alvarez & marsal public sector services state & local ... · 18+ years in public and...

Presentation to North Bay Village, FL

Tuesday, February 5, 2019

Alvarez & Marsal Public Sector Services

State & Local Government Services &

Solutions

© Copyright 2019 Alvarez & Marsal Holdings, LLC. All rights reserved. ALVAREZ & MARSAL®,

® and A&M® are trademarks of Alvarez & Marsal Holdings, LLC.

I. Leadership Team Overview / Snapshot Bios

II. Alvarez and Marsal Firm Overview

III. A&M Public Sector Services Overview

IV. A&M Scope and Expected North Bay Village Benefits

V. Related Qualifications

VI. Appendix: Full Bios for Key Professionals

3

Leadership Team Overview

A&M recommends a senior staff-heavy project team with significant relevant experience to most effectively

meet North Bay Village’s needs.

Nancy Zielke | Senior Director35+ years in state and local government budgeting; operational and

performance improvement strategies; and financial restructurings

Has led numerous operational and financial efficiency assessments

Served as interim Executive Budget Director for Detroit Public

Schools and Planning and Budget Director for SC Department of

Health & Human Services

Prior to A&M, held key CFO and Budget Officer roles at the City of

Kansas City, KS; KS BPU and University of Missouri– KC

Past President, Government Finance Officers Association

BA in Business Administration, Adrian College

MPA, University of Kansas

Emergency Manager Certification, Michigan State University

Sheena Gordon | Director10+ years of financial management and data analysis experience

across private and public sectors

Supported of statewide and agency efficiency reviews for the States

of Wyoming, Rhode Island, and Indiana, and the City of Dallas, TX

Led financial management assessment for the Town of Ramapo, NY

Provided budget and financial management support for a

Pennsylvania human services agency

Prior to A&M served as a Budget Analyst for the New York City

Mayor’s Office of Management Budget, and held research analyst

roles at Fitch Ratings and Roosevelt & Cross, Inc.

BA in Economics, Barnard College – Columbia University

MBA Columbia Business School

Prosci® Certified Change Management Professional

Matt McCleary | Director18+ years in public and private sector advisory consulting services

including real estate, infrastructure, and economic development

Former Village Administrator and interim Community Development

Director

Managed pre-development efforts for mixed use project for the City

of Twentynine Palms’ $30M downtown revitalization project

Previously managed AECOM’s Economics team in Southern

California that focused on maximizing value of public land

Certified Project Management Professional (PMP)

MA in Political Science, Illinois State University

BS in Business Administration, University of North Iowa

Tom Shaffer | Managing Director & Co-National Practice LeaderServed as interim CFO for a large government agency and two

private equity-owned companies

Has led several operations and finance-focused efficiency

assessments, including for U.S. Postal Service, Oklahoma, and

commercial organizations

Served as Interim SVP of Finance for a large defense contractor

based in South Florida

Prior to A&M, Special Advisor to the CFO of the FBI, where he held

Top Secret / SCI Clearance

Former Adjunct Finance Lecturer, Georgetown University

Certified Project Management Professional (PMP)

BA in Economics, University of Pennsylvania

MBA, Harvard Business School

4

Founded in 1983, A&M delivers tangible results to organizations seeking to improve performance all across

the world.

About Alvarez & Marsal – Overview

Corporations

Private

Equity

Investors

Distressed

Borrowers

and

Lenders

Law Firms

Foundations

and

Non-Profits

Government

Agencies

Fiduciaries

3,500+Employees

53Offices

20+ Countries

35Years

4Continents

5

A&M is a premiere, full-service consulting firm with dedicated teams focused on industry verticals, including

the Public Sector.

