AGREEMENT TO PROVIDE UTILITY CUSTOMER SERVICE EFFICIENCY REVIEWAGREEMENT TO PROVIDE UTILITY CUSTOMER SERVICE
EFFICIENCY REVIEW TO CLEARWATER, FLORIDA
RAFTELIS FINANCIAL CONSULTANTS, INC
THIS AGREEMENT, is entered into this viiq Day of July, 2013 and effective as of
July 19, 2013, by and between Raftelis Financial Consultants, Inc.
"CONSULTANT" and the City of Clearwater, Florida, "CITY,"
NOW, THEREFORE, the parties hereto mutually agree as follows:
(1) Employment of Consultant. CITY agrees to engage the CONSULTANT
and the CONSULTANT hereby agrees to perform the services described
in the CITY's Scope of Work incorporated into this Agreement as
Attachment A and CONSULTANT'S revised proposal dated May 29th,
2013, (CONSULTANTS PRICE PROPOSAL), incorporated into this
Agreement as Attachment B.
Term. The services to be performed hereunder by the CONSULTANT
shall commence on July 19, 2013 and shall terminate on December 20,
2013, unless this Agreement is earlier terminated as provided for herein.
Compensation. The CITY agrees to pay the CONSULTANT a sum not to
exceed eighty -six thousand one hundred sixty -one dollars ($86,161) as
provided in CONSULTANT'S Price Proposal. CONSULTANT agrees to
complete the project and all services provided herein for said sum.
(4) Method of Payment. The CONSULTANT shall bill monthly for hours
completed to date as described in CONSULTANT'S Price Proposal. Total
payments shall not exceed the amount shown in (3), above. CITY shall
pay invoices within thirty (30) days of receipt. The City agrees to pay after
approval under the terms of the Florida Prompt Payment Act F.S. 218.70.
(5)
Changes. CITY may, from time to time require changes in the scope of
services of the CONSULTANT to be performed hereunder. Such
changes, which are mutually agreed upon by and between CITY and the
CONSULTANT, shall be incorporated in written amendment to this
Agreement.
(6) Services and Materials to be Furnished by CITY. CITY shall furnish
the CONSULTANT with all available necessary information, data, and
material pertinent to the execution of this Agreement. CITY shall
cooperate with the CONSULTANT in carrying out the work herein and
shall provide adequate staff for liaison with the CONSULTANT.
Professional Services Agreement Page 1
(7)
Termination of Agreement. The CITY at its sole discretion may
terminate this Contract by giving CONSULTANT a ten (10) day written
notice of its election to do so and by specifying the effective date of such
termination. CONSULTANT shall be paid for its services through the
effective date of such termination. Further, if CONSULTANT shall fail to
fulfill any of its obligations hereunder, this Contract shall be in default, the
CITY may terminate the Contract, and CONSULTANT shall be paid only
for work completed.
(8) Information and Reports. The CONSULTANT shall, at such time and in
form as CITY may require, furnish such periodic reports concerning the
status of the project, such statements, and copies of proposed and
executed plans and other information relative to project as may be
requested by CITY. The CONSULTANT shall furnish CITY, upon request,
with copies of all documents and other material prepared or developed in
relation with or as part of project as set forth in the City's RFP 17 -13.
(9)
Records and Inspections. CONSULTANT shall maintain full and
accurate records with respect to all matters covered under this Agreement
for a period of four years after the completion of the project.
In addition to all other contract requirements as provided by law, the
contractor executing this agreement agrees to comply with public records
law specifically to:
a) Keep and maintain public records that ordinarily and necessarily would be
required by the public agency in order to perform the service being
provided by the contractor hereunder.
b) Provide the public with access to public records on the same terms and
conditions that the public agency would provide the records and at a cost
that does not exceed the cost provided for in Chapter 119, Florida
Statutes, as may be amended from time to time, or as otherwise provided
by law.
c) Ensure that the public records that are exempt or confidential and exempt
from public records disclosure requirements are not disclosed except as
authorized by law.
d) Meet all requirements for retaining public records and transfer, at no cost,
to the public agency all public records in possession of the contractor
upon termination of the contract and destroy any duplicate public records
that are exempt or confidential and exempt from public records disclosure
requirements. All records stored electronically must be provided to the
public agency in a format that is compatible with the information
technology systems of the public agency.
Professional Services Agreement Page 2
e) The contractor hereby acknowledges and agrees that if the contractor
does not comply with a public records request, the public agency shall
enforce the contract provisions in accordance with the contract.
