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Contract - Mejorando Group - 2013-01-07 RECEIVED • AGREEMENT FOR CONSULTANT SERVICES DEC 3 1 2012 KNOWLEDGE TRANSFER PROGRAM CusIAIVItsASAthJARYDISIIlCJ The Mejorando Group This Agreement ("AGREEMENT") is made and effective as of , between the Costa Mesa Sanitary District, a sanitary district ("DISTRICT"), nd Patrick Ibarra dba The Mejorando Group, a sole proprietor ("CONSULTANT"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This AGREEMENT shall commence on Few .26 , QO■ , 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 analyze, capture and report on explicit and tacit knowledge of key positions/employees described below ("SERVICES") to DISTRICT for DISTRICT's Knowledge Transfer Program ("PROJECT"). The SERVICES to be provided are more particularly described in the Scope of Services attached hereto as Exhibit "A" and incorporated herein by reference. 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. CONSULTANT shall provide DISTRICT its work product in "turnkey" form. DISTRICT reserves the right to perform reasonable testing of CONSULTANT's work product before accepting the same. CONSULTANT shall warrant that all services provided and equipment installed shall perform in a workmanlike manner and be fit for its particular purpose. 4. COMPENSATION Compensation for the SERVICES shall be based on the actual amount of time spent in adequately performing the SERVICES in the amount of seventeen thousand dollars ($17,000) plus reimbursement of reasonable and customary travel related expenses including up to three on site visits. The District identifies the following are reasonable reimbursable items: airfare (economy/coach), airport parking, car rental (up to standard size), lodging (up to $150 per night) and meals. 1 PSA 30U 12 10 The Mejorando Group However, unless expressly agreed in a written change order in advance by DISTRICT, the cost to DISTRICT for the SERVICES shall not exceed eighteen thousand eight hundred dollars ($18,800). 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. 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 on the PROJECT shall begin immediately and be completed by April 30, 2013, unless extended by DISTRICT in writing. 5. PREVAILING WAGES CONSULTANT understands that this job, if over One Thousand Dollars ($1,000.00) in value and not exempt, requires compliance with the prevailing wage law. (Labor Code §§ 1720 et seq.) As such, DISTRICT will ascertain the prevailing wages to be paid on this job from the Director of Industrial Relations. Said amounts are listed at http://www.dir.ca.gov/dlsr/pwd/index.htm. CONSULTANT agrees to pay prevailing wages and maintain prevailing wage records regarding those payments. CONSULTANT is also required to comply with the apprentice requirements. CONSULTANT shall defend, indemnify, and hold the DISTRICT, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. CONSULTANT recognizes that state law makes eight (8) hours a day's work, and any worker working in excess of that time must be paid overtime. (Labor Code § 1813.) 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). CONSULTANT shall also provide errors and omissions professional liability insurance appropriate to its profession in an amount, with conditions, and for a term acceptable to the DISTRICT. At a minimum, CONSULTANT is required to submit proof of insurance in accordance with the following standards: 2 PSA 30U 12 10 The Mejorando Group 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. (C)Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the Labor Code of the State of California. Employer's Liability limits of One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. 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 volunteers shall be excess of the CONSULTANT's insurance and shall not be called upon to contribute with it in any way. (B)Workers' Compensation and Employer's Liability Coverage. The insurer shall agree to waive all rights of subrogation against DISTRICT, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the CONSULTANT. (C)AII Coverage. Each insurance policy required by this AGREEMENT shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced, or 3 PSA 30U 12 10 The Mejorando Group 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 the notification of termination. CONSULTANT may terminate this AGREEMENT for cause only. 4 PSA 30U 12 10 The Mejorando Group 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. Once the documents are fully executed, one original will be returned to you for your records. 5 PSA 30U 12 10 The Mejorando Group DISTRICT CONSULTANT Approved by: Reviewed and Accepted by: General Manager Signature P -f-( k. 5.6a,(✓6, Approved as to Form: Name (tine( -lh e ��j oki/m t. Gj rou1 Harper & Burns LLP Title District Counsel 2C/12- Date 6 PSA 30U 12 10 The Mejorando Group E IBIT A Costa Mesa Sanitary District Knowledge Transfer Proposal Knowledge Transfer is a segment of an overall approach to Succession Planning, which is an on-going process of systematically identifying, assessing and developing talent to ensure the leadership and management continuity for all key positions in your organization. It ensures that replacements have been prepared to fill key vacancies on short notice, that individuals have the development capacity to assume greater responsibility, and that individuals are prepared for exercising increased technical proficiency in their work. KNOWLE TRANSFER PROGRAM � .a^'t�,se» '5;�., Generally speaking, the term "knowledge