2012-40 pit Public Resources Management Group, Inc.
MG Utzlzty, Rate, Fznanczal and Management Consultants
May 21, 2012
Mr. Freddy Suarez
Administrative Services Director
City of Clermont
685 W. Montrose Street
Clermont, Florida 34711
Subject: Agreement to Provide an Impact Fee Study
Dear Mr. Suarez:
Public Resources Management Group, Inc. (PRMG) is pleased to submit this agreement to
provide professional consulting services to the City of Clermont, Flonda (the "City" or "Client ")
associated with the preparation of a utility and municipal impact fee study (the "Impact Fee
Study "). The purpose of the Impact Fee Study is to assist the City with its review and update of
Water, Wastewater, Police, Fire, and Recreation Impact Fees that are applied to new
development.
PROJECT TEAM AND BILLING RATES
With respect to the performance of this engagement, Mr. Henry L. Thomas will be the pnncipal
in charge, project manager and primary contact with the City. Other staff consultants, analysts
and administrative personnel will be utilized during the course of the engagement as needed.
The services covered by this Agreement shall be billed based on the direct labor rates set out in
Attachment A which is made a part of this proposal.
SCOPE OF SERVICES
The scope of services to be performed by PRMG is included on Attachment B, which is made a
part of this proposal.
COMPENSATION AND BILLING
Based on the Scope of Services as summanzed herein in Attachment B and the direct hourly
labor billing rates as identified on Attachment A, we propose to establish a not -to- exceed
contract budget to provide consulting services associated with the performance of the Impact Fee
Study of $28,600.
This project budget amount includes 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, pnnting and
shipping charges. The costs incurred by PRMG for such other direct costs, if any, will be billed
to the City based on the Standard Unit Costs or reimbursement schedule as reflected on
Attachment A. It is proposed that PRMG will bill monthly for services relative to this
engagement based on the hourly amount of time spent by the project team members, the other
K \1179 City of Clermont\ RevisedClermontlmpac tFeeLetterAgree Rv -2 (2) docx
341 NORTH MAITLAND AVENUE • SUITE 300 • MAITLAND, FL 32751
TELEPHONE (407) 628 -2600 • FAX (407) 628 -2610
Mr. Freddy Suarez
City of Clermont
May 21, 2012
Page 2
direct costs incurred and the pass - through of any sub - consulting costs that may be required for
the engagement. No additional services above the cost estimate will be performed without the
prior written authorization of the City.
TERM OF AGREEMENT
The terms of this proposed agreement and the associated direct hourly labor billing rates for
PRMG personnel shall be in effect and continue through the completion of the project or
December 31, 2012, or some other contract period as mutually agreed to between the City and
PRMG. It is anticipated that the project will be submitted to the City within 120 days after being
given authorization to proceed.
ADDITIONAL TERMS AND CONDITIONS
Additional standard terms and conditions, that are made part of this proposed agreement, are set
forth in Attachment C which is made a part of this proposal.
We appreciate the opportunity to submit this agreement to provide rate consulting services to the
City. If this agreement is acceptable, please execute both copies and return one copy to PRMG.
