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Home My WebLink AboutCitygate Associates, LLC 2014-06-11 � � o� No �y�s-oo�- � - — - —.-�-r� . . ------ — - r-� ■ ■ - - CITY�flTE flSS°CIflTES, LLC fl?c R Eh1ERGEhIC'f SER'lIiES 2250 East Bitlwell Sfreet,SuiTe 100 • Folsom.CA 95630 . PH 976-458-5700 . FAX 976-983-2090 June 1 l,2014 Jane Chambers City Manager City of Ukiah jchambers(�n citvofukiah.com John Bartlett Fire Chief Ukiah Valley Fire District chief6400(a�att.net (submitted via email only) RE: PROPOSAL TO ASSIST THE CITY OF UIQAH AND UKIAH VALLEY FIRE DISTRICT WITH DETERMINING THE FEASIBILITY OF ESTABL[SHING A °iDISTRICT OVERLAY" Dear Ms. Chambers and Mr. Bartlett: Citygate Associates, LLC is pleased to present the following engagement letter to the City of Ukiah and the Ukiah Valley Fire District. By way of introduction to this letter, on April 16, 2014, Jane Chambers emailed an inquiry to Richard Arrow, asking for assistance in determining the feasibility (financial and otherwise) of establishing a "District Overlay." The term "District Overlay" is a term used locally to define the City of Ukiah (City) Fire Department turning over its fire operations, assets, and govemance to the Ukiah Valley Fire District (District). In turn, the City would provide revenue to the District to offset the added expenditures incurred by the District to support the City Fire operations. Previously, Richard Arcow was the Interim Finance Director for the City. Also, Citygate Associates, LLC performed analysis and provided recommendations in late 2011 and early 2012 for the City by addressing various considerations associated with alternative fire service delivery arrangements. , A comprehensive list of Citygate's Fire Services projects is available on our website at www.citv¢ateassociates.com under the category "Fire Protection and Emergency Medical Services Consulting." Fire Services Drstrict Overlav Feasibiliry Studv June 1!, 2014 Page 2 PROJECT SCOPE AND OBJECT/VES The scope of this high-level, phased municipal consulting engagement is to determine the initial feasibility of folding the City's Fire Department into the District. This project is proposed on a phased basis, in order to make such outside analytical assistance as cost-effective as possible. FuRhermore, by initially exploring some of the aspects of such combined operations that are frequently most likely to make such an arrangement infeasible, Phase I will examine early considerations including: ♦ LAFCO perspectives on suitable long-term municipal revenue sources to dedicate to the District ♦ Updating the revenue and expenditure calculations determined in our earlier study ♦ Obtaining an initial, concise opinion letter from Bartel Associates regarding actuarial considerations, including unfunded liabilities, future costs, and benefit impacts associated with combining the respective CaIPERS safety pension programs for both the City and the District. PHASE I WORK PLAN • . • - • • . • Members of Citygate's consulting team, as well as representatives of the City and District, would attend a telephone conference call to ensure that the scope, Work Plan, schedule, and outcomes of the project are clear to all. In addition, specific documents to be reviewed by the consulting team would be identified. Also, tasks that could be performed by local staff would be identified, in an effort to limit to the greatest extent possible the level of effort and cost generated by the outside consulting effort. • Citygate would conduct an interview with the new Executive Director of LAFCO to explore LAFCO's perspectives on which City revenue sources would be appropriate to fund the long- term commitment associated with the District receiving responsibility for providing fire services to the City through a District Overlay. This interview will be conducted by one consultant on- site, and one or two consultants by telephone conference call. This input would then be used to guide the updating of revenues and expenditures from Citygate's prior work. ..�.. N1GflR flISA7fl16 LLC Fire Sernices District Overlay Feasibrliry Study June !!. 20l4 Page 3 • � . • . . • � . . • • - • • ' • ' • • 1 A number of cost and revenue elements have changed significantly since Citygate's original study. For example, the number of City Fire Department staff has dropped significantly as the City is no longer in the ambulance business. This, in turn, has dropped the City's fire expenditure base significantly. Also, as Northem Califomia inches out of the recession, municipal revenue trends may be mildly increasing, although often not as quickly as costs are increasing. All of these cost and revenue dynamics would be updated, and tailored to the unique circumstances as they are being proposed in the District Overlay. To the greatest extent possible, Citygate will rely on City staff to assemble this financial model, in order to economize the cost of this consulting effoR. - . � . - . . Citygate would make a presentation to both the City and the District, either on the same day, or possibly in a joint session. The repoR would present the findings generated during the three Work Plan elements above, and would offer findings and conclusions. If needed, we would also recommend next steps beyond Phase I, including remaining analysis required leading up to the implementation of a District Overlay, or alternative organizational strategies. At this point, we would remain available for additional analysis, as needed, and if so desired, implementation assistance/Project Management. PROJECT TEAM The qualifications of the Project Team are critical