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CONTRACT 7443 Professional Services AgreementAgreement No. 7443 a PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND MATRIX CONSULTING GROUP, LTD. This AGREEMENT is entered into this 21 day of October, 2025, by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city ("CITY") and Matrix Consulting Group, LTD., a California Corporation ("CONSULTANT"). 1. CONSIDERATION,. A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, below; B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed $134,800 for CONSULTANT's services. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit 'A" which is incorporated by reference. 2. SCOPE OF SERVICES. A. CONSULTANT will perform services listed in the attached Exhibit "A," which is incorporated by reference. B. CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement. 3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CITY will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have fifteen (15) days after such notification to cure any shortcomings to CITY's satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT". -1- Agreement No. 7443 4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit "A") the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that work during the preceding billing month and a cumulative cash flow curve showing projected and actual expenditures versus time to date. 5. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year. 6. FAMILIARITY WITH WORK,. A. By executing this Agreement, CONSULTANT agrees that it has: Carefully investigated and considered the scope of services to be performed; Carefully considered how the services should be performed; and iii. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. B. If services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT's own risk until written instructions are received from CITY. 7. TERM. The term of this Agreement will be from October 21, 2025, to dune 30 2026. Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A"; B. Termination as stated in Section 15. 8. TIME FOR PERFORMANCE. -2- Agreement No. 7443 A. CONSULTANT will not perform any work under this Agreement until: CONSULTANT furnishes proof of insurance as required under Section 22 of this Agreement; and CITY gives CONSULTANT a written notice to proceed. B. Should CONSULTANT begin work on any phase in advance of receiving written authorization to proceed, any such professional services are at CONSULTANT's own risk. 9. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond CONSULTANT's control, CITY may grant a time extension for the completion of the contracted services. If delay occurs, CONSULTANT must notify the Manager within forty-eight hours (48 hours), in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement's schedule. The Manager will extend the completion time, when appropriate, for the completion of the contracted services. 10. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits appear below: A. Exhibit A: Scope of Work 11. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 12.TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number. 13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 14. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, -3- Agreement No. 7443 or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 15. TERMINATION. A. Except as. otherwise provided, CITY may terminate this Agreement at any time with or without cause. B. CONSULTANT may terminate this Agreement at any time with CITY's mutual consent. Notice will be in writing at least thirty (30) days before the effective termination date. C, Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT's own cost; CITY will not be obligated to compensate CONSULTANT for such work. D. Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY's option, become CITY's property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section 1(C). E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. 16.OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired, but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of CONSULTANT's completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY's own risk. 17. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by CONSULTANT to any other person or public CITY without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will I" Agreement No. 7443 be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 18.INDEMNIFICATION. A. CONSULTANT agrees to the following: L Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement. ii. Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise. B. For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers. C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. D. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 222, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 19.ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. -5- Agreement No. 7443 20.INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. 21.AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement. 22.INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Commercial general liability: Professional Liability Business automobile liability Workers compensation Limits $2,000,000 $2,000,000 $1,000,000 Statutory requirement B. Commercial general liability ("CGL") insurance must meet or exceed the requirements of ISO-CGL Form No. CG 00 01 0413, or equivalent, covering CGL on an "occurrence" basis, including property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. 