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HomeMy WebLinkAboutAgreement_General_1/9/2020_Raftelis Financial Consultants, Inc.VILLAGE OF TEQUESTA AGREEMENT FOR WATER UTILITY REVENUE SUFFICIENCY AND RATE ADEQUACY STUDY THIS AGREEMENT FOR SERVICES RELATED TO A UTILITY REVENUE SUFFICIENCY AND RATE ADEQUACY STUDY is entered into and effective this q day of January, 2020 (the "Effective Date"), by and between the VILLAGE OF TEQUESTA, a Florida municipal corporation with offices located at 345 Tequesta Drive, Tequesta, Florida 33469-0273, organized and existing in accordance with the laws of the State of Florida, hereinafter the "Village"; and RAFTELIS FINANCIAL CONSULTANTS, INC., a foreign corporation authorized to do business in the State of Florida, with local offices at 341 N. Maitland Avenue, Suite 300, Maitland, Florida 32751, hereinafter the "Contractor" and collectively with the Village, the "Parties". WITNESSETH The Village and the Contractor, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by both Parties, hereby agree as follows: 1. SCOPE OF SERVICES: The Parties hereby agree to enter into this Agreement whereby the Contractor shall provide utility rate and financial consulting services on behalf of the Village's water utility enterprise fund pursuant to all applicable statutory, licensing and Village code requirements. The Parties agree to enter into this Agreement pursuant to the December 17, 2019 Proposal, which is hereby fully incorporated into this Agreement and attached hereto as Exhibit "A". 2. COMPENSATION: In consideration for the above Scope of Services, pricing shall be pursuant to the prices provided in the rates schedule found in Exhibit "A". In consideration for the above Scope of Services and pursuant to Exhibit "A," the Town shall pay the Contractor a total amount not to exceed thirty-five thousand nine hundred and fifty dollars ($35,950.00). 3. TERM: TERMINATION: NOTICE: Pursuant to Exhibit "A," this Agreement shall commence upon the Effective Date and continue until the completion of the aforementioned Utility Revenue Sufficiency and Rate Adequacy Study, or until and unless either party terminates this Agreement. This Agreement may be terminated by either party upon [thirty (30)] days written Page 1 of 5 notice to the other party. Notice shall be considered sufficient when sent by certified mail or hand delivered to the Parties during regular business hours at the following addresses: Village Contractor Village of Tequesta Raftelis Financial Consultants, Inc. 345 Tequesta Drive 341 N. Maitland Avenue, Suite 300 Tequesta, FL 33469-0273 Maitland, FL 32751 Attn: Matthew Hammond, Attn: Robert J. Ori, Utilities Director Executive Vice President 4. INSURANCE: The Contractor shall provide proof of workman's compensation insurance and liability insurance in such amounts as deemed sufficient by the Village and shall name the Village as an "additional insured" on the liability portion of the insurance policy. 5. INDEMNIFICATION: The Contractor shall at all times indemnify, defend and hold harmless the Village, its agents, servants, and employees, from and against any claim, demand or cause of action of whatsoever kind or nature, arising out of error, omission, negligent act, conduct, or misconduct of the Contractor, its agents, servants, or employees in the performance of services under this Agreement. Nothing contained in this provision shall be construed or interpreted as consent by the Village to be sued, nor as a waiver of sovereign immunity beyond the waiver provided in Section 768.28, Florida Statutes. 6. PUBLIC ENTITIES CRIMES ACT: As provided in Sections 287.132-133, Florida Statutes, by entering into this Agreement or performing any work in furtherance hereof, the Contractor certifies that it, its affiliates, suppliers, subcontractors and consultants who will perform hereunder, have not been placed on the convicted vendor list maintained by the State of Florida Department of Management Services within thirty-six (36) months immediately preceding the date hereof. This notice is required by Section 287.133(3)(a), Florida Statutes. 7. INDEPENDENT CONTRACTOR: It is specifically understood that the Contractor is an independent contractor and not an employee of the Village. Both the Village and the Contractor agree that this Agreement is not a contract for employment and that no relationship of employee —employer or principal —agent is or shall be created hereby, nor shall hereafter exist by reason of the performance of the services herein provided. 8. INSPECTOR GENERAL: Pursuant to Article XII of the Palm Beach County Charter, the Office of the Inspector General has jurisdiction to investigate municipal matters, Page 2 of 5 review and audit municipal contracts and other transactions, and make reports and recommendations to municipal governing bodies based on such audits, reviews, or investigations. All parties doing business with the Village shall fully cooperate with the inspector general in the exercise of the inspector general's functions, authority, and power. The inspector general has the power to take sworn statements, require the production of records, and to audit, monitor, investigate and inspect the activities of the Village, as well as contractors and lobbyists of the Village in order to detect, deter, prevent, and eradicate fraud, waste, mismanagement, misconduct, and abuses. 