Submitted By: Tiffany Stewart
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Presentation By: Darren Park
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Department: Public Works
STAFF RECOMMENDATION (Motion Ready):
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Approve the award of a piggyback agreement to Raftelis Financial Consultants, Inc., for the provision of a solid waste rate study for an estimated cost of $74,559
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Raftelis Financial Consultants, Inc. (Raftelis) is a financial and management consulting firm that provides independent evaluations for enterprise systems. Raftelis has agreed to provide rate and financial consulting services related to the preparation of a rate and collection system development fee study of the City’s solid waste fees. They will evaluate the adequacy of monthly solid waste rates, impact fees, and other miscellaneous charges. The rate study will also include an update to the financial forecast to determine sufficient revenue to support system operations, maintenance, and capital expenditures.
The City's last solid waste rate study was conducted in 2016. Rate increases were implemented annually from Fiscal Year 2017 through Fiscal Year 2021.
FINDINGS AND CONCLUSIONS:
After a competitive solicitation process, the City of Daytona Beach awarded contract No. 19632 (the Daytona Beach General Services Contract”) to Raftelis to provide a solid waste rate study. The Daytona Beach General Services Contract offered an initial term of two years, commencing March 4, 2020, and ending March 3, 2022, with three optional one-year renewal terms available upon mutual agreement of the parties. The agreement is currently in the final renewal term.
On September 3, 2024, after evaluating the Daytona Beach General Services Contract, Procurement and Contracting Department staff granted the Public Works Department’s request for a procurement exception to piggyback the Daytona Beach General Services Contract for preparation of the City’s solid waste rate and collection system development fee study. Raftelis has agreed to extend to the City of Ocala the same highly competitive pricing yielded from Daytona Beach’s competitive solicitation process, which maximizes the best value to the City.
The Deliverables to be provided under this engagement include the following items:
• Data request list
• Solid Waste Comparison Survey and Rate Comparison Chart
• Recommended updated fees, if any
• Forecast of revenues under existing rates over the multi-year forecast period
• Multi-year financial plan
• Cost functionalization and classification analyses, as well as preliminary rate recommendations
• Functional rate model for the City’s future use
• Rate Comparison
• Draft report
• Final report
• Draft notification language for City legal counsel’s review/approval
After the City’s Notice is issued, Raftelis will complete the evaluation of solid waste collection rates and collection system development fees within 180 days. The completion of the study is subject to the City’s provision and availability of information necessary for Raftelis to conduct the evaluations. Staff recommends approval of the contract with Raftelis Financial Consultants, Inc.
FISCAL IMPACT:
Funding for this rate study is budgeted in 453-023-326-534-53-31010 for Fiscal Year 2023-24 in the amount of $74,559.
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny