HomeMy WebLinkAboutCOW 2023-07-10 COMPLETE AGENDA PACKET Tukwila City Council Agenda
COMMITTEE OF THE WHOLE
Allan Ekberg, Mayor Councilmembers: Kathy Hougardy De’Sean Quinn
David Cline, City Administrator Kate Kruller Thomas McLeod
Cynthia Delostrinos Johnson, Council President Mohamed Abdi Tosh Sharp
THE MEETING WILL BE CONDUCTED BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY.
ON-SITE PRESENCE WILL BE IN THE COUNCIL CHAMBERS (6200 SOUTHCENTER BOULEVARD).
THE PHONE NUMBER FOR THE PUBLIC TO PARTICIPATE IN THE MEETING IS:
1-253-292-9750, ACCESS CODE: 670077847#.
Click here to: U 22TUJoin Microsoft Teams MeetingU22TU
For Technical Support during the meeting call: 1-206-433-7155.
Monday, July 10, 2023; 7:00 PM
1. CALL TO ORDER / PLEDGE OF ALLEGIANCE
2. LAND
ACKNOWLEDGEMENT
The City of Tukwila is located on the ancestral lands of the Coast Salish people.
We acknowledge their continuing connections to land, waters and culture.
We pay our respects to their elders past, present and emerging.
3. PUBLIC COMMENTS
Including comment
on items both on and
not on the meeting
agenda
Those wishing to provide public comments may verbally address the City Council
both on-site at Tukwila City Hall or via phone or Microsoft Teams for up to
5 minutes for items both on and not on the meeting agenda.
To provide comment via phone or Microsoft Teams, please email
citycouncil@tukwilawa.gov with your name and topic by 5:00 PM on the meeting
date. Please clearly indicate that your message is for public comment during the
meeting, and you will receive further instructions.
4. PRESENTATION Get to Know Puget Sound Fire (PSF): Community Relations.
Division Chief Pat Pawlak, Puget Sound Fire (PSF)
Pg.1
5. SPECIAL ISSUES a. Fourth of July After Action Report.
b. A contract for a Comprehensive Financial Sustainability Plan.
Pg.13
Pg.15
6. REPORTS a. Mayor
b. City Council
c. Staff
7. MISCELLANEOUS
8. EXECUTIVE SESSION
9. ADJOURN TO SPECIAL MEETING
(continued…)
COMMITTEE OF THE WHOLE MEETING
July 10, 2023
Page 2
SPECIAL MEETING
Ord #2706 Res #2074
1. CALL TO ORDER / ROLL CALL
2. CONSENT AGENDA a. Approval of Minutes: 6/26/23 (Special Mtg.)
b. Approval of Vouchers
c. A resolution adopting the South King Housing and Homelessness
Partners’ 2024 Work Plan and 2024 Operating Budget.
[Reviewed and forwarded to Consent by the Committee of the Whole
on 6/26/23.]
d. Authorize the Mayor to sign a lease agreement with Dell Financial
Services, LLC for the 2023 City laptop refresh, in an amount not
to exceed $125,778.71.
[Reviewed and forwarded to Consent by the Finance and Governance
Committee on 6/26/23.]
Pg.69
Pg.81
3. NEW BUSINESS For discussion of Consent Agenda items only, if necessary.
4. ADJOURNMENT
This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities.
Remote Tukwila Council meetings are audio taped (and video taped as of 9/14/20). Available at www.tukwilawa.gov)
WELCOME TO THE TUKWILA CITY COUNCIL MEETING
The Tukwila City Council encourages community participation in the local government process and
welcomes attendance and public comment at its meetings.
MEETING SCHEDULE
Regular Meetings are held at 7:00 p.m. on the 1st and 3rd Mondays of each month. The City Council takes
formal action in the form of motions, resolutions and ordinances at Regular Meetings.
Committee of the Whole Meetings are held at 7:00 p.m. on the 2nd and 4th Mondays of each month. The
City Council considers current issues, discusses policy matters in detail, and coordinates the work of
the Council at Committee of the Whole meetings.
PUBLIC COMMENTS
Members of the public are given the opportunity to address the Council for up to 5 minutes on items both on
and not on the meeting agenda during Public Comment s. The City Council will also accept comments on an
agenda item when the item is presented in the agenda, but speakers are limited to commenting once per
item each meeting.
When recognized by the Presiding Officer, please go to the podium if on-site or turn on your microphone if
attending virtually and state your name clearly for the record. The City Council appreciates hearing from you
but may not respond or answer questions during the meeting. Members of the City Council or City staff may
follow up with you following the meeting.
PUBLIC HEARINGS
Public Hearings are required by law before the Council can take action on matters affecting the public
interest such as land-use laws, annexations, rezone requests, public safety issues, etc. The City Council
Rules of Procedure provide the following guidelines for Public Hearings:
1. City staff will provide a report summarizing and providing context to the issue at hand.
2. The proponent shall speak first and is allowed 15 minutes to make a presentation.
3. The opponent is then allowed 15 minutes to make a presentation.
4. Each side is then allowed 5 minutes for rebuttal.
5. After the proponents and opponents have used their speaking time, the Council may ask further
clarifying questions of the speakers.
6. Members of the public who wish to address the Council on the hearing topic may speak for 5
minutes each.
7. Speakers are asked to sign in on forms provided by the City Clerk.
8. The Council may ask clarifying questions of speakers and the speakers may respond.
9. Speakers should address their comments to the City Council.
10. If a large number of people wish to speak to the issue, the Council may limit the total amount of
comment time dedicated to the Public Hearing.
11. Once the Presiding Officer closes the public hearing, no further comments will be accepted, and the
issue is open for Councilmember discussion.
12. Any hearing being held or ordered to be held by the City Council may be continued in the manner as
set forth by RCW 42.30.100.
For more information about the City Council, including its complete Rules of
Procedure, please visit: https://www.tukwilawa.gov/departments/city-council/
Community Relations
Presented to Tukwila City Council July 10, 2023
1
Community Relations Division
•Division Chief Pat Pawlak
Community Risk Reduction
400 West Gowe, Ste. 414
Kent, WA 98032
Phone: (253) 856-4400
Fax: (253) 856-6301
Email:fireprevention@pugetsoundfire.org
Public Information Officer
Division Chief Pat Pawlak
Cell: (206) 949-3039
Office: (253) 856-4405
On-duty PIO: (206) 972-40822
Community Relations Division Goals
•Share our story, including the variety of
emergency and non-emergent services
we provide and the value we generate.
•Strengthen partnerships with
community organizations.
•Recruit a staff that is representative of
the communities we serve. 3
Future Women in EMS/FIRE4
Fire Station 54 Open House
5
High School Graduation
Senior Congrats!
Visit each local school
to say “Hi” and
Congratulate seniors
on their graduation!6
Biscuits for Heroes 2023
with our friends from Chick-fil-a
7
“Drive By” Opportunity
Birthday party8
2023 World Refugee Day
Foster High School
9
Community Engagements
•Tukwila Easter Egg Hunt
•Tukwila Summer Staff
onboarding and training day
•National Night Out
•Station tour with student with
special needs
•Tour of Station 52 for HAM
radio group
•Girl scout tour of Station 5210
Future Community Events
•Pop-up Open House at Station
52 –July -TBD
•Public First Aid/CPR/AED class at
Station 52 –August 12th
•Child car seat inspection at
Station 52 –August 24th
•Meet with Tukwila’s Equity And
Social Justice Commission –TBD
•Touch a Truck event at Valley
Ridge Park. -September 10th
11
Questions12
ITEM INFORMATION
STAFF SPONSOR: Police, Fire, P&R ORIGINAL AGENDA DATE: 7/10/23
AGENDA ITEM TITLE 2023 Fourth of July After Action Report
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 7/10/23 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY Annual report from the Police Department and Puget Sound Fire concerning data
and activities for the 2023 Fourth of July season. Parks & Recreation will be
providing additional information.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN. Police, Puget Sound Fire, and P&R
COMMITTEE Discussion only
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
7/10/23
MTG. DATE ATTACHMENTS
7/10/23 No attachments
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
7/10/23 AY 5.A.
13
14
ITEM INFORMATION
STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 7/10/23
AGENDA ITEM TITLE Contract for Comprehensive Financial Sustainability Plan
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 7/10/23 Mtg Date 7/17/23 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY Staff is requesting approval to sign a contract with Berk, partnering with FCS Group for
development of a comprehensive financial sustainability plan and utility rate study for an
amount not to exceed $225,000.00
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: 6/26/23 COMMITTEE CHAIR: KRULLER
RECOMMENDATIONS:
SPONSOR/ADMIN. Finance Department
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$225,000 $225,000 $
Fund Source: GENERAL FUND & UTILITY FUNDS
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
7/10/23
7/17/23
MTG. DATE ATTACHMENTS
7/10/23 Informational Memorandum dated 6/20/23
Proposal
Contract (added after 6/26 FIN Committee meeting)
Minutes from the 6/26 Finance and Governance Committee meeting
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
7/10 AY
7/17 AY
Unanimous Approval; Forward to Committee of the Whole
7/17/23
5.B.
15
16
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
17
18
City of TukwilaCOMPREHENSIVE FINANCIAL SUSTAINABILITY PLAN AND UTILITY RATE STUDY
SUBMITTED
PROPOSAL
JUNE 2, 2023
19
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
20
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
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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
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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
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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
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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
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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,
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CITY OF TUKwILA · COMPREHENSIVE FINANCIAl SUSTAINABIlITy PlAN AND UTIlITy RATE STUDy
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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).
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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
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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.
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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.
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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.
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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
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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.
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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
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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.
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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.
36
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.
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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.
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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
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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
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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).
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Appendix A: Staff Resumes
42
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
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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
44
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
45
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
46
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
47
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
48
City of Tukwila Contract Number:
6200 Southcenter Boulevard, Tukwila WA 98188
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter
referred to as “the City”, and Berk Consulting, Inc, 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 services in connection
with the project titled Long-Range Financial Sustainability Plan and Utility Rate Study.
2. Scope of Services. The Consultant agrees to perform the services, identified in 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 June 30, 2024, unless sooner
terminated under the provisions hereinafter specified. Work under this Agreement shall
commence upon written notice by the City to the Consultant to proceed. The Consultant shall
perform all services and provide all work product required pursuant to this Agreement no later
than April 30, 2024 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 $225,000 without express written modification of the Agreement signed by the
City.
B. The Consultant may submit vouchers to the City once per month during the progress of
the work for partial payment for that portion of the project completed to date. Such
vouchers will be checked by the City and, upon approval thereof, payment shall be made
to the Consultant in the amount approved.
C. Final payment of any balance due the Consultant of the total contract price earned will be
made promptly upon its ascertainment and verification by the City after the completion of
the work under this Agreement and its acceptance by the City.
D. Payment as provided in this section shall be full compensation for work performed,
services rendered, and for all materials, supplies, equipment and incidentals necessary to
complete the work.
E. The Consultant’s records and accounts pertaining to this Agreement are to be kept
available for inspection by representatives of the City and the state of Washington for a
period of three (3) years after final payments. Copies shall be made available upon
request.
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CA revised May 2020 Page 2
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 rendered under this Agreement.
7. Indemnification. The Consultant shall defend, indemnify and hold the City, its officers,
officials, employees and volunteers harmless from any and all claims, injuries, damages,
losses or suits including attorney fees, arising out of or resulting from the acts, errors or
omissions of the Consultant in performance of this Agreement, except for injuries and damages
caused by the sole negligence of the City.
