Monday, September 8, 2014

City of Salinas CA "working on a significant new way of allocating valuable City resources" through Priority Based Budgeting


--> "This cutting edge trend is now a best practice and is growing in the government sector because it is helping cities, counties and other governmental agencies allocate resources to programs that matter most."- City of Salinas Finance Director

 

The City of Salinas, CA initially began implementing priority based budgeting (PBB) in partnership with the Center for Priority Based Budgeting (CPBB) in late 2013. Through the significant leadership of the City Manager and City Council, staff have worked through the five steps of PBB and now have the resources and tools (the PBB Resource Alignment Diagnostic Tool) necessary to make thoughtful decisions regarding the best use of limited fiscal resources for the benefit of the citizens.

The following Report to the City Council, and more comprehensive City of Salinas PBB Process Report, will be presented at the September 9th Council meeting. The CPBB congratulates the City of Salinas staff leadership and staff for their successful implementation of PBB!
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REPORT TO THE CITY COUNCIL - City of Salinas, California

DATE:            September 9, 2014

FROM:           Matt N. Pressey, CPA, Finance Director

SUBJECT:      PRIORITY BASED BUDGETING – Administrative Report

RECOMMENDATION:


It is recommended that the Council accept this administrative report and identify key policy questions and areas for departments to explore further.
DISCUSSION:

During the Council meeting, Chris Fabian with the Center for Priority Based Budgeting will provide in-depth coverage of how the “Resource Alignment Diagnostic Tool” can be used and he will facilitate a discussion with Council to identify key policy questions and areas Council may want departments to explore further using the Priority Based Budgeting model.  Chris will provide an overview of the types of policy questions that exist and provide samples of policy questions other agencies have come up with.

Background
With the leadership of the City Manager and City Council, staff has been working on a significant new way of allocating valuable City resources: Priority Based Budgeting.  This cutting edge trend is now a best practice and is growing in the government sector because it is helping cities, counties and other governmental agencies allocate resources to programs that matter most.

Priority Based Budgeting has been declared a leading practice for government management by the International City/County Manager’s Association (ICMA).  Priority Based Budgeting is a strategic alternative to traditional budgeting. The philosophy of priority-driven budgeting is that resources should be allocated according to how effectively a program or service meets the City Council’s goals and priorities and how effectively a program or service achieves the goals and objectives that are of greatest value to the community.

City Staff have progressed through the first four steps and are now in the final, fifth step of evaluating the model data and will begin to use the diagnostic tool.  The diagnostic tool used in the fifth step was briefly presented to the City Council at this May 6, 2014 meeting by Chris Fabian with the Center for Priority Based Budgeting. For the FY 2014-15 budget cycle, department heads were asked to review
all of the tier 4 (lowest tier) programs and consider reducing the program or eliminating the program.  For this next budget year and for the potential new revenue measure, departments will be trained on using the model to further evaluate the higher tier (1 and 2) programs and identify which programs deserve an additional allocation of resources.

The entire process has been a significant collaborative effort city wide including over 32 directors and mangers, as well as other staff, from all departments.

Priority Based Budgeting – Progress through the 5 Steps

As a reminder, there are five steps in priority based budgeting:

1. Determine “Results”
  What are the Goals and Objectives (Results) the City is in business to achieve?
2. Define Results
        “When the City does    X   , then the Result is achieved”
3. Identify Programs and Services
  Prepare a comprehensive list of programs and services
  Comparing individual programs and services as opposed to comparing departments that provide those services allows for better priority setting
4. Value Programs Based on Results
  Score the Programs based on their influence on Results
5. Allocate Resources Based on Priorities
  Using “Resource Alignment Diagnostic Tool”

ISSUE:


Shall the City Council accept this administrative report and identify key policy questions and areas for departments to explore further?

FISCAL IMPACT:

There is no impact to the City’s General Fund with the Council’s acceptance of this Administrative Report.

CITY COUNCIL GOALS:


Priority Based Budgeting promotes all five of the Council Goals of 1) Economic Diversity & Prosperity; 2) Safe, Livable Community; 3) Effective Sustainable Government; 4) Excellent Infrastructure; and 5) Quality of Life.

