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HomeMy WebLinkAboutDocumentation_Regular_Tab 21_10/13/2022Agenda Item #21 0 Regular Council STAFF MEMO -D Meeting: Regular Council -Oct 13 2022 Staff Contact: Marjorie Craig Department: Utilities Consider Approval for Raftelis Financial Consultants Water Utility Financial Forecast and Capital Recovery Charge Update Study 4RY: The Utilities Department requests approval of a purchase requisition for $35,750, to Raftelis Financial Consultants (RFC) to update the Water Enterprise and Financial Forecast and Capital Recovery Study to recalibrate the baseline rate to reflect current economic conditions and include a 20-year CIP projection. The purchase falls under the Sole Source provision of the Village's approved "Purchasing Directives and Procedures," which provides that the Village may acquire items that for all practical purposes, can only be obtained from a single vendor. The services required from RFC leverage the significant institutional knowledge that RFC has of the Villages' utility finances and existing financial models over the last 20 years or more, which cannot be supplied by any other vendor. BACKGROUND: In 2019, RFC provided a proposal to conduct a 5-year Revenue Sufficiency & Rate Analysis Study (Rate Study) for the Water Enterprise Fund. This Rate Study performed an in depth analysis to ensure that rates and fees would be sufficient to properly manage the water utility system founded on the economic conditions at that time. Based on this Rate Study, a baseline rate was established and a five-year rate resolution was passed in April of 2021. In February of 2022, RFC was subsequently engaged to conduct a Water Enterprise Fund Financial Forecast and Capital Recovery Study to analyze options to fast track the AC water main replacement program (FFCR Update). Since that time, the availability of resources and cost of materials and resources has caused significant increases in construction costs, in some cases 30% or more than originally estimated, even escalating over the last few months. This is primarily due to the worldwide pandemic and war conditions, causing supply chain issues and contributing to current inflation. Sufficient funds are available in the Water Fund for this purchase; however, as this is an unanticipated purchase, a budget transfer of an additional $25,750 will be made to the GL #401-241-534.300 Other Contractual Services account, which currently has a balance of $10,000, from GL #401-411-633.632 Architect & Engineering account to cover the purchase. This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768- 0443. PROJECT NAME: Reftelis BUDGET: $35,750.00 ENCUMBERED: 0.00 Recovery Study Page 381 of 478 Agenda Item #21. Proposed: $35,750-00 PROJECTED TOTAL: $0.00 Projected Remaining: $0.00 Approve the Purchase Requisition for the Water Utility Financial Forecast and Capital Recovery Charge Update Study 22.0921.2023 Rate Proposal (Draft) revised Page 382 of 478 Agenda Item #21. RAFTELIS September 21, 2022 Ms. Marjorie G. Craig, P.E. Director,, Utilities Department 345 Tequesta Drive Village of Tequesta, FL 33469 Subject: Water Utility Financial Forecast and Capital Recovery Charge Update Study Dear Ms. Craig: Based on our conversations with the Village of Tequesta (the "Village") and as requested, we have prepared the following agreement to provide utility rate and financial consulting services (the "Agreement") on behalf of the Village's water utility enterprise fund (the "Water System"). The services to be provided by Raftells Financial Consultants, Inc. (Raftelis) includes the preparation of an update to the financial forecast previously prepared for the Water System during Fiscal Year 2022 to evaluate the current near -terra fiscal position of such Water System, the continued development of a prospective financing plan to fund the Water System water main replacement program using different capital recovery charge scenarios, 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 extending and updating the ten -fiscal year financial forecast (current budget year plus an additional nine fiscal years) model to encompass twenty years of projected service needs and expenditures for the Water System, updating the financial management benchmark analysis as part financial model to evaluate the financial