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HomeMy WebLinkAboutNon Agenda ItemFrom:City of Palm Springs To:City Clerk Subject:*NEW SUBMISSION* Submit Public Comment to the City of Palm Springs Date:Thursday, February 29, 2024 6:15:53 PM NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. Submit Public Comment to the City of Palm Springs Submission #:3038538 IP Address:75.85.215.18 Submission Date:02/29/2024 6:15 Survey Time:2 minutes, 3 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Full Name/Nombre John Miraglia City of Residence/Ciudad de residencia Palm Springs, Phone (optional) /Teléfono (opcional) (786) 281-5757 Email (optional/opcional) jmiraglia@hotmail.com Your Comments/Sus comentarios Hi, I am the Chair of the Parks & Recreation Dept and I wanted to express my support of $50,000 FOR THE ARTSCAPE IN THE PARKS PROJECT AT VICTORIA PARK AND $50,000 FOR THE ARTSCAPE IN THE PARKS PROJECT AT JAMES O. JESSE PARK. Best, John Miraglia Thank you, City of Palm Springs This is an automated message generated by Granicus. Please do not reply directly to this email. 02/29/2024 Public Comment Item 1CC From:Kevin Spring To:City Clerk; Veronica Goedhart; Scott Stiles; Lisa Middleton; Grace Garner; Jeffrey Bernstein; Ron deHarte; Steven Wijatyk; citizenrick Subject:This morning I am cheerfully contacting each dispensary Date:Friday, March 1, 2024 11:59:05 AM NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. In celebration of the "Holiday Tax Season of NO CITY RETAIL TAX on Cannabis" I am calling each and every dispensary owner or manager to let them know that starting immediately, and for the next sixty days they should NOT be charging any city tax to customers. I am letting them know that after April, 2024 the tax will be at 5%. These owners are extremely thankful and I am encouraging them to run a public campaign to make the most of this "Holiday Break in Taxes". As a distributor, I have access to the full spectrum of the industry, and knowledge of how to present this to them, and marketing ideas of how they CAN use this time to their advantage. But regardless of who I am, they need this information reaffirmed in writing by city officials and or the compliance department. These owners and managers must immediately change their POS system and inform employees of this change. It is impairative that they do NOT charge one cent of city tax, and if they do, it does need to be turned in to the city. Again, they need your affirmation immediately. After contacting 15 dispensaries, I can confirm that NOT ONE seemed aware of this or had made the appropriate changes by NOON. I hope my calls work for many, but I wanted to make you aware of this important and time sensitive subject because it will likely be announced in media news this eve (and falsely collecting taxes may cause other hassles). If I can help in any way more than I have done today, feel free to reach out. Sincerely, Kevin Spring, CEO at SD Strains Inc. 760.212.8628 sdstrains.com 02/29/2024 Public Comment Item 3A From:City of Palm Springs To:City Clerk Subject:*NEW SUBMISSION* Submit Public Comment to the City of Palm Springs Date:Saturday, March 2, 2024 7:35:48 PM NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. Submit Public Comment to the City of Palm Springs Submission #:3042060 IP Address:76.32.14.34 Submission Date:03/02/2024 7:35 Survey Time:2 minutes, 43 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Full Name/Nombre Zekio Dawson City of Residence/Ciudad de residencia Palm Springs, Phone (optional) /Teléfono (opcional) Email (optional/opcional) zekiodawson@gmail.com Your Comments/Sus comentarios Where are the new apartments? What's with the new co-op/condo units being planned. Not everyone is a millionaire. Where is the housing for retired citizens? Kinda makes me feel out of place after moving from Manhattan last year. Thank you, City of Palm Springs This is an automated message generated by Granicus. Please do not reply directly to this email. 02/29/2024 Public Comment Non Agenda From:City of Palm Springs To:City Clerk Subject:*NEW SUBMISSION* Submit Public Comment to the City of Palm Springs Date:Monday, March 11, 2024 10:04:15 PM NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. Submit Public Comment to the City of Palm Springs Submission #:3060760 IP Address:72.132.18.25 Submission Date:03/11/2024 10:04 Survey Time:35 minutes, 27 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Full Name/Nombre Lev Chapelsky City of Residence/Ciudad de residencia Palm Springs, Phone (optional) /Teléfono (opcional) (323) 828-8189 Email (optional/opcional) chapelskylev@gmail.com Your Comments/Sus comentarios RE: Starbucks on N Palm Canyon and Racquet Club Rd. I am amongst the many homeowners near that corner that was thrilled to see the council push back on Starbuck's drive-thru-only proposal. It is imperative that we do not signal abandonment of such a major gateway to the city by developing it with fortress-like retail structures that deter community socialization and alienate visitors as well. This is an area on the verge of a comeback, and developers need to facilitate that instead of erecting barriers to its revival. So thank you! The residents of the neighborhood -- most of whom remain silent but have great interest in the outcome -- thank you as well. Please don't stop short of a full indoor shop & outdoor cafe. It's needed, and deserved. And Starbucks can do it -- it will serve them well in the long run. Feel free to let me know if there is anything I can do to help further in this matter. Thank you, City of Palm Springs This is an automated message generated by Granicus. Please do not reply directly to this email. 03/14/2024 Public Comment Non Agenda From:Brett Smith To:City Clerk; CityManager Subject:Golden Voice Take Over Date:Monday, March 11, 2024 3:12:21 PM NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. To Those Who Made the Decision: Once again, the city of Palm Springs has sold out another large venue to Golden Voice. We now have LOUD, overcrowded, weekend music/party scenes at The Saguaro (in the middle of a highly dense neighborhood of condos and homes), the two huge music festivals in Coachella, and now the latest event at The Surf Park, formerly Knott's Water Park (again, in a neighborhood setting of homes and condos.) Let's also add in the White Party's new location at The Sagauro. This means more crowds, less available parking for neighborhood families and guests, more obtrusive pounding of bass beats, more trash in our neighborhoods, more foot traffic, and more drunken individuals driving on our narrow city streets. It is so obvious that those in charge of this city ONLY see dollar signs. There is ZERO regard for those who call this city home. We have become a transient city, full of out of towners and drunken bachelorettes who could care less about our environment, properties, noise levels, congestion, water conservation, or lack of infrastructure. It's no wonder that residents are beginning to pack up and move. Maybe if our city council works hard enough, we can turn this entire city into short term rentals and streets full of noise, pollution, and congestion. Way to go. Brett Smith 21 year resident, Palm Springs 03/14/2024 Public Comment Non Agenda From:City of Palm Springs To:City Clerk Subject:*NEW SUBMISSION* Submit Public Comment to the City of Palm Springs Date:Wednesday, March 13, 2024 11:23:17 AM NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. Submit Public Comment to the City of Palm Springs Submission #:3064503 IP Address:149.97.237.20 Submission Date:03/13/2024 11:23 Survey Time:8 minutes, 14 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Full Name/Nombre Brian Headman City of Residence/Ciudad de residencia Palm Springs, Phone (optional) /Teléfono (opcional) Email (optional/opcional) headman.1@gmail.com Your Comments/Sus comentarios Re: Starbucks @ N. Palm Canyon and Racquet Club. I am writing to support the Council's decision to prioritize quality, inclusive, and welcoming development at the North End of Palm Springs. A drive-through/walk-up-window Starbucks is not the right development for this area. Higher quality development will spur future development of equal quality and character. Let's set the bar high, not low. This is the City's "first impression" for countless visitors. The area can and will be an excellent, social, inclusive hub for pedestrians and travelers alike. A Starbucks could be a great anchor development (as it is downtown), but it needs to be the right Starbucks. I support the Council's decision and thank you for your service. Thank you, City of Palm Springs This is an automated message generated by Granicus. Please do not reply directly to this email. 03/14/2024 Public Comment Non Agenda From:gobananasnet@gmail.com To:City Clerk; Bob - Robert Howard Heinbaugh Subject:Pi Day - Non agenda item Date:Thursday, March 14, 2024 11:45:59 AM NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. Dealer City Leadership, RE: Non-agenda item. Please bring/approve Waymo driverless taxis for Palm Springs, pretty please with a spinning sensor on top. :-) It would be excellent to have Waymo as an option in Palm Springs since Uber and Lyft are not reliable for early morning rides to the airport, etc., even when booked in advance. Uber and Lyft drivers often leave people waiting at the curb as no-shows causing some to miss their flight's check-in deadlines, etc. Waymo driverless Jaguars don't need to roll over (pun intended) and go back to sleep in the earlier morning hours. Thanks so much! Your friends and ardent supporters, Bob Heinbaugh & Paul Hinrichsen - Upper West Side NOrg - long-time leadership members. 03/14/2024 Public Comment Non Agenda City of Satz Jose, California COUNCIL POLICY TITLE COUNCIL RESOLUTION POLICY PAGE POLICY.NUMBER 1 of 2 0-11 EFFECTIVE DATE July 10, 1979 I REVISED DATE November 01, 2016 APPROVED BY COUNCIL ACTION July 10, 1979, Item 11d and November 01, 2016, Item 3.5 BACKGROUND The City Council is sometimes requested to take action on matters which lie outside the scope of its jurisdiction. There being better and more appropriate avenues of communication between citizens and other governmental entities, the City Council desires to restrict its own deliberations to problems which most immediately affect the government of the City of San Jose. PURPOSE To provide guidelines for the City Council's consideration of a request for action upon a matter over which the City lacks jurisdiction or substantial influence, and to preserve public time, resources, and deliberation for those matters upon which the City Council's decisions have direct and concrete consequence for the City. POLICY Resolutions of the City Council Fully realizing and supporting the fundamental right of every citizen of this city to make views and opinions known to all persons in any branch of the federal, state, county or city government, it is the policy of the Council of the City of San Jose that its actions be restricted to issues which most directly impact and affect the City of San Jose. The Council is compelled to adopt this policy for reasons of expediency, fiscal judiciousness, and to improve the efficacy of the decisions produced by the Council. By directing the Council's attention to the most locally germane issues, it is the Council's intention to improve its responsiveness to the citizenry of San Jose in terms of swiftness, accountability, sensitivity, and by having additional study time for local problems. The basic criteria for resolutions are: 1. The primary purpose of the resolution must be to give special recognition to local issues, actions, and/or programs of value to the citizens of San Jose. 2. The resolution must address an item which has either civic, cultural, social, economic, philosophical, philanthropic, or educational value. 3. The essence of the resolution must not have a philosophy that: a. Dehumanizes, degrades, or ridicules any segment of humanity. b. Advocates the violent overthrow of any of the levels of U.S. government. 4. The group or individual receiving the resolution must not have a philosophy that: a. Dehumanizes, degrades, or ridicules any segment of humanity. b. Advocates the violent overthrow of any of the levels of U.S. government. San TITLE COUNCIL RESOLUTION POLICY PAGE POLICY NUMBER 2 of 2 0-11 5. The resolution must be in keeping with the U.S. Constitution, the California State Constitution, the San Jose Municipal Code, and the various laws passed pursuant to those instruments. It is further the policy of the Council of the City of San Jose that it shall not act or take a position on: 1. Matters concerning the foreign policy of the United States of America nor its relationship to other countries of the world except at the expressed request of an elected official of the federal government or an authorized representative of a department or agency of the federal government, except those matters directly affecting the City and citizenry of San Jose. 2. Acts of the Legislative or Executive branches of the federal government or government of the State of California when such do not affect the existing or potential resources, material or human, of the City of San Jose which may be directly applied to the solution of municipal problems relating to the health, safety and welfare of the citizens of this city. 3. Actions or lack of action on the part of any State of the Union other than the State of California or of any political subdivision of such other State when no impact is felt upon the government of the City of San Jose. 4. Actions or lack of actions on the part of the Judicial Branch of any government or any of its members except through its attorney acting in accordance with appropriate procedures, except those matters directly affecting the City and citizenry of San Jose. This policy is not intended to limit the prerogative of members of the City Council to place before the City Council any question which they deem to be appropriate for consideration, nor is it intended to limit debate on issues which meet the above criteria. As a guiding principle, issues that meet the above criteria will be heard last during the afternoon or evening City Council session, if deemed appropriate by City staff and/or the Rules and Open Government Committee. Declaratory Letters Issued By Members of the City Council On matters that do not meet the criteria for the consideration by the Council of a resolution outlined above, members of the City Council, including the Mayor, may individually or collectively issue a declaratory letter representing their position on the matter. Only fewer than a majority of the entire membership of the Council may (1) discuss the issuance of a declaratory letter representing their position on the matter, either collectively or on a seriatim basis, or (2) issue a declaratory letter representing their position on the matter. The declaratory letter must include express language stating that the position contained in the letter does not represent an official position of the City of San Jose, and only represents the position of the undersigned. The declaratory letter may, but is not required to, further clarify that the City, as a matter of policy, does not take official positions on such matters. Declaratory letters signed by two (2) or more members of the City Council shall be placed on the Public Record of the Rules and Open Government Committee agenda. E E THE MODEL FOR A PROPOSED THE CITY OF PALM SPRINGS PRIORITY BASED BUDGETING: THE CITY OF RIVERSIDE'S PRIORITY BASED BUDGETING: BUYING RESULTS THE COMMUNITY WANTS AT -A PRICE THEY ARE WILLING TO PAY SUBMITTED BY DARYL TERRELL AT THE FEBRUARY 29, 2024, CITY OF PALM SPRINGS CITY COUNCIL MEETING . I I-. . -. 4..-i � .` 1� .. .. _. _ _ . � _ � �. BEST PRACTICE Budgeting for Results and Outcomes (2007) (BUDGET) Background. The National Advisory Council on State and Local Budgeting (NACSLB) has identified four essential principles of effective budgeting. The specific principles include: (1) set broad goals to guide decisions, (2) develop strategies and financial policies, (3) design a budget supportive of strategies and goals and (4) focus on the necessity of continually evaluating a government's success at achieving the goals that it has set for itself (i.e., performance). The Government Finance Officers Association (GFOA) has officially adopted the recommendations of the NACSLB. GFOA also has issued separate recommended practices on strategic planning and performance measurement. All of these documents underscore GFOA's longstanding support of strategic planning and performance measurement as part of the budget process. Consistent with the NACSLB principles, a growing number of governments use the budgeting for results and outcomes approach. Rather than starting with the prior period's budgeted programs and activities, they begin with available revenues, continue with a consideration of desired results and strategies, and then conclude by deciding what activities and programs can best achieve desired results. This approach is a marked departure from the incrementalism often characteristic of budgeting. Budgeting for results and outcomes links strategic planning, long-range financial planning, performance measures, budgeting, and evaluation. It also links resources to objectives at the beginning of the budgetary process, so that the primary focus is on outcomes rather than organizational structure. Recommendation. The Government Finance Officers Association (GFOA) recommends that governments consider budgeting for results and outcomes as a practical way to achieve the NACSLB objective of integrating performance into the budgetary process. GFOA believes that the following steps should help a government in making this successful transition: (1) Determine how much money is available. The budget should be built on expected revenues. This would include base revenues, any new revenue sources, and the potential use of fund balance. (2) Prioritize results. The results or outcomes that matter most to citizens should be defined. Elected leaders should determine what programs are most important to their constituents. (3) Allocate resources among high priority results. The allocations should be made in a fair and objective manner. (4) Conduct analysis to determine what strategies, programs, and activities will best achieve desired results. (S) Budget available dollars to the most significant programs and activities. The objective is to maximize the benefit of the available resources. (6) Set measures of annual progress, monitor,.and close the feedback loop. These measures should spell out the expected results and outcomes and how they will be measured. (7) Check what actually happened. This involves using performance measures to compare actual versus budgeted results. (8) Communicate performance results. Internal and external stakeholders should be informed of the results in an understandable format. Budget professionals may play a number of roles in budgeting for results and outcomes, including the following: • Facilitating government -wide results and analytic support. • Providing "reality checks" on budget allocations and expected revenues in the light of adopted financial policies. • Advising on allocations for administrative support functions, which provide necessary organizational infrastructure for achieving community goals, but do not typically emerge as high priorities on their own. • Analyzing work product to evaluate the process of budgeting for results and outcome. • Serving as an advocate for outcomes and the process in general rather than for any particular department. Budgeting for results and outcomes is not just a one-year exercise, but also a multi -year effort that should improve the budget process. References • GFOA Best Practice, "Performance Management: Using Performance Measurement for Decision Making (2002) - Updated Performance Measures," 1994. • GFOA Best Practice, "Recommended Budget Practices of the National Advisory Council on State and Local Budgeting (NACSLB)," 1998. • GFOA Best Practice, "Adoption of Financial Policies," 2001. • GFOA Best Practice, `Establishment of Strategic Plans," 2005. • GFOA Best Practice, "Managed Competition as a Service Delivery Option, " 2006. Approved by the GFOA's Executive Board, March 2, 2007. RVEiZSIDE City Council I�/1[emorandum, City IArts &.Innovation 113111Y111tillm,IMII.1.11.0.101HUM I 10 1 ,.MMUMIIMUII]IHIM] IIMIII I, WTI III III Rill, IHIM III It, lititUI[IIIII IHIIHHItill UIHIII U[IINIII till III LH.11IIIIII111111IIIII IMtilIIIIMIII 10 ItIIIIIIIII Itill, till Hill IIIII till III IHIItlllllltll TO: HONORABLE MAYOR AND CITY COUNCIL DATE: AUGUST 4, 2020 FROM: CITY MANAGER'S OFFICE WARDS: ALL SUBJECT: PROFESSIONAL SERVICES AND LICENSE AGREEMENT FOR PRIORITY BASED BUDGETING SOFTWARE WITH RESOURCE EXPLORATION LLC IN AN AMOUNT NOT TO EXCEED $300,000 FOR A FOUR-YEAR TERM ISSUE: Approve a Professional Services and License Agreement for priority -based budgeting software with Resource Exploration LLC in an amount not to exceed $300,000 for a four-year term. That the City Council: Approve a Professional Services and License Agreement for priority -based budgeting software with Resource Exploration LLC in an amount not to exceed $300,000 for a four- year term; and 2. Authorize the City Manager, or their designee, to execute the agreement and any additional documentation to effectuate this agreement, and the ability to make minor non -substantial changes. BACKGROUND: On June 16, 2020 the City Council unanimously voted to adopt the Fiscal Year (FY) 2020/21 Emergency Budget and directed staff to purchase and install the infrastructure necessary to adopt a priority -based budgeting methodology for the next budget cycle. DISCUSSION: Priority Based Budgeting (PBB) is a budget -decision methodology created by Chris Fabian, and a set of data -analytic tools created by Michael Seman and Chris Fabian. Chris Fabian founded the Center for Priority Based Budgeting (CPBB) in 2008, and co-founded Resource Exploration (ResourceX) with Michael Seman in 2015. ResourceX acquired the Center for Priority Based Budgeting in 2017. Priority Based Budgeting o Page 2 Priority Based Budgeting was first recognized and written about in the International City/County Management Association's (ICMA) Public Management Magazine in June 2008. Since then PBB has been the subject of a Government Finance Officers Association (GFOA) White Paper and several Government Finance Review (GFR) journal articles. PBB creates a link between strategic planning and long-term financial planning. PBB picks up where the strategic plan leaves off, using the desired results stated in the strategic plan as a basis for formulating the long-term financial plan and upcoming budget. In summary, PBB supports the decision -making process to assign resources to programs and services that align with the City's strategic plan and support the City's strategic goals and objectives. PBB helps to ground the decision -making process for the upcoming budget cycle within the constraints of the existing fiscal environment. Under PBB, departments will inventory their programs and rate the relevance of the programs to the City's strategic goals or in response to external forces, such as legal mandates. Programs are then subjected to a secondary rating process performed by designated peer groups, such as City Administration, City Council, and selected boards and commissions. Current program revenues, costs, and personnel resources are estimated and assigned based on the FY 2020/21 adopted budget. With the concerted effort of all City departments and input from designated peer groups, the outcomes of the PBB software and consultant services will include a Blueprint for Action, Program Insights, and Insights to Action which can be applied to the development of the FY 2021/22 budget. Departments will apply Program Insights to the development of the City's line - item FY 2020/21 budget. Blueprint for Action Concept: f 1 r� •! igEN ` rp •a'r^ _ '^"� +..