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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/17/2005 - RESOLUTION 2005-051 AUTHORIZING THE CITY TO ENTER ITEM NUMBER: 17 AGENDA ITEM SUMMARY DATE: May 17, 2005 FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill Diane Jones SUBJECT Resolution 2005-051 Authorizing the City to Enter into a Contract with Public Strategies Group, Inc., for the Purchase of Services to Develop the 2006 and 2007 Budget Using the Budgeting for Outcomes Format, as an Exception to the Competitive Process. RECOMMENDATION Staff recommends adoption of the Resolution. FINANCIAL IMPACT Funds for these services are appropriated and available in the 2005 budget. EXECUTIVE SUMMARY Public Strategies Group, Inc., has developed a unique process for budgeting — Budgeting for Outcomes. Because the City is facing a structural change in its revenues, this approach is being used to match citizen expectations with available resources. BACKGROUND Public Strategies Group, Inc., will assist Fort Collins in implementing Budgeting for Outcomes (BFO), the name Public Strategies Group (PSG) gives to an approach that turns the typical budgeting process on its head. Budgeting for Outcomes is a top-to-bottom review of everything local government does -- from the citizens' perspective, not the departments'. BFO does not start with last year's spending but with the results the City wants to produce. PSG will help Fort Collins design and assist the City to implement a process to answer four key questions: 1. How much are citizens willing to spend? May 17, 2005 -2- Item No. 17 2. What results form the core of what must be done and done well to serve the residents of Fort Collins? 3. How much will the City spend to produce each of these priority outcomes? 4. How best can that money be spent to achieve each of the outcomes? PSG will provide assistance as generally described on the attached work plan (Attachment 1). The City Manager is committed to producing a budget which more closely relates to the needs of the City Council and the Citizens of Fort Collins. The BFO process is the best budgeting system to use to meet those needs. The Purchasing Agent has determined that Public Strategies Group, Inc., is the only source which can provide the Budgeting For Outcomes approach to budgeting in accordance with the City Code section 8-161(d) (1) a. The total cost for these services is $140,000 with expenses not to exceed $20,000. ATTACHMENTS 1. Budgeting for Outcomes Scope of Work ATTACHMENT Budgeting for Outcomes SCOPE OF WORK The purpose of this Scope of Work is to describe the course of action to implement Budgeting for Outcomes and to improve performance in Fort Collins. Our Approach Our approach would be to assist Fort Collins in implementing Budgeting for Outcomes (BFO), the name Public Strategies Group(PSG)gives to an approach that turns the typical budgeting process on its head. Budgeting for Outcomes is a top-to-bottom review of everything local government does--from the citizens' perspective, not the departments'. We start not with last year's spending but with the results the City wants to produce. PSG will help Fort Collins design and assist the City to implement a process to answer four key questions: How much are citizens willing to spend? What results form the core of what must be done and done well to serve the residents of Ft. Collins? How much will the city spend to produce each of these priority outcomes? How best can that money be spent to achieve each of the outcomes? PSG will provide assistance as generally described on the attached work plan. Specific tasks are also outlined below. Task A—Design a BFO Approach for Ft. Collins—April PSG will meet with the "Leadership Team" to help design and guide the BFO process. This Leadership Team will be 5-10 people chosen by Fort Collins that includes the City Manager and other key decision makers. PSG will use our experience with other jurisdictions pioneering BFO to provide the City with best practices and practical tools. PSG would first work with the Leadership Team to develop an approach that meets the specific situation in Fort Collins. Then we would jointly develop a summary work plan and schedule for the remainder of the project, taking into account the budget deadlines and other milestones. Working with the Leadership Team, PSG will also assist with stakeholder issues. We will encourage the Steering Team to adopt a communications plan for both internal and external customers. PSG will help develop project outcomes and project organization, specifically identifying the Leadership Team, the Result Teams, the Communications Team and Facilitators. Task B—Budgeting for Outcomes Orientation Sessions--April PSG will work with Fort Collins project staff to provide orientation sessions to (1) elected officials and (2) executives and managers in the city. The BFO Orientation Kick Off meeting for Fort Collins will include the Group of 137(the Executive Team and the Service Directors and division managers of the City), facilitators, Result Team members and others. Fort Collins will provide key participants with a copy of The Price of Government by Osborne and Hutchinson. Also in this timeframe, PSG will review financial information prepared by Fort Collins staff on the City' s price of government (POG) and summary information about its financial conditions. PSG will also review what is known about citizen preferences (council goals, citizen survey or