Florida Governmental Ut¡lity Authority - FGUA

Mr. J. Kevin Grace
Government Services GrouP, Inc.
February 24,2012
Page2
In order to present the consolidated system in the bond feasibility report, the following
additional services will need to be conducted:
1. update the customer projections and financial forecast which was initially prepared in
-Revenue
support of the Water Sufficiency Review for the Consolidated System dated
Sepìember l,2ol1(which was based on partial Fiscal Year 2011 information)'
Z. prepare a historical operating results analysis and debt cornpliance evaluatiotr for all years
of Consolidated System o*Ãership by the FGUA (Fiscal Years 2010 fpartial year] and
Z0ll, which will iequire completion of the Comprehensive Annual Financial Report for
such Fiscal Year)'
3. Evaluate the Consolidated System revenue requirements on stand-alone basis and the
sufficiency of the rate revenues to meet such requirements to determine the amount of rate
adjustment needed to support the issuance of permanent debt for the system; the Mad
Hátter Systern rates should not support the needed increase in Consolidated System rates as
a result of the permanent financing. This will also require the attendance of meetings with
the System lrriunug", and the ¡'CUn acquisition team to discuss results and develop
financing strategies.
4. Attend i) a customer meeting to present the rates to affected ratepayers (separate meeting
from the Mad Hatter customer meeting) and ii) the FGUA Board public meeting for the
presentation of the recommended Rate Resolution. PRMG will assist the System Manager
in the preparation of such resolution (physical preparation will be responsibility of the
System Manager, pRMG will review resolûtion language and rate descriptions and provide
input to such language).
5. provide the Consolidated System disclosure in the bond feasibility report in same detail as
the Mad Hatter System and develop combined financial operation statements since the two
systems will be, considered as a single enterprise fund for accounting' operation'
management, and rate covenant compliance (materially increases complexiry of preparation
of the bond feasibilitY rePort).
Accordingly, we have included in this request for additional services Amendment No' I to work
Authorization No. pRMG- I I -01 (the "Amendment No. 1") the scope of services, contract price,
and project schedule for the additional services'
All work performed by pRMG pursuant to this work Authorization will be "at risk" and the total
contract amount attributed to the Mad Hatter System ($90,000) will only be paid upon a
successful acquisition of the Mad Hatter system, including the issuance of bonds, by the FGUA'
The AmendmentNo. 1 portion ($18,500) of the Work Authorization should be paid only upon
successful completion oi a consolidated iefinancing transaction. To the extent that a reltnancing
for only the existing Consolidated System is to occur, the parties agree to renegotiate the amount
K:\DC\I 109-45\Conesp\WA Amendment No l Ltr (Final)