HomeMy WebLinkAboutFIN 2023-06-26 COMPLETE AGENDA PACKET The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk’s Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
City of Tukwila
Finance and Governance
Committee
Kate Kruller, Chair
Kathy Hougardy
De’Sean Quinn
Distribution:
K. Kruller
K. Hougardy
D. Quinn
C. Delostrinos Johnson
T. McLeod
M. Abdi
T. Sharp
Mayor Ekberg
D. Cline
R. Bianchi
C. O’Flaherty
A. Youn
L. Humphrey
AGENDA
MONDAY, JUNE 26, 2023 – 5:30 PM
THIS MEETING WILL BE CONDUCTED BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY.
ON-SITE PRESENCE WILL BE IN THE DUWAMISH CONFERENCE ROOM
(2ND FLOOR, 6300 SOUTHCENTER BOULEVARD)
THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS
MEETING IS: 1-253-292-9750, Access Code 313004383#
Click here to: Join Microsoft Teams Meeting
For Technical Support during the meeting call: 1-206-433 -7 1 55.
Item Recommended Action
1. BUSINESS AGENDA
a. A lease agreement with Dell for 2023 laptop refresh.
Joel Bush, Chief Technology Officer
b. A contract for a Comprehensive Financial Sustainability
Plan and Utility Rate Study.
Vicky Carlsen, Finance Director
2. MISCELLANEOUS
a. Forward to 7/10 Special
Meeting Consent Agenda.
b. Forward to 7/10 C.O.W.
and 7/17 Regular Meeting.
Pg.1
Pg.5
Next Scheduled Meeting: July 10, 2023
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Joel Bush, Chief Technical Officer
BY: Mike Marcum, Supervisor of Technical Operations
CC: Mayor Ekberg
DATE: 6/20/23
SUBJECT: Dell Lease Agreement- City Laptop Refresh
ISSUE
TIS is seeking Council authorization to enter into a three-year lease agreement with Dell
Financial Services.
BACKGROUND
Laptops have become an integral part of our hybrid work force. The current laptop lease
expires in September.
DISCUSSION
The Dell Financial Services quote is attached for Council review and discussion.
FINANCIAL IMPACT
Not to exceed $45,501 annually, or $125,778.71 over three years, not including tax. This is a
budgeted expense.
RECOMMENDATION
The Council to being asked to consider this item for discussion and forward it to the Consent
Agenda on 7/10/23, granting approval for TIS to enter into the lease agreement.
ATTACHMENTS
Dell Financial Services Quote #3000155734231
1
2
Dell Customer Communication - Confidential#
Prepared For:
June 16, 2023
Term 36
Thank you for giving Dell Financial Services L.L.C. (“DFS”) the opportunity to provide a technology financing solution. Option TELP
Enclosed is a financing proposal for your new technology needs. We look forward to discussing this opportunity in Payments: Annual
further detail with you. If you have any questions, please contact me at the phone number or email address below.Consolidation: Monthly
Payments Due: Advance
Interim Rent: None
Dell 3
Quote Number Payments
3000155734231 Dell Latitude 5330 $694.91 181 $125,778.71 0.36176 $45,501.71
TOTALS $125,778.71 $45,501.71
Proposal Expiration Date:
July 16, 2023
End of Term Options:
Tax Exempt Lease Purchase (TELP):
• Exercise the option to purchase the products for $1.00.
• Return all products to lessor at the lessee’s expense.
Zach Barthel
Finance Sales – Midwest / PacNW
Dell Financial Services
(651)-272-9675
Zach.Barthel@dell.com
Additional Information:
LEASE QUOTE: The Lease Quote is exclusive of shipping costs, maintenance fees, filing fees, licensing fees, property or use taxes, insurance premiums and
similar items which shall be for Lessee's account. Lessee will pay payments and all other amounts without set-off, abatement or reduction for any reason
whatsoever. Additionally, Lessee shall declare and pay all sales, use and personal property taxes to the appropriate taxing authorities. If you are sales tax
exempt, please provide a copy of your Exemption Certificate with the Lease Contract. If Lessee provides the appropriate tax exemption certificates to DFS,
sales and use taxes will not be collected by DFS. However, if your taxing authority assesses a personal property tax on leased equipment, and if DFS pays that
tax under your lease structure, Lessee must reimburse DFS for that tax expense in connection with the Lessee's lease.
PURCHASE ORDER: The Purchase Order must be made out to Dell Financial Services L.L.C., One Dell Way, RR8-23, Round Rock, TX 78682. The Purchase
Order will need to include the quote number, quantity and description of the equipment. Please be sure to indicate that the PO is for a lease order and shows
the type of lease, the term length, and payment frequency. The date of the lease quote referenced should be included. Please be sure to include any applicable
shipping costs as a line item and include your address as the SHIP TO destination.
INSURANCE: The risk of loss on the equipment is borne solely by the Lessee. Lessee shall be required to purchase and maintain during the Term
(i) comprehensive public liability insurance naming Lessor as additional insured; and (ii) "all-risk" physical damage insurance in a minimum amount of the
Purchase Price, naming DFS as first loss payee.
APPROPRIATION COVENANT: The Lease will contain an appropriation of funds clause. The Lessee will covenant that it shall do all things legally within its
power to obtain and maintain funds from which the payments may be paid.
DOCUMENTATION: In addition to a duly executed Agreement, other documents as reasonably requested by DFS may be required, such as but not limited to,
opinions of counsel, IRS tax exemption forms (if applicable), and audited financials.
PROPOSAL VALIDITY / APPROVALS: This is a proposal based upon market conditions and is valid for 30 days, is subject to final credit approval, review of the
economics of the transaction, and execution of mutually acceptable documentation.
INDEXING LANGUAGE: Upon expiration, lease rates may be changed in the event that market rates change.
Leasing and financing provided by Dell Financial Services L.L.C. or its affiliate or designee (“DFS”) to qualified customers. Offers may not be available or may vary in
certain countries. Where available, offers may be changed without notice and are subject to product availability, credit approval, execution of documentation provided
by and acceptable to DFS, and may be subject to minimum transaction size. Offers not available for personal, family or household use. Dell and the Dell logo are
trademarks of Dell Inc. Proposal is property of DFS, contains confidential information and shall not be duplicated or disclosed in whole or part. Proposal is not a firm
offer of financing. Pricing and rates based upon the final amount, configuration and specification of the supplied equipment, software, services or fees. Prorata
payment may be due in the first payment cycle. Proposal excludes additional costs to customer such as shipping, maintenance, filing fees, applicable taxes,
insurance and similar items. Proposal valid through the expiration date shown above, or if none is specified, for 30 calendar days from date of presentation. Upon
expiration, lease rates may be changed in the event that market rates change
TUKWILA, WASHINGTON
Summary Product Description Product Price Quantity Extended Price Rate Factor
Page 1 of 1 3
4
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
FROM: Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: June 20, 2023
SUBJECT: Contract with Berk and FCS for Comprehensive Financial Sustainability Plan
ISSUE
Request authorization for Mayor to sign contract with Berk, partnering with FCS Group for development of
a comprehensive financial sustainability plan and utility rate study not to exceed $225,000.
BACKGROUND
The 2023-204 biennial budget provides $200 thousand for the comprehensive financial sustainability plan.
The plan will review the City’s operating and capital improvement program expenditures. The goal is to
provide short-term (2-5 years) and long-range (6-10 years) plans for the City that considers current and
future programs, projects, and service the City offers.
