HomeMy WebLinkAbout08 - Assessment District 99CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 8
February 12, 2008
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Alfred Castanon
949 - 644 -3314 or acastanon @city.newport- beach.ca.us
SUBJECT: ASSESSMENT DISTRICT NO. 99 — APPROVAL OF AMENDMENT NO.
2 TO PROFESSIONAL SERVICES AGREEMENT WITH HARRIS &
ASSOCIATES
RECOMMENDATIONS:
1. Approve Amendment No. 2 to the Professional Services Agreement with Harris &
Associates, of Irvine, California, for additional assessment engineering services
for Revised Underground Utility Assessment District No. 99 for a not to exceed
price of $28,450 and authorize the Mayor and City Clerk to execute the
Amendment.
2. Approve remittance payment of $33,100 to AT &T for redesign fees.
3. Approve a Budget Amendment transferring $75,000 from the Unappropriated
General Fund Reserve Account to Assessment District No. 99, Account No.
74099 -9812.
DISCUSSION:
On January 14, 2003, the City entered into a Professional Services Agreement with
Harris & Associates for assessment engineering and district coordination services for
Underground Utility Assessment District No. 99, for a not to exceed amount of $55,000.
The engineering services provided by Harris & Associates included identifying,
analyzing, and determining the correct apportionment of costs in addition to preparing
the Assessment Engineer's Report.
On May 8, 2007, Amendment No. 1 to the Agreement executed a not to exceed amount
of $10,000 to reflect additional services not included in the Agreement and to extend
the term of the Agreement to December 31, 2008.
On June 26, 2007, the vote for the proposed Assessment District resulted in a majority
protest with 61% of the ballots voting no, and 39% of the ballots voting yes. Most
Assessment District No. 99 — Approval of Amendment No. 2 to Professional services Agreement with Harris & Associates
February 12. 2008
Page 2
property owners north of Balboa Boulevard and west of 20th Street voted against the
formation of the proposed district.
Since the June 2007 vote, the District proponents have requested that we reauthorize
their original District request on the Oceanside of Balboa Boulevard between 14th and
19th Streets. After extensive discussion and review with the community, the attached
revised District Boundary map was developed. Staff and the proponents are very
confident that the revised district will be .successful and request the City to move ahead.
In addition to the Districts boundary change, the Federal Income Tax Component of
Contribution Tax (ITCC) has been eliminated in the interest of a more favorable vote.
The ITCC is a tax assessed whenever private party contributions in aide of construction
(CIAC) are made. To date, Underground Utility Districts have not been assessed this
tax due to the fact underground utility.districts are viewed as providing public benefit by
increasing community aesthetics and public safety.
Under this Amendment No. 2, Harris & Associates will provide Assessment Engineering
Services for Underground Utilities Assessment District (UUAD) No. 99, which is being
changed to remove parcels north of Balboa Boulevard except 19th Street and parcels
south of Balboa Boulevard between 20th Street and McFadden Plaza (see attached
Exhibit "A" Boundary Map of Proposed District No. 99). Assessment Engineering
Services for the formation of UUAD No. 99 will include updating the database for the
new boundaries and the current Assessor's Parcel Roll, updating the Boundary Map,
Assessment Diagram, and the Engineer's Report, and full notice and balloting services
for the revived. proposed district. Harris & Associates will also conduct property owner
information meetings and all services after formation of the District as outlined in the
current Scope of Services.
Southern California Edison (SCE) and AT &T are responsible for the design of their
utilities. In order to initiate the redesign of these facilities, the City must remit $33,100
to AT &T. SCE is not requesting additional design funds. The utility and engineering
costs will be reimbursed to the City by the district if it is formed at the final Public
Hearing. However, the funds will not be recovered if the district is not formed. The City
Council has previously authorized the advancement of funds for other districts.
