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SR 02-13-2018 3E City Council Report City Council Meeting: February 13, 2018 Agenda Item: 3.E 1 of 4 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 2 of 4 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 3 of 4 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. 4 of 4 Prepared By: Donna Peter, Director Approved Forwarded to Council Attachments: A. IRCG Contract 10421_Oaks Initiative REFERENCE: Modified Agreement No. 10421 (CCS)