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301-CPH-Amendment 34 AMENDMENT NO. TO AGREEMENT FOR CONTINUING ENGINEERING SERVICES FOR UTILITY STRATEGIC BUSINESS PLAN BE'I'VVEEN THE CITY OF SANFORD, FLORIDA AND CPH ENGINEERS, INC. This Amendment No,,~r dated t,ht~S~Z/~ day of''J~'~'/'/L/~, , 1999, tO an Agreement previously entered into on the 17 day of December 198~'and between the CITY of SANFORD, Florida, hereinafter referred to as the OWNER or CITY, and Conkiln, Porter and Holmes, Engineers, Inc., hereinafter referred to as the ENGINEER or CPH, is mutually agreed upon and declared an extension of the original Agreement dated December 17th, 1987, and entitled "Agreement for Continuing Engineering Services." It is the intent of this Amendment to provide for the development of a Utility Strategic Business Plan for the City of Sanford. The project shall include a four phase approach which will include establishing a Utility Advisory Committee, defining the operating philosophy of the utility, evaluating the performance of the utility based on that philosophy, and developing a summary report and action plan. In the event of a conflict between this Amendment and the Original Agreement dated December 17, 1987, the provisions of this Amendment shall govern the work described herein. Page # ] Revised 02~04~99 SECTION I 1.1 GENERAL The ENGINEER, together with assistance from Public Resources Management Group, Inc. (PRMG), proposes to provide the project work as described in Exhibit A, "Scope of Services - Utility Strategic Business Plan". SECTION II BASIC SERVICES OF THE ENGINEER 2.1 GENERAL The ENGINEER agrees to perform professional services in connection with the project as hereinafter stated in Exhibit A. The ENGINEER will perform the work under the general supervision of a City- established Utility Advisory Committee (UAC), as described in the attached Scope of Services, Exhibit A. The OWNER hereby authorizes the ENGINEER to proceed with Engineering Services as outlined herein. SECTION III ADDITIONAL SERVICES OF THE ENGINEER 3.t GENERAL If authorized in writing by the OWNER, the ENGINEER will furnish or obtain from others additional services of the following types which will be paid for by the OWNER as indicated in Section IV. Additional services due to significant changes in general scope of the Project. Revising previously approved studies, reports, or design documents. Preparing documents for alternate bids required by the OWNER for work which is not executed or not contemplated in the Scope of Work described herein. Additional services resulting from public protests, administrative hearings, or similar matters. Additional services in connection with the Project, including services normally furnished by the OWNER and services not otherwise provided for in this Agreement. Preparing to serve and serving as an expert witness for the OWNER in any litigation or other proceeding involving the Project. Page ¢r2 Revised 02/04/99 SECTION IV THE OWNER'S RESPONSIBILITIES The OWNER will: Provide full information as to his requirements for the project. Designate a person to act as the OWNER's representative with respect to the work to be performed under this Amendment, and such person shall have complete authority to transmit instructions, receive information, interpret and define the OWNER's policies and decisions pertinent to the work covered by this Amendment. Provide and guarantee access to and make all provisions for the ENGINEER to enter upon public and private lands as required for the ENGINEER to perform his work under this Amendment. Examine all studies, reports, sketches, and other documents presented by the ENGINEER and render decisions pertaining thereto within a reasonable time so as not to delay the work of the ENGINEER. Obtain approval of all governmental authorities having jurisdiction over the project, and such approvals and consents from such other individuals or bodies as may be necessary for completion of the project. Furnish or direct the ENGINEER, in writing, to perform at the OWNER's expense, necessary additional services. Provide such legal, accounting, and insurance counseling services as may be required for the project, and such auditing services as the OWNER may require. Give prompt written notice to the ENGINEER whenever the OWNER observes or otherwise becomes aware of any defect in the project. SECTION V PAYMENT 5.1 PAYMENT Principals and Employees of the ENGINEER. Compensation paid to the ENGINEER for services described in Section II shall be computed by multiplying fixed hourly billing rates times hours expended by personnel directly engaged in the project work. Reimbursable expenses such as travel, long distance phone cells, prints, copies, equipment, sub-consultants, transportation and subsistence of principals and employees when traveling in connection with the Project, and similar project-related items will be paid for at actual cost hereof without increase. Page #3 Revised 02/04/99 The ENGINEER agrees to perform the services described in Exhibit A for a not-to- exceed fee of $59,993.00, including subconsultant charges and reimbursed expenses. This fee is further broken down as follows, as depicted in Exhibit B: CPH Engineers, Inc, $28,998.00; Public Resources Management Group, Inc. (PRMG) $30,125.00; Reimbursed expenses, $870.00. Standard hourly billing rates used to determine CPH's portion of the project fee are as