On March 2, 2004, the City Council approved the selection of Moore Iacofano Goltsman, Inc. ("MIG") as the City’s public information consultant for the Infrastructure Renewal and Maintenance Project (the "Project"). On March 18, 2004, MIG conducted a "kick-off" meeting with the Infrastructure Financing Team that includes Fieldman and Rolapp, the City’s Financial Advisor, Robin Harris, Deputy City Attorney Robin Harris, Joan Cox of Harris & Associates, the City’s assessment and fee rate engineer, the City Manager, the Director of Public Works, the Director Finance and Information Technology, the Accounting Manager and Senior Administrative Analyst. The meeting served to establish MIG’s role in the Project, including their scope of work and the implementation plan, including timelines and schedules for conducting stakeholder interviews and a baseline phone survey with residents.

The stakeholder interviews would be conducted by MIG with about 30-40 residents of the City to enable the development of meaningful questions that would be asked during a subsequent baseline phone survey. The phone survey would attempt to develop quantitative findings about the resident’s understanding about the condition of the City’s storm drain system, the City’s financial condition, as well a first impression about their willingness to pay for storm drain renewal and maintenance. During the meeting, MIG team members informed the Infrastructure Financing Team that proceeding with stakeholder interviews and a baseline phone survey without knowing the range of possible storm drain user fees would result in invalid survey results. As a result, the Infrastructure Financing Team is recommending that the City complete the proposed Rate Analysis prior to stakeholder interviews and the completion of a baseline survey. The stakeholder interviews and baseline phone survey would be conducted immediately after determination of the range of possible storm drain user fees.

The Scope of Work proposed by Harris & Associates is described in the "Proposal to Assist the City with the Establishment of Storm Drain User Fee" (the "Proposal"), dated March 25, 2004, attached to the proposed Professional Services Agreement. Staff recommends the City Council’s approval of "Phase 1 – Preliminary Analysis" only at this time.

Upon the completion of the Storm Drain Master Plan Update, expected during April 2004, Staff will prepare a Storm Drain Renewal and Maintenance Budget ("Storm Drain Model") under the direction of the City’s Financial Advisor, Fieldman & Rolapp. The Storm Drain Model will include the storm drain construction costs and maintenance of the citywide system. The Storm Drain Model will include assumptions regarding the possible issuance of debt financing vs. pay-as-you-go financing, the frequency of conducting storm drain construction projects, project management staff demands and the inclusion of maintenance costs. Harris & Associates will review the Storm Drain Model (referred to as a "budget" in Phase 1 – Task B 4. of their Proposal) and provide preliminary storm drain rate calculations based upon its recommendation. Subject to approval by the City Council, Harris & Associates expects to complete the Rate Analysis described in "Phase 1 – Preliminary Analysis" during Summer 2004.

The proposed Professional Services Agreement includes a provision for a "not to exceed" fee quotation of $25,000. Staff expects that the FY03-04 appropriation in the Public Works Administration program of the General fund will be sufficient to pay Harris & Associates pursuant to the scope of services. Therefore, a budget adjustment is not requested at this time.

Respectfully submitted,

Dean Allison

Director of Public Works

Dennis McLean

Director of Finance & Information Technology

Reviewed,

Les Evans

City Manager

Attachments:

Professional Services Agreement For Engineering Services

Proposal to Assist the City with the Establishment of the Storm Drain User Fee, March 25, 2004

FOR ENGINEERING SERVICES

THIS AGREEMENT is made and entered into this 7th day of April, by and between the City of Rancho Palos Verdes hereinafter referred to as "CITY", and Harris & Associates hereafter referred to as "CONSULTANT".

IN CONSIDERATION of the covenants hereinafter set forth, the parties hereto mutually agree as follows:

ARTICLE 1

SCOPE OF SERVICES

1.1 Project Description

1.2 Description of Services

CONSULTANT shall perform Services as described in "Phase I – Preliminary Analysis" detailed in the attached Harris & Associates "Proposal to Assist the City with the Establishment of the Storm Drain User Fee, dated March 25, 2004".

1.3 Schedule of Work

Upon receipt of written Notice to Proceed from the CITY, CONSULTANT shall perform the Schedule of Work as described in "Phase I – Preliminary Analysis" in the attached Harris & Associates "Proposal to Assist the City with the Establishment of the Storm Drain User Fee, dated March 25, 2004". CONSULTANT shall not be responsible for delay, nor shall CONSULTANT be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of CITY to furnish timely information or to approve or disapprove CONSULTANT'S work promptly, or delay or faulty performance by CITY, other contractors, or governmental agencies, or any other delays beyond CONSULTANT'S control or without CONSULTANT'S fault.

ARTICLE 2

COMPENSATION

2.1 Fee

1. CITY shall pay COSNSULTANT $15,000 upon the completion of "Task A" of "Phase I – Preliminary Analysis" and $10,000 upon the completion of "Task B" of "Phase I – Preliminary Analysis" as detailed in the attached Harris & Associates "Proposal to Assist the City with the Establishment of the Storm Drain User Fee, dated March 25, 2004"

(b) CITY may request additional specified work under this agreement. All such work must be authorized in writing by the Director of Public Works prior to commencement.

2.2 Payment Address

All payments due CONSULTANT shall be paid to:

Harris & Associates

34 Executive Park, Suite 150

2.3 Terms of Compensation

CITY agrees to pay all undisputed invoice amounts within thirty (30) days of receipt of the invoice. CITY agrees to use its best efforts to notify CONSULTANT of any disputed invoice amounts or claimed completion percentages within ten (10) days of the receipt of each invoice. However, CITY'S failure to timely notify CONSULTANT of a disputed amount of claimed completion percentage shall not be deemed a waiver of CITY'S right to challenge such amount or percentage.

Additionally, in the event CITY fails to pay any undisputed amounts due CONSULTANT within forty-five (45) days after invoices are received by CITY then CITY agrees that CONSULTANT shall have the right to consider said default a total breach of this Agreement and be terminated by CONSULTANT without liability to CONSULTANT upon ten (10) working days advance written notice.

2.4 Additional Services

CITY may request in writing that CONSULTANT perform additional services not covered by the specific Scope of Work set forth in this Agreement, and CONSULTANT shall perform such services and will be paid for such additional services in accordance with CONSULTANT'S Standard Schedule of Hourly Rates.

ARTICLE 3

INDEMNIFICATION AND INSURANCE

3.1 Indemnification

CONSULTANT will defend, indemnify and hold harmless CITY, its Boards and its officers, employees and agents (collectively "CITY"), against any claim, loss or liability that arises because of the sole or primary negligence or willful misconduct of CONSULTANT, its agents, officers, directors or employees, in performing any of the services under this Agreement.

3.2 General Liability

3.3 Professional Liability

3.4 Worker's Compensation

CONSULTANT agrees to maintain in force at all times during the performance of work under this Agreement worker's compensation insurance as required by the law. CONSULTANT shall require any subcontractor similarly to provide such compensation insurance for their respective employees.

3.5 Notice of Cancellation

(a) All insurance policies shall provide that the insurance coverage shall not be canceled by the insurance carrier without thirty-(30) day’s prior written notice to CITY. CONSULTANT agrees that it will not cancel or reduce said insurance coverage.

(b) CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect, CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONSULTANT'S expense, the premium thereon.

3.6 Certificate of Insurance

At all times during the term of this Agreement, CONSULTANT shall maintain on file with the CITY Clerk a certificate of insurance showing that the aforesaid policies are in effect in the required amounts. The commercial general liability and professional liability policy or policies shall contain endorsements naming the CITY, its officers, agents and employees as additional insured.

3.7 Primary Coverage

The insurance provided by CONSULTANT shall be primary to any coverage available to city. The insurance policies (other than workers' compensation and professional liability) shall include provisions for waiver of subrogation.

ARTICLE 4

TERMINATION

4.1 Termination of Agreement

(a) This Agreement may be terminated at any time, with or without cause, by either party upon sixty-(60) day’s prior written notice. Notice shall be deemed served upon deposit in the United States Mail of a certified or registered letter, postage prepaid, return receipt requested, addressed to the other party, or upon personal service of such notice to the other party, at the address set forth in Article 6.12.

(b) In the event of termination or cancellation of this Agreement by CONSULTANT or CITY, due to no fault or failure of performance by CONSULTANT, CONSULTANT shall be paid compensation for all services performed by CONSULTANT, in an amount to be determined as follows: for work done in accordance with all of the terms and provisions of this Agreement, CONSULTANT shall be paid an amount equal to the percentage of services performed prior to the effective date of termination or cancellation in accordance with the work items; provided, in no event shall the amount of money paid under the foregoing provisions of this paragraph exceed the amount which would have been paid to CONSULTANT for the full performance of the services described in Article 2.1.

