For City Council Meeting [July 23, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to 1) Provide Authority to the City Administrator to Select, Negotiate and Execute Professional Services Contracts and other Agreements and to Issue Purchase Orders to Facilitate Organizational Development; and 2) Approve the Professional Services Agreement with Harvey M. Rose Associates, LLC to Conduct an Assessment of the City’s Public Works, Engineering, and Utilities Functions and Issue a Purchase Order in an Amount Not-to-Exceed $77,600.
(ACTION)
Body
BACKGROUND:
Historically, the City Council has approved professional services agreements, contracts and approved the issuance of purchase orders for items that exceed the $15,000 City Administrator purchase authorization. The Council has and will continue to approve agreements, contracts and purchase orders other than as specifically requested in this action. The City Administrator is requesting authority to select, negotiate and execute professional services contracts and other agreements and to issue purchase orders to facilitate organizational development as authorized with the $3 million appropriation to the City Administrator Department Fiscal Year 2019/20 budget.
In July 2019 the City’s Public Works Director/City Engineer retired. The City has initiated a recruitment for the position and has determined that an assessment of the Public Works Department and its functions would be necessary to establish expectations and benchmark performance levels for both the Department and a future Director.
ANALYSIS/DISCUSSION:
There is an organizational need to provide comprehensive assessment of City departments and their overall performance. Similarly, there is a need to generate organizational, staff and leadership development programs and processes throughout the City. In order to bring about timely and coordinated organizational development initiatives the City will require the use of outside subject matter experts. Consistent with City Council direction on the previous Human Resources assessment action, such assessments will include consultation and meeting with the City Council members individually as part of the scope of work.
The City has not previously conducted a formal assessment of the Public Works Department or its functions. The complexity of the Public Works function has increased over time. Legal and regulatory compliance are continually changing and the public expectation for transparency has never been greater. A holistic approach is needed to assess the overall Public Works Department and its functions. This assessment will serve as a road map to maintain areas of high performance and to address areas where there is an opportunity to improve.
An informal solicitation of scope of work and cost for professional services for the assessment of Public Works was conducted. Harvey M. Rose Associates was determined to be the best choice based on breadth and depth of experience in the field and the specific needs of the assessment. Harvey M. Rose Associates, LLC will provide a systematic and comprehensive assessment with objectives, to provide an efficiency evaluation that provides a deep and broad look at the structure of the Department and its divisions as well as its effectiveness in providing services to the public, working with other departments within the City, and effectively communicating with City management and policy makers. The proposal includes an Initial Risk Assessment followed by a risk focused in-depth analysis and reporting. In the Initial Risk Assessment an entrance conference will be conducted with City staff, the City Administrator, and the City Council members individually. Harvey M. Rose Associates, LLC has extensive experience in performance audits across a wide spectrum of public services. The principal, Mr. Dan Doncher, and the analysts listed in the proposal all have extensive Public Works specific municipal review experience. Harvey M. Rose Associates, LLC has performed recent relevant assessments in the Sacramento; Beverly Hills; the Port of Los Angeles; the City/County of San Francisco, Santa Clara County; and the Cities of Watsonville, Victorville, and Colton.
The project approach and methodology that was provided by Harvey M. Rose Associates, LLC to provide the Public Works assessment is in the attached proposal. The cost is $77,600 with an approximate four (4) month timeline.
ENVIRONMENTAL IMPACT:
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b)(5) a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report and agreement.
FINANCIAL IMPACT:
Operating Budget Impact
Funding for services outline is available in account 010-500-1148-2011.
Capital Improvement Budget Impact
There is no capital improvement budget impact.
Licensing
The vendor shall submit a business license application and pay a Business License tax at the Professional Service rate of $104.00, as well as Administration and State fee.
RECOMMENDATION:
Staff recommends that the City Council:
• Provide authority to the City Administrator to select, negotiate and execute professional services contracts and other agreements and to issue purchase orders to facilitate organizational development.
• Approve the Professional Services Agreement with Harvey M. Rose Associates, LLC to conduct an assessment of the City’s Public Works, Engineering, and Utilities functions; and issue a purchase order in an amount not-to-exceed $77,600.