Request for Proposal to Provide Public Works/Municipal Utility Organizational Exploration

Transcription

1 Saint Paul, MN Tel: Fax: LETTER OF TRANSMITTAL February 12, 2014 Mr. Philip Kern, Delano City Administrator City of Delano and Delano Municipal Utilities (DMU) 234 2nd Street North P.O. Box 108 Delano, Minnesota Re: Request for Proposal to Provide Public Works/Municipal Utility Organizational Exploration Dear Mr. Kern: On behalf of the Springsted team, we are pleased to submit our proposal to provide a Public Works/Municipal Utility Organizational Exploration. We greatly appreciate your consideration of our proposal and work plan. The Springsted team consists of a combination of experienced municipal government professionals in the fields you are seeking, with proficient skills to meet and exceed your study expectations. The Springsted team will carefully analyze present conditions, operations and structures; conduct a thorough evaluation of ideas and options; and incorporate financial analysis and planning models as required to fully understand the benefits, costs and risks. Our team works seamlessly within our specialty areas, and our coordination results in practical and realistic ideas and recommendations. We have carefully studied your Request for Proposals and are confident we can partner with you to successfully accomplish all your objectives for this important study. Thank you very much for the opportunity to submit our proposal. We are available to meet with you to answer any questions and review our process and work plan. Feel free to contact me at or dunmacht@springsted.com. Respectfully submitted, David J. Unmacht kmd

2 City of Delano, Minnesota and Delano Municipal Utilities (DMU) Proposal to Provide Public Works/Municipal Utility Organizational Exploration 1. Statement of the Company s Qualifications Saint Paul, Minnesota Office: Toll-Free: Fax: advisors@springsted.com Springsted is one of the largest and most established independent public sector advisory firms in the United States. For nearly 60 years, we have continually grown in the range of our client relationships, the comprehensiveness of our services and our prominence within the industry. Our managed growth is focused on providing municipal governments with a balance of national perspective and local expertise. Springsted is a women-owned business and is certified as a Women s Business Enterprise ( WBE ) by the City of Saint Paul, Minnesota. Three employee-owners lead Springsted and our 60 staff members. Our headquarters are located in Saint Paul, Minnesota, with additional offices located close to our clients throughout the Midwest and Mid-Atlantic states. Specifically, our regional offices include Kansas City, Missouri; Milwaukee, Wisconsin; Des Moines, Iowa; Richmond, Virginia; Denver, Colorado and Los Angeles, California. Springsted is unique among advisors in the range and quality of its comprehensive service offerings. With a foundation in public finance, Springsted has expanded services to include all related financial and management areas. Our five practice groups cover: Operational Finance / Fiscal Planning Housing and Economic Development Investments Organizational Management / Human Resources Public Finance Often, the answer to a challenge requires multiple perspectives. These complementary groups provide our clients access to each perspective, with dedicated staff and service resources to see both the immediate and long-term outcomes. The City of Delano and Delano Municipal Utilities (DMU) work plan is a very good example of how we combine and coordinate our internal disciplines. Our Management Consulting Services division provides local governments with the broadest array of products and services in the industry; extending and complementing the typical scope of financial advisory services. Whether it s an organizational management study, job classification and comparable worth analysis, or comprehensive capital improvement planning model, Springsted s consultants respond to your changing needs. City of Delano, Minnesota and Delano Municipal Utilities (DMU). Proposal to Provide Public Works/Municipal Utility Organizational Exploration 1

3 2. List of Lead Team Members, Including their Qualifications Project Manager Mr. David Unmacht Saint Paul, Minnesota Consultants Mr. Nick Dragisich Saint Paul, Minnesota Ms. Patty Kettles Saint Paul, Minnesota David J. Dave Unmacht Project Manager Mr. Unmacht is Director of Springsted s Organizational Management/Human Resources group. He is a long time local government professional who brings a passion and commitment to excellence in his service and relationships. Mr. Unmacht brings more 15 years of county administration experience, having worked for Scott and Dakota counties, Minnesota. He has also worked as City Manager in Prior Lake and City Administrator in Belle Plaine, Minnesota. Mr. Unmacht s professional career has been leading communities through change and challenging experiences. He has a master s in Public Administration from Drake University and a bachelor s degree in Business Administration and Political Science from Wartburg College. Mr. Unmacht was the recipient of the Minnesota Association of County Administrators (MACA) Joe Ries Excellence in County Management Award in 2000 and the Minnesota City/County Management Association (MCMA) Award for Management Excellence in Mr. Unmacht is also a Credentialed Manager with the International City/County Management Association (ICMA) and a community faculty member with Metropolitan State University in Saint Paul, Minnesota. Mr. Unmacht has extensive experience in working with public works departments. His career as a city administrator and his work as a county administrator allowed him to oversee comprehensive public works operations. He is thoroughly knowledgeable about their functions, operations and business lines. His consulting experience involving comparable work includes public works/municipal utility projects with the City of Melrose and Willmar Municipal Utilities. City of Delano, Minnesota and Delano Municipal Utilities (DMU). Proposal to Provide Public Works/Municipal Utility Organizational Exploration 2

