TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIRECTOR OF FINANCE & INFORMATION TECHNOLOGY
DATE: JANUARY 24, 2005
SUBJECT: AWARD OF PROFESSIONAL SERVICES CONTRACT FOR ENGINEERING SERVICES REGARDING PROPOSED WATER QUALITY AND FLOOD PROTECTION PROGRAM
Approve the attached Professional Services Agreement For Engineering Services with Harris & Associates for services associated with finalizing the rate analysis for the proposed Water Quality and Flood Protection Program for an amount "not to exceed" $23,000.
BACKGROUND AND DISCUSSION
Joan Cox and Dennis Anderson, senior engineers with Harris & Associates ("Harris"), are members of the Infrastructure Financing Team (the "Team") that developed the recommendation for the proposed Water Quality and Flood Protection Program (the "Program") presented to the City Council on November 30, 2004 and January 4, 2005.
Preliminary Methodology And Rate Analysis
On April 6, 2004, the City Council approved the preparation of a Preliminary Methodology and Rate Analysis (hereafter referred to as the "Rate Analysis") by Harris for the possible establishment of a storm drain user fee. The Rate Analysis was presented to the City Council at a Joint Workshop with the Finance Advisory Committee (the "FAC") on November 30, 2004. The Rate Analysis was revised and accompanied the Teamís presentation on January 4, 2005. In the preparation of the Rate Analysis, Harris prepared:
The total estimated annual operating costs of the Program would be divided by the total of ERUís of all parcels subject to the proposed user fee in the calculation of the user fee/ERU (i.e. $2.0 million cost per year divided by 16,600 ERUís equals a user fee of about $120/ERU).
Action Taken By City Council on January 4, 2005
At a meeting on January 4, 2005, the City Council voted to continue the process that would enable the property owners to decide whether or not to set a user fee for the proposed Water Quality & Flood Protection Program. They did not decide whether or not to actually conduct a mail ballot election to establish a user fee at that time, but continue the process. Staff expects to bring an item to the City Council on or before April 19, 2005, for the City Council to decide whether or not to conduct a mail ballot election on or before August 30, 2005. Prior to that City Council meeting, Staff would prepare and file with the City Clerk, a written report containing:
Harris has developed the database to complete the written report described above. The written report is commonly referred to as the "Final Rate Analysis". Staff recommends that the City continue to engage Harris to complete the Final Rate Analysis as a part of the written report that would be filed with the City Clerk in conjunction with the consideration of a resolution of intention to set a public hearing on or before April 19, 2005. Harris has included the proposed rate finalization in its Proposal to Finalize and Establish the Water Quality and Flood Protection Fee", dated January 11, 2005 (see Exhibit A.
Additional Services Ė Creation of Custom RPV Single Family Residence Impervious Table
The staff report, dated January 4, 2005, included the following excerpt:
"As described in the Staff report, dated November 30, 2004, the Preliminary Rate Analysis prepared by Harris & Associates, dated November 22, 2004, used the impervious factors based upon the County Hydrology Manual. The following excerpt regarding factors for single-family residential (SFR) parcels was extracted from Rate Analysis report, dated November 22, 2004:
Table 2 Ė County Impervious Factors for SFR Parcels
The Director of Public Works questioned whether or not the impervious factor averages contained in the County Hydrology Manual were comparable to the SFR parcels in the City. Many of the SFR parcels are: (1) located on hilly terrain; (2) located adjacent to canyons where the parcels extends down to or near the centerline of the canyon; (3) larger than the average parcel size throughout the County; and (4) include a substantial amount of open space. Therefore, the Team recommends the creation of a custom impervious factor table for the SFR parcels within the City, rather than use of the impervious factors contained in the County Hydrology Manual. The Team believes that creation of the custom impervious factor table for SFR parcels will provide more uniformity, accuracy and equity for SFR property owners in the City. (Multi-family residential, commercial and institutional parcels have now been reviewed individually.)
The creation of a custom impervious factor table for SFR parcels would be based upon the following:
The Team expects that the creation and use of a custom SFR impervious table would significantly reduce the frequency of user fee appeals based upon the contention that the impervious factor should be significantly less."
If the City Council agrees with the recommendation of the Team to develop the RPV SFR Impervious Table, it must be completed prior to the completion of the Final Rate Analysis. The Team expects that the Final Rate Analysis will be presented to the City Council in March or April 2005. Therefore, the Team recommends that Harris proceed immediately with the creation of the RPV SFR Impervious Table. Harris has included the proposed creation of the RPV SFR Impervious Table and the preparation of the Final Rate Analysis in its Proposal to Finalize and Establish the Water Quality and Flood Protection Fee", dated January 11, 2005 (see Exhibit A).
The proposed Professional Services Agreement includes a provision for a "not to exceed" fee quotation of $23,000 (approximately $17,500 for services to develop the RPV SFR Impervious Table and $5,500 to finalize the Rate Analysis). Staff expects that the FY04-05 appropriation in the Finance program of the General fund will be sufficient to pay Harris pursuant to the scope of services described herein. Therefore, a budget adjustment is not requested at this time.
Director of Finance & Information Technology
Professional Services Agreement For Engineering Services
Exhibit A - Proposal to Finalize and Establish the Water Quality and Flood Protection Fee