as it is the expertise and the capabilities of the consultants invobed in the project that ultimately determine the success of the project. Primary members of our Project Team include the following experienced consultants: Chief Stewart W. Gary, MPA, Fire Services Principal and Proiect Director Chief Gary is the Fire Practice Principal for Citygate Associates. Chief Gary is the retired Fire Chief of the Livermore-Pleasanton Fire Department in Alameda County, Califomia. For fourteen years, he was a lead instructor, program content developer, and consultant for the Standards of Response Coverage process. For many years, he annually taught a 40-hour course on this systems approach for fire deployment at the California Fire Academy, and he teaches and consults across the United States and Canada on the Standards of Response Coverage process. He has worked with a variety of ..�.. � � aruaiE�;ma,uc Fire Services Distrrct Overlay Feasibility Shedy June 17, 201-! Page�1 communities on fire service studies including deployment, consolidation, and master plan studies. In total, he has performed over 180 fire services studies. David C. DeRoos, MPA, CMC, Citvaate President and Proiect Manaaer Mr. DeRoos has nearly 30 years of experience as a consultant to local govemment, preceded by 5 years as an assistant to the City Administrator. He earned his undergraduate degree in Political Science/Public Service (Phi Beta Kappa) from the University of California, Davis and holds a Master of Public Administration degree from the University of Southem California. Prior to becoming a Principal in Citygate in 1991, he was a Senior Manager in the local government consulting division of Emst & Young. Mr. DeRoos has led or provided oversight for well over 300 consulting engagements. Chief William R. Sager, CFC, EFO, Lead Fire Consultant Mr. Sager, Citygate's Fire Services Specialist, has more than 40 years in the fire service. With Citygate, he has worked on over 40 organizational analyses, deployment studies, strategic/master plan, and training projects. Chief Sager's last assignment with CAL FIRE was as the Butte Unit Chief, and the Butte County Fire Chief. Chief Sager is a nationally recognized course developer and instructor in leadership, organizational development, and management courses. He used Applied Strategic Planning methods as the editorial consultant for Blueprint 2020, the Office of State Fire MarshaPs statewide training plan for the California Fire Service (this plan is downloadable at: osfm fire.ca.QOV/trainine/ndfBP2020finaldraft0108.pdfl. During his CAL FIRE career, he worked at all levels in two units and a region office; he participated in numerous personnel and finance projects, including chairing a streamlining task force on the "Changing Face of CDF." He was also a CAL FIRE Type 1 Team Incident Commandec He is a certified Fire Chief, and in 2003 he was designated a Chief Fire Officer. Chief Sager retired from CAL FIRE in 2003. Stanley E. Feathers, MPA, Lead Fiscal Consultant Mr. Feathers has served as City Manager, Assistant City Manager, Finance Director, Budget Manager, and has served extended duty as interim Community Development Director. He has over 25 years of management experience in both city and county government. His executive experience includes viRually afl aspects of local government with much of it focused on "hands-on" analysis, policy development, and implementation of initiatives. ..�.. ummrt mtttiaB.uc Fire Services District Orerlay Feasrbility Study June 11, 20l4 Page 5 He has experience in a diverse array of public policy areas and issues. Through his wide-ranging experience, he has developed approaches to resolving complex problems by emphasizing simple but elegant solutions. This is critical to long-term success in an increasing complex governmental environment limited by the availability of resources. Mr. Feathers recently retired and has since assisted Central Valley Cities in dealing with financial, budget, and organizational issues related to the impact of the housing and economic meltdown. He recently served as interim City Manager for the City of Oakdale, a full-service city in the central valley. Dr. Dwane N. Milnes, DPA, General Government Principal and Technical Advisor Dr. Dwane Milnes is the General Govemment Principal with Citygate Associates. Dr. Milnes has extensive experience in municipal management having served as City Manager or Assistant City Manager for 24 years. He retired as the City Manager of Stockton, CA where he supervised where he supervised an ISO Class 1 Fire Department. He earned a doctorate in Public Administration from the University of Southem Califomia. As a Citygate consultant, he has worked with Chief Gary on many £re services studies. He °•'=�_°` performed Citygate's previous fire services study for the City of Ukiah. John Bartel, ASA, FCA, MAAA, Bartel Associates President and Pension Actuarial Consultant John Bartel is an Associate of the Society of Actuaries, a Fellow of the Conference of Actuaries, and a Member of the American Academy of Actuaries. He has over 30 years of experience, and founded Bartel Associates ]0 years ago to focus on the public sector. John's extensive work with Public Pension and OPEB plans includes numerous analyses, Tier 2 studies, and cost projections for Ca1PERS plans. He has appeared before county boards of supervisors, city councils, retirement system boards, and public agency boards of directors and is known for his clarity. John earned a BS in Mathematics at California State University, Chico. Citygate's consultants adhere to the Code of Ethics found in Attachment A. PROJECT SCHEDULE AND FEES Citygate is available to staR this project in July and anticipates completing the project no later than December 2014. Our charges are based on actual time spent by our consultants at their established billing rates, plus reimbursable expenses incurred in conjunction with travel, printing, clerical, and support ..