About Alvarez & Marsal – Industry Experience

EnergyFinancial Services HealthcarePublic / Social Sector Infrastructure

Core Industries

Additional

Industries

• Aerospace & Defense

• Agriculture

• Automotive

• Business Services

• Chemicals

• Construction

• Consumer Products

• Education

• Environmental

• Hospitality, Gaming & Leisure

• High Tech

• Manufacturing

• Metals and Mining

• Pharmaceuticals

• Retail

• Telecommunication, Media

& Technology

• Transportation and Logistics

▪ Downstream

▪ Exploration and

Production

▪ Midstream

▪ Oilfield Services

▪ Utilities and Power

▪ Banking

▪ Diversified Financials

▪ Insurance

▪ Private Equity Services

▪ Wealth Management

▪ Compliance / Regulatory

▪ Clinical Support Services

▪ Interim Management

▪ Investors

▪ Payer

▪ Performance Improvement

▪ Private Equity

▪ Providers

▪ Restructuring

▪ Revenue Cycle

Management

▪ Strategy

▪ Suppliers

▪ Transaction Advisory

▪ State & Local Government

▪ Health & Human Services

▪ K-12 Education

▪ Higher Education

▪ Foundations

▪ Global Development

& Global Health

▪ Parking

▪ Surface Transportation

▪ Transit

▪ Aviation

▪ Higher Education

▪ Mixed Use Developments

▪ Affordable Housing

▪ Transit Orientated

Development

▪ Student Housing

6

Founded in 2003, A&M’s Public Sector Services practice has a dedicated team that partners with leaders to

deliver tangible results.

A&M Public Sector – Overview

Alvarez & Marsal helps public sector organizations drive innovative strategies to overcome challenges

and implement sustainable change.

We partner with state and local leaders to develop and implement comprehensive

revenue improvement and expense reduction plans to stabilize financial and

operational performance

We partner with K-12 and Higher Education leaders to improve the ROI on

educational investment by unlocking the potential of assets, partnerships and

funding opportunities

We partner with Medicaid and public health leaders to balance provider and

participant needs while providing all stakeholders with increased operational and

fiscal transparency and accountability

We provide analytical and subject matter support, fiduciary services, and expert

testimony in support of oversight bodies, funders and creditors to municipalities

EDUCATION

HEALTH AND

HUMAN SERVICES

STATE & LOCAL

GOVERNMENT

MUNICIPAL

DISTRESS &

CREDITOR

SUPPORT

7

Fiscal First Aid

Strategies

Interim Management

• Cost Reduction and Revenue Maximization Strategies

• Internal Control and Risk Assessments

• Service Delivery and Customer Service Assessments

• Organizational Improvement Studies

• Real Estate and Economic Development

• Strategic Sourcing

Financial Advisory

Services to Local

Governments

Budgeting & Financial

Management

• Transparency and Accountability in Budgeting and

Planning Processes

• Revenue Forecasting

• Management Financial Reporting

• Performance Metrics and Cost Driver Analysis

• Fiscal and Economic Impact Analysis

• Independent Program Risk and Quality

Assurance

• Chapter 9 and State Receivership Advisory

Services

• Cost Take-out and Revenue Recovery

Strategies

• Contract and Constituent Negotiations

• Asset Monetization Review

• Emergency Financial Managers

• Distressed Program Remediation

• Complex Program Leadership and Execution

• Organizational Change Management

• Due Diligence

• Interim Staffing Roles

• Workforce Capacity Assessments

• Financial Reporting

• Organizational Assessment

• Strategic Planning

Operational

Efficiency

We provide comprehensive solutions for Local Governments to achieve sustainable results.

A&M Public Sector - Financial and Operational Solutions

8

The A&M Team proposes to support North Bay Village through an independent evaluation and assessment

of the Finance and Human Resources functions as well as Village management advisory support.

A&M’s Support of NBV: Proposed Scope of Services Summary

Task 1: Financial Operational

Assessment

Task 2: Human Resources

Assessment

Task 3: Village Management

Advisory Support

• Review current business processes, internal controls and reporting within the Finance Department

• Identify recommendations to drive financial and operational efficiency

• Validate prior accounting for debt service funded projects and reserve requirements

• Complete a three-week high level review of the Human Resources management processes

• Review of existing Village policies, procedures and controls to ensure the resource management practices are aligned to best practices in personnel management

• Discuss with the Interim Village Manager and related parties strategic priorities and upcoming challenges

• Provide recommendations on best practices and organizational structure

• Support search for a permanent Village Manager

Key Outcomes:

Independent, expert perspective on current state of key finance and HR

processes and related roadmap to implement best practices to improve

the Village’s operations, accountability and transparency

Key Outcomes:

Experienced advisor to support

interim Village Manager and

provide a smooth transition to the

Village’s permanent manager

9

Sample A&M Public Sector Clients

&

Deep Local

and Municipal

Expertise

Strong Public Sector Credentials

A&M has strong public sector credentials, including deep local and municipal government expertise.

