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HomeMy WebLinkAbout04 - CC-5 - Approval of PSA with Thirdwave Corp - 10/1/2019 CITY COUNCIL AGENDA REPORT MEETING DATE: OCTOBER 1, 2019 ITEM NUMBER: CC-5 SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH THIRDWAVE CORPORATION FOR ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM PROCUREMENT SERVICES DATE: SEPTEMBER 17, 2019 FROM: FINANCE DEPARTMENT AND INFORMATION TECHNOLOGY DEPARTMENT PRESENTATION BY: KELLY A. TELFORD, CPA, FINANCE DIRECTOR AND STEVE ELY, INFORMATION TECHNOLOGY DIRECTOR FOR FURTHER INFORMATION CONTACT: KELLY TELFORD, CPA, FINANCE DIRECTOR, AT (714) 754-5243 RECOMMENDATION: Staff recommends that the City Council: 1. Approve a budget adjustment appropriating $132,000 from committed fund balance in the Information Technology Replacement Fund to the Enterprise Resource Planning (ERP) System Upgrade project for procurement of an ERP system. 2. Approve and authorize the City Manager to sign the Justification for Single Source Request for Thirdwave Corporation (Attachment 1) for ERP system procurement services. 3. Approve the proposed Professional Services Agreement (PSA) with ThirdWave Corporation for ERP system procurement services for a total not-to-exceed amount of $120,000 for a five-year term, ending September 30, 2024. 4. Authorize a ten (10) percent contingency, if needed. 5. Authorize the City Manager and City Clerk to execute the proposed PSA and future amendments to the agreement within Council authorized limits. BACKGROUND: The City has discussed and prioritized as part of the City Council 2019 Goals & Priorities the need to replace its finance, budgeting, human resources (HR) and payroll systems, collectively known as an ERP system, which is no longer supported by Oracle 2 or Windows. The ERP system is an essential tool that provides a communal financial and data management system to work interdepartmentally, in real time. The replacement of this system also enables the City to more efficiently evaluate the City’s financials and development trends and track performance measures. The system will bring an incredible wealth of benefits and improvements to the City’s capabilities, while retaining the familiarity and functionality that the City has already invested in, including: • Major advances in efficiency, transparency and internal controls; • Significant improvements in information to help the City Council and City management make better decisions; and • Better access to data and other information for residents and businesses. The City’s Information Technology Strategic Plan (ITSP), which is nearly finalized, identified this project as one of the highest priorities and is of the highest importance since many of the City’s processes and capabilities are out of step with modern procedures and internal customer expectations. In previous years, the City Council authorized $1 million from the General Fund be transferred to the Information Technology Replacement Fund (ITRF) for the purchase and implementation of a new ERP system. On February 19, 2019, the City Council authorized the transfer of an additional $1,731,074 from the General Fund to the ITRF, of which $1.03 million was committed for this purpose. ANALYSIS: City staff is seeking to hire a consultant to provide project management services for the procurement of an ERP system. ThirdWave Corporation (ThirdWave) is the consultant that prepared the ITSP. This project provided ThirdWave with an opportunity to thoroughly familiarize itself with the City’s organization, business processes and the IT landscape. Also as part of that project, ThirdWave completed as-is business process models for the City’s existing processes, particularly the processes that would need to be identified as part of and prior to the transition to an ERP system. The as-is business process models developed provide proposers with a snapshot of the business, process and technology issues facing City staff in the current environment. They also provide insight in developing the to-be process models, which will illustrate the desired future state of business processes if the solutions identified in the as-is models were implemented by vendors via the recommended ERP systems. These models work in unison and are both included in the Request for Proposals (RFP) to provide the proposers with a well-defined vision of the end user challenges and requirements, which allow for the proposers to recommend solutions that will best meet or exceed the City’s requirements. Pursuant to Section 21-101, Subsection No. 3 of the Purchasing Policy, “If a contractor develops a particular expertise through demonstrated past performance which has been investigated and determined to be satisfactory in this area of expertise, then such contractor may be awarded a subsequent contract for related work, provided that the Sole Source justification requirements outlined in this Section are satisfied. Such 3 contractor may be designated as an exclusive contractor if the City would be adversely affected by bringing in another vendor who would be required to meet the expert contractor’s level of expertise and existing knowledge and involvement in a specific project.” Since ThirdWave has already completed a portion of the services related to procuring for an ERP system as well as has intimate knowledge and familiarity of the City’s IT landscape, City staff is recommending approval of the proposed PSA with ThirdWave via a sole source standardization procurement in lieu of a formal RFP. City staff determined that it would not be in the best interest of the City to contract with a different firm since ThirdWave is already familiar with, and would not require time to, understand the existing challenges faced by City staff with the processes related to budgeting, HR and payroll. Additionally, utilizing ThirdWave for this project also reduces the City’s costs that otherwise would be incurred relating to developing such as-is models and understanding such existing processes and challenges. Consequently, staff is recommending authorization for the City Manager to sign the Justification for Sole Source and that the City Council approve the proposed Professional Services Agreement with ThirdW ave for ERP system procurement services for a total not-to-exceed amount of $120,000 for a five-year term, ending September 30, 2024. ALTERNATIVES CONSIDERED: The City Council could choose not to approve the proposed PSA and direct staff to complete a formal RFP. However, staff does not recommend this alternative since staff believes it is in the best interest of the City to contract with ThirdWave due to its level of expertise and existing knowledge and previous involvement in the ITSP. FISCAL REVIEW: The City Council previously committed $2.13 million in the ITRF for the purchase and implementation of a new ERP system. At this time, staff is only requesting to appropriate the total not-to-exceed contract amount of $120,000 and a ten (10) percent contingency of $12,000. Staff will request additional project appropriation from City Council upon award of contract for software. Subject to City Council approval, a budget adjustment will be executed appropriating $132,000 from the committed fund balance in the ITRF to the ERP Upgrade project for the specified purpose. LEGAL REVIEW: The City Attorney’s Office has reviewed and approved the agenda report and the proposed PSA as to form. CITY COUNCIL GOALS & PRIORITIES: This project is in accordance with City Council Goals & Priorities No. 6d – Good Government and Community Engagement. Improve transparency and accountability as 4 well as increasing checks and balances by, without limitation, improving the Budget/Finance Software (“ERP” or Enterprise Resource Planning). CONCLUSION: Staff recommends that the City Council: 1. Approve a budget adjustment appropriating $132,000 from committed fund balance in the Information Technology Replacement Fund to the Enterprise Resource Planning (ERP) System Upgrade project for procurement of an ERP system. 2. Approve and authorize the City Manager to sign the Justification for Single Source Request for Thirdwave Corporation (Attachment 1) for ERP System Procurement Services. 3. Approve the proposed Professional Services Agreement (PSA) with ThirdWave Corporation for ERP System Procurement Services for a total not-to-exceed amount of $120,000 for a five-year term, ending September 30, 2024. 4. Authorize a ten (10) percent contingency, if needed. 5. Authorize the City Manager and City Clerk to execute the proposed PSA and future amendments to the agreement within Council authorized limits. _________________________________ _________________________________ AMBER HASTON STEVE ELY Management Analyst Information Technology Director ________________________________ _________________________________ KELLY A. TELFORD, CPA KIMBERLY HALL BARLOW Director of Finance City Attorney Attachments: 1. Sole Source (Standardization) Justification Form 2. Proposed PSA JUSTIFICATION FOR SOLE SOURCE REQUEST Date: 09/03/2019 Dept./Div.: Finance Dept./lT Dept. Phone: 714-754-5227 Contact: Amber Haston, Management Analyst Description of Equip. /Service Req.: ERP System Procurement Services --~------------------------- Recommended Vendor: ThirdWave Corporation Address : 11400 W. Olympic Blvd. Ste. 200, Los Angeles, CA 90064 1. Check reason for sole source request : Phone : 310 .914.0186 D Sole Source: No other items are known to exist which perform the same function. D Proprietary: The item is held under exclusive title , trademark or copyright by a private person or company ; a proprietary distributorship would also apply. [gj Standardization: The City requires the item(s) to standardize parts , design, quality, etc . (explain in more detail below) 2 . Is the product or service available from other sources? [gj Yes D No If YES, list name of vendors : There are various corporations that can assist the City with the procurement of an ERP system including Softresoruces, TRG Consulting, Strativa. If NO, explain why the product/service is available from only one source: 3. Can your requirements be modified so that competitive products or services may be used? Yes No Please explain : ThirdWave Corporation is the consultant that prepared the Information Techonology Strategic Plan (ITSP). This project provided ThirdWave with an opportunity to thoroughly familiarize itself with the City's organization, business processes and the IT landscape. Also as part of that project, ThirdWave completed as- is business process models for the City's existing processes, particularly the processes that would need to be identified as part of and prior to the transition to an ERP system. The as-is business process models developed provide proposers with a snapshot of the business, process and technology issues facing City staff in the current environment. They also provide insight in developing the to-be process models, which will illustrate the desired future state of business processes if the solutions identified in the as-is models were implemented by vendors via the recommended ERP systems. These models work in unison and are both included in the Request for Proposals (RFP) to provide the proposers with a well-defined vision of the end user challenges and requirements, which allow for the proposers to recommend solutions that will best meet or exceed the City's requirements . Based on this prior experience with the City, ThirdWave has already completed a portion of the services related to procuring for an ERP system as well as has intimate knowledge and familiarity of the City's IT landscape. It would not be in the best interest of the City to contract with a different firm since ThirdWave is already familiar with, and would not require time to, unde r stand the existing challenges faced by City staff Sole Source Vendor fo rm -on line Attachment 1 with the processes related to budgeting, HR and payroll. Additionally, utilizing ThirdWave for this project also reduces the City's costs that otherwi se would be incurred relating to developing such as -is models and understanding such existing processes and challenges . 