--Y . t� �Y ' I EJ6�ig771.�y .3�ro�'>� {7!b'i ,' C`zCl`i�x!��lill�l. �17�"C��7�l�JCi�'�"JLI�" I " .`%t i ( ' � ° `;�',---! ,it,t�3r t � yTa"�� k isa�i;r � : p � �{ ' . I t , l i• � r-J • �; � .�,�• •�i ��'jpy�'}..rrI.�.t y� ur�'. " •+y�Jimcmol9`> �Iwl, .l.�t.;J, Lit L[6 Priority Based Budgeting a Page 3 Program Insights Concept: E2nice Leval invease g this progrm; and likely increasing 911 call center, public health, etc) We need to, conslnuo to provide this program ns-is withoutrnuch m Status QUD rooto compromise (ihink water treatment) We need to continue to provide this'service, l5ut we can be tleiuble Serviai,' Lo el DEcroin with rile level of service (chink "records maragetT ent; or FQIA {T.81r<<G9ariiyr mquosts, or signage, etc) Option to Suspend If the had to, we could suspend this service, evert if temporarily {Yelnparar)ly) (think "acloatic contar at tha packs" or passport procetsina) Iptemai f c'itlirrS"1'laf3, Internal partnership, centralization, consolidation opportunities C�nsaiidatiCa exist for this `program ithink inspc-ctions,floeL IT cupport) wa arc better off still providing this program, but with regional Regional Fet`u-mship partners in orderto maintain our level,of senrico, but do it for less (thinie remonal (loot imvntenanee, facilities amintonanee, artc) Insights to Action Concept — anticipated adjustments to be applied to the next budget:: WM* $12,730 Service Level, Increase New deed - Increase Investment:" Service Level Increase 1019 (Ado ed 2019 Mflmaled) 2020 (Proposed) Personnel I$ 281,628 S 281,628 IS 291,993 Non etsonncl ($ 146,500 IS 246,500 15 147,965 Total Program S 428.128 Is 428,128 It 440.053 4�7°: „IIj� III $21,133 Program Efficiency Resource Reallocation: Program Efficiency" ,2019 rAdootedl 20191Crtlmatedl 2010 Wrobwr dl Personnel s 92.607 IS 75.193 IS 78,203 Non personnel. 5 32J372G,010 Total Progam s 125,344S . 9s,930 5 104,211 A software solution is necessary to ensure the successful implementation of PBB. A Fiscal Health module accompanies the PBB software and provides the City with a visual and interactive tool for Priority Based Budgeting . Page 4 financial planning, such as adopting major initiatives or addressing fiscal challenges. The Professional Services and License Agreement with ResourceX, LLC totals from $225,000 to $300,000 over a four-year term. The software purchase and implementation in year one (1) of the agreement totals $90,000 and includes consulting services to facilitate the implementation of PBB and Fiscal Health. The minimum software, and licensing renewal cost is $45,000 annually, inclusive of 55 total support hours. The Agreement includes an alternative $70,000 annual renewal option with an additional 150 support hours. Each renewal period will begin with a Customer Success Meeting to review the City's objectives and plan a scope for the use of the selected renewal support hours. The purchase is in compliance with Purchasing Resolution No. 23256, Section 602(c) which states that competitive procurement shall not be required when the procurement can only be obtained from a sole source or timely from a single source and the Manager is satisfied that the best price, terms and conditions for the procurement have been negotiated. The Purchasing Manager concurs this purchase is in compliance with Purchasing Resolution No. 23256, Section 602(c). FISCAL IMPACT: The total fiscal impact of the action is a not to exceed amount of $300,000 over four years with an additional 150 support hours, or a minimum amount of $225,000 with only 55 renewal support hours. Funding for FY 2020/21 software and implementation costs totaling $90,000 is available as listed in the following table and will be shared among the City's five largest funds, as these funds are expected to have the greatest number of programs defined under PBB. Appropriations for future fiscal years will be included in the budget submissions for those fiscal years to be presented to the City Council for approval. Fund Account Percent Shar'; FY 2020/21 Amount ;j General Fund 7223700-421000 60% $54,000 Water Fund 6210000-425700 10% $9,000 Electric Fund 6000000-425700 10% $9,000 Refuse Fund 4130100-425806 10% $9,000 Sewer Fund 4125000-425806 10% $9,000 ("i TotaB' Fa$90;00o, Prepared by: Moises Lopez, Deputy City Manager Certified as to availability of funds: Edward Enriquez, Chief Financial Officer/Treasurer Approved by: Moises Lopez, Deputy City Manager Approved as to form: Gary G. Geuss, City Attorney Attachment: Professional Consultant Services Agreement with Resource Exploration LLC City of Riverside, CA Program Based Business Intelligence (PBBi) and Fiscal Health Tool Module (FH) Software Tools and Implementation Document Overview: I. Agreement Summary, and Contact Information IL Scope of Work +Taking Action on the Data (PBBi and FH Module) III. Contract Terms, Renewal Period and Signatures IV. Appendix A: End User License Agreement V. Appendix B: Value Proposition - PBBi and Fiscal Health Tool Module I. Agreement SummarV, Contact Information, and ResourceX Specialists Urganization name: - Project Lead: [Telephone number/email: Start Date: ;Target Completion Date: Total Project Cost Year 1: ,Subsequent Annual Support Cost: ResourceX Implementation 'Specialist: ResourceX Support: ;ResourceX VP of Client Success: resource of Riverside, California ie Thomas August 2020 November 2020 $ 90,000 ---------- ------ -- $35,000 PBBi+ $10,000 Fiscal Health Option 1 $60,000 PBBi + $10,000 Fiscal Health Option 2 Samina Reichow, sreichow@resourcex.net Chris Fabian, efabian@resourcex.net Eric Keck, ekeck@resourcex.net ww-vw-wwww,w w w w w w w w w w W-W w w wqw WWWWWWWO 1. Line Item Eutiget Pcliiev.r, Inlidig-Daid f Ll S 0 U FC2 11. Prognim Inventor 111.1pinal Dc!ivarable, ana praz-rrcnm, , IV. 8 u do, C-t Dme!Opmral-i'L P5'0 Drwides a dora Visu3ti-ation, The altiative sancludas dop:h =1 mig to,r-u: Ntaff, % aaalyu,csappu� .)e "fith a 'FaR pant' "011owingour Leam"Lhen-W ap�pach rum drNe.:m.7 he de -n- 6 �ds- i" 'ntk� develdpm6�i and" C,4 torw9mmimc] ; hz!p sSmin pro.-jess .a Re su Rfour E"79an za on s oppolturZesforresoLim, support we "'fd presenlAttqfy 0 ata, ypur exploratic� r�,FA , bcatfom-inds�-eouwz, 'C'm'stdata; Resou - ��-y 4 -ccarfor, B d" - I , cugI, 0 � ea,!l ganEraumn q.j• pjb.4daN u�, No , - -- .... gen-r3ticn oppomunfti-s jj�, doueloj;mint 0,65 with, -thc- j'bu5ifieas;meZqence and b-migbm recomme6daljans :rckn LM Implementation Schedule q& LIFO,RNJA resourfre If fiscal anaty[ics, tSCccnwic.w ..r :«.. ..._�P-%:. ..._. ...,._.,."."..v__ •--.-.•___......_.-_... ___�' i Week ofSept 7th - A„!1 Progrom Inventory Training i 32 Week of Sept 24st _ -, . -AII Ousting Training Week of Sept 21st i=- Week nf5ent29th AI! 'Alt LL ��iCost Scoring Trainng - Allocations C6molete' - 32 '-" - - 15 _ 'i ii. Scope of Work - PBBi Swav'se �, ��sk � �:^3ey9ftkRq�t3 aelestane ', kRtia�tiaia�ct I)e7averalr�o i � Hours Project Planning Planning Session Meeting between ResourceX and Project Kick Off 4 Finalized project schedule. Riverside Project Management Meeting Introduction of Project Team. Includes executive team Chatter. and Super Users. Discuss project schedule, project people, and project purpose. Project Planning Project Charter Meeting between ResourceX and Project Charter 4 Finalization of Project Riverside Project Management Completion Charter. Team. Includes executive team and Super Users. Focus is the review of the Project Chatter Project Launch Super User 101 ResourceX Project Manager will Super Users online 4 Super User access to PBBi Training train all City of Riverside tools. identified Super Users on their role and PBBi process Project Logistics Identification of The City of Riverside will Department Users 2 Department users will be Users identify all users who will require online provisioned in the PBBi access to the, tools and provide tools. their names and emails to ResourceX Project. Manager Project Logistics Budget Upload The City of Riverside will Budget data uploaded 16 Riverside budget data is in compile budgetary data for the PBBi tools. inclusion in the tool. The ResourceX Project Manager will format and upload into the PBBi tools. re-SoU `C23 4 .eumo-pxxauteu A Project Logistics Define User The City of Riverside will work User Groups Created 2 PBBi tool now ready for Groups with ResourceX Project Manager Department User to define the topology of the user interaction. groups in the PBBi tools Project Launch PBBi 101 Training The City of Riverside will be All users trained 4 All Riverisde stakeholders trained in the basics of PBBi by through PBBi 101 trained in PBBi the ResourceX Project Manager and project team. Project Launch Peer Review The City of Riverside Super Peer Review 2 Riverside Project Selection Training Users and Project Management Selection Management Team will be Team will be trained in the why trained in Peer Review and how of peer review Project Logistics Peer Review Team The City of Riverside will Peer Review team 2 Riverside Peer Review Finalization provide the ResourceX Project finalized team is finalized Manager with the Peer Review team list. Program Program Inventory Team ResourceX will train all Program Inventory 32 Program Inventory created. Inventory Training Riverside users in the creation of creation Rudimentary insights their program inventory. identified from programs. Riverside users will also be taught and guided through the creation of insights from the programs. Program Costing Program Costing Team ResourceX will train all Program Costing 32 Costs allocated to all Training Riverside users in the allocation completed programs. Insights of costs to their programs. identified from costing. Riverside users will also be PresentPBB site created. taught and guided through the creation of insights from the costs. Project Logistics Cost Allocation ResourceX Project Manager to Program Costing 16 Cost allocation cleanup Completion ?vorkwith Super Users to clean up Completed and Present_r'BB site cost allocations enhanced. Program Scoring Program Scoring Team ResourceX will train all Program Scoring 32 Programs scored according Training Riverside users in the creation of completed to results and