9. ATTORNEY'S FEES: In the event a dispute arises concerning this Agreement, the prevailing party shall be awarded attorney's fees, including fees on appeal. 10. FORCE MAJEURE: The Contractor shall not be considered in default by reason of any failure in performance under this Agreement if such failure arises out of causes reasonably beyond the control of the Contractor or its subcontractors and without their fault or negligence. Such causes include, but are not limited to: acts of God; acts of war; natural or public health emergencies; labor disputes; freight embargoes; and abnormally severe and unusual weather conditions. 11. CHOICE OF LAW; VENUE: This Agreement shall be governed and construed In accordance with the laws of the State of Florida, and venue shall be in Palm Beach County should any dispute arise with regard to this Agreement. 12. AMENDMENTS AND ASSIGNMENTS: This Agreement, all Exhibits attached hereto, and required insurance certificates constitute the entire Agreement between both parties; no modifications shall be made to this Agreement unless in writing, agreed to by both parties, and attached hereto as an addendum to this Agreement. The Contractor shall not transfer or assign the provision of services called for in this Agreement without prior written consent of the Village. 13. PUBLIC RECORDS: In accordance with Section 119.0701, Florida Statutes, the Contractor must keep and maintain this Agreement and any other records associated therewith and that are associated with the performance of the work described in the Proposal or Bid. Upon request from the Village's custodian of public records, the Contractor must provide the Village with copies of requested records, or allow such records to be inspected or copied, within a reasonable time in accordance with access and cost requirements of Chapter 119, Florida Statutes. A Contractor who fails to provide the public records to the Village, or fails to make them Page 3 of 5 available for inspection or copying, within a reasonable time may be subject to attorney's fees and costs pursuant to Section 119.0701, Florida Statutes, and other penalties under Section 119.10, Florida Statutes. Further, the Contractor shall ensure that any exempt or confidential records associated with this Agreement or associated with the provision of services contemplated herein are not disclosed except as authorized by law for the duration of the Agreement term, and following completion of the Agreement if the Contractor does not transfer the records to the Village. Finally, upon completion of the Agreement, the Contractor shall transfer, at no cost to the Village, all public records in possession of the Contractor, or keep and maintain public records required by the Village. If the Contractor transfers all public records to the Village upon completion of the Agreement, the Contractor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Contractor keeps and maintains public records upon completion of the Agreement, the Contractor shall meet all applicable requirements for retaining public records. Records that are stored electronically must be provided to the Village, upon request from the Village's custodian of public records, in a format that is compatible with the Village's information technology systems. IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, PLEASE CONTACT THE VILLAGE CLERK, RECORDS CUSTODIAN FOR THE VILLAGE, AT (561) 768-0685, OR AT lmmilliams004eguesta.orOR AT 345 TEQUESTA DRIVE, TEQUESTA, FLORIDA 33469. 14. HEADINGS: The headings contained in this Agreement are provided for convenience only and shall not be considered in construing, interpreting or enforcing this Agreement. 15. SEVERABILITY: The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability or any other provision of this Agreement and this Agreement shall be construed and enforced in all respects as if the invalid or unenforceable provision is not contained herein. 16. WAIVER: No waiver by the Village of any provision of this Agreement shall be Page 4 of 5 deemed to be a waiver of any other provisions hereof or of any subsequent breach by the Contractor of the same, or any other provision or the enforcement hereof. The Village's consent to or approval of any act requiring the Village's consent or approval of any act by the Contractor shall not be deemed to render unnecessary the obtaining of the Village's consent to or approval of any subsequent consent or approval of, whether or not similar to the act so consented or approved. 