2004-36
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I1lJ) Public Resources Management Group, Inc.
~ Utility, Rate, Financial and Management Consultants
December 3, 2004
Mr. Joseph E. Van Zile
Administrative Services Director
City of Clermont
685 W. Montrose Street
Clermont, Florida 34711
Subject: Proposal to Provide a Utility and Municipal Impact Fee Analysis
Dear Mr. VanZile:
Public Resources Management Group, Inc. (PRMG) is pleased to submit this proposal to provide
financial and rate consulting services to the City of Clermont, Florida (the "City" or "Client")
associated with the development 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
the Water, Wastewater, Police, Fire, and Recreation Impact Fees that are applied to new
development. Based on our discussions, PRMG proposes the following:
PROJECT TEAM AND BILLING RATES
e
With respect to the performance of this engagement, Mr. Henry L. Thomas will be the principal
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. The anticipated schedule for completing the Impact Fee Study shall be no
later than March 31, 2005 unless mutually agreed between the City and PRMG.
COMPENSATION AND BILLING
Based on the Scope of Services as summarized 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 $31,600.
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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, printing 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 montWy for services relative to this
engagement based on the hourly amount of time spent by the project team members, the other
G:\Letters\Clermont 1m pactF eeLetter Agree.doc
341 NORTH MAITLAND AVENUE 0 SUITE 300 0 MAITLAND. FL 32751
TELEPHONE (407) 62H-2600 0 FAX (407) 62X-2610
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. Mr. Joseph E. Van Zile
City of Clermont
December 3, 2004
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 March 31, 2005, 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 90 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.
If this proposal meets the City's needs please let us know and we will finalize an agreement for
the City's authorization. Of course if you have any questions about this proposal or need any
additional information please do not hesitate to give me a call. We appreciate the opportunity to
be of service to the City.
Very truly yours,
Public Resources Management Group, Inc
,(~-- ~
/ ~~omas
Vice President
ACCEPTED BY:
City of Clermont
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ATTACHMENT A
CITY OF CLERMONT, FLORIDA
PREPARATION OF A UTILITY AND MUNICIPAL SERVICES IMPACT FEE STUDY
SCHEDULE OF DIRECT LABOR HOURLY RATES AND STANDARD UNIT COSTS
DIRECT HOURLY RATES
Project Team Title
Principal
Executive Consultant
Associate
Supervising Consultant
Senior Consultant
Rate Consultant
Rate Analyst
Analyst
Assistant Analyst
Clerical and Administration
Direct Labor
Hourly Rate [*]
$135.00
$120.00
$110.00
$ 95.00
$ 85.00
$ 75.00
$ 65.00
$ 55.00
$ 45.00
$ 45.00
[*] Direct labor hourly rates effective through March 31, 2005; rates will
be adjusted by five percent (5%) annually for invoices rendered after
April 1 of each year thereafter until project completion or as mutually
agreed between parties.
OTHER DIRECT COSTS - STANDARD RATES
Expense Description
Mileage Allowance - Personal Car Use Only
Reproduction (black and white)
Reproduction (color)
Reproduction (contracted)
Computer Time
Telephone Charges
Delivery Charges
Lodging/Other Travel Costs
Meals (Business Travel only)
Sub-consultant Services
Other Costs for Services Rendered
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Standard Unit Direct
Cost Rater*]
$0.33 per mile
$0.10 per page
$0.50 per page
Actual Cost
$0.00 per hour
Actual Cost
Actual Cost
Actual Cost
Not to exceed per
PRMG Employee:
$6.00 - Breakfast
$10.00-Lunch
$20.00 - Dinner
Actual Cost plus 5.0%
Actual Cost
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ATTACHMENT B
CITY OF CLERMONT, FLORIDA
PREPARATION OF A UTILITY AND MUNICIPAL SERVICES IMPACT FEE STUDY
SCOPE OF SERVICES
The scope of services to be performed by PRMG with respect to 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 in order to complete the Impact Fee
Study. The data request will be segregated by type of impact 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; iii) an inventory of recreation open space and the amount of
recreational facilities currently in service including the number and types of City owned
recreational facilities; iv) fixed asset data for the water and wastewater systems by
service area, as appropriate; v) population and development statistics; vi) service call
(response) information for police and fire protection functions; vii) anticipated capital
expenditures or capital improvement programs for each municipal service functions; viii)
inventory of existing water and wastewater facilities as it relates to capacity availability
and utilization, ix) comprehensive planning documents; x) any information regarding
adopted level of service standards or level of service standards currently in effect; and
xi) other data and information considered necessary to adequately perform the study.
