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HomeMy WebLinkAboutNULL (18) MINUTES OF REGULAR MEETING DANIA BEACH CITY COMMISSION TUESDAY, DECEMBER 8, 2009 — 7:00 P.M. 1. Call to Order/Roll Call Mayor Castro called the meeting to order at 7:00 p.m. Present: Mayor: Anne Castro Vice-Mayor: C.K. "Mad' McElyea Commissioners: Bob Anton Walter Duke City Manager: Robert Baldwin City Attorney: Thomas Ansbro Deputy City Clerk: Miriam Nasser 2. Invocation and Pledge of Allegiance Mayor Castro gave the invocation followed by the Pledge of Allegiance to the United States Flag. 3. Presentations and Special Event Approvals 3.1 Special Event request for the Beach Blast 2010 to be held at 100 N. Beach Road on Saturday, January 16, 2010 from 11:00 a.m. - 6:00 p.m. Commissioner Anton motioned to approve the Special Event request for the Beach Blast 2010; seconded by Commissioner Duke. The motion carried unanimously. 4. Proclamations There were no proclamations at this meeting. 5. Citizen Comments Bobbie Grace, 110 NW 81h Avenue, spoke about the mosquito problems they have in her neighborhood. She thought this was a citywide issue which needed to be addressed. Ms. Grace asked City staff to call the agency in charge to have them come and service our City. She wished everyone a happy holiday season. Moe Moe's Brooklyn Hot Dogs, 1200 S. Federal Highway, thanked the Commission and all those who were involved in the successful grand opening of his restaurant. He was pleased to see the Dania Beach Press published an article about his business. Clare Vickery, Grace Cafd and Gallery, 49 N. Federal Highway, noted that they have already filed the Special Event application for the Art and Antiques Festival to be held in January, 2010. She advised she has met with Parks and Recreation Director Jones, Assistant City Manager Donnelly, the Chamber of Commerce and several other businesses. Ms. Vickery said they are aware of some issues due to construction of the Library and the Parking Garage, however she thought they have a good program for the parking. She noted Director Jones would make arrangements to have a bus service available for those visitors parking elsewhere. Ms. Vickery noted that as in previous years, Assistant City Manager Donnelly would be presenting a budget to the Commission for consideration. She distributed copies of the proposed poster advertising the event. Colin Donnelly, Assistant City Manager, noted that this year Ms. Vickery is trying to work as a joint group to help cover the expenses involved in the event. He advised that in the past the City had budgeted $10,000, representing $6,000 for advertising and the additional amount to cover police officers, tents, etc. Assistant City Manager Donnelly indicated that they are now working on some preliminary numbers in order to start advertising the event. Mayor Castro asked City Manager Baldwin if there were any funds in the budget for the Art and Antiques Festival. City Manager Baldwin responded not specifically for this event. Assistant City Manager Donnelly noted that Ms. Vickery has asked for funds to pay for tents, BSO details, advertisement and staff costs, at a total of approximately $11,000. Mayor Castro noted the cost of the tents would be recovered from the fees we charge the vendors. Commissioner Duke asked Ms. Vickery for a realistic number of visitors they expect for this event. Ms. Vickery noted it varied from 1,800-3,000 visitors for each event, and the number keeps growing every year. She clarified that the rental fees for the tents would be recuperated by the City. Commissioner Duke noted he is concerned about the parking. He asked staff to explain how to resolve this issue. Assistant City Manager Donnelly noted that the 109 Park parking would not be available, since by that time Hank Thomas would have started preparation for the Parking Garage construction. He indicated that we would need to use any available parking including the lot adjacent to the FEC tracks. Minutes of Regular Meeting 2 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. Ms. Vickery pointed out that she has had events of about 400 people in her gallery and everyone parked in her parking lot and on the street, without using any private parking. She advised that the 4,000 visitors she referred to would be dispersed. Ms. Vickery said they are used to it and will make the necessary arrangements to accommodate everyone. Commissioner Duke expressed his concern regarding the liability issues and added that he wants to make sure the parking situation is resolved. He further noted that $11,000 is a lot of money and we should support the event to the extent that we can. Mayor Castro noted that the event will take place in January, 2010, therefore the organizers need to start advertising now. Mayor Castro would like to see the City support this event because it brings people to our town. She asked CRA Director Earle to provide information on the groundbreaking for the Parking Garage at 109 Park. Jeremy Earle, CRA Executive Director, advised that Hank Thomas is currently working on the foundation permits for the Parking Garage. He noted that the groundbreaking of the Library would be combined with the Parking Garage on January 9 or January 11, 2010, depending on the availability of Broward County to participate. Director Earle indicated that Mr. Thomas plans to start construction in January. Mayor Castro wants to make sure parking for City Hall is addressed during construction. Assistant City Manager Donnelly advised that advertising costs would be approximately $5,000. He also provided the other costs involved in the event. Assistant City Manager Donnelly noted that we would have 93 tents available. Kristen Jones, Director of Parks and Recreation, advised that the cost of the tents is $100.00 each and we would rent them for$50.00 each because of construction going on during the event. Commissioner Anton confirmed with Director Jones that the 93 tents have to be reserved two weeks in advance in order to have them available for the event. He remarked that parking will be an issue because of construction, but the event will be held on a weekend and we will try to resolve it. Commissioner Anton asked how many businesses are participating in the event. Director Jones advised that the Chamber of Commerce will contact the businesses to find out who wants to participate. Ms. Vickery noted we could use another tent provider who would not require the two-week notice and would charge $75.00 instead of$100.00. She advised that we can pay them after the event, depending on the number of vendors renting the tents. Director Jones asked Ms. Vickery to email her the information. Commissioner Anton noted he was impressed with the number of people who have attended the Festival in previous years. He further said that he is disappointed to see that no one has Minutes of Regular Meeting 3 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. approached any businesses in town considering the event is happening in January. Commissioner Anton was also concerned at the high cost for advertising. Ms. Vickery noted that advertising is very expensive but vital in this type of event. She clarified that last year's advertising costs were $10,000.00. Ms. Vickery indicated that the good news is that we are using more intemet and networking tools which would reduce the advertising expenses. She said that they are hoping to see new businesses participate this year. Vice-Mayor McElyea noted he donated some money for the motorcycle event last year, which was held in conjunction with the Art and Antiques Festival. He indicated he is willing to do the same this year. Commissioner Anton motioned to donate $3,000 for Advertising for the Arts and Antique Festival; seconded by Mayor Castro. Commissioner Duke is concerned with several issues, such as parking and the fact that no other businesses have been involved so far. He noted he likes the Festival but it is hard for him to spend taxpayer money during this difficult time. The motion failed on the following 2-2 Roll Call vote: Commissioner Anton Yes Vice-Mayor McElyea No Commissioner Duke No Mayor Castro Yes 6. Public Safety Reports Donn Peterson, BSO Chief of Police, advised that a week ago several individuals who were prepared to do a home invasion robbery were arrested behind the Baer's Furniture store in the City. He reported that the arrest went well, without any incidents involved. Chief Peterson commended the BSO officials who conducted the arrest bringing those individuals into custody. He noted that the holiday operation plan is being implemented during the holiday season and people should be cognizant of the fact that they should not leave visible items in their cars. Jack McCartt, Fire Chief, noted they have received numerous calls from residents stating that their houses are on fire. He advised this is due to the smoke testing being conducted. Chief McCartt added that it will continue happening for the next couple of weeks. The community is advised to call 911 to make sure everything is well. He wished everyone Happy Holidays. Commissioner Duke noted it has come to his attention that Chief McCartt submitted his resignation. He thanked him for his service and his professionalism. Commissioner Duke added he was very impressed with the 5-year plan submitted by Chief McCartt. He wished him well. Chief McCartt noted that Dania Beach has a fantastic Fire Department. Minutes of Regular Meeting 4 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. City Manager Baldwin noted that Chief McCain has agreed to stay with the City until we find another Fire Chief, so he could still be here for another 60 days. 7. Consent Agenda Items removed from Consent Agenda: #7.5 and#7.6 Item added to Consent Agenda: #7.6 7.1 Minutes: Approve minutes of November 10, 2009 City Commission Meeting Approve minutes of November 17, 2009 Special Meeting- Water Supply Issues 7.2 Travel Requests: None Resolutions 7.3 RESOLUTION #2009-227 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT DATED APRIL 14, 2009, FOR CONSULTANT SERVICES WITH THE MELLGREN PLANNING GROUP, INC. TO PROVIDE ADDITIONAL CONSULTING SERVICES TO THE CITY IN CONNECTION WITH THE WESTSIDE MASTER PLAN, FOR AN AMOUNT NOT TO EXCEED TWENTY-NINE THOUSAND, SEVEN HUNDRED FIFTY DOLLARS ($29,750.00); PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. 7.4 RESOLUTION#2009-232 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO PURCHASE ONE 2009 PIERCE VELOCITY PUC (PUMP UNDER CAB) 75' AERIAL LADDER IN THE AMOUNT OF $758,795.00 PLUS $28,300.00 FOR A 5 YEAR EXTENDED WARRANTY EQUALING A TOTAL OF $787,095.00 FROM TEN-8 FIRE EQUIPMENT, INC., UNDER THE FLORIDA FIRE CHIEFS' ASSOCIATION, FLORIDA SHERIFFS' ASSOCIATION BID NO. 08-08-0909, WITHOUT COMPETITIVE BIDDING AND WITHOUT ADVERTISEMENT FOR BIDS; PROVIDING FOR FUNDING; PROVIDING FOR CONFLICTS;FURTHER, PROVIDING FOR AN EFFECTIVE DATE. 7.5 RESOLUTION #2009-233 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING PARTICIPATION IN AN ASSISTANCE TO FIREFIGHTERS GRANT PROGRAM FUNDED THROUGH THE UNITED STATES DEPARTMENT OF HOMELAND SECURITY FEDERAL EMERGENCY MANAGEMENT AGENCY RELATING TO EXPANDING FIRE AND EMERGENCY SERVICES STAFFING; AUTHORIZING THE EXECUTION OF ALL DOCUMENTS NECESSARY TO APPLY FOR THE GRANT; PROVIDING FOR COMMISSION NOTICE OF AWARD; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. City Attorney Ansbro read the title of Resolution#2009-233. Minutes of Regular Meeting 5 Dania Beach City Commission Tuesday, December 8,2009—7:00 p.m. Commissioner Anton noted this is a great opportunity to apply for this grant of approximately $900,000.00, which would be funding for nine firefighter positions for a period of two years. He confirmed that we would not be hiring anyone until we know that the grant has been awarded. Chief McCartt advised that funding derived from this grant will cover 9 firefighter positions, including salaries and benefits. He noted that if the grant is awarded we will come back to the Commission regarding the hiring of personnel. Commissioner Anton motioned to adopt Resolution #2009-233; seconded by Commissioner Duke. Discussion followed between Mayor Castro and Chief McCartt regarding the amount the grant would cover and the expenses involved in hiring 9 firefighters with benefits. City Manager Baldwin noted that the Commission will get a thorough analysis before moving forward with hiring. The motion carried on the following 4-0 Roll Call vote: Commissioner Anton Yes Vice-Mayor McElyea Yes Commissioner Duke Yes Mayor Castro Yes ADDENDUM 7.6 RESOLUTION#2009-234 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE A CONTRACT WITH DIVERSIFIED DRILLING CORPORATION IN AN AMOUNT NOT TO EXCEED $100,000.00, FOR THE REDRILLING OF THE "G" WELL IN DANIA BEACH BASED UPON A LEE COUNTY WELL DRILLING CONTRACT, WITHOUT COMPETITIVE BIDDING; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. City Attorney Ansbro read the title of Resolution #2009-234. Vice-Mayor McElyea noted that we are not using a local vendor for this project. He said that someone who has been in business for over 50 years was not given the opportunity to bid for the job. Vice-Mayor McElyea asked for clarification of this item. City Manager Baldwin noted that normally we would have gone out for bid, but due to the water supply problem we decided to piggyback from Lee County. Commissioner Duke noted that as we attempt to revitalize our local economy, we should try to provide jobs to local vendors, to the extent that we can. He remarked that he understands the urgency of the matter; however, as long as it is in the best interest of our taxpayers, we should first consider our local businesses for future projects. Minutes of Regular Meeting 6 Dania Beach City Commission Tuesday, December 8,2009—7:00 p.m. Dominic Orlando, Director of Public Services, explained that because time is of the essence, staff was able to piggyback with Lee County, which we are allowed to do without the bidding process, for a not to exceed price. He noted he is not aware that the local vendor referred to by Vice-Mayor McElyea is part of any piggyback agreement. Commissioner Anton noted that we all agree that we need to use local businesses whenever possible. Vice-Mayor McElyea motioned to adopt Resolution #2009-234; seconded by Commissioner Duke. The motion carried on the following 4-0 Roll Call vote: Commissioner Anton Yes Vice-Mayor McElyea Yes Commissioner Duke Yes Mayor Castro Yes Commissioner Anton motioned to adopt the Consent Agenda, with the addition of Item #7.6 and the exception of Items #7.5 and #7.6; seconded by Vice-Mayor McElyea. The motion carried unanimously. 8. Bids and Requests for Proposals There were no proposals on this agenda. 9. Public Hearines and Site Plans 9.1 ORDINANCE#2009-016 AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING CHAPTER 25,"TRAFFIC', OF THE CITY CODE OF ORDINANCES BY AMENDING SECTION 25-79,"FINES",TO INCREASE FINES FOR SPECIFIED PARKING VIOLATIONS PURSUANT TO SECTION 25-79 AND TO ESTABLISH A FINE FOR OVERTIME PARKING IN THE CITY BEACH PARKING LOT; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER PROVIDING FOR AN EFFECTIVE DATE. (SECOND READING) City Attorney Ansbro read the title of Ordinance#2009-016. Mayor Castro opened the Public Hearing. Seeing as there was no one to speak in favor or opposition, she closed the Public Hearing. Vice-Mayor McElyea motioned to adopt Ordinance#2009-016 on second reading; seconded by Commissioner Anton. The motion failed on the following 2-2 Roll Call vote: Commissioner Anton Yes Vice-Mayor McElyea No Commissioner Duke No Mayor Castro Yes Minutes of Regular Meeting 7 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. 9.2 RESOLUTION #2009-229 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, APPROVING A VACATION REQUEST SUBMITTED BY THE CITY OF DANIA BEACH AS PROPERTY OWNER, TO VACATE THE PLATTED PARK INTEREST CREATED BY THE"MAP OF MODELO,NOW DANIA PLAT"FOR LAND UPON WHICH THE DANIA BEACH ADMINISTRATIVE BUILDING IS LOCATED AND LEGALLY DESCRIBED IN EXHIBIT"A",A COPY OF WHICH IS ATTACHED TO THIS RESOLUTION; PROVIDING FOR CONFLICTS; FURTHER,PROVIDING FOR AN EFFECTIVE DATE. City Attorney Ansbro read the title of Resolution#2009-229. Corinne Lajoie, Principal City Planner, explained that an application is being processed with Broward County to vacate the platted park interest created by the "Map of Modelo, now Dania Plat", for the land upon which the Dania Beach City Hall Administration Building is located. She noted that a resolution is needed to vacate the public park use restriction to enable the City and Broward County to proceed with the Public Library construction. Vice-Mayor McElyea clarified with staff that the entire plat includes Fire Station #1. Mayor Castro opened the Public Hearing. Seeing as there was no one to speak in favor or opposition, she closed the Public Hearing. Commissioner Duke motioned to adopt Resolution 42009-229; seconded by Vice-Mayor McElyea. The motion carried on the following 4-0 Roll Call vote: Commissioner Anton Yes Vice-Mayor McElyea Yes Commissioner Duke Yes Mayor Castro Yes 9.3 RESOLUTION#2009-228 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA,ADOPTING A WESTSIDE MASTER PLAN FOR THE AREA WITHIN THE CITY OF DANIA BEACH GENERALLY LOCATED WEST OF INTERSTATE 95 AND INCLUDING THE OCEAN WATERWAY MOBILE HOME PARK AND THE MELALEUCA GARDENS NEIGHBORHOOD; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. City Attorney Ansbro read the title of Resolution#2009-228. Bob Daniels, Director of Community Development, explained that the West Side Master Plan has now been completed by the Mellgren Planning Group and is being submitted to the Commission for consideration and adoption. Mayor Castro opened the Public Hearing. Bob Mikes, 601 NW 70' Street, noted that this is probably the most significant land use change that the City has seen in years. He indicated that the majority of the people that would be affected by this plan have no idea of the impact this would cause to them. Mr. Mikes stated that the County wants to move forward with the Airport expansion, to the point that they have today Minutes of Regular Meeting 8 Dania Beach City Commission Tuesday, December 8,2009—7:00 p.m. made an offer to buy the Hilton Hotel for $60M. He is concerned that the rezoning, code changes, etc. will definitely affect a lot of people. Mr. Mikes thought this item should have been delayed to see the outcome on the Airport issue. The impression people got at these community meetings is that there would be options available to them. He noted that if we adopt this plan, we are changing people's communities, maybe in an irreversible manner. Furthermore, if the Airport expansion becomes a reality, this plan, in a way, would be obsolete. Mr. Mikes said that although the City made several attempts to reach out to the community, there is still the need to poll the residents and provide them with material they can read and understand. Patty Hart, 517 NE 2"d Place, noted that she attended all of the meetings and in every presentation the consultants asked the residents: "if the airport becomes a reality what do you want to see?" She thought people who attended the meetings should be aware of what they can expect. Seeing as there was no one else to speak in favor or opposition, Mayor Castro closed the Public Hearing. Commissioner Anton noted that in every meeting regarding this plan, we all agreed that the prudent thing to do is to plan for both scenarios. He stated that the Airport issue is not over yet; there is a lot of material that they need to review before they make a decision and this would take about 12-18 months. Commissioner Anton said that there is a possibility that they would build the south runway, but we could also prevail in court and force them to take another action. He added that it would be a big mistake on our part not to plan for the future. Michele Mellgren, the Mellgren Planning Group, noted that this plan positions the City proactively to address any future land use and development opportunities to enhance residential neighborhoods as well as a good chance for economic development. She remarked that this is not a land use or a zoning plan, it is a policy document. Commissioner Anton would like the Mellgren Planning Group to make a presentation to the Melaleuca Gardens Homeowners Association and also the Griffin Civic Association, because those are the people who live in that corridor. He further thanked the Mellgren Planning Group for an excellent job. Commissioner Duke noted he attended all the meetings for this project. We have had significant input and the results of the plan reflect all the hard work. He indicated that this is a good proactive plan and the Mellgren Planning Group has done a good job. Commissioner Duke spoke of the possibility of the Airport buying the Hilton Hotel for $60M. We need to continue redeveloping our City and supporting our marine industry as well, because it will bring more jobs to our residents. Lastly, he stated that this is a good plan, we are being proactive, we have a unified vision of it and we need to execute it. Vice-Mayor McElyea noted he supports the fight against the Airport expansion, however, it is a difficult situation and the south runway may still happen whether we like it or not. Minutes of Regular Meeting 9 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. Mayor Castro noted that she has always supported this plan. She said that, whether we win this battle or not, we have done the best for the homeowners in that community. It is a starting point in pursuing other avenues we may need to take at some point. Mayor Castro indicated she is not against the Airport expansion, but they could build a north runway a lot cheaper than the south runway. She stated that if we do not pursue the legal battle, we have no leverage. Mayor Castro noted that her goal is to implement this plan. She remarked that she will continue to oppose the south runway expansion because there are a lot of things they have not yet thought about. Mayor Castro pointed out that she is not attacking any specific County Commissioner, but the board who made the decision. She thanked Michele Mellgren's team for approaching the homeowners and getting them to understand the plan. Mayor Castro recognized that this document allows the flexibility that we will need in order to protect our residents. Commissioner Duke motioned to adopt Resolution #2009-228; seconded by Vice-Mayor McElyea. The motion carried on the following 4-0 Roll Call vote: Commissioner Anton Yes Vice-Mayor McElyea Yes Commissioner Duke Yes Mayor Castro Yes 9.4 ORDINANCE#2009-007 AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING THE TEXT OF THE FUTURE LAND USE ELEMENT OF THE DANIA BEACH COMPREHENSIVE PLAN TO CREATE A REGIONAL ACTIVITY CENTER("RAC")LAND USE CLASSIFICATION;AMENDING THE FUTURE LAND USE PLAN MAP OF THE DANIA BEACH COMPREHENSIVE PLAN TO CHANGE THE LAND USE OF APPROXIMATELY 1,350 ACRES AS DESCRIBED IN EXHIBIT "A" ATTACHED TO THIS ORDINANCE, FROM COMMUNITY FACILITIES, COMMERCIAL, CONSERVATION, EMPLOYMENT CENTER, INDUSTRIAL, LOCAL ACTIVITY CENTER, LOW (5) RESIDENTIAL, LOW-MEDIUM (10) RESIDENTIAL, MEDIUM(16) RESIDENTIAL, IRREGULAR(13) RESIDENTIAL, IRREGULAR(15) RESIDENTIAL, PARKS AND RECREATION, TRANSPORTATION, AND UTILITIES, TO REGIONAL ACTIVITY CENTER("RAC"); PROVIDING FOR TRANSMITTAL TO THE BROWARD COUNTY PLANNING COUNCIL AND STATE AGENCIES; PROVIDING FOR ADOPTION PURSUANT TO SECTION 163.3184, FLORIDA STATUTES; REQUESTING RECERTIFICATION FROM THE BROWARD COUNTY PLANNING COUNCIL; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. (ADOPTION STAGE) City Attorney Ansbro read the title of Ordinance #2009-007. Corinne Lajoie, Principal City Planner, noted that the intent of the Regional Activity Center (RAC) land use plan map designation of the subject area, is to allow redevelopment to begin in the CRA, as outlined in the recently adopted CRA Plan. This land use plan map amendment will provide the needed flexibility to permit increased development on certain sites without the need to process site specific land use plan amendments. She advised that the City and the South Florida Water Management District (SFWMD) worked together to develop policy language to be inserted upon adoption of the RAC amendment that would ensure that the City would not over commit its available water supplies through pending development. Ms. Lajoie indicated that the new RAC policy language firmly commits the City to resolving its expired Consumptive Use Permit (CUP) issues with the SFWMD in a timely manner. She further said that staff is currently reviewing the draft CUP provided by the SFWMD. Ms. Lajoie listed the previous actions taken Minutes of Regular Meeting 10 Dania Beach City Commission Tuesday, December 8,2009—7:00 p.m. on this item by the different government agencies. Lastly, she noted that the Broward County Commission approved the RAC at their meeting today. Commissioner Duke noted that there was recently a flyer going around regarding this action, which stated that we have 7,000 Section 8 homes. As a result of this, he asked Community Development Director Daniels to prepare a fact sheet explaining this is just to change text and allow us some flexibility to accommodate future growth. He asked staff to post that document on the Web Site so our residents can be well informed. Mayor Castro opened the Public Hearing. Bob Mikes, 601 NW 7`' Street, noted that during his sixteen years as a Commissioner, he tried to stop inappropriate uses coming to the City. He asked the Commission to include strong language in their Code so our residents can be protected. Mr. Mikes said that if we get the wrong project in a specific area, it could cost the City a lot of money. Seeing as there was no one else to speak in favor or opposition, Mayor Castro closed the Public Hearing. Commissioner Duke assured everyone that there is a lot of protection occurring and that we need to redevelop or we are going to decay. Commissioner Duke motioned to adopt Ordinance #2009-007; seconded by Commissioner Anton. The motion carried on the following 4-0 Roll Call vote: Commissioner Anton Yes Vice-Mayor McElyea Yes Commissioner Duke Yes Mayor Castro Yes Commissioner Anton commended Mayor Castro, Commissioner Duke and Community Development Director Daniels for an excellent job in representing the City at today's County Commission meeting. 10. Discussion and Possible Action 10.1 Request by the Broward League of Cities to appoint a representative to fill the vacancy of Commissioner Albert C. Jones. Mayor Castro noted that she would have no objection to serve in this capacity, as she has done in the past. Vice-Mayor McElyea motioned to nominate Mayor Castro to represent the City at the Broward League of Cities meetings; seconded by Commissioner Anton. The motion carried unanimously. Minutes of Regular Meeting 11 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. 10.2 SE 5u'Avenue Traffic Circle—Ms. DelSapio's Legal Fees City Attorney Ansbro referred to the letter received from Patricia Rathbum, attorney representing Elizabeth DelSapio, in the SE 5 s Avenue traffic circle issue. He noted that it was not the intent of the Commission to pay Ms. DelSapio's legal fees, when it was agreed to make her whole. He pointed out that the other lady involved in this matter did not hire a lawyer. City Attorney Ansbro advised the City can only pay attorneys' fees by statute or by a contract, and this is not the case. He noted it is at the Commission's discretion to decide whether to pay the $2,700.00 bill. Commissioner Duke motioned to pay Ms. DelSapio the amount of $2,700.00 to cover her attorney's fees, seconded by Vice-Mayor McElyea. Mayor Castro noted that paying for these services would not set a good precedent and we need to be very careful. She did not mean to pay for Ms. DelSapio's legal fees when we said we would make the impacted residents whole. Mayor Castro indicated that one resident hired an attorney and the other one did not, and still the outcome was the same for both parties. Commissioner Duke thinks this is the right thing to do. He noted that this is about property rights, and making her whole should include payment of legal fees. Commissioner Anton noted that Ms. DelSapio did not need an attorney. He agreed with Mayor Castro that if we pay these legal fees it will set a bad precedent. Commissioner Anton remarked that the Commission voted in favor of removing the traffic circle because it was the right thing to do, not because she hired a lawyer. He stated that he would not support this payment. Vice-Mayor McElyea noted that Ms. DelSapio hired a lawyer because she did not know what to do. He pointed out that we spend a lot of money on the Airport and other issues but we are debating payment of this small amount. The motion failed on the following 2-2 Roll Call vote: Commissioner Anton No Vice-Mayor McElyea Yes Commissioner Duke Yes Mayor Castro No 10.3 The Hiring of a Federal Legislative Consultant City Manager Baldwin noted that it is appropriate to explore the hiring of a federal legislative consultant to assist in the planning and implementation of the City's marine plan, and particularly, evaluate and make necessary changes to federal laws or regulations to replace the FEC railroad bridge at the Dania Cut-Off Canal. He clarified that this was not done through a bid process, only through telephone quotes. City Manager Baldwin indicated that CRA Director Earle discussed the matter with Marlowe and Company. Jeremy Earle, CRA Executive Director, noted that although he had no previous references of Marlowe and Company, they were recommended by another CRA Director. He added that he Minutes of Regular Meeting 12 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. and City Manager Baldwin spoke with them and explained what the City needed. Director Earle has since talked to about six city managers from other cities, who advised him they are satisfied with their performance. He asked the Commission to approve their contract for a one year period, so that we can begin to work with our congressional representatives on issues that are of vital importance to the City. City Manager Baldwin noted that Marlowe and Company mostly deals with municipal clients. He further indicated that if the Commission wants to go through the bid process, we can do it, but time is of the essence and we need a strong presence in Washington, D.C. City Manager Baldwin stated that the other option would be to approve their contract for a short period of time, for an amount under $25,000, and bring it back to the Commission for approval at a later date. Commissioner Anton noted that we have to find the way to get some funding to help us with redevelopment. He does not want to sign a long-term agreement, but to proceed with this one on a one-year basis. Vice-Mayor McElyea remarked that we need to get funding as soon as possible. Vice-Mayor McElyea motioned to accept Marlowe and Company's proposal to provide lobbyists services for a fee of $45,000, over a period of twelve months; seconded by Commissioner Anton. The motion carried unanimously. 11. Commission Comments 11.1 Commissioner Anton Commissioner Anton noted that at today's County Commission meeting they authorized to start negotiations for the acquisition of the Hilton Hotel and the Dania Boat Works. He asked staff to provide a report of the actual tax loss to the City and any other associated issues. Commissioner Anton asked City Attorney Ansbro if he, or the law office of White and Case, could approach the County to find out how the City would be compensated for the tax dollars lost with these properties. He remarked that the Airport issue is not a done deal; they are worried about the lawsuit because they do not know what the judges' ruling is going to be. Commissioner Anton noted that Kim Flynn, Principal at Olsen Middle School, is retiring. He thanked her for her hard work at the school and wished her the best on her retirement. 11.2 Commissioner Duke Commissioner Duke referred to the possible purchase of the Hilton Hotel and Dania Boat Works by the County. He noted he inquired if cities get compensated for tax loss during the acquisition of properties and they advised him not typically. Commissioner Duke further said that the City can object to the taking but there is no statutory reason to receive compensation for it. He asked City Attorney Ansbro to confirm this information and report back to the Commission. Minutes of Regular Meeting 13 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. Commissioner Duke spoke about the One Ton Tug event sponsored by the Lions Club at the beach last Sunday. He noted that prior to the event he heard that the Boat Parade had been cancelled. Commissioner Duke said he was unaware of this cancellation and remarked that we need to have a better communication. He told City Manager Baldwin this was unacceptable and asked him to address this issue to avoid this situation from happening again. 11.3 Vice-Mayor McElyea Vice-Mayor McElyea spoke about the Historic Homes Tour last Saturday. He noted it was a very successful event and recognized those who participated. Vice-Mayor McElyea further thanked City staff for providing the shuttle bus service. 11.4 Mayor Castro Mayor Castro noted that the SW Community Center looks beautiful and that we are only waiting for a transformer from Florida Power and Light (FPL). She contacted Lynn Shatas of FPL who will try to move the process forward. Mayor Castro advised that the Library groundbreaking is tentatively scheduled for Saturday, January 9, 2010, but we have to coordinate with Broward County. She noted we also need to invite other community and library representatives and publicize it well. Mayor Castro noted that since the Workshop meeting on water issues is not so urgent, she would like to schedule it in January, to allow for full participation of vendors, Commissioners and staff. The Commission agreed to schedule the Workshop on Water Issues in January, 2010. Mayor Castro noted that the motion to adopt Ordinance #2009-016, increasing the parking fines, failed under item #9.1. She remarked that this revenue was included in this year's budget and she does not want to spend money that is no longer available. Mayor Castro asked staff to bring a report at the next Commission meeting stating the source to be used to replace this lost revenue, whether it would be Mid-Year Adjustments, Contingency or any other fund. Mayor Castro asked Public Services Director Orlando for an update on the Mausoleum project. Dominic Orlando, Director of Public Services, advised that the Mausoleum at Westlawn Cemetery should be finished by the end of this year; and the one at Dania Memorial should be completed in March,2010. Mayor Castro noted that there are a lot of exciting things going on in Dania Beach. She stated that we had a good 2009 and hoped that 2010 will be even better. Mayor Castro thanked staff for another hard-working year. 12. Appointments Minutes of Regular Meeting 14 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. There were no appointments at this meeting. 13. Administrative Reports Items #13.2 and#13.3 were heard before Item #13.1 13.1 City Manager 13.1.1 Water/Sewer Strategic Review City Manager Baldwin noted that although the cost of the contract being proposed for a firm to perform a City Water/Sewer Supply Strategic Study is under $25,000, the Commission had asked to provide three proposals in order to make a final decision. He noted that staff tried to find firms that were not closely associated with other government agencies, such as the Cities of Hollywood, Fort Lauderdale and Broward County. City Manager Baldwin advised that the consultants are here to make their presentations. Michael E. Burton, President, Burton and Associates provided an overview of his company which is attached to and incorporated into these minutes. He noted his company has been in business since 1988 and they specialize in the provision of utility rate design and financial planning services to local governmental utilities. Mr. Burton indicated that he has been involved in similar situations to the one the City is currently dealing with. He said that he spoke with Public Services Director Orlando and Fred Bloetscher. Mr. Burton thinks that part of the problem is to understand the different variables and alternatives, and what the consequences would be. He advised that some of the consequences could include regulatory and permitting issues, financial implications, etc. He advised that the City would have to spend capital funds to add capacity in order to accomplish things in a timeline. Mayor Castro asked if they would include a risk analysis in their proposal. Mr. Burton responded in the affirmative. He advised that they would interview all the agencies involved to do a comparative analysis and consider several criteria. Mr. Burton indicated that the City could move forward with the plan which is already on the table and proceed with the nanofiltration project. Discussion followed between Mayor Castro and Mr. Burton regarding the different alternatives available to the City. Mr. Burton noted they plan to present a clear graphical format with different scoring for staff to identify what they want to do. Ben Chen, Chairman, Chen and Associates, referred to the information contained in the agenda packet. He noted he has a long history with the water supply issue in this region, specifically around Dania Beach. Minutes of Regular Meeting 15 Dania Beach City Commission Tuesday, December 8,2009—7:00 p.m. Mayor Castro asked Mr. Chen if they were currently working on any projects with Broward County, the City of Hollywood, or the City of Fort Lauderdale. Mr. Chen noted he was the project engineer for the Brian Piccolo Wellfield. They selected the Stirling Road site for the South Regional Wellfield. Mayor Castro asked Mr. Chen what deliverables he perceived for the scope of services for the City of Dania Beach. Mr. Chen explained the proposed scope of services, which would include the following alternatives: 1)the City to treat its own water under the agreement with Broward County; 2) bulk purchase of water from the City of Hollywood; 3) a combination of the first two alternatives. He advised there could be problems, such as permitting time. Mayor Castro noted that the County is having issues with the South Florida Water Management District (SFWMD) regarding their permit application and water capacity. Mr. Chen stated that signing an agreement with the City of Hollywood to purchase water from them does not mean we automatically get the water. If the SFWMD realize that Hollywood has extra water to sell, they could take away some of that water. He noted that the study is simple; however, there are things that the City may not be able to control. Lastly, Mr. Chen advised that some of the costs involved in his proposal represent the meetings that need to be held in order to have all the interested parties participate in the decision. Tim J. Hall, Vice-President, Civil Engineering, Keith and Schnars, P.A., provided information on his company which is included in the agenda packet. He indicated that they are familiar with the water issues and the agencies that we need to deal with. Mr. Hall advised that decisions need to be made, whether to use raw water or finished water and the benefits of each alternative. They have the contacts the City requires to ask the necessary questions. He noted that there are several options we can look at; and added that they may be able to bring something to the table that was not previously considered. Commissioner Duke noted that we are looking for a firm that can provide us with an exact assessment of our situation. He said that we want to hear of the long-term alternatives available. Commissioner Duke stated that we need to know whether to outsource or not, and the financial implications involved. He asked if Keith and Schnars would be in a position to provide these services. Mr. Hall noted that the City has already set the basis of the goals they want to achieve. Furthermore, there are certain decisions that the City needs to make that will have a short-term as well as a long-term effect. Commissioner Duke noted that their study tends to be a short-term solution, with an eye to a long-term solution. He remarked that we need a company that would help us be proactive for the next 25 years. Commissioner Duke confirmed with Mr. Hall that this is something they could do, but not for$25,000.00. Minutes of Regular Meeting 16 Dania Beach City Commission Tuesday,December 8,2009—7:00 p.m. City Manager Baldwin noted that we feel all three firms are qualified to do the job. Commissioner Duke noted that the consultants did a good job trying to keep the cost under $25,000.00; however, it looks as if they are all looking at a two-phase project. He indicated that Keith and Schnars provided a short term solution; we would therefore need to hire them again in the future. Commissioner Duke thought that using a local firm, i.e. Keith and Schnars or Chen and Associates, would be beneficial to the City. Vice-Mayor McElyea noted that although he liked both Keith and Schnars and Chen and Associates, he prefers Keith and Schnars. Commissioner Anton noted that Mr. Chen was right as regards having everybody working together. He indicated that we need someone who has the connections and the ability to approach the SFWMD. Commissioner Anton further said that there is a third option to be considered: the interconnect could be fixed and brought back, instead of using the Cities of Hollywood, Fort Lauderdale, or Broward County. He stated that all three firms are good, but he would choose Chen and Associates. Mayor Castro noted that she liked Keith and Schnars as well as Burton and Associates, but Mr. Chen mentioned an important point that we all need to consider: the political component of the issue. She asked the members of the Commission to rank the three firms while City Attorney Ansbro tabulates the results. Ranking: Commissioner Anton: Chen and Associates#1; Keith and Schnars#2; Burton and Associates#3. Commissioner Duke: Keith and Schnars#1; Chen and Associates #2; Burton and Associates#3. Vice-Mayor McElyea: Keith and Schnars #1; Chen and Associates#2; Burton and Associates#3. Mayor Castro: Burton and Associates #1; Chen and Associates #2; Keith and Schnars#3. Commissioner Anton motioned to contract with Keith and Schnars, P.A. for the Water/Sewer Strategic study; seconded by Commissioner Duke. The motion carried unanimously. 13.2 City Attorney City Attorney Ansbro had no comments. Minutes of Regular Meeting 17 Dania Beach City Commission Tuesday, December 8,2009—7:00 p.m. 13.3 City Clerk - Reminders Thursday, December 10, 2009—6:00 p.m. Special Meeting—Water Agreement with Hollywood Commissioner Anton requested staff make arrangements for him to participate by phone in the Special Meeting on Thursday, December 10. He asked to be called on his cell phone. Item #13.1 was heard after Item#13.3 14. Adiournment Mayor Castro adjourned the meeting at 9:25 p.m. AT EST: � n _ _ � CITY OF DANIAB�EA+CH LOUISE STILSON, CMC �tP�'S Fiesrpr� ANNE CASTRO CITY CLERK 0�° MAYOR-COMMISSIONER Approved: January 12, 2010 Minutes of Regular Meeting 18 Dania Beach City Commission Tuesday, December 8,2009—7:00 p.m. FORM FOR ADDRESSING CITY COMMISSION qWAT REGULAR OR SPECIAL CITY COMMISSION MEETINGS The City is required by state law to keep minutes of City Commission meetings. To properly identify persons who addres s ss the City Commission in those minutes, the City requests that this form be completed and provided to the City Clerk, before the meeting begins. DATE OF COMMISSION MEETING:i �// , 200-9 PRINT NAME: l21 t� ADDRESS: ] U !/U W PHONE NO. (optional): PLEASE CHECK ONE OR BOTH OF THE BOXES BELOW: 1) \--j1 _CITIZEN COMMENTS: Comments by Dania Beach citizens or interested parties that are not part of the regular printed agenda may be made during each Commission meeting during the period set aside for"Citizen Comments." A thirty(30)minute"Citizen Comments"period shall be designated on the agenda for citizens and interested persons to speak on matters not scheduled on that day's agenda The citizen comments' period shall begin promptly at 7:30 PM. Each speaker shall be limited to 3 minutes for his or her comments. Persons desiring to speak during the citizen comment period shall inform the City Clerk immediately prior to the beginning of the meeting of their intention to speak. If more than 10 speakers express a desire to speak, the Commission shall determine on a meeting by meeting basis whether to (a) extend the time allotted for citizen comments to accommodate all speakers, or (b) whether to limit the number of speakers or amount of time per speaker. A speaker's time shall not be transferable to another speaker. PLEASE BRIEFLY DESCRIBE THE SUBJECT MATTER OF YOUR COMMENT: - <NP5 2) -- PUBLIC HEARINGS—ITEM # (AS PRINTED ON AGENDA) PLEASE NOTE: IF YOU WISH TO SPEAK ON AN ITEM THAT PERTAINS TO A"ZONING"TYPE OF MATTER(FOR EXAMPLE,A SITE PLAN, VARIANCE, SPECIAL EXCEPTION OR SIMILAR TYPE OF ITEM KNOWN AS A"QUASI-JUDICIAL" MATTER, YOU ARE SUBJECT TO BEING ASKED TO SWEAR OR AFFIRM THAT YOU WILL BE TRUTHFUL AS TO YOUR COMMENTS OR TESTIMONY. YOU MAY ALSO BE SUBJECT TO QUESTIONS ASKED OF YOU BY AN APPLICANT OR AN APPLICANT'S REPRESENTATIVE OR ATTORNEY WHICH RELATE TO THE ITEM. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE BY THE CITY COMMISSION WITH REGARD TO ANY MATTER CONSIDERED AT THIS MEETING OR HEARING WILL NEED A RECORD OF THE PROCEEDINGS,AND FOR SUCH PURPOSE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS 1S MADE WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. LOBBYIST REGISTRATION REQUIRED-REGISTRATION AS A LOBBYIST IN THE CITY OF DANIA BEACH 1S REQUIRED IF ANY PERSON, FIRM OR CORPORATION IS BEING PAID TO LOBBY ANY CITY COMMISSIONER ON ANY MATTER OR ISSUE PURSUANT TO CITY ORDINANCE NO. 01-93. REGISTRATION FORMS AND COPIES OF THE ORDINANCE ARE AVAILABLE IN T'iE CITY CLERK'S OFFICE AT CITY HALL. G:\Agenda\PUBLIC SPEAKING FORM.doc FORM FOR ADDRESSING CITY COMMISSION AT REGULAR OR SPECIAL CITY COMMISSION MEETINGS The City is required by state law to keep minutes of City Commission meetings. To properly identify persons who address the City Commission in those minutes, the City requests that this form be completed and provided to the City Clerk, before the meeting begins. DATE OF COMMISSION MEETING Der 200q_ PRINT NAME: oc �C Q ADDRESS: S f� PHONE NO. (optional): PLEASE CHECK ONE OR BOTH OF THE BOXES BELOW: 1) - CITIZEN COMMENTS: Comments by Dania Beach citizens or interested parties that are not part of the regular printed agenda may be made during each Commission meeting during the period set aside for"Citizen Comments." A thirty(30)minute"Citizen Comments"period shall be designated on the agenda for citizens and interested persons to speak on matters not scheduled on that day's agenda. The citizen comments' period shall begin promptly at 7:30 PM. Each speaker shall be limited to 3 minutes for his or her comments. Persons desiring to speak during the citizen comment period shall inform the City Clerk immediately prior to the beginning of the meeting of their intention to speak. If more than 10 speakers express a desire to speak, the Commission shall determine on a meeting by meeting basis whether to (a) extend the time allotted for citizen comments to accommodate all speakers, or (b) whether to limit the number of speakers or amount of time per speaker. A speaker's time shall not be transferable to another speaker. PLEASE BRIEFLY DESCRIBE THE SUBJECT MATTER OF YOUR COMMENT: l l--I�'" E&. off' �)tbl(c,� &r+Q_k a � 2) _PUBLIC HEARINGS—ITEM # (AS PRINTED ON AGENDA) PLEASE NOTE: IF YOU WISH TO SPEAK ON AN ITEM THAT PERTAINS TO A"ZONING"TYPE OF MATTER(FOR EXAMPLE,A SITE PLAN, VARIANCE, SPECIAL EXCEPTION OR SIMILAR TYPE OF ITEM KNOWN AS A "QUASI-JUDICIAL" MATTER, YOU ARE SUBJECT TO BEING ASKED TO SWEAR OR AFFIRM THAT YOU WILL BE TRUTHFUL AS TO YOUR COMMENTS OR TESTIMONY. YOU MAY ALSO BE SUBJECT TO QUESTIONS ASKED OF YOU BY AN APPLICANT OR AN APPLICANT'S REPRESENTATIVE OR ATTORNEY WHICH RELATE TO THE ITEM. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE BY THE CITY COMMISSION WITH REGARD TO ANY MATTER CONSIDERED AT THIS MEETING OR HEARING WILL NEED A RECORD OF THE PROCEEDINGS,AND FOR SUCH PURPOSE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS 1S MADE WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. LOBBYIST REGISTRATION REQUIRED-REGISTRATION AS A LOBBYIST IN THE CITY OF DANIA BEACH IS REQUIRED IF ANY PERSON, FIRM OR CORPORATION IS BEING PAID TO LOBBY ANY CITY COMMISSIONER ON ANY MATTER OR ISSUE PURSUANT TO CITY ORDINANCE NO. 01-93. REGISTRATION FORMS AND COPIES OF THE ORDINANCE ARE AVAILABLE IN T'IE CITY CLERK'S OFFICE AT CITY HALL. G:\Agenda\PUBLIC SPEAKING FORM.doc FORM FOR ADDRESSING CITY COMMISSION 1WAT REGULAR OR SPECIAL CITY COMMISSION MEETINGS The City is required by state law to keep minutes of City Commission meetings. To properly identify persons who address the City Commission in those minutes,the City requests that this form be completed and provided to the City Clerk,before the meeting begins. S DATE OF COMM SI N MEETING: 1200 I 61. PRINT NAME: i ADDRESS: A/` PHONE NO. (optional): G f y, /G, ��Z PLEASE CHECK ONE OR BOTH OF THE BOXES BELOW: 1) -- CITIZEN COMMENTS: Comments by Dania Beach citizens or interested parties that are not part of the regular printed agenda may be made during each Commission meeting during the period set aside for"Citizen Comments." A thirty(30)minute"Citizen Comments"period shall be designated on the agenda for citizens and interested persons to speak on matters not scheduled on that day's agenda. The citizen comments' period shall begin promptly at'7.30 PM. Each speaker shall be limited to 3 minutes for his or her comments. Persons desiring to speak during the citizen comment period shall inform the City Clerk immediately prior to the beginning of the meeting of their intention to speak. If more than 10 speakers express a desire to speak, the Commission shall determine on a meeting by meeting basis whether to (a) extend the time allotted for citizen comments to accommodate all speakers, or (b) whether to limit the number of speakers or amount of time per speaker. A speaker's time shall not be transferable to another speaker. PLEASYi,BRIEFLY DESCRIBE THE SUB CT MATTER OF YOUR COMMENT: 2) PUBLIC HEARINGS—ITEM # (AS PRINTED ON AGENDA) PLEASE NOTE: IF YOU WISH TO SPEAK ON AN ITEM THAT PERTAINS TO A"ZONING"TYPE OF MATTER(FOR EXAMPLE,A SITE PLAN, VARIANCE, SPECIAL EXCEPTION OR SIMILAR TYPE OF ITEM KNOWN AS A "QUASI-JUDICIAL" MATTER, YOU ARE SUBJECT TO BEING ASKED TO SWEAR OR AFFIRM THAT YOU WILL BE TRUTHFUL AS TO YOUR COMMENTS OR TESTIMONY. YOU MAY ALSO BE SUBJECT TO QUESTIONS ASKED OF YOU BY AN APPLICANT OR AN APPLICANT'S REPRESENTATIVE OR ATTORNEY WHICH RELATE TO THE ITEM. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE BY THE CITY COMMISSION WITH REGARD TO ANY MATTER CONSIDERED AT THIS MEETING OR HEARING WILL NEED A RECORD OF THE PROCEEDINGS,AND FOR SUCH PURPOSE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS 1S MADE WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. LOBBYIST REGISTRATION REQUIRED-REGISTRATION AS A LOBBYIST IN THE CITY OF DANIA BEACH 1S REQUIRED IF ANY PERSON, FIRM OR CORPORATION IS BEING PAID TO LOBBY ANY CITY COMMISSIONER ON ANY MATTER OR ISSUE PURSUANT TO CITY ORDINANCE NO. 01-93. REGISTRATION FORMS AND COPIES OF THE ORDINANCE ARE AVAILABLE IN T'IE CITY CLERK'S OFFICE AT CITY HALL. G:\Agenda\PUBLIC SPEAKING FORM.doc FORM FOR ADDRESSING CITY COMMISSION AT REGULAR OR SPECIAL CITY COMMISSION MEETINGS The City is required by state law to keep minutes of City Commission meetings. To properly identify persons who address the City Commission in those minutes,the City requests that this form be completed and provided to the City Clerk, before the meeting begins.. DATE OF COMMISSION COMM ISSIONMEETING: C , 200_Z PRINTNAME: dP/� IN/ /0/(oC ADDRESS: Z /1/1-/ / Z 5; 6 PHONE NO. (optional): PLEASE CHECK ONE OR BOTH OF THE BOXES BELOW: 1) - CITIZEN COMMENTS: Comments by Dania Beach citizens or interested parties that are not part of the regular printed agenda may be made during each Commission meeting during the period set aside for"Citizen Comments." A thirty(30)minute"Citizen Comments"period shall be designated on the agenda for citizens and interested persons to speak on matters not scheduled on that day's agenda. The citizen comments' period shay. begin promptly at 7:30 PM. Each speaker shall be limited to 3 minutes for his or her comments. Persons desiring to speak during the citizen comment period shall inform the City Clerk immediately prior to the beginning of the meeting of their intention to speak. If more than 10 speakers express a desire to speak, the Commission shall determine on a meeting by meeting basis whether to (a) extend the time allotted for citizen comments to accommodate all speakers, or (b) whether to limit the number of speakers or amount of time per speaker. A speaker's time shall not be transferable to another speaker. PLEASE BRIEFLY DESCRIBE THE SUBJECT MATTER OF YOUR COMMENT: 2) PUBLIC HEARINGS —ITEM # / (AS PRINTED ON AGENDA) PLEASE NOTE: IF YOU WISH TO SPEAK ON AN ITEM THAT PERTAINS TO A"ZONING"TYPE OF MATTER(FOR EXAMPLE,A SITE PLAN, VARIANCE, SPECIAL EXCEPTION OR SIMILAR TYPE OF ITEM KNOWN AS A "QUASI-JUDICIAL" MATTER, YOU ARE SUBJECT TO BEING ASKED TO SWEAR OR AFFIRM THAT YOU WILL BE TRUTHFUL AS TO YOUR COMMENTS OR TESTIMONY. YOU MAY ALSO BE SUBJECT TO QUESTIONS ASKED OF YOU BY AN APPLICANT OR AN APPLICANT'S REPRESENTATIVE OR ATTORNEY WHICH RELATE TO THE ITEM. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE BY THE CITY COMMISSION WITH REGARD TO ANY MATTER CONSIDERED AT THIS MEETING OR HEARING WILL NEED A RECORD OF THE PROCEEDINGS,AND FOR SUCH PURPOSE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS 1S MADE WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. LOBBYIST REGISTRATION REQUIRED-REGISTRATION AS A LOBBYIST IN THE CITY OF DANIA BEACH IS REQUIRED IF ANY PERSON, FIRM OR CORPORATION IS BEING PAID TO LOBBY ANY CITY COMMISSIONER ON ANY MATTER OR ISSUE PURSUANT TO CITY ORDINANCE NO. 01-93. REGISTRATION FORMS AND COPIES OF THE ORDINANCE ARE AVAILABLE IN T"IE CITY CLERK'S OFFICE AT CITY HALL. G:\Agenda\PUBLIC SPEAKING FORM.doc I � � Qz . 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C � L � � J L IL �..� � o 00 � � � ao � � cn UO � Ha �-•� co 11 oo ❑ U ❑ ❑ J ❑ cA ❑ ADDITIONAL INFORMATION 417RITEM #13.1 OF ftCEMBER 8,2009 -rCOMMISSION AGENVA BURTON & ASSOCIATES December 4, 2009 Ms. Nanci Denny,CPPB Purchasing/Contracts Coordinator City of Dania Beach 100 W. Dania Beach Blvd. Dania Beach, Florida 33004 Re: Proposal to Conduct a Potable Water Supply Strategic Study Dear Ms. Denny: Burton & Associates is pleased to present this proposal to conduct a Potable Water Supply Strategic Study. This letter presents our proposal and I have attached a qualifications summary of our qualifications in water resources consulting. Understanding of the Scope of Services • It is our understanding that the desires the selected consultant to conduct a Potable Water Supply Strategic Study that evaluates long-term City relative risks and costs of internal potable water production (using raw water supply for an existing lime softening water treatment plant and planned nanofiltration plant) and alternatives that meet long-term potable water supply needs through other supply alternatives such as bulk purchase or sales with other potable water providers. The study should address pending and established regulatory issues. It should also include the availability of sewer capacity to meet future City water use and Infiltration and Inflow projections. The study shall provide deliverables of including a "draft" report provided to the City Manager, a Final written report to the City Manager and City Commission and presentation of the Final report to the City Commission for their questions and consulting responses. Proiect Team Burton & Associates will be the contractor for this work and will have overall responsibility for successful completion of the study. However, to address any technical/engineering issues we would suggest that we either rely on City engineering resources or we could include an engineering firm on our team if we are selected and such an independent resource is desired by the City. We have worked with a number of engineering firms recently including PBS&J, AECOM, McKim & Creed, and Jones Edmunds to name a few and would consider other • Burton&Associates 200 Business Park Circle,Suite 101 •St.Augustine,Flonda 32095•Phone(904)247-0787•Fax(904)241-7708 E-mail:mburton@burtomndassociates.com Page 1 L firms of the City's choosing if we are selected and it is determined that such an independent resource is desirable. I will serve as Principal in Charge for Burton & Associates and will have overall responsibility for successful completion of the project. Andy Burnham will service as our Project Director and will be responsible for the day to day activities of the project. Both Andy and I will attend all meetings with City staff, the City Manager and the City Commission. Andy will be assisted on the project by Kevin Krueger. All members of our team are familiar with water resource issues in your area through our recent work with Lake Worth, Lake Clarke Shores, Ft. Lauderdale and Cooper City. Resumes for each member of our team are included in the attached qualifications summary. Approach In order to accomplish the objective of the study, we have developed a project work plan with specific tasks and subtasks identified. Our proposed project work plan is presented below,but it is important to state that the proposed work plan is based upon our limited understanding of the City's desires, and if we are selected we recommend that we meet with City staff to determine if any refinements or adjustments need to be made in order to address the City's specific requirements before proceeding with the Study. We believe that there is flexibility to make such adjustments within the cost threshold of the study stated in your RFP. Task 1: Meet with City staff to Develop an Understanding of the Background and Objectives of the Study • 1.1 Conduct kickoff meeting with City staff to review the background and objectives of the study. 1.2 Review background information provided by City. Task 2: Identify Alternative Water Supply Solutions and Conduct a Comparative Analysis relative to the City's Current Plan 2.1 Identify alternative water supply solutions such as bulk purchase or sales with other water providers. 2.2 Evaluate the City's current plan and the alternatives identified in the prior sub- task in terms of: a. Physical feasibility, limitations or other issues b. Availability of sewer capacity to meet future City water use and infiltration and inflow projections. C. Permitting/regulatory feasibility, timing, etc. d. Practical feasibility e. Financial implications - funding and rate impacts f. Political considerations to be identified with City staff g. Other issues as identified during the study Burton&Associates 200 Business Park Circle,Suite 101 •St.Augustine,Florida 32095•Phone(904)247-0787•Fax(904)241-7708 E-mail:mbunon@burionandassociates.com Page 2 r 2.3 Prepare a Technical Memo (TM) for review with City staff. TM will serve as the basis for preparation of a Draft Report for presentation to the City Manager and City Commission after incorporating input from City staff. iv in ut/comments and prepare a Draft 2.4 Review TM with City staff to receive p p p Report. Task 3: Presentation to City Manager, Preparation of Final Report and presentation to City Commission 3.1 Present the results of the study to the City Manager as reflected in the Draft Report developed in Task 2.4. 3.2 Make adjustments based upon input from the City Manager and prepare a Final Draft Report. 3.2 Present the results of the Study as reflected in the Final Draft Report to the City Commission. 3.4 Make any final adjustments based upon input from the City Commission and issue a Final Report of the results of the study. Cost Based upon the above work plan, we have developed a Project Work Plan and Cost Estimate Schedule (Schedule) which is attached to this letter. Based upon this schedule we estimate that the project can be completed for approximately $19,980. This includes an allowance of approximately $4,580 for an engineering sub-consultant if desired by the City. If we rely on • engineering input from the City's internal engineering resources, the cost estimate for Burton &Associates work on the project would be approximately$15,400. Nellotiablc Scope and Cost If we are selected, we suggest that prior to finalizing a contract, we meet with City staff to review the desired scope of services compared to our proposed scope of work to ensure that we all have the same understanding as to what will be accomplished during the Study. At that time any adjustments can be made and our proposed scope of work and our estimated cost can be adjusted accordingly based upon adjustment to the tasks and estimated man-hours needed. We feel that any adjustments, if needed, could be accommodated within the budget amount indicated in your RFP. • Burton&Associates 200 Business Park Circle,Suite 101 •St.Augustine,Florida 32095•Phone(904)247-0787•Fax(904)241-7708 E-mail:mburron®burtonandassociates.com Page 3 ti Conclusion • We appreciate the opportunity to present this proposal for this important project and we would welcome the opportunity to be of service to the City. If you have any questions, or need any additional information, do not hesitate to contact me at (904) 247-0787. Very truly yours, Michael E. Burton President i � Burton lo Associates • 200 Business Park Circle,Suite 101 •St.Augustine,Florida 32093•Phone(904)247-0787 Fax(904)74I-7708 E-mail:mburton®bunonandassociates.com Page 4 N m Om F m a m N - m G�m C f N M N N N M U O N Ov ao o mry00000 0o mN ° oo 0 ooN Nom o P Q efr � N m w 2 m O O f N { N O .0 N N a O O m O N . 1 O v O a O N b P N m S paw Y N N-—N- m O m6 w L • m m N c W V N$ N m m uE 1 E E ° u h M x a eo 41, 3 65 'ems n'm� 2vi oE ° o wmin � Ns0 eg mow; a '� mm u g U c g m m A t w _ n a E E � C � a3wV ui �2� � m LLg h g o o x�gms u o e o a 8 A m E,E= g p iyz n 3 w F E= 2 E F.aE mE.FY ° sA sE� , o � m 8 'c_ y 3 q �9 N�.n Y9V1 `�2sN N i o gm e Z Y f ] 0 m Y wd C m G C �Ay E 'm ' wm,i 'U .4 w ' ~ m E _c n°, 0 ua° m I L `I eE $�S n� rE g w g m w x a e n a o u w a u t w x w m1 a, W W G] ql N m m W W W W a W W W W N < 6 F 6 Q < a Q `� Qoo Q � Qo Qo � o 0000 • WATER RESOURCES FINANCIAL & RATE CONSULTING SERVICES QUALIFICATIONS THROUGHPROVIDING SOLUTIONS i BURTON & AssociATES Utility & Governmental Economics Consultants 200 Business Park Circle, Suite 101 St, Augustine, FL 32095 (904) 247-0787 f a URTON & AssocIATES !_'tili'v n Governmental&conomics Consults • 9. TABLE OF CONTENTS Table of Contents.................................................... ... Letter of Transmittal................................................................ iv 1. Firm Profile...........................................................................1 1.1 Firm Background..........................................................................1 1.2 Areas of Practice..........................................................................1 1.3 Bond Issues..................................................................................2 1.4 Publications.................................................................................3 1.5 Our"Live Interactive Decision Support Process"........................3 1.5.1 Introduction to the Process..................................................4 1.5.2 Components of the Process.................................................5 2. Project Team & Previous Experience......................................9 2.1 Project Team Organization..........................................................9 2.2 Sample Proposed Project Team ................................................10 2.3 Project Team Resumes..............................................................14 2.4 Previous Experience ..................................................................20 2.4.1 References..........................................................................20 • 2.4.2 Similar Project History........................................................27 3. Project Management........................................................... 32 4. Typical Project Approach..................................................... 33 4.1 General Approach......................................................................33 4.1.1 Revenue Sufficiency and Financial Planning Module.........33 4.1.2 Cost Allocation and Rate Design Module...........................34 4.1.3 Impact Fee and Specific Service Fee Modules...................35 4.1.4 Linkages of FAMSAL© Modules........................................36 4.1.5 Examples of the process.....................................................36 4.2 Detailed Project Work Plan.......................................................40 S. Why Burton &Associates .................................................... 44 LETTER OF TRANSMITTAL BURTON & AssociAns Utility&Governmental Economics Consultants To Interested Parties: Burton&Associates is pleased to present this Qualifications Summary to provide Water& Wastewater Financial and Rate Consulting Services. Burton & Associates specializes in utility rates and financial analysis for local government utilities. The financial, cost and fee/rate structure components of local governmental utilities is the primary focus of our practice. We have successfully provided these services to many governmental utilities for 20 years. As such, we bring extensive experience to any project in financial forecasting, financial plan development, cost allocation analyses, rate program design and development, and an understanding of the cost components of local government utility services. Industry Leader and Authority - Our extensive experience in "we have worked with Burton& Associates for years and have providing utility rate and financial planning assistance services to consistently recommended their local government utilities, as well as the stature of the Firm and its firm to government colleagues who 2 founder, Michael Burton as a recognized industry leader and are seeking professional,timely and • authority in this practice area, are all indications of our unique accurate analytical services. Their qualifications to serve you. Evidence of our national stature in this interactive work session process is w regard is the fact that Mr. Burton is in his seventh year of service the most cost effective and efficient on the AWWA National Rates & Charges Committee, where he way to conduct business and their cate coauthored AWWA Manual M54 - Developing Rates for Small their workty to productent is oommuning." their work product is outstanding." Systems, which was published in 2004. Mr. Burton is regularly invited to speak at industry forums, has written numerous papers Ron Nielsen and has given many presentations as described in Section I of this Utility Fiscal Manager proposal. Orange County,FL Our Interactive Decision Support Process and Tools-Our unique approach to providing comprehensive utility financial and rate consulting services is to use our interactive decision support process in which we use our proprietary, automated Financial Analysis and Management System (FAMS-XL©). We use this model, which is discussed herein, to explore numerous financial plan scenarios, cost allocation scenarios, rate/fee structures or other financial parameters and to develop logical short and long term financial management plans and defensible cost recovery mechanisms, in the context of predicted financial impact, market reality, public acceptability and political reality. This modeling tool is a powerful and important part of our unique interactive process; however, what makes our process so successful is the experience and ability of our staff to facilitate a "live interactive decision support process" with our clients. Using FAMS-XL© as a tool to perform incredibly complex scenario analyses, we provide instantaneous feedback and results during these work sessions. Our process provides clear vision regarding alternatives and outcomes for key decision makers, builds consensus for and confidence in the financial management and rate programs developed, and offers a superior tool for future program updates. Overall Financial Master Plan and Rates and Charges - Our unique processes provide our clients with essentially a ten year Financial Master "B&A's methodology is Plan for their utility, with appropriate rates and charges to provide the extremely effective and the necessary revenues. Our approach to the development of an integrated, graphics used during their presentation to the Council strategic financial business plan for our clients' utilities considers the were excellent;in fact, I don't I; goals and objectives of the utility, the community, other stakeholders, think it could have been and regulatory agencies. Our interactive modeling process offers a clear presented any better." vision for client staff of the short and long term financial issues and presents all feasible alternative solutions to those issues. Bruce T.Grady Councilman Public Works Committee Chair Authorized Representatives - Michael E. Burton, President and Andrew City of Fort Myers,FL Burnham, Senior Vice President are authorized to make representations for the firm. They can be reached at Burton & Associates, 200 Business Park Circle, Suite 101, St. Augustine, Florida 32095, (904) 247-0787 [phone] and (904)241-7708 [fax]. Mr. Burton can be reached via email at mburton@burtonandassociates.com, and Mr. Burnham can be reached at aburnham@burtonandassociates.com. • Summary - We believe that our utility financial planning experience, expertise and our interactive decision support process is second to none and serves our clients well. We deliver superior services for an excellent price and we look forward to having the opportunity to be of service to you in addressing your financial planning and rate design needs. If you have any questions, or need any additional information, please do not hesitate to call me at (904) 247-0787. Very truly yours, Michael E. Burton President • QUALIFICATIONS SUMMARY ' WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 1. FIRM PROFILE N 1. FIRM PROFILE This section presents background information and qualifications of Burton & Associates. This section also presents a description of our proprietary and unique FAMS-XL © model and our "Live Interactive Process. 1.1 FIRM BACKGROUND Burton & Associates, Inc. was founded by Mr. rates, impact fees, revenue projections, Michael Burton in April of 1988. Since its financial feasibility, system and property inception, the firm has specialized in the valuation, funding assistance and fully allocated provision of utility rate cost of service and charge analysis. Burton & design and financial Associates has developed proprietary software planning services to local and a "live interactive process" to accomplish governmental utilities. the integration of key financial, capital planning The firm is a corporation and rate design components. headquartered at 200 Business Park Circle,Suite Our leadership in the utility rates industry is 101, Saint Augustine, FL evidenced not only by our extensive experience, • 32095. Mr. Burton,the firm's principal officer, is but also by the national stature of our located in this office,and all work to be done on president, Michael Burton, who will serve as this project will be completed at this location. Principal-in-Charge for this study. He is a long While our client list is growing outside of term member of the Rates and Charges Florida, the majority of our clients are City and Committee of the American Water Works County governments within the state. Association (AWWA), where in 2004 he co- authored Manual M54 — Developing Rates for Burton & Associates specializes in water, Small Systems. He currently serves on a Sub- wastewater, reclaimed water, solid waste, committee evaluating affordability as it relates stormwater and recycling studies. This includes to rate making principals and practice. 