17. ENTIRE AGREEMENT: This five (5) page Agreement constitutes the entire agreement between the parties; no modification shall be made to this Agreement unless such modification is in writing, agreed to by both parties and attached hereto as an addendum to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. WITNESSES: RAFTELIS FINANCIAL CONSULTANTS, INC. /, crG�,r Cwt-. By: Robert J. O Executive Vice President (Corporate Seal) VILLAGE OF TEQUESTA 444, ATTEST: :y: Abi .it Bren'an,Mayo O.F.. Q Lori McWilliams, MMC `' :.A% Village Clerk >t SEAL g 'INCORPORATED: I Page 5 of 5 EXHIBIT A Pir 14 PART / ' December 17, 2019 R RAFTELIS Mr. Matthew Hammond, P.E. Utility Director Village of Tequesta 345 Tequesta Drive Tequesta, FL 33469-0273 Subject: Water Utility Revenue Sufficiency and Rate Adequacy Study Dear Matt: As requested and based on our conversations with the Village of Tequesta (the "Village"), we have prepared the following proposal to provide utility rate and financial consulting services (the "Proposal") on behalf of the Village's water utility enterprise fund (the "Water System"). The services to be provided by Raftelis Financial Consultants, Inc. (formerly Public Resources Management Group, Inc.) includes the preparation of a financial forecast to evaluate the current near -term fiscal position of such system, the development of a prospective financing plan to fund the Water System capital improvement program and projected expenditure requirements, and the evaluation of the overall sufficiency of the rate revenues to meet the Village objectives for sustained utility service (the "Project"). Based on our discussions, the Project would primarily consist of preparing a ten -fiscal year financial forecast (current budget year plus an additional nine fiscal years) of the service needs and expenditures for the Water System, developing a financial management benchmark analysis as part financial model to evaluate the financial position of the Water System, the development of the capital funding plan, and the determining the need for future user rate adjustments (if any) as appropriate in order to meet the overall financial needs and capital funding requirements of the Water System. With respect to the performance of Project, Raftelis will rely on the Village and it's consulting engineers for the Water System to provide or evaluate the capital improvement needs of such system or any changes to the cost of operations that may occur as a result of the implementation of the capital improvements, increased regulations, or other factors. Such reliance, if any, will be separate and apart from this Proposal to provide utility and rate consulting services. Based on our understanding of the Project, Raftelis proposes the following: PROJECT TEAM AND BILLING RATES With respect to the performance of the Project, Mr. Robert J. Ori will be the principal -in -charge for the Project and will serve as primary contact between the Village and Raftelis. Raftelis may utilize other employees or associates during the course of the Project as needed. Please see Attachment A for a summary of the personnel by title and billing rates for Raftelis staff that may be utilized during this engagement which is made part of this Proposal. SCOPE OF SERVICES The scope of services to be performed by Raftelis is included in Attachment B, which is made a part of this Proposal. 341 6L ra A Venwe, Safte FL 327SI www.raftelis.com Mr. Matthew Hammond, P.E. December 17, 2019 Page 2 COMPENSATION AND BILLING Based on the scope of services as summarized in Attachment B, we propose to establish a contract budget to perform the Project on behalf of the Village in the amount of $35,950. A cost estimate is shown in Attachment C, which is made a part of this Proposal. This contract budget amount includes the direct cost of personnel anticipated to be assigned to conduct the various tasks of the Project by Raftelis as well as an allowance for other direct costs such as travel, telephone, delivery charges, and subconsulting expenses, if any. To the extent that Raftelis determines that a portion of the Project would need to be performed by a subconsultant, Raftelis would notify the Village in writing for approval prior to the assignment of any Project responsibilities to such subconsultant by Raftelis. The costs incurred by Raftelis for such other direct costs, if any, will be billed based on the actual cost to provide service. It is proposed that Raftelis would bill monthly for services relative to this engagement based on the sum of: i) the hourly amount of time spent by the Project team members; and ii) the other direct costs incurred to provide the financial consulting services; and iii) the subconsulting expenses incurred by Raftelis, if any, as required to assist in Project completion, as adjusted for administrative costs per Attachment A. It should be noted that the proposed contract budget would be billed on an hourly basis predicated on the actual work effort performed by Raftelis and not on a lump -sum basis. To the extent that the Project was completed at a cost less than the contract budget, Raftelis would not invoice the Village for any amounts remaining (unbilled) on such contract except for the provision of any additional services which the Village may request from Raftelis, as mutually agreed between all the parties. PROJECT SCHEDULE Upon notification to proceed as provided by the Village to Raftelis by no later than January 1, 2020, Raftelis would complete Utility Revenue Sufficiency and Rate Adequacy Study such that any proposed rates would become effective on October 1, 2020. This rate implementation date recognizes an initial completion date of the analyses by July 15, 2020 in order to: i) assist the Village and