Given the magnitude of this project, it was determined that adding in a utility rate study as part of this Plan
would be beneficial to the City and aid in the budgeting process for the City’s utility funds.
The Plan is expected to be a valuable tool that will be utilized when drafting the 2025-2026 biennial budget
as well as future budgets. This Plan will provide an understanding of the City’s current financial position
and develop tools or levers that can be used to provide the right mix of resources necessary to achieve the
operational programs and services along with capital improvements desired by our residential and business
communities.
The Plan is timed to coincide with the facilities study and business planning process related to the Foster
Golf Course so that outcomes of these other studies can be incorporated into this Plan.
DISCUSSION
The request for proposals closed on June 2, 2023 and the City received one response. The response was
from Berk, who the City has worke d with on other studies including the Strategic Plan and Impact Fee study.
The response appeared to meet the requirements of the proposal, so interviews were held on June 22,
2023.
Staff on the interview panel concurred that Berk, partnering with FCS Group, can meet the requirements of
the proposal within the proposed timeline.
The total bid is $225,000 with the comprehensive financial sustainability plan $109,205, utility rate model
$93,920, and $265 for miscellaneous project costs. The project costs for the sustainability plan fit well
within the proposed budget in the general fund. The utility rate model would be paid for by utility funds.
RECOMMENDATION
Forward to July 10, 2023 Committee of the Whole and July 17, 2023 Regular Meeting and authorize the
Mayor to sign a contract with Berk, partnering with FCS Group.
ATTACHMENTS
Berk proposal
5
6
City of TukwilaCOMPREHENSIVE FINANCIAL SUSTAINABILITY PLAN AND UTILITY RATE STUDY
SUBMITTED
PROPOSAL
JUNE 2, 2023
7
June 2, 2023
Attn: Vicky Carlsen, Finance Director
City of Tukwila
SENT VIA EMAIL
RE: Tukwila Comprehensive Financial Sustainability Plan and Utility Rate Study | PROPOSAL
Dear Vicky and the Consultant Selection Panel:
BERK Consulting, Inc. (BERK) and FCS GROUP have teamed to provide the City of Tukwila with expert municipal
finance, rate analysis, and facilitation expertise. Together, our firms have worked on municipal finance studies
throughout the region, and separately have worked closely with the City on numerous projects. We would be
excited to work with the City on this joint effort and appreciate the importance of establishing a financial
sustainability plan and updated utility rates for the Tukwila community.
Our team brings expertise in municipal finance, utility rate studies, and stakeholder and committee facilitation.
We feel our combined expertise and complementary skillsets will provide the City with the capacity and
capabilities to complete this study at a high quality as well as on time and on budget.
As requested in the RFP, we are including the following statements:
Signing Authority. Brian Murphy is a Principal at BERK and as such has the authority to bind the firm to any
contract resulting from this procurement process. He will also serve as Project Manager and be the lead
facilitator for the project.
Conflict of Interest. BERK confirms that no officer or employee of the proposer is directly or indirectly a part
to or in any other manner interested financially or otherwise in this RFP.
We look forward to discussing this project with you in detail. In the interim, more information about our firms,
approach, team, and client satisfaction can be found on our websites: www.berkconsulting.com and
www.fcsgroup.com.
Sincerely,
Brian Murphy, Principal
BERK Consulting, Inc.
Phone: (206) 324-8760
2200 Sixth Avenue, Suite 1000
Seattle, WA 98121
www.berkconsulting.com
8
Executive Summary
& Understanding of
Required Services
Proposal Summary
We are proposing an integrated and collaborative approach, with BERK leading
development of the Comprehensive Financial Sustainability Plan as well as facilitation of
staff and Council work sessions and overall project management. The FCS GROUP will lead
development of the Utility Rate Study and will also support the work sessions. Our team’s
expertise in municipal finance, utility rate studies, and facilitation make us ideally suited to
support the City in this effort. BERK has also worked extensively with the City and community
of Tukwila, including on the Strategic Plan + Implementation Framework, Facility Needs
Study, and Police Strategic Plan.
More about our team, experience, and proposed scope of work are included in the following
sections.
Team Organization
BERK has partnered with FCS GROUP to provide the City with unmatched expertise in
municipal financial analysis, utility rate and fee analysis, facilitation, and stakeholder
engagement. Our firms are focused on working with Washington State local governments
and each have been working in the state for more than 30 years. We are currently working
together on a strategy for Pierce County Parks.
Brian Murphy will serve as Project Manager for this effort. He will be the primary point of
contact for the duration of the project, as well as the lead facilitator. Katherine Goetz will
lead development of the Comprehensive Financial Plan, and John Ghilarducci will lead
the Utility Rate Study. They will be supported by Oliver Hirn and Ariel Hsieh of BERK and
Zechariah Hazel of FCS GROUP. Additional information about each staff person can be
found in the Proposer’s Personnel section and Appendix A: Staff Resumes.
PROPOSAL · SUBMITTED JUNE 2, 2023 1
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
9
Relevant Experience
The BERK team has worked on financial sustainability strategies for many cities in the
region, including Auburn, Brier, Kent, Kirkland, Port Townsend, and Shoreline. We have been
fortunate to work with the City of Tukwila over the past decade on a strategic plan, facility
needs assessment, parks planning, and a needs assessment for the Senior Center.
FCS GROUP has performed water, sewer, and stormwater rate studies for hundreds of
Northwest city utilities including the cities of Auburn, Bainbridge Island, Bonney lake, Bothell,
Bremerton, Fife, Oak Harbor, Redmond, Renton, Sumner, and Vancouver. In past years, FCS
GROUP has worked with the City of Tukwila on several engagements including a stormwater
funding analysis, park impact fee review, and multi-phase financial evaluation of the Segale
development. FCS GROUP also completed an indirect cost allocation plan for the City that
was held up for many years by the Washington State Auditor’s Office (SAO) as an example
cost plan for other cities to emulate.
Project Understanding
The City of Tukwila is facing a challenge like many other cities in Washington: how to provide
the level of programs, services, and infrastructure improvements desired by the community in
the face of budget constraints and the need to contain impacts to taxpayers and ratepayers.
While this challenge is common, the City of Tukwila’s unique profile provides more
opportunities to explore and more interests to consider. The limit on property tax growth is
the primary factor for a city’s structural budget imbalance, as this revenue source grows more
slowly than expenditures. A city like Tukwila, with its large commercial sector, has a more
diverse revenue stream and is less reliant on property tax revenue. The City has already
taken steps to broaden its taxpayer base by adopting a business and occupation tax. This
new tool will be part of the context in which to consider other revenue tools such as a levy lid
lift, or expenditure options like staffing adjustments or changes to reserve levels.
The City would like a financial sustainability plan that meets its specific needs and is shaped
and supported by an Advisory Committee representing various interests in the community. It
will be important to balance these interests during the committee process, ensuring all voices
are heard and respected and that committee members find common ground in evaluating
options based on their magnitude, stability, flexibility, ease of implementation, equity, and
other identified factors before recommending strategies. The BERK team has a track record
of facilitating committees where members came into the process with varied perspectives and
opinions and achieved a solid, cohesive package of recommendations.
PROPOSAL · SUBMITTED JUNE 2, 2023 2
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
10
The Financial Sustainability Plan will:
Reflect the Tukwila community’s needs and priorities.
Consider how programs and services may change as the community continues to grow.
Provide short- and long-term strategies to maintain financial stability.
