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Hay Insight Group Agreement PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND HAY INSIGHT, A DIVISION OF THE HAY GROUP. This Professional Services Agreement ("Agreement") is entered into this \ ~ "1'1 day of o C f1J f) e R.. , 2004, between the City of Miami Beach, Florida, a municipal corporation organized and existing under the laws of the State of Florida ("City"), having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida, 33139, and HAY INSIGHT, a division of the Hay Group (Consultant), whose address is Harborside Financial Center, 2300 Plaza Five, Suite 2310, Jersey City, New Jersey 07311-4013. SECTION 1 DEFINITIONS Agreement: This Agreement between the City and Consultant. City Manager: The Chief Administrative Officer of the City. Consultant: For the purposes of this Agreement, Consultant shall be deemed to be an independent contractor, and not an agent or employee of the City. Services: All services, work and actions by the Consultant performed pursuant to or undertaken under this Agreement, as described in Section 2. Fee: Amount paid to the Consultant to cover the costs of the Services as more specifically described in Section 3. Risk Manager: The Risk Manager of the City, with offices at 1700 Convention Center Drive, Third Floor, Miami Beach, Florida 33139, telephone number (305) 673-7000, Ext. 6435, and fax number (305) 673- 7023. SECTION 2 SCOPE OF SERVICES 2.1 SERVICES The Scope of Services ("Services") of this Agreement shall be generally for the Consultant to provide the City with services based on Request for proposals No. 32- 03/04 for Conducting a Citizen / Public Opinion Survey (RFP) and the proposal submitted by Consultant in response thereto, dated October 18, 2004 (collectively referred to as the Proposal Documents). In the event of a conflict between the proposal Documents and this Agreement, the following order shall prevail: this Agreement; RFP No. 32-03/04; and the proposal in response thereto by Consultant, dated October 18, 2004. 1 The Consultant shall achieve the following goals and provide the following services for the City through its citizen/public opinion survey: -+ Design a survey process that determines the current level of satisfaction with the City, the services it provides to its constituents, and identifies key strengths and opportunities for improvement -+ Determine whether the priorities identified in the 5-year vision/strategy plan are indeed the 'right' ones based on feedback from constituents (including implications/recommendations to the vision/strategic plan) -+ Ensure that the survey reaches the City's ethnically diverse citizenry and obtains a representative survey sample -+ Design a sampling plan that will produce survey results with a 95% level of confidence (with a +/-5% margin of error), using the most efficient survey administration methodology (-ies) to generate the highest response rate in the most cost-effective manner -+ Use normative data to compare the City's survey results with data from comparable jurisdictions/organizations for benchmarking purposes, in order to, identify, quantify, and prioritize gaps, if any, between the City's survey responses and responses from benchmark jurisdictions -+ Provide recommendations for improving satisfaction and quality of life -+ Create a baseline that can be used to track the City's progress over time in improving satisfaction and quality of life The ultimate goal of the citizen/public opinion survey process is to positively impact constituent satisfaction, willingness to stay, and willingness to recommend the City as a place to live, visit, and do business. Summary of the Contractor Project Team The following matrix summarizes the relevant experience and expertise of the Contractor project team. Rosario Porpora 8 x x x x x x x Michele Goldberg 10 x x x x x x x Stacey Namm 5 x x x x x Jodi Simco 10 x x x x x x x Dawn Sherman 15 x x x x x x x Changes in project team members shall require prior written approval by the City. 2 Steps in the Process Step 1. Project Planning Prior to implementing any specific steps in the survey process, the Consultant shall meet with the City survey team members to discuss the project plan and collect information necessary for conducting the citizen/public opinion survey. This initial meeting would likely include a discussion of the following: -+ Objectives and desired results of the survey -+ Constituents to be included in the study (besides residents and members of the business and civic community) -+ Types of questions to include in the survey -+ Timelines for survey development, administration, data analysis and reporting (such timelines to be substantially in conformance to the timelines set forth in the anticipated Project Timeline on page 13 of this Ageement). -+ Survey positioning and communications about the survey plan -+ Potential issues related to survey sampling and administration (such as how to reach the diverse City population) -+ Plans for data analyses (e.g., types of demographic comparisons) -+ Roles/responsibilities of the City survey team members and Consultant project team members Based on this session, and on-going discussions with the project team, Consultant shall customize each of the subsequent steps of the survey process to best meet the City's requirements. Based on these discussions, Consultant shall develop a detailed project plan that outlines roles and responsibilities for each step (by Consultant and the City), as well as detailed timelines for completion, such timelines to be consistent with and substantially in conformance for anticipated Project Timeline on page 13 of this Agreement. This planning will take place and be completed within seven (7) business days following execution of this Agreement by the parties hereto. Consultant shall also conduct a briefing with the Administration (City Manager and Executive Staff) and focus group at dates to be determined. Deliverable: Consultant shall provide to the City, a project work plan with agreed upon delivery dates (clear timeline) within five (5) business days after receipt of Notice To Proceed from the City Manager or designee. Step 2. Pre-Survey Communications Before distributing the surveys, it is important to inform the public