Loading...
08-0611_GOVERNMENT FINANCE OFFICERS ASSOCIATION_Personal Services AgreementPERSONAL SERVICES AGREEMENT THIS AGREEMENT is made, entered into, and shall become effective this 11th day of June, 2008, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and Government Finance Officers Association (hereinafter referred to as the "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant regarding the City's proposal for Long -Term Vision and Strategic Business Planning and WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1. Scope of Work. The scope of work to be performed by the City shall consist of those tasks as set forth in Exhibit "A - Statement of Work - Long -Term Vision and Strategic Business Planning City of San Juan Capistrano," and Exhibit "B - GFOA Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano", attached and incorporated herein by reference; the provisions in Exhibit "A" shall control any conflicts between provisions in Exhibit "A" and Exhibit "B." To the extent that there are any conflicts between the provisions described in Exhibit "A" and those provisions contained within this Agreement, the provisions in this Agreement shall control. Section 2. Term. This Agreement shall commence on the effective date and shall terminate when all services required hereunder shall be completed, no later than May 2009. Section 3. Compensation. 3.1 Amount. Total compensation for the services hereunder shall not exceed $102,730 as set forth in Exhibit "C" attached and incorporated herein by reference. 3.2 Method of Payment. Subject to Section 3.1, Consultant shall submit invoices based upon each phase of work that has been satisfactorily completed. The amount of each phase invoice shall be as outlined in Exhibit "C". Invoices shall be paid within 30 days of the GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano City's approval of the deliverables for the related phase of work. A deliverable will be deemed "satisfactorily completed," and GFOA will invoice the City 1) upon notification of satisfaction by the City's designed representative; or 2) 30 -days subsequent to the date GFOA provided the City with the deliverable, whichever comes first. The City may request one set of revisions to a deliverable within 30 days from the date GFOA sends the first version of the deliverable. If revisions are requested, the date the phase has been satisfactorily completed will occur 30days following the date GFOA sends the revised deliverable to the City. 3.3 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to City. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of City, and shall obtain no rights to any benefits which accrue to City's employees. Section 5. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. Section 6. Changes to Scope of Work. For extra work not part of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 7. Familiarity with Work and/or Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed; (2) if applicable, it has investigated the work site(s), and is aware of all conditions there; and (3) it understands the facilities, difficulties and restrictions of the work to be performed under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, it shall immediately inform the City of this and shall not proceed with further work under this Agreement until written instructions are received from the City. Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Work Product. At the completion of the work, Consultant shall have delivered to City at least one (1) copy of any final reports and/or notes or drawings containing Consultant's findings, conclusions, and recommendations with any supporting documentation. All reports submitted to the City shall be in reproducible format, or in the format otherwise approved by the City in writing. Proprietary and Confidential to GFOA 2 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services. In the course of performance hereunder, Consultant may use (and may authorize the City's personnel to use) certain Consultant Intellectual Property to assist in engagement completion. The City shall not have or obtain any right or title to or interest in such Consultant Intellectual Property (or in any modifications or enhancements thereto). Consultant makes no express or implied warranties of any kind regarding the Consultant Intellectual Property. Section 13. Indemn' To the fullest extent permitted by law, Consultant agrees to protect, defend, and hold harmless the City and its elective and appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of Consultant, Consultant's agents, officers, employees, subcontractors, or independent contractors hired by Consultant in the performance of the Agreement. The only exception to Consultant's responsibility to protect, defend, and hold harmless the City, is due to the negligence, recklessness and/or wrongful conduct of the City, or any of its elective or appointive boards, officers, agents, or employees. Consultant's liability for any matter arising under this Agreement or from any transaction contemplated herein, including without limitation the provision of the Services, shall not exceed the actual amount paid by an insurer as a result of any claim made with respect to such matter under Consultants insurance policies (the "Liability Cap"). The City acknowledges that the Liability Cap is a material term upon which Consultant has relied in entering into this Agreement and that Consultant would not have entered into this Agreement in the absence of such provision. Section 14. Acceptance and Release The City shall be deemed to have accepted all Services in a given Phase and the work product resulting therefrom upon the City's payment of the invoice received from Consultant in respect of the Services. Upon such acceptance, the City shall be deemed to have released the Consultant from any additional work under such Phase of the Services. Proprietary and Confidential to GFOA 3 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 15. Insurance. On or before beginning any of the services or work called for by any term of this Agreement, Consultant, at its own cost and expense, shall carry, maintain for the duration of the agreement, and provide proof thereof that is acceptable to the City, the insurance specified below with insurers and under forms of insurance satisfactory in all respects to the City. Consultant shall not allow any subcontractor to commence work on any subcontract until all insurance required of the Consultant has also been obtained for the subcontractor. Insurance required herein shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A- Class VII or better. 15.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive General Liability coverage in an amount not less than one million dollars per occurrence ($1,000,000.00), combined single limit coverage for risks associated with the work contemplated by this agreement. If a Commercial General Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this agreement or the general aggregate limit shall be at least twice the required occurrence limit. 15.2 Comprehensive Automobile Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non -owned vehicles in an amount not less than one million dollars per occurrence ($1,000,000.00). 15.3 Worker's Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Worker's Compensation Employer's Liability Insurance in the statutory amount as required by state law. 15.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self -retention amount, and an additional insured endorsement naming City, its officers, employees, agents, and volunteers as additional insureds as respects each of the following: Liability arising out of activities performed by or on behalf of Consultant, including the insured's general supervision of Consultant; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or automobiles owned, leased, hired, or Proprietary and Confidential to GFOA 4 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded City, its officers, employees, agents, or volunteers. 15.5 Errors and Omissions Coverage Throughout the term of this Agreement, Consultant shall maintain Errors and Omissions Coverage (professional liability coverage) in an amount of not less than One Million Dollars ($1,000,000). Prior to beginning any work under this Agreement, Consultant shall submit an insurance certificate to the City's General Counsel for certification that the insurance requirements of this Agreement have been satisfied. 15.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverages reduced, until after thirty (30) days' written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 15.7 Terms of Compensation. Consultant shall not receive any compensation until all insurance provisions have been satisfied. 15.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the City has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement. Section 16. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Consultant. In addition, this Agreement may be terminated by any party for cause by providing ten (10) days' notice to the other party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 17. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Cindy Russell To Consultant: Government Finance Officers Association 203 N LaSalle, Suite 2700 Chicago, Illinois 60601 Attn: Anne Spray Kinney Section 18. Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 19. Dispute Resolution. In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"). Section 20. Publications As an educational, nonprofit, professional membership association, Consultant reserves the right to publish non -confidential documents describing the results of, or created during, the Services performed under this Agreement. Consultant will not publish any item with the name of the City without obtaining the prior written consent of the City. Section 21. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano IN WITNESS WHEREOF, the parties hereto have executed this Agreement. CITY OF SAN JUAN CAPISTRANO By: Dave Adams, City Manager GOVERNMENT FINANCE OFFICERS ASSOCIATION By: &fyt fic Lo Eft2gRKA MOLLO b"A. MAIW677k6' APPROVED AS TO FORM: P.. Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano EXHIBIT "A" Statement of Work Long -Term Vision and Strategic Business Planning City of San Juan Capistrano Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Methodology, Staffing, and Workplan......................................................................10 1.1 The Long Term Vision and Strategic Business Planning Team 10 1.2 The Work Plan 11 ProjectAssumptions..................................................................................................22 Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano 1. Methodology, Staffing, and Workplan 1.1. The Long Term Vision and Strategic Business Planning Team 1.1.1. Organizational Chart Anne Kinney Strategic & Business Plan Mar GFOA Strategic & Business Plan --, Financial Plan Mgr GFOA Financial Analysts ---------------------------- 1.1.2. Duties of Team Members City of San Juan Capistrano Team Members 1. Strategic Plan Steering Committee a. Review work product b. Sponsor project 2. Project Leader a. Provide resources as needed b. Enable staff to accomplish tasks c. Model behaviors needed for successful planning d. Encourage other team members 3. Project Coordinator a. Manage day-to-day scheduling and work requirements 4. Financial Staff a. Participate in financial analysis meetings b. Gather data c. Conduct forecasting d. Conduct analysis 5. Staff for Strategic & Business Plan a. Complete business plans Proprietary and Confidential to GFOA IV GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano GFOA Team Members: 1. Anne Kinney, Project Manager and Strategic & Business Plan Manager a. Work with steering committee and project leader on overall project direction b. Facilitate meetings c. Interview stakeholders d.. Conduct analysis e. Coordinate tasks related to Strategic Business Plan and performance measurement f. Facilitate meetings g. Interview stakeholders It. Conduct analysis Shayne Kavanagh, Financial Planning Manager a. Coordinate tasks related to financial planning b. Facilitate meetings c. Interview stakeholders d. Conduct analysis 4. David Burna, Facilitation Assistance a. Assist with focus group facilitation as required 7. Mike Mucha, Lead Strategic/Business Plan Analyst a. Assist Strategic & Business Plan manager as required 8. Brenda Boyle, Financial Plan Analyst a. Assist financial plan manager as required Third -party Team Members: 1. Chris Swanson, founder of Government Finance Research Group a. MuniCast configuration and data loading 1.2. The Work Tasks Task # Description Responsibilities Designate City Project Leader and A Manager; Define project success A.i Designate project leader Assist Lead A.ii Designate project manager Assist Lead Coordinate meeting to establish & clarify A.iii project expectations Assist Lead Conduct meeting to establish & clarify A.iv project expectations Lead Participate Develop project expectations agreement A.v document Lead Assist A.vi Develop project plan and timeline Lead Assist Informal project expectations agreement and formal project plan and timeline (in Deliverable 1A MS Excel or MS Project) Lead Assist Proprietary and Confidential to GFOA 1 I GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Establish a Project Steering Team and Task B supporting teams B.i Designate project Steering Team Assist Lead Develop requirements for team B.ii membership Lead Assist B.iii Write team charter Lead Assist B.iv Identify supporting teams and structure Lead Assist B.v Identify supporting team members Assist Lead B.vii Coordinate meeting to accomplish tasks Assist Lead B.viii Conduct meeting to accomplish tasks Lead Participate Create Project Steering Team Charter Deliverable 1B and develop structure of supporting teams Lead Assist Task C Community involvement strategy C.i Identify primary stakeholders and groups Assist Lead Identify information desired from CA stakeholders Lead Assist Identify timing for when information is C.iii needed Lead Assist Identify best tools for engaging C. iv stakeholders Lead Assist C.v Implement tools (excepting focus groups) None Lead C.vi Coordinate meeting to accomplish tasks Assist Lead C.viii Conduct meeting to accomplish tasks Lead Participate Community involvement strategy Deliverable 1C document Lead Review Phase 2. Create Mission/Vision Task A Gather stakeholder input Interview key stakeholders inside City AJ government Lead Participate Establish an approach and schedule for A.ii conducting surveys and focus groups. Lead Assist Identify key survey objectives and A.iii questions Lead Assist Design detailed survey format and A.iv conduct survey None Lead A.v Develop summary of survey results None Lead Summary memo of stakeholder interviews Deliverable 2A and fetus-greups Lead Review Task B Develop preliminary mission/vision Develop "straw -man" mission/vision B.i based on stakeholder interviews Lead Assist Interview key stakeholders outside City B.ii government Lead Assist Refine "straw -man" mission/vision for best fit possible to City, before focus groups B.iii are conducted. Participate Lead Deliverable 213 Strawman mission/vision statement Lead Assist Proprietary and Confidential to GFOA 12 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Task C Focus Groups Review background materials related to previous City planning efforts and to better understand the San Juan Capistrano's unique public policy C.i environment and culture. Lead None Develop a format, agenda, questions and other materials to be used in the focus groups, with the City's input and C.ii feedback. Lead Participate Identify the types of participants to be C.iii included in the focus groups Lead Assist Recruit individuals for focus groups. GFOA can give feedback on ideas City C.iv has for recruits. Participate Lead Facilitate the focus group sessions and C.v record information gathered Lead None Synthesize information gathered into a format useful for strategic planning purposes and prepare a written summary C.vi of focus group results Lead None Present the results of focus groups held to the project steering team for feedback and C.vii validation Lead Participate Prepare a brief report of the focus group results for the focus group participants to C.viii keep them engaged Lead Participate Deliverable 2C Results of focus groups report Lead Participate Task D Mission and Vision Workshop Design workshop format, agenda, D.i structure Lead Assist Coordinate workshop scheduling, D.ii logistical support Assist Lead D.iii Conduct workshop Lead Participate Facilitate deliberation on mission/vision ,D. iv statement Lead Participate D.v Articulte mission/vision Participate Lead Record deliberation and mission/vision D.vi articulated by City Lead None D.vii Formally appprove mission/vision None Lead Deliverable 2D Summary memo of workshop results Lead Review Phase 3. Analysis Task A Financial Analysis AJ Draft core values for financial sustainablity Lead Assist A.ii Review and approve core values None Lead Review existing policies, make suggestions for improvement and for new A.iii policies to support core values Lead Review Develop new policy statements, as A.iv needed Assist Lead A.v Approve new and improved policies None Lead A.vi Provide template for Municast data Lead None Proprietary and Confidential to GFOA 13 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano collection A.vii Collect and clean data for Municast None Lead A.viii Load data into Municast Lead None Conduct meeting to review major assumtions and qualitative factors A.ix influencing revenue & expenditures Lead Participate Determine how assumptions will be A.x expressed in Municast Lead Assist Make forecast. The City will take a lead role with GFOA's assistance in Municast configuration and training, revenue & expenditure assumptions/analysis, and refining of the model. The City will A.xi ultimately make and own the forecast. Participate Lead Determine debt indicators to be used for A.xii analysis Lead Assist A.xiii Provide data on current debt levels None Lead Provide data on likely future capital A.xiv projects None Lead Conduct high-level assessment of debt A.xv position Lead Assist Identify major imbalances in financial A.xvi position Lead Assist Compare mission & vision with existing plans. Determine financial impact of other plans (land use, general plan). The City will take the lead role, especially in A.xvii assessing the impact of the land use plan Assist Lead Develop Financial Analysis Report. City will be actively involved in deciding what issues to focus on, gathering data, and A.xv contributing its own analysis of issues Lead Assist Deliverable 3A Financial Analysis Report Lead Review Task B Environmental Analysis Identify need for additional stakeholder B.i interviews Lead Assist Conduct up to four hours of additional B.ii interviews Lead Participate B.iii Conduct additional interviews None Lead Review other City plans and identify any divergence from these plans that may be anticipated as a result of this planning B.iv process Lead None B.v Provide "menu" of financial indicators Lead None B.vi Select indicators Assist Lead B.vii Identify up to 5 comparable jurisdictions Lead Assist B.viii Perform comparisons using CAFR data Lead None B. ix Gather historical data for indicators None Lead B.x Construct up to ten financial indicators Lead Assist B.xi Construct additional financial indicators None Lead Summary report of environmental analyses including recommendations for Deliverable 3B financial strategies Lead Assist Proprietary and Confidential to GFOA 14 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Phase 5. Business Planning & Performance Measurement Business planning and performance Task A measurement template development Develop business planning and AJ performance measurement templates Lead Review Begin to develop information required by A.ii templates Review Lead Deliverable 5A Deliver templates Lead Review Busines planning & performance Task B measurement development Develop workshop/training format for city B.i staff Lead Assist B.ii Conduct workshop Lead Participate Coordinate workshop and provide B.iii logistical support Assist Lead Proprietary and Confidential to GFOA 15 Two day planning retreat/workshop with Task A City staff and City Council Get early feedback from Project Steering AJ Committee on plan elements to date Participate Lead A.ii Create workshop format & presentation Lead Review Identify need for and develop other supporting documentation for workshop. The City may have a lead role in developing certain supporting documents. A.iii if GFOA and the City agree as such. Lead Assist Schedule and coordinate workshop. Invite A. iv participants and address other logistics Assist Lead A.v Conduct workshop Lead Participate AM Write summary of workshop Lead None Summary memo recapping workshop Deliverable 4A issues and conclusions Lead Review Task B Focus Groups Develop a format, agenda, questions and other materials to be used in the focus B.ii groups Lead Participate Facilitate the focus group sessions and B.v record information gathered Lead None Synthesize information gathered into a format useful for strategic planning purposes and prepare a written summary B.vi of focus group results Lead None Present the results of focus groups held to the project steering team for feedback and B.vii validation Lead Participate Prepare a brief report of the focus group results for the focus group participants to B.viii keep them engaged Lead Participate Deliverable 4B Results of focus groups report Lead Participate Phase 5. Business Planning & Performance Measurement Business planning and performance Task A measurement template development Develop business planning and AJ performance measurement templates Lead Review Begin to develop information required by A.ii templates Review Lead Deliverable 5A Deliver templates Lead Review Busines planning & performance Task B measurement development Develop workshop/training format for city B.i staff Lead Assist B.ii Conduct workshop Lead Participate Coordinate workshop and provide B.iii logistical support Assist Lead Proprietary and Confidential to GFOA 15 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano B.iv City staff complete business plans Review Lead Deliverable 5B Workshop delivered Lead Participate Task C Business plan consultation Provide up to 15 consultant hours to CA support business planning Lead None C.ii Decide how hours are to be used Assist Lead C.iii Authorize use of hours None Lead Up to 15 hours of consultant support Deliverable 5C provided Lead None Phase 6. Drafting the Plan Task A Committee validation Develop outline for Strategic Business A.i Plan Lead Assist Conduct meeting to review progress and validate direction and Strategic Business Plan outline and contents of staffs A.ii business plans Lead Participate A.iii Steering committee issues validation None Lead A.iv Coordinate meeting Assist Lead Deliverable 6A Outline for Strategic Business Plan Lead Review Task B Draft Plan Write and assemble full plan (compile business plans). The City will need to take a strong assist role and may lead the development of certain sections, where B.i deeper, hands-on experience is important. Lead Assist Make copies as may be required for B.ii distribution to stakeholders None Lead Deliverable 6B Draft Plan Lead Review Task C Forecast update and refinement Determine scenarios and issues arising through planning process to incorporate C.i into forecast Assist Lead Update Municast to incorporate scenarios CA and issues Lead Assist C.iii Update and refine forecasts Participate Lead Deliverable 6C Municast model updated Lead Assist Task D Final Plan Submit plan for review and comment to D.i stakeholder groups Participate Lead DA Modify plan as required Participate Lead Design format for public meeting to review D.iii plan Assist Lead Conduct meeting. GFOA will actively assist in planning the presentation or can D. iv lead the presentation Assist Lead D.v Modify plan as required Participate Lead Proprietary and Confidential to GFOA 16 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Develop any special publishing format for business plan, including binding, graphics, D.vii etc. None Lead D.viii Print/Publish final business plan None Lead Deliverable 6D Public Meeting held Assist Lead Designing link between business plan and Task A budget GFOA will provide approximately 25 hours B.i of assistance for this task. Possible Lead Assist B.ii detailed activities are are below. Lead None Deliverable 88 Responsiblities can vary based on City's Lead Review direction for use of hours. Responsiblities Task C and tasks can be finalized as the project AJ progresses. Assist Lead A.ii Review current budget process Assist Lead CJ Design linkage between major forecast Assist Lead assumptions and budget development A.iii assumptions Assist Lead A.iv Design budget accountability mechanisms Assist Lead A.v Design budget request process and forms Assist Lead A.vi Authorize use of hours None Lead A.vii Implementation of budget links None Lead Deliverable 7A 25 Hours of assistance provided Lead None Phase 8. Documentation & Wrap -Up Task A Project review Review project with Strategic Plan AJ Steering Committee Lead Assist Deliverable 8A Review conducted Lead Assist Develop on-going Strategic Business Plan Task B process Develop on-going Strategic Business Plan B.i process Lead Assist B.ii Depict process in flow -chart process map Lead None Deliverable 88 Flow -chart process map Lead Review Transition to the Steering Committee for Task C implementation Define committee's responsibility, accountability, authority, and rescruces CJ for implementing the plan Assist Lead Develop charter for Steering Committee's C.ii implementation work Lead Participate C.iii Execution of implementation strategies None Lead Deliverable 8C Charter for the Steering Committee Lead Review Note that GFOA provides electronic copies of deliverables and other work in Word, Excel, and/or PDF formats Proprietary and Confidential to GFOA 17 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano 1.2.1. Deliverable Expectations Phase 1 — Project Start-up 1 A. Designate a project leader and project manager and define project success. GFOA will help develop a Project Expectations Agreement (informal) which will be approved by the Project Leader or other designated City staff. A formal project plan and timeline will also be finalized at this point. 