Describe how to implement strategies.
City staff will be an essential partner in this process, as they know the most about which
strategies have already been implemented and which have been explored, how feasible
implementation would be, and what impact strategies might have on operations. Our team
will work collaboratively with staff to prepare materials and analyze options, drawing on
our own experience working in city government at the operational and strategic level.
The utility rate study will be a companion to the financial sustainability plan, providing City
staff with another tool for financing major infrastructure projects. The study will include
recommendations for rates and options to adjust funding as the community grows. The study
will focus on equity, exploring options to set rates that closely align with customer usage.
Approach
The tasks below outline our proposed scope of work. The cost proposal included in this
document is based on this approach, however we are flexible and would be happy to revise
this initial scope in collaboration with the City.
Task 1. Project Kick-off and Management
Project kickoff. The consulting team will facilitate a project kick-off meeting with the City’s
Project Manager and/or project team. The purpose of the meeting is to discuss:
Designation of roles and points of contact on the client and consultant teams.
Desired project outcomes.
Key policy and technical issues to address
A project schedule and deliverables.
Identification of key staff with whom to collaborate.
PROPOSAL · SUBMITTED JUNE 2, 2023 3
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
11
We will also use the kick-off meeting to discuss some baseline questions, including:
Does the City want to benchmark against comparison cities? If so, what are the criteria
for selection?
Are there any revenue or efficiency options the City already knows it wants to explore in
the financial sustainability plan?
What conversations have already occurred with various stakeholder groups?
Ongoing project management. Through the remainder of the project, the consulting team’s
core staff will check in regularly and work collaboratively with the City’s Project Manager to
ensure the process is moving forward efficiently and to address any questions or concerns.
City Council briefings and presentations. The consulting team will coordinate presentations
of findings and recommendations to the City Council. Members of the BERK team will present
the drat financial sustainability plan while members of the FCS GROUP team will present
and discuss the rate study results at up to three on-site City Council meetings. One of these
three meetings is likely to be a Rate Studies 101 workshop and at least one other meeting
will be a public Council meeting that will include sample bill impacts and comparable rates in
neighboring communities.
Task 2. Financial Sustainability Plan
Review other plan documents and context. We will review the City’s budget, capital
improvement plan, and financial policies to gain an understanding of key budget drivers,
constraints, and strategies that have recently been implemented. We will review other
recently completed plans and planning efforts underway, such as the comprehensive facilities
study and business plan for the City’s golf course.
Review City programs and services. Members of the BERK team will meet with City
staff in each department to learn about the City’s programs and services, including legal
requirements, staffing needs, costs, offsetting revenues, community expectations, and usage.
We will project future usage of programs and services based on population and employment
projections provided by City staff and determine how those changes will impact staffing
needs and costs.
Benchmark to peer cities. In collaboration with the City’s project team, we will select
up to five comparison cities against which to measure Tukwila’s revenues, both in terms
of magnitude and mix, and costs to provide services. Benchmarking is a helpful way
to understand which revenue or expenditure strategies the City may be underutilizing.
Benchmarking also captures, at a high level, how other cities manage the financial structural
PROPOSAL · SUBMITTED JUNE 2, 2023 4
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
12
constraints they share with Tukwila and the tradeoffs they make. These findings can be useful
in the analytic process, and for subsequent decision making by Council and the community.
Facilitate a staff workgroup. We will facilitate multiple meetings with a staff workgroup to
have an open, collaborative discussion about our findings and identified financial strategy
options. We will discuss topics such as opportunities for efficiencies or alternative ways
to deliver service as well as revenue options. FCS GROUP team members will facilitate
workgroup review of findings associated with the Utility Rate Study.
Facilitate the Advisory Committee. We will facilitate up to six meetings of an Advisory
Committee representing City staff, the Tukwila business community, and residents. The
Advisory Committee will review information about the City’s current financial condition and
provide feedback on different revenue and expenditure options and weigh in on identified
tradeoffs and alternatives. The consulting team will work together with the City’s project
team to develop the meeting plan and materials for each meeting. We anticipate committee
members will have different levels of familiarity with the City’s budget and financial issues,
so we will work during and between meetings to ensure all members are able to participate
effectively. The meeting arc will have four overall steps:
1. Establish the foundation: Review the project purpose and the charge of the Advisory
Committee. Review the City’s budget, identify significant revenues and expenditures, and
distinguish where the City has obligations and the discretion to make choices. Determine
evaluative criteria for screening revenue and cost options.
2. Understand the context and options. Review benchmarking information to see how
Tukwila compares to peer cities. Discuss various revenue and expenditure strategies,
identifying the pros and cons of each.
3. Iterate and discuss. Continue discussing options and exploring how they fit together into
draft recommendations. Consider the timeframe of each option.
4. Finalize recommendations. Prepare final recommendations to incorporate into the
financial sustainability plan.
Develop strategies. Using input from City staff and the Advisory Committee, we will develop
strategies to address the City’s financial challenges. We will consider ways the City can plan
for unexpected events, such as creating designated reserve funds and updating reserve
policies. These strategies will be both short- and long-term. We will prioritize these strategies
and include implementation steps such as who is responsible and who should be consulted.
Using the City’s current financial forecast, we will build an interactive, dynamic model to test
the fiscal impact of different strategies.
Final report. Once preferred strategies are established, we will prepare a final plan in
the form of a report. The report will be written for a broad audience, including City staff,
City Councilmembers, partners, and community members. The document will be as concise as
PROPOSAL · SUBMITTED JUNE 2, 2023 5
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
13
possible, using wayfinding and document structure to place emphasis on the most important
material, with supporting details housed in attachments. This will allow the report to
effectively communicate the strategies in the plan to all audiences.
Task 3. Utility Rate Study
This task will result in updated rates for the City of Tukwila’s water, sewer, and surface water
utilities. An alternative surface water rate structure is included in the work plan, as well as a
cost-of-service analysis for the City’s water and sewer utilities.
Data request. FCS GROUP will submit a request for needed data and arrange for a meeting
with City staff to establish a clear project understanding and set a course for completing
the work. A follow-up data request may be needed to ask clarifying questions or fill-in data
gaps.
Policy framework. In this task, FCS GROUP will compile brief issue summaries on key policy
questions to be addressed in or incorporated into the study. Each issue summary will define
the key question, evaluate options, and recommend a course of action for discussion. During
this task, we will write up to two issue summaries. Issues often focus (but not always) on fiscal
policies and rate structure options. We will have a virtual meeting with City staff to discuss
and resolve policy issues and direction.
Revenue requirements analyses. After the City has provided the information requested in
the data request list, FCS GROUP will analyze the revenue requirements for each service.
The revenue requirement is defined as the total amount of rate revenue needed to meet an
enterprise’s financial obligations, including capital, operating, and policy-driven commitments.
The results of the revenue requirement analyses will be the recommended percentage
adjustments needed to meet the obligations of each service. The analysis will include up to a
30-year forecast. We will meet twice with City staff to review revenue requirement findings
(one in-person meeting and one virtual meeting). Subtasks will involve developing a Capital
Financing Plan, Operating Forecast, and Revenue Needs Assessment.
Capital Financing Plan. Based on the Utility Capital Improvement Plans (CIPs) provided
by the City, annual rehabilitation and replacement needs, and the desired capital
funding strategy (likely to include a balance of cash and debt funding), FCS GROUP will
project capital funding needs, borrowing requirements, and associated cash flows and
cash balances for the study period.