Very truly yours,
Public Resources Management Group, Inc
/g4 ‘„
Henry L. Thomas
Vice President
ACCEPTED BY:
City of Clermont
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Title J Date
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ATTACHMENT A
CITY OF CLERMONT, FLORIDA
UTILITY AND MUNICIPAL SERVICES IMPACT FEE STUDY
SCHEDULE OF DIRECT LABOR HOURLY RATES AND STANDARD UNIT COSTS
DIRECT LABOR HOURLY RATES
Direct Labor
Project Team Title Hourly Rates [ *]
Principal $170 00
Associate $125 00
Managing Consultant $115 00
Supervising Consultant $110.00
Senior Consultant $105 00
Rate Consultant $ 95.00
Consultant $ 85.00
Senior Rate Analyst $ 75 00
Rate Analyst $ 65 00
Analyst $ 55 00
Assistant Analyst $ 45 00
Admimstrative $ 48 00
[ *] Direct labor hourly rates effective twelve months after the date of execution of the
Agreement, rates will be adjusted by not more than the net percentage change (but
not Tess 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 Agreement between the parties
OTHER DIRECT COSTS - STANDARD RATES
STANDARD COST RATES
Expense Description Standard Rates [ *]
Mileage Allowance — Personal Car Use Only $0 485 per mile
Reproduction (black and white) (in house) $0.05 per page
Reproduction (color) (in house) $0.25 per page
Reproduction (contracted) Actual 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 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 twelve months after the date of execution of the
Agreement, where applicable, rates will be adjusted by not more than the net percentage
change (but not less than 0 %) in the Consumer Pnce 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 Agreement between the parties Any Standard Rate
adopted by policy by Client will supersede rates shown above
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ATTACHMENT B
CITY OF CLERMONT, FLORIDA
IMPACT FEE STUDY
SCOPE OF SERVICES
The scope of services to be performed by PRMG in the preparation of the Impact Fee Study for
the police, fire, and recreational services (the "Municipal Services ") and the water and
wastewater services (the "Utility Services ") will include the following tasks:
Data Gathering:
1. Preparation of Data Request — PRMG will prepare a written data request outlining the
necessary information that will need to be compiled by the City in order to complete the
Impact Fee Study. The data request will be segregated by type of fee in order to assist
the City with the data gathering efforts. Data that will be requested will include, but not
be limited to, the following: i) personnel and staffing levels for police and fire
departments, ii) inventory of existing capital equipment and facilities required to provide
police and fire protection services, including buildings and structures, vehicles,
equipment and equipping of personnel; Hi) an inventory of recreation open space and the
recreational facilities currently in service; iv) fixed asset data for the water and
wastewater systems; v) population and development statistics; vi) service call
information for police and fire protection services; vii) capital improvement programs for
water and wastewater and municipal services; viii) utilization and capacity availability
data for the existing water and wastewater treatment facilities; ix) comprehensive
planning documents; x) information regarding current level of service standards; and
xi) other data and information considered necessary to perform the study. PRMG will
gather data regarding the level of fees currently charged by neighboring communities.
2. Initial Project Meeting — PRMG staff will attend an initial project meeting to affirm
project goals and objectives, obtain and review compiled information and interview City
staff. It is anticipated that this meeting will occur after the City has provided the data
requested in the initial data request
Municipal Service Impact Fees:
1. Municipal Service Area Forecast — This task will include a review of service area
demographics including any projections of service area population and new development
by type of residential dwelling unit (e.g., single - family, multi- family, etc.) and
commercial development by land use type and square footage. The population
projections and other service area demographics as contained in documents such as the
City's Comprehensive Land Use Plan; Florida Statistical Abstract and other information
provided by the City will be used in this task is to estimate the future service area demand
for services.
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2. Determination of Level of Service Standards — Based on available information, PRMG
will work with City staff to identify the level of service standard (LOS) for each
municipal service. These standards should be consistent with the City's current service
levels and the City's Comprehensive Plan submitted to the Department of Community
Affairs, where applicable.
3. Cost Allocation — The capital costs associated with providing municipal services for new
customers will be identified in conjunction with City staff and allocated among the
residential and commercial customer classifications, where appropriate or determined on
a "per equivalent unit" basis to assist in the overall fee determination. The allocation of
such costs will be based on the service area demographics, level of service standards and
development characteristics of the City and other factors as deemed appropriate by
PRMG and the City.
4. Design of Municipal Services Impact Fees — PRMG will design impact fees for each
specific customer classification for the municipal services under consideration. The
design of the Municipal Services Impact Fees will recognize the same general rate
categories and application methods currently in effect unless it is decided that these
categories should be modified (this will be determined between the City and PRMG
during information gathering phase of project). The Municipal Services Impact Fees will
be based on the capital cost allocable to future growth, the allocation of such costs among
the relevant customer categories, and the level of service standards. Additionally, PRMG
will identify any external funding credits that should be recognized in the derivation of
the impact fees.