4 Nicholas R. Nick Dragisich, PE Executive Vice President Mr. Nick Dragisich is team leader for Springsted s Management Consulting Services team. He has over 28 years of management experience, including service as a city administrator and city engineer. He joined Springsted Incorporated as a Management Consultant in 2000 and become the team leader for Management Consulting Services in Mr. Dragisich has been directly responsible for or involved in numerous utility studies, expense and cost analysis as well as in the development of Excel -based computer models for utilities in Iowa, Kansas, Maryland, Minnesota, Missouri, North Carolina, North Dakota, Virginia, Washington and Wisconsin. He holds a master s degree in business administration, a bachelor s degree in civil engineering and is a licensed professional engineer in Minnesota and Washington. Patricia L. Patty Kettles, CIPFA Vice President and Director of Quantitative Services Ms. Patty Kettles has over 17 years of experience working with Springsted clients on various projects, including performing utility rate analyses and financial feasibilities, financing options, capital improvement programming and debt management. Ms. Kettles holds a master s in business administration and a bachelor s degree in finance. In addition to the summary biographies of key team members above, detailed resumes for each is available upon request. If during the course of the study we identify an analytical skill or need that requires an additional team member, we will discuss this with the City and obtain your input before moving forward. Project Manager The project will be coordinated and managed by Mr. David Unmacht. This will ensure greater accessibility and will promote an ease in communication and scheduling flexibility. He will be responsible for all aspects of the process, work product and communication with City and Utility officials. He will meet with the Sub-Committee early in the process and on-going as needed to obtain input and keep the local officials informed and aware of the project status. Mr. Unmacht will ensure that the team works effectively and efficiently and accomplishes all of the tasks on time and on budget. In the role of project manager Mr. Unmacht will be fair, objective and unbiased in all communications and relationships. We have identified a series of standards and expectations in our relationship and we believe you will find each of these qualities in the work of the Springsted team. Organized and effective meeting management; Extensive knowledge of city government and municipal utilities; Flexible process to adapt to the City and DMU s goals and objectives; Fair, objective and impartial to all participants; No preconceived outcomes or conclusions; Stimulate and encourage open discussion and creative ideas and input; Practical and experience-based writers; and Excellent listeners and communicators. City of Delano, Minnesota and Delano Municipal Utilities (DMU). Proposal to Provide Public Works/Municipal Utility Organizational Exploration 3

5 3. Outline of the Proposed Techniques/Process to be Employed to Real the Goal The overall approach Springsted will use for this study has proven to be successful in working on similar projects and comparable studies. It is comprehensive, yet keeps within budget by its efficiency. The details of the approach are tailored to the particular issues and questions being asked by the scope of services. This approach achieves the best possible efficiency and ensures that our staff spends the most time in the areas they understand best. Study Objectives The following study objectives are factored into the proposal techniques and process. The City and DMU are seeking recommendations as to the optimal structure for public works and utility operations. A minimum of four changes are occurring in the growth and evolution of the community: demographics, service expectations, additional infrastructure and technological advances. These four drivers of change as noted by the RFP will have an impact on the existing and future services and will be factored into the study process and work plans. In order to successfully review and evaluate the organizational structures and operational improvements, the Springsted team will be exploring the following five key components: Existing organizational structures, both strengths and weaknesses; Organizational structures, resource inputs and service level expectations in communities of similar size (both current and projected); We will work with the Sub-Committee to identify the communities Capital improvement and equipment planning models; Changing demographic trends, service expectations and technological opportunities; and Existing contracts for service provision (i.e. wastewater treatment plant operation). We understand the current work is planned, performed and managed separately by the City and DMU respectively. Our goal is to partner with you to research, study and identify an optimal operations structure to efficiently manage the collective community resources while providing critical public services. To that end we will not only review structures and operations, but also cultures and systems as they play an instrumental role in any change and transition process. Phase I The following four tasks represent Phase I of the study process. Task I. Develop Project Action Plan We will schedule a meeting with the Sub-Committee immediately upon selection to introduce the team, discuss the tasks, timetables, mutual expectations, resource needs and any important issues that need to be resolved for a successful study. We will also review our travel plans for the initial site visit and plan a tight schedule of meetings for the visit in order to efficiently use everyone s time. The action plan will include a list of officials we should meet with during the site visits. Task II. Review Background Information Some of our recommendations are based on quantitative and historical data. At the beginning of the study, we will identify the information that is needed to support our analysis. We understand both the City Administrator and General Manager are available to help in our requests. We will work with you on how to collect this information in the most efficient and effective manner. City of Delano, Minnesota and Delano Municipal Utilities (DMU). Proposal to Provide Public Works/Municipal Utility Organizational Exploration 4

