HomeMy Public PortalAbout15-8910 Agreement w,Burton & Assoc to Update the Solid Waste Rate StudySponsor by: City Manager
RESOLUTION NO. 15 -8910
A RESOLUTION OF THE CITY OF OPA- LOCKA,
FLORIDA AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT WITH BURTON &
ASSOCIATES TO UPDATE THE SOLID WASTE RATE
STUDY AT A COST NOT TO EXCEED $15,780,
PAYABLE FROM ACCOUNT NUMBER 34- 534340, A
BUDGETED ITEM; PROVIDING FOR
INCORPORATION OF RECITALS; PROVIDING FOR
AN EFFECTIVE DATE
WHEREAS, the City Commission of the City of Opa -locka desires to provide a fair and
equitable waste rate for all property owners in the City of Opa- locka; and
WHEREAS, the City would like to have an updated study performed to determine if the
based residential increase (multi - family property, including up to four units) rate is appropriate, as
compared to the rates charge to single family units; and,
WHEREAS, a bid for the service was not proposed, pursuant to Resolution No. 07 -7088
and 07 -7113, Burton and Associates were determined to be the most responsible and most responsive
to perform the Rate Study; and
WHEREAS, the City information is in Burton and Associates database, the Solid Waste
Rate Study is only a matter of updating the City's financial, customer service levels, and capital
projects information, which would be the most cost effective; and.
WHEREAS, the City Commission of the City of Opa -locka desires to authorize the City
Manager to enter into an agreement with Burton & Associates to update the Solid Waste Rate
Study.
RESOLUTION NO. 15 -8910
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION
OF THE CITY OF OPA- LOCKA, FLORIDA:
Section 1. The recitals to the preamble herein are incorporated by reference.
Section 2. The City Commission of the City of Opa -locka authorizes the City
Manager to enter into an agreement with Burton & Associates to update the Solid Waste Rate
Study at a cost not to exceed $15,780, payable from Account Number 34- 534340, a budgeted
item.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 14th day of Janua 2015.
to:
J00na Flores
Citv Clerk
V RA.tAYLOR
MAYOR
Approved as to form and legal sufficiency:
Joseph S. GelletV John C. Dellagloria
GREENSPOON MARDER PA
City Attorney
RESOLUTION NO. 15 -8910
Moved by:
Seconded by:
Commission Vote:
Commissioner Kelley:
Commissioner Pinder:
Commissioner Santiago:
Vice -Mayor Holmes:
Mayor Taylor:
VICE MAYOR HOLMES
COMMISSIONER KELLEY
5 -0
YES
YES
YES
YES
YES
City of Opa -Locka
Agenda Cover Memo
Commission Meeting
Date:
01/14/2015
Item Type:
(EnterX in box)
Resolution
Ordinance
Other
g
Fiscal Impact:
(EnterXin box)
Yes
No
Ordinance Reading:
(EnterXin box)
1st Reading
2-d Reading
X
Public Hearing:
(EnterXin box)
Yes
No
Yes
No
Funding Source:
(Enter AcctNo.)
(Enter Fund & Dept)
34- 534340
Advertising Requirement:
(EnterXin box)
Yes
No
Contract /P.O. Required:
(Enter X in box)
Yes
No
RFP /RFQ /Bid #:
N/A
Strategic Plan Related
(Enter X in box)
Yes
No
Strategic Plan Priority Area:
Enhance Organizational p
Bus. & Economic Dev Q
Public Safety Q
Quality of Education
Qual. of Life & City Image p
Communcation
Strategic Plan Obj. /Strategy: (list the
specific objective /strategy this item will address)
Sponsor Name
City Manager
Department:
City Manager
A RESOLUTION OF THE CITY OF OPA- LOCKA, FLORIDA AUTHORIZING THE CITY MANAGER TO ENTER
INTO AN AGREEMENT WITH BURTON & ASSOCIATES TO UPDATE THE SOLID WASTE RATE STUDY AT A
COST OF $15,780, PAYABLE FROM ACCOUNT NUMBER 34- 534340, BUDGETED
Staff Summary:
The requested services will assist the City in updating the solid waste rates.
Proposed Action:
Approval
Attachment:
(1) Proposal from Burton and Associates
(2) Resolution #07 -7088 authorizing an RFP for a study of water, sewer & solid waste rates.
(3) Resolution #07 -7113 entering into an agreement with Burton & Associates to perform the study
(4) Contract with Burton & Associates for initial rate study.
(5) Ordinance #08 -04 revising the solid waste rates based upon the rate study recommendations.
(6) Ordinance #14 -07 amending the solid waste fee
��N t l S !
