HomeMy WebLinkAboutFS 2012-04-03 COMPLETE AGENDA PACKETCity of Tukwila
Distribution:
D. Quinn
Finance and Safety
D. Robertson
K. Kruller
Committee
V. Seal
Mayor Haggerton
D. Cline
O De'Sean Quinn, Chair
P. McCarthy
O Dennis Robertson
C. o'Raherty
S. Kerslake
O Kate Kruller
K. Matej
J. Trantina
AGENDA
TUESDAY, APRIL 3 1 2012
CONFERENCE ROOM #3, 5:15 PM
Item Recommended Action Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. Consultant agreement for the City's strategic plan. a. Forward to 4/9 C.O.W. Pg.1
Joyce Trantina, Mayors Office Executive Assistant and 4/16 Regular Mtg.
b. Self- insured healthcare plan contingency reserve. b. Committee consideration. Pg.21
Peggy McCarthy, Finance Director
c. Increase in 2011 indirect cost allocation. c. Information only. Pg.31
Peggy McCarthy, Finance Director
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Tuesday, Apr# 17, 2012
S The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206 433 -1800 or TukwilaCityClerk @TukwilaWA.gov) for assistance.
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City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
FINANCE AND SAFETY COMMITTEE
FROM: Joyce Trantina, Mayor's Office
DATE: March 28, 2012
SUBJECT: Strategic Planning Consulting Agreement
ISSUE
The City is recommending contracting with Berk Consulting to facilitate a comprehensive City-
wide strategic planning process in 2012. This was identified as a key priority of the Mayor and
the City Council for 2012 and is funded using currently budgeted, but unspent, 2011 funds from
the Mayor's office.
BACKGROUND
Strategic planning determines where an organization is going over 5 -10 years or more, and how
it's going to get there. A Strategic Planning process will help us develop a common
understanding, throughout the community, of what we want to achieve the changes that have
occurred in the past, and what's coming in the future and help utilize existing and future
resources to meet the greatest needs in the community. The process itself will encourage
engagement from our residents, businesses and employees, with a particular emphasis on
reaching out to our diverse population. When complete, the Plan will serve as a way to
organize and prioritize City initiatives and resources, with specific performance measures so we
will know when we "get there." The City has undergone many changes since its last visioning
efforts of the early 1990's, driven primarily as a result of numerous annexations and geographic
growth.
While much of this work will be done by City staff, the development of a successful Strategic
Plan requires the expertise of people who are knowledgeable in the field and have a proven
track record for success. In an effort to identify a qualified group of organizations who could
meet this need, the City issued a Request for Proposal on January 31, 2012.
Berk Consulting was chosen after an extensive review of the original 17 proposals. The finalists
were reviewed on March 8, 2012 by an interview team consisting of Council President Verna
Seal, Councilmembers Quinn and Hougardy, Mayor Haggerton, City Administrator David Cline,
Police Chief Mike Villa, Public Works Director Bob Giberson, Community Development Director
Jack Pace, Human Services Manager Evelyn Boykan, and Executive Assistant Joyce Trantina.
Berk Consulting was chosen based on the proposals submitted, review of similar Strategic Plan
documents (samples of similar work), formal presentations to the interview team, discussions
with other clients to assess customer satisfaction /results, and an analysis of how the work
teams might "fit" with the City's various stakeholder groups.
INFORMATIONAL MEMO
Page 2
DISCUSSION
The Strategic Planning work will be done in three phases over the course of the next 8 -9
months and will utilize multiple outreach methods designed to engage a broad range of
stakeholders, the public and employees:
Phase 1 Information Gatherina and Communitv Visioning: This phase will involve a
community assessment consisting of public meetings, focus group sessions, and other
outreach forums. Stakeholder and staff work groups will be identified and organized. A
formal community, business, resident and employee outreach process will be conducted.
Data collection and analysis will be reviewed and summarized, evaluating the
community's resources, strengths and assets.
Phase 2 Develooina Draft Plan: This phase will outline options for the strategic plan, and
create an implementation plan and schedule. This work will include public involvement
that engages the community in the strategic planning process, and a Public Review Draft
will be prepared and reviewed.
Phase 3 Test and Develop Final Plan: This phase will include feedback from the public
and staff on the Draft Plan, analysis of input from the various sources (community open
house /online survey, Stakeholder Committee, Staff Work Group meetings, etc.) and
development of the Final Strategic Plan.
The attached scope of services includes a more extensive community and staff outreach
component than in the original proposal. Through the review process and in discussions with
the Mayor, City Council, City staff members and the community, it became apparent that one of
the most valuable elements of this effort will be a comprehensive outreach to our diverse
population.
The contract also reflects an expanded effort to reach every employee in the City by providing
an anonymous survey for City staff to contribute their ideas early in the process. Our front -line
employees are the people serving our community on a daily basis, and can provide valuable
insights (what's working, where can we improve, etc.) into this process.
The cost of the project ($119,449) and a 10% contingency, for a total "not to exceed" cost of
$131,394) will be funded by the Mayor's office 2011 budget.
RECOMMENDATION
The Council is being asked to approve the agreement and consider this item at the April 9, 2012
Committee of the Whole meeting and subsequent April 16, 2012 Regular Meeting.
ATTACHMENTS
Consulting Agreement w /Exhibits
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CONSULTANT AGREEMENT FOR
STRATEGIC PLANNING (CONSULTING) SERVICES
THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter referred
to as "the City and Berk Consulting, 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 consulting services
services in connection with the project titled Strategic Planning.
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, 2012 unless sooner
terminated under the provisions hereinafter specified. Work under this Agreement shall
commence upon giving of 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 no later than December 31, 2012 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 as provided on Exhibit
"B" attached hereto, provided that the total amount of payment to the Consultant shall not
exceed $117,863 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 is 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.
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E. The Consultant's records and accounts pertaining to this Agreement are to be kept
available for inspection by representatives of the City and state 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 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 to be rendered under this Agreement.