4 . How does the recommended vendor's pri ces or fees compare to t he general market? The Finance and Information Technology Depa rtments determined the proposed pricing i s competitive. Date : q \1Y )I g Date: ~ I 2 Y \ I g Date : C1 Ji t/ I }tl Sole Source Vendor form -on line 1 ThirdWave Corporation ERP System Procurement Rev. 01-2019 CITY OF COSTA MESA PROFESSIONAL SERVICES AGREEMENT WITH THIRDWAVE CORPORATION THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 1st day of October, 2019 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and THIRDWAVE CORPORATION, a California corporation (“Consultant”). W I T N E S S E T H : A.WHEREAS, City proposes to utilize the services of Consultant as an independent contractor to provide enterprise resource planning system procurement services, as more fully described herein; and B.WHEREAS, Consultant represents that it has that degree of specialized expertise contemplated within California Government Code section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and C.WHEREAS, City and Consultant desire to contract for the specific services described in Exhibit “A” (the “Project”) and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and D.WHEREAS, no official or employee of City has a financial interest, within the provisions of sections 1090-1092 of the California Government Code, in the subject matter of this Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONSULTANT 1.1. Scope of Services. Consultant shall provide the professional services described in Consultant’s Proposal, attached hereto as Exhibit “A” and incorporated herein by this reference. 1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. 1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the complete satisfaction of the City and within the hereinafter specified. Evaluations of the work will be done by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to: Attachment 2 2 ThirdWave Corporation ERP System Procurement Rev. 01-2019 (a) Meet with Consultant to review the quality of the work and resolve the matters of concern; (b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or (c) Terminate the Agreement as hereinafter set forth. 1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers’ compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Consultant shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys’ fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Consultant’s performance under this Agreement. 1.5. Non-Discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military or veteran status, except as permitted pursuant to section 12940 of the Government Code. 1.6. Non-Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.7. Delegation and Assignment. This is a personal service contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ other personnel to perform services contemplated by this Agreement at Consultant’s sole cost and expense. 1.8. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant’s covenant under this Section shall survive the termination of this Agreement. 2.0. COMPENSATION AND BILLING 2.1. Compensation. Consultant shall be paid in accordance with the Payment Schedule set forth in Exhibit A. Consultant’s total compensation shall not exceed One Hundred 3 ThirdWave Corporation ERP System Procurement Rev. 01-2019 Twenty Thousand Dollars ($120,000.00). 2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the scope of services specified in the Consultant’s Proposal unless the City Manager or designee, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. 2.3. Method of Billing. Consultant may submit invoices to the City for approval upon the completion of each task set forth in Exhibit A. “Completion” means the City has received and approved the deliverables for the task, including all subtasks. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail, the task completed, the services performed, the date of performance, the date of the City’s acceptance of the deliverable for the task, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices. 2.4. Records and Audits. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City or its Project Manager for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after termination of this Agreement. 3.0. TIME OF PERFORMANCE 3.1. Commencement and Completion of Work. Unless otherwise agreed to in writing by the parties, the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the Project Schedule agreed upon by City and Consultant. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. 4.0. TERM AND TERMINATION 4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of five (5) years, ending on September 30, 2024, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing written notice to Consultant. The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Consultant shall immediately stop rendering 4 ThirdWave Corporation ERP System Procurement Rev. 01-2019 services under this Agreement unless directed otherwise by the City. 4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City’s written notice of termination. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. In ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Consultant. 4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of delivery of termination notice to Consultant, at no cost to City. Any use of uncompleted documents without specific written authorization from Consultant shall be at City’s sole risk and without liability or legal expense to Consultant. 5.0. INSURANCE 5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, rated “A,” Class X, or better in the most recent Best’s Key Insurance Rating Guide, and approved by City: (a) Commercial general liability, including premises-operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit. (b) Business automobile liability for owned vehicles, hired, and non-owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence for bodily injury and property damage. (c) Workers’ compensation insurance as required by the State of California. Consultant agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers, agents, employees, and volunteers arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies. (d) Professional errors and omissions (“E&O”) liability insurance with policy 5 ThirdWave Corporation ERP System Procurement Rev. 01-2019 limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. Architects’ and engineers’ coverage shall be endorsed to include contractual liability. If the policy is written as a “claims made” policy, the retro date shall be prior to the start of the contract work. Consultant shall obtain and maintain, said E&O liability insurance during the life of this Agreement and for three years after completion of the work hereunder. 5.2. Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions: (a) Additional insureds: “The City of Costa Mesa and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant.” (b) Notice: “Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor the coverage or limits reduced, until thirty (30) days after written notice is given to City.” (c) Other insurance: “The Consultant’s insurance coverage shall be primary insurance as respects the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Costa Mesa shall be excess and not contributing with the insurance provided by this policy.” (d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. (e) The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. 5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self-insured retention. 5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. 5.5. Non-Limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property. 6 ThirdWave Corporation ERP System Procurement Rev. 01-2019 6.0. GENERAL PROVISIONS 6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement. 6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Project Managers. City shall designate a Project Manager to work directly with Consultant in the performance of this Agreement. Consultant shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement. Consultant or its Project Manager shall attend and assist in all coordination meetings called by City. 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: (a) at the time of delivery if such communication is sent by personal delivery, and (b) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. IF TO CONSULTANT: IF TO CITY: ThirdWave Corporation 11400 W. Olympic Blvd. Suite 200 Los Angeles, CA 90064 City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Tel: (310) 914-0186 Tel: (714) 754-5243 Attn: Roy Hernandez Attn: Kelly Telford Courtesy copy to: City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Attn: Finance Dept. | Purchasing 6.5. Drug-Free Workplace Policy. Consultant shall provide a drug-free workplace by 7 ThirdWave Corporation ERP System Procurement Rev. 01-2019 complying with all provisions set forth in City’s Council Policy 100-5, attached hereto as Exhibit “B” and incorporated herein by reference. Consultant’s failure to conform to the requirements set forth in Council Policy 100-5 shall constitute a material breach of this Agreement and shall be cause for immediate termination of this Agreement by City. 6.6. Attorneys’ Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. 6.7. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California. 6.8. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City’s consent, no subletting or assignment shall release Consultant of Consultant’s obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement. 6.9. Indemnification and Hold Harmless. Consultant agrees to defend, indemnify, hold free and harmless the City, its elected officials, officers, agents and employees, at Consultant’s sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect. 6.10. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, 8 ThirdWave Corporation ERP System Procurement Rev. 01-2019 or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph. 6.11. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 6.12. Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require. 6.13. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys’ fees, arising out of or resulting from City’s use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other Project related items as requested by City or its authorized representative, at no additional cost to the City. 9 ThirdWave Corporation ERP System Procurement Rev. 01-2019 6.14. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court. 6.15. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act (Government Code sections 81000, et seq.) and Government Code section 1090. During the term of this Agreement, Consultant and its officers, employees, associates and subconsultants shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subconsultants to abstain from a decision under this Agreement pursuant to a conflict of interest statute. 6.16. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design drawings, estimates and other Consultant professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 6.17. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect. 6.18. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced. 6.19. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 6.20. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 10 ThirdWave Corporation ERP System Procurement Rev. 01-2019 6.21. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.22. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 6.23. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.24. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.25. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 6.26. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. 6.27. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. [Signatures appear on following page.] 11 ThirdWave Corporation ERP System Procurement Rev. 01-2019 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CONSULTANT __________________________________ Date: __________________________ Signature __________________________________ __________________________________ [Name and Title] Social Security or Taxpayer ID Number CITY OF COSTA MESA __________________________________ Date: __________________________ Lori Ann Farrell Harrison City Manager ATTEST: __________________________________ Brenda Green City Clerk APPROVED AS TO FORM: __________________________________ Date: __________________________ Kimberly Hall Barlow City Attorney APPROVED AS TO INSURANCE: __________________________________ Date: __________________________ Ruth Wang Risk Management 12 ThirdWave Corporation ERP System Procurement Rev. 01-2019 APPROVED AS TO CONTENT: __________________________________ Date: __________________________ Kelly Telford Project Manager APPROVED AS TO PURCHASING: __________________________________ Date: __________________________ Kelly Telford Finance Director EXHIBIT A CONSULTANT’S PROPOSAL Thought Leadership Exceptional Performance & Results since 1987 ThirdWave Enterprise Resource Planning Procurement Prepared for the City of Costa Mesa August 26, 2019 ThirdWave Corporation Information Systems Intelligently Applied 11400 W. Olympic Blvd. Suite 200 Los Angeles, CA 90064 www.ThirdWaveCorp.com 310.914.0186 32  YEARS  ThirdWave Corporation Information Systems Intelligently Applied SM since 1987 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Thought Leadership, Exceptional Performance & Results since 1987 ThirdWave 32  YEARS  August 26, 2019 Steve Ely Information Technology Director Information Technology City of Costa Mesa 77 Fair Dr, Costa Mesa, CA 92626 714.754.4891 steve.ely@costamesaca.gov Subject: Proposal for Providing Professional Services: Enterprise Resource Planning System Procurement Reference: Meeting with the City of Costa Mesa on June 13, 2019, and follow up conference call on August 24, 2019, same subject Dear Steve, Per the City’s request, and our meetings on the procurement of a new Enterprise Resource Planning (ERP) system for the City of Costa Mesa, ThirdWave is pleased to provide this proposal. This document reflects the scope of work reviewed in our meeting, and includes the Professional Services to articulate functional and technical requirements that will inform the development of a Request for Proposal for the procurement of an ERP. In addition, the proposed scope of work will include facilitating the procurement process, all the way through contract negotiation. In essence, ThirdWave will act as an extension of the City’s staff resources, responsible for the execution and project management of the ERP procurement process. This proposal represents a supremely qualified firm offering:  A core competency and specialization in Information Technology requirements definition used to produce solicitation documents resulting in the successful selection and implementation of ERP systems. ThirdWave is a subject matter expert in the entire government procurement life cycle. Our project expertise has included providing the following services for 32 years, for almost 300 (three-hundred) government clients.  Requirements Definition  Technical Specifications  Technical research and budget estimating  RFP Development  Procurement Assistance: facilitating bid conference, issuing addendum, developing vendor bench mark/scoresheets, vendor evaluation, and selection  Contract Negotiation  Project Management Office during the implementation phase  Extensive experience working effectively with, and knowledge of, the City of Costa Mesa. Our firm has had the pleasure of working with the City on a comprehensive IT Strategic Planning project. Consequently, we are highly familiar with the organizational, business process and the Information Technology landscape. This will allow the proposed ERP project to move forward expeditiously out of the gate, leveraging the requirements knowledge gained in the ITSP project recently completed.  Holistic software specifications, addressing the complete spectrum of technically detailed requirements, using ThirdWave's patented as-is and to-be Rapid Workflow® requirements definition methodology. This is a method City staff and management are already familiar with, as a result of the IT Strategic Planning project ThirdWave carried out for the City. ThirdWave Corporation Information Systems Intelligently Applied SM since 1987 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Thought Leadership, Exceptional Performance & Results since 1987 ThirdWave 32  YEARS  August 26, 2019 Page 2 of 2 Steve Ely Information Technology Director Information Technology Subject: Proposal for Providing Professional Services: Enterprise Resource Planning System Procurement Reference: Meeting on June 13, 2019, same subject  A well thought out project approach, detailed work plan at a competitive price. The scope of work in this proposal reflects a preferred customer discount. Although we are providing a cost-effective proposal, we have not sacrificed on the work. The proposed project will employ rigorous best practices throughout.  Disciplined and robust PMBOKTM Project Management, with a 100% track record of completing projects on or under schedule/budget. The ThirdWave Project Manager has 32 years’ experience in managing approximately two-hundred (200) successful enterprise government IT projects. Rigorous project management best practices will be pivotal to the success of the proposed ERP engagement.  A viable, full service Management Consulting/Systems Integration firm in business for 32 years. We have implementation, integration and project management experience with a broad range of technologies, e.g., networking/communications infrastructure, hardware, commercial off-the-shelf software, ERP applications, departmental applications (Asset Management, Land Management, GIS, Public Safety, etc.), and have received national and international AIIM awards for Enterprise Content Management System projects. We are experts on Web-enabled/E-Government applications.  A firm with peerless credentials, experience and professional qualifications. The proposed project team is made up of seasoned technical professionals. ThirdWave has a solid understanding of the project goals, objectives and desired results, however, we look forward to reviewing and refining the project approach and scope, as required to best meet the desired project outcomes. We offer demonstrated competence, professional qualifications, and most importantly, a proven capability at the City of Costa Mesa. As the City moves forward with this critical initiative, our firm is poised and ready to deliver. We look forward to providing the same level of success to the City as we have done for many other local Government customers. We look forward to working with the City of Costa Mesa on this important engagement! Sincerely, Roy Hernandez President / CEO rhernandez@thirdwavecorp.com Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 i ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Table of Contents Cover Letter Section 1 Company Background ...................................................................................................... 1 1.1 Company Overview ................................................................................................ 1 Figure 1.1.1: ThirdWave Areas of Expertise and Core Competencies ................. 2 Figure 1.1.2: ThirdWave’s Projects National Presence ........................................ 2 Section 2 Scope of Work ................................................................................................................... 3 2.1 Approach ................................................................................................................ 3 2.2 ThirdWave’s Patented Methodology ...................................................................... 4 2.2.1 Project Approach ................................................................................................... 5 Figure 2.2.1.1: Requirements, RFP, Solicitation & Implementation Life Cycle ..... 5 2.2.2 ThirdWave’s Keys to Success ............................................................................... 6 2.3 Project Plan and Deliverables ................................................................................ 6 2.3.1 Work Plan ........................................................................................................ 7 2.4 Project Schedule .................................................................................................. 20 Figure 2.4.1: Preliminary Project Schedule ........................................................ 21 2.5 Similar Projects & Customer References ............................................................ 23 2.5.1 City of Berkeley ERP Requirements, RFP, Procurement & Contract Negotiation ...................................................................................................... 23 2.5.2 Helix Water District ERP Requirements, RFP Development, Procurement & PMO ...................................................................................................... 24 2.5.3 City of Centennial ERP Requirements, RFP & Procurement .............................. 26 2.5.4 City of Sacramento Digital (IT) Master Plan ........................................................ 27 2.5.5 City of Long Beach ECMS Requirements, RFP, Procurement & Contract Negotiation ...................................................................................................... 28 Section 3 Price Proposal ................................................................................................................. 29 3.1 Cost Proposal ...................................................................................................... 29 Figure 3.1.1: Cost Summary ............................................................................... 29 3.2 Detailed Payment Schedule ................................................................................. 30 Figure 3.2.1: Detailed Payment Schedule ........................................................ 30 Section 4 Similar Project Artifacts .................................................................................................... 32 4.1 Helix Water District, La Mesa CA ........................................................................... 32 Figure 4.1.1: Helix Water ERP RFP Table of Contents ........................................ 34 4.2 City of Centennial, CO ............................................................................................ 39 Figure 4.2.1: Session 14: Fixed Asset Public Works As-Is Process Map .......... 47 Figure 4.2.2: Session 14: Fixed Asset Public Works To-Be Process Map ........ 47 Figure 4.2.3: Session 3: Reports To-Be Model ................................................... 48 Figure 4.2.4: Session 5: Interface Enterprise To-Be Model ............................... 49 Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 1 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 1.1 Company Overview ThirdWave is a privately held California Corporation established in 1987 headquartered in Los Angeles (www.ThirdWaveCorp.com). ThirdWave has always been, and continues to be, a profitable and debt-free company. In the past, we have had offices in Los Angeles, San Jose, Las Vegas, Tampa, and New York City. The Los Angeles office has been our headquarters for 32 years. The principals of the firm are Roy Hernandez, President and Sergio Hernandez, Executive Vice President. Our firm’s extraordinary track record of accomplishment is attributed to our passionate commitment to the success of our clients, professional integrity, and technical excellence. Consequently, we have received numerous clients, national, and international industry recognition awards. Working in S.W.A.T- team fashion, our staff members have established a track record for achieving extraordinary results in record time. Our mission is to address a need with expertise, optimize the effective use of computer tools, and work with end users to ensure success. Our company motto is as pragmatic as our philosophy: "No excuses, just results!" ThirdWave is a full-service Management Consulting/Systems Integration firm providing a broad range of professional and technical services. We offer a breadth and depth of professional and technical areas of expertise in several core competencies. ThirdWave’s Los Angeles Headquarters Office since 1988 Section 1 Company Background Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 2 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Figure 1.1.1: ThirdWave Areas of Expertise and Core Competencies Rapid Workflow® Products Business/IT Strategic Plans Enterprise Content Management  Bus. Process Improvement/BPM  Rapid Workflow® Mentoring  Certification Training  T3 Training Programs  Rapid Workflow® Licensing  Enterprise IT Strategic Plans  Cost/Benefit Analysis  Project Management Office  Enterprise Architecture  Standards and Best Practices  Award Winning ECMS Strategic Planning & Deployment  ECMS Application Development  Automated Workflow, e-Forms, e- Signatures, App. Integration Web/e-Government Services Integration Services GIS Services  E-Government Strategic Plans  Web Service Delivery Apps  E-Commerce Applications  Website/ASP Development  Enterprise App. Integration  ERP (Finance/HR/MM)  Infrastructure Security  Legacy Systems Integration  IT Staff Outsourcing  GIS Consulting  GIS Strategic Planning  Web-enabled GIS Apps  GIS Integration  GIS Staff Outsourcing Procurement Services Development Services Project Management Office  Requirements Definition  Functional & Technical Specs  RFP Development  Solicitation Process Facilitation  Contract Negotiation  Software/DB Development  Languages: AJAX, VB, .NET, C#, C++, Java, J2EE, VB, SQL  DB: Oracle, SQL Server, Access, MySQL, DB2  Project Specification & Planning  Project Management Best Practices  Resource Allocation Planning  PM Documentation and Metrics ThirdWave has carried out IT projects for transportation, city, county, state and federal clients in 27 states, as illustrated in the figure below. Figure 1.1.2: ThirdWave’s Projects National Presence Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 3 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.1 Approach ThirdWave’s approach for the project has gone through considerable planning e.g., assessment of project goals and objectives, scope definition, and resource allocation considerations of City and IT staff. Our approach is based on the following principles:  Use of Rapid Workflow Process Modeling®, to rapidly produce As-Is and To-Be process models to articulate business, functional, and technical software requirements. ThirdWave will use the technique to expedite the requirements for all of the application software identified in the RFP. (The City of Costa Mesa is very familiar with the method and some staff have received training on the methodology, which will expedite the process.)  