Authorize $45,950 transportation fee study with SCS Engineers

RESOLUTION NO. 2025- A RESOLUTION OF THE VILLAGE OF PINECREST, FLORIDA, AUTHORIZING THE VILLAGE MANAGER TO ENTER INTO AN AGREEMENT WITH SCS ENGINEERS FOR A TRANSPORTATION FEE STUDY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, pursuant to Section 2-288 of the Code of Ordinances, the Village Council may, by majority vote, waive the competitive bidding procedures if determined that it is practical to do so; and WHEREAS, the Village Manager wishes to enter into an agreement with SCS Engineers for a Transportation Fee Study;

BE IT RESOLVED BY THE VILLAGE COUNCIL OF PINECREST, FLORIDA, AS FOLLOWS: Section 1. That the Village Council hereby authorizes the Village Manager to waive the procurement policy and enter into the attached agreement with SCS Engineers for a Transportation Fee Study, in amount not to exceed $45,950. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 14th day of October, 2025. Joseph M. Corradino, Mayor Attest: ____________________________ Priscilla Torres, MMC Village Clerk Approved as to Form and Legal Sufficiency: ____________________________ Mitchell Bierman Village Attorney Consent Agenda DATE: October 7, 2025 TO: The Honorable Mayor and Members of the Village Council FROM: Yocelyn Galiano, ICMA-CM, Village Manager RE: Transportation Fee Study Contract Award Under Florida Statutes §336.025, counties are authorized to levy a local option fuel tax of up to six cents per gallon of motor fuel and diesel to fund transportation-related purposes such as roadway construction, maintenance, and transit. In Miami-Dade County, the Board of County Commissioners has enacted the full six-cent tax, levied countywide through December 31, 2053, with proceeds distributed pursuant to an interlocal agreement that fixes the percentage share each municipality receives. This arrangement provides the Village of Pinecrest with a predictable but non-growing revenue stream dedicated to transportation. In addition, the Municipal Revenue Sharing Program allocates one cent of the statewide fuel tax to municipalities based largely on population, with adjustments for property tax effort. Because Pinecrest’s population has remained relatively flat compared to neighboring cities, its share of this revenue source has steadily declined, further constraining growth in the Village’s fuel- related state-shared revenues. Combined, these two programs generate approximately $450,000 annually for Pinecrest—an amount that provides a reliable base for transportation funding but falls well short of meeting the community’s identified needs. The Village’s 2018 Transportation Master Plan estimated $17.8 million in project costs, which, when adjusted for construction inflation, now equates to approximately $26.6 million in 2025 dollars using the National Highway Construction Cost Index. This escalation highlights the significant rise in roadway and infrastructure costs relative to the broader economy. Current revenues cover only a fraction of this need and must often be supplemented with General Fund transfers simply to sustain essential maintenance and repair. Without a new dedicated revenue source, the Village will be unable to advance critical priorities such as roadway resurfacing, traffic calming, and multimodal improvements. During the FY 2025–26 budget process, the Village Council discussed commissioning a feasibility study to evaluate the establishment of a local transportation fee. Such a study would identify options for generating additional revenue, ensure that transportation users equitably share in the cost of maintaining and improving the system, and safeguard the long-term fiscal sustainability of Pinecrest’s transportation infrastructure. To that end, I respectfully request that the Village Council waive the procurement policy and authorize the Village Manager to enter into an agreement with SCS Engineers, based on the attached proposal, for a fixed fee of $45,950. The Village has previously contracted with SCS Engineers to complete the Stormwater Utility Fee Study, which successfully modernized the formula approach for that revenue stream. SCS brings proven expertise in operational analysis, financial modeling, and municipal ratemaking. By expediting the Transportation Fee Study, the Village may be positioned to implement a new funding source as early as FY 2026–27. 5850 South Semoran Blvd, Orlando, FL 32822 | 904-431-6902 Management Services September 30, 2025 Yocelyn Galiano Village Manager Village of Pinecrest 10800 Red Road Pinecrest, Florida 33156 Subject: Transportation Fee Study Proposal Dear Mr. Mendez, The Village of Pinecrest (Village) has requested the development of a Transportation Fee for the Village. SCS Engineers (SCS) is pleased to present our proposed scope of services and cost estimate. YOUR BACKGROUND The Village of Pinecrest, one of 34 municipalities in Miami-Dade County, has about 18,000 residents. Roadway and street services in the Village are currently funded through the General Fund. As the Village has not previously had a fee for these services, the Village would like to consider the revenue mechanisms available, a fee methodology, financial outlook, and cost to serve residents to validate that the fee adequately meets the Village’s revenue requirements. OUR QUALIFICATIONS SCS will support you by offering our project team’s expertise in operational analysis, financial analysis, and ratemaking for municipal government. Our team includes experts in municipal consulting and finance. I, Vita Quinn, MBA, will be your Project Manager. I lead SCS’ Management Services team and am SCS’ National Expert on Rate Studies. My expertise is in providing economic, financial, and management consulting services to local governments. I will be your point of contact and lead the majority of project work. OUR APPROACH Our proposed scope of services includes the following activities:  Kickoff meeting to discuss your key issues, establish the project schedule and gather data, and a thorough review of the data provided;  A projection of revenue requirements;  Work with the Village’s attorneys to determine the best type of fee to fund its roadways;  Development of the Village’s Transportation Fee; Pinecrest Page 2  A technical memorandum detailing the results of the analysis, and a PowerPoint presentation of results which we will present at a meeting with your Council. While not defined herein, we can provide additional support for public engagement and outreach should the Village require it. Attachment A describes our proposed scope of services, detailed work plan, and cost estimate. We propose to complete this work for a fixed fee of $45,950. We are submitting this proposal for your review and consideration and would like to set up a time to discuss the proposed scope of services as soon as possible. We look forward to the opportunity to serve you. Sincerely, Vita Quinn, MBA Stacey Demers Director of Management Services Vice President SCS Engineers SCS Engineers vquinn@scsengineers.com sdemers@scsengineers.com 386-546-7719 Attachment A – Scope of Services www.scsengineers.com A-1 ATTACHMENT A WORK PLAN AND COST ESTIMATE Our work plan below details the tasks, meetings with Village staff, and final deliverables that will be included in this study. This proposal is fixed fee and includes our anticipated time and expenses to complete the tasks described below. To the extent that the Village wishes to engage SCS for meetings or other services not defined herein, the cost for these meetings or hourly rates for services can be found at the end of this section under Hourly Rates. Compile and Review Existing Information We will begin our study by scheduling a kickoff meeting with our team and Village staff to discuss key issues, near and long-term goals, and metrics that you consider to be most important to your financial performance. At this meeting we will also distribute our data request, discuss the items required for our analysis, and the platform we will use for data transfer. We will establish who will be involved in the process, the key members of our team and your key staff, and discuss the project schedule for interactive work sessions with your staff, meetings with your Council, and final deliverables. We will work with Village staff to identify and obtain all information relevant to understanding your existing operations and costs for provision of service to customers. Once we start to receive the data, we will begin an in-depth review. We will also review any other data provided and remain in contact if we need clarification prior to our first interactive work session. Items we will request may include:  Parcel/property assessor data, including building and structure files  Fund balances  Historical and budgeted revenues and operating expenses  Debt service schedules and coverage requirements  Capital improvement plan and fleet/equipment inventory  Current staffing and projected future hiring  Village ordinances and policies relevant to the analysis  Legal and financial concerns and/or regulatory and policy restrictions Revenue Sufficiency and Interactive Meetings SCS uses an interactive modeling approach that allows input from you as we develop customized financial solutions. We will perform a revenue sufficiency analysis to determine the long-term sustainability of your solid waste system revenues, including a 10-year financial management plan and associated plan of rate adjustments. During meetings with your staff, we display the models and work with you to test multiple “what if” scenarios that consider your financial sensitivity to changes in various variables. For example, we can test the impact of changes to your vehicle program costs and timing, and the associated impact on operating expenses and staffing requirements. For each scenario considered, we will identify the necessary revenue adjustments, including any borrowing that may be required, and the associated financial, fund balance, and customer impacts. We will also evaluate capital funding alternatives, including cash funding, debt funding, grants, or any other financing alternatives the Village is considering. The results are displayed in a simple, graphical format that allows for easy comparison of scenarios. Some of the steps in this process are detailed in the following sections. Expense Projection To project your revenue requirements, we review your historical budgeted and executed operating expenses, all planned capital improvements and associated funding sources, existing debt service, available and recommended operating, capital, and debt service reserves, and any financial policies and reserve requirements dictated by policies of the Village. We will also consider your goals to address during the study, such as cash reserve targets, operational changes, or hiring needs. We will study near-term changes in capital and labor costs and how this will affect your expenses. Using cost escalators, we estimate your future expense increases and the nature of any expenses that may be tied to a contract or are one-time/temporary. As we tailor our financial model to your financial dynamics, we identify any other issues or questions affecting financial performance to discuss with you during our first interactive meeting. Our model will utilize the above-mentioned data and assumptions to create projections of revenues, operating expenses, capital spending, and fund balances. Your Financial Goals/Objectives Analysis & "What If" Scenario Testing Graphical Outputs and Detailed Schedules Capital Program Review One of the largest expenditures driving the need for rate increases is the cost of capital outlay required to meet current and future service needs and regulatory requirements. In addition, there are significant renewal and replacement cost requirements to preserve the reliability and useful life of your streets and other assets. The Village must consistently fund equipment replacements or incur increases in repair and maintenance costs. We will perform a review of your capital program, including vehicle/equipment replacements and the anticipated sources of funds available to pay for these projects. This discussion of funding is important to reducing the impact of capital on the need for revenue. Recognizing this, we will:  Review the level of your budgeted capital spending vs needed capital investment,  Consider the priority of individual items within your capital plan,  Review all restricted and unrestricted funds available for projects,  Discuss timing of project expenditures, and  Consider external funding sources, such as grants or loans, that may mitigate rate impacts. In meetings with Village staff, we will review the level of capital or types of projects the Village historically cash funds from rate revenues. We will evaluate the pros and cons of alternative capital funding practices, and financial considerations associated with leveraging debt financing. We will consider whether the Village could optimize its use of cash and debt funding to maximize available cash reserves, improve the long-term stability of revenues, and limit risk. Working with Village staff, we will develop a recommended capital spending and funding plan for the identified capital and future capital needs. Financial Management Plan Based on our analysis and interactions with staff, we now a projection of operations and maintenance expenses, capital investment, debt service payments, and the resulting fund balances in each year of the projection period. The final step is to review the scenarios the Village may wish to consider for project timing and funding, policy changes, or sensitivity to changes in any of the assumptions used in the analysis and then develop a long-term plan of revenue adjustments for each scenario. Working with you, we identify the scenario that best reflects your anticipated and desired outcomes while minimizing rate impacts to your customers. This plan will provide the revenue requirements used as the basis for updating the structure of your rates. Transportation Revenue Mechanism At this stage, it is important to recognize that multiple financing mechanisms may be available to fund roadway projects, including transportation impact fees, mobility fees, user fees, non-ad valorem special assessments, excise taxes, or other dedicated revenue streams. Each option carries distinct legal requirements, policy implications, and administrative considerations. Before any fee can be calculated or implemented, we will need to work closely with the Village’s attorneys to determine which mechanisms are permissible under State law and most appropriate for the Village’s objectives. This collaboration will validate that the chosen structure is defensible, transparent, and aligned with statutory authority. Our team will rely on the attorneys to review relevant state statutes, local charter provisions, and case law to identify the full range of revenue options available to the Village. The attorneys will also determine the procedural requirements for adoption, such as public hearings, ordinance development, or referendum thresholds. Methodology Development & Fee Calculation Once the legal framework has been established, we will incorporate this guidance into our financial modeling to ensure the revenue structure is both compliant and administratively feasible. We will provide technical documentation to support the attorneys’ legal review and will participate in joint discussions with staff, policymakers, and legal counsel to align the financial strategy with the legal framework. Because the specific revenue mechanism for funding roadway projects has not yet been determined, the scope of analysis will be adapted once the Village’s attorneys identify the legal options available. With the revenue requirement established, we will then develop a methodology that translates these costs into a defensible allocation framework consistent with the selected revenue mechanism. The methodology will vary depending on the tool adopted, but in each case, the approach will be transparent and data-driven. Finally, we will use the methodology to apportion the revenue requirement among the paying entities in a manner that is equitable, consistent with statutory requirements, and administratively feasible. This will give the Village a clear, implementable path to generating the funds needed to support roadway improvements. Once the methodology and fee is finalized, we will begin our presentation of results. Presentation of Results & Implementation Assistance Customer Impacts & Plan for Public Meetings A well-designed rate structure only benefits you if it is adopted and implemented. With this outcome in mind, it is important to consider the impact of recommended changes on the average customer. It is also helpful at this point to include the Village Manager or other officials in Village Administration in a conversation of the key issues and the basis for the recommendations prior to public meetings. This conversation allows us to get support and direction regarding key items of interest to the public and/or elected officials that may be important to gaining support. Once we have agreed on the fee/policy recommendations to be presented to the public and Councilors, we will begin the presentation of results. Written Narrative We will develop outputs of the assumptions and projected revenues, expenses, fee adjustments, and fee structure changes used in developing the analysis. These will be included in our draft and final technical memorandums for your review and feedback. We will create a memorandum detailing the analysis performed and recommendations for the Village to consider. The draft memorandum will be distributed to Village staff for review and comment. Upon receiving comments from Village staff, we will adjust our analysis and/or narrative as required and distribute the final memorandum. Public Meetings In addition to the written report, we will develop a PowerPoint presentation summarizing the analysis and findings. Then we will also attend a meeting with the Village Council and/or the public where we will present the results of our analysis. As earlier discussed, it is important to have early interaction with key stakeholders, but this is the first time many of the residents will hear the details of the rate study performed. It is important to convey that the Villagee is acting in the best interests of the residents. We will communicate:  The key issues you are facing and the associated costs driving the need for additional revenue  The basis for calculating fees, including the equitable distribution of costs and methodologies considered. TOTAL FEE $45,950