HomeMy WebLinkAboutManagement Partners - Professional Services AgreementT
BETWEEN
CITY OF YAKIMA, WASHINGTON
AND
MANAGEMENT PARTNERS
FOR PROFESSIONAL SERVICES
THIS AGREEMENT, made and entered into on this day of April 2021, by and between the
City of Yakima, Washington, a municipal corporation with its principal office at 129 North Second Street,
Yakima, WA 98901, hereinafter referred to as "CITY", and Management Partners with its principal office at
1730 Madison Road, Cincinnati, Ohio, 45206hereinafter referred to as "CONSULTANT"; said corporation
is licensed and registered to do business in the State of Washington, and will provide services under this
Agreement for Professional Services associated with conducting an organizational analysis of the City of
Yakima's Finance Department, as outlined in this Agreement and Exhibit A, attached hereto and fully
incorporated herein, hereinafter referred to as "SERVICES" or "WORK" on behalf of the City of Yakima.
WITNESSETH:
RECITALS
WHEREAS, CITY desires to retain the CONSULTANT to provide services described in this
Agreement, incorporated Exhibits and subsequent Amendments thereto; and
WHEREAS, CONSULTANT represents that it has available and offers to provide personnel with
knowledge and experience necessary to satisfactorily accomplish the work within the required time and that
it has no conflicts of interest prohibited by law from entering into this Agreement;
NOW, THEREFORE, CITY and CONSULTANT agree as follows:
SECTION 1 INCORPORATION OF RECITALS
The above recitals are incorporated into these operative provisions of the Agreement.
SECTION 2 SCOPE OF SERVICES
2.1 CONSULTANT agrees to perform those services described hereafter. Unless modified in writing
by both parties, duties of CONSULTANT shall not he construed to exceed thosc services
specifically set forth herein.
2.2 CONSULTANT shall use its best efforts to maintain continuity in personnel and shall assign, Steve
Toler as Consultant -in -Charge throughout the term of this Agreement with other personnel
contributing to the Services as outlined in the Scope of Work, Exhibit A.
2.3 Basic Services: CONSULTANT agrees to perform those tasks described in Exhibit A, entitled
"Scope of Work" (WORK) which is attached hereto and made a part of this Agreement as if fully
set forth herein.
2.4 Additional Services: It is not anticipated that any additional services other than those outlined in
the Scope of Work will be necessary. However, CITY and CONSULTANT agree that not all
WORK to be performed by CONSULTANT can be defined in detail at the time this Agreement is
executed, and that additional WORK related to the Project and not covered in Exhibit A may be
needed during performance of this Agreement. CITY may, at any time, by written order, direct the
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CONSULTANT to revise portions of the WORK previously completed in a satisfactory manner,
delete portions of the WORK, or request that the CONSULTANT perform additional WORK
beyond the scope of the WORK. Such changes hereinafter shall be referred to as "Additional
Services."
2.4.1 If such Additional Services cause an increase or decrease in the CONSULTANT'S cost of,
or time required for, performance of any services under this Agreement, a contract price
and/or completion time adjustment pursuant to this Agreement shall be made and this
Agreement shall be modified in writing accordingly.
2.4.2 Compensation for each such request for Additional Services shall be negotiated by the
CITY and the CONSULTANT, and if so authorized, shall be considered part of the
WORK. The CONSULTANT shall not perform any Additional Services until so
authorized by CITY and agreed to by the CONSULTANT in writing.
2.5 The CONSULTANT must assert any claim for adjustment in writing within thirty (30) days from
the date of the CONSULTANT's receipt of the written notification of change.
SECTION 3 CITY'S RESPONSIBILITIES
3.1 CITY -FURNISHED DATA: The CITY will provide to the CONSULTANT all technical data in
the CITY'S possession relating to the CONSULTANT'S services on the WORK.
3.2 ACCESS TO FACILITIES, PERSONNEL AND DOCUMENTS: The CITY will make its facilities
reasonably accessible to CONSULTANT as required for CONSULTANT'S performance of its
services and will provide documents as reasonably required by CONSULTANT for such access.
CITY will make certain personnel available for interviews to provide information to
CONSULTANT to complete the WORK.
3.3 TIMELY REVIEW: The CITY will examine the CONSULTANTS studies, reports, proposals, and
other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond and
financial advisors, and other consultants as CITY deems appropriate; and render in writing decisions
required of CITY in a timely manner. Such examinations and decisions, however, shall not relieve
the CONSULTANT of any contractual obligations nor of its duty to render professional services
meeting the standards of care for its profession.
3.4 CITY shall appoint a CITY'S Representative with respect to WORK to be performed under this
Agreement. CITY'S Representative shall have complete authority to transmit instructions and
receive information. CONSULTANT shall be entitled to reasonably rely on such instructions made
by the CITY'S Representative unless otherwise directed in writing by the CITY, but
CONSULTANT shall be responsible for bringing to the attention of the CITY'S Representative any
instructions which the CONSULTANT believes are inadequate, incomplete, or inaccurate based
upon the CONSULTANT'S knowledge.
3.5 Any documents, services, and reports provided by the CITY to the CONSULTANT are available
solely as additional information to the CONSULTANT and will not relieve the CONSULTANT of
its duties and obligations under this Agreement or at law. The CONSULTANT shall be entitled to
reasonably rely upon the accuracy and the completeness of such documents, services and reports,
but shall be responsible for exercising customary professional care in using and reviewing such
documents, services, and reports and drawing conclusions there from.
