Loading...
1999-55 ;;. I . .~ 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 I . 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 I . 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 I . 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. I . 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. ~m~ ~- Marco H. Rocca, CMC Sr. Associate ~u~v Witness v Accepted by: City of Clermont ¡lll(h~~ J md'/~ Witness v ~ Authorized Signature HAROLD TURVILLE, JR.s Mayor ~tJða~ 9- 02:7-5'7> 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 I . 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