�.. Nwm[Rsaima.u< Fire Sernrces District Overlay Feasibiliry Sn�dy June !1. 20l4 Page 6 services related to the engagement. All work will be done on a time and materials basis at our hourly rates below. For the Phase I tasks described above, our not-to-exceed cost will be $24,950, inclusive of travel expenses for two on-site meetings. We hope to achieve scope and objectives for lesser amount if at all possible, and pledge to work in the most cost-efficient manner available. Citygate understands that the City of Ukiah and the Ukiah Valley Fire District wish to split the cost of this study. If so desired, Citygate wili itemize our monthly invoices to facilitate this cost sharing. However, we would like the City of Ukiah to be our sole contact for processing and paying Citygate's invoices. The price quoted above is effective for 30 days from the date of receipt for this proposal and includes one (1) draft PowerPoint RepoR cycle completed by Citygate and the agencies within 30 calendar days. Additional draft PowerPoint Report cycles or processing delays requested by the agencies would be billed in addition to the contracted amount at our time and materials rates. When changes are agreed upon, Citygate will provide a reproducible master copy via email. The drafr PowerPoint Report will be considered to be final if there are no suggested changes within thirty (30) days of the delivery of the draft. Standard Hourly Billing Rates . . • Citygate President/Project Manager $225 per hour David DeRoos Fire Practice Principal/Project Director $250 per hour Stewart Gary Lead Fire Consultant $210 per hour William Sager Lead Fiscal Consultant $210 per hour Stanley Feathers General Government Principal/ $250 per hour Dwane Milnes Technical Advisor Bartel Associates President/Pension $300 per hour John Bartel Actuarial Consultant Project Report Administrator $ 95 per hour Chad Jackson Administrative Support $ 85 per hour Various Billing Schedule We will bill monthly for time, reimbursable expenses incurred (if any), and a five percent (5%) administration fee calculated on fees in lieu of individual charges for copies, phone, etc. We ..�.. � � ar�me�sswe�u< Fire Services District Overlay Feasibility Study June !!, 2014 Page 7 request payment within 30 days of invoicing. Citygate's billing terms are net thirty (30) days plus two percent (2%) for day thiRy-one (31) and two percent (2%)per month thereafter. * * * If this proposal is acceptable, you can sign acceptance on the following page, or forward a standard consultant contract for us to complete. As President of the firm, I am authorized to execute a binding contract on behalf of Citygate Associates, LLC. Please feel free to contact me at our headquarters office, located in Folsom, Califomia at (916)458-5100, extension 101 or via e-mail at dderoos(�a,citveateassociates.com if you wish further information. Sincerely, �.�..�c. �/.� Dav�d C. DeRoos, MPA, CMC President cc: Projec[Team Attachment: Code of Ethics Acceptance of Citygate's proposal and terms: Ciry of Ukiah: e Signature 7�� T C� ��- ,--� Tit1e�T Date Ukiah Tralley Fire District.• J�i-k/u �C�� Name Signat �N,l�� 8�L! ��`� Title Date ..i 7.. rnxmt�nss�aB.uc CODE OF ETHICS CLIENTS 1. We will serve our clients with integrity, competence,and objectivity. 2. We will keep client information and records of client engagements confidential and will use proprietary client information only with the clienYs permission. 3. We will not take advantage of confidential client information for ourselves or our firms. 4. We will not allow conflicts of interest which provide a competitive advantage to one client through our use of confidential information from another client who is a direct competitor without that competitor's permission. ENGAGEMENTS 5. We will accept only engagements for which we are qualified by our experience and competence. 6. We will assign staff to client engagements in accord with their experience, knowledge, and expertise. 7. We will immediately acknowledge any influences on our objectivity to our clients and will offer to withdraw from a consulting engagement when our objectivity or integrity may be impaired. FEES 8. We will agree independently and in advance on the basis for our fees and expenses and will charge fees and expenses that are reasonable, legitimate, and commensurate with the services we deliver and the responsibility we accept. 9. We will disclose to our clients in advance any fees or commissions that we will receive for equipment, supplies or services we recommend to our clients. PROFESSION 10. We will respect the intellectual property rights of our clients, other consulting firms, and sole practitioners and will not use proprietary information or methodologies without permission. 11. We will not adveRise our services in a deceptive manner and will not misrepresent the consulting profession, consulting firms, or sole practitioners. 12. We will report violations of this Code of Ethics. The Council of Consulting Organizations, Inc. Board of Directors approved this Code of Ethics on January 8, 1991. The Institute of Management Consultants (IMC) is a division of the Council of Consulting Organizations, Inc. .i G. Attachment A--Code of Ethics page 1 ppy�fll PSS9CNfB.LL<