Fleet rolling stock assessment (size, age, current condition, and life expectancy). f) Assess the current inventory of fleet management equipment, computer hardware/software, and other tools dedicated to the fleet maintenance operations and recommend the components necessary for managing and operating an efficient and effective fleet program and their associated cost. g) Identify the necessary training, credentials and/or certifications for fleet maintenance staff including frequency, renewal period and budget. h) Identify opportunities that would improve the efficiency and effectiveness of the City's fleet services. i) Identify policies and standard operating procedure changes that, if implemented, would promote efficient and effective fleet management operations. j) Evaluate the implementation of alternative fuel(s) including types, uses, costs and benefits. Mercury Associates, Inc. 2 i EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services k) Recommend policies and procedures for vehicle replacement. We understand Huntington Beach is the 19th largest city in California and third largest in Orange County with a population of just over 200,000. We understand the City is best known for its 8.5-mile beach and is often referred to as "Surf City" due to its consistent quality surf, long history with the sport, and stature as home to the surfing world championships every summer. We understand the City has a budget across all funds of $304 million and 1,143 full-time equivalent staff. ;� �� - �..i1111 lillillil r� i�� 7 =Z In the following paragraphs we have outlined"our'approach and proposed work plan for an engagement with the County. Service Philosophy Mercury Associates is, first and foremost, a service company. Our corporate goal is quite simple: °to -serve clients:: We believethat- 46 more than 500 organizations, both big and small, that have engaged the consulting services of our principals and staff over a continuous period of 20 years is the best testament to our ability to achieve this goal. We understand that the decision to engage a consultant is a momentous one for many organizations, often acted upon only after all other possible avenues for solving a problem or answering a question have been exhausted. We recognize that many fleet managers spend years trying to secure funds to hire a consultant, and that, once secured, such funds must generate a significant "return on investment." Accordingly, out philosophy is to provide consulting'services that 1) address needs that our clients cannot address themselves (whether because- of a lack of time, capability, or objectivity and credibility); and 2) enable our clients 'to achieve cost savings and other tangible and intangible benefits whose economic value far exceeds the cost of our services. One of the keys to running our business in accordance with this philosophy is to employ structured, time -tested methodologies and analytical tools that save us time and our clients' money while producing logical, defensible findings, practical recommendations, and "implementable" solutions. We do not believe in or practice the "trust me" approach to consulting, in which clients are expected to accept certain conclusions and recommendations simply because they are made by a consultant. Our goal is to produce results that can withstand -scrutiny and for which we are willing to be held accountable. Mercury Associates, Inc. 3 e 5 EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services The other key to fulfilling our client service mission is to interact with our clients. Fundamentally, good consultants are change agents, -and convincing an organization to change the way it manages its fleet or any other facet of its business requires securing the confidence and trust of decision makers and other stakeholders. Doing so requires that we not only understand those issues, challenges, and opportunities that all of the organizations we have served share in common (so that we can apply our industry expertise to, each new client situation), but also the features, .characteristics, constraints, and foibles that make each organization unique. Consultants who ignore the uniqueness of each client they serve often employ a one - size -fits -all- - - - - - approach to their work and; in particular, their recommendations. We try to avoid this by communicating with as many stakeholders as possible in each organization we serve,, so,, that we can understand the different perspectives that collectively define, an organization's _fleet needs and, fleet management practices. Our goal is to determine the value proposition of each consulting project for each stakeholder. By this we mean the ability of the project to meet the needs and goals of - that is, to provide value to - each stakeholder. For instance, executive management may be looking to this project to cut fleet costs; fleet user departments may expect it to validate their need' for rie'wer �vehicles'� of`their, choosing; and mechanics may be hoping for recommendations that they 'be provided with more technical training and better tools.