Employ government procurement best practices to develop solicitation specifications and manage the solicitation process. ThirdWave will apply procurement best practices we have used for 32 years on more than 40 technology procurements.  Apply rigorous PMBOKTM project management best practices to manage the sizable project. The development of requirements and RFP, and the solicitation process, will require seasoned and disciplined project management. Section 2 Scope of Work Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 4 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.2 ThirdWave’s Patented Methodology Our understanding of the City of Costa Mesa RFP project is based on more than 32 years of specialization in providing requirements defintion and RFP development for city, county, state and federal agencies throughout the US and Canada. Our firm offers extensive requirements definition/RFP development experience. Our proven methodology produces detailed functional and technical requirements that, when incorporated into solicitation documents, provide clear performance specifications vendors can readily respond to. Through our comprehensive methodology using as-is and to-be business process modeling, we identify the following business, functional and technical requirements:  As-Is Business Process Models: identifying challenges with existing business processes and systems, and/or the lack of contemporary technology. These artifacts are used to build staff consensus on existing challenges, as well as provide bidders with a snapshot of the business, process and technology issues facing staff in the current environment. This information is incorporated in the solicitation documents. The project will leverage eight as-is process maps produced as part of the ITSP.  To-Be Process Models: illustrating the desired futures state business processes if the solutions identified in the as-is workshops were implemented by vendors. These artifacts provide potential bidders a well-defined vision of what end user require, allowing vendors to respond with solutions that will best meet or exceed the requirements. This information is incorporated in the solicitation documents.  Technical Specifications: identifying specific technology capabilities that proposed software must satisfy. This information is incorporated into the solicitation documents, typically in the form of checklists addressing a comprehensive set of requirements, or performance specifications, including some or all of the following (as appropriate):  Software Features and Functions  Reports Requirements  Interfaces Requirements  Data Migration Requirements (if applicable)  System Requirements  Performance Requirements (Service Levels, Security, etc.)  Hardware Requirements  Assumptions Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 5 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.2.1 Project Approach ThirdWave proposes to use a tried and proven best practice method for the execution of the proposed project, as illustrated below. The scope of work for this proposal includes phases 1, 2 and 3. The Implementation PMO (Project Management Office) is presented as an option as a future engagement. Figure 2.2.1.1: Requirements, RFP, Solicitation, & Implementation Life Cycle Based on our experience, the requirements definition, specification and solicitation phases of the project will be fairly straightforward – but will require a considerable, well-coordinated and orchestrated effort. Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 6 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.2.2 ThirdWave’s Keys to Success ThirdWave’s understanding of what it will take to deliver a successful needs assessment. specification and procurement of the proposed enterprise modules can be summed up in the following critical success factors:  Employ a comprehensive enterprise discovery, requirements definition and recommendations methodology that addresses management, operational and technology needs to support core business functions, business processes and customer service.  Use a participatory process and techniques to engage stakeholders, foster buy-in and build consensus.  Identify state-of-the-practice/emerging strategic business technologies that effectively support government business process improvement, foster customer access and transparency, and enhanced service delivery, while improving internal operating efficiencies. 2.3 Project Plan and Deliverables The project work plan reflects a logical and structured approach for executing City’s ERP Procurement project. All of the deliverables identified in City’s RFP are addressed in this Proposal. Tasks/subtasks in the work plan will produce a deliverable, e.g., a workshop, meeting, document, presentation, etc. On tasks where the deliverable is a document, ThirdWave will provide an electronic copy either in MS Word or PDF, or as specified by City. Some key draft deliverables will be provided to the City’s Project Manager for review and comment by appropriate City staff. City review and comment subtasks are denoted with the prefix “City.” Obtaining City review and comment on key deliverables is a risk management/quality control technique that will ensure the desired results are obtained. Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 7 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.3.1 Work Plan The following provides a description of the proposed scope of work and project deliverables for the project. PHASE 0 PROJECT MANAGEMENT Task 0.1 Project Kick-off Meeting This task will entail holding an onsite project kickoff meeting with the City and ThirdWave’s Project Team. A PowerPoint presentation will be produced to review the project goal and objectives, project plan, deliverables, project schedule, ThirdWave and City responsibilities, and the PMBOKTM project management protocol. Assumptions: 1. Staff and management representing all departments heads affected by the proposed ERP will attend the kick-off meeting. Given that this is an enterprise system, all department heads and IT staff should attend. It is important that key stakeholders receive an overview of the project and understand its importance. 2. The project kick-off meeting will last one hour. Deliverable 0.1: Project Kick-Off Meeting Task 0.2 Ongoing Coordination This task will entail providing ongoing communication, planning and coordination of project tasks between the City and ThirdWave. This will be accomplished with weekly conference calls or onsite meetings if required. Deliverable 0.2: Weekly Coordination Conference Calls Task 0.3 Monthly Status Report This task will entail providing written progress reports to the City’s Project Manager outlining the status of the project on a monthly basis, including the following, as appropriate:  Dashboard of the project status: scope, task completed, deliverables, cost  Description of progress made during the reporting period  Deliverables completed and delivered during the reporting period  Outstanding issues and recommendations for resolution (if any)  Scope, cost and schedule integrity status Deliverable 0.3: Monthly Status Reports Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 8 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F PHASE 1 TECHNICAL & FUNCTIONAL REQUIREMENTS Task 1.1 As-Is Rapid Workflow® Workshops Task 1.1.1 Hold As-Is Workshops This task will entail holding business requirements workshops for the key Finance and Human Resource business processes. The workshops will identify departmental and cross functional business and technology requirements. Working with business process stakeholders, as-is business process workshops will review and identify functional and technical requirements for each application. The as-is workshops will be facilitated in the same manner as they were in the IT Strategic Plan, assessing business processes/activities encompassing management, operational and Information Technology challenges facing the existing business process. Workshops will be carried out as appropriate for each of the ERP applications. The following list forms the basis of our proposed workshop list; processes with ‘ITSP’ were addressed in the ITSP and therefore will not be held in this project. This list will be reviewed and finalized during the project. Financial Application Processes 1 General Ledger ........................................................................ 1 2 General Accounting ........................................................... ITSP 3 Accounts Payable .............................................................. ITSP 4 Accounts Receivable ............................................................... 1 5 Treasury ............................................................................. ITSP 6 Year End Closing ............................................................... ITSP 7 Store Inventory .................................................................. ITSP 8 Budgeting ................................................................................. 1 9 GASB34 Reporter .................................................................... 1 10 Project Accounting ................................................................... 1 11 Fixed Assets ............................................................................ 1 12 Contract Management ............................................................. 1 Human Resource Processes 13 Payroll ................................................................................ ITSP 14 Benefits .............................................................................. ITSP 15 New Hires .......................................................................... ITSP 16 Position Budgeting ................................................................... 1 As-Is Workshops 8 Assumptions: 1. To maximize project resources, and contain the project timeline, two (2) workshops will be held per day on Monday through Thursday until all working session have been completed. Deliverable 1.1.1: As-Is Business Requirements Workshops Task 1.1.2 Document Business & Service Delivery Requirements Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 9 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F This task will include documenting the business, functional, and technical requirements data collected in the working session. The session notes will be provided to City’s Project Manager for distribution to the participants of each group for review and comments. Deliverable 1.1.2: Draft Business Process Maps City 1.1.2 City Review & Comment This task will entail appropriate City staff reviewing the draft process maps and providing comments and suggested revisions. A set of comments will be provided to the ThirdWave Project Manager. Deliverable 1.1.2.: Comments Task 1.1.3 Finalize As-Is Business Process Maps This task will entail incorporating the City’s comments to produce the final Rapid Workflow® business needs assessment deliverable. The data collected in this deliverable will be referenced and used to produce the To-Be process models and technical specifications. Deliverable 1.1.3: As-Is Business Process Maps Task 1.2 To-Be Rapid Workflow® Workshops Task 1.2.1 Hold To-Be Process Workshops This task will entail holding To-Be Rapid Workflow® workshops to identify the features and functions the proposed software must satisfy. Drawing upon the information gathered from business process owners in the previous workshops, the As-Is business process maps and findings, this task will modify the process maps to reflect business, functional and technical requirements of sufficient detail that they can be incorporated into the technical section of a Request for Proposal. Typical To-Be data collected in these workshops will include the following:  Software Features and Functions  Reports Requirements  Interfaces Requirements  Data Types/Migration Requirements (if applicable)  System Requirements  Performance Requirements (Service Levels, Security, etc.)  