7. Indemnification. The Consultant shall indemnify, defend and hold harmless the City, its
officers, agents and employees, from and against any and all claims, losses or liability,
including attorney's fees, arising from injury or death to persons or damage to property
occasioned by any act, omission or failure of the Consultant, its officers, agents and
employees, in performing the work required by this Agreement. With respect to the perform-
ance of this Agreement and as to claims against the City, its officers, agents and employees,
the Consultant expressly waives its immunity under Title 51 of the Revised Code of
Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the
obligation to indemnify, defend and hold harmless provided for in this paragraph extends to
any claim brought by or on behalf of any employee of the Consultant. This waiver is mutually
negotiated by the parties. This paragraph shall not apply to any damage resulting from the
sole negligence of the City, its agents and employees. To the extent any of the damages
referenced by this paragraph were caused by or resulted from the concurrent negligence of the
City, its agents or employees, this obligation to indemnify, defend and hold harmless is valid
and enforceable only to the extent of the negligence of the Consultant, its officers, agents and
employees.
8. Insurance. The Consultant shall secure and maintain in force throughout the duration of this
contract comprehensive general liability insurance, with a minimum coverage of $500,000 per
occurrence and $1,000,000 aggregate for personal injury; and $500,000 per occurrence/
aggregate for property damage, and professional liability insurance in the amount of
$1,000,000.
Said general liability policy shall name the City of Tukwila as an additional named insured
and shall include a provision prohibiting cancellation of said policy except upon thirty (30)
days prior written notice to the City. Certificates of coverage as required by this section shall
be delivered to the City within fifteen (15) days of execution of this Agreement.
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9. Independent Contractor. The Consultant and the City agree that the Consultant is an inde-
pendent 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 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. The Consultant, with regard to the work performed by it under
this Agreement, will not discriminate on the grounds of race, color, national origin, religion,
creed, age, sex or the presence of any physical or sensory handicap 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.
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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 the
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. Entire Agreement. This Agreement contains the entire agreement between the parties, and
no other agreements, oral or otherwise, regarding the subject matter of this Agreement shall be
deemed to exist or bind either of the parties. Either party may request changes to the
Agreement. Changes which are mutually agreed upon shall be incorporated by written
amendments to this Agreement.
17. 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.
18. 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:
Berk Consulting
Attn: Brian Murphy
2025 First Ave. Suite 800
Seattle, WA 98121
19. 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.
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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
CITY OF TUKWILA
Mayor
Attest/Authenticated:
City Clerk
day of
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CONSULTANT
By:
Printed Name:
Title:
Approved as to Form:
Office of the City Attorney
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Exhibit A
CITY OF TUKWILA STRATEGIC PLANNING
Scope of Work 3/27/12
Our strategic planning approach focuses on aspirational and unifying visioning, market feasibility, and fiscal
sustainability. The result is a Vision and Strategic Plan that is compelling and resonant enough to unite the
community and practical enough to be realized.
To achieve this outcome, we will support informed consideration of policy issues by policy makers, planning
committees, and the public. Complex choices need to be made accessible to the audiences involved in developing
a Strategic Pan. The result is agreement and alignment around the community we are now, a Vision of the
community we want to be in the future, and the timeline and actions required to realize that Vision.
The Tukwila strategic planning process will be guided by a Stakeholder Committee, which will include the Mayor
and one Councilmember along with others. The ultimate responsibility of the Stakeholder Committee is to forward
a Recommended Draft Plan to the City Council for review and consideration for adoption. A Staff Work Group
comprised of representatives from key departments and divisions will meet prior to each Stakeholder Committee
to review materials and provide additional input for the Stakeholder Committee to consider.
Opportunities will be provided for community members and City staff to provide input early in the planning
process and in review of a Draft Plan. The City's intention is to touch and gather input every resident, business
owner, and employee at least once in the process, and to gather input from every staff member at least once.
Visi Phase 1: Information Gathering Community
Task 1: Ongoing Project Management Coordination.
Over the course of the project, BERK's Project Manager and other key staff will coordinate project details with a
core City Project Management team. This coordination will include emails with draft materials for review and
regular phone conversations.
Task 2: Kickoff Meeting &Information Collection.
Task 2a. Kickoff Meeting Community Outreach Plan Development
The BERK project team will come to the City for a kickoff meeting with key staff. During this discussion, we will
review the desired outcomes of the project and finalize our approach. We will also:
Discuss the relationship of this project to other current City planning and budgeting efforts.
Conduct an initial SWOT, with City staff identifying current issues, strengths, challenges, and opportunities.
Discuss formation and membership of the Stakeholder Committee. City staff will lead the recruitment effort,
with the benefit of input from BERK staff.
Review and revise plans to engage community members and City staff in the planning project, clarifying the
responsibilities of BERK and the City. The Kickoff Meeting may be followed by other collaborative strategy
sessions with City Staff to finalize a Community Outreach Plan.
Determine how to best communicate and work together, with the understanding that staff are busy and
juggling multiple responsibilities.
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City of Tukwila Strategic Planning
Scope of Work 3/27/12
Based on these discussions, BERK will prepare a final project schedule and a Community Outreach Plan.
Task 2b. Staff Work Group Meeting #1
Introductions, role and charge of the Work Group, and agreement on operating principles. Discussion of the
group's role as Ambassadors to rest of the City organization to spread the word and encourage broad
participation. Group visioning and SWOT brainstorming.
Task 2c. Stakeholder Committee Meeting fill.
Introductions, role and charge of the Committee, and agreement on operating principles. Discussion of the
group's role as Ambassadors to the community to spread the word and encourage broad participation. Group
visioning and SWOT brainstorming.
Task 3: Project Profile Raising
BERK will work with the City to develop a profile raising plan for the project. We will support City staff, who will
lead announcing the project and developing a project website. Project communications will focus on explaining
how the visioning process will guide City efforts and investments that will have real impact on individuals, families,
and business and property owners. Part of the plan will also identify the strategies for keeping stakeholders
engaged throughout the project and allow for targeted follow up in future phases of the work.
Task 3a. About the Strategic Plan Brochure Text for Website
BERK will develop an About the Strategic Plan brochure for the website and distribution at City Hall, libraries,
businesses, and community centers as well as concise text to promote the project via the City's Twitter account
and other social media.
