HomeMy WebLinkAbout2000-07-27 City CouncilCity of Palo Alto
Manager’s Report
13
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: CITY MANAGER
CMR: 325:00
DATE:
SUBJECT:
JULY 17, 2000
IMPLEMENTATION OF STREAMLINING RECOMMENDATION
FOR COUNCIL PROCESSES, INCLUDING REVISIONS TO POLICY
AND PROCEDURE 1-10 REGARDING SELECTION PROCEDURES
FOR PROFESSIONAL CONSULTANTS
RECOMMENDATION
Staff recommends that the City Council adopt the Ordinance Amending and Reorganizing
Chapter 2.04 of the Palo Alto Municipal Code (Council Organization and Procedures) to
establish new, streamlined City Council procedures; the revised City Council Procedures
Handbook; and revisions to Policy and Procedure 1-10 regarding Selection Procedures for
Professional Consultants (Attachment 1).
BACKGROUND
On May 15, 2000, the City Council held a retreat at the Foothills Park Interpretive Center
to consider a number of issues, including streamlining, of Council business and
administrative procedures. The goals of the streamlining effort were to:
Free up Council time and energy to focus on community values and major policy
and long-term planning issues
Become "smarter," more business-like and customer-friendly in our processes
Create and organizational culture that promotes risk-taking and innovation
CMR:325:00 Page 1 of 4
The Council considered streamlining opportunities in a number of areas. Implementation
is being pursued along several tracks simultaneously. Specifically:
Council priority setting: Recommended changes can be implemented without
legislative action, and will be incorporated into the 2000-02 Budget process.
Conducting City Council Meetings: Addressed in this report, with changes to
Municipal Code Chapter 2.04 and revised Council Rules of Procedure, with the
exception of appeals of decisions on land use and transportation issues, which is the
subject of a separate staff report on tonight’s agenda and a proposed amendment to the
City Charter.
Council Committee Meetings: Addressed in this report, with changes to Municipal
Code Chapter 2.04, revised Council Rules of Procedure, and revisions to Policy and
Procedure 1-10.
Council-Appointed Boards and Commissions: Subject of a separate staff report (CMR:
298:00), discussed by the Policy and Services Committee on June 20, 2000, with
recommendations to the Council incorporated into the item on tonight’s Consent
Calendar.
Contract Process, Budget Process and Other Administrative Changes: Will be the
subject of a separate report and recommendations to the Council in September 2000.
DISCUSSION
Summarized below are the changes proposed to how the Council conducts its meetings
and conducts Council committee proceedings. Certain of the changes to Council processes
can be implemented without changes to the Municipal Code or Rules of Procedure, such
as changing the time scheduled for interviewing board and commission candidates or
meeting with legislators. The attached amendments to Chapter 2.04 of the Palo Alto
Municipal Code and the revised Council Rules of Procedure implement the remainder of
the changes to Council processes discussed at the May 15 retreat:
CMR:325:00 Page 2 of 4
CHANGES TO COUNCIL PROCESSES
Schedule Study Sessions at 6 ~_,,m. before Council meetings to more
informally discuss major initiatives and provide direction to staff.
Discontinue Council interviews of board and commission applicants prior
to Council meetings.
Schedule meetings with legislators during the day rather than before a
C~uncil meeting.
Special Orders of the Day: Limit ceremonial proclamations and
presentations in order to move expeditiously into Council business.
Hold regular Council meetings on first three Mondays of month; second
Monday to be a study session only, starting at 6 p.m.; first and third
Mpndays for regular business, starting at 7 p.m.
Divide Consent Calendar into legislative and administrative items; read
only titles of legislative items.
Place any pulled Consent items at end of Consent Caiendar, or if a number
of speakers want to address the item, put at end of agenda or reschedule.
Place Approval of Minutes on Consent Calendar.
Place any unanimous recommendations from Council Committees on
Consent Calendar.
If a Council Member wants to pull a Consent item only to comment or cast
a "no" vote, consider submitting written comments to the City Clerk
instead, to be noted in the minutes.
