HomeMy WebLinkAbout344448 PUBLIC STRATEGIES - CONTRACT - CONTRACT - 23457THIS AGREEMENT made and entered into the day and year set forth below, by and between THE
CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the
"City" and Public Strategies Group, Inc., hereinafter referred to as 'Professional'.
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed by
and between the parties hereto as follows:
1. Scope of Services. The Professional agrees to provide services in accordancewith
the scope of services attached hereto as Exhibit "A", consisting of three (3) pages, and
incorporated herein by this reference.
2. The Work Schedule. [Optional] The services to be performed pursuant to this
Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit "B",
consisting of three (3) pages, and incorporated herein by this reference.
3. Time of Commencement and Completion of Services. The services to be performed
pursuant to this Agreement shall be initiated within five (5) days following execution of this
Agreement. Services shall be completed no later than December 31, 2005. Time is of the essence.
Any extensions of the time limit set forth above must be agreed upon in writing by the parties
hereto.
4. Early Termination by City. Notwithstandingthe time periods contained herein, the City
may terminate this Agreement at any time without cause by providing written notice of termination
to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the termination
date contained in said notice unless otherwise agreed in writing by the parties.
All notices provided underthis Agreementshall be effective when mailed, postage prepaid and sent
to the following addresses:
Professional Services Agreement —January, 2005
1
April
Council Retreat
Council/
Why change?
29-30
LT/PSG
What is BFO?
Council role
POG
Results
May 2
Finalize Results, Teams,
LT/PSG
Issue RFR Instructions
Allocation %/$
May 2-5
Results Teams Meet
RT/PSG
Indicators
Results Maps
May 6
BFO Work Session
LT/RT/PSG
Review indicators
Review Results Maps
May 10
Council Work Session
Council, Budget
Approve results
Advisory Council
Allocations
Review draft indicators and
Results maps
May
Result Teams Meet
Consult with Sellers
11-13
RT/PSG
Develo draft RFRs
May
Draft Instructions for Offers
LT/PSG
11-13
May 16
BFO Work session
LT/RT/
Review RFRs
1-5 pm
Service
Directors/PSG
May 17
Orientation for Sellers
LT/RT/
Offer Instructions
Service
RFRs
Directors/PSG
What makes a good offer
Smart Moves
May
Draft offers
Sellers/PSG
Consultation with RT as desired
18-27
May 27
INITIAL OFFERS DUE
Sellers
May 31-
Results Teams rank offers
RT/PSG
Initial Drilling Platform
June 3
June 3
BFO Work Session: Review
LT/RT/
Draft Drilling Platforms
PSG
June 6
Feedback to Sellers Due
RT
June 13
BEST AND FINAL
OFFERS DUE
June
Result Teams Meet to rank
RT/Sellers
Negotiations with Sellers
13-17
offers
Final Drilling Platforms
June
Review & Approve Final Drilling
LT
20-24
Platforms
June 27
BFO Work session: Presentation
LT/RT/PSG
Final Drilling Platforms
of Draft Budget
Service Directors
Stakeholder Management
Communications
-August 5
Recommended Budget to Printer
Sept. 1
Recommended budget
distributed
Sept. 6
Resolution setting public
hearings
Professional Services Agreement —January, 2005
10
Sept. 13
Council budget study session
Sept. 18
Bud et in Brief published
Sept. 20
Council bud et study session
Sept. 27
Council bud et study session
If needed
Oct. 4
Public Hearin
Oct.11
Council budget study session
If not held, First Reading could
be held Oct. 18; Second
Reading/Adoption November 1st
Nov. 1
Budget Adopted, First reading o
Appropriation Ordinance
Nov. 15
Budget Adopted, Appropriation
Ordinance For 2006
Dec. 23
Adopted budget to the printer
Dec/
Debrief Process and design
All
What worked?
January
improvements for next year
What didn't work?
What were turning points?
Changes for next round
"Dates may change as agreed to by PSG and the City.
Professional Services Agreement —January, 2005
11
Exhibit C
Fort Collins
Budgeting for Outcomes Support
Task and Payment Schedule
Task as Described in the Scope of
Work
Fee
Amount
Invoice
Date
Design BFO Approach
$20,000
4/30/05
Orientation Sessions
Assist Leadership Team
Assist Results Teams
$50,000
5/31/05
Design and Facilitate Sessions
Assist the Sellers
Assist with Ranking and Negotiations
Budget Workshops with the City
Council
$40,000
6/30/05
Recommended Budget
$20,000
8/05/05
Evaluation
$10,000
9/30/05
TOTAL
$140, 000
Plus expenses not to exceed $20,000.
