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HomeMy WebLinkAbout499249 110% LLC - CONTRACT - AGREEMENT MISC - 110% LLCProfessional Services Agreement Recreation Strategic Plan Page 1 of 28 PROFESSIONAL SERVICES AGREEMENT THIS 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 110 Percent LLC, 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 accordance with the scope of services attached hereto as Exhibit "A", consisting of fifteen (15) pages, and incorporated herein by this reference. Irrespective of references in Exhibit A to certain named third parties, Professional shall be solely responsible for performance of all duties hereunder. 2. The Work Schedule. The services to be performed pursuant to this Agreement shall be performed in accordance with the Proposed Timeline included hereto in Exhibit "C", consisting of two (2) pages, and incorporated herein by this reference. 3. Contract Period. 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, 2014. 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. Notwithstanding the 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. Professional Services Agreement Recreation Strategic Plan Page 2 of 28 All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: Professional: City: Copy to: 110 Percent LLC Attn: Jamie S. Sabbach P.O. Box 21541 Boulder, CO 80308 jsabbach@110percent.net City of Fort Collins Attn: Bob Adams, Recreation Director PO Box 580 Fort Collins, CO 80522 City of Fort Collins Attn: Purchasing Dept. PO Box 580 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 under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $500,000 combined single limits, in accordance with Exhibit “B” consisting of one (1) page, attached hereto and incorporated herein. 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 Sixty Thousand Seven Hundred Dollars ($60,700.00) outlined by the Proposed Fee included in Exhibit C, consisting of two (2) pages, which includes reimbursable direct costs. In Professional Services Agreement Recreation Strategic Plan Page 3 of 28 addition, the City may also elect to authorize the Professional to perform the additional work as outlined in Exhibit C as Optional Task, at the sole option of the City. In the event the City elects to engage the Professional for the Optional Task, the fee and cost shall not exceed Five Thousand Two Hundred Dollars ($5,200.00) for the Optional Task as outlined in Exhibit C. Monthly partial payments based upon the Professional's billings and itemized statements are permissible. The amounts of all such partial payments shall be based upon the Professional's City-verified progress in completing the 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 Professional Services Agreement Recreation Strategic Plan Page 4 of 28 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. Subcontractors. Service Provider may not subcontract any of the Work set forth in the Exhibit A, Statement of Work without the prior written consent of the city, which shall not be unreasonably withheld. If any of the Work is subcontracted hereunder (with the consent of the City), then the following provisions shall apply: (a) the subcontractor must be a reputable, qualified firm with an established record of successful performance in its respective trade performing identical or substantially similar work, (b) the subcontractor will be required to comply with all applicable terms of this Agreement, (c) the subcontract will not create any contractual relationship between any such subcontractor and the City, nor will it obligate the City to pay or see to the payment of any subcontractor, and (d) the work of the subcontractor will be subject to inspection by the City to the same extent as the work of the Service Provider. 12. Acceptance Not Waiver. The City's approval of drawings, designs, plans, specifications, reports, and incidental work or materials furnished hereunder shall not in any way relieve the Professional of responsibility for 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. 13. Default. Each and every term and condition hereof shall be deemed to be a material Professional Services Agreement Recreation Strategic Plan Page 5 of 28 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. 14. 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. 15. 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. 16. 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 unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. 17. Prohibition Against Employing Illegal Aliens. Pursuant to Section 8-17.5-101, C.R.S., et. seq., Professional represents and agrees that: a. As of the date of this Agreement: 1. Professional does not knowingly employ or contract with an illegal alien who will perform work under this Agreement; and Professional Services Agreement Recreation Strategic Plan Page 6 of 28 2. Professional will participate in either the e-Verify program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, administered by the United States Department of Homeland Security (the “e-Verify Program”) or the Department Program (the “Department Program”), an employment verification program established pursuant to Section 8-17.5-102(5)(c) C.R.S. in order to confirm the employment eligibility of all newly hired employees to perform work under this Agreement. b. Professional shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that knowingly employs or contracts with an illegal alien to perform work under this Agreement. c. Professional is prohibited from using the e-Verify Program or Department Program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. d. If Professional obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Professional shall: 1. Notify such subcontractor and the City within three days that Professional has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and 2. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Professional shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not Professional Services Agreement Recreation Strategic Plan Page 7 of 28 knowingly employed or contracted with an illegal alien. e. Professional shall comply with any reasonable request by the Colorado Department of Labor and Employment (the “Department”) made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. f. If Professional violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Professional shall be liable for actual and consequential damages to the City arising out of Professional’s violation of Subsection 8-17.5-102, C.R.S. g. The City will notify the Office of the Secretary of State if Professional violates this provision of this Agreement and the City terminates the Agreement for such breach. 