1 B. Establish a Project Steering Team and supporting teams. GFOA will write a charter to clarify responsibility, accountability, authority, and resources of the Steering Team and supporting teams. 1 C. Community Involvement Strategy. GFOA will deliver a community involvement strategy document that includes a timetable, mechanisms for community involvement and communication, specific tools and techniques to involve the community, and a strategy to engage the local media. Phase 2 — Creating the Mission and Vision 2A. Summary of Stakeholder Input. GFOA will interview key stakeholders both inside and outside of city government and will produce a summary report of information obtained from interviews, focus groups, and other stakeholder input mechanisms the City chooses to use (e.g., telephone surveys). 2B. Straw man mission/vision. GFOA and the City will develop a "straw man" mission vision that can be presented to participants in public engagement forums, particularly focus groups. The intent is to provide the participants with a starting point and something to react to. 2C. Results of focus groups report. This is a brief report to describe the results of the focus groups. The report will provide a more direct recounting of the focus groups' input as well as broader themes synthesized from GFOA's overview of all of the groups. 2D. Mission and Vision Workshop Summary Memo. GFOA will facilitate a public workshop to present stakeholder input and develop a mission and vision statement. GFOA will provide a format, supporting tools, and a brief memo of results. The City has the lead role in developing a mission and vision with GFOA support throughout the process. Phase 3 - Analysis 3A. Financial Analysis Report. GFOA will conduct an analysis of the City's financial situation and provide the results in a Financial Analysis Report. At minimum, the analysis is to include the following activities: Financial policy review Proprietary and Confidential to GFOA 18 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Preliminary revenue/expenditure forecasting (the City will begin to load data into the Municast model and begin developing forecasts as early in the project as possible) • Debt analysis • Imbalance analysis ■ Analysis of financial impact on and of existing plans 313. Environmental Analysis Summary. GFOA will work with the City to conduct a comprehensive environmental analysis to identify the most important issues facing the City of San Juan Capistrano over a five-, 10-, and 20 -year period. In order to develop this list of issues, the environmental scan will identify 1) internal strengths and weaknesses, 2) external threats and opportunities, and 3) community resources the City might take advantage of. GFOA will produce a brief summary of the environmental analysis that contains key service, financial, and other issues and the City's strengths, weaknesses, opportunities, and challenges. This summary will also document any divergences from existing plans, such as the general plan and the land use plan. Phase 4 — Issues and Strategies Validation 4A. Planning Retreat Summary Memo. GFOA will design and conduct a two-day workshop/retreat to present a draft set of issues as well as preliminary recommendations on strategies, overall objectives, and a first cut of an action plan. The workshop/retreat will involve City staff on the first day and City Council members and executives on the second day. GFOA will design and facilitate the workshops, provide documents, and produce a written summary of workshop output and outcomes. During the retreat, any divergence from existing plans will be addressed. 4B. Results of focus groups report. This is a brief report to describe the results of the second set of focus groups. The report will provide a more direct recounting of the focus groups' input as well as broader themes synthesized from GFOA's overview of all of the groups. Phase 5 — Business Planning and Performance Measurement 5A. Business Plan Templates. GFOA will develop and deliver a set of business planning and performance measurement templates to help City staff develop the information required for a business plan. The templates will be designed to produce an "issue driven" business plan, rather than one focused on departments or other functional divisions of the City. 513. Business Planning & Performance Measurement Development Workshop. GFOA will work with City staff to develop the business plan and performance measures. GFOA's and the City's objective will be to train staff to create business plans. GFOA will deliver a workshop or other mechanism for developing business plans, performance measures, and targets. The City has the lead role in business plan development with GFOA support throughout the process. 5C. Business Plan Consultation. GFOA can make itself available on a per -hour basis to provide consultation and staff augmentation to the City, as required to support the completion of the business plan. GFOA will work with the City to support the completion of the business plan for Proprietary and Confidential to GFOA 19 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano up to 15 consultant hours. Phase 6 — Drafting the Strategic Business Plan 6A. Outline for Strategic Business Plan. A meeting will be held with the Strategic Plan Steering Committee to review the materials and progress made to this point. The Committee's validation will allow the Strategic Business Plan to be drafted. GFOA will provide a proposed outline for the Strategic Business Plan and facilitate a meeting to validate direction and Strategic Business Plan contents. B. Draft Plan. GFOA and City staff will cooperate to finalize a draft of the Strategic Business Plan. The Strategic Business Plan will be based on the strategic, operational, and financial elements produced throughout the project. C. Municast Model Updated. The information provided through the foregoing phase will enable the City and GFOA to refine the revenue and expenditure forecast. It is anticipated that the City will lead this forecast update, but GFOA will advise how to best incorporate new information into the Municast model. GFOA will update the Municast model to incorporate assumptions needed for the City to revise the forecast. D. Public Meeting to Present Plan. After the draft plan is delivered, there will be a review and comment period followed by a public meeting to present the plan. GFOA will help the City design the meeting and will participate in the meeting. Phase 7 — Linking to the Budget Process 7A. 25 hours of Consultation to Design Link between Business Plan and Budget. GFOA will work with City staff on a process for assuring that the plan becomes the basis for the budget — or, at minimum, is a critical input to the budgeting process. GFOA will work with City for up to 25 hours to advise on linkages, develop forms, etc. Phase 8 — Documentation and Wrap -Up 8A. Project Review Conducted. GFOA will review the project with the Strategic Plan Steering Committee. Taking the time to reflect on the project and identify what aspects of the project the City wants to save, delete, and change going forward is the first step towards developing an on- going Strategic Business Planning cycle. 8B. On-going Strategic Business Plan Process Map. GFOA will propose a final on-going Strategic Business Planning model for the City that can be maintained independent of consultant support. GFOA will deliver a flow -chart process map to depict the final recommended process, including the links into the budget process. 8C. Charter for Strategic Plan Steering Committee's Implementation Role. GFOA will help the Committee transition to plan implementation. GFOA will help the City develop a charter to define the Committee's responsibility, accountability, authority, and resources for the Proprietary and Confidential to GFOA 20 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano implementation of the plan. 1.2.2. Timeline July Aug Sept Oct Nov Dec Jan Feb March ,iase,�r . Proje4W, irt-uv AW, :-iaa A. Designate Leader B. Establish Teams C. Involvement Strateg I-ioc MR1 roups1w,-, C4 iss I PLA e lik:-M 2 - iloWMun 4- A. Stakeholder Input B. Mission & Vision Workshop Phas0 -A"l is: - I �1,111 A A. Financial Analysis B. Environmental Analysis �;ilda7 i5o2n� Phasc =Issues iW"tegieA4V A. Planning Retreat WORM, mug eat Phase 5 -.Business Perf6im 3�, A. Templates Developed B. Plan & Measures Developed C. Plan Consultation rPh:�6 6rAT6�thcsW_" - 4 A. Committee Validation B. Draft Plan C. Forecast Update D. Final Plan "43 Phase'7 - LinkAn Budgi-t4r_!."; F A. Designm� Link 1,Phase 8meufAQ"Wra �,,_,­W`�,77,7 A. Project Review B. On -Going Planning Process C. Transition to Implementation Proprietary and Confidential to GFOA 21 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The Citv of San Juan Capistrano 2. Project Assumptions 2.1. Listing of Project Assumptions • City staff provides data and participates in interview and other activities requested by GFOA. • A single point of contact from the City is identified; • GFOA undertakes no more than the indicated number of on-site trips within the price included in this proposal. o Trip #I - Interview stakeholders on defining success and perception of environment, meet with Strategic Plan Steering Committee, conduct technical planning workshops (forecasting, environmental modeling, etc.). 3 days, 2 consultants o Trip #2 — Focus group facilitation #1 — 4 days, 2 consultants o Trip #3 — Conduct mission workshop, 1 day, 2 consultants o Trip #4 — Strategic issues retreat, 2 days, 2 consultants o Trip #5 — Business plan workshop, 2 days, 2 consultants o Trip #6 — Present draft plan to committee, t day, 2 consultants o Trip #7 — Present draft plan to public, 1 day, 2 consultants o Trip #9 — Focus group facilitation #2 — 4 days, 2 consultants • GFOA's role in the development of a plan is consultative and advisory in nature. The City will play an important role in data collection, will participate as partners in plan development, and will make any final decisions on strategy and direction. • The project scope is not expanded beyond the items listed in the proposal at the proposed (discounted) price, unless so negotiated with the GFOA. • As an educational, nonprofit, professional membership association, GFOA reserves the right to publish non -confidential documents describing the results of, or created during, the services described in this scope of work. GFOA will not publish any item with the name of the City of San Juan Capistrano without obtaining prior written consent of the government. • GFOA is partnering with the Government Finance Research Group to provide the MuniCast financial analysis and sensitivity analysis system. GFOA's role is not to provide forecasts of revenue and expenditures on which the City can rely. The City will have responsibility for collecting data to be included in MuniCast. Data elements include: o Historic annual revenues, expenditures, other sources and uses, beginning FYI 999- 2000, for all City appropriated funds o Current year budgeted or estimated (if available) data o Historic budgeted/estimated fund balances o Debt service and other liabilities (e.g. retirement, healthcare, etc.) o Staff positions data for same time period o Baseline and alternative forecast scenarios, extending out to 2030 (or other fiscal period indicated by City), to be jointly developed by City and GFOA team • GFOA develops its reports to be clear and concise. We focus on brevity in order to make our reports accessible to the public and elected officials. • GFOA submits deliverables and other documents electronically in Microsoft Word, Excel, and or PDF formats. • GFOA is a non-profit membership association made up of members like the City of San Juan Capistrano, and therefore we have no owners' equity to fall back on. Therefore, GFOA's Proprietary and Confidential to GFOA 22 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano liability and indemnification under any agreement reached with the City must be limited to the extent of fees paid by GFOA's insurance coverage. (Please note that this limitation would require an amendment to the City's standard Personal Services Agreement.) • 12 focus groups would be facilitated by GFOA during initial issue identification. • The same 12 focus groups would be facilitated by GFOA during strategy development. • Each of the foregoing focus group meetings will take place within a 1 week period so that GFOA consultants can make one trip to conduct the focus groups. • The focus groups would last between 2.5 and 3 hours each. • The City will develop a report after the second set of focus groups to let the focus groups know how their input impacted the report and to engage them for plan execution. Proprietary and Confidential to GFOA 23 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano EXHIBIT "B" THE RESEARCH AND CONSULTING CENTER GOVERNMENT FINANCE OFFICERS ASSOCIATION January 30, 2008 Proprietary and Confidential to GFOA 24 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Table of Contents Section1 - Cover Letter.....................................................................................................26 Section 2 - Background and Approach..............................................................................28 A. GFOA's Understanding of the City's Project...........................................................28 B. Objectives to be Accomplished................................................................................28 C. The Work to be Done................................................................................................29 D. Out -of -Scope Activities............................................................................................35 Section 3 - Timetable/Schedule of Required Tasks...........................................................35 Section4 - Identify the Team............................................................................................36 A. The Proposing Firm.................................................................................................36 B. Contact Information..................................................................................................37 C. Location of the Work................................................................................................37 D. Organization Chart ....................................................................................................37 E. Proposed Team Members..........................................................................................38 Section 5 - Qualifications and Related Experience...........................................................38 A. GFOA's Strategic and Financial Planning Expertise...............................................38 B. Recent Directly Related Experience.........................................................................39 C. Key Personnel...........................................................................................................40 D. Other Public Entities Served.....................................................................................43 Section 6 - Other Information............................................................................................43 A. Optional Services......................................................................................................43 B. About Our Discount..................................................................................................44 C. Key Assumptions......................................................................................................44 Proprietary and Confidential to GFOA 25 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 1 - Cover Letter January 30, 2008 Cindy Russell Assistant City Manager City of San Juan Capistrano City Manager's Office 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Ms. Russell: The Government Finance Officers Association (GFOA) is pleased to present a proposal to assist the City of San Juan Capistrano with the development of a long-term vision and strategic business plan. GFOA has significant experience providing these types of consulting services and we have completed extensive research on best practices in strategic planning, long-term financial planting, and performance measurement among our 17,500 members. We are excited about the chance to work with the City of San Juan Capistrano on this project. The key elements of our proposal include: • An Integrated Approach to Planning, Goal Setting, and Budgeting. GFOA's research on best practices is consistent with the City's desire to create a long-term strategic, financial and operational context for preparing annual budgets, and for using performance measurement to link the various components of such a system. Our goal for this project i5 to concurrently work to assure that individual tasks are completed on time and are of a high quality and also to assure that all the tasks and products, whether short - or long-term, are faithful to the overall direction that is set in the mission, vision, and long term strategies that are developed. Our focus throughout the project will be to work with the City to ask and answer the following questions: o Strategic: What are the most important "big picture" strategic issues and concerns facing the City over the long-term? o Operational: What actions will the City take to address these issues? What is the schedule for these activities? Who is responsible? How will progress be measured and accountability maintained? o Financial: What are the long -run financial implications of the strategic issues and operational plans? How can the City maintain financial sustainability over the long -tern? An Approach that Assures that the Financial Situation is Systematically Addressed. Too often, organizations prepare strategic plans in virtual isolation from an understanding of the available financial resources. Elegant strategic plans, strategies, and service targets may be created, but after the planning process has ended, these organizations then struggle to fund goals that may already be publicly announced. Using expertise in long- term financial planning, and leveraging information from our membership base of 17,500 finance professionals, GFOA's approach provides early and equal attention to the financial situation in planning. GFOA is the leading authority on long-term financial Proprietary and Confidential to GFOA 26 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano planning for local government. GFOA published the popular book Financing the Future: Long -Term Financial Planning for Local Government enclosed with this proposal) and has provided advice to many of our member governments on this subject. Further, GFOA staff has authored articles in numerous journals, including Government Finance Review, Public Management, School Business Affairs, and School Planning and Management, and has spoken at conferences and training sessions nationwide. A Long -Term, Implementation -Ready Approach. Our proposal is designed so that strategies and operational plans are ready to go for the City's next budget while at the same time enabling the City to carry forward the Strategic Business Planning process independent of future consultant support. The best plan if not properly implemented is simply a costly theoretical exercise. Our approach provides for a transition to implementation, if possible before our engagement has ended, by working with City staff to design implementation plans and link these plans to the City's budget. An Inclusive and Consensus -Driven Approach. GFOA believes public participation in strategic planning is essential. Our approach will engage the community to be real contributors to the plan at multiple stages of the process. The most powerful means for implementing a plan is if the stakeholders of the plan strongly support it. A plan development approach that builds consensus among stakeholders will result in a plan that garners a wide base of support. Municast. GFOA will provide the City with the Municast computerized revenue and expenditure forecasting software system. Municast is a Microsoft Excel -based tool that is currently in use by over 20 California municipalities. Municast is powerful and easy to use. The City can learn more about Municast at www.municast.com. If you have any questions regarding this proposal, please contact either me using the contact information below, or Shayne Kavanagh, at 312-578-2276 or skavanagh@gfoa.org. Sincerely, Ir Anne Spray Kinney Director, GFOA Research and Consulting Center 312-977-9700 akinnev(a)gfoa.org Proprietary and Confidential to GFOA 27 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 2 - Background and Approach This section includes: A) Our understanding of the City's project; B) The objectives to be accomplished; C) The work to be done; and D) Out -of -scope activities. A. GFOA's Understanding of the City's Project The City of San Juan Capistrano has begun to transition from a growing city to a more mature, "built -out" community. The vast majority of available land has been developed (approximately 90% in GFOA's understanding). This means that the City will not be able to count on new revenue from growth to the extent it did in the past. Also, a number of indicators point to the United States entering a period of recession or, if not officially a recession, then at minimum an economic downturn. The City wishes to take steps now to maintain its solid financial position through its transition to a fully developed community and through economic downturns. The City has developed a number of long-term plans, such as a redevelopment plans, water and sewer master plans, and an open space needs assessment. However, the City has identified the need for an overarching strategic vision and a long-term vision that is aligned with financial capacity. Therefore, the City has initiated this project to develop a strategic plan that is supported by a solid long-term financial analysis, detailed implementation strategies, and performance measures. GFOA terms this a "Strategic Business Plan." It is our understanding that the City would like the Strategic Business Plan to provide the context for its annual budget process. Currently, the City's budget process begins in December; however, the City anticipates that this schedule may change as a result of the work done on this project. B. Objectives to be Accomplished Objective 1: The City has articulated a clear and concise mission and vision for the community that is consensus -based. (A mission and vision statement will be developed early in the project so that it can be used as a yardstick and reference point for the remainder of the project.) Objective 2: The City has created a written Strategic Business Plan that articulates critical strategic and fiscal issues, includes objectives and strategies for addressing these issues, and links these to programs, services, and activities related to daily operations and consequently to the budget process via performance measures that will be used to gauge progress. (The plan will be based on a comprehensive environmental analysis that includes a thorough financial situational analysis.) Objective 3: The City's Strategic Business Plan contains a long-term financial perspective and provides strategies for maintaining fiscal stability. (The plan includes an assessment of the city's financial structure, projects revenues and expenditures over the long term, identifies potential structural and cyclical imbalances, and proposes courses of action for addressing them.) Objective 4: The City has the appropriate knowledge base, tools, and processes for regularly reviewing its financial situation, including a financial trend monitoring system and a computerized financial modeling and forecasting system. (GFOA's approach provides templates and tools that can be adopted by the City and focuses on working with City staff throughout the Proprietary and Confidential to GFOA 28 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano project to provide staff with hands-on experience.) Objective 5: The City has a performance measurement and management system that supports the implementation of the strategic, operational, and financial goals and that provides key indicators of progress so that elected officials, the public, and city managers will be able to track progress and know how the City is performing. Objective 6: The project is conducted using an approach that • Is inclusive and is perceived as such so that the resulting plan has broad community support. • Involves city staff as partners with consultants so that the planning cycle and system can be sustained independent of external advisory or consulting support in the future. C. The Work to be Done GFOA will work with the City to accomplish the above objectives in eight phases, as is described in greater detail later in this section. The key written deliverable of this project will be a "Strategic Business Plan." The Strategic Business Plan will contain the highest priority strategic issues facing the City, the strategies the City will pursue, and the actions it will take to address these issues and their financial implications. The process for providing this deliverable has three essential components: • Strategic: What are the most important "big picture" strategic issues and concerns facing the City over the long-term? • Operational: What actions will the City take to address these issues? What is the schedule for these activities? Who is responsible? How will progress be measured and accountability maintained? • Financial: What are the long -run financial implications of the strategic issues and operational plans? How can the City maintain financial