-_ - >. While these are not necessarily mutually exclusive goals, it may not be easy for the City to achieve them all at once, especially in the current economic and fiscal climate. In order to ensure that different and potentially competing goals are reconciled with one another 'and" prioritized, --we urge our `clients to conduct periodic stakeholder meetings throughout the course' of a' project like this one so that each party's wants and needs 'can be put' on'the table and but also considered in the context of what makes sense for the- largerenterprise. In the absence of proactive discussion that tempers" expectations - and -builds I consensus; support for some key improvement initiatives may be lacking in some quarters and the overall success of the project may be reduced.: The success of Mercury Associates' client service philosophy can be measured in several ways: the numbers of years we have been serving clients; the number of clients, we have,.served; the 'amount of money our clients have spent on our services; and -the duration' of'our `client -relationship's:' By all of these standards, we believe that we have served our clients well. We have also identified certain guiding principles in the course of working with more than 500 client organizations'- -"and training' "'thousands of fleet management professionals - to improve their fleet management and maintenance practices. We believe that understanding and acting on these principles is crucial to any organization Mercury Associates, Inc. 4 EXHIBIT 66A.1" Proposal to Provide Fleet Management Consulting Services that wants to. provide fleet management services efficiently and effectively. We discuss each of them briefly below. ® - Quality. The quality- of the Services' provided by a fleet management organization is of paramount importance because, to put it simply, without vehicle. and' equipment users there would- be- no need for such organizations. The most, important measure of:the performance of these organizations is the ..level of servicecthey: provide.!to ,their customers, that is, the safety, availability, suitability, reliability, efficiency, and environmental soundness of the vehicles and equipment � they- provide, to --organizations that need such resources to their' jobs well. — ow -quality services directly affect the operational ..readiness, safety; ,performance; .and costs -of vehicles and equipment used by the County. ® Cost. Any organization can provide high -quality services if _cost_ is- no object. Few of us, alas, have the luxury of working for such organizations — whether in the public or private sectors. The costs of the assets and services provided by an organization are. important: at two levels..First, all agencies and employees, regardless: -of whether they deliver a "front-line" service such as refuse collection ora support service like -vehicle maintenance — have an overarching fiduciary responsibility to use, -taxpayers "money wisely. Second, in contrast to a service like law enforcement, .most fleet management services can be performed by private -sector organizations. Consequently, the need to provide services that are competitive in quality and cost with those offered by contractors and vendors ' is -an inescapable reality of public -sector fleet management in the 21st.century. ® Tactics. Fleet services organizations have always had to perform many different vehicle=related, activities"every', day: replacing vehicles, scheduling Vehicles for maintenance and repair services, assigning work orders to mechanics, farming out -certain., jobs to vendors, ordering parts, submitting warranty, claims; supervising mechanics, processing vendor payments, preparing management reports; cand so � l forth. However, technological, regulatory, and other developments over the last decade or so have significantly increased the attention fleet organizations must devote to management'activities'that'have riothing'to do with vehicles and equipment per se... -"High-performance' fleet organizations° today must handle demands encom assin eve hin ' from identi in vehicles for replacement to writing P 9 � g fY g'� P 9 technical specifications;- from contract- negotiation and vendor performance control to risk management and human resources management; from information technology to cost accounting and financial reporting. Under these circumstances, there is a danger in organizations getting caught up in the demands. of performing some*, tactical^activities — trying to ensure that new vehicle bid specifications identify all standard !equipment instead of making sure that the organization-gets•the right vehicle `for,the job and the most competitive cost, for instance — while neglecting others. Mercury Associates, Inc. 5 EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services ® Strategy. A strategic approach to fleet management is one in which the interrelationships among and between the many vehicle management and business management functions that an organization must perform is both understood . and managed;. . For,.example,, optimizing vehicle performance requires :-effective vehicle,,, acquisition,,; :maintenance, and replacement processes..,,,, Deficiencies,,in, .any ,one ,.of...these areas can undermine fleet perfprman,ce-no matter how good an organization's policies and procedures are in the other two... Moreover,. -,effective performance in each of these areas requires. coordination with. other nonfleet-related processes. It is difficult to — _ — maintain a fleet of, reason age and condition; -for instance, when a fleet ,organization is; hamstrung by insufficient. funding. A strategic approach to fleet management and maintenance is important, then, for managing the fleet operation in its totality, for avoiding or minimizing "stove -piped" business practices and information, systems, and,for..ensuring that decisions made in one area do not undercut capabilities or performance in another. Information Gathering and Evaluatl'n-Te.chnigiaes We will utilize a number of review and evaluation techniques in this project, as briefly outlined below: ® Condition and Performance Measurement. Data availability permitting, we will. employ. quantitative measurement techniques to develop an understanding of the soundness of the current fleet management and operating practices included, in the scope of the study.