(10) Completeness of Contract. This contract and any additional or
supplementary document or documents incorporated herein by specific
reference contain all the terms and conditions agreed upon by the parties
hereto, and no other agreements, oral or otherwise, regarding the subject
matter of this contract or any part thereof shall have any validity or bind
any of the parties hereto.
(11) CITY Not Obligated to Third Parties. CITY shall not be obligated or
liable hereunder to any party other than the CONSULTANT.
(12) Rights and Remedies Not Waived. In no event shall the making by
CITY of any payment to the CONSULTANT constitute or be construed as
a waiver by CITY of any breach of covenant, or any default which may
exist on the part of the CONSULTANT and the making of any such
payment by CITY while any such breach or default shall exist in no way
impairs or prejudices any right or remedy available to CITY in respect to
such breach or default.
(13) Hold Harmless. Each party shall be responsible for its own acts and will
be responsible for all damages, costs, fees and expenses which arise out
of the performance of this Agreement and which are due to that party's
own negligence, tortuous acts and other unlawful conduct and the
negligence, tortuous action and other unlawful conduct of its respective
agents, officers, and employees.
(14) Insurance. Consultant agrees to maintain insurance during the term of
this Agreement: for comprehensive general liability in the amount of
$1,000,000 per occurrence and $2,000,000 in aggregate; automobile
liability insurance in the amount of $1,000,000; workers' compensation
insurance in the amount of $1,000,000 and professional liability in the
amount of $1,000,000. CONSULTANT shall provide CITY with an
insurance certificate which names the CITY as an additionally insured.
(15) Personnel. The CONSULTANT has all personnel required in performing
the services under this Agreement. All of the services required hereunder
will be performed by the CONSULTANT or under CONSULTANT'S
supervision, and all personnel engaged in the work shall be qualified to
perform such services.
(16) Assignability. The parties hereby agree that Consultant may not assign,
convey or transfer its interest, rights and duties in this Agreement without
the prior written consent of CITY.
Professional Services Agreement Page 3
(17) Governing Law and Venue. The laws of the State of Florida shall govern
this Contract, and any action brought by either party shall lie in Pinellas
County, Florida.
(18) Notices. Any notices, bills, invoices, or reports required by this
Agreement shall be sufficient if sent by the parties in the United States
mail, postage paid, to the addresses noted below:
TO CONSULTANT:
Name.
Title
Agency
Address
City, State Zip
TO CITY
Name.
Title
Agency
Address
City, State Zip
Elaine V. Conti
Manager
Raftelis Financial Consultants Inc
1031 S Caldwell St, Ste 100
Charlotte, NC 28203
Robin I. Gomez
City Auditor
City of Clearwater
100 S Myrtle Ave, Rm 345
Clearwater FL 33756
IN WITNESS WHEREOF, CITY and the CONSULTANT have executed this
agreement as of the date first written above.
CITY OF CLEARWATER, FLORIDA
Date:
Countersigned:
_ cttao it'We ckt O3S
George N. Cretekos
Mayor
Approved as to form:
lc--
Pamela Akin
City Attorney
By: U) ktat .t,,ti,J •
William B. Horne II
City Manager
Attest:
Rosemarie Call
City Clerk
Professional Services Agreement
Page 4
A st:
Print Name: ttOJA -t, Actary
Secretary
Raftelis Financial Consultants Inc
By:
Print Name: ? • Fr( - A. (Stand-4
Title: C':4 0c4,ft-f -) Or • c-c�
Professional Services Agreement
Page 5
ATTACHMENT A
City's Scope of Work
City of Clearwater, Florida Purpose and Scope of
Work
CLEARWATER UTILITY CUSTOMER SERVICE (CUCS) Efficiency Review
I. Purpose:
Fiscal conditions have led the City of Clearwater to consider efficiency reviews to
re- examine spending and operations. The reviews are intended to help the City of
Clearwater determine priority customer service areas and ways to improve efficiency and
reduce costs. In completing an efficiency review, the City of Clearwater has two primary
goals: (1) lowering spending and saving money in the short term, and (2) improving
performance and yielding additional savings in the long term.
When reviewing Clearwater Customer Service, the key focus shall be to
determine and review core services; then identify budget limits and performance targets
for each core service. This short -term review can clarify greater changes that can be
made within the department or one of its processes to improve efficiency in the long-
term. Options include maintaining a program, consolidating, restructuring, or reducing a
program, outsourcing a program, or eliminating the program altogether. When focusing
on ways to improve departmental efficiency, the key focus should be to first determine
the most effective organizational structure to deliver core services. Second, develop
effective performance measures subject to existing national, regional, and /or local
standards for customer service operations.
