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CC - Approval of Ralph Anderson and Associates to Inventory Businesses OPerating in Rosemead - Internal File 024 TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DATE: APRIL 16, 1990 RE: APPROVAL OF PROPOSAL FROM RALPH ANDERSON AND ASSOCIATES TO INVENTORY BUSINESSES OPERATING IN THE CITY OF ROSEMEAD Attached for your consideration is a proposal from Ralph Anderson & Associates to inventory businesses operating in the City of Rosemead. The proposal offers two levels of services. The first level would cost the City $15,840 and includes the firm hiring the staff necessary to do the actual inventory. The second alternative would cost the City $8,290 with the City hiring and paying for the temporary employees. The consultant estimates that to collect the survey data, it would be necessary to budget 150 man hours. Recently, the City paid Refuse Survey workers $9.20 and $20.00 per hour plus 20 cents per mile. Using these figures, it could cost the City up to $3,000 for labor and $300 for mileage. Staff is recommending the second alternative as we may be able to schedule either City employees, hire temporary employees or a combination thereof to do the information gathering. The consulting firm would set-up the parameters, train the workers, and schedule the work activity. Completion of this project is an important first step in the event the Council decides to move ahead with a business registration process. J' RECOMMENDATION It is recommended that the Rosemead City Council approve the proposal from Ralph Anderson & Associates at a cost not to exceed $8,290, allocate $3,300 for personnel expenses, and appropriate that amount from the unappropriated reserves. FGT:js =No. Attachment 5 A PROPOSAL TO INVENTORY BUSINESSES OPERATING IN THE CITY CITY OF ROSEMEAD Prepared By: RALPH ANDERSEN & ASSOCIATES 1446 Ethan Way Suite 101 Sacramento, California 95825 (916) 929-5575 March 5, 1990 Sacramento - Dallas - Newport Beach uite 101an Way Ralph Andersen s1 146 Et & Associates Sacramento. CA 95825 (916) 929--5575 March 5, 1990 Mr. Don Wagner Assistant City Manager City of Rosemead 8838 East Valley Boulevard Rosemead, CA 91770 Dear Mr. Wagner: Ralph Andersen & Associates is pleased to submit this proposal to assist City staff identifying and documenting business operating within the City. Our proposal is based upon: • Our discussions with you regarding the background, goals and objectives of the City in undertaking this study. • The extensive experience of Ralph Andersen & Associates in providing comprehensive business license services to many California cities. • The special expertise of our staff, including their experience as. consultants and local government managers. We are experienced in working effectively with professional staff, elected officials and citizen advisory committees. Ralph Andersen & Associates has offices in Sacramento, Newport Beach and Dallas and has been in business for over eighteen years. The Firm's practice is national in scope and our consulting staff provides a broad range of services to local government in the fields of municipal finance, organization and management, personnel management, executive recruitment, and training and staff development. In addition to providing a variety of management consulting services to cities, Ralph Andersen & Associates has conducted numerous studies for other public agencies, as well as private sector clients. In all of these assignments, the skill and experience of our staff, combined with our thorough and objective approach to consulting, have resulted in successful projects, practical recommendations, and a solid record of implementation by our clients. After reviewing the qualifications and experience of Ralph Andersen & Associates and the professional credentials of our project staff, we believe that you will agree Sacramento • Dallas • Newport Beach Mr. Don Wagner City of Rosemead Page 2 that an assignment as specialized as this one requires the broader range of municipal management responsibilities for which the Ralph Andersen & Associates team is known nationally. We offer a unique mix of practical operating ex- perience and specific consulting expertise to the project. To facilitate your review of our proposal, we have prepared a detailed discussion of our general approach to business license tax consulting, along with a step-by- step description of the workplan necessary to meet the goals of the City in undertaking this study. The proposal is organized into sections as follows: • Section I--Our Understanding of and Approach to the Assignment • Section II-Workplan • Section III-Corporate and Staff Qualifications • Section IV-References • Section V-Project Timing and Cost. We look forward to your review of our proposal and to your favorable considera- tion of it. Please feel free to contact me at our Sacramento office if we can provide additional information or if you have questions concerning the proposal. Sincerely, Suzanne Bragdon Principal Consultant Financial Management Division TABLE OF CONTENTS PAGE _ SECTION I--OUR UNDERSTANDING OF AND APPROACH TO THE ASSIGNMENT 1 SECTION II--WORKPLAN 3 - SECTION 111--CORPORATE AND STAFF QUALIFICATIONS 5 Corporate Qualifications S Project Staff 7 SECTION W--REFERENCES 9 SECTION V--PROTECT TIMING AND COST 11 APPENDIX A--PARTIAL LISTING OF PAST AND CURRENT FINANCIAL MANAGEMENT CLIENTS A-1 Our Understanding of and Approach to the Assignment SECTION I OUR UNDERSTANDING OF AND APPROACH TO THE ASSIGNMENT When the City of Rosemead incorporated approximately 30 years ago, the City adopted the existing regulatory business license ordinance administered by the County. In that regulatory ordinances only apply to those business activities that potentially pose a public health or safety hazard, the City has never had the resources or mechanisms in place to document and track the number of businesses operating within the City. In this regard, the City is seeking the assistance of an outside consultant to identify and document businesses operating within the City: In developing a comprehensive inventory of current business activity within the City, it is anticipated that the following type of information will be compiled: • Name of Business • Type of business • Location. This information will assist the City in making decisions that impact the business community and will serve as the foundation for determining whether or not to establish a formal registration program. With this basic information in place, more detailed information on business activities and trends can easily be obtained through in-house surveys. Examples of other types of data that may be useful to the City include number of employees, length of time in operation, and total gross receipts. To achieve the City's objectives in undertaking this assignment, we have developed two alternative study approaches for your review and consideration. The first involves using our consulting staff to complete all study tasks and physically document all businesses operating within the City. The second approach uses our staff as technical advisors in designing the approach for developing the business inventory and auditing the results. Under this alternative, the actual physical inventory would be compiled by temporary staff retained by the City. Page I Our Understanding of and Approach to the Assignment The specific workplan designed to meet the City's needs through this study is presented in the next section of this proposal. Page 2 Workplan SECTION H WORKMAN In order to fully and accurately meet the needs of the City, we have carefully developed a workplan which is consistent with the approach just described in the preceding section, and which will guide the study team in achieving the specific objectives of the assignment. The workplan is presented as a detailed discussion of the specific steps to be taken to cover the desired scope, purpose, method and end-product of the assignment. Task 1--Meet With City Staff It is important for the overall success of the assignment that the consulting team and the responsible City staff have a mutual understanding of the study process and related matters. To help ensure that this occurs, the consultants will initiate the assignment by meeting with appropriate City staff. The purpose for the meeting will be to review in detail the study objectives, scope, timing and end- products. Task 2--Conduct Data Collection In conjunction with the initial meetings described in Task 1 above, the consul- tants will identify and collect relevant data from the City to facilitate the consulting team's understanding of the general make-up of the business com- munity prior to developing the business inventory. Typical of the materials which would be collected are: • Any staff reports which may have been prepared on the subject • Engine company and fire prevention bureau inspection data • Building permit data - • Planning Department data concerning commercial land uses • The City's regulatory business license tax ordinance. Task 3--Confirm Scone of Field Inventory Prior to commencing with field activities to identify and document businesses operating within the City, the specific areas and streets to be physically covered will be clarified with appropriate City staff. Although possible to audit every Page 3 M Workplan square block within the City limits, the cost effectiveness of this type of approach is questionable. Therefore, prior to undertaking any field activities, major areas and streets noted for high business activity will be identified and focused on during subsequent study tasks. For budgeting purposes, a certain number of days are assumed for completing the field inventory (refer to Section V of our Proposal). Days beyond those budgeted would be billed at the Firm's standard billing rates. Task 4--Conduct Field Audit In this Task, project consultants will literally walk the streets of the City, covering the areas identified in Task 2. Using dictating equipment, information on business' name, type and location will be compiled. The end