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CC 2021-03-09_08d Amended Agreement with Management Partners_HR Admin SrvcsMEMORANDUM TO: CITY COUNCIL FROM: WHITNEY McDONALD, CITY MANAGER SUBJECT: CONSIDERATION OF APPROVAL OF AN AMENDED AGREEMENT FOR DATE: CONSULTANT SERVICES WITH MANAGEMENT PARTNERS FOR HUMAN RESOURCES AND FINANCIAL CONSULTANT SERVICES AND AN ASSOCIATED BUDGET ADJUSTMENT MARCH 9, 2021 SUMMARY OF ACTION: Approval of the proposed Amended Agreement for Consultant Services with Management Partners (Attachment 1) will provide ongoing and future human resources services and additional financial consulting services to the City necessitated by recent vacancies in the City’s Human Resources Manager and Administrative Services Director positions. An associated budget adjustment of $124,000 is requested to fund the not-to-exceed amount allowed under the agreement. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: It is anticipated that funding the $124,000 not-to-exceed total of the proposed agreement will require an equivalent adjustment to the Administrative Services Department’s consultant services budget. It is recommended that this funding be allocated from excess fund balance reserves. However, the City anticipates at least $70,000 in salary savings within the Administrative Services Department this fiscal year due to vacancies and leaves of absence that will offset the contract costs. RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute the Amended Agreement for Consultant Services with Management Partners and approve a budget adjustment in the amount of $124,000 in additional funding for the Administrative Services Department’s consultant services budget. BACKGROUND: The Administrative Services Department is responsible for the entire financial, accounting, and human resources operations of the City, including the receipt, disbursement and deposit in the treasury of all city moneys, assistance in the preparation of the city budget, maintenance of all accounting procedures and records, and personnel administration. In January 2021, the City’s Human Resources Manager, who provides all of the City’s human resources services, left her position with the City. On January 20, 2021, the City entered into an Agreement for Consultant Services with Management Partners to provide human resources consultant services to the City while the City Item 8.d. - Page 1 CITY COUNCIL CONSIDERATION OF APPROVAL OF AN AMENDED AGREEMENT FOR CONSULTANT SERVICES WITH MANAGEMENT PARTNERS FOR HUMAN RESOURCES AND FINANCIAL CONSULTANT SERVICES AND AN ASSOCIATED BUDGET ADJUSTMENT MARCH 9, 2021 PAGE 2 completed a recruitment for a new Human Resources Manager (Attachment 2). That recruitment process has been completed and the City is in the process of finalizing the appointment of its Human Resources Manager. However, additional time is needed to fully complete the background check process and onboard a new manager. The City’s existing Consultant Services Agreement with Management Partners provides a not-to- exceed amount of $24,000 and a term that will expire on March 31, 2021. On February 26, 2021, the City ended its employment relationship with Administrative Services Director Michael Stevens. Staff completed an immediate evaluation of the options available to ensure ongoing financial services to the City with particular attention to the existing resources of the Department. In addition to the recently vacated Human Resources Manager and Director positions, the Department is experiencing a number of vacancies or partial vacancies due to leaves of absence. In light of the fast-approaching budget process and financial services needs of the City, the City Manager requested a proposal from Management Partners to provide consultant services to the City to ensure a successful budget preparation process and to provide experienced advice and guidance on a number of important financial policies and practices. Management Partners’ proposal is provided as Attachment 3. ANALYSIS OF ISSUES: Management Partners’ proposal includes the following scope of financial services: Provide advice for upcoming biennial budget; Provide advice on the capital improvement budget, including options for prioritizing projects; Review current budget policies and providing advice on changes, as needed to reflect best practices; Review the existing reserve policies and providing advice about changes or additions that would represent financial prudent practices; Provide options regarding paying down unfunded accrued liability; Review and provide advice on a cost analysis being conducted by the Five Cities Fire Authority; and Provide other expert advice as needed. Management Partners proposes that Don Rhoads act as the City’s primary financial consultant to provide these services. As described in greater detail in Attachment 3, Mr. Rhoads is a credentialed CPA and brings more than 29 years of public sector experience, including serving as Finance Director for the City of Monterey and Chief Financial Officer for the City of Beverly Hills, to the services offered to the City. He and his team will provide expert advice regarding preparation of the City’s upcoming biennial budget and regarding several current and long-term financial planning needs. These services are of significant value to the City, ensuring a review and implementation of best practices and completion Item 8.d. - Page 2 CITY COUNCIL CONSIDERATION OF APPROVAL OF AN AMENDED AGREEMENT FOR CONSULTANT SERVICES WITH MANAGEMENT PARTNERS FOR HUMAN RESOURCES AND FINANCIAL CONSULTANT SERVICES AND AN ASSOCIATED BUDGET ADJUSTMENT MARCH 9, 2021 PAGE 3 of important work items that are necessary to accomplish a number of the Council’s Top 10 Priorities, including the cost analysis of the Five Cities Fire Authority’s services. Mr. Rhoads’s proposed discounted hourly rate is $165. The proposal from Management Partners anticipates a cost of up to $75,000 for financial consultant services to provide approximately four months of service. Recruitment for a new Administrative Services Director will begin immediately. If a new Director is hired prior to completion of the contract term, the contract may be terminated without additional cost to the City. Because the City is currently contracting with Management Partners for human resources services, a contract amendment is needed to add the proposed financial services scope of work and costs and to extend the term of the agreement beyond March 31, 2021. The proposed amended agreement (Attachment 1) includes increased funding for additional human resources services in the event that the City’s new Human Resources Manager is unable to join the City before the original contract amount is exhausted. The maximum contract amounts include: Financial Services $75,000 Human Resources Services (original contract) $24,000 Additional Human Resources Services (as needed) $25,000 Total Maximum $124,000 The proposed amended contract includes a term through July 31, 2021. It is the intent of staff to work very closely with the Management Partners consultants to ensure the delivery of expert services in the most cost-efficient manner possible. The total contract amount addresses a worst-case-scenario in order to account for the hiring process and to avoid the need for future contract amendments or budget adjustments. The City anticipates at least $70,000 in salary savings within the Administrative Services Department this fiscal year due to vacancies and leaves of absence that will offset the contract costs. Other departments are also likely to experience salary savings this fiscal year. Notably, $125,000 in salary savings are anticipated to occur within the Community Development Division resulting from the previously vacant Community Development Director position. ADVANTAGES: Approval of the proposed amended agreement will provide the City with valuable financial services while a recruitment is conducted for a new Administrative Services Director and with ongoing human resources services until a new Human Resources Manager is hired. Item 8.d. - Page 3 CITY COUNCIL CONSIDERATION OF APPROVAL OF AN AMENDED AGREEMENT FOR CONSULTANT SERVICES WITH MANAGEMENT PARTNERS FOR HUMAN RESOURCES AND FINANCIAL CONSULTANT SERVICES AND AN ASSOCIATED BUDGET ADJUSTMENT MARCH 9, 2021 PAGE 4 DISADVANTAGES: Although the total contract cost will be offset by approximately $70,000 in anticipated salary savings within the Administrative Services Department, the agreement is likely to result in approximately $30,000-$55,000 in additional unbudgeted expenditures within the Department. ALTERNATIVES: 1. Authorize the City Manager to execute the Amended Agreement for Consultant Services with Management Partners and approve a budget adjustment in the amount of $124,000 in additional funding for the Administrative Services Department’s consultant services budget; 2. Modify the scope of services and associated costs contained in the proposed Amended Agreement, authorize the City Manager to execute the Amended Agreement for Consultant Services with Management Partners as modified, and approve a corresponding budget adjustment; or 3. Do not authorize the City Manager to execute the Amended Agreement; or 4. Provide other direction to staff. ENVIRONMENTAL REVIEW: This action is not subject to the California Environmental Quality Act PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in accordance with Government Code Section 54954.2. ATTACHMENTS: 1. Proposed Amended Agreement for Consultant Services 2. Original Agreement for Consultant Services 3. Proposal from Management Partners Item 8.d. - Page 4 AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES THIS AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES (“Amendment”), is made and effective as of March , 2021, between MANAGEMENT PARTNERS (“Consultant”), and the CITY OF ARROYO GRANDE, a Municipal Corporation (“City”). WHEREAS, the parties entered into an Agreement for Consultant Services dated January 20, 2021 (the “Agreement”) whereby Consultant is providing ongoing Human Resources Consulting Services to the City; and WHEREAS, the City is now in need of Financial Consulting Services and Consultant has expertise in providing such services; and WHEREAS, the term of the Agreement is from January 20, 2021 to March 31, 2021 and the parties desire to amend the Agreement to extend the term until July 31, 2021, increase the not to exceed amount of compensation in the Agreement, and make other related changes. NOW THEREFORE, for valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Section 1 of the Agreement, TERM, is hereby amended in its entirety to read as follows: This Agreement shall commence on January 20, 2021, and shall remain and continue in effect until July 31, 2021, unless sooner terminated pursuant to the provisions of this Agreement. 2. Exhibit A of Section 2 of the Agreement, SERVICES, is hereby amended as set forth in the revised Exhibit A, attached hereto and incorporated herein by this reference, to provide for Financial Consulting Services in addition to Human Resources Services. 3. Exhibit B of Section 5 of the Agreement, PAYMENT, is hereby amended as set forth in the revised Exhibit B, attached hereto and incorporated herein by this reference, to provide for compensation to Consultant at the rates contained therein for the actual hours worked by Consultant, provided that payment under the Agreement shall not exceed the amount of $124,000. 4. Section 4 of the Agreement, AGREEMENT ADMINISTRATION, is hereby amended in its entirety to read as follows: City Manager Whitney McDonald shall represent City in all matters pertaining to the administration of this Agreement. Jan Perkins shall represent Consultant in all matters pertaining to the administration of this Agreement. ATTACHMENT 1 Item 8.d. - Page 5 5. Section 17 of the Agreement, NOTICES, is hereby amended to provide that notices to City shall be sent to the attention of Whitney McDonald, City Manager. 6. Except as modified herein, all other terms and conditions set forth in the Agreement, shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, CITY and CONSULTANT have executed this Amendment the day and year first above written. CITY OF ARROYO GRANDE: Whitney McDonald, City Manager MANAGEMENT PARTNERS: Jerry Newfarmer Its: President and CEO ATTEST: Jessica Matson, City Clerk APPROVED AS TO FORM: Timothy J. Carmel, City Attorney    Item 8.d. - Page 6 EXHIBIT A SERVICES Financial Consulting  Providing advice for upcoming biennial budget;  Providing advice on the capital improvement budget, including options for prioritizing projects;  Reviewing current budget policies and providing advice on changes, as needed to reflect best practices;  Reviewing the existing reserve policies and providing advice about changes or additions that would represent financial prudent practices;  Providing options regarding paying down unfunded accrued liability;  Reviewing and providing advice on a cost analysis being conducted by the Five Cities Fire Authority; and  Providing other expert advice as needed. Human Resources Consulting  Conducting recruitments for several positions,  Addressing COVID-19 related issues and concerns,  Responding to questions from agencies such as Employment Development Department and CalPERS,  Coordinating workers’ compensation questions and claims,  Reviewing and/or preparing policies and procedures,  Providing advice to managers and executives,  Identify process and efficiency improvements, and  Other expert human resources advice as needed. These projects will be prioritized in collaboration with City within the scope of the contract. Consultant will provide periodic reports to the City summarizing the consulting assistance Consultant has provided. Item 8.d. - Page 7 EXHIBIT B PAYMENT The existing contract with the City shall be supplemented with an additional $100,000, of which approximately $75,000 would be allocated for financial consulting and $25,000 for human resources consulting. Since the existing contract for human resources consulting is in the amount of $24,000, the new total shall be $124,000. During this engagement, the actual consultant hours will be paid by the City of Arroyo Grande at the rates shown below. Consultant will charge $165 per hour for Don Rhoads’ time and $125 per hour for Ashley Garcia’s time. Both rates are reduced in consideration of the length of the engagement. Other consultants will be charged at their regular hourly rates, ranging from $90 to $240 per hour depending on the individual assigned to the project. If onsite meetings are required, Consultant will charge travel expenses. The hourly rates for other consultants are shown below. Consultant Hourly Rate Steve Toler, Partner $220 Timm Borden, P.E., Special Advisor (Capital Projects) $210 Donna Peter, HR Special Advisor $210 Lisa Achen, HR Senior Management Advisor $170 Don Rhoads, Special Advisor $165* Claire Coleman, Senior Management Analyst (Finance) $130 Michelle New, Senior Management Analyst (HR) $130 Ashley Garcia, Senior Management Advisor $125* Peer review of deliverables $140 *Discounted rate Item 8.d. - Page 8 AGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT, is made and effective as of January 20, 2021, between Management Partners ("Consultant"), and the CITY OF ARROYO GRANDE, a Municipal Corporation ("City"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on January 20, 2021, and shall remain and continue in effect until March 31, 2021, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES Consultant shall perform the tasks described and comply with all terms and provisions set forth in Exhibit "A", attached hereto and incorporated herein by this reference. 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of his/her ability, experience and talent, perform all tasks described herein. Consultant shall employ, at a minimum generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. AGREEMENT ADMINISTRATION City's Director of Administrative Services shall represent City in all matters pertaining to the administration of this Agreement. Ashley Garcia shall represent Consultant in all matters pertaining to the administration of this Agreement. 5. PAYMENT The City agrees to pay the Consultant in accordance with the payment rates and terms set forth in Exhibit "B", attached hereto and incorporated herein by this reference. 6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such,suspension or termination shall not make void or invalidate the remainder of this Agreement. b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 5. 7. TERMINATION ON OCCURRENCE OF STATED EVENTS This Agreement shall terminate automatically on the occurrence of any of the following events: ATTACHMENT 2 Item 8.d. - Page 9 a) Bankruptcy or insolvency of any party; b) Sale of Consultant's business; or c) Assignment of this Agreement by Consultant without the consent of City. d) End of the Agreement term specified in Section 1. 8. DEFAULT OF CONSULTANT a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 9. LAWS TO BE OBSERVED. Consultant shall: a) Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incidental to the due and lawful prosecution of the services to be performed by Consultant under this Agreement; b) Keep itself fully informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this Agreement, any materials used in Consultant's performance under this Agreement, or the conduct of the services under this Agreement; c) At all times observe and comply with, and cause all of its employees to observe and comply with all of said laws, ordinances, regulations, orders, and decrees mentioned above; d) Immediately report to the City's Contract Manager in writing any discrepancy or inconsistency it discovers in said laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications, or provisions of this Agreement. e) The City, and its officers, agents and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. 10. OWNERSHIP OF DOCUMENTS a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine Item 8.d. - Page 10 and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. 11. INDEMNIFICATION a) Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subContractors or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. b) Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subContractors of Consultant. c) General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subContractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. 12. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit"C" attached hereto and incorporated herein as though set forth in full. Item 8.d. - Page 11 13. INDEPENDENT CONSULTANT a) Consultant is and shall at all times remain as to the City a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. b) No employee benefits shall be available to Consultant in connection with performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 14. UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure was or is used against or in concert with any officer or employee of the City of Arroyo Grande in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Arroyo Grande will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 15. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub- agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement. 16. RELEASE OF INFORMATION/CONFLICTS OF INTEREST a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subContractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered voluntary" provided Consultant gives City notice of such court order or subpoena. b) Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subContractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City Item 8.d. - Page 12 retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 17. NOTICES Any notice which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or(iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: To City: City of Arroyo Grande Michael Stevens, Admin Services Director 300 E. Branch Street Arroyo Grande, CA 93420 To Consultant: Management Partners 3152 Red Hill Ave, Suite 210 Costa Mesa, California 92626 18. ASSIGNMENT The Consultant shall not assign the performance of this Agreement, nor any part thereof, without the prior written consent of the City. 19. GOVERNING LAW The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the superior or federal district court with jurisdiction over the City of Arroyo Grande. 20. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 21. TIME City and Consultant agree that time is of the essence in this Agreement. 22. CONTENTS OF PROPOSAL Consultant is bound by the proposal submitted by Consultant attached hereto as Exhibit D", and incorporated herein by this reference. Item 8.d. - Page 13 23. CONSTRUCTION The parties agree that each has had an opportunity to have their counsel review this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. The captions of the sections are for convenience and reference only, and are not intended to be construed to define or limit the provisions to which they relate. 24. AMENDMENTS Amendments to this Agreement shall be in writing and shall be made only with the mutual written consent of all of the parties to this Agreement. 25. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. Item 8.d. - Page 14 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF ARROYO GRANDE MANAGEMENT PARTNERS lid By: ham 1 1 i By: Whitney Mci•paid, City anager Jerry Newfarmer Its: President and CEO Attes l Aihn'marie '• -er,,Interim'City Clerk Approve As To For ,: Tim Ca mel, City Attorney Item 8.d. - Page 15 EXHIBIT A SCOPE OF WORK Provide approximately 20 hours a week for up to eight weeks and a few hours of other consultant time as needed on the engagement, depending on the individual assigned. A variety of critical human resources tasks must be carried out for which our assistance is desired. These tasks include: Conducting recruitments for several positions; Addressing COVID-19 related issues and concerns; Responding to questions from agencies such as Employment Development Department and CaIPERS; Coordinating workers' compensation questions and claims; Reviewing and/or preparing policies and procedures; Providing advice to managers and executives; and Other expert human resources advice as needed. Item 8.d. - Page 16 EXHIBIT B PAYMENT SCHEDULE During this engagement, the actual consultant hours will be paid by the City of Arroyo Grande at the rates shown below. Payment not-to-exceed contract in the amount of$24,000. Consultant Ashley Garcia, Senior Management 125 (reduced rate) Advisor Donna Peter, HR Special Advisor 210 Lisa Achen, HR Senior Management 170 Advisor Michelle New, Senior Management 130 Analyst Peer review of deliverables 140 Item 8.d. - Page 17 EXHIBIT C INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of the Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Consultant agrees to amend, supplement or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy from CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits.There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence. Business Auto Coverage on ISO Business Auto Coverage from CA 00 01 including symbol 1 Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than 1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident or disease. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Any such coverage provided under an umbrella liability policy shall include a drop down provision providing primary coverage above a maximum $25,000 self-insured retention for liability not covered by primary but covered by the umbrella. Coverage shall be provided on a "pay on behalf' basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured's liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to City for injury to employees of Consultant, subContractors or others involved in the Work. The scope of coverage provided is subject to approval of City following receipt of proof of insurance as required herein. Limits are subject to review but in no event less than $ 1,000,000 per occurrence. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designated to protect against acts, errors or omissions of the Consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000, 000 per claim and in the aggregate. The policy must "pay on behalf of' the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Item 8.d. - Page 18 Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state California and with an A.M. Bests rating of A- or better and a minimum financial size VII. General conditions pertaining to provision of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all Consultants, and subContractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all Consultants and subContractors to do likewise. 3. All insurance coverage and limits provided by Consultant and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any Consultant or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subContractor, is intended to apply first and on a Item 8.d. - Page 19 primary, noncontributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subContractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subContractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Consultant, subContractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Consultant's existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At the time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increase benefit to City. 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirements in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. Item 8.d. - Page 20 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Item 8.d. - Page 21 EXHIBIT D CONSULTANT'S PROPOSAL Management Partners January 15, 2021 Mr.Mike Stevens Administrative Services Director City of Arroyo Grande 300 E. Branch Street Arroyo Grande, CA 93420 Dear Mr. Stevens: Thank you for the opportunity to submit a proposal to provide expert human resources consulting services to the City of Arroyo Grande. Management Partners has the expertise and skills necessary to provide this assistance and we would be pleased to do so. About Management Partners As you may know, Management Partners was founded in 1994 with a specific mission to help local government leaders improve their service to the public. Since then we have worked with cities, counties, towns, and special districts of all sizes across the United States to help them work more effectively and run more efficiently. We offer a balance of perspectives with a practitioner's bias and a proven track record of successful consulting engagements. This experience gives us a sensitivity that produces positive outcomes. We are proud to say that as a result of our quality work, many of our clients ask us to complete subsequent assignments. We Know Local Government. Our associates have served in local governments,so we have a deep understanding of the operating and political environments in which you work. We Take a Collaborative Approach.We consider ourselves part of your team and strive to ensure our work supports your overall corporate strategy and goals. We Have Extensive Experience. Each of our more than 100 associates is an expert in one or more service areas,and our firm has assisted hundreds of jurisdictions in 42 states. We Have Developed Proven Methodologies.We understand the importance of a holistic approach to improving organizations, using field-tested techniques for each aspect of the work. Our Work Plan is Tailored to Your Needs. Each of our projects is individually tailored to our client's unique needs, starting with a careful learning process. We Take Pride in the Quality of Our Work. Our internal processes ensure first-rate,complete staff work and adherence to the highest of ethical standards in public service. la We Are Focused on Implementation.As practitioners,our recommendations make practical sense and are able to be implemented. Item 8.d. - Page 22 We Provide a Full Suite of Services. Management Partners'services include everything required to support local government leaders, including organization assessments, performance management, process improvement,strategic planning,and financial planning, budgeting and analysis. 1730 MADISON ROAD•CINCINNATI, OH 45206. 513 861 5400 • FAX 513 861 3480 MANAGEMENTPARTNERS.COM 2107 NORTH FIRST STREET, SUITE 470 • SAN JOSE, CALIFORNIA 95131 •408 437 5400 • FAx 408 453 6191 3152 RED HILL AVENUE,SUITE 210•COSTA MESA, CALIFORNIA 92626.949 222 1082•FAX 408 453 Mr. Mike Stevens Page 2 Understanding of the Engagement The City of Arroyo Grande has need for assistance on a variety of human resources services. The City has approximately 132 employees of which 91 are full time. One person staffs the City's human resources function and will be leaving the City shortly. A variety of critical ,human resources tasks must be carried out for which our assistance is desired for approximately six to eight weeks. These tasks include: Conducting recruitments for several positions; Addressing COVID-19 related issues and concerns; Responding to questions from agencies such as Employment Development Department and CaIPERS; Coordinating workers' compensation questions and claims; Reviewing and/or preparing policies and procedures; Providing advice to managers and