18. Special Provisions. Special provisions or conditions relating to the services to be performed pursuant to this Agreement are set forth in Exhibit "D" - Confidentiality, consisting of one (1) page, attached hereto and incorporated herein by this reference. Professional Services Agreement Recreation Strategic Plan Page 9 of 28 EXHIBIT A SCOPE OF WORK & DELIVERABLES The scope of work as outlined will be led by the Professional, 110 Percent LLC; and ePRepSolutions LLC, as their subcontractor; both of Boulder, Colorado. Jamie Sabbach of 110 Percent LLC will act as project manager for the Professional. PHASE 1: FORT COLLINS RECREATION DEPARTMENT’S STRATEGIC ACTION PLAN To be sustainable, organizations must regularly examine and adjust their strategies as situations change and opportunities arise. Today, scarce resources and constantly shifting economic and societal conditions are forcing many organizations to reconsider their current strategies or to explicitly undertake strategy development for the first time. All indications are that future success will require much more rapid strategic rethinking and repositioning than are now the norm. At present, most public and non-profit organizations frequently look to traditional strategic planning as the primary tool for forming strategies. Strategic planning is generally described as an inclusive, collaborative process that involves the following activities:  Developing an understanding of the organization’s history,  Rigorously assessing and developing consensus on organizational values, mission, and vision,  Systematically examining internal and external environments,  Identifying the goals that will mark alignment with values, satisfaction of mission, and advancement of vision with consideration of the organization’s resources; and  Determining ways (actions) to achieve these goals. Ideally, strategic planning should make the organization more “strategic” – that is, better able to meet the challenges of a dynamic environment. Experts stress that the most important outcome of strategic planning is to instill strategic thinking in the organization; they generally agree that strategic planning is only useful if it built upon a strong foundation of values, mission and vision, supported and championed by critical staff and leadership, and supports strategic thinking which leads to action. Professional has facilitated strategic planning processes for many organizations. Professional Professional Services Agreement Recreation Strategic Plan Page 10 of 28 has seen the benefits of strategic planning, particularly as it solidifies and motivates staff and board around the organization’s values, mission and vision, and creating or strengthening a culture of strategic thinking and management. A solid strategic planning process encourages communication and inclusiveness, which is especially important in organizations that have a formal, top-down culture; are not communicative; or are stuck in the past and reluctant to change. The illustration provides a visual overview of the strategic action planning development process. STRATEGIC ACTION PLAN SCOPE OF WORK Step 1- Project Initiation Meeting The project officially kicks-off via a Project Initiation Meeting with the City’s pre-determined Project Team. A thorough review of the process will take place at this meeting including the formalization of timeline and details. This will include: approval of the proposed process and tasks; anticipated number and types of meetings and/or workshops; review of information and data requested of the City including current planning documents, and other relevant materials that will assist the Professional’s consulting team in the evaluation and assessment of the City; and expected quality and format of all deliverables. In addition, Professional will ensure staff optimization and efficiency by determining how best to manage and coordinate workshops and meetings. Logistical requirements:  Active participation from the City’s Project Team Scheduling considerations:  1 ½-2 hour Project Initiation Meeting Step 2 - Department Information & Data Collection Among the most important elements of the process is the Professional’s acquisition of knowledge about the City in order to effectively manage and lead the project, and to begin to conduct an internal environmental scan. The City’s pre-determined Project Team will be asked to submit various organizational resources. An Information and Data Request Form will be distributed by the Professional to the Project Team as part of the Project Initiation Meeting and will guide the Team in the collection and submission of these materials. Resources requested of the Project Team will include the following.  Previous strategic and operational planning efforts  Current agency values, mission (or purpose) and vision statements – if available  Department’s organizational chart(s)  Recent survey reports illustrating and articulating community interests and need  Recent recreation program guides (past two years)  Current service area partnership/collaboration agreements  Current Joint Facility Use Agreements  Financial data including cost recovery and subsidy (tax use) levels In addition, City staff (and Board members if deemed appropriate) will be asked to complete a Strategic Action Planning Worksheet in advance of Workshop I (Step 3a) to gain individual Professional Services Agreement Recreation Strategic Plan Page 11 of 28 perspectives relative to past planning efforts, thoughts concerning the state of the City’s Recreation Department, etc. Step 3a - Stakeholder Engagement - Workshop I #1) This initial staff engagement phase of the project provides a comprehensive overview of the process to all City staff and to the Board (if deemed appropriate) via planning workshops developed for both stakeholder groups. This includes not only an introduction of the Strategic Action Plan development process, but it also provides an opportunity for City staff and the Board to:  become familiar with the purpose and intended outcomes of the project;  engage in discussion regarding the preliminary identification of the key issues the Recreation Department is currently facing;  evaluate the effectiveness of past practices;  develop or re-engineer City values, mission and vision; and  engage in discussion regarding City successes, strengths and weaknesses (SWOT analysis – internal