0 Agreement No. 7443 C. Professional liability coverage will be on an "occurrence basis" if such coverage is available, or on a "claims made" basis if not available. When coverage is provided on a "claims made basis," CONSULTANT will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. D. For automobiles, the insurance must meet or exceed the requirements of Insurance Services Office Form Number CA 0001 covering Code 1 (any auto), or, if CONSULTANT provides proof of a personal automobile policy, such personal policy must include and indicate business venture coverage with limits no less than $1,000,000 per accident for bodily injury and property damage. If CONSULTANT has no owned autos, Code 8 (hired) and 9 (non -owned), with limits no less than $1,000,000 per accident for bodily injury, and property damage must be included in coverage. If CONSULTANT does not use an auto for any component of this Agreement's performance, then CONSULTANT must sign and submit the form attached as Exhibit "B" to CITY before carrying out work under this Agreement. E. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. CITY's additional insured status will apply with respect to liability and defense of suits arising out of CONSULTANT's acts or omissions. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY, and the notice must include any necessary endorsement to facilitate such notice to CITY. F. CONSULTANT will furnish to CITY valid Certificates of Insurance evidencing maintenance of the insurance required under this Agreement, a copy of an Additional Insured endorsement confirming CITY has been given Additional Insured status under the CONSULTANT's General Liability policy, and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." G. Required insurance endorsement language is as follows: -7- Agreement No. 7443 Additional Insured Endorsement with this language: "The City of El Segundo, its elected and appointed officials, employees, and volunteers as additional insureds." ii. Cancellation Endorsement with this language: "The City of El Segundo will receive thirty (30) days written notice in the event of cancellation, nonrenewed or reduction." M. Primary and Non -Contributory Endorsement with this language: "Coverage is primary and non-contributory such that any other insurance that may be carried by the City will be excess thereto." H. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to Section 15. 23. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation. 24.INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on the project, which will include a schedule update and a short narrative description of progress during the past month for each major task, a description of the work remaining and a description of the work to be done before the next schedule update. 25. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows: If to CONSULTANT: Attention: Alan Pennington Matrix Consulting Group, LTD 1875 S. Grant Street Suite 960 650-858-0507 aDen nin aton matrixc .net If to CITY: Attention: Michael Allen City of El Segundo 350 Main Street El Segundo, CA 90245 310-524-2345 mallen:@else.gundo.org Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or 10 Agreement No. 7443 addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 26. PROHIBITED USE OF ARTIFICIAL INTELLIGENCE. A. Restriction on Artificial Intelligence Usage. CONSULTANT must not utilize, employ, or incorporate any form artificial intelligence, machine learning, or other similar technologies (collectively, "Al") in the provision of professional services in this Agreement without CITY's express written consent. B. Exclusions. The Al prohibition set forth directly above will not apply to general business tools and software that may have Al components but are not directly involved in the execution or delivery of professional services that this Agreement covers, provided that such tools and software do not significantly impact the quality or nature of such services. C. Notification. CONSULTANT must promptly notify CITY, in writing, of any proposal to employ Al in connection its provision of services to the CITY under this Agreement. CITY will have the sole discretion to grant or deny such proposal. 27. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's conflict of interest regulations. 28. BACKGROUND CHECK; FINGERPRINTING; ASSOCIATED TRAINING. If CONSULTANT's work involves contact with minors, before conducting any performance of this Agreement, all Seller's employees, subcontractors, volunteers, or other agents that will perform CONSULTANT's work under this Agreement must submit to and pass a background/fingerprint investigation conducted or approved by City. CONSULTANT affirms and attests that its employees, subcontractors, volunteers, or other agents that will perform CONSULTANT's work under this Agreement have completed training in child abuse and neglect identification and training in child abuse and neglect reporting, which may be met by completing the online mandated reporter training provided by the Office of Child Abuse Prevention in the State Department of Social Services. CONSULTANT affirms and agrees that the background and reporting training will be completed before beginning performance under this Agreement. Upon City request, CONSULTANT will promptly furnish proof of completion of such mandated reporter training to City, but in no event no later than two business days following City's request. 29. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT's bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. 0 Agreement No. 7443 Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 30.THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's obligations under this Agreement. 31.INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 32. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement. 33. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 34. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 35. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 36.AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. CITY's executive manager, or designee, may execute any such amendment on behalf of CITY. 37. ELECTRONIC SIGNATURES; SIGNATURE AUTHORITY. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one Agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code § 16.5, the Parties agree that this Agreement, Agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature. CONSULTANT warrants that -10- Agreement No. 7443 its signatory (or signatories, as applicable) to this Agreement has the legal authority to enter this Agreement and bind CONSULTANT accordingly. 38. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 39. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement. 40. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will immediately terminate without obligation of either party to the other. 41. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. [Signatures on next page] -11- Agreement No. 7443 IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. CITY OF EL SEGUNDO Darrell George, City Mana r ATTE T 21 Susan Truax, City Clerk APPROVED AS TO FORM: MARK D. H NSLEY, City Attorney By: David King, AssisLaR City Attorney MATRIX CONSULTING GROUP, LTD.: Alan Pennington, Pr sident Taxpayer ID No. 05-0545979 /' Vr I �1OA � V? a -12- Agreement No. 7443 EXHIBIT "A" SCOPE OF SERVICES STAFFING ASSESSMENT .......... ..... ._.. President Senior Senior Total Task / Vice Manager Manager Consultant Consultant Hours Total Fee President 1. Current State 24 12 40 40 24 140 $25,220 _.._ _...._ ....... ..................... _ _ _ ...... ....... 2. Servic e Delivery 16 8 40 40 16 120 $21,280 ._. ........ ....... �._......_ _....._ 3 Org. and Staffing 24 12 60 56 24 176 $31,280 . 4. Report and Plan 24 8 24 24 16 96 $17,920 _._..... _. ......._ ......... Total Hours 88 40 1.64 160 80 532 _.. ._......... ......._._. Hourly Rate $250 $225 $175 $160 $130 ............... ._ ....... Total Professional Fees $22,000 $9,000 $28,700 $25,600 $10,400 $95,700 Travel Expenses $4,200 Option C Benchmarking 8 4 4 4 64 84 Total Project Cost $99,900 TASK 1: DEVELOP A CURRENT STATE PROFILE AND FRAMEWORK Meet with the City Manager to discuss the project, initiate and refine specific project tasks, and establish a schedule for the engagement. Interview department heads and division managers to gain insight into the organization's existing plans and key organizational and operational issues facing each functional area. -The purpose is to understand the current processes, service levels, staffing, and organizational issues. Departmental leadership interviews will be supplemented by a departmental focus group that allows for additional staff to provide insight into the study. Review available information, including mission statements, budgets, workload data, job descriptions, SOPs, and other documents that provide insight into each department's service delivery approaches, key performance indicators, regulatory constraints, and operational practices. Understand staffing and responsibilities in each function. Document staffing trends and identify gaps, if any, in key service areas and skill sets. Develop an understanding of the scope of the programs and services for each department/division under review, including historical, current, and projected -13- Agreement No. 7443 workloads, scheduling (public safety) resource allocation, and service levels for each department/division to be reviewed. • Document the major software and technology employed throughout the City and develop an understanding of the current utilization levels. TASK RESULT The project team will develop a current state profile of the staffing, workload, performance goals, operations, and organizational structures of all City departments. TASK 2: SERVICE DELIVERY AND PROCESS EFFICIENCY IMPROVEMENTS To address the challenge of sustaining fiscal responsibility while maintaining high service levels, the City must implement strategic measures focusing on efficiency and effectiveness. This task aims to evaluate different methods of service delivery, service levels, and process improvement to identify potential efficiencies and improvements, as well as any associated cost savings these changes may bring. We will conduct departmental focus groups to discuss current processes, challenges, and improvement opportunities. This analysis will lead to recommendations to modify service levels, streamline services, provide direction on effective service delivery methods, use technology, and implement process improvements. TASK RESULT The project team will develop an interim report that provides opportunities to realign services or service delivery, establish performance indicators, and enhance technology. TASK 3: ORGANIZATIONAL AND STAFFING ANALYSIS This task will analyze the workload, staffing, and organizational needs for all departments. The project team will review the current workload and service level expectations for each department and identify the staffing needs (in-house and contracted). The analysis in this task will include the following elements: -14- Agreement No. 7443 ,°I'.1 1:-INIA�Ail1 1W14 t1 ,° • Analyze current workload and apply service level benchmarks and time requirements to identify the staffing resources to meet service level expectations. • Will staffing allocations need to be adjusted for future needs? • What additional staffing is required to implement desired programs or services (such as an enhanced strategic planning, communication, and organizational culture focus)? OF:11tw ANIZA 1! IUMAI s"' I?IX UIRE • Are there gaps or overlapping or duplicated functions? • Is the structure too "tiered" or too "flat" in management staffing? • Are functions placed too high or too low in terms of their importance? • Are services/functions appropriately located/assigned in the organization? SPA Ik`,il D 1'u„I ° II 1 � ID lk...., • Are spans of control for executive, management, supervisory, and lead personnel appropriate? • Are there any modifications needed in operational practices, technology, or other service delivery methods to implement the proposed span of control? 