Environmental Review:
This project qualifies for a Class 2 California Environmental Quality Act (CEQA)
exemption under Section 15302, item "d" of the Implementing Guidelines as follows:
"Conversion of overhead electric utility distribution system facilities to underground
including connection to existing overhead electric utility distribution lines where the
surface is restored to the condition existing prior to the undergrounding."
Public Notice: Not applicable.
Assessment District No. 99 — Approval of Amendment No. 2 to Professional Services Agreement with Harris & Associates
February 12, 2008
Page 3
Funding Availability:
Aside from the Assessment Engineering and AT &T cost, staff anticipates minor
expenses in preparation of the revised District. For example, AT &T has identified the
need for an easement off 20th Street and the City may need to employ the services of a
land surveyor and /or easement expert. Staff anticipates approximately $10,000 in
incidental costs.
Upon approval of the budget amendment, funds will be available in the following
account to cover the not -to- exceed costs authorized by Amendment No. 2 to the
Professional Services Agreement with Harris & Associates, AT &T re- design costs and
incidentals.
Account Description
Assessment District No. 99
Prepared by:
M
Alfr d Castanon
Associate Civil Engineer
Account Number
74099 -9812
Submitted by:
Amount
$75,000
In G. Badum
Works Director
Attachments: Exhibit "A" Revised Boundary Map of Proposed District No. 99
Amendment No. 2
Budget Amendment
PROPOSED BOUNDARIES OF
ASSESSMENT DISTRICT, No. 00
EXHIBIT "A"
(BALBOA BOULEVARD ALLEY)
CITY OF NEWPORT BEACH, COUNTY OF ORANGE
STATE OF CALIFORNIA
NORTH OF BALBOA ZONE
SHEET 4
SDUTH DF BALBDAZONE
SHEET 3
SHEET 5
ASSESSOR'S PMCEL UNE
cng
....... LOT LINE
. ....... .... .
ASSESSMENT DISTRICT
J I
BOUNDARY
W Wywoll 11
.-.-
......... ....... . ..
TRACT UNE
=
......
CENTERLINE
I LOT NUMBER
A
N.A.P. NOT A PART W /.§$EUKN. CtSTRICT
SOUTH OF BALBOA ZONE
H rris & Associates
I
c TgUCTI R ARCiRS
CPR WINITS
SHEET 6
3- QE=* PAIX, &.ITE IK RIME- IA 11111-1]
ass -mT
NOT TO SCALE
s.m
AMENDMENT NO. 2
TO
PROFESSIONAL SERVICES AGREEMENT
WITH HARRIS AND ASSOCIATES FOR
PROPOSED ASSESSMENT DISTRICT NO. 99
THIS AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT, entered
into this day of , 2008, by and between the CITY OF
NEWPORT BEACH, a municipal corporation, (hereinafter referred to as "City ") and
HARRIS AND ASSOCIATES, a California corporation whose address is 34 Executive
Park, Suite 150, Irvine, California, 92614 -4705 ( "Consultant "), and is made with
reference to the following:
RECITALS
A. On January 14, 2003, CITY and CONSULTANT entered into a
Professional Services Agreement, hereinafter referred to as "Agreement',
for Assessment Engineering services for Proposed Assessment District
No. 99, hereinafter referred to as "Project'. This Agreement was
scheduled to expire on October 31, 2005.
B. On May 8"', 2007, City and Consultant entered into Amendment No. 1 of
the Agreement to reflect services not included in the Agreement and to
extend the term of the Agreement to December 31, 2008.
C. City desires to enter into this Amendment No. 2 to reflect additional
services not included in the previous Amendment and to extend the term
of the Agreement to June 30, 2010.
D. City desires to compensate Consultant for additional professional services
needed for Project.
E. City and Consultant mutually desire to amend agreement, hereinafter
referred to as "Amendment No. 2 ", as provided here below.