influences), and inherent challenges and future opportunities (SWOT analysis – external influences). Planning Workshop I allows for feedback from those who know the system, constituencies, and operations best (City staff and Board) and establishes a baseline from which to ultimately build the Strategic Action Plan. This assessment of the current state and condition of the City’s Recreation Department is necessary in order to move forward responsibly and effectively. The thoughtful review and analysis of Workshop results, including City guiding principles and resources will complement the knowledge acquired by the Professional in the assessment of the information and data collected in Step 2 of the process. Logistical requirements:  Workshop(s) space conducive to a positive learning environment (e.g., well-lit, open, chairs and tables for attendees, good acoustics)  Set-up to include: chairs and tables for attendees set-up in a u-shape, head table, table for AV  LCD projector, extension cord, and surge protector Scheduling considerations:  Six (6) hour workshop (e.g., 8 a.m. – 3 p.m. with breaks including lunch); Three (3) hour Board workshop (e.g., 6 – 9 p.m. with working dinner) Step 3b - Stakeholder Engagement - Focus Group Meetings & Community Survey Meaningful stakeholder engagement, done well, is a broad, inclusive, and continuous process between an organization and those impacted by the organization. Recognizing the business and reputational risks that come from poor stakeholder relations, solid planning efforts place an emphasis on listening, social responsibility, transparency and reporting. In this context, good stakeholder relations are a prerequisite for good management. The comprehensive stakeholder engagement process outlined below is intended to further inform the development of the City of Fort Collins Recreation Department’s Strategic Action Plan. Community representatives, and City staff and governance, via a series of focus group and community workshops, will provide personal perspectives relative to community needs, issues Professional Services Agreement Recreation Strategic Plan Page 12 of 28 and interests as they relate to the current and future operations of the City. City Staff Focus Groups City staff focus groups provide important interaction and are key to the success of the process. Minimally, these small group interviews with City staff representing work units/areas at all levels of the organization provide a more in-depth understanding of the challenges and opportunities facing the City’s Recreation Department. Additionally, they give City staff an opportunity to be involved in the process in a deeper way, thereby increasing their investment, interest, and "buy- in." Community Focus Groups Community focus groups are planned to include community representatives, leadership, and others who can contribute valuable perspectives and insights about the community and City. Focus groupings will be determined (at the discretion of the City’s Project Team and/or Director), as will all other logistical considerations such as meeting locations and best practices to ensure solid attendee turnout. Information gathering focus groups (ideally no more than 12 -15 persons per focus group) will be facilitated with a goal of representation from the following community agencies and organizations, and groups including but not limited to: a. Board Members (dispersed to avoid quorum if necessary) b. Various leadership representing the greater Fort Collins community c. Community organization representatives (e.g., youth sport organizations, school district reps) d. Business leaders e. Recreation users to include a solid cross-representation of the Fort Collins community f. Non-users (ideally) Community Survey (web based, non-statistically valid) A community survey (Survey Monkey) will be distributed via a series of City contacts and distribution lists to complement and affirm, challenge and/ or supplement opinions and viewpoints shared during staff and community focus groups. Information gathering efforts during staff and community focus groups, and community workshops will include emphasis on the following.  Existing and anticipated community issues, need and interests including shifting demographics  Key issues the City and community are currently facing and are expected to face in the next three to five years  Service (including facilities) delivery methods and quality – levels of service  Operational resources  Marketing and community engagement efforts  Alternative providers/competitive analysis Logistical requirements:  City assistance in logistical coordination of Focus Group meeting locations including scheduling and set-up, contacts, etc. Professional Services Agreement Recreation Strategic Plan Page 13 of 28  City responsibility for duplication and distribution of supplied informational materials to stakeholders  City responsibility for collecting distribution contacts and lists for the distribution of the survey  Meeting(s) space conducive to a positive learning environment (e.g., well-lit, open, chairs and tables for attendees, good acoustics)  Set-up to include: chairs and tables for attendees set-up in a u-shape, head table, table for AV  LCD projector, extension cord, and surge protector Scheduling considerations:  Recommend 6 focus group meetings (75 minutes each), and a web -based, non-statistically valid survey with no more than a four week “release to collection” time frame Step 4 - Community Resource & Trends Analysis Often overlooked, existing community resources are critical to any assessment or planning effort. In the City’s case, there are various relevant and recent documents that will inform the process. These include but are not limited to the following:  Available and current US Census or ESRI demographic data which analyzes the Fort Collins community and surrounding areas  Relevant community documents providing supplemental community profile information (e.g., State of Colorado Health Report, Poudre School District Annual Report) A thorough review of the documented resources as listed above begins to create a focused image of the Fort Collins community, the City’s operational service delivery practices that align with community need, and service gaps that may exist. Complementing the analysis of the community profiles and the City’s operational and planning resources are local, regional and national trends affecting the delivery of recreation and park services. These trends will be assessed to create connectivity to the