result of this task will be a comprehensive inventory of those businesses operating within the City including sortable information on business type, name and location. Task 5--Compile Business Inventory Data Using standard lotus spreadsheets, the information collected in Task 4 will be compiled and formatted in a way that will allow City staff to easily update and " modify the information. The information will also be formatted to allow City staff the ability to sort and analyze the data in numerous configurations. Task 6--Audit Business Inventory Data Once the business inventory has been compiled (Task 5), the information will be audited and cross-referenced against available City records to further ensure that all businesses are accounted for. and properly allocated. Examples of the type of City records that will be referenced include: • Sales Tax Reports from the State Board of Equalization • Utility billing reports • Fire inspection records. Based on the findings from this audit, the business inventory will be refined and finalized. Task 7--Prepare Final Memorandum Report Following the audit of the business inventory records, a Final Memorandum Report will be prepared to summarize the results of the project. Short- and long- term strategies for maintaining adequate records on business trends and activities will likewise be identified. As an optional approach for the City's consideration, Task 4 involving the field inventory could be undertaken by temporary staff retained by the City. Under this alternative, project consultants would develop the parameters for conducting the field survey, train the data collectors on-site, and review all of their results. All other study tasks noted previously (Tasks 1-3 and 5-7) would be undertaken by the consultants as proposed in the basic workplan. Page 4 M Corporate And Staff Qualifications SECTION III CORPORATE AND STAFF QUALIFICATIONS This section describes the corporate and staff qualifications of Ralph Andersen & Associates. In addition, the project staffing organization for conducting this assignment in the City of Rosemead is described. CORPORATE QUALIFICATIONS Ralph Andersen & Associates is a management consulting firm providing services to public agencies and private sector clients throughout the nation with a particular focus in the West, Southwest, and Southeastern portions of the United States. Formed in 1972, the Firm operates with offices in Sacramento, Newport Beach and Dallas. Ralph Andersen & Associates has a full-time staff of thirty consultants and support staff. Members of the Firm's senior staff are not only experienced consultants but have also served in key local government management and analytical positions. Areas of consulting expertise include financial management and economics, organization and management, personnel management, executive recruitment, and staff training and development. In local government, Ralph Andersen & Associates has worked successfully with cities, counties, schools, and special districts. The Firm has also achieved success in assisting professional associations, non-profit organizations, and private sector clients including major retailing, manufacturing, land development, banks, and other financial institutions, and service corporations. An overview description of the services provided by each of the Firm's five .operating divisions is provided below. FINANCIAL MANAGEMENT DIVISION-The Financial Management Division provides assistance on a broad range of complex and technical assignments Page 5 to Corporate And Staff Qualifications relating to economics and pubic finance. In addition to the business license tax services provided by the Division, services include the identification of revenue enhancement opportunities; fee policy analysis and the development of fee structures; the development of public facility financing plans; assessment of the fiscal impact of new development, annexations, and incorporation; multi-year revenue and expenditure forecasts; development of comprehensive budget systems; utility rate studies; and a variety of financial policy analyses. All of the assignments undertaken by the Division involve working closely with client organizations. Frequently, assignments involve working directly with elected officials or with citizen committees. ORGANIZATION AND MANAGEMENT DIVISION-The Organization and Management Division assists public agency clients in identifying methods to improve operations, achieve economies, and deliver services efficiently and effectively. Projects include responsibility for evaluating the total operation of an agency or of a particular department, bureau, division, unit, or function. Among the specific types of assignments undertaken by the Division are the following: • Management audits • Analysis of organization structure and reporting relationships • Workload and staffing analysis • Productivity improvement • Analysis of administrative and management systems • Analysis of service delivery systems and methods • Transition studies • Performance audits • Organization climate assessments • Organizational problem-solving. PERSONNEL MANAGEMENT DIVISION-T'his Division conducts results- oriented assignments for public agencies and private sector clients in personnel management. Services include of position classification studies, compensation analysis, development of management compensation plans, the preparation of pay for performance plans, management development programs, and the development of complete personnel systems including policies, procedures, rules and regula- tions, and ordinances. EXECUTIVE RECRUITMENT DIVISION-The Firm's Executive Recruitment Division is the largest in the nation specializing in public sector searches for managerial, professional, administrative, and technical positions. The Division's approach to executive recruitment is personal with close and continuing contact between the assigned staff member, the client, and potential candidates. The results have been hundreds of recruitment conducted with candidates successfully identified. Page 6 Corporate And Staff Qualifications TRAINING DIVISION-Ralph Andersen & Associates conducts a variety of training courses annually for local government professionals. Courses are designed to be practical and to develop the skills of those serving in administrative and technical positions in the public sector. Courses are offered in the areas of organization analysis, personnel management, and financial management. PROJECT STAFF One of the strengths of Ralph Andersen & Associates is our ability to assign experienced and capable consultants to all projects. We work very hard to match the professional staff members' knowledge, experience, and abilities with the needs of the project. All staff that potentially could be assigned to this project possess several professional strengths including the following: • A detailed understanding of and practical experience with the roles of elected officials in local government • A solid understanding of the principles and practices of local government management, and the need for an accurate and complete technical analysis in the consulting process • Consistent andproven soundjudgment regarding the appropriateness, degree, and organizational impact of recommendations. Ms. Suzanne Bragdon, Principal Consultant, who has corporate responsibility for the Firm's business license tax practice, will serve as project manager for this assignment. Her experience in the business license field has included assisting a multitude of cities in developing or assessing/revising existing business license ordinances. She regularly conducts training seminars to teach participants the ins and outs of business license taxation, and speaks to groups and associations on business license practices and trends. Ms. Bragdon's resume is shown on the following page. In addition, other members of the Firm's staff from all of its offices are available to provide assistance as may be needed. Page 7 Corporate And Staff Qualifications SUZANNE BRAGDON Ms. Bragdon is a Principal Consultant with Ralph Andersen & Associates in the Firm's Financial Management Division, and assumes corporate responsibility for the Firm's business license tax consulting practice. Within finance, her respons- ibilities have included participation in a variety of assignments including analyzing and revising business license tax ordinances; assessing the fiscal impact and financial feasibility of new development, incorporation and redevelopment;. forecasting revenues; projecting tax increment financing; and analyzing debt financing practices on a statewide basis. Since joining the Firm, Ms. Bragdon has provided staff assistance on a number of financial assignments for a variety of public agency clients including cities, counties, special districts and state agencies. Specifically, in the area of business license taxation, she has worked with the cities of San Leandro, Santa Cruz, San Jose, Long Beach, Anaheim and Santa Monica. Of particular importance to the City of Rosemead, Ms. Bragdon is currently developing a registration ordinance for the City of Solvang, and developing the City of West Hollywood's first business license tax ordinance. In addition to these assignments, Ms. Bragdon serves as an instructor during a one-day work shop on assessing and revising a business license tax ordinance. In each of the assignments noted above, Ms. Bragdon provided technical and analytical support in all study areas including an assessment of the current business license tax ordinance with respect to the questions of equity, revenue generation and internal administration; development of a revised business classification system and framework for taxation; and identification, clarification and resolution of key policy issues. She likewise played a major role in educating and building a consensus with the business community. Before joining Ralph Andersen & Associates, Ms. Bragdon worked on a number of projects involving the public sector, primarily in the areas of finance and organization. These assignments