SR 02-13-2018 3E
City Council
Report
City Council Meeting: February 13, 2018
Agenda Item: 3.E
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To: Mayor and City Council
From: Donna Peter, Director, Human Resources Department
Subject: First Modification to Agreement with Innovative Resources Consultant Group
for Staff Development, Team Building, and Coaching Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a first modification to Agreement #10421 (CCS) in the amount of $150,000 with
Innovative Resources Consultant Group (IRCG) for staff development, team building
and coaching services. The amended agreement would be for a new total amount not to
exceed $270,000, with future year funding contingent on Council budget approval. The
five-year term of the contract would remain unchanged.
Executive Summary
The City is committed to providing staff with leadership training and coaching, both in for
teams, with and small work groups, and with individuals. For over the last 15 years City
Departments intermittently have worked with Innovative Resources Consultant Group
(IRCG) to provide such services. Through the proprietary Personalysis® methodology,
IRCG gathers information on an individual’s staff’s work style and strengths to improve
team dynamics and communication through workshops and smaller sessions. IRCG
also assists individuals to improve leadership and management skills, and facilitates
strategic planning. Council last approved a contract award to IRCG in January 2017,
which is set to expire in March 2020. However, due to on-going and greater than
expected demand for IRCG’s services citywide, staff recommends increasing this
contract by $150,000 for a new not to exceed amount of $270,000. The five-year term
of the contract would remain unchanged.
Background
Innovative Resources Consultant Group (IRCG) through individual department
agreements, has provided teams leadership training and coaching to teams and
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individual staff in the Planning and Community Development, Housing and Economic
Development, Finance, Community and Cultural Services, Information Services, and
Human Resources Departments and the City Manager’s Office with facilitation and
leadership training and coaching. The City paid approximately $222,000 to IRCG across
six separate agreements through October 2016. On February 4, 2014, the City entered
into a 10-month agreement (No. 2814) for coaching for the Community and Cultural
Services (CCS) Department in an amount not to exceed $7,500. Between December
2014 and June 2016, three modifications were executed to expand the scope of the
project, increase the contract authority to $79,000, and to extend the term to June 30,
2017. On October 25, 2016, Council approved a fourth modification to the agreement in
the amount of $120,000 (Attachment A). This modification, agreement No. 10386
(CCS), extended the contract terms through 2020 and provided a more centralized
agreement for use citywide. On January 24, 2017, Council approved a new agreement
(Attachment B), with IRCG to recognize that the organization dissolved as a corporation
but no other changes were made. As of January 2018, there is approximately $44,000
remaining on the contract.
Discussion
The $120,000 contract amount provided in the fourth modification back in October 2016
was based on an estimate of staff need. This estimate was based on previous years’
engagements with ICRG, which were typically done department by department. Since
execution of that fourth modification, which consolidated the use, City staff have
requested and used approximately $76,000 in services, outpacing the original estimates
and providing a more accurate reflection of the need for assistance in building stronger
teams and better communication between staff . The additional increase reflects this
more accurate use and now accounts for services on a City-wide basis. It also takes
into account the ongoing necessity for these services as the City continues to regularly
integrate new staff members with current members at all levels of the organization. In
addition, it allows for the significant changes in executive leadership in the City and the
desire to strengthen relationships among these leaders. Finally, it is essential that the
City continue to strengthen its work teams as staff progresses towards a more open and
modern working environment where communication and work style will be of key
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importance.
Vendor/Consultant Selection
Staff has determined that IRCG is exclusively qualified to perform this work because of
the proprietary methodology and IRCG’s extensive experience with the City’s
professional culture and staff relationships, both recently and historically. Although
there are other vendors that use the Personalysis® method, they would not have the
same level of expertise nor access to IRCG’s institutional knowledge and experience of
the organization. Training and coaching effectively requires the establishment of trust
and the building of strong relationships. Other vendors would need to gather more
information and build relationships to be effective which would lead to higher costs and
seriously delayed time in responding to coaching and leadership needs. Therefore,
staff believes that IRCG is the most effective provider of these Personalysis®-based
services to the City and is uniquely qualified to continue to provide those services. For
these reasons, Council approved the October 2016 agreement as an exception to the
competitive bidding process pursuant to Municipal Code Section 2.24.080 (d).
Competition does not exist because only one vendor possesses the unique ability or
capability to meet the particular requirements of the solicitation, such as a good or
service that is copyrighted, patented or otherwise only available from one license
holder.
Financial Impacts and Budget Actions
The first modification to Agreement #10421 (CCS) to be awarded to IRCG is $150,000,
for an amended total compensation not to exceed $270,000. The contract amounts
would be charged to various accounts as departments identify a need for services.
Funds are available in the FY 2017-18 budget within the department operating budgets
and would be encumbered as needed. Future year funding is contingent on Council
budget approval.
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Prepared By: Donna Peter, Director
Approved
Forwarded to Council
Attachments:
A. IRCG Contract 10421_Oaks Initiative
REFERENCE:
Modified Agreement
No. 10421
(CCS)