intended results of this process. The Community Resource and Trends Analysis (Step 4) further informs the opportunities and threats (SWOT analysis – external influences) that are identified by City staff and the communities (Steps 3a & 3b) that the City must acknowledge and address as part of the development of the Strategic Action Plan. Step 5 - Developing the Strategic Action Plan - Workshop II As a result of all work completed, the Fort Collins Recreation Department will begin to develop informed strategy for maximum benefit. The Strategic Action Plan will be fully operationalized, going beyond simple strategies and broad based goals by defining City actions and other criteria required to fully implement strategy and measure progress including:  Identified key strategic areas and issues  Goals  Action statements  Timelines  Accountability  MetCity Professional Services Agreement Recreation Strategic Plan Page 14 of 28 City Recreation Department staff Sample Strategic Action Plan excerpt – Carol Stream (IL) Park District (and Board members as appropriate) will participate in two, full day workshops / meetings that will include review of all work completed to date with a focus on Strategic Action Plan development and staff responsibilities for implementation and evaluation. The following framework will guide the workshop that aligns with Professional’s Operational Assessment and Strategic/Action Plan Development Process. I. Review of recurring themes resulting from Strategic Planning Worksheets, staff, Board, and community focus groups and community survey feedback, and information and data assessment II. Clarifying organizational values, mission, and vision III. Environmental scan (SWOT, trends, market, financial analyses, etc.) IV. Strategic Action Plan development a. Identifying organizational priorities and key strategic areas and issues b. Defining operational goals and measurable objectives V. Strategic Action Plan implementation – taking action VI. Strategic Action Plan evaluation and assessment a. Identifying success criteria and indicators Logistical requirements:  Meeting(s) space conducive to a positive learning environment (e.g., well-lit, open, chairs and tables for attendees, good acoustics)  Set-up to include: chairs and tables for attendees set-up in a u-shape, head table, table for AV  LCD projector, extension cord, and surge protector Scheduling considerations:  Two, Six (6) hour workshops (e.g., 8 a.m. – 3 p.m. with breaks including lunch) Step 6: Presenting the Strategic Action Plan Two presentations, one each to City staff and the Board will be given. These presentations will provide a process overview, report of the formative draft of the Plan, and an opportunity for each group to provide comments and suggested amendment(s). As a result, a final Strategic Action Plan and supplemental deliverables will be presented to the City. Professional Services Agreement Recreation Strategic Plan Page 15 of 28 PHASE 2: SERVICE ANALYSIS & FINANCAL STRATEGIES PROCESS In response to the City of Fort Collins Recreation Department’s interests in a thorough study, in- depth analysis and subsequent recommendations for its current recreation services, the Service Analysis & Financial Strategies (SAFS) planning process will be administered. The Service Analysis & Financial Strategies (SAFS) planning process is a highly touted methodology that has been endorsed through a partnership with the International City and County Management Association’s (ICMA) Strategic Initiatives Division. It is the mechanism by which many parks and recreation agencies are choosing to analyze their services based upon their market, financial, and competitive positions. The SAFS process is an action based strategy that provides a thorough and comprehensive analysis of those services the City of Fort Collins Recreation Department wishes to assess. It strategically identifies which services the agency should be in the business of providing and how best to provide those services efficiently and effectively, challenging the notion that public sector agencies can realistically be all things to all people (so-called “mission creep”). The process is based upon service alignment with the following four criteria. 1. Alignment with Organizational Purpose 2. Financial Viability 3. Market Position 4. Competitive Position These four key indicators are used to conduct a thoughtful and responsible evaluation of recreation services the City’s Recreation Department provides or may provide in the future. This revolutionary process is leading agencies across the country to “do things right”, delivering higher-quality services in a focused way, reducing wasteful, unnecessary duplication and investing in those services which align with community values, meet a community need, or provide an opportunity for return on investment. Questions that must be addressed throughout the process (detailed on the following page) direct the City to make informed recommendations concerning current offerings and ultimately, act as a standard for future service development and delivery. The SAFS process is fast becoming the new, cutting-edge business model for public parks and recreation – one that guides agencies towards increased revenues, cost savings, staff optimization and financial resilience. Financial Viability - Is the service self-sustaining or does it have the capacity to be? What we need to know to determine the current and future financial viability of a service: 1. What is the total cost to provide the service? Per person? 2. What is the current cost recovery level of the service? 3. Does it meet current cost recovery goals? If no, why? Professional Services Agreement Recreation Strategic Plan Page 16 of 28 o Is the target market interested enough (based upon current expressed interest and participation) that there would be allowance for fee increases? o Are there opportunities to solicit sponsorships? o Are grants readily available? o Are donations a realistic option? o Can you reduce personnel costs by enlisting the service of volunteers? o Do potential partners exist? Could the agency partner to provide the service while investing less resource? 4. How much tax subsidy is required to provide the service? Per person? 5. Does the service provide an opportunity to generate additional revenues and if so, to what degree? 