about the impending survey effort. Residents, businesses and civic organizations should be informed that being surveyed by the City of Miami Beach is key to maintaining -- and improving -- the quality of services provided by the City, as well as quality of life. The City Web site, 3 newsletters, cable channel, media, and town meetings are possible mechanisms for informing the public about why the survey is being conducted, the plan and timing for deployment, and how it will affect them. Consultant shall work with the City to determine the best methods for communicating information about the survey to its constituents. Deliverable: Consultant shall provide to the City recommendations and implementation of a communications strategy, along with draft communiques to the various constituents included in the study within five (5) business days after receipt of Notice to Proceed from the City Manager or designee. Step 3. Sampling Plan Consultant shall work with the City to design a sampling plan that will result in a sufficient number of responses to ensure statistically reliable and valid conclusions at the 95% confidence level (with a +/-5% margin of error). The total number of citizens, members of the business community and members of civic organizations to be sampled depends upon the response rate, and the number of subgroups (e.g., race/ethnic groups, regions/districts within the City, type of business/organization, etc.) as defined below. Consultant shall work with the City to determine the best database to use for selecting the sample of households for citizens and lists for businesses/civic organizations. Consultant shall not solely rely on a database of phone numbers (e.g., phone book) for selecting a sample because a large number of households may not have a phone, have unlisted numbers or, in this age of cellular phones, may no longer have landline telephone service. Consultant shall also develop a sampling plan to address issues related to year-round versus seasonal residents. Deliverable: Consultant shall provide within timeframes defined in anticipated Project Timeline on page 13 of this Agreement, a sampling plan that will provide a 95% confidence interval with an error rate of +/-5%. For the citizen survey, Consultant anticipates a sample of about 4,000 - 5,000 citizens in order to receive approximately 1,000 completed responses. This response rate shall provide 95% confidence at +/-4% for the overall City level and approximately +/-7% for each of the five geographical segments (North, Middle and South Beach, South Pointe and Condo Canyon). Consultant shall conduct additional samples as necessary to achieve the required confidence levels. For the business survey, Consultant assumes about 3,000 - 3,500 businesses in the City of Miami Beach. Consultant anticipates a sample of about 1,500 businesses in order to receive approximately 500 completed responses. This response rate shall provide 95% confidence at +/-4% for the overall City level and approximately +/-6% for the two major regions (North/Mid and South). ReliabilityNalidity at the business type level (i.e. professional, hotels, etc.) will be lower (range would be somewhere between +/-7 to 10%). Consultant shall conduct additional samples as necessary to achieve the required confidence levels. 4 Step 4. Survey Development Consultant shall work with the City to construct custom-designed survey instruments tailored to the specific constituents and needs of the City. However, this survey shall be standardized enough to allow for normative comparisons to other local governments that have used similar questions to assess levels of citizen satisfaction. The recommended steps for designing a draft citizen satisfaction survey are as follows: -+ Review the City's mission, vision, strategic goals and objectives, and customer service standards in order to include questions in the survey that are consistent with the vision and strategic direction of the City, and to gain an understanding of the City's constituent base. -+ Review documents describing City services and programs to provide insight into survey questions. -+ Conduct interviews with subject matter experts at the City to identify the types of issues that should be included in the survey. Subject matter experts may include, but are not limited to: department heads, elected officials, and advisory volunteers. We recommend conducting 8 to 10 interviews. Interview questions will focus on what types of questions/topics stakeholders think should be included in the survey, what they consider to be key elements of constituent satisfaction and quality of life, and how they would like to use the data from the survey. In addition, these interviews will serve to reinforce the survey objectives, methodology, and expected end results to City management and other stakeholders, as well as gain their support for the survey effort. -+ Conduct focus groups with City constituents. Focus groups with citizens shall be used to determine the types of questions, response options, and administration methodology preferences for the survey and process. Contractor shall design a standardized focus group protocol, facilitate the focus group sessions (in English and Spanish), and summarize focus group information. The focus groups will help identify the City's unique service issues and the dimensions by which the public view services, the City's vision and their overall satisfaction. Each session generally includes 10 to 12 participants from diverse backgrounds. Sessions last approximately two hours and shall be facilitated by one group facilitator and one note taker. Consultant shall conduct focus group sessions with members from a representative sample of businesses and civic organizations, as their needs and view of the City's vision and services will undoubtedly be diverse from the views of citizens. The number of focus groups to conduct will vary depending on the segmentation required (sampling discussed earlier), accuracy of lists, and ease of scheduling participants. Consultant shall work closely with the City project team to identify businesses and organizations for focus group selection and participation. Consultant shall perform focus groups with City employees who have high contact with City citizens, businesses and civic organizations to provide deeper insight into the perceived strengths and obstacles they face in dealing with the City's various constituency groups and further guide the development of the survey instruments. 