 

CONCLUSION:

 

With the fiscal challenge of addressing the General Fund structural deficit that grows to over $12.7 million by fiscal year 2019-20, the City needs a strategic approach to allocate limited resources according to how effectively a program or service achieves the goals and objectives that are of greatest value to the community.

 

And don't forget! The Priority Based Budgeting Resource Alignment Diagnostic Tool is going web-based! Priority Based Budgeting is a unique and innovative approach being used by local governments across the Country to match available resources with community priorities, provide information to elected officials that lead to better informed decisions, meaningfully engage citizens in the budgeting process and, finally, escape the traditional routine of basing "new" budgets on revisions to the "old" budget.  This holistic approach helps to provide elected officials and other decision-makers with a "new lens" through which to frame better-informed financial and budgeting decisions and helps ensure that a community is able to identify and preserve those programs and services that are most highly valued. 

We've already built the basic model, but have invited leading local government priority based budgeting implementers to assist us in crafting the final product. With the launch of this powerful new public finance technology tool, we now have 10 communities already signed up to define the future of on-line local government budgeting! If your community is interested in contributing to the final development of this disruptive new tool, and being among the first to utilize on-line priority based budgeting, contact us!

Keep an eye on the CPBB blog for further updates. Sign-up for our social media pages so you stay connected with TEAM CPBB!

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on RSS

If you're thinking of jumping into the world of Fiscal Health and Wellness through Priority Based Budgeting we would certainly like to be part of your efforts! Contact us to schedule a free webinar and identify the best CPBB service option(s) to meet your organization's particular needs.

 

 

Monday, August 18, 2014

CPBB Presents Priority Based Budgeting "Diagnostic Tool" to City of Bainbridge Island, WA City Council


The Center for Priority Based Budgeting (CPBB) is proud to partner with the City of Bainbridge Island, WA. Beginning in March 2014, City staff and the CPBB have worked hard in implementing priority based budgeting (PBB). In support of these efforts, the CPBB tonight presents the Resource Alignment Diagnostic Tool to City Council

The PBB "Diagnostic Tool"is the definitive resource for identifying community priorities to strategically allocate public dollars. The CPBB wishes to congratulate the City of Bainbridge Island staff and Council in their work to support priority based budgeting. Great work!


The following is an excerpt from the City of Bainbridge Island Council Study Session agenda. To review the full Council Agenda click here.

Subject: Center for Priority Based Budgeting Resource Alignment Diagnostic Tool Presentation

Action Item: The Center for Priority Based Budgeting will Present the Resource Alignment Diagnostic Tool



And don't forget! The Priority Based Budgeting Resource Alignment Diagnostic Tool is going web-based! Priority Based Budgeting is a unique and innovative approach being used by local governments across the Country to match available resources with community priorities, provide information to elected officials that lead to better informed decisions, meaningfully engage citizens in the budgeting process and, finally, escape the traditional routine of basing "new" budgets on revisions to the "old" budget.  This holistic approach helps to provide elected officials and other decision-makers with a "new lens" through which to frame better-informed financial and budgeting decisions and helps ensure that a community is able to identify and preserve those programs and services that are most highly valued. 

We've already built the basic model, but have invited leading local government priority based budgeting implementers to assist us in crafting the final product. With the launch of this powerful new public finance technology tool, we now have 10 communities already signed up to define the future of on-line local government budgeting! If your community is interested in contributing to the final development of this disruptive new tool, and being among the first to utilize on-line priority based budgeting, contact us!

Keep an eye on the CPBB blog for further updates. Sign-up for our social media pages so you stay connected with TEAM CPBB!

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on RSS

If you're thinking of jumping into the world of Fiscal Health and Wellness through Priority Based Budgeting we would certainly like to be part of your efforts! Contact us to schedule a free webinar and identify the best CPBB service option(s) to meet your organization's particular needs.

 

Wednesday, August 13, 2014

Curtain Call: The CPBB "New Wave" of Local Government (Un)Conference Recap



Thank you all so much for your support of the Center for Priority Based Budgeting and, in particular, our 2014 “New Wave” of Local Government (Un)Conference.

