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FI18-18 - Original - Financial Consulting Solutions Group, Inc. - Central Cost Allocation Plan - 04/20/2018
ANT Records Management Document CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to the City Clerk's Office. All portions are to be completed. If you have questions, please contact the City Clerk's Office at 253-856-5725. Vendor Name: Financial Consulting Solutions Group Inc Vendor Number (]DE): Contract Number (City Clerk): P Category: Contract Agreement Sub-Category (if applicable): Choose an item. Project Name: Central Cost Allocation Plan ------------ - Contract Execution Date: 4/20/2018 Termination Date: 9/1/2018 Contract Manager: B. Lopez Department: Finance Date Notice of Contract Email Sent: Contract Amount: $20,030 Approval Authority: 0 Director Z Mayor 7 City Council Other Details: ............... i+C N T a n„ PROFESSIONAL SERVICES AGREEMENT between the City of Kent and FINANCIAL CONSULTING SOLUTIONS GROUP, INC. THIS AGREEMENT is made between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and Financial Consulting Solutions Group, Inc. organized under the laws of the State of Washington, located and doing business at Redmond Town Center 7525 - 166th Ave. NE, Suite D-215 Redmond, Washington 98052 and (425) 867-1802 (hereinafter the "Contractor"). I. DESCRIPTION OF WORK. Contractor shall perform the following services for the City: Task 1: Define the Purpose, Uses, and Goals for the Cost Allocation Plan We will conduct a kick-off meeting with the City's project team to discuss the purpose, uses and goals for the cost allocation plans, including discussion of whether certain costs would be better recovered through indirect allocation or potential internal service funds. As part of the meeting we will also include a discussion of roles and responsibilities, State Auditor and federal requirements, City policies and practices, project execution, schedule and key milestones, readily-available data, and subsequent data collection tasks. Prior to the meeting we will submit an initial data request that might include 2017 City expenditures by department/fund, organizational charts, potential allocation factor data, and any other analyses and reports that might be appropriate. As we proceed with the interview and data gathering processes, we expect that we will have questions and additional requests. Task 2: Interview Key City Stakeholders To gain and understanding of the City's business processes and operations, we will interview the City staff from administrative or support services departments or divisions, either individually or in small groups (based on staff availability), to obtain perspectives and an understanding about any Issues related to overhead cost allocations, understand their organizational structure, define the services provided and potential cost pools, and identify appropriate allocation criteria. Specifically, we will work with City staff to define: Indirect and direct services, a Cost pools, are Allocation factors, m The necessary financial and statistical data for the cost pools and allocation factors, and e The overall cost allocation framework. Task 3: Review the Cost Allocation Framework with City Staff Once we complete the interviews, we will summarize the framework to be used and then review it with the City staff before we begin the analysis. The framework will identify the indirect cost pools and allocation factors as the example shows in the following exhibit. PROFESSIONAL SERVICES AGREEMENT - 1 (Over$20,000) This review meeting will be conducted via the online screen sharing application Ring Central. Task 4: Develop the Full Cost & 2 CFR 225 Allocation Results Once the framework has been confirmed, we will begin the analytical process by setting up the model, reviewing and requesting any additional data, identifying any unallowable federal costs, and conducting the full cost and 2 CFR 225 analyses with the customized model. During the analysis, we will work with the City staff contacts to resolve any issues that might occur. Once the final results have been determined after Task 7's presentation, we will provide the City with the Excel model for it future use. Task 5: Review Results with City Staff When the preliminary results are available, we will meet with the City staff to review assumptions, data, changes, and findings. If staff have feedback requiring changes or additional data, we will work with the City to update the results. Task 6: Prepare Cost Allocation Plans After confirming the preliminary results we will begin preparing the formal draft cost allocation plans identifying overhead cost pools and their allocation factors, allocation amounts, resulting overhead rates, and any other recommendations or issues specific to the City's cost plan process and findings. Review and incorporate staff feedback to finalize the full cost and 2 CFR 225 plans. Task 7 - Presentation of Plan Findings We will prepare and make one on-site presentation to City management and staff. The presentation will review the approach, methodology and findings from the cost allocations. If there are any changes to the plans, we will make the adjustments to the model and the formal plans. Optional Task 8 - Conduct a Model Training Session for City Staff Once the model is finalized, we will conduct an on-site training session for City staff on model inputs, the framework, the modeling techniques, and updating the model if the City determines that it wants such training to Improve the knowledge transfer process. Contractor further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time those services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon the effective date of this Agreement, and Contractor shall complete the work by September 2018. III. COMPENSATION, The City shall pay Contractor a total amount not to exceed $20,030 for the services described in this Agreement. The Contractor shall invoice the City monthly based on time and materials incurred during the preceding month. The hourly rates charged for Contractor's services shall be as delineated in the attached and incorporated Exhibit A. All houriy rates charged shall remain locked at the negotiated rates throughout the term of this Agreement. IV. INDEPENDENT CONTRACTOR, The parties intend that an Independent Contractor- Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations: A, The Contractor has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. PROFESSIONAL SERVICES AGREEMENT- 2 (Over$20,000) B. The Contractor maintains and pays for its own place of business from which Contractor's services under this Agreement will be performed. C. The Contractor has an established and independent business that is eligible for a business deduction for federal income tax purposes that existed before the City retained Contractor's services, or the Contractor is engaged in an independently established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D, The Contractor is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. E. The Contractor has registered Its business and established an account with the state Department of Revenue and other state agencies as may be required by Contractor's business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. F. The Contractor maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party seven (7) calendar days written notice at Its address set forth on the signature block of this Agreement. VI. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Contractor, its subcontractors, or any person acting on behalf of the Contractor or subcontractor shall not discriminate against any person who is qualified and available to perform the work to which the employment relates as provided for by the City of Kent's Equal Employment Opportunity Policy. Contractor shall execute the attached City of Kent Equal Employment Opportunity Policy Declaration, Comply with City Administrative Policy 1.2, and upon completion of the contract work, file the attached Compliance Statement, VII. INDEMNIFICATION. Contractor shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Contractor's negligent performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of Contractor's work when completed shall not be grounds to avoid any of these covenants of indemnification. The provisions of this section shall survive the expiration or termination of this Agreement. In the event Contractor refuses tender of defense In any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Contractor's part, then Contractor shall pay all the City's costs for defense, including all reasonable expert witness fees and reasonable attorneys' fees, plus the City's legal costs and fees incurred because there was a wrongful refusal on the Contractor's part. VIII. INSURANCE. The Contractor shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit B attached and incorporated by this reference. IX. CONTRACTOR'S WORK AND RISK. The Contractor agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to Contractor's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those services. All work shall be done at Contractor's own risk, and PROFESSIONAL SERVICES AGREEMENT- 3 (Over$20,000) Contractor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. X. MISCELLANEOUS PROVISIONS. A. yrlwi(Iq� ., t�c,tlfN , Pursuant to Chapter 3.80 of the Kent City Code, the City requires its contractors and consultants to use recycled and recyclable products whenever practicable. A price preference may be available for any designated recycled product. B. iXi[ QLJkDa.Cb. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. C. Resp1uhop...of Dismites and Gpyerrin_g_.I_gw, This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties' performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all Its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; UQ.y.jt1gjJ, however, nothing in this paragraph shall be construed to limit the City's right to indemnification under Section VII of this Agreement. D. ,4L+ 'utLr7 Iraklc�c±:. All communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. E. Assionment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. F. flrt?0jftc51nillr. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Contractor. G. Entire agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. Should any language in any of the exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. jai y is r7rcf1;. The Contractor acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington and documents, notes, emails, and other records prepared or gathered by the Contractor in its performance of this Agreement may be subject to public review and disclosure, even if those records are not produced to or possessed by the City of Kent. As such, the Contractor agrees to cooperate fully with the City in satisfying the City's duties and obligations under the Public Records Act. I. S'ity tSas u�7exs,, .Gti,a'n cp... ftagpuirrtq]. Prior to commencing the tasks described in Section I, Contractor agrees to provide proof of a current city of Kent business license pursuant to Chapter 5.01 of the Kent City Code. PROFESSIONAL SERVICES AGREEMENT - 4 (Over$20,000) mF,1)Y E:m Pc:.. IrIzLNl• This Agreement may be executed In any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as If the Agreement bearing the original signature was received in person. IN WITNESS, the parties below execute this Agreement, which shall become effective on the last date entered below. All acts consistent with the authority of this Agreement and prior to its effective date are ratified and affirmed, and the terms of the Agreement shall be deemed to have applied. ..... CONTRACTOR: CITY OF(K�E(N}T9 Print Name )c '� ro) Ralpahlra! i �-�—i-r" _ Print Name•._ Dana Ralph _ Its. YI 1f t Its. _.._ k1C _____ (Crde) DATE; ,� � f._f - DATE _ ........ _ ...._.......... -------- .._ NOTICES TO BE SCNT TO: NOTICES TO BE SENT TO: CONTRACTOR: CITY OF KENT: Courtney Black Barbara Lopez FINANCIAL CONSULTING SOLUTIONS City of Kent GROUP, INC. 220 Fourth Avenue South Redmond Town Center Kent, WA 98032 7525 - 166th Ave. NE, Suite D-215 Redmond, Washington 98052 (253) 253-856-5250 (telephone) (253) 253-856-6255 (facsimile) (425) 867-1802 x226 (telephone) (425) 867-1937 (facsimile) App VE S TO FOR nt Law Department PROFESSIONAL SERVICES AGREEMENT- 5 (Over$20,000) DECLARATION CITY OFKENT EQUAL EMPLOYMENT OPPORTUNITY POLICY The City ufKent is committed to conform to Federal and State laws regarding equal opportunity. As such all contractors, subcontractors and suppliers who perform work with relation to this Agreement shall comply with the regulations of the City's equal employment opportunity policies. The following questions specifically identify the requirements the City deems necessary for any contractor, sUbCODtrGCtV[ or supplier on this Specific Agreement to adhere to. An affirmative response is required on all of the following questions for this Agreement to be valid and binding. If any contractor, subcontractor or supplier willfully misrepresents themselves with regard to the directives outlines, it will be considered a breach of contract and it will he at the City's sole determination regarding suspension or termination for all or part of the Agreement; The questions are as follows: 1. l have read the attached City 0f Kent administrative policy nunnber1.2. 2� During the time of this Agreement I will not discriminate in employment on the basis of sex, race, color, national origin, age, or the presence of all sensory, mental or physical disability. 3. During the time of this Agreement the prime contractor will provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 4� During the time of the Agreement I, the prime contractor, will actively consider hiring and promotion of women and minorities. 5� Before acceptance of this &gne*nn*nt/ an adherence statement will be signed by rne/ the Prime Contractor/ that the Prime Contractor complied with the requirements as set forth above. By signing below, l agree tofulfill the five requirements referenced above. Dated this day , 2O /6' . By: For: Title: Date: EEO COMPLIANCE DOCUMENTS 1 CITY OF KENT ADMINISTRATIVE POLICY NUMBER: 1.2 EFFECTIVE DATE: January 1, 1998 SUBJECT: MINORITY AND WOMEN SUPERSEDES: April 1, 1996 CONTRACTORS APPROVED BY Jim White, Mayor Equal employment opportunity requirements for the City of Kent will conform to federal and state laws. All contractors, subcontractors, consultants and suppliers of the City must guarantee equal employment opportunity within their organization and, if holding Agreements with the City amounting to $10,000 or more within any given year, must take the following affirmative steps: 1. Provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 2. Actively consider for promotion and advancement available minorities and women. Any contractor, subcontractor, consultant or supplier who willfully disregards the City's nondiscrimination and equal opportunity requirements shall be considered in breach of contract and subject to suspension or termination for all or part of the Agreement. Contract Compliance Officers will be appointed by the Directors of Planning, Parks, and Public Works Departments to assume the following duties for their respective departments. 