sustainability over the long-term? Phase 1 — Project Start-up Task A. Designate a Project Leader and Project Manager, and Define Project Success. GFOA's experience is that this type of organization -wide project will require careful coordination, communication, and cooperation, both between GFOA's team and City staff, as well as among City agencies. Therefore, we strongly recommend that the City designate a Project Leader who is committed to a successful project outcome and to addressing the issues that prompted the City to initiate this project and who has the authority to make decisions regarding the process. In addition, we recommend that the City identify a Project Manger to coordinate the project on a day-to-day basis and serve as the City's liaison with the GFOA team. Finally as part of this first task, GFOA has found that even though the City would execute a formal contract with GFOA, it is extremely helpful to spend some time at the very beginning defining and clarifying expectations regarding how the project will be conducted and the results that the City hopes for and expects, and documenting these expectations so that they can be referred to, and revised, if necessary, during the course of the project. This will help us to meet your expectations. Deliverable: A City -designated Project Leader and Project Manager, and a Project Expectations Agreement (informal), which would be developed by GFOA and approved by Proprietary and Confidential to GFOA 29 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano the Project Leader or other designated City staff. A formal project plan and timeline will also be finalized at this point. => City Role: Coordinate meetings with GFOA, identify Project Leader and Manager, and identify and agree on expectations for project success. Task B. Establish a Project Steering Team and supporting teams. GFOA recommends that the City designate a Project Steering Team (which will also serve as the City's Strategic Planning Coordinating Team). The team will give feedback and guidance to GFOA and City staff and provide continuity to carry over into implementation of the Strategic Business Plan. GFOA will help the City develop requirements for team membership and write a charter to clarify the Committee's responsibility, accountability, authority, and resources. The Strategic Business Planning process is also likely to require supporting teams to work on various issues and tasks associated with constructing a plan. GFOA will work with the Project Leader and Project Manager to identify teams and advise on the knowledge, skills, and ability needed by members. => Deliverable: Creation of a Project Steering Team and charter, as well as a structure of supporting teams. City Role: Coordinate meetings, approve the charter, agree on teams and name team members. Task C. Community Involvement Strategy. GFOA and the City will collaborate to develop a community involvement strategy for the planning process. Community involvement is important to ensure that planners consider a comprehensive set of issues, not just those identified by "insiders" and to increase the likelihood of strong community support for the plan. The community involvement strategy should include a timetable, mechanisms for community involvement and communication, specific tools and techniques to involve the community, and a strategy to engage the local media. => Deliverable: Community involvement strategy document. z* City Role: Provide knowledge on the approaches that work best for the San Juan Capistrano community and approve a process for going forward. Phase 2 — Creating the Mission and Vision Task A. Gather Stakeholder Input. GFOA will begin by interviewing key stakeholders, both inside and outside of city government. City staff may wish to work with GFOA's team on these interviews. GFOA will also work with the City to establish and approach and schedule for conducting focus groups and phone surveys of constituents. GFOA's proposal assumes that GFOA would help design the focus group approach and conduct a small number (no more than four) of focus groups in cooperation with City staff. GFOA will also work with City staff to design other stakeholder input opportunities, as identified in the community involvement strategy. Please note that because of the cost and intense resource requirement of conducting a phone survey, GFOA's proposal and price do not include this activity. Because this is not a core capability of GFOA, we would have needed to include a sub -contractor to provide this service and also the costs of GFOA administration and supervision of the sub -contract. We believe that Proprietary and Confidential to GFOA 30 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano if the City decides a phone survey is essential to the process, having the City directly procure telephone survey services would provide equal benefit at lower cost. We therefore assume that, if the City and GFOA agree that phone surveys are needed, the City would contract separately for this service. => Deliverable: A summary of information obtained from interviews, focus groups and other stakeholder input mechanisms the City chooses to use (e.g., telephone surveys). => City Role: Work together with GFOA to: define interviewees, schedule interviews, conduct interviews (if desired by the City), and conduct focus groups. The City would also contract for a phone survey if it is decided that one is needed, and conduct other stakeholder input opportunities that may be identified in the public involvement strategy to be developed. Task B. Mission and Vision Workshop. The GFOA will facilitate a public workshop to present stakeholder input and develop a mission and vision statement. The mission and vision articulate where the City wants to go and what it wants to become over the next five, 10, and 20 years. The workshop will use consensus -driven techniques. => Deliverable: Provide workshop agenda/structure, conduct workshop, provide brief memo of results. => City Role: Provide logistical support and coordination, and participate in Phase 3 — Analysis Task A. Financial Analysis. GFOA will conduct an analysis of the City's financial situation, at minimum to include the following activities: • Financial policies. GFOA will identify, catalog, and review the city's financial policies with the assistance of City staff (particularly to identify existing policies). • Preliminary Revenue/Expenditure Forecasting. GFOA will work with the City to develop the "first cut" of a 20 -year forecast, based on status -quo assumptions. GFOA proposes to use the Municast forecasting system. • Debt Analysis. GFOA will conduct a high-level assessment of the City's current and likely future debt position based on the City's capital improvement plan and information included in the City's most recent comprehensive annual financial report. • Imbalance Analysis. GFOA and City staff will identify potential future imbalances in the City's financial and recommend strategies for overcoming these imbalances. => Deliverable: GFOA will lead the development of these analyses and will provide the results in a Financial Analysis Report. City Role: Provide information to GFOA to conduct analysis. Work closely with GFOA to use the Municast system to make the forecast. Work with GFOA to identify imbalances and to create mitigating strategies. Task B. Environmental Analysis. GFOA will work with the City to conduct a comprehensive environmental analysis to identify the most important issues facing the City of San Juan Capistrano over a five-, 10-, and 20 -year period. In order to develop this list of issues, the environmental scan will identify internal strengths and weaknesses and external threats and opportunities, as well as community resources the City might take advantage of. The following Proprietary and Confidential to GFOA 31 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano techniques will be used: • GFOA will use information gleaned from stakeholder input activities described in Phase 2, Task A above, and also conduct additional interviews as needed in order to assure broad stakeholder input that includes, at minimum, the perspectives of City Council members, City staff, members of boards and commissions, as well as stakeholders outside City government, such as the business community, overlapping units of governments, citizen groups and individual citizens. • We will also review of other City plans such as land -use, redevelopment, and sewer -water master plans, etc. • We will conduct comparative analysis of financial condition indicators with other municipalities (up to five). The comparative analysis will rely on "industry standard" indicators of financial condition. • The City and GFOA will construct a "financial trend monitoring system" of indicators to reveal favorable and unfavorable trends in the financial environment. => Deliverable: An brief summary of the environmental analysis that contains key service, financial, and other issues and the City's strengths, weaknesses, opportunities, and challenges. This summary will also provide GFOA's recommendations on strategies the City might pursue and new master plans that need to be developed in response to an issue. =:> City Role: Provide information to GFOA to conduct analysis, participate in various analytic activities, and review and provide feedback on the summary document. Phase 4 — Issues and Strategies Validation Task A. Planning Retreat: GFOA will design and conduct a two-day workshop/retreat to present a draft set of issues, as well as preliminary recommendations on strategies, overall objectives and a first cut of an action plan, involving City staff on the first day and City Council members and executives on the second day. On the first day, in the morning, we will review the Environmental Analysis Report, validate the report findings, and present preliminary issues, strategies, objectives and the outlines of an action plan. In the afternoon, City staff will work in groups to validate, revise, and supplement this information, as well as take the first steps toward creating an action plan that will later be used as the framework for the operations section of the Strategic Business Plan. On the second day, GFOA will facilitate a workshop with the City Council and executive staff. In the morning, GFOA will present information similar to that presented to City staff, with the exception that this version will include staff input from the first day of the retreat. In the afternoon we will facilitate a discussion focused on validating, revising, and supplementing the key elements that will go into a written plan. => Deliverable: Documents, workshop facilitation, and presentations as well as retreat design and a written summary of workshop output and outcomes. => City Role: Scheduling, coordination, invitations, and other workshop logistics as well as participation. Work with GFOA to validate plan elements to date with Strategic Plan Steering Committee. Phase 5 — Business Planning and Performance Measurement Task A. Template Development. Business planning describes implementation plans and Proprietary and Confidential to GFOA 32 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano schedules, high-level financial impacts of strategic goals/action-plans, and performance measures and other mechanisms for monitoring progress on implementing the plan. Business planning also assesses risks inherent in the proposed course of action and identifies contingencies. GFOA will develop and deliver a set of business planning and performance measurement templates for City staff to help City staff develop the information required for a business plan. The templates will be designed to produce an "issue driven" business plan, rather than one focused on departments or other functional divisions of the City. =. Deliverable: Business Plan templates delivered. => City Role: Review templates and begin to develop information required by templates in order to prepare for Task B. Task B. Business Planning & Performance Measurement Development. GFOA will work with City staff to develop the business plan and performance measures. GFOA's and the City's objective will be to train staff to create business plans. Another objective will be to develop a set of strategic measures that communicates progress on strategic issues to elected officials, staff, and the public. From these strategic measures, a larger set of operational measures will cascade down to departmental operations. These operational measures will help departments to relate their activities to the City's strategic goals and track their progress. City staff will also identify performance targets based on the measures to help the City gauge its progress towards goals. => Deliverable: A workshop or other mechanism for developing business plans, performance measures and targets. => City Role: Logistical support, participation in the process and completion of business plans. Task C. Business Plan Consultation. It is unlikely that the Business Plan will be totally complete at the end of the workshop or training sessions. City staff will have to refine and further develop the plan as a result of what is discussed at the workshop. GFOA can make itself available on a per -hour basis to provide consultation and staff augmentation to the City, as required to support the completion of the business plan. => Deliverable: GFOA works with City to support the completion of the business plan for up to 15 consultant hours. City Role: Make final decision on how GFOA's hours are to be used. Complete business plans. Phase 6 — Drafting the Strategic Business Plan Task A. Committee Validation. A meeting will be held with the Strategic Plan Steering Committee to review the materials and progress made to this point. The Committee's validation will allow the Strategic Business Plan to be drafted. => Deliverable: Proposed outline for Strategic Business Plan provided. Meeting held to validate direction and Strategic Business Plan contents. => City Role: Coordinate meeting, validate Plan contents. Task B. Draft Plan. GFOA and City staff will cooperate to finalize a draft of the Strategic Proprietary and Confidential to GFOA 33 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Business Plan. The Strategic Business Plan will be based on the strategic, operational, and financial elements produced throughout the project. => Deliverable: Strategic Business Plan draft created. City Role: Participate in writing certain sections of the plan. There are some sections that may require deeper City input and where hands-on experience is important for building staff capacity to create new plans in the future. Task C. Forecast Update. The information provided through the foregoing phase will enable the City and GFOA to refine the forecast further. More in-depth information on the resource requirements needed to put the Strategic Business Plan into operation will enable the City to create more detailed spending scenarios. It is anticipated that the City will lead this forecast update, but GFOA will advise how to best incorporate these scenarios into the Municast model. => Deliverable: Advise City on how to incorporate new information into Municast. => City Role: Update Municast model and make forecast. Task D. Final Plan. After the draft plan is delivered, there will be a review and comment period after which will be a public meeting to present the plan. GFOA will help the City design the meeting and will participate in the meeting. => Deliverable: Public meeting held to present plan after the plan has received thorough review and approval by appropriate City participants. City Role: Coordinate meeting, help present plan. Phase 7 - Linking to the Budget Process Task A. Designing Link between Business Plan and Budget. The budget process is one of the most important methods for executing the Strategic Business Plan. GFOA will work with City staff on a process for assuring that the plan becomes the basis for the budget — or, at minimum, is a critical input to the budgeting process. z* Deliverable: GFOA works with City on a per -hour basis to advise on linkages, develop forms, etc. => City Role: Respond to GFOA suggestions on how to use hours and otherwise approve how hours will be used. Phase 8 — Documentation and Wrap -Up Task A. Project Review. Taking the time to reflect on the project and identify what aspects of the project the City wants to save, delete, and change going forward is the first step towards developing an on-going Strategic Business Planning cycle. => Deliverable: Review project with Strategic Plan Steering Committee. => City Role: Participate in meeting. Task B. Develop On-going Strategic Business Plan Process. GFOA will propose a final on - Proprietary and Confidential to GFOA 34 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano going Strategic Business Planning model for the City that can be maintained independent of consultant support. The final recommended process will make use of the tools and techniques used during this project, as well as lessons for how these tools and techniques can be better adapted to the City's on-going use. => Deliverables: A process map to depict the final recommended process, including the links into the budget process. => City Roles: Review and provide feedback on final process Task C. Transitioning the Strategic Plan Steering Committee to Implementation. GFOA will help the City transition the Committee's role to implementation. We will help the City define the Committee's responsibility, accountability, authority, and resources for the implementation of the plan. => Deliverables: A charter for the Steering Committee's implementation role. => City Roles: Participate in meeting to develop charter. D. Out -of -Scope Activities We believe that our proposal provides a comprehensive response to the City's RFP, however, there are some activities that are not within the scope of proposal that the City should be aware of. • Community Surveys. GFOA does not conduct community surveys. GFOA recommends that the City contract with a specialized survey firm for that service. • Land -Use Planning. While GFOA understands that land -use planning is not in the scope of the RFP, we understand that land -use is an important consideration for San Juan Capistrano. GFOA is not a land -use planning firm. If expert input is needed on land -use GFOA recommends that the City contract separately with the firm that normally supports its land - use master planning or that internal land use planning staff provide expert knowledge. In our experience, internal staff can fill this role by being integrated into the strategic business planning team structure. Section 3 - Timetable/Schedule of Required Tasks Section 2 describes all key project tasks, deliverables for each phase, and the GFOA and City's roles in each. The Gantt chart below describes the timeline for this project. Completing the project in October of 2008 will allow the City to use the Strategic Business Plan as a lead-in to its budget process. This should provide plenty of lead time for any more extensive budget procedures that the City and GFOA deem necessary. March April May June July Aug Sept Oct A. Designate Leader B. Establish Teams C. Involvement Strategy Proprietary and Confidential to GFOA 35 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano A. Stakeholder Input B. Mission & Vision A. Financial Analysis A. Templates Developed B. Plan & Measures Developed C. Forecast Update On -Going Planning Process Transition to Implementation Section 4 - Identify the Team This section includes: A) The proposing firms; B) Contact information; C) Location of the work; D) Organization chart; and E)Proposed team members. A. The Proposing Firm The GFOA is the primary proposing firm. The GFOA was established in 1906. It is the premier professional association for government finance professionals in the United States and Canada and has more than 17,500 members. As a non-profit educational organization, GFOA's mission is to enhance and promote the professional management of governments for the public's benefit. GFOA identifies and develops best practices in the area of long-range and strategic planning and budgeting and promotes them through a national training program, books and other publications, and an annual conference. The Research and Consulting Center is GFOA's research and analysis and management consulting division. The GFOA is nationally recognized for its comprehensive analytical and advisory services, as well as for its practitioner -oriented research on issues related to state and local government finance. GFOA staff work closely with practitioners to develop and disseminate recommended practices in all of the functional areas of public finance. In addition, the GFOA publishes books and periodicals, and coordinates GFOA's national training program and annual conference. Proprietary and Confidential to GFOA 36 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Since beginning operations in 1977, the Research and Consulting Center has undertaken hundreds of projects with state and local governments, federal agencies, and private sector clients. The GFOA provides financial and management consulting services in the areas of strategic plartning, long-term financial planning, performance measurement, debt capacity analysis, multi-year budgeting, and operational reviews, among others. GFOA is partnering with the Government Finance Research Group to provide the Municast financial forecasting software model. The Municast solution is 100% based on Microsoft Excel and will not require the City to purchase any new software from GFOA or the Government Finance Research Group. Municast is currently in use by over 20 California municipalities. B. Contact Information The primary contact for this proposal is Anne Spray Kinney, the Director of the GFOA Research and Consulting Center (RCC). Anne can be reached at 312-917-6102 or at akinneyAgfoa.org. The secondary contact for this project is Shayne Kavanagh, Senior Manager of Research for the GFOA RCC. He can be reached at 312-578-2276 or at skavanagh afoe a.org. C. Location of the Work GFOA proposes a combination of on-site work at the City's premises and off-site work at GFOA and Municast offices. GFOA offices are located in Chicago. Government Finance Research Group offices are located in San Juan Capistrano. D. Organization Chart GFOA proposes that the City's Strategic Plan Steering Committee play an overall governance role, while the project leader acts as the official engagement manager. GFOA also proposes that the City set up a parallel team structure to GFOA's team, including a project coordinator who will handle many of the day-to-day activities of the project. The City's team would be supervised by the City's coordinator but both the coordinator and the City's teams would have a great deal of interaction with GFOA's team as they work together on the planning process. We believe this structure will provide valuable hands-on experience for the City. Please note that the final structure and names of the City's teams would be determined jointly with the City. gic Plan Stegng o= mittee . Strategic & I Financial Plan 1 I GFOA Financial GFOA Strategic & Analysts Business Plan Analysts Proprietary and Confidential to GFOA 37 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano E. Proposed Team Members GFOA assigns a small group of highly qualified individuals to consulting projects it undertakes. Nearly all of GFOA's consultants have worked as managers in local government or hold advanced degrees in public policy or administration. All of our project managers have worked as government managers. GFOA's staff of professionals is directly involved in GFOA's continuing professional education programs (some as instructors), including national training seminars and the annual conference. Government finance is our business, and our consultants are eminently qualified to perform the type of work the City is requesting. Below are our proposed staff members. Complete bios for our team are available in "Section 5 - Qualifications and Related Experience." Project Role Team Member Name Project Manager Anne Spray Kinney Strategic & Business Plan Manager Steve Kreklow Financial Planning Manager Sha ne Kavanagh Facilitation Assistance David Burna Lead Strategic/Business Plan Analyst John Ruggini Strate icBusiness Plan Analyst Christine Lambino Strate is/Business Plan Analyst Mike Mucha Financial Plan Analyst Brenda Boyle Municast Configuration Chris Swanson Anne Kinney and Shayne Kavanagh are the team principles. Their contact information was provided earlier in this section. Section 5 - Qualifications and Related Experience This section includes: A) GFOA's strategic and financial planning expertise; B) Recent directly related experience; C) Key personnel who will be involved in the project; D) Other public entities to which we have provided services. A. GFOA's Strategic and Financial Planning Expertise GFOA's team for this project has long-term experience developing governmental strategic plans and financial plans. Anne Spray Kinney and Stephen Kreklow, senior team members on this project, have worked both as government practitioners and consultants with state, regional, and local governments to create integrated strategic planning -performance measurement -budgeting systems and also have developed strategic plans and implementation plans for sub -organizational systems, such as performance measurement and management systems and large organizational re -designs. GFOA's experience and resources in performance measurement and management are equally strong, based on the experience of team members, GFOA's research, and its ability to call on its membership base for examples of high quality processes and documents. GFOA's expertise in financial planning for local government is unsurpassed. We have been providing consulting on long-term financial planning since 2001 and we have published the leading book on the topic, Financing the Future: Long -Term Financial Planning for Local Proprietary and Confidential to GFOA 38 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Government. Shayne Kavanagh, the author of this book, is a senior member of our proposed project team. We have been invited to speak on financial planning at the annual conferences for the International City/County Management Association, that National League of Cities, as well as a number of state -level organizations including the California Society of Municipal Finance Officers. We have also published articles on financial planning in leading journals such as Government Finance Review, Public Management, and School Business Affairs. GFOA is constantly honing our expertise on this topic as well. We maintain a Web site dedicated to financial planning at www. fog a.org/Itfp, which is regularly updated with new resources. We are currently working with the National League of Cities to conduct research designed to deepen our understanding of how elected officials can participate in financial planning and plan to publish a new book on the subject in the early summer of 2008. B. Recent Directly Related Experience Below are our recent directly related experiences. Those experiences that we believe will be of most interest to the City are presented first. Milwaukee (Wisconsin) Public Schools • Description of Work: Performance Measurement and Budgeting, including identification of strategic objectives and long-range strategies (derived from previous MPS planning processes), performance measures, annual targets, and a performance-based budget within in a linked system. GFOA worked with the school district administration to identify district - wide long-term outcomes and strategies derived from previous planning efforts to guide development of performance measures and an annual performance budget, and then assisted the District to develop a performance-based budget. GFOA also provided training, meeting facilitation, and coaching to departmental managers, as well as a performance measurement and budgeting handbook. • Primary Client Contact: Michelle Nate, CFO, Milwaukee Public Schools, (414) 475- 8336, natemi(.