SECTION 4 AUTHORIZATION, PROGRESS, AND COMPLETION
In signing this Agreement, CITY grants CONSULTANT specific authorization to proceed with WORK
described in Exhibit A. The time for completion is defined in Exhibit A, or as amended.
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SECTION 5 COMPENSATION
5.1 For the services described in Exhibit A, compensation shall be no more than Twenty -Five Thousand
Dollars ($25,000.00) as outlined on Exhibit A, inclusive of all costs and expenses.
5.2 The CONSULTANT will complete the WORK within the budget and will keep CITY informed of
progress toward that end so that the budget or WORK effort can be adjusted if found necessary.
The CONSULTANT is not obligated to incur costs beyond the indicated budget, as may he adjusted,
nor is the CITY obligated to pay the CONSULTANT beyond these limits. When any budget has
been increased, the CONSULTANT'S excess costs expended prior to such increase will be
allowable to the same extent as if such costs had been incurred after the approved increase, and
provided that the City was informed in writing at the time such costs were incurred.
5.3 Payment. The CONSULTANT shall submit to the City's Representative periodic invoices, but not
more often than monthly, for services completed. Such invoices shall be for services and WORK
performed and costs incurred prior to the date of the invoice and not covered by previously submitted
invoices. The CONSULTANT shall submit with each invoice a summary of time expended on the
PROJECT for the current billing period, and any other supporting materials determined by the City
necessary to substantiate the costs incurred. CITY will use its best efforts to pay such invoices
within thirty (30) days of receipt and upon approval of the WORK done and amount billed. CITY
will notify the CONSULTANT promptly if any problems are noted with the invoice. CITY may
question any portion of an invoice, noting to CONSULTANT the questionable item(s) and
withholding payment for such item(s). The CONSULTANT may resubmit such item(s) or portions
of the invoice, in a subsequent invoice together with additional supporting information required.
SECTION 6 RESPONSIBILITY OF CONSULTANT
6.1 INDEMNIFICATION,
(a) CONSULTANT agrees to defend, indemnify, and hold harmless the CITY, its elected
officials, agents, officers, employees, agents and volunteers (hereinafter "parties
protected") from (1) claims, demands, liens, lawsuits, administrative and other
proceedings,(including reasonable costs and attorneys' fees) and (2) judgments, awards,
losses, liabilities, damages, penalties, fines, costs and expenses of any kind claimed by third
parties arising out of, or related to any death, injury, damage or destruction to any person
or any property to the extent caused by any negligent act, action, default, error or omission
or willful misconduct arising out of the CONSULTANT's performance under this
Agreement. In the event that any lien is placed upon the City's property or any of the City's
officers, employees or agents as a result of the negligence or willful misconduct of the
CONSULTANT, the CONSULTANT shall at once cause the same to be dissolved and
discharged by giving bond or otherwise.
(b)
CITY agrees to indemnify and hold the CONSULTANT harmless from loss, cost, or
expense of any kind claimed by third parties, including without limitation such loss, cost,
or expense resulting from injuries to persons or damages to property, caused solely by the
negligence or willful misconduct of the CITY, its employees, or agents in connection with
the service.
(c) If the negligence or willful misconduct of both the CONSULTANT and the CITY (or a
person identified above for whom each is liable) is a cause of such third party claim, the
loss, cost, or expense shall be shared between the CONSULTANT and the CITY in
proportion to their relative degrees of negligence or willful misconduct and the right of
indemnity will apply for such proportion.
(d) Nothing contained in this Section or this Agreement shall be construed to create a liability
or a right of indemnification in any third party.
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6.2 In any and all claims by an employee of the CONSULTANT, any subcontractor, anyone directly or
indirectly employed by any of them, or anyone for whose acts any of them may he liable, the
indemnification obligations under this Agreement shall not be limited in any way by any limitation
on the amount or types of damages, compensation, or benefits payable by or for the CONSULTANT
or a subcontractor under workers' or workmens' compensation acts, disability benefit acts, or other
employee benefit acts.
SECTION 7 AUDIT, ACCESS TO RECORDS AND RECO' ) KEEPING
7.1 The CONSULTANT, including its subconsultants, shall maintain books, records, documents and
other evidence directly pertinent to performance of the WORK under this Agreement in accordance
with generally accepted accounting principles and practices consistently applied. The CITY, or the
CITY'S duly authorized representative, shall have access to such books, records, documents, and
other evidence for inspection, audit, and copying for a period of three years after completion of the
WORK. The CITY shall also have access to such books, records, and documents during the
performance of the WORK, if deemed necessary by the CITY, to verify the CONSULTANT'S
WORK and invoices.
7.2 Audits conducted pursuant to this section shall be in accordance with generally accepted auditing
standards and established procedures and guidelines of the reviewing or auditing agency.
7.3 The CONSULTANT agrees to the disclosure of all information and reports resulting from access to
records pursuant to this section provided that the CONSULTANT is afforded the opportunity for an
audit exit conference and an opportunity to comment and submit any supporting documentation on
the pertinent portions of the draft audit report and that the final audit report will include written
comments, if any, of the CONSULTANT.
7.4 The CONSULTANT shall ensure that the foregoing paragraphs are included in each subcontract for
WORK.
7.5 Any charges of the CONSULTANT paid by the CITY which are found by an audit to be
inadequately substantiated shall be reimbursed to the CITY.