Water and Wastewater Utility Impact Fees:
1. Determination of Level of Service Standards - Based on the information provided by the
City and the results of interviews with key staff members, PRMG will identify the level
of service (LOS) standards consistent with the City's current planning criteria, industry
standards, and other factors.
2. Equivalent Residential Connection (ERC) and Facility Use Characteristics - Based on
the level of service standards an analysis of the City's existing and projected capacity
requirements and facility use characteristics will be conducted. This analysis will include
a review of current fixed assets and capacity utilization.
3. Design of Utility Services Impact Fee - Based on the LOS standards and the cost of
capacity required to serve new development, the PRMG will develop Utility Impact Fees
for water and wastewater service. The fees will be developed recognizing the reservation
and utilization of capacity by an equivalent residential customer (e.g., single - family
residential) and will recognize the capital facility burden imposed on the City by new
development. This task will include the following:
• Review the City's current Utility Impact Fee application methodology and make
recommendations for alternative approaches to supplement the current methods;
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• Perform an analysis of existing facility costs and future capital costs to provide
utility service to new development;
• Conduct an evaluation of system capacity relationships for existing and future
plant additions;
• Design Utility Impact Fee for each specific utility system.
4. Utility Impact Fee Credit Determination - This task will recognize any alternative
funding sources which have been or will continue to be available to the City which will
serve to reduce the capital funding requirements from new development, if any. This task
will include an evaluation of alternative funding sources, and the development of a credit
to the fees determined above on a consistent methodology. Finally, the development of
the net Utility Impact Fee to be charged will be determined.
Other Impact Fee Tasks:
1. Fee Comparisons — A comparison of the existing and proposed fees for residential
dwellings and commercial use will be prepared for each of the Municipal and Utility
Services Impact Fees (new customer impact analysis) and also compared with similar
fees charged by other neighboring public jurisdictions and utilities.
2. Review of Impact Fee Ordinance — PRMG will assist the City in the review and update of
the existing impact fee ordinance to reflect the recommendations of the study.
3. Presentation of Findings — A report will be prepared by PRMG summarizing the data
relied upon in the development of the impact fees as well as the assumptions and methods
used to develop such fees, and our conclusions and recommendations for consideration
by the City Additionally, PRMG will attend one public hearing before the City Council
to present the findings and recommendations of the Impact Fee Study, which assumes the
presentation of all the impact fees under investigation.
4. Meetings — For the purposes of this scope of services, it has been assumed by PRMG that
our staff will attend four (4) meetings with the City in order to prepare and present the
report regarding the municipal impact fees. A summary of the meetings is shown below.
Number of
Description Meetings
Data Acquisition and Interview(s) of Appropriate City Staff 1
Initial Presentation of Analysis to City Staff 1
Attendance of Staff Review Meeting of Impact Fee Analysis /Report 1
Attendance of Public Hearing 1
Total Number of Meetings 4
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ADDITIONAL SERVICES
During the course of the study, the City may request additional services from PRMG. Such
services will not be conducted until authorized by the City as mutually agreed between the City
and PRMG. The City will be billed for such additional services based on the hourly rate
schedule of PRMG's employees as shown in this Proposal or some other basis as mutually agreed
between the City and PRMG. Although no additional services are anticipated for this
engagement, examples of additional services may include the following:
1. Attendance of additional meetings above what is contemplated in the scope of services.
2. Performance of other rate and impact fee analyses in addition to those being reviewed
pursuant to the scope of services for this engagement.
3. Providing general consulting services relating to meeting with third parties regarding the
derivation of the fees, providing litigation support services in the event of a challenge of
the fees, and other related issues not contemplated in the above scope of services.
4. Delays in the project schedule that would affect the budget for the scope of services
reflected herein.