be consistent with the Water System budget process for the Fiscal Year 2021; ii) allow for notification to the Village utility customers of any potential change in rates as required by Florida Statutes, Chapter 180; iii) provide sufficient time to present the proposed rates to the Village Council at a public workshop / hearing by September 1, 2020; and iv) to allow Village staff to adjust its utility billing system to allow for the billing of the proposed rates on the effective date of service, the date of which has yet to be determined. The completion of the analysis would be subject to the availability of information provided to Raftelis from the Village that would be necessary to conduct the rate analysis and the ultimate implementation requirements of the Village. DISCLOSURE As a registered Municipal Advisor under the Dodd -Frank Act, Raftelis is required to inform our clients of any existing or potential conflicts of interest that may be relevant to any proposed scope of services that may include providing "advice" as that term is defined in the Dodd -Frank Act. As of the date of this engagement letter, no conflicts of interest are known to exist. Y_AD01056\2020 Pend'g Water Util Rates\Corresp\Contr-Re1'd\2020 Rate Proposal_Tequesta_12 2019.docx Mr. Matthew Hammond, P.E. December 17, 2019 Page 3 Under the Dodd -Frank Act the definition of "advice" includes, providing any opinion, information or assumptions related to the size, timing and terms of possible future debt issues or borrowing. This type of information may be integrated into the capital and financial planning components of a rate model update. This definition is applicable regardless of whether this information is developed and used solely for planning and decision -making purposes. For the services addressed in the scope of work identified for this engagement, any information that is developed by Raftelis that falls under this definition of municipal advice is not intended to represent a recommendation that the City should issue debt based on the terms and assumptions used to develop the financial plan or forecast, or that the City will, in fact, be able to issue debt under the exact terms and conditions assumed and used to develop the financial plan or forecast. The information developed as part of this rate model update, including any related municipal advice, is intended only to provide information useful in evaluating the potential impact on the utility and future rate adjustments of one potential course of action for the City. If the City decides at some future date to issue debt, then at that time the City will need to engage an independent, registered Financial Advisor to assist in evaluating the availability of different types of debt, and the specific terms and conditions for issuing debt, which will be affected by market conditions and the City's credit rating at the time of issuance. At that time, as a registered Municipal Advisor, RFC can also provide additional assistance related to a specific bond or debt issue, such as preparing a bond feasibility report or financial forecast for inclusion in bond documents, without requiring additional oversight or supervision by the Financial Advisor. By signing this engagement letter indicating its approval and acceptance of the of the proposed scope of work and fees, the City is also explicitly acknowledging that Raftelis has provided the necessary disclosures addressing conflicts of interest and any limitations on the scope of Municipal Advisory services to be provided by Raftelis as part of this engagement. The Municipal Securities Rulemaking Board (MSRB) provides significant protections for municipal entities and obligated persons that are clients of a municipal advisor. To understand the protections provided and how to file a complaint with an appropriate regulatory authority, visit the MSRB web site at www.msrb.org. INSURANCE PROVISIONS AND STANDARD TERMS AND CONDITIONS Included on Attachment D is a general insurance certificate for Raftelis that summarizes the levels of insurance coverage carried by Raftelis for consideration by the Village. As a condition of approval of this Proposal, Raftelis will have our insurance carrier forward an insurance certificate to Village's attention at the coverage amounts as stated on the general insurance certificate attached herein. (Remainder of page intentionally left blank) K:\DC\1056\2020 Pend'g Water Util Rates\Corresp\Contr-Re1'd\2020 Rate Proposa(_Tcquesta_12 2019.docx Mr. Matthew Hammond, P.E. December 17, 2019 Page 4 If this Proposal is acceptable to the Village, please prepare the necessary contractual documents or agreement between our two parties; the receipt of a signed agreement will serve as our notice to proceed on the Project. We appreciate the opportunity to assist the Village on this Project and to continue providing utility rate consulting services to the Village; we look forward to working with both the Village and you in the near future. Respectfully submitted, Raftelis Financial Consultants, Inc. Robert J. Ori Executive Vice President RJO / dlc Attachments KADM1056\2020 Pend'g Water Util Rates\Corresp\Contr-Re1'd\2020 Rate Proposal_Tequesta_12 2019.docx ATTACIMONT A RAFTELIS FINANCIAL CONSULTANTS, INC. SCHEDULE OF DIRECT LABOR HOURLY RATES AND STANDARD COST RATES DIRECT LABOR HOURLY RATES Project Team Title Principal Associate Managing Consultant Supervising Consultant Senior Consultant Rate Consultant Consultant Senior Rate Analyst Rate Analyst Analyst Assistant Analyst Administrative Direct Labor Hourly Rates [*] $210.00 $180.00 $165.00 $145.00 $130.00 $120.00 $110.00 $100.00 $ 90.00 $ 80.00 $ 70.00 $ 60.00 [*] Direct labor hourly rates effective twelve months after the date of execution of the Proposal; rates will be adjusted by not more than the net percentage change (but not less than 0%) in the Consumer Price Index — Urban Consumers per annum (rounded to the nearest dollar) or as mutually agreed between parties for invoices rendered after each anniversary date of each year thereafter until project completion or termination of the Proposal between the parties. STANDARD COST RATES Expense Description Mileage Allowance — Personal Car Use Only Reproduction (Black and White) (In -House) Reproduction (Color) (In -House) Reproduction (Contracted) Computer Time Telephone Charges Delivery Charges Lodging / Other Travel Costs Meals Subconsultant Services Other Costs for Services Rendered Standard Rates [*] IRS Standard Mileage Rate $0.05 per Page $0.25 per Page Actual Cost $0.00 per Hour Actual Cost Actual Cost Actual Cost Not -to -Exceed per Raftelis Employee: $8.00 — Breakfast $12.00 — Lunch $25.00 — Dinner Actual Cost plus 5.0% Actual Cost [*] Standard cost rates effective twelve months after the date of execution of the Proposal; where applicable, rates will be adjusted by not more than the net percentage change (but not less than 0%) in the Consumer Price Index — Urban Consumers per annum (rounded to the nearest dollar) or as mutually agreed between parties for invoices rendered after each anniversary date of each year thereafter until project completion or termination of the Proposal between the parties. Any Standard Rate. adopted by policy by Client will be substituted for the rates shown above. Y-ADC11056\2020 Pend'g Water Uul Rates\Cortesp\Contr-Re1'd\2020 Rate Proposal_Tequesta_12 2019.docx A-1 ATTACIIMENT B RAFTELIS FINANCIAL CONSULTANTS, INC. UTILITY REVENUE SUFFICIENCY AND RATE ADEQUACY STUDY SCOPE OF SERVICES The scope of services to be performed by Raftelis associated with the development of at utility revenue sufficiency and rate adequacy study for the Village's water utility enterprise fund (the "Water System") will include the following tasks: Task 1— Data Acquisition and Review: In order to perform the study on a timely basis, it will be necessary to collect as much information as possible at the beginning of the study process in order to complete the financial forecast. A detailed data request will be prepared by Raftelis to assist the Village staff with compiling specific information about the operation of the System. The information be compiled and provided by the Village will include, but not be limited to, budgetary, financial and billing data, customer usage profiles, existing and future plant in-service requirements to meet capacity needs, and historical system demand requirements. Information to be requested from the Village will include, but not be limited to: 1. Customer statistical information as it relates to the service area needs by specific service area (franchise) component; 2. Bill frequency information detailed customer usage relationships (number of bills rendered per water use parameter) required to develop a detailed revenue model for rate estimation purposes; 3. Information regarding the operating expenses of the Water System; 4. Information regarding the fund's availability (cash balances) by type of fund; 5. Information regarding potential changes in service area needs due to the expiration of and franchise agreements for service to local governments or jurisdictions as well as extension of service to other areas; 6. Capital improvement program as estimated by the Village and its consulting engineers, including any update to the capital needs identified in the Water Treatment Plant and Distribution System Facility Assessment report previously prepared by ARCADIS (the "Assessment Report") and projects that have been approved in prior years that are still on -going (i.e., construction -work -in - progress); and 7. Other relevant information (e.g., consumer price index for price index rate adjustments, current utility rate resolution, most recent Comprehensive Annual Financial Reports and other financial records and reports, Franchise and Service Agreements with other local governments, etc.) as deemed necessary by Raftelis to prepare the financial evaluation of the System. Raftelis will prepare a date request for response by the Village to initiate the data compilation efforts and will also attend a kick-off / data review meeting with both parties to evaluate trends of the Water System as well as review the compiled data necessary for project completion. Task 2 — Customer Statistical and System Demand Forecast: Based on an up -to -five-year historical trend of customer statistics by primary service area and / or franchise, Raftelis will prepare a ten-year customer KAD01056\2020 