ARTICLE 5

OWNERSHIP OF DOCUMENTS

5.1 Ownership of Documents and Work Product

All plans, specifications, reports and other design documents prepared by CONSULTANT pursuant to this Agreement are instruments of service, which shall be deemed the property of the CITY. CITY acknowledges and agrees that all plans, specifications, reports and other design documents prepared by CONSULTANT pursuant to this Agreement shall be used exclusively on this Project and shall not be used for any other work without the written consent of CONSULTANT. In the event CITY and CONSULTANT permit the reuse or other use of the plans, specifications, reports or other design documents, CITY shall require the party using them to indemnify and hold harmless CITY and CONSULTANT regarding such reuse or other use, and CITY shall require the party using them to eliminate any and all references to CONSULTANT from the plans, specifications, reports and other design documents. If a document is prepared by CONSULTANT on a computer, CONSULTANT shall prepare such document in a Microsoft® Word 2000 SR-2 or lower format; in addition, CONSULTANT shall provide CITY with said document both in a printed format and on a three and one-half inch (3 1/2") floppy diskette.

ARTICLE 6

GENERAL PROVISIONS

6.1 Representation

A CITY representative shall be designated by the City Manager and a CONSULTANT representative shall be designated by CONSULTANT as the primary contact person for each party regarding performance of this Agreement.

6.2 Fair Employment Practices/Equal Opportunity Acts

In the performance of this Agreement, CONSULTANT shall comply with all applicable provisions of the California Fair Employment Practices Act (California Government Code Sections 12940-48) and the applicable equal employment provisions of the Civil Rights Act of 1964 (42 U.S.C. 200e-217), and the Americans with Disabilities Act of 1992 (42 U.S.C. § 11200, et seq.).

6.3 Personnel

CONSULTANT represents that it has, or shall secure at its own expense, all personnel required to perform CONSULTANT'S services under this Agreement. Any person who performs engineering services pursuant to this Agreement shall be licensed as a Civil Engineer by the State of California and in good standing. CONSULTANT shall make reasonable efforts to maintain the continuity of CONSULTANT'S staff who are assigned to perform the services hereunder and shall obtain the approval of the Director of Public Works of all proposed staff members who will perform such services. CONSULTANT may associate with or employ associates or sub-consultants in the performance of its services under this Agreement, but at all times shall be responsible for their services.

6.4 Conflicts of Interest

CONSULTANT agrees not to accept any employment or representation during the term of this Agreement or within twelve (12) months after completion of the work under this Agreement which is or may likely make CONSULTANT "financially interested" (as provided in California Government Code Section 1090 and 87100) in any decisions made by CITY on any matter in connection with which CONSULTANT has been retained pursuant to this Agreement.

6.5 Legal Action

(a) Should either party to this Agreement bring legal action against the other, the case shall be brought in a court of competent jurisdiction in Los Angeles County, California, and the party prevailing in such action shall be entitled to recover its costs of litigation, including reasonable attorney fees which shall be fixed by the judge hearing the case and such fee shall be included in the judgment.

(b) Should any legal action about the Project between CITY and a party other than CONSULTANT require the testimony of CONSULTANT when there is no allegation that CONSULTANT was negligent, CITY shall compensate CONSULTANT for its testimony and preparation to testify at the hourly rates in effect at the time of such testimony.

6.6 Assignment

This Agreement shall not be assignable by either party without the prior written consent of the other party.

Notwithstanding the above, CONSULTANT may use the services of persons and entities not in CONSULTANT'S direct employ, when it is appropriate and customary to do so. Such persons and entities include, but are not necessarily limited to, surveyors, specialized consultants, and testing laboratories. CONSULTANT'S use of subcontractors for additional services shall not be unreasonably restricted by the CITY provided CONSULTANT notifies the CITY in advance.

6.7 Independent Contractor

CONSULTANT is and shall at all times remain, as to the CITY, a wholly independent CONTRACTOR. Neither the CITY nor any of its agents shall have control over the conduct of CONSULTANT or any of the CONSULTANT'S employees, except as herein set forth. CONSULTANT expressly warrants not to, at any time or in any manner, represent that it, or any of its agents, servants or employees, are in any manner agents, servants or employees of CITY, it being distinctly understood that CONSULTANT is, and shall at all times remain to CITY, a wholly independent contractor and CONSULTANT'S obligations to CITY are solely such as are prescribed by this Agreement.