1.2 AREAS OF PRACTICE As a specialty firm for over 20 years, Burton & Associates has provided governmental and utility consulting assistance to utility clients in the following areas of practice: Utility Cost of Service&Rate Studies • Development of Impact Fees/System Development Fees(capital cost recovery fees, etc.) • Long-term Financial Plan development Development of Capital Finance Plans Integrated with the utilities overall financial management program Burton&Associates/Utility and Governmental Economics Consultants 1 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 1. FIRM PROFILE • Our unique "live interactive process' allows us to quickly evaluate alternative capital plans and alternative financing scenarios in order to evaluate the implications to all aspects of the utility's financial management program Bond Feasibility Reports For inclusion in the official statements of revenue bonds System&Property valuation and analysis Operations and performance reviews, strategic planning, financial feasibility analyses and annexation analyses Privatization and managed competition analyses and reports Administrative and negotiations assistance with ordinances, inter-local agreements, regulatory mandates and fiscal impact analyses • Analysis of the acquisition&sale of utility systems Including valuation analyses, negotiation support and the development of financial management plans for integration of acquired utilities into the overall utility system we have represented both sellers and acquirers of utility systems • Expert witness testimony services 1.3 BOND ISSUES In addition to our Comprehensive Water, Wastewater& Reclaimed Water Rate Study work, impact fee studies and related financial studies, we have provided revenue forecasts to support the issuance of • utility revenue bonds. We have worked with a number of financial advisors, underwriters and engineering firms during that process. We have also utilized our FAMS-XL © model to size bond issues and provide a revenue forecast in support of debt service coverage for the following clients: City of Cape Coral—RBC Capital Markets Okaloosa County—First Southwest City of Fort Myers — RBC Capital Markets, Prudential "A.G. Edwards has served as Bache, W.R. Hough &Company investment banker/underwriter on a City of Dunedin—RBC Capital Markets number of utility acquisition bond issues supported by feasibility studies Orange County—Paine Webber, FFM prepared by Mike Burton and Burton Lee County—A.G. Edwards &Associates,and for this reason we City of Titusville — Morgan Stanley, W.R. Hough & have a great deal of confidence in Company their work products. St.Johns County—W.R.Hough &Company City of Crystal River—W.R. Hough & Company William P.Simpson Vice President City of Plant City—A.G. Edwards investment Banking City of Panama City Beach—Raymond James Bonita Springs Water System—Prudential Bache Burton&Associates/Utility and Governmental Economics Consultants 2 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 1.FIRM PROFILE 1.4 PUBLICATIONS Our consultants regularly are asked to write topical papers and to make presentations at industry forums.Such papers and presentation include: Funding Total Water Management — Co- Financial Implications of Alternative Water Authored and presented at the Florida Section Supply — Written and presented at the Florida AWWA Annual Meeting — 2007, Orlando, Water Resources Conference — 2003, Tampa, Florida Florida Integration of Financial and Capital Planning — The Effect of Inclining Block Water Rates Upon Written for and presented at the 2007 Florida Water Usage & Revenue - Presented at the Water Resources Conference Florida Water Resources Conference — 2003 Tampa, Florida Utility Rate Studies and Minimizing Rate Increases — Co-authored and presented at the Implementation of Reclaimed Water Rates & Florida Governmental Finance Officers Metering - Co-Authored With Al Castro, P.E. — Association Annual Meeting — 2007, Orlando, Orange County Utilities, written and presented Florida at the Florida Water Resources Conference and published in the FWR Journal — 2002, Orlando, Efficient Financing of Water Supplies Through Florida Regional Co-Operation — Written for and • presented at the Florida Chamber Summer Reclaimed Water Rate Making — Written and School—2006, Marco Island, Florida presented at the AWWA 1998 Water Reuse Symposium—1998,Orlando, Florida Reclaimed Water Metered Pricing & Its Effect Upon Water & Sewer Rates — Co-authored and An Automated Computer Model for the Funding presented at the WEF/TEC Annual Meeting — and Management of Reuse Systems — Written 2006, Houston,Texas and presented at the AWWA 1994 Water Reuse Symposium—1994, Dallas,Texas Integration of Capital and Financial Planning — Written and presented at the Florida Water Water Rate Making for Governmental Utilities— Resources Conference—2003,Tampa, Florida Developed for presentation to the St. Johns River Water Management District under contract with the Orange County Public Utilities 1.5 OUR"LIVE INTERACTIVE DECISION SUPPORT PROCESS" This section provides an introduction to our Live, Interactive Decision Support Process, as well as a description of the components of the process. Burton&Associates/Utility and Governmental Economics Consultants 3 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 1. FIRM PROFILE 1.5.1 INTRODUCTION TO THE PROCESS Utility Managers' Challenges - Utility managers allocation methods and rate designs in order to have been facing increasingly complex and develop rates and charges that are "best fits" difficult decision challenges over the past for our clients' system configurations with fifteen years due to increasing regulation, consideration for market pressures and political escalating costs, increasing pressures upon realities. scarce resources and resistance from the public to increases in price. Interactive Decision Support Work Shops - We accomplish his through a "live interactive Our Unique Experience and Process - During decision support process" in which we conduct that time Burton &Associates has developed an a series of interactive work sessions with our empowering decision support process that clients' staff. During these work sessions, we assists utility managers in determining their use our FAMS-XL© model to explore decision decision alternatives and the financial alternatives and the short and long term consequences of those alternatives over a five financial and customer impact consequences of and ten year planning horizon. We have each. developed a very powerful analytical tool, our Financial Analysis and Management System Comparative Alternatives Analysis - We use a (FAMS-XL©) model,that we use in that decision powerful graphical interface to compare key • support process. financial and customer impact parameters of alternatives, using a unique technique to freeze Financial Forecasting and Planning - The the results of a target scenario against which to financial forecasting module of FAMS-XL© compare the results of an alternative scenario. allows us to precisely simulate the financial In this way we can instantaneously and clearly dynamics of our utility clients over a ten year see the combined net impacts of several planning period. This provides us the ability to alternative assumptions, or "what if' scenarios, help our clients make decisions with a clear evaluated simultaneously and in the better part vision as to their short and long term of a morning or afternoon we can work with our consequences and to develop integrated clients towards solutions. financial management plans for their utilities. Consensus and Confidence - The openness and Cost Allocation and Rate Design - We also use clarity of our process builds consensus and the cost allocation and rate design modules of confidence in the results among our clients' FAMS-XL© to evaluate alternative cost staff and governing boards. The most important aspect of our approach to the integration of your staff into our"team" is the interactive work sessions we conduct at several points during the course of the project. ...ri.:x:•- vi - _ - .a }=. 3'i 33:.fN=Aeoaa ?'�3':YY$�b" - • Burton&Associates/ Utility and Governmental Economics Consultants 4 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 1. FIRM PROFILE "It was a pleasure to work with Burton &Associates on a project to develop two different User Fees. The B&A staff were always professional and very knowledgeable in their areas of competency especially in the €i development of the customized financial models. Their financial models, in particular, provided great decision-support mechanisms as the project team was able to view the ramifications for many different financial scenarios. It was extremely beneficial to the project team to be able to see the potential outcomes of numerous, variable situations before the final rate structures were completed. B&A representatives were always willing to answer questions and provide clarifications without condescension. They brought a wealth of past experience that kept the project team "on keel"and focused on the objectives throughout the project timeline." Nancy Ryan,President,N1R Consulting,Prime Consultant Virgin Islands Waste Management Authority Project The truly differentiating aspects of our live interactive decision support process are that: Using our FAMS-XL© model, we can simulate all aspects of the specific financial dynamics of a utility over a forecast period (5, 10&20 years). Using our FAMS-XL© model, we can integrate the financial and capital planning processes in a • dynamic interactive decision process which allows testing of alternative capital plans with instantaneous feedback as to their implications upon the financial plan and the rates of our utility clients' customers. Using our FAMS-XL© model, we can monitor key financial indicators graphically on a "control panel"which allows our clients to visually see the implications upon key financial indicators of alternative scenarios and rate plans instantaneously. We conduct alternative scenario analyses in "interactive sessions" with our clients, so that in one morning or afternoon we can all explore, and receive immediate feedback, regarding numerous "what if' scenarios such as alternative capital improvement programs, lower or higher levels of working capital reserves, alternative funding sources for capital projects, etc. 1.5.2 COMPONENTS OF THE PROCESS 1.5.2.1 REVENUE SUFFICIENCY ANALYSIS AND LONG TERM FINANCIAL PLAN In order to ensure that the rates and charges our typical rate study includes 1) an analysis of are developed in the context of an overall long the sufficiency of system revenues to fund the term financial management plan for the utility, projected system requirements over a ten year Burton &Associates/Utility and Governmental Economics Consultants 5 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 1. FIRM PROFILE projection period, including the CIP, and 2) the identification of required annual rate revenue development of a long term financial adjustments, if applicable. management plan for the utility for the projection period. During this process we use our FAMS-XL© model to simulate the financial dynamics of The input to the financial management plan will your utility and conduct interactive work include assumptions relative to growth in sessions with your staff. customers, changes in water usage patterns, alternative CIPs, cost escalators for operating During these work sessions, the modeling expenses and capital costs, etc. results are displayed on a control panel of the model on a large viewing screen and changes The output of the financial management plan can be made to input variables and the results will include identification and timing of can be seen instantaneously. During the better borrowing requirements, development of an part of a morning or afternoon we can work annual funding sources analysis for the CIP, with your staff towards solutions, with the by- monitoring and appropriate use of reserve product being general consensus of key staff balances, evaluation of debt service coverage, members as to the viable decision alternatives projection of revenues, operating expenses and available to you and the probable consequences renewal and replacement requirements and of those decisions in terms of the following parameters over a ten year planning period. • Outputs of this process include, but are not necessarily limited to the following: Capital Improvements Program Project listing by year Optimum funding source by project by year Flexibility regarding phasing,timing and execution of projects Borrowing Program Amount of borrowing required (by source) to fund CIP projects not funded by other sources to include but not necessarily be limited to revenue bonds and State or other programs. Timing of bond issue(s)/loan(s)to provide required borrowed funds, Interim financing options Annual debt service of bond issues)/loan(s) Revenue Sufficiency Analysis Annual revenue and expense projections Annual plan of rate adjustments to provide sufficient revenues Sources and Uses of Funds Analysis Debt Service Coverage by Year Renewal and Replacement Expenditures(reserve contributions) by Year Recommended Reserve Requirements - Spend down limits (minimum reserve requirements) by fund • Burton&Associates/Utility and Governmental Economics Consultants 6 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 1. FIRM PROFILE Our live interactive decision support process integrates the multi-year financial forecast with the capital planning process to identify not only funding sources for capital projects, but also the implication upon rates. 1.5.2.2 INTEGRATION OF CAPITAL AND FINANCIAL PLANNING One of the most important features of Burton& This allows all stakeholders in the work sessions Associates' live interactive decisions support to work towards solutions with full vision as to process and our FAMS-XL© rate model is the not only the total cost of the capital program, full integration of the capital and financial but how the identified alternative delivery planning processes. scenarios will impact the rate payer over the forecast period. We also often work directly Our financial modeling process considers all with our clients' consulting engineers during the aspects of our utility clients' capital plans, master plan development process to assist including the determination of the most them in the determination of the full efficient funding source for each project and consequences of master plan alternatives. the development of a detail funding source analysis for all projects in the CIP. This allows configuration of a recommended master plan with a full vision as to the financial • We regularly work with our clients' internal and consequences, not only in terms of total and consulting engineering resources to determine life-cycle costs, but in terms of potential plans the fiscal impact, at the rate payer level, of of financing the master plan and the ultimate alternative service delivery scenarios. This has impact to our clients' rate payers over the been particularly effective in situations where period of the master plan. facilities/master plans include significant projects that represent dramatic cost increases, This process of full integration of the capital and such as a water utility planning to convert from financial planning processes has proven to be groundwater water supply to alternative water invaluable in 1) identifying our clients' real supply, a stormwater utility addressing the need choices, 2) demonstrating the consequences of for significant capital funding to solve severe their alternative choices,and 3) properly setting drainage problems or a solid waste utility expectations as to the implications of the planning to fund closure of a landfill and capital program. funding of an alternative disposal option. Burton&Associates/Utility and Governmental Economics Consultants 7 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECTTEAM&PREVIOUS EXPERIENCE In our interactive work sessions: } We can quickly evaluate alternative CIPs, and f We can evaluate alternative timing and/or phasing of projects "on-the-fly" With real time, immediate feedback of the consequences. a 1.5.2.3 COST ALLOCATION AND RATE DESIGN Fair and equitable recovery of costs from customers is fundamental principal of rate making. Our cost allocation and rate design processes include determination of the most appropriate cost allocation method and rate design based upon system configuration, usage/other characteristics of customer classes and local goals and objectives. These functions are included in FAMS-XL© and we have built in the flexibility to evaluate alternative allocation assumptions and rate design options on-the-fly during our interactive work sessions with our clients. We also can evaluate the effects of price elasticity assumptions based upon rate design characteristics and feed this back to the long term demand projections in the financial forecasting module used to develop a long term financial plan forthe utility. 1.5.2.4 "WHAT IF"SCENARIOS We can us FAIVI to run numerous alternative scenarios during these interactive sessions and Client staff can see graphically the This instantaneous feedback to key " implications, to key financial and customer impact indicators, of decision makers,in a focused, changes to variables in the rate making process such as timing and solutions oriented environment amount of capital projects funded in the capital improvements sets us apart and provides our program (CIP), various levels of renewal and replacement clients with the best, most expenditures, adjusting spend-down limits on reserve funds, rate effective financial and rate structure changes, alternatives for levelizing rate increases over fi multiple years, growth rates, cost escalation factors and numerous other variables. 1.5.2.5 CHOICES AND CONSEQUENCES These interactive sessions provide the basis for our clients to make This type of visioning and alternative scenario analysis informed decisions relating to the financial planning and rate provides our clients with an making processes by allowing them to see and understand, first unparalleled decision support hand, the full range of realistic decision alternative alternatives and process. It identifies alternative the short and long term financial and customer impact decision choices and the consequences of each alternative. The rubber meets the road at consequences of those choices. the level of the monthly bill to the rate payer and our alternatives analysis display comparative results down to that level. • Burton&Associates/Utility and Governmental Economics Consultants 8 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECT TEAM&PREVIOUS E%PERIENCE 2. PROJECT TEAM & PREVIOUS EXPERIENCE • This section presents a typical project team, including a Sample Project Team Organization Chart and resumes for potential project team members. This section also presents descriptions and reference information for a number of similar projects that we have recently completed, as well as an extensive list of projects completed in the past five years. 2.1 PROJECT TEAM ORGANIZATION We structure our project teams in order to provide our clients with project team members with experience in: a. Development of Water, Wastewater & Reclaimed Water Multi-Year Financial Plans and Rate Programs, and the management of utility rate studies for many governmental utilities. "B&A's methodology is b. Water, Wastewater & Reclaimed Water rate structure design extremely effective and the " concepts and theory and their practical application to specific graphics used during their local circumstances. presentation to the Council ell were excellent.In fact,I i�. c. Detailed functional cost allocations and the financial and don't think it could have been presented any better." z technical expertise and experience to analyze your specific system configuration, facilities, master plans, design criteria, Bruce T.Grady • operations characteristics and funding requirements. Councilman,Pubic Works Committee Chairman d. Development of retail and commercial water and wastewater City of Fort Myers,FL rates. Imo� =..ram e. Development of Capital Finance Plans and Capital Planning to comply with the requirements of conventional capital markets (revenue bond issues)and special funding sources. Burton&Associates/Utility and Governmental Economics Consultants 9 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIALAND RATE CONSULTING SERVICES. 2.PROJECT TEAM&PREVIOUS EXPERIENCE 2.2 SAMPLE PROPOSED PROJECT TEAM Our project team organization is developed as a result of our understanding of the background, objectives, scope and key issues of particular projects and our prior experience with similar projects. Our Sample Proposed Project Team is presented in the Project Team Organization Chart below and the roles and experience of our team members are discussed on the pages following the organization chart. Resumes of our proposed project team members are presented at the end of this section. All members of our project team are located in our St.Augustine office. Client Burton&Associates Project Team Organization Chart • Ciient Pro)ed DfJ�ctor Burton&Associates Principal-in-Charge Michael Burton Burton&Associates Project Director Andrew Burnham Burton&Associates Burton&Associates Project Consultant Ordinance/Policy Consultant Eric Grau Cynthia Griffin Kevin Krueeer Burton&Associates/Utility and Governmental Economics Consultants 10 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE Burton&Associates Team Members Principal-in-Charge — Michael E. Burton, President of Burton & Associates will serves as Principal-in- Charge of all work performed for our clients. Mike has over 30 years experience in government resources economics management consulting, ten years of which have been with Arthur Young & Company (now Ernst & Young), one of the largest national accounting and management consulting firms. Mike was a principal of the firm and served as Director of the Florida Governmental Services - Finance Consulting Practice. He currently serves on the National AWWA Rates&Charges Subcommittee where he has co-authored a manual on rate making and chairs a Water Rates Affordability Subcommittee. Mike has extensive experience in the design of financial management and rate programs, infrastructure finance and cost recovery programs for local governments, the development of user charge/rate studies, impact fee studies, financial advisory services for the issuance of revenue bonds, bond issue feasibility studies/forecasts, strategic planning for the provision of services for governmental jurisdictions and private developers, rate case assistance to private utilities, rate regulation assistance to jurisdictional counties, utility acquisition analyses and consensus building. Mike's expertise covers a broad range of utility issues and he regularly provides service in the following areas: Revenue sufficiency analysis Special assessment fees Cost allocation determination Unaccounted for water audits CIP program development Utility valuations Capital funding analyses Acquisition planning and analyses Financial management programs Strategic planning and economic Regulatory assistance impact quantification Special fee programs Water resources planning including Rate structure design alternative source of supply Impact fees Rate case assistance Burton&Associates/Utility and Governmental Economics Consultants 11 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECTTEAM&PREVIOUS EXPERIENCE Project Director - Andrew Burnham, Senior Vice President of Burton & Associates serves as Project Director for all work for our clients. Andy is a leader in our industry and has provided exemplary professional consulting services to our clients for many years. He has consistently received accolades for his responsiveness to their issues, attention to detail and his extraordinary work ethic. He has extensive experience as Project Director on utility rate study projects that include cost of service analyses, revenue sufficiency analyses, rate structure design, wholesale cost of service analyses, system development charges and contract administration, and he has frequently provided expert witness testimony and affidavits in state and federal proceedings. Andy has analyzed the financial impacts upon utilities of the