5 -+ Review relevant customer/citizen satisfaction and marketing literature (e.g., dimensions of public satisfaction; questions from other surveys, etc.) as input into the design of the survey. -+ Review the National Research Center's Customer Survey Database so that the City can compare its results to a nationwide local government normative database. Consultant shall include questions from the database to allow for benchmarking comparisons. -+ Draft survey questionnaires. Based on the information collected from interviews, the City and its staff, normative benchmarks and our own experience, Consultant shall design a survey instruments for each of the three constituent groups (residents, businesses and civic organizations). Each questionnaire shall be similar enough to one another that comparisons across constituency groups is available, but also shall contain unique questions that address the specific issues and concerns of each group. Each questionnaire version shall include a survey welcome page/cover letter, instructions on how to complete and return the questionnaire to Consultant, the actual survey questions, and response options. -+ Translation. Consultant shall translate the survey into Spanish and then ask our clients to verify the translation for accuracy and completeness. Our experience has shown that this verification steps is a critical part in the survey development process. -+ Conduct pre-test. Consultant shall pre-test the survey using a diverse sample of the City's citizens. Consultant shall conduct several pre-test sessions, with 12 to 15 participants per session. Pre-test participants will be asked to complete the survey and provide suggestions about the clarity of the survey's instructions, questions, and response options. Additionally, participants will provide input about whether the survey questions are relevant to the City's constituents, and whether there are important issues that are not included in the survey. The City will receive a summary of the pre-test results and Consultant will revise the draft survey based on feedback from the survey reviews and pre-test. -+ Obtain approval of survey. Consultant shall provide a copy of the draft surveys to the Executive Staff for review at two points in time: 1) prior to conducting the pre- test; and 2) after pre-test changes are made. Consultant shall then revise the surveys based on feedback from these reviews, and submit it to the City for final approval. The anticipated number of multiple-choice questions that the final version of the survey instruments is 30 to 45. The number of questions may vary, however, depending on what is learned during the survey development process. The majority of questions will ask citizens to indicate their level of satisfaction with various City services, departments, and aspects of quality of life. The survey will likely include a set of background questions (e.g., race/ethnic background, income level, type of businesses) to allow for comparisons between the responses of different subgroups, and to ensure that survey respondents are representative of City citizens, businesses and civic organizations. The City shall have the option of including one or two open-ended (write-in) questions into the survey. This would allow respondents the opportunity to provide suggestions/ 6 comments about any issues not specifically asked in the survey, or to expand upon survey questions or issues. The following are examples of the types of questions that may be included in the City's citizen/public opinion survey questionnaires: -+ Overall rating of the City of Miami Beach as a place to live, work, do business and play -+ Understanding and alignment with the City's vision and strategic plan -+ Ratings of the City's services (e.g., public health, zoning, development, provisions of safety, etc.) -+ Ratings of City employees who provide such services (e.g., knowledge of City services, courtesy, professionalism) -+ Satisfaction with City leadership -+ Ratings of City government (e.g., hours of operation, convenient ways to use City services) -+ Overall rating of "quality of life" in the City -+ Ratings of different aspects of quality of life (e.g., transportation, job and business opportunities, cost of living, tourism, shopping and entertainment opportunities) -+ Doing business with the City Deliverables Consultant shall provide within timeframes defined in work plan the following: -+ Focus groups/interviews with City constituents and employees o One focus group with Executive staff and one-on-one interviews with Commissioners/elected officials (in-person/via phone as needed) on dates to be determined. o One citizen focus group in each of the three regions, one citizen focus group in Spanish, one homeowner focus group, one City employee focus group, two business/civic organization focus groups and interviews with developers. -+ Summary of focus group discussions. -+ Final survey instruments for each constituency group in English and the citizens and business surveys in Spanish as well. Step 5. Survey Administration Consultant's survey administration has the capability to use several methods for deploying questionnaires to constituents, including paper-and-pencil, outbound and inbound telephone, fax back, e-mail, and Internet. 