6. Does the service have the potential to generate excess revenues above what it costs or become a profit center? Market Position – what is the service’s current market position? What we need to know to determine the current and future market position of a service: 1. Does the service align with customers’ values (important), interests (need), and actions (participation)? 2. Does it have the capacity to address a community issue? 3. Who specifically are the service’s target market(s)? 4. What are past and current participation patterns and trends (if an existing service)? [Note: It is best practice to count participants (individual users) versus participations (counting individuals more than one time for participating in or attending the same service.] 5. Does the service have a waiting list? If yes, how extensive? o For how long? o Can the “excessive demand” translate to an opportunity to increase fees and charges? 6. Is registration for or participation in the service below 75% maximum capacity? If yes, why? o For how many sessions/seasons/years has it been below 75% capacity? o Does continuing to provide the service below 75% capacity allow the agency to achieve cost recovery goals? 7. Where do participants reside in relation to service location? 8. Is the service provided at a convenient location in relation to the target market (walking/drive time)? If not, why? o Can the service reasonably and responsibly be re-located to a more convenient location? 9. What are customer satisfaction levels as it relates to service delivery efforts? Competitive Landscape – how much competition exists and to what degree? What we need to know to determine the current and future competitive position of a service: Professional Services Agreement Recreation Strategic Plan Page 17 of 28 1. Does agency staff have the skill sets necessary for quality service delivery? 2. Does the agency have the physical resources and infrastructure necessary for quality service delivery? 3. What other agencies or organizations provide similar or like services? o Do they serve the same target market(s)? o Do they provide similar program formats? o What is their level of service quality? o What do they charge for these same services? o Do their locations provide the same level of convenience (e.g., walking/drive times)? Once the SAFS process is completed, resulting financial strategies include the following. Invest – services that provide for a revenue enhancement opportunity. Excess revenues can be redistributed to subsidize “social good” services, or to services that can provide for a financial return on investment. Collaborate – an opportunity to eliminate unnecessary duplication of service. Collaborative efforts provide for efficient and effective utilization of limited resources. Divestment – allows for reallocation of savings to subsidize “social good” services, or to services that can provide for financial return on investment. Subsidy Required – justifies and warrants the use of tax dollars to provide services that contribute to a greater “social good”, producing a benefit to a community or constituency. “Cost of Doing Business” Assessment - PASS™ A critical preliminary step in the Service Analysis process is the assessment of the cost to provide each of the recreation services the City wishes to assess. The Professional’s team will administer PASS™, a proprietary software that identifies the real cost of service provision – both direct and indirect costs. The data and information which result from PASS™ is critical to informing financial management decisions including appropriate and equitable fees and charges. PASS™ requires that all costs associated with the delivery of each individual program, event, facility, etc. be accounted for, with the end result being a comprehensive and true view of each recreation service’s financial position. Professional Services Agreement Recreation Strategic Plan Page 18 of 28 The necessity for a financial management tool like PASS™ has grown exponentially in recent years due to the overall downturn in the economy and the resulting stagnation of parks and recreation budgets, as well as increased interest in governmental and non‐ profit agency accountability. The outdated and simplistic tools currently utilized by many agencies are incapable of dealing with this confluence of events. Additionally, the staff time necessary to cost account to the level most agencies would like presents an overwhelming proposition as staff resources have been reduced or stretched critically thin. PASS™ utilizes existing data to determine the real costs of service provision as well as operational information such as true cost recovery and subsidy (tax) allocation levels. This information then leads to making better informed decisions concerning fees and charges, operating hours, and other important operational information that affects the “bottom line”. The PASS™ process results in more than 50 reports that can be used to guide future strategic decision making. These reports include the following types of data and information:  Current cost recovery and subsidy allocation levels by individual service (including all costs).  Realistic cost recovery goals based upon current baselines  Recommended minimums and maximums based upon current cost recovery levels  Recommended fees and charges This accurate cost accounting information provides the basis for informed and justifiable financial management decisions such as defensible fees and charges, achievable cost recovery goals, etc. This type of quality data and information can be incredibly useful when communicating the City of Fort Collins Recreation Department’s true financial position to leadership and constituents. The Service Analysis & Financial Strategies (SAFS) planning process results in critical outcomes and outputs that can have powerful impacts on the overall fiscal health and welfare of the City’s Recreation Department. Professional Services Agreement Recreation Strategic Plan Page 19 of 28 Sample Service Menu – Bend (OR) Park and Recreation District Examples of the outcomes and outputs resulting from the process include but are not limited to the following.  Cost of Doing Business – the comprehensive process requires the identification of the “cost of doing business” for identified City Recreation Department services. The analysis includes the application of PASS™, a patent-pending financial management and planning application which identifies the real cost of doing business for each individual service (direct and indirect costs). This unique application works with existing budgeting and parks and recreation software programs (i.e., CLASS, Rec Trac) to provide an automated, sophisticated and fool-proof cost accounting effort leading to identifying accurate cost recovery and subsidy levels, fees and charges, and other financial data.  