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Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE DECEMBER 6, 2022
PROFESSIONAL SERVICES AGREEMENT WITH KABBARA ENGINEERING
FOR CIVIL ENGINEERING AND LANDSCAPE ARCHITECTURE DESIGN
SERVICES FOR THE OLD TOWN PLACENTIA STREETSCAPE IMPROVEMENT PROJECT, NO. 1205
EXPENSE: $628,418
BUDGET: $691,259
PROFESSIONAL SERVICES AGREEMENT
FY 2022-23 CAPITAL IMPROVEMENT PROGRAM
BUDGET
The proposed professional services agreement with Kabbara Engineering (Kabbara) shall provide civil engineering and landscape architecture services to prepare the final engineered construction plans and bid documents for the Old Town Placentia Streetscape Improvement Project. This project is the final implementation of the Old Town Streetscape Master Plan adopted by the City Council in 2017 and construction will be funded through a partnership with the County in the Placentia Enhanced Infrastructure Financing District. The City issued a request for proposals from qualified civil engineering firms to provide these services and four (4) proposals were received. A proposal review committee consisting of the Deputy City Administrator, Director of Development Services and City Engineer reviewed and scored the proposals. At the conclusion of the scoring process, it was determined that Kabbara was the top-ranked firm. Based on the review committee's evaluation and the references provided by Kabbara, Staff is recommending that the City Council award Kabbara a professional services agreement for this project. The final engineering design process is anticipated to be completed in approximately nine months.
RECOMMENDATION:
It is recommended that City Council take the following actions:
1. Award a Professional Services Agreement to Kabbara Engineering for a not -to -exceed amount of $628,418 to provide civil engineering and landscape architecture design services for the Old Town Placentia Streetscape Improvement Project, No. 1205; and
2. Authorize the City Administrator to approve any change orders up to 10% of the contract not -to -exceed amount, or $62,841; and
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3. Adopt Resolution No. R-2022-84, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2022-23 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures; and
4. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
There is no specific Strategic Plan Goal or Objective associated with this Council action, however it is related to Goal 3, Objective 3.4: Complete the Financing Structure for the Old Town Enhanced Infrastructure Financing District (EIFD). The City/County EIFD will pay for the construction costs associated with this project under a separate financing mechanism.
DISCUSSION:
In 2017, the City Council adopted the Old Town Placentia Streetscape Master Plan. The plan was created and adopted as part of the Old Town Placentia Revitalization Plan which also included newly adopted development standards and zoning for Old Town. A similar plan and rezoning effort was adopted by the City Council for the adjacent Transit Oriented/Packinghouse District (TOD).
While private developers are paying for newly constructed streetscape improvements in the TOD, a separate funding source for streetscape improvements in Old Town had yet to be secured until 2020 when the City and County of Orange entered a partnership to create an Enhanced Infrastructure Financing District (EIFD) within and around Old Town Placentia.
The EIFD allocates City and County property tax revenue to construct public infrastructure improvements within the EIFD/Old Town project area utilizing tax increment financing. This partnership was the first of its kind in the State. The EIFD sets aside a small portion of existing property tax revenue collected each year from properties located within the project area for use on improving or providing new public infrastructure within the same project area. EIFDs were created by the State Legislature to help spur private investment in neighborhoods where public investment in supporting infrastructure has occurred. Property tax rates within the project area remain unchanged and there was no increase in taxes paid by the property owners located within the EIFD. It is anticipated that lease revenue bonds will be issued to provide the needed capital to construct the planned streetscape improvements. City and County staff have been working to finalize the bond structure and financing limits which should be completed within the first quarter of 2023.