M e m o r a n d u m
T O : M a y o r
V i c e - M a y o r
C o m m i s s i o n e r
C o m m i s s i o n e r
C o m m i s s i o n e r
F R O M : K e l v i n B a k e r , S r . , C i t y
D A T E : D e c e m b e r 2 9 , 2 0 1 4
M y r a L . T a y l o r
R E : R e s o l u t i o n : U p d a t e S o l i d W a s t e R a t e s t u d y
R e q u e s t : A R E S O L U T I O N O F T H E C I T Y O F O P A - L O C K A , F L O R I D A A U T H O R I Z I N G
T H E C I T Y M A N A G E R T O E N T E R I N T O A N A G R E E M E N T W I T H B U R T O N
& A S S O C I A T E S T O U P D A T E T H E S O L I D W A S T E R A T E S T U D Y A T A C O S T
$ 1 5 , 7 8 0 , P A Y A B L E F R O M A C C O U N T N U M B E R 3 4 - 5 3 4 3 4 0 , B U D G E T E D
D e s c r i p t i o n : T h e r e q u e s t e d s e r v i c e s w i l l a s s i s t t h e C i t y i n u p d a t i n g t h e s o l i d w a s t e r a t e s . A l s o , p e r
O r d i n a n c e 1 4 - 0 7 , t h e C i t y M a n a g e r w a s i n s t r u c t e d t o p r o v i d e f o r a f o r m a l r a t e s t u d y i n F Y 2 0 1 4 - 2 0 1 5 .
F i n a n c i a l I m p a c t : $ 1 5 , 7 8 0 p a y a b l e f r o m a c c o u n t n u m b e r 3 4 - 5 3 4 3 4 0 - B U D G E T E D .
I m p l e m e n t a t i o n T i m e l i n e : I m m e d i a t e l y
L e g i s l a t i v e H i s t o r y :
1 . R e s o l u t i o n 4 0 7 - 7 0 8 8 a u t h o r i z i n g a n R F P f o r a s t u d y o f w a t e r , s e w e r & s o l i d w a s t e r a t e s
2 . R e s o l u t i o n # 0 7 - 7 1 1 3 e n t e r i n g i n t o a n a g r e e m e n t w i t h B u r t o n & A s s o c i a t e s t o p e r f o r m t h e r a t e s t u d y
3 . O r d i n a n c e # 0 8 - 0 4 S o l i d W a s t e f e e
4 . O r d i n a n c e # 1 4 - 0 7 A m e n d e d S o l i d W a s t e f e e
R e c o m m e n d a t i o n ( s ) : S t a f f r e c o m m e n d s a p p r o v a l .
A n a l y s i s : I n A u g u s t 2 0 0 7 , t h e C i t y e n t e r e d i n t o a n a g r e e m e n t w i t h B u r t o n & A s s o c i a t e s t o r e v i e w
s e v e r a l o f t h e C i t y ' s r a t e s i n c l u d i n g t h e r a t e f o r r e s i d e n t i a l s o l i d w a s t e s e r v i c e s . T h e s t u d y w a s
c o m p l e t e d a n d r e c o m m e n d a t i o n s w e r e m a d e a n d a p p r o v e d b y t h e C i t y C o m m i s s i o n . A t t h e t i m e , t h e
only customers billed as residential were single- family customers and these fees are billed as a non ad
valorem assessment on the annual tax bill.
In FY 2010, the City decided to include properties up to four units as residential. These properties
were charged the approved fee times the number of units.
Some property owners have complained the fee is too high. Property owners that owned properties
adjacent to each other have, in the past, saved money by having the tenants in all of the properties
share one container. Now, each unit has an individual green garbage container, each unit is charged
individually, and there are no savings.
We want this rate study to at least answer, at a minimum, these questions:
1. Now that the residential population has increased to include properties up to four units, can the
rate be lowered since more people are paying?
2. Is it appropriate to charge multi - family properties up to four units the same rate we charge to
single family properties?
3. Should a separate rate structure be developed for the multi - family properties up to four units?
Our goal is to have a rate that is sufficient to cover the City's operating expenses; but we also want it
to be fair and equitable for all affected property owners.
The City did not go through a formal bid process to complete this project. This study is considered an
update to the study done in 2007. We did go through a formal RFP process at the time (see
Resolutions 07 -7088 and 07 -7113) where Burton and Associates was deemed to be the most
responsible and responsive proposer. The fee for the service at that time was $59,728 for the study.
Since Burton & Associates already has the City's information set up in their database; it is only a
matter of bringing the City's financial, customer service levels, and capital projects up to date. We
believe this is the most cost effective and timely option for the City.
Attachments:
(1) Proposal from Burton and Associates
(2) Resolution #07 -7088 authorizing an RFP for a study of water, sewer & solid waste rates.
(3) Resolution #07 -7113 entering into an agreement with Burton & Associates to perform the study
(4) Contract with Burton & Associates for initial rate study.
(5) Ordinance #08 -04 revising the solid waste rates based upon the rate study recommendations.
(6) Ordinance # 14 -07 amending the solid waste fee
PREPARED BY: Faye Douglas, Budget Administrator
BURTON & Assocmms
December 30, 2014
Ms. Faye Douglas
Budget Administrator
City of Opa -Locka
3400 NW 135th Street, Building B
Opa- Locka, Florida 33054
Re: Solid Waste Revenue Sufficiency Analysis
Dear Ms. Douglas:
As requested, this letter is intended to provide a proposed services agreement between the
City of Opa -Locka and Burton & Associates regarding services requested of Burton &
Associates to perform a revenue sufficiency analysis that would update the financial
management plan developed during the FY 2007 Utility Rate & Fee Study for the City's Solid
Waste Enterprise Fund.
I have enclosed a Project Work Plan and Cost Estimate Schedule (Schedule) which presents
our proposed work plan and cost to conduct the services, which we are proposing to bill
periodically on a lump sum basis reflecting the completion percentage of each task.
The Schedule shows that successful completion of the desired services will require
approximately 100 man hours for a fee of $14,380 plus out of pocket expenses of $1,400 for
a total cost of $15,780.
I trust that the terms of this proposed service agreement are acceptable to the City. If so,
please indicate by affixing the appropriate signature, and returning one executed original to
us for our files.
It is a pleasure to continue to be of service to the City and we look forward to successful
completion of this project. If you have any questions, please do not hesitate to call me at
(813) 443 -5138.
Very truly yours
Andrew J. Burnham
Senior Vice President
AJB /cs
Burton & Associates
200 Business Park Circle, Suite 101 • St. Augustine, Florida 32095 • Phone (904) 247 -0787 • Fax (904) 241 -7708
1000 N. Ashley Drive, Suite 513 • Tampa, Florida 33602 • Phone (813) 443 -5138 • Fax (813) 443 -8289
E -mail: abumham @burtonandassociates.com
Page 1
Accepted for the City of Opa -Locka Accepted for Burton & Associates
Signature
Name and Title
Date
Signature
Andrew J. Burnham — Senior Vice President
Name and Title
December 30, 2014
Date
Burton & Associates
200 Business Park Circle, Suite 101 • St. Augustine, Florida 32095 • Phone (904) 247 -0787 • Fax (904) 241 -7708
1000 N. Ashley Drive, Suite 513 • Tampa, Florida 33602 • Phone (813) 443 -5138 • Fax (813) 443 -8289
E -mail: aburnhom @burtonandossociates.com
Page 2
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I" Reading:
2 "d Reading:
Public Hearing:
Adopted:
Effective Date:
Sponsored by:
May 28, 2014
June 25, 2014
June 25, 2014
June 25, 2014
June 26, 2014
City Manager
ORDINANCE NO. 14-07
AN ORDINANCE OF THE CITY OF OPA- LOCKA,
FLORIDA, AMENDING THE RATES FOR
RESIDENTIAL SOLID WASTE COLLECTION
SERVICES; PROVIDING FOR INCORPORATION
OF RECITALS; PROVIDING FOR CONFLICT AND
REPEALER; PROVIDING FOR CODIFICATION;
PROVIDING FOR SEVERABILITY; PROVIDING
FOR AN EFFECTIVE DATE
WHEREAS, the City of Opa -locka provides solid waste collection services to
consumers within the boundaries of the City; and
WHEREAS, the City Commission is charged with the duty and responsibility
of setting rates and fees for services; and
WHEREAS, the City recently contracted for reduced cost collection services
and reclassified properties up to 4 -units as residential, thereby increasing the number
of residential customers by over 20 %; and
WHEREAS, the last rate study completed in FY 2007 set annual assessments
through FY 2016; and
WHEREAS, the City Manager will budget for and provide for a new formal
rate study of the solid waste fund in FY 2014 -2015; and
Ordinance No. 14 -07
WHEREAS, the City Commission desires to pass on the reduced cost of
collection by rolling back rates to the levels from 2011, saving each household over
$100, from the rates which would otherwise be in effect.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY
COMMISSION OF THE CITY OF OPA LOCKA, FLORIDA:
Section 1. The recitals to the preamble are hereby incorporated by
reference.
Section 2. Annual Residential Assessment — The current and proposed
annual residential assessments for solid waste collection are as follows:
Effective Date
Current Rates
Recommended Rates
10/01/2008
$445.00
n/a
10/01/2009
$472.00
n/a
10 /01/2010
$500.00
n/a
10/01 /2011
$530.00
n/a
10/01/2012
$562.00
n/a
10/01/2013
$596.00
n/a
10/01/2014
$530.00
10/01/2015
$669--w
$562.00
10/01/2016
$40-w
$596.00
The City Commission hereby adopts the proposed rates as shown on the above table.
Section 3. This ordinance shall become effective as provided by law.
Section 4. All ordinances or parts or ordinances in conflict herewith are
hereby repealed.
Section 5. The ordinance shall, upon adoption, be codified in the City of
Opa -locks Code of Ordinances.
2
Ordinance No. 14 -07
Section 6. If any section, sentence, clause, or provision of this Ordinance is
declared invalid, the remainder of this Ordinance shall not be affected by its
invalidity.
Section 7. This Ordinance shall, upon adoption, become effective
immediately.
J
PASSED AND DULY ADOPTED this 25`' day of June, 2014.
MYI;t�, fAYLOR
MAYOR
to:
na Flores
Clerk
Moved by:
Seconded by:
Commission Vote:
Commissioner Holmes:
Commissioner Johnson:
Commissioner Santiago:
Vice -Mayor Kelley:
Mayor Taylor:
d as fo and le al s e cy: 01
MARDER PA
A
COMMISSIONER HOLMES
COMMISSIONER JOHNSON
5 -0
YES
YES
YES
YES
YES
K7
I' Reading: MARCH 12, 200'8----- 0 0 8
2"d Reading: APRIL 9, 2008
Adopted: APRIL 9, 2008
Effective Date: APRIL 9, 2008
Sponsored by: City Manager
ORDINANCE NO. 08- 0 4
AN ORDINANCE OF THE CITY OF OPA- LOCKA, FLORIDA,
ASSIGNING THE RATES FOR RESIDENTIAL SOLID WASTE
COLLECTION SERVICES BASED UPON THE FINANCIAL
MANAGEMENT PLAN THAT WOULD PROVIDE SUFFICIENT
REVENUE TO FUND ALL OF THE SOLID WASTE FUND
REQUIREMENTS.
004t
)OP
WIIEREAS, the City of Opa -Iocka provides solid waste collection services to consumers within
the boundaries of the City; and
WHEREAS, the City Commission of the City of Opa- locks, Florida is charged with the duty and
responsibility for rates and fees for services; and
WBFMAS, Resolution No. 07 -7113 awarded the consulting firm of Burton & Associates the
task of conducting a comprehensive study of the solid waste rate and providing recommendations; and
WHERAS, the study is complete and Burton & Associates has presented their recommendations
to the Mayor & City Commission, the City Administration, and residents and citizens at a public town
hall meeting,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
OPA- LOCKA, FLORIDA:
Section 1. The recitals to the preamble are hereby incorporated by reference.
Section 2. Annual Residential Assessment
Effective Date
Annual Assessment
10/01/08
$445.00
10/01/09
$472.00
10/01/10
$500.00
10 /01 /11
$530.00
10/01/12
$562.00
10/01/13
$596.00
10/01/14
$632.00
10 /01/15
$669.00
10/01/16
$710.00
Ordinance N(.08- 0 4 - - -- - - - --
Section 3. This Ordinance shall become effective as provided by law.
Section 4. This Ordinance shall become effective as provided by law.
Section 5. All ordinances or parts of ordinances in conflict herewith are hereby repealed.
Section 6. The ordinance shall, upon adoption, be codified in the City of Opa -locks Code of
Ordinances.
Section 7. If any section, sentence, clause or provision of this Ordinance is declared invalid,
the remainder of this Ordinance shall not be affected by its invalidity.
PASSED AND DULY ADOPTED this 9 day of APRIL , 2008.
il TO-W®r
ATTEST:
CITY C RK
Approved as to form and legal sufficiency:
JOSEP . ELLER
ACTING CITY ATTORNEEY
4ki �' 'W Q
DATEV
Moved by: VICE MAYOR JOHNSON
Second by: COMMISSIONER MILLER
Commission Vote: 5-0
Commissioner Tydus: YES
Commissioner Holmes: YES
Commissioner Miller: YES
Vice -Mayor Johnson: YES
Mayor Kelley: YES
2
Sponsored by: City Manager
Resolution No. 07-7113
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
OPA- LOCKA, FLORIDA, AUTHORIZING THE CITY MANAGER
TO ENTER INTO AND EXECUTE AN AGREEMENT WITH
BURTON & ASSOCIATES, IN A FORM ACCEPTABLE TO THE
CITY ATTORNEY, IN THE AMOUNT OF FIFTY -NINE
THOUSAND SEVEN HUNDRED TWENTY EIGHT DOLLARS
($59,728.00) AS THE MOST RESPONSIBLE AND RESPONSIVE
PROPOSER TO THE CITY'S REQUEST FOR PROPOSALS, RFP
#07 -0622, "WATER, SEWER, SOLID WASTE, OVERHEAD &
COST ALLOCATION RATES STUDY & UPDATE ", PAYABLE
FROM ACCOUNT NO. 17- 513312
WHEREAS, the City Commission adopted Resolution No. 07 -7088 soliciting a proposal to
conduct a comprehensive study of water, sewer and solid waste rates; and
WHEREAS, three firms submitted proposals, to wit:
The Consulting Group of South Florida;
Burton & Associates
MuniFinancial; and
WHEREAS, Burton & Associates was deemed to be the most responsible and responsive
proposer.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE
CITY OF OPA- LOCKA, FLORIDA:
Section 1. The recitals to the preamble herein are incorporated by reference.
Section 2. The City Manager is hereby authorized to enter into and execute an agreement
with Burton & Associates as the most responsive and responsible proposer, pursuant to RFP #07-
0622, "Water, Sewer, Solid Waste, Overhead &Cost Allocation Rates Study & Update, in an
Resolution No. 07-7113
amount not to exceed fifty -nine thousand seven hundred twenty -eight dollars ($59,728.00), payable
from Account No. 17- 513312.
PASSED AND ADOPTED this 25 day of JULY , 2007.
Attest to:
Moved by: VICE MAYOR JOHNSON
Seconded by: COMMISSIONER MILLER
Commission Vote: 4-1
Commissioner Tydus:
YES
Commissioner Holmes:
YES
Commissioner Miller:
YES
Vice -Mayor Johnson:
Mayor Kelley:
NO
YES
MA
Approved as to form ailed legal sufficiency:
C TTO
D4tE
C:Wmuments and SettingsWrnelearyWy Doeuments\Resolutions\Agreement - Burton & Associates.doc
Sponsored by: City Manager
Resolution No. 07 -7088
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF OPA- LOCKA, FLORIDA SOLICITING A REQUEST FOR
PROPOSALS (RFP) TO CONDUCT A COMPREHENSIVE
STUDY OF WATER, SEWER AND SOLID WASTE RATES
WHEREAS, Miami -Dade County is currently conducting a rate study that will affect all
cities that purchase water and treat sewer through the County; and
WHEREAS, in anticipation of increased rates by Miami -Dade County, the City is desirous
of seeking a comprehensive study of water, sewer and solid waste rates by assessing the City's
current rate structure and providing recommendations.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE
CITY OF OPA- LOCKA, FLORIDA:
Section 1. The recitals to the preamble herein are incorporated by reference.
Section 2. The City Manager is hereby authorized to solicit an RFP to conduct a
comprehensive study of water, sewer and solid waste rates.
PASSED AND ADOPTED this 23' day of May, 2007.
(T,, ��� "I"
Resolution No.
CITY CLERK
07 -7088
Moved by: Vice Mayor Johnson
Second by: Commissioner Holmes
Commission Vote: 4-0
Commissioner Tydus: Yes
Commissioner Holmes: Yes
Vice -Mayor Johnson: Yes
Mayor Kelley: Yes
Approved as to formed legal sufficiency:
A
DATE
CADocuments and settings \v=I=w VNy nocuments\ResohMws\RR for Water, sewer & solid waste RatesAm
1
BURTON & ASSOCIATES, INC. Q F
cg y
CONTRACT FOR PROFESSIONAL SERVICES
Project No. 14501 Title: FY 2007 Utility Rate and Fee Study
This Agreement, made and entered into on the date last executed below, by and between BURTON & ASSOCIATES, INC.
and THE CITY OF OPA- LOCKA, FLORIDA, hereinafter called "CLIENT ", is for the services described under item 2 of this
Agreement.
BURTON & ASSOCIATES, INC. Contact: Mr. Michael E. Burton, President
Address: 200 Business Park Circle, Suite 101
St. Augustine, Florida 32095
Phone No. (904) 247 -0787
CLIENT Contact: Ms. Faye Douglas, Assistant Finance Director
Address: City of Opa -Locka
215 Perviz Ave
Opa- Locka, Florida 33054
Phone No. (305) 953 -2831
1. PROJECT: General Nature of Project — Conduct a Utility Rate and Fee Study.
2. SCOPE OF SERVICES: Description of services to be performed by BURTON & ASSOCIATES, INC. (if additional
pages are necessary, they are identified as Attachment B): Attachment B presents a detailed description of the scope of
services.
3. NOTICE -TO- PROCEED AND TIME OF COMPLETION: Execution of this Contract by both parties will constitute
the Notice- to-Proceed for all items included in the Scope of Services in Attachment B except for Potential Additional
Services as described therein, which will require an additional services authorization in accordance with Section 10.
Services called for herein shall be completed no later than 90 days from receipt of a notice to proceed unless otherwise
extended by the agreement of both parties.
4. COMPENSATION: The compensation to be paid BURTON & ASSOCIATES, INC. for providing the services called
for herein shall be:
x A. A Lump -Sum charge of $ 59.728
B. Unit Cost/Time Charges in Attachment A plus reimbursable expenses.
5. DURATION: This Agreement shall remain in effect until completion of the project and any additional services
authorized in accordance with Section 10, unless terminated as provided herein, or extended by mutual agreement in
writing.
IN WITNESS WHEREOF, this Agreement is accepted on the date last written below, subject to the terms and conditions
above stated and the provisions set forth on the following pages.
For CLIENT:
SIGNED:
TYPED N Jannie R.. Beverly
TITLE: City Manager
DATE: A „D„st 30, 9007
For BURTON & ASSOCL4TES, INC.:
SIGNED• 5/
r
TYPED NAME: Andrew Burnham
TITLE: Vice President
DATE: August 27, 2007
6. UNIT COST TIME CHARGES AND REIMBURSABLE EXPENSES: Unit cost time charges and reimbursable
expenses apply only if this contract is a Unit Cost/Time Charges contract as specified in Section 4. Compensation. If
applicable, unit cost time charges are defined as hourly rates specified in Attachment A, and reimbursable costs include
out -of- pocket expenses, the cost of which shall be charged at actual cost, up to any limit imposed by the CLIENT.
7. INVOICE PROCEDURE: BURTON & ASSOCIATES, INC. shall submit monthly invoices to CLIENT requesting
payment for work accomplished during each calendar month. Payment of invoices will be made by CLIENT within 30
days of receipt of invoice. Invoices for lump sum contracts will represent percentage work completed during each
calendar month.
8. INSURANCE: BURTON & ASSOCIATES, INC. shall procure and maintain throughout the term of this Agreement the
following insurance with the limits set forth herein, and shall, upon executing this Agreement, provide to CLIENT a
certificate(s) of insurance evidencing same, and showing CLIENT as an additional insured:
A. Worker's Compensation Insurance as required by law.
B. Unless otherwise provided for herein, Comprehensive General Liability Insurance including contractual liability and
liability arising out of the use of automobiles with the following limits:
(1) Bodily Injury Liability Insurance with limits of $100,000 per person and $300,000 per occurrence;
(2) Property Damage Liability Insurance with a limit of $50,000 per occurrence.
C. Unless otherwise provided for herein, Errors and Omissions Liability Insurance with a limit of $1,000,000 per claim
and aggregate.
9. TERMINATION: This Agreement may be terminated by either party by seven (7) days written notice in the event of
substantial failure to perform in accordance with the terms herein by the other party through no fault of the terminating
party. If this Agreement is so terminated, CLIENT shall pay BURTON & ASSOCIATES, INC. compensation for work
satisfactorily completed up to date of termination.
CLIENT may terminate this agreement for convenience, or suspend the work called for herein for any business reason. In
the event of such termination or suspension, CLIENT shall pay BURTON & ASSOCIATES, INC. for the work
accomplished up to the date of termination or suspension.
10. ADDITIONAL SERVICES: Additional services maybe performed under this Agreement if an Additional Services Task
Authorization is agreed to by both parties in writing.
11. PUBLIC RECORDS LAW EXEMPTION: CLIENT and BURTON & ASSOCIATES shall comply with the provisions
of Chapter 119, Florida Statutes (Public Records Law) except as provided for in the following paragraphs.
BURTON & ASSOCIATES may use its proprietary Financial Analysis and Management System (FAMS XL®) in the
accomplishment of work under this contract. This contract recognizes that FAMS XL® is a proprietary product of
BURTON & ASSOCIATES, includes trade secrets and, as such, the FAMS XL® model and its source code is exempt
from public records laws in accordance with FS 815.045, a copy of which is included below:
815.045 Trade secret information. - -The Legislature finds that it is a public necessity that trade secret information as
defined in s. 812.081, and as provided for in s. 815.04(3), be expressly made confidential and exempt from the public
records law because it is a felony to disclose such records. Due to the legal uncertainty as to whether a public
employee would be protected from a felony conviction if otherwise complying with chapter 119, and with s. 24(a),
Art. I of the State Constitution, it is imperative that a public records exemption be created. The Legislature in making
disclosure of trade secrets a crime has clearly established the importance attached to trade secret protection.
Disclosing trade secrets in an agency's possession would negatively impact the business interests of those providing
an agency such trade secrets by damaging them in the marketplace, and those entities and individuals disclosing such
trade secrets would hesitate to cooperate with that agency, which would impair the effective and efficient
administration of governmental functions. Thus, the public and private harm in disclosing trade secrets significantly
outweighs any public benefit derived from disclosure, and the public's ability to scrutinize and monitor agency action
is not diminished by nondisclosure of trade secrets.
Therefore, if BURTON & ASSOCIATES uses FAMS XL® in the accomplishment of work under this contract, BURTON
& ASSOCIATES may not be compelled to disclose FAMS XL®, or its source code, to CLIENT or any other parties for
any purpose or reason; however, BURTON & ASSOCIATES will conduct interactive work sessions with CLIENT staff
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to review the input and results of analyses conducted using FAMS XL® and will disclose and deliver to CLIENT output
schedules from the FAMS XL® model for the purpose of accomplishing the CLIENT's business. Output schedules of
FAMS XL® that are delivered to CLIENT in deliverable products such as reports, presentations, etc. are excluded from
this trade secret exemption.
12. ENTIRETY OF AGREEMENT: This writing embodies the entire agreement and understanding between the parties
hereto, and there are no other agreements and understanding, oral or written, with reference to the subject matter hereof
that are not merged herein and superseded hereby. No alteration, change or modification of the terms of the Agreement
shall be valid unless made in writing, signed by both parties hereto.
ADDENDA (if required)
ATTACHMENT A — Hourly Billing Rates (if required)
ATTACHMENT B - Scope of Services (if required)
ATTACHMENT A - HOURLY BILLING RATES
This contract is for a lump sum amount; however, the hourly billing rates authorized under this contract for
additional services authorized in accordance with Article 10 are as are follows:
Principal -in- Charge
$190
per hour
Project Director
$175
per hour
Senior Consultant
$150
per hour
Consultant
$ 95
per hour
Clerical
$ 40
per hour
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ATTACHMENT B - SCOPE OF SERVICES
Successful completion of this project will require a comprehensive and proven approach. Based upon our extensive
experience in performing similar projects for many city and county governments, we have developed a highly successful
approach to a project such as this. Our approach includes interactive work sessions with City staff with our computer models
up and running. This process allows quick and cost effective analysis of "what if' scenarios to result in final, accurate
decisions regarding the rate program which are made with a clear vision and understanding of their financial and customer
impacts.
It is our understanding that the City desires that the Study be completed as quickly as possible. Our approach is particularly
suited to this requirement because we can quickly address revenue sufficiency and determine the level of rate revenue
adjustments required in Phase 1. We can also perform a diagnostic evaluation of the City's rate structure in Phase 1, which will
set the parameters for any rate structure adjustments that may be necessary in Phase II.
If desired, the City's current rates can be adjusted on an across - the -board basis, based upon the results of the Phase I revenue
sufficiency analysis. Then sufficient time can be devoted to Phase II, during which the rate structure recommendations of the
diagnostic rate structure evaluation of Phase I can be addressed. During Phase II the other rate elements of your RFP,
including the benchmarking of occupational license and code enforcement/violation fees and land use/development and
building permit fees, can also be addressed to include evaluation of fees such as connection/capacity fees, availability of
supply and the possibility of seasonal rates, potential for cooling tower and bulk water rates, and any other elements identified
during the diagnostic rate structure evaluation of Phase I.
This approach will allow the City the flexibility to 1) address its revenue sufficiency issues and to implement an across -the-
board rate adjustment that will generate sufficient revenues to meet all of the systems requirements as soon as possible, and 2)
devote adequate time to properly structure its rates to fairly and equitably recover its cost of service, determine appropriate
overhead rates and assess a benchmarking analysis of occupational license and code enforcement/violation fees and land
use /development and building permit fees. The City will also have the option of completing Phase I1 prior to adopting any
overall rate adjustments from Phase I and to adopt the specific rates developed in Phase II which will recover the revenue
requirement identified in Phase I in accordance with the rate design criteria recommended in Phase I.
The two phases of our approach are described below:
Phase I - Perform a Revenue Sufficiency Analysis and a Diagnostic Evaluation of the City's Water Wastewater &
Solid Waste Rate Structures
In Phase 1, for the water and wastewater enterprise fund and the solid waste enterprise fund we will 1) conduct a revenue
sufficiency analysis and the development of a five and ten year rate plan and financial management program - including a
borrowing program which will identify sizing, timing and financing source of required borrowing, and 2) conduct a diagnostic
evaluation of the current water, sewer and solid waste rate structures and develop recommendations as to rate structure
modifications to meet the City's objectives and comply with generally accepted rate making practice.
We will develop the five and ten year financial management program, rate plan and rate structure recommendations using
interactive work sessions with City staff in which we will examine the impact of alternative scenarios upon key financial
indicators by use of graphical representations projected on a large screen from our computer rate models which will be up and
running and upon which we will conduct the alternatives analyses interactively with City staff.
Phase I can be completed quickly and efficiently. Our approach focuses concentrated attention during Phase I to 1) integrate
City staff into the process, 2) quickly determine the overall financial outlook for each Utility, and 3) determine the goals and
parameters for development of specific rates and charges in Phase II.
During Phase I a Rate Structure Evaluation Matrix will be developed to analyze the City's rate structure with regard to criteria
such as adequacy, fiscal security, efficiency, legality, fair and equitable cost recovery, mandated compliance, administrative
ease, etc. Also, revenue opportunities will be examined to determine expected revenue versus political acceptance and
administrative complexity. Based upon the results of the Rate Structure Evaluation Matrix analysis, recommendations
regarding rate design will be made that will guide the work in Phase II.
Phase I1- Detailed Cost Allocation, Rate Design and Benchmarking
In Phase 1I, we will conduct a fully allocated cost of service study to properly identify and allocate costs (including indirect
and interdepartmental costs), conduct a bill frequency analysis to derive the necessary customer and billing data for rate
computations and develop specific rates, charges and capacity fees for each utility integrated with a detailed customer impact
analysis.
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Rates and fees will be developed in accordance with the revenue requirements and rate structure recommendations of Phase I
and the customer impact analysis will be performed simultaneously with rate calculations, allowing us to include the City staff
in interactive work sessions to calibrate cost allocation and rate structure variables according to customer impact. As in Phase
I, in these work sessions, we will conduct alternative scenario analyses interactively with City staff with our rate models up
and running on the computer. This allows us to develop final rates ,and fees that generate sufficient revenues, yet are structured
so as to be sensitive to the City's objectives with regard to customer impact. Customer impact will be examined for each
utility rate and for the combined impact of all subject utilities upon customers of varying sizes and with various usage profiles
within customer classes. This can be used to determine the percentage of customers affected by each rate structure alternative
at different levels of usage.
Concurrently, a survey of the rates, fees and charges of selected surrounding and/or similar utilities will be provided during
this Phase of the Study. Also a benchmarking analysis will be performed of the City's Occupational License and Code
Enforcement/Violation Fees and Land Use/Development and Building Permit Fees to compare the City's current fees to peer
communities and determine if the fees need to be updated and if additional specific fees should be considered for adoption.
The scope of this project does not include the update of the City's current occupational license and code enforcement/violation
fees and land use /development and building permit fees or development of new fees. Such update and fee development can be
accomplished if desired by the City based upon the benchmarking analysis of Phase II under an additional services
authorization. Upon presentation of the results of this study to City staff and to the City Commission, we will provide
recommended changes, if required, to the City's Rate Ordinance in order to provide for the legal, administratively correct
implementation of the new Rate Program.
Potential Additional Services:
If the City determines, based upon the results of the benchmarking analysis of the City's occupational license and code
enforcement/violation fees and land use /development and building permit fees in Phase II, that it would like to update some or
all of the subject fees, the amount of such additional services would depend upon 1) how many fees will be updated, and 2)
how much participation City staff will have in the preparation of the process flow charts and cost computation spreadsheets
that must be prepared to calculate the costs associated with each fee! to be updated. If such additional services are desired upon
the completion of Phase 11, we will negotiate a lump sum additional services task. We have prepared an analysis of the
potential range of costs for such an additional services task which is presented below. Authorization of additional services will
require further City Commission approval of an Additional Services Task Authorization as required in Section 10.
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City of •..
Calculation of Cccupational
License, Code
Use/Development
Additional Services
Estimate of Range of Potential
Maximum City Staff Minimum Chv Staff
Partiolaation Ill Partieloadon 121
5 Foos
$11,787 $13,830
10 Foos
$15,692 $19,777
15 Foos
$19,596 $25,723
20 Foos
$23,500 $31,670
25 Foos
$27,404 $37,616
Cost por additional foo
abovo 5 foes
$781 $1,189
(1) Maximum QW staff Participation
- City staff will prepare all process flow charts and
cost calculation spreadsheets, conwitant wilt train Cky staff and review all flow charts
and spreadsheets.
(2) Maimum Cry staff Participation
- ConwAant wilt prepare all process flow charts and
cost calculation spreadsheets, City staff 411 provide input to conwRant as to process
flow activities costs and labor rates.
2