DATE: JANUARY 11, 2022
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
THRU: HILDA GARCIA, PW ADMIN SUPERVISOR
TITLE: ENGINEERING SERVICES FOR ASSESSMENT DISTRICTS
RECOMMENDED MOTION:
A motion to approve a resolution authorizing the City Manager to execute a professional service agreement with Harris & Associates, Inc. to provide engineering services for assessment districts and approve an appropriation of $4,150 in the Airport Business Park Maintenance District Fund Other Professional Services account (2104.50.5562-63.5900).
RECOMMENDATION:
It is recommended that City Council approve a resolution 1) authorizing the City Manager to execute a professional service agreement with Harris & Associates, Inc. to provide engineering services for assessment districts throughout the City, including: a one-time audit of existing data, annual administration services for existing assessment districts, and on-call services related to formations and annexations; and 2) approving an appropriation of $4,150 in the Airport Business Park Maintenance District Fund Other Professional Services account (2104.50.5562-63.5900). The total not to exceed compensation amount of the agreement is $116,800 for a term of three years, with an option to extend the term for two successive periods of one year each.
EXECUTIVE SUMMARY:
There are six landscape maintenance assessment districts (“District”) within the City of Salinas that generate funds for installing, maintaining and servicing public lighting, landscaping, and improvements in its neighborhood, via an assessment to property owners within its boundaries. Prior to levy of assessments, an Engineer’s Levy Report is prepared annually for review and approval. This year staff identified the need for an extensive one-time audit of each district, including its boundaries and Right of Way (“ROW”) facilities and the potential need for support services related to future district annexations and formations. In October 2021 a Request for Qualifications for on-call engineering services for assessment district was published. In November 2021, two firms submitted statements of qualifications for evaluation. An evaluation committee identified the most qualified firm as Harris & Associates. The funds to cover the cost of the Districts’ engineering services are available, except for the Airport Business Park Maintenance District will require a transfer from its fund balance.
BACKGROUND:
There are six landscape maintenance assessment districts within the City of Salinas that were created under the Landscaping and Lighting Act of 1972 (the “Act”), and adopted locally in Article II, Chapter 21C of the Salinas Municipal Code. The Act allows property owners to assess themselves within a specified area, or “District” to generate funds for installing, maintaining, and servicing public lighting, landscaping, and improvements in their neighborhood. The Act requires that prior to levy of assessments, an Engineer’s Annual Levy Report (“Engineer’s Reports”) be prepared for public review and Council approval. In past years, consultants have been hired by staff to compile and prepare the Engineer’s Reports required for Assessment Districts and provide related support services.
This year, staff identified the need for an extensive one-time audit of each District including boundaries and ROW facilities and potential need for support services related to District annexations and formations. Therefore, due to the additional duties being sought, staff published a Request for Qualifications (RFQ) seeking services from professional consultants.
On October 11, 2021 an RFQ for on-call assessment district engineering services was published via the City’s online bidding portal. Services sought included: Providing on-call comprehensive engineering services, preparation of annual Engineer’s Reports and the ability to perform an extensive audit of each District’s boundaries and ROW facilities. On November 5, 2021, two firms submitted Statements of Qualifications for evaluation.
An evaluation committee comprised of three City staff members, conducted a thorough evaluation and scoring of the SOQ’s based on the criteria set forth in the RFQ. Proposals’ prices were then evaluated using the Ratio Method and a final score assigned to each respondent per facility group. With the Ratio Method, the proposal with the lowest cost receives the maximum points allowed. All other proposals receive a percentage of the points available based on their cost relationship to the lowest. This method is one of three methods suggested by the State Procurement Bureau for scoring the cost portion of an RFP response. For a summary of evaluations, refer to Exhibit A.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This item relates to the City’s Strategic Goal of improving Operational Efficiencies. An accurate assessment of the funds needed to properly maintain a District will ensure the proper amount of funds are being collected for the District to operate efficiently. The Strategic Plan can be viewed here [link].
DEPARTMENTAL COORDINATION:
The City’s Maintenance Division oversees the maintenance contracts to ensure adequate services are being provided to the District residents. The selected firm will work with Engineering Administration to prepare the annual reports, which will establish the District’s operating budget. During the budget preparation process Engineering and Maintenance Divisions work collaboratively to ensure the District maintains an adequate operating budget.
FISCAL AND SUSTAINABILITY IMPACT:
The cost associated with the preparation of the annual Engineer’s Reports and the one-time audit will be borne by the respective Assessment Districts. Currently, there is sufficient funds in all but the Airport Business Park Maintenance District’s operating budget to cover the cost of preparing the annual Engineer’s Report and conducting the one-time audit.
Costs associated with services related to formations, annexations and additional tasks will be borne by the requesting department.
Below is a table summarizing the proposed cost:
Airport Business Park Maintenance District
Harden Ranch Maintenance District
Mira Monte Maintenance District
Monte Bella Maintenance District
North East Area Maintenance District
Vista Nueva Maintenance District
Total
2104.50.
5562
2106.50.
5564
2108.50.
5566
2109.50.
5567
2105.50.
5563
2107.50.
5565
Annual Administration Services
$3,950
$4,450
$4,450
$7,450
$5,450
$3,950
$29,700
One-Time Audit Service
$1,500
$3,000
$2,000
$2,500
$4,500
$1,500
$15,000
Total Fixed Cost for FY 21/22
$5,450
$7,450
$6,450
$9,950
$9,950
$5,450
$44,700
Available Budget
$1,300
$7,450
$6,450
$9,950
$9,950
$5,450
Shortfall
<$4,150>
-0-
-0-
-0-
-0-
-0-
This agreement will require the transfer of $4,150 of Airport Business Park Maintenance District Fund Balance to the District’s operating budget (2104.50.5562-63.5900) to fund the engineering services planned through the end of Fiscal Year 21/22. Sufficient fund balance exists in the Airport Business Park Maintenance District Fund to accommodate the transfer.
ATTACHMENTS:
Resolution
Attachment 1: Evaluation Summary
Attachment 2: Agreement for Professional Services
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