Discussion and amendments of ordinances should occur at first reading.
Modify Council procedures to only allow a super majority of Council
Members to pull an ordinance on second reading for discussion and/or
amendment
Before opening hearing, request that group of speakers have one
spokesperson.
Allow spokesperson representing five or more people who are present ten
versus five minutes to speak
Commit to taking all public testimony, closing hearing and then not
reopening hearing. After hearing is closed, only ask questions to staff.
Establish time limit for each speaker.
Commit to defer whenever possible to the recommendations of Council
Committees so that discussions area not fully rehashed. This will also
signal to various interest groups that the Council committees are the place
to fully present their views as opposed.
Discontinue review of scope of consultant contracts over $25,000.
Authorize City Manager to refer items directly to Committee (including
appropriate recommendations from Boards and Commissions).
Refer any item to only one Committee
...... Implementation .......
Rules of Procedure
Council
Council
Mayor
Rules of Procedure ¯
and Ordinance
Rules of Procedure
Rules of Procedure
Rules of Procedure and
Ordinance
Rules of Procedure
Council
Ordinance
Mayor
Rules of Procedure
Council
Council
Council
Policy/Procedure 1-10
Rules of Procedure
Rules of Procedure
CMR:325:00 Page 3 of 4
Oral Communications
The revised City Council Procedures Handbook also reflects a change so that Oral
Communications at Study Sessions which occur prior to regular Council meetings are
consolidated with the Oral Communications portion of the regular Council meeting. No
other changes are proposed in the Municipal Code or to the Council Rules of Procedure
with regards to the way in which the Council handles the Oral Communications portion of
its agenda. There are several reasons for this. This is primarily a Council issue, and at the
Council retreat, there did not appear to be a consensus among Council Members with
regards to the several alternatives to restructuring Oral Communications. Changes in the
Oral Communications process will not have a significant impact in terms of streamlining
the Council meetings. The thrust of the Council’s concern regarding Oral
Communications appears to be sensitivity to the members of the public who have come on
any evening to address agendized items, and who are required to wait for an additional 30
minutes for speakers to items that have not been agendized. An option that the Council
may wish to consider if this is indeed the case is to move Oral Communications to the end
of the agenda if there are a considerable number of speakers for agendized items in the
audience.
Prepared by: Emily Harrison, Assistant City Manager
CITY MANAGER APPROVAL:
ATTACHMENTS
1. Revised Policy and Procedure 1-10
lenest, City Manager
CMR:325:00 Page 4 of 4
Attachment
Summary of Propo~ed Revision to Procedure 1-10 - Selection Procedures for Professional
Consultants
In 1994, Council directed staff to establish a policy that Council standing committees should
have the opportunity to review the proposed scope of services for consultant projects before a
Request for Proposals (RFP) is issued, if the consult~:’~t contract is anticipated to exceed $25,000.
This requirement is outlined in the City’s Policy and Procedures Manual, Section 1-10. Each
year, after adoption of the budget, staff provides the Council with a list of approved projects and
programs from the Capital Improvement Program and the Operating Budget, for which
consultant services are expected to exceed $25,000. Council identifies any projects of special
interest and the draft RFP’s for these projects are then referred to the appropriate Council
standing committee for approval before being finalized and issued.
Staff recommends that Council waive its review, through committees, of consultant contracts in
order to expedite the RFP process. A comparison of the current and proposed RFP process is
summarized below. See attached revision to Procedure 1-10.
Comparison of Current and Proposed Revision to Procedure 1-t0
Current
1. Shortly after the budget is approved, staff sends
Council a list of capital and operating budget
projects for which an RFP will be necessary.
2. Council committees designate certain projects
for review.
3. Staff sends letter of interest to consultants
asking affirmation of interest in a particular project.
4. Staff prepares and submits draft RFP for
designated projects to Council for approval.
5. RFPs sent to consultant after council approval is
obtained.
6. Prescreen of responses by staff.
7. Formation of a Selection Advisory Committee (if
necessary).
8, Consultant interview.
9. Negotiations.
10. Final approval - contracts greater than
$65,000 transmitted by City Manager to City
Council for approval.
