CONTRACT 5890 Professional Services Agreement CLOSEDAgreement No. 5890
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF EL SEGUNDO AND
URBAN FUTURES, INC. ("UFI")
This AGREEMENT is made and entered into this 25th day of March, 2020, by
and between the CITY OF EL SEGUNDO, a municipal corporation and general law city
("CITY") and URBAN FUTURES, INC., a California Corporation ("CONSULTANT"). The
parties agree as follows:
1. CONSIDERATION.
A. As partial consideration, CONSULTANT agrees to perform the work listed
in the SCOPE OF SERVICES, below;
B. As additional consideration, CONSULTANT and CITY agree to abide by
the terms and conditions contained in this Agreement,
C. As additional consideration, CITY agrees to pay CONSULTANT a sum not
to exceed TWENTY FOUR THOUSAND FIVE HUNDRED dollars
($24,500.00) for CONSULTANT's services. CITY may modify this amount
as set forth below. Unless otherwise specified by written amendment to
this Agreement, CITY will pay this sum as specified in the attached Exhibit
"A," which is incorporated by reference.
2. SCOPE OF SERVICES.
A. CONSULTANT will perform services for "Phase 1: Baseline Forecast
Model for General Fund," as described in CONSULTANT's proposal,
attached as Exhibit "A" and incorporated by reference. CONSULTANT will
charge on a time and materials basis for developing the baseline forecast
model, including any meetings and teleconferences required to gather the
data and review/revise the model.
B. CONSULTANT will, in a professional manner, furnish all of the labor,
technical, administrative, professional and other personnel, all supplies
and materials, equipment, printing, vehicles, transportation, office space
and facilities, and all tests, testing and analyses, calculation, and all other
means whatsoever, except as herein otherwise expressly specified to be
furnished by CITY, necessary or proper to perform and complete the work
and provide the professional services required of CONSULTANT by this
Agreement.
3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT
will use the appropriate generally accepted professional standards of practice existing at
City of EI Segundo Professional Services (REV 2018.05)
Page 1 of 11
Agreement No. 5890
the time of performance utilized by persons engaged in providing similar services. CITY
will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of
any deficiencies and CONSULTANT will have fifteen (15) days after such notification to
cure any shortcomings to CITY's satisfaction. Costs associated with curing the
deficiencies will be borne by CONSULTANT.
4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement,
CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and
hourly rates for each personnel category and reimbursable costs (all as set forth in
Exhibit "A") the tasks performed, the percentage of the task completed during the billing
period, the cumulative percentage completed for each task, the total cost of that work
during the preceding billing month and a cumulative cash flow curve showing projected
and actual expenditures versus time to date.
5. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT
for current services are within the current budget and within an available, unexhausted
and unencumbered appropriation of the CITY. In the event the CITY has not
appropriated sufficient funds for payment of CONSULTANT services beyond the current
fiscal year, this Agreement will cover only those costs incurred up to the conclusion of
the current fiscal year.
6. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONSULTANT agrees that it has:
Carefully investigated and considered the scope of services to be
performed;
Carefully considered how the services should be performed; and
iii. Understands the facilities, difficulties, and restrictions attending
performance of the services under this Agreement.
B. If services involve work upon any site, CONSULTANT agrees that
CONSULTANT has or will investigate the site and is or will be fully
acquainted with the conditions there existing, before commencing the
services hereunder. Should CONSULTANT discover any latent or
unknown conditions that may materially affect the performance of the
services, CONSULTANT will immediately inform CITY of such fact and will
not proceed except at CONSULTANT's own risk until written instructions
are received from CITY.
7. TERM. The term of this Agreement will be from March 25, 2020, to September 30,
2020. Unless otherwise determined by written amendment between the parties, this
Agreement will terminate in the following instances:
City of EI Segundo Professional Services (REV 2018.05)
Page 2 of 11
Agreement No. 5890
A, Completion of the work specified in Exhibit "A",
B. Termination as stated in Section 15.
8, TIME FOR PERFORMANCE,
A. CONSULTANT will not perform any work under this Agreement until:
CONSULTANT furnishes proof of insurance as required under
Section 22 of this Agreement; and
ii. CITY gives CONSULTANT a written notice to proceed.
B. Should CONSULTANT begin work on any phase in advance of receiving
written authorization to proceed, any such professional services are at
CONSULTANT's own risk.
9. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond
CONSULTANT's control, CITY may grant a time extension for the completion of the
contracted services. If delay occurs, CONSULTANT must notify the Manager within
forty-eight (48) hours, in writing, of the cause and the extent of the delay and how such
delay interferes with the Agreement's schedule. The Manager will extend the
completion time, when appropriate, for the completion of the contracted services.
10. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the
main body of this Agreement takes precedence over the attached Exhibits, this
Agreement supersedes any conflicting provisions. Any inconsistency between the
Exhibits will be resolved in the order in which the Exhibits appear below:
A. Exhibit A, Proposal
11. CHANGES. CITY may order changes in the services within the general scope of
this Agreement, consisting of additions, deletions, or other revisions, and the contract
sum and the contract time will be adjusted accordingly. All such changes must be
authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY
resulting from changes in the services will be determined in accordance with written
agreement between the parties.
12. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a
Taxpayer Identification Number.
13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and
maintain during the term of this Agreement, all necessary permits, licenses, and
certificates that may be required in connection with the performance of services under
this Agreement.