7 ... Recommended Administration Approach A mixed approach of telephone and mail shall be utilized as this provides the best possibility to obtain good participation and allow for controlling the sample (quotas). Maximizing response rates Consultant shall work with the City to ensure that response rates are maximized. A high response rate will ensure that the data are valid and representative of citizens/the public. Potential strategies for increasing response rates include: -+ Providing up-front publicity about the survey (maximizing pre-survey communications) -+ Minimizing the length of the survey -+ Describing the benefits of the survey for citizens and the City -+ Providing flexibility in the manner and time in which citizens choose to respond -+ Sending a postcard to citizens after the initial mail-out reminding them to complete the survey -+ Providing regular response updates to City staff for follow-up Customer Incentives Incentives are frequently used to increase participation of customers in surveys such as this. The type of incentive used varies depending upon the constituency. It is generally not a large amount, but must be valued by the respondents. Consultant shall use the focus group phase to test the efficacy of different incentive possibilities. Deliverables Consultant shall provide within timeframes substantially in conformance with the antiicpated Project Timeline on page 13 the following: -+ Strategy for engaging the City's diverse population in the survey process and implementation of agreed upon modalities to be used in the data collection process. -+ For the citizen survey, the majority of the surveys shall be administered by telephone with a small number administered by mail in order to capture those citizens without land line phone service and control for response bias. -+ For the business survey, a telephone administration shall be utilized - lists to come from the City and Hay. -+ For civic organizations, telephone survey administration given to the small number of organizations (about 20 - 30). 8 Step 6. Data Processing, Survey Analysis and Reporting Consultant shall process all survey data, analyze the results, and provide recommendations to improve citizen/public satisfaction. Data processing. Upon receipt of the completed surveys, Consultant shall handle all data entry, programming, and processing of data. Consultant shall use a number of methods to ensure the integrity and accuracy of the data and reports (e.g., running various checks for duplicate data records and invalid responses, verifying data through two separate processing tools, etc.). Responses shall also be weighted/adjusted to reflect the actual distribution of City constituents. The City shall receive the "raw data" in an MS Excel document or in a format the City desires. Survey analysis. Consultant shall generate user-friendly feedback reports of the survey results. Consultant shall solicit the City's input into the types of data analyses that will provide the most useful information. Data analyses may consist of the following: -+ Analysis of the characteristics of citizens, businesses and civic organizations who responded to the survey -+ Frequency distributions for each survey question -- the percentage of respondents who selected each response option. For example, results will show the percentage of responses who reported their satisfaction level as: 1) "very satisfied" or "satisfied;" 2) "neither satisfied nor dissatisfied;" and 3) "very dissatisfied" or "dissatisfied" -+ Mean, median, mode and standard deviation for each question -+ Trend - Comparisons of survey results to previous City surveys, if applicable -+ Normative comparisons of the City's data to other jurisdictions/organizations for benchmarking purposes -+ Comparison of results among different subgroups (cross-tabulations for demographic groups). Contractor shall also perform cross-tabulations to compare survey responses among different groups of constituents. Contractor shall solicit input from the City into the types of comparisons that will provide the most useful data. Examples of possible comparisons include: ~ Region or district within the City ~ Home owners versus renters ~ Race/ethnic background ~ Household income ~ Length of time living in the City ~ Year-round versus seasonal residents ~ Type of businesses and civic organization ~ Amount of contact with the City 9 Summary of Analytical Tools Used Type of Analysis To Discover: Factor Analysis Questionnaire structure Correlation Analysis Singular relationships amonQ measurements Multiple Regression Analysis Weighted/partialled relationships among variables Interaction (whether relationships between Segmentation Modeling variables differ depending on a condition of a third variable) Structured Equation Modeling Shared weighted relationships across all (L1SREL) domain measurements Electronic reports. Consultant shall provide survey feedback reports in a paper format, a .pdf format, and an electronic, Microsoft-Excel-based format (see Appendix D for sample report pages and the attached CD for a sample report in its entirety). Responses to open-ended questions. Consultant shall perform a high-level content analysis of responses to any open-ended questions included in the questionnaires. These analyses identify the major themes from the verbatim comments. Additionally, Consultant shall perform regression analyses to identify the key drivers of citizen satisfaction with City products/services, or perceptions of quality of life. For example, a regression analysis can identify which aspects of City living (e.g., safety, cultural and social opportunities) have the biggest impact on perceptions of the City as a place to live. Deliverables Consultant shall provide within timeframes defined in work plan the following: + Recommended data analysis methodology and implementation of methodology. + User-friendly feedback reports - one report that includes survey results across all three surveys, one report for each survey, and up to five additional reports by region for the citizen survey and up to two additional reports by region for the business survey. + Electronic copy of the final data file in MS Excel format. Step 7. Presentation of Results to Management Consultant shall prepare an executive briefing/presentation on the key survey findings, to be delivered to City management and staff. The executive briefing will include: + Description of survey methodology + Response rates and demographics of survey respondents + Summary of survey results + Key strengths and opportunities for improvement for the City overall 10 -+ Important differences in survey findings by key demographic groups -+ Comparison of survey results to normative benchmarks -+ Themes identified through the analysis of responses to the open-ended question -+ Overall conclusions about the extent to which citizens, and eventually businesses and civic organizations, understand the City's vision, strategy, as well as, satisfaction with City services and quality of life -+ Next steps for action planning, communications and survey feedback Following the presentation of the key survey findings, Consultant shall facilitate a group discussion for the purpose of issue prioritization and future action planning to address citizens' most critical issues. It should be noted that Consultant shall isolate a limited number of issues for action, focusing on a few key opportunities for improvement to yield more tangible results than a shallow response to a "laundry list" of problems. In addition, focusing on a few key issues will increase the likelihood of success of the survey effort. Deliverable: Consultant shall provide within timeframes defined in work plan electronic copies of PowerPoint Presentation and in-person delivery to City Management and Staff. Step 8. Post-Survey Communications Communications can take many forms (e.g., memo, newsletter, meetings, video, on- line, etc.) and should be tailored to specific audiences. Consultant shall assist the City in the development of formal communications for sharing of the overall company results with the public and City employees as well as provide useful sample materials. Deliverable: Consultant shall provide within timeframes defined in work plan draft post- survey communiques, advice on content and strategy for distribution. Step 9. (Optional: Follow-On Focus Groups) Consultant shall conduct follow-on focus group interviews with citizens and/or businesses, at the City's request, to probe deeper on specific issues identified in the survey results. Consultant shall prepare a protocol and recommended methodology for selecting participants. Deliverable: Consultant shall conduct and summary of focus group interviews. 11 Summary of Deliverables The specific deliverables for the City of Miami Beach's citizen/public opinion survey process are: -+ A sustainable survey process that is not only technically sound, but also substantially contributes to the achievement of continuous improvement -+ A measurement process that provides the City with the ability to: o Assess customer satisfaction over time on a regular basis o Assess itself in relation to other comparable counties o Determine what actions are required to implement its vision and strategic plan -+ A project work program and timeline (attached) -+ Briefing/focus group with Executive Staff and one-on-one interviews with Commissioners and elected officials -+ Focus group sessions/interviews with citizens (5), members of businesses and civic organizations (2), and City employees (1). -+ Customer survey instruments for citizens, businesses and civic organizations in English and for citizens and businesses in Spanish as well. -+ A sample plan and methodology for determining appropriate population, size, and selection -+ Pre-survey communications strategy and draft communiques -+ Data collection methodology; advice on the most appropriate survey delivery mechanisms and the execution of the selected method(s) -+ Summary of focus group findings -+ An analysis of the survey results to provide the City with a clear understanding of what is important to the citizens/public (views of services and the drivers of overall satisfaction) and the City's perceived ability to deliver on those things that are important -+ A presentation of the results of this analysis in an interactive session with City management - this discussion is designed to engage management in a meaningful dialogue about the implications of the data for action -+ Final results reports on the survey data -+ Guidance for City staff on the utilization of the results -+ A plan to feedback the results to City employees and constituents, including a communication plan and methods of delivery -+ Raw data file in MS Excel format (or whichever format the City desires) -+ Conduct and summary of follow-on focus groups (if desired) 12 ~ .!!:! > .... ... oS l'G :l ~ c: l'G ~ .., ~ - 0 ~ ~ aI I:: 3= 0 ~ (I) ~r:: C') .!!! ~.e- " I:: 0..; 1lI~ C\I 13 ... 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III OEl C o 'iij > iii C <C0 ~C C ~ 'm :e 00 GI ... 1.)0 2- D. l'lI - l'lI C o 0 C C GI GI 'C.~ ~ ;5 (3 0... ... t:: 0 0 0- - C.C 0 GI 0 t:: 0:::= 0 >S c. :!:: C ~ o 3l _ ! '2 D. ::l C') ...... o C >0 GI'- c:iV ::;,.2 l/lC 1li::;' o E D.E o o 2.2 CANCELLATION OF ASSIGNMENT The City reserves the right, at its sole option and discretion, to cancel all or a portion of any Consultant assignments, as set forth in Subsection 2.1 of this Agreement, or as may otherwise be assigned by City to Consultant. All assignment cancellations by the City must be received by the Consultant no later than two (2) business days or 48 hours, whichever is longer, before the assignment is to commence. Cancellations not received prior to this time, will be billed for the total reserved block of time. The City can provide a cancellation notification to Consultant by calling Phone: 1.201.377.5842 and providing a written cancellation via fax to 1.201.377.5811 or e-mail at Rosario_Porpora@Contractorgroup. Consultant will provide confirmation of cancellation. 2.3 DURATION AND EXTENT OF AGREEMENT The term of this Agreement shall commence upon execution of this Agreement by all parties hereto, and shall terminate twelve months from the date set forth on page 1 hereto (the commencement date of the Agreement), unless terminated as otherwise provided in this Agreement in Section 4 on page 17. 2.4 AUDIT AND INSPECTIONS At any time during normal business hours and as often as the City may deem necessary, there shall be made available to the City and/or such representatives as the City may deem to act on its behalf, to audit, examine and make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement. Consultant shall maintain any and all records necessary to document compliance with the provisions of this Agreement. 