-r This involves computing performance statistics for key attributes of fleet performance and comparing them against suitable internal and industry benchmarks — where such standards exist. In addition to serving .as. a valuable, diagnostic tool, performance measurement adds an important element, of, objectivity, and hence, credibility to our findings and conclusions. ® .,.Business Process Mapping and Gap.A,nalysis. The other key method we will use to evaluate fleet management --practices is process mapping and gap analysis. This involves ascertaining I) if -.,and how specific management and operating processes are formally defined; 2) the soundness of their design — e:g.,, their.; logic;_ thoroughness,;: compliance with applicable regulations, responsibility and authority for execution; and so forth; 3) their consistency with industry best practices; and 4)Ahe nature..of their actual execution, which is a function of how they ,are: communicated (e.g., through a policy and procedure manual) and how, employees are.. held, accountable for using them. ® Interviews. We; will conduct customer,-- ,employee, and other stakeholder interviews �as necessary -to --obtain relevant supporting data and information regarding.fleet.management and ,maintenance practices. r Mercury Associates, Inc. 6 EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services ® Site Visits. No amount of second-hand information can substitute for first-hand inspection of facilities and vehicles; and observation of day-to-day work activities. Simply walking through motor pool and maintenance facilities and yards and ob9erving4ha number, condition; and appearance of vehicles waiting for service and/or waiting to be picked up by customers; the layout, age, condition, orderliness; and cleanliness: of'the facility; and the general level of employee ` activity --all, provide ', clues about the performance of a fleet management','organization that-' give direction to our interviews, process mapping, and data -analysis', efforts., " • Comparisons to Industry' !Best` Practices: An important technique we use for evaluating the current: business "processes and practices of our clients is through comparisons to' industry' best practices. Fleet management "best practices" are ways of organizing and conducting business that reflect state-of- the-art thinking and technology and 'produce the best business outcomes. They are recognized by" industry experts and best -of -breed fleet management professionals as ways of managing fleet operations that produce superior results in terms of efficiency, effectiveness, customer satisfaction, and managerial confidence and support: They- are formally presented in manuals and periodicals published by industry groups such as the National Association of Fleet Administrators and the American Public Works Association; in presentations !made -by speakers "at the national and regional conferences of such associations; in -articles publishedin independent trade publications such as Govemment Fleet and Utility Fleet Management; and in the policy and procedure manuals - of individual,- leading -edge fleet management organizations.. Work Plan Tasks and' Deliverables In the paragraphs that follow we have described the activities that we propose to include in conducting this project for the City. Phase 1: Develop °Understihdind'bf Current Fleet Operations This.task encompasses our efforts and activities to manage the engagement, collect information and conduct interviews,' and develop,a thorough understanding of existing operations and issues. Step 1 Information and Data ReQuest We will provide the City with"a'' 'written information request within one week of executing 'a contract (or 'receivirig other written authorization to proceed pending the finalization of a contract), which identifies the quantitative data and documentary material pertaining ! 'tI* pity 11 ' ' 6 " i 1 "' " that we would like to obtain to conduct our analysis. Mercury Associates, Inc. 7 EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services We will also request a fleet inventory containing information such as the following on each vehicle/piece of equipment: year, make, model, serial number (VIN), license plate number, class code,. ownership code (i.e., leased or owned), user agency name and ,code,,. vehicle in-service, date,, status code (e g. pool, backup), original purchase price and/or current book value,. life ,to -date maintenance and repair cost, current meter, reading, utilization during:'a recent 12-month period, maintenance and repair costs during a- recent 1.2=month period (broken out by labor, parts, and subcontractor charges). ° We realize that some, perhaps much, of the quantitative data we will request may not be -readily- available -or may --not be--very-reliable. ---Where -it --makes sense -to -expend extra effort to obtain critical -information or to develop it from scratch, we will work with the City to do so by'providing data collection templates and guidance on collection methodologies. We'fully understand the importance of being able to back up findings and conclusions with hard numbers. 