,Task 4: Data Collection and Analysis
Task 4a. Stakeholder Interviews
City Leaders. We will interview the Mayor and Council members early in the project to understand perspectives
and dynamics, and their aspirations for the future. During interviews, we will discuss the relevancy of the current
Mission Statement and how the City's key planning documents should inform the Strategic Plan.
Community Leaders. Working with City staff, we will identify representative community and business leaders and
groups that the City would like to hear from. We will conduct 10 phone interviews on the City's challenges and
opportunities and vision for the future. We will also ask interviewees to identify existing or potential events that
could serve as forums to engage the community in visioning that they could sponsor and /or host, along with their
thoughts on the engagement strategy.
Task 4b. Online Staff Survey
We will administer a concise, anonymous survey for City staff to contribute their ideas early in the planning
process, during the issue identification phase. Staff input will be sought on their Vision for the future of the
community, the role of the City as an organization, and key issues to be addressed in the strategic plan.
Task 4c. Demographic, Market, and Fiscal Analysis
BERK staff will create a concise series of exhibits that present an easily understandable overview of the City's
current demographic, employment and retail makeup, as well as trends over time. As part of an external scan,
BERK will conduct research and potentially conduct a few interviews on the regional and national trends that could
affect Tukwila. For example, changes in regional housing supply or the pay and location of newly created jobs
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City of Tukwila Strategic Planning
Scope of Work 3/27/12
could have an impact on the residential make -up of Tukwila. We will also analyze the City's baseline fiscal outlook,
taking into consideration the effects of the economic recession, recent development, and the political and
economic context of each primary revenue stream. This information can be used in discussions with the City
Council and Stakeholder Committee, and available at community meetings and on the website.
Task 4d. Review of City Documents
BERK will review the City's current Comprehensive Plan, Capital Improvement Program, and other key plans and
policies. The outcomes of the strategic planning process will inform adjustments to ensure the City's full suite of
plans and policies are properly aligned.
Task4e. Development of Situation Assessment
Task 4 will generate input from a variety of sources in a range of formats, including data, narrative reports, and
visual forms, including pictures, photographs, and sketches. We will compile and synthesize this quantitative and
qualitative input in a concise Situation Assessment that summarizes key trends, highlights important themes, and
identifies points of agreement and potential conflict or tension.
Task 4f. Staff Work Group Meetings #2 and #3
Staff Work Group Meeting #2. Review public input, additional analytics, and draft materials for Stakeholder
Committee Meeting #2.
Staff Work Group Meeting #3. Discuss the full Situation Assessment and key topics to be addressed in the
Strategic Plan. Review draft materials for Stakeholder Committee Meeting #3.
Task 4g. Stakeholder Committee Group Meetings #2 and #3
Stakeholder Committee Meeting #2. Discuss public input and additional analytic inputs.
Stakeholder Committee Meeting #3. Discuss the full Situation Assessment and key topics to be addressed in
the Strategic Plan.
Task 4h. City Council Presentation #1
Presentation of Situation Assessment and identification of key issues to be addressed in the development of
the strategic plan.
Task 5: Community Visioning
Our goal with the Visioning and the Strategic Planning processes is to engage Tukwila's whole community in
inspiring and unifying explorations of the City's best future.
A community vision is a powerful thing. A successful vision establishes an aspirational and optimistic tone and
provides direction, aligns expectations, and helps to prioritize investments and actions. It reflects the diversity of
the community while at the same time asserting a sense of common purpose. It is flexible and broad enough to
apply to future opportunities and challenges, yet specific and tangible enough to provide real guidance. It is much
more than a "feel good" statement: it establishes preferences and boundaries that will guide future decision
making.
Throughout the Visioning process, key inputs from Task 4 will be communicated in an accessible format that will
facilitate informed Visioning, where participants can express their aspirations with an understanding of potential
choices and tradeoffs. Potential topics to explore with participants include:
What do you want Tukwila to be like in the future?
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City of Tukwila Strategic Planning
Scope of Work 3/27/12
What are the community's assets? What do you love about living or working here?
What are its challenges?
What do you want more of? Less of?
What is most important, important, and less important?
It is important to communicate why community visioning and strategic planning matters, making the connection to
on- the ground changes that will affect the lives and well -being of individuals, families, businesses. At the same
time, it is critical that community outreach be accessible and engaging.
Tukwila's diverse demographics will guide our community outreach strategy, ensuring we gain input from a
representative sample of Tukwila's population. We will collaborate with the City and others to employ a
multi pronged approach to engage a broad group of participants in planning for Tukwila's future. Our outreach will
rely on a three -fold strategy as described below.
Task So. Invite the Community In: Community Open House #1
The traditional form of community engagement is the City- hosted town hall meeting that is noticed broadly and
attended by a share of the community. While these meetings are an important part of the outreach strategy, they
will not reach the entire community. BERK will collaborate with City staff to design and implement a dynamic
community meeting. BERK will lead materials development, facilitation and the creation of summary documents,
while City staff will lead event promotion, logistics, and hosting.
Task 5b. Go out in the Community: Collaborative Outreach with Community Partners
Tukwila has a wealth of existing formal and informal groups that come together to meet, socialize, and learn from
one another. We will collaborate with City and community leaders to identify opportunities for engagement where
we can interact with community members on their own terms. Some events might be suitable for visioning, while
others might be used to raise awareness of the effort and direct residents to in- person and online opportunities to
provide input.
BERK will work closely with City staff to develop a plan to connect with community -based organizations active in
Tukwila. A particular effort will be made to develop approaches that will reach non English speaking residents,
such as attending partner- hosted events and meetings and going to community hubs such as places of worship,
community centers, and other places people congregate. The project's Community Outreach Plan developed
collaboratively with City staff in Task 2a will determine how best to use project resources to engage Tukwila's
non English speaking residential population, addressing both the type of input to be gathered and the specific
tools and methodologies for obtaining that input.