1°I S CAI.... All'41'1 CIIS'11 SAVll llN1GS A11111A11 Y SIII�'s After the process analysis and staffing recommendations have been made, the project team will evaluate the fiscal impact of each recommendations. This will include a detailed cost analysis of maintaining the desired service level and staffing levels, evaluate potential outsourcing costs for contracting service, and impact of meeting service level goals. The project team may develop alternative service level and staffing scenarios (internal and external) and identify the fiscal impact of those recommendations. This task will result in developing a workload and staffing analysis and recommended organizational structure to ensure consistency throughout the City organization. Preliminary recommendations will be provided to the City's project steering committee for their review. Once preliminary recommendations have been reviewed, the project team will conduct a fiscal analysis of each recommendation. -15- Agreement No. 7443 TASK RESULT The project team will develop an interim report that provides a comprehensive analysis of the organizational, management, and staffing needs for City operations. A fiscal analysis will accompany each recommendation. OPTIONAL TASK C: PEER JURISDICTION BENCHMARKING The project team will conduct a comparative assessment with five similar municipal organizations in Southern California. We will compare the service delivery model, organizational structure, performance metrics, technology utilization, and other organizational characteristics to current operations in El Segundo. The comparative survey will provide insight into how the City compares to other city organizations and identify areas for further inquiry and potential modification to enhance the efficiency and effectiveness of service delivery utilization. TASK RESULT An evaluation of the City's operations to comparable jurisdictions and a summary of issues identified from this assessment. TASK 4: DRAFT AND FINAL REPORTS AND IMPLEMENTATION PLAN The draft report combines the analytical steps and interim deliverables into one document, including recommendations for all City operations. The recommendations made as part of the study must be specific, measurable, prioritized, and associated with a detailed and comprehensive timeline for implementation. It will include the following elements: An executive summary that summarizes the major findings of the study. 0 A description of the study methodology,. A detailed evaluation of each department with clear recommendations regarding process improvements, service level expectations, staffing resources (internal and external), organizational structure, and fiscal impact analysis of recommendations. -16- Agreement No. 7443 A detailed implementation plan that the City can use to guide organizational changes over the foreseeable future. The implementation plan will assign each recommendation a priority, timeline, and champion (lead entity). A fiscal analysis will accompany each recommendation. The implementation plan will provide a roadmap to the organization's transformation. The draft report will be reviewed with the project steering committee, and any key stakeholders identified throughout the study. Once this review is completed, the project team will review all comments received, edit and finalize the report, and present the final report to the City leadership team and elected officials. TASK RESULT The project team will develop a draft and final report that builds upon all interim deliverables to provide a comprehensive analysis of the organization and an action plan. The final report will be presented to City appointed and elected officials. FLEET MANAGEMENT ASSESSMENT TASK Fleet Lead Fleet Analyst Total Hours Total Fee m.. „ .., ,,,.._...._....... 1. Fleet Profile 4 _.- - - — ----- ,,,... 16 _........... 20 $3,760 2. Utilization Review 12 38 50 $9, 530 3 Replacement Plan 16 24 40 $8, 040 4. Outsourcing Analysis 12 24 36 $7, 080 5, Final Report 8 16 24 $4, 720 Total Hours 52 118 170 Hourly Rate $240 $175 Professional Fees $12,480 $20, 650 ..� $33,130 Travel Expenses $1 , 770 Total Project Cost $34, 900 -17- Agreement No. 7443 0 11 J E TASK 1: PERFORM A CURRENT STATE ANALYSIS This task involves reviewing data as it is submitted and meeting with stakeholders to build an understanding of the fleet organization and create a fleet profile. We will build a detailed current inventory listing fleet data by department, year, and model, which will be the basis for future studies. The inventory will also reflect unit and VINs, purchase date, current odometer, anticipated mileage, and capital and operating costs. In addition to the inventory, the Fleet Profile will provide an overview of the organization, job descriptions, facilities, budget, policies, and use of technology. A draft fleet profile will be submitted to allow the City to edit or add to the information collected. The report will conclude with a list of challenges and opportunities noted during early analysis. The final version of this assessment will be the baseline upon which all future deliverables are built. TASK RESULT We will create a Current State Assessment Report documenting the current inventory and staffing as well as existing Fleet Services operational policies and processes. TASK 2: CONDUCT A RIGHT -SIZING STUDY We will use the data from the fleet profile and interviews with fleet users/managers to understand how fleet assets are used and identify opportunities to right -size the fleet and right -type individual assets. We will comprehensively review the utilization and allocation of all fleet assets. We closely follow the U.S. federal government's approach to fleet rightsizing, known as the Vehicle Allocation Methodology (VAM). This involves several steps: 1. Non -emergency response assets: Review the data to identify the average utilization for each class of vehicles and determine utilization thresholds for each class. 