Loading...
HomeMy WebLinkAboutItem 1a - Budget Appropriation and Amendment for Professional Consultin Services DATE: March 20, 2018 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager By: Michael Bruckner, Assistant to the City Manager Hue Quach, Administrative Services Director SUBJECT: SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT $114,646 FROM THE GENERAL FUND RESERVE, INCREASING THE COMPENSATION TO AN AMOUNT NOT TO EXCEED $193,896; AND AMENDING THE PROFESSIONAL SERVICES AGREEMENT WITH THE LEW EDWARDS GROUP FOR PROFESSIONAL CONSULTING SERVICES AND RELATED PUBLIC OUTREACH Recommendation: Approve SUMMARY On September 19, 2017, the City Council approved a Professional Services Agreement with the Lew Edwards Group (“LEG”) in an amount not to exceed $79,250 to conduct polling and public outreach related to a proposed sales tax measure for the April 2018 general election. On December 5, 2017, the City Council received a presentation outlining the summary findings of a citizen satisfaction survey conducted by LEGs polling subcontractor, Fairbank, Maslin, Maullin, Metz, & Associates (“FM3”), which demonstrated that while Arcadia residents enjoy a high quality of life and are generally pleased with City services, they are not fully informed on the costs of City services and the organization’s fiscal challenges. As a result, the City Council approved the consultant’s recommendation to defer the sales tax measure to the April 2020 general election in order to provide more time for continued public outreach regarding the City’s long-term financial outlook. In support of this, it is recommended that the City Council approve a supplemental budget appropriation and a contract amendment in the amount of $114,646 to the Professional Services Agreement with the Lew Edwards Group, and increasing the contract authority to an amount not to exceed $193,896. BACKGROUND Over the years, the City of Arcadia has taken several steps to manage costs without sacrificing the quality of services. This includes pension and benefit reforms in 2011, Budget Appropriation and Contract Amendment with The Lew Edwards Group for Professional Consulting Services March 20, 2018 Page 2 of 3 budgetary adjustments, competitive bidding practices, and efficiencies through innovation over time. Even with these practical and ongoing approaches to effective municipal management, the long-term fiscal outlook for the City is daunting. Due to recent policy changes from CalPERS (“PERS”), the City is facing a $2 million per year increase in payments to PERS beginning in FY 2018-19 through FY 2024-25. As a result of these increases, the City is faced with two options: 1) Reduce services and expenses by $2 million per year in order to offset increasing costs, or 2) Seek additional revenue enhancements. As part of the budget adoption process, the City Council requested that staff review potential revenue enhancements in order to address the long-term fiscal stress the City will face as a result of the increasing cost of services. During the City Council Study Sessions on August 1, 2017, and August 15, 2017, it was recommended that both a communications/messaging consultant and a polling consultant be retained to support the City in reviewing potential revenue enhancements. On September 19, 2017, the City Council approved a supplemental budget appropriation for $94,250, which included a Professional Services Agreement in an amount not to exceed $79,250 to retain the services of the Lew Edwards Group to explore the feasibility of placing a sales tax measure on the ballot at April 2018 general election, in addition to measuring resident satisfaction with City services. Included in this action was an additional $15,000 to be set aside for public outreach. On December 5, 2017, the City Council was presented with a summary of findings of the survey results. While the citizen satisfaction survey generally concluded that Arcadia residents are extremely satisfied with services the City provide, it also identified that the City’s looming fiscal challenges are not well understood by the voting public. Given the length of time needed for a successful public outreach effort, the short period before the April 2018 elections, and the survey findings, the City Council directed staff to continue a broad public outreach campaign and to plan for a ballot initiative for the April 2020 general election. Furthermore, at this meeting it was recommended that the City establish a Citizens Financial Advisory Committee to explore alternative options for revenue enhancement or expenditure control. The Committee’s work will be vitally important to ensure that all potential revenue and cost containment options are thoroughly evaluated. Public engagement will be a key component of these efforts. DISCUSSION The ballot measure process in California can be quite complex, with multiple deadlines, filings, and reporting requirements. In addition to navigating complicated rules and regulations, it is imperative that the City provide Arcadia residents and the voting public with timely and accurate information in order to ensure informed opinions on any proposed ballot measure. The Lew Edwards Group is a California leader in providing Budget Appropriation and Contract Amendment with The Lew Edwards Group for Professional Consulting Services March 20, 2018 Page 2 of 3 cutting edge public engagement and fiscal sustainability planning services to public agencies throughout the state. Among other goals, LEG services are designed to: 1. Provide efficient, supportive, and responsive project management for the City’s fiscal