SR-01-14-2014-3BCity Council Meeting: January 14, 2014
Agenda Item: 3- B
To: Mayor and City Council
From: Rod Gould, City Manager
David Martin, Planning and Community Development Director
Subject: Agreement with Management Partners
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a professional services
agreement with Management Partners, California- based company, in an amount
not to exceed $98,600, for interim management assistance with future year
funding contingent on Council budget approval.
2. Authorize the City Manager to negotiate and execute a professional services
agreement with Management Partners, California- based company, in an amount
not to exceed $39,500, for an organization review with future year funding
contingent on Council budget approval.
Executive Summary
Two City operations, the Planning and Community Development Department (PCD) and
the Office of Sustainability and the Environment (OSE), seek the services of an
experienced public sector management consultant. Staff recommends Management
Partners for both. Management Partners would offer interim management assistance to
PCD at a cost not to exceed $98,600 and conduct an organization review of OSE at a
cost not to exceed $39,500. The projects would be detailed in separate agreements.
Background
The PCD Assistant Director retired at the end of 2013. The job specification has been
revised and recruitment for a full -time replacement has begun. Staff anticipates that the
position will be filled in three to four months. In the meantime, staff recommends filling
the position on a limited -term basis with an experienced planning professional who can
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provide interim management services and assist the Department in advancing its many
efforts, including development agreements and revisions to the zoning code.
The Office of Sustainability and the Environment has evolved over time. First a division
of the Public Works Department, the Office became a division of the City Manager's
Department in 2008. Since that time, the Office's role has expanded and its impact now
reaches into the majority of City departments. Over the past year, OSE has
implemented a reorganization plan and transferred operational responsibilities and staff
to the Public Works and Planning and Community Development Departments. In early
2014 the 15 remaining staff members will for the first time be located in the same
offices, a LEED - certified space at 1717 4th Street. The reorganization and associated
realignment of work groups plus the consolidation and move mark a new phase in
OSE's life cycle. An organization review of the Office's systems, processes, procedures,
work load, capacity, alignment within and across the organization, and future is timely
and is therefore recommended.
Discussion
There are a number of national and local consulting firms who routinely provide public -
sector organizations with interim management, organizational analysis, and process
and operational improvement assistance. Such firms are generally staffed by full- and
part-time professionals who are experienced public service managers, consultants, and
recently retired government staff members. Specialists as well as generalists are
usually available.
The Department of Planning and Community Development and the Office of
Sustainability and the Environment needs' for consulting services are different, however
they are occurring concurrently. Staff recommends contracting with the same
organization, Management Partners, for the two distinct scopes of work.
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Management Partners has performed similar work for the City of Santa Monica over the
past few years; over the last three years in particular, this work has cost $119,000.
Currently, Management Partners is conducting a program review at the request of the
City Attorney's Office, at a cost not to exceed $50,000. Staff is requesting Council
authorization for two additional agreements, one of which is below the usual $80,000
threshold for Council approval, because of the cumulative total of the City's recent and
recommended work with the firm.
Consultant Selection
Under the Santa Monica Municipal Code, the City Manager has the authority to solicit
proposals for professional services and proceed in a manner that serves the best
interest of the City. The City Manager exercised that authority and sought proposals
from Management Partners for these two projects under Municipal Code 2.24.073 (d),
which was in effect while the selection process was underway. Subsequent to the
selection of Management Partners, the City's Purchasing Ordinance was updated.
Management Partners is a national consulting firm founded in 1994 with offices in Costa
Mesa and San Jose, California, and Cincinnati, Ohio whose emphasis is working with
local governments and is familiar with all of the services provided by cities, counties,
and special districts at the local level. Staff includes leaders and managers with
practical experience in all aspects of local government operations.
PCD's need for interim management assistance would be filled by Jay Trevino. Mr.
Trevino is a Special Advisor to Management Partners who has extensive public sector
experience in land use planning and regulation, urban design, transit oriented
development, environmental analysis, and community outreach. During his 31 years in
local government, Mr. Trevino served in a variety of planning positions in four cities,
including Santa Monica, where he held the position of Planning Manager. His most
recent position was as executive director of the Planning and Building Agency of the
City of Santa Ana, from which he recently retired. Mr. Trevino would work in PCD four
days a week at the direction of Management Partners, and continue to use his own cell
phone and Management Partners' email address, reflective of his employment by the
firm, until the new permanent Assistant Director is in place. Staff estimates a three- to
four -month engagement at an hourly rate of $140, the total cost of which would not
exceed $98,600. Should the hiring process take longer, staff would return to Council to
request additional authorization to continue the arrangement.
Management Partner's assessment and analysis of the Office of Sustainability and the
Environment would include an inventory of the division's approach to work and its work
plan, how OSE's efforts align with that of other departments and divisions and within the
organizational structure, the capacity of the division to complete current and projected
assignments, and opportunities for organizational development. Recommendations and
the key steps necessary for implementation would be developed in conjunction with
staff and presented in an action plan. This endeavor is anticipated to take approximately
three months and cost no more than $39,500. It would be conducted by a team of
Management Partners staff members experienced in public services and management
systems, and organizational, policy, and financial analysis.
Financial Impacts and Budget Actions
The agreement to be awarded to Management Partners for interim management
assistance is for an amount not to exceed $98,600. Funds are available in the FY 2013-
14 budget in division 01265. The agreement will be charged to account 01265.555060.
ld
The agreement to be awarded to Management Partners for an organizational review is
for an amount not to exceed $39,500. Funds are available in the FY 2013 -14 budget in
division 01202. The agreement will be charged to account 01202.555060.
Prepared by: Danielle Noble, Assistant to the City Manager
Approved:
Forwarded to Council:
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Rod Gould Rod Gould
City Manager City Manager
7D�2A
David Martin
Director, Planning and Community
Development
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Reference:
Agreement No. 9853 (CCS) &
Agreement No. 9854 (CCS)