Clearwater Customer Service provides customer service functions to customers of
the City's seven (7) utilities: Gas, Reclaimed Water, Recycling, Sewer, Solid Waste,
Stormwater, and Water. CCS is organizationally structured into:
Management /Administration, Credit & Collection, Customer Care, Accounting, and
Meter Reading.
II. Scope of Work:
1. Departmental /Organizational Structure: Examine and review the
following aspects:
a. Organizational structure, progress, and changes (policies /procedures).
b. The number and type of supervisory, field, and office personnel and the
relationship between them, to include the extent to which authority and
responsibility is properly allocated between them and the manner in which
their efforts are planned, directed, coordinated and supervised by
Department management.
c. Comparative analysis of the management and personnel structure.
d. Benchmark the critical areas of the department's staffing with those of
similar departments, both inside and outside of Pinellas County, as well as
compare to "best practices ".
Professional Services Agreement Page 6
e. Review and evaluate possibility of consolidating customer service /account
representative, service dispatchers, and related positions across the 7
utilities.
2. Management /Administration
a. Evaluate responsibilities, special assignments, and workload of
supervisory, field, and office personnel.
b. Assess management's problem identification, long -term planning, and
development strategies.
c. Provide observations and recommendations regarding
management /supervisor structure.
d. Review of succession planning to supervisory /management positions.
e. Evaluate communication and interaction among supervisors and field,
office staff.
3. Credit & Collection
a. Assess policies and procedures (internal controls) on accounts receivable,
collections, delinquencies, and account turn- on/off .
b. Evaluate internal communications and interactions among City utilities
(water, gas, solid waste, etc).
4. Customer Care
a. Assess policies and procedures (internal controls) on call center activities:
on -line, telephone, walk -in.
b. Evaluate information dissemination (relay of actual work order requests)
and customer communications systems and processes (billing questions,
issues, etc).
c. Evaluate efficiency /effectiveness of existing technologies.
5. Accounting.
a. Evaluate technology systems, equipment, and staff use /capability and make
recommendations to enhance productivity and effectiveness.
b. Assess billing generation, review, mailing and reporting functions and
processes.
c. Evaluate internal communications among existing utilities (water, gas,
solid waste).
6. Meter Reading
a. Evaluate technology systems, equipment, and staff use /capability and make
recommendations to enhance productivity and effectiveness including the
possibility of implementing/utilizing an automated meter reading process.
b. Evaluate internal controls on meter reading routes, structure, and processes.
7. Review of other areas /issues deemed necessary by the consultant to meet the
goals of this review.
Professional Services Agreement Page 7
ATTACHMENT B
CONSULTANT'S REVISED PROPOSAL - MAY 29, 2013
Original Work plan
City of Clearwater Utility Customer Service Efficiency Study
Task 0: Project Management
Task l: Kickoff Meeting and Data Gathering
Kick -Off Meeting (Initial trip - 4 person)
Preparation and presentation to stafflmgmt.
1 hour meeting with 'Lean" Champions
Task 2. Initial Assessment of Departmental Organizational Structure
& Initial Assessment of Management /Administration
Interview with Customer Service Management Team
Benchmark staffing to peer group
Interviews with Department Directors supported by CS
Task 3 — Document Findings of Tasks I & 2
Document findings in letter report
Task 4 — Assessment of 4 Key Areas of CS
Assessment of 4 Key Areas
Subtask 4A— Assess policies
Subtask 4B — Assess Procedures
Interviews with staff and "Lean Champions' (2nd trip - 2 person)
Process mapping of key functions with assistance from "lean" champions
Accounts Receivable, Collections, Delinquencies, tum on/off
Customer service on-line, telephone, walk -in
Billing generation, review, mailing and reporting functions
Assess procedures for Meter Reading
Field observations
Process mapping of key !Unctions
Water /Sewer/Reclaimed Water
Gas
Subtask 4C — Assess Current Technology
Subtask 4D — Assess Current Work Loads
Subtask 4E— Assess Internal Communication
Task 5 — Identify Organizational Changes
Task 6: Identify Budget G
Task 7: Assess Existing and Proposed Key Performance Indicators
Conduct benchmark of key performance indicators withpeer group
Task 8: Document Findings and Recormnendations in a Report
Document findings of Assessment
Make Recommendations
Task 9: Present Findings and Recommendation to Executive Group/Council
(3rd trip - 3 person)
Total hours
Billing Rate
Fees
Expenses
Total Fees & Expenses
GW
DB
EC
AP
JW
Admit]
20
16
8
12
16
16
8
16
20
16
2
8
4
4
4
2
2
8
16
16
6
12
32
8
8
4
8
16
2
4
2
4
2
4
6
2
2
10
2
8
4
24
8
10
16
24
4
8
8
10
48
44
120
126
128
6
$ 250
$ 250
$ 210
$ 165
$ 130
$ 60
$ 12,000
$ 11,000
$ 25,200
$ 20,790
$ 16,640
$ 360
$ 85,990
$ 13,735
$ 99,725
Professional Services Agreement Page 8
REVISED Work plan
City of Clearwater Utility Customer Service Efficiency Study
Task 0: Project Management
Task I: KickoffMeeting and Data Gathering
Kick -Off Meeting (Initial trip - 4 person)
Preparation and presentation to sta87mgmt.
