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HomeMy WebLinkAbout#24 - RFP for Operational Audit of Admin and FinanceDATE: January 18, 2022 REGULAR TO: Honorable Mayor and City Council AGENDA ITEM: Request for Proposals for Operational Audit of Administration and Finance SUBMITTED BY: Jake Dickson, Assistant City Administrator BACKGROUND: The City Council budgeted for an Operational Audit of the Administration and Finance Departments in 2022. ISSUE BEFORE COUNCIL: Should the Council issue a Request for Proposals (RFP) for an Operational Audit of the Finance and Administration Departments? PROPOSAL DETAILS/ANALYSIS: Staff is proposing that the Operational Audit include the following Scope of Services: •Review Department staffing levels against comparable communities and industry standards, as wellas future staffing needs.o Identify staffing needs compared to Department workloads and analyze potential forDepartment growth.o Identify likely future service demands. o Identify professional development and training needs.o Analyze department staffing using capability and maturity modeling. •Review of existing organization structure and identification of gaps and duplication of services •Review of Administration and Finance core functions for process improvements, efficiencies to begained, and process simplifications •Evaluation of City communications, internal and external, including opportunities forimprovements in communication strategies, publications, and public outreach. •Analysis of Financial data and record collection, input and management processes includingpotential improvements. •Analysis of Human Resources functions including organizational culture, recruitment, andretention practices and opportunities for improvement. •Evaluate existing technology, available technology, technology gaps, and technology needs •Analyze management and administrative policies, including finance, personnel, contracting, and purchasing policies. •Evaluate collaboration and relationships with other City departments. •Analyze short-term, mid-term and long-range cost implications to any recommendations. Staff will issue the RFP the following day with submittals due February 18 and an anticipated selection date of March 15. FISCAL IMPACT: City Council budgeted $50,000 for the performance of this Operational Audit, though the fiscal impact is unknown until proposals are received. RECOMMENDATION: “Motion to approve issuance of Request For Proposals for Operational Audit of Finance and Administration Departments.” ATTACHMENTS: • RFP for Operational Audit of Finance and Administration Departments Request for Proposals Administration and Finance Departments Operational Audit City of Lake Elmo, MN January 19, 2022 Introduction The City of Lake Elmo is seeking proposals from qualified firms or individuals interested in conducting an operational audit of the Administration and Finance department operations and providing comprehensive analysis and recommendations to City staff and the City Council. The City is looking for expertise in evaluating its existing Administration and Finance department models, providing analysis on organization structure, core process evaluation and improvements, customer service, communications, and opportunities for efficiencies. Proposals should be submitted by pdf in a format suitable for emailing and for printing copies, proposals should also include five (5) bound copies and one (1) unbound copy suitable for photocopies. This may be emailed to jdickson@lakeelmo.org and must be received no later than 4:00 pm on February 18, 2022 to be considered. All inquiries about the project or the request for proposal should be directed only to: Jake Dickson Assistant City Administrator jdickson@lakeelmo.org 651-747-3908 All questions are to be submitted in writing (email is acceptable) and must be received by 4:00 pm on Friday, February 4, 2022. City responses/clarifications to questions will be forwarded to all firms by the end of the day on Tuesday, February 8, 2022. The unauthorized communication with any other staff or elected official besides the listed contact is grounds for rejection of the proposal. The City of Lake Elmo reserves the right to reject any or all proposals submitted. Following a review and ranking of the proposals by City Staff a recommendation for award will be made to the City Council. A final decision for award of the work will be made by majority vote of the City Council following successful negotiations of the terms including costs with the preferred Consultant. The City reserves the right to award the work based on the best combination of qualifications, response to the scope of services and cost at the sole discretion and in the best interest of the City. During the evaluation process, the City reserves the right to request additional information or clarifications from proposers. The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. This Request for Proposal is only a solicitation for information. The City is not obligated to enter into a contract nor is it responsible for any costs associated with the preparation of Proposals and interviews. Proposals received after the deadline will be disqualified from consideration. The City reserves the right to reject any and all proposals and to interview firms, which in the City’s judgment, will best meet City needs. It is anticipated the selection of a firm will be completed by March 15, 2022. Description of the Government and Project Background A. Principal Contact The principal contact with the City will be Jake Dickson, Assistant City