Hardware Requirements  Assumptions To-Be workshops will address the following: Financial Application Processes 1 General Ledger ........................................................................ 1 2 General Accounting ................................................................. 1 3 Accounts Payable .................................................................... 1 4 Accounts Receivable ............................................................... 1 5 Treasury ................................................................................... 1 6 Year End Closing ..................................................................... 1 Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 10 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 7 Store Inventory ........................................................................ 1 8 Budgeting ................................................................................. 1 9 GASB34 Reporter .................................................................... 1 10 Project Accounting ................................................................... 1 11 Fixed Assets ............................................................................ 1 12 Contract Management ............................................................. 1 Human Resource Processes 13 Payroll ...................................................................................... 1 14 Benefits .................................................................................... 1 15 New Hire .................................................................................. 1 16 Position Budgeting ................................................................... 1 To-Be Workshops 16 Assumptions: 1. To maximize project resources, and contain the project timeline, two (2) workshops will be held per day on Monday through Thursday until all working session have been completed. Deliverable 1.2.1: To-Be Business Workshops Task 1.2.2 Document To-Be Processes This task will entail taking the notes from the To-Be Rapid Workflow® sessions, and producing To-Be (or future state) business processes in MS Visio for each function reviewed in the working sessions. Deliverable 1.2.2: Draft To-Be Process Maps City 1.2.2 Review & Comment This task will entail appropriate City staff reviewing the draft deliverable and providing comments and suggested revisions. Comments, revisions and corrections to the document will be reconciled and consolidated by the City for each business process model, with one set of comments transmitted to the ThirdWave Project Manager. Deliverable 1.2.2: Comments Task 1.2.3 Final To-Be Business Process This task will entail incorporating the City’s comments to produce the final To-Be business process map deliverable. The data collected in this deliverable will form the basis for the technical and performance specification incorporated into the RFPs. Deliverable 1.2.3: To-Be Business Process Maps Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 11 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Task 1.3 ERP Reporting Requirements Task 1.3.1 Hold Report Requirements Workshops This task will entail holding workshops with business process owners and subject matter experts to produce a list of required reports for each of the following applications modules: Financial Applications 1 General Ledger 2 General Accounting 3 Accounts Payable 4 Accounts Receivable 5 Treasury 6 Year End Closing 7 Store Inventory 8 Budgeting 9 GASB34 Reporter 10 Project Accounting 11 Fixed Assets 12 Contract Management HR Applications 13 Payroll 14 Benefits 15 New Hires 16 Position Budgeting The report specification will identify the following for each report:  Report Name  Purpose of Report  Minimum Key Report Data  Method of providing report:  Out of the Box  Configurable  Programmable  3rd Party  Not provided This information will be provided as an appendix in the RFP document. Assumptions: 1. These workshops will last between 1 to 2 hours. Deliverable 1.3.1: Report Requirement Workshops City 1.3.1 Review & Comment This task will entail appropriate City staff reviewing the draft deliverable and providing comments / suggested revisions. Deliverable 1.3.1: Comments Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 12 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Task 1.3.2 Reporting Requirements This task will entail incorporating City staff comments to finalize the Report Specification appendix. Deliverable 1.3.2: Report Specification Task 1.4 ERP Interface Requirements Task 1.4.1 Hold Interface Requirements Workshops This task will entail holding a Rapid Workflow® workshop with subject matter experts for the following. ThirdWave and the City will determine how to best address interface – and the number of meetings it will take to produce this specification. Financial Applications 1 General Ledger 2 General Accounting 3 Accounts Payable 4 Accounts Receivable 5 Treasury 6 Year End Closing 7 Store Inventory 8 Budgeting 9 GASB34 Reporter 10 Project Accounting 11 Fixed Assets 12 Contract Management HR Applications 13 Payroll 14 Benefits 15 New Hires 16 Position Budgeting Deliverable 1.4.1: Interface Requirements Workshops City 1.4.1 Review & Comment This task will entail appropriate City staff reviewing the draft deliverable and providing comments / suggested revisions. Deliverable 1.4.1: District Comments Task 1.4.2 Interface Requirements This task will entail incorporating City staff comments to finalize the Interface Requirements Specification appendix. Deliverable 1.4.2: Interface Requirements Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 13 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Task 1.5 Data Migration Workshops Task 1.5.1 Hold Data Migration Workshops This task will entail holding workshops with IT and Finance staff to identify the data that will need to be migrated from the existing system(s) into the proposed ERP system. ThirdWave and the City will determine how to best address interface – and the number of meetings it will take to produce this specification. Financial Applications 1 General Ledger 2 General Accounting 3 Accounts Payable 4 Accounts Receivable 5 Treasury 6 Year End Closing 7 Store Inventory 8 Budgeting 9 GASB34 Reporter 10 Project Accounting 11 Fixed Assets 12 Contract Management HR Applications 13 Payroll 14 Benefits 15 New Hires 16 Position Budgeting Deliverable 1.5.1: Data Migration Workshops City 1.5.1 Review & Comment This task will entail appropriate City staff reviewing the draft deliverable and providing comments / suggested revisions. Deliverable 1.5.1: Comments Task 1.5.2 Data Migration Requirements This task will entail incorporating City staff comments to finalize the Data Migration Requirements Specification appendix. Deliverable 1.5.2: Data Migration Requirements Task 1.6 Develop Implementation Plan Task 1.6.1 Draft Implement Plan This task will entail developing a comprehensive plan to implement the ERP system including prioritization of solution requirements, suggested timeframes for implementing the solution, necessary City staff resources, and allocation of time. Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 14 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F A detailed plan of action report related to the implementation of solutions and the phases of each will clearly detail City resources needed to implement the solutions, including assessment of staff’s current workloads in consideration of the workload demands associated with an ERP implementation, and identification of areas in which outside temporary help could be utilized. Deliverable 1.6.1: Draft Implementation Plan City 1.6.1 Review & Comment This task will entail appropriate City staff reviewing the draft deliverable and providing comments / suggested revisions. Deliverable 1.6.1: Comments Task 1.6.2 ERP Implementation Plan This task will entail incorporating the comments provided by the City to produce the final ECMS RFP document deliverable. Deliverable 1.6.2: ERP Implementation Plan Phase 2 PROCUREMENT PHASE Task 2.1 ERP RFP Requirements Task 2.1.1 Draft RFP Requirements This task will entail developing an Enterprise Module RFP(s) for the solicitation of competitive bids. ThirdWave will produce the technical section of a Request For Proposal (RFP) document that is responsive to the business, functional and technical requirements identified in previous project tasks, including the following sections: RFP Sections  Goals & Objectives  Scope of Work  Deliverables  Implementation Time Table: Critical dates for the project and Milestones when the contractor is to complete certain phases  Vendor Qualifications  Responsibilities of all the Parties (provided by the Client)  Description of the Bid Evaluation Process (provided by the Client)  The term of the proposed contract, the anticipated date contract work will commence and date of completion  Technical Requirements:  Features and Function Matrix: out-of-the-box, configurable, or custom programmed, 3rd party, not provided  Reports Matrix: out-of-the-box, configurable, or custom programmed, 3rd party, not provided  Interfaces: APIs, Custom Programmed, etc.  Data Migration Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 15 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F  Cost Proposal, including  Software Costs:  Purchased Software & Maintenance Costs  On premise, leased (on premise), Hosted (cloud) or a combination  Professional Services:  Installation/Configuration costs  Integration/Interface costs  Data Migration costs  Training costs  On-going training options Assumptions: 1. The scope will state that the contractor will complete all services listed on a Fixed Fee, deliverable based, contract. 2. The order of the foregoing will be discussed and finalized based on the City’s typical RFP content sequence. Deliverable 2.1.1: Draft Technical Section to RFP City 2.1.1 Review & Comment This task will entail appropriate City staff reviewing the draft deliverable and providing comments / suggested revisions. Deliverable 2.1.1: Comments Task 2.1.2 ERP RFP This task will entail incorporating the comments provided by the City to produce the final RFP deliverable(s). Deliverable 2.1.2: ERP RFP Technical Sections Task 2.2 Pre-Bid Conference This task will entail the following activities:  Develop the agenda for the conference.  Facilitate the meeting.  Take notes of questions and answers on technical questions, as appropriate. Assumptions: 1. Purchasing, Contractual and the City’s Terms & Conditions will be addressed by the City. Deliverable 2.2: Attend Pre-bid Conference Task 2.3 Assist with Response to Questions & Addendums This task will entail providing input to the evaluation committee responding to questions raised by vendors in the pre-bid conference. ThirdWave will assist City IT staff respond to technical questions. Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 16 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Assumptions: 1. Non-technical questions related to the Standard City Contract, Terms & Condition, Insurance requirements, etc. will be addressed by appropriate City staff. Deliverable 2.3: Respond to Questions & Addendums Task 2.4 Vendor Proposals Evaluation This task will entail assisting the City evaluate vendor proposals, working with core project team to provide input and recommendations to assist with proposal reviews. This task will include the following activities:  Develop consistent comparison criteria for a qualified vendor selection process by comparing the: Vendor Qualifications, Similar Projects, Technical Proposal, Cost Proposal, etc.  Develop vendor evaluation score cards.  Assist the client review and evaluate vendor proposals, provide counsel in the best interest of the City.  