7.6 The records relating to the WORK shall, at all times, be subject to inspection by and with the
approval of the CITY, but the making of (or failure or delay in making) such inspection or approval
shall not relieve CONSULTANT of responsibility for performance of the WORK in accordance
with this Agreement, notwithstanding the CITY'S knowledge of defective or non -complying
performance, its substantiality or the ease of its discovery. CONSULTANT shall provide the CITY
sufficient, safe, and proper facilities, and/or send copies of the requested documents to the CITY.
CONSULTANT'S records relating to the WORK will be provided to the CITY upon the CITY'S
request.
7.7 CONSULTANT shall promptly furnish the CITY with such information and records which are
related to the WORK of this Agreement as may be requested by the CITY. Until the expiration of
six (6) years after final payment of the compensation payable under this Agreement, or for a longer
period if required by law or by the Washington Secretary of State's record retention schedule,
CONSULTANT shall retain and provide the CITY access to (and the CITY shall have the right to
examine, audit and copy) all of CONSULTANT'S books, documents, papers and records which are
related to the WORK performed by CONSULTANT under this Agreement.
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7.8 All records relating to CONSULTANT'S WORK under this Agreement must be made available to
the CITY, and the records relating to the WORK are City of Yakima records. They must he
produced to third parties, if required pursuant to the Washington State Public Records Act, Chapter
42.56 RCW, or by law. All records relating to CONSULTANT'S services under this Agreement
must be retained by CONSULTANT for the minimum period of time required pursuant to the
Washington Secretary of State's records retention schedule.
7.9 The terms of this section shall survive any expiration or termination of this Agreement.
SECTION 8 INSURANCE
8.1 At all times during performance of the Services, CONSULTANT shall securc and maintain in effect
insurance to protect the City and the CONSULTANT from and against all claims, damages, losses,
and expenses arising out of or resulting from the performance of this Contract. CONSULTANT
shall provide and maintain in force insurance in limits no less than that stated below, as
applicable. The City reserves the rights to require higher limits should it deem it necessary in the
best interest of the public.
8.1.1 Commercial General Liability Insurance. Before this Contract is fully executed by the
parties, CONSULTANT shall provide the City with a certificate of insurance as proof of
commercial liability insurance and commercial umbrella liability insurance with a total
minimum liability limit of Two Million Dollars ($2,000,000.00) per occurrence combined
single limit bodily injury and property damage, and Two Million Dollars ($2,000,000.00)
general aggregate. The certificate shall clearly state who the provider is, the coverage
amount, the policy number, and when the policy and provisions provided are in effect. Said
policy shall be in effect for the duration of this Contract. The policy shall name the City,
its elected officials, officers, agents, employees, and volunteers as additional insureds, and
shall contain a clause that the insured will not cancel or change the insurance without first
giving the City thirty (30) calendar days prior written notice. The insurance shall be with
an insurance company or companies rated A-VII or higher in Best's Guide and admitted in
the State of Washington.
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8.1.2. Commercial Automobile Liability Insurance.
a. If CONSULTANT owns any vehicles, before this Contract is fully executed by
the parties, OIC shall provide the City with a certificate of insurance as proof of
commercial automobile liability insurance and commercial umbrella liability insurance
with a total minimum liability limit of Two Million Dollars ($2,000,000.00) per
occurrence combined single limit bodily injury and property damage. Automobile
liability will apply to "Any Auto" and be shown on the certificate.
b. If CONSULTANT does not own any vehicles, only "Non -owned and Hired
Automobile Liability" will be required and may be added to the commercial liability
coverage at the same limits as required in that section of this Contract, which is Section
8, l .1 entitled "Commercial General Liability Insurance".
c. Under either situation described above in Section 8.1.2.a and Section 8.1.2.b, the
required certificate of insurance shall clearly state who the provider is, the coverage
amount, the policy number, and when the policy and provisions provided are in
effect. Said policy shall be in effect for the duration of this Contract. The policy shall
name the City, its elected officials, officers, agents, employees, and volunteers as
additional insureds, and shall contain a clause that the insured will not cancel or change
the insurance without first giving the City thirty (30) calendar days prior written
notice. The insurance shall be with an insurance company or companies rated A-VII or
higher in Best's Guide and admitted in the State of Washington.
8.1.3. Statutory workers' compensation and employer's liability insurance as required by state
law.
8.1.4 Professional Liability Coverage. Before this Contract is fully executed by the parties,
CONSULTANT shall provide the City with a certificate of insurance as proof of
professional liability coverage with a total liability limit of the limits required in the
policy, subject to minimum limits of Two Million Dollars ($2,000,000.00) per claim,
and Two Million Dollars ($2,000,000.00) aggregate. The certificate shall clearly state
who the provider is, the coverage amount, the policy number, and when the policy and
provisions provided are in effect. Said policy shall be in effect for the duration of this
Contract. The insured shall not cancel or change the insurance without first giving the
CITY thirty (30) calendar days prior written notice. The insurance shall be with an
insurance company or companies rated A-VII or higher in Best's Guide. If the policy is
written on a claims made basis the coverage will continue in force for an additional two
years after the completion of this contract.
