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HomeMy WebLinkAboutDocumentation_Regular_Tab 11_02/17/2005 ' t Public Resources Management Grou�p, Inc. January 13, 2005 Mr. Michael R. Couzzo Village Manager Village of Tequesta P.O. Box 3273 Tequesta, FL 33469-0273 Subject: Agreement to Provide Utility Consulting Services — For Updated Utility Financial Forecast Dear Mr. Couzzo: As we discussed and based on the request made by the Village of Tequesta (the "Village"), Public Resources Management Group, Inc. (PRMG) is pleased to submit this letter agreement (the "Agreement") to provide certain utility financial consulting services on behalf of the Village's water utility system (the "System"). Based on discussions with the Village, the primary responsibilities of PRMG as it relates to this project is to i) prepare updated financial projections of the System (from what was prepared in our study dated August 4, 2003) recognizing known and anticipated changes to such System; and ii) identify trends in utility margins, the ability to meet rate covenants requirements, and other factors such that the Village can make an informed decision of the business aspects of operating and financing such System. Based on our understanding of the needs of the Village, we propose the following: PROJECT TEAM AND BILLING RATES With respect to the performance of this engagement, Mr. Robert J. Ori, principal-in-charge for the project, and Mr. Jeff Wilson, project manager for the engagement will serve as primary contacts between the Village and PRMG. PRMG may utilize other employees or associates during the course of the engagement as needed. The services covered by this Agreement shall be provided based on the direct labor rates set out in Attachment A which is made a part of this Agreement. SCOPE OF SERVICES The scope of services to be performed by PRMG is summarized on Attachment B, which is made a part of this Agreement. COMPENSATION AND BILLING Based on the Scope of Services as summarized herein in Attachment B and the direct hourly labor billing rates as shown on Attachment A herein, we propose a not-to-exceed budget of $14,800 for the project. A summary of the cost estimate is included on Attachment C to this Agreement. This project cost estimate is considered as a total cost for the engagement and not a "by-task" contract. The billings for the services provided pursuant to this Agreement and in K:\\1056-0412005forecasLtr Agmt.doc Mr. Michael Couzzo Village of Tequesta January 13, 2004 Page 2 � accordance with the project budget will include the direct cost of personnel anticipated to be assigned to the project as well as any other direct costs such as travel, telephone, and copying, printing and shipping charges and subconsulting expenses. The costs incurred by PRMG for such other direct costs, if any, will be billed based on the reimbursement schedule as reflected in Attachment A. It is proposed that PRMG will bill monthly for services relative to this Agreement based on the hourly amount of time spent by the project team members, the other direct costs incurred and the pass-through of any subconsulting costs that may be required for the engagement. PRMG does not anticipate the need for subconsultant services during the course of the engagement. To the extent that PRMG determines a need for subconsultant services, PRMG will notify the Village of such need and will not employ or use any subconsultant without the approval by Village and authorized Village personnel. No additional services above the cost estimate will be performed without the prior written authorization of the Village. DELIVERY SCHEDULE After receipt of notification to proceed as provided by the Village and based on data availability, it is proposed that PRMG will complete the project within 60 days. We have enclosed two copies of this Agreement to provide consulting services to Village for your consideration and authorization. If this Agreement is acceptable to the Village, please execute both copies of the Agreement and return one copy to our offices; the other copy is for the Village's files and reference. We appreciate the opportunity to assist the Village in providing utility consulting services on behalf of the Village's utility system and look forward to working with the Village, and you on this project in the near future. Very truly yours, ACCEPTED BY: Public Resources Management Group, Inc. Village of Tequesta, Florida ' �, ��.-� . ��� � �,�;�� . �"` Robert J. Ori Michael R. Couzzo ;?� President Village Manage ,,..� ,.�' � � Date Attachments K:\\1056-04\ 2005forecasLtr Agmt.doc ATTACHMENT A VILLAGE OF TEQUESTA, FLORIDA UTILITY CONSULTING SERVICES — UPDATED UTILITY FINANCIAL FORECAST SCHEDULE OF DIRECT LABOR HOURLY RATES AND STANDARD COSTS DIRECT HOURLY RATES Direct Labor Project Team Title Hourly Rate [*] Principal $140.00 Executive Consultant $120.00 Associate $110.00 Supervising Consultant $ 95.00 Senior Consultant $ 85.00 Rate Consultant $ 75.00 Rate Analyst $ 65.00 Analyst $ 55.00 Assistant Analyst $ 45.00 Clerical and Administration $ 45.00 [*] Direct labor hourly rates effective to September 30, 2005; rates will be adjusted by not more than five percent (5%) annually (Rounded to the nearest dollar) for invoices rendered after October 1 of each year thereafter until project completion or as mutuaily agreed between parties. STANDARD COST RATES Standard Cost Rates Mileage Allowance — Personal Car Use $0.33 per mile In-house Reproduction (black and white) 0.10 per page In-house Reproduction (color) 0.50 per page Off-site Reproduction Actua( Cost Computer Time $0.00 per hour Telephone Charges Actual Cost Delivery Charges Actual Cost Lodging/Other Travel Costs Actual Cost Meals Not to exceed following Schedule per Employee: Breakfast - $6.00 Lunch - $10.00 Dinner - $24.00 Subconsultant Services Actual Cost plus 5.0% All Other Costs for Services Rendered Actual Cost K:1U056-04\2005forecasLtr A�mt.doc �l-1 ATTACHMENT B VILLAGE OF TEQUESTA, FLORIDA UTILITY CONSULTING SERVICES — UPDATED UTILITY FINANCIAL FORECAST SCOPE OF SERVICES The scope of services to be performed by PRMG shall include the following activities. Task 1— Data Acpuisition and Review. PRMG will review data compiled by and provided by the Village relative to the operation of the System. The data which will be required for the completion of the study will include, but not be limited to: i) customer statistical data; ii) historical and budgeted revenue and expenditure information, including copies of the operation and management contracts for the daily operations of the System; iii) financial data associated with System operations; iv) capital expenditure planning data; v) utility rate tariff, agreements for bulk service, etc.; vi) and other information deemed necessary by the Village and PRMG necessary to complete the project. PRMG will prepare a data request for response by Village in order to compile the necessary information required for the study. PRMG will attend a"kick-off' meeting with the Village to review the compiled information and discuss/identify issues associated with the operations and long-term financial plannin g of the S ystem. Task 2— Historical Customer and Financial Compilation Based on the availability of data; PRMG will prepare up to a five fiscal year compilation of the: i) customer accounts, water and wastewater sales (gallons sold), water production; and wastewater treatment requirements; and ii) the revenues and expenses in a format consistent with the utility budget and the financial forecast model. The purpose of this analysis will be to identify trends in water/wastewater use per customer, system growth, and capacity needs and to develop parameters for the escalation of operating expenses and other system revenue requirements. Task 3— Customer and Sales Forecast. PRMG will update the projection of the water customers and sales (flow) for the Forecast Period as hereinafter defined. The forecast will encompass a five-year analysis period which will include the Fiscal Year 2005 (the "Test Year") and the subsequent four fiscal years ending September 30, 2009 (collectively, with the Test Period, the "Forecast Period"). The forecast will be based on recent trends and the billing analysis conducted in Tasks 1 and 2 and will be prepared based on the customer classes/rate design standards currently in effect or planned based on the rate objectives or policies of the Village. The forecast will be developed by customer class with a projection of revenues being developed for the application of monthly rates consistent with the results of the customer forecast. K:\\1056-04�2005forecasI,tr Agmt.doc B-1 Task 4— Rate Revenue Forecast. PRMG will prepare a forecast of the anticipated sales revenues of the System based on the customer growthlstatistical scenarios prepared during the Task 3 activities of the project. The rate revenue forecast will be based on the usage characteristics and accounts served for each class of customer to identify rate revenue contribution and possible issues for the design of rates. Task S— Revenue Requirements. PRMG will prepare a projection of the revenue requirements of the System for the Forecast Period. The revenue requirements will be based on assumptions prepared by PRMG and provided by others and will include: i} the operating expenses of the utility; ii) existing and anticipated debt service requirements; iii) capital expenditures and associated funding sources; iv) Village administration, contract management and other expense allocations; and v) other expenditure requirements. This task will also include the identification of other revenues available to fund the expenditure requirements of the System. This will include other System operating revenues, interest or investment earnings, the use of available funds/reserves, and other revenues. The purpose of this task will be to identify the overall expenditure needs or revenue requirements that will be recovered from rates and to assist in rate phasing/implementation analyses. Task 6— Capital Funding Analysis. PRMG will incorporate a capital funding analysis as part of the determination of the Test Year revenue requirements of the System. The analysis will include the identification of the capital expenditure needs as identified by the Village staff and its consulting engineers and the development of a funding plan for such capital needs. The funding analysis will recognize currently available uncommitted reserves, use of additional Senior Lien or Subordinate Lien bonds, and other sources as identified with Village staff. An estimate of Test Year interest earnings available to be earned on available cash balances will also be performed during this task. Task 7— Customer Impact Analvsis. In order to assist the Village in the evaluation of the proposed financial plan and the affects of any system rate adjustments that may be identified, PRMG will prepare a rate comparison of the Village's existing and proposed water rates with other neighboring jurisdictions to identify the competitiveness of the required rates for utility service. Task 8— Report Preparation and Presentation. PRMG will prepare a letter report that will document the analyses, assumptions used and the conclusions of each task described above. The purpose of the report is to document the results of the study and to possibly initiate the capital improvement financing process. The letter report will be prepared in draft form for Village management review and in final form for use by the Village management for presentation to the Village Board. Task 9— Meetin�s. During the course of the project, it is anticipated that PRMG will attend several meetings with the Village management and its consultants/advisors to review the analyses and present the results of the financial forecast. For the purposes of this scope of services, it is recognized that PRMG will attend three (3) meetings by not more than two (2) employees of PRMG. The meetings may be attended by teleconferences or by actual site visits, K:\\ 1056-04�2005forecasLtr Agmt.doc B-2 depending on need and contract budget. The meetings identified in this scope of services include: Number of Meetings Data Review/KickofF Meeting 1 Analytical Meeting/Review Results 2 Total Number of Meetings 3 Additional Services During the course of the study, the Village may request additional services from PRMG. Although no additional services are anticipated at this time, PRMG will perform such services only as mutually agreed between the Village and PRMG in writing. Examples of utility rate consulting services which would be considered as an additional service include, but are not limited to, the following activities: 1. Attendance of ineetings in addition to what is anticipated in this scope of services. 2. Development of several financial or capital funding scenarios in additions to what is generally described and contemplated in this scope of services and the preparation of a multi-year forecast of System revenue requirements. 3. The development of a detailed rate evaluation (design of rates by System allocation of revenue requirements associated with the preliminary findings of the financial forecast). 4. The development of a Bond Feasibility Report or any other related financing documents or reports necessary for the funding or securing of funds for the construction of capital improvements to the System. 5. Performance of additional fmancial and rate analyses subsequent to substantial completion of the scope of services identified herein or due to delays in the project which is not the fault of PRMG. K:\\1056-04�Page B3.dce B-3 a :nt C Viliage of Tequesta - Updated Utility Financial Forecast Page 1 of 1 Preliminarv Job Coat EsNmate to Provide tilltv Financial CoosWHn Services odated UHlitv Financial F'orecast Line Executive Supecvising Senior Rate Rate Assistant Clerical No. Acdviry Principal Consultant Associate Consultant Consultant Consultant _ Ana(yst Analyst Analyst & Admin. Totals 1 Project Billiog Rates (S/Hr.) 5140.00 5120.00 $110.00 595.00 585.00 575.00 E65.00 555.00 545.00 545.00 2 Data Acquisidon Review and Kick-off Meeting 8 - - - 10 - - - 2 20 3 Historical Customer and Finacial Cosc�ilation _ . � _ �2 - - ' 12 4 Customer and Sales Forecast z _ _ . 6 _ - " $ 5 Rate and Revenue Forecast 3 _ _ _ $ _ � �� 6 Capital Fimding Analysis 4 - - - I S _ _ - - 22 7 Custossxt Itc�act Analysis - - - - 4 - - - 4 8 Report Preparation and Presentation 6 _ . _ � 4 _ _ " Z Zz 9 Meetings (prepantion and attendance of 2 meetings)(') 16 - - - 16 - - - - 12 44 10 Project Management 3 - - - - - - - - 3 6 11 'fotal Project Hows 42 - - - 88 - 19 149 12 Total Direct Labor Cost - All Tasks $ 5,880 $ - $ - $ $ - $ 855 $ 14,215 l3 Averrge Houriy Billing Rate �� $ 7 480 �� �� �� ��� �°'°� $95.40 14 Allowance for Indircct Costs � 15 Delivery Charges (2 Exprcss Maiis (�o, 525.00) � 16 Telephone Allowance 100 17 Trrvel (3 Trips x 350 miles x S33/ Mile) 347 18 Miscellarnouc Expense Allowance g8 19 Total Allowance for Indirect Costs 585 20 Total Eswnated Pmject Cost 514,800 (•) Does not include the cost for the attendance ofthe Kick-offMeeting which is sepante(y idrndfied. 2005TeqFinCostEst..xls 1/13/2005 8:21 PM MEMO DATE: FEBRUARY 16, 2005 TO: THE MAYOR AND MEMBERS OF COUNCIL THRU: MICHAEL R. COUZZO, JR., VILLAGE MA A�� FROM: GWEN CARLISLE, VILLAGE CLERK RE: 02/17/05 — AGENDA ITEM #12 — BUDGET TRANSFER For your information, the agenda item has been revised to reflect the reduction in the amount of the budget transfer to $3,000.00 for the costs associated with a traffic iunpact study for the new Village Hall. The original request fox $15,000.00 included the costs associated with a Village Comp Plan Amendment. At this time Staff does not see any changes to the Comp Plan regarding the new Village Hall.