management" (KM) represents a broad concept, and is thought of as a system for finding, understanding, and using knowledge to achieve organizational objectives. The three activities of finding, storing and retrieving are the "organizational memory of the District. It is more than simply moving or transferring files and data from one employee (or department) to another. KM allows others to build upon a person's professional experience, within the context of the organization, in a way that strengthens not only the employee, but the organization as a whole. There are at least two types of knowledge — Explicit and Tacit. Explicit can be described as data and is often found in software systems or documents. On the other hand, tacit knowledge is includes cognitive skills such as beliefs, images, intuition and mental models as well as technical skills such as craft and know-how. Tactic knowledge is knowledge that people carry in their minds and is, therefore, difficult to access. Often, people are not aware of the knowledge they possess or how it can be valuable to others. Tacit knowledge is considered more valuable because it provides context for people, places, ideas, and experiences. Effective transfer of tacit knowledge generally requires extensive personal contact and trust. Consequently, the focus of our approach is to implement a process by which the tactic knowledge of key positionslemployrees is captured and available for transfer. FAR °vJECT APPROAG� �, "'.� Our approach will help the District obtain and transfer valuable information before it "walks out the door." The goal of this process is to preserve knowledge assets, enabling the District to: o Minimize the risk and cost of lost knowledge ® Increase the speed to competence of individuals assuming new responsibilities. o Create knowledge and skill repositories that support creative job and learning design. ® Lower training costs through repurposing assets across various employee groups. Knowledge is vastly different than data due to its subjective and contextual nature and essentially can be defined as "how things get done" inside an organization. Knowledge is obtained through a variety of experiences, typically over a period of time, and is the :71 11 mej-Mrando group Costa Mesa Sanitary District Knowledge Transfer Proposal primary factor in exercising sound judgment and decision-making, two responsibilities often handled by executives. To capture and transfer knowledge requires a categorization system to identify the types of knowledge important to the organization. Explicit knowledge can be preserved and transferred to other employees through the creation of procedural guides, desk manuals, or libraries of related documents. Some agencies have also developed transition planning forms that retiring employees complete before they leave. Such forms identify key documents and where they are located (e.g., shared computer drive), important dates during the year given the specific duties of the position, key players inside and outside the organization, needed skills and appropriate skills training, and professional support organizations. It is more difficult to capture tacit knowledge. Approaches such as wikis, knowledge blogs, or other online archives of knowledge attempt to capture information, best practices, and stories (which are often the best way to learn). To further extract tacit knowledge, some agencies conduct in-depth and probing interviews of retiring interviews and post the videos of the interviews on their intranets. Identifying communities of knowledge across the organization or developing an "expert yellow pages" can assist newly promoted employees. Organizations can also bring back retired professionals to assist their replacements. Based on the size of the District and its most pressing needs, the "Expert Interview" approach is being recommended for consideration. The goal of this endeavor is not to manage, or transfer, all knowledge, but to manage the knowledge that is most important to the District. In other words, what is referred to as Critical Knowledge. Expert interviews are a way of making tacit knowledge more explicit. A person can describe not only what was done but why, providing context and explaining the judgment behind the action. Interviews are often easier for the experts than having them write down all the details and nuances. The focus is to determine skills and knowledge make the person effective in his or her position. What are the unique roles of this key player? What has made him or her successful over the years? Essentially, it becomes the "highlight reel" of the person's job. PRQJEGT WORK PLAN Steps involved in the Expert Interviews include: 1. Meet with General Manager to review the overall work plan, the list of positions identified, the actual interview tool and other transfer tools to be used, along with the form of the final reports produced for each position in the program. 