This year, we dove deep into A Revolution in how Community’s Leverage Resources! Leading the Way in Key "Result Areas" - Through the "new lens" of Priority Based Budgeting, communities have unveiled an entirely unique understanding regarding the "Results of Government" that define the very role of modern local government.  The answer to the question "why do we exist" has focused on several key "Result" areas most relevant for our time.  

Our goal was to have a unique event where everybody felt connected and ultimately left with unbridled enthusiasm to change the world. With attendees representing 26 states, 3 countries and two continents, having you there to participate, share your unique stories, and also learn from the innovations of other partners and implementers – it just couldn’t have struck the chord we wanted any better than that!





Thank you for adding to the experience for everybody! And hopefully you found it as exciting and valuable as we set out to accomplish.

The feedback we’ve received from those who attended has been astronomical! Here are a couple select comments:

"Just wanted to thank you again for putting this on. I don’t think that I have ever felt more connected or resonated more with the content and energy of a conference before!”

“Thanks for the opportunity to be a part of something very special this past week."

"The best gov conference I have ever attended!"



This year's conference showcased leading public and private sector innovators who are inspiring an epic REVOLUTION in local government ( You can view the full conference program here.)!
  • Redefining how to legitimately attain economic development and measurable local job creation through the use of incubators and partnerships
  • Discover new models for achieving safer communities at lesser cost
  • Explore revenue generation strategies attainable to every local government that have to date remained hidden
  • Dive into shared service models emerging to help local government redefine service levels in key public-public and public-private partnerships
  • Understand and digest the complex role of local government in long-term "sustainability"
  • Advance past "performance measurement" to reveal a new component to priority based budgeting that includes "results measurement" strategies
  • Grasp how credit rating agencies assess municipal credit ratings and how the transparent concepts of fiscal health and priority based budgeting can assist in stabilizing and improving bond and credit ratings
  • Expose your organization to the hands-on tools attainable to your community to fulfill the promise of reinventing government
  • Bring to light how to harvest the skill sets of the next generation of emerging leaders
  • Immerse yourself in the implementation strategies, shared experiences and lessons learned of the nearly 70 communities who have successfully brought the full potential of Fiscal Health and Priority Based Budgeting to their organizations 
And this year, the CPBB also unveiled another NEW online tool! Many of you are already utilizing our web-based Fiscal Health Diagnostic Tool. We've seen its diagnostic approach to achieving Fiscal Health and the development and utilization of its unique and innovative “Fiscal Health Diagnostic Tool” profoundly change the conversation between local government managers, finance professionals and elected officials.   These are but a few of the powerful ways Fiscal Health has been used to help local government leaders achieve long-term financial sustainability.


For many of you, this has been a long time coming. For those of you who are new to Priority Based Budgeting, and even veteran implementers, think BIG! Your path to realizing the promise of aligning ALL of your community's resources with the results that matter most, through the unique lens and disruptive local government innovation of Priority Based Budgeting, is about to get far easier and even more effective!

The Priority Based Budgeting Resource Alignment Diagnostic Tool is going web-based! Priority Based Budgeting is a unique and innovative approach being used by local governments across the Country to match available resources with community priorities, provide information to elected officials that lead to better informed decisions, meaningfully engage citizens in the budgeting process and, finally, escape the traditional routine of basing "new" budgets on revisions to the "old" budget.  This holistic approach helps to provide elected officials and other decision-makers with a "new lens" through which to frame better-informed financial and budgeting decisions and helps ensure that a community is able to identify and preserve those programs and services that are most highly valued. 

We've already built the basic model, but have invited leading local government priority based budgeting implementers to assist us in crafting the final product. With the launch of this powerful new public finance technology tool, we now have 8 communities already signed up to define the future of on-line local government budgeting! If your community is interested in contributing to the final development of this disruptive new tool, and being among the first to utilize on-line priority based budgeting, contact us!




Finally, we could not host this event without our conference partners, sponsors, and exhibitors. Please be sure to check out the following organizations online to discover the amazing and creative ways these folks are contributing to the “New Wave” of Local Government!



We are so excited for what the future holds in this “New Wave” of local government! And feel so fortunate to contribute, with you, to the ongoing success of all local government communities!


Keep an eye on the CPBB blog for further updates. Sign-up for our social media pages so you stay connected with TEAM CPBB!