follows: Principal $102.00 Project Engineer $95.00 Engineer $78.00 Clerical $45.00 Compensation paid to the ENGINEER for supplementary services described in Section III shall be in accordance with Section 5 above, except the maximum fee shall not apply and shall be negotiated and agreed upon prior to proceeding with the work. The OWNER will make prompt monthly payments in response to the ENGINEER's monthly statements without retention for all categories of services rendered under this Amendment and for reimbursable expenses incurred. Charges for services rendered by principals and employees as witnesses in any litigation hearing or proceeding will be computed at a rate of $1,200.00 per day or any portion thereof (but time spent in preparing to appear in any such litigation, hearing, or proceeding will be computed in accordance with 5.1 above). If this Amendment is terminated during prosecution of the services prior to completion of the services of Section il, payments to be made in accordance with Paragraph 5.1. on account of that and all prior work under this Amendment shall be due and payable, and shall constitute total payment for services rendered. In addition, upon termination, the ENGINEER shall be paid for additional services authorized and rendered under Section III. The ENGINEER will commence work following receipt of an executed copy of this Amendment. SECTION VI GENERAL CONDITIONS The OWNER and the ENGINEER each binds himself and his partners, successors, executors, administrators, and assigns to the other party of this Amendment and to the partners, successors, executors, administrators, and assigns of such other party, in respect to all covenants of this Amendment. Nothing herein shall be construed as creating any personal liability on the part of any officer or agency of any public body which may be a party hereto, nor shall it be construed as giving any rights or benefits hereunder to anyone other than the OWNER and the ENGINEER. Page #4 Revised 02/04/99 IN WITNESS WHEREOF, the parties hereto have made and executed this Amendment the day and year first above written. OWNER: ~ ATTE~'~& SEAL CITY OF S N RD RIDA B on of the ENGINEER: A:%AMEND 33.jms Page #5 EXHIBIT "A" CITY OF SANFORD SCOPE OF SERVICES UTILITY STRATEGIC BUSINESS PLAN Page#6 CITY OF SANFORD SCOPE OF SERVICES UTILITY STRATEGIC BUSINESS PLAN This document outlines the scope of services for the development of a comprehensive utility business plan for City of Sanford (the "City"). The proposed work plan to be performed by Conklin, Porter & Holmes (CPH) and Public Resources Management Group, Inc. (PRMG) collectively, the "project team" will be conducted in a phased approach in order to achieve the City's business objectives. The four phase approach will include establishing a Utility Advisory Committee, defining the operating philosophy of the utility, evaluating the performance of the utility based on that philosophy, developing a summary report and action plan. The development of a Utility Sl~ategic Business Plan (the "Plan") is an important step towards the long-term preservation of reliable, economical water and wastewater service. The challenge for the City in developing the Plan is to identify and anticipate, in a systematic way, the oppommities and difficulties the utility is likely to face in the future and to develop strategies and performance measures to take advantage of those opportunities and mitigate difficulties. The Plan will incorporate decisions regarding the growth of the utility system, enhancement of revenues, evaluation of operations, and utilization of assets to provide the lowest unit cost while meeting the utility's operational and financial objectives. The preparation of the Plan will be performed in a phased approach. A phased approach will enhance in the identification and understanding of the issues by the City and the Project Team and lead to a well executed business plan by placing emphasis on the coordination efforts of the study process and evaluating issues on a step-by-step basis. A key factor in the development of a strategic business plan is obtaining the buy-in of the various stakeholders involved. Stakeholders would include the City Utility Department, the City Finance Department, the City Management, and the customers of the utility. The customers would be represented by an elected official. A good plan that is well understood and accepted by the stakeholders will bring better results to the City and its utility. The major objectives for the preparation of the Plan for the City are as follows: 1. To provide quality water, reclaimed water, and wastewater service to the residents of City of Sanford at the lowest possible cost. 2. To maximize the utilization of the City's water production and trealment and wastewater treatment and reclaimed water facilities. 3. To explore opporttmities for growth and to ensure the financial integrity and strength of the utility. 4. To maintain or place the utility system in a competitive posture in relationship to the cost of operations, rates for service, and the financing of the utility's infrastructure needs. Page#7 5. To achieve equity and fairness in providing utility services and the rates and charges billed for such services to all existing and future customers while promoting desirable growth in the sendee territories. 