sustainability efforts; 2. Assess and analyze constituent satisfaction, priorities, and views through public opinion research; 3. Implement a public information program to inform and engage constituents around timely issues; and 4. Provide additional strategic services as needed. In order to streamline this effort and reduce overhead costs, LEG will continue to serve as the lead consultant and will retain the services of FM3, a polling consultant firm, as their sub-contractor. LEG will be assisting the City in developing a robust public outreach campaign to help inform Arcadia residents regarding the City’s long-term financial outlook. Generally, these efforts include: developing an engagement strategy, key messaging, and informational materials for the City’s website, traditional media, and social media, in addition to collateral for direct mailing. As part of the City’s engagement effort, in addition to the recommendations of the Citizens Financial Advisory Committee, a broad community outreach campaign may also provide recommendations from the Arcadia community on options for alternative service delivery models. While a successful sales tax measure will help maintain the City’s current service levels, it is not the only option the City will consider in order to address its long-term fiscal challenges. It is also anticipated that a second round of polling will be conducted closer to the April 2020 general election. Similar to the last engagement, polling will be conducted through a series of telephone and internet based surveys of Arcadia residents. Surveys will be administered in English, Mandarin (simplified Chinese), and Spanish to ensure broad participation from the entire community. The survey size will include approximately 400 Arcadia residents to ensure that the survey responses are valid, reliable, and statistically significant. As has been the City’s traditional approach, translation services will be provided for the direct mail component into simplified Chinese using our translation services vendor. In addition, the City will be responsible for the printing and mailing of any collateral produced to engage and inform Arcadia residents. The amendment will extend the contract termination date from March 2018 to March 2020. LEG has agreed to lower their professional services fee from $5,000 per month to $3,750 per month. Over the next 24 months that amounts to $90,000. In addition, the amendment also includes $35,000 for another citizen satisfaction survey, $17,000 for additional public outreach, and $2,000 for travel, for a total of $144,000. There is $29,354 remaining in the original contract authority for this purpose. Therefore, an additional $114,646 is requested in order to fully fund this effort through the April 2020 general election. Further, due to the longer time and higher overall costs of this Budget Appropriation and Contract Amendment with The Lew Edwards Group for Professional Consulting Services March 20, 2018 Page 2 of 3 engagement, total contract authority will be increased to an amount not to exceed $193,896. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT To continue public outreach and engagement to the April 2020 general election, total costs for the two-year period are estimated at $144,000. A balance of $29,354 is remaining in the current contract; therefore, a supplemental appropriation of $114,646 is requested, along with an increase in contract authority to an amount not to exceed $193,896. Funds are available in the General Fund Undesignated Reserve to fund this project. A successful effort will potentially enhance the City’s sales tax revenue by approximately $8 million per year beginning in FY 2021-22, and further savings may be identified as a result of changes to the City’s current service levels. RECOMMENDATION It is recommended that the City Council approve a supplemental budget appropriation in the amount of $114,646 from the General Fund Reserve, increasing the compensation to an amount not to exceed $193,896; and approve, and authorize and direct the City Manager to execute an Amendment No. 1 to the Professional Services Agreement with The Lew Edwards Group. Attachment: Proposed Professional Services Agreement Amendment No. 1 AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT (2017) BY AND BETWEEN THE CITY OF ARCADIA AND THE LEW EDWARDS GROUP This Amendment No. 1 (“Amendment No. 1”) is hereby entered into this ______ day of ______________, 2018 by and between the City of Arcadia, a municipal corporation of the State of California, and The Lew Edwards Group, Inc., with respect to that certain Professional Services Agreement (“Agreement”) between the parties dated September 27, 2017 (“Contract”). The Parties agree as follows: 1. Section 3.1.2 of the Agreement is amended by extending the Term from March 31, 2018 to March 31, 2020 (“Extended Term”). 2. Section 3.1.1 of the Agreement (“Scope of Services”) is amended for the Extended Term as referenced in the attached Exhibit “A”. 3. Section 3.2.2 of the Agreement (“Schedule of Services”) is amended for the Extended Term as referenced in the attached Exhibit “B”. 4. Section 3.3.1 of the Agreement (“Compensation”) is amended to provide that for the Extended Term, the total compensation shall not exceed One Hundred Ninety One Thousand Eight Hundred Ninety Six Dollars ($193,896.00), as referenced in the attached Exhibit “C”. 5. All terms and provisions of the Agreement not amended by this Amendment No. 1 are hereby reaffirmed. In witness whereof the Parties have executed this Amendment No. 1 on the date set forth below. CITY OF ARCADIA LEW EDWARDS GROUP, INC. By: By: Dominic Lazzaretto City Manager Title: Dated: Dated: ATTEST: By: ____________________________________ Title: City Clerk Dated: APPROVED AS TO FORM Stephen P. Deitsch City Attorney Exhibit "A" SCOPE OF SERVICES • Assist the City with long-term communications highlighting fiscal challenges and opportunities, public safety, and service delivery vision. • Recommend and update timeline of key milestones. • Engage with key city staff providing police, fire services; community communications; and finance to understand city planning and develop content calendars/a cohesive message • Develop branding/tagline for Community Engagement Programs tied to annual budget reviews/adoption. • Develop and continually update Broadcast Messaging Platform for community engagement program. • Develop draft content for Public Engagement Messaging Suite, such as website copy, FAQs, engagement tools, and PowerPoint/Speakers’ Presentation • Recommend strategies to disseminate information and engage the public. • Provide press releases and other text copy for the Internet, traditional Earned Media and/or Social Media. • Work with the City to provide clarifying or correct information to the public on a rapid response basis as needed. (Consultant does not function as a spokesperson for the City) • Recommend additional public opinion research as needed; facilitate/oversee such research; provide analysis and strategic recommendations from that research (research costs to be budgeted separately from this Agreement). • Recommend communications project budget augmentations for FYs 18-19 and 19-20 FYs to accommodate additional Engagement research or Communications collateral needs. • Advise the City on the viability of preparing for a potential 2020 ballot measure. If doing so, add value to the development of staff reports, city resolutions, and ballot materials. • Conduct regular telephonic planning sessions, provide ongoing strategic advice. Legal services/advice are not within Consultant’s scope of work. Consultant’s services will conclude on March 31st, 2020. Exhibit "B" SCHEDULE OF SERVICES The following service milestones will be updated and refined further with City staff based on project needs. Winter/Spring 2018: Interview Police/Fire Service Providers Assess City’s current communications vehicles, understand upcoming opportunities Understand 2018 Budget Review/Adoption Schedule Develop Messaging Platform Select Messengers, conduct Message Training Develop content calendar for communications Develop Budget Messaging Strategy/2018 Engagement Goals Launch Community Presentations (City) Spring/Summer 2018: Evaluate/refine messaging based on initial community reactions Embed messaging in all City communications Vehicles Embed messaging in all Budget-related presentations/discussions City continues engagement Fall 2018: City continues engagement Evaluate communications outreach Make adjustments/develop engagement plan for 2019 ANTICIPATED SERVICE MILESTONES (2019) The following service milestones will be updated and refined further with City staff based on project needs. Winter 2019: Reach consensus on 2019 communications approach Update Messaging Platform Develop content calendar for 2019 communications Develop FY 2019 Budget Messaging Strategy Spring/Summer 2019: Deploy on 2019 Messaging Plan: Embed messaging in all City communications Vehicles Embed messaging in all Budget-related presentations/discussions City continues engagement Citywide Interactive Mailer is issued in late May/engaging public on service issues Develop Ad Hoc City Manager’s Round-table (City) Fall 2019: City continues engagement Second citywide mailer to report back to residents on engagement Conduct Updated Baseline survey Analyze results for 2020 revenue measure Feasibility Engage community & Key Influentials (City) Report strategic recommendations to the City If viable to proceed, assist with ballot measure Preparations Prepare for Council Placement Place Measure (City) ANTICIPATED SERVICE MILESTONES (2020) The following service milestones will be updated and refined further with City staff based on project needs. Winter 2020: Finalize Survey results for public web-release Prepare Measure communications suite and other informational collaterals Conduct Measure Speaker’s Bureau Training Develop graphics and schedule for up to three Measure informational mailers (City to print/mail) Conduct informational community engagement and encourage voter participation (City) Exhibit "C" COMPENSATION The Agreement amount of One Hundred Ninety Three Eight Hundred Ninety Six Dollars ($193,896) shall be payable as follows: • Professional Consulting Fees not to exceed Ninety Thousand Dollars ($90,000) in twenty four payments of Three Thousand Seven Hundred Fifty Dollars ($3,750) per payment due and payable each month commencing April 1, 2018 with final payment on March 31, 2018. • Public Opinion Research Study not to exceed Thirty Five Thousand ($35,000) due and payable upon transmittal of the results to the City. The cost for the trilingual (English, Mandarin e.g. Simplified Chinese, and Spanish), dual mode study includes translation. • Graphics, Mailing Data, and Travel Expenditures not to exceed Nineteen Thousand ($19,000) due and payable upon invoice by Consultant. These expenses do not include translation, printing, and mailing costs to be budgeted and incurred separately but City through its own vendors. A Original Contrat Amount 79,250$ B Expended YTD (49,896)$ C Original Contract Balance 29,354$ A+B D Amendment 144,000$ E Additional Funding 114,646$ D-C F Total Contract Authority 193,896$ A+D