Pricing Strategies and Methods –the analysis results in the development of logical and rationale pricing strategies including establishing fees and charges by individual service based upon either a cost recovery pricing philosophy; market pricing philosophy; or competitive pricing philosophy.  Revenue Generating Opportunities - the analysis results in the identification of opportunities to generate revenues above and beyond what the agency has already done (e.g., partnerships and collaborations, re-assessment of current pricing methods).  Service Categories – the analysis inherently requires the development of Service Categories. The development of categories which include like services are important when it comes to justifiable and equitable allocation of subsidy, cost recovery levels, and assignment of budget and general ledger lines to account for a category’s fiscal performance.  Core Businesses –the analysis assists agencies in the identification of “core” or “essential” services. In the case of public parks and recreation, these business lines can mean those services which provide the greatest “social good”, or those services which are “profit centers” generating excess revenues with the intention of helping create financial resilience (through reallocation of excess revenues to subsidized services) and growth. The City’s Recreation Department will also receive Service Menus that include justifiable and defensible financial management strategies (e.g., investment, collaboration) and recommended pricing methods. The example at right illustrates a Service Menu example. Professional Services Agreement Recreation Strategic Plan Page 20 of 28 SERVICE ANALYSIS & FINANCAL STRATEGIES PROCESS SCOPE OF WORK Step 1: Workshop I - Introduction to the Service Analysis/ PASS™ Process This City Staff Workshop will provide all staff a comprehensive overview of the Service Analysis and PASS™ process including the following. Explanation and detailed description of the Service Analysis methodology (Service Analysis & Financial Strategies (SAFS) ) including what the process entails, how it works, and intended results City staff will create the City’s Categories of Service (i.e., Non-competitive Activities versus Intro to Gymnastics). [NOTE: The benefits to this approach are two-fold. First, it is inefficient for an agency to determine cost recovery levels by each individual service, and second and most importantly, categorizing by “type of service” or “likeness of service” discourages attempts to determine fees and charges (and therefore) cost recovery decisions based upon special interests or individual values.] A comprehensive review of PASS™ and how its use leads to a thorough evaluation of existing cost of service provision and equitable fees and charges, and how results can be used to make informed financial decisions moving forward A review of City staff’s roles and responsibilities moving forward Logistical requirements:  Workshop(s) space conducive to a positive learning environment (e.g., well-lit, open, chairs and tables for attendees, good acoustics)  Set-up to include: chairs and tables for attendees set-up in a u-shape or herringbone facing front, head table, table for AV  Water for attendees  Refreshments and snacks for attendees  LCD projector, extension cord, and surge protector (for presentation) Scheduling considerations:  Six (6) hour workshop (e.g., 8 a.m. – 3 p.m. with breaks including lunch) Step 2: Service Information & Data Collection This phase of the process consists of data and information collection. The City will receive a comprehensive and detailed Data and Information Request document to guide the collection process. During this phase, the Professional’s team will be available via email and/or phone, and can schedule phone conferencing when deemed appropriate to assist and guide City staff as they collect this relevant and critical information. Logistical requirements:  Cooperation from all City staff in collection and submittal of requested materials – a Data and Information Request document will be submitted to City staff  Intermittent availability of staff to answer questions and share viewpoints  Phone conference meeting with the City’s designated Project Team to communicate progress, questions, etc. Step 3: “Cost of Doing Business” Analysis - PASS™ Development Once all required data and information has been compiled and submitted, the PASS™ Professional Services Agreement Recreation Strategic Plan Page 21 of 28 development process can begin. While building PASS™ the Professional’s team will remain in regular contact with the City’s Project Lead to share development updates, to gain clarification as necessary, and to gather further relevant information and data as needed. This communication will be conducted via email and/or phone, and phone conferencing can be scheduled when deemed appropriate. Logistical requirements:  Intermittent availability of City staff to answer questions and share perspectives  Phone conference meeting with the City’s designated Project Team to communicate progress, questions, etc. Step 4: Staff Workshop II As a result of all work to date, Staff Workshop II will be held. This workshop will result in the following. City Staff will receive a review of all reports generated through PASS™ and how the data and information can be used to assist in the Service Analysis process (specifically, how the data will inform the assessment of each service’s financial condition and viability, and ultimately, how the data will direct the City in its efforts to develop appropriate and equitable fees and charges, and realistic cost recovery goals). City Staff will receive an overview of the Service Analysis process in order to gain a deeper understanding of what work they will need to complete for the next phases of the process. If the City chooses to develop a Cost Recovery Model, City staff will provide their professional perspectives of each recreation service’s “public good” or “private good”. Essentially, they will make recommendations concerning the “benefit” derived from each service to the community versus the individual user. [City Staff input provides strong evidence to support the use (or non-use) of tax dollars to subsidize certain services.] To complement staff perspectives relative to the “public good” versus “private good” of services, a comprehensive review and