position of the Water System, the development of the capital funding plan (including the development of a capital recovery charge to specifically fund the water main replacement program), and the determining the need for the maintenance of or ad ustments to the adopted water user rate adj ustment s (I f any in order to meet the overal I financ ial needs and capital funding requirements of the Water System. used 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. On will be the Technical Advisor for the Project and Mr. Matthew on will be the Project Manager for the PrQject; both will serve as primary contact between the Village and Raftells. Raftelis may utilize other employees or associates during 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 Agreement. 341 NORTH MAITLAND AVENUE SUITE 300 — MAITLAND, FL 32751 Tel: 407-628-2600• Fax: 407-628-26 10 Page 383 of 478 Agenda Item #21. Ms. Marjorie G. Craig., P.E. Village offequesta September 21, 2022 Page 2 SCOPE OF SERVICES The scope of serviccs to be performed by Raftelis is included in Attachment B, which is made a part of this Agreement. 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 $35,750 A cost estimate is shown in Attachment C, which is made. a part of this Agreement. 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 sub consulting expenses, if any. 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: 0 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 ill) the subconsulting expenses incurred by Raftells Project completm 1) '1 f any, as recurred to assist in Prjm ion, as adjusted for administrative costs per Attachment A. It should be noted that the proposed contract budget would be billed on an hourly ba si s 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 al-nounts remaining (unbilled) on such contract except for the provision of any additional services which the Village may request froin 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 October 15, 2022, Raftelis would complete Utility Financial Forecast and Capital Recovery Charge Update such that any proposed rate and capital cost recovery plan could be presented to Village Council in February 2023 for approval and in support of the potential adoption of revised rates associated with funding the water main replacement program and meeting the overall expenditure needs of the System.. This rate implementation date recognizes an initial completion date of the analyses by January 18, 2023, to i) allow for notification to the Village utility customers of any potential change in rates as required by Florida Statutes, Chapter 180; and 1i) provide sufficient time to present the proposed capital recovery charges to the V1 I [age Council at a public workshop / hearing by April 1, 2023. 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. Page 384 of 478 Agenda Item #21. Ms. Marjorie G. Craig, P.E. Village of Tequesta September 21, 2022 Page 3 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. 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 and financial forecast 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 Village should issue debt based on the ten-ns and assumptions used to develop the financial plan or forecast., or that the V1 I I age wi 11, 1 n fact, be A I e 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 Village. If the Village decides at some future date to issue debt., then at that time the Village 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 Village's credit rating at the time of issuance. At that time, as a registered Municipal Advisor, Raftelis 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 Village 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 provided and how to file a compla'nt w'th an appropr' protections provi I I iate regulatory authority, II v's't 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 Raft ells. As a condition of approval of this Agreement,, Raftelis will have our insurance carrier forward an insurance certificate to the Village. Page 385 of 478 Agenda Item #21. Ms. Marjorie G. Craig, P.E. V1 I lage of Tequesta September 21, 2022 Page 4 (Remainder of page intentionally left blank) Page 386 of 478 Agenda Item #21. Ms. Marjorie G. Craig, P.E. V1 I lage of Tequesta September 21, 2022 Page 5 We appreciate the opportunity to submit this Agreement to the Village to provide utility consulting services on behalf of the Village's Water System. We have enclosed two (2) copies of this Agreement for the Village's consideration and authorization. If this Agreement, including the cost estimate and scope of services, is acceptable to the Village, please execute both copies and return one to Raftells; the other copy is for the Village's files and records. Very truly yours, Raftelis Financial Consultants, Inc. Robert J. Orl Executive Vice President Title September 2 1, 201LIr- Date RJO/dlc Attachments ACCEPTED BY: Village of Tequesta, Florida Name Title Date Page 387 of 478 Agenda Item #21. ATTACHMENT A PUBLIC RESOURCES MANAGEMENT GROUP, INC. SCHEDULE OF DIRECT LABOR HOURLY RATES AND STANDARD COST RATES DIRECT LABOR HOURLY RATES Project Team Title Direct Labor Hourly Rates 1*1 Principal $250.00 Associate $210.00 Managing Cons-ultant S195.00 Principal Consultant $175.00 Supervising Consultant $155.00 Senior Consultant $135.00 Rate Consultant $125.00 Consultant $115.00 Senior Rate Analyst S105.00 Rate Analyst $90.00 Analyst $75.00 Assistant Analyst $60.00 Administrative $70.00 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 annurn (rounded to the nearest dollar) or as mutually agreed between parties for invoices rendered after each anniversary date of each year thereafter until prej ect completion or ten-ninat ton of the Proposal between the parties. STANDARD COST RATES Expense Description Standard Rates [*] Mileage Allowance — Personal Car Use Only IRS Standard Mileage Rate Reproduction (Black and White) (In -House) SO.05 per Page Reproduction (Color) (In -House) SO.25 per Page Reproduction (Contracted) Actual Cost Computer Time SO.00 per Hour Telephotie Charges Actual Cost Delivcry Charges Actual Cost Lodging/Other Travel Costs Actual. Cost Meals Not -to -Exceed per PRMG Employee: $8.00 — Breakfast Subconsultant Servic-es Other Costs for Services Rendered $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 ffian the nct percentage char (but not less than 0%) in the ConsuiiiQr 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 rettes shown above. A-1 Page 388 of 478 Agenda Item #21. ATTACHMENT B. RAFTELIS FINANCIAL CONSULTANTS, INC., UTILITY FINANCIAL FORECAST AND CAPITAL RECOVERY CHARGE UPDATE STUDY SCOPE OF SERVICES The scope of services to be performed by Raftelis associated with the development of an update to the Village's water utility enterprise fund (the "Water System") financial forecast and revenue sufficiency model to identify trends and to estimate if the approved rates are still sufficient to meet the needs of the Water System and to develop a capital recovery charge proposal to expedite the funding of the water main replacement program that has been identified by the Village and its consulting engineers in previous studies and master plans. The analysis. to be conducted on behalf of the Water System will be based on the work effort and financial model initially developed for the Water Utility Revenue Sufficiency and Rate Adequacy Study dated March 30, 2021 and as supplemented through the initial water main, replacement cost evaluation presented to the Village Council on August 1, 2022 (collectively, the " o Study") and will include the following tasks: Task I — Data Acquisition and Review-. To perform the study within the estimated schedule, it will be necessary to collect as much additional information as possible at the beginning of the study process in order to update and extend 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: is Year-to-date Customer statistical infon-nation as it relates to the service area needs by specific service area (franchise) component; 11 Updated (Fiscal Year 2022) 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-. iii. Year-to-date 2022, approved 2023 Budget, and other supplemental information regarding the operating expenses of the Water System; iv. Information regarding the availability of funds (cash. balances) by type of fund or account; V. Information regarding potential changes in service area needs due to the redevelopment of the service area as well as extension of service to other areas where applicable; Page 389 of 478 Agenda Item #21. V1, Capital improvernent program cost and construction tirning estimates as provided by the Village and its Cons kiltinq en2intiers , inc-Itidino a n v update to the projects that have been approved in prior years that are still on -going (i.e, cot isti,itetioii-work-j'n-progress)-, and vii. Other relevant inforination (e.g., consuiner price index for price index rate adjusti-neats, current utility rate resolution, tnetzt recent Comprehensive Annual Financial Reports and other financial records and reports, etc-) as deemed necc.s.sary by lea ftelis to prepare the fil rian ei! al eV a] LLall On 0 1" th e, S V.Si_ LeM 9K Raftelis w 111 prep arc a d at a request fo r response by the Vi 1 [age to initi ate the data comp] lat 1 on e ffbrt c. an d w 111 al so -at to n d a ki ek-o 11" / data rev i ew rn eeting w i th both part 1 it) eva] u Lit c tre rid -s t) f the Water Sy �t em as wc I I a� rev 1 Qw th e compi led data DL.Qcessary for proj-e-C, t ic oill P I cat 1011 Task 2 — CListoiner Statistical and System Deniand Forecast', Based on an up -to -five-year historical trend of customer- statistics by primary service area as provided by the Village, Raftelis ill prepare a twenty-year customer w ind fini�hcd water demand forec-ast of the Water System (repre senli,p, an extern s-iinn to the current financial l'oT)ecaca model ofan additional five years),- The Test Year for the forecast wil I be the Fiscai Year 2023 and the pro eefion period wil I cup rs, Ist of the Fi scar Years ending September 3 0, 2,02 3 through 2042 (col lectivrely. the Test Year and the su bsequent twenty-year fo rec ast is referred to as " Forecast ?eriod"). R a ftel is w i I I �, o r� w i th the V'Still L P W 'L� I L�J' S YStCM ill age to identify potential growth or changes in water demands /use in the CXI b Sere i cc area., changes in the service area due to inc rem enta I ut I I it extens tons requi red oft I to W ater System, as well a.ri any change in rier­%--itie area due any existing and 'sup , plemental 0ervitie agireeni-ents that may outstanding during the Forecast Period, Task 3 — Develomnent of Revenue Pro mections fro in Existire a Rates: This task involves the update of prof ections of uti lity rate revenues for the Force ast Period from existing rates recogn iz Ing: i) the rcc.ults of the customer and -s'ales forecast performed in, Task 2� and 11) the Village's existing and approved rate-.P, fi)r service, including the continued applicaLion ofthe price ind-ex rate adju.stment as pro vIdel in the village's rate resolutl()n 4:S appropru-11c- Adeli fionally, this task will involve. a rate -revenue "reasonableness" test (reconcile model results to reported amounts on the Village inost recently available financial statements) to ensure that the revenue model and billing determinants are rcasonable relative to the modeling process. lea ftelis will prepare a forecast of the utility rate revenues from existing rates based on the customer forecast delineated aboVe, irecognizing increases rates due to the application o19 the annual price index rate adju.s-itment a.s- , r cuiTently allowed by Utility Ordinance, The customer and coi­Tespotidiilgrevenue. forecast will servc as the b I ,srs r rlI. f rfor the irev 91ew of net margins and aVa1lab] . of & th the 11IJW1 use erali fiSCA evalu atio n o f the NV- titer S ystem. This task will also involve the projection of other opetating revel ILLC.�_ interest income earned on n' I loan agreement.�,- 11)r the unre.st cted f'LLnd hat an ties as de fil ned n the, bond re;svn I u t I on / govern 111 g utility System and revenues derived from othcr utility tray lsaction� 1,111scel lane us custom Qr service charges). Task 4 — Develo of pm in Exnse 'ections: This task involves the update of the Prol estimated amount of operating expenses required to be funded ftom water rate� for the Forecast Period- RAMP; will work with the Village it) identify changes, in utility opeT,,.,., I - I' .