1. Ensuring that contractors, subcontractors, consultants, and suppliers subject to these regulations are familiar with the regulations and the City's equal employment opportunity policy. 2. Monitoring to assure adherence to federal, state and local laws, policies and guidelines. EEO COMPLIANCE DOCUMENTS - 2 CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This form shall be filled out AFTER COMPLETION of this project by the Contractor awarded the Agreement, I, the undersigned, a duly represented agent of ....... ..... Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into nn the (dare), between the firm l represent and the City of Kent. l declare that I complied fully with all uythe requirements and obligations as outlined in the City of Kent Administrative Policy 1.2 and the Declaration City of Kent Equal Employment Opportunity Po|icythatvvaspartnfthehefnre-nnenbonedAgroenoent. Dated this day uf _ / 20 By: For: Tide: Date: EEO COMPLIANCE DOCUMENTS 3 EXHIBIT INSURANCE REQUIREMENTS FOR CONSULTANT SERVICES AGREEMENTs 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, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Autgnloti p u bill y insurance covering 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. CttGpI.. nern�l LiabBiy insurance shall be written on ISO occurrence form CG 00 01. 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 ISO additional insured endorsement CG 20 10 11 85 or a substitute endorsement providing equivalent coverage. 2. aVo-rks'.,,.Cmena�tian coverage as required by the Industrial Insurance laws of the State of Washington. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. 4utomgbfeli..b fifty insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercaa neralm„9 ak2iNi insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. EXHIBIT (Continued) C. other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Consultant's insurance coverage shall be primary insurance as respect 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 contribute with it. 2. The Consultant's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the Consultant and a copy of the endorsement naming the City as additional insured shall be attached to the fermt,ifwcsrt�_f f 'C[5sur tnq,. The City reserves the right to receive a certified copy of all required insurance policies. The Consultant's Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than ANII. 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 Consultant before commencement of the work. F. Subcontractors Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Consultant. DATF(MMIDDNYYY) ACORQM CERTIFICATE OF LIABILITY INSURANCE 4/1_7/201_8 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION SHINSTROM & NORMAN INC ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR PO Box 638 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, Kirkland, WA 98083 (425) 827-6200 INSURERS AFFORDING COVERAGE NAIC# _. ...... ._.... ......... ......... _ ... ....... ........ ........... ....................._..._....... wsuaED FINANCIAL CONSULTING SOLUTIONS INSURER LIBERTY MUTUAL INS. CO, GROUP, INC. INSURERS 7525 166TH AVENUE NE, STE #D-215 INSURER _ REDMOND, WA 98052 INSURER INSURER E COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLIGIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS n! us �LAIMISIMA DE C� o�r POLICY NUMBER UNITS ' RTO, ) IEANFHMMAJI ^ GCfJPEAL LhBLTV EACH OCCURRENCE F 1 ODD DDD 'A ETCRENTED CO ER 4I TY PREMISES $ T 000 000 MEDLxE(Arvonepo or) _ $ 15 QQQ,I A BKW58035312 09/20/17 09/20/18 PERSONALNADVINJURY I$ 1 000,000 1 _ GENERAL AGGREGATE 1$ 2 000 ,000 POLICY y �. ... .... ..... �.R IMTAPPLIES�ER TRODUTP („MPlOPAGc s 2 .000 .000 L EN'L AGGREGA TC LIM _.... ,OMOBILE LIABILI TV LI COMBINED SING LIMIT q 1 OOO 000 AUT ANYAUTO lEadc'd ni) , , ALL OYJNFD AIJ TOS BODILY INJURY GOHCULED AUTOS [Per person) � Y A IX HIREOAUrRs BAA58035312 09/20/17 1 09/20/16 BOMLYINJURY L ... X NON OVJNEDAU FOS (T c I rU) § 1 ..... . ,. .. .....,,, ..... PROPERTY DAMAGE ' (Peracc tlenp $ (GARAGE LIABILITY AUTOONLY-EAACCIDENi b ....... ....._•_ --- ANYAUTO .DB OL 2 r OT IERTHAM ......_, AN TO ONCE AGG B EXCE NMBREILALIAEILITY JEACH OCCURRENCE is 1 000,000 0{,,� OCCUR CLAIMS MADE AGGREGATE _ s 1 000 000 US058035312 09/20/17 09/20/18 _ $ A DEDUCTIBLE f 8. RETENTION E S AUI WORKE9 GOMPL HONATIO NSA X sV T I11a EMPLOYERS LABILITY gg58035312 09/20/17 09/20/18 _ ) ANY PBOPPIATFORPARTREBrEa ECU FIVE EL EACH $ 1 OOO ,000 O FFICERMEMBER E%CWnEU] ,. �mm WASH STOP GAP EL DISEASE raEMPLavel s 1 000 .000 A fv desorlbBrUKO 1 ..... 0 SPECIAL PROVISIONS BAIOW ...m BL DI`EASE-POI I[Y LIINI $ 2 OOO .00O OTHER DESCRIPTION OF OPERATIONS I LOCATIONS(VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT(SPECIAL PROVISIONS RE: OPERATIONS THE CERTIFICATE HOLDER(S) ARE INCLUDED AS PRIMARY ADDITIONAL INSURED PER ATTACHED FORM CG8810 AND INCLUDES WAIVER OF SUBROGATION. CERTIFICATE HOLDER CANCELLATION T 6HOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE I'HE EXPIRATION f CITY OF KENT DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO M4IL45 DAYS WRITTEN I FINANCE DEPARTMENT NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,BUT FAILURE r0 DO SO SHALL 220 FOURTH AVE. S. IMPOSE NQ Q@URAWHUN OR LIAOILIFY OF ANY KIND UPON THE INSURER, ITS AGENTS OR KENT, WA 98032 REPResEN,aATrvBs r AUYHOX'GE7)'PEPR¢;$B'iTfii'dVl% f ) I ACORD25)2001108) ©AC.....—...._......�.....-•_ ..... ..µ.�v.r��.. � ....._ ORD CORPORATION 1988 COMMERCIAL GENERAL LIABILITY CG 88 10 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, COMMERCIAL GENERAL LIABILITY EXTENSION This endorsement modifies insurance provided under the following. COMMERCIAL GENERAL LIABILITY COVERAGE PART INDEX SUBJECT PAGE NON-OWNED AIRCRAFT 2 NON-OWNED WATERCRAFT 2 PROPERTY DAMAGE LIABILITY -ELEVATORS 2 EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) 2 MEDICAL PAYMENTS EXTENSION 3 EXTENSION OF SUPPLEMENTARY PAYMENTS -COVERAGES A AND B 3 ADDITIONAL INSUREDS -BY CONTRACT, AGREEMENT OR PERMIT 3 PRIMARY AND NON-CONTRIBUTORY- ADDITIONAL INSURED EXTENSION 5 ADDITIONAL INSUREDS -EXTENDED PROTECTION OF YOUR "LIMITS OF INSURANCE" 6 WHO IS AN INSURED -INCIDENTAL MEDICAL ERRORS/MALPRACTICE AND WHO IS AN INSURED -FELLOW EMPLOYEE EXTENSION -MANAGEMENT EMPLOYEES 6 NEWLY FORMED OR ADDITIONALLY ACQUIRED ENTITIES 7 FAILURE TO DISCLOSE HAZARDS AND PRIOR OCCURRENCES 7 KNOWLEDGE OF OCCURRENCE, OFFENSE, CLAIM OR SUIT 7 LIBERALIZATION CLAUSE 7 BODILY INJURY REDEFINED 7 EXTENDED PROPERTY DAMAGE 8 WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US - 8 WHEN REQUIRED IN A CONTRACT OR AGREEMENT WITH YOU © 2013❑party Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office,Inc.,with its permission, Page 1 of 8 With respect to coverage afforded by this endorsement, the provisions of the policy apply unless modified by the endorsement. A. NON-OWNED AIRCRAFT Under Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liability, exclusion g. Aircraft, Auto Or Watercraft does not apply to an aircraft provided: 1. It is not owned by any insured, 2. It is hired, chartered or loaned with a trained paid crew, 3. The pilot in command holds a currently effective certificate, issued by the duly constituted authority of the United States of America or Canada, designating her or him a commercial or airline pilot, and 4. It is not being used to carry persons or property for a charge. However, the insurance afforded by this provision does not apply if there is available to the insured other valid and collectible insurance, whether primary, excess (other than insurance written to apply specifically in excess of this policy), contingent or on any other basis, that would also apply to the loss covered under this provision. B. NON-OWNED WATERCRAFT s Under Paragraph 2. Exclusions of Section I -Coverage A-Bodily Injury And Property Damage Liability, a Subparagraph (2) of exclusion g. Aircraft, Auto Or Watercraft Is replaced by the following: This exclusion does not apply to: (2) A watercraft you do not own that is: (a) Less than 52 feet long; and (b) Not being used to carry persons or property for a charge. C. PROPERTY DAMAGE LIABILITY -ELEVATORS 1. Under Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liabil- ity, Subparagraphs (3), (4) and (6) of exclusion j. Damage To Property do not apply if such "property damage" results from the use of elevators. For the purpose of this provision, elevators do not include vehicle lifts. Vehicle lifts are lifts or hoists used in automobile service or repair operations. 2. The following is added to Section IV - Commercial General Liability Conditions, Condition 4. Other Insurance, Paragraph b. Excess Insurance: The insurance afforded by this provision of this endorsement is excess over any property insurance, whether primary, excess, contingent or on any other basis. D. EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) `1 If Damage To Premises Rented To You is not otherwise excluded from this Coverage Part: 1. Under Paragraph 2. Exclusions of Section I -Coverage A-Bodily Injury and Property Damage Liability: a. The fourth from the last paragraph of exclusion I. Damage To Property is replaced by the follow- ing: Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire, lightning, explosion, smoke, or leakage from an automatic fire protection system) to: (i) Premises rented to you for a period of 7 or fewer consecutive days. or (ii) Contents that you rent or lease as part of a premises rental or lease agreement for a period of more than 7 days. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" to contents of premises rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to this coverage as described in Section III - Limits of Insurance. © 20131-iberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office,Inc.,with its permission, Page 2 of 8 b. The last paragraph of subsection 2. Exclusions is replaced by the following: Exclusions c. through n. do not apply to damage by fire, lightning, explosion, smoke or leakage from automatic fire protection systems to premises while rented to you or temporarily occupied by you with permission of the owner. A separate limit of insurance applies to Damage To Premises Rented To You as described in Section III -Limits Of Insurance. 2. Paragraph 6. under Section III -Limits Of Insurance is replaced by the following: 6. Subject to Paragraph 5. above, the Damage To Premises Rented To You Limit is the most we will pay under Coverage A for damages because of"property damage" to: a. Any one premise: (1) While rented to ycu; or (2) While rented to you or temporarily occupied by you with permission of the owner for damage by fire, lightning, explosion, smoke or leakage from automatic protection Sys- tems; or b. Contents that you rent or lease as part of a premises rental or lease agreement. 3. As regards coverage provided by this provision D. EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) - Paragraph 9.a. of Definitions is replaced with the following. 9.a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire, lightning, explosion, smoke, or leakage from automatic fire protection systems to premises while rented to you or temporarily occupied by you with the permission „9f the owner, or for damage to contents of such premises that are included in your premises rental or lease agreement, is not an "insured contract". E. MEDICAL PAYMENTS EXTENSION If Coverage C Medical Payments is not otherwise excluded, the Medical Payments provided by this policy are amended as follows: Under Paragraph 1. Insuring Agreement of Section I - Coverage C -Medical Payments, Subparagraph (b) of Paragraph a. is replaced by the following: (b) The expenses are incurred and reported within three years of the date of the accident; and F. EXTENSION OF SUPPLEMENTARY PAYMENTS -COVERAGES A AND B 1. Under Supplementary Payments -Coverages A and B, Paragraph 1.b. is replaced by the following: It. Up to $3,000 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. 2. Paragraph 1.d. is replaced by the following. d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $500 a day because of time off from work. G. ADDITIONAL INSUREDS -BY CONTRACT, AGREEMENT OR PERMIT 1. Paragraph 2. under Section II -Who Is An Insured is amended to include as an insured any person or organization whom you have agreed to add as an additional insured in a written contract, written agreement or permit. Such person or organization is an additional insured but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused in whole or in part by: a. Your acts or omissions, or the acts or omissions of those acting on your behalf, in the performance of your on going operations for the additional insured that are the subject of the written contract or written agreement provided that the "bodily injury" or "property damage" occurs, or the "per- sonal and advertising injury" is committed, subsequent to the signing of such written contract or written agreement; or © 20131-berty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office,Inc.,with its permission. Page 3 of 8 b. Premises or facilities rented by you or used by you; or c. The maintenance, operation or use by you of equipment rented or leased to you by such person or organization; or d. Operations performed by you or on your behalf for which the state or political subdivision has issued a permit subject to the following additional provisions: (1) This insurance does not apply to "bodily injury", "property damage", or "personal and ad- vertising injury" arising out of the operations performed for the state or political subdivision, (2) This insurance does not apply to "bodily injury" or "property damage" included within the "completec operations hazard". (3) Insurance applies to premises you own, rent, or control but only with respect to the following hazards: (a) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoist away openings, sidewalk vaults, street banners, or decorations and similar expo- sures; or (b) The construction, erection, or removal of elevators; or (c) The ownership, maintenance, or use of any elevators covered by this insurance. s However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the additional insured is required by a contract or agreement, the insur- ance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. With respect to Paragraph 1.a. above, a person's or organization's status as an additional Insured under this endorsement ends when: (1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project, With respect to Paragraph 1.b. above, a person's or organization's status as an additional insured