analysis of current cost recovery levels (based upon existing agency data and the completion of PASS™) will provide baselines for the development of realistic and achievable two-three year cost recovery goals for each Category of Service, and ultimately, a Cost Recovery Model if the City so chooses. *NOTE: In the event the City elects to develop a Cost Recovery Model as part of this process, a series of external stakeholder meetings/workshops will be scheduled (upon request) during this site visit to enlist public opinion concerning the “public good” or “private good” of City services. This approach provides a complement to City staff opinion and creates a comprehensive review of stakeholder perspectives. [Board and/or Council members will be encouraged to participate in this step of the process per direction from the Project Team or City Project Director.] Logistical requirements:  Workshop(s) space conducive to a positive learning environment (e.g., well-lit, open, chairs and tables for attendees, good acoustics, ample electrical outlets for attendee laptops – one per agency)  Set-up to include: chairs and tables for attendees set-up in a u-shape, head table, table for AV  Water for attendees  Refreshments and snacks for attendees Professional Services Agreement Recreation Strategic Plan Page 22 of 28  LCD projector, extension cord, and surge protector (for presentation) Scheduling considerations:  Six (6) hour workshop (e.g., 8 a.m. – 3 p.m. with breaks including lunch) Step 5: Service Information & Data Collection [continued] City Staff will be directed to provide information and data in response to Service Analysis and Financial Strategies Matrix criteria and questions (a Service Inventory database will be used to guide City staff in data and information collection). Additionally, City staff will be directed to utilize various resources as they gather relevant data and information including, but not limited to the following.  Service evaluation and survey reports  Past years’ recreation/service guides  Registration/participation data from past three to five years (summary reports only)  Current target markets  Demographic information and data  Known competitors Logistical requirements:  Cooperation from all City staff in collection and submittal of requested materials – a Service Inventory Database resource will be available to City staff  Intermittent availability of City staff to answer questions and share viewpoints  Phone conference meeting with the City’s designated Project Team to communicate progress, questions, etc. Step 6: Staff Workshop III Facilitated Service Area Workshops held for each work unit or function area of the City (e.g., aquatics, adult sports, seniors) will be held beginning with a brief review of the process to date. Immediately following review, City staff will evaluate and assess (with guidance and direction from the consulting team) each service in their respective area utilizing all of the data and information compiled as a result of their resource collection efforts through the Service Analysis and Financial Strategies Matrix . Logistical requirements:  City responsibility for duplication and distribution of supplied informational materials to staff  Workshop(s) space conducive to a positive learning environment (e.g., well-lit, open, chairs and tables for attendees, good acoustics, ample electrical outlets for attendee laptops – one per service area)  Set-up to include: chairs and tables for attendees set-up in a u-shape, head table, table for AV  Water for attendees  Refreshments and snacks for attendees  LCD projector, extension cord, and surge protector(for presentation) Scheduling considerations (if all Options are selected):  Six (6) hour workshop (e.g., 8 a.m. – 3 p.m. with breaks including lunch) Professional Services Agreement Recreation Strategic Plan Page 23 of 28 Presentation of Results At the conclusion of the process, a summative (final) presentation will be made to all City staff, and can be made (at the discretion of the City’s Project Team and/or Director) at a scheduled Advisory Board or City Council meeting disseminating the results of all work completed. Resulting Deliverables Comprehensive, detailed information will be provided to the City based upon all project work as identified and confirmed in this proposal and in the Project Initiation Meeting. Professional’s Deliverables will include the following items. An illustrative report will be presented to the City which will include the following. 1. A summative report as a result of all workshops, focus group meetings, and community survey 2. Updated, enhanced and/or revised values, mission and vision statements 3. A Strategic Action Plan with organizational priorities, key issues, goals, and measurable objectives 4. Analytic reports that articulate and illustrate the “true” cost of service provision for each selected service unit of the City (indirect and direct costs) as well as accurate subsidy and cost recovery levels by service. 5. Service Menus for recreation services provided by and through the City. These menus will include recommended financial strategies (e.g., invest for expected return, collaborate, divest) as well as recommended pricing strategies. 6. Assessment tools that will allow staff to evaluate the relevancy and effectiveness of recreation services in the future. In a commitment to sustainable practices, an electronic version of the final report will be provided to City of Fort Collins Recreation Department. Hard copies will be provided for an additional fee, if desired. Professional Services Agreement Recreation Strategic Plan Page 24 of 28 EXHIBIT B INSURANCE REQUIREMENTS 1. The Service Provider will provide, from insurance companies acceptable to the City, the insurance coverage designated hereinafter and pay all costs. Before commencing work under this bid, the Service Provider shall furnish the City with certificates of insurance showing the type, amount, class of operations covered, effective dates and date of expiration of policies, and containing substantially the following statement: "The insurance evidenced by this Certificate will not be cancelled or materially altered, except after ten (10) days written notice has been received by the City of Fort Collins." In case of the breach of any provision of the Insurance Requirements, the City, at its option, may take out and maintain, at the expense of the Service Provider, such insurance as the City may deem proper and may deduct the cost of such insurance from any monies which may be due or become due the Service Provider under this Agreement. The City, its officers, agents and employees shall be named as additional insureds on the Service Provider's general liability and automobile liability insurance policies for any claims arising out of work performed under this Agreement. 