AGENDA #16

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Appointment of Council Members to Evaluate Proposals and Recommend a Budget Consultant

DATE: December 6, 2004

We recommend that the Council appoint a Council Committee to evaluate budget consultant proposals and recommend a consultant for consideration by the Council.

BACKGROUND

On November 8, the Council adopted a resolution authorizing a request for proposals for a consultant to:

· evaluate Town services for opportunities to decrease costs and increase efficiency while maintaining effective services; and

· compare Town service levels and costs with those of other municipalities in the Triangle and similar communities elsewhere.

The management consultant would work with the Budget Review Advisory Committee composed of 5 to 7 citizens and all Council members.

The timeline established by the Council is shown below.

Date	Step to be Taken
November 9	Begin advertisement of the Request for Proposal to organizations and firms listed in Attachment 2.
November 9	Begin recruitment of applicants for appointment to the Committee
November 30	Deadline for submitting proposals.
December 6	Council nominates applicants for appointment to the Committee.
December 6	Council appoints a Council Committee to evaluate proposals and recommend a consultant.
January 10	The Council appoints members of the Budget Review Advisory Committee and appoints a convener.
January 10	Council authorizes contract with consultant.
January 11, 2005	The contract is executed and consultant begins work.

January 18	Initial meeting with the Budget Review Advisory Committee.
January 18 and continuing	The consultant meets with staff to obtain operational and budget information.
January 26	Budget Public Forum conducted by the Council as usual.
February and March	At least 3 additional meetings of the Budget Review Advisory Committee and the consultant are held.
March 15	Draft of consultant’s report is received by the Budget Review Advisory Committee.
April 6	Final report from the consultant and the Budget Review Advisory Committee are completed.
April 11	Presentations by the consultant and the Budget Review Advisory Committee are made to the Council.
May 9	Presentation of the Manager’s Recommended Budget.
May 18	Budget Public Hearing.
June 27	Consideration of budget adoption by the Council.

DISCUSSION

We have received proposals from Action Implementors, The Mercer Group and Maximus. In keeping with the proposed timetable, the Council would appoint Council members to evaluate proposals and recommend a budget consultant. The Council Committee would recommend a consultant to the Council on January 10, 2005. At that time, the Council could authorize a contract with a consultant.

RECOMMENDATION

That the Council appoint members to the Council Committee to evaluate proposals and recommend a budget consultant to the Council on January 10, 2005.

ATTACHMENTS

1. November 8, 2004 adopted resolution (2004-11-08/R-11) (p. 4).

A RESOLUTION APPOINTING COUNCIL MEMBERS TO A COUNCIL COMMITTEE TO RECOMMEND SELECTION OF A BUDGET CONSULTANT (2004-12-06/R-19)

WHEREAS, the Council desires to engage a management consultant to:

· evaluate Town services for opportunities to decrease costs and increase efficiency while maintaining effective services; and

· compare Town service levels and costs with those of other municipalities in the Triangle and similar communities elsewhere;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council designates Council Members ____________________ as appointees to the Committee to recommend a management consultant to review Town service levels, efficiency and costs, and appoints _____________ as the Committee Convener.

This the 6th day of December, 2004.

ATTACHMENT 1

A RESOLUTION AUTHORIZING THE MANAGER TO ADVERTISE A REQUEST FOR PROPOSAL FOR SERVICES TO EVALUATE THE TOWN’S BUDGET PROCESS, SERVICE LEVELS AND COSTS AND MAKE RECOMMENDATIONS FOR IMPROVEMENTS; TO ESTABLISH THE CHARGE FOR AND COMPOSITION OF A BUDGET ADVISORY COMMITTEE; AND TO REVISE THE BUDGET CALENDAR FOR 2005 (2004-11-08/R-11)

WHEREAS, the Council desires to engage a management consultant to review the budget process, service levels, efficiency, and costs in order to make recommendations for improvements; and

WHEREAS, the Council desires to form a Budget Advisory Committee to advise the management consultant and to make recommendations on the budget process, service levels, efficiency, and costs; and

WHEREAS, the current budget calendar would need to be changed to accommodate the plan to use a management consultant and Committee to evaluate the budget process, service levels, efficiency and costs;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Manager to advertise a request for proposal for consulting services. The services sought would include the following:

· Evaluate Town services for opportunities to decrease costs and increase efficiency while maintaining effective services; and

· Compare Town service levels and costs with those of other municipalities in the Triangle and similar communities elsewhere.

BE IT FURTHER RESOLVED that a Budget Review Advisory Committee be formed including 5 to 7 citizens and as many Council members as desired to:

· Represent and explain community values and standards to the consultant.

· Raise issues for consideration by the consultant.

· Provide feed-back to the consultant on proposals.

· Prepare a separate report providing feed-back to the Council on the consultant’s final report.

BE IT FURTHER RESOLVED that a schedule be established to adjust the current Council calendar to accommodate the use of a management consultant and the Budget Review Advisory Committee as follows:

Date	Step to be Taken
November 9	Begin advertisement of the Request for Proposal to organizations and firms listed in Attachment 2.
November 9	Begin recruitment of applicants for appointment to the Committee.
November 30	Deadline for submitting proposals.
December 6	Council nominates applicants for appointment to the Committee.
December 6	Council appoints a Council Committee to evaluate proposals and recommend a consultant.
January 10, 2005	The Council appoints members of the Budget Review Advisory Committee and appoints a convener.
January 10	Council authorizes contract with consultant.
January 11	The contract is executed and consultant begins work.
January 18	Initial meeting with the Budget Review Advisory Committee.
January 18 and continuing	The consultant meets with staff to obtain operational and budget information.
January 26	Budget Public Forum conducted by the Council as usual.
February and March	At least 3 additional meetings of the Budget Review Advisory Committee and the consultant are held.
March 15	Draft of consultant’s report is received by the Budget Review Advisory Committee.
April 6	Final report from the consultant and the Budget Review Advisory Committee are completed.
April 11	Presentations by the consultant and the Budget Review Advisory Committee are made to the Council.
May 9	Presentation of the Manager’s Recommended Budget.
May 18	Budget Public Hearing.
June 27	Consideration of budget is made for adoption by the Council.

This the 8^th day of November, 2004.