Assist in scoring RFP responses using a vendor scoring matrix. Deliverable 2.4: Proposal Evaluation & Vendor Shortlisting Task 2.5 Vendor Demonstrations / Benchmarks This task will entail assisting the City prepare for the vendor demonstrations/ benchmarks. The difference between a demo and a benchmark is that a demonstration is a generic demonstration of a system's features and functions, and the latter is the demonstration of features and function following a script to specifically demonstrate how the system will address specific City software requirements. This task will include the development of the following: 1. Agenda 2. Presentation scripts 3. Demonstration / Benchmark Scripts 4. Benchmark Scoresheets for the evaluation committee's use Deliverable 2.5: Vendor Demonstration Agenda & Scripts Task 2.6 Attend Vendor Demonstrations This task will entail attending and facilitating the vendor demos/benchmarks of short-listed vendors. ThirdWave will work with the City Team to prepare an agenda for use in vendor demonstrations, including demonstration scripts/demonstration evaluation forms for use by the selection committee. We will manage the clock to ensure all vendors have a leveled playing field to demonstrate their solutions. Deliverable 2.6: Attend Vendor Demonstrations Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 17 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Task 2.7 Vendor Evaluation & Selection This task will entail assisting the evaluation committee score the vendor demonstrations/benchmarks. This will also include collecting and comping scores for the committee's consideration. If required, we will assist in developing requests for clarifications with regards to the vender proposal and/or demonstrations. Deliverable 2.7: Vendor Selection Input Task 3.0 Contract Negotiation Task 3.1 Assist with Contract Negotiation This task will entail assisting the City during the contract negotiation process. We Participate in client meetings to discuss contract negotiation strategies and advocate for the client; act to ensure that the City's best interest are represented in the final vendor agreement, including short and long-term cost, services and schedule. Deliverable 3.1: Contract Negotiation 2.3.2 Optional: Implementation Phase Project Management ThirdWave is also capable of providing project management services (PMO) for the implementation of the ERP system. PHASE 2 PROJECT MANAGEMENT This task will entail ThirdWave providing the necessary services to manage the implementation of the Enterprise Resource Planning system. We will provide a PMO team consisting of a Advisory Program Manager (5% FTE), Project Manager (50% FTE) supported by one Systems Specialist (15%). Task O 1 Project Initiation Task O.1.1 Project Charter This task will entail developing a project charter in collaboration with City IT Staff. Project charters typical address the following: Working with the City’s Executive Sponsor and Project Team, this task will entail developing a project charter addressing the following:  Project Background  Goals  Scope of Work: from the vendor contracts  Out of Scope Activities  Key Stakeholders, roles & responsibilities  Executive Sponsor  City Department Heads Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 18 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F  City Finance & HR Stakeholder Team  Project Team Members  Project Milestones  Project Schedule  Project Budget  Constraints  Assumptions  Risks and Dependencies Deliverable O.1.1: Project Charter Task O.1.2 Communication Plan This task will entail developing a project communication plan, which will provide guidance on the most appropriate forms of communications for the project team. Protocols for the use of email, onsite/web meetings, and verbal communications will be identified. The frequency/schedule for regular project managers coordination, project team status meetings, and management meetings will be articulated. Deliverable O.1.2: Communication Plan Task O.1.3 Change Management Plan This task will entail a number of change management activities as it applies to managing the people side of implementing new technologies, e.g., communication, education and resistance management, as the ERP is implemented. Deliverable O.1.3: Change Management Plan Task O.1.4 Project Kick-off Meetings This task will entail holding an onsite project kickoff meeting with City staff and ThirdWave’s Project Team. A PowerPoint presentation will be produced to review the overall project goal and objectives, project plan, deliverables, project schedule, ThirdWave and City responsibilities, and the PMBOKTM project management protocol. Assumptions: 1. Staff and management representing all departments will attend the kick-off meeting. Deliverable O 1: Project Kick-Off Meeting Task O.1.5 Ongoing Weekly Coordination This task will entail providing ongoing project coordination, including: communications, planning and coordination project tasks between implementation vendor(s), the City and ThirdWave Project Team. This will be accomplished with weekly meetings (in person or video) and/or conference calls. Deliverable O 3: Weekly Coordination Conference Calls Task O.1.6 Monthly Status Report Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 19 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F This task will entail providing written progress reports to the City of Costa Mesa’s Executive Sponsor and Project Team, outlining the status of the project on a monthly basis, including the following, as appropriate:  Dashboard of the project status  Description of progress made during the reporting period  Deliverables completed and delivered during the reporting period  Outstanding issues and recommendations for resolution (if any)  Scope, cost and schedule integrity status Deliverable O 4: Monthly Status Reports Task O.1.7 Project Management / Vendor Oversight This task will entail providing ongoing oversight across all enterprise module implementation projects. This task will include monitoring the following:  Project Scope, and compliance with the Contract  Project Schedule, reviewing schedule integrity and working with vendors to mitigate schedule delays.  Review of deliverables against the Contract Scope of Work  Project Budget, in the review on invoicing against completed deliverables.  Risk identification and management, from the vendor and City sides  Review proposed Changed Orders  City Staff resource availability  Liaise with vendors on behalf of the City when there is risk to the project goals, deliverables and milestones. Deliverable O.1.7: Ongoing Project Management Oversight Task O.1.8 Monthly Management Status Presentations This task will entail producing an executive presentation on the status of the implementation project(s) including Scope, schedule and costs. If the application implementation turns out to be carried out by multiple vendors ThirdWave will collect vendor project schedules to produce a consolidated master schedule throughout the duration of the implementation phase. The monthly management presentation will identify ongoing progress and potential risks. Deliverable O.1.8: Monthly Management Status Presentations Task O.1.9 Ongoing Management Meetings & Presentations This task will entail participating in project meetings, ad hoc management meetings and/or conference calls, impromptu management/executive presentations, as required. Deliverable O.1.0: Project Meetings & Presentations Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 20 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.4 Project Schedule ThirdWave produced a MS Project Schedule for all aspects of the project. As described in Section 5.1, the proposed project will be executed as one consolidated project during requirements definition and broken into one or more RFPs, as appropriate. managed in one master project schedule. (See Figure 5.3.1: Preliminary Project Schedule, on the next page.) Since the RFP did not specify a preference, or prioritization, for the execution of the applications, ThirdWave used the order of modules shown in the RFP. Moreover, since the diversity of applications may or may or may not be provided by one ERP vendor, or the City may want the flexibility to break up the procurement into separate RFPs. ThirdWave will collaborate with the City in deciding which approach will work best. ThirdWave uses formal MS Project schedules to manage all of our projects; we will do the same on City’s needs assessment project. The preliminary MS Project Schedule on the following pages reflects the start and completion dates. Wherever possible, tasks have been planned in parallel to compress the project schedule in an effort to shorten the project duration as much as possible. The Project Schedule illustrates an itemized Work Breakdown Structure of all project phases, tasks and associated subtasks and corresponding deliverables. The Project Schedule also indicates instances where the City will be provided deliverables for review/comment, denoted with the prefix “City”, indicating a City task. The time allotted for the turnaround of draft deliverables is shown in red on the Project Schedule. The MS Project Schedule(s) will be used as a point of reference against which the progress of the project(s) will be tracked and managed. Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 21 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Figure 2.4.1: Preliminary Project Schedule Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 22 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Figure 2.4.1: Preliminary Project Schedule Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 23 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.5 Similar Projects & Customer References ThirdWave is a subject matter expert in the entire life cycle encompassing all of the services identified in the City’s RFP. Over the last 32 years we have executed projects that have included providing some or all of the following services to almost 300 (three-hundred) government clients:  Requirements Definition  Technical Specifications  Technical research and budget estimates  RFP Development  Procurement Assistance  Contract Negotiation  Project Management Office during the implementation phase. ThirdWave’s track record of success with our clients is attributed to the following:  Employing a comprehensive methodology addressing enterprise needs to support core business functions, processes, and extraordinary customer service.  Using a participatory process to engage stakeholders, foster buy-in, and build consensus.  Identifying strategic business technologies that effectively support business process improvement, foster customer access, transparency, and enhanced service delivery, while improving internal operating efficiencies. The following is a list of similar projects and references for the City’s consideration. 2.5.1 City of Berkeley: ERP Requirements, 6-RFP Development, Procurement, Contract Negotiations Savita Chaudhary Director Dept. of Infor. Technology City of Berkeley Martin Luther King, Jr. Civic Ctr. 2180 Milvia Street, 4th Floor Berkeley, CA 94704 510.981.6525 SChaudhary@cityofberkeley.info Mar. 2018 – Mar. 2019 ThirdWave was retained to develop Enterprise Applications Requirements, RFP Development, Solicitation Management, and Contract Negotiations for six ERP applications. To our Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 24 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F knowledge, this is the first time in our 31-year experience that we’ve heard of a City attempting this. (This project was a follow-up to the City’s ERP financials module implementation.) The following RFPs were developed as part of this project: 1. Computerized Maintenance Management System / Enterprise Asset Management System 2. Fleet Management System 3. Zero Waste Management System 4. Real Estate & Leased Property Management System 5. Performance & Learning Management System 6. Business Licenses System This project is currently in the final phase of Contract Negotiation. ThirdWave has enjoyed a long- term relationship with the City of Berkeley, CA primarily because of our proven ability to deliver results as a trusted partner. As of this writing we are on out eighth contract in 3 years. 