HomeMy WebLinkAboutAgreement_General_08/25/2008Public Resources Management Group, Inc.
1 rilitr. Kcr~c°. Firrc~nciul uilcl llur~u,,:mt~y~~ ~ -:,;~~;~~i,'~crfl~s
August 6, 2008
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 -Additional Services
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 request for
additional services with respect to the preparation of the updated utility financial forecast (the
``Study") on behalf of the Village's water utility system (the "System"). As you know, PRMG
had been previously tasked with the preparation of the Study and to date, PRMG has prepared a
draft financial feasibility study report which included, among other things, a forecast for the five
fiscal years ending September 30, 2012 (the "Forecast Period") of customer growth and billed
water sales and associated rate revenues, a projection of operating expenses and funding
requirements to be met from utility rates, a funding plan linked to the capital expenditure needs
as identified by Village staff, and the design of proposed water rates. Additionally, we attended
several meetings with Village staff and prepared a briefing document in anticipation of
presenting the Study findings to the Village Board. To date, PRMG considers the Study to be
essentially completed with the exception of the formal presentation to the Village Board.
Based on our discussions we have prepared a request for additional services to continue with the
financial forecast and rate evaluation process. The primary objectives of the additional services
request by the Village is to i) develop an updated five year financial forecast for the five fiscal
year period ending September 30, 2012 in order to re-evaluate the financial and corresponding
rate needs of the Village's water system based on the Village's current proposed Fiscal Year
2009 Operating Budget and recent changes in debt service requirements associated with the
refunding of the outstanding utility revenue loans; and ii) prepare and update the previously
prepared Study to incorporate the new financial forecast and overall findings and rate
recommendations resulting from the updated Study process.
This request represents the second request for additional services to the Village associated with
the Study. Based on the scope of services as included on Attachment B which is made a part of
this request for additional services and the direct labor hourly rates as reflected on Attachment A,
we propose an increase in the contractual cost associated with the update and completion of the
Study of $5,600. This additional services cost estimate is summarized on Attachment C which is
K:\U 056'~2008forecast Ltr AddServiceA~nt#2
Mr. Michael Couzzo
Village of Tequesta
August 6, 2008
Page 2
made a part of this request. If this additional services request is accepted by the Village, the total
contract budget will be $30,350 as summarized below:
Amount
Initial Budget per Services Agreement $22,000.00
Amendment No. 1 to Services Agreement 2,750.00
Amendment No. 2 to Services Agreement 5,600.00
Total Amended Contract Budget 30 50.00
We appreciate the opportunity to provide this request for additional services to the Village. If
this request is acceptable, please notify PRMG in writing of the acceptance of this request. Such
acceptance will represent our notification to proceed with respect to the performance of the
additional services on behalf of the Village. Again, PRMG appreciates the opportunity to
provide rate consulting services to the Village.
Very truly yours,
Public Resources Management Group, Inc.
r ~~
~ r
Robert J. Ori
President
ACCEPTED BY:
Village of Tequesta, Florida
~~
Michael R. Couzzo
Village Manager
~3-~' r'
Date
Attachments
K^,\1056\2008forecast Ltr AddServiceAgmt#2
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
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 [*]
$160.00
$125.00
$110.00
$100.00
$ 95.00
$ 80.00
$ 70.00
$ 65.00
$ 60.00
$ 50.00
$ 40.00
$ 48.00
[*] Direct labor hourly rates effective to December 31, 2008; rates will be
adjusted by not more than five percent (5%) per annum (rounded to the
nearest dollar) or as mutually agreed between parties for invoices
rendered after January 1 of each year thereafter until project completion
or termination of the agreement.
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
Standard Rates [*]
$48.5 per mile
$0.05 per page
$0.25 per page
Actual Cost
$0.00 per hour
Actual Cost
Actual Cost
Actual Cost
Not to exceed per
PRMG Employee
$8.00 -Breakfast
$12.00 -Lunch
$25.00 -Dinner
Subconsultant Services Actual Cost plus 5.0%
Other Costs for Services Rendered Actual Cost
[*] Standard cost rates effective to December 31, 2008; rates will be adjusted by not more
than five percent (5%) per annum (rounded to the nearest dollar) or as mutually agreed
between parties for invoices rendered after January 1 of each year thereafter until project
completion or termination of the agreement.