City of EI Segundo Professional Services (REV 2018.05)
Page 3 of 11
Agreement No. 5890
14. WAIVER. CITY's review or acceptance of, or payment for, work product prepared
by CONSULTANT under this Agreement will not be construed to operate as a waiver of
any rights CITY may have under this Agreement or of any cause of action arising from
CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant,
or condition contained in this Agreement will not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant, or condition contained in
this Agreement, whether of the same or different character.
15. TERMINATION.
A. Except as otherwise provided, CITY may terminate this Agreement at any
time with or without cause.
B. CONSULTANT may terminate this Agreement at any time with CITY's
mutual consent. Notice will be in writing at least thirty (30) days before the
effective termination date.
C, Upon receiving a termination notice, CONSULTANT will immediately
cease performance under this Agreement unless otherwise provided in the
termination notice. Except as otherwise provided in the termination notice,
any additional work performed by CONSULTANT after receiving a
termination notice will be performed at CONSULTANT's own cost; CITY
will not be obligated to compensate CONSULTANT for such work.
D. Should termination occur, all finished or unfinished documents, data,
studies, surveys, drawings, maps, reports and other materials prepared by
CONSULTANT will, at CITY's option, become CITY's property, and
CONSULTANT will receive just and equitable compensation for any work
satisfactorily completed up to the effective date of notice of termination,
not to exceed the total costs under Section 1(C).
E, Should the Agreement be terminated pursuant to this Section, CITY may
procure on its own terms services similar to those terminated.
F. By executing this document, CONSULTANT waives any and all claims for
damages that might otherwise arise from CITY's termination under this
Section.
16.OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps,
models, photographs and reports prepared by CONSULTANT under this Agreement are
CITY's property. CONSULTANT may retain copies of said documents and materials as
desired but will deliver all original materials to CITY upon CITY's written notice. CITY
agrees that use of CONSULTANT's completed work product, for purposes other than
identified in this Agreement, or use of incomplete work product, is at CITY's own risk.
City of EI Segundo Professional Services (REV 2018.05)
Page 4 of 11
Agreement No. 5890
17. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service
under this Agreement, no copies, sketches, or graphs of materials, including graphic art
work, prepared pursuant to this Agreement, will be released by CONSULTANT to any
other person or public CITY without CITY's prior written approval. All press releases,
including graphic display information to be published in newspapers or magazines, will
be approved and distributed solely by CITY, unless otherwise provided by written
agreement between the parties.
18. INDEMNIFICATION.
A. CONSULTANT agrees to the following:
I. Indemnification for Professional Services. CONSULTANT will
save harmless and indemnify and at CITY's request reimburse
defense costs for CITY and all its officers, volunteers,
employees and representatives from and against any and all
suits, actions, or claims, of any character whatever, brought
for, or on account of, any injuries or damages sustained by
any person or property resulting or arising from any negligent
or wrongful act, error or omission by CONSULTANT or any of
CONSULTANT's officers, agents, employees, or
representatives, in the performance of this Agreement, except
for such loss or damage arising from CITY's sole negligence
or willful misconduct.
ii. Indemnification for other Damages. CONSULTANT indemnifies
and holds CITY harmless from and against any claim, action,
damages, costs (including, without limitation, attorney's fees),
injuries, or liability, arising out of this Agreement, or its
performance, except for such loss or damage arising from
CITY's sole negligence or willful misconduct. Should CITY be
named in any suit, or should any claim be brought against it
by suit or otherwise, whether the same be groundless or not,
arising out of this Agreement, or its performance,
CONSULTANT will defend CITY (at CITY's request and with
counsel satisfactory to CITY) and will indemnify CITY for any
judgment rendered against it or any sums paid out in
settlement or otherwise.
B. For purposes of this section "CITY" includes CITY's officers, officials,
employees, agents, representatives, and certified volunteers.
C. It is expressly understood and agreed that the foregoing provisions will
survive termination of this Agreement.
City of EI Segundo Professional Services (REV 2018.05)
Page 5 of 11
Agreement No. 5890
The requirements as to the types and limits of insurance coverage to be
maintained by CONSULTANT as required by Section 22, and any
approval of said insurance by CITY, are not intended to and will not in any
manner limit or qualify the liabilities and obligations otherwise assumed by
CONSULTANT pursuant to this Agreement, including, without limitation, to
the provisions concerning indemnification.
19.ASSIGNABILITY. This Agreement is for CONSULTANT's professional services.
CONSULTANT's attempts to assign the benefits or burdens of this Agreement without
CITY's written approval are prohibited and will be null and void.
20. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that
CONSULTANT will act as an independent contractor and will have control of all work
and the manner in which it is performed. CONSULTANT will be free to contract for
similar service to be performed for other employers while under contract with CITY.
CONSULTANT is not an agent or employee of CITY and is not entitled to participate in
any pension plan, insurance, bonus or similar benefits CITY provides for its employees.
Any provision in this Agreement that may appear to give CITY the right to direct
CONSULTANT as to the details of doing the work or to exercise a measure of control
over the work means that CONSULTANT will follow the direction of the CITY as to end
results of the work only.
21.AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with
respect to all services and matters covered under this Agreement. CITY will have free
access at all reasonable times to such records, and the right to examine and audit the
same and to make transcript therefrom, and to inspect all program data, documents,
proceedings and activities. CONSULTANT will retain such financial and program
service records for at least three (3) years after termination or final payment under this
Agreement.