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PUBLIC RESOURCES MANAGEMENT GROUP, INC. ATTACHMENT C
STANDARD TERMS AND CONDITIONS
I SCOPE V INDEMNIFICATION
Public Resources Management Group, Inc. (PRMG) PRMG agrees to indemnify, defend, and hold Client
agrees to perform the professional consulting services harmless from and against any liability ansmg out of
described m the agreement (the "Work ") that the negligent errors or negligent omissions of PRMG,
incorporates these standard terms and conditions. its agents, employees, or representatives, m the
Unless modified in writing by the parties hereto, the performance of duties set forth in Article I
duties of PRMG shall not be construed to exceed Regardless of any other term of this Agreement, in no
those services specifically set forth in the agreement. event shall PRMG be responsible' or liable to Client
These terms and conditions and the agreement, when for any incidental, consequential, or other indirect
executed by the Client, shall constitute a binding damages
agreement on both parties (hereinafter after the
"Agreement ") To the extent provided by law and without waiving
any sovereign immunity client may enjoy, client
agrees to indemnify, defend, and hold PRMG
II COMPENSATION harmless from and against any liability ansmg out of
The Client, as defined m the agreement, agrees to pay the negligent errors or negligent omissions of Client,
for the services as billed within thirty (30) days of its agents, employees, or representatives, m the
receiving the invoice. Amounts paid after thirty (30) Performance of duties set forth in Article I
days may be subject to interest charges, not to exceed
a monthly compound rate of one percent (1 0 %) VI INSURANCE
applied to the delinquent unpaid balance
PRMG shall maintain during the life of the agreement
Time- related charges will be made m accordance with the following minimum insurance•
the billing rate referenced in the agreement. Other
indirect expenses and subcontractor services, if any, 1 Commercial general liability insurance, including
will be billed m accordance with the standard unit cost hired and non -owned automobiles, with the
rates as referenced m the agreement or if no reference following limits•
is provided, at the actual cost as incurred by PRMG
Each Occurrence $1,000,000
Damage to Rented Premises
III RESPONSIBILITY (Each Occurrence) $500,000
PRMG is employed to render a professional service Medical Expense (Any one person) $5,000
only, and any payments made by Client are Personal and Advertising Injury $1,000,000
compensation solely for such services rendered and General Aggregate $2,000,000
Products — Completed/Operation
recommendations made m carrying out the Work. General Aggregate $2,000,000
PRMG shall perform analyses, provide opinions,
make factual presentations, and provide professional 2 Statutory worker's compensation and employers'
advice and recommendations. PRMG does not
liability insurance as required by state law.
expressly warrant or guarantee its services.
3 Professional liability insurance at a lirmt of
IV RELIANCE UPON INFORMATION liability of not less than $2,000,000 aggregate.
PROVIDED BY OTHERS
If PRMG's performance of services hereunder VII SUBCONTRACTS
requires PRMG to rely on information provided by
PRMG shall not subcontract any portion of the work
other parties (excepting PRMG's subcontractors), to be performed under this Agreement without prior
PRMG shall not independently verify the validity, wntten consent of Client
completeness or accuracy of such information unless
otherwise expressly engaged to do so in writing by
Client.
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PUBLIC RESOURCES MANAGEMENT GROUP, INC. ATTACHMENT C
STANDARD TERMS AND CONDITIONS
VIII. ASSIGNMENT
These terms and conditions and the agreement to XIV WORK PRODUCT
which they are attached are binding on the heirs, PRMG and Client recognize that PRMG's Work
successors, and assigns of the parties hereto. This product submitted in performance of this Agreement
agreement may not be assigned by Client or PRMG is intended only for the Client's benefit and use
without prior, written consent of the other
Change, alternation, or reuse on another project by
Client shall be at Client's sole risk, and Client shall
IX INTEGRATION hold harmless and indemnify PRMG against all losses,
damages, costs and expense, including attorneys' fees,
These terms and conditions and the agreement to arising out of or related to any such unauthorized
which they are attached represent the entire change, alternation or reuse.