Should a court of competent jurisdiction determine that this Agreement is subject to RCW
4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or
damages to property caused by or resulting from the concurrent negligence of the Consultant
and the City, its officers, officials, employees, and volunteers, the Consultant’s liability
hereunder shall be only to the extent of the Consultant’s negligence. It is further specifically
and expressly understood that the indemnification provided herein constitutes the Consultant's
waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this
indemnification. This waiver has been mutually negotiated by the parties. The provisions of
this section shall survive the expiration or termination of this Agreement.
8. Insurance. The Consultant shall procure and maintain for the duration of the Agreement,
insurance against claims for injuries to persons or damage to property which may arise from
or in connection with the performance of the work hereunder by the Consultant, its agents,
representatives, or employees. Consultant’s maintenance of insurance as required by the
agreement shall not be construed to limit the liability of the Consultant to the coverage provided
by such insurance, or otherwise limit the City’s recourse to any remedy available at law or in
equity.
A. Minimum Amounts and Scope of Insurance. Consultant shall obtain insurance of the
types and with the limits described below:
1. Automobile Liability insurance with a minimum combined single limit for bodily injury
and property damage of $1,000,000 per accident. Automobile Liability insurance
shall cover all owned, non-owned, hired and leased vehicles. Coverage shall be
written on Insurance Services Office (ISO) form CA 00 01 or a substitute form
providing equivalent liability coverage. If necessary, the policy shall be endorsed to
provide contractual liability coverage.
2. Commercial General Liability insurance with limits no less than $2,000,000 each
occurrence, $2,000,000 general aggregate. Commercial General Liability
insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall
cover liability arising from premises, operations, stop-gap independent contractors
and personal injury and advertising injury. The City shall be named as an
additional insured under the Consultant’s Commercial General Liability insurance
policy with respect to the work performed for the City using an additional insured
endorsement at least as broad as ISO endorsement form CG 20 26.
3. Workers’ Compensation coverage as required by the Industrial Insurance laws of
the State of Washington.
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CA revised May 2020 Page 3
4. Professional Liability with limits no less than $2,000,000 per claim and $2,000,000
policy aggregate limit. Professional Liability insurance shall be appropriate to the
Consultant’s profession.
B. Public Entity Full Availability of Contractor Limits. If the Contractor maintains higher
insurance limits than the minimums shown above, the Public Entity shall be insured for the
full available limits of Commercial General and Excess or Umbrella liability maintained by
the Contractor, irrespective of whether such limits maintained by the Contractor are greater
than those required by this Contract or whether any certificate of insurance furnished to
the Public Entity evidences limits of liability lower than those maintained by the Contractor.
C. Other Insurance Provision. The Consultant’s Automobile Liability and Commercial
General Liability insurance policies are to contain, or be endorsed to contain that they shall
be primary insurance with respect to the City. Any Insurance, self-insurance, or insurance
pool coverage maintained by the City shall be excess of the Consultant’s insurance and
shall not be contributed or combined with it.
D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best rating of not less than A:VII.
E. Verification of Coverage. Consultant shall furnish the City with original certificates and a
copy of the amendatory endorsements, including but not necessarily limited to the
additional insured endorsement, evidencing the insurance requirements of the Contractor
before commencement of the work. Upon request by the City, the Consultant shall furnish
certified copies of all required insurance policies, including endorsements, required in this
Agreement and evidence of all subcontractors’ coverage.
F. Notice of Cancellation. The Consultant shall provide the City with written notice of any
policy cancellation, within two business days of their receipt of such notice.
G. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the
insurance as required shall constitute a material breach of contract, upon which the City
may, after giving five business days notice to the Consultant to correct the breach,
immediately terminate the contract or, at its discretion, procure or renew such insurance
and pay any and all premiums in connection therewith, with any sums so expended to be
repaid to the City on demand, or at the sole discretion of the City, offset against funds due
the Consultant from the City.
9. Independent Contractor. The Consultant and the City agree that the Consultant is an
independent contractor with respect to the services provided pursuant to this Agreement.
Nothing in this Agreement shall be considered to create the relationship of employer and
employee between the parties hereto. Neither the Consultant nor any employee of the
Consultant shall be entitled to any benefits accorded City employees by virtue of the services
provided under this Agreement. The City shall not be responsible for withholding or otherwise
deducting federal income tax or social security or for contributing to the state industrial
insurance program, otherwise assuming the duties of an employer with respect to the
Consultant, or any employee of the Consultant.
10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or
retained any company or person, other than a bonafide employee working solely for the
Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any
company or person, other than a bonafide employee working solely for the Consultant, any
fee, commission, percentage, brokerage fee, gifts, or 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.
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CA revised May 2020 Page 4
11. Discrimination Prohibited. Contractor, with regard to the work performed by it under this
Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin,
age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation,
the presence of any disability, or any other protected class status under state or federal law,
in the selection and retention of employees or procurement of materials or supplies.
12. Assignment. The Consultant shall not sublet or assign any of the services covered by this
Agreement without the express written consent of the City.
13. Non-Waiver. Waiver by the City of any provision of this Agreement or any time limitation
provided for in this Agreement shall not constitute a waiver of any other provision.
14. Termination.
A. The City reserves the right to terminate this Agreement at any time by giving ten (10) days
written notice to the Consultant.
B. In the event of the death of a member, partner or officer of the Consultant, or any of its
supervisory personnel assigned to the project, the surviving members of the Consultant
hereby agree to complete the work under the terms of this Agreement, if requested to do
so by the City. This section shall not be a bar to renegotiations of this Agreement between
surviving members of the Consultant and the City, if the City so chooses.
15. Applicable Law; Venue; Attorney’s Fees. This Agreement shall be subject to, and the
Consultant shall at all times comply with, all applicable federal, state and local laws,
regulations, and rules, including the provisions of the City of Tukwila Municipal Code and
ordinances of the City of Tukwila. In the event any suit, arbitration, or other proceeding is
instituted to enforce any term of this Agreement, the parties specifically understand and agree
that venue shall be properly laid in King County, Washington. The prevailing party in any such
action shall be entitled to its attorney’s fees and costs of suit. Venue for any action arising
from or related to this Agreement shall be exclusively in King County Superior Court.
16. Severability and Survival. If any term, condition or provision of this Agreement is declared
void or unenforceable or limited in its application or effect, such event shall not affect any other
provisions hereof and all other provisions shall remain fully enforceable. The provisions of this
Agreement, which by their sense and context are reasonably intended to survive the
completion, expiration or cancellation of this Agreement, shall survive termination of this
Agreement.
17. Notices. Notices to the City of Tukwila shall be sent to the following address:
City Clerk
City of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188
Notices to Consultant shall be sent to the following address:
_______________________________________
_______________________________________
_______________________________________
18. Entire Agreement; Modification. This Agreement, together with attachments or addenda,
represents the entire and integrated Agreement between the City and the Consultant and
supersedes all prior negotiations, representations, or agreements written or oral. No
amendment or modification of this Agreement shall be of any force or effect unless it is in
writing and signed by the parties.
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CA revised May 2020 Page 5
DATED this _________ day of ____________________________, 20_____.
** City signatures to be obtained by
City Clerk’s Staff ONLY. **
CITY OF TUKWILA
Allan Ekberg, Mayor
ATTEST/AUTHENTICATED:
Christy O’Flaherty, City Clerk
APPROVED AS TO FORM:
Office of the City Attorney
** Consultant signature to be obtained by
sponsor staff. **
CONSULTANT:
By:
Printed Name:
Title:
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CA revised May 2020 Page 6
EXHIBIT A – SCOPE OF SERVICES
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.
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
54
CA revised May 2020 Page 7
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 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,
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CA revised May 2020 Page 8
partners, and community members. The document will be as concise as 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,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
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CA revised May 2020 Page 9
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).
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.
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CA revised May 2020 Page 10
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 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.
58
City of Tukwila
Comprehensive Financial Sustainability Plan and UƟlity Rate Study | Scope of Work July 2023 1
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.
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.
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City of Tukwila
Comprehensive Financial Sustainability Plan and UƟlity Rate Study | Scope of Work July 2023 2
APPROACH
The tasks below outline our scope of work.
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.
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
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City of Tukwila
Comprehensive Financial Sustainability Plan and UƟlity Rate Study | Scope of Work July 2023 3
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
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 possible, using wayfinding and document structure to place
61
City of Tukwila
Comprehensive Financial Sustainability Plan and UƟlity Rate Study | Scope of Work July 2023 4
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, 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.
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City of Tukwila
Comprehensive Financial Sustainability Plan and UƟlity Rate Study | Scope of Work July 2023 5
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).
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.
63
City of Tukwila
Comprehensive Financial Sustainability Plan and UƟlity Rate Study | Scope of Work July 2023 6
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 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.
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City of Tukwila
Comprehensive Financial Sustainability Plan and UƟlity Rate Study | Scope of Work July 2023 7
BUDGET
The table below outlines our anticipated level of effort by person by task. We will invoice monthly on a time and
materials basis to a not-to-exceed limit of $225,000.
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
65
66
City of Tukwila
City Council Finance & Governance Committee
Meeting Minutes
June 26, 2023 – 5:30 p.m. – Hybrid Meeting; Duwamish Conference Room & MS Teams
Councilmembers Present: Kate Kruller, Chair; Kathy Hougardy, De’Sean Quinn
Staff Present: Laurel Humphrey, Vicky Carlsen, Joel Bush, Griffin Lerner
I.BUSINESS AGENDA
A.Lease Agreement: Dell Laptop Refresh
Staff is seeking approval to enter into a three-year lease agreement with Dell Financial Services
in the amount of $125,778.71 for employee laptops. Councilmembers suggested disposition of
the existing laptops in a way to benefit local youth.
Committee Recommendation
Unanimous approval. Forward to July 10, 2023 Special Consent Agenda.
B.Contract: Comprehensive Financial Sustainability Plan & Utility Rate Study
Staff is seeking approval of a contract with Berk in partnership with FCS Group for
development of the plan and study in an amount not to exceed $225,000. Suggestions from
Councilmembers included involving Council committees, using plain language, and
identifying potential legislative solutions.
Committee Recommendation
Unanimous approval. Forward to July 10, 2023 Committee of the Whole.
MISCELLANEOUS
The meeting adjourned at 5:57 p.m.
Committee Chair Approval
67
68
ITEM INFORMATION
STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 6/26/23
AGENDA ITEM TITLE Resolution adopting 2024 South King Housing and Homeless Partners Work Plan and
Operating Budget
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 6/26/23 Mtg Date Mtg Date 7/10/23 Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY In accordance with the Interlocal Agreement, the annual SKHHP work plan and budget
must be approved by the legislative body of each member jurisdiction in addition to the
SKHHP Executive Board.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
6/26/23
7/10/23
MTG. DATE ATTACHMENTS
6/26/23 Informational Memo dated 6/20/23
Draft Resolution
7/10/23
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
6/26/23 LH
7/10/23 LH
PowerPoint
Forwarded to 7/10 Special Meeting Consent Agenda
Final Resolution & Attachments
Spec 2.C.
69
70
City of Tukwila
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, ADOPTING THE SOUTH
KING HOUSING AND HOMELESSNESS PARTNERS’
2024 WORK PLAN AND 2024 OPERATING BUDGET.
WHEREAS, on February 21, 2019, the City of Tukwila entered into an Interlocal
Agreement (ILA) with 8 other south King County cities and King County to form the South
King Housing and Homelessness Partners (SKHHP); and
WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must
approve an annual work plan each year to guide the work of SKHHP staff; and
WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must
approve SKHHP’s annual budget that includes an itemization of all categories of
budgeted expenses and itemization of each Party’s contribution, including in-kind
services; and
WHEREAS, the purpose of the annual work plan and budget is to provide
management and budget guidance, and to implement the overarching SKHHP goals to
work together and share resources to increase the available options for south King
County residents to access affordable housing and to preserve the existing affordable
housing stock; and
WHEREAS, on May 19, 2023, the SKHHP Executive Board adopted Resolution No.
2023-01 adopting the 2024 SKHHP Work Plan and 2024 SKHHP Operating Budget
effective upon approval by the legislative body of each participating jurisdiction;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The City Council adopts the 2024 South King Housing and Homelessness
Partners Work Plan and 2024 Operating Budget, hereby incorporated by reference as
“Attachment A.”
CC:\Legislative DevelopmentVSKHHP 2024 Work Plan and Operating Budget 6-15-23
Laurel Humphrey: Review by Andy Youn Page 1 of 2
71
CC:\Legislative Development\SKHHP 2024 Work Plan and Operating Budget 6-15-23
Laurel Humphrey: Review by Andy Youn Page 2 of 2
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Special Meeting thereof this ________ day of ____________________, 2023.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC Cynthia Delostrinos Johnson
City Clerk Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Office of the City Attorney
Attachment A: South King Housing and Homelessness Partners Resolution No. 2023-
01, dated May 22, 2023, with Attachment A (SKHHP 2024 Work Plan)
and Attachment B (2024 SKHHP Operating Budget)
72
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Resolution No. 2023-01
May 19, 2023
Page 1 of 7
RESOLUTION NO. 2023-01
A RESOLUTION OF THE EXECUTIVE BOARD OF THE SOUTH KING HOUSING AND
HOMELESSNESS PARTNERS (SKHHP), ADOPTING THE 2024 SKHHP WORK PLAN AND
OPERATING BUDGET
WHEREAS, pursuant to the Interlocal Agreement, the SKHHP Executive Board approves
an annual work plan and budget each year to guide the work of SKHHP staff; and
WHEREAS, pursuant to the Interlocal Agreement, the annual budget includes an
itemization of all categories of budgeted expenses and itemization of each Party’s contribution,
including in-kind services; and
WHEREAS, upon adoption by the Executive Board, the annual work plan and budget will
be transmitted to each participating jurisdiction for approval by their legislative body; and
WHEREAS, the budget will not become effective until approved by the legislative body of
each jurisdiction and adopted by the SKHHP Executive Board; and
WHEREAS, if a party does not approve the work plan or budget in a timely manner, the
Executive Board may adopt the budget and work plan with a two-thirds majority vote; and
WHEREAS, the purpose of the annual work plan and budget is to provide management
and budget guidance, and implement the overarching SKHHP mission to work together and
share resources to increase the available options for South King County residents to access
affordable housing and to preserve the existing affordable housing stock; and
WHEREAS, the 2024 work plan includes four goals with corresponding action items that
further SKHHP’s mission.
NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows:
Section 1. The Executive Board adopts the 2024 SKHHP Work Plan in Attachment A.
Section 2. The Executive Board adopts the 2024 SKHHP Operating Budget in Attachment B.
Section 3. Each party’s contribution to SKHHP’s operating budget will be transmitted on an
annual basis during the first quarter of the calendar year.
Section 4. This Resolution will take effect and be in full force upon approval by the legislative
body of each participating jurisdiction.
Dated and Signed this __22nd_day of _____May, 2023
_________________________
NANCY BACKUS, CHAIR, SOUTH KING HOUSING AND HOMELESSNESS PARTNERS
73
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Resolution No. 2023-01
May 19, 2023
Page 2 of 7
RESOLUTION 2023-01 – ATTACHMENT A
SKHHP 2024 WORK PLAN
PURPOSE
Establish a 2024 SKHHP work plan and budget that is guided by Executive Board priorities, is
consistent with the SKHHP Interlocal Agreement, and furthers SKHHP’s mission.
BACKGROUND
Established by an interlocal agreement, SKHHP jurisdictions work together and share resources to
increase options for South King County residents to access affordable housing and preserve existing
affordable housing. The 2024 SKHHP work plan builds on work done in previous years and was
developed in collaboration with the Executive Board, Advisory Board, and staff work group.
The work plan is organized into four goals with corresponding objectives and action items. Each action
is identified by priority as follows:
• Higher – Identified as higher priority by Executive Board or is necessary to carry out the Interlocal
Agreements
• Medium – Identified as mid-level priority
• Lower – Identified as lower priority
Quarterly budget and progress reports on the status of the work plan elements will be submitted to the
SKHHP Executive Board and the legislative body of each member jurisdiction as follows:
Quarter 1: May | Quarter 2: August | Quarter 3: November | Quarter 4: February
In accordance with the Interlocal Agreement, the 2024 SKHHP work plan and budget will be approved
by the SKHHP Executive Board and the legislative body of each member jurisdiction.
SKHHP MISSION
South King County jurisdictions working together and sharing resources to create a coordinated,
comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and
producing and preserving quality affordable housing in South King County.
GOALS & OBJECTIVES
Number Goal Objective
1 Fund the expansion and
preservation of affordable housing.
Coordinate public resources to attract
greater private and public investment for
affordable housing in South King County.
2 Develop policies to expand and
preserve affordable housing.
Share technical information and resources
to promote sound housing policy.
3 Serve as advocate for South King
County.
Provide a unified voice to advocate for
South King County needs at a local,
regional, and state level.
4 Manage operations and
administration.
Sustain operational commitments and
Interlocal Agreement requirements.
74
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Resolution No. 2023-01
May 19, 2023
Page 3 of 7
Goal 1
Fund the expansion and preservation of affordable housing.
Actions
Priority of Actions
••• = Higher
•• = Medium
• = Lower
1. Develop a long-term funding strategy for the Housing Capital Fund and
facilitate conversations with member jurisdictions to identify and
explore dedicated sources of revenue for affordable housing at the
local and regional level.
•••
2. Pool resources from member jurisdictions for the Housing Capital Fund,
including SHB 1406 and HB 1590 funds.
•••
3. Manage 2023 Housing Capital Fund funding round including facilitating
approval from participating Councils and preparing contract
documents.
•••
4. Manage 2024 Housing Capital Fund funding round including adopting
annual guidelines, updating application materials, soliciting proposals,
and facilitating project selection.
•••
5. Encourage investment by private investors, lenders, and philanthropies. •••
6. Work with member cities and project sponsors to start developing a
pipeline of projects to be funded over the next five years.
••
Indicators
o Number of housing units or number of projects funded with financial support from SKHHP
o Number of housing units preserved with financial support from SKHHP
o Total dollar amount pooled by member jurisdictions for Housing Capital Fund
o Total dollar amount from new sources of revenue added to the Housing Capital Fund
o Geographic diversity of applications received for annual Housing Capital Fund funding round
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-------------------------------
Resolution No. 2023-01
May 19, 2023
Page 4 of 7
Goal 2
Develop policies to expand and preserve affordable housing.
Actions
Priority of Actions
••• = Higher
•• = Medium
• = Lower
7. Develop subregional housing preservation strategies and facilitate
implementation.
•••
8. Facilitate technical assistance and updates to the Affordable Housing
Inventory Dashboard.
•••
9. Build relationships with developers to learn from their perspective the
ways to encourage housing development, especially affordable housing.
••
10. Continue to refine and update housing policy matrix. •
11. Convene land use planners to increase coordination and collaboration
on housing policy and planning.
•
12. Develop SKHHP Executive Board briefings on key housing and
homelessness topics, especially as they relate to the goals of the work
plan.
•
Indicators
o Number of preservation policies explored with members of the Executive Board
o Successful update of data and deployment of the Affordable Housing Inventory Dashboard
o Number of relationships built with developers
o Number of Executive Board briefings on key housing and homelessness topics
76
-------------------------------
Resolution No. 2023-01
May 19, 2023
Page 5 of 7
Goal 3
Serve as advocate for South King County.
Actions
Priority of Actions
••• = Higher
•• = Medium
• = Lower
13. Coordinate with the Advisory Board in collaboration with housing
organizations and stakeholder groups to provide education and
engagement opportunities for elected officials and community
members.
••
14. Work collaboratively with public funders at the state and local levels to
promote shared affordable housing goals and equitable geographic
distribution of resources.
••
15. Produce public-facing communications content that highlights South
King County through social media and newsletters.
•
16. Represent SKHHP at relevant local and regional meetings and forums
that help advance SKHHP’s mission and provide a voice for increasing
access to safe, healthy, and affordable housing in South King County.
•
Indicators
o Number of events or engagement opportunities Advisory Board members organize or
support
o Number of communications published
o Number of meetings, forums, or events attended that advance SKHHP's mission
77
-------------------------------
Resolution No. 2023-01
May 19, 2023
Page 6 of 7
Goal 4
Manage operations and administration.
Actions
Priority of Actions
••• = Higher
•• = Medium
• = Lower
17. Develop annual work plan and budget. •••
18. Generate and distribute quarterly progress reports to SKHHP Executive
Board and member jurisdictions.
•••
19. Work with administering agency to maintain records and produce
regular financial reports for the SKHHP Housing Capital Fund and SKHHP
Operating Account.
•••
20. Organize and host monthly Executive and Advisory Board public
meetings.
•••
21. Manage the Affordable Housing Inventory Dashboard contract. •••
22. Maintain and update the SKHHP website. ••
23. Advance work on SKHHP Foundation efforts to establish logistics,
administration, and pursue federal nonprofit status.
••
Indicators
o Work plan and budget adopted
o Quarterly progress reports prepared and presented to Executive Board
o Financial reports and public records maintained
o Commitments of the Affordable Housing Inventory Dashboard contract fulfilled
o Website maintained
o Application submitted for SKHHP Foundation 501c3 status
78
-------------------------------
Resolution No. 2023-01
May 19, 2023
Page 7 of 7
RESOLUTION 2023-01 – ATTACHMENT B
2024 SKHHP Operating Budget
Estimated beginning fund balance - January 1, 2024 $ 205,736
Estimated ending fund balance -December 31, 2024 $ 144,877
REVENUES Auburn $ 39,543
Burien $ 22,814
Covington $ 11,407
Des Moines $ 11,407
Federal Way $ 51,710
Kent $ 51,710
Maple Valley $ 11,407
Normandy Park $ 6,084
Renton $ 51,710
Tukwila $ 11,407
King County* $ 51,710
Additional King County* $ 23,290
Interest earnings $ 2,100
Office space (in-kind donation) $ 12,000
TOTAL REVENUES $ 358,299
Spend down balance $ 60,859
TOTAL $ 419,158
EXPENSES Salaries and benefits $ 305,344
Interfund IT $ 31,500
Advisory Board compensation $ 14,400
Office space (in-kind donation) $ 12,000
Other professional services/Misc. $ 6,400
Travel $ 5,250
Professional development $ 5,250
Supplies $ 2,000
Subtotal $ 382,144
Administering agency - 10% admin fee** $ 37,014
TOTAL $ 419,158
*King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner
jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year.
**10% administrative fee is calculated as a percentage of operating costs which excludes in-kind donations and carry-forwards.
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80
ITEM INFORMATION
STAFF SPONSOR: JOEL BUSH ORIGINAL AGENDA DATE: 7/10/23
AGENDA ITEM TITLE Dell- Laptop Refresh 2023
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date Mtg Date 7/10/23 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY The current Dell laptop lease expires in September. TIS is seeking Council authorization to
enter into a new Dell Lease Agreement to refresh our aging equipment. TIS is asking the
Council to consider this item at the 6/26/23 Committee of the Whole for discussion, then
forward to the Regular Meeting on 7/10/23, granting approval for TIS to enter into the
Dell Lease Agreement.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: 6/26/23 COMMITTEE CHAIR: KRULLER
RECOMMENDATIONS:
SPONSOR/ADMIN. Technology and Innovation Services
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$125,778.71 $322,036.98 $
Fund Source: AS004012-545006
Comments: $125,778.71 over 3 year term, or $45,501 annually, all w/o tax. This is for Laptop refresh only
MTG. DATE RECORD OF COUNCIL ACTION
7/10/23
MTG. DATE ATTACHMENTS
7/10/23 Info Memo
Dell Lease Proposal
Minutes from the 6/26 Finance and Governance Committee meeting
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
7/10/23 MM
Unanimous approval; Forward to 7/10 Special Meeting Consent Agenda
Master Lease Agreement
Spec 2.D.
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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
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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
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City of Tukwila
City Council Finance & Governance Committee
Meeting Minutes
June 26, 2023 – 5:30 p.m. – Hybrid Meeting; Duwamish Conference Room & MS Teams
Councilmembers Present: Kate Kruller, Chair; Kathy Hougardy, De’Sean Quinn
Staff Present: Laurel Humphrey, Vicky Carlsen, Joel Bush, Griffin Lerner
I.BUSINESS AGENDA
A.Lease Agreement: Dell Laptop Refresh
Staff is seeking approval to enter into a three-year lease agreement with Dell Financial Services
in the amount of $125,778.71 for employee laptops. Councilmembers suggested disposition of
the existing laptops in a way to benefit local youth.
Committee Recommendation
Unanimous approval. Forward to July 10, 2023 Special Consent Agenda.
B.Contract: Comprehensive Financial Sustainability Plan & Utility Rate Study
Staff is seeking approval of a contract with Berk in partnership with FCS Group for
development of the plan and study in an amount not to exceed $225,000. Suggestions from
Councilmembers included involving Council committees, using plain language, and
identifying potential legislative solutions.
Committee Recommendation
Unanimous approval. Forward to July 10, 2023 Committee of the Whole.
MISCELLANEOUS
The meeting adjourned at 5:57 p.m.
Committee Chair Approval
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UPCOMING MEETINGS AND EVENTS
JULY 2023 City Council meetings and Council Committee meetings will be conducted in a hybrid model, with in-person and virtual attendance available.
JUL 10 MON JUL 11 TUE JUL 12 WED JUL 13 THU JUL 14 FRI JUL 15 SAT
Community Services
and Safety Committee
5:30 PM
City Hall – Hazelnut Room
Hybrid Meeting
Finance and Governance
Committee 5:30 PM
6300 Building – Suite 100
Foster Conference Room
Hybrid Meeting
City Council
Committee of the Whole
Meeting
7:00 PM
City Hall Council
Chambers
Hybrid Meeting
Special Meeting will follow
Committee of the Whole
Meeting.
RESTORATION A
RIVERTON PARK
Join us to care for this park!
11:30 AM - 1:30 PM
Riverton Park
Click here to register.
SULLIVAN CENTER
LUNCHTIME CONERT SERIES
FREE event with
Spice Bridge food and
entertainment by
Mikey the Rad Scientist.
12:00 PM – 1:30 PM
Tukwila Village
14350 Tukwila Intl Blvd
Click here for summer events.
Park Commission
5:30 PM
Hybrid Meeting
See below for more information.
Community Oriented
Policing Citizens
Advisory Board
6:30 PM
Hybrid Meeting
FOREST CARE AT
COTTONWOOD CORNER
Join us to care for this small
forested parcel!
11:00 AM - 2:00 PM
Riverton Creek
Click here to register.
DONATE BLOOD AND
ENTER TO WIN 1 OF 3
$3,000 GIFT CARDS!
Your donation is critical! To
schedule an appointment,
call 1-800-398-7888.
Click here to schedule an appointment.
FREE HIKES FOR YOUTHS
AGES 10-14 YEARS OLD
Must pre-register for these
activities. Hike to Cherry
Creek Falls that drop over a
wide, rocky ledge into a large
pool.
10:00 AM - 2:00 PM
Click here to register.
Select date range through Aug
25 for more hikes.
FREE SMOKE ALARMS
AND INSTALLATION
Service provided to those
who cannot afford to
purchase smoke alarms or
are physically unable to
install a smoke alarm.
For more information or request FREE smoke
alarms,
call 1-833-918-1531.
Click here for information.
STILL NEED TO FILE
YOUR 2022 TAX RETURN?
File your tax in-person with
United Way volunteers for
free. Final day is today!
11:00 AM - 7:00 PM
Tue, Wed, Thu & Sat
Southcenter Mall
near Sears
Virtual tax site is available through July 27.
Click here for information.
JUL 17 MON JUL 18 TUE JUL 19 WED JUL 20 THU JUL 21 FRI JUL 22 SAT
Planning and
Community
Development Meeting
5:30 PM
City Hall – Hazelnut Room
Hybrid Meeting
Transportation and
Infrastructure Services
Committee
5:30 PM
6300 Building – 2nd Floor
Duwamish Conference
Room
Hybrid Meeting
City Council
Regular Meeting
7:00 PM
City Hall Council
Chambers
Hybrid Meeting
Come buy fresh produce grown
by refugees and immigrants in
our community.
FREE summer meals for kids
and caregivers available for pick
up.
4:00 PM – 7:00 PM
Tukwila Village Plaza
14350 Tukwila Intl Blvd
WALK & TALK, LITTER
CLEAN UP
Take a walk on Green River
trail and learn about wildlife
and plants while picking
up litter.
10:00 AM – 12:00 AM
Bicentennial Park
Click here to register.
Civil Service Commission
5:00 PM
Hybrid Meeting
BARK IN THE PARK
FREE event with
Yappy Hour from the Barkery
and music by SH80s. We will
have a Best Pet Costume
Contest.
6:00 PM – 8:00 PM
Crestview Park
16200 42nd Ave S
Click here for summer events.
July 21 – 23
Friday thru Sunday
10:00 AM – 5:00 PM
Midway Elementary
22447 24th Ave S
Des Moines
Click here for information.
FREE HIKES FOR YOUTHS
Must pre-register for these
activities. Easy 2.9 miles out-
and-back trail hike to Frozen
Lake.
10:00 AM - 2:00 PM
Click here to register.
Free King County residents
and small businesses can
safely drop off household
hazardous waste such as
oil-based paint, batteries,
antifreeze, or pesticides to
the Wastemobile at no cost.
July 21 – 23
Friday thru Sunday
10:00 AM – 5:00 PM
Midway Elementary 22447 24th Ave S
Des Moines
Click here for information.
DEADLINE TO REGISTER,
UPDATE YOUR
REGISTRATION ONLINE OR BY MAIL FOR THE
PRIMARY ELECTION
Click here for information.
CITY HALL & 6300 BUILDINGS ARE OPEN TO THE PUBLIC MONDAYS, WEDNESDAYS & THURSDAYS 8:30 AM – 4:00 PM
CITY OF TUKWILA IS HIRING! WE HAVE MANY JOB OPPORTUNITIES INCLUDING SUMMER POSITIONS!
Visit the City’s Employment Opportunities page to apply! Click here for information.
NATIONAL NIGHT OUT ON AUG 1 SIGN-UP FOR A SPECIAL VISIT FROM CITY LEADERS, OFFICERS AND FIREFIGHTERS!
Host your get-together for the neighborhood and get to know everybody! Click here for information.
MOBILE RECREATION WITH FREE ACTIVITIES FOR FAMILIES! JUN 28 – SEP 1 WED, THU, FRI, SAT & SUN
Meet Parks Staff for fun and free activities at local parks, Tukwila Village and Tukwila Pantry locations! Click here for information.
FREE SUMMER MEALS FOR AGES 18 AND UNDER!
Summer Food Service Program provides free summer meals for children in King County. Click here for information. Summer
Meals Locator: English Español Af Somali Tiếng Việt
CASCADE VIEW COMMUNITY PARK 14211 37TH Ave S
Jul 10 – Aug 25 Mon – Fri
Lunch: 12:00 PM – 1:00 PM
Snack: 1:45 PM – 2:00 PM
FOSTER HIGH SCHOOL 4242 S 144th St
Jul 5 – Aug 3 Mon – Thu
Breakfast: 7:30 AM – 8:00 AM
Lunch: 11:00 AM – 11:30 AM
TUKWILA ELEMENTARY 5939 S 149th St
Jul 5 – Aug 3 Mon – Thu
Breakfast: 8:30 AM – 9:00 AM
Lunch: 12:00 PM – 12:30 PM
TUKWILA VILLAGE FARMER’S MARKET 14350 Tukwila International Blvd
Jun 21 – Aug 30 Wednesdays
Dinner: 4:30 PM – 6:30 PM
Halal friendly options.
Meals available for caregivers too!
TUKWILA COMMUNITY CENTER 12424 42nd Ave S
Jul 10 – Aug 25 Mon – Fri
Lunch: 11:15 AM – 12:15 PM
Snack: 3:00 PM – 3:30 PM
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sdfsdfsdfs dfsdfsTentative Agenda Schedule
MEETING 1 –
REGULAR
MEETING 2 –
C.O.W.
MEETING 3 –
REGULAR
MEETING 4 –
C.O.W.
JULY 3
Regular Meeting cancelled.
JULY 10
See below link for the agenda
packet to view the agenda items:
July 10, 2023
Committee of the Whole / Special
Meeting
JULY 17
PRESENTATION
- An update on Explore Seattle
Southside.
- An update on the Tukwila Pool.
CONSENT AGENDA
- Authorize the Mayor to sign a 2-year
agreement with Starfire Sports for
tourism promotion, in the amount of
$110,000.00.
- Parks and Recreation on-call
services:
(1) Authorize the Mayor to sign a
contract with GGLO Architecture,
Interior Design, Landscape
Architecture, Planning & Urban
Design, LLC for on-call park
planning, design, and project
management services in the
amount of $250,000.00.
(2) Authorize the Mayor to sign a
contract with Otak, Inc. for on-
call park planning, design, and
project management services in
the amount of $250,000.00.
- Authorize the Mayor to sign a
contract with Fence Specialists to
install fencing and a security gate
around the 6300 building parking
garage, in the amount of $51,749.92.
- Authorize the Mayor to sign
Amendment No. 2 to Contract #17-
123 with Axon Enterprises, Inc for
additional fleet cameras, in the
amount of $302,704.15.
UNFINISHED BUSINESS
A contract for Long-Term Financial
Sustainability Plan.
JULY 24
PRESENTATION
Get to Know Puget Sound Fire.
SPECIAL ISSUES
A resolution of intention regarding
Multifamily Property Tax Exemption.
Special Meeting to follow
Committee of the Whole Meeting.
CONSENT AGENDA
- Authorize the Mayor to sign a contract
for a water reservoir feasibility study,
in the amount of $150,000.00.
- Authorize the Mayor to accept a grant
for Decant and EMP, in the amount of
$462,043.00 (local match
$81,537.00).
UNFINISHED BUSINESS
A resolution of intention regarding
Multifamily Property Tax Exemption.
MEETING 1 –
REGULAR
MEETING 2 –
C.O.W.
MEETING 3 –
REGULAR
MEETING 4 –
C.O.W.
AUGUST 7
PRESENTATION
An update on the South Correctional
Entity Jail.
AUGUST 14
PRESENTATION
An introduction to Recology – new solid
waste provider.
PUBLIC HEARING
An ordinance regarding Multifamily
Property Tax Exemption (MFTE).
SPECIAL ISSUES
- An ordinance regarding Multifamily
Property Tax Exemption (MFTE).
- A resolution providing an honorary
street naming designation for former
Mayor Jim Haggerton.
AUGUST 21
UNFINISHED BUSINESS
- A resolution providing an honorary
street naming designation for former
Mayor Jim Haggerton.
- An ordinance regarding Multifamily
Property Tax Exemption (MFTE).
AUGUST 28
SPECIAL ISSUES
Ordinances updating 2024 Park and Fire
Impact Fee Schedules.
Special Meeting to follow
Committee of the Whole Meeting.
CONSENT AGENDA
Ordinances updating 2024 Park and Fire
Impact Fee Schedules.
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