6. To meet customer expectations as it relates to the value of the services provided by the City. PROJECT PLAN The Plan will be performed in a series of phases in order to develop a program which meets the objectives of the City. The completion of all phases of the project will result in the preparafxon of a utility business plan which will provide i) specific recommendations relative to the operafxons of the system; ii) delineation of measures for subsequent performance evaluation and monitoring of the system; and iii) preparation of a financial forecast to monitor overall system performance. The following is a summary of the tasks and deliverables proposed by the project team to meet the City' s objeetives. The following tasks are associated with these activities: Phase 1- Evaluation of Utility Business Position The first phase of the business planning process is the evaluation of the utility' s current business position to delineate the current financial and business condition of the utility system and to measure utility performance relative to the fundamental business operating philosophy. The development of the business planning process will require close interaction with the City throughout the term. In order to identify short and long term concerns of the utility, we recommend that the City establish a Utility Advisory Committee ("UAC") to assist the project team in the evaluation of the utility business position and identify business principles, operating measures, key performance indicators and assist in data compilation and product review. After initial identification of the key performance indicators and business principles, the evaluation of the current business position will be performed. As shown in Figure 1, this evaluation is conducted under three separate tasks. The first task includes a characterization of the key components of the utility that affects its current and future business position. Concurrently, a financial review of the utility is conducted based upon the operating targets, measures, and performance indicators identified in the first phase. Finally, a business summary will be developed, designed to rank the alignment of utility operations with business principles and operating targets and to layout a preliminary action plan. A summary of the tasks envisioned in the first phase of the program is summarized below, which includes both the establishment of the UAC, data acquisition and the subsequent initial valuation of the utility system. Tasl~ 1.1 - Form Utility Advisory Committee: In order to have the involvement of pertinent City departments as well as the City Commission which affect the operation of the utility, the UAC will Page #8 be created. The UAC will be responsible for monitoring the overall direction of the bus'mess planning process as well as providing direct input to the project team on technical issues. Although subject to policy directives of the City, we would recommend that the UAC include, but not be limited to, the following team members: City Manager, Finance Director, Utility Director, Project Administrator and a City Commission Representative. The project team will assistin the presentation of the ufdity business evaluation, including the comparison relative to meeting certain measurable performance indicators, and the action plan to the UA for consideration, comment, and assistance in the decision-making process, as well as providing assistance. Task 1.2 - Develop Business Principles and Performance Indicator Comparison: This task will hitlate the evaluation of the current business position of the utility. Specifically, this work will include the development of certain business parameters or principles, the identification of performance indicators (l~om beth an operation and financial perspective), the calculation of the indicators based on dam provided by the City and a comparison of the results with other neighboring jurisdictions and others (e.g. Moody's Investor Services, Inc. rehtive to the evaluation of utility operations associated with the issuance of debt. ) Page #9 Tusk 1.2.1 - Data Review: Prior to having detailed work sessions with the UAC and utility management, it will be necessary to review specific data compiled by the City staff to identify and compare the accounting, operational, economic, service area and compliance issues of the City as it pertains to the development of an implementable utility business plan. The project team will utilize the City's Master Plan, State Revolving Loan Fund documents submitted to the FDEP (Capital Finance Plan), adopted operating and capital budgets, the Comprehensive Annual Financial Report (CAFR), and any other pertinent documents to gain a thorough understanding of the utility system. The project team will submit a detailed data request to the Utility Director or City UAC liaison in order to compile and provide the requested information. Tusk 1.2.2 - Establish Business Principles: In order to have a complete buy-in of the business strategies, it is necessary to identify the fundamental business principles that govern the activities and operations of the utility. Business principles can be defined as the roles of conduct under which the utility operates that fundamentally affect the business position of the utility. Business principles typically incorporate cost recovery and operating practices that may have financial implications at some level at the utility. The project team will perform a review of the data and interviews with members of staff and management as well as work with the UAC to initially define business principles currently in place at the City. The project team will lead an evaluation of current principles and the consideration of additional principles by the UAC, designed to gain consensus on the definition of utility business principles. Tusk L2.3 - Identi~; Business Operating Practices: A wide variety of potential indicators of utility business performance are available or will be developed to evaluate utility operations. Business operating measures are used to define the performance of strict operational, financial, and business goals of the utility. Key performance indicators can be expressed as either absolute numbers or ratios, depending on the operating measure that they are designed to evaluate. These measures are tangible and quantifiable components that can be separated and evaluated individually. It is expected that measures for each functional component of the utility operations (e.g. water treatment) will be evaluated. One example of a measure would be the cost per thousand gallons of water produced. Another might be kilowatt-hour of electricity per thousand gallons of wastewater treated. To initiate the process, the project team will develop a list of performance indicator, including a comparison to benchmarks, standards, or other jurisdictions, in order to assist the UAC in the selection of those business practices and areas to be considered in the evaluation. The primary purpose of this process is the selection of key performance indicators most appropriate to the City that allows for the evaluation of the specific business operating measure. For many of the key performance indicators developed under this task, there may be a wide range of acceptable values. These business operating measures and corresponding indicators will be summarized and presented to the UAC. Page #10 Task 1.3-Characterize Evaluate Service Task 1.4 -Conduct Existing System Financial Review Area 1 Identify System Capacity and Utilization Evaluate System Operations Perform Market Evaluate Key Performance Review and Competitive Indicators Analysis I Initial System ~EOvpI~ruaa~.~gn~ Task 1.5 - Develop Business Summary Conduct Formal UAC Review 1 Prepare Business Scorecard Business Page #11 Task 1.3 - Characterize Existing System: In order to document the current business context under which the utility operates, critical components of the existing system will be characterized and described. The project team will conduct this characterization based upon data collected and input into a utility operations database. The intent of this database will be to provide support to current system evaluation as well as to establish a historical database for future operations. The system characterization will include the following components: a) Existing Service Area - An evaluation of the demographics of the existing service area will be performed. This would include the number of customers and equivalent residential connections served, future growth of the utility service area based on existing land uses and service area boundaries. Potential system demands for the various types of City provided utility services will be documented. This data will not be considered as a master plan for capital facility planning purposes but will be derived tiom existing information provided by the City as well as discussions occurring during the UAC meetings. b) Potential Service Area - An overview of the potential of the existing service area will be developed in conjuneti0n with the City staff. Based on data availability, the overview of the service area potential will consider the following: 1) gross identification of customers who may receive service due to growth, acquisition, or bulk service; 2) the identification of alternative revenue sottrees such as non ad valorem assessments, municipal service benefits or taxing units, or the use of developer and builder programs to potentially finance the extension of service to new planning areas, where applicable; 3) consideration of market segments that can be shared among utilities resulting in potential economic benefits to the City. Issues that the UAC may need to consider or address may include: i) the development of criteria to determine customer connection policies; and ii) criteria for discussions with other utilities regarding consolidation of the work force or outsourcing of services. c) System Capacity Availability and Utilization - In order to identify capacity availability, a review of the existing and projected demands of the water, reclaimed water, and wastewater system and the available capacity of the City's water, reclaimed water and wastewater treatment facilities will be prepared for the existing service area. The purpose of this task will be to illustrate the inventory of available capacity to serve existing and future demands of the system, to identify capacity utilization relationships relative to operational targets, and other factors required for the evaluation of the financial results of the utility on a going concern basis. d) System Operations - The functional aspects of the operation of the utility system will also be reviewed. Specifically, the project team will compile certain operational data to the utility system for presentation and evaluation as it relates to the development of a competitive assessment in the direct