Ordinance No. 6,209920409 -1
ORDINANCE NO. 6209
+ AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER
TO EXECUTE AND THE CITY CLERK TO ATTEST TO A CONTRACT
WITH LEWIS F. McLAIN, JR. FOR CONSULTING SERVICES;
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, FOR AN
AMOUNT NOT TO EXCEED THE SUM OF FOUR THOUSAND AND N01100
($4,000.00) DOLLARS; AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown,
Texas, hereby authorizes and directs the City Manager and City
Clerk of the City of Baytown to execute and attest to a contract
with Lewis F. McLain, Jr. for consulting services. A copy of
said contract is attached hereto, marked Exhibit "A," and made a
part hereof for all intents and purposes.
Section 2: That the City Council of the City of Baytown
authorizes payment to Lewis F. McLain, Jr. of an amount not to
exceed the sum of FOUR THOUSAND AND N01100 ($4,000.00) DOLLARS,
pursuant to the contract.
Section 3: This ordinance shall take effect immediately
from and after its passage by the City Council of the City of
Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 9th day of April,
1992.
O. HUTTO, Mayor
ATTEST:
EILM P. ALL, City Clerk
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CIO RAM R Z, SR/., ' )City Attorney
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Lewis F. McLain, Jr.
Fiscal Planning Consultant
2515 Nature Bend - Carrollton, Texas 75006
• 214- 418 -6536 / Fax 214 -418 -1830
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April 6, 1992
Mr. Bobby L. Rountree, City Manager
City of Baytown
2401 Market St.
P. O. Box 424
Baytown, Texas 77522
Dear Bobby:
Thank you for this opportunity to outline a proposal for me to be engaged by the City of
Baytown as your FINANCIAL PLANNER/ANALYST (FP /A). I would like to outline in
this engagement letter the scope of services I can perform and the fee schedule I will use.
The concept of FP /A is broader and more complete than any set of services offered by any
firm providing financial services. It offers an alternative in consulting services that can prove
to be very economical to a municipality such as the City of Baytown and is based on long
term relationships with the more progressive cities within my service area.
CONSULTING PHILOSOPHY
I would like to emphasize a philosophical position that, in my opinion, makes me a unique
provider of municipal financial services. As an independent, private consultant, I bring a
number of years of experience in policy development that makes my consulting approach
practical and defined at a level that reaches into the everyday operations of municipal
government. I have worked as a practitioner and as a consultant within organizations in
such basic staffing roles that my analysis work and resulting reports are specific and
implementable. I am not aware of any work I have every performed that ended up as a
report on a shelf collecting dust. In short, my work is detailed, practical and relatable to the
needs of a city. I do not "cookbook" my consulting work. However, I do build from any
existing work conducted by me, City staff or other previous consulting work, especially in an
effort to provide the most economical solution to an assignment.
I will be conducting all of the work myself. Nothing is delegated to a junior level consultant.
Every project is approached with a fresh look and has been an enhancement of similar work
I have done previously. This comes from 19 years in the municipal finance field, 11 years
as a consultant working with over 50 cities.
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Another philosophical position which sets me apart from many firms is that not only have
I been in the field of municipal finance for a number of years, but I plan to be here for
many more. Since 1973, my entire professional career has been devoted to the public sector.
• My consulting practice is based on the desire to have good working relationships with a
relatively small number of clients. Many of my clients have known me for my entire
professional life and realize the value of my knowledge and how it can be applied to their
everyday practical problems. My desire is to be working with municipal clients for the next
25 years. In short, I have been in the municipal finance field for a long time and intend to
be here for an even longer period of time.
To sustain a practice like I have built, my services have to be diversified and the quality of
work superior. I have a broad experience base unmatched by any collection of individuals
in most firms. I submit to you that there is not a firm in the Southwest whose current
employees have a more comprehensive set of skills and experiences than I have. Since my
business is based on having the capability to provide many services to a relatively small
number of clients, I am willing to assist clients in many roles ranging from advice and brief
analyses to relatively large analytical commitments. I have found that I am more effective
the longer I serve a client and the more assignments I am able to perform. As you know,
elaborate proposals and lengthy reports add significantly to the cost of consulting. My long
term relationships have enhanced my credibility with many staffs and city councils, allowing
me to spend more of my time conducting an analysis, preparing alternatives and developing
practical policies to be implemented.
SCOPE OF SERVICES
I am proposing to offer my services to you in all areas where I am qualified to serve. I
would like to be named as the FINANCIAL PLANNER/ANALYST for the City of Baytown.