&mail.milwaukee.kl2.wi.us. • Dates for Project: October 2006 to present. • Project Manager: Stephen Kreklow • Members of Team on Project: Anne Kinney, Steve Kreklow, Mike Mucha, Christine Lambino • Project Costs: $150,280 City of Gresham, Oregon • Description of Work: Long-term financial planning advisory services, including a debt affordability analysis and peer group analysis. • Primary Client Contact: o Terry McCall, Finance and Management Services Director, (503) 618-2372, Terry.MCCall(a.Cl.gresham.or.us, 1333 NW Eastman Pkwy, Gresham, OR 97030 o Deborah Bond, Acting Finance Director, (503) 618-2855, Deborah. Bondnci.gresham.or.us, 1333 NW Eastman Pkwy, Gresham, OR 97030 • Dates for Project: GFOA first worked with Gresham in 2001. In this project, GFOA took the lead role in developing the plan. Gresham in late 2006 sought to refresh the plan but this time GFOA took a more hands-off advisory role, while Gresham did most of the work. With GFOA's guidance they completed a new plan in 2007. Proprietary and Confidential to GFOA 39 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano • Name of Project Manager: Shayne Kavanagh (both in 2001 and 2007) • Members of Team on Project: Shayne Kavanagh, project manager, Steve Kreklow, Lead Analyst, Anne Kinney, Engagement Manager • Project Costs: 2001 - $47,500; 2006/07 - $25,000 City of Montclair, California • Description of Work: Long-term financial planning advisory services, including development of multi-year strategic business plan. • Primary Client Contact: Edward Starr, Director of Administrative Services, (909) 625- 9405, ecstarr a ci.montclair.ca.us, 5111 Benito Street, Montclair, CA 91763 • Dates for Project: GFOA first worked with Montclair in 2001. The City was very pleased with strategic planning and has asked GFOA back every summer since, with our most recent engagement completing in 2007. • Name of Project Manager: Shayne Kavanagh (starting in 2001 and each year since) • Members of Team on Project: Shayne Kavanagh, Anne Kinney, Engagement Manager • Project Costs: 2001 - $35,000; average cost for annual engagements $10,000. City of San Clemente, California • Description of Work: Assist the City with refining its financial planning process to better engage elected officials in the process. • Primary Client Contact: Pall Gudgeirsson, Treasurer/Assistant City Manager, (949) 361- 8341, GudgeirssonPksan-Clemente.org, 100 Avenida Presidio, San Clemente, CA 92672 • Dates for Project: GFOA commenced and completed this project in late 2007. • Name of Project Manager: Shayne Kavanagh • Members of Team on Project: Shayne Kavanagh, project manager, lead analyst • Project Costs: $2,000 C. Key Personnel Below are the key personnel on the GFOA team and their biographies. Anne Spray Kinney is Director of the Research and Consulting Center of the Government Finance Officers Association. Ms. Kinney has more than 20 years' experience in local government, much of it as a practitioner. Before becoming a consultant, Ms.. Kinney served as budget director and subsequently administration director for the City of Milwaukee, Wisconsin, and was the executive director of Milwaukee's regional flood control -water reclamation authority in addition to other management positions in state and local government. Before coming to GFOA, Ms. Kinney was a Senior Partner at the Public Strategies Group. Ms. Kinney has managed a broad array of organizational improvement efforts, and has conducted numerous strategic planning -budgeting -performance measurement processes and organizational assessments at the city, county and state government level. Ms. Kinney has designed and implemented integrated planning -performance measurement budgeting systems, information technology strategy, customer service and compliance plans; procurement and contracting plans and systems, and government -wide managed competition programs. Ms. Kinney has also conducted projects focused on human resource services, revenue enhancement, business process improvement, and intergovernmental service sharing. In addition to consulting, Ms. Kinney is a Proprietary and Confidential to GFOA 40 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano frequent presenter on these topics to national audiences and has published articles on strategic planning, results budgeting, performance management, privatization and outsourcing, and leadership in the public sector and has taught government financial management at the graduate level. Ms. Kinney holds a BA from American University and an MPA from the University of Illinois -Chicago. Steven R. Kreklow has more than 15 years experience as a manager in local government. Before joining GFOA he was the Budget Director and Human Resources Manager for Milwaukee Metropolitan Sewerage District and previously served as Finance & Planning Manager for the city of Milwaukee's Department of Public Works. In addition he has served as an operations manager for municipal services as diverse as parking and forestry. While at the Milwaukee Metropolitan Sewerage District, Steve was responsible for strategic and long-term financial planning and development of the operating budget and capital improvements program as well as directing internal analysis on the financing of the District's 2020 Facilities Improvement Plan. GFOA's Distinguished Budget Presentation Award Program recognized two of the budget documents prepared under Mr. Kreklow's direction for "Outstanding Use of Performance Measures." His clients include Genesee County, Michigan and the City of Milwaukee Department of Public Works where he was the project manager for a strategic planning process. He was also project manager for performance measurement system development projects at Sacramento County, California, and Milwaukee Public Schools and was a key project team member on long-term financial planning projects in Gresham, Oregon, and Rialto, California. Mr. Kreklow consults, researches, and trains in the areas of strategic planning, budgeting, financial management, performance measurement, technology, and organizational development. He also regularly teaches government finance courses for universities and continuing education programs in the Milwaukee area. Mr. Kreklow holds a Master of Public Administration from the University of Wisconsin -Milwaukee. Shayne Kavanagh is the Senior Manager of Research for GFOA. Mr. Kavanagh has worked on a number of strategic planning and long-term planning projects. He served as the project manager for projects at the City of Montclair, California, the City of Gresham, Oregon, the City of Rialto, California, and the City of San Clemente, California. Mr. Kavanagh has authored the GFOA publications Financing the Future: Long -Term Financial Planning for Local Government and Financial Policies: Design and Implementation. He has spoken on the topic of financial planning and policies at the California Society of Municipal Finance Officers, the New England States GFOA, the Michigan Government Finance Officers Association, the International City/County Management Association, National League of Cities, and GFOA annual conference. He has written articles on financial planning that have appeared in journals such as Government Finance Review, Puhlic Management, and School Business Affairs. Prior to joining GFOA, Mr. Kavanagh was the Assistant Village Manager for the Village of Palos Park, Illinois. Mr. Kavanagh graduated from with his MPA degree from Northern Illinois University where he was the ASPA student of the year for his graduating class. David Burna is a Senior Manager in the GFOA Research and Consulting Center. Mr. Burna specializes in the development and implementation of strategic planning and change management projects. Mr. Burna specializes in facilitation, business process re-engineering, and decision analysis for government. Mr. Burna has conducted business process mapping, Proprietary and Confidential to GFOA 41 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano evaluation, and re-engineering efforts for the numerous clients. Recent projects include: City of Overland Park (KS); City of Newport News (VA); City of Topeka (KS); City of Raleigh (NC); and County of Marin (CA). Mr. Burna has an MPP in Environmental Policy from Harvard University's John F. Kennedy School of Government. Mr. Burrta has worked with both private firms and public agencies on a wide variety of strategic planning projects. He has helped clients to manage stakeholder involvement, public relations, investment strategies, and mergers & acquisitions. Mr. Burna has developed training courses for technical and public sector professionals looking to enhance both their facilitation and long-range planning skills. He has implemented long-range planning solutions for institutions as diverse as the South Florida Water Management District (SFWMD), Department of Energy (DoE), Chevron Pipeline, City of New York - Parks & Recreation Department, Los Angeles Department of Public Works - Bureau of Sanitation, and the New York City Department of Environmental Protection. John Ruggini is a Manager with the GFOA and works extensively in the area of performance measurement. He manages the research for the State and Local Government Performance Measurement Sourcebook (to be published in spring 2008). He has conducted research on budget and performance measurement systems for San Luis Obispo County and provided consulting assistance to the City and County of San Francisco for a budget and performance measurement system. Mr. Ruggini also led the development of GFOA's toolkit to help local governments understand and manage their "other post -employment benefit" (OPEB) liabilities. Before joining GFOA, he worked in the City Administrator's office at the City of St. Charles, Illinois where he served as the primary coordinator for the performance measurement program in conjunction with the International City/County Managers Association's (ICMA) Center for Performance Measurement. He also conducted annual assessments of financial trends, which included benchmarked ratio analysis of the City's financial condition and assisted with the development of departmental business plans. Mr. Ruggini received his MPA from Northern Illinois University. Mike Mucha is a Consultant/Analyst with the GFOA and focuses on management and technology research and consulting. He researches local governments' use of performance measures and coordinates all GFOA training sessions on performance measurement and budgeting. Mr. Mucha has worked with the Milwaukee Public School District to implement performance-based budgeting and was involved with creating a performance measurement guidebook for Sacramento County. Mr. Mucha co -edited GFOA's recent publication: Capital Project Planning and Evaluation. Prior to coming to GFOA, Mr. Mucha worked with the Sports & Exhibition Authority of Pittsburgh and Allegheny County. He received a Master of Science in Public Policy and Management from the Heinz School of Public Policy and Management at Carnegie Mellon University. Brenda Boyle is a Consultant/Policy Analyst in the GFOA. Ms. Boyle is heavily involved in GFOA's long-term financial planning program. She has developed GFOA's training course on financial planning, conducted case -study research, and provided consulting services. She has also conducted extensive research on use of performance measurement and strategic planning at the state level for GFOA's upcoming Performance Measurement Sourcebook publication. She has also participated in a performance-based budgeting consulting project for Genesee County, Michigan. Ms. Boyle received an MPA with concentration in Public Financial Administration Proprietary and Confidential to GFOA 42 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano from Indiana University's School of Public & Environmental Affairs. Christine Lambino is a Consultant/Analyst with the GFOA. Ms. Lambino has worked with Milwaukee Public School District and Genesee County, Michigan, to implement performance- based budgeting. Ms. Lambino also assists with research related to government use of performance measures and budgeting for outcomes. Prior to working at GFOA, Ms. Lambino held positions in local governments including King County, Washington, and the Village of Wilmette, Illinois. Ms. Lambino holds an MPA from Northwestern University. Christopher J. Swanson is the founder of Government Finance Research Group (GFRG), a financial management consulting firm specializing in financial planning, research, cost analysis, econometric modeling, benchmarking and optimization modeling for local governments throughout the U.S. Chris developed an innovative financial forecasting and analysis model called, MuniCast& Municast is in use by over 20 cities across California. Chris' background includes 20 years of government and corporate financial management, including senior financial and strategic planning roles at the City of Los Angeles, United Healthcare Systems, HealthNet and The Walt Disney Company. Chris has developed complex economic and financial models, implemented performance measurement systems and led process improvement initiatives at public and private sector organizations. His academic credentials include an MBA from UCLA's Anderson Graduate School of Management and BA in Political Science from California State University, Northridge. GFRG is a sole proprietorship based in California. D. Other Public Entities Served GFOA has provided consulting services to over 100 public entities. Section 5-13 describes those of greatest relevance to this project. Section 6 - Other Information A. Optional Services This section describes services that could enhance the City's planning process, but that GFOA does not believe are essential based on the City's RFP. Additional Focus Group/Interview Support. GFOA can conduct additional focus groups / interviews over what our proposal assumes. Additional Support in Other Areas. Our approach places progressively greater responsibility on the City staff for to improve the City's ability to plan after the GFOA's engagement is completed. GFOA is happy to provide deeper support and take a more hands-on role if the City prefers. Municast Customization. Additional features can be added to Municast on a per -hour consultative basis. The City will receive the new "all funds" version of Municast which includes a great number of new features. As such, it is unlikely that the City will need to perform additional customization. Proprietary and Confidential to GFOA 43 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano B. About Our Discount GFOA conducts consulting engagements as part of our mission of identifying, helping to develop, and broadly disseminating best practices in governmental management. Because of the comprehensive nature of this project we believe that the results are likely to contribute to "best practices" that can be shared with other governments. GFOA is therefore pleased to be able to provide a 15% discount on our fees. C. Key Assumptions • City staff provides data and participates in interview and other activities requested by GFOA. • A single point of contact from the City is identified; • GFOA undertakes no more than the indicated number of on-site trips within the price included in this proposal. o Trip #I - Interview stakeholders on defining success and perception of environment, meeting with Strategic Plan Steering Committee, conduct technical planning workshops (forecasting, environmental modeling, etc.). 3 days, 2 people o Trip #2 — Conduct focus groups, 2 days, 2 people o Trip #3 — Conduct mission workshop, 1 day, 2 people o Trip #4 — Strategic issues retreat, 2 days, 2 people o Trip #5 — Business plan workshop 2 days, 2 people o Trip #6 — Present draft plan to committee 1 day, 2 people o Trip #7 — Present draft plan to public 1 day, 2 people • GFOA's role in the development of a plan is consultative and advisory in nature. The City will play an important role in data collection, participating as partners in plan development, and will make any final decisions on strategy and direction. • The project scope is not expanded beyond the items listed in the proposal at the proposed (discounted) price, unless so negotiated with the GFOA. • As an educational, nonprofit, professional membership association, GFOA reserves the right to publish non -confidential documents describing the results of, or created during, the services described in this scope of work. GFOA will not publish any item with the name of the City of San Juan Capistrano without obtaining prior written consent of the government. • GFOA develops its reports to be clear and concise. We focus on brevity in order to make our reports accessible to the public and elected officials. • GFOA is a non-profit membership association made up of members like the City of San Juan Capistrano and therefore we have no owners' equity to fall back on. Therefore, GFOA's liability and indemnification under any agreement reached with the City must be limited to the extent of fees paid by GFOA's insurance coverage. (Please note that this limitation would require an amendment to the City's standard Personal Services Agreement.) Proprietary and Confidential to GFOA 44 EXHIBIT "C" Revised Contract Fee The fee would be payable in stages as shown below. We estimate travel expenses based on 9 trips as shown in "Exhibit A - Statement of Work - Long -Term Vision and Strategic Business Planning City of San Juan Capistrano." GFOA's standard rates range from $250/hour for Senior Staff to $175 for Consultant Analysts. Phase„ =k � P # „Rroject, a Pa"men ° Phase Start-up activities and Phase 1 deliverables 1 provided to City 10,030 Fixed Phase Phase 2 deliverables provided to City 2 (except focusgroup) 13,090 Fixed Phase 2 Focus group deliverable completed 12,500 Fixed Phase 3 Phase 3 deliverables provided to City 10,030 Fixed Phase 4 Phase 4 deliverables provided to City 8,075 Fixed Phase 4 1 Focus group deliverable completed 12,500 Fixed Phase Business planning templates and workshop 5 completed 8,075 Fixed Phase 5 Business plan consultation completed 1,870 Fixed Phase 6 Strategic Business Plan presented 4,250 Fixed Phase 7 Budget linkage designed 4,250 1 Fixed Phase 8 Phase 8 deliverables provided to City 3,060 Fixed Travel Travel Estimate 15,000 Not -to -Exceed TOTAL 102,730 GFOA's standard rates range from $250/hour for Senior Staff to $175 for Consultant Analysts. 32400 PASEO ADEI—ANTO SAN JUAN CAPISTRANO, CA 92675 (949) 4931171 (949) 49310531" www. sanjuancaptstrano. org TRANSMITTAL TO: Anne Spray Kinney Government Finance Officers Association 203 N. LaSalle, Suite 2700 Chicago, Illinois 60601 MEMBERS OF THE CITY COUNCIL SAM ALLEVATO THOMAS W. HRIBAR MARK NIELSEN JOE SOTO DR. LONDRES USO DATE: July 2, 2008 FROM: Maria Morris, Deputy City Clerk (949) 443-6309 RE: Personal Services Agreement — Long -Term Vision and Strategic Business Planning Thank you for providing documentation confirming compliance with the terms of the agreement related to insurance. Please keep in mind this documentation must remain current with our office during the term of this agreement. If you have questions related to insurance requirements, please contact me at (949) 443-6309. If you have questions concerning the agreement, please contact Cindy L. Russell, Assistant City Manager at (949) 443-6301. An original agreement is enclosed for your records. Cc: Cindy L. Russell, Assistant City Manager San Juan Capistrano: Preserving the Past to Enhance the Future 0 Printed on 100% recyGetl paper 6/17/2008 AGENDA REPORT D14 TO: Dave Adams, City Manager FROM: Cindy Russell, Assistant City Manager SUBJECT: Consideration of Agreement for Long -Term Vision/Strategic Business Planning Services (GFOA) (City Council Priority No. 21B) RECOMMENDATION: By motion, approve the agreement with the Government Finance Officers Association (GFOA) to provide services relating to the development of the City's Long -Term Vision and Strategic Business Plan in the amount of $102,300. SITUATION: Summary and Recommendation: The City Council has identified and prioritized the need to develop a long-term vision and strategic business plan for the City. The City is beginning to transition from a growing city to a more mature, "built -out" community and will soon not be able to count on new revenue from growth to the extent it did in the past. The purpose of this plan is to align the community's values and decisions about "who we are" and what our community represents with the desire to continue our strong level of service to the community, maintain our infrastructure, and maintain a solid financial position for the future, Therefore, the City Council has identified the need to develop a long-term vision and strategic plan that is supported by a solid long-term financial analysis, detailed implementation strategies, and performance measures. The plan would identify: • Strategies - Broad goals and values the City sees for the future and desires to accomplish and maintain. • Tactics - The City's projects, methods, and movements toward the successful outcome of the City's strategies. For example, if the strategy is to "Support Economic Development", a tactic could be developing a competitive hotel market or encourage business ventures that will help to diversify our sales tax base. Agenda Report Page 2 June 17, 2008 • Goals - The measuring tool for each tactic. For example, if the tactic is developing a competitive hotel market, the measurable goal would be to have an increase of XX% in hotel revenues each year or to increase sales tax from a certain business type. The long-term vision would be consensus based and involve the efforts of the community, City Council, and City staff. The strategic business plan would be the framework around which all the City's programs, projects, activities, and financial resources would be structured and allocated. In an effort to provide professional and technical expertise in this area and facilitate this process, the City has identified the need to retain a consulting firm with experience in this area. Staff recommends the City Council approve the agreement with the Government Finance Officers Association (GFOA) to provide services relating to the development of the City's Long -Term Vision and Strategic Business Plan in the amount of $102,300. Background: City staff prepared a Request for Qualifications (RFQ) and submitted this to approximately a dozen firms. The City received two proposals with costs as follows: GFOA $77,300 PFM Group (Long-term financial plan only) $75,000 The City has formed a project committee which includes City staff and two City Council members appointed by the Mayor. The Mayor has appointed Mayor -Pro Tem Mark Nielsen and Council member Sam Allevato to serve on this committee. The initial project committee reviewed both proposals and interviewed both firms. Based on the results of this process, the project committee's recommendation is to retain GFOA to provide services in support of the development of the City's long-term vision and strategic business plan. GFOA is a non-profit association of US and Canadian governments with more than 17,000 members and 100 years of experience in the area of governmental finance. The purpose of GFOA is to enhance and promote the professional management of governments for the public benefit by identifying and developing financial policies and practices and promoting them through education, training, and leadership. GFOA provides for government consulting only with a strong background in strategic planning and long-term financial planning. The GFOA project team includes government management and finance professionals with more than 20 years of experience each. Some of their California clients include the cities of San Clemente, Montclair, and Stockton. GFOA will also be developing and implementing with the City staff the MuniCast product, an excel -based revenue, expenditure trend, and sensitivity analysis model. Agenda Report Page 3 June 17, 2008 The main objectives of the process as proposed by GFOA and outlined in the attached agreement are as follows: Objective 1: The City has articulated a clear and