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on RSS

If you're thinking of jumping into the world of Fiscal Health and Wellness through Priority Based Budgeting we would certainly like to be part of your efforts! Contact us to schedule a free webinar and identify the best CPBB service option(s) to meet your organization's particular needs.

 




Tuesday, August 12, 2014

Lehigh County, PA Officials Briefed on "New Way" to Determine Budget Priorities


What we’ve brought to the party is essentially the state-of-the art method for diving into the budget and determining the objectives we want to hit.” - County Executive Thomas Muller





A new tool to help Lehigh County, PA prepare annual budgets was presented to county commissioners and administrators Monday evening inside the county government center in Allentown.

An analysis by the Colorado-based Center for Priority Based Budgeting – PBB -- has determined that 228 programs offered by the county, at an annual cost of $22.5 million, are the least relevant, based on several factors.

That’s 228 out of a total of 1,226 programs, for which the county is paying a total of more than $340 million this year.

Specific low priority programs were not revealed during the priority-based budgeting presentation by Chris Fabian, co-founder of the consulting firm, but will be made available in “a day or so” to county commissioners, who soon will begin wrestling with the 2015 budget.

County executive Thomas Muller said the priority-based budgeting report presented by Fabian can be used by commissioners in determining 2015 funding priorities. He plans to release the proposed 2015 budget during a news conference at 2 p.m. Aug. 28.

Seven of the nine county commissioners attended the PBB presentation.

The consultant, which is being paid about $45,000 for the study, has given the county an independent and objective guide that can be used to help determine budget priorities.

What we’ve brought to the party is essentially the state-of-the art method for diving into the budget and determining the objectives we want to hit,” said Muller.

A couple of commissioners expressed skepticism about the validity of some basic county objectives around which PBB determined priorities.

The consultant ranked all programs offered by the county into four different “quartiles.”
Most of the county’s budget is spent on programs that were ranked the highest, according to figures provided by Fabian:

• In the top ranking are 318 programs, which cost a total of $206.5 million.
• In the second quartile are 329 programs costing $57 million.
• In the third are 391 programs costing $54.6 million.
• And, in the lowest quartile are 228 programs costing $22.5 million.

Fabian said programs in that fourth quartile “are the least relevant to the results you want to achieve.”
He added: “It’s not to say these are irrelevant. They’re just less relevant. It’s a relative process. That’s what this whole thing is about.”

Muller said PBB was “quite impressed when they first shook out all the numbers as to how much fell into the top quartile and the second quartile and how little was down in the low quartiles.”

Fabian said the majority of the county’s resources should be in the top two priority areas, but also noted programs in the two lowest rankings should not just all be eliminated.

He explained municipalities that develop a pattern of annually decreasing “resource allocation to lower priority areas in favor of resource allocation to higher priority areas is the mark of progress in priority-based budgeting.”

Muller said the analytical tool developed by PBB for the county “is not designed to numerically get you an answer. It’s really a very strong starting point in the discussion. This is designed to encourage discussion and to focus discussion.”

After the meeting, Lisa Scheller, chairwoman of the commissioners, said the PBB report “is going to be a great tool for us to use to really start digging into the programs -- to see what is important for the county to be doing, and seeing if there are areas we should be putting more focus on as well as areas we should be putting less focus on.”

She said the PBB report “appears to be very thorough” and offers “plenty for us to work with right now. It’s going to take a lot of hours of analysis. But it starts to provide a broad framework for what is important for the county to be doing and how our resources should be allocated.”

Although the PBB study was not yet complete when county department heads submitted their 2015 budget needs to the administration, Muller said they were familiar with the PBB project and believes it helped them as they were preparing those budgets.

“I don’t think it would be fair to say it was used to the optimum this year,” said the executive, adding PBB’s final report will have more value to administrators in developing the 2016 budget.

Fabian also said the information he provided will have value in shaping county budgets in future years. He explained if a county department wants to add a new program, it can be plugged into the model PBB created to determine its value.

County spends less to operate

The consultant said 92.5 percent of the county budget is spent on community-oriented programs offered directly to citizens.

Fabian said 7.5 percent of Lehigh County’s budget is used for “governance,” meaning the cost to operate the government. “Seven-and-a-half percent is one of the lowest numbers we’ve seen.”