- 1. I'Ll May rcsLL]t 143. Page 390 of 478 Agenda Item #21. when, compared to the assumptions contained in the 2022 Study. The Raftelis projection of Operatiiig Lxpenses will consider recent historical trends and changes in cost of providing sevice, estimates provided by the Village as it relates to ongoing operations, and changes in operation duc to new rcgulations or the imp lemcntation of the capital improvomen t plan, and thL� rccognition of irillationary allowance� Or the den CTH cost ol'operatiori.s-'. The operating expense analysis Inc. performcd to Identify the ilict rcvt�iluc iii.argim,* to the utility that are critical in meeting JlQ dc'ht r I comp liance req ireinients of the Water System as well a Identification of fund avadalp i I its for repayinent of existing aiid aiiy future debt aid capital funding. Finally, other operat inc expenses such as inter -fund transfers, administrative allocations, contingency reserves, insurance needs, and other cxpenses will be evaluated to cits ure that the full recovery of costs are. reflected in the rate s U 11-i C i en ey analyst Task 5 — Capital Imuovement and Fund] il 2 An : This task involves a detailed review of the Village's ctirrent Fiscal Year 2023 budget and subsequent f6tirteen-year or applicable capital improvement procri-ain and other engineering planning documents, and the performance of a .L-- funding analvsis to 'Identify available you es of funds for financing of the capital improvement the eS-. 7 -et ori utilitv rate revenues associated w'th the cap1'tal fi.-Inding prograrn and I mated i mpa prograrn fOr the Forecast Period. This task will include the development ()f tile CStirnated fund r ' balance by Vidividual Rind / account and the development of -a flow of faTI rj I ySS fiends I for liqU idity evaluation ptirprases . Raftelis will work with the Village to develop a capital plan that is fully ftinded yet ineets the overall needs of the Village from an affordability basis. A.s a corn poiient ofthe capital I'Unding plaii and based. on the identil'ied WEILcr in,aiii replacement prograin needs and c on %st ru ct 1 il t 1 ni 111 R.--i t't e I 1;.F. wl 11 pTep-are up to three (3) capit4l overy chargc rate sc enarl os to het p exiled I t 1 th;� watei- in -a I n re -acern ent program o f the V1 I I age. Working With V i I I age staff, Ra Re I I s w I IL I c reate d i fferen t c ost re c overy �ra t e) options 'to present levels of f-Lindi tag utilizing a fixed capital recovery charge added to the inoath iy utility bill. The scenarios will focus on varying do I I ar a mounts and Erne frarne . j n wh 1 oh to complete the w. ater main replac ernent program at an expedited -rate. The scenai-io-s will then be included in a prey,entation it) villag�e COURCI-L Task 6 — Other Revenue Re ni nent Identification arid Management Dashboard: In order to oar lei ate the fi na nc i a I pos ition of the V i I I age's Water Syste mi, Raftel is will update the 'P inanageme nt dashboard" to al I (-) w f -C)r the re-v I c �s-- (7) f i 17 c fin anc ial P os I tiara o f th c uti 11 ty and the Ail it y to perform S�enlnlitjvay analy,�-es, in order to fiiial-ly�t the I'Manc-lal forccast- As- VarL ol'thl� task, Raftelis will % work with the Village to 1&,Titify oi- L L p d Ltk2 any firtanc1 'al perforniance, targets that will pro v1 -do g 'del- I I P.1 r. r ui ines and support for the financial forecast and revenue sufficiency fiscal. I ies 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. A - This & w'll -nelude a n`Sriof comph Task 7 — Compl 1,- 1 ri ce An a] y�� is to I I I ianee to the rate covenant rcqu]IF fund requirements as defired 'a the governing bond resolution / loan �Mta I ,11tS 411 d 111 C fl OW 0 f 1 documents tha L a Ll i h o Hzed th e i s suancie of the outstandi ngy uti lity system revenue bonds and System indebtedness. The c o ni p I i a ii ce a n a I ys es wil I be perfo rnied fo r the Forecast Peri od to mainit ai n the financial integrity of the utility systeni. Page 391 of 478 Agenda Item #21. Task 8 —late Comparisons with Neighboring Utilities: Raftetis will prepare a rate comparison 4 9 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 virtual meetin,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. Raftelis will attend i) a Village Council workshop to assist staff in the presentation of the water main replacement program and financial forecast / rate analysis plan for consideration and ii) a Village Council public hearing to approve any change in rates associated with the water main replacement program and the financial forecast / rate analysis. Task. 10 — Technical Memorandum Preparation.