2.5.2 Helix Water District ERP Requirements, RFP Development, Procurement & PMO Quince Lunde Michael Herrera Enterprise Applications Manager Enterprise Applications ERP Project Manager Manager 7811 University Ave. 7811 University Ave. La Mesa, CA 91942 La Mesa, CA 91942 619.667.6205 619.667.6205 Quince.Lunde@helixwater.org Mike.Herrera@helixwater.org ThirdWave has enjoyed a long-term relationship with Helix Water District (near San Diego) primarily as a result of our proven ability to deliver results as a trusted partner. Here are the ERP projects we have carried out over the last 5 years: March - October 2013 ERP Customer Utility Billing Requirements, RFP, Vendor Selection, Contract Negotiation May - October 2013 ECMS Requirements, RFP, Vendor Selection, Contract Negotiation August 2014 -Nov 2015 PMO Services for Kayenta ERP Customer Billing System, OnBase ECMS, XC2 Systems Implementation ($2,600,000 project) July 2016 – July 2017 ERP Financials Requirements, RFP, Vendor Selection, Contract Negotiation ($5,000,000 project) June 2017 – June 2018 PMO Services for ERP Financial Implementation, as needed This is what the executive sponsor had to say about our performance. May 14, 2014 In April 2013, the Helix Water District retained ThirdWave Corporation for consulting services to support the procurement of the District’s Enterprise Resource Planning (ERP) and Enterprise Content Management (ECM) systems. The scope of work for consulting services included: business needs assessment, development of business process documentation and technical requirements, enterprise software RFP development and detailed specifications, evaluation and selection of ERP solutions, and contract negotiations and review. Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 25 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F While the District was impressed with ThirdWave’s breadth of experience related to business needs assessment and business process documentation, we selected ThirdWave due to their interpersonal skills including effective communication. We knew that we would be relying on this consultant to help the District move forward with a very risky and challenging project and we knew we wanted a firm that had the skills and abilities to help mitigate risk and ensure a successful implementation. We found that firm in ThirdWave. The team has a strong track record, is very experienced, has strong communication and organization skills and the ability to effectively implement the District’s scope of work. ThirdWave’s project management skills and value added have allowed the District’s project to stay on track. ThirdWave’s experience and their Rapid Workflow methodology made it easy to document our business processes. We achieved huge results faster than we could have imagined. Roy Hernandez is a skilled facilitator that understands how to effectively and respectfully ask questions to gain the important details to chart out our business processes. The team enjoyed working with Mr. Hernandez because he is personable and quickly understands the unique aspects of the District’s business. Mr. Hernandez knows how to use his Rapid Workflow methodology to gather key information about our business processes which helped in developing a clear statement of work for the RFP for the ERP/ECM systems. Mr. Hernandez has a vast knowledge about government procurement processes which helped the District to develop a detailed and objective process to procure the ERP/ECM systems. ThirdWave has provided invaluable advice and guidance on the procurement of the ERP/ECM systems. They have the breadth of experience which has helped to ask the key questions during the vendor presentations. We are pleased with the results and the excellent consulting services that Third Wave has provided. We highly recommend Third Wave for ERP procurement and business needs assessment. We are fortunate to have found Third Wave with their depth of knowledge, strong communication and interpersonal skills, as well as high integrity. Lisa Stoia Finance Director Executive Sponsor, ERP project Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 26 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.5.3 City of Centennial ERP Requirements, RFP & Procurement Mitch Meier Sr. Management Analyst 13133 E. Arapahoe Rd. Centennial, CO 80112 303.754-3328 mmeier@centennialco.gov ThirdWave has enjoyed a long-term relationship with the City of Centennial, Colorado, primarily because of our proven ability to deliver results as a trusted partner. Here are the projects we have carried out over the last 5 years: September – Nov. 2013 Information Technology Strategic Plan June 2017 – Dec 2017 ERP Requirements, RFP, Vendor Selection, Contract Negotiation August 2017 Rapid Workflow Certification Training to Sr. Management Analysts This is what the City’s Project Manager had to say about our performance: January 30, 2018 In June of 2017, the City of Centennial retained ThirdWave Corporation for consulting services to support the procurement of the City's Enterprise Resource Planning (ERP) system. The scope of work included business requirements, technical requirements, business process documentation, RFP development, vendor evaluation criteria, vendor selection for demonstrations and contract review and negotiations. The City had experienced the professionalism and the value of ThirdWave's Rapid Workflow workshops in 2015 when ThirdWave supported the City in the efforts to create an IT Strategic Plan. What has impressed the City during the ERP project is the breadth of knowledge and expertise that ThirdWave has regarding ERP systems. The insights provided by ThirdWave had not only allowed the project to keep moving forward, but provided a level of comfort to all stakeholders that participated in the project. Additionally, the project would not have maintained the aggressive schedule that was laid out by the City without the project management and facilitation skills demonstrated by Roy Hernandez. As challenges came up Mr. Hernandez was true thought partner with the City, and helped develop creative ways to keep the project on track to meet the major milestones. ThirdWave had a direct impact on the support the City project manager received from the departments and executive management of the City. It was a stroke of luck to have found ThirdWave during the IT Strategic Plan project, and their knowledge, professionalism and integrity was critical to the success of Centennial's ERP project. Mitch Meier Sr. Management Analyst City Manager’s Office Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 27 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 2.5.4 City of Sacramento Digital (IT) Master Plan Maria MacGunigal Ignacio Estevez CIO IT Manager 915 I Street, 3rd Floor 915 I Street, 3rd Floor Sacramento, CA 95814 Sacramento, CA 95814 916.808.7998 916.808.7349 MMacGunigal@Cityofsacramento.org IEstevez@cityofsacramento.org Ongoing ThirdWave has enjoyed a long-term relationship with the City of Sacramento, primarily because of our proven ability to deliver results as a trusted partner. Here is a list of projects we have carried out over the last 13 years: June 2005 – Dec 2005 ECMS Strategic Plan October 2006 – Feb 2007 Website Redesign & E-Government Strategy March 2008 – June 2008 ECMS Implementation (Sub to Documentum) October 2013 – Sept 2014 Digital Strategy Plan April 2016 – April 2018 Digital Strategic Plan Refresh This is what the City’s CIO had to say about our performance and results of the project: June 2, 2014 Re: Letter of Reference ThirdWave recently completed the development of the City of Sacramento's Digital Strategy that serves as the framework for how technology services will be managed and delivered throughout City. ThirdWave was selected for this project over three other proposals due to their comprehensive project management methodology and information gathering approach, 25 years of experience in developing strategic plans, and past proven track record with other City of Sacramento projects. Included under the project were 30 business process workshops, IT focus groups, executive management interviews, IT staff skills assessment, and on-line staff survey. Working under an aggressive timeline, ThirdWave delivered the project on-time and exceeded project expectations. Among the several information gathering exercises performed by ThirdWave, their patient Rapid Workflow business process workshops were instrumental in providing a self-contained assessment of specific business challenges that addressed problems, impacts, solutions and benefits. This unique process helped identify business inefficiencies that formed the basis of the Digital Strategy recommendations and technology initiatives to address these issues. ThirdWave’s unmatched data driven process and technical experience provided a foundation for supporting the formal project recommendations and implementation plan developed from the project. In summary, I am extremely pleased with the services provided by ThirdWave. Their vast experience in developing organizational IT strategic plans came shining through in delivering an exceptional product that the City will benefit from for years to come. Roy, you and ThirdWave team are truly remarkable and have been a pleasure to work with. Thank You! Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 28 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Sincerely, Maria MacGunigal Chief Information Officer City of Sacramento 2.5.5 City of Long Beach ECMS Requirements, RFP, Procurement & Contract Negotiation Scott Otta Business Information Technology Officer 333 West Ocean Blvd. 12th Floor Long Beach, CA 90802 \ 562.570.6873 Scott.Otta@longbeach.gov April 2016 – November 2017 The project included the development of an enterprise strategy for the replacement of an existing electronic document management system for all departments in the 12-story City Hall Building. This project had a crucial schedule to follow, as all departments were to leave the existing City Hall building, which will be demolished and replaced with the construction of a new City Hall, set to be completed by May 2020. The project culminated in an RFP for an ECMS for 5,000 staff, including the back-file conversion of 65,000,000 (sixty-five million) hardcopy pages. ThirdWave was also retained to facilitate the procurement process including: pre-bid conference, issue addendum, evaluate proposals/shortlist, develop demonstration/benchmark scripts, facilitate vendor demonstrations, vendor evaluation/selection and contract negotiation. The value of the proposed two-year project estimated to cost approximately $6,700,000 (six million seven hundred thousand) over two years. Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 29 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 3.1 Cost Proposal The following provides the cost proposal and payment schedule for the proposed engagement. Upon mutual agreement on the services provided will be carried out on a Fixed-Fee Professional Services Agreement. The following provides a summary of costs, which is followed by a detailed payment and deliverables schedule. Figure 3.1.1: Cost Summary Project Phases Cost 0. Project Management 15,785 1. Technical & Functional Requirements 54,010 2. Procurement Phase 46,030 3. Contract Negotiations 4,175 Total $ 120,000 Section 3 Price Proposal Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 30 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 3.2 Detailed Payment Schedule The following figures provide a detailed breakdown of project costs, deliverables and payment schedule. Figure 3.2.1: Detailed Payment Schedule Phase Description & Deliverables Subtask Task Phase Phase 0 Project Management 15,785 Task 0.1 Project Kick-off Meeting .................................................................................. 2,280 Deliverable 0.1: Project Kick-Off Meeting Task 0.2 Ongoing Coordination ..................................................................................... 6,580 Deliverable 0.2: Weekly Coordination Conference Calls Task 0.3 Monthly Status Report ..................................................................................... 6,925 Deliverable 0.3: Monthly Status Reports (Invoiced monthly) Phase 1 Technical & Functional Requirements 54,010 Task 1.1 As-Is Rapid Workflow® Workshops ............................................................. 11,068 Task 1.1.1 Hold As-Is Workshops ........................................................................ 4,940 Deliverable 1.1.1: As-Is Business Requirements Workshops Task 1.1.2 Document Business & Service Delivery Requirements ..................... 4,875 Deliverable 1.1.2: Draft Business Process Maps Task 1.1.3 Finalize As-Is Business Process Maps .............................................. 1,253 Deliverable 1.1.3: As-Is Business Process Maps Task 1.2 To-Be Rapid Workflow® Workshops ........................................................... 20,465 Task 1.2.1 Hold To-Be Process Workshops ........................................................ 9,880 Deliverable 1.2.1: To-Be Business Workshops Task 1.2.2 Document To-Be Processes .............................................................. 