NOW, THEREFORE, the parties hereto agree as follows:
1. Consultant shall be compensated for additional engineering services for
the Revised Underground Utility Assessment District No. 99 performed
pursuant to this Amendment No. 2 according to the letter dated January
18, 2008, attached hereto.
2. Total additional compensation to Consultant for services performed
pursuant to this Amendment No. 2 for all work performed in accordance
with this Amendment, including all reimbursable items and subconsultant
fees, shall not exceed Twenty Eight Thousand Four Hundred and Fifty
Dollars ($28,450.00).
3. The term of the Agreement shall be extended to June 30, 2010.
4. Except as expressly modified herein, all other provisions, terms, and
covenants set forth in Agreement shall remain unchanged and shall be in
full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 on
the date first above written.
APPROVED AS TO FORM:
By:
Aaron . Harp,
Assistant City Attorney
for the City of Newport Beach
ATTEST:
By:
LaVonne Harkless,
City Clerk
CITY OF NEWPORT BEACH
A Municipal Corporation
Mayor
for the City of Newport Beach
HARRIS AND ASSOCIATES:
am
Title: Senior Project Manager
Print Name: Joan E. Cox
0
(Corporate Officer)
Title: Sr. Vice President
Print Name: Jeffrey M. Cooper
Attachment: Letter — Request for Additional Authorization Dated January 18, 2008
F: \Users \PBW \Shared\Agreements \FY 07 -08 \HARRIS & ASSOC- Amendment 2.doc
January 18, 2008
Mr. Mike Sinacori
Assistant City Engineer
City of Newport Beach
3300 Newport Avenue
Newport Beach, CA 92658
Re: Fee Proposal for Additional Assessment Engineering Services for
Revised Underground Utility Assessment District No. 99
Dear Mike,
The following is our additional authorization request for Revised Underground Utility Assessment District
(QUAD) No. 99, which is being changed to remove all parcels north of Balboa Blvd except 19`6 Street and most
parcels south of Balboa Blvd and east of 20ih Street. Assessment Engineering Services for the formation of
WAD No. 99 will include updating the database for the new boundaries and the current Assessor's Parcel Roll,
updating the Boundary Map, Assessment Diagram, and the Engineer's Report, and full notice and balloting
services. Additionally, property owner information meetings will need to be conducted and all services after
formation as outlined in our current Scope of Services.
Phase 1— Petition Confirmation
$0
Phase 2 — Engineer's Report and Formation Proceedings ........ ............................... $24,000
.......................................................................... ............................... plus envelopes and postage*
Phase 3 — Assessment Confirmation and Bond Sale ........................... .........................$5,000
.......................................................................... ............................... plus envelopes and postage*
Phase 4 — Property Owner Coordination after Formation (Optional) .................... $24,000
Total Requirement for Scope of Services = $53,000
Current Remaining UUAD No. 99 Budget = $24,550
otal Additional Authorization Reg aired = $28,45
Indirect expenses (such as mileage, duplicating and postage) are included in the fees
shown above except as noted.
* Official city # 10 window envelopes and the cost for postage for the ballot package are to be
provided to Harris one-week prior to the mailing date. Harris & Associates will provide a cost/value .
analysis for out - sourcing the noticing to a mail -house for production, folding, stuffing and mailing.
Invoices will be submitted monthly for services provided in the previous month and shall be paid within 30 days
of receipt in accordance with our existing contract and in accordance with Harris' current schedule of hourly rates.
Any mail -house services for notice/ballot production (for bar- coding, folding, and stuffing the notices and ballots
into envelopes for mailing) will be invoiced at cost plus 15 %.
Our current Schedule of Hourly Rates is shown below.
Q TroposalANewport Beach\ad99WD99 take 2 add[ £ee.doc
Mr. Mike Sinacori
City of Newport Beach
January 18, 2008
Page 2
HARRIS & ASSOCIATES
2008 SCHEDULE OF HOURLY RATES
Project Manager . ............................... $230 / hour
Deputy Project Manager .................... $210 / hour
Senior Project Analyst ....................... $100 / hour
Project Analyst ..... ............................... $75 / hour
Sr. Drafting Technician ..................... $110 / hour
Clerical Staff ........ ............................... $65 / hour
* These hourly rates may be updated on an annual (calendar year) basis.