cost of operations and the identification of performance measures as described during the Phase 2 activities. The following operational areas will be addressed: Personnel by function or department (i.e., water treatment, etc.); utility expense, chemicals, other. e) Market Review - A review of the market will include identification and cursory evaluation of all of the private and public utilities within the potential water and sewer service area of the City to evaluate whether: i) neighboring utilities provide all of the same services as the City's utility Page #12 system (example: The City supplying wholesale sewer service to the County), ii)there may be issues of service from competing utilities and changes in service due to annexation of corporate limits; iii) possibilities exist for the City to provide services to competing or neighboring utility systems (example: City providing sludge disposal services to a neighboring community); iv) interlocal agreements should be developed to maximize utilization of existing facilities; and v) there are oppommities for optirnization of exisfmg operations, including use of third party personnel which may lower the cost of system operations (example: meter reading by an outside provider.) f) Capital Improvement Plan - In order to evaluate the financial effects of providing service, an evaluation of the capital funding requirements will be conducted. This evaluation will focus on: i) replacement of existing assets to promote the going concern of the current customer base; ii) betterments and upgrades to existing assets due to regulatory action and optimizafxon for improved efficiencies; and iii) asset additions in support of growth and the expansion of the system. A ten (10) year financial forecast plan will be prepared that will meet the current and potential service area needs of the utility. With respect to those projects that are expansion related, the project team will perform a financial evaluation of the net present value of the potential revenue stream and calculate the payback period for ranking (prioritization) of the projects and to identify issues relative to fundh~g. This analysis will be performed in conjunction with Task 3.2 - Conduct Financial Review. g) Competitive Analysis - The rates charged by the utility of City of Sanford essentially serve as a direct link to the customers of the utility. The rates dictate the level of '~value" that the customers perceive that they receive. An analysis of the rote competitiveness as it relates to neighboring jurisdictions and competitors will be performed. In addition to rate level issues, rote structure issues will be considered and discussed with the UAC as well as the costs for entering the system. The cost of entry is a significant issue since this relates directly to new customers requesting service and the ability to expand. Tasl~ L4 - Conduct Financial Review: A review of the financial operations and associated financial position of the utility system will be evaluated, focusing primarily to identify the financial capability of the utility and the ability of the utility to meet the financial performance indicators as developed earlier in this phase of the project. This financial review will include an evaluation of both current operating position and projected future operating position. The financial review will include the following components: a) Itistorieal Trend Analysis - The first step in this task will be to evaluate historical trends regarding the financial results of the system. This will include an evaluation of both the income statement (revenues, expenses, changes in retained earnings) and balance sheet (assets, liabilities and equity) and will encompass i) overall trends in the financial components, ii) ratio analyses (among financial statement components), and iii) the comparison to the performance measures and indicators discussed in the Phase 2 activities. It is assumed for the purpose of this analysis that the historical trend analysis will encompass up to four (4) fiscal years based on data availability. Page #13 b) Competitive Analysis - The development of a select number of financial benchmark ratios or indicators will be prepared for a maximum of eight neighboring utilities to compare recent historical results of the City (based on data availability) to other communities. The ratios to be used in this comparison will focus on those which i) data is readily available and generally comparable and ii) have an extensive importance to the review of the financial condition (e.g. debt to equity, ratio, operating margins, debt coverage, revenues per asset employed, return on assets, capital funding, etc.) c) Base Case Financial Model - Based on the data acquired during the previous phases of the project, the performance indicators to be evaluated, the results of the characterization of the system, (including the identified capital improvement program), and other financial information provided by the City, the project team will prepare an initial projection of the finmacial operations of the utility system (the "Base Case Analysis"). The financial model will be prepared for a ten fiscal year period with the fast year consisting of the approved budget and will include: i) customer and usage forecast; ii) detailed rate revenue model; iii) preparation of operating expenses by cost center or department; iv) capital improvement funding plan including cash balance analysis; v) development of comparison of key performance ratios to targets. It is anticipated that the financial model will be developed using Excel© software and will include, where applicable, the performance measurement both numerically and graphically. General documentation regarding the use of the financial model will also be prepared. Task L5 - Develop Bashtess Summary: The project team will prepare a business summary report documenting all of the analyses, development of financial and operational objectives, and other aspects of the project to be presented to the UAC. It is expected that this report will include a brief discussion of the current financial operational position of the utility, outline any observations relative to meeting the performance indicators previously developed, and present any other aspects or issues that may be brought to the attention of the project team during the course of the engagement. Additionally, other issues that the utility staff or other members of the City identify as being a material issue relative to the operations of the utility system will be also considered in the development summary. Particular attention will be paid to interpreting the restfits of the previous tasks as they affect current and future utility business performance. In addition, the summary will provide the documentation of the development, use, and assumptions of the utility financial model. To develop the business summary, the project team will conduct a review of the findings from Task 1.1 and Task 1.4 with the UAC. Based upon input from the UAC, the project team will develop a Business Scorecard, designed to provide an overview of utility business performance, as measured by the business principles and key performance indicators developed during this phase of the program. Finally, the project team will prepare a report, providing background and documentation on Phase 1 activities. Deliverable: A Business Summary Report summarizing the business principles, characteristics of the System, Capital Improvement Plan, competitive assessment, and the financial evaluation (both historical and projected) will be prepared. The report will constitute the drafting of the Plan relative to system overview and comparison. The report will include a business assessment where practical Page #14 for consideration by the UAC and the City Commission. The results of this phase will be presented at a City Commission workshop. Phase 2 - Development and Presentation of Action Plan Based on the results of the above-referenced phases of the project, information and analyses completed by staff and reviewed by the UAC and project team, an action plan will be prepared. The project team will assist the UAC to evaluate the major issues that face the City and that should be addressed in the action plan. The preliminary decision analysis will center on identifying and prioritizing specific issues, developing the criteria and factors relevant to the decision-making process, and outlining potential strategies. The tasks envisioned for this phase of the project include the following. Tasl~ 2.1- Identification and Prioritization of Issues: Based on the results of the business summary report, the project team will facilitate the prioritization of the key issues as they relate to the adopted business principles and business plan objectives. The process will include the development of a broad decision-making process that will identify the issues, consider alternatives to meeting or addressing the issue, and develop decision criteria and factors which are related to the issue. The identification of the issues will be developed based on the results of the business operation position summary conducted during the Phase 1 activities. The issues will be categorized based on i) as a result of the performance measurement and benchmarking process which may indicate certain areas of change and ii) the overall business plan and needs of the City (e.g. funding for capital expansion). The development of the business altematives and the decision criteria will be prepared based on the ramre of the issues and the relationship to such issues (individually and collectively) to the overall business focus developed after the Phase 3 activities. For example, in the case of improving operating margins, the decision altematives could include revenue enhancement through utility acquisitions; outsourcing or privatization of operations to achieve cost reductions; deferral of maintenance; increases in rates; changes in rate structure or introduction of new revenue sources. The decision process would also include the consideration of relevant criteria and factors which should be involved in evaluating the altematives and all of this information would be assembled in a decision matrix which would be presented to and discussed with the UAC to rank the alternatives and identify the best alternative. Task 2.2 - Finalization of Business Principles: A reassessment and review of the business principles and operational objectives will be conducted to ensure that the City's goals and objectives are feasible and to provide consistency with the decision-making process. This will be performed in order to more adequately develop those principles which meet the needs of the City as they relate to the issues being evaluated. Taslt 2.3 - Finalization of Capital Improvement Plan and Financial