executives; and Other expert human resources advice as needed. These items will be prioritized in collaboration with you within the scope of the contract. Management Partners will provide periodic reports to the City of Arroyo Grande summarizing the consulting assistance our firm has provided. Consultants We have a team of experts available for this engagement. We will assign Ashley Garcia as our lead human resources consultant. We will be able to provide up to 20 hours a week of Ashley's time, of which about 15 hours can be on-site. For work pertaining to policies and procedures that may be needed, we have other human resources experts that we can assign so as to focus Ashley's time on the tasks that require on-site or immediate attention. Management Partners will determine when other experts from the firm are needed to assist in order to meet project requirements. We also use an internal peer review process and others in the firm will review deliverables prepared by our lead consultant. Our commitment is to provide high quality consulting expertise to the City of Arroyo Grande. Our consultants are employed by Management Partners and work for and at the direction of Management Partners. Ashley Garcia and all consultants report to Andrew Belknap, Senior Vice President of Management Partners. Additionally, our consultants are part of our overall team and are available for assignments on other engagements, consistent with our responsibility to the City of Arroyo Grande, at the discretion of Management Partners. Item 8.d. - Page 23 Management Partners and our consultants will determine the method and manner of carrying out the work and achieving the desired result. We will also determine the schedule of our consultants, including onsite or offsite hours. Matters pertaining to personnel, such as discipline, hiring, or evaluations, are not part of the scope of work, nor are execution of contracts or other written documents obligating the City of San Bruno. All such matters will be the responsibility of the City of Arroyo Grande. Management Partners provides all insurance (including workers' compensation, liability and professional errors and omissions), training and administrative support (including equipment such as phones and computers) as necessary during the assignment. Mr Mike Stevens Page 3 Our consultants use their Management Partners business cards and email address and will identify themselves as consultants with our firm. Our consultants will only use City of Arroyo Grande systems and equipment if required to access data and information essential for our consulting engagement. Such instances will be authorized by Andrew Belknap or his designee from Management Partners. The City of Arroyo Grande may provide conference room or office space if needed when our consultants are working onsite. It is important to the City of Arroyo Grande, our consultants, and our firm to be clear that we are doing this work for the City of Arroyo Grande as a firm and that our consultants work for Management Partners. Ashley Garda, Senior Management Advisor ti 1\ o ti ee Nearly a decade of analytical,human resources,budget,and project management experience in local governments. Local government experience includes progressively responsible roles for the California cities of Huntington Beach, Laguna Niguel,Costa Mesa and Santa Maria. Passionate about public service and organizational development, specializing in interdepartmental collaboration. Served as President of the Municipal Management Association of Southern California in 2018, leading the organization as it achieved record membership levels and established a strategic plan for the association. Other experts available to assist the City of Arroyo Grande Among our many other consultants who will be available to provide assistance, and will be assigned by Management Partners as needed, are the individuals listed below. Additionally, members of our firm will conduct a peer review process of deliverables. Item 8.d. - Page 24 Michelle New,Senior Management Analyst(HR assistance) Lisa Achen,Senior Management Advisor(HR policies and advice) Donna Peter, Human Resources Special Advisor(HR policies and advice;COVID-19 related issues) Fee Proposal and Term of Engagement We propose an initial not-to-exceed contract in the amount of$23,000. This will provide approximately 20 hours a week for up to eight weeks of Ashley Garcia's time, and a few hours of other consultant time as needed on the engagement, depending on the individual assigned. During this engagement, the actual consultant hours will be paid by the City of Arroyo Grande at the rates shown below. Consultant-^-•--_-__IL— N+nurly Rate 1 Ashley Garcia,Senior Management Advisor $125(reduced rate). Donna Peter, HR Special Advisor 210 Lisa Achen, HR Senior Management Advisor $170 Michelle New,Senior Management Analyst $130 Peer review of deliverables 140 Item 8.d. - Page 25 Mr. Mike Stevens Page 4 The hourly rate for Ashley Garcia is reduced as our lead consultant and in consideration for the anticipated length of the engagement. Other consultants will be provided at their regular hourly rates plus travel expenses, ranging from 90 to $240 per hour depending on the individual assigned to the project. Conclusion We appreciate the opportunity to be of assistance to the City of Arroyo Grande. Please feel free to contact Jan Perkins (949-202-8870) if you have any questions about this proposal. Sincerely, Julie Mares Chief Operating Officer Accepted for the City of Arroyo Grande by: Name: Title: Date: Page 18 Item 8.d. - Page 26 1730 MADISON ROAD • CINCINNATI, OH 45206 • 513 861 5400 • FAX 513 861 3480 MANAGEMENTPARTNERS.COM 2107 NORTH FIRST STREET, SUITE 470 • SAN JOSE, CALIFORNIA 95131 • 408 437 5400 • FAX 408 453 6191 3152 RED HILL AVENUE, SUITE 210 • COSTA MESA, CALIFORNIA 92626 • 949 222 1082 • FAX 408 453 