BERK will be responsible for analysis of input received, integrating community input with other project inputs. The
tasks below will be shared among City staff, BERK staff, and possible other contractors:
Material design and development
Translation and interpretation into languages other than English
Communication and coordination with individual community partners
Direct engagement with target population or training of community partner
Compilation of input received
$10,000 has been allocated for these purposes and may be used in any of the following ways at the direction of the
City's Project Manager:
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City of Tukwila Strategic Planning
Scope of Work 3/27/12
BERK staff may utilize all or a portion of these resources
BERK or City staff may use a portion of these resources for translation and interpretation services provided by
a to -be- determined contractor(s)
The City may separately contract another provider for significant public engagement assistance, drawing on
the language and cultural skills of a to -be- determined contractor(s). In this case, BERK's budget will be reduced
by the amount paid to the contractor.
Task 5c. Engage Virtually: Project Website and Online Community Survey
In addition to using traditional media to raise awareness of the visioning effort and promote opportunities for
residents to share their input, the Internet and social media can directly engage residents allowing for interactive
and creative online input. It will be important to share timely information on the website, and to use other tools
that allow stakeholders to post ideas, photos, and videos.
BERK will support City staff in developing materials for the City's website. BERK will lead development,
administration, and analysis of an online survey open to residents, business owners, and individuals who work or
shop in Tukwila. City staff or contractors will be responsible for translating the survey into languages other than
English, as well as any long -form (narrative) responses.
From Input to Vision. BERK will take an active role in the public engagement design and implementation, as well as
in leading the Stakeholder Committee through the crafting of a draft Vision. Our role is to facilitate productive
conversations and do the hard work between Staff Work Group and Stakeholder Committee meetings of analyzing
and summarizing what we've heard and bringing forward starting points, options for consideration, and revised
drafts.
Devel Draft Plan
;Task 6: Draft Strategic Plan Development
Task 6a. Staff Engagement Meetings
At this point in the process, it will be important to engage all City staff in reviewing input gathered to date, helping
to identify potential strategies, and contributing suggestions for the City's Vision, Mission, and Values statements.
BERK will collaborate with City staff to design and administer three meetings, each engaging about a third of the
City's total staff. BERK will lead the meeting design, materials development, facilitation, and meeting summary,
while the City will host the meetings and be responsible for associated logistics.
Task 6b. Development of Strategic Options Summary
Based on the findings and discussions to date, we will develop a Strategic Options Summary for staff and
Stakeholder Committee discussion, serving as a preliminary outline of the strategic plan. The document will
organize identified needs, challenges, and opportunities into major themes, and translate the themes into draft
Goals. These Goals will then be developed iteratively by the Stakeholder Committee (with the benefit of input from
the Staff Work Group), with supporting Action Strategies that describe how, when, and with what resources the
Goals will be achieved.
Task 6c. Staff Work Group Meetings 4 and #5
Staff Work Group Meeting #4. Review the Strategic Options Summary and draft materials for Stakeholder
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City of Tukwila Strategic Planning
Scope of Work 3/27/12
Committee meeting #4.
Staff Work Group Meeting #5. Review the Public Review Draft and draft materials for Stakeholder Committee
meeting #5.
Task 6d. Stakeholder Committee Meetings #4 and #5
The Stakeholder Committee will have the opportunity to provide input on each Goal, as well as their preferences
for specific actions in the short medium and long -term. Focused phases may be used to identify priority areas of
focus over time. For example, if a two -year phase of investment in the City's economic base is agreed to be
followed by a phase of investment in quality of life enhancements, this clarity of expectations will alleviate
uncertainty among policy makers and residents alike.
Stakeholder Committee Meeting #4. Review the Strategic Options Summary and advance development of the
strategic plan.
Stakeholder Committee Meeting #5. Review and refine Public Review Draft; prepare for public outreach.
Task 6e. Development of Public Review Draft
BERK will develop an attractively laid out Public Review Draft for review by the Staff Work Group and Stakeholder
Committee. Revisions will be made based on input from these groups, and a final Public Review Draft completed.
Task 6f. City Council Presentation #3
Update on progress to date and preview of Public Review Draft.
Phase III: Test Develop Final Plan
Task 7: Comment on Public Review Draft
It is important to allow members of the public and City staff to review and provide input on a Public Review Draft
of the Strategic Plan. This review process is important to confirm that community and staff input has been
interpreted correctly and to explore community preferences for prioritization, phasing, and key tradeoffs.
Task 7a. Community Open House #2. A second Community Open House is an efficient way to reach some
members of the Tukwila population. Format and roles will be similar to the first event, described on page 4.
Task 7b. Collaborative Outreach with Community Partners, Round 2. Additional outreach via selected community
partners will complement the Community Open House and reach a more diverse segment of the population.
Format and roles will be similar to the first round, described on page 4.
Task 7c. Web -based Feedback on Draft Plan for Public and City Staff. An online survey or series of comment fields
will be used to gather public and staff input on the draft plan. BERK will design the instrument and analyze the
results.
Task 7d. Staff Work Group Meetings #6 and #7
Staff Work Group Meeting #6. Review public feedback and draft materials for Stakeholder Committee
meeting #6.
Staff Work Group Meeting V. Review the Recommended Draft Plan and draft materials for Stakeholder
Committee meeting #7.
6
14
City of Tukwila Strategic Planning
Scope of Work 3/27/12
Task 7e. Stakeholder Committee Meetings #6 and #7
Stakeholder Committee Meeting #6. Review public feedback and revise the draft.
Stakeholder Committee Meeting #7. Revise and finalize Recommended Draft Plan for submission to the City
Council.
Task 8: Development of Recommended Draft Plan and Final Strategic Plan
The final plan will be an attractively designed document that artfully describes Tukwila's desired future and the
specific strategies and investments to realize that Vision. Key elements of the plan will include:
A standalone Executive Summary, designed for an audience of residents and partners.
A succinct summary of the planning process and the most salient analytic findings.
A powerful articulation of the community's Vision and Mission.
Phases, Goals, and supporting Action Strategies that are SMART (Specific, Measurable, Achievable,
Results- oriented and Time bound), creating an implementation plan with metrics.
Section on the fiscal sustainability of the Plan and implications for the Comprehensive Plan update process.
