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HomeMy WebLinkAbout21-109 - Bill Cushman - Financial Analysis and Modeling Services: Fire Advisory Task ForceCity of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number:21-109(a) Council Approval N/A CONTRACT FOR SERVICES Amendment #1 Between the City of Tukwila and Bill Cushman That portion of Contract No. 21-109 between the City of Tukwila and Bill Cushman is hereby amended as follows: Section 2: Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A" attached hereto, including the provision of all labor, materials, equipment and supplies. Section 3: Duration of Agreement; Time for Performance. This Agreement shall be in full force and effect for a period commencing upon execution and ending December 31, 2022, unless sooner terminated under the provisions hereinafter specified. Work under this Agreement shall commence upon written notice by the City to the Consultant to proceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement, as described in Exhibit "A", no later than December 31, 2022 unless an extension of such time is granted in writing by the City. All other provisions of the contract shall remain in full force and effect. Dated this 10th day of December , 2021. CITY OF TUKWILA CONTRACTOR Allan Ekberg, Mayor 12/10/2021 Ju,1eam, Cuahiieut Key: OtlaceeeeceSac.1126072,1SUC751,63Y Bill Cushman, Consultant ATTEST/AUTHENTICATED APPROVED AS TO FORM Key: c129,130,2,19.1,1601 cc1139Secaee9c15 Christy O'Flaherty, MMC, City Clerk Office of the City Attorney Exhibit A SCOPE OF WORK: The scope of work provided by the Consultant shall consist of various financial models developed to show the organizational and financial status of the Tukwila Fire Department beginning with fiscal year 2021 and ending with fiscal year 2027. The models will assist, in part, with the analysis of determining the future status of Tukwila Fire as to its continuation as a Department of the City or as it may merge, consolidate, or annex into another Fire Department or into a newly formed Regional Fire Authority or into an existing Regional Fire Authority. The analysis shall be developed as a comprehensive series of linked spreadsheets that display available sources and amounts of revenue in support of the TFD, along with anticipated operational and capital expenditures over a period of seven years, 2021 through 2027 inclusive. Revenues and expenditures may be derived from Tukwila general fund revenues or from RFA sanctioned taxes and fees and benefit charges, while expenditures will be shown as being budgeted and administered by the governing and administrative bodies overseeing the operations of the TFD in its current form or as a member of another fire agency. It is the intent of the City, in the form of a task force, to hold a series of meetings with stakeholders and interested observers for the purpose of reviewing the financial analysis represented in these models to assist in the recommendations as to the future status of the TFD. As such, the models and related documentation will be produced in conjunction with the pace of the meetings. The models will be continuously updated as required, and delivered in response to, and in support of, information required by the task force to further their discussions between June 2021 and December 2022, concerning the status of the TFD. The models will be developed in spreadsheet format and transmitted electronically to the City where they may be reproduced by printing or displayed on computer screens or projector screens, or cut and pasted into PowerPoint presentations, for the purpose of conveying the contents to viewers during task force discussions and to invite feedback from review sessions. The spreadsheet models will also be conveyed to the City and its task force incorporated into a written narrative which describes the results of the analysis represented in each spreadsheet. The purpose of the initial models is to obtain a starting basis from which to compare alternative propositions to the status quo. By having a detailed representation of the stand- alone cost of the TFD over seven years, the financial requirements of counter proposals may be readily ascertained. As the task force entertains alternative proposals, additional models may be designed and developed to analyze the impact on the final disposition of the TFD. Bill Cushman Consulting Services Amendment #1 Page 2 of 3 The initial financial analysis will consist of the following models: 1. Executive Summary: This model will extract from the entire document a summary of the key points and highlights that display the most significant items which will be of particular importance to the policy reviewers and decision makers. These highlights will represent the most important influences in shaping the overall trends exhibited over the 2021-2027 timeline. 2. Resources: The resources model will capture all forms of revenue, fees, charges, grants, and other contributions in support of public safety services provided by the TFD. In support of the revenue analysis will be a forecasting models of Tukwila assessed values based on historical trends and the resulting general fund property taxes and EMS property taxes as appropriate. 3. Program Expenses: The Program Expenses model will detail the cost of each program within the TFD. 4. Apparatus Replacement: The Apparatus Replacement model will display every piece of rolling stock in the TFD fleet along with its projected replacement cost at the end of its service life over a period of twenty years. The model allows the insertion at any time over the twenty years of new apparatus not within the current fleet. 