1999-55
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I'RINCIPAI.5:
HARTMAN & ASSOCIATES, INC.
James E. Christopher, I~E.
Charles W. Drake, P.G.
Gerdld C. Hartman, P.E.
Mark I. Luke, P.S.M.
MarkA. Rynning, P.E.
H"",ld E. Schmidt,Jr. I~E.
William D. Musser, I~E.
engineers, hydrogeologists, surveyors & management consultants
ASSOCIATES:
C. 7.acharr Fuller, P.E.
"':lfCU H. Rocca, C.M.C.
J. Richard Voorhecs, I~E.
Douglas P. Dufresne, I~G.
Roderick K. Cashe, P.E.
Jon D.Fox,P.E.
James E. Golden,I~G.
Troy E. La)'ton, P.E.
Alicia E.Ollcr,M.S.
And"..w'[ Woudcock, P.E.
l.awJ:;~~~I;l~~I~~:~'i:;~i~:
Dar)"1 C. Walk.I~E.
SENIOR ASSOCIATES:
August 18, 1999
HAl #99-335,MK
Mr, Joseph E. VanZile
Director of Finance
City of Clermont
P,O. Box 120219
Clermont, Florida 34712-0219
Subject:
Financial Feasibility Report
Dear Mr, VanZile:
We are pleased to submit the following proposal for professional services in connection with the
preparation of a financial feasibility report, (the "Report"), for use by the City of Clermont in an
Official Statement associated with the issuance of utility system revenue bonds. Hartman &
Associates, Inc. (HAl), hereinafter referred to as the "Consultant," proposes to furnish
professional services for the City of Clermont, hereinafter referred to as the "City" for the scope
outlined below for the fees stipulated herein,
Scope of Services
A. Data Acquisition:
1. Customer, Operating and Financial Data - The Consultant will request and obtain detailed
data regarding: (i) the most recent historical operating results of the utility; (ii) customers
and related statistical usage data; (iii) current and proposed budgets; (iv) proposed debt
refunding and capital improvement needs; (v) existing, revised and proposed contracts,
agreements, ordinances, resolutions and any other docmnent which has an affect on the
utility system; and (vi) other related information which is pertinent for developing a financial
feasibility report.
2. Descriptions of the Water and Wastewater Facilities and Operations - The Consultant will
request and obtain from the City descriptions of the existing utility facilities, including but
not limited to, the water supply, treatment, storage, transmission and distribution, and the
wastewater collection, transmission, treatment and effluent disposal facilities, Information
201 EAST PINE STREET. SUITE 1000 . ORLANDO, FL 3280]
TELEPHONE (407) 839-3955 . FAX (407) 839-3790' www.consulthaLcom
ORLANDO
FORT MYERS
PLANTATION
JACKSONVILLE
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Mr. Joseph E. VanZile
August 18, 1999
Page 2
provided by the City's engineer shall include permitting and regulatory issues and condition
of the facilities.
3. Capital Improvement Program (CIP) - The Consultant will request and obtain from the City
description of the projects and anticipated CIP to be funded by this bond program,
It is the Consultant's understanding that the City can provide detailed customer data regarding
the number of customers by location and class, total and average usage by location and class, and
revenues by location and class,
B. Analysis and Development of Feasibility:
I. Customer Forecast - The Consultant will develop a five-year projection of the water and
sewer customers. Such forecast will be based on historic activity provided by the City,
current ongoing events, and the Consultant's experience with similar utilities,
2. Preparation of Historical Operating Results - The Consultant will develop a statement of
historical revenues and expenses as provided from the audited financial statements of the
City.
3. Preparation of Operating Result Projections - The Consultant will develop five-year
projections of Water and Wastewater Financial Operating Results per the existing rates and
expenses for the combined East and West utility systems. Such projections will be prepared
consistent with the flow of funds proposed for the new bond resolution, information provided
by others (e.g., debt service schedules, increases in operating costs as a result of CIP, etc.),
and assumptions developed for such projections.
C. Draft Report and Final Report:
1. Preparation of Preliminary Draft Report - The Consultant will prepare a preliminary draft
report with descriptions of utility facilities, management, capital improvements, operations,
financial results, assumptions and conclusions. Included will be the determination of
projected debt service coverage compliance based on the projected operating results, The
preliminary draft report will be provided to the City for distribution to other financing team
members for review and comments,
2, Finalization of Preliminary Draft Report - The Consultant will meet with the City and
members of the financing team to review and discuss the preliminary draft report. Pursuant
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Mr. Joseph E. VanZile
August 18, 1999
Page 3
to the comments received by the City and other members of the financing team, the
Consultant will prepare and provide 20 copies of a Draft Report for use by the City,
3, Final Report - Upon direction from the City, the Consultant will prepare the final report for
inclusion in the Official Statement.
D. Other Directly Related Activities:
1, Document Reviews and Comments - The Consultant will review and comment on certain
documents associated with the issuance of the bonds, including but not limited to, bond
resolution, preliminary official statement, closing statements and other related items,
2, Preparation of Closing Certificate - As part of the bond closing activities, a certificate will be
prepared in accordance with the requirements of the sale and bond purchase agreement.
3. Client and Activity Coordination - Included are up to three (3) meetings and/or conference
calls with the City and financial team for such purposes as to acquire data, discuss direction
of the project and to review the results of the project prior to finalization of the project.