Task 8a. Development of Recommended Strategic Plan
Final Recommended Strategic Plan with Executive Summary and performance metrics
Descriptive text for City's website
Task 8b. Presentation to City Council #3
Presentation and discussion of Recommended Draft Plan.
Task 8c. Development of Final Strategic Plan.
BERK will make final revisions per input from the City Council and prepare the Final Strategic Plan.
Summary of Major Work Products
Community Outreach Plan
About the Strategic Plan brochure
Situation Assessment, compiling qualitative and quantitative inputs to the strategic planning process
Strategic Options Summary
Strategic Plan Public Review Draft
Strategic Plan Recommended Draft
Strategic Plan Final Plan
7
15
lC-i
City of Tukwila Strategic Planning Exhibit B
Scope of Work 3/27/12
BUDGET
BERK will invoice the City monthly on a time and materials basis, with a total budget not to exceed $119,449. The
City has set aside a 10% contingency for unforeseen additional effort. This amount beyond the base budget of
$119,449 is not to be used without the direction of the City's Project Manager.
Our anticipated level of effort by individual and by task is reflected below.
Total Estimated Hours 15 180 216 92 61 325 889
Cost 1 $115,970
Totals
Subtotal Consultant Cost $115,970
Project Expenses @'"3 %of project budget $3,479
Proiect Total $119A49
10% Contingency (not to be used without direction of the City's Project Manager) $11,945
Total with Contingency $131,394
$10,000 in project resources for Collaborative Outreach with Community Partners may be used in a variety of ways as described in Task 5b.
8
17
Michael Hodgins,
Brian Murphy,
Allegra Calder,
Survey &Public
Financial
Supporting
Total Hours and
Strategic Advisor
Project Manager
Lead Analyst
Engagement Lead
Market Analyst
Analyst
Estimated Cost
Facilitator
Facilitator
by Task
2012Hourly Rate
$250
$180
$140
$110
$110
$70
Phase 1: Information Gathering Visioning
1. Ongoing Project Management& Coordination
5
20
2a Kickoff Meeting& Community Outreach Plan Development
3
3
3
3
3
2b Staff Work Group Meeting #1
3
3
2c Stakeholder Committee Meeting #1
5
7
3
3a. About the Strategic Plan brochure &text for web
2
4
6
4a Stakeholder Interviews (Mayor, Council, 30 community
leaders)
10
10
20
4b Online Staff Survey
2
2
20
30
4c Demographic, Market, Fiscal Analysis
2
2
5
30
4d Review of City Documents
5
5
5
4e Developmentof Situation Assessment
2
5
10
5
15
4f Staff Work Group Meetings #2 and #3
6
6
4g Stakeholder Committee Meetings #2 and 3
10
18
6
4h City Council Presentation #1
5
5
10
Sa Community Open House #1
4
10
4
20
5b Collaborative Outreach with Community Partners
5
15
5
$7,500
Sc Project Website &Online Community Survey
2
2
20
30
Subtotal
9
87
83
62
52
148
441
$59,930
Phase 2: Develop Draft Plan
6a� Staff Engagement Meetings (3)
°12
15
20
6b Development of Strategic Options Summa ry
2
8
8
5
2
10
6c Staff Work Group Meetings #4 and #5
6
6
6d Stakeholder Committee Meetings #4 and #5
10
18
6
6e Development of Public Review Draft
2
10
15
2
15
6f City Council Presentation #2
5
5
10
Subtotal
4
51
67
5
4
61
192
$24,820
Phase 3: Test Develop Final Plan
7a Community Open House #2
4
10
20
7b Collaborative Outreach with Partners, Round 2
15
5
$2,500
7c Web -Based Feedback (Public Staff)
2
2
10
30
7d Staff Work Group Meetings #6 and #7
6
6
7e. Stakeholder Committee Meetings #6 and #7
10
18
6
8a Recommended Strategic Plan (With layout)
2
10
15
5
30
Sli City Council Presentation #3
5
5
10
8c' Developmentof Final Strategic Plan
5
30
15
Subtotal
2
42
66
25
5
116
256
$31,220
Total Estimated Hours 15 180 216 92 61 325 889
Cost 1 $115,970
Totals
Subtotal Consultant Cost $115,970
Project Expenses @'"3 %of project budget $3,479
Proiect Total $119A49
10% Contingency (not to be used without direction of the City's Project Manager) $11,945
Total with Contingency $131,394
$10,000 in project resources for Collaborative Outreach with Community Partners may be used in a variety of ways as described in Task 5b.
8
17
lE'3
x
20
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Finance Director
DATE: March 28, 2012
SUBJECT: Self- Insurance Reserve Requirements
ISSUE
For the self- insured healthcare plans, revise the contingency reserve balances and incorporate
the contingency reserve policy into the existing Reserve Policy, 300 -15.
BACKGROUND
Prior guidance from the Washington Administrative Code (WAC) Chapter 82 -65 for Local
Government self- insurance health and welfare programs required a local government self
insured healthcare plan to establish an IBNR (incurred but not reported claims) reserve in an
amount equal to 8 weeks of program expenses and recommended establishment of a
contingency reserve equal to an additional 8 weeks of program expenses for a total reserve of
16 weeks, or 30% of expenses. The City established such a reserve, equal to 30% of annual
expenses, for each of its self- insured plans, the plan /Fund 502 for active employees and the
plan /Fund 503 for retired LEOFF 1 employees. The 2010 reserve amounts were as follows:
Plan 2010 Combined
Reserve (a)
502 Self- insured plan, active $1,155,647
503 Self- insured plan, LEOFF 1, retired 70,300
(a) 30 of annual healthcare expenditures before recording of changes in reserves.
The WAC Chapter 82 -65 was modified in October 2010 with an effective date of calendar year
2011. Pursuant to the modified guidelines in WAC 82 -65 -040 (2), the City obtained an
independent actuarial study for each plan to determine the reserve funding requirements. The
study was performed by Healthcare Actuaries during the 3d quarter of 2011. The necessary
IBNR reserves determined by the actuary are as follow:
Plan 2011 IBNR
Reserve (b)
502 Self- insured plan, active $430,600
503 Self- insured plan, LEOFF 1, retired 55,200
(b) Actuarially determined.