Operating Forecast. FCS GROUP will forecast ongoing operating, maintenance,
administrative, debt service, and other cash obligations of the three services for the study
period. We will incorporate economic factors for customer growth and cost escalation,
PROPOSAL · SUBMITTED JUNE 2, 2023 6
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
14
as well as additional O&M expenses, if any, resulting from the capital improvement
programs or other known changes in operational requirements.
Revenue Needs Assessment. The Revenue Needs Assessment ultimately identifies the
total rate revenue to be collected from customers of the City, serving as the platform
for generating rates that recover total utility costs for each service. We will compare
projected cash requirements against projected revenue under existing rate levels,
including projected sewer treatment and wholesale water purchase rates, to determine
annual City rate adjustments needed to satisfy the projected cash obligations of each
service. We will test the sufficiency of each utility’s resources in the context of the
City’s fiscal policy objectives, debt covenants (i.e., coverage), and other applicable
requirements.
Surface water rate design. The City of Tukwila currently charges rates for surface water
management based on development density tiers (percent impervious coverage) and parcel
size. Single-family residences are charged uniformly by parcel. While this is a defensible
rate structure, it does have a material drawback as the structure perpetuates inequities
among customers at the extreme ends of each rate tier. Alternative billing approaches are
limited by King County billing processes unless the City is willing to bill directly for surface
water charges. If desired, we would evaluate opportunities for a fee structure that is
based on actual, measured impervious surface area, using the equivalent service unit (ESU)
approach.
The ESU approach often includes a uniform rate for single-family residential customers based
on an estimated average amount of impervious surface area per developed residential
parcel. However, if the data is available, additional equity can be gained by grouping
single-family parcels into tiers, such as Small, Medium, and large, based on impervious
square footage. The charge basis for all other customer types is generally actual measured
impervious surface area, expressed as a number of ESUs. The rate itself is most commonly
calculated as a dollar amount per ESU. We have budgeted to meet on-site with City staff to
review surface water rate structure findings. Subtasks involve compiling customer information,
performing a rate calculation, and assessing rate credit options.
Compile customer information. We will compile information furnished and initially
compiled by the City and / or the County into the format needed to calculate updated
rates. If sufficient current impervious data for single-family residential parcels is
unavailable for an impervious square footage (e.g., tiers) type of analysis, the City will
need to review and update this information and provide that to FCS GROUP.
Calculate rate. Applying the revenue requirement results and the customer information,
we will calculate up to two ESU rate alternatives for single-family parcels (i.e., uniform
single-family and tiered single-family).
PROPOSAL · SUBMITTED JUNE 2, 2023 7
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
15
Rate credits. If rate credits are desired by the City, we will analyze the utility’s costs and
allocate to “base” and “use” to help determine the maximum credit amount and evaluate
options for implementation.
water and sewer cost-of-service analyses. The cost-of-service analysis is the evaluation,
based on available engineering and customer information, of how the City should recover
costs from customer classes. If the revenue requirement analysis determines the size of the
pie, the cost-of-service analysis determines how it will be sliced up among customers. The
results of the cost-of-service analysis will be updated rates that equitably charge utility
customers based on the unique demands of their class. We have planned to meet in-person
with City staff to review cost-of-service and rate findings. Cost-of-service analyses and
resulting rates will be revised in consideration of City feedback. Subtasks include analyzing
customer statistics, rate model update, performance of allocations, and generating updated
rates.
Analyze customer statistics. To ensure the quality and reliability of the cost-of-service
analyses, FCS GROUP will examine the customer statistics provided for the water and
sewer utilities.
Rate model update. FCS GROUP will develop Excel-based cost-of-service rate modules.
The modules will be constructed with user-friendliness in mind and will accommodate
user entry of key data and assumptions. The modules will be flexible and stable enough
to analyze multiple scenarios and refinements. While similar in format and “look,”
the modules will differ between the water and sewer services. Allocations of plant
and expense may be made by service. Water will include customer, base demand,
extra/peak demand, and fire protection, while sewer will consider customer, flow, and
infiltration and inflow.
Perform allocations. Drawing upon City staff’s knowledge and input, as well as work
performed in previous studies, we will allocate plant and expense items to relevant
functional cost categories for each service.
Generate updated rates. Each model will allow simultaneous analysis of up to three rate
structures: a simple across-the-board adjustment to current rates and two alternative
cost-of-service based rate structures. Alternatives will be chosen based on the input of
City staff and direction from City Council (if applicable) but could include additional rate
categories for affordable housing (including ADUs and middle housing).
Draft and final report. FCS GROUP will document findings in a comprehensive study report
and provide a copy of the spreadsheet analyses for future use by City staff.
Draft Report. After completing the analytical tasks, FCS GROUP will provide a draft
report for City review. The report will summarize the methodology and analysis
undertaken in completing the project, the results and conclusions of the study, and our
PROPOSAL · SUBMITTED JUNE 2, 2023 8
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
16
recommendations. The report will include proposed rate schedules and implementation
steps.
Final Report. Upon receipt of comments from the City, FCS GROUP will incorporate the
comments, as appropriate, into a Final Report to be submitted to the City in both Word
and PDF formats.
Spreadsheet Model. FCS GROUP will deliver a final copy of the Excel-based
spreadsheet models for City use. The models will provide for 1) evaluation of revenue
and cost changes on rates, 2) analysis of fiscal policy implementation options, 3) analysis
of changes in economic and financial indicators, 4) rate smoothing, and 5) variances to
any and all other key rate study inputs including the capital plan, the operating budget,
customer information.
PROPOSAL · SUBMITTED JUNE 2, 2023 9
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
17
PROPOSAL · SUBMITTED JUNE 2, 2023 10
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
Description of Proposer’s Firm
Team Overview
BERK will serve as the lead consultant for this project and will contract directly with the City.
Our proposed Project Manager, Brian Murphy, is a Principal at BERK and can legally bind
the firm to a contract resulting from this procurement process. Brian will also serve as the
primary point of contact for the work.
BERK and FCS GROUP have worked together on other financial studies, including a current
project with Pierce County Parks. Our teams have complementary skillsets related to
municipal finance, rate studies, and facilitation, and will work collaboratively on this project.
More information about each firm and our key personnel are in the following sections.
About BERK Consulting
BERK is an interdisciplinary consultancy integrating strategy, planning, and policy
development; financial and economic analysis; and facilitation, design, and communications.
Founded in 1988, our passion is working in the public interest, helping public and nonprofit
agencies address complex challenges and position themselves for success.
Our Mission is: Helping Communities and Organizations Create Their Best Futures. We do
this by:
Integrating the art of effective decision-making with the science of rigorous quantitative
and qualitative analysis;
Bringing people, ideas, and analysis together to generate understanding and consensus
on the best strategies and decisions; and
Bridging disciplines to synthesize diverse information and facilitate relationships.
A hallmark of our approach is our ability to communicate complex information to a wide
range of audiences, using words, numbers, pictures, and maps to convey information in
accessible, understandable formats. We believe that when participants truly understand the
issues and options before them, they are able to make good decisions, and then communicate
and explain those decisions to the broader community.
18
About FCS GROUP
FCS GROUP, established in 1988, is one of the country’s oldest and most respected
independent providers of financial, economic, and utility management services in the public
sector. With over 4,000 engagements for more than 650 government clients, FCS GROUP
provides best-in-class analytical solutions that offers our clients the clarity they need to solve
their most complex issues in ways tailored specifically to their own communities.
