1173-Stormwater Rate StudyPit L 1114; --J
Public Resources
Utility, Rate, Financial and Management Colisultants
, ment Group; Inc.
May 22, 2007
Ms. Amy McLean
Budget Director
City of Sanford
300 N. Park Avenue
Sanford, FL 32771
Subject: Work Order No. 02 -2007 for Stormwater Rate Study
The City of Sanford (the "City ") has requested that Public Resources Management Group, Inc.
(PRMG) perform a stormwater rate study on behalf of the City's stormwater system. Attached
are two (2) copies of a work order, signed by PRMG, to perform this stormwater rate study. If
this work order is acceptable, please have both copies signed by the appropriate City
representative. Please return one fully signed copy to PRMG for our files.
We appreciate this opportunity to continue providing professional services to the City of
Sanford.
Very truly yours,
Public Resources Management Group, Inc.
Anthony Hairston
Supervising Consultant
Attachment
KA1095\ Work Order No. 01- 2006.doc
341 NORTH MAITLAND AVENUE — SUITE 300 — MAITLAND, FL 32751
TEL: (407) 628 -2600 • FAX: (407) 628 -2610 • EMAIL: prmgiu prmginc.com
CITY OF SANFORD
WORK ORDER TO
PUBLIC RESOURCES MANAGEMENT GROUP, INC.
FOR
UTILITY FINANCIAL CONSULTING SERVICES
WORK ORDER NO. 02-2007
This Work Order, when executed, shall be incorporated in and shall become an integral part of
the Master Agreement dated July 14, 2005 between the City of Sanford (the "City ") and Public
Resources Management Group, Inc. (PRMG)
Project Title: Stormwater Rate Study
Project Description: Prepare Stormwater System financial forecast and rate study.
Scope of Services: See Exhibit A
Project Cost/Budget: Not -to- exceed $14,900
PRMG Principal: Henry L. Thomas
PRMG Project Mgr.: Anthony D. Hairston
Project Schedule: Reference Delivery Schedule Exhibit A, page A -2
Method of Invoice: Hourly rate method; guaranteed maximum price (not to exceed)
PRMG Project No. 1095 -12
Work Order Approval:
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KA1095\ Work Order No. 01- 2006.doe
EXHIBIT A
CITY OF SANFORD
STORMWATER RATE STUDY
WORK ORDER NO. 02-2007
SCOPE OF SERVICES
This Work Order is made part of the Master Agreement, dated July 14, 2005, between the City of
Sanford (the "City ") and Public Resources Management Group, Inc. (PRMG). The consulting
services provided under this Work Order will include, among other items, services associated
with preparing a Stormwater System financial forecast and rate study.
Based on the scope of services as summarized below and the direct hourly labor billing rates as
shown on Attachment A to the Master Agreement, the not -to- exceed budget of this Work Order
is $14,900.
The scope of services to be provided by Public Resources Management Group, Inc. (PRMG)
related to this Work Order are summarized below by task:
I. Data Request and Data Gathering - PRMG will prepare a data request for statistical and
financial information to be compiled by the City. Data that will be requested includes:
i) historical customer statistical data; ii) planned capital improvements; iii) utility
ordinances, rules, and procedures; iv) previous studies of the City's stormwater system;
and v) other information as deemed necessary by PRMG to adequately complete the
study.
2. Development of Customer and Revenue Forecast — Based on information provided by the
City and the analysis of historical trends, PRMG will develop a forecast of customer
account and growth by class under existing rates for up to a ten year period. This forecast
will be at least a five -year period but may be less than ten years if the City's capital plan
is not developed for this horizon. The customer forecast will be developed by customer
class (i.e., residential, commercial, etc.) to the extent of data availability to assist in the
calculation of utility rate revenues for the evaluation of the financial needs of the utility
system.
3. Development of Projected Revenue Requirements and Proposed Rate Adjustments
(Financial Forecast) - PRMG will prepare a forecast of the City's stormwater system net
revenue requirements for the same forecast period outlined in Task 2 above. The net
revenue requirement includes projected operating expenses for the stormwater system.
This forecast will also include a funding projection for stormwater capital improvements
and capital equipment replacement. Based on the net revenue requirements identified,
rate adjustments will be projected during the forecast period. The proposed rate
adjustments will reflect:
KA1095\ Work Order No. 01- 2006.doc A -1
City of Sanford
Scope of Services
EXHIBIT A
• Continuation of monthly stormwater billing through the City's utility billing system.
• No implementation of a stormwater non -ad valorem assessment.
• No analysis or implementation of impervious surface area by individual customer.
4. Comparisons - PRMG will survey other neighboring municipalities and provide a
comparison of stormwater fees. The comparisons will include both residential and
commercial customer classes. The commercial comparisons will include a sample of
various sized commercial development. The rates of other municipalities will be
compared with both the City's existing and the proposed stormwater rates.
5. Report Preparation — PRMG will prepare a letter report delineating the analyses,
assumptions and recommendations reached with respect to the sufficiency of the existing
rates and the design of proposed rates for the forecast period. The rate study report will
be provided to the City in draft form for comment with the final report being delivered to
the City Commission for their consideration and approval.
6. Meetings — PRMG will to two (2) working meetings with the City staff. In addition,
PRMG will attend up to two (2) public meetings to present the stormwater rate
recommendations to the City Commission for approval.
LIST OF DELIVERABLES
The deliverables to be provided in this engagement include the following items:
• Data Request
• Five -Year Stormwater System Financial Forecast
• Proposed Stormwater Rate Adjustments
• Rate Comparison with Other Jurisdictions
• Rate Study Report
• Briefing Document for Presentation to City Commission
The financial forecast and proposed rates will be finalized by August 31, 2007, subject to data
availability.
ADDITIONAL SERVICES
During the course of this study, the City may request that PRMG perform additional services that
would extend beyond the budget set forth in this Work Order. The following is an example of
additional services that PRMG considers being in addition to what is described in the above of
services:
1. Measurement of impervious surface area statistics on a system -wide or individual basis.
KA1095\ Work Order No. 01- 2006.doc A -2
City of Sanford
Scope of Services
EXHIBIT A
2. Analysis supporting implementation of a non -ad valorem assessment method of billing
Stormwater System charges.
3. Attendance of meetings in addition to what is referenced in this scope of services.
4. Preparation of reports or any additional analysis related to the issuance of Stormwater
System revenue bonds or other debt issuance (e.g. SRF loan capital finance plan).
5. Third party presentations related to litigation, expert witness services, and similar
services.
6. Performance of modifications to the rate study analysis due to the receipt of new
information after substantial completion or due to delays in the project schedule that is
not due to PRMG.
TERMS AND CONDITIONS
Standard terms and conditions, that are made part of this Work Order, are set forth in the Master
Agreement dated July 14, 2005.
K: \1095\ Work Order No. 01- 2006.doc A-3