21
INFORMATIONAL MEMO
Page 2
WAC 82 -65 -040 (3) recommends the governing body establish an additional contingency
reserve, in addition to the actuarially determined IBNR reserve.
DISCUSSION
The City will record an IBNR reserve in the amounts determined by the actuary. To establish
the contingency reserve, a common practice has been to use a multiple of the IBNR reserve as
a basis. Certain neighboring jurisdictions establish their contingency reserves as follows:
Kent 2 times IBNR
Redmond 2.5 times IBNR
Renton 30% of expenses, which equates to approximately 2 times IBNR.
Staff recommends establishing a contingency reserve equal to 2.5 times, or 250 of the IBNR
reserve which is a fiscally conservative policy, consistent with other City financial policies.
The proposed contingency reserve policy would be added to the existing Reserve Policy, 300-
15, as section 8.0 "Self- Insured Healthcare Plan Contingency Reserve The IBNR reserve and
the contingency reserve would be combined and recorded as one liability in each of the self
insured healthcare plan funds, Fund 502 and Fund 503, consistent with prior accounting
treatment.
A comparison of the prior year reserve amounts and the proposed reserve amounts follows:
Each of the self- insured funds has sufficient fund balance to cover the proposed reserve
amounts.
RECOMMENDATION
The Council Finance and Safety Committee is being asked to consider and approve the
proposed Section 8.0, "Self- insured Healthcare Contingency Reserve" addendum to the existing
Reserve Policy, 300 -15.
ATTACHMENTS
City of Tukwila Renewal Report 2012 Actives (Actuarial report), page 14
City of Tukwila Renewal Report 2012 Retirees (Actuarial report), page 14
Reserve Policy, 300 -15 with proposed addition of section 8
22 C:1 Temp \Content.Outlook\CBK0060U11nfo Memo Self- Insurance Reserve Requirements 3- 28- 2012.doc
2010
2011
Plan
Combined
IBNR
Proposed
Proposed
Reserve
Reserve
Contingency
Combined
Reserve
Reserve
502 Self- insured plan, active
$1,155,647
$430,600
$1,076,500
$1,507,100
503 Self- insured plan, LEOFF 1,
70,300
55,200
138,000
193,200
retired
Each of the self- insured funds has sufficient fund balance to cover the proposed reserve
amounts.
RECOMMENDATION
The Council Finance and Safety Committee is being asked to consider and approve the
proposed Section 8.0, "Self- insured Healthcare Contingency Reserve" addendum to the existing
Reserve Policy, 300 -15.
ATTACHMENTS
City of Tukwila Renewal Report 2012 Actives (Actuarial report), page 14
City of Tukwila Renewal Report 2012 Retirees (Actuarial report), page 14
Reserve Policy, 300 -15 with proposed addition of section 8
22 C:1 Temp \Content.Outlook\CBK0060U11nfo Memo Self- Insurance Reserve Requirements 3- 28- 2012.doc
Estimated IBNR
Estimated IBNR LEOFF
Index: 300 -15
CITY OF TUKWILA
ADMINISTRATIVE MANUAL
Page 1 of 5
TITLE RESERVE POLICY
1. PURPOSE:
To establish a Reserve Policy for the City which pable of addressing the
various ty (categories) cate ories of the City's Fand ret- tricted use funds. The
Y' s p eratin 9 N;
objectives of this Policy are to (i) provide a clear understM;N, Jn of the goals and
objectives of reserve establishment, (ii) offer g nce and lim a
tlpns regarding the
establishment, use and replenishment of City, reserves, and (iii) es ablish a process
for periodic reporting and review of City reserves.
2. ORGANIZATION AFFECTED:
All City funds.
3. REFERENCES:
4. GENERAL FUND RESERVE POLICY:
4.1. The General Fun
specifically levied
providing 9# eral
applies to thee
Fund with a minim
however, shall the
specifically 5We d
4 2`'The Contingency
General Fund rev
thanl pal year 20
his used to accoun�or all g rYeral revenues of the City not
or c�[ected for oth City funds, and for expenditures related to
services by the City For the purpose of this policy and as it
neral 04 d only, the City will establish a Contingency Reserve
urra bala ice >af 8% of aR General Fund revenues. At no time,
FFi
691 hce in the Gortngency Reserve Fund fall below 4% unless
by th,e City Council because of an unforeseen emergency.
f23eserve F a�n *shall initially be set at a minimum of 4% of annual
enues. The City shall reach the targeted minimum of 8% no later
14according to the following schedule:
2% byDecember 31, 2011
4 December 31, 2012
M 1 y December 31, 2013
8% by December 31, 2014
4.3. If actual expenditures in the General Fund are less than budgeted expenditures,
and the General Fund does not end the year at a deficit, at least 25% of the
difference between budgeted and actual expenditures will revert to the
Contingency Reserve Fund and may then be re- appropriated in a subsequent year
at the discretion of the City Council.
4.4. The City will annually direct a minimum of 25% of sales tax receipts from new
construction (NAICS Industry Classification Code 23) to the Contingency Reserve
Fund.
25
Index: 300 -15
TITLE: RESERVE POLICY
Page 2 of 5
4.5. Use of Contingency Reserve Fund To the extent that there is an imbalance in the
General Fund between revenues and budgeted expenditures, City Council and
administration will strive to address the imbalance first with revenue increases,
expenditure reductions, or a combination of the two.
Use of the Contingency Reserve Fund is a one -time, non recurring funding source.
If an imbalance in the General Fund occurs that can not be addressed with
additional revenues or expenditure reductions, a multi plan shall be
developed to address the imbalance concurrently with the planned reserve draw
down of the Contingency Fund. The implementation ofe replenishment plan will
be done in accordance with the guidelines below fsee "Replenishment of
Reserves A planned draw down of the fund's ho a) not exceed
I.
50% of the balance in the Contingency Re ser a -Fund, dn'6111.W not reduce the
reserve below 4% of annual General Fund revenues.
Mr.