Proposed
1. Waived.
2.Waived.
3.No change.
3.Waived.
5. RFPs sent to consultant after appropriate review
by department head. No council review is
necessary prior to consultant submittal.
6. No change,
7. No change.
8. No change.
9. No change.
t0. No change,
Attachment: Policy and Procedure 1-10 (revised)
POLICY AND PROCEDURES 1-10
Revised: June 2000
SELECTION PROCEDURES FOR PROFESSIONAL CONSULTANTS
POLICY STATEMENT
This statement formalizes the policies and procedures followed by the City of Palo Alto in
obtaining and using professional consultants’ services. It embodies the standard accepted
procedures and ethics of the national and local societies and organizations of those
professions which may be required to provide services to the City of Palo Alto. Consultants
will be used to provide expertise in areas where it is not reasonable to have such professional
competence on the City’s staff, to supplement the City’s expertise where there is a lack of
staff to perform a necessary function, and to provide services requiring an independent and
unbiased appraisal.
Professional consultants have a working knowledge of many fields of endeavor. They have
encountered many and varied problems which provide them with an accumulation of data
and information based on actual experience, often in a specialized area. The payment of a
reasonable and adequate fee for such knowledge and experience assures the recipient of a
comprehensive and technically satisfactory service. When special problems arise, the
engagement of professional consultants may prove the most timely and cost effective course
of action.
Consultants will be selected on the basis of qualifications and competence to do the desired
work. The consultant fee shall be based, among other things, upon the experience of
individual professionals and of professional associations in the particular field as well as the
scope of services of the work. Although fees will not be the determining factor in the
selection, each consultant will provide an estimated fee range.
PROCEDURE
Exemptions. These procedures are not applicable to retaining legal counsel, or retaining
experts for the purpose of litigation or other legal proceedings as defined in the Palo Alto
Municipal Code, Section 2.30.070. For legal services of an ongoing nature involving an
expenditure exceeding $50,000 (e.g. bond counsel), the Attorney’s Office shall consider all
available, competent legal counsel specializing in the needed area of expertise prior to
making a recommendation to the City Council to retain legal counsel. In addition, any
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POLICY AND PROCEDURES 1-10
Revised: June 2000
consultant agreements involving periodic services shall not have a term of more than three
years. The procedures also are not applicable to environmental impact reports and other
special consultant services deemed necessary for the review of private development projects
an__d_d funded wholly by private developers (PAMC Section 2.30.075).
The following procedure will apply to projects and programs that have a consultant fee which
exceeds $25,000.
gTEP--I4 STEP I: Letters of Interest
Each department will maintain a list of consultants by category that have expressed interest
in doing work for the City. These lists shall be expanded periodically through canvassing
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POLICY AND PROCEDURES 1-10
Revised: June 2000
of the consultants capable of performing the desired work. The Purchasing Division should
be used as a source of interested firms and shall maintain an updated list of firms through
periodic consultation and input by all City departments. This list may include consultants
who have performed previous work or have made previous proposals to the City or to
neighboring jurisdictions. In addition, the Purchasing Division shall advertise annually in
appropriate publications for a general range of consultant services in order to update the
consultant list.
Staff will begin the process with a letter of interest to consultants on the list that are capable
of providing services applicable to the City project. The letter will include a general
description of the project and request the consultant to respond by affirming interest and by
sending additional pertinent information about the firm’s capabilities, if necessary. A copy
of this letter will be sent to the Purchasing Division for its information and will be posted in
the Council Chambers. Staff will review the consultants’ literature.
STEP III :uest for Proposals, -rv ......., a .........~, ......................
e~ a ...........*,~- ---w,, -,--, apprc, val. The RFP will include a
detailed scope of services which, if appropriate, will be divided into stages such as
feasibility, preliminary design, and final design. The request will indicate the necessary
information to be submitted by the consultant. This may include a timetable for proceeding
with the work, a general rangeof the cost to perform the work for purposes of budgeting and
gross comparisons, a list of anticipated subconsultants, a list of relevant experience,
statements of professional liability coverage and affirmative action compliance, and the
names and resumes of personnel who actually will be working on the project. The RFP
should indicate what information the City will provide to the consultant. This may include
aerial photographs: plans, measurements, preparation or assistance in the preparation of an
environmental assessment, etc. The City shall provide critical dates and an expected cost
range or maximum amount for the project. The RFP should clearly name the City’s project
director, the criteria for evaluating proposals, and the procedures to be used for selecting the
successful firm.