- Raftelis will prepare a limited technical memorandum documenting all our analyses, assumptions, and considerations in support of the Village Council presentations. This task will also include the development of a presentation bn'efing document in support of the, Village Council Workshop and Public Hearing on -site meetings. Task 11 Meetings: During the course of this project it is anticipated that Raftelis. will attend a total of two (2) on -site meetings with the Village and attend three (3) virtual (e.g., Teams' ) off - site meetings to present ongoing results with Village staff and Council. The virtual meetings will include, but not be limited to, discussions regarding assumption development., forecast and analysis review, and project status meetings which are necessary to allow for the ongoing preparation of the utility rate evaluation and financial forecast. For the put -poses of preparing the cost estimate included on Attachment C, it has been assumed that the on -site meetings would have a duration of eight (8) hours per meeting, which includes travel and mecting preparation, and the virtual 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 perfon-11 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. 1. Attendance of additional meetings to what is contcmplated in the scope of scrviccs. 2. Performance of a detailed utility cost of service allocation study to design proposed rates to meet the financial requirements of the Water System. MMEI Page 392 of 478 Agenda Item #21. 3. 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 acrencies or other related parties associated with the possible sale of bonds. 4 A 4. Negotiations with third parties associated with franchise agreements., provisions for services,. or other related activities. 5. 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. 6. 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. Page 393 of 478 Agenda Item #21. rn r-+ I-- V-� C.-I C', 1 kr, C) �. T I 1 1 I 1 1 I 1 1 I 1 1 1 I 1 1 1 1 1 1 1 I 1 1 1 [ 1 r� r �4 tn ICI i�ti ,r 1 1 fl 1 1 1 1 1 1 1 fl 1 1 fl 1 i i C�] CIO CLI i•r 1..F y fdi FrU CCU Ld 0- 64 owl �y r F� ,-- Yam+ Cis CfS cc 04 U7 t wo -�; 0 G �-- �yii�• P] g tn 00 �.cal Cd tL Page 394 of 478 Client#: 1722483 RAFTEFIN m �11 AA-VUHUMCERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) 1 1 /27/2022 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 Cameron M Harris & Co, LLC Div USI Ins CONTACT Andrew Little NAME: PHONE gg0--FAX 4950832 A/C, No, Ext : (A/C, No): ADDRIL andrew.11ttle@usl.com 6100 Fairview Road Ste 1400 Charlotte, NC 28210 INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: National Fire Insurance Co. of Hartford 20478 INSURED INSURER B : Continental Insurance Company 35289 Raftelis Financial Consultants, Inc. American Casualty Company of Reading PA INSURER C: y p y 9 20427 227 West Trade Street, Ste. 1400 Continental Casualty Company INSURER D : Y p Y 20443 Charlotte, NC 28202 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. INSR LTR TYPE OF INSURANCE ADDL INSR SUBR WVD POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DD/YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE I XI OCCUR 6076000011 01 /21 /2022 01/21/2023 EACH OCCURRENCE $1,000,000 PREMISES (Ea RENTED ) $ 5007000 MED EXP (Any one person) $15,000 PERSONAL & ADV INJURY $1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRO- POLICYF_] JECT FX LOC OTHER: GENERAL AGGREGATE $2,000,000 PRODUCTS - COMP/OP AGG $23000,000 $ AUTOMOBILE LIABILITY ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTOS X HIRED X NON -OWNED AUTOS ONLY AUTOS ONLY BUA6076000025 01/21/2022 01/21/202 CMBID Ea accciden SINGLE LIMIT $1,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE Peraccident) den $ B X UMBRELLA LIAB EXCESS LIAB X OCCUR CLAIMS -MADE C U E6076000039 01 /21 /2022 01/21/2023 EACH OCCURRENCE $5 000 000 AGGREGATE $5 000 000 DED X RETENTION $10000 $ C WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y/ N OFFICER/MEMBER EXCLUDED? N� (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below N / A WC676305637 WC676000042-CA 01/21/2022 01/21/2022 01 /21 /202 01/21/2023 OTH- X PER FTER STATUTE E.L. EACH ACCIDENT $1,000,000 E.L. DISEASE - EA EMPLOYEE $130003000 E.L. DISEASE - POLICY LIMIT $1,000,000 D Professional 652071235 01/21/2022 01/21/2023 $5,000,000 Aggregate $5,000,000 Occurrence DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) CERTIFICATE HOLDER CANCELLATION 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 (2016/03) 1 of 1 #S34794605/M34770098 © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Page 395 of 478 BXCE4