BPAs. their program scoring on both Insights identified from results and Basic Program scoring. PresentPBB site Attributes. Riverside users will enhanced with completed also be taught and guided through program scores. the creation of insights from the scoring. Project Logistics Scoring P.csourceX Project Manager to Program Scoring 16 Department Scoring Completion work with Riverside Super Users completed cleanup and PresentPBB and within the tools to clean up site enhanced. scoring ..Rrr' ••,»F" "` •ram . IN NO W MI Project Logistics Peer Review ResourceX Project Manager to Peer Review 24 Department and Peer Completion work with Riverside Project completed Review scores uploaded Management Team on clean up, into tools and PresentPBB finalization and upload of peer site is finalized. reviewed scores into the tools Project Logistics Final Review ResourceX Project Manager will Final PreseatPBB 16 Final PresentPBB site Training provide training to all Riverside site unveiled unveiled to all Riverside Users in a retrospective format on users. what was accomplished and what is to come resource�at"� 6 Program Insights Program Insights Chris Fabian and the ResourceX Insights to action 40 : Knowledge on how to take Workshop Team will provide all Riverside training delivered action on insights. Users with a workshop on taking utilizing the PBBi action on the insights gleaned Blue Print and best throughout the implementation practices for action Project Logistics Post ResourceX Project Manager and Project wrap up 4 Assurance of scope Implementation VP of Client Success will prepare meeting completion. Check -in and meet with the Riverside Project Management Team to discuss -progress, answer any questions, and discuss next steps Software and Support: The "Present Site" is your final deliverable and may be accessed behind a password for internal use or open to the public via a link from your website. An example for your review is accessible here at the following link: https://openpbbdata.net/ResourceXProgramCosting/ � � t i>Z1nC' �. A -. .1 r{ j3 •,I• i• f}Fl��:if�` Sna0 far Iota!wtt shoa^i kmieW mN Pre Hy'hest pwram costs WaWn thedepatwrAs `seledaTa6ie� "5eledeeuEpef -- mp .. UV- Tflww OVERALL rnorrmxnxanrRU-"ngm:ZT ff Gdat3Y33 reso e IMn•.tYy� Scope of Work— Fiscal Health Tool Module (FH) Development of the "Fiscal Health Toof' This graphic is a depiction of the "Fiscal Health Tool" created by ResourceX, to help illustrate how an organization utilizes a simple model to communicate its fiscal "condition," monitor its Fiscal Health and do interactive, real-time scenario planning and forecasting with decision makers. uR.,..n.m eew•+a ' rmaRwne.,.. r sea:waoso — rWou LW uaY M G�JMwseAF f++n P�ilrc Rrvmn. wJFTwe. irWa 6M.an esnl.�i.wuls: m I OamYa Rq'.aYenL4 bMmliatOreFe Glen omllnz,..ne Ao e a s ff ? d a The screen capture above is from the web-based"Fiscal Health Tool' The implementation process to develop the web -based "Fiscal Health Tool' is described in further detail on the pages that follow. resource @ 9 �1�t v\i 1 ���� 1 lnitial Data Collection ResourceX will provide a template and instruction for data entry into the Fiscal Health Tool. Your organization will have the ability and access to update and maintain your financial data within the Fiscal Health Tool Ongoing versus One-time Analysis ResourceX will provide example data, recommended best practices and consultation in order to differentiate between "ongoing' and 'One-time' sources and uses. Your organization will have the ability and access to update and maintain your "ongoing" and "one-time" designations within the Fiscal Health Tool. • Revenue Analysis: For each of the funds being modeled, the total sources of revenue to the organization will be differentiated between "Ongoing" sources — those that are reliable or predictable sources of income - and 'One-time' sources — those that can only be "spent" once. Examples of 'Ongoing' revenue streams include the "reliable' component of sales tax revenues, franchise fees, utility rates and charges based on system demand, and perhaps a conservative estimate for interest income revenues associated with reserved fund balances. Examples of 'One-time' sources include fund balance (reserved or unreserved), grants that are one-time in nature or have a certain "expiration" date, fees for a specific projects or initiative, and potentially volatile interest income. o Expenditure Analysis: For each of the funds being modeled, total expenditures will also be differentiated between 'Ongoing' costs - those expenses for costs related to the ongoing operations of the organization — and those uses that are more 'One-time in nature. Examples of 'Ongoing" costs include personnel (salary and benefits), supplies, energy, regular maintenance and other daily expenditures association with the day-to-day "running' of the organization. Examples of those expenditures that are more "one- time" in nature include capital project expenditures, other projects or initiatives undertaken once or on a less than annual basis, emergency / contingency initiatives, or other non -recurring expenses. Thegraphic below illustrates the process of organizing revenues and expenses Into either "Ongoing"or "One-time"(or both) categories in the budget data template reso rCL '® to � % 0 13016 01 _Expense �130 ISAIARI6 AND WAGE '. z 0 x j 0 13017 02 1110 ;HETIPEMENT x 0 1 _1262 03 _Ezpenso _ „_ Expense 1110 � HEALTH INSURANCE I _z .,_' .. 0 _ _z „_ _ z _ _ .0 _._ 11019 05 ppO r e_j110 OTHERDENEFNS z 0 y 0 ! 13020I06 130 I z 1,._ 0 _ z i,11021 t07 _Expense .IPE_M/TEASE. .,.__ Ezpene �110 IPEPAIRAND MAINTENAI _ x 0 _ _ z . ._1102208 ,Eryensa 1130 ...IAM/TRANSR C0N1RAa „x_ ._ .__ _ 0 _...._ _. y _ �_._ 0____._... ;. 11D34f1D 'Eapense�j110_! HOUANGOF INMATESJJ ll0]5'31 Espense f110 - INMATE MEDICAL C:ONTI �x 0 z 0 ._ » a „_31016 12 Ezpene j 130 CLEARANCE AND DEMOI �_. x _ 0 , z � 0 W �» 1 33027113 , Ezpene i110 JRESIDENTIALWASTECH, _ __ 0 , x 0 =2814 Ezp110 1 OTHER CiDNTRACTUALS x 0__- 31029115 _- _Ezpene 130 �EPSERNCES .. _._.x. .. ., . =_ .._. 0,_._...._ »,..._._- K.....�._ _.--.0......... ..__ Financial Forecasting Support The maximum value of the "Fiscal Health TooP' is the ability to visually display a variety of historical, projected and "what -if' data, in an analytical format - a "dashboard" approach. This will provide a way for your organization to assess and explore future scenarios and initiatives in an interactive and "real-time" environment. ResourceX will schedule a training to introduce and illustrate the functionality of the Fiscal Health Tool. Further training is available upon request through the Fiscal Health channel on our communication platform, Slack. Fiscal Health is a concept promoted and highlighted by such associations as the Government Finance Officers Association (GFOA), ICMA and the Alliance for Innovation. With the "Fiscal Health Tool' you will have the capacity to: c Communicate your "picture of fiscal health" to Elected Officials, administration, staff, bargaining units, residents and other community stakeholders. e Graphically depict the alignment of "one-time" and "ongoing" funding sources with the "one-time" and "ongoing" expenditure needs of the organization. ® Effectively monitor your Fiscal Health position to ensure that decisions made do not impact the level of financial health achieved. o Access the impact of capital decisions on your financial position, including the evaluation of the impacts of "ongoing" operational costs associated with those "one-time" expenditures. c Model financial forecasts and document the assumptions on which they are based. e Engage in interactive and "real-time" scenario planning. e Demonstrate the impact of "today's" decisions on your five to ten year forecasts reso .urceX 11 ,mom ena4zzwvxe� Slad-Support m Ongoing support will be available through the #fiscal -health channel on Slack. Support requests, development concerns and requests for additional trainings will be managed through this communication platform. ResourceX Oblieiations ResourceX mrill: A. Discuss the project scope and overall plan B. Assist with the creation of the project charter C. Upload budget data into the online tools D. Provision users in the online tools E. Within 12 months of the signature date of this Agreement, implement single sign -on functionality for Client users. ResourceX will: A. Initial data collection B. Ongoing versus one-time analysis C. Initial tool development D. Financial forecasting workshop E. Final tool refinement resource 12 Client will. A. Complete the ResourceX Project Charter B. Provide budget data C. Provide a list of employees that will need access to the online tools D. Commit to adhering to mutually agreed upon implementation schedule Client agrees: A. Initial communication will be via email or Xpress Support through Slack , with phone communication initiated only in the event of non responsiveness or critical event, such as situations preventing the use of the software. If Client desires to speak by phone, Client will email ResourceX stating their desire to speak telephonically and to request an amicable time to do so. ResourceX typically responds to email within 24 hours excluding weekends and standard public holidays. III. Contract Terms, Setup, Renewal Period and Signatures The following table outlines the costs, deliverables and timeline. ial Invoice Amount — Software plus one-time set-up for PBBi and the Fiscal Health Tool Module (FH) limitation on user licenses for PBBi Software Renewal Rate — 3 year renewal pricing Support Hours — implementation support outlined in Sec tion III ,000 + $10,000 for FH T000l to 50 hours resource 13 Software Renewal Rate — 3 year renewal pricing which includes $10,000 for Fiscal Health Tool _.-- ___.._..-... _.._.-....... .......... - ....... ....... Support Hours — implementation outlined in Section III Health Tool Module Support Hours Invoice Date — Due net 30 Days )00 + $10,000 for FH Tool hours hours per month 1st, 2020 'Renewal Invoice Amount lOption 1: $45,000 total ;Option 2: $70,000 total Renewal Invoice Dates —Due net 30 Days IJuly 1", 2021 !July 1" 2022 July 1" 2023 ! Initial Setup & Ongoing Management: Initial implementation can be divided into two parts, the setup and ongoing management. Both efforts are detailed below. ResourceX Obligations As part of the setup; ResourceX will: A. Discussing the project scope and overall plan; B. Assisting with the creation of the project charter ; C. Uploading annual budget and personnel data to the online tools; D. Provisioning users in the online tools; E. Discussing community results and definitions. As part of ongoing management, ResourceX will: A. Creating program inventories; B. Allocating costs to programs; C. Validating costs; D. Training staff on how to utilize the analysis tools. E. Within 12 months of the signature date of this Agreement, implement single sign -on functionality for Client users. Client Requirements Client agrees to the following terms for delivery and review of materials. A. Client shall complete the ResourceX Project Charter. B. Client shall provide budget and personnel data for the implemented fiscal year. ff re ®urceY, 14 C. Client shall provide a list of employees that will need access to the online tools. D. Client shall commit to adhering to mutually agreed upon implementation schedule. Communications Client agrees the communication is to be via email or Xpress support through Slack. ResourceX typically responds to email within 24 hours excluding weekends and standard public holidays. If the Client wishes to speak on the phone or arrange a virtual meeting, the Client agrees to send an email to ResourceX stating that you would like to schedule a phone call or virtual meeting and ResourceX will work with the Client to arrange a time. Critical situations preventing the use of the software by all Client users are also recommended to occur through email or Xpress support through Slack; however the Client may contact ResourceX by phone if desired, if a single designee is selected so as not to duplicate incident reports. Annual Renewal Terms PBBi and FH: The standard annual renewal rate of $35,000 (depicted as option 1) will be set for 3 years. Each year an invoice will be sent July I" for continued access to the Online Priority Based Budgeting tools. Option 2 provides for the option for Riverside to obtain 200 hours of support. The Fiscal Health renewal will afford the client with an additional 5 hours of support each month. 