2. Meet individually with incumbents/Participants occupying the positions selected. Each meeting will be sixty to ninety minutes in length. These interviews are intended to obtain substantive information about the key roles each plays in executing their respective responsibilities. Not intended to serve as an exhaustive inventory of all duties and tasks, the focus is primarily on extracting critical District related tacit knowledge as it relates to key internal processes and practices. For example: 12 mejarando group Costa Mesa Sanitary District Knowledge Transfer Proposal • What are the primary responsibilities of the position? O What tasks do people in this position perform? O How do they complete these tasks? What steps and actions do they take? What tools, systems, or processes do they use? • What does one need to know to be able to complete these tasks? ® What education, experience, or training prepared them to complete the tasks? ® Identify storage location of key documents and plans. • Crucial dates throughout the year(i.e. budget, maintenance activities, etc.). O Key partnerships with external sources such as community groups, vendors, and suppliers. t Key relationships with other District staff: ® Training, developing and networking opportunities relevant to the position. • Lessons Learned about position/job-essential responsibilities. The intent is to document not only how things are done, but why they are done. This helps knowledge recipients more fully understand the process and its importance. Up to fourteen employees are included in the fee for services. 3. As the General Manager has a unique and highly nuanced role within agency operations, he will be videotaped responding to a range of questions. The subsequent video will provide his successor a tremendous amount of practical information on the District way of doing business. 4. Each of the incumbents involved in the Program will complete a Position Description Questionnaire (PDQ)/Job Analysis Questionnaire that will provide a personal written summary of their tasks and responsibilities. (optional) 5. Job description for each of the positions involved in the Program will be obtained and reviewed. 6. Information obtained through the interviews, PDQ and job description will be analyzed, summarized and documented in a Position Summary written report. A Summary will be provided for each of the positions in the Program. The draft will be reviewed by the incumbent and subsequently finalized. The Position Summary is designed to augment the respective job description in such a way that illuminates the key aspects necessary to be effective. Job descriptions may identify estimated percentage of time spent on "typical class essential duties." However, percentages or frequency of time spent does not always constitute the level of importance that specific duty is to fulfilling the job. Consequently, for the effective transfer of knowledge, successors to the jobs currently held by Program participants, would receive among other materials, both the Position Summary and job description. Furthermore, the Position Summary provides potential content for selection strategies including interviews and assessment centers of potential successors. 13 mejnrando group Costa Mesa Sanitary District Knowledge Transfer Proposal Important to remember is that the focus is to capture and record "high value" knowledge. While the information captured in the Position Summary may seem ordinary to the incumbents, they are not the intended recipient for this information, their successor is. Most likely the successor will not be versed in the Costa Mesa Sanitary District way of doing business and consequently, the Position Summary will enable them to determine the context in which they are to perform their responsibilities. 7. In addition to the Position Summary, a range of transfer tools are available. The intent is to make the knowledge easily accessible and usable. Some knowledge can be disseminated through a simple checklist, while other knowledge may require that a training course be designed. Types of transfer tools include: o Training program materials o Job aids (worksheets, tip sheets, templates) ® Coaching guides ® Procedure documentation ® Podcasts The Mejorando Group will provide in addition to the Position Summary for each of the positions in the Program, a series of targeted recommendations on which transfer tools are most appropriate per position. tfmicirt,„ 14 w.:ojorando group -00.1 CITY OF COSTA MESA C a TREASURY MANAGEMENT DIVISION . . '.z Fi'.1,i ,' P.O.BOX 1200 • CALIFORNIA 92628-1200 v _ of?` PHONE: (714)754.5235 • FAX (714)754-5149 • TDD: (714)754-5244 4�.A ORQ 96 BUSINESS LICENSE TAX CERTIFICATE 01-14-2013 THE MEJORANDO GROUP 7409 NORTH 84TH AVE GLENDALE, AZ 85305 PLEASE NOTE THE FOLLOWING Attached below is your current Business License Tax Certificate. Every business is responsible for annual renewal of this license tax certificate. Please Contact the Business License Division at (714) 754-5235 prior to making any of the following changes: 1. Name change 2. Change of address within the City (requires zoning approval prior to commencing) 3. Ownership or representation change 4. Business activity change DETACH AND POST THIS CERTIFICATE IN PUBLIC VIEW CITY OF COSTAMESA BUSINESS LICENSE NO T TRANSFERABLE ` THIS BUSINESS LICENSE TAX CERTIFICATE DOES NOT GUARANTEE COMRLIANCE;WITH STATE OR FEDERAL LICENSING REQUIREMENTS. Issuance of this certificate indicates that the person, firm, or corporation Warned below has paid the applicable business tax, pursuant to Title 9, Chapter 1, of the Costa Mesa MunicipaltCode for£the business enterprise;;,trade, calling, profession, exhibition, or occupation described below. Issuance of thls'Certfficate;is not'�an'-endorsement nor certification of compliance with other ordinances or laws. Business License Tax Certificate No.;;. 13L040509 Business Name: THE MEJORAND66ROUP Business Location: ., Principal's Name: IBARRA, PATRICK OWNFRZ • Standard Industrial Class Code: 8742^Mgmnt:'Consulting Sves z Sales Tax No Exp)ratlon Date 12/31/2013 TO BE POSTED IN A PLACE VISIBLE TO THE PUBLIC-THIS'IS YOUR CURRENT TAX CERTIFICATE