2.5 ACCESS TO RECORDS Consultant agrees to allow access during normal business hours to all financial records to the City and/or such authorized representatives as it may deem to act on its behalf, and agrees to provide such assistance as may be necessary to facilitate financial audit by the City or its representatives when deemed necessary to insure compliance with applicable accounting and financial standards. Consultant shall allow access during normal business hours to all other records, forms, files, and documents which have been generated in performance of this Agreement, to those personnel as may be designated by the City. 14 2.6 ASSIGNMENT. TRANSFER OR SUBCONSUL TING The Consultant shall not sub-consult, assign, or transfer any work under this Agreement without the prior written consent of the City. Neither this Agreement nor any term nor provision hereof or right hereunder shall be assignable by any parties and any attempt to make such assignment shall be void. 2.7 SUB-CONTRACTORS The Consultant shall be liable for the Consultant's services, responsibilities and liabilities under this Agreement and the services, responsibilities and liabilities of sub-contractors, and any other person or entity acting under the direction or controls of the Consultant. When the term "Consultant" is used in this Agreement, it shall be deemed to include any sub-Consultants and any other person or entity acting under the direction or control of Contractor. All sub-consultant must be approved of in writing prior to their engagement by Consultant. SECTION 3 COMPENSATION FOR SERVICES 3.1 COST OF SERVICES The cost charged by Consultant for the Services satisfactorily provided pursuant to this Agreement shall be as shown below: Pricing Step Fees & Expenses Planning meetings/project management $1,500 Pre-survey communications No charge Conduct focus groups* $7,500 Survey development $8,000 Total Research $17,000 Resident Survey** $40,000 Business Survey** $17,675 Civic Organization Survey** $9,400 Total Fees and Expenses $84,075 Comments and Assumptions 15 Planning and project management costs assume sessions to agree on objectives/final timeline/deliverables; interviews with City staff; includes management throughout the project Consultant provides sample communications materials for each constituent group/City employees; City drafts and sends out Focus group costs based on the following assumptions: -+ Citizen (one group for each geographical segment (3), one for homeowners and one in Spanish) -+ Businesses and Civic Organizations (2 groups and 2-3 phone interviews with developers) -+ City management and employees - 1 group Consultant to obtain lists from City and other sources. Survey costs based on the following assumptions: -+ Citizen (one group for each geographical segment (3), one for homeowners and one in Spanish) -+ Businesses and Civic Organizations (2 groups and 2-3 phone interviews with developers) -+ City management and employees - 1 group -+ 3 versions of survey (similar but unique; 30-45 questions with one or two open- ended questions Data capture, quality control, weighting, processing and report production (3 versions of the report = one for each survey version; up to 3 reports for districts/regions within the City) Anticipated trips: executive staff meeting, focus groups/homeowner group (assumes one trip), State of the City meeting and one in-person presentation o Airfare - estimated at $3,000 (assumes arrangements made one week or more prior to meeting) o Other transportation (e.g., taxis) - estimated at $500 o Meals - estimated at $250 Additional Options 16 -+ Additional Telephone surveys to increase response rate: $5,000 -+ Follow-on focus groups: $2,500/day (can conduct up to 3 groups a day, groups not scheduled concurrently, each about 60 - 90 minutes in length, similar invitation approach as the pre-survey communication strategy, focus groups conducted at City facilities with refreshments provided) 3.2 INVOICING Consultant shall submit an appropriate invoice ("Invoice") to the City within thirty (30) days of the last day of each calendar month for Services provided that calendar month. Such Invoice shall include a detailed description of the Services provided, the percentage of work completed for each category of work listed in Section 3.1 on page 15 of the Agreement, and the dates and times when they were provided. Consultant shall mail all Invoices to: City of Miami Beach 1700 Convention Center Drive City Manager's Office - 4th Floor Miami Beach, Florida 33139 Attn: Kathie G. Brooks, OBPI Director 3.3 METHOD OF PAYMENT Within thirty (30) days of the approval by the City of an appropriately filed Invoice, the City shall provide Consultant with a check for payment of the approved amount. Payments shall only be made for approved Invoices for Services satisfactorily performed. SECTION 4 TERMINATION. SUSPENSION AND SANCTIONS 4.1 TERMINATION FOR CAUSE If the Consultant shall fail to fulfill in a timely manner, or otherwise violates any of the covenants, agreements, or stipulations material to this Agreement, the City shall thereupon have the right to terminate the Services then remaining to be performed. Prior to exercising its option to terminate for cause, the City shall notify the Consultant of its violation of the particular terms of this Agreement and shall grant Consultant seven (7) days to cure such default. If such default remains uncured after seven (7) days, the City, upon three (3) days' notice to Consultant, may terminate this Agreement and the City shall be 17 fully discharged from any and all liabilities, duties and terms arising out of/or by virtue of this Agreement. Notwithstanding the above, the Consultant shall not be relieved of liability to the City for damages sustained by the City by any breach of the Agreement by the Consultant. The City, at its sole option and discretion, shall additionally be entitled to bring any and all legal/equitable actions that it deems to be in its best interest in order to enforce the City's right and remedies against the defaulting party. The City shall be entitled to recover all costs of such actions, including reasonable attorneys' fees. To the extent allowed by law, the defaulting party waives its right to jury trial and its right to bring permissive counter claims against the City in any such action. 4.2 TERMINATION FOR CONVENIENCE OF THE CITY THE CITY MAY ALSO, FOR ITS CONVENIENCE AND WITHOUT CAUSE, TERMINATE THE SERVICES THEN REMAINING TO BE PERFORMED AT ANY TIME DURING THE TERM HEREOF BY GIVING WRITTEN NOTICE TO CONSULTANT OF SUCH TERMINATION, WHICH SHALL BECOME EFFECTIVE FIFTEEN (15) DAYS FOLLOWING RECEIPT BY THE CONSULTANT OF THE WRITTEN TERMINATION NOTICE. IF THE AGREEMENT IS TERMINATED BY THE CITY AS PROVIDED IN THIS SUBSECTION, CONSULTANT SHALL BE PAID FOR ANY SERVICES SATISFACTORILY PERFORMED, AS DETERMINED BY THE CITY, AT ITS DISCRETION, UP TO THE DATE OF TERMINATION. 