4. Additional Services - The above services contemplate the preparation of a feasibility report
for the purpose of debt issuance, Such scope does not include activities associated with
assisting the City and others in the financing team with obtaining credit rating, bond
insurance and other like financial items. In addition, it is anticipated that the City can
provide customer, financial and operating data in a form a format representative of the time
periods and condition of the utility. In the event that rating assistance and/or on-site
assembly is necessary, the Consultant will provide other management consulting services as
desired for ratings or other related purposes on an as-requested/as-needed basis. Such
services can include but are not limited to, specific requests related to: assistance in
obtaining customer, financial, operating or other needed data; separate analysis for
investment banking and or financial advisor needs; rating documentation other than
contained in the draft report; rating presentations and travel, user rate and charge structure
modifications or rate adjustments, etc. Additional services will be provided only through
separate authorization by the City's representative,
Items To Be Furnished At No Expense to the Consultant
Assist Consultant by furnishing, at no cost to the Consultant, all available pertinent information
including previous reports, financial statements, budgets, cost estimates, customer data and any
other data relative to performance of the above services for the project. It is agreed and
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Mr. Joseph E. VanZile
August 18, 1999
Page 4
understood that the accuracy and veracity of said information and data may be relied upon by
Consultant without independent verification of the same.
Time of Performance
Items A through C 2 of the Scope of Services will be completed within sixty (60) calendar days
after receipt of Notice to Proceed, except for delays beyond the reasonable control of the
Consultant. Said representation is not, however, a warranty or guarantee that said services will
be completed within such time frame.
Items C 3 and D of the Scope of Services will be completed as mutually agreed, on an as-needed
basis following authorization by the City's representative.
Fees to be Paid
For Items A throught D 3 of the Scope of Services, the Consultant shall be paid a lump sum fee
including reimbursable expenses of Twenty Thousand Dollars ($20,000,00).
For Item D 4 of the Scope of Services, the Consultant shall be paid a fee based upon the attached
Rate Schedule (See Attachment A), plus reimbursable expenses.
Invoices for services rendered are prepared monthly and are due and payable within thirty (30)
days from date of the invoice. Past due statements shall include interest from the date of invoice
at a compound interest rate of one and one-half (1-1/2%) percent per month.
City agrees to pay such invoice within the time frame specified in Section 218.70, et seq" Florida
Statutes, the 'Florida Prompt Payment Act'.
The laws of the State of Florida shall govern this contract, and the appropriate venue for any
actions arising out of the agreement would be Orlando, Florida,
Termination
Either party may terminate this Agreement by giving ten (10) days advance written notice, The
Consultant shall be paid for services rendered to the date of termination on the basis of a
reasonable estimate of the portion of services completed prior to termination, and shall be paid
for all reasonable expenses resulting from such termination and for any unpaid reimbursable
expenses.
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Mr. Joseph E. VanZile
August 18, 1999
Page 5
Acceptance
Acceptance of this proposal may be indicated by the signature of a duly authorized official of the
City in the space provided below. One signed copy of this proposal returned to the Consultant
will serve as an Agreement between the two parties and as Notice to Proceed. This contract will
be binding on the parties hereto and parties' successors and assigns. Should this proposal not be
accepted within a period of forty-five (45) days from the above date, it shall become null and
void.
Very truly yours,
Hartman & Associates, Inc.
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Marco H. Rocca, CMC
Sr. Associate
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Witness v
Accepted by:
City of Clermont
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Witness v
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Authorized Signature
HAROLD TURVILLE, JR.s Mayor
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Date'
Witness
MHR/I ralj ev IF inan ce/ C 1 erm/B 0 n dRepo rt. m h r
Attachment
cc: Ada Terrero, HAl
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Attachment "A"
HARTMAN & ASSOCIATES, INC.
HOURLY RATE SCHEDULE
G .C, Hartman
Principals
Division Manager
Senior Manager
Senior Project Manager
Engineer VIIIlHydrogeologist VIII
Engineer VIIlHydrogeologist VII
Engineer VIlHydrogeologist VI
Engineer V lHydrogeologist V
Engineer IV lHydrogeologist IV
Engineer IIIIHydrogeologist III
Engineer IIIIIHydrogeologist 1111
Senior Scientist
Scientist IV
Scientist III
Scientist 1111
Science Technician II
Science Technician I
Senior Management Consultant
Management Consultant
Senior Rate Analyst
Rate Analyst
Senior Inspector
Inspector
Senior GIS Analyst
GIS Analyst
Engineering Designer IV
Engineering Designer III
Engineering Designer II
EngineeringlHydrogeologist Technician IV
EngineeringlHydrogeologist Technician III
EngineeringlHydrogeologist Technician II
EngineeringlHydrogeologist Technician I
Graphics Manager
Graphics Technician
Professional Land SurveyorlMapper
Surveying Technician III
Surveying Technician II
Surveying Technician I
Administrative Assistant
Senior Word Processor
Word Processor
Secretarial Support
Reproduction/Courier Support
$175,00
$130,00
$100.00
$115.00
$90.00
$110,00
$95.00
$85.00
$75.00
$65.00
$55.00
$50.00
$85.00
$65,00
$55.00
$50.00
$40,00
$35.00
$90.00
$70.00
$75.00
$50.00
$55,00
$45.00
$60,00
$45.00
$70.00
$65.00
$60,00
$55.00
$50.00
$45.00
$40.00
$55.00
$40,00
$65.00
$55,00
$45.00
$35.00
$50.00
$45.00
$35.00
$35,00
$25,00
Effective Date: July 8, 1999
(Hourly rates are reviewed annually and may be adjusted to reflect changes in the various elements that
comprise them.)
IIW ord procl1999199-O00 .mklhourly -rateJ 4 Hrly Rte