understanding of Client and PRMG as to those matters
contained herein No prior oral or written
understanding shall be of any force or effect with XV. SUSPENSION OF WORK
respect to those matters covered herein The Client may suspend, in wnting, all or a portion of the
agreement may not be modified or altered except in Work under the agreement in the event unforeseen
wnting signed by both parties circumstances beyond Client's control make normal
progress of the Work impossible. PRMG may request
X. JURISDICTION that the Work be suspended by notifying Client, in
wnting, of circumstances that are mterfering with the
This agreement shall be administered and interpreted normal progress of Work PRMG may suspend Work
under the laws of the State of Florida Jurisdiction of on the project m the event Client does not pay
litigation arising from the agreement shall be in that invoices when due without justification PRMG shall
state Venue for any action arising hereunder shall be be compensated for its reasonable expenses resulting
exclusively in Lake County, FL from suspension due to nonpayment by Client
including mobilization and de- mobilization The time
for completion of the Work shall be extended by the
XI SEVERABILITY number of days Work is suspended In the event that
If any part of the Agreement is found unenforceable the period of suspension exceeds 90 days, the terms of
under applicable laws, such part shall be inoperative, the agreement are subject to renegotiation and both
null and voice insofar as it is in conflict with said parties are granted the option to terminate Work on
laws, but the remainder of the Agreement shall be in the suspended portion of the project
full force and effect
XVI TERMINATION OF WORK
XII FORCE MAJEURE Client may terminate all or a portion of the Work
PRMG shall not be responsible for delays in covered by the agreement for its convemence Either
performing the scope of services that may result from party may terminate Work if the other party fails to
causes beyond the reasonable control or contemplation perform in accordance with the provisions of the
of PRMG. PRMG will take reasonable steps to agreement. Termination of the agreement is
mitigate the impact of any force majeure. accomplished by 15 days pnor written notice from the
party initiating termination to the other. Notice of
- termination shall be delivered by certified mail with
receipt for delivery returned to the sender
XIII. NO BENEFIT FOR THIRD PARTIES
The services to be performed by PRMG hereunder are This agreement may be terminated by PRMG a) for
intended solely for the benefit of Client, and neither cause, if Client breaches this Agreement through no
right nor benefit is conferred on, nor any contractual fault of PRMG and Client neither cures such material
relationship intended or established with any person or breach nor makes reasonable progress toward cure
within 15 days after PRMG has given written notice
entity not a party to this Agreement No such person of the alleged breach to Client, or b) upon five days
or entity shall be entitled to rely on PRMG's notice if Work under this Agreement has been
performance of its services hereunder.
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•
PUBLIC RESOURCES MANAGEMENT GROUP, INC. - ATTACHMENT C
STANDARD TERMS AND CONDITIONS ,
suspended by either Client or PRMG in the aggregate ,
for more than mnety (90) days ,
In the event of termination, by Client without cause
and with prior written request by Client, PRMG shall
perform such additional Work as is necessary for the
orderly filing of documents and closing of the project
The time spent on such additional Work shall not L
exceed five percent (5 %) of the time expended on the - .
terminated portion of the project prior to the effective
date of termination. PRMG shall be compensated by ,
the client for Work actually performed prior to the
effective date of termination plus the Work required
for filing and closing as descnbed m this Article as _
authorized by Client ,
' XVII. MEDIATION ,
Prior to mitiatmg any proceeding of any kind to _
enforce any claim, dispute or question between the
parties, each party agrees to participate m non - binding
mediation with a mediator as agreed upon by the
parties The cost of the mediation shall be bourne
- equally by both parties and shall be conducted in Lake
County, Florida. ,
XVIII NOTICES
All notices required under this Agreement shall be by
personal delivery, facsimile or mail to the PRMG
Project Manger and , to the person signing the
Agreement on behalf of the Client, and shall be
effective upon delivery to the addressed stated in the .
Agreement.
XVIII PUBLIC RECORDS `
- PRMG acknowledges that Client is subject to
compliance with Florida's Public Records Law and
therefore, PRMG agrees to at all times hereunder -
comply with said law to the extent that any documents ,
created hereunder or related to this Agreement are
public records - ' - -
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