22.INSURANCE,
A. Before commencing performance under this Agreement, and at all other
times this Agreement is effective, CONSULTANT will procure and
maintain the following types of insurance with coverage limits complying,
at a minimum, with the limits set forth below:
Twe of Insurance
Commercial general liability:
Professional Liability
Business automobile liability
Workers compensation
City of EI Segundo Professional Services (REV 2018.05)
Page 6 of 11
Limits
$2,000,000
$1,000,000
$1,000,000
Statutory requirement
Agreement No. 5890
B, Commercial general liability insurance will meet or exceed the
requirements of the most recent ISO -CGL Form. The amount of
insurance set forth above will be a combined single limit per occurrence
for bodily injury, personal injury, and property damage for the policy
coverage. Liability policies will be endorsed to name CITY, its officials,
and employees as "additional insureds" under said insurance coverage
and to state that such insurance will be deemed "primary" such that any
other insurance that may be carried by CITY will be excess thereto. Such
endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or
equivalent. Such insurance will be on an "occurrence," not a "claims
made," basis and will not be cancelable or subject to reduction except
upon thirty (30) days prior written notice to CITY.
C. Professional liability coverage will be on an "occurrence basis" if such
coverage is available, or on a "claims made" basis if not available. When
coverage is provided on a "claims made basis," CONSULTANT will
continue to renew the insurance for a period of three (3) years after this
Agreement expires or is terminated. Such insurance will have the same
coverage and limits as the policy that was in effect during the term of this
Agreement and will cover CONSULTANT for all claims made by CITY
arising out of any errors or omissions of CONSULTANT, or its officers,
employees or agents during the time this Agreement was in effect.
D, Automobile coverage will be written on ISO Business Auto Coverage Form
CA 00 01 06 92, including symbol 1 (Any Auto).
E, CONSULTANT will furnish to CITY duly authenticated Certificates of
Insurance evidencing maintenance of the insurance required under this
Agreement and such other evidence of insurance or copies of policies as
may be reasonably required by CITY from time to time. Insurance must
be placed with insurers with a current A.M. Best Company Rating
equivalent to at least a Rating of "AMI."
F. Should CONSULTANT, for any reason, fail to obtain and maintain the
insurance required by this Agreement, CITY may obtain such coverage at
CONSULTANT's expense and deduct the cost of such insurance from
payments due to CONSULTANT under this Agreement or terminate
pursuant to Section 155.
23. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written
approval to use any consultants while performing any portion of this Agreement. Such
approval must approve of the proposed consultant and the terms of compensation.
City of EI Segundo Professional Services (REV 2018.05)
Page 7 of 11
Agreement No. 5890
24. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the
status on the project, which will include a schedule update and a short narrative
description of progress during the past month for each major task, a description of the
work remaining and a description of the work to be done before the next schedule
update.
25. NOTICES. All communications to either party by the other party will be deemed
made when received by such party at its respective name and address as follows:
If to CONSULTANT;
Urban Futures, Inc.( UFI )
17821 E. 17th Street
Suite 245
Tustin, CA 92780
Attention: Michael P. Busch
Phone: (714) 283-934
Email: Michaelb@urbanfuturesinc.com
If to CITY:
City of EI Segundo
350 Main Street
Finance Department
EI Segundo, CA 90245
Attention: Joe Lillio
Phone: 310-524-2315
Email: jlillio@elsegundo.org
Any such written communications by mail will be conclusively deemed to have been
received by the addressee upon deposit thereof in the United States Mail, postage
prepaid and properly addressed as noted above. In all other instances, notices will be
deemed given at the time of actual delivery. Changes may be made in the names or
addresses of persons to whom notices are to be given by giving notice in the manner
prescribed in this paragraph.
26. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest
laws and regulations including, without limitation, CITY's conflict of interest regulations.
27. SOLICITATION. CONSULTANT maintains and warrants that it has not employed
nor retained any company or person, other than CONSULTANT's bona fide employee,
to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not
paid nor has it agreed to pay any company or person, other than CONSULTANT's bona
fide employee, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement.
Should CONSULTANT breach or violate this warranty, CITY may rescind this
Agreement without liability.
28. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is
generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of
any other party. There will be no incidental or other beneficiaries of any of
CONSULTANT's or CITY's obligations under this Agreement.
City of EI Segundo Professional Services (REV 2098.05)
Page 8 of 11
Agreement No. 5890
29. INTERPRETATION. This Agreement was drafted in and will be construed in
accordance with the laws of the State of California, and exclusive venue for any action
involving this agreement will be in Los Angeles County.
30. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state,
and local laws applicable to this Agreement.
31. ENTIRE AGREEMENT. This Agreement, and its Exhibit(s), sets forth the entire
understanding of the parties. There are no other understandings, terms or other
agreements expressed or implied, oral or written. This Agreement will bind and inure to
the benefit of the parties to this Agreement and any subsequent successors and
assigns.
32. RULES OF CONSTRUCTION. Each Party had the opportunity to independently
review this Agreement with legal counsel. Accordingly, this Agreement will be
construed simply, as a whole, and in accordance with its fair meaning; it will not be
interpreted strictly for or against either Party,
33. SEVERABILITY. If any portion of this Agreement is declared by a court of
competent jurisdiction to be invalid or unenforceable, then such portion will be deemed
modified to the extent necessary in the opinion of the court to render such portion
enforceable and, as so modified, such portion and the balance of this Agreement will
continue in full force and effect.
34. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary
action has been taken by the Parties to authorize the undersigned to execute this
Agreement and to engage in the actions described herein. This Agreement may be
modified by written amendment.
35.ACCEPTANCE OF ELECTRONIC SIGNATURES. The Parties agree that this
Agreement, agreements ancillary to this Agreement, and related documents to be
entered into in connection with this Agreement will be considered signed when the
signature of a party is delivered by electronic (.pdf) or facsimile transmission. Such
electronic or facsimile signature will be treated in all respects as having the same effect
as an original signature.
36. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience
of reference only and will not affect the interpretation of this Agreement.
37. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this
Agreement.
City of EI Segundo Professional Services (REV 2018.05)
Page 9 of 11
Agreement No. 5890
38. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire,
flood, explosion, acts of terrorism, war, embargo, government action, civil or military
authority, the natural elements, or other similar causes beyond the Parties' reasonable
control, then the Agreement will immediately terminate without obligation of either party
to the other.
39. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT
represents that it has demonstrated trustworthiness and possesses the quality, fitness
and capacity to perform the Agreement in a manner satisfactory to CITY.
CONSULTANT represents that its financial resources, surety and insurance experience,
service experience, completion ability, personnel, current workload, experience in
dealing with private consultants, and experience in dealing with public agencies all
suggest that CONSULTANT is capable of performing the proposed contract and has a
demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY.
[Signatures on next page]
City of EI Segundo Professional Services (REV 2018.05)
Page 10 of 11
Agreement No. 5890
IN WITNESS WHEREOF the parties hereto have executed this Agreement the
day and year first hereinabove written.
CIT F EL SEG NDO
IqUS
o t Mitn ick,
City Manager
ATTEST;
',
Tr c ver,
ity Cler
APPROVED AS TO FORM
Qn � lc--�
Mark D. Hensle�j
City Attorney
for
URBAN FUTURES, INC.
1149A�'
Michael P. Busch,
CEO & President
City of EI Segundo Professional Services (REV 2018.05)
Page 11 of 11
EXHIBIT A
March 20, 2020
Joseph Lillio
Director of Finance
City of EI Segundo
350 Main Street
EI Segundo, CA
90245
Agreement No. 5890
I,, ` ,
SWAIN
CONSULTING
RE: Proposal to Develop Baseline Financial Forecast Model for General Fund and Conduct Fisca1360
Assessment
Dear Joseph:
Pursuant to our meeting and discussions, Urban Futures, Inc. (UFI) and Coxswain Consulting have
prepared this proposal to develop a Baseline Financial Forecast Model and conduct a Fisca1360
Assessment for the City of EI Segundo (City).
We believe the best approach to developing sound financial policies, strategies and plans begins with a
developing a solid long-term financial forecast aligned to strategic framework. These tools and process
can significantly help cities achieve both fiscal stability and service sustainability through more
informed decision-making. Armed with a robust forecast and strategic framework, leadership (both
appointed and elected) can identify critical unmet needs, develop options to close funding gaps and
create plans that achieve the City's objectives because they are aligned to a solid and continuously
updated financial forecast and strategy.
• Phase 1 of our engagement is the development of a baseline financial forecast for the City's
General Fund revenues, labor costs and expenses. UFI's baseline forecast model uses a simple
and clear income statement format based on the General Fund's current chart of accounts,
using the City's existing budgetary revenue and expense categories presented at a major
category level.
• Phase 2 of our engagement is conducting a Fisca1360 assessment of the City's finances and
alignment to a strategic framework. The Fisca1360 is a comprehensive fiscal management tool
that assess four key quadrants of the City's fiscal health. The purpose of the Fisca1360 is to
chart a course for taking control of the City's financial future and mitigating the City's areas of
fiscal vulnerability.
Agreement No. 5890
City of EI Segundo
Proposal to Develop Baseline Forecast Model & Conduct Fisco1360 Assessment Page 2
Our first task in developing the baseline forecast model is to gather and review a variety of data
regarding the General Fund finances, operating budgets, personnel costs and benefit structures
(including MOU commitments), current major capital improvement projects and initiatives, and long-
term liabilities including pension liabilities and OPEB pay -go costs. UFI will work to aggregate, correlate
and reconcile the baseline data to provide consistency and facilitate periodic updating of the baseline
data that drives the forecast model.
Once the baseline data is assembled and organized, the modeling commences with populating prior fiscal
years and the current fiscal year of General Fund revenue, labor cost and expense categories for
purposes of historical trend analysis and identifying anomalies or changes in revenue and expense
patterns. Changes in financial accounting and reporting in prior years are reconciled to the greatest
degree possible to ensure longitudinal consistency in the data. Because salaries and benefits can account
for upwards of 75% of the General Fund budget, labor costs are disaggregated and forecasted separately
from the City's other expenses, including pension and OPEB liabilities that are driven in part by salary
and benefit levels.
With the City's historical financial data incorporated in the model, the forecasting focuses on developing
a variety of indices and ratios that are selected as the assumptions which drive the revenue, labor and
expense projections across the forecast years. These indices and ratios are incorporated as a menu of
options, which can be adjusted for each revenue/expense category through an easy-to-use pulldown
menu in the model's control panel.
7NTRC
Examples of the indices and ratios, and the underlying sources, used in UFI's model include;
• Moody's Analytics, U.S. Precis"' Metro forecast data
• California Economic Forecast (DOT) County -level Economic Forecast;
• Average annual growth rates (AAGR) based on city's historical fiscal data,
• Trendline calculations based on city's historical fiscal data;
• Customized indices tailored to estimate future expense or revenue categories;
• Combined indices with moderate and conservative trends; and
• Other applicable city and/or regional economic predictive data.
For property tax, sales tax, transient occupancy tax, utility user tax and other major revenue categories,
UFI will also consult with and incorporate applicable data from the City's outside tax consultants (HdL,
Avenue Insights & Analytics, etc.)