8.2 Failure of either or all of the additional insureds to report a claim under such insurance shall not
prejudice the rights of the CITY, its elected and appointed officials, officers, employees, agents, and
representatives there under. The CITY and the CITY's elected and appointed officials, officers,
principals, employees, representatives, and agents shall have no obligation for payment of premiums
because of being named as additional insureds under such insurance. None of the policies issued
pursuant to the requirements contained herein shall be canceled, allowed to expire, or changed in
any manner that affects the rights of the CITY until thirty (30) days after written notice to the CITY
of such intended cancellation, expiration or change.
SECTION 9 SUBCONTRACTS
CONSULTANT shall be entitled, to the extent determined appropriate by CONSULTANT, to subcontract
any portion of the WORK to be performed under this Agreement, only after written consent of the CITY.
No subcontracting of WORK is anticipated.
SECTION 10 ASSIGNMENT
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This Agreement is binding on the heirs, successors and assigns of the parties hereto. This Agreement may
not be assigned by CONSULTANT without prior written consent of the CITY. It is expressly intended and
agreed that no third party beneficiaries are created by this Agreement, and that the rights and remedies provided
herein shall inure only to the benefit of the parties to this Agreement.
SECTION 11 INTEGRATION
This Agreement along with the City RFP and the Consultant's response to the RFP represents the entire
understanding of CITY and CONSULTANT as to those matters contained herein. No prior oral or written
understanding shall be of any force or effect with respect to those matters covered herein. This Agreement
may not be modified or altered except in writing signed by both parties.
SECTION 12 JURISDICTION AND VENUE
This Agreement shall be administered and interpreted under the laws of the State of Washington. Jurisdiction
of litigation arising from this Agreement shall be in Washington State. If any part of this Agreement is found
to conflict with applicable laws, such part shall be inoperative, null, and void insofar as it conflicts with said
laws, but the remainder of this Agreement shall be in full force and effect. Venue for all disputes arising
under this Agreement shall be in a court of competent jurisdiction in Yakima County, State of Washington.
SECTION 13 EQUAL EMPLOYMENT and NONDISCRIMINATION
During the performance of this Agreement, CONSULTANT and CONSULTANT's subconsultants shall not
discriminate in violation of any applicable federal, state and/or local law or regulation on the basis of age,
sex, race, creed, religion, color, national origin, marital status, disability, honorably discharged veteran or
military status, pregnancy, sexual orientation, and any other classification protected under federal, state, or
local law. This provision shall include but not be limited to the following: employment, upgrading, demotion,
transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, selection
for training, and the provision of services under this Agreement. CONSULTANT agrees to comply with the
applicable provisions of State and Federal Equal Employment Opportunity and Nondiscrimination statutes
and regulations.
SECTION 14 SUSPENSION OF WORK
CITY may suspend, in writing by certified mail, all or a portion of the WORK under this Agreement if
unforeseen circumstances beyond CITY'S control are interfering with normal progress of the WORK.
CONSULTANT may suspend, in writing by certified mail, all or a portion of the WORK under this
Agreement if unforeseen circumstances beyond CONSULTANT's control are interfering with normal
progress of the WORK. CONSULTANT may suspend WORK in the event CITY does not pay invoices
when due, except where otherwise provided by this Agreement. The time for completion of the WORK shall
be extended by the number of days WORK is suspended. If the period of suspension exceeds ninety (90)
days, the terms of this Agreement are subject to renegotiation, and both parties are granted the option to
terminate WORK on the suspended portion of WORK in accordance with SECTION 15.
SECTION 15 TERMINATION OF WORK
15.1 Either party may terminate this Agreement, in whole or in part, if the other party materially breaches
its obligations under this Agreement and is in default through no fault of the terminating party.
However, no such termination may be effected unless the other party is given: (1) not less than
fifteen (15) calendar days written notice delivered by certified mail, return receipt requested, of
intent to terminate; and (2) an opportunity for consultation and for cure with the terminating party
before termination. Notice shall be considered issued within seventy-two (72) hours of mailing by
certified mail to the place of business of either party as set forth in this Agreement.
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15.2 In addition to termination under subsection 15.1 of this Section, CITY may terminate this
Agreement for its convenience, in whole or in part, provided the CONSULTANT is given not less
than fifteen (15) calendar days written notice delivered by certified mail, return receipt requested,
of the dccision to terminate.
15.3 If CITY terminates for default on the part of the CONSULTANT, an adjustment in the contract
price pursuant to the Agreement shall be made, but (1) no amount shall be allowed for anticipated
profit on unperformed services or other WORK, and (2) any payment due to the CONSULTANT at
the time of termination may be adjusted to the extent of any additional costs or damages CITY has
incurred, or is likely to incur, because of the CONSULTANTS breach. In such event, CITY shall
consider the amount of WORK originally required which was satisfactorily completed to date of
termination, whether that WORK is in a form or of a type which is usable and suitable to CITY at
the date of termination and the cost to CITY of completing the WORK itself or of employing another
firm to complete it. Under no circumstances shall payments made under this provision exceed the
contract price. In the event of default, the CONSULTANT agrees to pay CITY for any and all
damages, costs, and expenses whether directly, indirectly, or consequentially caused by said default.
This provision shall not preclude CITY from filing claims and/or commencing litigation to secure
compensation for damages incurred beyond that covered by contract retainage or other withheld
payments.
15.4 If the CONSULTANT terminates for default on the part of CITY or if CITY terminates for
convenience, the adjustment pursuant to the Agreement shall include payment for services
satisfactorily performed to the date of termination, in addition to termination settlement costs the
CONSULTANT reasonably incurs relating to commitments which had become firm before the
termination, unless CITY determines to assume said commitments.