4.3 TERMINATION FOR INSOLVENCY The City also reserves the right to terminate the Agreement in the event the Consultant is placed either in voluntary or involuntary bankruptcy or makes an assignment for the benefit of creditors. In such event, the right and obligations for the parties shall be the same as provided for in Section 4.6.2. 4.4 SANCTIONS In the event of the Consultant's noncompliance with the nondiscrimination provisions of this Agreement, the City shall impose such sanctions as the City or the State of Florida may determine to be appropriate, including but not limited to, withholding of payments to the Consultant under the Agreement until the Consultant complies and/or cancellation, termination or suspension of the Services. In the event the City cancels or terminates the Services pursuant to this Subsection the rights and obligations of the parties shall be the same as provided in Section 4.6.2. 18 SECTION 5 INDEMNIFICATION AND INSURANCE REQUIREMENTS 5.1 INDEMNIFICATION Consultant agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees and costs, for personal, economic or bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Consultant, its employees, agents, sub-Consultant, or any other person or entity acting under Consultant's control, in connection with the Consultant performance of the Services pursuant to this Agreement; and to that extent, the Consultant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City in the defense of such claims and losses, including appeals. The parties agree that one percent (1 %) of the total compensation to the Consultant for performance of the Services under this Agreement is the specific consideration from the City to the Consultant for the Consultant's Indemnity Agreement. The Consultant's obligation under this Subsection shall not include the obligation to indemnify the City of Miami Beach and its officers, employees and agents, from and against any actions or claims which arise or are alleged to have arisen from negligent acts or omissions or other wrongful conduct of the City and its officers, employees and agents. The parties each agree to give the other party prompt notice of any claim coming to its knowledge that in any way directly or indirectly affects the other party. 5.2 INSURANCE REQUIREMENTS The Consultant shall not commence any work pursuant to this Agreement until all insurance required under this Section has been obtained and such insurance has been approved by the City's Risk Manager. The Consultant shall maintain and carry in full force during the term of this Agreement the following insurance: 1. Consultant General Liability in the amount of $1,000,000. 2. Consultant Professional Liability in the amount of $200,000. 3. Workers Compensation & Employers Liability as required pursuant to Florida statute. 4. The insurance must be furnished by insurance companies authorized to do business in the State of Florida and approved by the City's Risk Manager. 19 5. Original certificates of insurance for the above coverage must be submitted to the City's Risk Manager for approval prior to any work commencing. These certificates will be kept on file in the office of the Risk Manager, 3rd Floor, City Hall. 6. The Consultant is solely responsible for obtaining and submitting all insurance certificates for its sub-consultants. All insurance policies must be issued by companies authorized to do business under the laws of the State of Florida. The companies must be rated no less than "B+" as to management and not less than "Class VI" as to strength by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk Manager. Compliance with the foregoing requirements shall not relieve the Consultant of the liabilities and obligations under this Section or under any other portion of this Agreement, and the City shall have the right to obtain from the Consultant specimen copies of the insurance policies in the event that submitted certificates of insurance are inadequate to ascertain compliance with required overage. Endorsements All of Consultant's certificates, above, shall contain endorsements providing that written notice shall be given to the City at least thirty (30) days prior to termination, cancellation or reduction in coverage in the policy. Certificates Unless directed by the City otherwise, the Consultant shall not commence any services pursuant to this Agreement until the City has received and approved, in writing, certificates of insurance showing that the requirements of this Section (in its entirety) have been met and provided for. SECTION 6 LITIGATION JURISDICTIONNENUElJURY TRIAL WAIVER This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. By entering into this Agreement, Contractor and the City expressly waive any rights either party may have to a trial by jury of any civil litigation related to or arising out of this Agreement. Contractor shall specifically bind its employees, sub-consultants, and agents to the provisions of this Agreement. This Agreement shall be construed in accordance with the laws of the State of Florida. 20 SECTION 7 LIMITATION OF CITY'S LIABILITY The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action, except for non- payment of services provided by Consultant as a result of the City's request, for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $1,000. Consultant hereby expresses its willingness to enter into this Agreement with Consultant's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $1,000. Accordingly, and notwithstanding any other term or condition of this Agreement, Consultant hereby agrees that the City shall not be liable to the Consultant for damages in an amount in excess of $1,000 for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement, except for non- payment of services provided by Consultant as a result of the City's request. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Section 768.28, Florida Statutes. SECTION 8 ATTORNEY'S FEES In the event that any party to this Agreement should seek legal or administrative recourse to enforce the terms of this Agreement, the breaching party shall be obligated to pay the prevailing party the reasonable attorney's fees and costs incurred by the prevailing party. SECTION 9 GENERAL PROVISIONS 9.1 PUBLIC ENTITY CRIMES Prior to commencement of the Services, the Consultant shall file a State of Florida Form PUR 7068, Sworn Statement under Section 287.133(3)(a) Florida Statute on Public Entity Crimes with the City's Procurement Division. 