under this endorsement ends when their written contract or written agreement with you for such premises or facilities ends. With respects to Paragraph 1.c. above, this insurance does not apply to any "occurrence" which takes place after the equipment rental or lease agreement has expired or you have returned such equipment to the lessor. The insurance provided by this endorsement applies only if the written contract or written agreement is signed prior to the "bodily injury" or "property damage'' We have no duty to defend an additional insured under this endorsement until we receive written notice of a "suit" by the additional insured as required in Paragraph b. of Condition 2. Duties In the Event Of Occurrence, Offense, Claim Or Suit under Section IV - Commercial General Liability Condi- tions. © 2013Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc..with its permission, Page 4 of 8 2. With respect to the insurance provided by this endorsement, the following are added to Paragraph 2. Exclusions under Section I -Coverage A - Bodily Injury And Property Damage Liability: This insurance does not apply to: a. "Bodily injury" or "property damage" arising from the sole negligence of the additional insured. b. "Bodily injury" or "property damage" that occurs prior to you commencing operations at the location where such "bodily injury" or "property damage" occurs. c. "Bodily injury", "property damage" or "personal and advertising injury" arising out of the render- ing of, or the failure to render, any professional architectural, engineering or surveying services, including: (1) The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or (2) Supervisory, inspection, architectural or engineering activities. This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occur- rence" which caused the "bodily injury" or "property damage", or the offense which caused the "personal and advertising injury", involved the rendering of, or the failure to render, any professional architectural, engineering or surveying services, d. "Bodily injury" or "property damage" occurring after: (1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. e. Any person or organization specifically designated as an additional insured for ongoing operations by a separate ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS endorsement is- sued by us and made a part of this policy. 3. With respect to the insurance afforded to these additional insureds, the following is added to Section III -Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: a. Required by the contract or agreement, or b. Available under the applicable Limits of Insurance shown in the Declarations, whichever is less. This endorsement shall not Increase the applicable Limits of Insurance shown in the Declaratio ns. .:, H. PRIMARY AND NON-CONTRIBUTORY ADDITIONAL INSURED EXTENSION This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this policy. Condition 4. Other Insurance of SECTION IV -COMMERCIAL GENERAL LIABILITY CONDITIONS is amend- ed as follows: a. The following is added to Paragraph a. Primary Insurance: If an additional insured's policy has an Other Insurance provision making its policy excess, and you have agreed in a written contract or written agreement to provide the additional insured coverage on a primary and noncontributory basis, this policy shall be primary and we will not seek contribution from the additional insured's policy for damages we cover. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office,Inc.,with its permission. Page 5 of 8 b. The following is added to Paragraph b. Excess Insurance: When a written contract or written agreement, other than a premises lease, facilities rental contract or agreement, an equipment rental or lease contract or agreement, or permit issued by a state or political subdivision between you and an additional insured does not require this insurance to be primary or primary and non-contributory, this insurance is excess over any other insurance for which the addi- tional insured is designated as a Named Insured. Regardless of the written agreement between you and an additional insured, this insurance is excess over any other insurance whether primary, excess, contingent or on any other basis for which the additional insured has been added as an additional insured on other policies. I. ADDITIONAL INSUREDS -EXTENDED PROTECTION OF YOUR "LIMITS OF INSURANCE" This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this policy. 1. The following is added to Condition 2. Duties In The Event Of Occurrence, Offense, Claim or Suit: An additional insured under this endorsement will as soon as practicable: a. Give written notice of an "occurrence" or an offense that may result in a claim or"suit" under this insurance to us; b. Tender the defense and indemnity of any claim or "suit" to all insurers whom also have insurance available to the additional insured, and c. Agree to make available any other insurance which the additional insured has for a loss we cover under this Coverage Part. d. We have no duty to defend or indemnify an additional insured under this endorsement until we receive written notice of a"suit" by the additional insured. 2. The limits of insurance applicable to the additional insured are those specified in a written contract or written agreement or the limits of insurance as stated in the Declarations of this policy and defined in Section III - Limits of Insurance of this policy, whichever are less. These limits are Inclusive of and not in addition to the limits of insurance available under this policy. J. WHO IS AN INSURED -INCIDENTAL MEDICAL ERRORS/MALPRACTICE WHO IS AN INSURED -FELLOW EMPLOYEE EXTENSION -MANAGEMENT EMPLOYEES Paragraph 2.a.(1) of Section II -Who Is An Insured is replaced with the following: (1) "Bodily injury" or"personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), to a co-"employee" while in the course of his or her employ- ment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that cc-"employee" or "volunteer worker" as a consequence of Paragraph (1) (a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1) (a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. However, if you are not in the business of providing professional health care services or providing profes- sional health care personnel to others, or if coverage for providing professional health care ser- vices is not otherwise excluded by separate endorsement, this provision (Paragraph (d)) does not apply. Paragraphs (a) and (b) above do not apply to "bodily injury" or"personal and advertising injury" caused by an "employee" who is acting in a supervisory capacity for you. Supervisory capacity as used herein means the "employee's" job responsibilities assigned by you, includes the direct supervision of other "employ- ees" of yours- However, none of these "employees" are insureds for "bodily injury" or "personal and © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office,Inc.,with its permission. Page 6 of 8 advertising injury" arising out of their willful conduct, which is defined as the purposeful or willful intent to cause "bodily injury" or "personal and advertising injury", or caused in whole or in part by their intoxica- tion by liquor or controlled substances. The coverage provided by provision J. is excess over any other valid and collectable insurance available to your "employee". K. NEWLY FORMED OR ADDITIONALLY ACQUIRED ENTITIES Paragraph 3. of Section II -Who Is An Insured is replaced by the following: 3. Any organization you newly acquire or form and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the expiration of the policy period in which the entity was acquired or formed by you; b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. d. Records and descriptions of operations must be maintained by the first Named Insured, No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations or qualifies as an insured under this provision. L. FAILURE TO DISCLOSE HAZARDS AND PRIOR OCCURRENCES Under Section IV - Commercial General Liability Conditions, the following is added to Condition 6. Repre- sentations: Your failure to disclose all hazards or prior "occurrences" existing as of the inception date of the policy shall not prejudice the coverage afforded by this policy provided such failure to disclose all hazards or prior 'occurrences" is not intentional. M. KNOWLEDGE OF OCCURRENCE, OFFENSE, CLAIM OR SUIT Under Section IV -Commercial General Liability Conditions, the following is added to Condition 2. Duties In The Event of Occurrence, Offense, Claim Or Suit: Knowledge of an "occurrence", offense, claim or "suit" by an agent, servant or "employee" of any insured shall not in itself constitute knowledge of the insured unless an insured listed under Paragraph 1, of Section II -Who Is An Insured or a person who has been designated by them to receive reports of "occurrences", offenses, claims or "suits" shall have received such notice from the agent, servant or "employee'. i� N. LIBERALIZATION CLAUSE If we revise this Commercial General Liability Extension Endorsement to provide more coverage without additional premium charge, your policy will automatically provide the coverage as of the day the revision is effective in your state. O. BODILY INJURY REDEFINED Under Section V -Definitions, Definition 3. is replaced by the following: 3. "Bodily Injury" means physical injury, sickness or disease sustained by a person. This includes mental anguish, mental injury, shock, fright or death that results from such physical injury, sick- ness or disease. © 20131-Iberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc.,with its permission. Page 7 of 8 P. EXTENDED PROPERTY DAMAGE Exclusion a. of COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY is replaced by the following: a. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect persons or property. w Q. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US - WHEN REQUIRED IN A CONTRACT OR AGREEMENT WITH YOU Under Section IV -Commercial General Liability Conditions, the following is added to Condition 8. Trans- fer Of Rights Of Recovery Against Others To Us: We waive any right of recovery we may have against a person or organization because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products-completed operations hazard" provided: 1. You and that person or organization have agreed in writing in a contract or agreement that you waive such rights against that person or organization, and 2. The injury or damage occurs subsequent to the execution of the written contract or written agree- ment. u © 2013Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office,Inc.,with its permission. Page 8 of 8 ACOR - CERTIFICATE OF LIABILITY INSURANCE ATE IMMIDDIYY A I /17/9n1R PRODUCER THIS CERTIFICATF IS ISSUED AS A MATTER OF INFORMATION Shinstrom & Norman Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR P.O. Box 638 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, Kirkland, WA 98083 (425) 827-6200 INSURERS AFFORDING COVERAGE msuaeD FINANCIAL CONSULTING SOLUTIONS INSORERa STARSTONE, NATIONAL TNRURAN CE ('n_ , „ GROUP, INC. INSURERS nTnTr 9GdoF 7525 166TH AVE. NE, SUITE D-215 IN LnxEI<C ....... REDMOND, WA 98052 IN SUPER U INSURER[ _......... ..... _.. COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. .. .._._.._....... .._.... ._,,, ...... _.,.........m.. .... .... ....._. ...,.,, INSR POLICY EFFEGTPUE POUCYE%'IIRA----16— LiR TYPE OF INSURANCE POLICY NUMBER DATE MMIDORY OATS MMlDDMI LIMITS GENERAL LIABILITY EACH OCCURRENCE 15 COMMERCIAL GENERAL LIAML I IY �l FIRE DAMAGE(Anv Ofl9 rlr0) $ CLAIMS IO AOE OGCUR MFO f FY(Any r• _ un I Wool 5 PERSONAL8A0 GENERAL AGGREGATEINJURY $ _ GLN'L A<fRFtil4T[ LIMITAPPLIES PER. PRODUCTS COMAOP AGO S ..__. OLICY� 'I 'Aci ._�LOC I I;41 AUTOMOBILE LIABILITY e �OMBINE051NGLF LIMIE IS ANY AUTO (Ee dcCAtletU i AL I.OWNED AU F06' BODILY INJURY $ SCHEDULED AUTOS (P EI n) HIRED AUTOS -- BODILY INJURY $ MEN-OWNEDAUTOS �tl tlerq PROPERTY DAMAGE 5 (Per a"L deP1t GARAGF LIABILITY — — AUTOONLY-EA ACCIDENT $ AIVY AUTO LA ACC CC S .,.,... ............... OTHERTHAN 1 AUTO ONLY ......>.. .. ACG $ EXCESS LIABILITY _ EACH OCCURRENCE $ �m OCCUR jGLAIMS MADF. ACGREGAFE �S . . DEDUCTIBLE f s.... .. RE EENTION WORKERS COMPENSATION AND We uT � I EMPLOYERS'LIABILITV TORYIIAtII ES [R EL EACH ACCIDENT S EL DISEASE EAFMPLO FF I$2u,000,000 EACH CLAIM AII OTHER PROFESSIONAL 0955OB176APL t09/20/17 09/20/18 $4 000 000 AGGREGATE vT TAR T T.T T_V_ CLATMS MADF. FORM S 5 .000 ❑p.nH(.TTRTE DESCRIPTION OF OPERATIONSILOCATIONSNEHICLESIEXCLU SIGNS AADDED BY ENDORSEMENTISPECIAL PROVISIONS RETROACTIVE DATE: 7/26/1988 CERTIFICATE HOLDER, j ADDITIONAL INSURED;INSURER LETTER: CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION CITY OF KENT DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 4 P; DAYS WRITTEN FINANCE DEPARTMENT NOTICE TO THE GERTIMATE HOLDER NAMED TO THE LEFT,BUT FAILURE TO DO SO SHALL 220 FOURTH AVE. S. IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTS OR KENT, WA 98032 REPRESEN1.41IVES. 661JTE60RI%EEl IRY.:IPAYdHfdBNYAYbVF ( r_ ACORD 25 S(7f97) ©ACORD CORPORATION 1988 COST ALLOCATION FLAN �� ottistn>< „ Proposal E l� �a�bl�rr�lda�� l� T March 7, 2018 W A H I M G 1 G H Y;41 i Y i a r, I I II u ,, uuuum Yuluuuuuuuu'u'u'u lll�lll�l n e.lr• �r I pS 't, " 0# This entire proposal is made oFinadily contact Us: reoy,l.blc materials,including rho bnuve 'e binding and the tiortandbek cover, # 425.867.1802 hid, Ire nndc from post onswn=r • R I yy pI\ T rccychd plastic bottles, N * Y��( M � ,1) www.fcsgroup.com ov -- -- tit lul;, tl t lliaT% l " Wamkill,. µpy,. �J{ GROUP V d g'�g TTj Finn Headquarters Established 1988 J Redrnond Tw Center Vol hinglon 1425,867IN2 SOtLIUWI5-Oriented Consutring 7525166"Ave NE,Ste,D-215 Oregon 1503,841,6543 Redmord,Wadingtoa 98052 Colorado 1719 284 9168 March 7, 2018 Barbara Lopez City of Kent 220 Fourth Ave. S. Kent, WA 98032 Subject: Cost Allocation Plan Dear Ms. Lopez and Members of the Selection Committee: Thank you for the opportunity to propose on the City of Kent's requested Cost Allocation Plan. Our proposal includes details concerning our experience,background, qualifications, and schedule. We understand that the primary goal for this study is to ensure that the City's overhead costs are allocated fairly and consistently to its various funds and direct service programs. Based on our extensive experience in this area and understanding of the City's needs, we believe the following characteristics of our team and approach will provide direct benefits to the City on this effort: 1. Facilitate sound decision-making and management by the City staff,public officials and City management by applying a solutions-oriented analytical approach to cost allocation plans. Identify key policy issues and custom solutions. 