Pend'g Water Udl Rates\Corresp\Contr-Re1'd\2020 Rate Pmposal_Tequesta_12 2019.docx and finished water demand forecast of the Water System. The Test Year for the forecast will be the Fiscal Year 2020 and the forecast period will include the projection for the Fiscal Years ending September 30, 2020 through 2028 (collectively, the Test Year and the subsequent nine-year forecast is referred to as "Forecast Period"). Raftelis will work with the Village to identify potential growth or changes in water demands / use in the existing Water System service area, changes in the service area due to incremental utility extensions required of the Water System, as well as reduction in service area due the expiration of any franchise and other service agreements that may occur during the Forecast Period. Task 3 — Development of Revenue Projections from Existing Rates: This task involves the development of projections of utility rate revenues for the Forecast Period from existing rates recognizing: i) the results of the customer and sales forecast performed in Task 2; and ii) the Village's existing rates for service, including the continued application of the price index rate adjustment as provided in the Village's rate resolution. Additionally, this task will involve a rate -revenue "reasonableness" test (reconcile model results to reported amounts on Village financial statements) to ensure that the revenue model and billing determinants are reasonable relative to the modeling process. Raftelis will prepare a forecast of the utility rate revenues from existing rates based on the customer forecast delineated above, recognizing increases rates due to the application of the annual price index rate adjustment as currently allowed by utility ordinance. The customer and corresponding revenue forecast will serve as the basis for the review of net margins and availability of funds associated with the overall fiscal evaluation of the Water System. This task will also involve the projection of other operating revenues, interest income earned on unrestricted fund balances as defined in the bond resolution / governing loan agreements for the utility system and revenues derived from other utility transactions (e.g., miscellaneous customer service charges). Task 4 — Development of Operating Expense Projections: This task involves the development of the estimated amount of operating expenses required to be funded from water rates for the Forecast Period. Raftelis will work with the Village to identify changes in utility operations that may result due to changes in service demographics, any revisions due to the implementation of the anticipated capital improvement program for the Village, or as a result of changes in regulations or operating practices by the Village which may affect the operations of the Water System. The Raftelis projection of Operating Expenses will be based on recent historical trends and changes in cost of providing service, estimates provided by the Village and its consulting engineers as it relates to ongoing operations, and changes in operation due to new regulations or the implementation of the capital improvement plan, and the recognition of inflationary allowances for the general cost of operations. The operating expense analysis will be performed to identify the net revenue margins to the utility that are critical in meeting the debt compliance requirements of the Water System as well as identification of fund availability for repayment of existing and any future debt and capital funding. Finally, other operating expenses such as inter -fund transfers, administrative allocations, contingency reserves, insurance needs, and other expenses will be evaluated to ensure that the full recovery of costs are reflected in the rate sufficiency analysis. Task 5 — Capital Improvement and Funding Analysis: This task involves a detailed review of the Village's current budget and subsequent five-year or applicable capital improvement program and other engineering planning documents such as the Assessment Report, and the performance of a funding analysis to identify available sources of funds for financing of the capital improvement program and the estimated impact on utility rate revenues associated with the capital funding program for the Forecast Period. This task will include the development of the estimated fund balance by individual fund / account and the development of a flow of funds analysis for liquidity evaluation purposes. Raftelis will work with the Village to develop a capital plan that is fully funded yet meets the overall needs of the Village from an affordability basis. Task 6 — Other Revenue Requirement Identification and Management Dashboard: In order to meet the financial obligations of the Village's Water System, Raftelis will review the financial aspects of the Village's utility systems in order to potentially recognize other revenue requirements or funding requirements that may need to be allocated or included in the rate analysis and in the development of the financial forecast K\DC\1056\2020 Pend'g Water Util Rates\Corresp\Contr-Rel'd\2020 Rate Proposal_Tequesta_12 2019.docx model. This task will include assistance in the development of fiscal