1 hour meeting with "Lean" Champions
Task 2. Initial Assessment of Departmental Organizational Structure
& Initial Assessment of Management/Administration
Interview with Customer Service Management Team
Benchmark staffmg to peer group
Interviews with Department Directors supported by CS
Task 3 — Document Findings of Tasks 1 & 2
Document findings in letter report
Task 4 — Assessment of 4 Key Areas of CS
Assessment of 4 Key Areas
Subtask 4A — Assess policies
Subtask 4B — Assess Procedures
Interviews with staff and "Lean Champions' (2nd trip - 2 person)
Process mapping of key finctions with assistance from "lean" champions
Accounts Receivable, Collections, Delinquencies, turn on/off
Customer service on-line, telephone, walk -in
Billing generation, review, mailing and reporting functions
Assess procedures for Meter Reading
Field observations
Process mapping of key functions
Water /Sewer/Reclaimed Water
Gas
Subtask 4C — Assess Current Technology
Subtask 4D — Assess Current Work Loads
Subtask 4E— Assess Internal Conununicadon
Task 5 — Identify Organizational Changes
Task 6: Identify Budget Gaps
Task 7: Assess Existing and Proposed Key Performance Indicators
Conduct benchmark of key performance indicators with peer group
Task 8: Document Findings and Reconmrendations in a Report
Document findings of Assessment
Make Recommendations
Task 9: Present Findings and Recommendation to Executive Group/Council
(3rd trip - 3 person)
Total hours
Billing Rate
Fees
Fees Discounted at 10 ",h.
Reduced E:spenses
Total Discounted Fees & Expenses
GW
DB
EC
AP
JW
Admin
20
16
8
12
16
16
8
16
20
16
2
8
4
4
4
2
2
8
16
16
6
12
32
8
8
4
8
16
2
4
2
4
2
4
6
2
2
10
2
8
4
24
8
10
16
24
4
8
8
10
48
44
120
126
128
6
$ 250
$ 250
$ 210
$ 165
$ 130
$ 60
$ 12,000
$ 11,000
$ 25,200
$ 20,790
$ 16,640
$ 360
$ 85,990
77,391
3,770
$ 86,161
Professional Services Agreement Page 9
From: Elaine Vastis [mailto:evastis @raftelis.com]
Sent: Wednesday, May 29, 2013 11:29 AM
To: Gomez, Robin
Subject: revised work plan for the Utility Customer Service Efficiency Study
Robin,
Based on our conversation yesterday, I have gone through our original work
plan and made revisions to reduce the estimated fees and expenses for the Utility
Customer Service Efficiency Study. Attached is the original and the revised
work plans. We have reduced our fees in two areas without reducing the
number of hours, as we do not want to sacrifice the quality or scope of the study.
We have applied a 10% discount to our fees for completing each task. In
addition, our original expenses included travel expenses and a technology charge
(for the use of computers, conference lines, printing, presentation and report
materials, etc). We have eliminated the technology charge and reduced travel
expenses as much as possible. These two revisions reduced the work plan by
approximately $13,500. We are excited about the opportunity to work with the
City of Clearwater and we hope that these two reductions reflect our willingness
to meet the City's budget on this study. I will give you a call this afternoon to
discuss the attachment.
Thank you,
- Elaine
Elaine Vastis Conti, Manager
1031 S. Caldwell Street, Suite 100 Charlotte, NC 28203
office 704.373.1199 / direct 704.936.4436 / mobile 336.918.2636
Rattelis Financial Consultants, Inc. or;w,r fte s cc.n�
Professional Services Agreement Page 10