Review: The project team will complete and finalize the Capital Improvement Plan in conjunction with fmalizing the Financial Review. It is expected that a summary report will be prepared outlining the process used to identify issues and prioritize the potential action plan items as well as a provide a summary of the Page #15 ranking procedure used for each decision being presented. The project team will evaluate the financial impact of each decision. This summary report will serve as a basis for the preparation of the Action Plan. These reports will be presented to the UAC fortheir comments and approval. Task 2.4 - Preparation of Action Plan: The action plan will include: i)a presentation of the business principles and goals and objectives of the utility; ii) the operational and financial targets developed as part of the utility goal setting process; iii) the significant issues identified as part of the decision-making process; iv) the action plans considered to have the greatest opportunity in meeting the objectives as measured by a comparison of the benefits to the capital, operating and personnel costs of implamenting each plan; v)a listing of the advantages and disadvantages of various strategies, and how the business principles will be met; and vi)a discussion of the recommendations to implement the action items. The Action Plan will include the available results of the competitive assessment of the operations of the utility system, including recommendations where improvement may be warranted. The action plan will be prepared and presented to the UAC for comment and approval. Tasi~ 4.5- Presentation of Action Plan: Once the draft action plan is presented to the UAC, the draft plan will be presented to the City Commission for discussion at a public workshop at the end of the presentation process. It is envisioned that the UAC will seek: i) approval of the business policies; ii) an action plan to meet the goals and objectives as it relates to such policies; and iii) the acceptance or approval to initiate the recommendations. ACTIVITY SCHEDULE The proposed project plan is designed to have all phases of the project completed within a twenty- six (26) week time frame. Our project team is prepared to initiate the project and begin the review of utility operational data immediately following contract approval by the City. This schedule is obviously dependent on the availability of staff to provide data compilation and analytical services to the project team and UAC. ESTIMATE OF MAN-HOURS The Preliminary Job Cost Estimate ofmanhours and associated costs is attached as Exhibit "B". Page #16 EXHIBIT "B" PRELIMINARY JOB COST ESTIMATE FOR THE PREPARATION OF A BUSINESS PLAN AND FINANCIAL FORECAST Page #]? City of Sanford, Florida Preliminary Job Cost Estimate for the PregaraBon of a Business Plan and Financial Forecast Line Pdncipati Supe~ising Senior Rate Cledcal and Total Project Clerical and Total Total Project No. Project Mger. Consultant Consultant Analyst Admin, PRMG Pdncipal Engineer Engineer Admin. CPH Team I Direct Labor Rate~s (S/Hour) $ 95.00 $ 90,00 $ 70.00 $ 50.00 $ 35.00 $ t02,90 $ 95.00 $ 78.80 $ 35.00 Phase 1 - Develop Business Principles and performance Indicator Comparison Utility Advisory Committee - General 2 Management 4 I 0 0 3 8 4 I 0 3 8 16 3 Data Acquisition and Review 6 14 0 4 6 30 4 14 0 5 23 53 4 Establish Business Principles 4 2 0 0 2 8 4 0 0 2 6 14 5 Identif~ Business Operating Practioes 8 20 0 2 4 34 6 16 0 5 27 6t Characterize Existing System Existing Service 6 Area I 2 0 0 Q 3 2 6 0 6 14 17 7 PotenBal Service Area I 2 0 0 0 3 3 6 0 6 15 18 8 System Capacity Availability and Utilization 1 2 O o 0 3 2 6 8 2 18 21 9 System Operations 2 1 0 0 0 3 3 25 24 8 60 63 10 Market Review 3 5 0 0 ti 8 3 t 0 8 3 24 32 11 Capital tmprevement Ran 2 6 0 0 9 8 3 8 8 2 21 29 Competitive Anaiysis - Conduct Financial 12 Review 3 6 ti O 0 9 2 0 0 6 8 17 13 Historical Trend Analysis 3 7 0 14 2 26 I 0 0 0 I 27 CompeStive Analysis - Conduct Financial t4 Review 6 14 Q 16 2 38 I 0 0 0 I 39 15 Base Case Financial Model 6 12 0 44 2 64 0 2 0 0 2 66 16 Develop Business SummaW Report 8 14 0 42 12 76 5 14 2 12 33 109 O 4 17 Total Phase 1 - Direct Labor Hours 58 108 0 t26 33 325 43 108 50 60 261 586 18 -DimctLaborCoet $ 5,510 $ 8,640 $ $ 6,300 $ 1,155 $ 21,605 $ 4,386 $ 10,260 $ 3,900 $ 2.100 $ 20,646 $ 42,251 Phase 2 - Development and Presentation of Action Plan 19 Identification and Pdodtization of Issues 4 6 ti 0 0 10 4 9 0 0 13 23 Finalization of Business Pdnciples/Finalization 20 of Capital Improvement Plan 2 O 0 0 I 3 2 0 0 0 2 5 21 Financial Rexlow 5 14 0 40 0 59 8 12 8 0 28 87 22 preparation of Action Plan 8 12 0 24 4 48 10 12 14 8 44 92 23 Presentation of Action Plan 4 2 0 2 4 12 4 2 0 5 11 23 0 Total Phase 2 - Direct Labor Hours 23 34 0 6B 9 132 28 35 22 13 98 230 -DimctLaborCoet $ 2,185 $ 2,720 $ $ 3,300 $ 315 $ 8,520 $ 2,856 $ 3,325 $ 1,716 $ 455 $ 8,352 $ 16,872 Total of all Phases Direct Labor Hours 81 142 192 42 457 7t 143 72 73 359 816 DirectLaborCost $ 7,695 $ 11,360 $ $ 9,600 $ 1,470 $ 30,125 $ 7.242 $ 13,585 $ 5,616 $ 2!555 $ 28!998 $ 591123 Average Billing Rate per Hour $ 72.45 Allowance for Indi{~ct Costs Graphics, Printing, and Copy Cha~ges $ 500 Delivery Cha~es (assume 10 FedEx at $20/detiveW) 120 Miscellaneous Allowance 250 Total Allowance for indirect Costs $ 870 Total Estimated Project Cost $ 59,993 2ndrevsanf.jms.xls2141991:52 PM