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HomeMy WebLinkAbout10 - CC-11 - Extension of Existing PSA w/ Management - 2/7/2012CITY COUNCIL AGENDA REPORT MEETING DATE: February 7, 2012 ITEM NUMBER: SUBJECT: EXTENSION OF EXISITNG PROFESSIONAL SERVICES AGREEMENT WITH MANAGEMENT PARTNERS FOR INTERIM MANAGEMENT ASSISTANCE DATE: JANUARY 31, 2012 FROM: CHIEF EXECUTIVE OFFICE PRESENTATION BY: THOMAS R. HATCH, CHIEF EXECUTIVE OFFICER FOR FURTHER INFORMATION CONTACT: DANIEL K. BAKER AT (714) 754-5156 RECOMMENDATION: Staff recommends that the City Council authorize the City CEO to extend the existing Professional Services Agreement extension (Attachment A) with Management Partners Inc., for Interim Management Assistance, in an amount not to exceed $85,000. BACKGROUND: In March of 2011, the City entered into a Professional Services Agreements (PSA) with Management Partners Inc. to provide the City with interim management assistance. In April of 2011, Administrative Services Director, Steve Mandoki, separated from the City and Ms. Tamara Letourneau, Senior Manager with Management Partners, was named Interim Administrative Services Director under the original PSA. In May of 2011, the existing PSA was extended with a not to exceed amount of $120,000 to allow Management Partners and Ms. Letourneau to continue to provide the City with administrative management assistance. Since that time, Ms. Letourneau has provided 30 plus hours a week of management assistance as both the Interim Administrative Services Director and as the Interim Assistant Chief Executive Officer. Ms. Letourneau has overseen the successful merger of the Administrative Services department with various other departments. Additionally, she will continue to manage the daily operations of both the Human Resources and Risk Management Divisions and will oversee upcoming contract negotiations with the various employee associations. Much of the administrative work she is doing for labor negotiations is being completed at a much lower rate than our contract negotiator. Additionally, she also recently completed a review of the City's workers compensation process and will assist in implementing the recommended changes. Ms. Letourneau will also continue in her role as co -facilitator for the outsourcing committee. As the second phase of outsourcing evaluations begin, her presence is critical to ensure this process proceeds according to administrative regulations and objectivity. This additional extension is necessary as the funds originally allocated with the first extension of the PSA will be expended as of February, 2012. Therefore, staff recommends increasing the existing PSA extension with Management Partners to compensate for continued responsibilities associated with the Interim Assistant Chief Executive Officer position. ANALYSIS: Increasing the existing PSA will allow Management Partners and Ms. Letourneau to continue to provide the City with the necessary managerial experience to complete the above mentioned tasks. ALTERNATIVES CONSIDERED: An alternate consideration would be to not continue this consultant assistance. The responsibilities listed above and all other duties originally assigned to the position will be allocated to existing staff for completion. Given the high volume workload of existing staff this is not a feasible alternative. FISCAL REVIEW: Ms. Letourneau is currently providing 30 hours a week as a management consultant. The firm of Management Partners' hourly rate is $124 per hour. Based upon a 60 hour pay period and 11 pay periods remaining for FY 11-12', the total compensation for Management Partners and Mrs. Letourneau's services equates to approximately $85,000. Funding for this expense will come from salary savings throughout the organization and a budget adjustment will be approved at the mid- year review. LEGAL REVIEW: No legal review is required for this item. CONCLUSION: Staff recommends that the City Council authorize the City CEO to extend the existing Professional Services Agreement extension (Attachment A) with Management Partners Inc., for Interim Management Assistance, in an amount not to exceed $85,000 until the end of fiscal year 11-12' THOMAS R. HATCH DANIEL K. BAKER Chief Executive Officer Management Analyst ATTACHMENTS: 1 Professional Services Agreement with Management Partners Incorporated for Interim Management Assistance RAI