2021.08.17 Cowpacket
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The Committee of the Whole includes all City Council Members CITY COUNCIL COMMITTEE OF THE WHOLE AGENDA Tuesday, August 17, 2021 5:30 P.M. Virtual Only Due to current public health concerns and associated orders – this is a Virtual Meeting – All City Councilmembers and Staff will attend virtually via Zoom. Members of the public are welcome to dial in or watch the meeting. See page 2 for additional information. Call to Order I. Good of the Order II. Items: 1. Seattle Art Project – 20th Anniversary of 9/11 (25-minute presentation / 20-minute discussion) presentation – D. Brudnicki, Council 2. Financial Planning Process (5 minutes) discussion/update – R. Cotton, Administration 3. Personnel Manual Update Process (15 minutes) discussion/update – R. Cotton, Administration 4. Council Retreat Update (5 minutes) discussion/update – R. Cotton, Administration III. Adjournment Written Reports Submitted By: • City Administrator Recruitment Update Administration • Second Quarter 2021 Financial Report Finance Parking Lot / Upcoming Items Items that staff is working on for a future agenda (in alphabetical order). • Cottage Home Policy • Employee Manual (repeal Chapter 4 of DMC) • Public Works Design Standards • Utility Code Update (DMC Chapter 9) • Wireless Facilities Policy Zoom Webinar Information When: Aug 17, 2021 05:30 PM Pacific Time (US and Canada) Topic: Duvall Committee of the Whole meeting - August 17, 2021 Please click the link below to join the webinar: https://zoom.us/j/95223629686 Or One tap mobile : US: +12532158782,,95223629686# or +13462487799,,95223629686# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 253 215 8782 or +1 346 248 7799 or +1 669 900 6833 or +1 929 436 2866 or +1 301 715 8592 or +1 312 626 6799 Webinar ID: 952 2362 9686 International numbers available: https://zoom.us/u/aetP7qdlTf Version 1 INTERIM CITY ADMINISTRATOR To: Mayor Amy Ockerlander Duvall City Council Members From: Ryan Cotton, Interim City Administrator Date: August 11, 2021 Subject: Independent Financial Plan Request For Proposal, Calendar, and Budget Summary The City Council set a budget of $20,000 for an independent financial plan in the 21/22 Biennium Budget. A presentation was made by Jim Nelson of Davidson Company on April 20, 2021 upon invitation from Council Member Lengyel. The Interim City Administrator was assigned by Mayor Ockerlander to initiate an RFP. Residential growth is creating the need to add staff and increase operating expenses. Duvall will likely be categorized as a “First-Class City” under Washington state law in the next decade with the resultant new potential financial expectations. Despite Duvall’s healthy revenue and record residential growth, the revenue and service expenditures of nearly all Washington cities is unstainable in the long-term. The combination of Council and community desires, 11 additional operating staff (some newly budgeted, others planned), the need for capital reinvestment, fiscal uncertainty with sales tax continued growth, and changing utility taxpayers (fewer cable company customers, for example), have led Council to conclude that the review and recommendations from a qualified Consultant will provide the best blueprint for helping the organization thrive over the next ten years, enhance education to the community should a bond issue arise, and provide assurance that certain policy choices are possible, or not possible, depending on a Financial Plan’s conclusions. The intent is to secure a financial consultant to guide Duvall’s leadership through the development of a financial forecasting model to help achieve long-term financial sustainability. The intent is to be forward thinking and to exercise care with scarce resources, yet to also give the elected Mayor and Council Members knowledge about how to achieve the most with the resources that can be expected. Duvall’s bottom-line questions are whether the new staffing is sustainable, how to make the staffing sustainable if not, and how to fund the capital reinvestment needed? Additional Background Through understanding Duvall’s revenues, expenditures, and trends better the Mayor and City Council could monetize the major policy choice “levers” that could in turn enable policymakers to make policy choices. It is therefore hoped this independent analysis and forecast will provide recommendations to improve future forecast’s accuracy, depending on the assumptions and future policy choices. It is further hoped that the City’s method for creating future biennial budgets will be informed by this Plan and that the ten-year plan will be updatable via plugging in more recent numbers into the spreadsheet (i.e. pulling levers) that will become the property of Duvall upon acceptance. 