'However;*we'do not believe in analyzing data as an end in itself; and there will be certain areas in which data quality is such -that -the "juice" simply isn't worth the is that'is where the level of effort required to quantify certain things will not measurably add to our understanding of the City's fleet management practices.' The information request also will identify a wide array of documentary material that we would like to obtain that will assist us in developing an understanding of regulations, rules, policies, procedures; and practices' in th0leet management area. Examples of the materials we will request include:, i Operating and capital budgets; ® Organization charts and personnel rosters; Mission statements and annual. reports;,, Policy and procedure statements; and ® Commonly used recordkeeping forms and management reports. Task 2 Proiect Kickoff Meeting We will participate in aproject kick-off meeting as soon as possible after executing a contract or receiving other written notification to proceed. The primary objectives of this meeting will be to introduce the key members of our project team to the City and to confirm both parties' understanding of key study parameters such as scope, deliverables, and timelines:: - We recommend that specific agenda items for this meeting include the following: ® Introductions of team members and discussion of specific roles and responsibilities on the project; Mercury Associates, Inc. 8 EXHIBIT "A.1" .Proposal to Provide Fleet Management Consulting Services • Review and _discussion of. the project approach, methodologies, work plan, : deliverables, schedules, and critical success factors (which we will record in a formal project plan); _ ....... • Review- and discussion of the draft information request, which we will have delivered beforehand; • Establishment of agreement on project progress reporting frequency and format; • Determination;__of__project--logistical=procedures --including--points--of--contact; - ------ protocols for; scheduling meetings; arranging -.site visits, setting up focus group sessions, .etc.; work,space.for. our team members when in town; and • Resolution of . any other outstanding contractual or administrative matters relating'to the_ conduct of_fthe.study.'_ . During this meeting we will also want to discuss what the overarching issues are relating to both the City in general and Specifically to the fleet operations program. We believe that it is essential for our project team to hear first-hand about the history of the fleet services program, past success and challenges, ,the current, fiscal situation, political issues and considerations that we should be ,aware„ of, and the. general perceptions of management officials regarding. the .organization and operation of fleet services activities. These insights will not only enable us to conduct the project in a more efficient manner, they will also help us, to. ensure that we do not overlook issues that are of interest to important stakeholders. After this meeting we will submit a project management plan based on our understanding of the purpose, objectives and scope of the project. This plan will include any revisions required to the project work plan, formatting standards for the project report, content and frequency of status reports, and schedule for milestone activities such as delivery of the draft report and the management presentation. Task 3 —Interviews and: Site Visits In this step we will make site visits and conduct interviews with fleet program stakeholders in the four departments that the City identified as having major fleet operations: This effort -will include meetings with management, fleet staff, and consumers of fleet services within each department. We will also want to visit each fleet maintenance, Shop and fuel sites in order to meet key fleet management staff and view fleet operations in action. Finally, in this task we will meet with organizations that are customers of each department's fleet services program 4o hear, their views regarding the services that they are currently receiving, solicit their recommendations for improvements, and to gain a complete understanding of_,user needs and internal practices that impact on fleet size and fleet and support requirements. In our view this is a very important step in this project because it is appropriate to recognize that a successful fleet Mercury Associates, Inc. 9 EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services management program is not only efficient in the sense, for example, of using resources wisely,_ but also .effect ve,.in, the, _sense,,of -meeting the mobility needs of organizations that rely on vehicles and equipment to do their jobs. Task 4 — Analyze Costs and Services. Levels In this task we will assess and compare the competitiveness of current fleet services costs " against both other comparable organizations and private vendors and will calculate and analyze .: (subject to, the t availability of existing data) quantitative measures of fleet performance and compare performance in key cost and service areas against established industry standards and benchmarks. Our objective in this - task -will -be to -develop -cost-data-for-each�major-fleet-maintenance function and -activity- such as parts rnahagement, and inventory practices; in-house maintenance and repair activities, procurement - and management of commercial vendor services, and management of fueling operations., Then, subject to the quality of available data, we will also develop benchmark comparisons; for' service quality for each of these same functions and -activities.