After Department Head Ccrr’..’r.i~ee c, rCouncil approval is obtained, the formal RFP shall be
sent to those consultants who ,express interest in the project and who appear capable of
performing the required services as determined through the prescreening of the letters of
Page 3 of 9
~ ~ ,LICY AND PROCEDURES 1-10
Revised: Ju~ 2000
intent.
ETEP I~g STEP III: Prescreening of Responses to the Request for Proposals (RFPs)
Staff shall screen all responding consultants by reviewing their qualifications and submittals
in answer to the RFP and by checking their references. The following criteria may be
considered:
1.Specialized experience in the type of work required.
2.Record of the firm in accomplishing work on other projects in the required time.
3.Geographic location of the firm relative to the project location.
4.Quality of work previously performed by the firm for the City.
5.Evidence of any attempt to avoid responsibility for evident design failures.
6.Recent experience showing accuracy of cost estimates and ability to meet
deadlines.
7.Community relations, including evidence of sensitivity to citizen concerns.
8.Completeness in answering the RFP.
9.Projected staff involvement in assisting the consultant team.
10.The make-up of the consultant team.
11.The proposed fee relative to the services to be provided.
After review of the consultants’ ~esponses to the RFP, firms that are not among the final
candidates will be notified in writing and thanked for their responses. Candidates eliminated
from further consideration should have clearly demonstrated a deficiency in one or more of
the above criteria.
Page 4 of 9
POLICY AND PROCEDURES 1-10
Revised: June 2000
In more complex projects, a pre-submittal meeting may be scheduled. At this meeting the
general aspects of the project will be described by City staff. The meeting will be devoted
solely to the discussion of the project itself and not involve the qualifications of the
consultants to be considered. Staff will determine the necessity of holding such a meeting
and this will be based upon the complexity and value of the consultant agreement and/or the
impact upon the public.
STEP V STEP IV: Formation of a Selection Advisory Committee
The formation of an advisory committee may not be necessary on non-controversial or
routine consultant work as determined by the City Manager. The final selection may be made
by the project director with department head approval after review of the responses to the
A Selection Advisory Committee shall be composed of a minimum of three persons. The
committee may be drawn from the City staff itself when competent personnel are available.
It is desirable to have the project director as well as a staff member from the affected
department on the committee. Other non-staff members with particular expertise may be
included. Final approval of the committee make-up shall be made by the department head.
STEP VI STEP V: Consultant Interview and Final Selection by the Selection Advisory
Committee
Based upon review of the responses to the RFP, at least three firms, if available, will be
invited to an oral interview. The consultant firm will be expected to make a presentation of
its proposal describing how work will be conducted in connection with the project. It is
desirable to have the consultant include the project team at the meeting. A letter shall be sent
to the consultant advising the time and location of the meeting, as well as indicating the areas
to be discussed. Discussion topics should be related to the criteria requested in the RFP and
may include questions generated from a review of the responses to the RFP. Staff shall
prepare a questionnaire to be distributed to the members of the committee, which includes
questions covering each of the areas of concern. In addition, a rating sheet shall be prepared
which indicates criteria to be judged as well as a space for score and comments by the
committee. Each committee member will receive a copy of the response to the RFP for each
consultant, pertinent brochures, a reference check, and a timetable for the interview, sample
Page 5 of 9
POLICY AND PROCEDURES 1-10
Revised: June 2000
list of questions and a rating sheet. The committee will meet prior to the first interview to
discuss the types of questions, ratings procedure, and any concerns that may be expressed by
members of the committee. Generally all consultants should be reviewed prior to any
committee discussion of the consultants’ presentations. A ranking of all consultants will be
made at the conclusion of the interview process.
