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Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE APRIL 4, 2023
PROFESSIONAL SERVICES AGREEMENT WITH HR GREEN PACIFIC FOR
CIVIL ENGINEERING AND LANDSCAPE ARCHITECTURE DESIGN SERVICES
FOR THE OLD TOWN PLACENTIA STREETSCAPE IMPROVEMENT PROJECT, PROJECT NO. 9202
FISCAL
IMPACT: EXPENSE: $608,594 PROFESSIONAL SERVICES AGREEMENT BUDGET: $650,000 FY 2022-23 CAPITAL IMPROVEMENT PROGRAM BUDGET (109202-6770 & 799202-6770)
SUMMARY:
The proposed professional services agreement with HR Green Pacific (HRGreen) shall provide civil engineering and landscape architecture design services for 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.
The City Council awarded a design contract to a different firm on December 6, 2022. However, before the final design work could begin the consultant began to submit change order demands for work that they had claimed was not made part of the original proposal or agreement. Based on these actions, Staff determined that it would be more appropriate to begin the process over with a new consultant team. Based on the proposal review committee's evaluation and the references provided by HRGreen, Staff is recommending that the City Council award HRGreen a professional services agreement for this project. The final engineering design process is anticipated to be completed in approximately 9-12 months.
RECOMMENDATION:
It is recommended that City Council take the following actions:
1. Award a Professional Services Agreement to HR Green Pacific for a not -to -exceed amount of $608,594 to provide civil engineering and landscape architecture design services for the Old Town Placentia Streetscape Improvement Project, Project No. 9202; and
1.f.
April 4, 2023
City Council Agenda
April 4, 2023
2. Authorize the City Administrator to approve any change orders up to 10% of the contract not -to -exceed amount, or $60,860; and
3. 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 in 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 consisting of the Deputy City Administrator, Director of Development Services, and City Engineer reviewed the proposals.
City Council Agenda
April 4, 2023
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. On December 6, 2022, the City Council awarded an agreement to a different consultant team for this project. However, before any design work actually started the consultant team began to submit change order demands for items of work they claimed were not included in the contract scope of work. Given the complexity and importance of this project, Staff determined that it would be in the City's best interests to proceed with this project with a different team and cancelled the contract.
HR Green Pacific's initial total number of hours in its proposal was approximately half of what was proposed by the other three consults teams; however, HRGreen updated their proposal and fee based on further scope clarification provided by city Staff.
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 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 9-12 months.
The City has previously worked with HRGreen on multiple projects with favorable outcomes.
Accordingly, Staff recommends the City Council award this proposed Professional Services Agreement to HRGreen.
FISCAL IMPACT:
The proposed contract not -to -exceed amount to provide design services for this project totals $608,594. A total of $650,000 has been budgeted in the FY 2022-23 Capital Improvement Program Budget for these services. Accordingly, sufficient funds exist for the recommended actions.
Prepared by: Reviewed and approved:
Masa See
City E gineer
y
Jennifer Lampman
Director of Finance
City Council Agenda
April 4, 2023
Reviewe d e proved: Reviewed a71---ppro
Luis Estevez Damien R. Arrura
Deputy City Administrator City Administrator
Attachment:
Professional Services Agreement with HR Green Pacific