6.8 Hazardous Materials

Unless otherwise provided in this Agreement, CONSULTANT and its sub-consultants and/or contractors shall have no responsibility for the discovery, presence, handling, removal or disposal of, or exposure of persons to hazardous materials in any form at the site of the Project.

6.9 Titles

The titles used in this Agreement are for general reference only and are not part of the Agreement.

6.10 Extent of Agreement

This Agreement represents the entire and integrated Agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified or amended only by a subsequent written agreement signed by both parties.

6.11 Notices

All notices pertaining to this Agreement shall be in writing and addressed as follows:

If to CONSULTANT:

Ms. Joan Cox

Harris & Associates

34 Executive Park, Suite 150

Irvine, CA 92614

If to CITY:

Dean E. Allison, Director of Public Works

City of Rancho Palos Verdes

30940 Hawthorne Blvd.

Rancho Palos Verdes, CA 90275

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.

HARRIS & ASSOCIATES

By: _____________________________

_____________________________

(Title)

By: _____________________________

_____________________________

(Title)

CITY OF RANCHO PALOS VERDES

By: _____________________________

Mayor

Attest:

__________________________

City Clerk

March 25, 2004

Mr. Dean E. Allison, PE

Director of Public Works

City of Rancho Palos Verdes

30940 Hawthorne Boulevard

Rancho Palos Verdes, CA 90275

Dear Dean,

As we discussed, the following is our proposal for assisting the City with the establishment of a citywide Storm Drain User Fee per the California Health and Safety Code Section 5471 et seq. We understand that the City would like to try to establish this fee so that it appears on the FY 2005-06 County Property Tax Bills.

This proposal will provide the financial engineering services necessary to establish the Storm Drain User Fee within a timeframe to submit the fees to the County Auditor-Controller by August 10, 2005. A schedule has been provided on page 3 which would accomplish this.

Also as we discussed, Phase 1 has been broken into two task items. It is anticipated that Task A will be completed before July 1, 2004 and that Task B will be started after July 1, 2004.

Project Manager - Joan E. Cox, PE will be the project manager and will be responsible for coordinating all aspects of the project, maintaining a close liaison with the City and ensuring the City’s satisfaction with the services. She will be the main point of communication between the project team and the City and will direct the activities of the project. Ms. Cox has over 22 years of financial engineering and civil engineering experience consulting to cities, counties and special districts throughout the State of California. She assisted the City of Palo Alto with a Proposition 218 compliance analysis of their Storm Drain User Fee and she managed the implementation of a storm water utility fee for the City of Carmel-by-the-Sea, and has been working with the City of Rancho Palos Verdes since 1992 on their assessment and fee district projects.

Deputy Project Manager - Dennis A. Anderson will assist the project manager in developing the preliminary rates and database for the project. He has over 15 years of professional experience in the area of public finance and municipal engineering and was the deputy project manager for the City of Palo Alto Storm Drain User Fee analysis. Mr. Anderson brings a unique perspective to the team, as he has been an analyst in the establishment and administration of fees on both the public side, as a city employee, and the private side, as a consultant to public agencies. On the public side, Mr. Anderson spent 7 years at the City of Vista where he assisted with the formation and administration of the City’s Sewer Maintenance Districts, Lighting and Landscaping Maintenance District, Assessment Districts and Community Facilities Districts.

Phase 1 – Preliminary Analysis

Task A – Items 1 through 3 $15,000 lump sum

Task B – Items 4 through 7 $10,000 lump sum

Plus additional City Council and any FAC meetings $750 lump sum per meeting

Optional Item 19 (8 Property Owner Meetings @ $950 per mtg) $7,600 estimated fee

Phase 3 – Initial Year’s Levy Process $3,000 lump sum

Postage costs are to be provided by the City at least 2 week prior to each mailing date.

Attendance at meetings as described in the Scope of Work and most indirect expenses (such as mileage and duplicating) are included in the lump sum fees except where noted.

Additional services will be as authorized for a mutually agreeable fee.

Invoices will be submitted monthly for services provided in the previous month and shall be paid within 30 days of receipt. It is assumed that this project will be subject to the same terms and conditions of our current contract with the City for Assessment Engineering Services.

Our team is excited about the opportunity of working with the City of Rancho Palos Verdes on this Storm Drain Fee Project. Please let us know if you have any questions regarding our scope of work or fees.

Sincerely,

Joan E. Cox, PE

Associate / Project Manager