10

State & Local Case Studies (1 of 4): Local Efficiency Reviews

A&M has demonstrated experience driving efficiency within local governments

● A&M is assisting Newark Public Schools in developing a three year financial

and operating plan that will establish a roadmap to modify the cost structure of

the school district as charter schools expand.

● A&M served as financial advisor to the Emergency Financial Manager of Detroit

Public Schools, driving the savings of $53 million over a 2 year period, including

savings in janitorial and maintenance, transportation, and security.

Town of Tuxedo, New York

• Completed an independent evaluation of the Town’s financial management organizational structure and business process internal controls

• Identified 32 recommendations and implementation plan to address safeguarding the Town’s assets, new financial reporting processes, and new financial and operational policies

State of Wyoming

• Cconducted a government efficiency review of four cabinet agencies to respond to a loss of mineral tax revenue in the State of Wyoming

• Identified savings and revenue enhancement opportunities of $227.6 and is currently implementing its recommendations.

Town of Ramapo, New York

• Appointed by the U.S. Federal Court of NY to review and recommend improvements to the Town financial reporting procedures and controls.

• Independent evaluation identified 161 recommendations to improve financial reporting, business processes, internal controls and accountability of the Town’s assets

Grand County, Colorado

• Assessed the business practices and procedures of the County’s revenue collection and cash management processes.

• Recommended over 30 strategies for improved internal controls, segregation of duties and improved financial reporting

Kansas City Board of Public Utilities

• Completed internal business process assessment to improve internal business operations to reduce costs and increase efficiency within central business operations

• Identified over 70 strategies to improve budgeting practices and revenue forecasting, financial reporting, and cash management

11

State & Local Case Studies (2 of 4): Local Distressed Support

A&M’s has provided financial advisory services to distressed governments to drive fiscal sustainability







Detroit Public Schools

• Financial transformation initiative addressing DPS’s then-existing $300M operating deficit

• Created new budgeting process, costing and long term financial planning models, deficit elimination plans, and assisted in implementation of $54 million in operating reductions

• Interim staffing roles Executive Budget Director / Deputy CFO and Director of Special Ed

City of Harrisburg, Pennsylvania

• Completed an independent financial review, developing a flow of funds analysis, reviewing debt financing proposals, and validating the accuracy and reasonableness of assumptions underpinning the budget

• Validated state appointed Receiver financial plan and operating strategies

City of Stockton, California (Assured Guaranty)

• Evaluated the solvency of the City by conducting a bottoms-up review of financial projections and operating structure, identifying over $9 million in revenue enhancements and $84 million in expense reductions

• Provided financial analysis and modeling of key exit plan to maintain long term solvency

City of Port St. Lucie, Florida

• Served as financial advisor to the City’s $64M loan to a financially struggling nonprofit research institution within the City.

• Appointed as receiver for the nonprofit, helping to reduce facility operating expenses by 51% and negotiating a 37% reduction in property and casualty insurance premiums

12

State & Local Case Studies (3 of 4): State Efficiency Reviews

A&M’s proven approach helped drive large state government efficiency improvement efforts







State of Wyoming

• Conducted a government efficiency review of four cabinet agencies to respond to a loss of mineral tax revenue in the State of Wyoming

• Identified savings and revenue enhancement opportunities of $228M, and currently implementing our recommendations

State of Kansas

• Completed a government efficiency study for nine state agencies to address a loss of tax revenue in the State of Kansas

• Study results identified 105 efficiency, cost savings and new revenue opportunities totaling in excess of $2.0B for the State over five years

State of Louisiana

• Government Efficiency Review of nine cabinet agency resulting in more than $2.7B in identified cost savings and revenue enhancements

• Provided implementation support driving the improvement roadmap strategies

• Assisted in development of new employee health care programs and contracts

State of Oklahoma

• Reviewed three public safety departments (Department of Corrections, Department of Public Safety, and District Attorneys Council)

• Identified $30M in savings across ten overarching categories of efficiency, cost savings, and new revenue opportunities for the State

13

State & Local Case Studies (4 of 4): Local Economic Development

A&M has experience assisting local governments with economic development revitalization strategies







