CITY COMMISSION AGENDA ITEM

Department:

City Manager’s Office

Commission Meeting Date:  October 2, 2018

Staff Contact:

Casey Toomay, Assistant City Manager

Recommendations/Options/Action Requested:

Authorize the City Manager to enter into a contract with Resource Exploration, LLC (ResourceX) for $65,000 for Priority Based Budgeting Tools and Implementation

Executive Summary:

One of the priority initiatives identified by the City Commission in their strategic plan was to develop a plan to implement priority based budgeting and enhance communication in the annual budget process. 

Pursuant to that initiative, staff reached out to the Center for Priority Based Budgeting, now known as Resource Exploration, LLC (ResourceX), in the fall of 2017 to begin developing the timeline.  Staff attended a Priority Based Budgeting (PBB) Boot Camp.  Following that training, staff reported that it was not possible to implement in time for the 2019 budget.  After additional consultation with ResourceX, staff determined that in order to be implemented in time for development of the 2020 Budget, work should begin in the fall of 2018. 

Staff is recommending the City Commission authorize the City Manager to enter into an agreement with ResourceX, LLC for Priority Based Budgeting tools and implementation of Priority Based Budgeting.  The proposed agreement provides for the following implementation schedule:

Milestone	Completed By
Program Inventory	September 30
Cost Allocation	November 15
Department Scoring	December 22
Peer Review	January 27
Final Review	February 15

The proposed agreement is for three years.  The cost of the first year which includes set-up costs, support and training, as well as Online Priority Based Budgeting and OpenPBBData software and support, is $65,000.  The annually renewal rate is $35,000.  

The first-year cost of the project was not budgeted for 2018 and would require spending down fund balance from the General Operating Fund.  The annual renewal expense of $35,000 was included in the 2019 Budget.

Pursuant to the City’s purchasing procedures, a sole source vendor is exempt from the City’s competitive procurement process when a written determination has been made by a department director and approved by the City Manager that there is only one vendor practicably or reasonably available to provide a service. 

ResourceX is a Sole Source Vendor because they meet the following criteria:

1) The vendor is the original software provider and required software is not reasonably available from another vendor; and

2) The vendor provides a unique service and no similar service is available or suitable.

Strategic Plan Critical Success Factor

Effective Governance/Professional Administration

Innovative Infrastructure and Asset Management

Sound Fiscal Stewardship

Fiscal Impact (Amount/Source):

The fiscal impact to the City is $65,000 in year one and $35,000 each subsequent year.  This item was not in the 2018 budget but staff recommends spending fund balance from the general fund in order to have the tools implemented in time for development of the 2020 budget.  The annual fee of $35,000 is budgeted in 2019.   

Attachments:

Contract and End User License Agreement - Updated 10/02/18

March 6, 2018 City Commission Meeting Materials

August 14, 2018 Work Session

Reviewed By: (for CMO use only)

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