4.6. Replenishment of Reserves The following criteria will be used to restore the
Contingency Reserve Fund based upon:f remaining fund balance compared to
the minimum reserve guideline:
1. If the reserves are drawn down by 25 50% bf reserve fund balance, then a
budgetary plan shall be implemented to returnfthe reserve level to between
75% and 100% of the minimum balance over a 5 to year period.
2. If the reserves are drawn down by 1r5 !0 of reserve fund balance, then the
budgetary plan to restore the reserveQ over a 3 to 5 year
period.
3. If the reserves are drawn down by 0 -10% of reserve fund balance, then a
solution to.;r.Eplenish to at least the minimum shall be structured over a 1 to 3
year period.
4.7. Annual, S tatus Reporting and `Pe "riodio'Review Annually, after presentation of the
City's Cbmr'ehensive D.nual Financial Report, the Finance Director will prepare
:and present an`�updated Reserve Level Status report by July 1 of the following
At least every five years, the Mayor, based on advice from the Finance Director,
will askAhe City Council to reaffirm or revise this policy, including the percentages
established herein.
5. RISK MANAGEME=NT RESERVE POLICY:
5.1. The City shall maintain a Risk Management Reserve Fund dedicated to mitigation
of the risk of loss arising from potential claims against the City for general liability
purposes as well as claims resulting from natural disasters such as flooding and
earthquakes.
26
Index: 300 -15
TITLE: RESERVE POLICY
Page 3 of 5
5.2. The Risk Management Reserve Fund shall be set initially at a minimum of 4% of
annual General Fund revenues. The City shall reach the targeted minimum of 8%
no later than fiscal year 2014 according to the following schedule:
2% by December 31, 2011
4% by December 31, 2012
6% by December 31, 2013
8% by December 31, 2014
5.3. Legal claims expenses incurred below the City's insurance deductible amounts will
be paid for out of the Risk Management Reserve Uninsured legal claim
expenses will also be deducted from the Risk Management.Reserve Fund.
5.4. Use of the Risk Management Reserve Fund A draw down of the fund's reserves
should: a) not exceed 50% of the balance ,itillhe Risk Management: Reserve Fund,
and b) not reduce the reserve below 4% of annual General Fund revenues.
5.5. Replenishment of Reserves The following`critena J(l be used to restore the Risk
Management Reserve Fund based upon the reim4t fund balance compared to
the minimum reserve guideline:
H
1. If the reserves are drawn down by 25 -50% df reserve fund balance, then a
budgetary plan shall be implemented to return the reserve level to between
75% and 100% of the minimum balance,, over a 507 year period.
2. If the reserves are drawn down by 10-'2 5� of reserve fund balance, then the
budgetary,. lqn to restore the reserve shall: -be structured over a 3 to 5 year
period.
n
3. If the reserves are drawn down by 0 -10% of reserve fund balance, then a
solution to replenis to at least the minimum shall be structured over a 1 to 3
year period:..
Hk
5.6. The City`Council may, di6&re18n and as necessary, transfer funds between
the Contingency Reserve Fund and the Risk Management Reserve Fund. Once
Elie two reserve funds ar` "e fully- funded up to the minimum levels as established
within this policy; of no time will the combined balances of both funds decline
b le ow 8% of annualGenerat` Fund revenues.
REVENUE STABILIZATION FUND POLICY:
6.1. The City shat(mantain a Revenue Stabilization Fund dedicated to mitigating the
impact of una ftipated revenue declines.
6.2. The City shall appropriate, on an annual basis, a transfer of 1% of General Fund
revenue to the Revenue Stabilization Fund beginning with the 2011 -2012 biennial
budget. The Revenue Stabilization Fund will not be utilized by the City unless
actual General Fund revenue is 5% or more below budgeted revenue after six
months through any given calendar year. At no point will the balance in the
Revenue Stabilization Fund decline by more than 50 unless actual General
Fund revenue is more than 20% below budgeted revenue.
27
Index: 300 -15
TITLE: RESERVE POLICY
Page 4 of 5
6.3. In addition to the annual 1% appropriation, the City will transfer a minimum of 25%
of the excess of any actual property tax or sales tax collections above the
respective budgeted amounts. Such transfer shall take place by March 31 of the
following fiscal year.
6.4. Replenishment of Reserves The following criteria will be used to restore the
Revenue Stabilization Fund based upon the remaining fund balance compared to
the minimum reserve guideline:
1. If the reserves are drawn down by 25 -50% of reserve fund balance, then a
budgetary plan shall be implemented to return the reservd %vel to between 75%
and 100% of the minimum balance over a 5 to 7 year�eriod.
2. If the reserves are drawn down by 10 -25% of reserve fund balance, then the
budgetary plan to restore the reserve shall b6�., ctured over a 3 to 5 year
period.
3. If the reserves are drawn down by 0 -10 of reserve fuh balance, then a
fi uct
solution to replenish to at least the mtimum shall be str over a 1 to 3
year period.
6.5. If the accumulated balance in the Revenue Stabilization Fund exceeds 10% of
annual General Fund revenues, such exce shall be transferred to the
Contingency Reserve Fund.'
7. ENTERPRISE FUND RESERVE PO
7.1. The City shall maintain an adequate fund `becen =each of the City's enterprise
funds to provide funding for capital expenses, un'a*ipated revenue declines, and
any other unbudgeted expense. The policy applies to the following funds:
15% by December 31, 2013
20% by December 31, 2014
7.3. Use of the Working Capital Reserve Fund A draw down of the fund's reserves
should: a) not exceed 50% of the balance in the Working Capital Reserve Fund,
and b) not reduce the reserve below 10% of annual operating and capital
expenditures within each fund.
W
Index: 300 -15
TITLE: RESERVE POLICY
Page 5 of 5
7.4. Replenishment of Reserves The following criteria will be used to restore the
Working Capital Reserve Fund based upon the remaining fund balance compared
to the minimum reserve guideline:
1. If the reserves are drawn down by 25 -50% of reserve fund balance, then a
budgetary plan shall be implemented to return the reserve level to between 75%
and 100% of the minimum balance over a 5 to 7 year period.