1. Client Success Meeting: Each renewal year, you will get an annual "Customer Success Meeting" during which we will talk about what's working really well, where your organization needs improvement, and most importantly your goals and aspirations for the renewal year ahead, so that we may scope to your success. 2. Project Charter: Your renewal year goals and the ResourceX scope to support you will be documented in an annual Project Charter— a simple tool to clarify the customized and specific goals and deliverables we are striving to achieve together. 3. Standard Support PBBi: Without any changes to this agreement, you are entitled to up to 50 hours of support from ResourceX and ongoing annual access to the software you've subscribed to. This standard supply of support hours will be used to deliver on the agreed upon scope of work that we will create together during your Client Success meeting. Note, these hours are good only for your renewal year (they do not roll over). 4. Option 2 Support PBBi: Without changes to this agreement, the client would be entited to 200 hours of support hours that would be used to help deliver upon the scope of work agreed upon in your Client Success meeting. These hours do not roll over from one renewal year to the next if unused. 5. Additional Support: All support outside the scope of this Agreement that are requested by the Client and which ResourceX agrees to perform will be billed at a rate of [$2001 per hour. Client will be notified and must approve in writing (email is sufficient) additional services before they will be performed, although ResourceX may not necessarily be able to inform Client in advance of the total cost of such additional services. Client will also be given opportunity to purchase additional services at package rates, when deemed appropriate by ResourceX. Payment Terms Installment payments shall correspond to project milestones as follows: 1. 25% upon completion of Data Collection: Line Item Budget Review, Initial Data Collection 2. 25% upon completion 'of Program Inventory and Costing: Program Inventory, Cost -Allocation, with On -Site Training 3. 25% upon completion of Take Action with Insight: Program Review Meetings 4. 25% upon completion of Apply Insight to Take Action for 2022 Budget with PBB Blue Print r7777 t W W 7 W W W W W W-Mr W W W WOWS W Www WOW W'IF'W W W rW W Software Acce'qs Support, 5ervo4ces 1-year annual subscription to 200-hours of support services, OnlinePBB,including,Program Customer, success,meeting—each Inventory, Program.Costing, Program year, ResourceX staff "will conduct an Scoring feature"sfor data creation, as annual "looking=ahead" meeting to well as PresentPBB; Resource review your objectives and plan a. Alignment and Reports for data scope around your support service analysis and insights hours and how best to deploy them • Unlimited accounts (for'City staff and "Xpress Support"access (online Slack elected officials,'not including citizens) portal for Super User questions) J ■ 16 CONTRACT TERMS Standard of Performance. While performing the Services, Consultant (ResourceX) shall exercise the reasonable professional care and skill customarily exercised by reputable members of Consultant's profession practicing in the Metropolitan Southern California Area, and shall use reasonable diligence and best judgment while exercising its professional skill and expertise. 2. Personnel. Consultant shall furnish all personnel necessary to perform the Services and shall be responsible for their performance and compensation. Consultant recognizes that the qualifications and experience of the personnel to be used are vital to professional and timely completion of the Services. Assignment and Subcontracting. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including without limitation, the insurance obligations set forth in the Insurance section of the Contract Terms. The Consultant acknowledges and agrees that the City of Riverside ("City") is an intended beneficiary of ally work performed by any subcontractor for purposes of establishing a duty of care between any subcontractor and the City. 4. independent Contractor. In the performance of this Agreement, Consultant, and Consultant's employees, subcontractors and agents, shall act in an independent capacity as independent contractors, and not as officers or employees of the City of Riverside. Consultant acknowledges and agrees that the City has no obligation to pay or withhold state or federal taxes or to provide workers' compensation or unemployment insurance to Consultant, or to Consultant's employees, subcontractors and agents. Consultant, as an independent contractor, shall be responsible for any and all taxes that apply to Consultant as an employer. 5. Yndemnifiction: 5.1. Defense Obligation For Other Than Resign Professional Liability. Consultant agrees, at its cost and expense, to promptly defend the City, and the City's employees, officers, managers, agents and council members (collectively the "Parties to be Defended") from and against any and all claims, allegations, lawsuits, arbitration proceedings, administrative proceedings, regulatory proceedings, or other legal proceedings which arise out of, or relate to, or are in any way connected with: 1) the Services, work, activities, operations, or duties of the Consultant, or of anyone employed by or working under the Consultant, or 2) any breach of the Agreement by the Consultant. This duty to defend shall apply whether or not such claims, allegations, lawsuits or proceedings have merit or are meritless, or which involve claims or allegations that any or all of the Parties to be Defended were actively, passively, or concurrently negligent, or which otherwise assert that the Parties to be Defended are responsible, in whole or in part, for any loss, damage or injury. Consultant agrees to provide this defense immediately upon written notice from the City, and with well qualified, adequately insured and 17 resource �v� B experienced legal counsel acceptable to City. This obligation to defend as set forth herein is binding on the successors, assigns and heirs of Consultant and shall survive the termination of Consultant's Services under this Agreement. 5.2. Indemnity For Other Than Design Professional Liability. Except as to the sole negligence or willful misconduct of the City, Consultant agrees to indemnify, protect and hold harmless the Indemnified Parties from and against any claim for damage, charge, lawsuit, action, judicial, administrative, regulatory or arbitration proceeding, damage, cost, expense (including counsel and expert fees), judgment, civil fine and penalties, liabilities or losses of any kind or nature whatsoever whether actual, threatened or alleged, which arise out of, pertain to, or relate to, or are a consequence of, or are attributable to, or are in any manner connected with the performance of the Services, work, activities, operations or duties of the Consultant, or anyone employed by or working under the Consultant or for services rendered to Consultant in the performance of this Agreement, notwithstanding that the City may have benefited from its work or services. This indemnification provision shall apply to any acts, omissions, negligence, recklessness, or willful misconduct, whether active or passive, on the part of the Consultant or anyone employed or working under the Consultant. 6. Insurance: 6.1. General Provisions. Prior to the City's execution of this Agreement, Consultant shall provide satisfactory evidence of, and shall thereafter maintain during the term of this Agreement, such insurance policies and coverages in the types, limits, forms and ratings required herein. The rating and required insurance policies and coverages may be modified in writing by the City's Risk Manager or City Attorney, or a designee, unless such modification is prohibited by law. 6.1.1. Limitations. These minimum amounts of coverage shall not constitute any limitation or cap on Consultant's indemnification obligations under Section 11 hereof. 6.1.2. Ratings. Any insurance policy or coverage provided by Consultant or subcontractors as required by this Agreement shall be deemed inadequate and a material breach of this Agreement, unless such policy or coverage is issued by insurance companies authorized to transact insurance business in the State of California with a policy holder's rating of A or higher and a Financial Class of VII or higher. 6.1.3. Cancellation. The policies shall not be canceled unless thirty (30) days' prior written notification of intended cancellation has been given to City by certified or registered mail, postage prepaid. 6.1.4. Adequacy. The City, its officers, employees and agents make no representation that the types or limits of insurance specified to be carried by Consultant pursuant to this Agreement are adequate to protect Consultant. If Consultant believes that any required ff 18 iresourcg insurance coverage is inadequate, Consultant will obtain such additional insurance coverage as Consultant deems adequate, at Consultant's sole expense. 6.2. Commercial General Liability Insurance. Prior to City's execution of this Agreement, copies of insurance policies or original certificates along with additional insured endorsements acceptable to the City evidencing the coverage required by this Agreement, for both commercial general and automobile liability insurance, shall be filed with City and shall include the City and its officers, employees and agents, as additional insureds. Said policies shall be in the usual form of commercial general and automobile liability insurance policies, but shall include the following provisions: It is agreed that the City of Riverside, and its officers, employees and agents, are added as additional insureds under this policy, solely for work done by and on behalf of the named insured for the City of Riverside. 6.2.1. The insurance policy or policies shall also comply with the following provisions: a. The policy shall be endorsed to waive any right of subrogation against the City and its sub -consultants, employees, officers and agents for services performed under this Agreement. b. If the policy is written on a claims made basis, the certificate should so specify and the policy must continue in force for one year after completion of the services. The retroactive date of coverage must also be listed. c. The policy shall specify that the insurance provided by Consultant will be considered primary and not contributory to any other insurance available to the City and Endorsement No. CG 20010413 shall be provided to the City. 6.3. Errors and Omissions Insurance. Prior to City's execution of this Agreement, Consultant shall obtain, and shall thereafter maintain during the term of this Agreement, errors and omissions professional liability insurance in the minimum amount of $1,000,000 to protect the City from claims resulting from the Consultant's activities. 6.4. Subcontractors' Insurance. Consultant shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss that may be caused by the subcontractors' scope of work and activities provided in furtherance of this Agreement, including, but without limitation, the following coverages: Workers Compensation, Commercial General Liability, Errors and Omissions, and Automobile liability. Upon City's request, Consultant shall provide City with satisfactory evidence that Subcontractors have obtained insurance policies and coverages required by this section. res®urcLa 19 6.5. Technology Professional Liability. Prior to City's execution of this Agreement, Consultant shall obtain and maintain during the term of this Agreement technology errors and omissions professional liability insurance with limits not less than $1,000,000 per occurrence or claim, $1,000,000 aggregate, to protect the City from claims resulting from the Consultant's professional services as described specifically herein. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Consultant in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations. 6.6. Cyber Liability Insurance. Prior to City's execution of this Agreement, Consultant shall obtain and maintain during the term of this Agreement cyber liability insurance with limits not less than $1,000,000 per occurrence or claim, $1,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Consultant in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations. 7. Time of Essence. Time is of the essence for each and every provision of this Agreement. 8. City's Right to Employ Other Consultants. City reserves the right to employ other Consultants in connection with the Project. If the City is required to employ another consultant to complete Consultant's work, due to the failure of the Consultant to perform, or due to the breach of any of the provisions of this Agreement, the City reserves the right to seek reimbursement from Consultant. 9. Conflict of Interest. Consultant, for itself and on behalf of the individuals performing under this Agreement, represents and warrants that by the execution of this Agreement, they have no interest, present or contemplated, in the project affected by the above -described Services. Consultant further warrants that neither Consultant, nor the individuals performing under this Agreement have any real property, business interests, or income interests that will be affected by this project or, alternatively, that Consultant will file with the City an affidavit disclosing any such interest. 10. Solicitation. Consultant warrants that Consultant has not employed or retained any person or agency to solicit or secure this Agreement, nor has it entered into any agreement or understanding for a commission, percentage, brokerage, or contingent fee to be paid to secure this Agreement. For breach of this warranty, City shall have the right to terminate this Agreement without liability and pay Consultant only for ressourcee; 20 .WWWWWWMWMWMWMWWMW1WMWlqw- Mr-larIMWIMW �%WNWIsw low 1W�MW the value of work Consultant has actually performed, or, in its sole discretion, to deduct from the Agreement price or otherwise recover from Consultant the full amount of such commission, percentage, brokerage or commission fee. The remedies specified in this section shall be in addition to and not in lieu of those remedies otherwise specified in this Agreement. 11. General Compliance With Laws. Consultant shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Consultant, or in any way affect the performance of services by Consultant pursuant to this Agreement. Consultant shall at all times observe and comply with all such laws, ordinances and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations. Consultant represents and warrants that Consultant has obtained all necessary licenses to perform the Scope of Services and that such licenses are in good standing. Consultant further represents and warrants that the services provided herein shall conform to all ordinances, policies and practices of the City of Riverside. 12. Waiver. No action or failure to act by the City shall constitute a waiver of any right or duty afforded City under this Agreement, nor shall any such action or failure to act constitute approval of or acquiescence in any breach thereunder, except as may be specifically, provided in this Agreement or as may be otherwise agreed in writing. 13. Amendments. This Agreement may be modified or amended only by a written agreement and/or change order executed by the Consultant and City. 14. Termination. City, by notifying Consultant in writing, shall have the right to terminate any or all of Consultant's services and work covered by this Agreement at any time. In the event of such termination, Consultant may submit Consultant's final written statement of the amount of Consultant's services as of the date of such termination based upon the ratio that the work completed bears to the total work required to make the report complete, subject to the City's rights under Sections 15 and 26 hereof. In ascertaining the work actually rendered through the termination date, City shall consider completed work, work in progress and complete and incomplete reports and other documents only after delivered to City.' Other than as stated below, City shall give Consultant thirty (30) days' prior written notice prior to termination. City may terminate this Agreement upon fifteen (15) days' written notice to Consultant, in the event: a. Consultant substantially fails to perform or materially breaches the Agreement; or b. City decides to abandon or postpone the Project. resourceYf- 21 Consultant may terminate this Agreement upon fifteen (15) days' written notice to City, in the event: a. City fails to provide remuneration for work agreed upon and provided within the terms stipulated in the Agreement 15. Venue. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. In the event either party hereto shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition of this Agreement, it is mutually agreed that each party will bear their own attorney's fees and costs. 16. Nondiscrimination. During Consultant's performance of this Agreement, Consultant shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, genetic information, gender, gender identity, gender expression, or sexual orientation, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Consultant agrees to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement. 17. Severability. Each provision, term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. In the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect. 18. Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of Consultant each represent and warrant that they have the legal power, right and actual authority to bind Consultant to the terms and conditions hereof and thereof. 19. Interpretation. City and Consultant acknowledge and agree that this Agreement is the product of mutual arms -length negotiations and accordingly, the rule of construction, which provides that the ambiguities in a document shall be construed against the drafter of that document, shall have no application to the interpretation and enforcement of this Agreement. 19.1. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of the Agreement or any of its terms. Reference to section numbers, are to sections in the Agreement unless expressly stated otherwise. 22 resqurc% � — — — — — — — — — — — — — — --- — — — — — — — — — — — — — — — — — — — — — 19.2. This Agreement shall be governed by and construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. 19.3. In the event of a conflict between the Contract Terris section of this Agreement and the body of the Agreement and Appendices hereto, the Contract Terms contained in Section III shall be controlling. This Agreement shall be governed by and construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. THIS AGREEMENT and APPENDICES is made and effective as of August 4, 2020, between City of Riverside, CA and Resource Exploration, LLC. The parties agree as follows: IN WITNESS WHEREOF, City and Consultant have caused this Agreement to be duly executed the day and year first above written. Resource Exploration, LLC, a Colorado corporation Chris Fabian CEO By:�f. Michael Seman (Printed Name) [Printed Name] _ [Title] Company Treasurer. and Co-founder (Title) 23 CITY OF RIVERSIDE, a California charter city and municipal corporation a California corporation In City Manager Attest: City Clerk Certified as to Availability of Funds: By: FinancoMiFector Approved as to Form: 0 Senior Deputy City Attorney This proposal will remain valid for 90 days from signature date. resou9'ce r.24 , i rescurceX IV. Appendix A: End User License Agreement ONLINEPBB® LICENSEAND HOSTING AGREEMENT IMPORTANT -BY UTILIZING ONLINEPBB SOFTWARE, YOU ARE ACCEPTING THE TERMS AND CONDITIONS OF THIS AGREEMENT. PLEASE READ THE FOLLOWING CAREFULLY BEFORE PROCEEDING. This Agreement is a legal agreement between you (City of Riverside, CA) and Resource Exploration, LLC, the licensor of OnlinePBB software and associated on-line documentation that you access using this internet website (together referred in this Agreement as "OnlinePBB"). I. 0nlinePBB License. Subject to the terms of this Agreement, Resource Exploration, LLC, grants you a non-exclusive, non -transferable license to access OnlinePBB remotely viabrowser on the server used by Resource Exploration, LLC, to operate this website (the "Server") solely for purposes of creating and maintaining on the Server any interactive website developed using this website and with respect to which all required fees payable under this Agreement have been paid by you (each, a "Website"). 2. Restrictions. You may not download or otherwise copy all or any portion of OnlinePBB software. You may not sell, rent, license, lend, transfer or otherwise grant access to OnlinePBB to any other person or entity except as contemplated by the license granted to you above. You must comply with all applicable laws and regulations in your use of OnlinePBB. You may not modify, translate, reverse engineer, decompile disassemble or otherwise attempt to obtain or derive source code from all or any portion of OnlinePBB. 3. Proprietary Rights. Resource Exploration, LLC and its supplier's reserve all rights to OnlinePBB not expressly granted in this Agreement. Resource Exploration, LLC and its suppliers own OnlinePBB and all associated patent, copyright, trade secrets and other proprietary rights in OnlinePBB. No title or ownership of OnlinePBB or any associated proprietary rights are transferred to you or any other person by this Agreement. 