- Examples of performance measures and characteristics we. will compare. include, but are not,limited, to the following: ®, Ratio.of maintenance employees to vehicle equivalents; Average vehicle age; ® Total maintenance, and repair cost per -vehicle equivalent; • Preventive maintenance compliance rate; • Rate of scheduled to unscheduled repairs; • Fleet availability percentage; • Supervisor to mechanic ratio; • Administrative support staff ratio; • Mechanic productivity; • Shop capacity utilization; • Parts. inventory, turnover rate; and • Parts usage per, vehicle equivalent. • Vehicle downtime; • Maintenance turn -around time;( ® ; Rework. rate;: . • . Maintenance operation staffing levels; Mercury Associates, Inc. 10 EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services Average parts delivery times; ` - •, . Percent of. orders :filled from stock; ® Stockout rates; and • Parts o p eration staffin levels. Phase 2 - Evaluate Service DelivibN Models' In ' this task we will assess alternative _'service deliveryry__ models _and_ identify --any-__ ;potential economies of scale, service improvements, and/or cost reduction opportunities available* to the, City from changing the manner in which fleet services are delivered. The models that' we will examine: include outsourcing fleet activities, centralizing fleet operations within one 'organization (e.g. The Fleet Management 'Department . ), and keeping the current model of department provided services in place. Task 5: Assess Outsourcing Feasibility In this step we will assess opportunities for the City to improve services and/or reduce costs by outsourcing some or all fleet services. The work that we will complete in this area is described below. Review. Current Outsourcing Practices. We will begin by documenting all fleet maintenance services that City departments currently outsource. We will compare current practices to other fleet organizations that we have worked with and particularly to other counties. Our aim will be to ascertain if City departments are following industry best practices by making appropriate use of vendors for specialized repairs and for support during periods of peak workload. We will prepare a fit/gap analysis of current outsourcing practices as part of this step. Analyze Outsourcing Options. In order to outsource maintenance services, there must be vendors available in the area for City departments to contract with. In our experience, these vendors are available from two sources — local repair shops (both dealers and independent repair shops) and international maintenance management companies (including First Vehicle Services, AIIStar, and Penske). We wiWl nalyze both outsourcing approaches from the perspectives of service levels, cost, risk, convenience, and contract management level of effort. For the maintenance management company model, we will compare existing department costs and service level performance (from Task 2 above) to those provided for in typical contracts that we have been involved around North America over the past two decades. For the local vendor option, we will query vendors about their interest and capacity to support the City's fleet maintenance needs. We will also benchmark their labor and parts costs against City departments' in-house costs and estimate travel/productivity costs related, to transporting vehicles to vendor shops. Mercury Associates, Inc. EXHIBIT "A.1" Proposal to Provide.Fleet Management Consulting Services Recommend Outsourcing Model. In this step we will prepare a recommended outsourcing model based on the results of our analysis in the preceding task. The options that will be considered include total outsourcing, less outsourcing then current practice, more outsourcing than current practice, or no change from current practice. Our analysis will include a benefit -cost analysis for the services that are recommended for outsourcing. Our focus will be on demonstrating that the recommended model provides overall value to the City based on cost, service, and customer considerations. Task 7 —.Assess Consolidation Feasibility_-. — --In this task we will analyze potential synergies and economies of scale available to the City from combining, some:: or, all fleet. activities between departments. As with the analysis of outsourcing feasibility, we , will consider centralization from many perspectives including cost impacts, service', level impacts, infrastructure capacity,, management capabilities,. etc. We will assess each department's capacity to provide services to other departments, the impact on staffing requirements and shop space needs, opportunities to eliminate duplicative activities, and, impacts , on service levels and priorities. Our recommendations will consider options for full centralization, partial centralization, and no centralization of services. The recommendations will be based on the organizational model that we believe is. in the best interests of the City as a whole. Phase 3 — conduct Best IlAanagement Practices Assessment Once we have determined „the most efficient organization and business model for City fleet operations, in. -this task. we will analyze the processes used to deliver fleet services and recommend modifications to current practices that we will yield improvements to service levels and reductions in costs. In -this task .we will `review practices in . approximately 50 specific functional areas of fleet operations. The results of this evaluation will serve as the foundation for developing specific . recommendations for. .,modifying or reengineering current organizational structures;, staffing levels; and business processes so as to reduce the costs and/or improve the quality and effectiveness of both fleet management activities and the vehicles and equipment themselves that comprise the City's fleet. We will evaluate current practices using process mapping and gap analysis techniques aimed. at. first defining:.and.,th.id enentifying strengths and weaknesses in specific functional areas. We will utilize a detailed business process evaluation checklist