R04-064
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1 RESOLUTION NO. R04- ob'-l
2
3 A RESOLUTION OF THE CITY OF BOYNTON BEACH,
4 FLORIDA, AUTHORIZING EXECUTION OF TASK
5 ORDER NO. U04-5-01, FOR FURNISHING A COST OF
6 SERVICE AND CAPITAL FACILITIES CHARGE STUDY
7 ON THE CITY'S WATER, WASTEWATER AND
8 STORMWATER UTILITIES, NOT TO EXCEED THE
9 AMOUNT OF $41,386.25, TO CH2M HILL; AND
10 PROVIDING AN EFFECTIVE DATE.
11
12 WHEREAS, the Utilities Department depends upon revenues from its three primary
13 services as a means of meeting operating expenses, non-operating expenses and capital
14 expenses; and
15 WHEREAS, the Utilities Department is anticipating major expansion of its water,
16 . wastewater and stormwater facilities to accommodate population growth within its service
17 area. The high rate of growth and the increasing expense of new facilities prompt a review of
18 the Capital Facilities Charge to assure that they will adequately fund the debt service created
19 by the need to fund new facilities; and
20 WHEREAS, the City Commission, upon staff's recommendation, has deemed it
21 appropriate and in the best interests of the public to approve Task Order No. U04-5-01 with
22 CH2MHILL for the Cost of Service and Capital Facilities Charge Study, not to exceed the
23 amount of $41,386.25.
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
25 THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
26 \ Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as
I
27 being true and correct and are hereby made a specific part of this Resolution upon adoption
28 hereof.
S:\CA\RESOlAgreements\Task - Change Orders\CH2M Hill U04-5-01.doc
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1 Section 2. The City Commission of the City of Boynton Beach, Florida does
2 hereby authorize and direct the approval and execution of Task Order No. U04-5-01 with
3 CH2MHILL for the Cost of Service and Capital Facilities Charge studies no to exceed the
4 amount of $41,386.25
5 Section 3. This Resolution shall become effective immediately upon passage.
I
6 PASSED AND ADOPTED this ~ 0 day of April, 2004.
I
7
8 CITY OF BOYNTON BEACH, FLORIDA
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28 i. CIty lerk
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S:ICA\RESO\AgreementsITask - Change OrderslCH2M Hill U04-5-01.doc
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Task Order No. 04·5·01 User Rate, Capital
Facilities Charges, and Engineer's Report for
Boynton Beach Water, Wastewater, and
Stormwater Utilities
A. Background
The City of Boynton Beach, Florida (CITY) has requested that CH2M Hill (CONSULTANT)
provide services relating to updating the City's water and wastewater user rates, capital
facilities charges, and assist the City in preparing an Engineer's Report in support of a
proposed Water, Wastewater, and Storm water Revenue Bond Issue.
This Task Order addresses fees for professional services to provide rate and capital facilities
charges and an engineer's report assistance services.
B. Scope of Services
Task 1 - Prepare Water, Wastewater and Stormwater Rate Study & Cost of Services Analysis
The CONSULTANT will prepare a scope of services for the execution of water, wastewater
and stormwater rate fee structure study and related user fee schedules for these services.
Through this task, the CONSULTANT will develop a spreadsheet model to be used in
developing the projected operational and capital expenses making up the revenue
requirements (costs to be recovered through the water and wastewater, and storm water
fees) .
Task lA - Data Collection and Project Kick-Off
The CONSULTANT will provide the CITY with a detailed list of data and information
necessary to complete the rate and capital facilities charge studies, and the engineer's report.
The request will be provided to the CITY prior to the project Kick-Off meeting. At the
project Kick-Off meeting CITY staff and the CONSULTANT will meet to go over details of
task schedules and project milestones. At this meeting the CITY will provide the
CONSULTANT with the requested data as well as the status of any data requested that is
determined to be unavailable at that date. In the case that requested data is not available,
the CONSULTANT and CITY staff will jointly determine the most acceptable avenue to deal
with specific data shortfalls.
Task lB - Data Analysis and Projection Development
The CONSULTANT in cooperation with CITY staff will proceed with a process of updating
cost responsibility allocations between the water, wastewater and stormwater utilities from
the 2002 Rate Study. These allocations are necessary to isolate the financial requirements of
DFBITASK ORDER 04-01_RATESTUDY_1219031 REV. DOC 1
TASK ORDER NO. 04-01 - RATE, CAPITAL FACILITIES CHARGES, AND ENGINEERS REPORT FOR THE BOYNTON BEACH WATER, WASTEWATER, AND
STORMWATER UTilITIES
each utility (water, wastewater and stormwater) and their demands on combined facilities
and staff.