4. Disclosure and Ownership of Data. The materials used by Resource Exploration, LLC for work performed under this Agreement are specific and unique methods of fiscal management and budget prioritization. As such, these materials are protected by copyright. You agree and understand that these materials and all methods, models and applications resulting from the use of said materials are the sole, complete and absolute property of Resource Exploration, LLC. All legal rights and protections afforded by copyright and Resource Exploration, LLC's ownership of all the underlying intellectual property associated with these fiscal management and budget prioritization materials are retained and reserved 61 rescurceX 2 exclusively by Resource Exploration, LLC, reserving all legal rights and remedies incident to its ownership of these materials. It is understood that your organization may utilize these methods, models and applications for their own specific use but are not free to share these methods, models and applications with other individuals or entities. Client retains ownership of all Client -specific data produced by this venture, including any and all deliverables described in this Agreement or produced in conjunction with this Agreement. Client agrees not to share proprietary templates, model structures, or other copyrighted materials with other individuals or entities. ResourceX agrees not to use, share, or publish any Client - specific data without the written authorization of the Client. Nothing herein precludes disclosures required by law. 5. U.S. Government Restricted Rights. IfOnlinePBBisaccessed orused byany agency or other part of the U.S. Government, the U.S. Government acknowledges that (i) OnlinePBB and accompanying materials constitute "commercial computer software" or "commercial computer software documentation" for purposes of 48 C.F.R. 12.212 and 48 C.F.R. 227.7202-3, as applicable, and (ii) the U.S. Government's rights relating to OnlinePBB and accompanying materials are limited to those specifically granted in this Agreement. 6. Data - Data Security. The OnlinePBBweb-application provides data security via SSL encryption, and is accessed via https - this protects and secures the client's data from outside the organization, protecting the client and RESOURCEX. Additionally, Client data is protected by way of individual user accounts and user passwords, and varying levels of permission and access, to give the client control over data accessibility. 7. Data - Data Storage. The OnlinePBBweb-application utilizes Amazon Web Services (AWS) for best -in -class data storage. Storage of Client's data will reside solely in the United States. 8. Data - Data Protection/backups. Resource Exploration performs complete back-ups of all OnlinePBB data at a frequency of once per night. Storage of Client's data backups will reside solely in the United States. 9. Service Availability - Disaster recovery/business continuity. To support the organization in the case of disaster, Resource Exploration performs complete back- ups of all OnlinePBB data at a frequency of once per night. The organization may also download their own data files on a more frequent basis, in order to perform complete data restoration - restoring from any point in time, from previously saved data, completely in control of the City. Data files are stored in DropBox, as well as Resource Exploration headquarters to provide additional redundancy. 10. Service Levels - System Availability / performance. The OnlinePBB web- res®urce�,y; 3 application is provided and available 24 hours per day, 7 days per week. Resource Exploration reserves the right to perform regularly scheduled updates and maintenance, during which time the organization may experience brief periods of downtime for server restarts to make updates available. Scheduled updates take place after 6pm EST Monday -Friday, and the organization will be made aware ahead of schedule, to the greatest extent possible. It should be noted that Resource Exploration reserves the right to restart the web server at any time, but will provide the organization as much advanced awareness as possible. Resource Exploration uses all reasonable business means to ensure the application is available for the organization's use. 11. Insurance - Vendor insurance and liability. Resource Exploration agrees to procure and maintain in force during the term of this Agreement, at its own cost, cyber insurance coverage. 12. Independent Contractors. The parties agree that Resource Exploration, LLC, is an independent contractor as that term is commonly used and Resource Exploration, LLC's employees are not and shall not be considered subcontractors or employees of the City and has no authority to bind the City in any manner. Contractor shall be solely responsible for the withholding and reporting of all federal, state, and local income and employment taxes. Contractor acknowledges that it is not insured in any manner through the City for any bodily injury, personal injury, or property loss whatsoever. 13. Limitation of Liability. Except for indemnification and those matters required to be insured pursuant to this Addendum, neither party shall be liable to the other, or any of their respective agents, representatives, or employees for any lost revenue, lost profits, loss of technology, rights or services, incidental, punitive, indirect, special or consequential damages, loss of data, or interruption or loss of use of service, even if advised of the possibility of such damages, whether under theory of contract, tort (with the exception of gross negligence or willful misconduct including negligence) or otherwise. 14. Liability Insurance. Resource Exploration, LLC, shall obtain and maintain in full force and effect during the entire term of this agreement a policy of comprehensive general liability insurance, including an acknowledgement of and coverage for the indemnity provision of this Agreement, with limits of liability of not less than $1 million and workers disability compensation insurance in compliance with California's statutory limits, and shall provide a certificate of insurance to the City naming the City as a certificate holder, which certificate shall provide that the City shall receive at least 30 days prior written notice of cancellation or nonrenewal of such insurance. Said insurance shall cover any claims arising out of, occurring during, or accruing during the term of this agreement and shall survive the term and termination of this agreement and shall be primary without right of contribution against the City. 15. Non -Assignment. The parties agree that there shall be no authority on the part of Resource Exploration, LLC, to subcontract, assign, or otherwise dispose of any portion of the services to be performed herein without the prior written approval of the City. In the event that res®tJrc�M 4 �..ce the City approves a subcontract, assignment, or disposition, Resource Exploration, LLC, solely shall be responsible for managing, directing and paying the subcontractors or assignees, and the City shall have no obligations whatsoever toward said subcontractors or assignees. Consent to subcontract, assign, or otherwise dispose of any portion of this Agreement shall not j be construed to relieve Contractor of any responsibility for the fulfillment of this Agreement. 16. Remedies. The Parties acknowledge that the Proprietary Information exchanged is valuable and unique and that disclosure in breach of this Agreement will result in irreparable injury to the adversely affected Party, for which monetary damages, on their own, would be inadequate. Accordingly, the Parties agree the adversely affected Party shall have the right to seek an immediate injunction enjoining any such breach or threatened breach of the Agreement. 17. Handling of Disputes. The Parties agree that any dispute regarding this Agreement, and any claim made by Client for return of monies paid to ResourceX, shall be handled in accordance with applicable State and Federal laws. 18. Severability. If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement, the remaining provisions of this Agreement shall remain in full force and effect. 19. Completeness of Agreement. ThisAgreement along with the Scope, Terms and Conditions found in Sections I, II, and III above constitutes the entire agreement between your organization and Resource Exploration regarding OnlinePBB, the hosting of the Website and your use of the website. Resource Exploration will not be bound by any provision in any purchase order, receipt, acceptance, confirmation, correspondence or otherwise unless Resource Exploration specifically agrees in writing to such provision. resource 5 ,..,��.,,,� a Value Proposition — PBBi and Fiscal Health pool Module r� ource Vi. Appendix B: PBBi Value Proposition The Line -item Budget is organized to satisfy regulatory standards, create effective budget monitoring and control mechanisms, provide transparency and accountability as a best practice in budgeting. However, it does not provide adequate insights into the costs of providing specific programs, nor arm us with the business analytics needed to open up resource re -allocation and revenue generation opportunities. 4� �} Line -item Budget y it To get to the answer of questions such as "can we do this program more efficiently," and "are we the best source to provide this service," or "are we charging appropriately to recover our costs for fee -driven programs" requires us to know what programs do we offer, how much do they cost, and how much are we charging. Leveraging your line -item budget data, we can create an additional layer of data (a "Program Inventory") to describe the programs offered by your organization, and apply a process technique (Cost -allocation and Revenue -allocation) to produce a fundamentally transformative data -set known as a Programmatic Budget (aka Program Based Business Intelligence/PBBi). Programmatic Budgeting Pmgmmw +Rs (mmnmnue)Mom n According to the Government Finance Officers Association (GFOA), "Program Budgeting is an underlying assumption to many of GFOA's budgeting best practices, and being able to connect costs and outcomes associated with specific services is critical to communicating value to citizens." A program budget shows exactly what the government does, how much it costs, and what the tradeoffs are. � f�c�®s`� Peso� 2 �w,v m�em�.s eo6r Exhibit !: The Benefits of Program Budgeting,. Transparency. Creates tn.e transparency by shoving what the govenmwt does and how mudi it costs in away that is meaningful to citizens. ~ _ Trade-offs. Provides a language for meaningfuldiscussions aboUt malong budgeting trade-offs among services: Sourcing. Allows more mearngful comparisons to other ._ service providers when considering options such as out - sou -sing or shared services. _ Workforce Planning, Shows how the wod;force is associated with programs, which allows governments to better integrate succession planr.'ing into the budget proces4. Performance Clarires the cont.exC of prograrrts•bctterthan oroader categories like departments and divisions by using par ormance and measures. With GFCA's Shayne Kavanagh, ResourceX co-founder Chris Fabian established the best practices in creating an effective Program Inventory, as well as executing a consistent and accurate approach to cost (and revenue) allocation to efficiently implement a Programmatic Budgeting approach. And with the key business intelligence that a Program Budget data set creates, an effective path to "taking action on the data" via trade-off decisions, workforce planning, sourcing and other crucial conversations, became the subject of the Government Finance Review's journal publication on the topic: downloadable here. Just as Programmatic Budgeting builds on and makes use of your line -item data to create more actionable insights at the program level; your organization may consider layering additional "Perfutrnatxe-6z_sed Budgeting Pribrity-Based. if � BiidgeHng. ------�, p • Programm2hc --; r Wgehng, 3 resource recwmwrsoruu..ceQ data in future years to embark upon Priority -Based Budgeting and even Performance -Based Budgeting. l Program Based Business Intelligence (PBBi) is a foundational data set that unlocks insights i pertaining to program efficiency, service levels, and cost recovery opportunities, and that's why_ I it's a Best Practice. In future years, you will be well equipped to consider additional Best I Practices: e Layering strategic planning data, outcomes, mission and vision, and connecting them via a Program Scoring process, your organization can unlock the insights of program relevancy achieved through Priority Based Budgeting. 