15535 Main Street NE · P.O. Box 1300 · Duvall, WA 98019 · 425.788.1185 · Fax 425.788.8097 www.duvallwa.gov The expected Ten-Year Financial Plan (the Plan) is thereby expected to: • Identify any structural budget issues; • Help evaluate the long-term impact of individual biennium budget decisions; • Create a long-view (Ten-Years) for strategic decision making that can be updated with approval of each biennium’s numbers; • Better understand the long-term impacts on the General Fund’s unreserved and other fund balances; • Better understand the project outcomes of various volatile policy and economic futures/scenarios/”levers”; and • Evaluate capital financing options for the City, including the use of bonding packages, applicable federal or state grants, regionalization, and other potential funding strategies. Note: Approximately $30 million of capital projects are expected to be funded while still trying to accomplish the service demands with up to 11 more staff members (newly budgeted or possibly recommended to be budgeted-- four of which will be term-limited) while planning on implementing results of a soon-to-be- completed Compensation Study. Some positions are likely to be recommended for pay increases to improve retention. Although progress has been made over the last few years in tackling a backlog of capital improvement desires, additional funding will be required for building reinvestments, parks and related amenities, street reconstruction, major capital equipment, and other related projects. Complicating matters, the City of Duvall operates on a Cash Basis, so a true financial picture beyond a given budget is currently difficult to see. Another intent of long-time financial Planning is to get both branches of government (Mayor and the City Council) moving in the same direction at the midway point of the 21/22 Biennium. The results of this Plan will be combined with the results of three other plans that are already under contract: a capital facilities options, a plan for utility options, and a compensation study. The Consultant will have access to these outcomes so they can think holistically about an improved financial future, while minimizing the City’s financial risk. It is expected that some of the goals cannot be achieved with the funds available; the consultants are being asked to submit their proposals with several alternative cost scenarios and advise how the City could streamline, modify, or otherwise phase the project for the best initial outcomes, as well as successive years of funding. To facilitate these future funding choices, the RFP named five of the City’s desires as “alternates” for individual pricing and potential budget amendment consideration. Three providers have been in contact with the Interim City Administrator so far. Upon review and evaluation of the consultants’ submittals by the Interim City Administrator and Finance Director, a recommendation will be submitted to the Mayor for award. RFP Schedule Event Date (All times Pacific) RFP Release August 1, 2021 Pre-Proposal Conferences (optional) August 16 and 23, 8:30 AM remotely Email Re: Intent to Apply (desirable) August 16, 2021 Responses Due By Tuesday, August 24th, 11 AM Interview (depending on respondents) Monday, August 30th, 2 PM remotely Briefing to Finance & Adm. Committee (FAC) September 2nd at 3 PM Recommendation to Mayor and City Council September 3, 2021 Staff Briefing to City Council Committee of September 7, 2021 the Whole Mayoral Approval September 8, 2021 Notice to Proceed & Start Date September 9, 2021 Recommendation Answer questions refine the intent if necessary and discuss budget flexibility. Attachments Full RFP Independent Financial Advisor to Conduct A Ten-Year Financial Plan Request For Proposals FINAL August 5, 2021 Due by August 24th by 11:00 AM on Public Purchase or to Jodi Wycoff, City Clerk [email protected] 1 NOTICE & GENERAL INFORMATION The City of Duvall is interested in contracting with an independent, municipal advisor to research, provide, and recommend a Ten-year Financial Plan, complete with at least six (6) alternate scenarios with each of their spreadsheets in updatable format, and/or a better outcome tool, that you recommend based on your experience. Your response should be sent to the Public Purchase at the location below or sent to City Clerk Jodi Wycoff, [email protected]. The deadline for submittal of proposals is 11:00 AM, August 24th Pacific Time, 2021. The City is using Public Purchase to post, respond to inquiries, and accept responses. To register with Public Purchase for free, go to the link provided below and follow the registration instructions under the section titled “Register for Free.” (It can take up to 24 hours for an account to be activated, so make sure you register well ahead of the proposal deadline. Once you’ve registered, follow directions to register under the City of Duvall. This will allow you access to the request for proposal, the ability to ask questions, read answers to questions others have summitted, and the ability to submit your proposal electronically.) Electronic submittal is the preferred way of proposal delivery. To reply to this RFP, please submit a proposal of no more than five pages covering the items listed at the end of this packet regarding RESPONSE TEMPLATE COVER SHEET.