9.2 EQUAL EMPLOYMENT OPPORTUNITY In connection with the performance of this Agreement, the Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex, age, and national origin, place of birth, marital status, sexual orientation or physical handicap. The Consultant shall 21 take affirmative action to ensure that applicants are employed and that employees are treated during their employment without regard to their race, color, religion, ancestry, sex, age, national origin, place of birth, marital status, physical handicap, or sexual orientation. Such action shall include, but not be limited to the following: employment, upgrading; demotion, or termination; recruitment or recruitment advertising; layoff or termination; rates of pay, or other forms of compensation; and selection for training, including apprenticeship. 9.3 CONFLICT OF INTEREST The Consultant herein agrees to adhere to and be governed by all applicable Miami-Dade County Conflict of Interest Ordinances and Ethics provisions, as set forth in the Miami-Dade County Code, and as may be amended from time to time; and by the City of Miami Beach Charter and Code; both of which are incorporated by reference herein as if fully set forth herein. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirectly which should conflict in any manner or degree with the performance of the Services. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall knowingly be employed by the Consultant. No member of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising there from. SECTION 10 NOTICES 10.1 METHOD AND LOCATION OF DELIVERY OF NOTICE All notices and communications in writing required or permitted hereunder, except for those of cancellation of assignments which are governed by subsection 2.2, may be delivered personally to the representatives of the Consultant and the City listed below or may be mailed by U.S. Certified Mail, return receipt requested, postage prepaid, or by a nationally recognized overnight delivery service. Until changed by notice in writing, all such notices and communications shall be addressed as follows: 22 TO CONTRACTOR: Hay Insight, A Division of Hay Group, Inc. Attn: Rosario Porpora, Director of Contractor Harborside Financial Center 2300 Plaza Five, Suite 2310 Jersey City, New Jersey 07311-4013. TO CITY: City of Miami Beach City Manager's Office - 4th Floor Attn: Kathie G. Brooks, OBPI Director 1700 Convention Center Drive Miami Beach, Florida 33139 (305) 673-7010 Notice may also be provided to any other address designated by the party to receive notice if such alternate address is provided via U.S. certified mail, return receipt requested, hand delivered, or by overnight delivery. In the event an alternate notice address is properly provided, notice shall be sent to such alternate address in addition to any other address which notice would otherwise be sent, unless other delivery instruction as specifically provided for by the party entitled to notice. Notice shall be deemed given on the day on which personally served, or the day of receipt by either U.S. certified mail or overnight delivery. SECTION 11 ENTIRE AGREEMENT. AMENDEMENT. SEVERABILITY 11.1 ENTIRETY OF AGREEMENT The City and the County agree that this is the entire Agreement between the parties. This Agreement supersedes all prior negotiations, correspondence, conversations, agreements or understandings applicable to the matters contained herein, and there are no commitments, agreements or understandings concerning the subject matter of this Agreement that are not contained in this document. Title and Paragraph headings are for convenient reference and are not intended to confer any rights or obligations upon the parties to this Agreement. 11.2 CHANGES AND ADDITIONS This Agreement cannot be modified or amended without the express written consent of the parties. No modification, amendment, or alteration of the terms 23 or conditions contained herein shall be effective unless contained in a written document executed with the same formality and of equal dignity herewith. 11.3 SEVERABILITY If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall not be affected and every other term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 11.4 COUNTERPARTS This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same Agreement. 24 By: ~;r rAA~ Robert Parcher City Clerk IN WITNESS WHEREOF, the parties hereto have caused appropriate officials, as of the date first entered above. FOR CITY: ATTEST: STATE OF FLORIDA ) ) SS COUNTY OF MIAMI-~DE ) .'" . o~ t.qis 5!.. day of M ~ ../ ,2004, before me personally appeared, ..;,J4111'1 J)er(Vle.r-- ,as f-1a.y,'){ of the City of Miami Beach, who is personally know to me 0, fJ,c,duted as identification and who dic:l1a:Ke"' an oath and deposes and says, that tAe17he/sl1e""executed the above instrument and ~/he/$/;!e' acknowledged to me that ~/he/sRe'executed the same. OFFICIAL NafARY SEA LILLIAN BEAUCHAM NafARY PUBLIC srATE OF FLORIDA MY COMMISSION EXPIRE: COMMISSION NO. DD109289 MY COMMISSION EXP. APR. 29,2006 FOR CONSULTANT: HAY INSIGHT. A DIVISION OF THE HAY GROUP ATTEST~~ By: / Signatur KOSa,..,o fb,po/n / ~/W Print NamefTitle By: c;q ::1e.('+ee.~. ~ClLS; G'e/Aef<<{ I Ccvt..reJ ""J ]JUl.. la, rint NamefTitle Corporate Seal PH) fl/SYLVAfJJfI STATE OF rL9RIBA Pfflt../HXLPf/t/j ) SS COUNTY OF MIAMI BABE ) -/."' fly-on th)J 3 f(() day of No vefY/ eY , 2004, before me personally appeared, J e '" C1 ' 7JtfVGt1 S ,as en' oV( 5e "I- ec' ,who is Rersonally know to me or produced ~- as ident cation and wh~,~t~Jid not take an oath an~~oses and says, tha~he executed the above instrument a~she acknowled ed to me th~she executed the same with lawful authority to d~ d& / ~ PUBLIC MY COMMISSION EXPIRES: ;;b. ,2 ~ /J..IJtJ 0 APPROVED AS 1'0 FORM~OOKS\HaySurveyAgreementFinal.doc JJf{ ~ON \\..S--<>'1 City~ Notarial Seal Margaret M. Daly, Notary Public City of Philadelphia, Philadelphia County My Commission Expires Feb. 28. 2006 Member, Pennsylvania ASSOCiation 01 Notaries 25 Date