policies in terms of working capital maintenance, the funding of capital re -investment for long-term planning needs, the funding of other departmental capital or maintenance reserves for items such as vehicles and equipment, and the recognition of any other transfer requirements that may be associated with the utility system. As part of this task, Raftelis will develop a "management dashboard" to allow for the review of the financial position of the utility and the ability to perform sensitivity analyses in order to finalize the financial forecast. As part of this task, Raftelis will work with the Village to identify or update any fiscal policies and financial performance targets that will provide guidelines and support for the financial forecast and revenue sufficiency fiscal policies necessary to address the need for goals related to financial performance indicators, such as debt service coverage ratios and reserve fund levels which the Village may deem necessary. Task 7 — Compliance Analysis: This task will be conducted in order to satisfy the rate covenant requirements and the flow of fund requirements as defined in the governing bond resolution / loan documents that authorized the issuance of the outstanding utility system revenue bonds and System indebtedness. The compliance analyses will be performed for the Forecast Period to maintain the financial integrity of the utility system. Task S — Rate Comparisons with Neighboring Utilities: As part of the evaluation of the sufficiency of rates, Raftelis will prepare a rate comparison of the Village's existing water rates with other neighboring utilities and illustrate the potential customer impact on any recommended rate adjustments associated with the development of the financial forecast and rate evaluation. Task 9 — Development of Net Revenue Requirements and Rate Impact Analyses and Staff Presentation: Based on the aforementioned tasks, Raftelis will prepare a summary of the total net revenue requirements of the Water System and the accompanying rate impact requirements for each fiscal year of the Forecast Period. A meeting with representatives of Raftelis and the Village staff will be held in order to present the results of the initial study findings and observations. Based on the results of the Village staff meeting, Raftelis will make modifications to the analysis prior to the presentation of the utility rate and financial evaluation to the Village Council. Task 10 — Report Preparation and Presentation: Raftelis will prepare a technical memorandum or report in support of the evaluation of the sufficiency of rates to meet the expenditure requirements of the Water System, which encompasses the financial plan and capital improvement plan funding analysis. The report prepared by Raftelis will include delineation of the assumptions and analysis used to prepare the financial forecast, the available or identified funding sources that meet the overall capital improvement program needs of the Water System, and any other aspects of the Water System (i.e., action plan items based on noted trends and the attainment of certain financial targets for the System). This task will also include a presentation of financial ratios and targets to illustrate the overall financial / fiscal position of the Water System in relation to the funding needs, especially as it pertains to the capital improvement program requirements. Task 11 — Meetinsm During the course of this project, it is anticipated that Raftelis will attend a total of three (3) on -site meetings with the Village and attend three WebEx® (teleconference) meetings to present ongoing results with Village staff and/or its consulting engineers. For the purposes of preparing the cost estimate included on Attachment C, it has been assumed that the on -site meetings would have a duration of six (6) hours per meeting, which includes travel and meeting preparation. The on -site meetings recognized in this scope of services include the following: K:\DC\1056\2020 Pend'g Water Util Rates\Corresp\Contr-Rel'd\2020 Rate Proposal_Tequesta_12 2019.doex i Description On -site Meetings Kick-Off/Data Review 1 Review of Financial Forecast with Administration 1 Presentation of Final Report to Village Council 1 Total Meetings The WebEx® meetings will represent assumption development, forecast review and project status meetings which are necessary to allow for the ongoing preparation of the utility rate evaluation and financial forecast. For the purposes of preparing the cost estimate included on Attachment C, it has been assumed that the WebEx® meetings would have a duration of two (2) hours per meeting. ADDITIONAL SERVICES During the course of this engagement, the Village may request that Raftelis perform additional services on behalf of the Water System. Although no additional services are anticipated by Raftelis at this time, any additional services as requested by the Village will be performed by Raftelis upon written authorization by the Village and as mutually agreed between the parties. Examples of additional services that could be performed by Raftelis may include, but not be limited to, the following activities. Attendance of additional meetings to what is contemplated in the scope of services. 