:,�t
r'i C0 XSWANN
.f
IWIY gyllMtlll.Ull:9. b
IPYnRIXnnxxili W%q�re
Ila,!Wb'v0 NIU1.45 S=x..HiGltllioll,7^0',1111 �� ,mII,U� ll'Ilvwww'�
Category
Assumption (selectable)
AAGR
Category
Assumption(sefe able)
MGR
Property Taxes
V""11, �++u 11'4,14 lri,�ri0l"""nl
3,40%
Salaries Comm (baseline annual adj,)
I'I dl��i��l' ,V ,,.V�;rfl ��,�illrl',vl'•i",� I "+I'
290%
Sales Taxes
'd:,lr l',a. �',°'+pl I'vi ���uiay Y'lul�°fI
341%
Health Senellls
I',r.i'�Ill, d1,, i��11 m,.i„�i„p,; '1 yl', 111
5.66%
Transient Occupancy Tax (TOT)
u'. C-Ihni null I'ri In�6l"71'''".,(
3,06%
Contract Services
°.,"I'l'a, , ,'1 V. Yvi',^I'i all ll l mi l"l",I
423%
Commercial Parking Tax
la, "',xr1, II'v
111%
Operations, Supplies & Equipment
fl'.d 4 u110I1,10, I
2-63%
Franchise Fees
I I. f�11 h�111 ilii V,,,
2,50%
Inlerdepart. Charges (IT, Flee4 Ins.)
I'I'll„, "II, ,,Vilvq;i f"'lii,i 110,1
3.69%
Building, Fire&Develop. Permits
„,,.l'.r ��lu1',11,1, hi'"'nid l',li)npmi„
173%
Measure W -%Transfer to CIP Fund
0
-093%
Examples of the indices and ratios, and the underlying sources, used in UFI's model include;
• Moody's Analytics, U.S. Precis"' Metro forecast data
• California Economic Forecast (DOT) County -level Economic Forecast;
• Average annual growth rates (AAGR) based on city's historical fiscal data,
• Trendline calculations based on city's historical fiscal data;
• Customized indices tailored to estimate future expense or revenue categories;
• Combined indices with moderate and conservative trends; and
• Other applicable city and/or regional economic predictive data.
For property tax, sales tax, transient occupancy tax, utility user tax and other major revenue categories,
UFI will also consult with and incorporate applicable data from the City's outside tax consultants (HdL,
Avenue Insights & Analytics, etc.)
:,�t
r'i C0 XSWANN
.f
City of El Segundo
Proposal to Develop Baseline Forecast Model & Conduct Fisco136O Assessment
Agreement No. 5890
Page 3
The end -product is a customized, Excel -based user-friendly baseline forecast model that can be used by
the City to understand its fiscal future and the long-term financial impacts of strategic decisions. Because
UFI's baseline forecast model is grounded in the City's budget categories, the outputs of the baseline
model focus on cash flows and impacts on reserve levels. The model incorporates the City's reserve
designations and other financial policies to understand the City's actual working capital (undesignated
reserves) across the forecast years.
A.AUNWNb
'7bA4,
FORECAST FISCALYEARS
0
1
2
3
4
5
fi
l
6
9
N1'
t"r4riAaxxNY'01Wa.
FY 20211
fY 2021
FY 2022
FY 2023
FY 2—
FY 2025
FY 2026
1202?
FV 2026
FY 2029
FY 2030
INP'WT36A1!Y
Propene .— F
33869,133 1
35002493 tl
36404620 q
37b'.6951 b
3905.87 s
,03,7334 f
<1709f54 I
g3LS0102 Y
44493433 a
,591E 910 f
..;'r l:5
In. R,1. 1—c.—,
Sales Taxes
3,000000
18,789800
11'--4697
194_3953
3213946
20 in 50:
335E SBE
308:6564
31]9 rA5
21564,194
3594:55
22316245
375248
23064405
3836006
23639ee9
396;65]
24621073
x0893.'2
2541,707
Y r'>s•x•�11, ,T.�,
Calver Teen
SA55297
6196132
13,29452
6150317
20625407
6 240 446
21 n4634
6331637
21601152
6424 n0
22 f11—
6511,401
22.Sotl 640
661151,
23450232
—728
23532,93)
68',903
24015011
1%0134
1R,1'�,@.
r�, 9ixt�U'0K
Fra ..eF...
4400800
4116541
4226635
4330837
4452309
4-1.16
4CA-'7%
4—,%,
,9 'm
50]8734
rOW
Bldc FUe60eve Pemurs
8.131818
12363287
1260755?
1'634426
UO 1415
>?251857
13458441
1375271
1386Tf54
WleD 416
1r},O;1,1
PeerruelromOMr A9enc•aa
tT05,4re
1,719920
1]33713
1717.1
171056]
1773,1'5
1,785611
17%285
1111,543
Idle E0.