As a private practice dedicated exclusively to state and local government issues, FCS
GROUP has accumulated the expertise and the perspective that makes a real difference for
the clients they serve. Each engagement is a highly personalized, entirely customized rate
development experience led by one of our most senior principals who will be your partner in
building the solutions and outcomes you need. FCS GROUP understands that every municipal
agency faces its own unique challenges. Their success and reputation comes from the ability
to listen to clients and produce customized study results that can be easily implemented and
understood by everyone.
FCS GROUP’s management and technical staff serve clients throughout the U.S. from four
offices located in Redmond and Spokane, Washington, Lake Oswego, Oregon, and Boulder,
Colorado.
Relevant Experience
Municipal Finance. BERK staff are among the most knowledgeable professionals in the
State about fiscal issues. Our local tax structures and budgeting processes are complex, and
BERK has experience developing modeling tools and financial analysis that works within this
environment. We bring a level of expertise to financial analysis that helps build credibility
and ensures that recommendations and agency objectives are implementable.
Utility Rate and Fee Consulting. FCS GROUP has performed over 3,000 utility finance and
rate development projects for local communities including defining revenue requirements with
comprehensive financial modeling tools, performing long-term capital management strategies,
developing full cost-of-service rates, and establishing legally defensible system development
charges. We work with agencies large and small in urban and suburban areas, rural systems,
regions with seasonal/climate sensitivities, and communities with special commercial/industrial
needs. We are experts and educators in utility rate policies and practices, and are attentive
to legal constraints in every location we work. Finally, we have a reputation for investing time
with agency staff, policymakers, stakeholders, and customers to improve their utility’s long-
term financial health and integrity.
PROPOSAL · SUBMITTED JUNE 2, 2023 11
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
19
Stakeholder & Committee Facilitation. While a good facilitator can assist a group through a
discussion of a topic that he or she is not extremely familiar with, the most effective facilitator
understands the topic from an analytic perspective, and appreciates the differing viewpoints
and interests that participants may bring to the table.
A hallmark of BERK’s approach is the ability to efficiently integrate financial analysis
and citizen engagement. We are experts at synthesizing complex information to make it
accessible to groups with varying levels of expertise, differing perspectives, and limited
amounts of time.
BERK’s expertise spans municipal finance and market/economic analysis, as well as strategy
development and group facilitation. We have expert knowledge of the financial challenges
faced by cities across the state and the country, and of the issues likely to be raised by
the Advisory Committee. This expert familiarity enables us to facilitate groups through
consideration of what might otherwise be complex and potentially controversial topics.
Project Experience
Port Townsend Financial Sustainability Taskforce 2023
BERK is providing support for the City of Port Townsend’s Financial Sustainability Taskforce.
The City of Port Townsend is currently in a solid financial position, but staff and City
Councilmembers want to be able to maintain services and move forward on several major
initiatives. The City established this Taskforce to review the City’s current financial position
and identify options for the future with a small group of engaged residents. BERK provided
facilitation for these meetings and created materials such as educational content for the
community, benchmarking information for peer cities, financial options to consider, and
criteria to evaluate those options. BERK is assisting staff develop a final report from the
Taskforce to the City Council. This report will be completed in July 2023.
City of Auburn Fiscal Sustainability Analysis 2019
The City of Auburn engaged BERK on a fiscal sustainability study to review its current
financial situation and identify options that could have a material and meaningful impact. The
City was experiencing population and employment growth, but expenses were beginning to
outpace revenues, due in large part to structural factors common to cities across Washington
state. BERK reviewed the City’s financial condition, compared projections under varying
methodologies, and developed a fiscal model to analyze different scenarios over a ten-
year timeframe. We benchmarked key revenue sources to peer cities, providing a broad
sense of how different cities support their General Funds with revenue tools. Our team
PROPOSAL · SUBMITTED JUNE 2, 2023 12
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
20
interviewed department directors to better understand the City’s financial context and past
cost containment strategies, and worked with the Finance staff to identify and evaluate
strategies for revenue enhancement, including a utility tax increase, public safety sales tax,
business and occupation tax, and property tax levy lid lift, noting benefits and challenges of
each. We developed working budget scenarios to address the fiscal gap and presented our
analysis to City Council.
City of Brier Financial Condition Scenarios 2022
BERK conducted a financial scenario analysis for the City of Brier to evaluate the impact of
several fire protection service arrangements on the City’s financial outlook. Using budget and
cost data provided by the City, as well as publicly available data from the State Auditor’s
Office, State Department of Revenue, and County Assessor’s Office, BERK staff projected
the City’s General Fund revenues (including property tax, retail sales and use tax, and
utility tax revenues) and expenditures for the next six years under four scenarios. BERK staff
created a flexible revenue and expenditure model in Excel that could be adjusted to various
assumptions and scenarios. The model generated estimates of the annual General Fund
surplus/deficit and the year-end General Fund balance in each of the next six years. BERK
staff summarized the findings of the model in a short memo with graphical representations
of the model results and in a presentation to Brier City Council. The City used BERK’s work to
communicate the City’s financial condition to residents and to inform decisions about potential
annexation into the regional fire authority.
City of Kirkland, NE 85th Street Station Area Plan Fiscal Impacts Analysis, 2021
BERK supported the City of Kirkland in the development and adoption of a Station Area
Plan for the neighborhood surrounding a future Bus Rapid Transit (BRT) station at I-405
and NE 85th Street. As part of a multidisciplinary consultant team, BERK assisted the City
with development of land use planning scenarios for the Station Area, public engagement
activities, SEPA environmental review, and fiscal impact analysis. As part of the fiscal impact
evaluation, BERK projected costs and revenues associated with development in the Station
Area based on planned land use scenarios, including projection of operating costs and
capital investments necessary to serve future growth. BERK also produced a dynamic Excel
model that allows the City to adjust assumptions, including phasing of development along
with growth assumptions. The fiscal impact analysis will inform City decisions about how best
to efficiently provide services and infrastructure in the Station Area and what revenues will
be available to help fund these costs.
PROPOSAL · SUBMITTED JUNE 2, 2023 13
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
21
Pierce County Road Fund Sustainability 2022
BERK is conducting an analysis of the long-term stability and sustainability of Pierce
County’s Road Fund, which supports maintenance and operations of the County’s road
network in unincorporated areas. The analysis includes projections of revenues and
expenditures, consideration of significant factors that impact these projections, and policy
options to consider that would enhance the sustainability of the Fund. The projections will
be informed by staff input, growth trends in the County, and external factors such as
construction cost trends and state revenue estimates. The final report will provide information
and recommendations that can help staff develop priorities and help the County Council
understand the implications of policy decisions.
Oak Harbor Water, Sewer, Storm Drain, and Solid
Waste Rate and SDC Study (2022)
The City engaged FCS GROUP in March 2022 to take a fresh look at the status and
anticipated needs of its water, sewer, storm drain, and solid waste utilities. The City had
faced considerable public opposition when it adopted rate increases for the 2021 – 2022
biennium, with residents calling the necessity of the proposed increases and related City
spending into question. FCS GROUP developed financial plans and reviewed system
development charges (SDC) for the City’s water, sewer, storm drain, and solid waste utilities.