An oral interview may not be necessary on non-controversial consultant work as determined
by the City Manager. The final selection can be made by the Selection Advisory Committee
a~er review of the responses to the RFP.
STEP VII STEP VI: Negotiations
A preliminary meeting between staff and the consultant should be held to discuss items to
be incorporated into the final agreement. Such items may include, among other things, the
various phases of work and their timing, the amount of coordination necessary in public
meetings, the items that definitely will be performed by the City, items that are excluded
from the agreement but will need further negotiation at the time they occur, and the number
of Council or Planning Commission meetings needing consultant attendance. Various items
to be aware of during negotiations are attached as Exhibit A.
A copy of the City’s standard agreement and insurance requirements should be given to the
consultant at this time. Typically, the consultant can attach a refined scope of services to the
City Agreement form as an "Exhibit." A second meeting will be held with the consultant at
which negotiations of the scope and fee will occur. All agreements should be approved by
the department head prior to submittal for review by the City Attorney. When all pertinent
matters such as the scope of services, schedules, and compensation schedules have been
determined, the formal agreement will be reviewed by the City Attorney. The agreement will
be submitted by the City Manager to the City Council for approval.
STEP VII: Approval
The agreement may either be approved, disapproved, or referred back to the parties involved
for renegotiation. Reasons for non-approval should be stated clearly. A~er the final
selection has been made and an agreement has been reached with the consultant, the
unsuccessful candidates who attended oral interviews will be notified in writing and thanked
for submitting proposals.
Page 6 of 9
POLICY AND PROCEDURES 1-10
Revised: June 2000
STEP IX: Special Circumstances
At times it may be necessary, due to emergency situations, for the City Manager to select a
consultant. In such event, the City Manager shall obtain official approval at the next regular
meeting of the Council.
Attachment: Exhibit A - Contract Negotiation Guidelines
NOTE:Questions and!or clarification of th& policy shouM be directed to the
Administrative Services Department.
Page 7 of 9
POLICY AND PROCEDURES 1-10
Revised: June 2000
EXHIBIT A
CONTRACT NEGOTIATION GUIDELINES
The project director shall represent the City in negotiations of the fee. Affected
departments can have representation in the negotiations to advise on the scope of
services.
Staff shall receive instruction in contract negotiating and be aware of negotiating
techniques by attending seminars offered in this field.
All final decisions on fees shall be referred to the appropriate department head for
approval prior to recommendation to Council.
A pre-negotiation meeting shall be held to review and discuss the scope of services.
Public/Council involvement and visual presentations can greatly affect a consultant fee
and shall therefore be defined in this meeting.
Fees shall be identified for each discernible part of the agreement. The agreement shall
be flexible, with the ability to reduce or add services without renegotiation.
The agreement shall specifically list items of work or material to be supplied by the City.
Consultant exclusions shall be listed and a cost indicated in the event the City later
elects to use these services (additional services).
7.A contingency shall not be designed into any one phase of services.
The agreement for a long-term multiphase contract may be negotiated indicating a fee
and scope for the first stage, such as feasibility, but only a general scope for further
stages. The fee will be negotiated at a later date when the work proceeds to a point
where a refined scope can be identified. This eliminates the need for a separate selection
process at a later date.
The City’s standard agreement form shall be used whenever possible, with an attached
exhibit of the project’s scope of services. The standard form needs to be reviewed for
adaptation to the individual project. For instance, in some cases it is appropriate that the
Page 8 of 9
POLICY AND PROCEDURES 1-10
Revised: June 2000
10.
11.
agreement allow the City the option to terminate the service at the end of a phase. (This
is not contained in the standard agreement form, and it should be modified accordingly.)
The terms of payment shall be negotiated carefully. Lump sum, cost plus fixed fee, or
multiplier of payroll costs can be used.
If the project is funded totally or partially by a grant, the terms of the grant shall be
reviewed carefully prior to negotiations to assure that the agreement is consistent with
the requirements of the grant.
Page 9 of 9