included a review of state financing of public schools in the State of Washington and a detailed organizational analysis of a major Washington city. Ms. Bragdon graduated from the University of Washington, magna cum laude, with a Bachelor of Arts degree in political science, with emphasis on public administration and economics. Page 8 References SECTION IV REFERENCES Ralph Andersen & Associates is the leading provider of business license services to California cities today. We have successfully developed numerous business license proposals, and assisted many cities in the revision of their licensing structures. This background provides us with the knowledge of business activity trends throughout the state and will facilitate the development of a useful and manage- able inventory of businesses operating in Rosemead. This section provides recent references from among those cities. We encourage you to contact any or all of our past clients to learn more about the quality of our services and products. Page 9 References CITY OF.'ANAHEIM CITY OF SANTA CRUZ Ms Mary Turner Mr. Bob Shepherd City Treasurer Finance Director (714} 999=5.117 (408) 429-3585 ' CITY OF LONG BEACH CITY OF SANTA MONICA Mri James Algie Ms. Toby Fox Director of: Finance Collections Manager (213) 590 6237 (213) 458-8276 CITY OF SAN JOSE . CITY OF SOLVANG Mr Gerald Newfarr Ms. Bobbie Goodwin Currently Executive birector Finance Officer S.F Chamber of Commerce ' ! (805) 088-5575 (415).J924511 CITY OF SAN LEANDRO CITY OF WEST HOLLYWOOD Mr Dick Randall Mr. Ralph Webb City Manager Interim Assistant City Manager (415) 577-3200 (213) 854-7425 Page 10 01 Project Timing And Cost SECTION V PROJECT TIMING AND COST Ralph Andersen & Associates is prepared to begin the City of Rosemead business license study within two weeks of contract award. The total estimated time for completion of the assignment is approximately two months. The total cost for professional services, including 20 days of field time to document current business activities, is $15,840. Additional field days will be billed at the Firm's standard hourly billing rates. If the second alternative for conducting the study is selected, costs for professional services would amount to $8,290. This alternative assumes that the City would retain temporary staff to physically identify businesses operating in the City. Consultant staff would have responsibility for developing the parameters for conducting the survey, training data collectors and reviewing all results. The only other costs for which the City would be responsible would be reimburse- ment of out-of-pocket expenses for such items as travel, printing, postage and delivery, clerical and long-distance telephone charges. Ralph Andersen & Associates will bill the City monthly for progress payment. Billings will relate to the amount of work actually performed during the month and reimbursement of expenses actually incurred. Payment will be due by the City upon receipt of the monthly billing. We have sought to estimate the project time and costs as realistically as possible. However, if our workplan overlooks.any considerations which may be important to the City, we would appreciate your bringing them to our attention. Likewise, if our proposal creates practical or budgetary difficulties, we will be happy to review our approach and make such revisions as may be appropriate. Page 11 Appendix APPENDIX-PARTIAL LISTING OF PAST AND CURRENT FINANCIAL MANAGEMENT CLIENTS Page A-1 Append(r (q APPENDIX-PARTIAL LISTING OF PAST AND CURRENT FINANCIAL MANAGEMENT CLIENTS AKT Development Corporation, California Laguna Mgmt. Institute, California Amador County, California Lakewood Colorado American Institute of Professional Geoligists, League of California Cities California Lee Sammis Company, California Anaheim, California Leisure World/Laguna Hills, California Anderson, California Lincoln Property Company, California Arlington, Texas Long Beach, California Arthur Young & Company, California Los Angeles County Bar Association, Associated Building Industry, California California Bank of America, California Los Banos/Justice & Associates, California Belmont California Mammoth Lakes, California Benicia, California Marin County Redevelopment Agency, Beverly Hills, California California Billings, Montana Martinez, California Booz Allen Public Admin., California McDonough Holland & Allen, California Bullocks/May Company-City of Los Angeles, Menlo Park, California California Mission Viejo Company, California Burbank, California Modesto, California CH AI Hilo California Mojave County Formation Review CSMFO, California Commission, California California Debt Advisory Commission, Mono County LAFCO, California California Mono County Transportation Commission, California Municipal Treasurer's Association, California California Montebello, California Cupertino, California Monterey Conference Center, California CampbeQ, California Monterey County, California Chico, California Monterey, California Citrus Heights Incorporation Project Morton & Pitalo, California California Municipal Finance Officers Association, Civic Association of Rio Linda/Elvena, California California Natoma Station, California Contra Costa County, California Newport Beach, California Coronado, California North Natomas, California Costa Mesa, California Nolte-Crocker Land Company, California Davis, California Novato Redevelopment Agency-Laventhol & DEron, California Horwath, California El Dorado Hills Investors, Inc., California Oakland City of, California Elk Grove Civic League, California POST (Peace Officer Standards and Encinitas Fire Protection District, California Training), California Erickson Lumber Company, California Palo Alto, California Fillmore, California Pasadena, California Folsom, California Pebble Beach Company, California Galt California Placerville, California Hercules, California Pomona, California Holliman, Hackard & Taylor, California Ponerville, California Jones & Stokes, California Rancho Mirage, California Justice & Associates, California Rancho Palos Verdes, California K G. Land California Corporation, California Redondo Beach, California Kern County Water Agency; California Redwood City, California King City, California Regional Council of Rural Counties, Lafayette, California California Page A-2 Appendix Reimer Associates, California Wainwright & Ramsey, California Richardson, Texas Walla Walla, Washington River West Developments, California Ward Roberts & Watts, California Roseville, California Washington State Finance Officers' SA PI Ranch, California Association SFO Redevelopment Agency, California West Hollywood California Sacramento County Department of Parks & West Sacramento, California Recreation, California VAittaker & Baxter, California Sacramento, California Winters, California San Diego County, California San Francisco Redevelopment Agency, California San Gabriel Valley Tribune, Inc., California San Joaquin County, California San Jose, California San Leand% California San Mateo, California Santa Ana Valley Irrigation Company, California Santa Cruz, California Santa Fe Springs, California Santa Monica, California Santa Paula, California Santa Rosa Redevelopment Agency, California Santa Rosa, California Scotts Valley, California Siena Cultural Arts Center Association, California Snohomish, Washington Solvan$ California Sonoma County, California Sonoma, California South Placer County/Gruen & Gruen, California South San Francisco, California Southern California Association of Governments Southern California Executive Directors' Association, California Southmark Pacific Corporation, California Spink Corporation, California St. Helena, California Stanislaus County Auditor Controller, California Suisun City, California Tahoe County Formation Review Commission, California Teichert Aggregates, California Teichert Land Company, California Tsakapoulos Development, Inc., California Tulare Redevelopment Agency, California Turlock, California United Way of California University of California Extension University of Southern California Valencia Company, California Vallejo, California Page A-3 Yes: DeCocker, Taylor, McDonald, Bruesch, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. IV. CONSENT CALENDAR (CC-E, CC-J AND CC-M REMOVED FOR DISCUSSION) CC-A AUTHORIZATION TO ATTEND 27th UNITED STATES/MEXICO INTERNATIONAL CONVENTION OF SISTER CITIES, JULY 11-15, 1990 IN MERIDA, YUCATAN, MEXICO CC-B EXTENSION OF AGRE'E' FOR TRAFFIC SIGNAL MAINTENANCE SERVICES WITH SIGNAL MAINTENANCE, INC. CC-C AUTHORIZATION TO REJECT CLAIM FILED AGAINST THE CITY BY PACHECO/GUTIERR.EZ CC-D CITY CLERK VACATION REQUEST CC-F ACCEPT BIDS AND.AWARD CONTRACT FOR 1989-90 SLURRY SEAL ON VARIOUS STREETS CC-G ACCEPTANCE OF STREET EASEMENTS FOR KELBURN AVENUE (NEWMARK/GRAVES) CC-H 'APPROVAL OF PARCEL.MAP_NO. 21031 - 3105 EARLE AVENUE CC-I RED CURBING ON THE 900 BLOCK OF SAN GABRIEL BOULEVARD CC-L :APPROVAL OF PROPOSAL TROM RALPH ANDERSON AND ASSOCIATES TO INVENTORY:BUSINESSES OPERATING IN THE CITY OF ROSEMEAD MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN IMPERIAL that the foregoing items `on the Consent Calendar be approved. Vote resulted: _ -Yes: - DeCocker, Taylor, McDonald, Bruesch, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried.and so ordered. CC-K AUTHORIZATION TO ATTEND NATIONAL LEAGUE OF CITIES "YOUR CITY'S KIDS" NATIONAL CONFERENCE IN SEATTLE, WASHINGTON, MAY 2-4, 1990 Councilman Taylor stated that while he would not attend this conference, he wished to be registered for it so that he could receive the information packet. Cleo Young, 7533 E. Garvey Avenue, asked that the representatives to this conference state Rosemead's disapproval of the use of drugs and alcohol MOTION BY COUNCILMAN BRUESCH, SECOND BY MAYOR PRO TEM DeCOCKER ;that the Council authorize the attendance of any Councilmember, the City Manager, and a staff designee. Vote resulted: Yes: DeCocker, Taylor, McDonald, Bruesch, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. CC-E APPROVAL OF ANNUAL COMMUNITY DEVELOPMENT BLOCK GRANT REIMBURSABLE CONTRACT CC 4-24-90 Page #3