Hourly rates include most direct costs such as vehicle usage and mileage,
equipment usage (including computers), and printing and copying except
as noted above. Mail -house services will be billed at cost plus 15 %.
Attached is a Fee Schedule Amendment #2 reflecting the above.
Our team is excited about the opportunity to continue working with the City of Newport Beach on this
challenging project. We would welcome the opportunity to meet with you to discuss any aspect of our technical
or fee proposal. If you have any questions regarding this proposal, please call me at 949.655.3900 ext. 337.
Sincerely,
Harris & Associates
Joan E. Cox, PE
Senior Project Manager
Financial Engineering
Attachment
Q:TmposalsNewport Beach\ad99WD99 take 2 addl fee.doc Harris & Associates.
Assessment Engineering Services Amendment #2— EXHIBIT "B°
Proposed Assessment District No. 99 Fee Schedule
FEE SCHEDULE — AMENDMENT #2
The following fees are being amended based on the additional work required to be performed due to
revising the boundaries of Assessment District No. 99 after receiving a majority protest with the
original boundaries and going through the full formation proceedings with the parcels in the updated
boundaries.
Phase 1— Petition Sufficiency
Tasks I through 5 .....
Phase 2 — Engineer's Report and Formation Proceedings
Tasks6 through 19 .................................. ...............................
Phase 3 - Assessment Confirmation and Bond Sale
...... ............................... no change
.... add additional $24,450
Tasks 20 through 24 ........................................................................... ............................... no change
Phase 4 - Property Owner Coordination after Formation (Optional)
Tasks 25 through 33 ............................. ............................... ............................add additional $4,000
Total Additional Fee = $28.450
These time & material estimates and the time & material rates shown below include most indirect costs
such as vehicle usage and mileage, equipment usage (including computers), and printing and copying, and
are based on the assumption that the Assessment District will be formed prior to December of 2008.
Harris' current schedule of hourly rates are provided below.
SCHEDULE OF HOURLY RATES
Project Manager .................
Deputy Project Manager....
Senior Project Engineer.....
Project Engineer ................
Junior Project Engineer .....
Senior Project Analyst.......
Senior Drafting Technician
Project Analyst ..................
Clerical Staff............
......... $230 / hour
......... $210 / hour
$140 - 180 /hour
......... $130 / hour
$95 - $110 / hour
$95 - $100 / hour
$90 - $110 / hour
...$75 -$85 / hour
$65 / hour
These hourly rates may be updated on an annual (calendar year) basis.
Hourly rates include most direct costs such as vehicle usage and mileage,
equipment usage (including computers), and printing and copying except
as noted above. Mail -house services will be billed at cost plus 15 %.
Q1proposalsWewpon Beach\ad99WD99 take 2 add[ fee doc Page B71 Modified January 18, 2008
City of Newport Beach NO. BA. 08BA -045
BUDGET AMENDMENT
2007 -08 AMOUNT:1 $75,000.00
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
X Increase Expenditure Appropriations ADD �X Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
from additional estimated revenues
PX from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase expenditure appropriations for engineering costs associated with Assessment District No. 99. The General
Fund will advance these funds and will be reimbursed by district should it be formed.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account
4099 3605
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Description
AD #99 - Fund Balance
Description
Description
Division
Number 74099 Assessment District No. 99
Account
Number 9812 AD Assessment Engineering
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:��_
G,Q Fi ancigl Approval: Adminis ive Services
Signed: /
Administrative Ap oval: City Manager
Signed:
Amount
Debit Credit
$75,000.00 "
$75,000.00
l
City Council Approval: City Clerk Date