City of Twentynine Palms, California

• Engaged by the City for a variety of assignments including project management for a downtown economic revitalization development projects

• Served as the interim Community Development Director managing development projects including senior housing and a community center

Unified Government of Wyandotte County / Kansas City, Kansas

• Performed various economic fiscal impact analysis and market assessments of retail and office development projects including review assessment of incentive requirements

• Estimated economic benefits for TIF, CID, TDD and STAR Bond districts including how the jobs and revenues obtained from the project will contribute to the state and region

City of Leawood, Kansas

• Completed economic fiscal impact study and examined the local demographic characteristics of the trade area to support the retail profile of the proposed destination for shopping, dining and entertainment

• Projected sales and property tax impact of new development and impact to the City/State

Fairfax County, Virginia

• Validated financial information in the County’s master developer in the Laurel Hill Adaptive Reuse Area located at the former historic Lorton Prison Reformatory and Penitentiary

• Reviewed development assumptions and costs, project operational cost projections, historic tax credits, housing credits, CDA, and TIF’s to identify financing shortfalls

14

A&M’s experience working to improve the operations of numerous organizations provides an unparalleled

perspective in identifying opportunities for increased savings, operational efficiencies, and revenue

maximization for the both large and small municipal governments.

Successful Track Record of Identifying and

Implementing Cost Savings and Revenue

Enhancements

Demonstrated Achievement of

Operational Improvement

Opportunities

Sustained Cultural Change

Throughout Organization

Critical Stakeholder

Management

Transfer of Knowledge and

Ownership

Established Reputation and Willingness to Stand by

our Recommendations in Public Forms, if Needed

Demonstrated Client Success with Post-Engagement

Implementation

Proven Methodology for Driving Continuous

Improvement in Complex Organizations

Critical Success Factors Why Alvarez & Marsal

14

Final Thoughts

15

Tom Shaffer

Co-National Practice Leader

/ Managing Director

Public Sector Services

Tom Shaffer specializes in driving improved financial performance through enhanced fiscal transparency and execution-driven leadership. He has

almost 20 years of financial experience - both as an interim executive and as a consultant to publicly traded firms, private equity owned companies

and large government organizations. He has led finance efficiency reviews across many organizations, and his areas of expertise include financial

transparency / reporting, FP&A, and treasury.

Tom’s efficiency review and advisory assignments at A&M have included:– Co-led A&M’s comprehensive operational and financial review of the $70B United States Postal Service, where his team found $26B of efficiency-improvement

opportunities over ten years

– Currently co-leading the transformation plan for the Puerto Rico Highways and Transit Authority, where A&M is serving as Executive PMO to execute revenue-

enhancing and cost-reducing initiatives

– Led “Rapid Results” four-week assessment for a PE-owned government services contractor – provided to PE sponsor and company leaders 11

recommendations to increase efficiency and/or enhance capacity

– Performed all calculations and led negotiations with the U.S. Department of Interior and U.S. Department of Education to support the Guam Department of

Education’s (approved) indirect cost rate submissions for four fiscal years

At A&M, Tom’s interim finance assignments have included:– Interim CFO of $3B transportation and capital delivery agency, where Tom closed the books in record time, revamped the agency ’s key financial reporting, and

provided recommendations to the executive team on finance team and structure

– Interim SVP of Finance for a $650 mm defense contractor, where Tom built tools to assist the CFO and Board and Board of Directors with increased working

capital visibility

– Interim CFO of $500 mm private equity-owned logistics firm. Under Tom’s leadership, the firm received a ‘clean’ opinion on its financial audit, successfully

transitioned its ERP from Oracle to Microsoft AX, significantly reduced costs through vendor negotiations and introduced bill ing and collections tracking

– Interim CFO of Private equity-owned, global manufacturing firm. Tom led a successful $80 mm recapitalization, revamped the firm’s working capital/cash

management practices, overhauled the monthly financial reporting packet, and oversaw IT and Human Resources.

– Interim Vice President of Financial Planning for a $1B public health care company, where Tom led the overhaul of the FP&A function and re-vamped internal

and external/board reporting

Prior to A&M, Tom served as Special Advisor to the CFO of the FBI leading strategy and business process re-engineering projects. For his notable

work to lower costs and improve efficiency, Tom was nominated by the CFO for the Director’s Award for Special Achievement.