to ensure the thoroughness of .our,review.. We will determine how processes currently are, performed through a combination of documentation review, employee interviews, focus group meetings, and site visits. We will determine how well these processes are defined and executed by assessing: Mercury Associates, Inc. EXHIBIT "A.l" Proposal to Provide Fleet Management Consulting Services 1.' Their intrinsic soundness (e.g., the clarity and logic with which they are -documented;: the way they are communicated to employees, and the manner in which they are- enforced); _ - 2. Their consistency with industry best practices which we have observed, and in many cases defined,' through,,,our project team's combined decades of professional, fleet management, ' consulting, public speaking, writing, and training experience; and 3. Their results, as reflected in the quantitative measurement of costs and performance levels in the previous task, and in the satisfaction levels of management officials, fleet management employees, and fleet users. Examples of the fleet maintenance practices we -will evaluate in this task include, by functional area, the following: . • Mission, Organization, and Staffing. We will evaluate the fleet program's organizational structure . and, personnel resources, including the appropriateness of authority and responsibility assignments, reporting relationships, lines of communication, supervisory spans of control, staffing levels, compensation - rates, ratios of. support (e.g., administrative and parts management) to service personnel,,, mechanic productivity and efficiency, workload management processes; and inter -agency coordination and cooperation. Significant fleet management related policies and procedures will also be reviewed -in this area. ® Customer Service. Good customer service management stems from an acute sensitivity to the needs and concerns of fleet users, and manifests itself in a set of communication, 'decision -making, reporting, and feedback processes which encourage fleet users to actively participate in the management, and not simply the use, of vehicles and equipment. Therefore, in this step we will review the fleet organization's customer service protocols including communication practices, reporting, meetings, and written communication such as service level agreements. ® Financial. Management., .,We will assess the soundness of all facets of cost control and management including- - Budgeting; - Point -of -sale receipts, monthly billing, collections, and cash flow management; Charge -back rate base content; structure; cost allocations, and methodology. In this area we will also assess the feasibility of creating an Internal Service Fund for fleet operations including structure (focusing on the segregation of capital and operating revenues and reserves), working capital needs, long-term vehicle and other fixed asset replacement costs, and enterprise -wide charge - back rates. We will identify implementation issues, steps, and timelines. Mercury Associates, Inc. 13 EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services • Fleet Assignment and Use. We will evaluate policies and procedures governing the justification of vehicle: purchases and assignments (e.g., permanent assignment versus use of pool vehicles for certain types of vehicle uses); minimum usage requirements. for assigned vehicles; vehicle take-home policies and practices; mileage reimbursement practices associated with the use of `employee LdWn'ed'vehicles on 'C"ity,business; and the measurement and ongoing monitoring and reporting of vehicle utilization levels by user department and vehicle class. We will also conduct a high level review of fleet utilization in order to develop initial conclusions regarding the appropriateness of the size of the City's fleet: 'We are.: also. available to conduct an in-depth ---- ----- -------- vehicle-by vehicle fleet rightsizing review as an optional task. • Vehicle Acquisition and. Disposal. We will evaluate the development of vehicle specifications; the development and execution of contracts for vehicle purchases; ad hoc purchasing practices; vehicle ordering, acceptance, upfitting; and in -servicing practices;- use of commercial rental Vehicles and equipment; vehicle., decommissioning and. disposal methods; and policies regarding the retention of assets that have been "replaced." • Asset Management and -Vehicle Replacement. We will evaluate policies, criteria, and other procedures used by the City to determine when different types of assets in the fleet should be replaced; long-term replacement planning practices; replacement financing practices and the adequacy of funding levels relative to replacement spending needs, based on established (or industry - standard) replacement cycles and life; and methods of handling unforeseen replacement needs (due, for,example,, to the premature loss of a vehicle in an accident). Fleet Maintenance. We will investigate and assess the appropriateness of all facets of the management and control of fleet maintenance and repair activities and day-to-day shop operations, including preventive maintenance programs; work scheduling;; work order assignment and work load management; road call dispatching and control; field service; warranty management; mechanic supervision; safety and regulatory compliance; mechanic training; quality assurance, parts management and supply; use of vendors; customer communication; and maintenance ­performance measurement. • Fuel Management. We will assess the soundness of all facets of fuel operations including execution and administration of bulk fuel contracts; execution and, administration