I will make myself available to work on any assignment for which I am qualified. On large
assignments, I will prepare a separate engagement letter outlining the work steps and the
estimated hours. I would like to obtain authorization to proceed with any work requested
of me by you. If, in your opinion, there is a project that you think could be better
performed by another individual or firm, you are not bound by this agreement from pursuing
that alternative. However, I anticipate being able to serve you in the future by simply
receiving your instructions to proceed. I will work with you in whatever manner you desire
regarding scope and approval engagement letters. This working relationship is analogous
to the relationship that many cities have with outside attorneys and engineering firms.
BILLINGS /ACCOUNTABILITY
I will provide you with a summary of hours worked through the 15th and the last day of the
month. This billing will include the number of hours worked by me and by specific
assignment. This is not only to assist me in my cash flow, but is intended to make it easier
for you to hold me accountable for work performed. It is my experience that the frequent
• billings enable you to judge the reasonableness of the level of effort represented in the most
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recent 15 day period. Payment will be due within 10 days of receipt of the billing. If at any
time you are not satisfied with the billable hours requested for payment, then I will be happy
to discuss your concern. Your decision on the amount due to me will be the final word.
BILLING RATES
It has been my experience that the size of a project and the level of recurring work is
directly related to the annual cost of consulting. The greater the percentage of billable time,
the lower the hourly cost can be. In essence, I recognize an economy of scale which can be
passed on to the client when the cost of proposal writing and other marketing costs can be
kept to a minimum. I am prepared to reflect this economy through my billing rates which
are reduced below any firm with comparable expertise and experience. I am able to do this
since I work on my own and minimize costly overhead that is usually passed on to the client.
The billing rate will be $80 based on the level of assistance I hope to provide annually.
This billing rate will apply to the first twelve months of the agreement and is subject to
renegotiation as of the twelfth month after approval. This agreement is amendable if desired
by both sides and is cancelable by either side within 30 days upon written notice. Any
out -of- pocket expenses will be added to my billings based on actual costs. There will be no
mark -up on out -of- pocket expenses.
CONCLUSION
As an independent consultant, specializing in all aspects of municipal finance, I am able to
serve my better clients by being available throughout the year on short notice. With an on-
going relationship with select clients, I can be continually involved with the City's financial
staff. This will enable me to provide a broad range of services at the most reasonable hourly
rates for a consultant with my level of experience. I am willing to work with the staff in a
training and development mode, playing the role of a resource or advisor in any area where
staff capabilities enable the work to be accomplished with only limited assistance from me.
Much of my work will relate to representing the City in projects and analysis that involve the
reorganization of the finance department, the selection of finance director and other fiscal
professionals, and the selection of other financial experts including accounting and auditing
firms. I would also be able to assist in long range planning efforts, special analyses and
financial policy formulation.
I am already familiar with the City of Baytown based on the recent fiscal orientation. I view
your city as one with many creative challenges ahead even though there is a certain amount
of transition involved as new staff is put in place. It will be my privilege and honor to serve
you, your staff and City Council in this professional relationship. My reputation, as well as
yours, provides me with the incentive to make our relationship a long and satisfying one.
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Outline For Various Tasks
Selection of Accounting Firm:
o Contact at least three accounting firms to determine their general qualifications and
interest in the accounting and training needs for Baytown.
o Send fax to at least two accounting firms setting forth the general needs of Baytown
and specifying the expectations for an interview.
o Interview at least two accounting firms to determine their qualifications, their
understanding of Baytown's needs, their creativity to address Baytown's challenges,
their readiness to respond, and their hourly fees.
o Make recommendation to City Council.
o Estimated time is 10 hours plus expenses for a total of $19000.
Recruitment and Selection of Finance Director:
o Review of candidate resumes' applying for the position.
o Personal contact of select qualified applicants.
o Prepare for and participate on interview panel for candidates.
o Assist in technical testing or reference checking as needed.
o Estimated time is 3545 hours plus expenses depending on number of candidates and; �aU
required trips to Baytown. 3
Preparation of RFP for Independent Auditor:
o Prepare draft of RFP for consideration.
o Estimated time is 2 hours or $160.
o Involvement beyond this level to be determined at a later date.
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I look forward to an opportunity to discuss my thoughts and plans with you. Please let me
know if I can answer any additional questions.
40 Sincerely,
gal"
Lewis F. McLain, Jr.
APPROVED:
Bobby Rountree, City Manager
City of Baytown, Texas
Attest:
Eileen P. Hall, City Clerk
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