6191 March 4, 2021 Ms. Whitney McDonald City Manager City of Arroyo Grande 300 E. Branch Street Arroyo Grande, CA 93420 Dear Ms. McDonald: Thank you for the opportunity to submit a proposal to provide expert financial management and human resources consulting services to the City of Arroyo Grande. Management Partners is currently providing human resources consulting services and this proposal will supplement those services and amend the existing contract due to continuing needs of the City. It also adds the new services of financial management consulting. Our firm has the expertise and skills necessary to provide this assistance and we would be pleased to do so. About Management Partners As you may know, Management Partners was founded in 1994 with a specific mission to help local government leaders improve their service to the public. Since then we have worked with cities, counties, towns, and special districts of all sizes across the United States to help them work more effectively and run more efficiently. We offer a balance of perspectives with a practitioner’s bias and a proven track record of successful consulting engagements. This experience gives us a sensitivity that produces positive outcomes. We are proud to say that as a result of our quality work, many of our clients ask us to complete subsequent assignments. ▪We Know Local Government. Our associates have served in local governments, so we have a deep understanding of the operating and political environments in which you work. ▪We Take a Collaborative Approach. We consider ourselves part of your team and strive to ensure our work supports your overall corporate strategy and goals. ▪We Have Extensive Experience. Each of our more than 100 associates is an expert in one or more service areas, and our firm has assisted hundreds of jurisdictions in 42 states. ▪We Have Developed Proven Methodologies. We understand the importance of a holistic approach to improving organizations, using field-tested techniques for each aspect of the work. ▪Our Work Plan is Tailored to Your Needs. Each of our projects is individually tailored to our client’s unique needs, starting with a careful learning process. ▪We Take Pride in the Quality of Our Work. Our internal processes ensure first-rate, complete staff work and adherence to the highest of ethical standards in public service. ▪We Are Focused on Implementation. As practitioners, our recommendations make practical sense and are able to be implemented. ATTACHMENT 3 Item 8.d. - Page 27 Ms. Whitney McDonald Page 2 ▪ We Provide a Full Suite of Services. Management Partners’ services include everything required to support local government leaders, including organization assessments, performance management, process improvement, strategic planning, and financial planning, budgeting and analysis. Understanding of the Engagement The City of Arroyo Grande has need for financial management consulting and human resources assistance as described below. Financial Consulting ▪ Providing advice for upcoming biennial budget; ▪ Providing advice on the capital improvement budget, including options for prioritizing projects; ▪ Reviewing current budget policies and providing advice on changes, as needed to reflect best practices; ▪ Reviewing the existing reserve policies and providing advice about changes or additions that would represent financial prudent practices; ▪ Providing options regarding paying down unfunded accrued liability; ▪ Reviewing and providing advice on a cost analysis being conducted by the Five Cities Fire Authority; and ▪ Providing other expert advice as needed. Human Resources Consulting ▪ Conducting recruitments for several positions, ▪ Addressing COVID-19 related issues and concerns, ▪ Responding to questions from agencies such as Employment Development Department and CalPERS, ▪ Coordinating workers’ compensation questions and claims, ▪ Reviewing and/or preparing policies and procedures, ▪ Providing advice to managers and executives, ▪ Identify process and efficiency improvements, and ▪ Other expert human resources advice as needed. These projects will be prioritized in collaboration with you within the scope of the contract. Management Partners will provide periodic reports to the City of Arroyo Grande summarizing the consulting assistance our firm has provided. Consultants We have a team of experts available for this engagement. We anticipate this work will be conducted remotely. We will assign Don Rhoads as our lead financial management consultant and continue to assign Ashley Garcia as our lead human resources consultant. We have capital improvement plan experts who will assist with developing options for prioritizing capital projects, management analysts who can assist with the budget process and other projects, other financial and human resources experts who will assist as needed. Management Partners will determine when other experts from the firm are needed to assist to meet project requirements. We also use an internal peer review process and others in the firm will review Item 8.d. - Page 28 Ms. Whitney McDonald Page 3 deliverables prepared by our lead consultant. Our commitment is to provide high quality consulting expertise to the City of Arroyo Grande. Our consultants are employed by Management Partners and work for and at the direction of Management Partners. Don Rhoads and all consultants report to Andrew Belknap, Senior Vice President of Management Partners. Additionally, our consultants are part of our overall team and are available for assignments on other engagements, consistent with our responsibility to the City of Arroyo Grande, at the discretion of Management Partners. Management Partners and our consultants will determine the method and manner of carrying out the work and achieving the desired result. We will also determine the schedule of our consultants, including