Based on these allocations and at least three years of prior billing and system financial
performance information, the CONSULTANT will project system and utility level costs for a
.§Z-year study period. Capital costs associated with current and future capital programs
anticipated to be undertaken during the study period will be included in these projections.
These system and utility level cost projections will serve as the basis for the water,
wastewater, and stormwater system revenue requirements. In the projection process the
CONSULTANT will also estimate current user demands and develop user demand
projections applicable for the forecast period. The CONSULTANT will develop projections
of the number of customers, billed water volumes, wastewater flows, and stormwater
(ERUs) for the 7-year study period.
City staff have allocated the projected system capital improvement costs between
improvements to serve existing customers, and to serve new growth. CONSULTANT will
review these allocations and suggest revisions as necessary. An initial assumption of the
analysis will be that costs associated with capacity expansion to serve new growth will be
recovered through revenues generated through the capital facilities charges. However, the
monthly water and wastewater rates will be designed to meet the respective system's cash
needs without the capital facilities charge revenues, due to fluctuations that often occur in
the capital facility charge revenues.
Based on these projections the CONSULTANT will develop up to three revenue
requirement scenarios reflective of possible operational and cost conditions that may be
encountered by the CITY. The CONSULTANT will present these scenarios to the CITY for
review. Based on the CITY's review and acceptance of a presented scenario, the
CONSULTANT will proceed with user rate update and design.
Task IC - Rate Update and Design
Utilizing the revenue requirement scenario determined as most acceptable by the CITY, the
CONSULTANT will provide the CITY with a rate design and fee schedule for each utility
that will recover revenues sufficient to meet their individual cost burden. At the CITY's
direction the CONSULTANT will continue to use the existing rate structure or provide the
CITY with a new or modified rate structure for the water, wastewater, and! or storm water
utilities. In the case that current revenue recoveries are determined to not be equitably
distributed between the water, wastewater and stormwater utilities the CONSULTANT will
discuss with the City options for adjusting the rates to bring them closer to their cost of
service (i.e. one time change, or phasing in the adjushnent over a few years). A proposed set
of rates for the 7year projection period will reflect the CITY's selected rate adjushnent
approach.
Upon completion of the analyses the CONSULTANT will meet with CITY staff to review
the preliminary final projections and fee schedules. This meeting will also include the
opportunity for final review by the CITY of the CONSULTANT's projections of the
combined system's revenue requirements, user demands, capacity requirements, allocations
of costs between the separate utilities, allocations of capital improvement costs between
existing and future users, and other information determined as critical to the study. Impacts
DFB\TASK ORDER Q4·01_RATESTUDY _1219031 REV.DOC 2
TASK ORDER NO. 04-01 - RATE, CAPITAL FACILITIES CHARGES, AND ENGINEERS REPORT FOR THE BOYNTON BEACH WATER, WASTEWATER, AND
STORMWATER UTILITIES
of the proposed rates on typical user bills,(including various customer classes} and a
comparison of the typical users bills under the proposed rates with other similar nearby
communities will also be provided to the CITY at this time.
The meeting will also be used to discuss transition period rate schedules and revenue
sufficiency issues related to sufficient recovery of complete operational and capital costs
allocable to both the existing system customers and new growth. Adjustments to model
assumptions and resulting projections of demand, system costs/usage, and cost allocations
will be made as appropriate at this time based on CITY staff comments and direction.
Task ID - Review and Present Rate Study Results
A draft rate study report will be developed by the CONSULTANT. The draft rate study
report will document the data, assumptions, analyses conducted, and the results of the rate
design efforts. Five copies of a first draft report (including one unbound copy) presenting
the proposed fee schedules will be provided for CITY review. A meeting with CITY staff
will be held to discuss CITY comments on the draft report. Subsequent to this meeting, the
Consultant will incorporate all comments and issue a Final Draft report. (10 copies,
including one unbound) . A second meeting will then be held with City staff to review the
Final Draft before presenting it to the City Commission.
The CONSULTANT will participate as requested by the CITY in presentation of the study
results to the CITY commission at up to two workshops and/ or public hearings on the
proposed fees. A final report incorporating the CITY's comments on the draft report and
adopted fee schedules will be prepared. Ten copies of the final report will be submitted to
the CITY (including one unbound copy).
Deliverables for Task 1:
· Draft revenue requirement scenarios
· First Draft of rate study report (5 copies)
· Final Draft of rate study report (10 copies)
· Final rate study report (10 copies)
Task 2 - Prepare Water and Wastewater Utility Capital Facilities Charges Study
A means of recovering the capital costs allocable to increasing system capacity necessary to
accommodate the needs of future customers of the water and wastewater utilities is through
the collection of capital facilities charges. The CONSULTANT will develop a schedule of
capital facilities charges that will be designed to recover the costs of providing capacity to
serve new growth. This calculation of the CITY's capital facilities charges will include both
the determination of the reimbursement and improvement components commonly included
in capital facilities charges. The supporting calculations including current and planned
investments associated with anticipated long term capital improvement programs
specifically allocable to the water and wastewater utilities and the capacity requirements of
DFBITASK ORDER 04-01_RATESTUDY_1219031 REV.DOC 3
TASK ORDER NO. 04-01 - RATE, CAPITAL FACILITIES CHARGES, AND ENGINEERS REPORT FOR THE BOYNTON BEACH WATER, WASTEWATER, AND
STORMWATER UTILITIES
new connections to the water and wastewater facilities will be provided to the CITY through
this effort. The CONSULTANT will utilize the capacity projections developed in Task 1.
The CONSULTANT will meet with CITY staff to review the preliminary capital facilities
charges schedules and projections. A comparison of projected capital facilities charges with
other nearby communities will also be conducted and presented to the CITY at this meeting.
Revisions will be made to the assumptions associated with the proposed projections and fee
schedules at this time at the specific direction of CITY staff. Results of this analysis will be
incorporated into the first draft, final draft and final rate study report.
Task 3 - Prepare Capital Program Engineers Report and Capital Program Assistance
The CONSULTANT will prepare and provide assistance to the CITY in the preparation of
the engineer's report necessary for the acquisition of the 2004 Capital Program Bond funds.
Task 3A - Prepare Capital Program Engineer's Report and Capital Program Assistance
The CONSULTANT will provide the CITY with a complete engineer's report summarizing
multiple aspects of the CITY's water, wastewater, and storm water system. This report will
detail the current administration of the combined utility. It will present an organizational
chart of the management structure and operational responsibilities of the combined, water,
wastewater, and stormwater departments. Current conditions within the service areas will
be presented in conjunction with future service area customer, volume, flow and ERU
projections. The report will include a section summarizing the current condition of the
water, wastewater, and stormwater facilities. Specific federal, state, water management
district or local regulatory actions, regulations, or consent decrees impacting the operations
of specific facilities will also be identified. The capital improvement program will also be
presented along with financial projections of future revenue conditions sufficient to meet all
bond covenant requirements associated with debt service and operational obligations
resulting from the acquisition of the capital bond funds. Up to 2 drafts of the engineer's
report will be prepared for review by the bond consulting team. CONSULTANT will meet
with the bond consulting team to review each of the drafts. It is assumed that all of the
drafts will be submitted electronically. A final photo-ready version of the report will also be
submitted electronically for inclusion in the official statement for the bond issue.
Deliverables for Task 3:
. Draft reports (up to 2 drafts)
. Final report
Task 4 - Additional Services
Additional services maybe provided by the CONSULTANT, at the CITY's request. These
services could include participation at the request of the CITY in presentations of the
engineer's report and results to the necessary bond rating agencies. The compensation for
this additional task(s) will be determined based on the level of effort and participation
identified by the CITY.
DFB\TASK ORDER 04-01_RATESTUDY_1219031 REV.DOC 4
TASK ORDER NO. 04-01 - RATE, CAPITAL FACILITIES CHARGES, AND ENGINEERS REPORT FOR THE BOYNTON BEACH WATER, WASTEWATER, AND
STORMWATER UTILITIES
C. Assumptions
In addition to the work items discussed above, the following assumptions were made in
establishing the scope of this task order and its associated fee. Changes and/or
modifications in the above work items or these assumptions are considered an Additional
Services Item under the terms of the contract. Assumptions include:
1. Variations or increases in the number of revenue requirement scenarios, or rate design
options prepared for the CITY are considered to be Additional Services.
2. Participation in more meetings, workshops, or presentations than identified in Section B
Tasks 1-3 are considered to be Additional Services.
3. Preparation of additional drafts of the engineer's report, or CONSULTANT participation
in engineer's report presentations to bond rating agencies (identified in Optional Task 4)
at the request of the CITY are considered to be Additional Services.
D. Contract Reference
This Task Order shall be performed under the terms and conditions described within the
Agreement for General Engineering Consulting Services dated December 2003 between the
City of Boynton Beach and CH2M HILL.
E. Obligations of the CITY
1. For the Water, Wastewater and Stormwater Rate Study, Capital Facilities Charge Study,
and Engineer's Report, the CITY shall provide the CONSULTANT within 30 days of
request, all records, data and information related to the combined utility system, water
system, wastewater system and stormwater system determined to be necessary for the
performance of services specified herein.
2. CITY will provide timely review of all materials submitted, and participate in meetings
to review CITY comments on these materials.
F. Compensation
Compensation by the CITY to the CONSULTANT for Tasks 1-3 inclusive is $39,370.05.
Compensation for these tasks will be on a lump sum basis in accordance with the above
mentioned Agreement. An allowance of $2,016.20 is incorporated into the proposed fee for
Task 4 as a contingency for additional services. The funds will not be expended without
written direction from the City. Any services requested by the City under this task will be
provided on a time and materials basis. The total fee with Task 4 is $41,386.25.
G. Schedule
The CONSULTANT will commence Tasks 1,2, and 3 upon receipt of written authorization
and will complete all work associated with Tasks 1, 2, and 3 of this Task Order 04-5-01
within six (6) months from the receipt of authorization. A detailed schedule will be
developed in cooperation with the CITY's project manager during the initial Task of this
project.
DFB\TASK ORDER Q4-01_RATESTUDY_1219031 REV.DOC 5
TASK ORDER NO. 04-01 - RATE, CAPITAL FACILITIES CHARGES, AND ENGINEERS REPORT FOR THE BOYNTON BEACH WATER, WASTEWATER, AND
STORMWATER UTILITIES
APPROVED BY:
CITY OF BOYNTON BEACH, FLORIDA
By: ¥~~
Kurt Bressner
City Manager
Da ted this .fJ2- dayof~ ,2004.
SUBMITTED BY:
CH2M HILL, INe.
By: /hpVJ,4j.1-!' a. ¿
Tom McCormick, P.G.
Vice President
Dated this <10 day of FCb , 2004.
DFB\TASK ORDER 04-01_RATESTUDY_1219031 REV. DOC 6
Labor HourslPrice Page 1 of 4
Task Order 04-01 - Boynton Beach Rate, tit CH2MHILL
Impact Fee and Eng. Study ...
Labor Hours/Price
Chargeable Tasks with Period Subtotals
Description Bill Rate Hours Amount
Calendar Year 2004
Top Task P1
Task P1.01 - Data Collection & Kick Off
Accounting $80.00 4 $320.00
Administrative Assisant $75.00 1 $75.00
CSM $150.00 4 $600.00
Senior Economist $110.00 7 $770.00
Senior Principal Economist $155.00 5 $775.00
Staff Economist $80.00 6 $480.00
Subtotal for 27 $3,020.00
Total Other Direct Expenses $161.80
Total Travel $18.75
Subtotal for Task P1.01 - Data Collection & Kick Off 27 $3,200.55
Task P1.02 - Data Analysis - Cost Allocations
Administrative Assisant $75.00 2 $150.00
CSM $150.00 2 $300.00
Senior Economist $110.00 16 $1,760.00
Senior Principal Economist $155.00 6 $930.00
Staff Economist $80.00 32 $2,560.00
Subtotal for 58 $5,700.00
Total Other Direct Expenses $342.20
Subtotal for Task P1.02 - Data Analysis - Cost Allocations 58 $6,042.20
Task P1.03 - Rate Update and Design
Administrative Assisant $75.00 4 $300.00
Senior Economist $110.00 4 $440.00
Senior Principal Economist $155.00 5 $775.00
Staff Economist $80.00 12 $960.00
Subtotal for 25 $2,475.00
Total Other Direct Expenses $150.00
Total Travel $18.75
Subtotal for Task P1.03 - Rate Update and Design 25 $2,643.75
Task P1.04 - Review and Presentation of Results
Administrative Assisant $75.00 16 $1,200.00
CSM $150.00 4 $600.00
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Labor Hours/Price Page 2 of 4
Task Order 04-01 - Boynton Beach Rate, e CH2MHILL
Impact Fee and Eng. Study ....
Labor Hours/Price
Chargeable Tasks with Period Subtotals
Description Bill Rate Hours Amount
Editor $80.00 6 $480.00
Graphics $75.00 2 $150.00
Senior Economist $110.00 8 $880.00
Senior Principal Economist $155.00 14 $2,170.00
Staff Economist $80.00 12 $960.00
Subtotal for 62 $6,440.00
Total Other Direct Expenses $440.80
Total Travel $37.50
Subtotal for Task P1.04 - Review and Presentation of Results 62 $6,918.30
Subtotal for Top Task P1 172 $18,804.80
Top Task P2
Task P2.01 - Data Collection
Accounting $80.00 3 $240.00
CSM $150.00 1 $150.00
Senior Economist $110.00 5 $550.00
Senior Principal Economist $155.00 3 $465.00
Staff Economist $80.00 4 $320.00
Subtotal for 16 $1,725.00
Total Other Direct Expenses $94.40
Total Travel $18.75
Subtotal for Task P2.01 - Data Collection 16 $1,838.15
Task P2.02 - Data Analysis
Administrative Assisant $75.00 2 $150.00
Senior Economist $110.00 4 $440.00
Senior Principal Economist $155.00 2 $310.00
Staff Economist $80.00 16 $1,280.00
Subtotal for 24 $2,180.00
Total Other Direct Expenses $141.60
Subtotal for Task P2.02 - Data Analysis 24 $2,321.60
Task P2.03 - Capital Facilities Fee Design
Administrative Assisant $75.00 2 $150.00
Senior Economist $110.00 4 $440.00
Senior Principal Economist $155.00 2 $310.00
Staff Economist $80.00 6 $480.00
Subtotal for 14 $1,380.00
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Labor tlours/Pnce Page 3 of 4
Task Order 04-01 - Boynton Beach Rate, e CH2MHILL
Impact Fee and Eng. Study ....
Labor Hours/Price
Chargeable Tasks with Period Subtotals
Description Bill Rate Hours Amount
Total Other Direct Expenses $82.60
Subtotal for Task P2.03 - Capital Facilities Fee Design 14 $1,462.60
Task P2.04 - Review and Presentation of Results
Administrative Assisant $75.00 2 $150.00
CSM $150.00 2 $300.00
Editor $80.00 1 $80.00
Graphics $75.00 1 $75.00
Senior Economist $110.00 4 $440.00
Senior Principal Economist $155.00 8 $1,240.00
Staff Economist $80.00 6 $480.00
Subtotal for 24 $2,765.00
Total Other Direct Expenses $166.60
Total Travel $37.50
Subtotal for Task P2.04 - Review and Presentation of Results 24 $2,969.10
Subtotal for Top Task P2 78 $8,591.45
Top Task P3
Task P3.01 - Preparation of Engineers Report and Bond Study
Accounting $80.00 3 $240.00
Administrative Assisant $75.00 20 $1,500.00
CSM $150.00 17 $2,550.00
Editor $80.00 10 $800.00
Graphics $75.00 4 $300.00
Senior Economist $110.00 15 $1,650.00
Senior Principal Economist $155.00 16 $2,480.00
Staff Economist $80.00 22 $1,760.00
Subtotal for 107 $11,280.00
Total Other Direct Expenses $656.30
Total Travel $37.50
Subtotal for Task P3.01 - Preparation of Engineers Report and
Bond Study 107 $11,973.80
Subtotal for Top Task P3 107 $11,973.80
Top Task P4
Task P4.01 - Addtl Services
Accounting $80.00 2 $160.00
CSM $150.00 2 $300.00
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LalJOr HourSlt'nce Page 4 of 4
Task Order 04-01 - Boynton Beach Rate, __ CH2MHILL
Impact Fee and Eng. Study ~
Labor Hours/Price
Chargeable Tasks with Period Subtotals
Description Bill Rate Hours Amount
Senior Economist $110.00 6 $660.00
Senior Principal Economist $155.00 2 $310.00
Staff Economist $80.00 6 $480.00
Subtotal for 18 $1,910.00
Total Other Direct Expenses $106.20
Subtotal for Task P4.01 - Addtl Services 18 $2,016.20
Subtotal for Top Task P4 18 $2,016.20
Subtotal for Calendar Year 2004 375 $41,386.25
Grand Total $41,386.25
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