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Contract - BHI Management Consulting - 2014-06-11 AGREEMENT FOR CONSULTANT SERVICES This Agreement ("AGREEMENT") is made and effective as of June 11, 2014, between the Costa Mesa Sanitary District, a sanitary district ("DISTRICT"), and BHI Management Consulting, a sole proprietorship ("CONSULTANT"). In consideration of, the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This AGREEMENT shall commence on June 11, 2014, and shall remain and continue in effect until tasks described herein are completed, unless sooner terminated pursuant to the provisions of this AGREEMENT. 2. SERVICES CONSULTANT shall perform the management team building and coaching services described in the attached proposal (Exhibit "A"). 3. PERFORMANCE CONSULTANT shall perform all SERVICES under this AGREEMENT in a skillful and competent manner, consistent with the standards generally recognized as being employed by consultants in the same discipline in the State of California and consistent with all applicable laws. 4. COMPENSATION Compensation for the SERVICES shall be based on the actual amount of time spent in adequately performing the SERVICES and shall be billed at the hourly rate(s) of $190.00 However, unless expressly agreed in a written change order in advance by DISTRICT, the cost to DISTRICT for the SERVICES shall not exceed Nine Thousand Five Hundred Dollars ($9,500). The written change order requirement cannot be waived. Failure to submit a written change order and receive written approval by the DISTRICT prior to performing extra work shall constitute a waiver of a claim for additional time or compensation. 5. TIME FOR PERFORMANCE Invoices shall be submitted to DISTRICT monthly as performance of the SERVICES progresses. DISTRICT shall review and pay the approved charges on such invoices in a timely manner. SERVICES shall begin immediately and be completed by. October 31, 2014, unless extended by DISTRICT in writing. 1 PSA 30U 1210 6. INSURANCE CONSULTANT shall, at its expense, procure and maintain for the duration of this AGREEMENT insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of this AGREEMENT by the CONSULTANT, its agents, representatives, employees, or subcontractors. CONSULTANT shall also require all of its subcontractors to procure and maintain the same insurance for the duration of this AGREEMENT. If CONSULTANT is an employer or otherwise hires one (1) or more employees during the term of this PROJECT, CONSULTANT shall procure and maintain workers' compensation coverage for such employees which meets all requirements of state law (Labor Code § 1861). At a minimum, CONSULTANT is required to submit proof of insurance in accordance with the following standards: Minimum Scope of Insurance: Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001): (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance: CONSULTANT shall maintain limits of no less than: (A)General Liability. One Million Dollars ($1,000,000.00) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this AGREEMENT/location or the general aggregate limit shall be twice the required occurrence limit. (B)Automobile Liability. One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage. Insurance Endorsements: The insurance policies shall contain the following provisions, and a separate endorsement stating to add the following provisions to the insurance policies shall be submitted and approved by DISTRICT: (A)General Liability. The general liability policy shall be endorsed to state that: (1) DISTRICT, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the work or operations performed by or on behalf of the CONSULTANT, including materials, parts, or equipment furnished in connection with such work; and (2) the insurance coverage shall be primary insurance as respects DISTRICT, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the CONSULTANT's scheduled underlying coverage. Any insurance or self-insurance maintained by DISTRICT, its directors, officials, officers, employees, agents, and 2 PSA 30U 12 10 volunteers shall be excess of the CONSULTANT's insurance and shall not be called upon to contribute with it in any way. (B)All Coverage. Each insurance policy required by this AGREEMENT shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced, or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to DISTRICT, and (B) any failure to comply with reporting or other provisions of the policies, including breaches or warranties, shall not affect coverage provided to DISTRICT, its directors, official, officers, employees, agents, and volunteers. Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A-:VIII, licensed to do business in California, and satisfactory to DISTRICT. All insurance documents must be submitted and approved by the District's Risk Manager prior to execution of any AGREEMENT with DISTRICT. 7. INDEMNIFICATION (a) Indemnification for Professional Liability. When the law establishes a professional standard of care for CONSULTANT's services, to the fullest extent permitted by law, CONSULTANT shall indemnify, protect, defend, and hold harmless DISTRICT and any and all of its officials, employees, and agents from and against any and all losses, liabilities, damages, costs, and expenses, including attorney's fees and costs to the extent the same arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, agents, employees, or subconsultants (or any entity or individual that CONSULTANT shall bear the legal liability thereof) in the performance of professional services under this AGREEMENT. (b) Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the fullest extent permitted by law, CONSULTANT shall indemnify, defend, and hold harmless DISTRICT and any and all of its employees, officials, and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, or costs of any kind, whether actual, alleged, or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees) where the same arise out of, pertain to, relate to, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this AGREEMENT by CONSULTANT or by any individual or entity for which CONSULTANT is legally liable, including, but not limited to, officers, agents, employees, or subconsultants of CONSULTANT. 