K:\\1056\2008forecast Ltr AddServiceAgm[#2
A-1
ATTACHMENT B
VILLAGE OF TEQUESTA, FLORIDA
ADDITIONAL SERVICES -UPDATED UTILITY FINANCIAL FORECAST
SCOPE OF SERVICES
GENERAL
The proposed Scope of Services to be performed by the personnel of Public Resources
Management Group, Inc. (PRMG) relative to the additional services is summarized below by task:
Task 1 -Data Acquisition/Compilation Review: In order to update the financial forecast for the
Forecast Period (defined as the five fiscal year period ending September 30, 2012), an additional
information request will be prepared for the Village to compile specific information relative to
the operation of the water utility system (the "System"). Such information will be similar in
scope to what was initially requested for the Study and will be an update to information already
received to reflect more current conditions. Such information will include, but not limited to,
customer billing and sales statistics, actual year-to-date Fiscal Years 2008 operating results,
amendments to the adopted Fiscal Year 2008 Budget, preliminary Fiscal Year 2009 operating
budgets, the latest cost estimates on the multi-year capital improvement program, current fund
(cash) balances, ,and other similar information. PRMG will prepare an information request to
begin the necessary data compilation activities associated with this task.
Task 2 -Update Financial Forecast and Revenue Requirements • PRMG will update the
financial forecast for the System to i) reflect changes in current costs and water usage flow
characteristics; ii) recognize current Year-to-Date results and changes in projections identified
by the Village as part of the ongoing budgetary process; iii) include any changes in the capital
improvement plan or expenditure needs and the funding of such needs based, in part, on the
current financial resources available to the Village; and iv) to reflect other known changes or
financial considerations as it may affect the financial position of the System (e.g., updated cash
balances by fund, incremental additional expenses or liabilities that may have been incurred or
identified since the initial Study preparation, etc.). This task will include:
a) Review and possible development of a revised customer account and sales /usage
forecast;
b) Projections of revenues from existing rates;
c) Projection of operating expenses including the possible review and update of any
escalation factors;
d) Development of a capital funding analysis;
e) Development of a debt compliance analysis;
f) Review of overall financial position, including the evaluation of fund (cash) balances by
specific fund /account as maintained by the Village; and
g) Estimate of average utility system rate adjustment identified for each year of the
Adjusted Period and develop rates in support of the recovery of such rate adjustment.
Task 3 -Update Rate Studv Re ort: Since the last report is considered as a draft and has not
been formally presented to the Village Board at a public hearing, PRMG will update the draft
report to reflect the recent findings and analyses developed as part of this additional services
request by the Village.
Task 4 -Present Rate Studv FindinQS: PRMG will update the previously prepared Briefing
Document for presentation to the Village Board and will attend a public hearing in support of
the adoption of the financial forecast and any recommended changes in the level of water rates
charged by the Village. As part of the rate adoption process, PRMG will review the rate
resolution or ordinance as prepared by the Village in support of the codification of the rates.
MEETINGS
During the course of this engagement, it is anticipated that PRMG will attend one (1) meeting
consisting of:
One (1) meetings to present the results of the updated rate study process to Village staff.
Attendance of the meetings will be by not more than two (2) employees of PRMG; the
attendance of any additional meetings will be considered as an additional service.
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 meetings in addition to what is anticipated in this scope of services.
2. Development of several financial or capital funding scenarios in addition to what is
generally described and contemplated in this scope of services and the preparation of a
multi-year forecast of System revenue requirements beyond the five year forecast period
described in this scope of services.
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 financial 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.
R
.`
U ~
~i
G ~'
d v
^C' .7
r7 y
v
4r
Q O
d
b0
R
~.
bD
a
O
H
O
O
~ .C ~
7: Q'
U ~
0
0
~, o
~ ~
d
0
0
y o
~ ~
~ vj
d
0
~ o
~ o
~ ~ o0
~ ^ sA
a' ~
0
U
O
~ O
O "~' D\
'~ 7 69
~ y
~ ~
U
~ o
0
y }°• °o
7J C I 69
S1. O
V] U
O
w.
U O O
y ~ ~D
O ~ 69
a ~
Y
~ ~
[~ 4
O
C O
:; z
'n N
M
v1 O
I
7 ' N ~ ' loo ~
00
s~
us
N ~O ~p ~-+ ~--~ 7 , IO O
M ~
N
6A
~~I
^~ N 7 ...i 7 •-~ I M OII
,-~ 00
O
N
~ 7 ~ Q ,:
~ N M M 'z "~' d
69
O ° oho oho O
N ~D
69
y
V1 L
~ O
~ x
.~ o s
a
~
Y o
v ~ a`~i ~
a
~ ~ ~ ~ +"'
s:
~ `
'
a~
o ~ 'D ~
~ 3 F"'
- ~
¢ ~ x 3
w ~,
=
Q U
~~'
o
_
~ C ¢_
ca
'O
C O ~
U .^. V V ~ r-'
~ R M R ~
C C7
O
R
x y
U Gt.
G
~ ~~ p• i
a o ca ~ 3 X uj w a
C G ' U Rai V N N ~ ,~, ~ L
a +. O G. ~ _ ~
Cq ~ c ~ ~ ~ ~
.c w
a
~ o~~ ~ .
o
.o L x w° ~ F: °y
~
~ ~
o ie
E
a
i o v
^ N M R~~ n o0 01 O ~--~ N M~ N ~ n
a
v
O
O
N