Professional Services Agreement —January, 2005
12
Exhibit "C"
Price
The price for this assistance is $ 140,000.00, plus expenses. We would ask that progress
payments be made at the completion of each task.
Our Guarantee
PSG encourages contracts that are results -oriented and have fixed prices. We like to get paid for
producing results and not for our time.
Because we sell results, we work from clearly stated performance expectations that are mutually
agreed upon at the onset. Our work is focused on producing results that ourcustomer's value, and
we expect them to pay us for those results if, and only if, they are satisfied with our work. If —at
any time, for any reason —our customer is not satisfied with the results we produce,
we should be so notified. If we cannot fix the problem, we do not expect to be paid.
Professional Services Agreement —January, 2005
13
Professional:
City:
With Copy to:
Public Strategies Group, Inc.
City of Fort Collins
City of Fort Collins
Attn: Dr. Camille Cates Barnett
Attn: Purchasing
Attn: City Manager
325 Cedar Street, Suite 710
PO Box 580
PO Box 580
St. Paul, MN 55101
Fort Collins, CO 80522
Fort Collins, CO 80522
In the event of any such early termination by the City, the Professional shall be paid for services
rendered prior to the date of termination, subject only to the satisfactory performance of the
Professional's obligations under this Agreement. Such payment shall be the Professional's sole right
and remedy for such termination.
5. Design, Project Indemnity and Insurance Responsibility. The Professional shall be
responsible for the professional quality, technical accuracy, timely completion and the coordination
of all services rendered by the Professional, including but not limited to designs, plans, reports,
specifications, and drawings and shall, without additional compensation, promptly remedy and
correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold
harmless the City, its officers and employees in accordance with Colorado law, from all damages
whatsoever claimed by third parties against the City; and for the City's costs and reasonable
attorneys fees, arising directly or indirectly out of the Professional's negligent performance of any
of the services furnished underthis Agreement. The Professional shall maintain commercial general
liability insurance in the amount of $500,000 combined single limits.
6. Compensation. In consideration of the services to be performed pursuant to this
Agreement, the City agrees to pay Professional a fixed fee in the amount of One Hundred Forty
Thousand Dollars ($140,000) plus reimbursable direct costs. All such fees and costs shall not
exceed One Hundred Sixty Thousand Dollars ($160,000). Exhibit C is a Task and Payment
Schedule. The parties acknowledge that subcontractor Local Government Solutions Group (LGSG)
is not party to this agreement. Monthly partial payments based upon the Professional's billings and
Professional Services Agreement —January, 2005
2
itemized statements are permissible. The amounts of all such partial payments shall be based upon
the Professional's City -verified progress in completingthe services to be performed pursuant hereto
and upon the City's approval of the Professional's actual reimbursable expenses. Final payment
shall be made following acceptance of the work by the City. Upon final payment, all designs, plans,
reports, specifications, drawings, and other services rendered by the Professional shall become
the sole property of the City.
7. City Representative. The City will designate, prior to commencement of work, its
project representative who shall make, within the scope of his or her authority, all necessary and
proper decisions with reference to the project. All requests for contract interpretations, change
orders, and other clarification or instruction shall be directed to the City Representative.
8. Monthly Report. Commencing thirty (30) days after the date of execution of this
Agreement and every thirty (30) days thereafter, Professional is required to provide the City
Representative with a written report of the status of the work with respect to the Scope of
Services, Work Schedule, and other material information. Failure to provide any required monthly
report may, at the option of the City, suspend the processing of any partial payment request.
9. Independent Contractor. The services to be performed by Professional are those of
an independent contractor and not of an employee of the City of Fort Collins. The City shall not be
responsible for withholding any portion of Professional's compensation hereunder for the payment
of FICA, Workers' Compensation, other taxes or benefits or for any other purpose.
10. Personal Services. It is understood that the City enters into this Agreement based
on the special abilities of the Professional and that this Agreement shall be considered as an
agreement for personal services. Accordingly, the Professional shall neither assign any
responsibilities nor delegate any duties arising under this Agreement without the prior written
consent of the City.