2. Performance of a detailed utility cost of service allocation study to design proposed rates to meet the financial requirements of the Water System. Development of a project or bond feasibility report associated with any financing activities (debt service issuance) necessary to fund the identified capital improvement program or attending discussions with credit rating agencies or other related parties associated with the possible sale of bonds. 4. Negotiations with third parties associated with franchise agreements, provisions for services, or other related activities. Performance of substantial changes in the financial forecast due to the receipt of inaccurate information as provided by the Village or due to delays in the Project that were not caused by Raftelis. Performance of any anticipated update to the overall financial forecast after substantial completion of such forecast at the request of the Village, including the preparation of additional financial forecast scenarios. (Remainder of page intentionally left blank) K\D01056\2020 Pend'g Water U[il Rates\Corresp\Contr-Re1'd\2020 Rate Proposal_Tequesta_12 2019.docx MA Attachment C Village of Tequesta, Florida Preliminary Job Cost Estimate for Utility Revenue Sufficiency and Rate Adequacy Study Page 1 of 1 Line Task Supervising Senior Rate Clerical No. Activity Reference Principal Consultant Consultant Consultant Analyst Analyst & Admin. Totals 1 Project Billing Rates ($/Hr.) $210.00 $145.00 $130.00 $110.00 $90.00 $80.00 $60.00 - 2 Data Acquisition and Review 1 1 6 - - 4 - 4 15 Customer Statistical and System Demand Forecast 3 Historical Customer and Financial Compilation 2 1 5 - - 24 - 30 4 Customer and Sales Forecast 2 1 5 - - 14 - 20 5 Rate Revenue Forecast 3 1 4 - - 10 - - 15 Revenue Requirements 6 Development of Operating Expense Projections 4 2 10 - - 20 - - 32 7 Capital Improvement and Funding Analysis 5 2 10 - - 12 - - 24 8 Other Revenue Requirement Identification & Management Dashboard 6 2 8 - - 14 - - 24 9 Compliance Analysis 7 2 6 - - 2 - - 10 10 Rate Comparison with Neighboring Utilities 8 1 - 4 - 5 11 Development of Net Revenue Requirements and Rate Impact Analysis 9 2 4 - 2 - - 8 12 Report Preparation and Presentation 10 8 18 - - 6 - 12 44 13 On -site Meetings (3 meetings) 11 18 18 - - - 4 40 14 WebEx Meetings (2 meetings) 11 - 6 - - 6 - - 12 15 Project Management Allowance All 2 - - - - 2 4 16 Total Project Hours 42 101 114 4 22 283 17 Total Direct Labor Cost - All Tasks $ 8,820 $ 14,645 $ $ - $ 10,260 $ 320 $ 1,320 $ 35,365 18 Average Hourly Billing Rate $124.96 Allowance for Other Direct Costs 19 Telephone Allowance $ 50 20 Travel (3 Trips x 325 miles x $.545/ Mile) 531 21 Miscellaneous Expense Allowance 4 22 Total Allowance for Other Direct Costs $ 585 23 Total Estimated Project Cost $35,950 Client#: 1722483 RAFTEFIN ACORD. CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DDfYYYY) 1/18/2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME; Linda Rolfe Cameron M Harris 8r Co, LLC PHONE 980-265-5804 FAX A/C No Et): A/C, No): Div USI Ins ADDRESS: linda.rolfe@usi.com 6100 Fairview Road Ste 1400 Charlotte, NC 28210 INSURER(S) AFFORDING COVERAGE NAIC # INSURER A : National Fire Insurance Co. of Hartford 20478 INSURED Raftelis Financial Consultants, Inc. INSURER B ; Continental Insurence Company 35289 227 West Trade Street, Ste. 1400 INSURER C Charlotte, NC 28202 INSURER D : INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: REVISION NUMBER -- THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE .MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INS TYPE OF INSURANCE ADDL INSR SUBR WVD POLICY NUMBER POLICY EFF MM/DD POLICY EXP MM/DDIYYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE FxIOCCUR 607000011 1/21/2019 01/21/2020 EACHOCCURRENCE$1,000,000 PREMISES Ea occu nce $ SOO,000 MED EXP (Any one person) $15,000 PERSONAL& ADV INJURY $1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: POLICY E/° LOC OTHER: GENERAL AGGREGATE $2,000,000 PRODUCTS - COMP/OP AGG $2,000,000 $ A AUTOMOBILE LIABILITY ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTOS HIRED NON -OWNED AUTOS ONLY Ix AUTOS ONLY 6076000025 1/21/2019 01/21/202 COMBINED SINGLE LIMIT Ea accident 1,000,000 BODILY INJURY (Per person) $ X N IJURY Per accident BODILY ( ) $ PROPERTY DAMAGE Per accident $ B UMBRELLA LIAB EXCESS LIAR X OCCUR CLAIMS -MADE 6076000039 1/21/2019 01/21/202 EACH OCCURRENCE $5 000 000 AGGREGATE s5,000,000 DED I I RETENTION $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? F_N] (Mandatory In NH) If yes, describe under DESCRIPTION OF OPERATIONS below N / A 6076000008 607600042-CA 1/21/2019 1/21/2019 01/21/2020 01/21/2020 X PER OTH- ST E.L. EACH ACCIDENT $1,000000 E.L. DISEASE - EA EMPLOYEE $1,000,000 E.L. DISEASE - POLICY LIMIT $1,000,000 B Prof. Liability 652071235 1/21/2019 01/21/202 $5,000,000 Occurrence $5,000,00OAggregate DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space is required) Raftelis Financial Consultants, Inc. 227 W. Trade Street Suite 1400 Charlotte, NC 28202-0000 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 25 (2016103) 1 of 1 #S24791132/M24790795 ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD RKMZP