8. TERMINATION DISTRICT may terminate this AGREEMENT at any time with or without cause. If DISTRICT terminates this AGREEMENT without cause before PROJECT completion, CONSULTANT shall be entitled to be paid for SERVICES adequately completed prior to 3 PSA 30U 12 10 the notification of termination. CONSULTANT may terminate this AGREEMENT for. cause only. 9. MISCELLANEOUS This AGREEMENT shall be interpreted according to the laws of the State of California and any action arising from this AGREEMENT shall be brought in the superior or federal district court with jurisdiction over DISTRICT. This AGREEMENT and the attachments hereto shall contain the entire agreement between the parties. This AGREEMENT cannot be modified except in a writing signed by both parties. In the event of inconsistency between this AGREEMENT and any attachment hereto, this AGREEMENT shall control in all respects. DISTRICT shall own all work product prepared in the course of providing the SERVICES under this AGREEMENT. In the event of termination of this AGREEMENT, CONSULTANT shall immediately turn all work product over to DISTRICT. If specialized software or computer hardware is required to view or transmit said work product, CONSULTANT shall make that software and hardware available to the DISTRICT at no cost during normal business hours. This AGREEMENT cannot be assigned without the prior written consent of the DISTRICT. CONSULTANT is and shall at all times remain as to DISTRICT an independent contractor. No employee benefits shall be available to CONSULTANT in connection with the performance of this AGREEMENT. Except for the fees paid to. CONSULTANT as provided in this AGREEMENT, DISTRICT shall not pay salaries, wages, or other compensation to CONSULTANT for performing any services hereunder for DISTRICT. DISTRICT shall not be liable for compensation or indemnification to CONSULTANT for injury or sickness arising out of performing any services hereunder. All information gained by CONSULTANT in the performance of this AGREEMENT shall be considered confidential and shall not be released by CONSULTANT without DISTRICT's prior written authorization. CONSULTANT shall, not, without written authorization from the General Manager or unless requested by the District Counsel, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this AGREEMENT. Response to a subpoena or court order shall not be considered "voluntary" provided CONSULTANT gives DISTRICT notice of such court order or subpoena. CONSULTANT warrants that the individual who has signed this AGREEMENT has the legal power, right, and authority to make this AGREEMENT and bind the CONSULTANT hereto. If you agree with the terms of this AGREEMENT, indicate by signing and dating two original agreements where indicated below and return both to the undersigned. 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'. •x.,i; . ..� . _.�< ...t. ....�}',.,..?:•.:,',,:::;-.:''':,:'''-'� ;,;,,,t,„1,0?:. • Exhibit A BHI MANAGEMENT CONSULTING "Organizational Efficiency for Public Agencies" Mr. Scott Carroll June 5, 2014 Costa Mesa Sanitary District 628 West 19th St. Costa Mesa, CA 92627 Subject: Proposal to provide services related to management team building and coaching Dear Mr. Carroll, This proposal outlines the approach for BHI Management Consulting to work with the District management team through teambuilding and coaching services with the intention of improving their working together as a team and recognizing professional expectations. The Consultant assigned for this work will be Brent Ives, Principal of BHI Management Consulting Approach—The work of teambuilding and management team-member coaching will take place in the following fashion and months in 2014: June—Team Building session prep and DISC assessments July—Team Building session#1 August—Individualized follow-up on Session#1 individual and development of individualized outside training program September—Teambuilding session#2 or follow-up session as needed October—Workforce survey The District's management team will include the following positions: 1. General Manager 2. Administrative Services Manager 3. Finance Manager 4. District Clerk 5. Management Analyst 2459 Neptune Ct., Suite 110 1 tivww.bhiconsulting.com Tracy, CA 95304 Phone/FAX(209) 740-6779 BHI MANAGEMENT CONSULTING "Organizational Efficiency for Public Agencies" 6. Maintenance Supervisor In preparation, the Consultant will first review all relevant job descriptions for the management team. The consultant, along with assistance from the general manager, will establish performance expectations on how the management team should perform their job functions. The consultant will provide continuous dialogue about key behaviors and characteristics that each manager should demonstrate in the work environment based on their respective job title and functions. Expectations will be clear, succinct and associated with performing outlined tasks and job functions. Performance goals will be established for each team member that clearly describes certain actions with a measurable end result to be accomplished by a specific date. . Consultant will also administer DISC Assessment for each member on the management team who haven't already done so. This will help assess communication styles, strong and weak behavioral traits and motivations. These will be discussed in the Team building sessions. Consultant will facilitate each teambuilding session for the management team with and through the General Manager. These sessions will focus on the team recognizing required professional attributes and actions necessary at their organizational level. Each team member will be asked to commit to and account for their actions and performance surrounding these self-identified professional attributes. Individualized one-on-one follow-ups of these commitments will follow the session. Each session will also be followed with telephone or in-person de-brief with GM. These expected professional attributes will be integrated into the performance expectations in each of their job descriptions. Important follow-ups with individual managers will also take place as indicated. Finally, the Consultant will administer an employee survey based on past surveys and the initial questions asked of staff upon the start of my engagement with the District in this matter. Cost- Given the scope of work outlined above, BHI Management Consulting proposes 40 hours to accomplish the tasks above. Mr. Ives' preferred client hourly rate is $190/hr. 2459 Neptune Ct., Suite 110 2 www.bhiconsulting.com Tracy, CA 95304 Phone/FAX(209) 740-6779 BHI MANAGEMENT CONSULTING "Organizational Efficiency for Public Agencies" • (25%reduced fee rate from my standard rate). Total effort costs are $7600. Additionally, it is anticipated that as many as 4 trips to the District may be needed to accomplish the work. In general, the Consultant will visit the District each month until the work is complete. The estimated cost per trip is $475. In every case, the Consultant will attempt to share the costs of trips into the District area with other clients. I hope that this information adequately presents the scope of work and process necessary to fulfill your requirements to assist the District with this effort. Please feel free to call or email me with any questions or need for clarification. Your signature below and/or a purchase order or other formal notice to proceed will allow the project to begin. Sincerely, <signature> Brent H. Ives, Principal BHI Management Consulting Scott Carroll, General Manager Costa Mesa Sanitary District 2459 Neptune Ct., Suite 110 3 www.bhiconsulting.com Tracy, CA 95304 Phone/FAX(209) 740-6779