concise mission and vision for the community that is consensus -based. (A mission and vision statement will be developed early in the project so that it can be used as a yardstick and reference point for the remainder of the project.) Objective 2: The City has created a written Strategic Business Plan that articulates critical strategic and fiscal issues, includes objectives and strategies for addressing these issues, and links these to programs, services, and activities related to daily operations and consequently to the budget process via performance measures that will be used to gauge progress. (The plan will be based on a comprehensive environmental analysis that includes a thorough financial situational analysis.) Objective 3: The City's Strategic Business Plan contains a long-term financial perspective (5, 10 and 20 -year forecasts) and provides strategies for maintaining fiscal stability. (The plan includes an assessment of the city's financial structure, projects revenues and expenditures over the long term, identifies potential structural and cyclical imbalances, and proposes courses of action for addressing them.) Objective 4: The City has the appropriate knowledge base, tools, and processes for regularly reviewing its financial situation, including a financial trend monitoring system and a computerized financial modeling and forecasting system. (GFOA's approach provides templates and tools that can be adopted by the City and focuses on working with City staff throughout the project to provide staff with hands-on experience.) Objective 5: The City has a performance measurement and management system that supports the implementation of the strategic, operational, and financial goals and that provides key indicators of progress so that elected officials, the public, and city managers will be able to track progress and know how the City is performing. Objective 6: The project is conducted using an approach that • Is inclusive and is perceived as such so that the resulting plan has broad community support. • Involves city staff as partners with consultants so that the planning cycle and system can be sustained independent of external advisory or consulting support in the future. Lastly, in an effort to assure as much community involvement as possible, the project committee requested expanded work in the area of community involvement and focus groups. GFOA provided and expanded scope of work increasing the number of focus groups from four to twelve and providing increased community involvement at a cost of $25,000. This would bring the total cost to $102,300. Agenda Report Page 4 June 17, 2008 COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: N/A FINANCIAL CONSIDERATIONS: The FY 2007/08 budget includes funding for this City Council priority and these funds will be carried forward to FY 2008/09 to implement this process. NOTIFICATION: Shayne Kavanaugh, GFOA* * Agenda Report included RECOMMENDATION: By motion, approve the agreement with the Government Finance Officers Association (GFOA) to provide services relating to the development of the City's Long -Term Vision and Strategic Business Plan in the amount of $102,300. Respectfully submitted, CRell Assistant City Manager Attachment: 1. GFOA Agreement GFOA AGREEMENT BEING FINALIZED AND WILL BE SUBMITTED UNDER A SUPPLEMENTAL AGENDA ITEM PRIOR TO THE CITY COUNCIL MEETING ATTACHMENT 32400 PASEO ADEL.ANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493.1053 FAX www.sanjuancapistrano.org MEMBERS OF THE CITY COUNCIL NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL SAM ALLEVATO THOMAS W. HRIBAR MARK NIELSEN JOE SOTO DR. LONDRES USO The City Council of San Juan Capistrano will meet at 6:30 p.m. on Tuesday, June 17, 2008 in the City Council Chamber in City Hall, to consider: "Consideration of Agreement for Long -Term Vision/Strategic Business Planning Services (GFOA) (City Council Priority No. 21B)" — Item No. D14. If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 5:00 p.m. on Monday, June 16, 2008 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Cindy Russell, Assistant City Manager. You may contact that staff member at (949) 443-6302 with any questions. The agenda, including agenda reports, is available to you on our web site: www.san*uancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: cityclerk(a)sanivancapistrano.org. Meg Monahan, MMC City Clerk cc: Shayne Kavanaugh, GFOA*; Cindy Russell, Assistant City Manager " Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future 40 Printed on 100% recycled paper 6/17/2008 SUPPLEMENTARY AGENDA REPORT D14 TO: Dave Adams, City Manager V r FROM: Cindy Russell, Assistant City Manager SUBJECT: Consideration of Agreement for Long -Term Vision/Strategic Business Planning Services (GFOA) (City Council Priority No. 21B) RECOMMENDATION By motion, approve the agreement with the Government Finance Officers Association (GFOA) to provide services relating to the development of the City's Long -Term Vision and Strategic Business Plan in the amount of $102,730, and authorize the City Manager to execute the agreement. SITUATION: Staff has been working the City's project committee and GFOA to refine and finalize the workplan component of the proposed agreement. The attached proposed agreement with GFOA for long-term vision/strategic business planning services has been completed and being presented for City Council consideration. NOTIFICATION: Shayne Kavanaugh, GFOA* RECOMMENDATION: By motion, approve the agreement with the Government Finance Officers Association (GFOA) to provide services relating to the development of the City's Long -Term Vision and Strategic Business Plan in the amount of $102,730 and authorize the City Manager to execute the agreement. nRespecttullymitteW 11 Cindy Russell Assistant City Manager Attachment: 1. GFOA Agreement PERSONAL SERVICES AGREEMENT THIS AGREEMENT is made, entered into, and shall become effective this 11th day of June, 2008, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and Government Finance Officers Association (hereinafter referred to as the "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant regarding the City's proposal for Long -Term Vision and Strategic Business Planning and WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1. Scope of Work. The scope of work to be performed by the City shall consist of those tasks as set forth in Exhibit "A - Statement of Work - Long -Term Vision and Strategic Business Planning City of San Juan Capistrano," and Exhibit "B - GFOA Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano", attached and incorporated herein by reference; the provisions in Exhibit "A" shall control any conflicts between provisions in Exhibit "A" and Exhibit "B." To the extent that there are any conflicts between the provisions described in Exhibit "A" and those provisions contained within this Agreement, the provisions in this Agreement shall control. Section 2. Term. This Agreement shall commence on the effective date and shall terminate when all services required hereunder shall be completed, no later than May 2009. Section 3. Compensation. 3.1 Amount Total compensation for the services hereunder shall not exceed $102,730 as set forth in Exhibit "C" attached and incorporated herein by reference. 3.2 Method of Payment. Subject to Section 3.1, Consultant shall submit invoices based upon each phase of work that has been satisfactorily completed. The amount of each phase invoice shall be as outlined in Exhibit "C". Invoices shall be paid within 30 days of the ATTACHMENT GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano City's approval of the deliverables for the related phase of work. A deliverable will be deemed "satisfactorily completed," and GFOA will invoice the City 1) upon notification of satisfaction by the City's designed representative; or 2) 30 -days subsequent to the date GFOA provided the City with the deliverable, whichever comes first. The City may request one set of revisions to a deliverable within 30 days from the date GFOA sends the first version of the deliverable. If revisions are requested, the date the .phase has been satisfactorily completed will occur 30days following the date GFOA sends the revised deliverable to the City. 3.3 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to City. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of City, and shall obtain no rights to any benefits which accrue to City's employees. Section 5. Limitations Upon Subcontractina and Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. Section 6. Chances to Scope of Work. For extra work not part of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 7. Familiarity with Work and/or Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed; (2) if applicable, it has investigated the work site(s), and is aware of all conditions there; and (3) it understands the facilities, difficulties and restrictions of the work to be performed under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, it shall immediately inform the City of this and shall not proceed with further work under this Agreement until written instructions are received from the City. Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Work Product. At the completion of the work, Consultant shall have delivered to City at least one (1) copy of any final reports and/or notes or drawings containing Consultant's findings, conclusions, and recommendations with any supporting documentation. All reports submitted to the City shall be in reproducible format, or in the format otherwise approved by the City in writing. Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services. In the course of performance hereunder, Consultant may use (and may authorize the City's personnel to use) certain Consultant Intellectual Property to assist in engagement completion. The City shall not have or obtain any right or title to or interest in such Consultant Intellectual Property (or in any modifications or enhancements thereto). Consultant makes no express or implied warranties of any kind regarding the Consultant Intellectual Property. Section 13. Indemni . To the fullest extent permitted by law, Consultant agrees to protect, defend, and hold harmless the City and its elective and appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of Consultant, Consultant's agents, officers, employees, subcontractors, or independent contractors hired by Consultant in the performance of the Agreement. The only exception to Consultant's responsibility to protect, defend, and hold harmless the City, is due to the negligence, recklessness and/or wrongful conduct of the City, or any of its elective or appointive boards, officers, agents, or employees. Consultant's liability for any matter arising under this Agreement or from any transaction contemplated herein, including without limitation the provision of the Services, shall not exceed the actual amount paid by an insurer as a result of any claim made with respect to such matter under Consultant's insurance policies (the "Liability Cap"). The City acknowledges that the Liability Cap is a material term upon which Consultant has relied in entering into this Agreement and that Consultant would not have entered into this Agreement in the absence of such provision. Section 14. Acceptance and Release The City shall be deemed to have accepted all Services in a given Phase and the work product resulting therefrom upon the City's payment of the invoice received from Consultant in respect of the Services. Upon such acceptance, the Government shall be deemed to have released the Consultant from any additional work undersuch Phase of the Services. Proprietary and Confidential to GFOA 3 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 15. Insurance. On or before beginning any of the services or work called for by any term of this Agreement, Consultant, at its own cost and expense, shall carry, maintain for the duration of the agreement, and provide proof thereof that is acceptable to the City, the insurance specified below with insurers and under forms of insurance satisfactory in all respects to the City. Consultant shall not allow any subcontractor to commence work on any subcontract until all insurance required of the Consultant has also been obtained for the subcontractor. Insurance required herein shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A- Class VII or better. 15.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive General Liability coverage in an amount not less than one million dollars per occurrence ($1,000,000.00), combined single limit coverage for risks associated with the work contemplated by this agreement. If a Commercial General Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this agreement or the general aggregate limit shall be at least twice the required occurrence limit. 15.2 Comprehensive Automobile Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non -owned vehicles in an amount not less than one million dollars per occurrence ($1,000,000.00). 15.3 Worker's Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Worker's Compensation Employer's Liability Insurance in the statutory amount as required by state law. 15.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self -retention amount, and an additional insured endorsement naming City, its officers, employees, agents, and volunteers as additional insureds as respects each of the following: Liability arising out of activities performed by or on behalf of Consultant, including the insured's general supervision of Consultant; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or automobiles owned, leased, hired, or Proprietary and Confidential to GFOA 4 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded City, its officers, employees, agents, or volunteers. 15.5 Errors and Omissions Coverage Throughout the term of this Agreement, Consultant shall maintain Errors and Omissions Coverage (professional liability coverage) in an amount of not less than One Million Dollars ($1,000,000). Prior to beginning any work under this Agreement, Consultant shall submit an insurance certificate to the City's General Counsel for certification that the insurance requirements of this Agreement have been satisfied. 15.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverages reduced, until after thirty (30) days' written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 15.7 Terms of Compensation. Consultant shall not receive any compensation until all insurance provisions have been satisfied. 15.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the City has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement. Section 16. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Consultant. In addition, this Agreement may be terminated by any party for cause by providing ten (10) days' notice to the other party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 17. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Cindy Russell To Consultant: Government Finance Officers Association 203 N LaSalle, Suite 2700 Chicago, Illinois 60601 Attn: Anne Spray Kinney Section 18. Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 19. Dispute Resolution. In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"). Section 20. Publications As an educational, nonprofit, professional membership association, Consultant reserves the right to publish non -confidential documents describing the results of, or created during, the Services performed under this Agreement. Consultant will not publish any item with the name of the City without obtaining the prior written consent of the City. Section 21. Entire Arareement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano IN WITNESS WHEREOF, the parties hereto have executed this Agreement. CITY OF SAN JUAN CAPISTRANO By: Dave Adams, City Manager GOVERNMENT FINANCE OFFICERS ASSOCIATION By: Jeffrey L. Esser, CEO and Executive Director ATTEST: City Clerk APPROVED AS TO FORM: City Attorney Proprietary and Confidential to GFOA 7 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano EXHIBIT "A" Statement of Work Long -Term Vision and Strategic Business Planning City of San Juan Capistrano Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano 1 Methodology, Staffing, and Workplan ..................................................................... 10 1.1 The Long Term Vision and Strategic Business Planning Team 10 1.2 The Work Plan 11 2 Project Assumptions................................................................................................. 22 Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano 1. Methodology, Staffing, and Workplan 1.1. The Long Term Vision and Strategic Business Planning Team I.I.I. Organizational Chart Strategic Plan Steering Committee City's Project Leader Anne Kinney Shayne Kavai Strategic & Business ----- Financial Plan GFOA Financial ' GFOA Strategic & Analysts I Business Plan Analysts ---------------------------- 1.1.2. Duties of Team Members City of San Juan Capistrano Team Members 1. Strategic Plan Steering Committee a. Review work product b. Sponsor project 2. Project Leader a. Provide resources as needed b. Enable staff to accomplish tasks c. Model behaviors needed for successful planning d. Encourage other team members 3. Project Coordinator a. Manage day-to-day scheduling and work requirements 4. Financial Staff a. Participate in financial analysis meetings b. Gather data c. Conduct forecasting d. Conduct analysis 5. Staff for Strategic & Business Plan a. Complete business plans Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano GFOA Team Members: 1. Anne Kinney, Project Manager and Strategic & Business Plan Manager a. Work with steering committee and project leader on overall project direction b. Facilitate meetings c. Interview stakeholders d.. Conduct analysis e. Coordinate tasks related to Strategic Business Plan and performance measurement £ Facilitate meetings g. Interview stakeholders h. Conduct analysis 3. Shayne Kavanagh, Financial Planning Manager a. Coordinate tasks related to financial planning b. Facilitate meetings c. Interview stakeholders d. Conduct analysis 4. David Buma, Facilitation Assistance a. Assist with focus group facilitation as required 7. Mike Mucha, Lead Strategic/Business Plan Analyst a. Assist Strategic & Business Plan manager as required 8. Brenda Boyle, Financial Plan Analyst a. Assist financial plan manager as required Third -party Team Members: 1. Chris Swanson, founder of Government Finance Research Group a. MuniCast configuration and data loading 1.2. The Work Tasks Task # Description Responsibilities Proprietary and Confidential to GFOA II Designate City Project Leader and A Manager; Define project success A.i Designate project leader Assist Lead A.ii Designate project manager Assist Lead Coordinate meeting to establish & clarify A.iii project expectations Assist Lead Conduct meeting to establish & clarify A.iv project expectations Lead Participate Develop project expectations agreement A.v document Lead Assist A.vi Develop project plan and timeline Lead Assist Informal project expectations agreement and formal project plan and timeline (in Deliverable 1A MS Excel or MS Project) Lead Assist Proprietary and Confidential to GFOA II GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Proprietary and Confidential to GFOA 12 Establish a Project Steering Team and Task B supporting teams B.i Designate project Steering Team Assist Lead Develop requirements for team B.ii membership Lead Assist B.iii Write team charter Lead Assist B.iv Identify supporting teams and structure Lead Assist B.v Identify supporting team members Assist Lead B.vii Coordinate meeting to accomplish tasks Assist Lead B.viii Conduct meeting to accomplish tasks Lead Participate Create Project Steering Team Charter Deliverable 1B and develop structure of supporting teams Lead Assist Task C Community involvement strategy CJ Identify primary stakeholders and groups Assist Lead Identify information desired from CA stakeholders Lead Assist Identify timing for when information is C.iii needed Lead Assist Identify best tools for engaging C.iv stakeholders Lead Assist C.v Implement tools (excepting focus groups) None Lead C.vi Coordinate meeting to accomplish tasks Assist Lead C.viii Conduct meeting to accomplish tasks Lead Participate Community involvement strategy Deliverable 1C document Lead Review Phase 2. Create Mission/Vision Task A Gather stakeholder input Interview key stakeholders inside City AJ government Lead Participate Establish an approach and schedule for A.ii conducting surveys and focus groups. Lead Assist Identify key survey objectives and A.iii questions Lead Assist Design detailed survey format and A.iv conduct survey None Lead A.v Develop summary of survey results None Lead Summary memo of stakeholder interviews Deliverable 2A and fesusgreups Lead Review Task B Develop preliminary mission/vision Develop "straw -man" mission/vision B.i based on stakeholder interviews Lead Assist Interview key stakeholders outside City B.ii government Lead Assist Refine "straw -man" missiontvision for best fit possible to City, before focus groups B.iii are conducted. Participate Lead Deliverable 26 Strawman mission/vision statement Lead Assist Proprietary and Confidential to GFOA 12 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Task C Focus Groups Review background materials related to previous City planning efforts and to better understand the San Juan Capistrano's unique public policy C.i environment and culture. Lead None Develop a format, agenda, questions and other materials to be used in the focus groups, with the City's input and CA feedback. Lead Participate Identify the types of participants to be C.iii included in the focus groups Lead Assist Recruit individuals for focus groups. GFOA can give feedback on ideas City C.iv has for recruits. Participate Lead Facilitate the focus group sessions and C.v record information gathered Lead None Synthesize information gathered into a format useful for strategic planning purposes and prepare a written summary C.vi of focus group results Lead None Present the results of focus groups held to the project steering team for feedback and C.vii validation Lead Participate Prepare a brief report of the focus group results for the focus group participants to C.viii keep them engaged Lead Participate Deliverable 2C Results of focus groups report Lead Participate Task D Mission and Vision Workshop Design workshop format, agenda, D.i structure Lead Assist Coordinate workshop scheduling, D.ii logistical support Assist Lead D.iii Conduct workshop Lead Participate Facilitate deliberation on mission/vision D.iv statement Lead Participate D.v Articulte mission/vision Participate Lead Record deliberation and mission/vision D.vi articulated by City Lead None D.vii Formally appprove mission/vision None Lead Deliverable 2D Summary memo of workshop results Lead Review PhaF,e 3. Analysis Task A Financial Analysis A.i Draft core values for financial sustainablity Lead Assist A.ii Review and approve core values None Lead Review existing policies, make suggestions for improvement and for new A.iii policies to support core values Lead Review Develop new policy statements, as A.iv needed Assist Lead A.v Approve new and improved policies None Lead AM Provide template for Municast data Lead None Proprietary and Confidential to GFOA 13 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano collection A.vii Collect and clean data for Municast None Lead A.viii Load data into Municast Lead None Conduct meeting to review major assumtions and qualitative factors A.ix influencing revenue'& expenditures Lead Participate Determine how assumptions will be A.x expressed in Municast Lead Assist Make forecast. The City will take a lead role with GFOA's assistance in Municast configuration and training, revenue & expenditure assumptions/analysis, and refining of the model. The City will A.xi ultimately make and own the forecast. Participate Lead Determine debt indicators to be used for A.xii analysis Lead Assist A.xiii Provide data on current debt levels None Lead Provide data on likely future capital A.xiv projects None Lead Conduct high-level assessment of debt A.xv position Lead Assist Identify major imbalances in financial A.xvi position Lead Assist Compare mission & vision with existing plans. Determine financial impact of other plans (land use, general plan). The City will take the lead role, especially in A.xvii assessing the impact of the land use plan Assist Lead Develop Financial Analysis Report. City will be actively involved in deciding what issues to focus on, gathering data, and A.xv contributing its own analysis of issues Lead Assist Deliverable 3A Financial Analysis Report Lead Review Task B Environmental Analysis Identify need for additional stakeholder B.i interviews Lead Assist Conduct up to four hours of additional B.ii interviews Lead Participate B.iii Conduct additional interviews None Lead Review other City plans and identify any divergence from these plans that may be anticipated as a result of this planning B.iv process Lead None B.v Provide "menu" of financial indicators Lead None B.vi Select indicators Assist Lead B.vii Identify up to 5 comparable jurisdictions Lead Assist B.viii Perform comparisons using CAFR data Lead None B.ix Gather historical data for indicators None Lead B.x Construct up to ten financial indicators Lead Assist B.xi Construct additional financial indicators None Lead Summary report of environmental analyses including recommendations for Deliverable 3B financial strategies Lead Assist Proprietary and Confidential to GFOA IG GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Proprietary and Confidential to GFOA 15 Schedule and coordinate workshop. Invite Phase 4. Issues & Strategies Validation A.iv Two day planning retreat/workshop with Task A City staff and City Council Am Get early feedback from Project Steering A.i Committee on plan elements to date Participate Lead A.ii Create workshop format & presentation Lead Review Lead Identify need for and develop other supporting documentation for workshop. The City may have a lead role in Deliverable 4A developing certain