6 Task III. Meet with City and Utility Officials and Stakeholders We will schedule our first site visit to begin the analysis and to interview all essential officials. During the site visit, our project team will conduct a series of meetings with identified City and DMU officials and stakeholders to develop a thorough understanding of culture and systems, existing structure and conditions and to learn what these individuals believe are the major issues and opportunities. We will work with the City and DMU to identify the best way to obtain as much input and stakeholder feedback as practical. As the process moves forward we will likely schedule follow-up interviews and meetings with a select group of individuals. Task IV. Data Analysis Springsted will conduct a thorough review and analysis of data (historical, present and future projections) and ensure that our quantitative content is timely, accurate and relevant. Phase I Deliverable At the conclusion of Phase I, the Springsted team will schedule a meeting to present our overview and summary of findings on the each of the primary topics. The purpose of this meeting will be to present the general data and findings and to receive important and timely feedback on the content before proceeding to Phase II. Phase II After the completion of Phase I and delivery of the initial findings, the Springsted team will begin Phase II as described below. Task I. Identify Options and Ideas for the Future Starting from the baseline information in Phase I, we will develop ideas and options for the possible future coordination and cooperation of the Public Works and DMU operations. Task II. Identify Critical Issues to be Resolved We will also identify any possible issues that may have short term impacts on a long term strategy. We will prioritize essential issues and identify specific needs and suggestions for addressing them. Task III. Develop Phased Plan We will develop a thorough and easily understandable phasing plan that addresses all objectives within the study (and any other issues that may have come up from our work). In partnership with the City and DMU, we may be able to offer a prioritization process using identified criterion to determine which issues should be addressed first and which can be handled at a later date. Task IV. Develop Report Based upon the interviews, data analysis, findings and discussions with the City and DMU, we will prepare a Report. The Report will include all components as previously discussed. We will provide the City and DMU with an initial draft and offer the opportunity to review and comment before finalizing. Phase II Deliverable At the conclusion of Phase II, the Springsted team will submit a Report with our findings and recommendations. We will prepare and submit as many copies as required. The Springsted team s relationship with the City and DMU does not end after the Report is completed. We are available if questions arise or if any issues need clarification after the Final Report is completed. We are responsive to questions and inquiries about the Report and/or implementation and follow-up. City of Delano, Minnesota and Delano Municipal Utilities (DMU). Proposal to Provide Public Works/Municipal Utility Organizational Exploration 5

7 4. Fee Proposal for Services We propose to complete the Public Works/Municipal Utility Organizational Exploration as described in the proposal on an hourly basis not-to-exceed $22,500, excluding out-of-pocket expenses such as mileage and copies. At this time we are not in a position to assign total number of hours to specific team members; these decisions will be made as we move forward with the study. For purposes of breaking down the fee we are using an average hourly rate of $185. In order to be thorough and successful in our process, we anticipate (between all team members) trips to the City, including data collection, interviews, briefings and updates, findings and report presentations. Out-of-pocket costs will-not-exceed $750. Should the City request and authorize additional work outside the scope of services described in this proposal, we would invoice the City at either our standard hourly fees or at an agreed upon fee based on the additional scope requested. Additional work includes work outside the scope of services as described in this work plan including, but not limited to: Work related to a special request Ongoing consulting services Title Rate Principal and Senior Officer $220 Project Coordinator and Assistant Vice President $190 Analyst $155 Associate $145 Support Staff $65 5. Additional Relevant Information Process and Outcome Credibility The Springsted team will bring an unsurpassed commitment to fairness and quality; in fact one of our distinctive qualities is the commitment we have to ensure the success of the study. To that end, our experience and project approach take into consideration two key variables: process credibility and outcome credibility. Process credibility is the realization to all involved, in particular the elected officials, staff and appointed board members that the methodology used is credible, reasonable and fair to all concerned. In addition, the information and communication must be transparent, honest and timely. Outcome credibility is the realization that the information and data used to develop the findings and recommendations is comprehensive, complete and applied consistently and appropriately without bias or preference to any particular person, persons or individual agenda. If these two objectives are realized, the recommendations, outcomes and future implementation plans are on a strong foundation. This distinction is unique in our business and is a contributing factor to the benefits and strengths of the Springsted team. City of Delano, Minnesota and Delano Municipal Utilities (DMU). Proposal to Provide Public Works/Municipal Utility Organizational Exploration 6

8 If you are interested in reaching out to obtain input into the work of the team, in particular, Mr. David Unmacht, the Project Manager, feel free to contact these individuals. References for Related Studies Willmar Municipal Utilities, Minnesota Organizational Analysis (2012) Mr. Wesley Hompe, General Manager City of Melrose, Minnesota Organizational Analysis (2010) Mr. Mike Brethorst, City Administrator References for Mr. Unmacht s Project Management Work Kandiyohi County, Minnesota Department Study ( ) Mr. Larry Kleindl, County Administrator City of Chanhassen, Minnesota Fire Study (2013) Ms. Laurie Hokkanen, Assistant City Manager City of Delano, Minnesota and Delano Municipal Utilities (DMU). Proposal to Provide Public Works/Municipal Utility Organizational Exploration 7