Administrator, who will coordinate the assistance to be provided by the City to the Consultant. B. Description of Government The City of Lake Elmo, incorporated in 1926, is a Minnesota Statutory City with an Optional Plan A form of government. It has a mayor elected at large for a four-year term and four council members also elected at large for four-year terms. As the policy-making body of the City, the City Council is responsible for the overall operation of the City; however, the City Council does not become involved in the day-to-day administration. The City Administrator is responsible for carrying out the Council’s policies and for the administration of all City business. The City encompasses approximately 25 square miles. The City has a population of approximately 11,500 and is located in central Washington County. The City has approximately 85 miles of streets, is home to Lake Elmo Regional Park in the center of the city along with over a dozen city parks throughout the community and has four recreational lakes. The city has both urban and rural areas. The significant population centers are located along I-94, the Old Village area and Tri Lakes area in the northwest corner of the city. More information about the City of Lake Elmo can be obtained on our website at www.lakeelmo.org C. Background Information The City of Lake Elmo Administration department is responsible for City Council support, human resource activities, elections, licensing, communications, and other City Departments. The Administration Department operates on a $555,181 budget and is staffed by a City Administrator, Assistant City Administrator, City Clerk, and Deputy Clerk. The Finance Department is responsible for all financial reporting, record keeping, accounting, utility billing, and preparation of the annual budget. Assessing services are performed via contracted relationship with Washington County, charges for services are included in the Administration budget. The Finance Department operates on a $163,049 budget and is staffed by a Finance Director, Accountant, and Utility Billing Clerk. The Administration and Finance Departments are also funded by utility funds and additional budgets within the General Fund. Scope of Work The City of Lake Elmo is seeking professional services for evaluation of the functions performed and services provided by the Administration and Finance departments. This evaluation is intended to be an objective operations assessment to understand what is working, what could be improved within the Administration and Finance departments, and how it can be structured and operated. The following scope of services describes the areas for evaluation based on best practices and the most efficient and effective delivery of services. If the consultant advises that there are other items that should be examined to achieve the foregoing general goals, or that a review of some of the following would likely result in little or no useful information or would not be cost- effective, the City is willing to consider adjustments to this scope of services. The evaluation should include engagement with City staff, including executive staff and Administration and Finance Department employees, as well as with elected officials. • Review Department staffing levels against comparable communities and industry standards, as well as future staffing needs. o Identify staffing needs compared to Department workloads and analyze potential for Department growth. o Identify likely future service demands. o Identify professional development and training needs. o Analyze department staffing using capability and maturity modeling. • Review of existing organization structure and identification of gaps and duplication of services • Review of Administration and Finance core functions for process improvements, efficiencies to be gained, and process simplifications • Evaluation of City communications, internal and external, including opportunities for improvements in communication strategies, publications, and public outreach. • Analysis of Financial data and record collection, input and management processes including potential improvements. • Analysis of Human Resources functions including organizational culture, recruitment, and retention practices and opportunities for improvement. • Evaluate existing technology, available technology, technology gaps, and technology needs • Analyze management and administrative policies, including finance, personnel, contracting, and purchasing policies. • Evaluate collaboration and relationships with other City departments. • Analyze short-term, mid-term and long-range cost implications to any recommendations. General Requirements of Submittal Responses to this request for proposals should include the following information in the order prescribed. Submissions must be received by 4:00 p.m. on February 18, 2022 for a proposal/response to be considered by the City: • Cover letter and introduction including the name of the firm, address, and the name and contact information of the person(s) authorized to represent the company regarding all matters related to the proposals. • Name and contact information of the firm’s project manager that would be assigned to the project. • A statement of qualifications of the firm and the project manager and other key team members assigned to perform the work including 1-page resumes of key individuals • A statement of the firm’s understanding of the work required and the manner in which the firm plans to approach it. Describe how the firm will approach project and implementation related to meeting