The engagement incorporated the City’s 2023 – 2027 capital improvement plan in the rate
study, including capital spending of $14.4 million for the water utility, $4.9 million for the
sewer utility, and $912,000 for the storm drain utility. FCS GROUP also recommended a
schedule of charges in project outcomes for the utilities for the 2023 – 2027 planning period
and then developed an alternative sewer SDC structure based on home size for single-family
users. Public engagement involved several workshops and after considerable deliberations,
the Council approved a plan to modify the sewer SDC structure and phase the SDC increases
in over five years.
City of Vancouver Water, Sewer and Storm Drainage
Cost-of-Service Rate and SDC Study (2019)
FCS GROUP has performed nearly 30 individual financial consulting and rate development
engagements for the City of Vancouver since 2000 to address various utility concerns
including water, wastewater, and surface water in addition to transportation and park fees.
In 2019, FCS GROUP was retained to provide a comprehensive water, wastewater and
storm drainage rate study. Engagement highlights included the development of a long-term
replacement forecast for the City’s water, wastewater, and surface water mains, in addition
to an evaluation of miscellaneous utility fees to assess level of cost recovery achieved. FCS
PROPOSAL · SUBMITTED JUNE 2, 2023 14
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
22
GROUP forecasted revenue needs for each utility, projecting revenues and expenditures
over a twenty-year period, analyzing options and providing recommendations on key policy
issues, and developed a corresponding cost-of-service analysis that allocated costs among
multiple customer classes. SDCs alternatives were calculated for water and wastewater under
multiple approaches. Finally, FCS GROUP performed a benchmarking analysis of City’s
utilities against industry standards and the utilities of twenty other cities in Washington.
City of Bothell Water, Sewer, and Stormwater Rate and CFC Study (2017-2023)
FCS GROUP has completed 19 studies for the City of Bothell, dating back to 1988, including
utility rate, capital facilities charge (CFC), and development fee studies and completed
a comprehensive water, sewer, and stormwater rate and capital facilities charge study in
2017 that was followed by pandemic-era rate advisory services and a 2021 CFC study.
FCS GROUP was recently retained in 2023 to update the 2017 study. Projects performed
in 2017 and beyond have consisted of a multi-year financial plan update that included an
analysis of capital funding scenarios. The water and sewer cost-of-service analyses, included
the development of a phasing strategy to improve equity among customer classes and an
analysis of customer bill impacts. FCS GROUP also developed stormwater rate structure
alternatives that benefited the City’s growth and redevelopment initiative. CFC were updated
for water, sewer, and stormwater, followed by the development issue papers discussing rate-
funded system reinvestment and billing options for stormwater charges. Finally, FCS GROUP
evaluated the impacts of the COVID-19 pandemic on the water, sewer, and stormwater
utilities.
PROPOSAL · SUBMITTED JUNE 2, 2023 15
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
23
PROPOSAL · SUBMITTED JUNE 2, 2023 16
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
Proposer’s Personnel
Team Organization
The BERK team will be led by Brian Murphy, a Principal at BERK with more than 20 years
of experience working with local government agencies. He will serve as the primary point of
contact for the duration of the project and lead facilitation of the Advisory Committee. He
will be supported by Katherine Goetz as Financial Sustainability Plan Task lead and John
Ghilarducci as Rate Study Task Lead. Analysts from both firms will provide additional project
support.
More information about each key staff person is below.
Key Personnel Roles
Brian Murphy (Project Manager, BERK) is a Principal at BERK with more than 20 years of
experience in strategic and business planning, facilitation, and management consulting. He
specializes in creating actionable plans based on extensive data analysis for state, regional,
and local government organizations. He led development of the City of Tukwila Strategic
Plan and the Police Department Strategic Plan. He is serving as Principal in Charge for the
City of Port Townsend Financial Sustainability Plan and recently supported the City of Brier
Financial Condition Scenarios Analysis related to fire district annexation. He was the Task
Manager for the City of Kirkland 85th Station Area Plan financial analysis.
Brian joined the firm in 2002 and is a skilled manager of complex analytic and planning
projects with many moving pieces and nuanced policy choices. Brian received a B.A. with
Honors from UC Santa Cruz and an M.B.A. from the University of Washington, where he led
the school’s Net Impact chapter. Previously, he was a program director for Volunteers in Asia,
a non-profit cross-cultural exchange organization based at Stanford University. He is a 2003
graduate of leadership Tomorrow.
24
Katherine Goetz (Plan Task Lead, BERK) has over 14 years of experience in local
government, where she specialized in financial analysis, policy analysis, budget development
and review, and process improvement. Katherine is currently managing the City of Port
Townsend Financial Sustainability Taskforce and Pierce County Road Fund Sustainability
Study and Capital Facilities Plan. She recently completed an annexation financial analysis
for the Town of Woodway and a financial analysis for a planning study in the City of West
Richland.
Prior to joining BERK, Katherine worked for the City of Bellevue and the cities of Newport
News and Norfolk in Virginia. Katherine earned her B.A. in International Relations and French
from the University of Southern California and a Master of Public Policy from the luskin
School of Public Affairs at the University of California, los Angeles.
Oliver Hirn (Lead Analyst, BERK) specializes in municipal finance and budgeting for
local government agencies. He is supporting the City of Port Townsend on the Financial
Sustainability Taskforce and the Pierce County Road Fund Feasibility Study. Oliver is also
working on the Pierce County Parks, Recreation, and Open Space Plan Update with the FCS
GROUP.
Prior to joining BERK, he worked with a local human services organization to raise funds
and apply for grant funding. He also interned for a South African leadership organization
to support a small business crowdfunding campaign. During graduate school, he worked on
public sector financing and financial modeling projects for several local jurisdictions. Oliver
has a Master of Public Administration from the Evans School of Public Policy & Governance
at the University of Washington and a Bachelor of Business Administration from the University
of Notre Dame.
Ariel Hsieh (Supporting Analyst, BERK) is a data and research analyst with a background
in finance and compliance. She specializes in analyzing large datasets and then translating
that information into charts, graphs, and memos for a variety of audiences. Prior to joining
BERK, she worked at NERA Economic Consulting in New york and was a Research Assistant at
the yale Sc hool of Management. She has a B.A. in Economics from yale University and is an
active volunteer in her local community.
PROPOSAL · SUBMITTED JUNE 2, 2023 17
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
25
John Ghilarducci (Study Lead, FCS GROUP) is FCS GROUP’s president and a shareholder
with 35 years of professional experience including 32 with the firm. His practice focuses
on all aspects of financial rate studies, from technical modeling and public involvement to
ordinance drafting and implementation. John has developed water, sewer, stormwater, parks,
and transportation rates and charges for hundreds of Northwest clients. John offers a broad
knowledge of public policy and finance, and a thorough understanding of the institutional
issues and options underlying the formation of utilities and the design of supporting rate
and charge structures. John’s innovative rate making approaches have resulted in “level
of service” stormwater rates, area-specific SDCs, sewer strength sub-classes, inverted
block water rate structures, defensible stormwater rate credit methodologies, person-trip
based transportation impact fees suitable for multi-modal transportation capital plans, and
nonresidential park impact fees.
John’s experience working with the City of Tukwila includes a park impact fee review,
in addition to a stormwater funding analysis. John has an M.P.A. in Organization and
Management from the University of Washington, and a B.S. in Economics from the University
of Oregon.
Zechariah Hazel (Analyst, FCS GROUP) is an FCS GROUP project consultant with
experience in data collection, research, spreadsheet modeling and revenue requirement and
cost-of-service analysis for utility rates, economic studies and connection charges for water,
sewer and stormwater utilities. He has performed in-depth analysis of program financial
conditions and prepared reports detailing the results. Zech earned a B.A. in Mathematics
from Willamette University.
Additional information about each key staff person is included in Appendix A: Staff
Resumes.
PROPOSAL · SUBMITTED JUNE 2, 2023 18
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
26
Fees & Charges
The table below outlines our anticipated level of effort by person by task as outlined in this proposal. We are flexible in our approach and would be
happy to revise this initial estimate after further conversation with the City.
B. Murphy K. Goetz O. Hirn A. Hsieh J. Ghilarducci Z. Hazel
Project Manager Plan Task Lead Lead Analyst Supporting Analyst Study Task Lead Analyst
2023 Hourly Rate $260 $160 $130 $150 $295 $190
Task 1: Project Management and Council Briefings
Project Kick-off 2 2 2 2 2 2
Ongoing coordination 8 2 8
Council briefings and presentations (3)16 16 16 16
Subtotal 26 20 2 2 26 18 94
$21,610
Task 2. Financial Sustainability Plan
Review other plan documents 2 8 4 4
Review City's financial forecast 8 8 8
Interview city staff (10 interviews)20 20 20
Review programs and services 16 16 16
Project future usage 8 16
Benchmark to peer cities (five)24 24
Facilitate staff workgroup (virtual and in-person)12 24 24 15 10
Facilitate Advisory Committee (up to 6)48 48 48
Develop model and financial sustainability strategies 16 24 24 24
Prepare draft report 16 24 24 12
Prepare final report 4 12 12 12
Subtotal 98 184 212 136 15 10 655
$109,205
Task 3: Utility Rate Study
Data request 8 16
Policy framework 10 20
Revenue requirements analyses 40 108
Surface water rate design 16 40
Water/sewer cost of service analysis 32 80
Draft and final report 14 44
Subtotal 0 0 0 0 120 308 428
$93,920
Total Estimated Hours 124 204 214 138 161 336 1177
Cost (Hours*Rate)$32,240 $32,640 $27,820 $20,700 $47,495 $63,840 $224,735
Subtotal Consultant Cost $224,735
Miscellaneous Project Expenses $265
Estimated Project Total $225,000
BERK Consulting FCS GROUP
Total Hours and
Estimated Cost
by Task
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
PROPOSAL · SUBMITTED JUNE 2, 2023 1927
References
BERK References
Port Townsend Financial Sustainability Plan 2023
Connie Anderson, Director of Finance and Technology, City of Port Townsend,
(360) 379-4403, canderson@cityofpt.us
Town of Woodway Point Wells Annexation Study
Eric Faison, Town Administrator, Town of Woodway, (206) 542-4443,
eric@townofwoodway.com
Pierce County Road Funds Sustainability
Bill Vetter, Senior Legislative Analyst, Pierce County, (253) 798-2330,
Bill.vetter@piercecountywa.gov
FCS GROUP References
Oak Harbor Water, Sewer, Storm Drain, and Solid
Waste Rate and SDC Study 2022
Steve Schuller, Public Works Director, City of Oak Harbor, (360) 279-4751,
sschuller@oakharbor.org
City of Vancouver Water, Sewer and Storm Drainage
Cost-of-Service Rate and SDC Study 2019
Chris Malone, Public Works Finance and Asset Manager, City of Vancouver,
(360) 487-7711, chris.malone@cityofvancouver.us
City of Bothell Water, Sewer, and Stormwater Rate and CFC Study 2017-2023
Boyd Benson, Utilities & Development Services Manager, City of Bothell,
(425) 806-6789, boyd.benson@bothellwa.gov
PROPOSAL · SUBMITTED JUNE 2, 2023 20
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
28
Completed Reports
We have included links to the following completed reports:
City of Auburn Fiscal Sustainability Memo and Presentation Materials (BERK).
City of Brier Financial Condition Memo and Presentation Materials (BERK).
City of Oak Harbor Rate and SDC Study (FCS GROUP).
PROPOSAL · SUBMITTED JUNE 2, 2023 21
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
29
30
Appendix A: Staff Resumes
31
32
Education
M.B.A., University of
Washington, selected for
Beta Gamma Sigma Honor
Society
B.A., Politics, University of
California at Santa Cruz,
graduated with honors
Brian Murphy (Project Manager, BERK) is a Principal at BERK with more
than 20 years of experience in strategic and business planning, facilitation,
and management consulting. He specializes in creating actionable plans
based on extensive data analysis for state, regional, and local government
organizations. He led development of the City of Tukwila Strategic Plan
and the Police Department Strategic Plan. He is serving as Principal in
Charge for the City of Port Townsend Financial Sustainability Plan and
recently supported the City of Brier Financial Condition Scenarios Analysis
related to fire district annexation. He was the Task Manager for the City of
Kirkland 85th Station Area Plan financial analysis.
Brian joined the firm in 2002 and is a skilled manager of complex analytic
and planning projects with many moving pieces and nuanced policy choices.
Brian received a B.A. with Honors from UC Santa Cruz and an M.B.A. from
the University of Washington, where he led the school’s Net Impact chapter.
Previously, he was a program director for Volunteers in Asia, a non-profit
cross-cultural exchange organization based at Stanford University. He is a
2003 graduate of leadership Tomorrow.
Relevant Project Experience
City of Tukwila Strategic Plan
City of Tukwila Police Strategic Plan
City of Brier Financial Condition Scenarios Analysis
City of Port Townsend Financial Sustainability Plan
City of Kirkland 85th Station Area Plan Financial Analysis
City of Stanwood Parks & Recreation Department Feasibility Study
Puget Sound Regional Fire Authority Strategic Plan
South County Fire & Rescue Cost Model Analysis
City of Ridgefield Police Services Study
Skagit County Public Utility District 1 Strategic Plan + Update
PROPOSAL · SUBMITTED JUNE 2, 2023 A-1
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
33
Education
Master of Public Policy,
University of California,
los Angels
B.A., International Relations
and French, University of
Southern California
Katherine Goetz (Plan Task Lead, BERK) has over 14 years of experience
in local government, where she specialized in financial analysis, policy
analysis, budget development and review, and process improvement.
Katherine is currently managing the City of Port Townsend Financial
Sustainability Taskforce and Pierce County Road Fund Sustainability Study
and Capital Facilities Plan. She recently completed an annexation financial
analysis for the Town of Woodway and a financial analysis for a planning
study in the City of West Richland.
Prior to joining BERK, Katherine worked for the City of Bellevue and the
cities of Newport News and Norfolk in Virginia. Katherine earned her
B.A. in International Relations and French from the University of Southern
California and a Master of Public Policy from the luskin School of Public
Affairs at the University of California, los Angeles.
Relevant Project Experience
City of Port Townsend Financial Sustainability Plan
Pierce County Road Fund Sustainability Study
Pierce County Capital Facilities Plan
Town of Woodway Point Wells Annexation Analysis
City of West Richland lewis & Clark Ranch Subarea Plan &
Environmental Impact Statement
City of Ridgefield Police Services Study
PROPOSAL · SUBMITTED JUNE 2, 2023 A-2
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
34
Education
M.P.A., University of
Washington
B.B.A., Marketing,
University of Notre Dame
Oliver Hirn (Lead Analyst, BERK) specializes in municipal finance and
budgeting for local government agencies. He is supporting the City of Port
Townsend on the Financial Sustainability Taskforce and the Pierce County
Road Fund Feasibility Study. Oliver is also working on the Pierce County
Parks, Recreation, and Open Space Plan Update with the FCS GROUP.
Prior to joining BERK, he worked with a local human services organization
to raise funds and apply for grant funding. He also interned for a South
African leadership organization to support a small business crowdfunding
campaign. During graduate school, he worked on public sector financing
and financial modeling projects for several local jurisdictions. Oliver has a
Master of Public Administration from the Evans School of Public Policy &
Governance at the University of Washington and a Bachelor of Business
Administration from the University of Notre Dame.
Relevant Project Experience
City of Port Townsend Financial Sustainability Plan
Pierce County Road Fund Sustainability Study
City of Poulsbo Public Facilities Market Analysis
Pierce County Parks, Recreation, and Open Space Plan Update
PROPOSAL · SUBMITTED JUNE 2, 2023 A-3
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
35
Education
B.A., Economics, yale
University
Ariel Hsieh (Supporting Analyst, BERK) is a data and research analyst
with a background in finance and compliance. She specializes in analyzing
large datasets and then translating that information into charts, graphs,
and memos for a variety of audiences. Prior to joining BERK, she worked
at NERA Economic Consulting in New york and was a Research Assistant
at the yale Sc hool of Management. She has a B.A. in Economics from yale
University and is an active volunteer in her local community.
Relevant Project Experience
Antitrust Risk Mergers (at a prior firm)
Waste Facilities Management Practices (at a prior firm)
Antitrust Economic Analysis, yale University
PROPOSAL · SUBMITTED JUNE 2, 2023 A-4
CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
36
1
John Ghilarducci
PRESIDENT AND
PRINCIPAL-IN-CHARGE
EDUCATION
MPA, Organization and Management,
University of Washington
BS, Economics, University of Oregon
WORK HISTORY
35 years (since 1988)
professional experience
Joined FCS GROUP in 1991
HIGHLIGHTED EXPERTISE
• System Development
Charges (SDCs)
• Water, Sewer, Stormwater, &
Transportation Utility Rates
• Stormwater and Transportation
Utility Formations
• Transportation Funding
• Comprehensive Plans
Financial Elements
• Litigation Support/Expert Witness
• Financial/Feasibility Studies
• Special Cost of Service
PROFESSIONAL AFFILIATIONS
• American Water Works Association
• American Public Works Association
• Oregon Government Finance
Offi cers Association
• League of Oregon Cities
John Ghilarducci is an FCS GROUP President, principal and shareholder with over
35 years of professional experience including 32 years with the fi rm. His practice
focuses on all aspects of utility and general services system development charges
(SDCs) and fi nancial rate studies, from technical modeling and public involvement
to ordinance draft ing and implementation. He has formed stormwater and
transportation utilities and has developed water, sewer, stormwater, transportation
and parks rates and charges for dozens of clients. John is a recognized technical
rate and fi nance expert and provides litigation support/expert witness testimony
throughout the Northwest. Relevant regional project experience includes:
John off ers a broad
knowledge of public
policy and fi nance, and a
thorough understanding
of the institutional issues
and options underlying the
formation of utilities and
the design of supporting
rate and charge structures.
BAINBRIDGE ISLAND | Water, Sewer, and Stormwater Rate Studies
BOTHELL | Water, Sewer and Stormwater Rate and SDC Studies
CAMAS | Water, Sewer, Stormwater and Solid Waste Rate Study
CHEHALIS | Water, Wastewater and Stormwater Rate Study
EDMONDS | Water, Sewer, and Stormwater Rate and SDC Study
ENUMCLAW | Water, Sewer and Stormwater Rate and SDC Studies
EVERETT | Water and Sewer Connection Charge Update and Model Review
FEDERAL WAY | Stormwater Comprehensive Plan Financial Analysis
FIFE | Water, Sewer, and Stormwater Rate Studies
ISSAQUAH | Water Rate and SDC Study
KELSO | Water, Sewer, and Stormwater Rate Study
KENT | Stormwater and Water Rate Policy Evaluation
KING COUNTY | Stormwater Management Rate Evaluation
KIRKLAND | Water, Sewer, and Stormwater Rate Studies
LYNNWOOD | Water, Sewer and Stormwater Rate Study
NORTH BEND | Water and Sewer Rate and SDC Study and Update
OAK HARBOR | Water, Sewer, Stormwater and Solid Waste Rate Study
REDMOND | Water, Sewer, and Stormwater Rate and SDC Studies
RENTON | Water, Wastewater and Surface Water Study and SDC Studies
SNOQUALMIE | Water, Sewer and Stormwater Rate and SDC Study
SUMNER | Water, Sewer and Stormwater Rate Study
TACOMA | Water Cost of Service Rates
VANCOUVER | Water, Sewer, and Stormwater Rate Studies
WALLA WALLA | Water, Sewer and Stormwater Rate and SDC Study
WASHOUGAL | Water, Sewer, and Stormwater Rate Study
CONTACT
JohnG@fcsgroup.com
(425) 336-1865
37
1
Zech Hazel
PROJECT CONSULTANT
EDUCATION
BA, Mathematics,
Willamett e University
WORK HISTORY
Four years (since 2019)
professional experience
Joined FCS GROUP in 2019
HIGHLIGHTED EXPERTISE
• Rate Studies and Cost of
Service Analysis (Water,
Sewer, and Stormwater)
• System Development
Charges (SDCs)
• Impact Fees Development
• Economic Opportunity /
Housing Needs Analysis
• Data Collection and Research
• Financial Planning
Zech Hazel is an FCS GROUP project consultant with four years of experience in data
collection, research, spreadsheet modeling and analysis for economic studies and
rate development for water, sewer, transportation, parks, and stormwater utilities.
Zech has assisted clients throughout the Pacifi c Northwest with
housing needs analysis, economic impacts, revenue requirement and
cost-of-service studies, multi-year fi nancial planning, and connection
fee development. Relevant regional experience includes:
Zech has has performed
comprehensive water,
sewer, and stormwater
rate studies, in-depth
analyses of program
fi nancial conditions,
and prepared reports
detailing the results.
WASHINGTON
FIFE | Stormwater Rate and SDC Study
LAKE WHATCOM WATER SEWER DISTRICT | Water and Sewer GFC Study
PIERCE COUNTY | Surface Water Rate Study
POULSBO | Sewer Plan Financial Analysis
SPOKANE | Stormwater Rate Study
SULTAN | Water, Sewer and Stormwater Rate, and GFC Study
THURSTON COUNTY | Water and Sewer Rate and GFC Studies
VANCOUVER | Water, Sewer and Stormwater Rate Study
OREGON
LAKE GROVE WATER DISTRICT | Water Rate Study
MEDFORD | Wastewater Rate Study
MILWAUKIE | Wastewater Plan Financial Analysis and Water SDC
MOSIER | Water and Sewer Rate and SDC Study
SALISHAN SEWER DISTRICT | Wastewater Rate Study
SANDY | Water Rate and Wastewater SDC Study
STAYTON | Water, Sewer, Stormwater and Transportation Rate Study
TIGARD | Water COSA, and Stormwater Rate and SDC Study
TROUTDALE | Water, Sewer, and Stormwater Rate and SDC Updates
TUALATIN | Water Plan Financial Analysis
MONTANA
HELENA, Montana | Water and Sewer Rates and SDCs
CONTACT
ZechariahH@fcsgroup.com
(503) 374-0688
38