supporting documents, A.iii if GFOA and the City agree as such. Lead Assist Proprietary and Confidential to GFOA 15 Schedule and coordinate workshop. Invite A.iv participants and address other logistics Assist Lead Am Conduct workshop Lead Participate AM Write summary of workshop Lead None Summary memo recapping workshop Deliverable 4A issues and conclusions Lead Review Task B Focus Groups Develop a format, agenda, questions and other materials to be used in the focus B.ii groups Lead Participate Facilitate the focus group sessions and B.v record information gathered Lead None Synthesize information gathered into a format useful for strategic planning purposes and prepare a written summary B.vi of focus group results Lead None Present the results of focus groups held to the project steering team for feedback and B.vii validation Lead Participate Prepare a brief report of the focus group results for the focus group participants to B.viii keep them engaged Lead Participate Deliverable 4B Results of focus groups report Lead Participate Phase 5. Business Planning & Performance Measurement Business planning and performance Task A measurement template development Develop business planning and AJ performance measurement templates Lead Review Begin to develop information required by A.ii templates Review Lead Deliverable 5A Deliver templates Lead Review Busines planning & performance Task B measurement development Develop workshop/training format for city B.i staff Lead Assist B.ii Conduct workshop Lead Participate Coordinate workshop and provide B.iii logistical support Assist Lead Proprietary and Confidential to GFOA 15 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano B.iv City staff complete business plans Review Lead Deliverable 5B Workshop delivered Lead Participate Task C Business plan consultation Provide up to 15 consultant hours to C.i support business planning Lead None C.ii Decide how hours are to be used Assist Lead C.iii Authorize use of hours None Lead Up to 15 hours of consultant support Deliverable 5C provided Lead None Phase 6. Drafting the Plan Task A Committee validation Develop outline for Strategic Business AJ Plan Lead Assist Conduct meeting to review progress and validate direction and Strategic Business Plan outline and contents of staffs A.ii business plans Lead Participate A.iii Steering committee issues validation None Lead A.iv Coordinate meeting Assist Lead Deliverable 6A Outline for Strategic Business Plan Lead Review Task B Draft Plan Write and assemble full plan (compile business plans). The City will need to take a strong assist role and may lead the development of certain sections, where B.i deeper, hands-on experience is important. Lead Assist Make copies as may be required for B.ii distribution to stakeholders None Lead Deliverable 6B Draft Plan Lead Review Task C Forecast update and refinement Determine scenarios and issues arising through planning process to incorporate C.1 into forecast Assist Lead Update Municast to incorporate scenarios C.ii and issues Lead Assist C.iii Update and refine forecasts Participate Lead Deliverable 6C Municast model updated Lead Assist Task D Final Plan Submit plan for review and comment to D.i stakeholder groups Participate Lead DA Modify plan as required Participate Lead Design format for public meeting to review D.iii plan Assist Lead Conduct meeting. GFOA will actively assist in planning the presentation or can D.iv lead the presentation Assist Lead D.v Modify plan as required Participate Lead Proprietary and Confidential to GFOA IM GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Develop any special publishing format for business plan, including binding, graphics, D.vii etc. None Lead D.viii Print/Publish final business plan None Lead Deliverable 6D Public Meeting held Assist Lead Designing link between business plan and Task A budget GFOA will provide approximately 25 hours of assistance for this task. Possible detailed activities are are below. Responsiblities can vary based on City's direction for use of hours. Responsiblities and tasks can be finalized as the project AJ progresses. Assist Lead A.ii Review current budget process Assist Lead Design linkage between major forecast assumptions and budget development A.iii assumptions Assist Lead A.iv Design budget accountability mechanisms Assist Lead Am Design budget request process and forms Assist Lead A.vi Authorize use of hours None Lead A.vii Implementation of budget links None Lead Deliverable 7A 25 Hours of assistance provided Lead None Phase 8. D. Task A Project review Review project with Strategic Plan AJ Steering Committee Lead Assist Deliverable 8A Review conducted Lead Assist Develop on-going Strategic Business Plan Task B process Develop on-going Strategic Business Plan BJ process Lead Assist B.ii Depict process in flow -chart process map Lead None Deliverable 8B Flow -chart process map Lead Review Transition to the Steering Committee for Task C implementation Define committee's responsibility, accountability, authority, and resoruces C.i for implementing the plan Assist Lead Develop charter for Steering Committee's CA implementation work Lead Participate C.iii Execution of implementation strategies None Lead Deliverable 8C Charter for the Steering Committee Lead Review Note that GFOA provides electronic copies of deliverables and other work in Word, Excel, and/or PDF formats Proprietary and Confidential to GFOA 17 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano 1.2.1. Deliverable Expectations Phase 1— Project Start-up IA. Designate a project leader and project manager and define project success. GFOA will help develop a Project Expectations Agreement (informal) which will be approved by the Project Leader or other designated City staff. A formal project plan and timeline will also be finalized at this point. 1 B. Establish a Project Steering Team and supporting teams. GFOA will write a charter to clarify responsibility, accountability, authority, and resources of the Steering Team and supporting teams. I C. Community Involvement Strategy. GFOA will deliver a community involvement strategy document that includes a timetable, mechanisms for community involvement and communication, specific tools and techniques to involve the community, and a strategy to engage the local media. Phase 2 — Creating the Mission and Vision 2A. Summary of Stakeholder Input. GFOA will interview key stakeholders both inside and outside of city government and will produce a summary report of information obtained from interviews, focus groups, and other stakeholder input mechanisms the City chooses to use (e.g., telephone surveys). 2B. Straw man mission/vision. GFOA and the City will develop a "straw man" mission/vision that can be presented to participants in public engagement forums, particularly focus groups. The intent is to provide the participants with a starting point and something to react to. 2C. Results of focus groups report. This is a brief report to describe the results of the focus groups. The report will provide a more direct recounting of the focus groups' input as well as broader themes synthesized from GFOA's overview of all of the groups. 21). Mission and Vision Workshop Summary Memo. GFOA will facilitate a public workshop to present stakeholder input and develop a mission and vision statement. GFOA will provide a format, supporting tools, and a brief memo of results. The City has the lead role in developing a mission and vision with GFOA support throughout the process. Phase 3 - Analysis 3A. Financial Analysis Report. GFOA will conduct an analysis of the City's financial situation and provide the results in a Financial Analysis Report. At minimum, the analysis is to include the following activities: • Financial policy review Proprietary and Confidential to GFOA 18 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano ■ Preliminary revenue/expenditure forecasting (the City will begin to load data into the Municast model and begin developing forecasts as early in the project as possible) ■ Debt analysis ■ Imbalance analysis ■ Analysis of financial impact on and of existing plans 3B. Environmental Analysis Summary. GFOA will work with the City to conduct a comprehensive environmental analysis to identify the most important issues facing the City of San Juan Capistrano over a five-, 10-, and 20 -year period. In order to develop this list of issues, the environmental scan will identify 1) internal strengths and weaknesses, 2) external threats and opportunities, and 3) community resources the City might take advantage of GFOA will produce a brief summary of the environmental analysis that contains key service, financial, and other issues and the City's strengths, weaknesses, opportunities, and challenges. This summary will also document any divergences from existing plans, such as the general plan and the land use plan. Phase 4 — Issues and Strategies Validation 4A. Planning Retreat Summary Memo. GFOA will design and conduct a two-day workshop/retreat to present a draft set of issues as well as preliminary recommendations on strategies, overall objectives, and a first cut of an action plan. The workshop/retreat will involve City staff on the first day and City Council members and executives on the second day. GFOA will design and facilitate the workshops, provide documents, and produce a written summary of workshop output and outcomes. During the retreat, any divergence from existing plans will be addressed. 4B. Results of focus groups report. This is a brief report to describe the results of the second set of focus groups. The report will provide a more direct recounting of the focus groups' input as well as broader themes synthesized from GFOA's overview of all of the groups. Phase 5 — Business Planning and Performance Measurement 5A. Business Plan Templates. GFOA will develop and deliver a set of business planning and performance measurement templates to help City staff develop the information required for a business plan. The templates will be designed to produce an "issue driven" business plan, rather than one focused on departments or other functional divisions of the City. 513. Business Planning & Performance Measurement Development Workshop. GFOA will work with City staff to develop the business plan and performance measures. GFOA's and the City's objective will be to train staff to create business plans. GFOA will deliver a workshop or other mechanism for developing business pians, performance measures, and targets. The City has the lead role in business plan development with GFOA support throughout the process. 5C. Business Plan Consultation. GFOA can make itself available on a per -hour basis to provide consultation and staff augmentation to the City, as required to support the completion of the business plan. GFOA will work with the City to support the completion of the business plan for Proprietary and Confidential to GFOA GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano up to 15 consultant hours. Phase 6 — Drafting the Strategic Business Plan 6A. Outline for Strategic Business Plan. A meeting will be held with the Strategic Plan Steering Committee to review the materials and progress made to this point. The Committee's validation will allow the Strategic Business Plan to be drafted. GFOA will provide a proposed outline for the Strategic Business Plan and facilitate a meeting to validate direction and Strategic Business Plan contents. B. Draft Plan. GFOA and City staff will cooperate to finalize a draft of the Strategic Business Plan. The Strategic Business Plan will be based on the strategic, operational, and financial elements produced throughout the project. C. Municast Model Updated The information provided through the foregoing phase will enable the City and GFOA to refine the revenue and expenditure forecast. It is anticipated that the City will lead this forecast update, but GFOA will advise how to best incorporate new information into the Municast model. GFOA will update the Municast model to incorporate assumptions needed for the City to revise the forecast. D. Public Meeting to Present Plan. After the draft plan is delivered, there will be a review and comment period followed by a public meeting to present the plan. GFOA will help the City design the meeting and will participate in the meeting. Phase 7 — Linking to the Budget Process 7A, 25 hours of Consultation to Design Link between Business Plan and Budget. GFOA will work with City staff on a process for assuring that the plan becomes the basis for the budget — or, at minimum, is a critical input to the budgeting process. GFOA will work with City for up to 25 hours to advise on linkages, develop forms, etc. Phase 8 — Documentation and Wrap -Up 8A. Project Review Conducted GFOA will review the project with the Strategic Plan Steering Committee. Taking the time to reflect on the project and identify what aspects of the project the City wants to save, delete, and change going forward is the first step towards developing an on- going Strategic Business Planning cycle. 8B. On-going Strategic Business Plan Process Map. GFOA will propose a final on-going Strategic Business Planning model for the City that can be maintained independent of consultant support. GFOA will deliver a flow -chart process map to depict the final recommended process, including the links into the budget process. 8C. Charter for Strategic Plan Steering Committee's Implementation Role. GFOA will help the Committee transition to plan implementation. GFOA will help the City develop a charter to define the Committee's responsibility, accountability, authority, and resources for the Proprietary and Confidential to GFOA 20 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano implementation of the plan. 1.2.2. Timeline Jul AugSet Oct Nov Dec Jan Feb March Phase I -ProStart-U A. Designate Leader B. Establish Teams C. Involvement Strategy Focus Group Phase 2 - Create Mission/Vision A. Stakeholder Input B. Mission & Vision Workshop Phase 3 - Analysis A. Financial Analysis B. Environmental Analysis Phase 4 - Issues & Strategies Validation A. Planning Retreat Phase S - Business Planning & Performance Measurement A. Templates Developed B. Plan & Measures Developed C. Plan Consultation Phase 6 - Drafting the Plan A. Committee Validation B. Draft Plan C. Forecast Update D. Final Plan Phase 7 - Link to BudXd A. Designing Link Phase 8 - Documentation & Wrap U A. Project Review B. On -Going Planning Process C. Transition to Implementation Proprietary and Confidential to GFOA 21 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano 2. Project Assumptions 2.1. Listing of Project Assumptions • City staff provides data and participates in interview and other activities requested by GFOA. • A single point of contact from the City is identified; • GFOA undertakes no more than the indicated number of on-site trips within the price included in this proposal. o Trip #1 - Interview stakeholders on defining success and perception of environment, meet with Strategic Plan Steering Committee, conduct technical planning workshops (forecasting, environmental modeling, etc.). 3 days, 2 consultants o Trip #2 — Focus group facilitation #1 — 4 days, 2 consultants o Trip #3 — Conduct mission workshop, 1 day, 2 consultants o Trip #4 — Strategic issues retreat, 2 days, 2 consultants o Trip #5 — Business plan workshop, 2 days, 2 consultants o Trip #6 — Present draft plan to committee, 1 day, 2 consultants o Trip #7 — Present draft plan to public, 1 day, 2 consultants o Trip #9 — Focus group facilitation #2 — 4 days, 2 consultants • GFOA's role in the development of a plan is consultative and advisory in nature. The City will play an important role in data collection, will participate as partners in plan development, and will make any final decisions on strategy and direction. • The project scope is not expanded beyond the items listed in the proposal at the proposed (discounted) price, unless so negotiated with the GFOA. • As an educational, nonprofit, professional membership association, GFOA reserves the right to publish non -confidential documents describing the results of, or created during, the services described in this scope of work. GFOA will not publish any item with the name of the City of San Juan Capistrano without obtaining prior written consent of the government. • GFOA is partnering with the Government Finance Research Group to provide the MuniCast financial analysis and sensitivity analysis system. GFOA's role is not to provide forecasts of revenue and expenditures on which the City can rely. The City will have responsibility for collecting data to be included in MuniCast. Data elements include: o Historic annual revenues, expenditures, other sources and uses, beginning FY1999- 2000, for all City appropriated funds o Current year budgeted or estimated (if available) data o Historic budgeted/estimated fund balances o Debt service and other liabilities (e.g. retirement, healthcare, etc.) o Staff positions data for same time period o Baseline and alternative forecast scenarios, extending out to 2030 (or other fiscal period indicated by City), to be jointly developed by City and GFOA team • GFOA develops its reports to be clear and concise. We focus on brevity in order to make our reports accessible to the public and elected officials. • GFOA submits deliverables and other documents electronically in Microsoft Word, Excel, and or PDF formats. • GFOA is a non-profit membership association made up of members like the City of San Juan Capistrano, and therefore we have no owners' equity to fall back on. Therefore, GFOA's Proprietary and Confidential to GFOA 22 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano liability and indemnification under any agreement reached with the City must be limited to the extent of fees paid by GFOA's insurance coverage. (Please note that this limitation would require an amendment to the City's standard Personal Services Agreement.) • 12 focus groups would be facilitated by GFOA during initial issue identification. • The same 12 focus groups would be facilitated by GFOA during strategy development. • Each of the foregoing focus group meetings will take place within a 1 week period so that GFOA consultants can make one trip to conduct the focus groups. • The focus groups would last between 2.5 and 3 hours each. • The City will develop a report after the second set of focus groups to let the focus groups know how their input impacted the report and to engage them for plan execution. Proprietary and Confidential to GFOA 23 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano EXHIBIT "B" THE RESEARCH AND CONSULTING CENTER GOVERNMENT FINANCE OFFICERS ASSOCIATION January 30, 2008 Proprietary and Confidential to GFOA 24 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Table of Contents Section1 - Cover Letter.................................................................................................... 26 Section 2 - Background and Approach............................................................................. 28 A. GFOA's Understanding of the City's Project.......................................................... 28 13. Objectives to be Accomplished................................................................................ 28 C. The Work to be Done............................................................................................... 29 D. Out -of -Scope Activities........................................................................................... 35 Section 3 - Timetable/Schedule of Required Tasks.......................................................... 35 Section 4 - Identify the Team............................................................................................ 36 A. The Proposing Firm................................................................................................ 36 B. Contact Information................................................................................................. 37 C. Location of the Work............................................................................................... 37 D. Organization Chart ................................................................................................... 37 E. Proposed Team Members......................................................................................... 38 Section 5 - Qualifications and Related Experience........................................................... 38 A. GFOA's Strategic and Financial Planning Expertise ............................................... 38 B. Recent Directly Related Experience........................................................................ 39 C. Key Personnel.......................................................................................................... 40 D. Other Public Entities Served.................................................................................... 43 Section 6 - Other Information........................................................................................... 43 A. Optional Services..................................................................................................... 43 B. About Our Discount................................................................................................. 44 C. Key Assumptions..................................................................................................... 44 Proprietary and Confidential to GFOA 25 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 1 - Cover Letter January 30, 2008 Cindy Russell Assistant City Manager City of San Juan Capistrano City Manager's Office 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Ms. Russell: The Govemment Finance Officers Association (GFOA) is pleased to present a proposal to assist the City of San Juan Capistrano with the development of a long-term vision and strategic business plan. GFOA has significant experience providing these types of consulting services and we have completed extensive research on best practices in strategic planning, long-term financial planning, and performance measurement among our 17,500 members. We are excited about the chance to work with the City of San Juan Capistrano on this project. The key elements of our proposal include: • An Integrated Approach to Planning, Goal Setting, and Budgeting. GFOA's research on best practices is consistent with the City's desire to create a long-term strategic, financial and operational context for preparing annual budgets, and for using performance measurement to link the various components of such a system. Our goal for this project is to concurrently work to assure that individual tasks are completed on time and are of a high quality and also to assure that all the tasks and products, whether short - or long-term, are faithful to the overall direction that is set in the mission, vision, and long term strategies that are developed. Our focus throughout the project will be to work with the City to ask and answer the following questions: o Strategic: What are the most important "big picture" strategic issues and concems facing the City over the long-term? o Operational: What actions will the City take to address these issues? What is the schedule for these activities? Who is responsible? How will progress be measured and accountability maintained? o Financial: What are the long -run financial implications of the strategic issues and operational plans? How can the City maintain financial sustainability over the long-term? • An Approach that Assures that the Financial Situation is Systematically Addressed. Too often, organizations prepare strategic plans in virtual isolation from an understanding of the available financial resources. Elegant strategic plans, strategies, and service targets may be created, but after the planning process has ended, these organizations then struggle to fund goals that may already be publicly announced. Using expertise in long- term financial planning, and leveraging information from our membership base of 17,500 finance professionals, GFOA's approach provides early and equal attention to the financial situation in planning. GFOA is the leading authority on long-term financial Proprietary and Confidential to GFOA 26 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano planning for local government. GFOA published the popular book Financing the Future: Long -Term Financial Planning for Local Government enclosed with this proposal) and has provided advice to many of our member governments on this subject. Further, GFOA staff has authored articles in numerous journals, including Government Finance Review, Public Management, School Business Affairs, and School Planning and Management, and has spoken at conferences and training sessions nationwide. A Long -Term, Implementation -Ready Approach. Our proposal is designed so that strategies and operational plans are ready to go for the City's next budget while at the same time enabling the City to carry forward the Strategic Business Planning process independent of future consultant support. The best plan if not properly implemented is simply a costly theoretical exercise. Our approach provides for a transition to implementation, if possible before our engagement has ended, by working with City staff to design implementation plans and link these plans to the City's budget. An Inclusive and Consensus -Driven Approach. GFOA believes public participation in strategic planning is essential. Our approach will engage the community to be real contributors to the plan at multiple stages of the process. The most powerful means for implementing a plan is if the stakeholders of the plan strongly support it. A plan development approach that builds consensus among stakeholders will result in a plan that garners a wide base of support. Municast. GFOA will provide the City with the Municast computerized revenue and expenditure forecasting software system. Municast is a Microsoft Excel -based tool that is currently in use by over 20 California municipalities. Municast is powerful and easy to use. The City can learn more about Municast at www.municast.com. If you have any questions regarding this