11. Acceptance Not Waiver. The City's approval of drawings, designs, plans,
Professional Services Agreement —January, 2005
3
specifications, reports, and incidental work or materials furnished hereunder shall not in any way
relieve the Professional of responsibilityfor the quality or technical accuracy of the work. The City's
approval or acceptance of, or payment for, any of the services shall not be construed to operate
as a waiver of any rights or benefits provided to the City under this Agreement.
12. Default. Each and every term and condition hereof shall be deemed to be a material
element of this Agreement. In the event either party should fail or refuse to perform according to the
terms of this agreement, such party may be declared in default.
13. Remedies. In the event a party has been declared in default, such defaulting party
shall be allowed a period of ten (10) days within which to cure said default. In the event the default
remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek
damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail
himself of any other remedy at law or equity. If the non -defaulting party commences legal or
equitable actions against the defaulting party, the defaulting party shall be liable to the non -defaulting
party for the non -defaulting party's reasonable attorney fees and costs incurred because of the
default.
14. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire
agreement between the parties and shall be binding upon said parties, their officers, employees,
agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal
representatives, successors and assigns of said parties.
15. Law/Severability. The laws of the State of Colorado shall govern the construction,
interpretation, execution and enforcement of this Agreement. In the event any provision of this
Agreement shall be held invalid or unenforceableby any court of competentjurisdiction, such holding
shall not invalidate or render unenforceable any other provision of this Agreement.
THE CITY OF FORT COLLINS, COLORADO
By:
Professional Services Agreement —January, 2005
4
THE
BY:
P—
iar B. O'Nei I II, CPPO, FNIGP
Direct r of urchasin & Risk Management
DATE:
5 Zo C)
ti
AST*
sty
APPROVED ? I
Public Strategies Group, Inc.
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date: �ZZIZQ S
�I
A
(Corporate Seal)
Corpor to Secretary
Professional Services Agreement —January, 2005
5
Exhibit "A"
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 includesthe City Managerand 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, PSGwill also assist with stakeholder issues. We will encourage
the Leadership 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.
Professional Services Agreement —January, 2005
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, PSGwill review financial information prepared by FortCollins 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, Communications 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 their 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 Requestfor 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
Professional Services Agreement —January, 2005
PSG will design and facilitate four 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 expectedto present specific deliverablesas 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 Govemment 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 process to
prepare and complete the 2006-2007 City budget.
Task 1—Evaluation
PSG will assist in evaluating the effectiveness of BFO in Ft. Collins and will assist in developing
design criteria for the next year's process.
The PSG Team
Dr. Camille Cates Barnett will lead the PSG team. Other PSG partners will be assigned to the project
as needed. The PSG team will also include Mike Freeman and Chris Fabian of the Local Government
Solutions Group (LGSG) who are familiar with Ft. Collins and well versed in local government and
this new approach to budgeting. Members of the PSG Network will be added as necessary.
Biographical data is attached for Dr. Barnett and Mr. Freeman.
Professional Services Agreement —January, 2005
Exhibit "B"*
FORT COLLINS WORK PLAN
BUDGETING FOR OUTCOMES
The Public Strategies Group
DATE
ACTIONCOMMENTS
April
Planning Session
Leadership Team/
ID reasons for change
11-12
PSG
Develop draft work plan
ID leadership team
Draft Outcomes
ID Result Team leaders,
members and facilitators
Develop Procurement Vehicle
April
Calculate POG
Staff
13-15
Update financial briefing
April
Design Council Retreat
City Manager, Staff,
Conference call(s)
18-22
Consultant,
PSG
April
Develop draft
Communications
18-22
Communications Plan
Team
April 18-21
Identify additional team members
City Manager/ Service
Directors
April
Notify potential team members
Leadership Team
22
April 25
BFO Orientation for Group of 137
LT/PSG
Why change?
9-12 noon
(Plus budget staff, facilitators &
Get a Grip
any other team members)
POG
What is BFO?
Work Plan
April 25
Approve work plan
LT/PSG
1-5
Approve charter for the
Leadership Team
Approve Charter for the Results
Teams
Approve initial results
Approve Communications Plan
April 27
Work Session with Teams
LT/ Results Teams/
Work plan
9am-5pm
facilitators/
Charters
PSG
Results
Indicators
Results Maps
RFR Instructions
Professional Services Agreement —January, 2005