2. Develop practical solutions and implementable recommendations that help elected officials and management make informed fee policy decisions. Apply our disciplined and technical approach to identifying all indirect costs and the appropriate allocation factors, to ensure allocations are equitable and reasonable. Provide a fresh perspective and familiarity with the City through previous work. 3. Collaborate and work closely with the City staff for a seamless and positive process. Remain accessible throughout the project to ensure staff input guides development of useful and accessible end-products. 4. Draw from our depth and breadth of experience to ensure that the City has access to the best available methodologies. FCS GROUP has performed many cost allocation plans and financial models for local governments. Finally, this letter serves to reference that our Federal Tax ID is:91-141-7946 and our Washington UBI is: 601-098-550. If you have any questions regarding our proposal,please contact me at (425)241-9343 or Courtneyb@fcsgroup.com. Sec company address above. Sincerely, FCSGROUP �1 4 tR v '7 Courtney Black Project Manager City of Kent Cost Allocation Plan ^.;Y F+;'S GROUP TABLE OF CONTENTS Qualifications of Firm and Individuals ...............................................--.............................---..................1 KeyPersonnel ..........................................................................................................................................2 CostAllocation Experience......................................................................................................................3 References...................................................................................................................................................8 Approachand Work Plan.............................................................................................................................9 Cost Allocation Methodology— ...... ........ .... .---...... .. ....... ...... ........ --9 Work plan .... Schedule................................................................................................................................................ 12 Cost Proposal _..,_. .. . ... ... ... .. . ._. _.. 13 Table of Appendices Appendix A - Resumes City of Kent Cost Allocation Plan ,; 1,(:s C'R. IJ I, QUALIFICATIONS OF FIRM AND INDIVIDUALS FCS GROUP, established in 1958, is one of the We deliver defensible solutions...by delivering an country's oldest and most respected independent unrivaled depth of analytical rigor that serves to providers of financial, economic, and management establish confidence in both our results and your consulting services in the public sector. With over strategic decision making. .1,500 engagements for more than 550 government Our Services clients, FCS GROUP provides best-in-class analytical solutions that offers our clients the clarity Our Financial Planning and Analysis consultants they need to solve their most complex issues in specialize in helping local and state governments, ways tailored specifically to their own communities. regional agencies and public safety entities address and solve issues involving policy objectives, public As a private practice dedicated exclusively to state finance and cost recovery, and organizational and local government issues, we have accumulated performance. FCS GROUP has conducted over 100 the expertise and the perspective that makes a real cost allocation studies. In Washington State, FCS difference for the clients we serve. Each GROUP is recognized as a leader in this subject engagement is a highly personalized experience led area as assigned staff,Peter May, has made several by a senior principal who will be your partner in presentations on these topics for the Washington building the solutions and outcomes you need. Finance Officers Association, the Association of At FCS GROUP,we understand that every Washington Cities, the Washington City/County municipal agency faces its own unique challenges. Management Association,the Washington Public Our success and reputation comes from the ability Treasurers Association,the Snohomish County to listen to clients and produce customized study Clerks and Finance Officers Association, and the results that can be easily implemented and Puget Sound Finance Officers Association, understood by everyone. Our Utility Rate and Fee Consulting practice serves IS water, wastewater, stormwater, reclaimed water, vaaEcrs "I solid waste, electric, and transportation clients. We atnrvggomamp have performed more than 2,000 utility finance and MuRgo�TAnt P Y CLIENTS P4ohislonala rate development projects ranging from defining s t + revenue requirements and building comprehensive financial modeling tools to performing long-term °a"a`pMtnS1Ytl91 capital management strategies and developing full Est.InIN Contact GIs p g g P g cost-of-service rates. Among our clients, FCS atie.bMon,co GROUP has worked with the City of Kent to develop water, sewer, and stormwater rates. Why FCS GROUP Our Utility Management Consulting group supports We support strong, solvent cities...by optimizing city, county and district utilities by offering tailored your financial performance and supporting your business management and technology solutions. We mission to effectively and efficiently allocate have assisted with the formation and merger of resources. utilities,developed detailed asset management We promote sustainability and transparency...by Programs, implemented efficiency-directed IT developing custom solutions, resilient financial systems—helping utilities maintain their resiliency policies, and effective communication programs. in an ever changing world. We build organizational value...by arming staff Our Economic Services group provides a unique and department heads with the information needed combination of skills and knowledge about public to effectively engage and coordinate. sector infrastructure in order to support municipal goals of attracting business, creating jobs, We earn trust...by honoring our commitment to your enhancing public space and forming economically project scope, schedule and budget requirements— vital, sustainable communities. made possible by our team's depth and capacity. __... .._..__........ ___.........- 9 ....................._ City of Kent Cost Allocation Plan oy i CS GROup KEY PERSONNEL FCS GROUP's management consultants specialize infrastructure rate development and financial in helping local and state governments address and analyses), and economic services (economic impact resolve issues involving organizational and financial analysis, economic development plans, and performance, efficiency and effectiveness, as well redevelopment strategies). as the policy analysis that ultimately drives the For this project, we propose a small, focused project service levels. Our market niche makes its one of team, selected for the direct,relevant experience the few firms that focus on management consulting and strengths each member brings. We also have the services (performance audits, asset management, necessary depth and capacity to assign additional organizational analysis,process analysis), public technical resources, if necessary, finance services(cost of service analysis, user fees, cost allocation, fiscal and budget analysis, and Courtney Black Courtney Black is an'FCS GROUP project manager with 18 years Project Manager of experience and more than 150 user fee,rate,indirect cost M Management allocation,and financial studies throughout the Northwest. She has lM Communication extensive cost-of-service experience in developing rates and fees. Analytical Direction Her areas of expertise are in indirect cost allocation,rate modeling Schedule and design,'SDCs,revenue requirements,cost-of-service rates and a Budget wholesale rates. Peter Moy Peter Moy has worked with local, state and federal government Principal-in-Charge agencies for over 40 years. He has staffed and managed a variety of ta QAIQC studies(e.g.,performance audits,financial and budget analysis, M Technical Expertise policy analysis),and has conducted such studies across the spectrum M Final Review of local government services(e.g.,parks,police,fire, community development, courts, fleet,facilities,public works,and utilities). Luke Slaughterbeck Luke Slaughterbeck is an FCS GROUP analyst with experience in Analyst water and stormwater rate and fee development studies and also Data Collection specializes in cost allocation planning.Luke has assisted clients M Analysis - throughout the Pacific Northwest with revenue requirement and '. Modeling cost-of-service studies,multi-year financial'planning,and connection fee development. He has performed in-depth analysis of program financial conditions and prepared reports detailing the results. *Full resumes can heJound in the appendix 2 City of Kent Cost Allocation Plan COST ALLOCATION EXPERIENCE The following exhibit summarizes a partial selection of applicable and relevant FCS GROUP cost allocation plan projects similar to the City's study experience. The summary also details other value added elements of our work. • •MO'= NINE o City of Airway Heights, WA Conducted public safety cost-of-service analysis to identify cost of serving a Public Safety Cost of Service tribal casino and urban growth areas Analysis and Indirect Cost NDeveloped a cost-of-service framework Allocation Plan at Presented results to stakeholders City of Auburn, WA N Development of cost allocation plan that meets OMB A-87 Cost Allocation Plan Provided a model that allows the City to perform its own updates of the plan Interviewed and consulted staff about their workload and what allocation factors best allocate their particular service's costs M Provided model training City of Bonney Lake, WA is Development of full cost allocation plan to provide a cost allocation model Indirect Cost Allocation Plan that allows the City to perform its own updates of the plan * Interviewed and consulted city staff Provided training on how to use the model City of Centralia WA 0 Prepared full-cost allocation plan Indirect Cost Allocation Plan la Provided training documentation, and a cost allocation model Worked with the finance staff to define goals for the plan Developed flexible and adaptable allocation model City of Kennewick, WA Prepared full cost and OMB A-87 compliant cost allocation plans Cost Allocation Plan and 0Provided the City with a Microsoft 0 Excel model to prepare future plans Comprehensive Development Fee w Provided training session on how to use the model and a high-level user and Rate Study guide for the model M Presentation to community stakeholders, and presentations to City staff and the City Council City of Langley WA The City of Langley engaged FCS GROUP to help mitigate concerns Indirect Cost Allocation Plan surrounding its cost allocation methodology Prepared a new indirect cost allocation plan and provided the City with a financial model that would allow the City to prepare its own plans in the future Provided training on indirect cost allocation principles and on the financial model.' City of Port Townsend,WA Provided a series of allocations based on customer data and Indirect Cost Allocation Plan engineeringlplanning criteria to assign utility cost recovery to customers in proportion to their actual demands Created a spreadsheet analysis to allocate the citywide overhead costs to each of the City's utilities and the General Fund 3 City of Kent Cast Allocation Plan *i> I'(;, C;RUUI, City of Richland WA IN Provided objective review of the City s existing direcUmdirect cost allocation Direct/Indirect Cost Recovery plan to determine adequacy and equity in recovering an appropriate amount Review of support services costs from the City s enterprise funds` Met with staff and key stakeholders throughout City departments to - understand their perspective on the charges they incur for citywide support services * Documented findings and presented conclusions and recommended action plan to City staff City of Seattle, WA Developed indirect cost allocation framework and a revised rate methodology Human Services Department inEstablished criteria for identifying indirect cost functions Indirect Cost Allocation Study im Specified a framework for allocating departmental and divisional indirect costs and for calculating indirect cost rates in Assisted the Department's Finance Division in analyzing the impacts of the new framework and rate methodology City of Seattle, WA IN Developed indirect cost allocation framework and a revised rate methodology Office of Housing Indirect Cost 10 Specified a framework for allocating departmental and divisional indirect Allocation Study costs and for calculating indirect cost rates in Assisted the Departments Finance Division in analyzing the impacts of the new framework and rate methodology City of Shelton, WA is Developed indirect cost allocation model Review of Indirect Cost Allocation 0Reviewed the model for consistency and accuracy Model a Provided updated user guide and training on the maintenance of the model Snohomish Health District,WA Updated indirect cost allocation plan and model Indirect Cost Allocation Plan WReviewed model and'developed a framework to incorporate the changes and any new model functions Reviewed updated model with the City City of Spokane, WA in Developed citywide central service cost allocation plan for internal changing Citywide Central Service Cost purposes and use in setting fees Allocation Plan inGenerated OMB A-87 compliant plan for grant reimbursement purposes Delivered the spreadsheet model to the City of staff use Provided related training or Prior work for the City of Spokane included comprehensive user fee studies in 2007 and 2011. City of Spokane Valley, WA Developed citywide central service cost allocation plan for internal changing Citywide Central Service Cost purposes and use in setting fees Allocation Plan aGenerated OMB A-87 compliant plan for grant reimbursement purposes Delivered the spreadsheet model to the City of staff use Provided related training Spokane County, WA Developed three cost plans: a full cost allocation plan, an OMB A-87 cost Cost Allocation and Jail Housing allocation plan, and a detailed law enforcement administration plan Rate Services N Developed rates to charge the users of facilities, including the federal government in Process involved meeting and conducting interviews with County staff to understand its processes and operations in Identified maintenance and operations costs 4 ---........................... ..................._........ City of Kent Cost Allocation Plan .r'b it:S C;1LvJ P City of Stanwood WA Assisted the City of Stanwood in updating its current indirect cost allocation Indirect Cost Allocation Plan and methodology Training a Developed a new indirect cost allocation plan Provided a Microsoft®Excel based model and training to help City staff update the new plan in the future City of Sumner, WA 9 Development of full cost allocation plan to provide a cost allocation model Indirect Full Cost Allocation Plan that allows the City to perform its own updates of the plan Interviewed staff that perform indirect services about their workload and what allocation factors best allocate their particular service's costs Provided training on how to use the model City of Tukwila, WA Developed an indirect cost allocation plan and model Indirect Cost Allocation Plan inProvided documentation and draining on the model Established a cost allocation framework and Microsoft Excel model Identified indirect services and their costs in Developed appropriate allocation factors Calculated allocations to the direct departments/divisions Summarized results in'a plan and report` City of West Richland, WA 0 Preparing indirect cost allocation plan Allows the City to include the costs of Indirect Cost Allocation Plan citywide overhead when seeking reimbursement from federal grants M Providing a copy of the final indirect cost allocation model(based in Microsoft(R) Excel) 9 Train city staff on how to use this model Grays Harbor,WA Developed cost allocation plan for Public Health and Social Services for use Public Health and Social Services in recovering indirect costs from grant-funded programs,consistent with OMB Cost Allocation Plan Circular A-87 Prepared plan analysis in Microsoft Excel Kitsap County, WA Preparation of full cost and A-87 Indirect Cost Allocation Plans Indirect Cost Allocation Plan VAProvided high level operating guide to provide model documentation and tips on using the model Provided training session Washington State Liquor Control IN Update to cost allocation plan and cost of service model Board WA aReflected possible organizational changes and provided more specific cost of Cost Allocation and Cost of service and cost recovery analysis in order to calculate various license fees Service Model Update a Developed a new cost allocation and cost of service framework to respond to privatization initiativesi Updated model to reflect the different scenarios and additional analyses City of Hillsboro, OR Developed an indirect east allocation plan for the City of Hillsboro Indirect Cost Allocation Plan 0Plan was used to allocate City overhead to each direct service organization and maintain sound financial discipline Facilitated direct service units,which charge fees for City services, recover citywide indirect costs 5 ....... City of Kent Cost Allocation Plan m . ..................... . .. . ' Wlli�u llllru City of Portland OR Conducted technical review of General Fund overhead cost recovery Overhead Model Review practices; including federal indirect cost plan Identified recommendations for improvements to the overhead models Reviewed cost allocation models Created a series of recommendations to achieve the objectives originally identified by the city; City of Tigard, OR w Preparation of A-87 Central Service Cost Allocation Plan Cost Allocation Plan and Indirect 0 Met with City staff to educate City staff on the principles of the plan,the Rate Study proposed outcomes of the analysis, and estimates of the resources needed to produce the plan annually Clackamas County,OR Developed and updated its OMB A-87 cost allocation plan and model Develop and Update of the A 87 0Developed allocation'models for facilities and information technology Cost Allocation Plan 0 Provided an explanation of the cost plan and its uses and basis to department and division heads and elected officials Developed enhancements to its spreadsheet cost allocation model - Identified:which internal services should be routinely charged using cost allocation versus direct billing for services provided Identified any hybrid methods of cost recovery that were allowable and prudent under federal OMB A-87 guidelines and industry standard methodology Department of Oregon State IN Prepared central administrative and support cost allocation plan using an Police, OR administrative and support service cost allocation model (ACAM) Administrative Cost Allocation aIdentified allocation factors for each program area to distribute costs in Model proportion to the services provided and)or benefit received Provided recommendations on how to best implement the cost allocation plan within OSP's Administrative Services Division Douglas County OR Developed indirect cast allocation plan based on OMB guidelines and worked Indirect Cost Allocation Plan with the Department of Health and Human Services Marion County, OR Define and develop goals for overhead and administrative costs in cost Cost Allocation Plan Services allocation plans m Identified improvements in cost allocation plan n Development of federally-compliant indirect cost allocation plan and resulting overhead rates City of Coeur d'Alene,ID Indirect cost plan with an emphasis on interfund allocations to the utilities Interfund (Indirect Cost)Allocation 0Previous model and study were no longer valid, and the model was difficult to Study understand and use Worked with the City's department directors, a steering committee that included elected officials, and indirect departmental staff to identify allocation issues and concerns,financial model requirements, and;financial,policy issues Process also included educating City management and staff about indirect cost allocation and the financial principles used to allocate costs Microsoft Excel financial model was created, and FCS GROUP provided training on how to use the model City of Kent Cost Allocation Plan t; PCS GRt uP Town of Dewey-Humboldt,AZ Prepared indirect cost allocation plan Indirect Cast Allocation Plan and mr Conducted comprehensive user fee study of the Town's services User Fee Study N User fee study focused on planning services, building permitting and inspection services, private development engineering services,and municipal court fees City and County of San Francisco, Provided review of the department's existing federal indirect cost allocation CA plan Department of Public Works Cost Review of cost data and structure of cost allocation model Allocation Plan a Analysis of OMB A-87 compliance and accuracy of allocation methodology City of Campbell, CA 0 Prepared indirect cost allocation plan and conducted a comprehensive review Indirect Cost Allocation Plan and of its user fees User Fee Study 0Prepared under the"full"cost method so the City could assign appropriate overhead expenses to its direct service organizations Revised its fee structure to a level that met policy guidelines and helped reduce a budget deficit City of Del Mar; CA Designed a full cost indirect cost allocation plan for the purpose of charging indirect costs to fee generating services and an OMB A-87 plan for charging Indirect Cost Allocation Plan and state and federal grants User Fee Study ■ Calculated the full cost of services for the City's Community Development Department Identification of core business processes,developed fully loaded productive hourly rates for each position, and calculated City of Lodi, CA Developed citywide central service cost allocation plans and annual indirect OMB A-87 Cost Allocation Plans cost proposals and Indirect Cost Rates Established indirect rates for six departments and seven divisions within public works 7 City of Kent Cost Allocation Plan <„y i C',ti GROUP REFERENCES The following project examples demonstrate our recent experience with similarly scoped engagements. City of Kennewick,WA Snohomish Health District,WA Cost Allocation Plan and Comprehensive Development Indirect Cost Allocation Fee and Rate Study,and Ambulance Fee , I i • MEN= Reference: Dan Legard, Finance Director Reference:Tracey Kellogg,CPA,Director of Finance dan.legard@ci.kennewick.wa.us 1 (509)585-4477 tkellogg@snohd.org 1(425)339-8696 210 W 6'h Avenue 3020 Rucker Ave Suite#308 Kennewick,WA 99336 Everett,WA 98201 Prepared full cost and OMB A-87 compliant cost Indirect Cost Allocation Update: In 2015 we allocation plans, ambulance utility cost of service prepared full cost and A-87 indirect cost plans for and fee study, and development fee study the City, including both the plan deliverables and a involving planning, building, and fire development model tool. City staff have successfully maintained permits, met with the area's Home Builders the model tool for annual updates. Due to turnover Association. of staff updating the model, we worked with staff Provided the City with a Microsoft Ca?Excel model to produce updated allocations that reflect to prepare future plans and provided training organizational changes, new data collection session on how to use the model and a high-level processes due to updated financial software, and user guide for the model. Facilitated presentations review of new program functions and distinctions. to community stakeholders, City staff and the City Council. City of Ridgefield,WA Indirect Cost Allocation Update 11101111 • e If Reference: Kirk Johnson, Finance Director kirk.johnson@ci,ridgefeld.wa.us I (360)857-5008 230 Pioneer Street PO BOX 608 Ridgefield,WA 98642 Indirect Cost Allocation Update: We prepared the City's full cost and A-87 indirect cost plans, including both plan deliverables, and a model tool in 2002. We recently worked with staff to revise the model framework to reflect organizational changes and evolving best practices. We are producing updated plan documents reflecting the updated cost allocation findings. City of Kent Cost Allocation Plan o I(f s �;Eof J1, APPROACH AND WORK PLAN ...�.�...._.m.m._............................................................... For all of our projects, especially cost allocation require more on-site time, we find that the plans, our methodology and approach is to work additional time with staff provides a level of closely with staff from the various departments understanding and confidence that makes for greater involved, and in many cases to also meet with efficiencies in the long run. stakeholders who must pay for the services. We Our study process is more than just a "numbers emphasize this approach because we want to crunching" exercise. While every firm developing provide our clients with analysis and models that cost allocation plans can present a table full of meet their needs and that allow them to address numbers,we wan[to actually spend enough time policy issues and make decisions. with the City to fully understand the operations and By applying a solutions-oriented approach when issues related to the City's cost allocations. Our goal developing cost allocation plans, our goal is to is to help the City become self-sufficient. facilitate sound decision-making and management Specifically, we will: by the City staff and public officials. E Work closely with the staff who will be COST ALLOCATION METHODOLOGY responsible for preparing the cost allocation To ensure that the City's overhead costs are plan each year to help them understand the allocated fairly and consistently to its various funds process, and direct service programs, the City has initiated a N Gather input from departments that support the cost allocation study. The goal of this study is to allocated costs in their budgets to educate them provide the City with a cost allocation plan and cost about the process and to allow them to raise any allocation model that will meet federal requirements questions or concerns, and and allow City staff to be self-sufficient in updating 0 Resolve cost allocation issues early in the and maintaining the plan, even as the City's process rather than waiting until the allocation organization and costs change over time. plan is complete FCS GROUP's core philosophy in developing and Our cost allocation methodology and models use a analyzing cost allocation plans is to develop a two-step reciprocal process. The first step is the document that reflects the individual jurisdiction's primary allocation process in which all departments structure and needs in cost allocation. In every and funds, including the indirect service project we manage, our goal is to create a tailored departments, receive a share of indirect costs. To sustainable plan that provides transparency and that ensure that the full cost of indirect services is being infuses "common sense" in the plan by: allocated, the secondary allocation process • Making sure that costs and allocation measures reallocates the indirect service departments' share of are both reasonable and current, the primary allocations. Using the same allocation factors, a direct service department's share of a I• Selecting allocation measures that reasonably secondary allocation is based on its share of the link to the level of service and/or benefit allocation factor compared to only the other direct received, or at a minimum, represent an service departments and funds. The following acceptable means of apportioning cost recovery, exhibit shows the process: Ill Ensuring that results are explainable to internal City stakeholders and their constituents,and M Establishing a longer-term process that is feasible to thoroughly complete on a regular basis and that is acceptable to the planning needs of those most impacted by its results. Our overall approach is to work closely with City staff to identify indirect costs and the allocation factors that best reflect workload and benefits provided to each department. Our task plan reflects this collaborative approach and even though it might 9 Clty of Kent Cost Allocation Plan :;D I't'i GROUP Exhibit 1: Two Step Allocation Process Major elements in the model include data entry for FN s uputI , �cmpTml�I��u/ir9vpm op,��� allocation factors, data entry and modification of � ����f it i��Ul aew I'!A➢l7iim�,�A,9�Dy%up u P costs, allocation of costs to indirect cost pools, ro-iuf,�(aA(/r�r��/sl�ivl�lAlAlu11d6mRrt�ImI��IMr���� ,, selection of reasonable allocation factors, primary oiaEcrsERVIrF .. and secondary cast allocation steps, and relevant l An ble Lose of RROGRAMS INDIRECT SERVICE summaries. TICS GROUP's model does the PROGRAMS muo u, INDIRECTVICE following: - i PROGRAMS J (r�wrriuiy�inrop� »r�we�,�irrrrrcwmrui���ai �ryf Allows additions, revisions, or removal of ���Jt �Jf+a/t'1r1� �➢tIINIfWu�U �IjUlirlP�] direct and overhead costs so that the overhead /monuaLilirri �ii��Aid,aalG�CCwmla t�rJD> cost allocation plan can be easily adapted to a Our model tool is developed based on the unique range of activities both simple and complex, organizational structure and workload measures of 0 Gives the City the ability to continuously the City. Summary outputs and resulting tables update the model and both the full and A-87 provide clear and visually auditable steps from overhead cost allocation plans from year to year indirect cost functions to receiving departments. as the organization changes, Exhibit 2: Example of a Federal Indirect Cost I Has distinct input and calculation areas, Allocation Summary 0 Incorporates error checks, and 0 Provides allocation summaries including a mr,p un aq�y 11 Y fiFkalW A (emel S wu vqw L nnor 'm nrA s „a ma rmbreakdown of each department's allocated costs I'm tF .Yen ,+urby indirect service. 