Administrative
Report
H.8., File # 24-0071 Meeting Date: 2/20/2024
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
APPROVE AN AGREEMENT FOR CONSULTING SERVICES BETWEEN THE CITY OF REDONDO BEACH AND FRANCISCO AND ASSOCIATES, INC. TO CONDUCT AND SUBMIT THE CITY’S
ANNUAL ASSESSMENTS FOR THE STREET LANDSCAPING AND LIGHTING ASSESSMENT
DISTRICT, WASTEWATER FUND, AND SOLID WASTE FUND TO THE LOS ANGELES COUNTY AUDITOR-CONTROLLER’S OFFICE FOR A TOTAL FIVE-YEAR AMOUNT NOT TO EXCEED $182,301 AND THE TERM FEBRUARY 20, 2024 TO FEBRUARY 19, 2029
EXECUTIVE SUMMARY
Approval of an agreement with Francisco and Associates, Inc. (Francisco and Associates) would allow the consultant to conduct and submit tax assessments to the Los Angeles County AuditorController’s Office (Auditor-Controller) on behalf of the City associated with the annual activities of the Street Landscaping and Lighting Assessment District (SLLAD), Wastewater Fund, and the Solid Waste Fund. The City conducted an RFP to procure the recommended services. The City received five proposals. Francisco and Associates was determined to offer the best combination of price, experience, and expertise.
Each year the City must submit the tax assessments for the above District and Enterprise Funds to the Auditor-Controller’s Office by the August deadline. The total estimated revenue collected for the District/Fund services is currently $12,393,000. The parcel information and associated fees for each District/Fund are housed in a Microsoft Access database that was created by a former City employee over 20 years ago. The aged database is extremely complex and is no longer widely used or supported. Moving this administrative function to a more modern and sustainable system will provide greater security, efficiency, and resiliency. Additionally, outsourcing the function to Francisco and Associates will help ensure timely submittal and collection of the associated fees and allow staff currently associated with the activity to focus on the delivery of capital projects.
BACKGROUND
The SLLAD, Wastewater Fund, and Solid Waste Fund, were established at different points in time to cover costs and services associated with their respective areas. Each tax assessment has its own process that must be followed in order for the Auditor-Controller to collect the fees on behalf of the City.
SLLAD (FY 2023-24 estimated revenue $1,508,822)
The SLLAD has a three-step process that begins in April and ends in June with a public hearing approving the levying of the assessment. The SLLAD was formed in 1983 under the requirements of
H.8., File # 24-0071 Meeting Date: 2/20/2024
approving the levying of the assessment. The SLLAD was formed in 1983 under the requirements of the 1972 Landscaping and Lighting Act. The SLLAD operates and maintains the following public improvements: 5,127 Street Lights; 101 Signals; and 21.85 acres of median and parkway landscaping. Whether or not there is a proposed change to the annual fee, the Act requires that a public hearing be held before implementing each year’s District assessment. This includes the City Council approving an annual Engineer’s Report and adopting a resolution declaring the intention to order the annual FY assessment for consideration of final approval via a public hearing.
Wastewater Fund (FY 2023-24 estimated revenue $5,242,704) The Wastewater Fund was established by ordinance in 1995 to pay for maintenance and operations of the sewer system, including capital improvements, system cleaning, minor repairs, as well as staff salaries and equipment, overhead, and other recurring and non-recurring costs of the wastewater Fund. Fees vary depending on property type (e.g. residential and non-residential) and the property categories are based on the land use classes defined for each parcel in the City by the AuditorController’s Office. Residential properties pay a flat monthly fee, while non-residential properties are assessed based on their water usage. The Engineering Division maintains and conducts an annual survey to update the wastewater sewer user fee database to incorporate changes such as category of usage, increase or decrease in number of units for residential dwellings, and/or an increase or decrease in annual water usage for all nonresidential users. Wastewater fees are set by ordinance and can be adjusted by resolution or ordinance at the City Council’s discretion, with the last adjustment taking place in 2014.
Solid Waste Fund (FY 2023-24 estimated revenue $5,641,625) The Solid Waste Fund was established in 1991 by ordinance to pay for the cost of salary, fringe benefits, equipment, services, overhead, and other recurring and nonrecurring costs of the solid waste program incurred in the collection of refuse, recycling, and hazardous material, and administration of the program. The fees associated with Solid Waste are determined and dictated by the City’s franchise agreement, currently executed with Athens Services. On an annual basis the City Council must approve the subsequent year’s charges for service during a public hearing in June of each year. As it relates to the Auditor-Controller’s Office, only single-family residents, currently approximately 16,000 units, are charged through the tax assessment. The multi-family and commercial customers are charged directly by Athens Services.
If approved, Francisco and Associates will: 1) extract and convert annual assessment district data from Microsoft Access to an alternate cloud-based database management system; 2) apportion the special assessment of each parcel within each particular Benefit Zone (fund) consistent with the method of apportionment established for each Benefit Zone and for the overall District; 3) prepare the annual update documents including, but not limited to, District Engineer’s Reports (to be reviewed and signed by the City Engineer), staff reports and resolutions, notices, boundary maps, improvement diagrams; 4) attend public hearings and presentations as needed; 5) coordinate with City staff to obtain all necessary information needed to provide the services requested, such as the assessor’s files, copies of secured rolls, boundary maps, and budget information; and 6) ensure that the parcel database remains as current as possible by updating parcel information within the zones to ensure that parcels within the database are coded and assessed properly based on their respective County Land Use and Assessment methodology.
The total not-to-exceed amount for the proposed five-year term is $182,301, with an option for the Mayor and Council to approve three additional one-year extensions. Francisco and Associates will
H.8., File # 24-0071 Meeting Date: 2/20/2024
Mayor and Council to approve three additional one-year extensions. Francisco and Associates will work closely with staff to ensure proper filing of the assessments throughout the life of the Agreement.
COORDINATION
The City Attorney’s Office approved the amendment as to form.
FISCAL IMPACT
The first-year cost of the agreement is $55,565. The average annual cost thereafter is roughly $27,145. The total five-year not to exceed cost of the agreement, including a 10% contingency, is $182,301. Funding for the Agreement is available in the Public Works Department operating budget through the following allocations.
Funding: Expenditures:
SLLAD $ 23,876 Francisco and Associates Total $ 182,301 Wastewater Fund $ 76,566
Solid Waste Fund $ 81,859
Total $182,301 Total $ 182,301
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Francisco and Associates, Inc.