8,280 Deliverable 1.2.2: Draft To-Be Maps Task 1.2.3 Final To-Be Business Process .......................................................... 2,305 Deliverable 1.2.3: To-Be Business Process Maps Task 1.3 ERP Reporting Requirements ......................................................................... 7,110 Task 1.3.1 Hold Report Requirement Workshops ............................................... 4,487 Deliverable 2.3.1: Report Requirement Workshops Task 1.3.2 Reporting Requirements ................................................................... 2,623 Deliverable 2.3.2: Report Specification Task 1.4 ERP Interface Requirements ........................................................................... 5,045 Task 1.4.1 Hold Interface Requirements Workshops .......................................... 4,175 Deliverable 2.4.1: Interface Requirements Workshops Task 1.4.2 Interface Requirements ........................................................................ 870 Deliverable 2.4.2: Interface Requirements Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 31 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Task 1.5 Data Migration Workshops .............................................................................. 3,693 Task 1.5.1 Hold Data Migration Workshops ........................................................ 2,705 Deliverable 2.5.1: Data Migration Workshops Task 1.5.2 Data Migration Requirements ............................................................... 988 Deliverable 2.5.2: Data Migration Requirements Task 1.6 Develop Implementation Plan ......................................................................... 6,630 Task 1.6.1 Draft Implementation Plan ....................................................... 4,665 Deliverable 2.6.1: Draft Implementation Plan Task 1.6.2 ERP Implementation Plan .................................................................. 1,965 Deliverable 2.6.2: ERP Implementation Plan Phase 2 Procurement Phase 46,030 Task 2.1 ERP RFP Requirements ................................................................................. 11,370 Task 2.1.1 Draft ERP RFP ................................................................................... 8,513 Deliverable 2.1.1: Draft Technical Section to RFP Task 2.1.2 ERP RFP ............................................................................................ 2,858 Deliverable 2.1.2: ERP RFP Technical Sections Task 2.2 Pre-Bid Conference ......................................................................................... 2,505 Deliverable 2.2: Attend Pre-bid Conference Task 2.3 Assist with Response to Questions & Addendums ..................................... 1,788 Deliverable 2.3: Response to Questions & Addendums Task 2.4 Vendor Proposals Evaluation ....................................................................... 12,043 Deliverable 2.3: Proposal Evaluation & Vendor Shortlisting Task 2.5 Vendor Demonstrations / Benchmarks .......................................................... 4,505 Deliverable 2.4: Vendor Demonstration Agenda & Scripts Task 2.6 Attend Vendor Demonstrations .................................................................... 10,985 Deliverable 2.5: Attend Vendor Demonstrations Task 2.7 Final Vendor & Selection ................................................................................. 2,835 Deliverable 2.7: Vendor Selection Input Phase 3.0 Contract Negotiation 4,175 Task 3.1 Assist with Contract Negotiation .................................................................... 4,175 Deliverable 6: Contract Negotiation Total Cost $ 120,000 Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 32 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 4.1 Sample of Similar Project Artifacts The following pages provide samples from other similar projects. 4.1 Helix Water District. La Mesa CA ERP Requirements Definition, RFP, Procurement, Contact Negotiation & Implementation Project Management Office Figure 4.1.1: Helix Water ERP RFP Table of Contents This sample is the table of contents for an ERP RFP where we developed requirements, wrote the RFP, facilitated the procurement process and assisted with contract negotiation. (The entire RFP document is not included as it is a 200-page document.) Section 4 Similar Project Artifacts Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 33 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Figure 4.1.1: Helix Water ERP RFP Table of Contents Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 34 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 35 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 36 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 37 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 38 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 © 2019 39 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F 4.2 City of Centennial, CO ERP Requirements Definition, RFP, Procurement, Contact Negotiation & Implementation Project Management Office This example Includes a series of Rapid Workflow® artifacts. These are similar to those previously produced for the City of Costa Mesa, with one notable exception: As- Is and To-Be workshops where the data is going to be used to inform an RFP are substantially more detailed. This project included developing an ERP RFP for the City, including requirements, RFP, facilitating the procurement process, and assisting with contract negotiation. Figure 4.2.1: Session 14. Fixed Asset Public Works As-Is Process Map This artifact represents a typical a Visio as-is process map produced after the workshops, after end user comments have been incorporated. Figure 4.2.2: Session 14. Fixed Asset Public Works To-Be Business Process This map is produced in the To-Be workshop with process owners. New software, electronic documents and activities are shown in blue. To-Be workshops also elaborate on the solution set developed in the As-Is workshop in a much more detailed manner, including the following:  Software Features & Functions  Reports  Interfaces  Data Types  System requirements  Performance Requirements (if applicable)  Hardware Requirements (if applicable)  Assumptions Figure 4.2.3: Session 3: Reports To-Be Model This artifact represents a workshop held to identify reporting requirements for an application. Figure 4.2.4: Session 5: Interface Enterprise To-Be Model This artifact represents a workshop held to identify system interface requirements for an application. This also includes a narrative on applications the new software will need to interface with, and the data that will need to be pulled or pushed. Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 40 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Figure 4.2.1: 14. Fixed Asset Public Works As-Is Process Map Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 41 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 42 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Figure 4.2.1: 14. Fixed Asset Public Works To-Be Business Process Figure 3.4.5: Session 14: Fixed Asset Public Works To-Be Business Process – Cleaned Up Model Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 43 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 44 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 45 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Figure 4.2.2: Session 3: Reports To-Be Model Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 46 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F Figure 4.2.3: Session 5: Interface Enterprise To-Be Model Enterprise Resource Planning Procurement City of Costa Mesa August 26, 2019 Proposal © 2019 47 ThirdWave 11400 W. Olympic Blvd. Suite 200 Los Angeles CA 90064 310.914.0186 V 310.312.9513 F EXHIBIT B CITY COUNCIL POLICY 100-5 CITY OF COSTA MESA, CALIFORNIA COUNCIL POLICY BACKGROUND Under the Federal Drug-Free Workplace Act of 1988, passed as part of omnibus drug legislation enacted November 18, 1988, contractors and grantees of Federal funds must certify that they will provide drug-free workplaces. At the present time, the City of Costa Mesa, as a sub-grantee of Federal funds under a variety of programs, is required to abide by this Act. The City Council has expressed its support of the national effort to eradicate drug abuse through the creation of a Substance Abuse Committee, institution of a City-wide D.A.R.E. program in all local schools and other activities in support of a drug-free community. This policy is intended to extend that effort to contractors and grantees of the City of Costa Mesa in the elimination of dangerous drugs in the workplace. PURPOSE It is the purpose of this Policy to: 1. Clearly state the City of Costa Mesa’s commitment to a drug-free society. 2. Set forth guidelines to ensure that public, private, and nonprofit organizations receiving funds from the City of Costa Mesa share the commitment to a drug -free workplace. POLICY The City Manager, under direction by the City Council, shall take the necessary steps to see that the following provisions are included in all contracts and agreements entered into by the City of Costa Mesa involving the disbursement of funds. 1. Contractor or Sub-grantee hereby certifies that it will provide a drug-free workplace by: A. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in Contractor’s and/or sub-grantee’s workplace, specifically the job site or location included in this contract, and specifying the actions that will be taken against the employees for violation of such prohibition; B. Establishing a Drug-Free Awareness Program to inform employees about: SUBJECT DRUG-FREE WORKPLACE POLICY NUMBER 100-5 EFFECTIVE DATE 8-8-89 PAGE 1 of 3 SUBJECT DRUG-FREE WORKPLACE POLICY NUMBER 100-5 EFFECTIVE DATE 8-8-89 PAGE 2 of 3 1. The dangers of drug abuse in the workplace; 2. Contractor’s and/or sub-grantee’s policy of maintaining a drug-free workplace; 3. Any available drug counseling, rehabilitation and employee assistance programs; and 4. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; C. Making it a requirement that each employee to be engaged in the performance of the contract be given a copy of the statement required by subparagraph A; D. Notifying the employee in the statement required by subparagraph 1 A that, as a condition of employment under the contract, the employee will: 1. Abide by the terms of the statement; and 2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) days after such conviction; E. Notifying the City of Costa Mesa within ten (10) days after receiving notice under subparagraph 1 D 2 from an employee or otherwise receiving the actual notice of such conviction; F. Taking one of the following actions within thirty (30) days of receiving notice under subparagraph 1 D 2 with respect to an employee who is so convicted: 1. Taking appropriate personnel action against such an employee, up to and including termination; or 2. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health agency, law enforcement, or other appropriate agency; SUBJECT DRUG-FREE WORKPLACE POLICY NUMBER 100-5 EFFECTIVE DATE 8-8-89 PAGE 3 of 3 G. Making a good faith effort to maintain a drug -free workplace through implementation of subparagraphs 1 A through 1 F, inclusive. 2. Contractor and/or sub-grantee shall be deemed to be in violation of this Policy if the City of Costa Mesa determines that: a. Contractor and/or sub-grantee has made a false certification under paragraph 1 above; b. Contractor and/or sub-grantee has violated the certification by failing to carry out the requirements of subparagraphs 1 A through 1 G above; c. Such number of employees of Contractor and/or sub-grantee have been convicted of violations of criminal drug statutes for violations occurring in the workplace as to indicate that the contractor and/or sub-grantee has failed to make a good faith effort to provide a drug-free workplace. 3. Should any contractor and/or sub-grantee be deemed to be in violation of this Policy pursuant to the provisions of 2 A, B, and C, a suspension, termination or debarment proceeding subject to applicable Federal, State, and local laws shall be conducted. Upon issuance of any final decision under this section requiring debarment of a contractor and/or sub-grantee, the contractor and/or sub-grantee shall be ineligible for award of any contract, agreement or grant from the City of Costa Mesa for a period specified in the decision, not to exceed five (5) years. Upon issuance of any final decision recommending against debarment of the contractor and/or sub-grantee, the contractor and/or sub-grantee shall be eligible for compensation as provided by law.