15.5 Upon receipt of a termination notice under subsections 15.1 or 15.2 above, the CONSULTANT
shall (1) promptly discontinue all services affected (unless the notice directs otherwise), and (2)
deliver or otherwise make available to CITY all originals of data, drawings, specifications,
calculations, reports, estimates, summaries, and such other information, documents, and materials
as the CONSULTANT or its subconsultants may have accumulated or prepared in performing this
Agreement, whether completed or in progress, with the CONSULTANT retaining copies of the
same.
15.6 Upon termination under any subparagraph above, CITY reserves the right to prosecute the WORK
to completion utilizing other qualified firms or individuals; provided, the CONSULTANT shall
have no responsibility to prosecute further WORK thereon.
15.7 If, after termination for failure of the CONSULTANT to fulfill contractual obligations, it is
determined that the CONSULTANT has not so failed, the termination shall be deemed to have been
effected for the convenience of CITY. In such event, the adjustment pursuant to the Agreement
shall be determined as set forth in subparagraph 15.4 of this Section.
15,8 If, because of death, unavailability or any other occurrence, it becomes impossible for any key
personnel employed by the CONSULTANT in WORK or for any corporate officer of the
CONSULTANT to render SERVICES, the CONSULTANT shall not be relieved of its obligations
to complete performance under this Agreement without the concurrence and written approval of
CITY. If CITY agrees to termination of this Agreement under this provision, payment shall be made
as set forth in subparagraph 15.3 of this Section.
SECTION 16 DISPUTE RESOLUTION
In the event that any dispute shall arise as to the interpretation of this agreement, or in the event of a notice
of default as to whether such default does constitute a breach of the contract, and if the parties hereto cannot
mutually settle such differences, then the parties shall first pursue mediation as a means to resolve the dispute.
If the afore mentioned methods are either not successful then any dispute relating to this Agreement shall be
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RESOLUTION NO:
decided in the courts of Yakima County, in accordance with the laws of Washington. If both parties consent
in writing, other available means of dispute resolution may be implemented.
SECTION 17 NOTICE
Any notice required to be given under the terms of this Agreement shall be directed to the party at the address
set forth below. Notice shall he considered issued and effective upon receipt thereof by the addressee -party,
or seventy-two (72) hours after mailing by certified mail to the place of business set forth below, whichever
is earlier.
CITY: City of Yakima
Robert Harrison, City Manager
129 North 2nd Street
Yakima, WA 98901
(509) 575-6
Bob.harrison@yakimawa.gov
1
1
CONSULTANT: Steve Toler
Partner, Management Partners
1730 Madison Road
Cincinnati, OH 45206
Phone: 650-740-7007
Email: stoler@managementpartners.com
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their
respective authorized officers or representatives as of the day and year first above written.
Printed Namc:
Title: C"i(I'ng, r
Date::
Attest
City i
Page 9 of 10
MANAGEMENT PARTNERS
Printed Name: Jerry Newfarmer
Title: President and CEO
Date: 3/31/21
EXHIBIT A
SCOPE OF SERVICES
Page 10 of 10
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March 19,2O2l
Mr. Robert Harrison
City Manager
City ofYakima
129North Second Street
Yakima, VVA989O1
Dear Mr. Harrison:
Management Partners is pleased to provide this proposal in response to your request for an
organizational analysis of the Finance Department. We appreciate that this review occurs during a
period of unusual economic uncertainty for the City of Yakima resulting from the pandemic. While it is
the necessary first step to ensure that the City's financial resources are being managed as well as
possible, this review will not address the challenge oflong-range financial sustainabiUtythat will likely
bethe next matter needing attention.
We propose to gather and review background information about the department's work, speak with
those who work within and with the department, analyze the structure, staffing and operations, and
develop recommendations to increase efficiency and effectiveness. A key part of the process will be to
ask department employees and a representative group of operating department representatives to
participate in interviews and focus groups. This will enable us to gain insight into their issues and
concerns, as well as solicit ideas about ways to better organize the department, It is important to us that
we make recommendations tailored to your needs that are developed with employee input and will be
implemented. Before we describe our approach to this project, we would like to share some brief
information about our firm. -
About Management Partners
As you may know, Management Partners was founded in 1994 with a specific mission to help local
government leaders improve their service to the public. Since then we have worked with cities, counties,
towns, and special districts of all sizes across the United States to help them work more effectively and
run more efOcient|y.
We offer a balance of perspectives with a practitioner's bias and a proven track record of successful
consulting engagements, This experience gives us a sensitivity that produces positive outcomes. We are
proud to say that as a result of our quality work, many of our clients ask us to complete subsequent
assignments.
" We Know Local Government. Our associates have served in local governments, so we have a
deep understanding ofthe operating and political -environments in which you work.
" We Take a Collaborative Approach. We consider ourselves part of your team and strive to
ensure our work supports your overall corporate strategy and goals.
l73UK8AomomROAD ° OmomwArI,OH452O0 ° E138615400 ° FAX 5138613400 wmmAscMcmrpxnTwcm.com
2107NORTH FIRST STREET, SUITE 470 ° SAw]nsE,CALIFORNIA 9S131 ° 4084375400 ° FAX 4084536191
31SZRED HILL AVENUE, Su/rsZ1U 0 COSTA MESA, CALIFORNIA 92526 9 9492221082 9 FAX 4U8453619l
Mr. Robert Harrison Page 2
a N/eHave Extensive Experience.Each ofour more than 1OOassociates ioanexpert inone ormore
service areas, and our firm has assisted hundreds ofjurisdictions in 42 states.