2. Insurance coverages shall be as follows: A. Workers' Compensation & Employer's Liability. The Service Provider shall maintain during the life of this Agreement for all of the Service Provider's employees engaged in work performed under this agreement: 1. Workers' Compensation insurance with statutory limits as required by Colorado law. 2. Employer's Liability insurance with limits of $100,000 per accident, $500,000 disease aggregate, and $100,000 disease each employee. B. Commercial General & Vehicle Liability. The Service Provider shall maintain during the life of this Agreement such commercial general liability and automobile liability insurance as will provide coverage for damage claims of personal injury, including accidental death, as well as for claims for property damage, which may arise directly or indirectly from the performance of work under this Agreement. Coverage for property damage shall be on a "broad form" basis. The amount of insurance for each coverage, Commercial General and Vehicle, shall not be less than $500,000 combined single limits for bodily injury and property damage. In the event any work is performed by a subcontractor, the Service Provider shall be responsible for any liability directly or indirectly arising out of the work performed under this Agreement by a subcontractor, which liability is not covered by the subcontractor's insurance. C. Automobile Liability: Service Provider shall not be required to obtain commercial automobile liability insurance, in addition to state-mandated personal automobile insurance, as long as Service Provider does not charge the City for travel time, shall not claim to be in the service of the City at such travel times, shall not drive an automobile or cause the Service Provider’s automobile to be driven or present on City property (other than City street or public parking lots); and shall not operate a commercial vehicle. Professional Services Agreement Recreation Strategic Plan Page 25 of 28 Professional Services Agreement Recreation Strategic Plan Page 26 of 28 EXHIBIT C RATE SCHEDULE & TIMELINE Proposed Fee 1) 2) 3) * * Note: All prices are based on a firm-fixed fee rate. In the event additional services outside of the proposed Scope of Work are requested, these services will be billed at $135 per hour. Total approved by the City for this project at the time this Professional Services Agreement was drafted is $60,700 for Strategic Action Planning Process, PASS, and Service Analysis & Financial Strategies Process. *Optional Task The following task is optional, and is not to be executed until authorization is received from the City’s Project Manager: Cost Recovery Model & Goal Development (optional): $5,200.00 Funds for the above Optional Task are not available at the time this Professional Services Agreement was drafted. The City will consider the addition of this Task prior to Phase 2 Step 4 Workshop II in the event additional funds become available in 2014. Professional Services Agreement Recreation Strategic Plan Page 27 of 28 Proposed Timeline Professional Services Agreement Recreation Strategic Plan Page 28 of 28 EXHIBIT D CONFIDENTIALITY IN CONNECTION WITH SERVICES provided to the City of Fort Collins (the “City”) pursuant to this Agreement (the “Agreement”), the Professional hereby acknowledges that it has been informed that the City has established policies and procedures with regard to the handling of confidential information and other sensitive materials. In consideration of access to certain information, data and material (hereinafter individually and collectively, regardless of nature, referred to as “information”) that are the property of and/or relate to the City or its employees, customers or suppliers, which access is related to the performance of services that the Professional has agreed to perform, the Professional hereby acknowledges and agrees as follows: That information that has or will come into its possession or knowledge in connection with the performance of services for the City may be confidential and/or proprietary. The Professional agrees to treat as confidential (a) all information that is owned by the City, or that relates to the business of the City, or that is used by the City in carrying on business, and (b) all information that is proprietary to a third party (including but not limited to customers and suppliers of the City). The Professional shall not disclose any such information to any person not having a legitimate need-to-know for purposes authorized by the City. Further, the Professional shall not use such information to obtain any economic or other benefit for itself, or any third party, except as specifically authorized by the City. The foregoing to the contrary notwithstanding, the Professional understands that it shall have no obligation under this Agreement with respect to information and material that (a) becomes generally known to the public by publication or some means other than a breach of duty of this Agreement, or (b) is required by law, regulation or court order to be disclosed, provided that the request for such disclosure is proper and the disclosure does not exceed that which is required. In the event of any disclosure under (b) above, the Professional shall furnish a copy of this Agreement to anyone to whom it is required to make such disclosure and shall promptly advise the City in writing of each such disclosure. In the event that the Professional ceases to perform services for the City, or the City so requests for any reason, the Professional shall promptly return to the City any and all information described hereinabove, including all copies, notes and/or summaries (handwritten or mechanically produced) thereof, in its possession or control or as to which it otherwise has access. The Professional understands and agrees that the City’s remedies at law for a breach of the Professional’s obligations under this Confidentiality Agreement may be inadequate and that the City shall, in the event of any such breach, be entitled to seek equitable relief (including without limitation preliminary and permanent injunctive relief and specific performance) in addition to all other remedies provided hereunder or available at law.