The City Council allocated funds in the Fiscal Year 2021-22 Capital Improvement Program Budget (CIP) to provide the engineering and landscape architecture design services needed to prepare shovel -ready construction plans and bid specifications for the improvements included in the adopted streetscape master plan. Accordingly, Staff prepared a Request for Proposals to solicit bids from civil engineering design teams to prepare the construction documents and specifications for this project. A total of four (4) proposals for this project were received. A Selection Committee
City Council Agenda
December 6, 2022
consisting of the Deputy City Administrator, Director of Development Services, and City Engineer reviewed the proposals. The following table outlines the combined final scores and rankings:
RANKING CONSULTANT TOTAL SCORE
1 Kabbara Engineering 280
I 2 BKF 255
3 IMEG 245 J
4 HR Green 211
Kabbara Engineering (Kabbara) was the highest ranked firm based upon their extensive experience in designing similar streetscape projects as well as their understanding of the City's work scope and vision for Old Town Placentia. Additionally, Kabbara's bid included Nuvis Landscape Architecture who originally designed the streetscape master plan for the City as a subconsultant to prepare all of the project landscape and irrigation plans.
Cost proposals were received from each firm and were opened and evaluated as part of the evaluation process. Consultant cost proposals are based upon hourly rates for each assigned project team member multiplied by the total number of allocated hours by task. Professional services agreements are awarded based on qualifications; however, cost is a consideration only to the extent that the proposed cost is reasonable for the services to be provided. The cost proposals noted in the table below reflect each consultant's cost to provide these design services:
Consultant Initial Cost Proposal
Kabbara $873,724
I IMEG $898,200
I BKF $817,013
HR Green $401,725
Once the Kabbara team was identified as the top-ranked firm, Staff worked with Kabbara to refine the proposed work scope and fee which was subsequently reduced to the proposed contract not - to -exceed amount of $628,418. It should be noted that the cost proposal submitted by HR Green was approximately half of what was proposed by the other three consultant teams; however, the total number of hours they were proposing to allocate to the project was approximately half of what the other three firms were proposing. Based on Staffs understanding of the full scope of work and the number of hours reasonably required to complete that scope, it was determined that the resource allocation offered by HR Green was too low and would have most likely resulted in future work scope and contract change orders. The major discrepancy in their proposal led the review committee to award fewer points to HR Green based upon the proposal scoring rubric.
Staff and adjacent property and business owners along the 100 block of Santa Fe Avenue are evaluating the potential for a permanent street closure on that block and converting the street into a new public plaza space. The proposed agreement includes a provision that engineering design work, other than survey and mapping, not begin on this portion of Santa Fe Avenue until a final decision on whether or not to close the 100 block of Santa Fe has been made by the City Council.
Should the City Council elect to close the street the proposed improvements will follow approved concept plans and should the City Council elect to keep the street open, the final improvements
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will follow the concept plans included within the adopted Old Town Streetscape Master Plan. The final engineering design process is anticipated to be completed in nine months.
A reference check of past Kabbara clients yielded favorable results as those references were pleased with the level of service and expertise provided by Kabbara. Accordingly, Staff recommends the City Council award this proposed Professional Services Agreement to Kabbara as the most qualified consultant team evaluated for this project.
FISCAL IMPACT:
The proposed contract not -to -exceed amount to provide design services for this project totals $628,418. A total of $350,000 was budgeted in the FY 2021-22 Capital Improvement Program Budget for these services but these funds were not previously carried forward. Resolution No. R- 2022-84 (Attachment 2) is recommended for approval to carryforward this FY 2021-22 ARPA funded capital improvement project and to appropriate additional funds from existing Measure U fund balance to support the cost of the project. This Resolution is presented for the City Council's consideration to amend the FY 2022-23 CIP Budget by allocating $341,259 in unallocated Measure U Funds and $350,000 in ARPA funding from FY 2021-22 to cover the cost to design the project as well as a design contingency amount of 10%. Accordingly, sufficient funds exist for the recommended actions.
Prepared by:
Masoud S
City Engine -r
Review a d a, • roved:
do/m
Luis Estevez
Reviewed and approved:
Jen ife Lampman
Director of Finance
Reviewed and approved:
Dam ea n R. Arrula
Deputy City Administrator City Administrator
Attachments:
1. Professional Services Agreement with Kabbara Engineering
2. Resolution No. 2022-84 — Budget Amendment Resolution