4 We Have Developed Proven Methodologies. We understand the importance of a holistic
approach to improving organizations, using field-tested methods for each aspect ofthe work.
4/ Our Work Plan isTailored tn Your Needs. Each ofour projects isindividually tailored toour
client's unique needs, starting with acareful learning process.
a We Take Pride /n the Quality ufOur Work. Our internal processes ensure first-rate, complete
staff work and adherence to the highest of ethical standards in public service.
m We Are Focused on Implementation. As practitioners, our recommendations make practical
sense and are able toheimplemented.
m We Provide a Full Suite of Services. Management Partners' services include everything required
to support local government leaders, including organization assessments, performance
management, process improvement, strategic planning, and financial planning, budgeting and
analysis.
Proposed Plan of Work
YaWma'sFinance Department has responsibility for accounting, financial reporting andaudit
preparation, budgeting, financial analysis in support of all City services, risk management, cash
management and investments, debt administration, and payroll. The department includes 13 employees
and its current annual budget is $1.776 million. It processes about 22,000 invoices annually, issues about
10,000 payroll warrants and direct deposits, and manages an average investment portfolio of about $75
Based on our experience with organization reviews and our understanding of your needs, we have
prepared the plan of work described below, It will achieve the goal of evaluating the Finance
Department and identifying recommendations to improve its organization and operations.
Activity l—Start Project
Management Partners will begin the project bvmeedng with you, the assigned project managerand
other appropriate staff. The project start-upaotk/h»fonnsthefoundationofthere|abnnohipbetween
Management Partners' team and the City. During this initial meeting, vvewill confirm project
deliverables and due dates to ensure the project is completed on time and on budget and that our
proposed scope ofwork isaligned precisely tomeet your goals.
We understand that the work associated with this review is in addition to the normal work of the
organization. Our goal is to integrate our activities in a manner that is thoughtful and minimizes
disruption to the department. We will have provided a data request prior to this meeting and will review
the material collected by staff to identify any other data needs.
Activity 2—Gather Information and Analyze Operations
During this activity, Management Partners will gather information from department staff, City leaders,
and operating departments who work closely with -the department. Doing so will allow the ~department's
workforce to become engaged and share their perspectives about issues in the department and
opportunities to innovate and improve. They will help us learn about existing staffing, organizational
structure, operations, policies and practices.
Mr. Robert Harrison Page 3
Review Information about Finance Department Operations. We will review avariety of
documents tohelp uylearn more about the Citvsfinance function and staffing.Key items
include:
• Copies ufjob
' descriptions for each position.
• Management policies and procedures for accounts payable and receivable, payroll,
business licenses, fees, financial accounting and reporting, budget and financial
planning, treasury management, and information regarding use of the City's
ERp/acoountinQsystem and other critical financial systems. '
• Budget for the Finance Department.
Conduct Interviews. Management Partners will conduct interviews with the you, the finance
director, employees in the Finance Department, and others who interact closely with the
Finance Department to learn about its operations and systems, understand different
perspectives about strengths and weaknesses, and hear ideas for improving efficiency and
effectiveness.
As we do this work, we will assess the current state of operations, including the following:
* Organizational structure, including reporting and supervision;
* Staff workload;
* Financial operations, including accounts payable, payroll, grant management, accounting and
financial reporting;
* Revenue collection operations and treasury management functions;
* Budget and financial planning functions and processes; and
* Department administration and oversight responsibilities, including debt management and risk
management.
We will prepare our observations and preliminary recommendations and meet with you to review them.
This will be an opportunity to discuss what we learned and observed in our analysis and hear feedback
about the opportunities for improvement we have identified. This discussion provides a preview of the
issues and recommendations that will beaddressed inthe project report.
Activity 3—Report Results
Once we have received feedback about the various recommendations and improvement opportunities,
we will prepare a draft report that includes our analysis and recommendations for the Yakima Finance
Department. We will provide the draft for review and comment. At the conclusion of the review period
we will consider all changes and suggested revisions and prepare the final report.
Activity 4—Support Implementation
Management Partners has a strong bias for action. Our reports and resulting recommendations from
this review of the department will become tools for setting priorities, and for developing work plans.
After completing the project report, we will prepare a draft Implementation Action Plan incorporating
each recommendation in the project report. The draft action plan sets forth the steps required for
implementation, assigns responsibility for action, and an assigned priority level (immediate, near or long
term) for initiating each recommendation.
The action plan is prepared as a draft and becomes final once the director integrates the action steps
into the work plan develops dates for planned completion. The action plan offers an important
management tool for actual implementation of the work reflected in the project report.
Mr. Robert Harrison
Page
Our Experience, Qualifications and References
We have a wealth of experience reviewing the-wo-rk-of a city -finance department. In addition to the
references below, our website, managementpartners.com, has information about our past clients,
which includes hundreds of jurisdictions in 42 states, and you are welcome to contact any of them about
our performance.
City of San L8an����CaYiftic��n
u
/nezyengaged management partners toconduct anorganizational assessment ofthe City'sFinance
Department. Vacant staff position and changes in operations prompted City leaders to review the
department's organization structure, staffing levels and a high-level assessment of operations. Our
scope also included customer service provided to operating departments, use of technology, and
recommended best practices appropriate for San Leandro.