5. Equipment Replacement: The Equipment replacement model will display all major pieces of equipment in the TFD inventory along with its replacement cost at the end of its service life over a period of ten years. The model allows the insertion at any time over the next ten years of new equipment not within the current inventory. 6. Facility Projects: The Facilities Project model captures a list of projects required to improve, or remodel any of the facilities owned by the TFD ranging from minor annual maintenance expenses to major upgrades. Options are offered to finance the projects from cash reserves, to the issuance of councilmanic debt, or to pursue voter - approved bonds. 7. Employee Database: The Employee Database will capture the total cost of compensation (TCC) as currently organized and allow for the re -configuration of various staffing deployments at any time over seven years. Bill Cushman Consulting Services Amendment #1 Page 3 of 3 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: 21-109 Council Approval N/A PROFESSIONAL SERVICES AGREEMENT (Includes consultants, architects, engineers, accountants, and other professional services) THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter referred to as "the City", and Bill Cushman, hereinafter referred to as "the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the City to perform Financial Analysis and Modeling services in connection with the project titled Fire Advisory Task Force. 2. Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A" attached hereto, including the provision of all labor, materials, equipment and supplies. 3. Duration of Agreement; Time for Performance. This Agreement shall be in full force and effect for a period commencing upon execution and ending December 31, 2021, unless sooner terminated under the provisions hereinafter specified. Work under this Agreement shall commence upon written notice by the City to the Consultant to proceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement, as described in Exhibit"A", no later than December3l, 2021 unless an extension of such time is granted in writing by the City. 4. Payment. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement as follows: A. Payment for the work provided by the Consultant shall be made at the rate of $175.00 per hour provided that the total amount of payment to the Consultant shall not exceed $35,000.00 without express written modification of the Agreement signed by the City. B. The Consultant may submit vouchers to the City once per month during the progress of the work for partial payment for that portion of the project completed to date. Such vouchers will be checked by the City and, upon approval thereof, payment shall be made to the Consultant in the amount approved. C. Final payment of any balance due the Consultant of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. D. Payment as provided in this section shall be full compensation for work performed, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. E. The Consultant's records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City and the state of Washington for a period of three (3) years after final payments. Copies shall be made available upon request. 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The specific models as described in Exhibit "A" will be transmitted to Tukwila in Excel text -based formats and as imported "pictures" embedded into a narrative report describing the results of the analysis as evidenced by the models. The City may copy, reproduce, and distribute the models and the reports for further review discussion as required. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Consultant's endeavors. The Consultant shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. 6. Compliance with Laws. The Consultant shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services rendered under this Agreement. 7. Indemnification. The Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 8. Insurance. The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Amounts and Scope of Insurance. Consultant shall obtain Auto Liability insurance with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile Liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 9. Independent Contractor. The Consultant and the City agree that the Consultant is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither the Consultant nor any employee of the Consultant shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or Bill Cushman Consulting Services Page 2 any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warrant, the City shall have the right to annul this contract without liability, or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 11. Discrimination Prohibited. Contractor, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 12. Assignment. The Consultant shall not sublet or assign any of the services covered by this Agreement without the express written consent of the City. 13. Non -Waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 14. Termination. A. The City reserves the right to terminate this Agreement at any time by giving ten (10) days written notice to the Consultant. B. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this Agreement between surviving members of the Consultant and the City, if the City so chooses. 15. Applicable Law; Venue; Attorney's Fees. This Agreement shall be subject to, and the Consultant shall at all times comply with, all applicable federal, state and local laws, regulations, and rules, including the provisions of the City of Tukwila Municipal Code and ordinances of the City of Tukwila. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. Venue for any action arising from or related to this Agreement shall be exclusively in King County Superior Court. 16. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 17. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to Consultant shall be sent to the following address: Bill Cushman 4948 Cushman Road NE Olympia, WA 98506 Bill Cushman Consulting Services Page 3 18. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. DATED this 21st __ day of July 2021. CITY OF TUKWILA C7/(Leu 6A-Ge/cg Key: a5,65,1c1,10,17,11,25sslebflsSIScS., CT Allan Ekberg, Mayor 07/21/2021 CONSULTANT BiIIIIIIIlU Cus man, C Attest/Authenticated: Approved as to Form: City Clerk, Christy O'Flaherty Office of the City Attorney Bill Cushman Consulting Services Page 4 Exhibit A SCOPE OF WORK: The scope of work provided by the Consultant shall consist of various financial models developed to show the organizational and financial status of the Tukwila Fire Department beginning with fiscal year 2021 and ending with fiscal year 2027. The models will assist, in part, with the analysis of determining the future status of Tukwila Fire as to its continuation as a Department of the City or as it may merge, consolidate, or annex into another Fire Department or into a newly formed Regional Fire Authority or into an existing Regional Fire Authority. The analysis shall be developed as a comprehensive series of linked spreadsheets that display available sources and amounts of revenue in support of the TFD, along with anticipated operational and capital expenditures over a period of seven years, 2021 through 2027 inclusive. Revenues and expenditures may be derived from Tukwila general fund revenues or from RFA sanctioned taxes and fees and benefit charges, while expenditures will be shown as being budgeted and administered by the governing and administrative bodies overseeing the operations of the TFD in its current form or as a member of another fire agency. It is the intent of the City, in the form of a task force, to hold a series of meetings with stakeholders and interested observers for the purpose of reviewing the financial analysis represented in these models to assist in the recommendations as to the future status of the TFD. As such, the models and related documentation will be produced in conjunction with the pace of the meetings. The models will be continuously updated as required, and delivered in response to, and in support of, information required by the task force to further their discussions between June and December, 2021, concerning the status of the TFD. The models will be developed in spreadsheet format and transmitted electronically to the City where they may be reproduced by printing or displayed on computer screens or projector screens, or cut and pasted into PowerPoint presentations, for the purpose of conveying the contents to viewers during task force discussions and to invite feedback from review sessions. The spreadsheet models will also be conveyed to the City and its task force incorporated into a written narrative which describes the results of the analysis represented in each spreadsheet. The purpose of the initial models is to obtain a starting basis from which to compare alternative propositions to the status quo. By having a detailed representation of the stand-alone cost of the TFD over seven years, the financial requirements of counter proposals may be readily ascertained. As the task force entertains alternative proposals, additional models may be designed and developed to analyze the impact on the final disposition of the TFD. The initial financial analysis will consist of the following models: 1. Executive Summary: This model will extract from the entire document a summary of the key points and highlights that display the most significant items which will be of particular importance to the policy reviewers and decision makers. These highlights will represent the most important influences in shaping the overall trends exhibited over the 2021-2027 timeline. 2. Resources: The resources model will capture all forms of revenue, fees, charges, grants, and other contributions in support of public safety services provided by the TFD. In support of the revenue analysis will be a forecasting models of Tukwila assessed values based on historical trends and the resulting general fund property taxes and EMS property taxes as appropriate. 3. Program Expenses: The Program Expenses model will detail the cost of each program within the TFD. Bill Cushman Consulting Services Page 5 Exhibit A Continued 4. Apparatus Replacement: The Apparatus Replacement model will display every piece of rolling stock in the TFD fleet along with its projected replacement cost at the end of its service life over a period of twenty years. The model allows the insertion at any time over the twenty years of new apparatus not within the current fleet. 5. Equipment Replacement: The Equipment replacement model will display all major pieces of equipment in the TFD inventory along with its replacement cost at the end of its service life over a period of ten years. The model allows the insertion at any time over the next ten years of new equipment not within the current inventory. 6. Facility Projects: The Facilities Project model captures a list of projects required to improve, or remodel any of the facilities owned by the TFD ranging from minor annual maintenance expenses to major upgrades. Options are offered to finance the projects from cash reserves, to the issuance of councilmanic debt, or to pursue voter -approved bonds. 7. Employee Database: The Employee Database will capture the total cost of compensation (TCC) as currently organized and allow for the re -configuration of various staffing deployments at any time over seven years. Bill Cushman Consulting Services Page 6