PRMG will also gather data regarding the level of fees currently charged by neighboring
communities.
2.
Attendance of Kick-of! Meeting - PRMG 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 compilation of information by the
City such that a review of such information can also be accomplished.
Municipal Service Impact Fees:
1. Municipal Service Area Forecast - This task will include a review of service area
demographics including any forecasts of the service area population and development
activity based on data made available to PRMG. Specifically, the population forecast
along with anticipated development by type of dwelling unit (e.g., single-family, multi-
family, etc.) and commercial development by land use type, if available (including the
square footage of such developments located within the City and planned for the City),
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will be reviewed. 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 Bureau of Economic and
Business Research, University of Florida; data made available by the Lake County
Planning Department; and other such information will be relied upon. The purpose of
this task is to identify the future service area demands for municipal services.
2.
Cost Allocation - The capital costs associated with providing the municipal service
requirements for new customers will be identified in conjunction with 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 and development
characteristics of the City, service area response characteristics for police and fire
protection, and other factors as deemed appropriate by PRMG and the City.
3.
Determination of Level of Service Standards - Based on available information, PRMG
will work with staff to identify the service (LOS) standards required for each municipal
service. These standards should be consistent with the City's current Comprehensive
Plan submitted to the Department of Community Affairs, where applicable as well as
staffing required to provide services.
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
structure that is currently in effect unless it is determined between the City and PRMG
that such application structure should be modified (determined during information
gathering phase of project). The Municipal Services Impact Fees will be based on the
capital needs allocable to future growth associated with each municipal service function,
the allocation of such costs among the relevant customer classifications, and the level of
service standards required for each specific municipal function. Additionally, PRMG
will identify any external funding or credits that should be recognized in the derivation of
the impact fees. The recognition of any external funding or capital credits will recognize
alternative funding scenarios as identified in conjunction with the City.
Utility Service Impact Fees:
1. Determination of Level of Service Standards - Based on information collected and the
results of detailed interviews of key staff members, PRMG will identify the level of
service (LOS) standards consistent with the City's current operating criteria, industry
standards, and other factors.
2.
Equivalent Residential Connection (ERC) and Facility Use Characteristics - Based on
the determination of the level of service standards that the City has adopted or should
maintain, an analysis of the City's existing and projected ERC requirements will be
conducted. Additionally, the analysis will evaluate water and wastewater capacity (both
utilized, reserved, and anticipated) by specific service area (East System and West
System for the water system) to determine the total system capacity per ERC, the
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remaining capacity per ERC of facilities currently in service, and the additional capacity
to be added to the utility service area. This analysis will include a review of current fixed
assets and is necessary to evaluate the capacity utilization of the water and wastewater
facilities (from both an existing and prospective capital facility standpoint).
3.
Design of Utility Services Impact Fee - Based on the LOS standards and facilities use
projections, the PRMG will develop Utility Impact Fees for water and wastewater service
by specific impact fee or service area zone for the City. 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 contribution to need
based on capital facility burden imposed on the City by new development. This task will
include the following:
e
Review the City's Current Utility Impact Fee Application Methodology;
II
Development of basis for Utility Impact Fee determination (needs versus
standards driven);
f>
Perform an analysis of existing facility costs and incremental costs to provide
utility service to future service area needs or build-out population;
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Conduct an evaluation of system capacity relationships for existing and
incremental plant additions;
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Develop billing classification and equivalent residential unit requirements, as
applicable; and
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Design base 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.
5.
Cost Recovery Comparison - PRMG will compare the amount of impacts to be recovered
from the anticipated growth of the City with the City's capital improvement plan (CIP)
(expansion-related capital) to identify the net funding opportunities associated with the
CIP and to evaluate the reasonableness of the fees when compared to the anticipated
expenditure requirements of the City for each municipal function and to identify any
potential capital funding issues for disclosure to the City.
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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. This scope of service assumes that a single report documenting the impact
fee derivation for each respective Municipal Service and Utility Service will be prepared.
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 five (5) meetings with the City in order to prepare the report
regarding the municipal impact fees. A summary of the meetings is shown below.
Description
Data Acquisition and Interview(s) of Appropriate City Staff
Additional Data Review and Initial Presentation of Analysis to City
Staff
Attendance of Staff Review Meeting ofImpact Fee Analysis/Report
Attendance of Public Hearing before City Commission
Total Number of Meetings
Number of
Meetings
1
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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.
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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.
Performance of impact fee negotiations and the preparation of developer agreements for
the payment of such impact fees with potential large developments within the City limits.
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.
STANDARD TERMS AND CONDITIONS
ATTACHMENT C
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I.