In other municipalities, he said, that number is closer to 20 percent. He indicated anything under 10 percent is considered very good.

Project underway for more than a year

“Muller called The PPB study “a fairly massive project” that has been going on for more than a year and a half.

“We had at least 40 of our senior managers and all our row officers very actively involved in the project from start to finish,’ he said.

The PBB project was started in January 2013 by former county executive William Hansell.
Muller indicated it faltered for a few months after Hansell resigned in May 2013 because of ill health. He died a month later.

“It was Bill’s dream to bring this to Lehigh County,” said Fabian.

Scheller noted Commissioner Vic Mazziotti has long advocated using priority-based budgeting in developing county budgets.

Fabian said some commissioners and other county elected officials participated in a simple exercise to determine which results were valid.

Muller said all elected county elected officials were invited to participate in helping to develop priorities in the PBB report, although he noted a number of county commissioners chose not to participate.

He said county department heads and other senior staff did participate.

The consultant has developed similar priority-based budgeting tools in more than 70 municipalities of varying sizes across the United States.

Calling it a proven methodology, Fabian said early communities that implemented PBB’s work have seen positive results.

He explained PBB focuses on the level of individual programs within each county department rather than comparing departments and deciding one department should have a higher priority than another.

Fabian said making across-the-board budget cuts, rather than implementing priority-based budgeting, “is somewhat arbitrary” and financial experts warn such cuts “are a weak way out” that can detrimentally impact municipal credit ratings and bond ratings.

Lehigh County’s 2014 budget totaled $360 million, said Muller, which includes paying down debt.

Click here to read the full article Lehigh County, PA Officials Briefed on "New Way" to Determine Budget Priorities


Keep an eye on the CPBB blog for further updates. Sign-up for our social media pages so you stay connected with TEAM CPBB!

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on RSS

If you're thinking of jumping into the world of Fiscal Health and Wellness through Priority Based Budgeting we would certainly like to be part of your efforts! Contact us to schedule a free webinar and identify the best CPBB service option(s) to meet your organization's particular needs.

 

Monday, August 4, 2014

Less than 24 hours until the CPBB "New Wave" of Local Government Conference!


Greetings from the Center for Priority Based Budgeting-

Thanks for your interest in CPBB and for registering for our 2014 “New Wave” of Local Government Conference. It is going to be a transformative event and we’re excited to have you be part of it!

We have several conference updates and reminders regarding the program, parking and new social mixer we’ve planned so please read the rest of this e-mail carefully.

We’ve made some slight adjustments to the conference program. You can view the updated conference program here. The current conference program is also available on our conference app. Find out how to access and utilize this interactive conference resource below.

Additionally, please remember to download our “New Wave” conference mobile app. Our app has all the details on speakers, session descriptions, sponsors, exhibitors, twitter handles and other social interaction features. Once downloaded the app will automatically update (as necessary). Download our conference mobile app today!

The CPBB and our local government peers and conference sponsors ELGL are thrilled to host the “New Wave” social mixer after the first day of the conference! This will be held at Katie Mullen’s Irish Restaurant located right next door to the Sheraton conference hotel on Tuesday, August 5th from 6-8 PM.

Appetizers will be provided and a cash bar will be available. All conference participants are invited to attend. We hope you come and take advantage of the opportunity to get to know this select group of innovative local government professionals!

In case you need a reminder, the conference hotel and conference location is the Sheraton Downtown Denver Hotel. It is located at 1550 Court Place downtown Denver right on the 16th Street Mall. The conference is on the Majestic Level of the hotel in the Majestic Ballroom.

We want this event to be highly interactive! We’ll be live tweeting and sending messages and updates through our conference app. Please use hashtag #cpbb14 when joining us in tweeting during every session!

Finally, we could not host this event without our conference partners, sponsors, exhibitors. Please be sure to check out the following online and be sure to stop by their exhibitor booths to discover the amazing and creative ways these folks are contributing to the “New Wave” of Local Government!


Thanks again and we’ll see you tomorrow!

Best- Erik and Team CPBB





Keep an eye on the CPBB blog for further updates. Sign-up for our social media pages so you stay connected with TEAM CPBB!