Tom has been an adjunct instructor at Georgetown University’s School of Business and George Washington University’s MBA Program. Course

topics included: Managing Working Capital, Capital Budgeting, Discounted Cash Flow Analysis and Risk Management.

EDUCATION AND CERTIFICATIONS– Certified Project Management Professional (PMP)

– Top Secret / SCI Clearance (expired)

– BA in Economics (magna cum laude), University of Pennsylvania

– MBA, Harvard Business School

16

Nancy Zielke

Senior Director


Nancy Zielke brings deep expertise in state and local government budgeting; operational and financial improvement strategies; and fiscal

sustainability planning within complex government organizations with more than 30 years of experience. She has lead various distressed municipal

government financial advisory service projects measuring the financial health of communities and the development of strategic initiatives to address

operating shortfalls. She has experience serving as an expert witness and testifying in federal and state courts on municipal government matters

Representative examples of Nancy’s efficiency review and financial advisory assignments at A&M have included:– Ramapo, NY - Appointed by the U.S. Federal Court to perform independent financial assessment of the Town’s financial management operations

– Tuxedo, NY – Evaluated the Town’s internal controls and financial management practices, identifying 40 recommendations to centralize cash collections,

improve financial policies and procedures, and enhance financial management reporting practices

– Seattle, WA – Leading financial and operational assessments for five City departments to improve financial operations and business practices

– Grand County, CO - Assessed the County’s cash collection processes, identifying 31 areas for internal control improvement to ensure funds are received and

proper systems being utilized to safeguard cash collections.

– Huntsville, TX - Financial and internal controls review of the use of City’s hotel occupancy tax receipts to ensure compliance with local policies and state

regulatory codes and best practice review of similar Texas governments.

– South Carolina Department of Employment and Workforce - Assessment of the State’s internal controls and processes to recover overpayment of

unemployment insurance benefit and its cash collection/management operations

– South Carolina Department of Health & Human Services – Assessment of State Medicaid agency administrative operations identifying cash management and

financial improvement strategies. Implemented new Financial Management organizational structure addressing internal control, long term planning and

accountability needs

– Kansas City Board of Public Utilities - Internal control and financial review identifying over 60 internal control, performance improvement, and reporting

recommendations to achieve optimal efficiency while maintaining meeting state and federal compliance requirements.

– State Efficiency Reviews - Worked on numerous major financial transformation projects for the State’s of South Carolina, Louisiana, Kansas, Wyoming and

Pennsylvania and the US. Territory of Puerto Rico

– Financial advisor to numerous governments and credit marketers with the financial assessment of the government’s financial operations. Major distressed

client work has included: Stockton, CA (creditor representation); City of Harrisburg, PA; Jefferson County, AL; City of Detroit; and Detroit Public Schools

– Served as the Interim Director of Policy & Budget for the South Carolina Department of Health and Human Services and the Interim Executive Budget Director

for Detroit Public Schools addressing deficit elimination plans, financial forecasting and organizational improvement strategies.

Before A&M, Nancy worked 20+ years in key financial officer positions within state and local government. She led major financial transformation,

process and internal control improvements, budget redesign initiatives and fiscal accountability plans. These efforts achieved the GFOA’s

Certification of Achievement in Financial Reporting, the Distinguished Budget Awards Program, and the Excellence in Budgeting and Financial

Planning and Management Service Awards.

EDUCATION AND CERTIFICATIONS– BA in Business Administration, Adrian College

– MPA, University of Kansas

– Emergency Manager Certificate, Michigan State University

17

Sheena Gordon

Director


Sheena Gordon has 10+ years of financial and data analysis experience across the private and public sectors. She specializes in leveraging her

analytical, budgeting and forecasting experience to positively impact an organization’s financial and strategic goals.

Sheena’s efficiency review and advisory assignments at A&M have included:– Led a financial assessment of Ramapo, NY to review current policies and financial management processes. Ms. Gordon and her team developed process and

policy improvement recommendations across financial management, internal controls, continuing disclosure, and cash management.

