1024-Public Resources ManagemenffiPublic Resource Management Group, Inc.
June 18, 2004
Mr. Paul R. Moore, P.E.
Utilities Director
City of Sanford
P.O. Box 1788
300 Park Avenue
Sanford, FL 32772-1788
Subjectl
Letter of Agreement to Provide Consulting Services for a
Water and Wastewater Impact Fee Study
Dear Mr. Moore:
Public Resources Management Group, Inc. (PRIVlG) is pleased to submit this Letter of
Agreement to provide general consulting services to the City of Sanford, Florida (the "City").
Based on our discussions with the City, PRIvlG will provide consulting services relative to the
analysis of the level of impact fees currently charged for the water and wastewater utility
systems.
PROJECT TEAM AND DIRECT LABOR RATES
With respect to thc performance of this engagement, Mr. Henry Thomas will be thc principal-in-
charge, while Anthony Hairstun will be the project manager and primary contact between the
City and PRMG. PRMG may utilize other employees or associates during the course of thc
engagement as needed. The services covered by this Agreement shall bc provided based on the
direct labor rates set forth in Attachment A.
SCOPE OF SERVICES
The scope of services to bc performed by Public Resources Management Group, Inc. is included
on Attachment B, which is made a part of this Letter Agreement.
COMPENSATION AND BILLING
Based on thc Scope of Services as summarized herein in Attachment B and the direct hourly
labor billing rates as identified on Attachment A, we propose to establish an initial not-to-exceed
contract budget of $18,000 to provide water and wastcwatcr impact fcc consulting services to thc
City. This contract budget amount includes the direct cost of personnel anticipated to bc
assigned to the project as well as an allowance for other direct costs such as travel, telephone,
and shipping charges. The costs incurred by PRMG for such indirect costs, if any, will be billed
to the City at the actual cost incurred by PRMG. It is proposed that PRMG will bill monthly for
services relative to this engagement based on the hourly amount of time spent by PRMG
members.
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Mr. Paul R. Moore, P.E.
City of Sanford
June 18, 2004
Page 2
TERM OF.4 GREEMENT
The term of this Letter Agreement and the associated billing rates for the PRMG personnel shall
be in effect and continue through the term of this agreement or through December 31 2004,
whichever occurs first.
We have enclosed two (2) originals of the Letter Agreement for the City's authorization. Upon
execution of this Letter Agreement, please return one (1) original to PRMG; the other original is
for the City's files. We appreciate the opportunity to submit this Letter Agreement to the City
and look forward to continue working with the City in the near future.
Very truly yours,
Public Resources Management Group, Inc.
~em-y L./l~omas
Vice President
ACCEPTED BY:
City of Sanford, Florida
Authorized Signature
Title [ --~
Attachments
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ATTACHMENT A
CITY OF SANFORD
WATER AND WASTEWATER IMPACT FEE STUDY
SCHEDULE OF DIRECT LABOR HOURLY RATES AND STANDARD COSTS
DIRECT HOURLY RATES
Project Team Title
Direct Labor
Hourly Rate [*]
Principal $135.00
Executive Consultant $120.00
Associate $110.00
Supervising Consultant $ 95.00
Senior Consultant $ 85,00
Rate Consultant $ 75.00
Rate Analyst $ 65.00
Analyst $ 55.00
Assistant Analyst $ 45.00
Clerical and Administration $ 45.00
[*] Direct labor hourly rates effective through December 31, 2004; rates will be
adjusted by five percent (5%) effective January 1, 2005.
INDIRECT COST RATES
Expense Description
Mileage Allowance - Personal Car Use Only
Reproduction (black and white)
Reproduction (color)
Computer Time
Telephone Charges
Delivery Charges
Lodging/Other Travel Costs
Meals
Subconsultant Services
Other Costs for Services Rendered
Indirect Cost Rate [*]
$0.33 per mile
$0.10 per page
$0,50 per page
$0.00 per hour
Actual Cost
Actual Cost
Actual Cost
Not to exceed per
PRMG Employee:
$6,00 - Breakfast
$10,00 - Lunch
$20.00 - Dinner
Actual Cost plus 5.0%
Actual Cost
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ATTACHMENT B
CITY OF SANFORD
WATER AND WASTEWATER IMPACT FEE STUDY
SCOPE OF SERVICES
The Scope of Services to be performed by the personnel of Public Resources Management
Group, Inc. (the "Project Team") relative to this engagement is summarized below by task:
Data Request and Kickoff Meeting - PRMG will interview staff members, collect capital
and planning documentation, such that sufficient information can be compiled to perform
the study. Information to be obtained will include current fixed asset data, the updated
capital improvement plan, projected development activity, demographic information, and
other related information will be obtained. PRMG will attend a kick-offmeeting with the
City staff to discuss utility objectives, level of service requirements, capital expansion
and service territory requirements. The meeting will occur subsequent to the issuance of
a data request for information to the completed by the City.
Determination of Level of Service Standards - Based on information collected and the
results of detailed interviews of key staff members, PRMG will identify the level of
service (LOS) standards consistent with the City's current operating criteria, industry
standards, and other factors.
Equivalent Residential Connection (ERC) and Facility Use Characteristics - Based on
the determination of the level of service standards that the City should maintain, an
analysis of the City's existing and projected ERC requirements will be conducted. This
analysis is necessary to evaluate the capacity utilization of the water and wastewater
facilities (from both an existing and prospective capital facility standpoint).
Impact Fee Determination - Based on the LOS standards and facilities use projections,
PRMG will develop updated impact fees for water and wastewater service. The fees will
be developed recognizing the reservation and utilization of capacity by an equivalent
residential customer (e.g., single-family residential) and will reflect the City's capital cost
to serve new development. This task will include the following:
Review of and recommended changes to the City's current impact fee application
methodology;
Identification of appropriate impact fee methodology (needs versus standards
driven);
Analysis of existing facility costs and incremental costs to provide utility service
to furore service area needs or build-out population;
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· Evaluation of system capacity relationships for incremental plant additions;
Development of billing classification and equivalent residential unit requirements,
as applicable; and
Design base impact fee for each utility system.
Impact Fee Comparison - A comparison of similar impact fees for neighboring
communities will be prepared. This impact fee comparison will include i) level of fee
charged; and ii) method of application where readily available. This task will be
performed concurrent with the impact fee calculation to assist in the finalization of the
City's impact fee methodology.
Impact Fee Ordinance - PRMG will assist the City's legal counsel in the development of
an ordinance detailing the level of impact fees charged and other fee parameters
(applicability, purpose, collection, etc). This task is intended to include PRMG's review
of the proposed ordinance as developed by the City's legal counsel.
Report Presentation and Meetings/Public Hearings - A report will be prepared outlining
the above referenced tasks to provide the basis for the proposed fees. The report will be
prepared and presented in draft form to the City Commission and finalized after adoption
by the Commission.
Based on the scope of services discussed above, PRMG has included the attendance of 4
client meetings by not more than 2 representatives of PRMG, including the attendance of
2 regularly scheduled public hearings or workshops before the City Commission.
Additional meetings would be considered as an additional service.
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ADDITIONAL SER VICES
During the course of the study, the City may request additional services from PRMG. Such
services will not be conducted until authorized by the City as mutually agreed between the City
and PRMG. The City will be billed for such additional services based on the hourly rate
schedule o£ PILMG as shown in this Letter Agreement or some other basis as mutually agreed
between the City and PRMG. Although no additional services are anticipated for this
engagement, examples of additional services may include the following:
Development of impact fees for other municipal services, such as police, fire, recreation,
and other related services.
2. Development of rates for monthly water and wastewater service.
3. Attendance of meetings in addition to what is contemplated in the scope of services.
Delays in the project schedule which may have impacts on analyses performed which
would affect the budget for the scope of services reflected herein.
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PUBLIC RESOURCES MANAGEMENT GROUP, INC. ATTACHMENT C
STANDARD TERMS AND CONDITIONS
I. SCOPE 1.
Public Resources Management Group, Inc.
(PRMG) agrees to perform the utility consulting
services described in the agreement that
incorporates these standard terms and
conditions. Unless modified in writing by the
parties hereto, the duties of PRMG shall not be
2.
construed to exceed those services specifically
set forth in the agreement.
II. COMPENSATION
Client agrees to pay for the services as billed
within thirty (30) days of receiving the invoice.
Amounts paid after thirty(30) days may be
subject to interest charges.
Time-related charges will be made in
accordance with the billing rate referenced in the
agreement. Other indirect expenses and
subcontractor services, if any, will be billed at
COSt.
III. RESPONSIBILITY
PRMG is employed to render a professional
service only, and any payments made by Client
are compensation solely for such services
rendered and recommendations made in carrying
out the work. PRMG shall make findings,
provide opinions, make factual presentations,
and provide professional advice and
recommendations.
IV. INDEMNIFICATION
PRMG agrees to indemnity, defend, and hold
Client harmless from and against any liability
arising out of the negligent errors or negligent
omissions of PRMG, its agents, employees, or
representatives, in the performance of duties set
forth in Article I.
V. INSURANCE
PRMG shall maintain during the life of the
agreement the following minimum insurance:
Comprehensive general liability insurance,
including personal injury liability, blanket
contractual liability, and broad form
property damage liability. The combined
single limit for bodily injury and property
damage shall be not less than $1,000,000.
Automobile bodily injury and property
damage liability insurance covering owned,
non-owned, rented, and hired cars. The
combined single limit for bodily injury and
property damage shall be not less than
$1,000,000.
Statutory worker's compensation and
employers' liability insurance as required by
state law.
4. Professional liability insurance.
VI. ASSIGNMENT
These terms and conditions and the agreement to
which they are attached are binding on the heirs,
successors, and assigns of the parties hereto.
This agreement may not be assigned by Client or
PRMG without prior, written consent of the
other.
VI1. INTEGRATION
These terms and conditions and the agreement to
which they are attached represent the entire
understanding of Client and PRMG as to those
matters contained herein. No prior oral or
written understanding shall be of any force or
effect with respect to those matters covered
herein. The agreement may not be modified or
altered except in writing signed by both parties.
VIII. JURISDICTION
This agreement shall be administered and
interpreted under the laws of the State of
Florida. Jurisdiction of litigation arising from
the agreement shall he in that state. If any part
of the agreement is found to be in conflict with
applicable laws, such part shall be inoperative,
null and void insofar as it is in conflict with said
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PUBLIC RESOURCES MANAGEMENT GROUP, INC. ATTACHMENT C
STANDARD TERMS AND CONDITIONS
laws, but the remainder of the agreement shall
be in full fome and effect.
IX. SUSPENSION OF WORK
Client may suspend, in writing, all or a portion
of the work under the agreement in the event
unforeseen circumstances beyond Client's
control make normal progress of the work
impossible. PRMG may request that the work
be suspended by notifying Client, in writing, of
circumstances that are interfering with the
normal progress of work. PRMG may suspend
work on the project in the event Client does not
pay invoices when due. The time for completion
of the work shall be extended by the number of
days work is suspended. In the event that the
period of suspension exceeds 90 days, the terms
of the agreement are subject to renegotiation and
both parties am granted the option to terminate
work on the suspended portion of the project, in
accordance with Article VIII.
X. TERMINATION OF WORK
Client may terminate all or a portion of the work
covered by the agreement for its convenience.
Either party may terminate work if the other
party fails to perform in accordance with the
provisions of the agreement. Termination of the
agreement is accomplished by 15 days prior
written notice from the party initiating
termination to the other. Notice of termination
shall be delivered by certified mail with receipt
for delivery returned to the sender.
In the event of termination, PRMG shall perform
such additional work as is necessary for the
orderly filing of documents and closing of the
project. The time spent on such additional work
shall not exceed 5 percent of the time expended
on the terminated portion of the project prior to
the effective date of termination. PRMG shall
be compensated for work actually performed
prior to the effective date of termination plus the
work required for filing and closing as described
in this Article.
Xl. ARBITRATION
All claims, disputes and other matters in
question between the parties to this agreement
arising out of or relating to this agreement or the
breach thereof, which are not disposed by
mutual agreement of the parties, shall be decided
by arbitration in accordance with the Florida
Arbitration Code. No arbitration arising out of
or relating to this agreement shall include any
person not a party to this agreement except by
written consent containing a specific reference
to this agreement and signed by the parties
hereto and persons to be joined. This agreement
to arbitrate shall be specifically enforceable
under prevailing arbitration law.
Notice of demand for arbitration shall be filed in
writing with the other parties to this agreement.
The demand shall be made within a reasonable
time after the claim, dispute or other matter in
question has arisen, but in no event after the date
when the institution of legal or equitable
proceedings would be barred by the applicable
statute of limitations. The award rendered by
the arbitrators shall be final and judgment may
be entered in accordance with applicable law in
any court having jurisdiction.
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