onsite or offsite hours. Matters pertaining to personnel, such as discipline, hiring, or evaluations, are not part of the scope of work, nor are execution of contracts or other written documents obligating the City of Arroyo Grande. All such matters will be the responsibility of the City of Arroyo Grande. Management Partners provides all insurance (including workers’ compensation, liability and professional errors and omissions), training and administrative support (including equipment such as phones and computers) as necessary during the assignment. Our consultants use their Management Partners business cards and email address and will identify themselves as consultants with our firm. Our consultants will only use City of Arroyo Grande systems and equipment if required to access data and information essential for our consulting engagement. Such instances will be authorized by Andrew Belknap or his designee from Management Partners. The City of Arroyo Grande may provide conference room or office space if needed when our consultants are working onsite. It is important to the City of Arroyo Grande, our consultants, and our firm to be clear that we are doing this work for the City of Arroyo Grande as a firm and that our consultants work for Management Partners. Don Rhoads, Special Advisor ▪ Consulted on financial projects with Management Partners in Garden Grove, Palo Alto and Perris, California; Mercer Island and Newcastle, Washington; Brighton, Colorado; and Dallas, Texas. ▪ A credentialed CPA, Don has more than 29 years of public sector experience including serving as Finance Director for the City of Monterey and Chief Financial Officer for the City of Beverly Hills. ▪ Experienced in operational and capital budgeting, strategic financial planning, accounting and financial reporting, capital improvement planning, analysis an d strategies related to unfunded liabilities, as well as staff development and teambuilding. ▪ Well regarded by city councils, managers, and community members as a person who takes complex financial information and presents it in a way that is understandabl e and relevant. ▪ Led the Mayor’s Financing Task Force in Beverly Hills to successfully develop a financing plan for major upcoming capital projects, and established an innovative Conference Center Financing District in Monterey to provide funding for the renovation and expansion of the Monterey Conference Center. Item 8.d. - Page 29 Ms. Whitney McDonald Page 4 Ashley Garcia, Senior Management Advisor ▪ Nearly a decade of analytical, human resources, budget, and project management experience in local governments. ▪ Local government experience includes progressively responsible roles for the California cities of Huntington Beach, Laguna Niguel, Costa Mesa and Santa Maria. ▪ Passionate about public service and organizational development, specializing in interdepartmenta l collaboration. ▪ Served as President of the Municipal Management Association of Southern California in 2018, leading the organization as it achieved record membership levels and established a strategic plan for the association. Other experts available to assist the City of Arroyo Grande The individuals listed below are among our many consultants who will be available to provide assistance and will be assigned by Management Partners as needed. Additionally, members of our firm will conduct a peer review process of deliverables. Consultant Expertise Claire Coleman, Senior Management Analyst Financial data analytics, presentation materials Timm Borden, P.E., Special Advisor Capital projects Steve Toler, Partner Financial policies, forecasting Lisa Achen, HR Senior Management Advisor Employee relations, discipline, human resources policies Donna Peter, Human Resources Special Advisor Human resources policies and advice, performance management, complex issues, COVID-19 policies Michelle New, Senior Management Analyst Recruitment, human resources operations Fee Proposal We propose to supplement the existing contract with the City with an additional $100,000, of which approximately $75,000 would be allocated for financial consulting and $25,000 for human resources consulting. Since the existing contract for human resources consulting is in the amount of $24,000, the new total would be $124,000. During this engagement, the actual consultant hours will be paid by the City of Arroyo Grande at the rates shown below. We will charge $165 per hour for Don Rhoads’ time and $125 per hour for Ashley Garcia’s time. Both rates are reduced in consideration of the length of the engagement. Other consultants will be charged at their regular hourly rates, ranging from $90 to $240 per hour depending on the individual assigned to the project. If onsite meetings are required, we will charge travel expenses. Item 8.d. - Page 30 Ms. Whitney McDonald Page 5 The hourly rates for the other consultants we have listed in this proposal are shown below. Consultant Hourly Rate Steve Toler, Partner $220 Timm Borden, P.E., Special Advisor (Capital Projects) $210 Donna Peter, HR Special Advisor $210 Lisa Achen, HR Senior Management Advisor $170 Don Rhoads, Special Advisor $165* Claire Coleman, Senior Management Analyst (Finance) $130 Michelle New, Senior Management Analyst (HR) $130 Ashley Garcia, Senior Management Advisor $125* Peer review of deliverables $140 *Discounted rate Conclusion We appreciate the opportunity to be of assistance to the City of Arroyo Grande. Please feel free to contact Jan Perkins (949-202-8870) if you have any questions about this proposal. Sincerely, Julie Mares Chief Operating Officer Accepted for the City of Arroyo Grande by: Name: _________________________________________ Title: _________________________________________ Date: _________________________________________ Item 8.d. - Page 31 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.d. - Page 32