implementation of federal utility policy, and he has assisted with filings that comply with regulatory directives. He has diverse financial and analytical skills, including statistical modeling, revenue and demand forecasting, as well as the creation of innovative pricing structures. He has developed many water and wastewater bill frequency analyses, revenue sufficiency analyses,wholesale rate designs and system development charges. He has analyzed the financial dynamics of utility acquisition proposals and provided general rate consulting services to many of our clients, including the following to name a few: City of Clearwater Marion County City of Fort Lauderdale City of New Port Richey City of Coral Springs Orange County Virgin Islands Waste Management City of Fort Myers Authority City of St. Cloud Pinellas County City of Mount Dora City of Polk City Volusia County City of Sarasota City of Dunedin City of St. Petersburg Peace River/Manasoto Regional City of Tarpon Springs Water Supply Authority City of Palmetto Orange Water and Sewer Authority Burton&Associates/ Utility and Governmental Economics Consultants 12 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECT TEAM& PREVIOUS EXPERIENCE Project Consultants - Eric Grau and Kevin Krueger, Consultants with Burton & Associates, serve as Project Consultants for all work done for our clients. Mr. Grau has provided financial and rate consulting services to our clients for over four years with Burton & Associates. All work to be completed on this project by Mr. Grau will be done in our St. Augustine, FL office. Eric has impressive financial, business and analytical skills and has provided our team with solid financial analyses based upon applications of financial and economic concepts. He is skilled in the use of our FAMS-XL© model and his technical skills have enhanced our interactive process. He has provided our clients with superior problem solving analytics and a streamlined approach to utility financial planning and rate making. Clients for whom Eric has provided utility financial consulting services include the following to name a few: City of Clearwater City of Fort Myers Peace River/Monasota Regional City of Palmetto Water Supply Authority City of Punta Gorda City of Tarpon Springs City of Sarasota Okolooso County City of Lynn Haven Orange County Volusia County City of St. Petersburg City of St. Cloud City of Cape Coral Pinellas County Mr. Krueger is a graduate economist and has provided financial and rate consulting services to our clients . for over two years with Burton &Associates. Kevin has assisted in developing enhancements to our FAMS- XL© model and has extremely strong modeling skills. He has extensive experience working with large data sets and has significantly enhanced our models used to compile billing statistics in support of water and wastewater rate design. Clients for whom Kevin has provided utility financial consulting services include the following: City of Fort Lauderdale City of New Port Richey City of Lake Worth City of LaBelle City of Deltona Ranger Drainage District City of Opa-Locks City of Lake City City of Coral Springs City of Dunnellon City of Neptune Beach City of Crystal River Nassau County Town of Lauderdale-by-the-Sea City of Fort Myers Burton&Associates/Utility and Governmental Economics Consultants 13 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE Ordinance/Policy Consultant - Cynthia Griffin, Vice President of Burton & Associates, assists our project team with any ordinance development or modification work and policy assessments and drafting that may be , required. Cynthia has over 20 years of experience with the firm in financial and cost analysis and has provided assistance to governmental and private sector clients in evaluating funding requirements and development of policies to support their objectives. Her experience includes assisting in ordinance review and development, policy and procedure review and documentation, capital improvement plan evaluation regarding funding source availability and the development of municipal services impact fees,. She regularly provides a broad range of consulting services to government agencies and public and privately held corporations and her experience also includes research and comparative analysis and the preparation and evaluation survey results. 2.3 PROJECT TEAM RESUMES Resumes of key project personnel proposed herein are presented on the following pages. Burton&Associates/Utility and Governmental Economics Consultants 14 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE MICHAEL BURTON AREAS OF SPECIALIZATION Water Resources Finance GENERAL QUALIFICATIONS Stormwater Assessments Solid Waste Rates Mr. Burton is President of Burton & Associates. He has over 30 years Revenue Forecasts experience in government resources financial analysis and rate setting, ten Cost Allocation&Rate Design years of which were with Arthur Young & Company (now Ernst&Young), one General Government of the largest national accounting and management consulting firms. Mike was a principal of the firm and served as Director of the Florida Governmental SELECTED PUBLICATIONS Services - Finance Consulting Practice. He currently serves on the National AWWA Rates & Charges Subcommittee where he has co-authored AWWA AWWA MANUAL M54 Manual M54 — Developing Rates for Small Systems and he Chairs a Water DEVELOPING RATES FOR SMALL Rates Affordability Sub-committee. SYSTEMS-Co-Authored for AWWA,Published in 2004. Mike has extensive experience in the design of financial management and rate programs, infrastructure financing programs and cost recovery mechanisms INTEGRA TION OF CAPITAL AND for local governments, the development of user charge/rate studies, impact FINANCIAL PLANNING -Written fee studies, financial advisory services for the issuance of revenue bonds and presented at the Florida (including feasibility studies/forecasts), strategic planning for the provision of Water Resources Conference- services for governmental jurisdictions and private developers, rate case 2003-Tampa,Fl. assistance to private utilities, rate regulation assistance to jurisdictional counties, utility acquisition analyses and consensus building. Mike's expertise FINANCIAL IMPLICATIONS OF covers a broad range of water,wastewater,stormwater and solid waste utility ALTERNATIVE WATER SUPPLY - issues and he regularly provides service in the following areas: Written and presented at the Florida Water Resources • Revenue sufficiency analysis, Conference-2003Tampa, FL • Cost allocation determination, • Capital improvement program development THE EFFECT OF INCLINING BLOCK • Capital funding analyses, WATER RATES UPON WATER • Financial management programs, USAGE& REVENUE-Presented at • Regulatory assistance, the Florida Water Resources • Assessment and Fee programs, Conference-2003 Tampa, FL • Rate structure design, • Impactfees, IMPLEMENTATION OF RECLAIMED • Special assessment fee programs, WATER RATES&METERING -Co- • Unaccounted for water audits Authored With Al Castro, P.E.— • Utility valuations, Orange County Utilities, • Acquisition planning and analyses, presented at the Florida Water • Strategic planning and economic impact quantification, Resources Conference-2002 • Water resources planning Orlando, FL, • Alternative source of supply impact analyses • Rate case assistance, and WATER RATE MAKING FOR • Expert Witness Testimony GOVERNMENTAL U77LITIES-This paper was developed for EDUCATION presentation to the St.Johns River Water Management District Bachelors of Industrial Engineering, 1970, University of Florida under contract with the Orange County Public Utilities Burton &Associates/Utility and Governmental Economics Consultants 15 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2•PROJECT TEAM&PREVIDUS EXPERIENCE ANQREw BURNHAM AREAS OF SPECIALIZATION GENERAL QUALIFICATIONS ' Water Resources Finance Water,Wastewater& Electric Mr. Burnham is a Senior Vice President of Burton & Associates where he has Rates been employed for six years. Andy is a leader in the utility industry and has Stormwater Finance&Rates extensive experience as the Project Director on utility projects that include Electric Utility Rates cost of service analysis,cost allocation analysis, rate structure design,revenue Revenue Forecasts sufficiency analysis, wholesale cost of service analysis, contract Government Finance administration, and he has frequently provided regulatory assistance Expert Witness Testimony including the provision of expert witness testimony and affidavits in state and federal proceedings. Andy has also analyzed the financial impacts upon SELECTED CLIENTS utilities of the implementation of federal utility policy and has assisted with preparing filings to comply with regulatory directives. He has performed Andy's experience includes many water and wastewater cost of service, rate design and revenue performance of financial analysis sufficiency analyses and has frequently provided expert witness rate case and/or rate setting studies for the testimony. He has also analyzed multiple utility acquisition proposals and following clients to name a few: provided general rate consulting services to many of our clients. Andy's experience includes serving as Project Director for utility financial analysis and Front Royal,VA rate design projects for the following clients,to name a few: Decatur Utilities,AL City of Baytown,TX Orange.County, FL • City of Fort Lauderdale— Water and Wastewater Revenue Sufficiency Youngtown,AZ Analysis, Cost Allocation, Rate Design and Impact-Fees Development City of St. Petersburg, FL City of Lake Worth — Comprehensive Water and Wastewater Rate University of North Carolina at Study including Retail Rate Design and Wholesale Rates for Regional Chapel Hill, NC Service City of Clearwater, FL Intercoastal Utilities, FL City of Coral Springs — Water and Wastewater Revenue Sufficiency City of Fort Myers, FL Analysis, Cost Allocation, Rate Design and Impact Fees Development Marion County,FL City of Clearwater—Water, Wastewater, Stormwater and Solid Waste Orange Water and Sewer Revenue Sufficiency and Rate Design Analyses Authority, NC Orange County- Water and Wastewater Revenue Sufficiency Analysis, Rate Design, Impact Fees and Alternative Water Feasibility Analysis EXPERT WITNESS IN UTILITY RATE City of Deltona-Water and Wastewater Revenue Sufficiency Analysis, Rate Design and Impact Fees .CASES BEFORE: Peace River/Manasota Regional Water Supply Authority — Regional Federal Energy Regulatory Rate Assistance Commission EDUCATION Michigan Public Service Bachelor of Business Administration, 2000, Lake Superior State University, Commission Sault Ste.Marie Michigan,Graduated Magna Cum Laude Arizona Corporation Commission Recipient of Outstanding Business Student Award Virgin Islands Public Service Commission Burton &Associates/Utility and Governmental Economics Consultants 16 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECT TEAM&PREVIOUS EXPERIENCE ERIC GRAU AREAS OF SPECIALIZATION GENERAL QUALIFICATIONS Water Resources Finance Mr. Grau is a Consultant with Burton & Associates. He has provided financial Reclaimed Water Rates and rate consulting services to our clients for the past four years with Burton Revenue Forecasts &Associates. He has superior financial, business and analytical skills and has Rate Design provided our consulting practice with solid financial analyses based upon Solid Waste Finance applications of sound financial and economic concepts. General Government Finance Eric is skilled in the use of our proprietary interactive FAMS-XL@ model and SELECTED CLIENTS his technical skills have enhanced our interactive process. He has provided our clients with exceptional problem solving analytic and a streamlined Eric's experience includes approach to utility financial planning and rate making. performance of financial analysis and/or rate setting studies for the Eric is experienced in the development of detailed water and wastewater bill following clients to name a few: frequency analyses and has assisted in the development of water and wastewater rate structures to reflect fair and equitable distribution of costs as Okaloosa County well as to provide incentives for water conservation. He is also experienced in City of St. Petersburg 's the development, capital cost recovery fees or impact fees, reclaimed water City of Cape Coral rates,fire service fees/assessments and specific service charges. City of Fort Myers City of Ocala j Eric's experience includes serving as Project Consultant for utility financial Pinellas County analysis and rate design projects for the following clients,to name a few: Town of Beverly Beach City of Mount Dora ! City of Dunedin ! City of Clearwater— Water and Wastewater Rate Study and revenue City of Clearwater �� Sufficiency Analyses Volusia County Pinellas County — Water, Wastewater and Solid Waste Revenue City of Palmetto !, Sufficiency Analysis, Cost of Service Allocation and Wholesale Rate City of Punta Gorda Calculations City of Sarasota Peace River/Manasota Regional Water Supply Authority — Regional Glynn County,Georgia Rate Assistance City of Lynn Haven City of St. Petersburg—developed a Wholesale Water and Wastewater City of St.Cloud Cost Apportionment and Rate Design Mode City of Tarpon Springs Peace River/Manasota City of Tarpon Springs - Water and Wastewater Revenue Sufficiency Regional Water Supply and Impact Fees Authority • City of Sarasota — Comprehensive Water and Wastewater Cost of Service Study and Rate Design EDUCATION Bachelor of Science in Finance,2004, University of Florida Graduated Cum Laude rton& s 7'Bu Associates/Utility and Governmental Economics Consultants 17 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE KEVIN KRUEGER GENERAL QUALIFICATIONS AREAS OF SPECIALIZATION Mr. Krueger is an Associate Consultant with Burton & Associates. He is a graduate economist and has provided financial and rate consulting services to Water Resources Finance a number of our clients for the past two years since joining Burton & Water Rates Associates. He has assisted in developing enhancements to our FAMS-XL© Wastewater Rates Stormwater Rates model and has extremely strong analytical and modeling skills. Impact Fees Solid Waste Rates Kevin has extensive experience working with large data sets and has Revenue Forecasts significantly enhanced our models used to compile billing statistics in support Rate Design of water and wastewater rate design. He has assisted in the development of General Government Finance water and wastewater impact fees as well as impact fees for general government service such as police,fire and parks and recreation. SELECTED CLIENTS Kevin has enhanced Burton & Associates Stormwater cost apportionment Kevin's experience includes model that is used in the development of Stormwater/drainage assessments performance of financial analysis for our clients. Kevin is also experienced in the performance of detailed bill and/or rate studies for the frequency analyses in support of the development of water and wastewater following clients to name a few: rate structures to fairly recover the cost of service and to provide incentives for water conservation. City of Opa-Locka City of Coral Springs Kevin's experience includes serving as Project Consultant for utility financial City of Neptune Beach analysis and rate design projects for the following clients,to name a few: Nassau CountyCity of Fort Myers City of New Port Richey City of Fort Lauderdale— Water and Wastewater Revenue Sufficiency City of LaBelle Analysis, Cost Allocation, Rate Design and Impact Fees Development Ranger Drainage District • City of Lake Worth — Comprehensive Water and Wastewater Rate City of Lake City Study including Retail Rate Design and Wholesale Rates for Regional City ofDunnellon Service City of Crystal River City of Coral Springs — Water and Wastewater Revenue Sufficiency Town of Lauderdale-by-the-Sea Analysis, Rate Design and Impact Fees City of Deltona- Water and Wastewater Revenue Sufficiency Analysis, Rate Design and Impact Fees Nassau County-Water and Wastewater Revenue Sufficiency Analysis, Impact Fees and Specific Service Charges • City of Lake City — Stormwater Rate Study for Establishment of a Stormwater Utility EDUCATION Bachelor of Arts in Economics,2006,St.John's University,Collegeville,MN Minor in Mathematics Burton&Associates/Utility and Governmental Economics Consultants 18 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECT TEAM&PREVIOUS EXPERIENCE CYNTHIA GRIFFIN GENERAL QUALIFICATIONS Ms. Griffin is a Vice President of Burton &Associates. She has over 20 years AREAS OF SPECIALIZATION experience in government resources financial analysis and policy and ordinance development. Cynthia provides assistance to governmental and Water Resources private sector clients in evaluating funding requirements and development of Stormwater Utilities policies to support their objectives. Solid WasteFire Assessments Her experience includes assisting in the development of municipal services General Government impact fees, ordinance drafting and revision,policy and procedure review and SELECTED CLIENTS capital improvement plan funding analysis. Her experience also includes research and comparative analysis, including the preparation and evaluation Cynthia's experience includes of survey results. performance of financial analysis and/or policy and ordinance review Prior to joining Burton & Associates in 1989, Cynthia was an institutional and drafting for the following investments analyst for a small regional firm in the southeast and prior to that clients to name a few: performed a similar function with Merrill Lynch. City of Punta Gorda Cynthia's expertise covers a broad range of utility issues and has provided City of Fort Myers service in the following areas: Okaloosa County Orange County Policy evaluation and development City of Clearwater Line extension policies City of Cape Coral • Reclaimed water connection City of Lake Mary • Bockflow prevention City of Lake City !, Conservation policies and programs Utility metering policies Utility connection policies Utility ordinance development Municipal code evaluation and re-write Stormwater ordinance evaluation and drafting • Developer agreements Water loss prevention policies Other Education Attended University of Florida, 1972-197S,Curriculum-Business Administration Burton &Associates/ Utility and Governmental Economics Consultants 19 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE 2.4 PREVIOUS EXPERIENCE As mentioned in Section 1.1, Burton & Associates has been in business since 1988, and has been providing utility rate studies and financial planning for city and county governments since its inception. This section presents project references for recent clients. Most of our client relationships have evolved into continuing relationships, even though we may not be currently under contract with some at any point in time. We believe these long term relationships are a testament to the quality of service that we provide. 2.4.1 REFERENCES CITY OF FORT LAUDERDALE,FLORIDA(20081—We are Currently Conducting a Comprehensive Water and Wastewater Cost of Service and Rate Study, including development of a ten year financial -� management plan, rate design, Impact fees and specific service charges. We are developing more aggressive inclining block rates for water conservation and are developing a phased implementation strategy to achieve the revenue requirements of the utility. We are also developing water and wastewater impact fees, including assessment of the effects of adjusted impact fees upon the rate plan scenarios in the rate revenue forecast. During this work, we are using our FAMS-XLV model to replicate the financial dynamics of the City's water and wastewater enterprise fund and we are evaluating several scenarios of capital funding alternatives and annual rate adjustments with City staff for presentation to City management. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Kevin Krueger: Consultant Client Contact: Ms. Julie Leonard, Assistant Utilities Services Director, 949 NW 381h Street, Fort Lauderdale,FL 33309,(954)828-7802,JLeonard@fortlauderdale.Rov Mr.Albert Carbon,Public Works Director,949 NW 381h Street, Fort Lauderdale,Fl- 33309,(954)828-7802,acarbonc@fortlauderdale.gov CITY of LAKE WORTH. FLORIDA(20081—We are currently conducting a comprehensive Water and d Wastewater Cost of Service and Rate Study, including development of a ten year financial management plan, rate design, impact fees and specific service charges. The City has a complicated service delivery configuration in terms of wholesale service and regional partners and we are adapting our modeling to replicate the financial dynamics of that configuration. We are also evaluating the effectiveness of the current inclining block rate structure regarding water conservation and the effects of adjustments to the rate structure in terms of elasticity of demand. We are developing water and wastewater impact fees, including assessment of the effects of adjusted impact fees upon the revenue requirements from rates in the rate revenue forecast. During this work,we are using our FAMS-XLV model to replicate the financial dynamics of the City's water and wastewater enterprise fund and we are evaluating several scenarios of capital funding alternatives and annual rate adjustments with City staff for presentation to City management. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Kevin Krueger: Consultant Client Contact: Ms.Becky Mattey, Utility Director,same address,(561)586-1670, bmattey@lakeworth.org Mr. Mark Bates, Finance Director, 7 North Dixie Hwy, Lake Worth, FL 33460, (561)586- 1641, mbates@lakeworth.ore Burton &Associates/Utility and Governmental Economics Consultants 20 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE THE CRY OF ST.CLOUD.FLORDA(20081—We conducted a Comprehensive Water and Wastewater Cost of Service and Rate Study, including development of a ten year financial management plan, rate design, impact fees and specific service charges. We developed more aggressive inclining block rates for water conservation and we also developing water and wastewater impact fees, including assessment of the effects of adjusted impact fees upon the rate plan scenarios in the rate revenue forecast. During this work, we used our FAMS-XL® model to replicate the financial dynamics of the City's water and wastewater enterprise fund and we evaluated several scenarios of capital funding alternatives and annual rate adjustments with City staff for presentation to City management. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Client Contact: Mr. Todd Swingle, P.E., Director, Environmental Utilities, 1300 Ninth Street, St. Cloud FL 34769, (407)957-7344,tswingleCoDstcloud.Org CITY of CLEARWATER, FLORIDA 11995-20071—We have served as the City's water and wastewater, solid waste and stormwater rate consultants for over 12 years. We have conducted numerous water, wastewater, solid waste and stormwater rate studies. We recently conducted a rate design analysis for the water and wastewater system and regularly provide updates to the water and wastewater revenue sufficiency analysis to update the utility's long term financial plan. During this work, we used our FAMS-XL® model to replicate the financial dynamics of the City's water and sewer and stormwater enterprise funds and evaluated several scenarios of capital funding alternatives and annual rate adjustments, before City staff selected to scenario to present to the Council. We also held one-on-one meetings with each Council member with or FAMS-XL® model up and running and demonstrated the need for the proposed series of annual rate adjustments. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Eric Grau: Consultant Client Contact: Ms. Margaret Simmons, Finance Director, PO Box 4748, Clearwater, Florida 33758, (727)562-4538,margie.simmons@mvclearwater.com Ms.Tracy Mercer, Utility Director, 1650 N.Arcturas Avenue, Building C, Clearwater, FL 33765-1945,(727)562-4960 ext.7222,tracy.mercer@mvclearwater.com IZ) MARION COUNTY, FLORIDA 00071 —We conducted a comprehensive Water and Wastewater Cost of Service and Rate Study,including development of a plan to merge five rate districts to one common inclining block rate structure, increase revenues to fund a significant capital program and implement conservation rates in the form of inclining block rates. We also conducted a Water and Wastewater Impact Fee Study, including assessment of the effects of adjusted impact fees upon the rate plan scenarios in the prior rate study project. We conducted one-on-one meetings with each County Commissioner where we evaluated alternative rate plan and capital funding scenarios in a live interactive work session using our FAMS- XLV model. We were able to demonstrate the need for the significant rate increases required which provided the Commissioners with the comfort that the increases were necessary and implementation of the series of annual rate increases recommended would ensure that the utility would proceed on a sound financial basis. This process enabled the Commissioners to confidently field questions and complaints during the public workshops and hearings that were held in the rate adoption process. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Burton &Associates/ Utility and Governmental Economics Consultants 21 10 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECT TEAM&PREVIOUS EXPERIENCE AClient Contact: Mr. Andy Neff, P.E., Director of Utilities, Currently Director of Environmental Services in Seminole County, FL, 500 West Lake Mary Blvd, Sanford, FL 32773-7499, (407) 665- 2000,aneff@seminDlecountvfl.eov CITY of FORT MYERs.FLORIDA(1988-20081—We have served as the water&sewer rate consultant for the City for 20 years. Recent projects include annual updates to the water&wastewater and solid waste financial forecast,or"business plan",to ensure that the water&wastewater and solid waste rates/assessments will provide adequate revenue over a ten year forecast period. We also recently completed a comprehensive cost of service and rate study for the water and wastewater system, including a revenue forecast, cost allocation, rate design and development of impact fees. We conducted several interactive work sessions with City staff using our FAMS-XL® model and developed adjustments to the plan of annual water&wastewater rate adjustments. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Kevin Krueger: Consultant Client Contact: Ms. Donna Lovejoy, 2200 Second Street, Fort Myers, Florida 33902, (239) 461-3757, d l ove i o v CD citvftmvers.com Mayor Jim Humphrey,Same Address, (239)332-6700, mayorh u mohrev@citvftmvers.com goCITY of SARAsoTA. FLORIDA (2005 — 20071 — We have served as the City's Comprehensive Water, Wastewater & Reclaimed Water Rate Study for over 15 years. In 2006 we developed a ten year financial forecast and financial management plan for the City's water&wastewater utility. We also recently completed a cost allocation and rate design study for water and wastewater, including the evaluation of conservation rate alternatives and development of impact fees. We used our FAMS—XL® model to replicate the financial dynamics of the City's water& wastewater operations and conducted interactive work sessions with City staff to evaluate scenarios relative to inputs and assumptions. We developed a plan of water & wastewater and solid waste rate adjustments and ten year financial plan for each utility enterprise fund. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Eric Grau: Consultant Client Contact: Mr. Bill Hallisey, Public Works Director, 1761 12th Street, Sarasota, Florida 34236, (941)954-4198 WilliamHallisey@ci.sarasota.fl.us PINELLAS COUNTY. FLORIDA (2005) — We conducted a comprehensive water, sewer and solid waste rate study for the County. We used our FAMS-XLC model to develop ten year financial plans for each of the separate water, sewer and solid waste enterprise funds. We reviewed the results with County staff in several interactive work sessions and prepared a report of the results of the study. We also conducted a benchmarking analysis of selected cost categories and assisted County staff in evaluating the underlying cost of operations. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Eric Grau: Project Consultant Client Contact: Mr. Steve Carroll, Utilities Finance Director, 14 South Ford Harrison Avenue, Clearwater, Florida 33756, (727)464-4228,scarroll@co.oinellas.fl.us Burton &Associates/ Utility and Governmental Economics Consultants 22 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECT TEAM&PREVIOUS EXPERIENCE CITY OR ST. PETERSBURG, FLORIDA (2005 —2007) — We conducted a Water and Wastewater Cost of Service and Rate Study and several annual updates, including development of a long term financial plan for the utility and a detailed cost allocation for setting of wholesale rates.The cost allocations included all direct and indirect costs and allocations were made to not only water and wastewater, but also a functional allocation was made to establish costs associated with retail and wholesale service. Wholesale rates were then established for each wholesale customer based upon the wholesale cost allocations and units of demand for each customer.The studies included a true-up analysis for each wholesale customer based upon actual financial results We also evaluated the City's retail rate structure relative to fair and equitable recovery of costs and water conservation. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Eric Grau: Consultant Client Contact: Ms. Evelyn Rosetti, Manager of Special Projects, 1635 3rd Avenue North St., Petersburg, Florida 33713,(727)893-7297,earosettOstpete.org ORANGE COUNTY, FLORIDA (1992 - 20081 — We have served as the water and wastewater rate ,l _ consultant for the County for the past 15 years. We recently conducted a Water and Wastewater -Ir Cost of Service and Rate Study, including a ten year revenue forecast with the assessment of funding and rate scenarios to fund$200 million+ of alternative water supply projects in year eight of a ten year projection period. We also performed a Water and Wastewater Impact Fee Study, including review of the impact fee methodology with the Development Advisory Committee, which endorsed the methodology at the rate hearing for adoption. We are currently beginning an FY 2008 Update of the Water and Wastewater Impact Fees and evaluating re-design of commercial rates to include a fair and effective structure to provide a price incentive for water conservation. • B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Client Contact: Mr. Ron Nielsen, Manager Fiscal and Administrative Services, 9150 Curry Ford Road, Orlando,Florida 32825,(407)254-9880, Ron.Nielsen(aocfl.net _ PEACE RIVER MANAsOTA REGIONAL WATER SUPPLY AUTHORITY (AUTHORITYI - Regional Water Supply Rate ` Assistance - Burton & Associates assisted the Authority in the development of a common or unitary rate for its members to provide the basis for funding of continuing new water resources. The project focused upon a way to migrate from the historic practice of determining capital cost allocations to members/customers on a project specific basis to an approach that results in an equal, prorate cost allocation into a common or unitary rate. We are currently developing an interactive model that allows evaluation of numerous scenarios and alternatives for achieving the goals of the project, including provisions to make members whole for prior investments and/or current imbedded rate advantages as a result of the historic practice of allocation of capital costs on a project specific basis. We are beginning a facilitation process in which we will meet with a members/customers working group regularly over several months to work through the alternatives towards a consensus solution and a viable overall financial plan for the Authority. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Eric Grau: Consultant Client Contact: Mr. Pat Lehman, Executive Director, 6311 Atrium Drive, Suite 100 • Bradenton, FL 34202,(941)316-1776, Peacemana@aol.com CITY of TARPON SPRINGS. FLORIDA MOOS —20071 — We have served as the water and sewer rate consultant for the City for over 10 years. Recent projects include development and several annual Burton &Associates/Utility and Governmental Economics Consultants 23 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE updates of the long term financial plan for the utility. We also conducted a Rate Design project in which we adjusted and recalculated the water and wastewater rates to conform to generally accepted rate making practice and to provide conservation incentives in compliance with the City's Consumptive Use Permit requirements. We also conducted a financial feasibility analysis of an Alternative Water Supply Project to allow the City to become more self sufficient and reduce wholesale water purchases from Pinellas County. We also recently conducted a Water and Wastewater Impact Fee Study and evaluated the implications of adoption of full and partial cost recovery impact fees within the long term financial plan for the utility. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Eric Grau: Consultant Client Contact: Ms.Aria Walker, Finance Director, 324 East Pine Street,Tarpon Springs, Florida 34688- 5004,(727)942-5612,AWalker@ci.taroon-sprin¢s.fl.us Mr. Paul Smith, Public Services Administrator, Same Address, (727) 942-5610, PSmith@)ci.tarpon-springs.fi.us CAPE CORAL, FLORIDA (2001- 2006) — We have served as the water and wastewater rate consultant for the City for over five years. For the past three years, the City has licensed our FAMS-XL® model for use in annual updates of its water and wastewater ten year financial plan and schedule of annual rate adjustments. We conducted a comprehensive rate study, including rate design,to initialize the FAMS-XLB model for the City and we have assisted them for the past three years in accomplishing annual updates under the terms of the license and maintenance agreement for our FAMS-XL® model. We also used the FAMS-XL® model in an analysis to develop a detailed plan of finance for the funding of over$180,000 of capital improvements over three years. We worked closely with the City's financial advisor, RBC Capital Markets, in developing alternative plans of interim and permanent financing to allow two years of rate increases and growth to take effect before burdening the rates with the full annual debt service of the ultimate permanent financing. We are beginning an annual update to assess the impacts of the slow down in growth and the ability of the City,where possible,to defer capital projects being driven by growth. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Client Contact: Mr. Mark Mason, Director of Finance, 1015 Cultural Park Boulevard, Cape Coral, Florida 33915-0027,(239) 574-0401, Mmason@capecoral.net ® 4RALoosA COUNTY.FLORIDA(199S-2007)—We have served as the County's water and wastewater rate consultants for the past 12 years. We conducted a Water and Wastewater Cost of Service and Rate Study, including development of a revenue forecast in support of the issuance of approximately$60 million of revenue bonds to fund system improvements. We also conducted a Water and Wastewater Impact Fee Study, including assessment of the effects of adjusted impact fees upon the rate plan scenarios in the prior rate study project. We are currently conducting a Reclaimed Water Rate Study to develop reclaimed water rates and policies. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Eric Grau: Consultant Client Contact: Mr. Jeff Littrell, Director of Utilities, 1804 Lewis Turner Parkway, Fort Walton Beach, Florida 32547(850) 651-7173 ilittrellfmco.okaloosa.fl.us Cm of NE NE BEACH.FLoRmA(2007—20081—We conducted a Water and Wastewater Revenue Sufficiency Analysis in which we developed a ten year financial plan and identified a series of annual rate adjustments necessary to fund all of the utility's current Burton&Associates/ Utility and Governmental Economics Consultants 24 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE and projected requirements. We used our FAMS-XLO model to replicate the financial dynamics of the City's • water and sewer enterprise fund and evaluated several scenarios of capital funding alternatives and annual rate adjustments, before City staff selected to scenario to present to the Council. We also held one-on-one meetings with each Council member with or FAMS-XL©model up and running and demonstrated the need for the proposed series of annual rate adjustments. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Kevin Krueger: Consultant Client Contact: Mr. Jim Jarboe, City Manager 116 First Street, Neptune Beach, Florida 32266, (904) 270-2400,(Jarboe@neptune-beach.com Mr.Steve Ramsey, Finance Director,Same Address,(904)270-2400, SRamsev@neptune-beach.com ORANGE WATER AND SEWER AUTHORITY (OWASA) NORTH CAROLINA (20071 — We conducted a Water, owasA Wastewater and Reclaimed Water Cost of Service and Rate Study, including a ten year revenue forecast with the assessment of several funding and rate scenarios to fund alternative capital improvement programs. The scope included development of a long term financial plan,allocation of costs to support rate design, redesign of conservation rates from seasonal to inclining block rates, high strength wastewater surcharges for BOD, SS, Phosphorous and Nitrogen and service availability fees for capital cost recovery. We also evaluated the effectiveness of service availability fees in the financial plan of the utility. Previous OWASA water and sewer financial plans and rates had been set using a Black & Veatch rate and financial planning model. OWASA was interested in an integrated model to 1) re-calibrate their financial plan, rates (specifically their water conservation rates) and system development fees, and 2) to use to update the analysis on an annual basis. OWASA selected Burton &Associates over Black&Veatch, Red Oak and Raftelis Financial Consultants because of our truly live interactive modeling process and the comprehensive and flexible nature of our model, which OWASA staff had experienced in the joint reuse feasibility project which we conducted for the University of North Carolina (see below). Our contract with OWASA includes the provision for OWASA to license our FAMS-XLO model for use in annual updates. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Client Contact: Mr. Pat Davis, Utility Manager, PO Box 366 Carrboro, NC 27510, (919) 537-4210, PDavis@owasa.ore Mr. Kevin Ray, Finance Director, Same Address, (919) 537-4236, KRav@owasa.ora CITY OF LYNN HAVEN. FLORIDA (1996 — 2006I — We have served as the City's Comprehensive Water, Wastewater & Reclaimed Water Rate Study for the past 10 years. We have conducted numerous annual water&wastewater revenue sufficiency analysis updates and are currently conducting a solid waste rate study, including the development of a ten year financial plan and the evaluation of the current rate structure and recommendations for adjustments to more fairly apportion the cost of solid waste service to the various classes of service offered by the City. We are using our FAMS- XLO model to develop the long range financial plan and will evaluate alternative scenarios of service delivery and other variables in the development of the plan. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Eric Grau: Consultant Client Contact: Mr. John Lynch, City Manager, 825 Ohio Avenue, Lynn Haven, Florida 32444, (850) 265-2121,citvmanager@citvoflynnhaven.com Burton&Associates/Utility and Governmental Economics Consultants 25 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROIECTTEAM&PREVIOUS EXPERIENCE CITY OF FERNANDINA BEACH.FLORIDA(20081—We conducted a comprehensive Water and Wastewater Cost of Service and Rate Study, including development of a ten year financial management plan, rate design, impact fees and specific service charges. The City had not adjusted its rates for a number of years and we developed a plan of annual rate adjustments to ensure sufficient revenues to meet all of the utilities current and projected financial obligations. We are also proposed an inclining block rate structure to provide an incentive for water conservation and included the impact upon water usage in terms of elasticity of demand. During this work,we used our FAMS-XLm model to replicate the financial dynamics of the City's separate water and wastewater enterprise funds and we evaluated several scenarios of capital funding alternatives and annual rate adjustments with City staff for presentation to City management. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director EricGrau: Consultant Brian Fitzpatrick: Consultant Client Contact: Mr.John Mandrick, P.E.,Director of Utilities, 1180 South 5th Street, Fernandina Beach, Florida 32034,(904)277-7380, imandrickC@fbfl.ore NASSAU COUNTY, FLORIDA(2007)—We conducted a Solid Waste Assessment Study and a Water and Wastewater Cost of Service and Rate Study, including development of specific service fees. We also conducted a Water and Wastewater Impact Fee Study which included assessment of the effects of adjusted impact fees upon the rate plan scenarios in the long term financial plan. The Solid Waste Assessment Study included developing a residential assessment for collection and disposal of all solid waste generated by residents of the County. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Kevin Krueger: Consultant Client Contact: Ms.Cathy Lewis,Administrative Service Analyst,96160 Nassau Place,Yulee, Florida CITY OF CORAL SPRING$.FLORIDA(2007-20081—We conducted a Water and Wastewater Rate Study which included a Revenue Sufficiency Analysis and Rate Design. In the Revenue Sufficiency Analysis we developed a ten year financial plan and identified a series of annual rate adjustments necessary to fund all of the utility's current and projected requirements. We used our FAMS-XL® model to replicate the financial dynamics of the City's water and sewer enterprise fund and evaluated several scenarios of capital funding alternatives and annual rate adjustments, before City staff selected to scenario to present to the Council. We also developed an adjusted water and wastewater rate schedule to steepen the inclining block rates and adjust the usage block ranges. This was to provide additional price incentive for water conservation. We also held one-on-one meetings with each Council member with or FAMS-XLm model up and running and demonstrated the need for the proposed series of annual rate adjustments and rate structure adjustments. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Kevin Krueger: Consultant Client Contact: Mr. Dave Russek, Finance Director, 9551 West Sample Rd. Coral Springs, FL, 33065, (954)344-1088,drussek@coralsprinRs.org UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL (UNCI (2005 AND 20071 — We conducted a Reuse Feasibility Study for UNC. The project was a joint reuse project for HVAC chillers throughout the university with UNC and its water provider the Orange Water and Sewer Authority (OWASA). We developed a Reuse Financial Feasibility Model which included all of the financial dynamics of the joint reuse • Burton&Associates/Utility and Governmental Economics Consultants 26 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE project upon UNC such as the capital investment required, post delivery treatment costs of UNC to further treat the reuse water to specification for use in the HVAC chiller units, the reclaimed water rate from OWASA, the potential for increases in the OWASA potable water rate caused by the reduction in potable water use diverted to reuse(potable offset effect),and the effect upon OWASA's water rates of deferral of water supply capital expenditures. In addition to the reuse feasibility model we used our FAMIS41.0 model to replicate the financial dynamics of the OWASA rates in order to properly account for a number of the effects listed above. OWASA staff participated in the process and we were able to help both UNC and OWASA reach consensus on the parameters of an agreement,which was executed and the project is not under construction. B&A Staff: Michael Burton: Principal-in-Charge Andrew Burnham: Project Director Client Contact: Ms. Carolyn Elfland,Associate Vice Chancellor for Campus Services, 305 South Building Campus,Box 1000 Chapel Hill,NC 27599,(919)962-7244, carolyn elflandCnlunc.edu 2.4.2 SIMILAR PROJECT HISTORY Burton & Associates specializes in providing financial/rate consulting services to govern-mental water and wastewater utilities. We have conducted numerous water and wastewater rate studies, cost allocation analyses, rate design studies and system development fee studies for our clients over the past five years. The following pages present a summary of many of the projects that Burton &Associates.has completed over the last five years. These projects are shown to demonstrate the breadth and depth of our extensive and broad experience in utility rate,financial planning and impact fee work. It is important to note that at least one member of our proposed project team served in a Project Management or Lead Consultant capacity for each project described on the following pages. Burton&Associates/Utility and Governmental Economics Consultants 27 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2.PROJECT TEAM&PREVIOUS EXPERIENCE BURTON & AnociATESI Selected Recent Clients & Projects By Year Year olyof Cocoa Water,Wastawaler and Recaimed Water Rate Study, 20M City of Fort Lauderdale Water and Wastewater Cost A9ocalion and Bulk Rate Analysis 2009 City of Fort Myers Recycling Rate Study 2009 Town of Lake Coke fifers. Water and Waslerater%is Study 2009 Town of Orange Park Fire Additional Study 20N Office Cape Coral Whopsate Sewer Rate Analysis 20W City of Gal Fire Assessment Study 20N GitrsCovey Regulatory Ras,Assistance-Water and Wastewater Utilities 20M Ciaioosa Coolly,FL Water and Wasteveler Revenue Sulfidenst Anaysis Update 2009 Cl k,of Crystal River Water and Wastawrd,Revenue Sulfclarcy Analysis Update 2009 Accomack Couny.VA Developed tractive Utility Fiancial Forecaal Model 2009 CIyol Taryon Spdfgs Water aryl Wastewater Revenue Sufifciemy Analysis Up date 2009 Marion County FL Rriandti Forecasl Model 0l Water and Waslawaler Master Plan Sceaddos 2009 Ciyof Oren Pon Slormweler Assessment Study 2009 Says..Area Water Aulhority,TX Wholesale Water Role Study 2009 City of S.ydy..TH Water&Was!eveter Rate Study 20(19 The Village Coal Commuuy DevebpmerX District Water&Wastewter Rate Study 2009 St.Petersburg Were,&Wadeable,Rare Study 2009 Pirelli County,Florida Water&Was!kawar Rare Study 2009 Town of Lauc.,daleby-Ihe-Sea Flre Assessmenl Study 2009 city of Cape Coral Fire Assessment Study 2009 City of Fort Laudardile Public Services and Utilities FnanpalAnalysis and Rates 2009 City of Marti Seach Underground U014les Assessment Progam 2009 Dyad Fort Myers Water add Senor Revenue Sulidency Analyses Update 20M Grange Water and Sewer Aullorly FYX09 Revenue SUKciar¢y Analysis Update and Modal&.at.. 20M Carge CooAy,FL Wafer add Sewer Revenue Suticlerrcy Analysis Update 2009 Demo,Ullliees,AL Comprehensive Water add Sawa,Coal of Service and ate SOldy 2009 City of Coil FYM09 Steraveser Revenue SUMcieey Analysis Updare 2009 City of Dunedin FYM09 Water and Wasterase,Revenue Saddled,Analysis Updare 2009 City of Cape Coral FY2009 Wale,a,uf Sewer Revenue Scrficierrcy Analysis 2009 BodaWck/Gyrm Coley Joint Water 6 Sewer Com.,CAA Comprehensive Water add Sew Cos'of Service and Rate SWy, 2009 BruroufcklGym Couay Joint Water B Sewer Com.GA, Water and Wastewater Capital Tap Fare Study 2009 Town of Front Royal.VA Welerard Waslaverer,Rare Study 2009 Ciy of Sarsaos, Walerdnd'Wasleveter Revenue Sufgoenry,Analysis Update 2009 City of Saasole Walerarrd Wasaeweter Rate Design Study 20W City of Clearwater Waerdrd Wasleweser,Revenue Surfidency Analysis Update 2009 Ciy of Clearwater Sakurai Revenue SuBrher,Analyses Update 2009 Peace River Manasoa Reg.Water Supply Aullndy Update of Long Temt FiderJar Management Plan and Rates 2009 Town of fatly Lake Water,Waffievee,end Raclaimed Water lmpad Fee Slay, 2009 CIty of Polk City Wo sleareer Assessmen'SWdy Was Ciyof 0,LoOka Water amp Wasaeweter Rate Design Update 2009 Nassau Courtly,FL Warerarrd 14salo ter Rate Study, 20W Barger Draire9e District Orange Corn,FL Slormvater Mafnenarrre Cost Apportionment and Assessment Study no!) Mad Ratler Ulilifies UHIity DNestmenl Valualon Analysis 2009 Cityol Lasene Update of Water and Wastewaer LOaNGrant Support Analysis 20M St.Jotra River Water Management Dialect Presentation re Ahemafive Water Supply Impacts on Local Ublses 2009 City of Fort Myers Slaninva rAssessmena P"..Dtanypnenl 20M City of Fart LaWerdab Water and Wasteveler Rate and lmpaa Fee Study 200E City0l Fernandina Beach Ware,add Watevefe•RoleaM Impact Fee Study 2008 City of SI.Could WdlerdW Sewer Rate Design 2M Ciyof SLCbud Water anti Sewer Revenue SUKGency Analysis&impact Fee Study 2008 Ciyo(Lake Woeb Were,ant wastewater Rate and Impact Fee Study 2M City of Polk Cly Weser add Wealawar Revenue Sufdrency Analysis Update 2008 City of Colo. Wdrea Waslevele,A Rectalmed Ware,Rate Study 200E Cl by of COcow Creek Walerand Wasewerer Rate and Impact Fee Study 2WS Town of OeAd Municipal Services lmpac'Fee Study 2008 G@ta Couy Were,ant Wasreweter Rafrohnory Carepramis 2008 Peaty River Marvsoa Had.Water Supply Authony Development of Lora Tom Financial Management Plan and Pates 2008 Sim m Lake of Sebnng bnprovemerw Distrlcd Marntenance Assessmena SlWy 2008 Marion Courtly,Hands Ul0y Aspuidban Analysis 2008 Marion Couny,Fonda Wae,aW Wastewber Revenue Suffidency Arralysis Update 2008 Macon Cootty.Fbdda Alerpatuas"'aid,Supply Flnandal Feasibility Study 2008 Cityoi Cearwater Water and Wasteveler Revenue Suradbncy Analysis U{date 20M Ceyof Cearwater Slormaeter Revenue Sufficiency Analysis Update 20M City of Fort Myers Water and Wisleveler Revenue Suildency Analysis Update 200E City of Fort Myers Sonrradon Revenue SuMciendy Analysis Update 20% Townofldien ROcksbeaoh Wasewter and Sold Waste Rate Study 200B Tom of Indian Rocks beach Wated er System DevestmerdValusban Analysis 2D) Claimed County Fonda Water add Wasessafer Revenue Sufldeney Analysts Update 2008 SOvard County Fire Assessment Study 2DM Town of Lady Lake Panes&Recresb.,end Ubrary lmpacl Fare Study 2WB City of St,Petersbuug Water and Wersaider Cost of Service and Rate Sally Update 200B CIryol Saasoa Waterow WaseeeM Revenue Suffrdenry Analysts Update 2008 Ci N of Sarasota Wdtefand Wzslewelet Revenue Bann Pony Cedilrale 2038 Diy of Punta Gorda Waserand Wasleweten Rare Study Update 2008 Burton&Associates/ Utility and Governmental Economics Consultants 2B QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIALANa RATE CONSULTING SERVICES 2. PROJECT TEAM&PREv1OUs EXPERIENCE BURTON & ASSOCIATES Selected Recent Clients &Projects By Year Client, Project Description Begt+- city al Lynn Haven Sant an Rafe Silly 20m Clyel Cepa Coral Wither and Wattmeter Rommis Sulfclency Analysis Update no voisla Canny Warer and Wattewaler Rat Cremating Semoes 200E Ontario Water B Sewer AWpny IOWAS0k7,NC Watr and Wasmwakr Revenw SlrZdency Analma Uproar, no City of Tarpon$PONS Muniapal SenwSe lmmdf Fee Study am Cityol Taryan Springs Fiacallmpacl Model Develaomem am Marlon County,Ponds Ambulance Samce CostArmashon Study woo city al St.Cbud WSW and Wastater Revenue SaftfamfryMalyms and Impactive Upda 20m Regarcy U961m, flegumrory Consulpng Asskmxe no City of Crystal Wrar Swmaaler Lady Finarrval Feasibility and Ram Seely no Orange Couny,FL Non ReeMenoW Wafer Conaervamn Flatcar Study 20M Orange Coanty.FL Watrrand Wastvetrrlmpaaf Fee Study 20M Cltyal Pala City Watrand Waskaaler Revenue SuMciancy Analyses Update no City of Flephne Baeem Wakr and WasrevelerRat Dealgn Study 20M City of Nepfure Beath Wow and Wastamer Rerenue Suiedency Analysis 2007 Mellon Couray,Floods Watrand Wastvalar Cost ofsorvice and Ram Start n07 Madan Couriy,Flodtla Wervand Waseemsrimpaet Fee Snedy 2007 Martin Cou",,Fmnda NoMeeS Service Area Utility DivesemenrArrar as M7 Toemol Bever,Beach Wow and Waskvakrflav,rum SulAuency Analysis M7 Oarge Couny.FbrSde WSW and Waskaeiar Rah Design Srody 407 Cltyal Tarpon Spdrgs WSW and Wastrverer Revenue Suftawlcy,Analysis Update 2007 Orange Water&Seam,AMenly(aNASA),NC Conservation Rare-Revenue Recovery Sirofteye Analyses 2007 Ciy of Gpaidsaa Watr and Wastewater Coal olSorvicaaM Rem Sally 2007 Memoasal WRd",ye. D,.firenfAnalysis 2007 Cltyal St.PemrsOtug Warerand Wasename Rat Sa.tly M07 Glym Cowry.GA Cerise Tap Fee Soldy 20M uninesitydNoMCarpAre CteptIN11 Reuse Feaskiliy Study Upoetr 2007 Vigln kleNs Waste Wmagemen AUMny PSC Rare Apascaeon Assistance 2007 Cltyal Lallele Wow and Waslevver Rerenue Selections,Analysis ad UamSupport 2007 Ciyyd Dunedin Smnwiter Revenue SuMiraoxy Analysis and Financial Reconciliation M07 Cltyal Dtnedin Wakrand Waskwefer Rerenue Suiectrrcy,Analyst's and Bain Relater n(n Sln'N Lake of Storm Melmerknce Assessment Aak SNoy M07 City of Moud Dora Water nM Wastvekr Ram if Impact Fee Safdy N07 Cityai New Pori Money Wetland V✓eminamr Impact Fee SlWy W07 City at New Port Rotary Tremed Warer ReleAmlysis M07 Demises Couray,Fbrira Reclaimed WSW Rem SNdy 2007 Clyal Sarasom Bak Reclaimed Visit,Ram Analysis 2007 CIy at Sarasos Watrand Wastaew Ram Design Study 200T City at Sarasota Fmnandal Forestal In Suaaertol Wmarard Serer Revenue Bonds 2007 City of Lyrn Harm Fire S...AssimsommaTr s Shdy 2007 City at Fon Myers Comprehenaere WSW and Waatraew Coal otS ryoe and Rare Study 2007 Gillet Fair Myers SWIMS.Revenue Suledancy Analysis U"m 2007 cnyd cleerwamr Solid West Ram Sally M07 ClyatCtarwaler WSWand Waskeakr Rerenue Suatierm,Uptlate M07 Cltyal Clarwatr Sroemaaner Rerenue&h1ciercy Lochs 2007 Vokum County,Imada Sold Washe Rerenue Sul.iSray Art aria Updale M07 Values Gunnar,Fmrlda Tmnspooelon Trost Fumy Finander Plan Davelopromm 2007 Nassau Cowry,Fannie Wait and WaSeaew Rae Study Upoak M07 Nassau Couray,Fiorida Solid Wasm Disposal Funding Program Developmenl(ASWermema) 2007 City of Lake City SlOmlaer Rate Study m ESmbllalm a Slaamoor Utility M07 Ciyol Lake Ciy OMlnance t Establish Swmvetr Utility and Rat Strait, 2007 Toes of 1.mdW le-by-OeSea Fire Assessment Program 2007 RelgSr Dsirege Dlstrid Stammerer Capial CostAppntrommenl anoAssessmenl Study 2007 Regdcy Utilties PSG Contractor Applicaeon Assertions 2007 Ragancy Utiies Fire Pmmaropm Ram malyss M07 CityWComispmga Watrannd Waskaatrend General Government Impact Fee Saloy 2007 City of Coral Spnrgs Watrrad WaSevakr Rak Srvdy 2007 City of Crystal Rier Wewad Waskxpea Rak Sally W07 City of Dunnelon Warerand Wasknerer Rak Seedy 2007 Ciyol Cage Coral ehgabon Ram Study 2007 Peeve Riwar Marmaom Reg.Water Supply AWcriy WSW Ram SNdy 2007 C1tyol Tarpon Springs, Waw and Wastairs,Impact Fee Study no CIy et Bamsom Utility Ram Study 2006 Ciy of Poik Ciy WSW and S.,Rak and Impact Fee Slily 2006 deLapade Law FimtlCledode Cod,Florida Economic Impact AsessmenlolPirdephats Mining Cperaeon 2006 ❑Moak SeMae Corporation Uriliry DireshnenW&uelion Analysis 2006 Pappas Water Sysem Uril%DivesanenWalwOon Analysis no Madams County,Florida RedmmM Warer Rafe Study 2006 Status Energy Chgeing Foonormcald FlnaadalAnalyes Support 2006 Arbon Water System Waw Rak Stilly 20M Ciyd PalrMtlo Smrmverer Rare Sad, nm Vdusla Gately Solid West Diversion end Revenue Sufidenq Analyda 2006 CIyWSt.Court Perk&Repmaticnano Public Sattylmpad Foe SlWy 20M Ciyd S.PemsbWg Watrannd Seem-Raw Study and Wholesale Rate Updem 2006 Ciyd Palrm are TIFReaknue PrOisciions 20M Burton&Associates/Utility and Governmental Economics Consultants 29 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECT TEAM&PREVIOUS EXPERIENCE BURTON & ASSOCIATES Selected Recent (Iients & 1'rojects By Year City of Fort Myers Reclaimed Water Rate Study Update 20M St.bhs!live Wafer Maegemem District Inlnjudst6ctronal Rate Plan crow Was,AWrodty of Volusla 20M St.Johns Rim Was,,Managemam Damcl Demonstration and Definition of Water Consemng Rafe SlmGure 2006 Ciyof Cfa mazer Sanitation Rate Sandy 20M Clyct Fod Myers Wamrand Wassumter Rate study Update 2006 Ciyof Fart Myers Seamier,Rafe Sandy Update 2006 City of For[Myers Parks&Recreation Impact Fee Sandy 2006 Nassau County.Florida SanRafion Services Funding Program 20M Covot Dkaraster Utility Re.Suficiency Update 2006 City of Duredin Water and Wastewater Rate&Impact Fee Study 2006 City of Pvtla Ocam Mitema6ve Water Supply Finmoial Feasibility Study 2006 City of Fort Myers Prepartda Bond Feasibiliy Repent in Support of Rev.Bond Finning 2006 Ciyof 6aasew Solid Waste Ram Study 20M City of Cape Coral Pmpereda Bond Feasibility Report in Support of Rae Bond Financing M06 Pinatas County,Florida Water,Wasmweraand Solid Wass,Ram Study 2006 Cltyof Ocala Fire Avadaviiy Fee Study 2006 CRY of Sir,Cbuf Water&Sevar Ram&Impact Fee Study 20W Okaboas County,Fonda Prepampia Bond Feasitakl Report in Supped of Rev.Bond Financing 2006 Ciyof Fort"m Rewite of Utility Cade 2006 Ciyof Ctearxafer Sfanmwater Revenue SuMdemy Update 2006 Orange Wamr&Sower AWlpoly fOWASAI,NC Compreheslw Wamr,Wastewater&Redaimed Water Rate Study 20M Coyol Minreda Study of Wand and Wasevaer Capacity Reservation Policies 20M Nassau County,Florida Walat and Wasfewerer Ram Study 2005 Fb6de Departrrem of ENronmemal Protector Assisted the Secretary,in Assessing Wfiity Rights-issues Reatiw to the Baboack Ranch Purchase Agreement 2005 Clyol Clearwater Ram Design Program 20M St,JoNU River Water Management District Update W9Nmpaper re Publio'Pdvate Pamersips forReponal Wafer Supply Facilities 20M City of Fort Mms Water and Wastewaer Revenue Sidi Analysis Update 2005 City of Tarpon Springs Utillry Rate Study Update City of Tarpon Springs Alarmism Wamr Supsoy Finaretal Feasibility Analysis 2005 Cilylif Fort Myers Sanitation Revenue Sullciency Analysis Update 2005 Citypf St Pemrsburg Uthy Ram Sa*it Maiming,Coine Service Study 2005 Vobsla County.Florida Various Utiiy Economics Projects 2005 Peace Riwr/Marasom Regional Wamr Suppy Authority -Common Ram'Program Design a Implementation 2005 St.Johns River Water Maragemem District Regional Water Supply Ram Analysis 2005 Consumers Energy Company Coat Analysis and Testimony Posporalion in Support ofPover Supply cow Recovery Regulatery Procaedings 2005 CM of Fort Myers Udhty Ram Study it OminarKe Developmenf 2005 Strategic Energy Wholesale Tmrsmascon Pricing EcmromtcAnalysis 2005 GWCaumy,GA Utility Revenue SuMciencxy 6 Rate Design Study 2005 Ciyyof Duedin Water Sewer Pevenue Reconciliation&Rate Study M05 Cnyol Fort Myers Gas Tar Revenue Sufficency,Analysis Update City of Dallore Beach Utility Ram Design Program 2005 City of Lynn Hewn Impact Fee Sandy-Wamr,Wasmwemr,Public Safety Parks&Roads 20M City of Lynn Hawn Slommasa User Feeand impact Fee Sandy 2005 City of Cape Coal Parts impact Fee study 2005 Gods&County,Fbdda Fire Assessment Program 2005 Ciyofcapecoal UMIIty AcpuaMon Analysts 20M City of Pabeic hnpact Fee Study-Wamr Wasmieter,Public Safety.Parke&Roads 2005 Virgin 61ards Wass,Management Authority EnwmnmenOl User Fee Pmgmm Design&Ram Sandymr Solid Wass, and Waut"fer 2005 Gisdee County,Florida ,b'endficstion ofAltemaave Revenue Sources for EMS 2005 Clusensa Cowry.Florida Utility Ram Study nos eamn&Colter Wholesale RawWata Ram Dewlopmem P005 City of Caps Coral Revenue Sufficiency Analysis Update 2005 City of Dawnport Study m Establish WmAinater Rants snd Impact Fees for NewUNify 2005 Ciycf Minneola Study m Estabish Ugly Rams AND tmpan Fees for a NewWity 2005 City of C000nu Creak Fire Assessment Update 2005 Cape Coral Wamnand W ism.lar Ram Design 2005 Orange County,Florida Uglify Ram Sandy-Commercial Customer Class 2005 City 0f Saresom Financial Analysis 8 Modeling 2006 City of Fort Myers Class Connection Consist 6dlnenee&Policies 2005 Ciycf Palolks Fire Assessmenl Fee Program Development 2004 Putnam Cowry,Fonda Fire Assessment Fee emgmm Development 2004 Ciyof Palmetto General Gowmment lmpa cPse Study ON Ciyof Fort Myers General Fund Moral-Tell&fed Year Mairrtenance 2004 Corsurem Energy Company Rate Case Assisterae 26D4 SL Johns River Water Management Distinct Economic Assessment Assistance 2004 Ciyatv.n. Rate Study-2004 2004 St.Johns Rim Water Management Distract Demand Reduction Study 2004 Ciyof Fort Mors General Fund Model Development 20M Burton&Associates/Utility and Governmental Economics Consultants 30 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 2. PROJECT TEAM&PREVIOUS EXPERIENCE BURTON & ASSOCIATES Year _. Project,Pription Consumers Erelgy CompaM �!,,s and Teti... . . Cos!Recovery Regulatory P,,,ir�s City of Wendell,NC Meter Billing Analysis 2W4 University of North Carolina-Chapel Hill Reclaimed Water Rale Pmgmm Design 2W4 htercoastal Utilllies,ft. Rate Case Preparation 2 W4 Cityol Mlrmeola lmpact Fee Policy 2W4 City of Cape Coral Rate Model Update 2W4 City of Phowir Economics Projects 2 W4 City of Tarpon springs Revenue Sueir7ency Update 2004 City of Clearwater User Fee Structure Revawend Design 2004 St.Jews,River Water Management Dist Effectiveness of Conservation incentives 2W4 City of Palmetto Cos(of Service a User fee Study 2004 City of Daylong Beach Cost of Service,&User Fee Study impact Fee Study 2004 Consumers Energy Economics Consrting Assistance 2W4 Clyoi Tarpon Springs Sell Sufficient Water Analysis 2W4 Ciy of Punta Gorda Capacity Fee Ordinance Development 2W4 Orange County Ulllilies Cost ofService&User Fee Study&Impact Fee Study 2004 Intercoasal Utilities.Inc. Inclining Block Rate Analysis 2004 St.Johrt River Water Management Dist Fnalination ofAllemative Source ofSuppy AHordaboiy Study 2004 City of Fort Myer Cost of Service&User Fee Study&Impact Fee Study 2004 St.Johns Service Company Valuation Study 2004 Intefcoasial Utilkes Inc. IN'liy Valuation Study 2004 Cityol Cape Coal Cost of Service&User Fee Study Update 2 W3 Town of Yourglown Rafe Case Assistance 2003 frtercoastat Ubleies Valuation AnalyinVAssislanoe 2003 Nassau Cowry.Police Cost of Service&User Fee Study 2W 3 City of Fort Myers Impact Fee Waiver Analysis,Wafer&Sew Revenue SUfficiewy Analysis 2003 Citym Fort Myers Water&Sever Revenue Sufficiency Analysis Update Clay County Authority FWSSysfem User Fee Study 2W3 • Cityol Lynn Haven Cost of Service&User Fee Study 2003 Cityol VeMce Cost of Semce&User Fee Study 2003 Orange Court,Florida Cost of Service&User Fee Study 2003 Ciy of Cape Coml Cost of Service&User Fee Study 2003 Pirelae Camay,Florida Fee Structure Evaluation 2W 3 City of Occee Cost of Service&User Fee Study Update 2003 City of Atlantic Beach Cost of Service&User Fee Study 2003 City of Mineola Capital Finance PIarvCMOM 2W 3 Cityof Neptune Beach Cost of Semce&User Fee Study 2003 GUM E mironmenal Services,W Valuation Analysis 2W3 City of Sarasota Capital Finance Plan Evalua&on 2003 Clty of Cooper City Cost ofServics&User Fee Study 2W 3 Glynn Court,Florida Financial Analyses In Suppod Of Waar 4 Saver Bond Issue 2003 Harmony,Community Development District Acquisition Analysis 21)(13 Fbada Waar Services Valuation Aralysis 20(1 3 City of New Pon Rlchey Fire&Street Lighfing Assessment-Phase 1 2003 Sun'N Lake of Sebring General Consulting Assisarps,-Assessments 2003 Polk County,Florida Rate Consultants Report for Bores'Issue 20(1 3 EMA SeNess,Iric,Cfarrge County,Ronda CMOM Pmfect Y2-810 2003 Carey,O'Malley,What&Manson.PA. Peace Rlve4Manasols Regional Wafer Supply Audi Rate Analysis 2003 ST Johns River Water Maragemem Dlsvict Analysis of Cusfomer lmpacr of Water 2020 Plan 2000 City of Pon Myers Revenue Sufficency Analysis 2W 0 Ciy of Samson Wholesale Waskniefer Rate Analysis 2000 Ciy of Melocurne Wafer&Saw Improvement Revenue Bonds 2000 City of Meborre Financial Analysis&Bond Report 2W 0 City of Clearwater Stormvefer Revenue Sufficiency Analysis 2000 Orange County,Florida Connection Fee&Revenue Su/lirremy,Analysis 2000 Sebring Airport Authority Revenue Sufficiency All 2000 Pinellas County,Florida Billing Charge Determination 2000 City of Coconut Creek Development wEMS Non Ad Valorem Assessment Study 2W0 City of Neplune Beach Update of Wow&Wasevefer Revenue Sufficiency 2W0 Burton&Associates/Utility and Governmental Economics Consultants 31 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 3. PROJECT MANAGEMENT 3. PROJECT MANAGEMENT We have developed a proven project management approach to ensure on time and on budget completion of our projects. A number of in-person meetings will be schedules during the project and key staff will be available at all times during the study, whether in person or via phone or internet. In addition to the in-person meetings, we often use the Go-To-Meeting internet forum to essentially conduct a remote interactive work session where our clients can see our computer screen through the Go-To-Meeting connection. Simultaneously,we can have a conference discussion via telephone while all parties are viewing the alternative scenario analyses on the control panel of the FAMS-XL© model. Another unique project management tool that we often use is a [Ball-in-Court" schedule, which tracks the continuous back-and-forth flow of information and data between City staff and our project team. An example of this schedule is presented below. Orange Brener and Serer Authority :%imf'DCIIF.NEIV6wgTEA NLNEEaND PCCLNMEDCI.IRP WETDIrHEEVI.]C ANGMTC DSLi'-'H edtrt.' I�1 INCOO$ R� t NNMrn 4v.gbdwbrrp rlgd C[nlvn enm.M4a[.W mre mun 1nMW1 •II.s.Wn N.M.xM __ ____ FIiN • . [ P.rrME Tp.W[S.rvMi.. _ Compl.n FM..'.A.W[.Ib mar.tlm W.M.6..M1. t `� Ir NI 1nfnWl a P.MnF a caWyawurw#gbridro. ...._... w.wwaen#rm.a nod aPr4.6apM.uleaxeu..WW�PM inzr�i [ In. eu me oxuem aaa.ox ruaalm G.A�.vm elo un.Y EV\ [[p[n xea.a 6 .N.w••W. 'to' a..lm. °lm nau nan n.nw.awer uN...... aaa a['^"'"•sw.Nn..nn,\n.e.[o, i,roo, annuar m[Vr.n Nxtom+nntlmnr.a.mY 4'P. it D.u.lep nrn•emi I... my�an�l N.[ILm.0 Waur Pn.s. In%WI na VNG[.nv.2 1nIM9] Pmtllnp D.mma M. nr4.tl.m.ne nd M#11 Mn.. 11E¢ m+Mlu 1aWE0] _... P.MxrP SM BIYNE DnYD.#.M In. 6rxytl an PNNIWn..w br E..[be 1nIDWl YrMbW an,0......InM#[Ic nam,nu IFAMN roan%, P.Mrq .. MN___ Rw.D.[W .tlautr BFAn eanplr. u.p.rragM W 6W\Ist.ub BFA 1. [u nm.r.illxdm W[P.MMn .ndnWi r.Mmm.n Aan P#M#w.will MM W#.D.[Im .ip 84#rIOPM9aNtMua.aW Mtla. 1nPIfM 1XNNi .nNrefw a.# • [ • • .. Burton &Associates/Utility and Governmental Economics Consultants 32 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH 4. TYPICAL PROJECT APPROACH This section presents our typical approach to the provision of a utility financial and rate consulting project. 4.2 GENERALAPPROACH As discussed in the general description of Burton & Associates qualifications, we have developed an empowering decision support process in which we use our proprietary interactive Financial Analysis and Management System (FAMS-XL©) model. To properly calibrate FAMS-XL© to precisely simulate the financial dynamics of your utility systems, we will review your CAFR, budget documents, financial policies, outstanding debt, capital improvement program and system configuration and make adjustments to the FAMS-XL© functionality as required to replicate your utility system. We then conduct a number of interactive decision support work sessions with City staff with the FAMS-XL© model up and running with the "control panel" projected on a large viewing screen. In this way we can evaluate alternative financial plan and rate scenarios with instantaneous feedback. This allows us to work with City staff towards solutions while building consensus and confidence in the decision alternatives and the short and long term consequences of each. 0 FAMS-XL© has several modules, all of which are, or can be, linked depending upon your specific requirements. This section describes the modules of FAMS-XL©, how they are used, their relationship to each other and the linkages that provide a complete and comprehensive evaluation of all aspects of the financial management, rates and charges of your Water & Sewer, Stormwater, Solid Waste and Recycling Utilities. 4.1.1 REVENUE SUFFICIENCY AND FINANCIAL PLANNING MODULE The modules of FAMS-XL© include a five and Scenarios can also be evaluated regarding alter- ten year revenue sufficiency and financial native growth rates, cost escalation factors for planning module which is used to develop a both operations and maintenance costs and long term financial business plan for your utility. capital costs, changes in usage patterns, This module allows examination of alternative elasticity of demand in response to increases in policies regarding capital funding rules such as the cost of water and wastewater throughout use of interim financing, state loan programs, the long term planning period and other target debt service coverage levels, levels of variables that affect the financial performance working capital reserves, and other financial of the utility, policies that affect the financial performance of the utility. Results are displayed during "live interactive decision support work sessions" on the "control Burton &Associates/Utility and Governmental Economics Consultants 33 • QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL ANO RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH panel" of FAMS-XL© which displays results of the underlying assumptions. And the ability in not only the current scenario being evaluated, FAlVl to quickly examine alternative but also the last scenario against which the assumptions during our interactive work current scenario is being compared. sessions allows us to "frame" the analysis of scenarios as to likely ranges of expected This allows key participants in the interactive outcome based upon ranges of assumptions, work sessions to clearly see the impacts of their such as low and high growth assumptions. The alternative decision choices in terms of the revenue sufficiency and financial planning financial consequences to the various financial module of FAMS-XL© is the tool that we will parameters being tracked. use to assist you in the development of short and long term "financial business plans". As with all modules of FAMS-XL©, the revenue sufficiency and financial planning module will Our FAMS-XL© model is an important tool that be adjusted during the study to precisely we use in that process, but equally important is simulate the financial dynamics of your utility. our facilitation of the interactive decision We purposely have continued to expand the support process using our FAMS-XL© model. capabilities of FAMS-XL© on the Microsoft Our experience is that the process helps key Excel© platform to allow us the flexibility to participants from our clients' staff, such as adjust our model to replicate the way our personnel from finance, budgeting, engineering, clients'do business rather than the reverse. operations, management and even elected officials, work towards solutions in an open This gives us the ability to forecast alternative environment. The result is consensus as to the decision choices and for you to have confidence solutions identified and confidence that all that the reported financial consequences reflect alternative solutions have been thoroughly the probable outcome, given the accuracy of evaluated. 4.1.2 COST ALLOCATION AND RATE DESIGN MODULE FAMS-XL© also includes a cost allocation and For instance, usage block ranges for inclining rate design module in which total revenue block rates can be quickly adjusted, as can the requirements will be allocated based upon relationship of the rates in each usage block and appropriate allocation methods and factors for the results can be seen instantaneously on the your system and rates can be developed based "control panel" of FAMS-XL@. upon specific rate design criteria. This cost allocation and rate design module is extremely As described above, the control panel is a flexible in terms of our ability to evaluate screen that displays results in terms of key alternative allocations and rate design criteria financial parameters and also contains some fl " during the interactive work input variables and toggles that allow quick "on-the y g p gg sessions described herein. examination of"what if'scenarios. Burton&Associates/Utility and Governmental Economics Consultants 34 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROTECT APPROACH As with the revenue sufficiency and financial As with the revenue sufficiency and financial planning module, the cost allocation and rate planning module, these customer impact design module of FAMS-XL(D is programmed in screens show the results of the current scenario Microsoft Excel© and will be adjusted for you contrasted with the last scenario against which to precisely replicate the appropriate cost the current scenario is to be compared. This allocation methods and rate design features for allows clear vision as to the impact of you based upon our evaluation of your system alternative decisions at the point where the configuration, usage patterns and your rubber meets the road, which is in the objectives. Alternative cost allocation and rate customers' monthly water, wastewater and design scenarios are evaluated and the results reclaimed water bill. displayed not only in terms on final rate schedules, but also in terms of the impact to the The cost allocation and rate design module also customers of the system. includes 1) a component to properly allocate wastewater treatment cost to calculate During the interactive work sessions, FAMS-XL© wastewater high strength surcharges and displays a series of "customer impact" screens septage fees, and 2) a component to allocate which show the implication of alternative cost costs to support wholesale rates, either tariffed allocation and/or rate design scenarios upon wholesale rates or wholesale rates in customer classes of varying meter sizes compliance with inter-local water or throughout the continuum of usage. wastewater service agreements. • 4.1.3 IMPACT FEE AND SPECIFIC SERVICE FEE MODULES FAMS-XLIJ also includes an impact fee module expenditures for alternative water supply to calculate capital cost recovery fees and a facilities in their ten year capital improvement specific services fee module to calculate plan. The impact fees went through a formal miscellaneous charges and fees such as turn review process with the Development Advisory on/turn off fees, meter set fees, late fees, etc. Board (DAB), a board made up of members of the development and building community. The impact fee module is adjusted for each client to reflect the specific system In the recent impact fee calculation, as in the configuration and available data. We have used prior impact fee calculation, the DAB endorsed the impact fee module in the calculation of our methodology and supported numerous impact fees and recently used it to implementation of the recommended impact calculate impact fees for Orange County Florida, fees, with suggestions for a phase in program, our client that is facing very large capital which the County adopted. Burton &Associates/Utility and Governmental Economics Consultants 35 • QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH 4.1.4 LINKAGES OF FAMS-XL© MODULES The above described modules of FAMS-XL© are proper allocation of costs and the specified rate linked to the first module described, the structure, or rate structure alternatives. In revenue sufficiency and financial planning instances where our clients desire a completely module, in terms of offsetting revenues to the integrated analysis of all of the "moving parts" rate revenue requirements determined of the financial planning and rate making annually in the FAMS-XL© revenue sufficiency process, FAMS-XL© provides all of the required and financial planning module. functionality and linkages within an extremely flexible and robust model that, combined with The revenue requirements determined in the the empowering interactive decision support revenue sufficiency and financial planning work sessions that we facilitate with you, module for the first projected fiscal year are provides unparalleled vision, clarity and linked to the cost allocation and rate design confidence in the short and long term financial module, which calculates specific rates to management of your utility. return the required revenues based upon 4.1.5 EXAMPLES OF THE PROCESS Multi-year Revenue Sufficiency Analysis and Financial Plan Develooment - The following panels are examples of screen captures from the Control Panel of our FAMS-XL© model. We have simulated a fictitious client's decision process with regard to establishing a new rate program in order to demonstrate the power of our FAMS-XL© Model and the live(interactive decision support process. CITY OP"TENT,FLORIOA A ___ FY ZWL FY 2g18 FY AB] ACB FY 3Wp FY}Ot0 FY'.<JIt FY NiT FY2111 aPY10V I \N a:u Rue lnc,.a[.a BW'L ]M1 p.14A _[en 101BM _O B?% SAB_% IJBX _6EBY 63F4 _65 <_l i9Y IM%eii O.NY Y O.OJY T63Y tO,tBY BAPA BAB% ti615 BdBY 8.30Y 10.53Y <JAB% Mee d[niG. p S+v R er.a[aa OW'L 2]I% OW% JB'-^A 10.10% t30Y. 5561 Bl0% _ 1t LUP4n OOIY 2TlY BA'K R83Y 1019% O6TA 369% I.TS 660X 6]BY 1— R P n 0 TIIY. OPJ% 1STY tB% J61% 38% 1JBX_ ]b5Y BbY 1.EbR.T LJAOY 1 .oudrvx �p. TOW Tll% OWX T9TL 10 9% J6/•A__ ]<S' f6Y ]6B% BNY�i I600% LJ<YL 11 Re Cme ul 110 B� 1 Ilw SRF 1.15 1U 11T Tt4 t16- 155 115 113 1t]_ t16 t10 9rh I�u Plm� 1T6 5 191 19 1t1 t2 1 1tt tlR lit OJH �I InoY ,I wazr9R $21001$ _s,— $2 _3J.'<- F a R N $ _1 SEwe: . 52300 82iL 8[]fJ 4235C ;6a i.581. 62 5984) 1Y 1 "Teal Mon.61611 Sd1.WyC160_ 1L621 bS4 $61 i5 f6i 6T S6<A6 ff6.A SfY3] 56:111 I iy' I?% }� f Ip 4516] %SJ BE 55 N SSFI.I: $6314 I _ 1?4 n lnRel9ua IW n �.. • m o ._a . '.d paca� a ca g IImNMMIMNIVM �� MMMIIO R1NIry! I Pe Meunl SmFlmPatt FL.Buane.[ �5 gINpM FwI i-u Sl}[AAL -- of dIOJAA , m S 0 0 Burton&Associates-All Rights Reserved Burton&Associates/Utility and Governmental Economics Consultants 36 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH In the example shown above, it is assumed that "just-in-time" rate plan option and the resultant the client is considering "just-in-time" rate rate impacts, assuming no change in rate adjustment calculations, and it can be clearly structure at this time. seen in this scenario in the left corner graph, that a rate spike of 10.19%will be required in FY However, if this client wishes to solve this rate 2008 under this scenario. spike issue,we would need to understand other rate plan options and their resultant customer This rate spike is being driven by the large impacts. The second screen, on the following capital projects that would be required in that page, demonstrates how the FAMS-XL© model year (top middle orange graph), which would can instantly demonstrate for the client other produce a significant borrowing requirement rate plan options, the customer impact and (bottom middle pink graph).This provides a perhaps a more acceptable rate adjustment graphical depiction of this fictitious client's plan. tl r CITY�F LLIENL,PLOFIN, 4 • I a U e • n w . t , II FY IDBa b FY 1V06 FY 1B0i fY R006 FY 3]Bp FY3B10 FY 3J'11 FY3p 13 yr _FY 301J FY ABB eFT'GII_3_ s I . 0A0% 38X 18.1&Y B-0M 61YX 116X 66CR B.]B% 1066Y 13.18% S.x R I c.�a.. OOY l]0%]JBY ]IbY ]IB% 89Y 66_6Y_ 39% 603Y 3. < L1+fP AB% 31)% O.GOY 1.B3Y 101AY -OBM __61pX 1}!Y 6.[8Y. 0.]0% 11066Y 43.W%_ ,: Tevl R.e.Fl.n 0 I]B-L 9J0Y _ ]>0Y '!.)yi OWY 6aPA 15B% 613Y. BtTA 16.LIY 13AAY � OAO E]1% OCB% 292Y 'IB.1pY Ob>% O.IiK 1.36Y 6d8Y B.]6% 1650Y .131vY R .Cm' 1.10 119 11r 1 T 11 .1] 113 1 a fJa - sHi 1.16 JA3 19 JSi— ST1 110 _ ilb 11Q_„_110 itt t0 1 � p,. Li.,p4 11 1 1t1 1 3 t13 11� dome,Inca[ $ 21 n�V9m,411 00 LiTy L]1=TZ 3 1 ,e Sews,Eil 5130'I $R38 $i39__ $?SBS 2fibU- WI8 Y]aD _"4W 503) $321. r rlp 6 91 tL1 OJ fd1W 3 id]33 1 BB $61]E 16d OB 16183 $5,91 [6211 La1PW1 Y'00 bJ5 $$16: DSa d6 $5$10 ;SP J' 56319 ri eem .Jddl .n 3„ f10UW®Am °" - { {ISA "yes t�ra'sru Tom.. alAv, aan ..i 14 Im1on II,man E � CO Burton&Associates-All Rights Reserved This type of visioning and In this screen, the upper left graph shows that equal annual rate alternative scenario analysis adjustments of 3.70% will provide adequate revenue in each year of provides our clients with an the projection period up through FY 2008, the year of the rate spike in unparalleled decision support the previous screen, while maintaining adequate debt service coverage process. It identifies and reserves and with similar, but slightly lower, borrowing alternative decision choices requirements. The alternative analysis demonstrated in the above and the consequenc of example would take about two minutes to accomplish during and those choice interactive work session. Burton &Associates/Utility and Governmental Economics Consultants 37 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH We can run numerous alternative scenarios during these interactive sessions and your staff can see graphically the implications, to key This instantaneous feedback to financial and customer impact indicators, of changes to variables in key decision makers, in a the rate making process such as timing and amount of capital projects focused,solutions oriented environment,sets us apart and funded in the capital improvements program (CIP), various levels of provides our clients with the renewal and replacement expenditures, adjusting spend-down limits best, most effective financial on reserve funds, rate structure changes, alternatives for Ievelizing s. and rate program design tools rate increases over multiple years, growth rates, cost escalation '.< available. factors and numerous other variables. These interactive sessions provide the basis for you to make informed decisions relating to the rate making process by allowing you to see and understand, first hand, the full range of the financial dynamics of your water,wastewater and reclaimed water utilities. These sessions have proven to be enlightening, time saving and cost effective in our recent work with the City of Fort Lauderdale. The City of Coral Springs, the City of Lake Worth, the City of Sarasota, the Peace River Manasota Regional Water Supply Authority, Orange County, the City of Clearwater,the City of Cape Coral, the City of Fort Myers, the City of Punta Gorda, Okaloosa County, the City of Ocoee, the City of Deltona, the City of Tarpon Springs, the City of New Port Richey, the Orange Water and Sewer Authority(OWASA) and many others. We encourage you to contact our references and ask them about our process and approach to rate program design and our understanding of the rate making process. appropriateour cost allocation and rate design processes include determination of the most . . and rate design based upon usage/other characteristics of customer classes and local goals . . . Cost Allocation and Rate Design - As with the objectives with regard to customer impact. development of a multi-year revenue Customer impact will be examined for each sufficiency analysis and financial management utility rate structure alternative identified. This program, in these work sessions, we will analysis examines the impact of alternative conduct alternative scenario analyses regarding rates upon customers of varying sizes and with alternative cost allocations and rate structure various usage profiles within customer classes. designs interactively with your staff with our rate models up and running on the computer. Examples of two types of customer impact analysis charts used in our interactive work This allows us to develop final rates and fees sessions are presented below. that generate sufficient revenues, yet are structured so as to be sensitive to your Burton&Associates/ Utility and Governmental Economics Consultants 38 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH Comparison of Monthly Bills-All Alternatives RESIDENT/AL CUSTOMERS Residential Customers-5/B"XY4"METERS 51V"x 314"METERS-WATER&SEWER 5200 40% imx w $175 30%I.. a- 0 IlkYersalelrbrMne - 6W. U m$125 w.s.m�.ronan.meae. 20% _ M/! ~ W11 _.,am E _ w w '— C$100 t- �10% o $75 0% i u U $25 w-10% $p i-20% 1,000 10,000 25,W0 50,000 Monthly Consumption -30% a 5101a 10 SS as 35 p0.55a SSW BaAT3 BO BaW 9a .Structure �Akarnetiw .AlternstNe ,pR LyCoasuwanm(NOS) COMPARISON OF ALTERNATIVE RATE STRUCTURES O Burton&Associates-All Rights Reserved The chart on the left examines the impact of two rate structure alternatives on single family customers at various identified levels of water usage. The chart on the right examines the impact of the same two rate structure alternatives in terms of percentage increase in monthly bill along a continuum of water usage from 0 to 95,000 gallons per month. This chart also shows the percentage of customers at all levels of usage. This can be used to determine the percentage of customers affected by each rate structure alternative at different levels of usage. It is our philosophy that each client is unique and the rate program that we recommend for them must be specific to their needs by reflecting their local goals, objectives and political realities. Impact Fees/System Capacity Fees -We also have a module of our FAMS-XLO model that we use to develop impact fees. This module will first be tailored to calculate impact fees in accordance with your specific local requirements, laws, regulations and objectives. The module will then be linked to the revenue forecast module of FAMS-XL© and impact fees are included as a capital funding source in the development of the long term financial and capital funding plan. This allows us to assist you in understanding the effectiveness of impact fees in your overall financial plan so that decisions regarding adjustments to impact fees can be made with a clear vision as to the impact that they will have on rates and your ability to fund required capital projects. This capability was important in a recent study that we performed for Orange County Florida because the County was facing in excess of$200 million in capital expenditures in year 9 of a ten year planning period for alternative water supply. We were able to demonstrate the effectiveness of increasing impact fees to down-size the borrowing requirements for the alternative water supply facilities, thus reducing the pressure on water rates. Burton&Associates/Utility and Governmental Economics Consultants 39 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH Specific Service Fees — FAMS-XL© also includes a module for the development of specific service fees such as penalties, interest, rebilling, turn-on fees, turn-off fees, returned check charges, sprinkler charges, etc. These charges will be developed by using cost determination templates in which all personnel, vehicles, supplies, equipment and other costs are captured, along with proper overhead costs,to determine the full cost of providing the subject services. 4.2 DETAILED PROJECT WORK PLAN Successful completion of a typical financial and rate consulting project requires a comprehensive and integrated approach to the design of a rate program and financial plan that meets the City's needs and development of rates in accordance with that rate program in a multi-year analysis that integrates all components of the rate requirements. We have developed a comprehensive project work plan that will accomplish all of the goals of the City as set forth in your RFP and stated in the prior section. Our work plan includes all components of your required scope and includes adaptation of our proven, multi-year comprehensive rate and financial planning model, FAMS-XL©, to be used to meet your requirements. A typical detailed project work plan is presented below: • Task 1: Project Initiation-Initiate the Project 1.1 Conduct kickoff Meeting 1.2 Review of Background Information Task 2: Revenue Sufficiency Analysis-Develop a Multi-year Financial Forecast and Financial Plan 2.1 Prepare water and wastewater customer and demand analysis to determine projected growth, trends in usage patterns and total projected water and wastewater system customers, ERCs and usage. 2.2 Obtain, verify and input financial and billing data into Burton & Associates proprietary FAMS XL © model, run the model and produce preliminary output, including a ten year financial management program that will include the following separately for the water and wastewater systems: 0 Capital Improvements Program Project listing by year Alternative financing options for capital projects Optimum funding source by project by year 0 Borrowing Program Borrowing required (by source)to fund CIP projects not funded by other sources to include but not necessarily be limited to revenue bonds and State or other programs. Timing of bond issue(s)/loan(s)to provide required borrowed funds • Burton&Associates/Utility and Governmental Economics Consultants 40 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH Annual debt service of bond issue(s)/loan(s) • o Revenue Sufficiency Analysis - Annual revenue projections - Annual operations and maintenance expense projections - All other annual revenue requirements such as R&R, minor capital, transfers to other funds, current debt service/loan payments, replenishment of reserves, etc. - Alternative plans of annual percentage rate adjustments to the water and wastewater rates to provide sufficient revenues for each service. o Sources and Uses of Funds Analysis o Funds Analysis Spend down limits(minimum reserve requirements) by fund Beginning and ending funds balances by fund by year 2.3 Make adjustments to FAMS-XL© as required to model the utility's specific financial dynamics. 2.4 Review results with consulting team, make required adjustments and create alternatives scenarios. 2.5 Meet with City staff in an interactive work session to review preliminary results. 2.6 Make adjustments as required based upon input from City staff in Task 2.4. 2.7 Meet with City staff in a second interactive work session to review adjusted results and determine final plan of annual rate revenue adjustments and the revenue requirements for the test year for rate making. . 2.8 Perform a diagnostic evaluation of the current rate design and identify adjustments to be considered in the development of rates. Task 3: Cost Allocation-Perform a Detailed Cost-of-Service Analysis: 3.1 Identify all test year costs/revenue requirements associated with the provision of water, wastewater and reclaimed water service from the preferred financial forecast alternative identified in Task 2. 3.2 Allocate costs/revenue requirements to service and to functional cost components, fixed a variable cost components, customer classes and to retail/wholesale service,as applicable, based upon appropriate allocation criteria. 3.3 Review allocation worksheet with City staff. 3.4 Prepare final allocation worksheet based upon input from City staff. Task 4 Rate Design-Develop Water,Wastewater and Reclaimed Water Rates, Fees and Charges: 4.1 Develop user fees: a. Load billing history data into our FAMS-XL© rate model and create a bill frequency analysis. b. Conduct a revenue test to ensure accuracy of billing data. Burton&Associates/Utility and Governmental Economics Consultants 41 • QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH C. Set up the rate model in conformance with the cost allocation results of Task 3 and the rate design evaluation in 4,1.a. d. Run the model and prepare retail and wholesale rate structure scenarios. e. Review results with consulting team and adjust as required. f. Meet with City staff in an interactive work session to review preliminary results. g. Make adjustments as required based upon input from City staff in Task 4.1.g. h. Meet with City staff in a second interactive work session to review adjusted results and determine final alternative rate schedules. 4.2 Develop Impact/System Capacity Fees: a. Obtain and review fixed asset records for all major system components b. Prepare reproduction cost schedule of fixed assets by major system component. C. Review CIP with City staff to determine portion of projects for expanded capacity and portions associated with renewal and rehabilitation. d. Load appropriate data into our FAMS-XL© impact fee module, adjust and calibrate and produce preliminary results. e. Review results with consulting team and adjust as required. f. Link impact module of FAMS-XL© with the financial forecast module set-up in Task 2 to evaluate the integrated effects of changes in the impact fees in the capital projects funding plan and the effects upon user fee rate revenue requirements and the overall financial plan. g. Meet with City staff in an interactive work session to review preliminary results. h. Make adjustments as required based upon input from City staff in Task 4.2.g. i. Meet with City staff in a second interactive work session to review adjusted results and determine final Impact Fee schedule. 4.3 Develop Specific Service and Miscellaneous Charges/Fees: a. Review utility operations to determine if additional service charges/revenue enhancements are appropriate. b. Prepare cost computation template for each specific service fee to be evaluated (assume 12 fees). C. Review cost computation templates with City staff and adjust as required. d. Prepare schedule of current and proposed specific service fees. 4.4 Conduct and Compile a Comparative Rate Survey Task 5: Presentation to Management- Conduct Presentation to City Management 5.1 Prepare presentation 5.2 Make adjustments based upon input from City staff. 5.3 Attend meeting with City Management and present the preliminary results. • Burton&Associates/ Utility and Governmental Economics Consultants 42 QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES 4.TYPICAL PROJECT APPROACH Task 6: Final Report-Prepare a Report of the Results of the Study • 6.1 Prepare a Draft Report of the Results of the Study 6.2 Review Draft Report with City Staff and Management 6.3 Present the results of the Study to City Council. a. Meet with the City Council to present the results of the Rate Study. b. Make adjustments to the analyses as required based upon City Council direction. 6.4 Prepare Final Report of the Results of the Rate Study Task 7: Ordinances/Resolutions and Agreements - Provide Assistance in Development of Ordinances, Resolution, Bulk Service Agreements, Development Agreements,and Interlocal Agreements 7.1 Prepare Rate Schedules for Inclusion in a Rate Ordinance/Resolution 7.2 Review Ordinance Developed by City Attorney. 7.3 Participate in Conference Call with City Attorney to discuss Ordinance/Resolution. 7.4 Attend Two(2) Rate Hearings for Adoption. 7.5 Assist in Development of Bulk Service Agreements, Development Agreements and Interlocal Agreements as Required. Burton &Associates/Utility and Governmental Economics Consultants 43 • QUALIFICATIONS SUMMARY WATER RESOURCES FINANCIAL AND RATE CONSULTING SERVICES S.WHY BURTON&ASSOCIATES • S. WHY BURTON & ASSOCIATES Burton & Associates has been the premier modeling approach to the development of water,wastewater, stormwater and solid waste financial plans and rates for utilities. Even as rate consulting firm in Florida for 21 years. We others have attempted to replicate the process, have been dealing with .bell weather issues in our models and interactive approach stand out our bell weather state and have developed an as the industry leader. incredibly empowering live interactive decision support process and associated modeling As a specialty firm, we offer you excellence, system. efficiency and nimbleness in terms of client service and response that large hierarchal firms When you check the extensive list of references cannot by their very nature. And we offer the provided herein, you will find that our clients national stature, experience and knowledge of can attest to the vision and empowerment that our president and founder, Michael Burton, as this process gives them in the financial the Project Principal on our project team. management of their utility. "We have worked with B&A for Mr. Burton has served for our approach truly integrates all years and have consistently seven years on the AWWA • aspects of the financial recommended their firm to Rates and Charges Committee management of a water, waste- government colleagues who are where he co-authored AWWA water, stormwater and/or solid seeking professional,timely and Manual M54 - Developing waste utility from rates to accurate analytical services. Their Rates for Small Systems, which financial management plans interactive work session process is was published in 2004 and the most cost effective and efficient that are fully integrated with the way to conduct business and their where he currently serves on a capital planning process. ability to present and communicate sub-committee evaluating their work product is outstanding." affordability as it relates to We were the first to develop a rate making principals. truly integrated and interactive Ron Nielsen Utility Fiscal Manager Orange County, FL • Burton&Associates/Utility and Governmental Economics Consultants 44