2. If the reserves are drawn down by 10 -25% of reserve...hApd balance, then the
budgetary plan to restore the reserve shall be structured -over a 3 to 5 year
period.
3. If the reserves are drawn down by 0 -10% of 0t: i rve fund balance, then a
solution to replenish to at least the minimum shall be structured over a 1 to 3
year period.
7.5. The Working Capital Reserve fund shall be maintained within each of the
Enterprise Funds, but shall be separate frd fi the accumulated fund F balance within
each fund.
8. SELF INSURED HEALTHCARE PLAN CONTINGe NCw( RESERVE POLICY:
8.1. The Citv shall maintain a contingencv reserv"alance in each of its self
insured healthcare funds in an amount equal to 23 times. or 250 of the
actuarially determined IBNR lincur'tb'd";but not report edl "reserve.
8.2. The contingencv reserve balance willbe combined with the IBNR reserve
balance and recorded, as one liabilitV each the self- insured healthcare
plan funds.,
Initiating Department:
Finance Department
Mayor's Office Approval Signature:
29
30
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO:
Mayor Haggerton
Additional
Finance and Safety Committee
FROM:
Peggy McCarthy, Finance Director
DATE:
March 28, 2012
SUBJECT:
2011 Indirect cost allocation
ISSUE
Provide notification of an increase to the 2011 indirect cost allocation charged to the utility funds
and certain other funds managed by the Public Works department. The increase brings the
allocation in compliance with the indirect cost allocation model and policy.
BACKGROUND
The FCS Group created an indirect cost allocation model for the City in February 2010 based on
2008 costs and activity. The resulting allocation amounts were used as the basis for the 2011
indirect cost allocations.
Recently, in the process of updating the model with 2010 amounts and data, it was discovered
that a portion of the model had not been applied in 2011. Specifically, the Public Works
overhead allocation amounts (e.g. allocation of salary and benefits of the Public Works Director,
Operations Manager, etc.) were not incorporated into the 2011 indirect cost allocation charges.
The affected funds and amounts follow.
Fund
Fund Description
Additional
Allocation
104
I Arterial Street
1 16,627
303
General Government Improvements
I 16,627
1 401
1 Water
I $124,701
402
Sewer
I 58,194
412
I Surface Water
I $149,641
501
Equipment Rental
I 83,134
TOTAL
I $448,924
In the original allocation, and following policy, the indirect cost allocations from the model were
inflated by 3% to account for the time lag between the fiscal year the indirect costs were
incurred (2008) and the fiscal year the indirect costs were allocated (2011).
If the Public Works Administration overhead costs had been allocated to the funds managed by
the Public Works administration, an additional $462,392 would have been charged and the
same amount would have been transferred to the general fund through this allocation, as
follows:
31
INFORMATIONAL MEMO
Page 2
A comparison of the indirect cost allocations historically charged to these funds follows:
Historical Indirect Cost Allocation Compared with 2011 Restated and Oriqinal
104 303 401 402 412 501
Restated 2011 137,449 59,046 487,108 329,131 361,571 294,607
Original 2011 120,324 41,921 358,665 269,191 207,441 208,979
2010
639,936
65,000 608,400
499,335
375,815
199,734
2009
Additional
65,000 585,000
480,150
2011
2011
Fund
Fund Description
Allocation
Model
Inflator
2011
Original
Allocation
PW
Overhead
Inflator
Additional Allocation
309,338
164,403
2006
451,077
481,464
395,208
297,684
158,160
Allocation
428,792
462,996
379,992
Allocation Restated
104
(Arterial Street
116,819
3%
•I
120,324
16,627
3%
17,126
137,449
303
General Govt
40,700
3%
41,921
16,627
3%
17,126
59,046
397,914
Improvements
252,072
123,996
1999
340,992
331,992
282,000
186,996
118,992
1998
324,996
315,996
401
(Water
348,219
3%
358,665
124,701
3%
128,442
487,108
402
ISewer
261,350
3%
269,191
58,194
3%
I
59,940 I
329,131
412
(Surface Water
201,399
3%
207,441
149,641
3%
I
154,130
361,571
501
(Equipment Rental
202,892
3%
1
208,979
83,134
3%
85,628 I
294,607
I,
ITOTA
^•1171,3
i 79
�3 /o
:1206 $2D
448 924
3 /o a
I
-462,392
1,6685912
.I
A comparison of the indirect cost allocations historically charged to these funds follows:
Historical Indirect Cost Allocation Compared with 2011 Restated and Oriqinal
104 303 401 402 412 501
Restated 2011 137,449 59,046 487,108 329,131 361,571 294,607
Original 2011 120,324 41,921 358,665 269,191 207,441 208,979
2010
639,936
65,000 608,400
499,335
375,815
199,734
2009
615,350
65,000 585,000
480,150
361,400
192,100
2008
591,657
562,500
461,663
347,462
184,665
2007
526,739
500,781
411,008
309,338
164,403
2006
451,077
481,464
395,208
297,684
158,160
2005
428,792
462,996
379,992
285,996
151,992
2004
395,346
429,204
373,992
274,992
145,992
2003
411,879
414,995
360,000
276,770
139,992
2002
365,602
404,450
361,513
255,000
136,992
2001
391,243
408,000
348,000
254,000
130,992
2000
380,027
397,914
341,748
252,072
123,996
1999
340,992
331,992
282,000
186,996
118,992
1998
324,996
315,996
268,992
183,988
112,992
1997
317,024
315,000
267,000
177,992
113,000
DISCUSSION
Charging the Public Works administration allocation of $462,392 to these funds brings the
allocation total more closely in -line with the historical amounts, adds revenue to the general fund
and follows City policy which prescribes use of the model as the basis for these allocations. All
affected funds have sufficient budget and fund balance to cover these charges. For these reasons,
the additional charge will be made for 2011. Under current policy, the additional allocation will also
be applied in 2012 and beyond. If the allocation overly burdens a fund, such as the sewer fund,
transfers into the fund from the general fund may be necessary at some point in the future.
RECOMMENDATION
Information Only.
32 W.12012 Info Memos- Councilllndirect Cost Allocations- FS4- 3- 12.doc