6 Layering on metrics, input measures and outcome assessments (including citizen satisfaction surveys), and connecting them via measurement assessment, your organization can unlock the insights of program performance achieved through Performance Based Budgeting. ResourceX is a leader in PBBi implementation and analysis, Priority Based Budgeting and Performance Based Budgeting with over 300 implementations across the United States and Canada. Our work is identified as Best Practice by the International City/County Management Association (ICMA), the Government Finance Officer's Association (GFOA), the National League of Cities (NLC) and the Alliance for Innovation. "At its core, Priedty-Based Budgeting calls for us to be comprehensive and strategic in our efforts to accomplish out mission to mako Marathon County, the, healthiest, safest and mast prosperous countym the state." Lance Leonhard„ Deputy County Administrator: "I've been preparinq budgets for 20 years — never have 1 prepared a more exciting, forward -looking budget than what we are presenting to you tonight." Jim Ritsema, Cit)('Manager, Kalamazoo,rMl 3 ,,... ..3td `Iear.PrerJnly R= .t a�,.a,.a�tmnlemontec.�. - "Priority driven budgeting is a common sense, strategic, alternative'to budgeting."' Day d Aivord Mayor South Jordan, Utah "The story we tell ourselves in this City is that we're broke, busted, bankrupt. And we turn to citizens begging. them to understand this obvious fact, and to provide us.money for what tee t3 need. But how to do we stand behind this story''when we collect over,$600 million every year?' We're not brokel Wejustchoose to look our assumptions that every dollar is spent exec* as It should be. The process,and tools of Priork' Based Budgeting upends this assumption and l - untocks opportunities to substantialiy,re-allocate the resources we have." Sanity Spahg. Councilwoman - Ci ofToledo,Ohlo , The following proposal and quote outline the steps in our PBBi Package. Fiscal Health Value Proposition The Fiscal Forecasting & Scenario Planning Tool provides a new visual tool to help facilitate budget discussions. Modeling in the Fiscal Forecasting Tool allows staff to develop live scenarios to provide elected officials an instant picture of the financial impacts of their decisions. ResourceX strongly believes that this "Tool" puts decisions into a better perspective for your elected officials to tell the story of your organization's financial condition using a visualization and helps manage your Fiscal Health as you look towards the future. You've recognized the "dashboard" qualities of the "Tool", in that it provides an immediate and interactive depiction of various scenarios and decisions that face your organization and provides improved clarity in the simple and "unified picture" that everyone can see. Data Visualization allows us to create a common view of the financial situation that is simple to understand and interpret, describes the clearly defined variables that can impact the financial situation, allows for "live" and "real-time" changes in these variables, and offers the ability for "dynamic" modeling of "what -if" scenarios. Communicating that picture simply and clearly is a valuable function of this tool. If local governments are going to be able to demonstrate financial reality internally to elected officials and staff, and externally to residents, they have to find better ways to make fiscal situations understandable and transparent to everyone. The following are illustrative of how ResourceX helps organizations visualize a common view of their fiscal situation through the development of the "Fiscal Forecasting & Scenario Planning Tool." 1) "SPENDING WITHIN OUR MEANS"- focusing on the alignment between ongoingsources and ongoing uses and on the alignment between one-timesources and one-time uses. Specifically, ResourceX helps communities: • Shift the focus of forecasting and budgeting from expenditures to revenues. • Establish alignment between ongoing revenues and ongoing expenditures and one-time sources and one-time uses. • Base resource allocation strictly on available (and reliable) ongoing revenues and one-time sources (as opposed to historical or forecasted expenditures). • Distinguish between general government revenues (taxes, franchise fees, etc.) program revenues (user fees, grants, permits, etc.); and understand the relative reliance of each funding source. • Require that reductions in specific program revenues are offset by equal reductions in expenditures for that same program. • Minimize reliance on volatile revenues sources to fund ongoing operations. • Create incentives for departments to seek diversification, manage and monitor their program revenues. "resourcem 2) ESTABLISHING AND MAINTAINING RESERVES — focusing on fund balance reserves and the monitoring tools in place to protect those reserves. Specifically, ResourceX helps communities: • Create an inventory listing of all reserves maintained across the organization and assess the adequacy and appropriateness of reserved and unreserved fund balances, eliminating any that are excessive, unnecessary or duplicated (having "too much' may be as problematic as having "too little" if there is no plan for how the funds are to be used to benefit the community). • Develop appropriate monitoring mechanisms that ensure reserves are being held in full compliance with all required restrictions, reservations or designations of fund balance. 3) UNDERSTANDING VARIANCES -focusing on disparities between budget projections and actuals to look for opportunities to shift resource allocations from areas where they are not needed and more importantly improve the accuracy of revenue and expenditure forecasts by eliminating the impact of recurring historical variances. Specifically, ResourceX helps communities: • Determine specific reasons for the occurrence of variances and adjust future budgets to be more in line with actual experience. • Identify programs or services where resources have historically been `over -allocated," allowing for those resources to be re -allocated to other areas of need. • Improve the accuracy of revenue and expenditure forecasts by better isolating and identifying emerging trends as well as eliminating the impact of recurring: historical variances. • Identify where resources have been allocated on a regular basis for one-time or cyclical costs, contingencies and/or worst -case scenarios and re -allocate those ongoing resources where possible. - • Evaluate "centralization' versus "decentralization" of services • Develop a salary/benefit projection tool to more accurately budget employee compensation costs and assist in analyzing the impact of variances (including vacancy savings, turnover issues unanticipated benefit costs increases, etc.): • Ensure that expenditures related to multi -year capital projects are budgeted in the years in which costs will be incurred to prevent large unplanned budget appropriations ("carry - forwards"). • Review the organization's "Chart of Accounts." 4) BEING TRANSPARENT ABOUT THE "TRUE COST OF DOING BUSINESS" — focusing on ensuring that appropriate internal service and administrative costs are shouldered by the programs that benefit from those services, ensuring that fees for services are capturing both direct and indirect costs (appropriate for cost recovery objectives) and ensuring that the full cost of offering programs and services is clearly articulated and understood. Specifically, ResourceX helps communities: • Allocate appropriate internal and indirect costs so that the burden is shared by the programs (and other accounting funds) that demand and use those services. • Ensure that fees for services, where some level of cost recovery is expected, capture both direct and indirect costs associated with providing the service. • Identify opportunities to establish internal service funds for those departments that exist primarily to provide services to internal customers. • Assist with the implementation of internal service funds, where appropriate, to align cost and level of service with customer demand. • Identify the total cost (including direct and indirect costs) of providing all programs. • Encourage the use of a formal Cost Allocation Plan or other internal cost allocation process to establish the methodology by which overhead and administrative costs can be allocated to user departments and/or to various accounting funds, potentially relieving the burden on the General Fund where these types of costs normal "reside." • Develop asset replacement/maintenance plans and perform asset utilization studies. • Perform "sourcing" analysis for identified programs and services,. developing recommendations and comparative costing studies. 5) INCORPORATING LONG-TERM PLANNING INTO DECISION MAKING —focusing on the inclusion of all long-term plans prepared by the organization into financial forecasts and the budget process as well as the associated incorporation of relevant external economic influences. Additionally, insuring that the organizations use clear and concise modeling tools to communicate forecasts, assess impacts of treatment solutions and identify impacts of budget decisions. Specifically, ResourceX helps communities: • Understand the impact of relevant external economic influences and incorporate them into forecasts and budget projections. • Identify and incorporate all long-term plans prepared throughout the organization into long-term forecasts. • Develop revenue and expenditure forecasting methodology. • Prepare a comprehensive Capital Improvement Plan (CIP) that spans a period of at least five years and includes all potentially significant one-time expenditures as well as any associated ongoing operating costs. • Assimilate all elements of fiscal health into our "Fiscal Forecasting & Scenario Planning Tool," a scenario planning model that helps ensure decisions are made with an understanding of their impact on the organization's future financial picture while upholding the objectives of Fiscal Health. • Through the "Fiscal Forecasting & Scenario Planning Tool," developing a simple, graphic communication device that is used consistently to provide decision makers with financial information at a summarized level. re ®urgy,