proposal, please contact either me using the contact information below, or Shayne Kavanagh, at 312-578-2276 or skavanagh@gfoa.org. Sincerely, Anne Spray Kinney Director, GFOA Research and Consulting Center 312-977-9700 akinneyAgfoa,org Proprietary and Confidential to GFOA 27 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Section 2 - Background and Approach This section includes: A) Our understanding of the City's project; B) The objectives to be accomplished; C) The work to be done; and D) Out -of -scope activities. A. GFOA's Understanding of the City's Project The City of San Juan Capistrano has begun to transition from a growing city to a more mature, "built -out" community. The vast majority of available land has been developed (approximately 90% in GFOA's understanding). This means that the City will not be able to count on new revenue from growth to the extent it did in the past. Also, a number of indicators point to the United States entering a period of recession or, if not officially a recession, then at minimum an economic downturn. The City wishes to take steps now to maintain its solid financial position through its transition to a fully developed community and through economic downturns. The City has developed a number of long-term plans, such as a redevelopment plans, water and sewer master plans, and an open space needs assessment. However, the City has identified the need for an overarching strategic vision and a long-term vision that is aligned with financial capacity. Therefore, the City has initiated this project to develop a strategic plan that is supported by a solid long-term financial analysis, detailed implementation strategies, and performance measures. GFOA terms this a "Strategic Business Plan." It is our understanding that the City would like the Strategic Business Plan to provide the context for its annual budget process. Currently, the City's budget process begins in December; however, the City anticipates that this schedule may change as a result of the work done on this project. B. Objectives to be Accomplished Objective 1: The City has articulated a clear and concise mission and vision for the community that is consensus -based. (A mission and vision statement will be developed early in the project so that it can be used as a yardstick and reference point for the remainder of the project.) Objective 2: The City has created a written Strategic Business Plan that articulates critical strategic and fiscal issues, includes objectives and strategies for addressing these issues, and links these to programs, services, and activities related to daily operations and consequently to the budget process via performance measures that will be used to gauge progress. (The plan will be based on a comprehensive environmental analysis that includes a thorough financial situational analysis.) Objective 3: The City's Strategic Business Plan contains a long-term financial perspective and provides strategies for maintaining fiscal stability. (The plan includes an assessment of the city's financial structure, projects revenues and expenditures over the long term, identifies potential structural and cyclical imbalances, and proposes courses of action for addressing them.) Objective 4: The City has the appropriate knowledge base, tools, and processes for regularly reviewing its financial situation, including a financial trend monitoring system and a computerized financial modeling and forecasting system. (GFOA's approach provides templates and tools that can be adopted by the City and focuses on working with City staff throughout the Proprietary and Confidential to GFOA 28 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano project to provide staff with hands-on experience.) Objective 5: The City has a performance measurement and management system that supports the implementation of the strategic, operational, and financial goals and that provides key indicators of progress so that elected officials, the public, and city managers will be able to track progress and know how the City is performing. Objective 6: The project is conducted using an approach that • Is inclusive and is perceived as such so that the resulting plan has broad community support. • Involves city staff as partners with consultants so that the planning cycle and system can be sustained independent of external advisory or consulting support in the future. C. The Work to be Done GFOA will work with the City to accomplish the above objectives in eight phases, as is described in greater detail later in this section. The key written deliverable of this project will be a "Strategic Business Plan." The Strategic Business Plan will contain the highest priority strategic issues facing the City, the strategies the City will pursue, and the actions it will take to address these issues and their financial implications. The process for providing this deliverable has three essential components: • Strategic: What are the most important "big picture" strategic issues and concerns facing the City over the long-term? • Operational: What actions will the City take to address these issues? What is the schedule for these activities? Who is responsible? How will progress be measured and accountability maintained? • Financial: What are the long -run financial implications of the strategic issues and operational plans? How can the City maintain financial sustainability over the long-term? Phase 1 — Project Start-up Task A. Designate a Project Leader and Project Manager, and Define Project Success. GFOA's experience is that this type of organization -wide project will require careful coordination, communication, and cooperation, both between GFOA's team and City staff, as well as among City agencies. Therefore, we strongly recommend that the City designate a Project Leader who is committed to a successful project outcome and to addressing the issues that prompted the City to initiate this project and who has the authority to make decisions regarding the process. In addition, we recommend that the City identify a Project Manger to coordinate the project on a day-to-day basis and serve as the City's liaison with the GFOA team. Finally as part of this first task, GFOA has found that even though the City would execute a formal contract with GFOA, it is extremely helpful to spend some time at the very beginning defining and clarifying expectations regarding how the project will be conducted and the results that the City hopes for and expects, and documenting these expectations so that they can be referred to, and revised, if necessary, during the course of the project. This will help us to meet your expectations. => Deliverable: A City -designated Project Leader and Project Manager, and a Project Expectations Agreement (informal), which would be developed by GFOA and approved by Proprietary and Confidential to GFOA 29 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano the Project Leader or other designated City staff. A formal project plan and timeline will also be finalized at this point. City Role: Coordinate meetings with GFOA, identify Project Leader and Manager, and identify and agree on expectations for project success. Task B. Establish a Project Steering Team and supporting teams. GFOA recommends that the City designate a Project Steering Team (which will also serve as the City's Strategic Planning Coordinating Team). The team will give feedback and guidance to GFOA and City staff and provide continuity to carry over into implementation of the Strategic Business Plan. GFOA will help the City develop requirements for team membership and write a charter to clarify the Committee's responsibility, accountability, authority, and resources. The Strategic Business Planning process is also likely to require supporting teams to work on various issues and tasks associated with constructing a plan. GFOA will work with the Project Leader and Project Manager to identify teams and advise on the knowledge, skills, and ability needed by members. => Deliverable: Creation of a Project Steering Team and charter, as well as a structure of supporting teams. City Role: Coordinate meetings, approve the charter, agree on teams and name team members. Task C. Community Involvement Strategy. GFOA and the City will collaborate to develop a community involvement strategy for the planning process. Community involvement is important to ensure that planners consider a comprehensive set of issues, not just those identified by "insiders" and to increase the likelihood of strong community support for the plan. The community involvement strategy should include a timetable, mechanisms for community involvement and communication, specific tools and techniques to involve the community, and a strategy to engage the local media. => Deliverable: Community involvement strategy document. => City Role: Provide knowledge on the approaches that work best for the San Juan Capistrano community and approve a process for going forward. Phase 2 — Creating the Mission and Vision Task A. Gather Stakeholder Input. GFOA will begin by interviewing key stakeholders, both inside and outside of city government. City staff may wish to work with GFOA's team on these interviews. GFOA will also work with the City to establish and approach and schedule for conducting focus groups and phone surveys of constituents. GFOA's proposal assumes that GFOA would help design the focus group approach and conduct a small number (no more than four) of focus groups in cooperation with City staff. GFOA will also work with City staff to design other stakeholder input opportunities, as identified in the community involvement strategy. Please note that because of the cost and intense resource requirement of conducting a phone survey, GFOA's proposal andprice do not include this activity. Because this is not a core capability of GFOA, we would have needed to include a sub -contractor to provide this service and also the costs of GFOA administration and supervision of the sub -contract. We believe that Proprietary and Confidential to GFOA 30 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano if the City decides a phone survey is essential to the process, having the City directly procure telephone survey services would provide equal benefit at lower cost. We therefore assume that, if the City and GFOA agree that phone surveys are needed, the City would contract separately for this service. => Deliverable: A summary of information obtained from interviews, focus groups and other stakeholder input mechanisms the City chooses to use (e.g., telephone surveys). =:> City Role: Work together with GFOA to: define interviewees, schedule interviews, conduct interviews (if desired by the City), and conduct focus groups. The City would also contract for a phone survey if it is decided that one is needed, and conduct other stakeholder input opportunities that may be identified in the public involvement strategy to be developed. Task B. Mission and Vision Workshop. The GFOA will facilitate a public workshop to present stakeholder input and develop a mission and vision statement. The mission and vision articulate where the City wants to go and what it wants to become over the next five, 10, and 20 years. The workshop will use consensus -driven techniques. Deliverable: Provide workshop agendalstructure, conduct workshop, provide brief memo of results. =* City Role: Provide logistical support and coordination, and participate in Phase 3 - Analysis Task A. Financial Analysis. GFOA will conduct an analysis of the City's financial situation, at minimum to include the following activities: • Financial policies. GFOA will identify, catalog, and review the city's financial policies with the assistance of City staff (particularly to identify existing policies). • Preliminary Revenue/Expenditure Forecasting. GFOA will work with the City to develop the "first cut" of a 20 -year forecast, based on status -quo assumptions. GFOA proposes to use the Municast forecasting system. • Debt Analysis. GFOA will conduct a high-level assessment of the City's current and likely future debt position based on the City's capital improvement plan and information included in the City's most recent comprehensive annual financial report. • Imbalance Analysis. GFOA and City staff will identify potential future imbalances in the City's financial and recommend strategies for overcoming these imbalances. => Deliverable: GFOA will lead the development of these analyses and will provide the results in a Financial Analysis Report. => City Role: Provide information to GFOA to conduct analysis. Work closely with GFOA to use the Municast system to make the forecast. Work with GFOA to identify imbalances and to create mitigating strategies. Task B. Environmental Analysis. GFOA will work with the City to conduct a comprehensive environmental analysis to identify the most important issues facing the City of San Juan Capistrano over a five-, 10-, and 20 -year period. In order to develop this list of issues, the environmental scan will identify internal strengths and weaknesses and external threats and opportunities, as well as community resources the City might take advantage of. The following Proprietary and Confidential to GFOA 31 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano techniques will be used: • GFOA will use information gleaned from stakeholder input activities described in Phase 2, Task A above, and also conduct additional interviews as needed in order to assure broad stakeholder input that includes, at minimum, the perspectives of City Council members, City staff, members of boards and commissions, as well as stakeholders outside City government, such as the business community, overlapping units of governments, citizen groups and individual citizens. • We will also review of other City plans such as land -use, redevelopment, and sewer -water master plans, etc. • We will conduct comparative analysis of financial condition indicators with other municipalities (up to five). The comparative analysis will rely on "industry standard" indicators of financial condition. • The City and GFOA will construct a "fmancial trend monitoring system" of indicators to reveal favorable and unfavorable trends in the financial environment. => Deliverable: An brief summary of the environmental analysis that contains key service, financial, and other issues and the City's strengths, weaknesses, opportunities, and challenges. This summary will also provide GFOA's recommendations on strategies the City might pursue and new master plans that need to be developed in response to an issue. City Role: Provide information to GFOA to conduct analysis, participate in various analytic activities, and review and provide feedback on the summary document. Phase 4 — Issues and Strategies Validation Task A. Planning Retreat: GFOA will design and conduct a two-day workshop/retreat to present a draft set of issues, as well as preliminary recommendations on strategies, overall objectives and a first cut of an action plan, involving City staff on the first day and City Council members and executives on the second day. On the first day, in the morning, we will review the Environmental Analysis Report, validate the report findings, and present preliminary issues, strategies, objectives and the outlines of an action plan. In the afternoon, City staff will work in groups to validate, revise, and supplement this information, as well as take the fust steps toward creating an action plan that will later be used as the framework for the operations section of the Strategic Business Plan. On the second day, GFOA will facilitate a workshop with the City Council and executive staff. In the morning, GFOA will present information similar to that presented to City staff, with the exception that this version will include staff input from the first day of the retreat. In the afternoon we will facilitate a discussion focused on validating, revising, and supplementing the key elements that will go into a written plan. => Deliverable: Documents, workshop facilitation, and presentations as well as retreat design and a written summary of workshop output and outcomes. => City Role: Scheduling, coordination, invitations, and other workshop logistics as well as participation. Work with GFOA to validate plan elements to date with Strategic Plan Steering Committee. Phase 5 — Business Planning and Performance Measurement Task A. Template Development. Business planning describes implementation plans and Proprietary and Confidential to GFOA 32 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano schedules, high-level financial impacts of strategic goals/action-plans, and performance measures and other mechanisms for monitoring progress on implementing the pian. Business planning also assesses risks inherent in the proposed course of action and identifies contingencies. GFOA will develop and deliver a set of business planning and performance measurement templates for City staff to help City staff develop the information required for a business plan. The templates will be designed to produce an "issue driven" business plan, rather than one focused on departments or other functional divisions of the City. => Deliverable: Business Plan templates delivered. => City Role: Review templates and begin to develop information required by templates in order to prepare for Task B. Task B. Business Planning & Performance Measurement Development. GFOA will work with City staff to develop the business plan and performance measures. GFOA's and the City's objective will be to train staff to create business plans. Another objective will be to develop a set of strategic measures that communicates progress on strategic issues to elected officials, staff, and the public. From these strategic measures, a larger set of operational measures will cascade down to departmental operations. These operational measures will help departments to relate their activities to the City's strategic goals and track their progress. City staff will also identify performance targets based on the measures to help the City gauge its progress towards goals. => Deliverable: A workshop or other mechanism for developing business plans, performance measures and targets. => City Role: Logistical support, participation in the process and completion of business plans. Task C. Business Plan Consultation. It is unlikely that the Business Plan will be totally complete at the end of the workshop or training sessions. City staff will have to refine and further develop the plan as a result of what is discussed at the workshop. GFOA can make itself available on a per -hour basis to provide consultation and staff augmentation to the City, as required to support the completion of the business plan. Deliverable: GFOA works with City to support the completion of the business plan for up to 15 consultant hours. City Role: Make final decision on how GFOA's hours are to be used. Complete business plans. Phase 6 — Drafting the Strategic Business Plan Task A. Committee Validation. A meeting will be held with the Strategic Plan Steering Committee to review the materials and progress made to this point. The Committee's validation will allow the Strategic Business Plan to be drafted. Deliverable: Proposed outline for Strategic Business Plan provided. Meeting held to validate direction and Strategic Business Plan contents. => City Role: Coordinate meeting, validate Plan contents. Task B. Draft Plan. GFOA and City staff will cooperate to finalize a draft of the Strategic Proprietary and Confidential to GFOA 33 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Business Plan. The Strategic Business Plan will be based on the strategic, operational, and fmancial elements produced throughout the project. =:> Deliverable: Strategic Business Plan draft created. => City Role: Participate in writing certain sections of the plan. There are some sections that may require deeper City input and where hands-on experience is important for building staff capacity to create new plans in the future. Task C. Forecast Update. The information provided through the foregoing phase will enable the City and GFOA to refine the forecast further. More in-depth information on the resource requirements needed to put the Strategic Business Plan into operation will enable the City to create more detailed spending scenarios. It is anticipated that the City will lead this forecast update, but GFOA will advise how to best incorporate these scenarios into the Municast model. => Deliverable: Advise City on how to incorporate new information into Municast. => City Role: Update Municast model and make forecast. Task D. Final Plan. After the draft plan is delivered, there will be a review and comment period after which will be a public meeting to present the plan. GFOA will help the City design the meeting and will participate in the meeting. Deliverable: Public meeting held to present plan after the plan has received thorough review and approval by appropriate City participants. => City Role: Coordinate meeting, help present plan. Phase 7 - Linking to the Budget Process Task A. Designing Link between Business Plan and Budget. The budget process is one of the most important methods for executing the Strategic Business Plan. GFOA will work with City staff on a process for assuring that the plan becomes the basis for the budget — or, at minimum, is a critical input to the budgeting process. => Deliverable: GFOA works with City on a per -hour basis to advise on linkages, develop forms, etc. => City Role: Respond to GFOA suggestions on how to use hours and otherwise approve how hours will be used. Phase 8 — Documentation and Wrap -Up Task A. Project Review. Taking the time to reflect on the project and identify what aspects of the project the City wants to save, delete, and change going forward is the first step towards developing an on-going Strategic Business Planning cycle. => Deliverable: Review project with Strategic Plan Steering Committee. =* City Role: Participate in meeting. Task B. Develop On-going Strategic Business Plan Process. GFOA will propose a final on - Proprietary and Confidential to GFOA 34 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The Citv of San Juan Capistrano going Strategic Business Planning model for the City that can be maintained independent of consultant support. The final recommended process will make use of the tools and techniques used during this project, as well as lessons for how these tools and techniques can be better adapted to the City's on-going use. => Deliverables: A process map to depict the final recommended process, including the links into the budget process. City Roles: Review and provide feedback on final process Task C. Transitioning the Strategic Plan Steering Committee to Implementation. GFOA will help the City transition the Committee's role to implementation. We will help the City define the Committee's responsibility, accountability, authority, and resources for the implementation of the plan. =, Deliverables: A charter for the Steering Committee's implementation role. => City Roles: Participate in meeting to develop charter. D. Out -of -Scope Activities We believe that our proposal provides a comprehensive response to the City's RFP, however, there are some activities that are not within the scope of proposal that the City should be aware of. • Community Surveys. GFOA does not conduct community surveys. GFOA recommends that the City contract with a specialized survey firm for that service. • Land -Use Planning. While GFOA understands that land -use planning is not in the scope of the RFP, we understand that land -use is an important consideration for San Juan Capistrano. GFOA is not a land -use planning firm. If expert input is needed on land -use GFOA recommends that the City contract separately with the firm that normally supports its land - use master planning or that internal land use planning staff provide expert knowledge. In our experience, internal staff can fill this role by being integrated into the strategic business planning team structure. Section 3 - Timetable/Schedule of Required Tasks Section 2 describes all key project tasks, deliverables for each phase, and the GFOA and City's roles in each. The Gantt chart below describes the timeline for this project. Completing the project in October of 2008 will allow the City to use the Strategic Business Plan as a lead-in to its budget process. This should provide plenty of lead time for any more extensive budget procedures that the City and GFOA deem necessary. March Aoril Mav June July Aus Sent Oct Phase 1. Proied Start -U A. Designate Leader B. Establish Teams C. Involvement Strategy Proprietary and Confidential to GFOA 35 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Phase 2. Create Mission/Vision A. Stakeholder Input B. Mission & Vision Workshop Phase 3. Analysis A. Financial Analysis B. Environmental Analysis Phase 4. Issues & Strategies Validation A. Planning Retreat Phase 5. Business Planning & Performance Measurement A. Templates Developed B. Plan & Measures Developed C. Plan Consultation Phase 6. Drafting the Plan A. Committee Validation B. Draft Plan C. Forecast Update D. Final Plan Phase 7. Link to Budget A. Designing Link Phase 8. Documentation & Wrap U A. Project Review B. On -Going Planning Process C. Transition to Implementation Section 4 - Identify the Team This section includes: A) The proposing firms; B) Contact information; C) Location of the work; D) Organization chart; and E)Proposed team members. A. The Proposing Firm The GFOA is the primary proposing firm. The GFOA was established in 1906. It is the premier professional association for government finance professionals in the United States and Canada and has more than 17,500 members. As a non-profit educational organization, GFOA's mission is to enhance and promote the professional management of governments for the public's benefit. GFOA identifies and develops best practices in the area of long-range and strategic planning and budgeting and promotes them through a national training program, books and other publications, and an annual conference. The Research and Consulting Center is GFOA's research and analysis and management consulting division. The GFOA is nationally recognized for its comprehensive analytical and advisory services, as well as for its practitioner -oriented research on issues related to stats and local government finance. GFOA staff work closely with practitioners to develop and disseminate recommended practices in all of the functional areas of public finance. In addition, the GFOA publishes books and periodicals, and coordinates GFOA's national training program and annual conference. Proprietary and Confidential to GFOA 36 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Since beginning operations in 1977, the Research and Consulting Center has undertaken hundreds of projects with state and local governments, federal agencies, and private sector clients. The GFOA provides financial and management consulting services in the areas of strategic planning, long-term financial planning, performance measurement, debt capacity analysis, multi-year budgeting, and operational reviews, among others. GFOA is partnering with the Government Finance Research Group to provide the Municast financial forecasting software model. The Municast solution is 1001/6 based on Microsoft Excel and will not require the City to purchase any new software from GFOA or the Government Finance Research Group. Municast is currently in use by over 20 California municipalities. B. Contact Information The primary contact for this proposal is Anne Spray Kinney, the Director of the GFOA Research and Consulting Center (RCC). Anne can be reached at 312-917-6102 or at akinneyAgfoa.org. The secondary contact for this project is Shayne Kavanagh, Senior Manager of Research for the GFOA RCC. He can be reached at 312-578-2276 or at skavanagh(ofog a.ora. C. Location of the Work GFOA proposes a combination of on -sits work at the City's premises and off-site work at GFOA and Municast offices. GFOA offices are located in Chicago. Government Finance Research Group offices are located in San Juan Capistrano. D. Organization Chart GFOA proposes that the City's Strategic Plan Steering Committee play an overall governance role, while the project leader acts as the official engagement manager. GFOA also proposes that the City set up a parallel team structure to GFOA's team, including a project coordinator who will handle many of the day -today activities of the project. The City's team would be supervised by the City's coordinator but both the coordinator and the City's teams would have a great deal of interaction with GFOA's team as they work together on the planning process. We believe this structure will provide valuable hands-on experience for the City. Please note that the final structure and names of the City's teams would be determined jointly with the City. Strategic Plan Steering Canrnittee City's Project Leader Strategic & GFOA Financial FOA Strategic Business Plan Proprietary and Confidential to GFOA 37 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano E. Proposed Team Members GFOA assigns a small group of highly qualified individuals to consulting projects it undertakes. Nearly all of GFOA's consultants have worked as managers in local government or hold advanced degrees in public policy or administration. All of our project managers have worked as government managers. GFOA's staff of professionals is directly involved in GFOA's continuing professional education programs (some as instructors), including national training seminars and the annual conference. Government finance is our business, and our consultants are eminently qualified to perform the type of work the City is requesting. Below are our proposed staff members. Complete bios for our team are available in "Section 5 - Qualifications and Related Experience." Project Role Team Member Name Project Manager Anne Spray Kinney Strategic & Business Plan Manager Steve Kreklow Financial Planning Manager Shayne Kavanagh Facilitation Assistance David Burna Lead Strategic/Business Plan Analyst John Ruggini Strategic/Business Plan Analyst Christine Lambino Strategic/Business Plan Analyst Mike Mucha Financial Plan Analyst Brenda Boyle Municast Configuration Chris Swanson Anne Kinney and Shayne Kavanagh are the team principles. Their contact information was provided earlier in this section. Section 5 - Qualifications and Related Experience This section includes: A) GFOA's strategic and financial planning expertise; B) Recent directly related experience; C) Key personnel who will be involved in the project; D) Other public entities to which we have provided services. A. GFOA's Strategic and Financial Planning Expertise GFOA's team for this project has long-term experience developing governmental strategic plans and financial plans. Anne Spray Kinney and Stephen Kreklow, senior team members on this project, have worked both as government practitioners and consultants with state, regional, and local governments to create integrated strategic planning -performance measurement -budgeting systems and also have developed strategic plans and implementation plans for sub -organizational systems, such as performance measurement and management systems and large organizational re -designs. GFOA's experience and resources in performance measurement and management are equally strong, based on the experience of team members, GFOA's research, and its ability to call on its membership base for examples of high quality processes and documents. GFOA's expertise in financial planning for local government is unsurpassed. We have been providing consulting on long-term financial planning since 2001 and we have published the leading book on the topic, Financing the Future: Long -Term Financial Planning for Local Proprietary and Confidential to GFOA 38 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano Government. Shayne Kavanagh, the author of this book, is a senior member of our proposed project team. We have been invited to speak on financial planning at the annual conferences for the International City/County Management Association, that National League of Cities, as well as a number of state -level organizations including the California Society of Municipal Finance Officers. We have also published articles on financial planning in leading journals such as Government Finance Review, Public Management, and School Business Affairs. GFOA is constantly honing our expertise on this topic as well. We maintain a Web site dedicated to financial planning at www.pfoa.org/ltfn, which is regularly updated with new resources. We are currently working with the National League of Cities to conduct research designed to deepen our understanding of how elected officials can participate in financial planning and plan to publish a new book on the subject in the early summer of 2008. B. Recent Directly Related Experience Below are our recent directly related experiences. Those experiences that we believe will be of most interest to the City are presented first. Milwaukee (Wisconsin) Public Schools • Description of Work: Performance Measurement and Budgeting, including identification of strategic objectives and long-range strategies (derived from previous MPS planning processes), performance measures, annual targets, and a performance-based budget within in a linked system. GFOA worked with the school district administration to identify district - wide long-term outcomes and strategies derived from previous planning efforts to guide development of performance measures and an annual performance budget, and then assisted the District to develop a performance-based budget. GFOA also provided training, meeting facilitation, and coaching to departmental managers, as well as a performance measurement and budgeting handbook. • Primary Client Contact: Michelle Nate, CFO, Milwaukee Public Schools, (414) 475- 8336, natemi mail.milwaukee.k]2.wi.us. • Dates for Project: October 2006 to present. • Project Manager: Stephen Kreklow • Members of Team on Project: Anne Kinney, Steve Kreklow, Mike Mucha, Christine Lambino • Project Costs: $150,280 City of Gresham, Oreton • Description of Work: Long-term financial planning advisory services, including a debt affordability analysis and peer group analysis. • Primary Client Contact: o Terry McCall, Finance and Management Services Director, (503) 618-2372, Terry. McCall ,ci.gresham.or.us, 1333 NW Eastman Pkwy, Gresham, OR 97030 o Deborah Bond, Acting Finance Director, (503) 618-2855, Deborah. Bondaa ci.gresham.or.us, 1333 NW Eastman Pkwy, Gresham, OR 97030 • Dates for Project: GFOA first worked with Gresham in 2001. In this project, GFOA took the lead role in developing the plan. Gresham in late 2006 sought to refresh the plan but this time GFOA took a more hands-off advisory role, while Gresham did most of the work. With GFOA's guidance they completed a new plan in 2007. Proprietary and Confidential to GFOA 39 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano • Name of Project Manager: Shayne Kavanagh (both in 2001 and 2007) • Members of Team on Project: Shayne Kavanagh, project manager, Steve Kreklow, Lead Analyst, Anne Kinney, Engagement Manager • Project Costs: 2001 - $47,500; 2006/07 - $25,000 City of Montclair, California • Description of Work: Long-term financial planning advisory services, including development of multi-year strategic business plan. • Primary Client Contact: Edward Starr, Director of Administrative Services, (909) 625- 9405, ecstarr@ci.montclair.ca.us, 5111 Benito Street, Montclair, CA 91763 • Dates for Project: GFOA fust worked with Montclair in 2001. The City was very pleased with strategic planning and has asked GFOA back every summer since, with our most recent engagement completing in 2007. • Name of Project Manager: Shayne Kavanagh (starting in 2001 and each year since) • Members of Team on Project: Shayne Kavanagh, Anne Kinney, Engagement Manager • Project Costs: 2001 - $35,000; average cost for annual engagements $10,000. City of San Clemente, California • Description of Work: Assist the City with refining its financial planning process to better engage elected officials in the process. • Primary Client Contact: Pall Gudgeirsson, Treasurer/Assistant City Manager, (949) 361- $341, GUdgeirssonPna,san-Clemente.org, 100 Avenida Presidio, San Clemente, CA 92672 • Dates for Project: GFOA commenced and completed this project in late 2007. • Name of Project Manager: Shayne Kavanagh • Members of Team on Project: Shayne Kavanagh, project manager, lead analyst • Project Costs: $2,000 C. Key Personnel Below are the key personnel on the GFOA team and their biographies. Anne Spray Kinney is Director of the Research and Consulting Center of the Government Finance Officers Association. Ms. Kinney has more than 20 years' experience in local government, much of it as a practitioner. Before becoming a consultant, Ms. Kinney served as budget director and subsequently administration director for the City of Milwaukee, Wisconsin, and was the executive director of Milwaukee's regional flood control -water reclamation authority in addition to other management positions in state and local government. Before coming to GFOA, Ms. Kinney was a Senior Partner at the Public Strategies Group. Ms. Kinney has managed a broad array of organizational improvement efforts, and has conducted numerous strategic planning -budgeting -performance measurement processes and organizational assessments at the city, county and state government level. Ms. Kinney has designed and implemented integrated planning -performance measurement budgeting systems, information technology strategy, customer service and compliance plans; procurement and contracting plans and systems, and government -wide managed competition programs. Ms. Kinney has also conducted projects focused on human resource services, revenue enhancement, business process improvement, and intergovernmental service sharing. In addition to consulting, Ms. Kinney is a Proprietary and Confidential to GFOA 40 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano frequent presenter on these topics to national audiences and has published articles on strategic planning, results budgeting, performance management, privatization and outsourcing, and leadership in the public sector and has taught government financial management at the graduate level. Ms. Kinney holds a BA from American University and an MPA from the University of Illinois -Chicago. Steven R Kreklow has more than 15 years experience as a manager in local government. Before joining GFOA he was the Budget Director and Human Resources Manager for Milwaukee Metropolitan Sewerage District and previously served as Finance & Planning Manager for the city of Milwaukee's Department of Public Works. In addition he has served as an operations manager for municipal services as diverse as parking and forestry. While at the Milwaukee Metropolitan Sewerage District, Steve was responsible for strategic and long-term financial planning and development of the operating budget and capital improvements program as well as directing internal analysis on the financing of the District's 2020 Facilities Improvement Plan. GFOA's Distinguished Budget Presentation Award Program recognized two of the budget documents prepared under Mr. Kreklow's direction for "Outstanding Use of Performance Measures." His clients include Genesee County, Michigan and the City of Milwaukee Department of Public Works where he was the project manager for a strategic planning process. He was also project manager for performance measurement system development projects at Sacramento County, California, and Milwaukee Public Schools and was a key project team member on long -tern financial planning projects in Gresham, Oregon, and Rialto, California. Mr. Kreklow consults, researches, and trains in the areas of strategic planning, budgeting, financial management, performance measurement, technology, and organizational development. He also regularly teaches government finance courses for universities and continuing education programs in the Milwaukee area. Mr. Kreklow holds a Master of Public Administration from the University of Wisconsin -Milwaukee. Shayne Kavanagh is the Senior Manager of Research for GFOA. Mr. Kavanagh has worked on a number of strategic planning and long-term planning projects. He served as the project manager for projects at the City of Montclair, California, the City of Gresham, Oregon, the City of Rialto, California, and the City of San Clemente, California Mr. Kavanagh has authored the GFOA publications Financing the Future: Long -Term Financial Planning for Local Government and Financial Policies: Design and Implementation. He has spoken on the topic of financial planning and policies at the California Society of Municipal Finance Officers, the New England States GFOA, the Michigan Government Finance Officers Association, the International City/County Management Association, National League of Cities, and GFOA annual conference. He has written articles on financial planning that have appeared in journals such as Government Finance Review, Public Management, and School Business Affairs. Prior to joining GFOA, Mr. Kavanagh was the Assistant Village Manager for the Village of Palos Park, Illinois. Mr. Kavanagh graduated from with his MPA degree from Northern Illinois University where he was the ASPA student of the year for his graduating class. David Burna is a Senior Manager in the GFOA Research and Consulting Center. Mr. Buma specializes in the development and implementation of strategic planning and change management projects. Mr. Bursa specializes in facilitation, business process re-engineering, and decision analysis for government. Mr. Buma has conducted business process mapping, Proprietary and Confidential to GFOA 41 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano evaluation, and re-engineering efforts for the numerous clients. Recent projects include: City of Overland Park (KS); City of Newport News (VA); City of Topeka (KS); City of Raleigh (NC); and County of Marin (CA). Mr. Buma has an MPP in Environmental Policy from Harvard University's John F. Kennedy School of Government. Mr. Buma has worked with both private firms and public agencies on a wide variety of strategic planning projects. He has helped clients to manage stakeholder involvement, public relations, investment strategies, and mergers & acquisitions. Mr. Buma has developed training courses for technical and public sector professionals looking to enhance both their facilitation and long-range planning skills. He has implemented long-range planning solutions for institutions as diverse as the South Florida Water Management District (SFWMD), Department of Energy (DoE), Chevron Pipeline, City of New York - Parks & Recreation Department, Los Angeles Department of Public Works - Bureau of Sanitation, and the New York City Department of Environmental Protection. John Ruggini is a Manager with the GFOA and works extensively in the area of performance measurement. He manages the research for the State and Local Government Performance Measurement Sourcebook (to be published in spring 2008). He has conducted research on budget and performance measurement systems for San Luis Obispo County and provided consulting assistance to the City and County of San Francisco for a budget and performance measurement system. Mr. Ruggini also led the development of GFOA's toolkit to help local governments understand and manage their `other post -employment benefit" (OPEB) liabilities. Before joining GFOA, he worked in the City Administrator's office at the City of St. Charles, Illinois where he served as the primary coordinator for the performance measurement program in conjunction with the International City/County Managers Association's (ICMA) Center for Performance Measurement. He also conducted annual assessments of financial trends, which included benchmarked ratio analysis of the City's financial condition and assisted with the development of departmental business plans. Mr. Ruggini received his MPA from Northern Illinois University. Mike Mucha is a Consultant/Analyst with the GFOA and focuses on management and technology research and consulting. He researches local governments' use of performance measures and coordinates all GFOA training sessions on performance measurement and budgeting. Mr. Mucha has worked with the Milwaukee Public School District to implement performance-based budgeting and was involved with creating a performance measurement guidebook for Sacramento County. Mr. Mucha co -edited GFOA's recent publication: Capital Project Planning and Evaluation. Prior to coming to GFOA, Mr. Mucha worked with the Sports & Exhibition Authority of Pittsburgh and Allegheny County. He received a Master of Science in Public Policy and Management from the Heinz School of Public Policy and Management at Carnegie Mellon University. Brenda Boyle is a Consultant/Policy Analyst in the GFOA. Ms. Boyle is heavily involved in GFOA's long-term financial planning program. She has developed GFOA's training course on financial planning, conducted case -study research, and provided consulting services. She has also conducted extensive research on use of performance measurement and strategic planning at the state level for GFOA's upcoming Performance Measurement Sourcebook publication. She has also participated in a performance-based budgeting consulting project for Genesee County, Michigan. Ms. Boyle received an MPA with concentration in Public Financial Administration Proprietary and Confidential to GFOA 42 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano from Indiana University's School of Public & Environmental Affairs. Christine Lambino is a Consultant/Analyst with the GFOA. Ms. Lambino has worked with Milwaukee Public School District and Genesee County, Michigan, to implement performance- based budgeting. Ms. Lambino also assists with research related to government use of performance measures and budgeting for outcomes. Prior to working at GFOA, Ms. Lambino held positions in local governments including King County, Washington, and the Village of Wilmette, Illinois. Ms. Lambino holds an MPA from Northwestern University. Christopher J. Swanson is the founder of Government Finance Research Group (GFRG), a financial management consulting firm specializing in financial planning, research, cost analysis, econometric modeling, benchmarking and optimization modeling for local governments throughout the U.S. Chris developed an innovative financial forecasting and analysis model called, MuniCast®. Municast is in use by over 20 cities across California. Chris' background includes 20 years of government and corporate financial management, including senior financial and strategic planning roles at the City of Los Angeles, United Healthcare Systems, HealthNet and The Walt Disney Company. Chris has developed complex economic and financial models, implemented performance measurement systems and led process improvement initiatives at public and private sector organizations. His academic credentials include an MBA from UCLA's Anderson Graduate School of Management and BA in Political Science from California State University, Northridge. GFRG is a sole proprietorship based in California. D. Other Public Entities Served GFOA has provided consulting services to over 100 public entities. Section 5-B describes those of greatest relevance to this project. Section 6 - Other Information A. Optional Services This section describes services that could enhance the City's planning process, but that GFOA does not believe are essential based on the City's RFP. Additional Focus Group/Interview Support. GFOA can conduct additional focus groups / interviews over what our proposal assumes. Additional Support in Other Areas. Our approach places progressively greater responsibility on the City staff for to improve the City's ability to plan after the GFOA's engagement is completed. GFOA is happy to provide deeper support and take a more hands-on role if the City prefers. Municast Customization. Additional features can be added to Municast on a per -hour consultative basis. The City will receive the new "all funds" version of Municast which includes a great number of new features. As such, it is unlikely that the City will need to perform additional customization. Proprietary and Confidential to GFOA 43 GFOA's Long -Term Vision and Strategic Business Plan Proposal for The City of San Juan Capistrano B. About Our Discount GFOA conducts consulting engagements as part of our mission of identifying, helping to develop, and broadly disseminating best practices in governmental management. Because of the comprehensive nature of this project we believe that the results are likely to contribute to "best practices" that can be shared with other governments. GFOA is therefore pleased to be able to provide a 15% discount on our fees. C. Key Assumptions • City staff provides data and participates in interview and other activities requested by GFOA. • A single point of contact from the City is identified; • GFOA undertakes no more than the indicated number of on-site trips within the price included in this proposal. o Trip #1 - Interview stakeholders on defining success and perception of environment, meeting with Strategic Plan Steering Committee, conduct technical planning workshops (forecasting, environmental modeling, etc.). 3 days, 2 people o Trip #2 — Conduct focus groups, 2 days, 2 people o Trip #3 — Conduct mission workshop, 1 day, 2 people o Trip #4 — Strategic issues retreat, 2 days, 2 people o Trip #5 — Business plan workshop 2 days, 2 people o Trip #6 — Present draft plan to committee 1 day, 2 people o Trip #7 — Present draft plan to public 1 day, 2 people • GFOA's role in the development of a plan is consultative and advisory in nature. The City will play an important role in data collection, participating as partners in plan development, and will make any final decisions on strategy and direction. • The project scope is not expanded beyond the items listed in the proposal at the proposed (discounted) price, unless so negotiated with the GFOA. • As an educational, nonprofit, professional membership association, GFOA reserves the right to publish non -confidential documents describing the results of, or created during, the services described in this scope of work. GFOA will not publish any item with the name of the City of San Juan Capistrano without obtaining prior written consent of the government. • GFOA develops its reports to be clear and concise. We focus on brevity in order to make our reports accessible to the public and elected officials. • GFOA is a non-profit membership association made up of members like the City of San Juan Capistrano and therefore we have no owners' equity to fall back on. Therefore, GFOA's liability and indemnification under any agreement reached with the City must be limited to the extent of fees paid by GFOA's insurance coverage. (Please note that this limitation would require an amendment to the City's standard Personal Services Agreement.) Proprietary and Confidential to GFOA 44 EXHIBIT "C" Revised Contract Fee The fee would be payable in stages as shown below. We estimate travel expenses based on 9 trips as shown in "Exhibit A - Statement of Work - Long -Term Vision and Strategic Business Planning City of San Juan Capistrano." Phase #R Project stane payn"M porneet Type Phase 1 Start-up activities and Phase 1 deliverables provided to City 10,030 Fixed Phase 2 Phase 2 deliverables provided to City (except focusgroup) 13,090 Fixed Phase 2 Focus group deliverable completed 12,500 Fixed Phase 3 Phase 3 deliverables provided to City 10,030 Fixed Phase 4 Phase 4 deliverables provided to City 8,075 Fixed Phase 4 Focus oroup deliverable completed 12,500 Fixed Phase 5 Business planning templates and workshop completed 8,075 Fixed Phase 5 Business plan consultation completed 1,870 Fixed Phase 6 Strategic Business Plan presented 4,250 Fixed Phase 7 Budget linkage designed 4,250 Fixed Phase 8 Phase 8 deliverables provided to City 3,060 Fixed Travel Travel Estimate 15,000 Not -to -Exceed TOTAL 102,730 GFOA's standard rates range from $250/hour for Senior Staff to $175 for Consultant Analysts.