Our analysis identified five areas of change and improvement: strategic planning; leadership;
consistency in application of policies and processes; communication, change management and customer
services; and organizational alignment ofkey functions.
Our report included 38 recommendations to improve the department's organizational structure and
operations. Key amongst those recommendations were developing a departmental strategic plan in
alignment with a City strategic plan, establishing internal communication practices within Finance,
improvement interdepartmental engagement, modifying the organizational structure, implementing
new change management practices, and instituting policy improvements in accordance with GFOA best
practices.
�0
Contact: Ms. Liz Wannerclam,Assistant City Manager
83SE14thStreet, San Leandro, C494577
(510)577-3390
qL�
City of Santa Rosa, California *Finance Department ork Process Review
Management Partners reviewed the organizational structure and work processes of the Finance
Department Revenue Division (primarily utility collection) and provided advice to improve processes,
policies and procedures and create a sustainable and efficient division. We recommended improving
customer- facing technology, reducing staff and adjusting division reporting structure, updating
workflow to eliminate processes with limited utility, and regularly surveying utility customers to gauge
satisfaction with services,
fsustainability plans in this pandernic environment. Two recent examples of that work follow.
inancial
Contact: Mc Alan Alton, Deputy Director nfFinance
9USanta Rosa Ave,Santa Rosa, CA9S4O4
(707)543'3140
|naddition, vvhave expertise helping e Washington cities create and adopt long-range
Mr. Robert Harrison Page 5
City of Mercer Island, Washington *Financial Forecast Review and Fiscal
SWstainabilitwPlan
Mercer Island engaged Management Partners in 2018 to conduct -an independent analysis -of the six-
yearfinancia|forecaatoftheCitvoGenem|FundinandcipationoftheadoptinnoftheirFY2O19annuo|
budget. Our analysis identified opportunities for improvements in forecast assumptions and methods
related toproperty tax, sales tax, development services fees, and salary and benefits projections, and
reserve policies based on industry best practices. We also created a dashboard fiscal model to allow
Council members and staff to see the impacts of revenue, expenditure, and recessionary assumptions
onthe fiscal gap and resulting reserve levels. The baseline forecast indicated an ongoing structural
deficit of approximately 10% of annual expenditures that would deplete reserves within three years if no
action was taken toresolve the fiscal gap.
Based on that analysis, Management Partners was then asked to develop a fiscal sustainability plan for
Council consideration. The project included interviews with staff and City Council members. We
analyzed various budget strategies including revenue enhancements, expenditure controls/cost shifts,
service delivery changes, and service level reductions that would eliminate the structural deficit and
packaged them into various scenarios for Council consideration. Council members reviewed the
scenarios and identified several budget strategies for further consideration, including tax measures, cost
shifts and service delivery changes that would provide long-term fiscal sustainability to the City. The
adoption of a final fiscal sustainability plan was placed on hold pending the election of City Council
members in November 2019 andwill be completed once the new City Council is seated in 2020.
Contacts: Ms. Julie ThuyUnderwood, former City Manager
(206)962-0195
Ms. ]eas|Bon, City Manager, City ofMercer Island
(206)275'7665
Cities of Newcastle, Washington and Kenmore, Washington 4,FiMaMcial Forecast
and Budget Practices Evaluation; Fiscal SOStainabi|ity Plan
PManagement Partners was engaged separatelybvthe cities ofNewcastle Kenmore
(ZUl9)|nKing County, Washington to conduct onindependent analysis ofthe financial forecast
ofeachrespectivecitv'sGenera|Fundinonticipationoftheadoptionoftheirannua|budgets.Our
analysis identified opportunities for improvements in forecast methods and assumptions related to sales
tax, development services fees, and salary and benefits projections, andinco[poradngrecessinnary
assumptions in the model. We identified recommended improvements to reserve policies based on
industry best practices, VVealso created adashboard "what if" tool that leveraged the City'sexisting
forecast to allow Council members and staff to see the impacts of revenue, expenditure, and
recessionary assumptions on the fiscal gap and resulting reserve levels. In each case, their baseline
forecasts indicated ongoing structural deficits that exceeded 10% of their respective annual
expenditures that would dep|etereserves vvithinfour yeanifnoaction vvantokentoresolve the �oca|
' .
Based nnthat analysis, Management Partners was asked todevelop afiscal nustainobi|kvplan for
Council consideration, The project indudedintemiewmxvithstaffandCounci|membeo.VVeanakoed
various budget strategies including revenue enhancements, expenditure controls/cost shifts, service
Mr. Robert Harrison Page 6
delivery changes and service level reductions, that would eliminate the structural deficit and packaged
them into various scenarios for Council consideration.
|nNewcastle,vveanakoedtheimpostsnf-over-2O'dHfepent-bu @jesri-ndudin8-an-ana|ysisifthe -- '
City were to decide to disincorporate or reannex into another community. We combined the strategies
into three different budget scenarios that would solve the fiscal gap. We also facilitated a community
engagement workshop in the form of a Town Hall meeting to educate the community
onthe City'sfiscal
City's fiscal situation.
In Kenmore, we identified nearly 25 budget strategies for the City's consideration participated in
meetings with the City'sappointed citizen fiscal sustuinabi//tycommi1tee to review budget strategies
and provide input into their recommendations that they made to the City Manager for City
consideration. Management Partners issued a separate report from the committee's work that
ultimately were presented to the City Council along with the City Manager's recommendations.