– Reviewed key processes across various agencies in the State of Wyoming to identify opportunities to improve efficiency in operations and drive cost savings to

reduce spending and additional revenues. Supported implementation of these recommendations by helping to lead the Program Management Office is Phase

to of the engagement and leading an organizational line of service review to identify, quantify, and prioritize new approaches that would pinpoint opportunities to

reduce costs and operate more efficiently, or to reduce overlapping or obsolete programs.

– Analyzed procurement processes and expenditure data to develop recommendations intended to improve the State of Rhode Island’s contracting practices, as

well as quantifying the associated savings. She also conducted benchmarking analyses across key metrics for the Departments of Transportation and Health &

Human Services to identify efficiency opportunities.

– Worked with the Howard University Real Estate team to identify and interview potential investors to determine financing strategies to fund a complex, multi-

phase capital project. Partnered with the university to create real estate development and operations models for education, retail, residential and parking

projects.

– Prepared financial models and other analysis to support the Commonwealth of Pennsylvania Office of Long Term Living’s (OLTL) Long Term Care and

Medicaid Waiver Programs’ $6B Budget. Trained the OLTL Finance staff on the modeling and analysis required to perform future reporting and budget

updates.

Prior to joining A&M, Sheena served as a Budget Analyst for the New York City Mayor’s Office of Management & Budget, where she provided

recommendations on funding requests from criminal justice and consumer protection agencies. In addition, she worked with various stakeholders to

manage the financial plan and programmatic concerns for new construction and major renovation of the City’s courthouses as a part of the Court

Facilities Capital Improvement Program. She was also the Assistant Vice President of Municipal Research at Roosevelt & Cross, Inc., where she

developed research reports for debt issuers in the Northeast and additional content on issues in the municipal bond marketplace.

EDUCATION AND CERTIFICATIONS– BA in Economics, Barnard College – Columbia University

– MBA, Columbia Business School

– Prosci® Certified Change Management Professional

18

Matt McCleary

Director


Matt McCleary has more than 18 years of relevant management experience in both the public and private sectors that pertains to the needs of the

Village of North Bay Village. He began his career as a Village Administrator where we worked closely with the Village Council, department heads

including Police, Public Works, and Building Safety as well as external consultants such as Village Attorney and Land Planning. In this role, he worked

diligently to establish trust and open communication with elected officials, staff, and external stakeholders. In the private sector, Matt has performed

duties as interim staff and has a long track record of working closely with elected officials, staff, and a wide range of third party stakeholders.

Notable Projects:

– City of Twentynine Palms, California - For this long-term engagement, Matt has provided a wide range of project management advisory and

implementation services for the City. Specifically, he has worked with the City Manager and City Council on market studies and community

outreach for an affordable housing and community center development as part of the City’s $20M downtown revitalization project. Over the years

of working with the City, Matt has also acted as Interim Community Development Director where he supervised staff and worked with the Planning

Commission on a variety of policy issues related to development issues facing the community.

– City of Dallas, Texas – Matt was part of a team that was selected to help evaluate the 7,200+ vehicles in the City’s fleet to identify inefficiencies

and analyze potential savings through vehicle count reductions and pooling across Departments. As part of the engagement, Matt led the

interviewing of department heads including Police, Fire, Public Works, and Sanitation to better understand current fleet conditions.

Prior to A&M:

– Matt managed AECOM’s southern regional economics practice where he worked on a variety of engagements focused on maximizing the value of

publicly owned real estate. Additionally, Matt managed a team focused on tax increment financing that worked closely with the new City Council,

new department heads and legal counsel shortly after the well-publicized scandal of the City of Bell, California. Trust and communication amongst

staff and the outside world was severely damaged as a result of a variety of actions taken by previous staff and elected officials. While not acting

in a staffing capacity, Matt had to ensure integrity, honesty and professionalism while working in community suffering from trust issue and a variety

of financial challenges.

AREAS OF EXPERTISE

– Project management, stakeholder engagement, economic / community / real estate development and the maximization of public land values.

CERTIFICATIONS / EDUCATION

– MA in Political Science, Illinois State University

– BA in Business Administration, University of Northern Iowa

– Certified Project Management Professional (PMP)

AFFILIATIONS

– Los Angeles Economic Development Corporation, Member of the Infrastructure Subcommittee

alvarez & marsal public sector services state & local ... · 18+ years in public and...

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