AGENDA TITLE:
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Adopt a Resolution consistent with Lodi Municipal Code 3.20.075 authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Baker Tilly Advisory Group, LP of Mountain View to add Long Range Financial Forecasting Services, and Determining it is in the City’s Best Interest to Dispense with Competitive Bidding Requirements. (Total Contract Not to Exceed $103,900) (CM)end
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MEETING DATE:
September 18, 2024
PREPARED BY:
Andrew C. Keys, Assistant City Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution consistent with Lodi Municipal Code 3.20.075 authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Baker Tilly Advisory Group, LP of Mountain View to add Long-Range Financial Forecasting Services, and determining it is in the City’s best interest to dispense with competitive bidding requirements. (Total Contract Not to Exceed $103,900) (CM)end
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BACKGROUND INFORMATION:
On August 28, 2024, the City Manager entered into a Professional Services Agreement with Baker Tilly Advisory Group, LP (Baker Tilly) to provide Library Assessment Services to analyze the best structure for the sustainability of programming and operations. The analysis will compare the benefits and challenges of the various library models allowed under state statute, and provide financial analysis and models of the alternatives. Pursuant to Lodi Municipal Code (LMC) Section 3.20.075, professional/technical services contracts, including accounting and financial services, are exempt from the City’s advertising and bidding requirements.
Baker Tilly provides a variety of services to 4,000 state and local governments throughout the United States and has been providing a broad range of consulting and financial services for over 90 years. Additionally, the Baker Tilly consultant group includes library professionals who are familiar with services in San Joaquin County. The contract also includes coaching services for the Interim Library Director and Library mid-management staff to provide the skills necessary to advance the goals of the library. The City’s Library Director resigned her position effective July 31, 2024, leaving a significant vacancy at the Library. To continue operations, an Interim Library Director was appointed and additional support redirected for support. The total value of the original contract was not to exceed $60,000.
Amendment No. 1 to the contract would add Long Range Financial Forecasting Services for the City’s General Fund. The Fiscal Year 2024-25 adopted General Fund budget is balanced, but the Long-Range Financial Forecast projects deficits beginning in Fiscal Year 2025-26 of over $1 million growing to over $1.5 million in Fiscal Year 2029-30. It is imperative for the City to develop fiscally sustainable operations that focus is kept on the impact of current decisions on long range capacity to provide services. Given the City’s current forecasted financial position, increasing pressure on financial resources and growing service demands, staff recommends adding additional and separate consulting services through Baker Tilly to provide a more robust Long-Range Financial Forecast. This forecast will provide staff with a dynamic tool that can be used to present both the City’s current forecast as well as model the long-term effect of potential service level or operational adjustments. Modeling the long-term effect of near-term decisions will increase public transparency and more informed decision making by City Council. Existing staff must remain focused on the day-to-day finance and budgeting operations, and do not have the capacity to build the dynamic financial model. The dynamic tool can then be used by staff to present regular updates and analysis as needed in the future. Consistent with LMC Section 3.20.075, the additional scope of service provided in Amendment No. 1 is also a financial service and is exempt from bidding requirements.
Given Baker Tilly’s significant expertise developing forecasts and providing financial analysis services to a variety of organizations and specific experience with both long-range forecasts and library services in San Joaquin County, the City Attorney further recommends that City Council determine it is in the best interest of the City to dispense with competitive bidding requirements for the original Professional Services Agreement and the proposed Amendment No. 1 with Baker Tilly to add Long-Range Financial Forecasting Services consistent with LMC 3.20.070.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT: There is no fiscal impact from this contract amendment. Library services are funded through salary savings due to the vacant director position. Long-Range Financial Forecasting Services added through this Amendment No. 1 will be funded using existing appropriations.
FUNDING AVAILABLE:
10010000-72450.
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Scott R. Carney
City Manager