2. Emergency response assets: Understand the number of shifts, staffing, vehicles per shift, and reserves for each functional area. M. Agreement No. 7443 3. Interview supervisors/managers who best understand the use of each asset (non -emergency and emergency response). Clarify whether the asset is the right -type for the job. 4. Identify whether the usage patterns justify an alternative fuel vehicle such as electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and "conventional" hybrid electric vehicles (HEVs) or whether other sustainable fuels may be suitable for the asset. 5. Determine a disposition for each asset and a common specification for classes of assets. Representative questions used in interviews include: Utilization Questions What is the ma in job this vehicle performs? Describe how this supports the organization's mission. Does the vehicle need special equipment to accomplish the tasks? What is the normal/maximum daily range of the vehicle? How many people will be transported per trip on a regular basis? How much and what type of cargo will the vehicle haul on a regular basis? µ Is the vehicle shared with other employees or other departments? Describe any emergency response requirements. •_ How many days per, week and hours per day is this vehicle required? ® Empirical data and interview results will be compiled and analyzed to determine the current use of the asset and its future disposition. From our analysis, we will recommend one of the following outcomes for each vehicle in the fleet: ietui Keep ulI and according to a multi- year replacement plan based on lifecycles. cic Asset is overdue for replacement and should be replaced eeee r d imm ediately. � t a different e ene current lifecycle. should be replaced is not the best for the job and s me..p laced with _ ..h t asset at the of th Itlii�� is iiluiuiIc Utilization does not justify retention of the asset. _._ Usage s 9 atipatterns indicate that the .. t _ s ' e asset is a candidate for altI��mgIll���I'�ui fuels. Ot°Il m e uii May include borrow, pool, rent, reimburse or additional analysis. We will provide a complete record of the analysis criteria, the recommendation for each asset in the fleet, and its impact on future replacement planning. -19- Agreement No. 7443 In addition to these final dispositions, we will measure the impact of the recommended changes in terms of capital and operating budget and emissions reductions. TASK RESULT We will provide a Utilization Report. [3 IIG° 1 AS 111°"YAP '() TASK 3: CREATE A FLEET REPLACEMENT PLAN In Task 3, we will use our fleet modelling tool to create a ten-year replacement plan that reflects when each asset should be replaced and accounts for the costs of that replacement. In addition to reviewing acquisition and replacement, we will determine whether the methods used to dispose of vehicles and equipment are timely and yield the best rate of return. TASK RESULT We will create a replacement plan for the City's fleet. TASK 4: EVALUATE OPPORTUNITIES FOR OUTSOURCING In this task we will consider alternatives to providing inhouse maintenance. Maintenance outsourcing can follow several different models: Limited outsourcing. Best -in -class fleets typically outsource 10-15% of maintenance. The repairs that are outsourced are typically specialty work beyond the capabilities of the shop. Third -party vendor on site. A maintenance company will operate out of a City - owned facility and provide parts, mechanics, tools and equipment as well as supervisors to manage the shop. -20- Agreement No. 7443 City -managed outsourcing to off -site vendors. The City will contract with a variety of vendors for all of their maintenance needs. The City will manage which repairs are handled by which vendors. Fleet Management Company (FMC) managed outsourcing. The City will contract with an FMC who will operate a call center to coordinate all maintenance requirements. We will do a cost -benefit analysis of each option and recommend the strategy best suited to the City based on costs, levels of service and control. TASK RESULT We will provide a chapter in the final report reflecting the outsourcing cost -benefit analysis. TASK 5: COMPILE A FINAL REPORT AND IMPLEMENTATION PLAN Upon the conclusion of the preceding tasks, we will prepare a detailed report summarizing the results of each of the previous work tasks and clearly delineating the recommended changes and associated costs. The report will be structured as follows: • Executive Summary • Introduction, Methodology, and Project Approach • Fleet Profile • Utilization Review • Replacement Plan • Outsourcing • Recommendations Summary and Prioritization (Implementation Plan) This report includes specific, actionable recommendations for improvement and an implementation plan. Once the draft report is complete, we will submit it to the City Project Lead and work with them to clarify any questions. Once the report is checked for factual accuracy and comments returned to our project team, we will make the necessary edits and produce a final version. TASK RESULT We will provide a draft and final report in the format described. -21-