other materials). We will use this information in the orientation sessions. At the end of this orientation session, participants will be familiar with: The structural deficit, The concept of the price of government The general approach of Budgeting for Outcomes. The members of the Leadership Team and the Result Teams The work plan and process that Fort Collins will use. PSG would also design and present a Budgeting for Outcomes orientation briefing for the City Council at its retreat on April 29-30, 2005. In addition to the material described in the Kick Off orientation session, we would also work with decision makers to determine the results that are important to citizens and facilitate a process to select those results that will drive the budget process. Task C—Assist Leadership Team PSG will coach the Leadership Team as they guide the BFO process. We will provide information on best practices and encourage the team to be bold. We will assist in drafting Team Charters for the Leadership Team, the Result Teams, the Communications Team and others that may be needed. We will also help the Leadership Team in developing instructions and other materials needed during the process. Task D—Assist Results Teams PSG will provide technical assistance to each Result Team to develop a Request for Results (RFR). Each RFR will include: Three measures of success for the Result A results map that shows what produces the result Purchasing strategies PSG will also assist the Results Teams in talking with potential sellers in developing the RFRs. Task E—Design and Facilitate BFO Work Sessions PSG will design and facilitate three sets of half day BFO Work Sessions with the Leadership Team and the Result Teams to develop the strategies for the budget.At each BFO Work Session, Result Teams will be expected to present specific deliverables as part of the BFO process.Work Sessions are to make sure everyone is communicating and coordinating. Any Service Directors not directly participating on the Results Teams, are expected to attend the Work Sessions as observers Task F—Assist the Sellers PSG will also provide technical assistance to the City departments that will be responding to the RFRs as"sellers". We would design improvements to the current"Competing for Results"process. We will use smarter sizing, smarter spending, smarter management and smarter leadership approaches outlined in The Price of Government to assist City executives in developing creative approaches to producing results. We will assist sellers with a workshop orientation to smarter approaches and best practices. We will also offer individual consultations for sellers. Task G Assist with Rankings and Negotiations PSG will assist the Results Teams in ranking the "offers" they receive from sellers and in giving feedback to sellers to improve their offers. PSG will assist in the negotiation between buyers and sellers to get the best price for the result produced. The negotiated offers will form the basis of the next budget. Task H—Budget Workshops with the City Council PSG will also be available as needed to work with the City Council throughout the budget process. Task I—Evaluation PSG will assist in evaluating the effectiveness of BFO in Fort Collins and will assist in developing design criteria for the next year's process. RESOLUTION 2005-051 AUTHORIZING THE CITY TO ENTER INTO A CONTRACT WITH PUBLIC STRATEGIES GROUP, INC., FOR THE PURCHASE OF SERVICES TO DEVELOP THE 2006 AND 2007 BUDGET USING THE BUDGETING FOR OUTCOMES FORMAT, AS AN EXCEPTION TO THE COMPETITIVE PROCESS WHEREAS, Public Strategies Group, Inc. ("PSG"), has developed a unique budgeting process called Budgeting for Outcomes; and WHEREAS, the City is interested in using the Budgeting for Outcomes process to develop the 2006 and 2007 budgets; and WHEREAS, Section 8-161(d)(1)a. of the Code of the City of Fort Collins authorizes the Purchasing Agent to negotiate the purchase of supplies and services without utilizing a competitive bidding process where the Purchasing Agent determines there exists only one responsible source; and WHEREAS,the Purchasing Agent has determined that PSG is uniquely qualified to deliver this budgeting approach and that purchasing these services, as an exception to competitive processes, is in the best interests of the City since this Budgeting for Outcomes approach can only be performed by this vendor; and WHEREAS, the Purchasing Agent has submitted the requisite justification to the City Manager for approval; and WHEREAS, the City Manager has reviewed and concurred in that determination for this acquisition; and WHEREAS,the cost for PSG's services is One Hundred Forty Thousand Dollars($140,000), plus reimbursable direct costs, not to exceed a total of One Hundred Sixty Thousand Dollars ($160,000); and WHEREAS, funds are appropriated for this purchase; and WHEREAS, Section 8-161(d)(3) requires approval of this purchasing method by the City Council for procurements costing more than One Hundred Thousand Dollars ($100,000), prior to acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the purchase of services related to the implementation of the Budgeting for Outcomes process in the amount of up to One Hundred Sixty Thousand Dollars ($160,000) from Public Strategies Group,Inc.,as an exception to the City's competitive Purchasing requirements,is hereby approved. Passed and adopted at a regular meeting of the City Council held this 17th day of May,AD, 2005. Mayor ATTEST: City Clerk