2017-33 III it Public Resources Management Group, Inc.
', Utility, Rate, Financial and Management Consultants
February 1, 2017
Mr. Joseph E. Van Zile, CPA, CGFO
Finance Director
City of Clermont
685 W. Montrose Street
Clermont, Florida 34711
Subject: Agreement to Provide Additional Services to Update the Water, Wastewater,
Stormwater and Sanitation Utility Rate Study
Dear Mr. Van Zile:
Public Resources Management Group, Inc. (PRMG) is pleased to submit this proposal to provide
additional consulting services to update the utility rate study for the City of Clermont, Florida
(the "City" or "Client"), which was substantially completed on August 31, 2016. The original
agreement to perform the rate study was dated February 26, 2016 and included a not-to-exceed
budget of $49,800. Based on discussions with City staff, additional services are requested to
update the study results for subsequent events that have occurred since the project was
substantially completed. Based on the description of additional services as discussed in more
detail below, we propose to increase the total project costs for additional services by $14,962 as
shown in Attachment A. If approved, this amount would increase the total project cost to
$64,762.
SCOPE OF SERVICES
The scope of additional services to be performed by PRMG is shown in the proposed cost
estimate or Attachment A following this letter. The additional services include the following
tasks as approved by City staff: 1) update the financial forecast for the year-ending FY 16 actual
financial results; 2) update the financial projections based on the Adopted FY 17 Operating and
Capital Budgets; 3) expand the study period to include the five (5) fiscal years ending FY18
through FY22; 4) evaluate up to five (5) capital financing scenarios and debt alternatives as
provided by the City's Financial Advisor; and 5) additional meetings as may be necessary to
review and finalize the updated results. Please refer to Attachment A.
PROJECT TEAM AND BILLING RATES
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 terms of the original
contract dated February 26, 2016.
K:\1179.City of Clermont\03.Wtr WW Stormwtr Sanit Rate Study\Correspondence\Contract Related\Clermont Additional Services Agreement.docx
341 NOR]'I-I MAITLAND AVENUE- SUITE 300 - MAITLAND. FL 32751
TELEPHONE(407)628-2600 - FAX (407)628-26I0 EMAIL prmg@prniginc.com
Mr. Van Zile
City of Clermont
February 1, 2017
Page 2
COMPENSATION AND BILLING
Based on the Scope of Services as summarized above and in Attachment A, we propose to
increase the total project costs for additional services by $14,962. If approved, this amount
would increase the total project cost to $64,762. A summary of the cost proposal is summarized
below:
Description Amount
Original Budget $49,800.00
Amount Billed $44,942.14
Existing Budget Remaining[*] $4,857.86
Proposed Addendum $14,962.00
Revised Budget $64,762.00
Amount Available $19,819.86
[*]As of Invoice 9506 dated Sep.29,2016 for the
period ending August 31,2016.
If approved, the total amount available of$19,819.86, which includes the amount available as of
August 31, 2016, should be adequate to support the requested tasks shown in Attachment A.
TERMS AND CONDITIONS
The terms and conditions of this proposed addendum are set forth in the original agreement dated
February 26,2016.
We appreciate the opportunity to submit this agreement to provide additional 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.
)201
Henry L. homas
Vice President
ACCEPTED BY:
City of Clermont
Name
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Title L/ Date
K:\1179.City of Clermont\03.Wtr WW Stormwtr Sanit Rate Study\Correspondence\Contract Related\Clermont Additional Services Agreement.docx
Attachment A
City of Clermont,Florida
Cost Estimate for Water.Wastewater Stormwater and Sanitation Utility Rate Study-Summary of Additional Services
Line Rate Rate
No. Principal Associate Consultant Analysts Administrative Totals
Direct Labor Rates $ 185.00 $ 150.00 $ 105.00 S 75.00 $ 55.00
Remaining Tasks-Original Rate Study Scope of Services
I Preparation of Final Briefing Document&Study Report Summarizing the Results 2 4 12 8 8 34
2 Attendance of Two(2)Public Hearings 4 4 - - - 8
3 Project Management 1 - - - 2 3
4 Total Hours 7 8 12 8 10 45
5 Sub-total Remaining Tasks-Original Rate Study Scope of Services $ 1,295 $ 1,200 $ 1,260 $ 600 $ 550 $ 4,905
Proposed Additional Services
6 Staff Meeting to Review Draft Results as of August 31,2016(Held 0127/2017) 3 3 3 - - 9
7 Update Financial Forecasts for FY 16 Actual Operating&Capital Results I 4 14 - - 19
8 Update Financial Forecasts for Final Adopted FY I7 Operating&Capital Budgets I 4 6 - - I I
Expand Financial Forecast Study Period and Evaluation of Projected Revenue Sufficiency -
9 Development of Projected Revenue Requirements - 4 6 - - 10
10 Evaluate Funding for Capital Improvements&Flow of Funds Analysis - 2 4 - - 6
I I Rate Covenant/Fiscal Policy Compliance Analysis 2 2 2 - - 6
12 Development Capital Financing Scenarios&Evaluate Debt Alternatives 2 4 8 - - 14
13 Update Utility Rate Comparisons with Neighboring Utility Systems - 2 4 12 - 18
Presentation of Study Results -
14 Teleconference and WebEx to Review Updated Results 2 2 2 - - 6
15 One(I)Contingent On-site Staff Meeting to Review Final Presentation 3 3 3 - - 9
16 All Other Tasks Included in Original Study Scope(Lines 1 and 2 Above) - - - - - -
17 Project Management 6 - - - 1 7
18 Total Hours 20 30 52 12 1 115
19 Sub-total Proposed Additional Services _$ 3,700 $ 4,500 _$ 5,460 $ 900 $ 55 S 14,615
Other Direct Costs
20 Mileage and Tolls-3 Trips $ 150
21 Allowance For Copy,Presentation,and Report Preparation 100
22 Allowance for Telephone,Delivery,and Other Project Costs 50
23 Total Other Direct Costs $ 300
24 Total Estimated Project Cost $ 19,820.00
25 Less Fee Remaining in Budget(As of Invoice 9506 on September 29,2016) 4,857.86
26 Total Proposed Additional Services(Rounded) 5 14,962.00
27 Original Contract Fee $ 49,800.00
28 Total Proposed Cost of Original Study and Update 5 64,762.00