In both cases, council members reviewed the budget strategies and scenarios presented to them and
adopted a fiscal sustainability plan for their respective communities. Based on the set of strategies
selected, we prepared an implementation action plan to guide staff in the implementation of the chosen
strategies.
Newcastle Contact: Mr. Rob Wyman, City Manager
12Q3SNewcastle Way, Suite 20O,Newcastle, VVA9OU56
(425)649'4444
Kenmore Contact: Mr. Rob Kadinaey,City Manager
1812O6DthAve NE, Kenmore, VVA9QOS6
(425)984'5170
Our Team
Our project team is well -qualified to complete this work for Yakima. Steve Toler will serve as project
director and will oversee the substantive work of the project. Rick Haydon will serve as project manager
and will beresponsible for execution nfthe project, TheywiUbesupportedbysUb|ect'matterexpert
Pete Gonda and analyst Claire Coleman. Brief qualifications of each team member are provided below.
Steve Toler, Partner
� Has experience inbudgeting and revenue forecasting, financial management and reporting,
accounting, purchasing, information technology management, water and wastewater rate
modeling, regional shared services planning, organizational development and training, labor
relations and negotiations, business continuity planning, risk management, economic
development and redevelopment, tax ballot measures, and public engagement.
*. Joined Management Partners after spending nearly 2Oyears inlocal government public service
working for the cities ofCupertino, Foster City and Millbrae, California.
wServed inmanagement positions ranging from assistant city manager toinformation technology
manager.
� Serves clients across the Pacific Northwest and West Coast, including recent engagements for
the cities of Belmont, East Palo Alto, El Cerrito, Scotts Valley, Tracy, and Union City in California,
Mr. Robert Harrison Page 7
axwell amMercer Island, Newcastle and Kenmore inKing County, Washington. Resides in
Eugene, Oregon,
Rick Haxwdon, -Smecial Advisor
• Has more than 3Uyears ofmunicipal government experience, with anemphasis onmanagement
and supervision, budgeting, financial analysis, and fund accounting.
• Skilled facilitator with expertise in goal setting, strategic planning, council/staff relations and
� Oversaw a full -service city in Santa Maria of more than 100,000 residents, a workforce of over
700 employees and an annual operating budget of $163 million; responsible for the day-to-day
operations ofthe City and coordinated the budget process.
° During his tenure with Santa Maria, Rick was responsible for the City winning 21 consecutive
California Municipal Finance Officer's (CSMFO) Excellence in Budgeting Awards and 10
consecutive biennial Government Finance Officers Association (GFOA) Distinguished Budget
Presentation Awards.
� Prior to Santa Maria, Rick was the budget and employee relations manager for the City of
Dinuba where he was responsible for coordinating, preparing, and compiling the City's annual
budget document,
Pete Gonda, Special Advisor
More than 20 years of experience in municipal government, with an emphasis on analytics,
budgeting, procurement management, contracts and performance measurement.
� Served as a senior management analyst in Sunnyvale's Finance Department, where his
responsibilities included intergovernmental relations, policy analysis and revenue/expense
management, including cost ofservice studies and related activities.
m Served as purchasing officer for the City of Sunnyvale, California for nine years, where he
managed an award -winning centralized purchasing division with $42 million in annual
operational spending. Bid and awarded $8Omillion incapital projects underafederaUyfunded
local economic stimulus program at a 30% savings, and implemented continuous process
improvements for avariety ofservices.
� Also worked in Sunnyvale's Department of Public Safety, the City of San Jose's Office of
Economic Development, and the City of3oratoga'sCity Manager's Office,
Claire Coleman, SeniDr�QaOage00ent x�M@]yst
• Condu�sanalyses and research nn�nanciaLor0anizationa[and opeotioDa|p�jectsfor dients.
Her anaktica|training indudes�nancie|modeUn8and regression analysis.
• Supports �sur�an|zationa/assesamen�peer comparison studie�and depo�mentmerger
analyses.
• VVorkedongovern[nenttransportation contracts for ahospitality company and inbusiness
development ata software startup.
• Recent cUentsinclude the California dtieoofAlameda, CampbeU,East Palo Alto, BCerrito,
FairMe|d,3aorarnento,Santa Oara,Vioton/iUe, K�issionViejo, Manteca, San Leandro, Santa Cru�
8co�sVaUey,Tracy, VuUe/n,Napa, and ��uorpark;Nevvcast/e,VVashington;Boulder City,
Nevada; and NoFnlan,Ok!ahorna.
IN8AinEconomics and Russian Studies �nmOberlin CoUeQe.
��
Mr. Robert Harrison Page 8
Conclusion
Management Partners anticipates devoting 135 hours of our staff time to complete the plan of work
described above.The total cost ofthis pn�eotio$2S,OU0,which includes aUfeesandexpenses/\�cnote
that we anticipa .' doingte of the work ufthiaengagement using vi-ec-oonferenciogtechniques due
to the ndpmic.Theultinnatetestofoqua|ityprojectisthot1heclientisp|easedwiththeresults,and
vveare committed toachieving that goal.
Please let me know if we can provide any additional information.
Sincereky,
Julie Mares
Chief Operating Officer
Accepted for the City ofYakima by:
Name:_
Title:
Date: