Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER
DATE: FEBRUARY 25, 2025
SUBJECT: APPROV AL OF PROFESSIONAL SERVICES AGREEMENT FOR
ASSESSMENT ENGINEERING SERVICES FOR THE LIGHTING &
LANDSCAPING ASSESSMENT DISTRICT (AD 121)
EXECUTIVE SUMMARY
The City Council will consider approving a professional services agreement with NBS Government Finance Group, Inc. to provide the City with assessment engineering services for the City’s Lighting & Landscaping Assessment District (AD 121) for a period of three years. The professional services agreement for the previous consultant, which was furnishing the City with these services has expired. In addition, the consultant previously used by the City no longer has the capability of providing the subject services due to staff turnover. Therefore, a new professional services agreement is recommended with NBS Government Finance Group, Inc., which will replace the previous consultant.
RECOMMENDATION
That the City Council:
1. Approve the professional services agreement with NBS Government Finance Group, Inc. to provide assessment engineering services for the City’s Lighting & Landscaping Assessment District (AD 121) for a three-year term beginning on February 26, 2025, for a not-to-exceed fee of $248,842.
2. Authorize the City Manager, or his designee, to execute the professional services agreement with NBS Government Finance Group, Inc. in the amount of $248,842, including any non-substantive extensions, change orders, purchase orders, and amendments up to the authorized budget amount of $300,000.
BACKGROUND
There are 6,655 street lights that provide illumination for vehicular traffic and pedestrian safety in the City. Of the said total, 2,144 street lights are owned by the City, 57 are owned by Caltrans, 45 are shared with other municipalities, and 4,409 are owned by Southern California Edison Company (SCE). There is also a total of 672 safety lights within the City located at signalized intersections and pedestrian facilities, 542 of which are City-owned,
APPROVE PROFESSIONAL SERVICES AGREEMENT FOR ASSESSMENT ENGINEERING SERVICES FOR THE LIGHTING & LANDSCAPING ASSESSMENT DISTRICT (AD 121) FEBRUARY 25, 2025
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41 are owned by the state and 89 are shared with adjoining agencies. Similarly, the City has 115 traffic signals, including nine that are operated and maintained by Caltrans and 14 that are shared with adjoining agencies. In addition, the City has 16 (eight-pair) flashing beacons and 28 solar-powered vehicle speed feedback signs.
The costs for maintaining and operating the traffic signals, street lights, safety lights, flashing beacons, and vehicle speed feedback signs are paid from a combination of assessments on individual parcels under Lighting and Landscaping Assessment District (AD) 121, originally established by the City Council in accordance with the provisions of the Landscaping and Lighting Act of 1972 on July 18, 1978, as well as revenues from general property taxes, also referred to as Ad Valorem Tax. These assessments appear on the Los Angeles County property tax bills.
Funding for on-street landscaping maintenance is also paid from direct assessments under the same Act. This assessment provides funds for tree trimming, tree removals, and tree planting along parkways and medians of public streets and City-owned rights- of-way in the City.
The City utilizes consultants to administer the Lighting & Landscaping Assessment District on an annual basis. The Professional Services Agreement with the prior firm that had been providing this service to the City has expired and can no longer be extended.
In addition, the prior firm has undergone staff turnover and no longer has the in-house expertise to provide the subject professional services. Therefore, it is necessary to retain the services of the new consultant to continue providing this service to the City.
ANALYS IS
A Request for Proposals (RFP) for the assessment engineering services was posted on Planet Bids on October 14, 2024. On November 7, 2024, proposals were received from the following firms: 1) NBS Government Finance Group, Inc. and 2) Webb Municipal Finance, Inc. Both consultants were interviewed on January 23, 2025, by a panel consisting of two City employees from the Public Works Department and one City employee from the Finance Department. The two consultants were ranked according to their combined proposal/interview scores as follows along with each consultant’s respective fee:
Consultant Final Ranking Proposed Fee
NBS Government Finance Group, Inc. 1 $248,842
Webb Municipal Finance, Inc. 2 $248,678
As indicated in the above table, NBS Government Finance Group, Inc. of Temecula, CA received the higher ranking due to their extensive experience with providing assessment
AD 121 ASSESSMENT ENGINEERING SERVICES – APPROVE PROFESSIONAL SERVICES
AGREEMENT
FEBRUARY 25, 2025
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engineering services for several agencies throughout the State, including Los Angeles County agencies; highly qualified and knowledgeable personnel; effective proposed scope-of-work; and their superior performance during their interview, during which they demonstrated a high level of commitment to providing the City with said professional services and excellent presentation material. A review of NBS Government Finance Group, Inc.’s references confirmed that they have performed to their clients’ satisfaction when providing similar services and a review of the firm’s history showed that this firm is in good financial standing.
The scope of work includes overall project management, the completion of an assessment rate analysis to evaluate the existing assessment levy rates for each zone as well as to determine what the rates should be based on the City’s needs, the annual administration of AD 121, and an optional task, should it be deemed desirable, for the preparation and administering of a Proposition 218 ballot process in order to increase the maximum levy rates in three of the AD 121 zones, which have had negative running balances and are being subsidized by the General Fund.
Staff recommends approval of the professional services agreement with NBS Government Finance Group, Inc. for the professional services to commence and to keep the assessment levy process for Fiscal Year 2025-26 on schedule.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Quality of Life, Safety & Infrastructure
FISCAL IMPACT
Approval of the recommended actions will result in an expenditure of $248,842 from the Street Lighting Fund in Account Nos. 23-4-5511 ($73,788), 23-4-5512 ($8,634), 23-4- 5513 ($77,451), 23-4-5515 ($5,759), 23-4-5516 ($5,759) and 23-4-5517 ($77,451) as previously approved in the Fiscal Year 2024-2025 and to be programmed in the Fiscal Year 2025-2026 thru Fiscal Year 2027-2028 annual operating budgets. There is sufficient fund balance for the recommended actions.
ATTACHMENTS
Attachment A: Professional Services Agreement with NBS Government Finance Group
8 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "A" attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Forty-Eight Thousand Eight Hundred Forty- Two Dollars and No Cents ($248,842.00) without written approval of the City. Extra Work may be authorized, as described below, and if authorized, said Extra Work will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within thirty (30) days of receiving such statement, review the statement and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Wor k without written authorization from the City Manager.
3.3.5 Prevailing Wages. Pursuant to Downey Municipal Code Section 2935, the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects, shall apply to the Project.
Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the Project site. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. If applicable, Consultant shall be registered at all times with the Department of Industrial Relations under the Public Works Contractor Registration Program for Labor Compliance.
3.4 Accounting Records.