N+YJ:1�'U
Cnerpesla Sarrrces
8,929.713
9197912
9362365
9573260
9780 BBB
9985389
1D V7092
103%388
1958354
10777385
'3-.%13b
Pdmninrai,e CNarpez
Flees
1466.124
B�,500
1511 ]]B
6231]0
15%%9
627699
1%0220
632263
1581
6R U'9
16425
E4l?9i
1635 BU
Wsm:
1661012
674,3346`4,9%
16481226
1715 OL1
659641
Ir
anYv4 'M,i+)
hraea Rera6Orha ne+enues
5,091,953
3294731
3315628
3395 fiE7
3441782
3191192
3 538244
3584112
3633,420
3681534
irannaz h -Genera! Fr.ld11%I
1261,591
1_'61551
1261591
1261591
1261591
1261591
1251591
1261591
1261591
1'61691
1�4."!91
MaasureW
WTO=
12107,611
13262141
n, 734,101
W225458
197.264
F,25,955
1577619
15-111N5
16775529
1, I11 .M'•:�
r3vty
TOTAL REVERIES i
1248B143T f
49.342.424 f
134,566,163 t
136,390,507 S
142,272.732 i
"6.173.641 f
150,093.516 i
154,1T7.459 f
156,183,43 f
182253.632
ENPIONES
5alnlesa.sCmgernarm f'
53.433.326 1
S416'}, Ti9 tl
5113831/ 1
575,n 147 f
6L 2t 054 1
60454304 1
,t 2P, 1
L, 55433 1
F_u, 15 f
1,"%902 A
d��•, ��:I".•'1;1
HedrN fienelus
7491,970
7565,370
603,123
8,516969
9810"1
5457605
10009618
A.5303a0
11109 i'9
116%33<
Odxv EmNrrse Wwlars Cwnprnsarm
IEnSNmnal CBs
3.423437
6.022
3496185
6435.116
3,571162
6595994
3,Fd0013
6760134
3,126785
1929,91E
3607527
715,164
3,89021b
7280743
3975117
7462,762
4,05067
7649331
4151,191
4840554
,owl
YP'E6 "•iA
PEASUPL
7.005.675
12251827
13776610
5134609
15546 W
tfi 764939
17225351
7.693853
13,185775
116859%
OPEBIP,1+ .Pr F- d1 l
388L3ST
3279954
3493869
3780976
4022664
9.292,402
4.570366
190919=
5211739
5,521361
T^Y--dNrd
C-1 -1--
".0801081
106N 105
01"2%
066052
S,1]61E9
12A3LM
13,197421
13T03TTi
14223031
14733044
M',,5W
Ocerarrg 5s y,ese f4upmen
4.904.13
44V6399
451123]
4.721765
VBSB E9E
49W.881
51+4607
5257,647
598.438
5515603
11661 Y
Facdiies,Wlaas and C4wr4 Eroanlal
3,�4At1
3023722
371823
3109149
317170.
384631
3,362865
3273205
3454 Wu
3355580
1p„v!rtl
CaprJ
M+
Wsdepaunen al[Narves
Transrws Ora -Gena. Fud 0001
?.13”.
%3.454
7940138
965156
7 769 362
915746
15151E
,1%
892]810
565.86
6157039
%.156
9086258
96556
946,48'
%9.56
9.N4.706
%5£6
1007393/
%5156
10,5154
965155
MeeweW- Enpenaes 6 Tranaas a
7A67.000
1D'45093
IO 65794
0,930241
11360366
1177/611
12175164
12586135
13000636
13421/23
13 654 650
lAfanrrwro-/u-6.v_ Eµwiv,c'1 wuYwr/
1797AOp1
TOTALS EN9E5 S
119.472.439 f
124.533,125 t
Us 8S7.298 i
134.929205 t
139.GIS ,192 t
"4291.711 i
146,854,344 f
153.2"SOT f
158,112,Sa0 t
162.736.786 t
167.687.182
Nn Transfers 6 OnPTlrae Adlrasrrneras
14,92110001
-
AN CIPFTNTNssts LOSROEFI n f
9392,08121 0
4.Ou'A,'_ U
$, v'In— U
5,464.301 U
2,37}pyy0 U
!,6814 QPI 4
I,2"9iJ" I
I'll 3.v2 9
d0i,'N I': 0
14189,1'36Y W
bU;O"3a AM
GENIRAL FUNO OALANLE-ENOW FY A
04.545151 i
09.354450 f
94085.36 1
97596,617 S
100.TZGXT f
102.002,087 i
103241,260 t
104,059.212 f
104,130.104 f
103.645,040 f
--_-
The final component of the baseline forecast model is a standardized control panel and dashboard that
facilitate ease-of-use and understanding. UFI's baseline model also includes a "Dashboard" with a
standard set of graphical outputs and statistical measurements that help tell the story of the City's
current and future fiscal condition in understandable terms to policymakers, stakeholders and the
general public. Examples of dashboard outputs and metrics used in prior models are as follows:
Net Revenues, Expenses & Fund Balance Annual Operating Surplus/(Deficit)
Baseline Forecast Baseline Forecast
------ ''.. ..-.""""" 5143 D3c r„D
on
r - •. t'
Revenues E4pCn5C5 —Fund Balance Ycar End .071 ,7011 T ,o' .7°s "F”, c'1 7077 71.,
11
COXSWAIN
l
CONSULTING
N
City of EI Segundo
Proposal to Develop Baseline Forecast Model & Conduct Fisco136OAssessrnent
Agreement No. 5890
Page 4
At the conclusion of our modeling, Coxswain Consulting will use the data to develop a narrative for key decision -
makers within the City. The goal of this strategic narrative, will be to provide the City with high-level direction as it
relates to executing, evaluating, and, when necessary, changing existing financial policies and procedures. We will
then conduct a meeting with the City's finance management team to review the baseline forecast model,
to discuss our insights from the forecast outputs, and to determine the next steps towards meeting the
City's financial objectives. While the discussion and decisions on next steps will be largely driven by the
City's policy context, priorities and available financial data, UFI has additional customized forecast
scenarios and financial assessment tools that build upon and integrate into our baseline forecast.
Appendix A contains some examples of these custom scenarios and assessments that can enhance the
City's insights and understanding of its fiscal future, resilience and sustainability. The addition of these
custom forecast scenarios and financial assessment tools would be performed as a separate
engagement, with a separate cost estimate and timeline.
The Fiscal360 is a comprehensive management tool that assesses four key quadrants of the City's fiscal
health. The purpose of the Fiscal360 is to chart a course for taking control of the City's financial future
and mitigating the City's areas of vulnerabilities. Operating budgets and financial reports do not identify
many important issues that city decision -makers must consider. Here are just of few of critical financial
issues these standard reports do not address:
• Fiscal impact of deferred maintenance and depreciation on facilities or infrastructure.
• The gap between current capital funding levels, the city's long-term capital needs, and the
capacity to effectively deploy the capital.
• Ongoing reliance on one-time, declining or expiring revenue sources, or over -reliance on
economically sensitive or highly -variable revenues.
• Vulnerable fiscal interdependencies between the city's general fund and special funds.
• The impact potential impact of recessions or economic shocks to the city's finances.
Recognizing this critical gap in financial information and knowledge, UFI and Coxswain Consulting
developed the Fiscal360 diagnostic tool. The Fiscal360 will assess and measure the City's performance
in four key quadrants. Each quadrant is given a respective performance color that is accompanied by
pertinent data, supporting information, and recommendations related to the assessment result.
Those quadrants identified as GREEN are considered either
strengths or low-risk areas for the City. While GREEN
quadrants may have recommendations in terms of changes,
these would be considered "nice to haves" for improvement
as opposed to being required. Those quadrants identified as
YELLOW are potential areas of concern that are either easy to
mitigate with corrective action or proper adjustments to long-
term plans. Those quadrants identified as RED are considered
both serious and urgent with adverse impacts in the short-
term and/or long-term.
By taking this triage -type approach, our assessment allows
I
COXSWAIN
CONSULTING
Agreement No. 5890
City of EI Segundo
Proposal to Develop Baseline Forecast Model & Conduct Fisco1360 Assessment Page 5
the City to focus energy and resources on the right areas and make the most effective decisions to
ensure long-term fiscal health and stability.
Strategic Framework: Quadrant 1 of the Fisca1360 evaluates how well the City's long-term vision aligns
with its fiscal policies and practices. It also examines the strength and clarity of the City's strategic
framework. At the foundation of this strategic analysis are proven and well-established best practices
used to guide organizations from potential to high performance. These best practices include a
synergistic application of the International City/County Management Association (ICMA), Government
Finance Officers Association (GFOA), and Coxswain Consulting's own award-winning performance
techniques that are customized to the unique needs and dynamics of the City.
Revenues: Quadrant 2 of the Fiscal360 evaluates the City's revenues. Some of the areas examined are
the City's revenue diversity and vulnerability, feasibility of growth factors in the tax base, and other
common revenue oversights.
Expenses: Quadrant 3 of the Flsca1360 evaluates the City's expenses. This examines both controllable
and uncontrollable cost such as labor, pension/OPEB liabilities, deferred maintenance to determine
potential blind spots or future cost overrun not accounted.
Solvency: Quadrant 4 of the Fiscal360 evaluates the City's solvency. This quadrant brings together many
of the critical areas that generate fiscal risk. How quickly will an economic downturn impact your City?
How healthy are your reserves? Is there an operating deficit? What are the financial dependencies
between the General Fund and Special Funds? Solvency provides a clear picture of whether the City can
meet its long-term obligations.
At the conclusion of the Fisca1360 is a strategic roadmap with a list of priorities based on urgency.
We are willing and prepared to refine, modify and tailor our tasks and work product to meet the City's
needs and financial parameters. For purposes of generally estimating costs associated with the work
described in this proposal, the following are estimates based on work completed in recent similar
engagements:
1. Phase 1: Baseline Forecast Model for General Fund. We charge on a time and materials basis
for developing the baseline forecast model, including any meetings and teleconferences
required to gather the data and review/revise the model. Assuming the City's baseline financial
data does not require significant manipulation and reconciliation for purposes of populating the
model, we estimate the hourly fees to produce the baseline forecast model will range between
$20,000 and $25,000.
2. Phase 2. Fisca1360 Assessment. We charge on a time and materials basis for conducting the
Fiscal360 assessment. We anticipate this process will require several in-person meetings and
potentially several follow-up teleconferences. In addition, the City may desire to have our team
present a summary of Fisca1360 assessment to the City's management team and/or city council.
UFI and Coxswain consulting charge on a time and materials basis for developing/making
COXSWAIN
UH CONSULTING
City of EI Segundo
Proposal to Develop Baseline Forecast Model & Conduct Fisco1360 Assessment
Agreement No. 5890
Page 6
presentations and attending meetings. We estimate the hourly fees for this work will range
between $20,000 —$25,000.
Due to variables in every engagement and to ensure the City maintains flexibility to tailor the work to fit
within the City's time and fiscal constraints, we propose to carry out our work on an actual time and
materials basis with the overall costs being governed by the financial limits defined by the City, utilizing
the following professional service rate schedule:
UFI Professional Staff Hourly Rates
Chief Executive Officer $350
Managing Director/ Coxswain Consulting $300
Associate $175
Analyst $125
These rates will remain constant through December 31, 2020 and are subject to change thereafter. Costs
for telephone, e-mail and facsimile expenses, postage and incidental photocopying are included within
the above noted rate schedule. The rate schedule does not include out-of-pocket and travel expenses
that may be incurred during the work. Out-of-pocket expenses include inter -regional travel, project
specific services or data from third -party vendors (prior approval required), or extraordinary or
specifically requested materials, supplies, printing, or electronic data storage. All out-of-pocket expenses
will be charged on an actual cost basis.
We are enthusiastic about the opportunity to work with you and the city staff. If you have any
questions, please do not hesitate to contact me at 714-923-3541 (work) or 714-316-6150 (mobile), or
via email at i ichaelbd urbanfuturesinc.com.
Sincerely,
Michael P. Busch
CEO & President Urban Futures, Inc.
COXSWAIN
CONSULTING
Agreement No. 5890
APPENDIX A
Custom Forecast Scenarios & Financial Assessment Tools
Once UFI has developed a baseline financial forecast, we are very comfortable and adept at developing
customized forecast scenarios and financial assessment tools that build upon and integrate into the
baseline forecast. These custom scenarios and assessment tools can enhance the City's fiscal resiliency
and sustainability by providing a means for evaluating the financial impact of the City's priorities and
risks and developing/assessing strategies to mitigate the financial impacts.
Multiple scenarios can be "stacked" to produce alternative forecasts with comparative metrics/outputs.
Each custom scenario that is added to the General Fund baseline model can be toggled on -and -off for
purposes of evaluating the combined impact of multiple scenarios on the long-term forecast. In
addition, the control panel is expanded to ensure ease-of-use in toggling and iterating the variables that
drive the scenarios, and graphical outputs are added to the dashboard to help tell the story of the
difference between the City's baseline forecast as compared its scenarios forecast.
To help a city understand the value of these additional custom scenarios and assessment tools, we use
the following process: (1) understand the city's prioritized needs and goals; (2) identify various risks that
could significantly affect the city's financial future and potential mitigation strategies; (3) integrate the
priorities, risks and mitigation strategies into the city's baseline forecast through additional financial
scenarios or assessment tools; and (4) evaluate the overall combined fiscal impacts and re -iterate as
needed to achieve objectives. Here is a process model that visualizes the approach:
Evaluate combined
fiscal impact to City's
long-term financial
sustainability and fiscal
resilience
Assess and monetize
fiscal impacts of City's
needs, goals and risk
mitigation strategies
COXSWAIN
CONSULTING
Agreement No. 5890
The following are some examples of the additional financial modeling and strategy services the City may
consider:
0 Recession Impact & Potential
Net Revenues, Expenses & Fund Balance
Response Scenarios. This
Baseline Forecastvs. Scenarios Forecast
forecasting module correlates the
5,]5,000ODD 6140.000.000
City's historical real revenue data
with prior recessionary periods to
h
estimate the impact (revenue
„
5'55.°`"°°° x--M-"'�"" $]DO WODDO
shortfall) caused by a potential
future recession. The module
r®""
allows the City to assess and
513S aoo oca m® .• , ,
°® �'•
.•
evaluate the profile of various
®mw« ",
recession scenarios across the
s11s°00p00
forecast years (i.e., the length and
U}n {y}�1 ,ylU} Y lu} }}F Yy}°}S ole_' 0
10 0101�
severity of the recession's fiscal
—Revenues - Baseline ••• Revenues -Scenarios
, Expenses -Baseline • • •Expenses -Scenarios
impact compared to the baseline
—Fund Balance - Baseline °•• Fund Balance - Scenarios
forecast), including post -recession
revenue recovery periods. In addition,
UFI can work with the City to model potential financial
response scenarios to the recession based on the City's priorities, needs and policies.
• Labor Costing Module & Projections. This module integrates the City's detailed labor costing
data (breakdown of total compensation and benefits by position/bargaining group/PERS
classification) into the baseline forecast model in -lieu of using budget categories for salaries
and benefits. The module provides the City a more granular understanding, analysis and
control of its labor costs in the forecast, which often account for upwards of 75% of general
fund expenses. More importantly, the module provides the City with the capacity to iterate and
project the fiscal impact of potential adjustments to salaries and benefits for use in future
labor negotiations with bargaining groups or as a potential recession response scenario.
• Pension/OPEB Modeling and
UAL Amortisation Payment Schedules
Strategies. UFI is the leader in 91°,°44,ADD .
., FlM1u,l999,, S67
providing ension OPEB advisory
serve Like our long-term
YU
AL DAymmts
Inv
financial forecasting models, we `""
$20,OOO,OW �4"P �,
develop customized pension r
models for each client. We 5 ��
develop an amortization model
for each of the City's amortization
bases that comprise the unfunded
accrued liability (UAL). The model
provides UFI the ability to IwMI:_
evaluate the financial impact of 5° 20L9202020212021102i2024IOU 202620D20M 20192030201!2032OMZDN 20M 211M 203120M20"2040200120A220320V204920A62UC] 2096
different pension management
and financing strategies. For the City's OPEB liability, UFI incorporates the projected "pay -go"
retiree medical premiums into our financial retirement costs projections and works with the
C, XS,WAIN
CONSULTING
Agreement No. 5890
City to identify potential OPEB funding strategies. These financial strategies for pension and
OPEB can be integrated into the forecast model to provide the City a comprehensive
perspective on how its addressing unfunded retirement liabilities.
• Custom Revenue or Expense Scenarios. UFI is also very experienced in developing customized
revenue and expense scenarios that integrate into the forecast. Examples of revenue scenarios
include incorporating financial projections for expected revenues from sources such as
new/expanded/extended tax measures, and revenue impact analysis from significant new
community development projects currently in the city's planning pipeline. On the expense
side, example scenarios include incorporating the fiscal impact of strategies to mitigate
pension or OPEB liabilities, potential financing structures for capital needs, or proposed
municipal service level improvements or changes to service delivery models.
COXSWAIN
I Vell I Iflu- WF-, I CONSULTING
.r ill 11 111 1 I'd • duJ