4na1 S xnn 4Y5asro s �,�r es+ R should also be noted that our model has been used HM]eA by many cities to allocate facility and information TICS GROUP uses a base Microsoft&v Excel model technology costs as part of the cost allocation that can be adapted to meet the individual needs of process, even if the costs are based on budgeted our clients. Based on the City's input in the previous costs, actual expenditures from the prior year, or an task, FCS GROUP will develop the cost allocation internal service fund. models that meet the City's functional requirements for the model. 10 City of Kent Cost Allocation Plan qt [:T"7 i,=1 �uf, WORK PLAN Task 3: Review the Cost Allocation Framework To deliver full cost and 2 CFR Part 225 cost with City Staff allocation plans to the City, we have developed the Once we complete the interviews, we will following task plan that incorporates the City's summarize the framework to be used and then priorities listed in the RFI primary tasks. review it with the City staff before we begin the analysis.The framework will identify the indirect Task 1: Define the Purpose, Uses, and Goals cost pools and allocation factors as the example for the Cost Allocation Plan shows in the following exhibit. We will conduct a kick-off meeting with the City's project team to discuss the purpose,uses and goals for the cost allocation plans, including discussion of n l whether certain costs would be better recovered through indirect allocation or potential internal till%It 1 l<a 1 1e ,�.q. v 1, �. a l nn l v tl li include a discussion of roles and responsibilities, 16 service funds. As art of the meeting we will also p � ,lr, State Auditor and federal requirements, City policies and practices,project execution, schedule Ill 1L - l JlI1,111 and key milestones, readily-available data,and ,in I J,1,Ill I 1,. [ .. subsequent data collection tasks. 'lw ° l° ' l I l I 'l1 Y ��'°1, 41 11 ..... 1,I "" ......... .... Prior to the meeting we will submit an initial data '"` �.^ . �� � er request that might include 2017 City expenditures �40111�1, ( Hill iml l l i ,i"'. , offl by department/fund, organizational charts, potential allocation factor data, and any other analyses and This review meeting will be conducted via the reports that might be appropriate. As we proceed online screen sharing application Ring Central, with the interview and data gathering processes,we expect that we will have questions and additional Task 4: Develop the Full Cost & 2 CFR 225 requests. Allocation Results Task 2: Interview Key City Stakeholders Once the framework has been confirmed,we will begin the analytical process by setting up the model, To gain and understanding of the City's business reviewing and requesting any additional data, processes and operations, we will interview the City identifying any unallowable federal costs, and staff from administrative or support services conducting the full cost and 2 CFR 225 analyses departments or divisions,either individually or in with the customized model. During the analysis, we small groups (based on staff availability), to obtain will work with the City staff contacts to resolve any perspectives and an understanding about any issues issues that might occur. related to overhead cost allocations, understand Once the final results have been determined after their organizational structure, define the services provided and potential cost pools, and identify Task presentation,we will provide the City with the Excel l model for it future use. appropriate allocation criteria. Specifically, we will work with City staff to define: Task 5: Review Results with City Staff ipkl Indirect and direct services, When the preliminary results are available,we will • Cost pools, meet with the City staff to review assumptions, data, changes, and findings. If staff have feedback ® Allocation factors, requiring changes or additional data, we will work The necessary financial and statistical data for with the City to update the results. the cost pools and allocation factors, and ® The overall cost allocation framework. ...._.......................................................... 1 .............. City of Kent Cost Allocation Plan :;b t+C'S G lt0 U P Task G: Prepare Cost Allocation Plans Oplional Task 8— Conduct a Model Training After confirming the preliminary results we will Session for City Staff begin preparing the formal draft cost allocation Once the model is finalized,we will conduct an on- plans identifying overhead cost pools and their site training session for City staff on model inputs, allocation factors, allocation amounts, resulting the framework, the modeling techniques, and overhead rates, and any other recommendations or updating the model if the City determines that it issues specific to the City's cost plan process and wants such training to improve the knowledge findings. Review and incorporate staff feedback to transfer process. finalize the full cost and 2 CFR 225 plans. Task 7— Presentation of Plan Finding.; We will prepare and make one on-site presentation to City management and staff. The presentation will review the approach, methodology and findings from the cost allocations. If there are any changes to the plans,we will make the adjustments to the model.and the formal plans. SCHEDULE Task 1 - Define the Purpose, Uses, and Goals for the Cost Allocation Plan (onsite meeting) NNIINIIOII NINII111NN Task 2- Interview Key City Stakeholders IIOIIp1OIppIIUI1 @MMMNIOIIpIIIpINOIIIIIIIIIIIIN��WRONOYIININIGMIUIUWXHXNN Task 3 - Review the Cost Allocation Framework with City Staff am n iM1IIN IIIIIIIIIIIIIIIIIIOIIIIIIIIIIONIIwIINI0I0IYYYI00III0IYIYI0II0I0I0I00YI Task 4 - Develop the Full Cost& 2 CFR 225 Allocation Results uumoulllllllllouNllullouwNNlluulNNNON � NINIIIIIIIIIIIII�NI Task 5 - Review Results with City Staff(onsite meeting) o10IIIIIIIIIIINXIIInIIOIIIIIIOIIIIIIIIIIII1111,1 NO I............I....IIIIIIIIIIIII0I0IIIIIIII Task 6- Prepare Cost Allocation Plans „�� �NNIIIII„NIIIIINNIIII„IIIIIIIIIIIIIIIIIIII „IIIIIIIIIIIIIINNIIII�IIIIIoIIN�NN� Task 7 - Presentation of Plan Findings (onsite meeting) oil NIIIIIIIIIIIIIIIIII�IIIIII�NNIIII...................IIIINN, Optional Task 8 -- Conduct a Model Training Session for city staff ............._...m.-....... ..................._..... 12 City of Kent Cost Allocation Plan 1r3, RCS GROUP COST PROPOSAL The following is the fee proposal for the study. 7be I',I Rates: $250 $175 $130 $80 rpose,Uses,and Goals for the Cost Allocation Plan 3 3 $525 City Stakeholders(on-sit meetings) 6 6 12 $1.830 Taps 3'.Review the Cosl Allocatlon Framework with City Staff 1 1 2 4 $695 Task 4-Develop the Full Cost&2 CFR 200 Allocation Result 1 16 50 67 $9,560 Task 5-Review Result with City Staff(on-sitemeeting) 3 3 6 $915 Task 6-Prepare Cost Allocation Plans 1 6 18 25 $3,650 Task 7-Presentation of Plan Findings(on-slle meeting) 4 4 $700 Prodaml,Management&Administmilon 3 3 6 $765 Trav of(3 on-site meetlngs) $BO r SMIMIMIMIMI Londuct a Model Training 6 2 8 $1,310 r. r r r 13 City of Kent Cost Allocation Plan I u ou 1, APPENDIX A — RESUMES 14 -«e ' I S GROUP Solutions-Oriented Coneulring Courtney Black EDUCATION P oject Manager' F �A a BA,Economics&Political Science,Pacific Lutheran °FCS GROUP University CAREER SUMMARY a 16 years(since 2000)professional experience Courtney is an FCS GROUP project manager with 18 years of experience and more than 150 utility w Joined FCS GROUP in 2001 rate, in-direct cost allocation and financial studies _ throughout the Northwest. She has extensive cost- APEi:f CISIF of-service experience with water, sewer, w Comprehensive Plans and Financial Planning stormwater, and solid waste utilities. Her areas of n Wholesale Rates expertise are in rate modeling and design, system development charges (SDCs) / connection charges, 0 Utility Cost of Service and Rate Studies revenue requirements, cost-of-service rates and 0 System Development Charges(SDC)I Connection Charges wholesale rates. Courtney frequently works with Management Studies engineering and planning partners on utility comprehensive and master planning engagements to m Parity Certifications prepare financial chapters for water, sewer, and stormwater plans for cities, counties, and special CON IAC;I purpose districts. MI CeurtneyB@fcsgroup,corn Courtney is an expert when it comes to rate studies (425)241-9343 and their importance. She has given informative presentations on utility rate setting fundamentals including her most recent presentation at the 2017 Washington Finance Officers Association(WFOA). She is also regularly presents the topic "Rate Setting and Tools for Funding Future Infrastructure," for the Washington State Public Works Board Regional Training Academy. Project experience includes the following. Ir SNOHOMISH HEALTH DISTRICT 0 Cost Allocation Plan FIFE s B&O Tax Survey and Analysis r Indirect Cost Allocation Plan RIDGEFIELD e Indirect Cost Allocation Plan Update SEATTLE • Summit Financial System Technical Assistance o Cost Allocation Analysis and Plan ..........................................._._............... .......__.--..-.-- . .,_........ ... ......... ..------_ ..-._....- .... .,...,.. .......,...... .......,_....... .-.. Courtney Black Resume—Page 1 FCS GROUP Solutions-Orienred Consulting • Human Services Department Cost Allocation KARCHER CREEK SEWER DISTRICT Analysis and Plan • Sewer Comprehensive Plan Financial Chapter and ARLINGTON Rate Study Update • Water and Sewer Rate and Charge Study and Master KING COUNTY WATER DISTRICT 111 Plan Financial Chapters • Rate Forecast Update BATTLE GROUND • Water Financial Chapter • Sewer Rate Forecast and Rate Update KIRKLAN D • Water Master Plan Financial Chapter • Parks and Community Services Cost-of-Service BELLINGHAM Analysis and Rate Study • Sewer Master Plan Financial Chapter and Summary • Sewer Capital Facilities Charge Materials • Water and Sewer Rate Study Update,Revenue • Water Rate Study Update Requirement Update, and Rate Forecast • Water Financial Chapter CARNATION • Water Rate Study Update KLICKITAT PUBLIC UTILITY DISTRICT • Water Master Plan Financial Chapter • Water and Sewer SDC Update • Water and Sewer Rate Study CASHMERE • Water and Sewer Revenue Requirement Analysis LIBERTY LAKE SEWER AND WATER DISTRICT and SDC Study • Water and Sewer Rate Review • Financial Consulting Services(On-call) LUMMI TRIBAL WATER AND SEWER DISTRICT DUVALL • Sewer Capital Tariff Model/Analysis • Water Master Plan Financial Chapter MANCHESTER WATER DISTRICT EATONVILLE • Water Financial Chapter • Water Financial Chapter MASON COUNTY ENUMCLAW • Belfair Financial Forecast, Sewer Service Plan, and • Water, Sewer and Stormwater Rate Study Financial Chapter • Water Financial Chapter • Financial Administrative and Consulting Services • Septic Utility Formation Handbook and EVERETT Management Study • Water Master Plan Financial Chapter • Sewerage Financial Plans • Financial Services Studies MOUNTLAKE TERRACE • Parity Certificate • Water and Sewer Utility Financial Plans • Wholesale Capital Facilities Charge(CFC)Analysis OCEAN SHORES GIG HARBOR • Water Financial Plan • Water Comprehensive Plan Financial Chapter HIGHLAND WATER DISTRICT • Water Financial Plan Courtney Black Resume—Page 2 FCS GROUP SOIU Viol)F—Oriented Consulting OLYMPIA SKYWAY WATER AND SEWER DISTRICT • Financial Consulting Services • Water and Sewer Cost-of-Service Analysis and Rate • Sewer Plan Financial Chapter Study Updates • Water and Sewer Rate and Capital Facilities Charge • Water Cost-of-Service Analysis and Rate Study Update Update • Water, Sewer, and Slormwaler Rate Study Update • Water Financial Chapter Review • Wholesale Rates SPANAWAY WATER COMPANY PASADENA PARK IRRIGATION DISTRICT#17 • Water System Financial Plan • Water Rate and Capital Facilities Charge(CFC) STANWOOD Study • Financial Analysis for Water, Sewer and Drainage Utilities PUYALLUP • Information Technology Fee Study • Water and Sewer Master Plan Financial Chapters • Stormwatcr Rate Study REDMOND • Water and Sewer Financial Analysis • Water and Sewer Rate Evaluation and Update • Water and Sewer Cos[of Service, Rates and Charges RICHLAND Study • Wastewater Financial Plan TENINO • Water Rate Study and Master Plan Financial Chapter • Water and Sewer Rate Study Update • Sewer Rate Study and Master Plan Financial VALLEY VIEW SEWER DISTRICT Chapter • Sewer Rate Update RONALD WASTEWATER DISTRICT WASHOUGAL • General Facilities Charge(GFC)Update • Water and Sewer Cost-of-Service Analysis and Rate SAMISH WATER DISTRICT Study • Sewer Rate Study • Stormwatcr Rate Study Update SHELTON • Water Master Plan Financial Chapter • Water Rate Study • Technical Assistance and Rate Scenarios • Water Master Plan and Financial Plan WEST SOUND UTILITY DISTRICT • Sewer Financial Chapter • Revenue Bond Coverage Analysis • Sewer Revenue Model-Assist Staff Update YAKIMA SKOKOMISH INDIAN TRIBE • Domestic Water Rate Study • Potlatch Sewer Financial/Rate Analysis ® •e e • Sewer Master Plan Financial Analysis—Core Reservation and Potlatch Area CENTRAL OREGON IRRIGATION DISTRICT • Economic Rate Study OREGON CITY • Wholesale Rate Development ---- .... .. ............ ............... ----- - Courtney Black Resume Page 3 Solurions-Oriented C;onSohing SHERWOOD • Future Water Supply Financial Evaluation EN GAG ERIEN(+; • Stormwater Rate and SEC Study • Utilily Rate Setting Fundamentals,Washington • Sewer Rate and SDC Study Finance Officers Association, September 20t7 • Water Revenue Requirement and Rate Forecast • Rate Setting and Tools far Funding Future Update Infrastructure Projects, Washington State Public Works Board Regional Training Academy,Reardan, • Water, Sewer,and Storm Water Financial Chapters May 2017 ST.HELENS • Rate Setting and Tools for Funding Future Infrastructure Projects, Washington State Public • Water, Sewer,and Stormwater Rate Study and Works Board Regional Training Academy,Mt. Update Vernon, February 2017 TIGARD o Rate Setting and Tools jor Funding Future Infrastructure Projects, Washington State Public • Cost Allocation Plan and Indirect Rate Study Works Board Regional Training Academy, Aberdeen, February 2017 • Indirect Cost Allocation Planning,Snohomish SOUTH FORK SEWER DISTRICT County Clerks&Finance Officers Association, November 2016 • Sewer Cost of Service Study • Leveraging the System Plan for Rate Study Savings, Washington Finance Officers Association Annual Conference, September 2015 GALENA • Evaluating Automated Meter Reading, Washington Finance Officers Association Annual Conference, • Utility Rate Study September 18,2003 SITKA(CITY AND BOROUGH) • City and Borough Joint Sewer Master Plan- Financial and Rate Analysis • Water System Master Plan Rate Studies WASHOE COUNTY • Water Rates Analysis for Various Service Areas WEENINEEMENNOMEM KELOWNA, B.C. • 20-Year Strategic Capital Plan DISTRICT OF NORTH VANCOUVER,B.C. • Water, Sewer, Stormwater and Solid Waste Rate Studies Courtney Black Resume—Page 4 •:; : GROUP Solurionsdhienred Consulting Peter Moy EDL)CA"I"ION Principal in Charge m MBA, Finance, University of California,Berkeley FCS GROUP at BS, Finance and Organizational Behavior and Industrial f Relations, University of California, Berkeley CAREER SUMMARY Peter Moy is an FCS GROUP principal with over 45 years(since 1972)professional experience 45 years of public sector experience specializing in public finance, program evaluation, personnel and m Joined FCS GROUP in 2000 organizational analysis, management and operational reviews, performance audits, and policy EXPERTISE analysis. He has worked with a variety of non- m Financial Planning and Analysis profit organizations and governmental agencies and provides clients with a thorough knowledge of w Indirect Cost Allocation Plans government operations and innovative and to Cost of Service/Cost Recovery workable solutions to issues and problems. Mr. at Impact Fees Moy has a broad understanding and expertise in how government sets and implements policies, how m Development Services Fees the many different government functions are M User Fees performed, and what roles the public, community a Performance Audits organizations, and employees have in making government responsive to their needs. m Organizational Analysis and Change Mr. Moy began his career as a management auditor 0 Benchmarking and Comparative Studies with the Congressional watchdog agency, the It Annexations and Development Analysis United States General Accounting Office. He later w. Mergers,Acquisitions,Assumptions,Consolidations, worked for the Seattle City Council as a program Divestitures analyst and as the Assistant Director of the Council's Central Staff where he acted as the City PROFESSIONAL.AFFILIATIONS Council's primary financial advisor and managed a staff responsible for analyzing policy, program, and is Associate Member,WCCMA management issues, a Associate Member,Association of Washington Cities CONTACT N PeterM@fcsgroup.com ABERDEEN (425)615-6234 0 Ambulance Cost of Service and Rate Study and Update AIRWAY HEIGHTS • Public Safety Cost of Service Analysis • Cost of Library Alternatives ASOTIN • EMS Cost Allocation ASOTIN COUNTY • EMS Cost Allocation ... ............. ..... .........................................._............... ...........__........... Peter May Resume—Page 1 VCS GROUP Solurinns-Ohiemed Consulting AUBURN PORT OF BREMERTON • Development Fee Study • Kitsap SEED Project Financial Analysis • Ambulance Cost-of-Service Analysis and Rate Study BREMERTON • OMB A-87 Cost Allocation Plan and Model • Water, Sewer,Stormwatcr GFC Update and Review ARLINGTON BURIEN • Ambulance Cost of Service and Rate Study • Cost of Service Study and Fee Policy BAINBRIDGE ISLAND CASCADE WATER ALLIANCE • Litigation Support • General Financial Consulting • Building and Development Services Fee Study Hard • SPU Wheeling Financial Assistance Copy Documentation • Lake Tapps Financial Assistance BELLEVUE • Issaquah Pipeline Financial Assistance • Development Services Cost of Service Analysis • Tacoma Wholesale financial Assistance • Criminal Prosecution Workload Analysis • Development Services Building Division Cos[of CENTRALIA Service and Fee Analysis • Indirect Cost Allocation Plan • Temporary Labor Annual Review Process CHEHALIS • Fire Cost of Service Financial Consulting;Fire • Annexation Study Assumptions Review Department Incident and Response Workload Forecast and Analysis; Overtime Analysis* • Industrial Area Annexation Fiscal Impact Study BELLEVUE FIRE DEPARTMENT CHELAN COUNTY AND CITY OF WENATCHEE • Downtown Plan • Chelan County/Wenatchee Revenue Sharing Study BELLINGHAM CHELAN COUNTY PUD • Capital Facilities Funding Plan • Strategic Facilities Plan Cast Benefit Analysis • Medic One Cost of Service Analysis CLARK COUNTY • Storm and Surface Water Rate, SEC, and Permit Fee Study • Treatment and Transmission Capacity Planning of the Salmon Creek W W Management System • Building Services Cost of Service and Fee Update • Public Works Facility Cost Analyses • Public Works Permitting Cost of Service and Fee Study CLARKSTON • Waterfront Development Financial Model • EMS Cost Allocation BLAINE COVINGTON • Fast Maple Ridge Fiscal Analysis • Development and Building Permit Cost of Service and Fee Analysis Study BONNEY LAKE • New Development General Fund and Debt Service • Indirccl Cost Allocation Plan Analysis • Finance Department Review COWLITZ COUNTY BOTHELL • Development and Building Permit Cost of Service and Fee Study • Community Development Fee Study Peter May Resume—Page 2 l `S GROUP Solutions-Orienied Coosuldng DES MOINES KING COUNTY • Stormwater Efficiency Rate Study • Facilities Management Rate Survey and Study • Parks Maintenance Performance Audit • Local Hazardous Waste Management Program (LHWMP)Rate Design Evaluation DUPONT • Auditor's Office Assessment of the Wastewater • Public Safely Mitigation Analysis Treatment Division's Productivity Initiative EASTSIDE FIRE&RESCUE • Business Plan of the Office of Economic and Financial Analysis • Funding Task Force Staff Support • Radio Communications Service • Overtime Analysis: Staffing Needs Assessment m King County Council Program Budget Conversion EVERETT Analysis • Financial Services Study • Overhead Analysis FIFE KING COUNTY WATER DISTRICT#125 • Equipment Rental and Revolving(ER&R) • Cost Benefit Analysis Replacement Fund Analysis KIRKLAND • B&O Tax Survey and Analysis • Fire Services Cost Analysis • Emerald Queen Casino Cost of Service Analysis • Revenue Generating Regulatory License Fee Study • Cost Allocation Plan Evaluation KITSAP COUNTY • Jail Cost of Service and Business Process Analysis • Strategic Building Facilities Plan FRIDAY HARBOR • Parks and Recreation Cast Recovery Policy and Fee • Fire Department Consolidation and Financial Update Analysis • Indirect Cost Allocation Plan GORDON THOMAS HONEYWELL • Financial Management Review • Gateway Paci[ic Terminal Fiscal Impact Analysis • Analysis of the Proposed 1SC Race Track HOQUTAM • Surface and Stormwater Management Performance Audit • Ambulance Utility Cost of Service and Rate Study KITTITAS COUNTY ISLAND COUNTY FIRE DISTRICT#1 • Development Fee Cost of Service and Model Update • Cost of Service and Financial Analysis • Cost Analysis Determination for Setting Permits and ISSAQUAH Fees • Development Services Fee Study LACEY KENMORE • Cost Allocation Plan • Development Services Fee Study LAKE STEVENS KENNEWICK • Financial Planning and Analysis Services • Ambulance Utility Cost of Service and Rate Study LAKEWOOD WATER DISTRICT • Cost Allocation Plan and Comprehensive • Cost Allocation and Rate Assistance Development Fee and Rate Study ............. . ..... ..........., ........ ..........................._,,._ .,_......... ..... Peter Moy Resume—Page 3 •t FCS GROUP sAnrions-Oriented Consulting LONGVIEW MONROE • Fleet Fund Analysis • Fire Annexation Issues and Council Presentation • Fire and EMS Cost of Service and Financial MONTESANO Analysis • Fire and EMS Cost of Service Analysis LYNDEN • Ambulance Utility Cost of Service and Rate Study MOUNTLAKE TERRACE • Utility Overhead Analysis LYNNWOOD • Development Fee Study MOSESLAKE Regional Fire Authority Financial Review m Ambulance Cost of Service and Rate Study • • Independent Financial Analysis MUKILTEO • Firc Department Performance Audit • Community Center Facility Rental Analysis LYNNWOOD PUBLIC FACILITIES DISTRICT NEWCASTLE • Independent Financial Analysis • Building and Planning Permit Cost of Service and Fee Study MAPLE VALLEY NORMANDYPARK • Six Year Financial Forecast • Cost Allocation Plan Assistance MARYSVILLE NORTH WHATCOM FIRE AND RESCUE SERVICES • Fire and EMS Alternatives Assessment • Strategic Plan Financial Forecast • Central Annexation Solid Waste Cost Benefit Analysis OCEAN SHORES MASON COUNTY PUD 93 • Ambulance Cost of Service and Rate Study • Facility Cost Benefit Analysis OLYMPIA MASTER BUILDERS ASSOCIATION OF KING AND • Community Development Fee Study SNOHOMISH COUNTIES • Overhead and Hourly Rate Analysis • Snoqualmie Valley School District Impact Fee • Enterprise Parking Fund Analysis Review • Administrative Cost Analysis for the Department of MCCLEARY Public Works • Ambulance Utility Rates PASCO MERCER ISLAND • Cost Allocation Plan • Development Services Cost of Service and Fee • ESCI Fire Report Review Analysis • Ambulance Utility Cost of Service and Rate Study • Ambulance Utility Rate Analysis and Update • EMS Cost of Service Study and Rate Update • Fire Operations Division Overtime Analysis METRO PARKS TACOMA • Facilities Cost Bcncfit Analysis • Administrative Performance Audit Peter May Resume—Page 4 I ('S GROUP Solutions-Oriented Consulting PIERCE COUNTY RICHLAND • W WC/TOC Facility Cost Benefit Analysis and • Fire Services PNNL Rate Analysis Update RIDGEFIELD • Consolidated Maintenance Facility Cost Benefit Analysis Update • Indirect Cost Plan Review • Cost Benefit Analysis of Facility Consolidation • Transportation Benefit District Formation • Consolidation of Natural Resource Lands SAMMAMISH Management • Fire Services Financial Analysis and Cost Analysis • Government Center Cost Benefit Analysis Briefings and Update • Centralized Maintenance Facility Cost Benefit a Fire Services Evaluation Analysis • Transport Fee and Levy Analysis • Fee Policy Committee Support SAN JUAN COUNTY PORT ANGELES • Commmtity Development Planning Fee Study • PenCom Cost of Service and Rate Study • Rate Advisory Services SEATTLE • Operational Reserve and Set-Aside Study PORT TOWNSEND • Finance and Administrative Services Motor Pool • Cost Allocation Plan Financial Model Update and User Guide • Water and Sewer Rate and SDC Study • Finance and Administrative Services Fee Study and Cost Allocation Plan • Equipment Rental and Replacement Study • Summit Financial System Technical Assistance PUYALLUP a Aquatics and Athletic Field Fee Study • Fire and EMS Alternatives Analysis, Impact Fee Study, Cost Analysis,and Cost of Service Update • Department la Meth Transportation Overhead Cost Allocation Plan Methodology Review • Equipment Rental and Replacement Rate Study • Human Services ADS Case Management Financial • Potential Annexation Analysis Update Analysis • Information Technology Fee Study • Human Services Cost Allocation Analysis and Plan • Cemetery Financial Analysis • Seattle City Light and Seattle Public Utilities Customer Contact Center Cost Allocation Review • Parks Impact Fee Study • Department of Planning and Development Rental QUADRANT CORPORATION Housing,Registration and Inspection Fee Model • North Island Annexation Financial Analysis • Emergency Preparedness Review • Impact Fee Review of the Proposed 2010 SVSD • Management and Administration Review Capital Facilities Plan • Indirect Cost Rate Framework and Methodology • Northwest Landing Capital Facilities Plan Impact • Fire Department Program and Funding Study; Fire Review Department Staffing Analysis;Fire Department • Snoqualmic Ridge Phase H Analysis Management Information Systems Evaluation; Arson Squad Review;Police and Fire Department REDMOND Organizational Review* • Development Services and User Fee Study • Seattle Fire Dept. Operational Analysis&Cost Savings- Phase I& II RENTON • B&O Tax Research Peter Moy Resume-Page 5 •�; R ;`N GROUP So�urions-a._Yrienaxi C:onsutiue SEATTLE-KING COUNTY DEPARTMENT OF PUBLIC SPOKANE HEALTH • Indirect Cost Allocation and Rate Study • Procurement and Contracting Organizational Assessment PORT OF SEATTLE a Comprehensive User Fee Study Update a Concessions Employment Analysis and Forecasting SPOKANE COUNTY SHELTON • Cost Allocation On-Call Technical Assistance a Indirect Cost Allocation Study • Cost Allocation and Jail Housing Rate Services SHORELINE • Full Cost Allocation Plan, Benefit Rates,and Indirect Cost Rates for Police Department • Permitting and Inspection Cost of Service and Cost Recovery Analysis SPOKANE VALLEY SHORELINE FIRE DISTRICT • Citywide Central Service Cost Allocation Plan • Management Study STANWOOD SILVER LAKE WATER&SEWER DISTRICT • Fire Cost of Service and Financial Analysis • Everett Annexation Analysis • Indirect Cost Allocation Plan SKAGIT COUNTY PUD#1 SUMNER • Cost of Service Rate Study • Equipment Rental and Revolving(F.R&R) Replacement Fund Analysis PORT OF SKAMANIA COUNTY a Indirect Full Cost Allocation Plan • Economic Impact Feasibility Study SUNCAOIA RESORTS,INC. SNOHOMISH • Fire Station Property Tax Analysis • Urban Growth Area and Annexation Boundaries Analysis SUNNYSIDE a Ambulance Cost of Service and Rate Study SNOHOMISH COUNTY • Permit Processing Cost Analysis and Funding Study TACOMA • Plant Program Cost of Service Analysis • Planning and Development Services Fee Study • Land Use Permitting Process a Site Development Cost of Service and Fee Study • Cost Recovery and User Fee Study a Cost Allocation and Cost Rate Analysis and Modeling SNOHOMISH HEALTH DISTRICT • Review of Fire Department's Vehicle Maintenance • Cost Allocation Plan Operations* • Financial Consulting Services(On-Call) • Public Works Permit Fee Study SOUTH CORRECTIONAL ENTITIY(SCORE) TACOMA-PIERCE COUNTY HEALTH DEPARTMENT MULTIJURISTDICTIONAL MISDEMEANANT JAIL • Fee Assessment and Fiscal Sustainability Evaluation • Cost and Contribution Analysis TACOMA PUBLIC UTILITIES • Economic Development Fee Analysis • Water Cost of Service Rates Review • South Service Center Cost Benefit Analysis Peter Vey Resume—Page 6 GCS GROUP Solutions-Urimred Consulting THURSTON COUNTY WASHINGTON STATE DEPARTMENT OF SOCIAL AND HEALTH SERVICES • Development Services Cost Recovery&User Fee Update • Business Assessment/Analysis • Mottman Building Schematic Design and Financial WASHINGTON STATE INSTITUTE FOR PUBLIC POLICY Feasibility Studies • Wildfire Suppression Cost Study TIMBERLAND REGIONAL LIBRARY WASHINGTON STATE JOINT LEGISLATIVE AUDIT AND • Cost and Efficiency Review REVIEW COMMITTEE TUKWILA • Cost Allocation Technical Assistance • Segalc Development Analysis Review WASHINGTON STATE LIQUOR CONTROL BOARD • General Fund Revenue Review and Analysis Update • Cost Allocation and Cost of Service Model Update • Indirect Cost Allocation Plan • Bencbmarking and Staffing Analysis • Department of Parks and Recreation Cost of Service and Cost Recovery Analysis WASHINGTON STATE OFFICE OF FINANCIAL MANAGEMENT TUMWATER • Risk-based Contract Audits • Equipment Rental and Replacement Charges Model • Personnel and Client Service Contract Audits Design VANCOUVER WENATCHEE • Olds Station/Sunnyslope Area Sales and Properly • Water,Sewer and Storm Drainage Rate Study Tax Review • Development Review Services Cost of Service Update WEST RICHLAND • Public Works Financial Management Study • Indirect Cost Allocation Plan • Recreation Cost of Service Study WHATCOM COUNTY VANCOUVER FIRE DEPARTMENT • EMS Strategic Plan • Fire Development Fee Update WHITMAN COUNTY WALLA WALLA • Cost Allocation Plan • Permit Center Project • Indirect Cost Allocation Model • Ambulance Cost of Service and Rate Study YAKIMA WASHINGTON STATE AUDITOR'S OFFICE • Utility Billing Business Process Analysis • Performance-Based Contracting Review • City/County Purchasing Merger Implementation Plan • Performance Based Contracting Training WASHINGTON STATE DEPARTMENT OF HEALTH • CHS Financial Analysis and Modeling ASTORIA WASHINGTON STATE DEPARTMENT OF SERVICES FOR • Water and Sewer Rate Forecast THE BLIND BEND • Contracting Review • Community Development Fee Study • Long-Term Financial Plan _- - _ .. ...... ___........ ................. .... .................. ................. Peter Moy Resume—Page 7 •: ��C; GROUP S,,Iodcm; ()dented Consuldng CANBY HILLSBORO • Cost oC Services/User Fee Analysis • Fee and SDC Review • Cost of Service and Fee Model Training • Community Development Cost of Service Study CENTRAL POINT • Indirect Cost Allocation Plan • Long Term Financial Plan • Building and Planning Support Analysis • Indirect Cost Allocation Analysis LANE COUNTY CENTRAL SCHOOL DISTRICT 13J • Stormwater Utility Feasibility Study and Business • Bond Project Performance Review Analysis • Comprehensive User Fee Study CLACKAMAS COUNTY • Code Enforcement Performance Audit MARION COUNTY • Cost Allocation Plan Review and Update • Cost Allocation Plan Services •, Cost of Service Study METRO PORTLAND • Federally Approved Cost Allocation Plan • Solid Waste Disposal Charges Review • Information Services Cost of Service Model MULTNOMAH COUNTY Documentation • Land Use Division Fee Study CLACKAMAS COUNTY SHERIFF'S OFFICE NEWPORT • Cost of Service Study 0 Cost Allocation and User Fee Study CLATSOP COUNTY OAK LODGE SANITARY DISTRICT • Long-term Financial Plan • Agency Merger Evaluation Study • Rural Law enforcement District Financial Analysis COLUMBIA COUNTY OREGON STATE POLICE DEPARTMENT • Administrative Cost Allocation Model • Development Services and Solid Waste Transfer Station Fee Study PORTLAND COTTAGE GROVE • Fire Department Support Analysis • Utility Rate Update • Overhead Model Review DOUGLA5 COUNTY • Facilities Services Review • Indirect Cost Allocation Plan • Incidence and Response Forecasting Model for Bureau of Fire, Rescue and Emergency Services; FOREST GROVE Comparative Analysis of Bureau's Performance Measures* • Library Staffing Analysis and Benchmarking SILVERTON • User Fee Study and Management Consulting • Economic Opportunities Analysis GRESHAM SPRINGFIELD • Fire Department Self-hispection Program Evaluation* • Development Review Cost Analysis and Recovery Methodology Peter Moy Resume—Page 8 ' GROUP Solurions-Orienred Consulting TIGARD KERN COUNTY • Engineering Services Review • Joint Powers Agreement with Bakersfield* • Cost Allocation Plan and indirect Rate Study LODI TUALATIN VALLEY WATER DISTRICT • OMB A-87 Cost Allocation Plans and Indirect Cost • Cost Allocation Plan Rates(2011-2014) WASHINGTON COUNTY LONG BEACH • Contract Administration Review • Fire Study • Equipment Replacement Fund Performance Audit LOS GATOS WILSONVILLE • Indirect Cost Allocation Plan and User Fee Study • Community Development Fund Financial MADERA COUNTY Sustainability Plan • County-wide Cost Allocation Plan and Update WOODBURN PALO ALTO • Internal Controls Review • Overtime and Staffing Analysis POWAY BAKERSFIELD • Cost of Service and Fee Analysis • Joint Powers Agreement with Kern County* • Update of Indirect Cost Allocation Plan BRISBANE • Indirect Cost Allocation Model Update • Water and Sewer Rate Update RIVERSIDE COUNTY CAMPBELL • Fire Department Board Workshop • Implementation Strategies for Financing Fire • Fire Cost of Service Study Service Improvements and Cost Estimates for SACRAMENTO Consolidating Services* • Financing Alternatives for funding the Fire • Indirect Cost Allocation Plan and User Fee Study Department* COASTSIDE FIRE PROTECTION DISTRICT SAN FRANCISCO(CITY AND COUNTY) • Financial Analysis • Department of Public Works Cost Allocation Plan DEL MAR SONOMA • Planning Fee Cost of Service Analysis • Financial Sustainability of FireMed and Feasibility • Indirect Cost Allocation Plan and User Fee Study of the Fire-Based System FRESNO • Fire and EMS Model Training • Police Department Vehicle Impound Fee Analysis INDIAN WELLS ANCHORAGE • Building and Safety Fee Study • Tariff Review Services • Business License Cost of Service Study • Central Service Plan and Indirect Cost Rates ______ __ _.__........ .. ...._. ___......... ..................� .... ......_ .. .. ........... ........ Peter Moy Resume—Page 9 m* ',(,'S GROUP Scrli.uion;r6,)rivrncwa f onsi.ulPiing SKAGWAY PUBLICATIONS/SEMINARS/SPEAKING • Utility Rate Study E.NGAGE.MEN I S • Indirect Cost Allocation Planning,Snohomish County Clerks &Finance Officers Association, DEWEY•HUMBOLDT November 2016 • Indirect Cost Allocation Plan and User Fee Study • Cost Allocation Planning,Washington Stale Community Action Partnership, June 2016 r. . • Fire Service Options. Contracting, Annexations and RFAs,Washington Finance Officers Association, COEUR D'ALENE September 2015 • Interfund Allocation Study • Cost Allocation Plans,Washington Public Treasurers Association,2015 POST FALLS B Fire Service Options: To Be or Not to Be, • Cost Allocation Plan Washington City and County Managers Association, 2013 • ' ' w Looking Ahead—Development Fees and the Cost of Service, Washington Finance Officers Association, SPARKS 2012 • Financial Rate Study for Sanitary, Storm, and • Basics of Performance Based Contracting, Effluent Sewer system Washington Finance Officers Association Annual Conference,2011 ' • Getting the Most out of Outsourcing: Performance Based Contracting, Government Finance Officers BILLINGS Association,2010 • Parks,Recreation, and Public Lands-Assistance in b Consolidation Service, Washington Finance Officers Budget Preparation Association,2010 • Indirect Cost Allocation Methods, Washington Finance Officers Association,2010 ALEXANDRIA • Annexations/Mergers/Consolidation of Fire Services • Fire Department Staffing Analysis -The Financial Side, Washington Finance Officers Association,2009 ARLINGTON COUNTY FIRE DEPARTMENT M Setting up ran Ambulance Utility,Washington • Fire Department Staffing Analysis Finance Officers Association,2007 • Equipment Repair&Replacement. Washington • Finance Officers Association,2007 UNITED STATES FOREST SERVICE a Performance Audit Practice&Results, Washington City/County Management Association,2006 ro Cost Review Panel for FY 2009 Large Fires a Evaluating the Impact of Special Development - Projects, Great Northwest Planning Conference, IMMMOMENEWEENEIM 2007 NANAIMO, BRITISH COLUMBIA • Perlormance A udits. Making Results Workfor You, Washington Finance Officers Association, 2006 • Comprehensive User Fee Study • Performance Audit Practice&Results, Washington City&County Management Association,2006 * performed prior to joining FCS GROUP • Financing Fire and Emergency Medical Services, Washington Finance Officers Association,2003 ....... ..............___ . ... .... ..... .,.,.,.,.,.,.,.,.. Peter Moy Resume—Page 10 �* :,° :: GROUP Solutions-Oriented Consulting Luke Slaughterbeck EDUCATION Analyst a BA, International Business,WSU Honors College, FCS GROUP Washington State University CAREER SUMMARY m Joined FCS GROUP In 2018 Luke Slaughterbeck is an FCS GROUP analyst with experience in water and stormwater rate and fee EXPERTISE:: development studies. He provides data analysis and Iii Cost Allocation Planning spreadsheet modeling in addition to specializing in cost allocation planning. m Rate Study Development(Wafer,Sewer,Stormwater) Prior to joining FCS GROUP, Luke worked as a a Impact Fee Studies financial consultant supporting clients by collecting a Financial Consulting and evaluating economic and financial challenges and offering tailored solutions to meet their specific COVVTAC T needs and goals. re LukeS@fcsgroup.com Luke has assisted clients throughout the Pacific (425)615-6935 Northwest with revenue requirement and cost-of- service studies, multi-year financial planning, and connection fee development. He has performed in- depth analysis of program financial conditions and prepared reports detailing the results. Project experience includes the following. rr RIDGEFIELD M Indirect Cost Allocation Plan Update MEDINA • General Fund Long Term Financial Plan THURSTON COUNTY PUD NO.1 0 Water Rate Analysis SUMNER • Water and Sewer System Plan Financial Chapters SNOHOMISH COUNTY 6 Stormwater Rate Study LAKE STEVENS 0 Stormwater Rate Study _-"_ ....... .... ............... _... ..... .. ............... Luke Slaughterbeck Resume—Page 1 GROUP Solutions-Oriented Consulting HAPPY VALLEY a On-Call Financial Consulting Services e WHITEFISH W Impact Fee Study COEUR D'ALENE 0 Water Rate Study e e .ee SOUTHGATE WATER AND EWER DISTRICTS 8 Financial Advisory Services _-----------------------------------------------..... , , .... .,.-.-.... ............... .... ....... ......-.._.. ., Luke Slaughterbeck Resume Page 2 CITY OF KENT 00 K E T W A S H I N G T G N REQUEST FOR INFORMATION - COST ALLOCATION PLANS Due Date and Time: March 7. 2018 by 4 P.M. City of Kent—Cost Allocations RFI Page 1 of 4 General Information Introduction Kent is the sixth largest city in the state of Washington and the third largest in King County. The City has a Mayor-Council form of government and operates as a Code City per RCW 35A. The City was incorporated in 1890 and has a current population of approximately 127,100. The City is a full-service municipality, providing general government, public works, public safety, planning and community development and recreational services to its residents. The City also operates water, sewer and storm water utilities. Purpose of Request for Information RFi The City of Kent is requesting information for consultant services to develop a full cost allocation plan, as well as a modified cost allocation plan compliant with 2 CFR 225. RFI coordinator/Communications Questions regarding this request for information should be directed to Barbara Lopez via email at biopez@kentwa.aov. Fundilne and Schedule It is anticipated that the contract will call for an hourly rate with a maximum dollar amount. During the final selection process,the City will discuss available project funds and a firm scope of work that will meet the City's objectives within the funds available. The City would like all work performed under the contract completed within three months of receiving the notice to proceed. The final schedule will be negotiated with the selected consultant, but the City requests at least preliminary findings suitable for budget considerations within that timeframe. Response Requirements Submittal Requirements At a minimum,the response should include: F Information about the individual or firm, including name, SSI or EIN number, UBI number, address, contact name and email, etc. Qualifications of the individual or firm to perform the work. At least three client references, including name, address and telephone number or email address, and briefly describe the type of service provided. References within Washington are preferred. City of Kent—Cost Allocations RFI Page 2 of 4 • All work requirements necessary to accomplish the scope of work, including proposed approach, methodology, work plan, and schedules to accomplish the tasks and produce the deliverables. • A cost proposal which includes the estimated number of project work hours and cost for each task/element of the work plan, including any proposed travel expenses. • Any additional information regarding your solution that you deem appropriate. Submittal Format One (1) electronic copy of the Request for Information must be received by the RFI deadline. The City, at its discretion, may make additional copies of the Requests for Information for the purpose of evaluation only. Submittal Response Date and Location Submittals should be submitted to Barbara Lopez by email at blo�ez kentwa.gav„no later than March 7, 2018 at 4:00 PM. All submittals and accompanying documentation will become the property of the City and will not be returned. Scope of Work Full Cost Allocation Plan and 2 CFR 225 Compliant CostAllocotion Plan Specific required outcomes are as follows: • Detailed, city-specific full cost allocation plan • Modified cost allocation plan compliant with 2 CFR 225 • Knowledge transfer to selected City staff of methodology and content • Ongoing access to the electronic model utilized to prepare the plans so that updates can be performed by City staff each year Primary tasks expected to be necessary to complete the scope of work are noted below. The response should recommend other tasks deemed necessary to achieve the required outcomes. • Partner with selected City staff to define the purpose, uses, and goals for an overhead cost allocation plan to ensure that the developed plan will be both accurate and appropriate for the City's current needs. • Conduct interviews as needed to gain an understanding of the City's business processes and operations. • Partner with selected City staff to develop a detailed Full Cost Allocation model to calculate the full costs of providing City services. • Identify any unallowable costs under 2 CFR 225 and prepare a cost allocation model in accordance with the principles of 2 CFR 225. City of Kent—Cost Allocations RFI Page 3 of 4 Co-present draft cost allocation plans to City management and staff for review. Following discussion with staff, make agreed upon changes to the plans. In addition, the City is seeking guidance on methodologies to allocate internal service costs, such as facilities and information technology. We do not expect this contract to cover the work necessary to create the cost allocations; rather we are seeking best practices and/or examples from other organizations. Cost to Develop,Re uestforInformation Costs for developing responses to this RFI are entirely the obligation of the submitting party and shall not be chargeable in any manner to the City. No obligation This request for information imposes no contractual obligation whatsoever on the part of the City or submitting party. Public Records Submitters are cautioned that Washington has very broad public records laws. Any information or documentation submitted to the City has the potential to be publicly disclosed pursuant to a public records request. City of Kent—Cost Allocations RR Page 4 of 4 B m ....mow � m I as 9 W.. w s� a uv sum IQu r' a I� w I in ry N, m w iu �W w „� :5� MImW� MI � AN r Ilb w Im"• ; In m ml„ ^^ w I uu'„ a w u s a 'I ��� °a � w w w ab w "s ,. w •s �,.� „.;, m „.. . .., .. .. s w ^'. s w w v� w w � uu „ w www waa 'w m : I m wmlw m w., a w u ml; a ., w;;^ I �, m o ml s •. ua s u �r w m� .. w w „. '^m u .„ w m Imw w I W '"' �! ° QU w w wm "• w mm w w w .gym I I � I �� II,I I' •'' I m rel PI II mm a m ' 9Pam I:� I J, ii�'101 W II Vp lllr MI4� Illll x u -'Il -uu m