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on RSS

If you're thinking of jumping into the world of Fiscal Health and Wellness through Priority Based Budgeting we would certainly like to be part of your efforts! Contact us to schedule a free webinar and identify the best CPBB service option(s) to meet your organization's particular needs.

 

Center for Priority Based Budgeting 

 

The "New Wave" of Local Government 

 

2014 Annual Conference

 

Denver, Colorado | August 5 - 7, 2014 

 

Sheraton Denver Downtown Hotel



Sunday, July 20, 2014

The ELGL Guide to the CPBB "New Wave" of Local Government Conference!


Riding a “New Wave” at CPBB Conference

ELGL is headed to the Rocky Mountains for the CPBB Conference from August 5 to 7 in Denver, Colorado. We are co-sponsoring the conference with NLC, ICMA, AFI, TIG, SRB, and SAN. OK, maybe, we made up the last three acroymns.

The Center for Priority Based Budgeting's 2014 "New Wave" of Local Government Conference is the most relevant event of our time for leading local government innovators!



Center for Priority Based Budgeting 

 

The "New Wave" of Local Government 

 

2014 Annual Conference

 

Denver, Colorado | August 5 - 7, 2014 

 

Sheraton Denver Downtown Hotel 

 

Register Now and Book Your Hotel!


It’s important to admit ignorance first, which is why we enlisted a number of ELGL friends to plan our itinerary. We have compiled their suggestions into a mini-Yelp guide for Denver. Should you trust these “ELGL friends?” Who the heck are these ELGL friends? They are:

Chris Gallegos, Clackamas County Communications Specialist and former Dumb Friends League Public Relations Manager in Denver, CO

Heather Geyer, City of Wheat Ridge Administrative Services

Kirsten Silveira, City of Baltimore (MD) Budget Analyst and Colorado State University graduate

Kitty Wooley, Senior Fellows and Friends, Colorado Springs, CO

Nathan Mosley, City of Wheat Ridge, Assistant the City Manager

Paul Piccard, McAfee, Senior Director

Should you take their suggestions and get food poisoning, bit by a rabid liger, get concussed (our favorite word) by a foul ball, or dance too much at the Lady Gaga show, our ELGL friends are not liable.

ELGL Conference Notes

download

First of all, ELGL has you taken care of on Tuesday night. We are co-hosting with CPBB an event at one of the nearby watering holes. Details to be released this week.

Also, before you read the below suggestions and get all jacked up to incorporate them into your itinerary, you should note that ELGL is presenting a unique session on Wednesday, August 6 at 1:15 p.m. Our team will present a rapid-fire session on “40 Items for Improving Your Organization.” (Note: Not to worry, there is not an 100 slide PowerPoint accompanying our presentation, only bad jokes, tank tops, and nervous laughter.)

Downtown

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The Celtic Tavern - fun bar to hang out at.

The Corner Office – restaurant and martini bar

Euclid Hall – American tavern focuses on high quality and innovative pub food from around the world including housemade sausages, po’ boys, poutine and schnitzels. An extensive beer selection and creative cocktails drive the beverage program.

Falling Rock Tap House - beer lover’s paradise, with a revolving door of beers arranged by region and weight.

Great Divide Brewery (2201 Arapahoe St, Denver, CO 80205) - They are all about the Denver brew!

Katie Mullen’s Irish Pub - across from the hotel, fun atmosphere.

The Park Avenue Grill - established in 1988 as a traditional San Francisco style neighborhood restaurant. The restaurant décor is reminiscent of the supper clubs of the 30’s and 40’s with its impressive vintage bar and crisp white tablecloths.

Snooze – yummy breakfast and bruch! Usually a wait so be prepared for one.

The Source an artisan food market, this is a must see! Cab ride away from the hotel.  Acorn has awesome food! ***You will probably need reservations for dinner.

Tamayo – upscale Mexican restaurant

Wynkoop (1634 18th St, Denver, CO 80202) The brewery opened by current CO governor John Hickenlooper when he was just a local business guy. Awesome local brews, as well.

Yard House - great bar near the Sheridan.

Click here to read the full article on The ELGL YELP Guide to the CPBB Conference