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RHRA_ Service Contract_Exec. Dir (09-19-06) - Page 1 REQUEST FOR HRA ACTION Date: 9-19-06 Item No: 8.b. Staff Approval: Agenda Section: CB Action Item Description: Consider approval of contra ct with BCS, Inc for HRA Executive Director Services 4 th Quarter 2006 and 2007 (HF0041) 1.0 Background The Roseville HRA currently has an annual contract with BCS, Inc for executive director services for 2006. The contract includes billing hours worked for services on an hourly basis not to exceed an annual amount of $45,000. The current hourly rate for those services is $65 per hour . BCS, Inc is requesting an hourly rate increase for the remainder of 2006 and 2007. The rate increase would be $85 per hour . This remains a discount (15%) from what the company charges other communities for the same service which they are able to provide with an annual contract arrangement. The proposal is to enter into a 15 month contract (October 2006 – December 2007) at the new rate of $85 per hour so that the HRA is assured of the budgeted amount for the executive director services for 2007. However, the HRA can also just accept a contract revision for the remainder of 2006 and review an annual contract for 2007 later in the year. The relationship between BCS and the RHRA has been successful and the work of the RHRA has been completed with no disruption to the residents of Roseville. This is due in part to Ms. Bennett’s (BCS, Inc employee assigned to the RHRA) existing relationship w ith the City of Roseville and the ability to have minimal office hours, access to the RHRA voice mail and email. In summary, the residents are getting the same service from the RHRA as they were when Ms. Bennett was a Roseville staff member serving as the HRA Executive Director. The increase for the rest of the year will not affect the $45,000 not to exceed annual amount based upon a 12 month period. Based upon existing billable hours, the average hours have been under contract by approximately 50 hours per quarter. Therefore, there will be approximately 200 unused hours or $13,000. By increasing the hourly rate there will be an additional $1,600 for the 4 th quarter which will decrease the total unused budgeted dollars to $11,400. 2.0 HRA Finance Subcommittee Recommendation and Suggested Action The HRA Finance Subcommittee, with Bill Majerus and Dean Maschka attending, met to discuss the contract revision request by BCS and make the following comments and recommendation. There is a preference to only modify the existing contract for 2006 and consider a new 12-mont h contract later in the year. This will enable the HRA to be consistent in their evaluation of all contracts on an annual basis rather than convert some to a 15-month term. By motion , approve a revised 2006 Service Contract between the HRA and BCS, Inc with an hourly rate of $85 per hour not to exceed the $45,000.