SCOPE
Public Resources Management Group, Inc.
(PRMG) agrees to perform the utility consulting
services described in the agreement that
incorporates these standard terms and conditions.
Unless modified in writing by the parties hereto,
the duties of PRMG shall not be construed to
exceed those services specifically set forth in the
agreement.
II.
COMPENSA nON
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As a condition precedent to receiving payment,
PRMG shall have been authorized to proceed by
Client, shall not be in default of any ofthe terms
and conditions of this Agreement, and shall
provide to Client an invoice. The invoice shall
include a statement of specific services rendered
during the applicable billing period and the
representatives of PRMG who performed said
services. Additionally, each invoice shall include
the following statement by PRMG: This invoice
sets forth only actual time spent by PRMG's
employees and does not contain any unit billing,
multipliers, or other devices that permit payment
for more than actual time spent. The Client, as
defined in the agreement, unless such invoice is
disputed in writing by Client, agrees to pay for
the services as billed within thirty (30) days of
receiving the invoice. Undisputed amounts paid
after thirty (30) days may be subject to interest
charges.
Time-related charges will be made in accordance
with the billing rate referenced in the agreement.
Other indirect expenses and subcontractor
services, if any, will be billed in accordance with
the standard unit cost rates as referenced in. the
agreement or if no reference is provided, at cost.
III.
RESPONSffiILITY
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PRMG is employed to render a professional
service only, and any payments made by Client
are compensation solely for such services
rendered and recommendations made in carrying
out the work. PRMG shall perform analyses,
provide opinions, make factual presentations, and
provide professional advice and
recommendations.
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IV.
INDEMNIFICA nON
PRMG agrees to indemnity, defend, and hold
Client harmless from and against any liability
arising out of the negligent errors or negligent
omissions of PRMG, its agents, employees, or
representatives, in the performance of duties set
forth in Article I.
V.
INSURANCE
PRMG shall maintain during the life of the
agreement the following minimum insurance:
1. Comprehensive general liability insurance,
including personal injury liability, blanket
contractual liability, and broad form property
damage liability. The combined single limit
for bodily injury and property damage shall
be not less than $1,000,000.
2. Automobile bodily injury and property
damage liability insurance covering owned,
non-owned, rented, and hired cars. The
combined single limit for bodily injury and
property damage shall be not less than
$1,000,000.
3. Statutory worker's compensation and
employers' liability insurance as required by
state law.
4. Professional liability insurance.
VI.
ASSIGNMENT
These terms and conditions and the agreement to
which they are attached are binding on the heirs,
successors, and assigns of the parties hereto.
This agreement may not be assigned by Client or
PRMG without prior, written consent of the
other.
VII.
INTEGRATION
These terms and conditions and the agreement to
which they are attached represent the entire
understanding of Client and PRMG as to those
matters contained herein. No prior oral or
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. . '. PUBLIC RESOURCES MANAGEMENT GROUP, INC.
STANDARD TERMS AND CONDITIONS
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ATTACHMENT C
written understanding shall be of any force or
effect with respect to those matters covered
herein. The agreement may not be modified or
altered except in writing signed by both parties.
VIII.
JURISDICTION
This agreement shall be administered and
interpreted under the laws of the State of Florida.
Jurisdiction of litigation arising from the
agreement shall be in Lake County, Florida. If
any part of the agreement is found to be in
conflict with applicable laws, such part shall be
inoperative, null and void insofar as it is in
conflict with said laws, but the remainder of the
agreement shall be in full force and effect.
IX.
SUSPENSION OF WORK
Client may suspend, in writing, all or a portion of
the work under the agreement in the event
unforeseen circumstances beyond Client's control
make normal progress of the work impossible.
PRMG may request that the work be suspended
by notifying Client, in writing, of circumstances
that are interfering with the normal progress of
work. PRMG may suspend work on the project
in the event Client does not pay invoices when
due. The time for completion of the work shall
be extended by the number of days work is
suspended. In the event that the period of
suspension exceeds 90 days, the terms of the
agreement are subject to renegotiation and both
parties are granted the option to terminate ,work
on the suspended portion of the project; in
accordance with Article VIII.
x.
TERMINATION OF WORK
Client may terminate all or a portion of the work
covered by the agreement for its convenience.
Either party may terminate work if the other
party fails to perform in accordance with the
provisions of the agreement. Termination of the
agreement is accomplished by 15 days prior
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.
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In the event of termination, 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 exceed 5 percent of the time expended
on the terminated portion of the project prior to
the effective date oftermination. PRMG shall be
compensated for work actually performed prior
to the effective date of termination plus the work
required for filing and closing as described in this
Article.
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