of commercial fuel card program contracts; bulk fuel .inventory management; bulk fuel site management and operation, (e.g., site location, sizing, design, and construction; facility operation and upkeep; and facility security and ,regulatorycompliance); fuel card issuance and control; fuel .card, expenditure authorization and � control; automated fuel management system administratiorrand use; -vendor payment; and customer billing. • Facility and Shop Equipment. In this area we will conduct an assessment of the City's maintenance shop facilities in order to gain an understanding of the Mercury Associates, Inc. 14 i EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services adequacy of these facilities to support - efficient repair operations. The evaluation of the facilities will include a non-destructive, visual inspection to determine the general condition of the facilities. The location and capacity of the facility and. associated major equipment.will be evaluated to determine the ability of fleet management staff to effectively and safely perform preventive and corrective maintenance tasks. e Information Technology-. In Ahis area we will review the adequacy of the present work systems ,(CFA) : used .by:the -City for managing its fleet program. _ Our evaluation: will. include, a: - review , of . the application software programs,_ -- -------------------- - operating system and_ database software, network infrastructure, hardware, and current support services. We will also review how well this system is used in terms of data capture, ;staff training,, and reporting. Phase 4: Report and Recornmendatioris We will document our study,.methodology, findings, and recommendations in a formal report. The report will integrate the results of the previous tasks in a coherent business plan: that spells the: specific. strategies and actions that the City should pursue to optimize the quality and costs of its fleet management endeavors and of the services provided to fleet users. The report also will include the estimated staffing impacts (if any), and net budgetary impacts (i.e.,. costs and cost savings) associated with implementing our recommendations - as well as any implementation barriers and constraints. We will submit the report in draft form for review and comment by the City's project manager and other appropriate officials/personnel, make revisions as necessary, and submit up to eight printed bound copies and electronic copies of the document and associated graphics and data in Microsoft Word, Excel, Visio, etc. (as appropriate) formats. We will also make one presentation of the report to City management. Project Schedule We estimate that all deliverables associated with this project can be completed within four months after the City ' provides us with all requested information and data. Our firm has a well established track record of completing projects on time and within budget. Our..large staff , of � permanent, full-time consultants provides us with unparalleled capacity , to -meet our- client's - timeline requirements and to move additional resources . as, dictated -by: circumstances. We are confident that we can meet the City's schedule expectations for this engagement. The table below provides a detail of our proposed schedule and assumes a May 3, 2010 start date. , . , Mercury Associates, Inca - 15 EXHIBIT "A.1" Proposal to Provide Fleet Management Consulting Services x Mayes June lulyk August _ x work Plan Phase 2 3 1: Develop Understanding of Current Operations 2: Assess Service Delivery Model Options 3: Best Practices Assessment 4: Report and Presentation The staff organization that we are proposing for this engagement is shown in the following table: Please note that three members of our project team have experience managing fleets in California (Mr. Owen with Los Angeles County, Mr. Simon with Santa Clara County, and Ms. Christensen with TRW). In addition, the fourth member of our team (Mr. Yankovich) has experience working for a public works department (Kansas City/Wyandotte County,. Kansas). Also please note that this project will be managed from our office located in Orange County. Cameos for our project team are provided below and resumes are included in the Appendix. Mercury Associates, Inc. 16 4 :�-,' . V EXHIBIT "B" Payment Schedule 1. Charges for time during travel and other reimbursable expenses are included in the hourly rate and charges found in #2 of this exhibit. 2. CONSULTANT shall be entitled to progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedule. TOTAL FEE: $49,335 HOURLY RATE: $190 PAYMENT DELIVERABLE AMOUNT o Progress Payment #1 (35 /o of contract) Completion of Kickoff Meeting, Data $17,265 Gathering, Interviews, Site Visits Progress Payment #2 (50% of contract) Draft Report and Recommendations $24,670 Final Payment (15% of contract) Final Report, Recommendations and $7,400 Presentation Total $49,335 3. Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 4. CONSULTANT shall submit to CITY an invoice for each progress payment due. Such invoice shall: I) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and 5) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. Mercury Associates, Inc. Fleet Analysis EXHIBIT B f 5. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. Mercury Associates, Inc. Fleet Analysis 2 EXHIBIT B ' ® DATE (MMIDDlYYYY) ®/�® CERTIFICATE OF LIABILITY INSURANCE oPID jY 05/14/10 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). Howard Insurance Agency, Inc. 6900 Wisconsin Ave Suite 450 Chevy Chase MD 20815 Phone:301-652-2500 Fax:301-652-2530 .__.__D ------------ wsuRE MERCURY ASSOCIATES, INC. 16051 Comprint Circle Gaithersburg MD 20877 CUSTOMER ID 11: MERCU-1 INSURER(S) AFFORDING COVERAGE INSURER A: The Hartford INSURERB: Houston Casualty Com INSURER C : INSURER D INSURER E : INSURER F : rnVFRArFC CERTIFICATF NIIMRFR- REVISION NUMBER: NAI0 # 29424 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. - LTR f TYPE OF INSURANCE AUU INSR WVD POLICY NUMBER LICYEFf--�OLfCYEXP' (MMt0D1YYYY) (MMIDDNYYY) LIMITS GENERAL LIABILITY EACH OCCURRENCE s2,000,000 A X COMMERCIAL GENERAL LIABILITY 42SBA13V6611 09/10/09 09/10/10 -'DAVAZiETO-RIE PREMISES(Eaoccurrence) , $ 500,000 CLAIMS -MADE � OCCUR MED EXP (Any one person) $ 10 , 0 0 0 $ Z 10O� OOO PERSONALBADVINJURY GENERAL AGGREGATE s4,000,000 PRODUCTS - COMP/OP AGG s4,000,000 GEN'L AGGREGATE LIMIT APPLIES PER ' X POLICY PRO•El JECT LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $2OOO 000 (Ea accident) , , A X _ ANY AUTO 42UEC 4 A� ED 07/27/09 07/27/10 —'----�'------ BODILY INJURY (Per person) $ }{ _l ALL OWNED AUTOS V A _...._.._._.....__..........._...._..-. BODILY INJURY (Per accident) $ X SCHEDULED AUTOS PROPERTY DAMAGE _X X HIRED AUTOS NON -OWNED AUTOS j�•/7 n ,t41C J �t i Me , j[3/ 0 6y (Per accident) $ $ $ A UMBRELLA LIAB x OCCUR 42SBABV6611 09/lo/o9 09/10/20 EACH OCCURRENCE s2,000,000 AGGREGATE s2,000,000 EXCESS LIAB CLAIMS -MADE X l $ DEDUCTIBLE X RETENTION $ 10,000 $ A WORKERS COMPENSATION 42WECPD2988 07/01/09 �07/01/10 X TWC ATU-ITS ER_ AND EMPLOYERS' LIABILITY ANY PROPRIETORIPARTNERIEXECUTIVf� _ E.L. EACH ACCIDENT _ $ 1 , 000, 000 OFFICER/MEMSER EXCLUDED? (Mandatory In NH) !A ---"""--------""'-'"--'-'-'-`"""' E.L. DISEASE - EA EMPLOYEE --- - $ 1 , 00 0, 000 E.L. DISEASE - POLICY LIMIT $ 1 , 000 , 000 If yes, describe under DESCRIPTION OF OPERATIONS below B Professional Liab H7fl413970 oa/o1/o9 0s/o1/10 $l0i{ Ded $1, 000, 000 A Hired Auto Ph s. D 42UECTA4314 07/27/09 i07/27/10 $100 Ded $i 000 000 DESCRIPTION OF OPERATIONS I LOCATIONS! VEHICLES (Attach ACORD 101, Additional Remarks Schedule, If more space Is required) THE CITY OF HUNTINGTON BEACH IS NAMED AS AN ADDITIONAL INSURED. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED P�CJAICELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. TIVE CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTTNGTON BEACH CA 92648 ©19B PORATION. All rights reserved. ACORD 25 (2009/09) The ACORD name and logo are registered mar o A ORD �, �) • '�i fi • ,fit �' � I Date: 12/15/2009 Department: Public Works Requested by: Jerry Thompson PARTS I AND II OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE COMPLETED AND SIGNED FOR APPROVAL. THIS FORM MUST BE FILED WITH ALL APPROVED CONTRACTS. (This section must be completed by the requesting department and signed by the City Administrator before proceeding with the solicitation or contract process.) 1) Briefly provide the purpose for the agreement: Perform professional consulting services in evaluating and analyzing City fleet operations. 2) Estimated cost of the services being sought: $ 50,000 3) Are sufficient funds available to fund this contract? ® Yes ❑ No 4) Is this contract generally described on the list of professional service contracts approved by the City Council? If the answer to this question is "No," the contract may require approval from the City Council.) ❑ Yes ® No J I, 5) Business Unit and Object Code where funds are budgeted: 166 `7 /''./04 e --30o6 6) Check below how the services will be obtained: ® A Bid solicitation process in accordance to the MC 3.03.060 procedures will be conducted. ❑ MC 3.03.08(b) — Other Interagency Agreement procedure will be utilized. ❑ MC 3.03.08 — Contract Limits of $30,000 or less exempt procedure will be utilized. 7 Jerry Thompson Project Manager Name A NIED ❑ by Administrator's Signature (VIA Director of Finance) Department Wead Signature Date /� /O r Director of Finance Initials Deputy City .Administrator Initials �� NON"PTO Z CITY . ` qs 1 BEACH Professional Service Approval Form PART 11 Date: 5/5/2010 Project Manager: Jerry Thompson, General Services Manager Requested by Name if different from Project Manager: D. Jubinsky, Sr. Admin. Analyst Department: Public Works PARTS I & II OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED FOR APPROVAL. PART 1 & H MUST BE FILED WITH ALL APPROVED CONTRACTS. 1) Name of consultant: Mercury Associates, Inc. 2) Contract Number: PWK 61063Z DD (Contract numbers are obtained through Finance Administration) 3) Amount of the contract: $ 49,335 4) Is this contract less than $50,000? ® Yes ❑ No 5) Does this contract fall within $50,000 and $100,000? ❑ Yes ® No 6) Is this contract over $100,000? ❑ Yes ® No (Note: Contracts requiring City Council Approval need to be signed by the Mayor and City Clerk. Make sure the appropriate signature page is attached to the contract.) 7) Were formal written proposals requested from at least three available qualified consultants? ® Yes ❑ No 8) Attach a list of consultants from whom proposals were requested (including a contact telephone number.) 9). Attach Exhibit A, which describes the proposed scope of work. 10) Attach Exhibit B, which describes the payment terms of the contract. t4 J Director of Finance (or desig ee) Signature Date EVALUATION AND ANALYSIS OF FLEET OPERATIONS LIST OF FIRMS SUBMITTING PROPOSALS WITH AMOUNT Mills and Associates $25,830.00 Spectrum Consulting $40,625.00 Mercury Associates, Inc. $49,335.00 Lynn Merrill $51,572.50 CST Fleet Services $52,260.00 Matrix Consulting Group $55,000.00 Fleet Counselor Services Inc. (James Wright) $55,050.00 Management Partners Incorporated $84,400.00 Lorick Associates (LA) Consultin.................................................................. $90,004.00....