deadlines, developing project layout, approach to evaluating/selecting alternatives and the firm’s expectation of the City’s responsibilities. • Proposed work plan that identifies the tasks necessary to respond to the Scope of Services and to meet the project requirements as described in this RFP. A final work plan will be developed following selection of the Consultant. • Identification of the deliverables • References from at least three (3) clients from similarly sized and situated cities with similar projects, within the last five (5) years, that are familiar with the firm’s quality of work and the firms performance including schedule and budget control. Include the contact name and telephone number. • Schedule: A thorough and detailed schedule should be presented outlining key milestone completion dates and proposed deliverables. • Provide any additional information that you feel is pertinent in the City’s decision on selecting a Consultant. Fee and Timeline Please submit the fee for your services on this project and include a timeline for these services. The consultant shall break down the fees as follows: • Proposed cost of each scope of work listed above • Hourly rates for all consultant employees who are expected to work on the project. These rates shall be the agreed upon rates for any additional services requested by the City of Lake Elmo above what is detailed in the RFP. • Reimbursable costs include detail of service or item and applicable charge per unit. • Not to exceed cost for the Project. Completion is anticipated within approximately of 120 to 180 days of an executed agreement. Proposal Submission Directions Please send an electronic copy (PDF) of your responses to this Request for Proposal. Proposals should also include five (5) bound copies and one (1) unbound copy suitable for photocopies. Proposals are to be received at the offices of the City of Lake Elmo no later than 4:00pm on February 18, 2022. Proposals may be emailed to jdickson@lakeelmo.org or sent to: City of Lake Elmo Attn: RFP- Administration and Finance Department Operational Audit 3880 Laverne Ave N, Suite 100 Lake Elmo, MN 55042 Please direct questions to Jake Dickson at 651-747-3908 Following the review of the received Requests for Proposals by the City, firms may be contacted for additional information or to participate in an interview process. General Evaluation Criteria The City of Lake Elmo will evaluate proposals based on experience performing operational analyses for municipalities or other similar authorities. Proposals will be evaluated on the following criteria: • Thoroughness and understanding of the tasks to be completed; • Background and experience in organizational analysis and evaluation; • Staff expertise and overall experience of personnel assigned to the work; • Time required to accomplish the requested services; • Responsiveness to requirements of the project; • Recent public sector experience, preferably in a municipal setting, conducting similar studies, and; • Cost of the Proposal. Rights of Review The City of Lake Elmo reserves the right to reject any or all quotes, to request additional information from any or all applicants or waive any informality in the bids as is determined to be in the best interest of the City. Affirmative Action The City of Lake Elmo requires affirmative action and, therefore, the contractor selected shall not discriminate under the contract against any person in accordance with federal, state, and local regulations. Contract Execution The contractor chosen will be required to enter into a contract with the City of Lake Elmo for the proposed work prior to commencement of any work (see attached draft contract). The contractor chosen will also be required to provide a certificate of insurance demonstrating compliance with the minimum insurance requirements. The information below is being provided as part of this request for proposals to give contractors an understanding of the City’s expectations with respect to contract execution. A. Negotiations and Contract Execution The City reserves the right to negotiate the final terms and conditions of the contract to be executed. Should the City and contractor be unable to agree upon the entire contract, the City reserves the right to discontinue negotiations, select another contractor, or reject all of the proposals. Upon completion of negotiations agreeable to the City and the contractor, a contract shall be executed. B. Contracting Ethics 1. No elected official or employee of the City of Lake Elmo who exercises any responsibilities in the review, approval, or implementation of the proposal shall participate in any decision, which affects his or her direct or indirect financial interests. 2. It is a breach of ethical standards for any person to offer, give, or agree to give any City of Lake Elmo employee or Council person, or for any City of Lake Elmo employee or Council person to solicit, demand, accept, or agree to accept from another person or firm, a gratuity or an offer of employment whenever a reasonable prudent person would conclude that such consideration was motivated by an individual, group or corporate desire to obtain special, preferential, or more favorable treatment than is normally accorded the general public. 3. The contractor shall not assign any interest in this contract and shall not transfer any interest in the same without the prior written consent of the City. 4. The contractor shall not accept any private client or project which, by nature, places it in ethical conflict during its representation of the City of Lake Elmo.