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Item 14.2 - Authorization to Award Assessment Engineering Contract Berryman & Henigar AGENDA REPORT SUMSL&RY TO: Honorable Mayor and Members of the City Council F~~'~N~ FROM: James L. Bowersox, City Mana~~1~) · ' g' ' g Serv'cesJrvlo O. Bradley Kutzner, Senior Civil Engineer~ DATE: January 31, 1995 SUBJECT: Authorization to Award Assessment Engineering Contract to Berryman & Heni~ar for High Valley Assessment District{#1234) ABSTRACT This action will adopt a Resolution appointing an engineer to perform Assessment Engineering for the High Valley Road System Improvements. It will also appropriate $225,000 to partially fund this project. Additionally, this action will amend an earlier agreement with the County of San Diego to use CSA 5 assessments to fund the FISCAL IMPACT There are sufficient funds available ($~5,p07 from the City's Street Development Fund, $100,000 from the City's Water Fund). e Damance of the costs will be generated by assessments to the property owners. ENVIRONMENTAL REVIEW This action is not subject to environmental review. ADDITIONAL PUBLIC NOTIFICATIONAND CORRESPONDENCE Ron Plumb, Tara Fields, Dan Steussy, Jeff Cooper, Ann Hicks, Bob Borntrager, and Charles es. RECOMMENDATION It is recommended that the City Council: 1. Approve Resolution Appointing An Engineer of Work for Assessment District 95-01. 2. Approve Amendment to the Agreement Between the City of Poway and the County of San Diego on Behalf of County Service Area 5 to Allocate Funds for a Preliminary Road Design. 3. Appropriate $225,000 to the High Valley Road Realignment project from: a. $125,000 from the City of Poway Street Development Fund b. $100,000 from the City of Poway Water Fund. ACTION I of 17 JAN 81 1995 I'i'F_M 1~+. 2 AGENDA REPORT CITY OF POWAY This report is included on the Consent Calendar. There w~l~ be no separate discussion of the report pdor to approval by the City Council unless members of the Council, staff or public request it to be removed from the Consent Calendar and discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number and give it to the City Clerk pdor to the beginning of the City Council meeting. TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Mana~ INITIAliZeD BY: John D. Fitch, Assistant City Manager Mark S. Weston, Director of Engineering Services J. Bradley Kutzner, Senior Civil Engineerc~~ DATE: January 31, 1995 SUBJECT: Authorization to Award Assessment Engineering Contract to Berryman & Henigar For High Valley Assessment District(#1234) BACKGROUND At the January 5, 1995 workshop, the Council directed staff to prepare a resolution designating an assessment engineer for the proposed assessment district to support the road improvements to be done in the High Valley area. This resolution has been prepared as Attachment 1. The hiring of a district Bond Counsel will be proposed at a future date. The proposed assessment engineering work would be done by Berryman & Henigar (formerly BSI Consultants). The Principal in charge of this work at Berryman & Henigar would be Jeffrey M. Cooper, Senior Vice President. Mr. Cooper has performed similar services in numerous assessment districts throughout California. Berryman & Henigar have proposed to perform the assessment engineering in eight basic task areas structured around the process of the formation of an Assessment District as required in the Municipal Improvement Act of 1913. As also directed in the Council action on January 5, 1995, staff is prepared to proceed with the financing plan to support the High Valley Road System Improvements. Ibis plan will ultimately utilize $125,000 from Poway's Street Development Fund and $100,000 from Poway's Water Fund. ACTION: 2 of 17 JAN 3 1 1995 ITEM 1~- · Agenda Report: Authorization to Award Assessment Engineering Contract to Berryman & Henigar For High Valley Assessment District(#1234} January 31, 1995 Page 2 To support the process of assisting the homeowners in High Valley in deciding whether or not to move forward with improvements to their roads, the Council approved an agreement with the County of San Diego in August of 1991 which allowed a portion of the CSA 5 assessments to be used to pay for the preliminary engineering work. This agreement had a cap of $112,380. Since the process has gone on much longer than any of the parties expected, the type of work needing to be done has varied from the original description in the agreement. The County Counsel has opined that the original agreement does not cover anything but road engineering. The first Amendment to the Agreement (Attachment #2) provides wording acceptable to the County Counsel that will allow reimbursement to be made for the services that have been performed and paid for already at the request of the High Valley Homeowners Board. Sufficient funds exist in the CSA reserves to cover these costs. FINDINGS Berryman & Henigar is well qualified to perform the assessment engineering for this project because of their experience in assessment work and their background of support for this project for the last three years. It is also in the City's best interest to amend the agreement with the County of San Diego to allow reimbursement for all the work done at the request of the High Valley Homeowners Board. The resolution presented will allow that to take place. It is timely to appropriate the public funding for this project. This will allow the district preparation to proceed unimpeded. FISCAL IMPACT There are sufficient funds available to cover the proposed actions in these recommendations~{$125,000 from the City's Traffic Mitigation Fund, $100,000 from the City's Water Fund). The balance of the costs will be generated by assessments to the property owners. This action is not subject to environmental review. JAN 311995 ITE~ lZ~. 2 3 of 17 Agenda Report: Authorization to Award Assessment Engineering Contract to Berryman & Henigar For High Valley Assessment District(#1234) January 31, 1995 Page 3 ADDITIONAL PUBLIC NOTIFICATIQNAND CORRESPONDENCE Ron Plumb, Tara Fields, Dan Steussy, Jeff Cooper, Ann Hicks, Bob Borntrager, and Charles Hayes. RECOMMENDATION It is recommended that the City Council: 1. Approve Resolution Appointing An Engineer of Work, Assessment District 95-01 (High Valley Road System Improvements). 2. Approve the Resolution Amending the Agreement Between the City of Poway and the County of San Diego on Behalf of County Service Area 5 to Allocate Funds for a Preliminary Road Design. 3. Appropriate $225,000 to the High Valley Road Realignment project (#1234) from the following sources: a. $125,000 from the City of Poway Street Development Fund b. $100,000 from the City of Poway Water Fund. Attachment 1: A Resolution Appointing An Engineer of Work for Assessment District No. 95-01 (High Valley Road System Improvements) Attachment la: Assessment Engineering Proposal by Berryman & Henigar Attachment 2: First Amendment to Agreement Between The City of Poway and The County of San Diego on Behalf of County Service Area 5 to Allocate Funds for a Preliminary Road Design JAN 311995 4 of 17 RESOLUTION NO. 95- A RESOLUTION APPOINTING AN ENGINEER OF WORK FOR ASSESSMENT DISTRICT NO. 95-01 (HIGH VALLEY ROAD SYSTEM IMPROVEMENTS) RESOLVED, by the City Council of the City of Poway, California, as follows: WHEREAS, this Council proposes to undertake proceedings pursuant to appropriate special assessment and assessment bond acts for the acquisition, construction and financing of certain public improvements in this City; and WHEREAS, the public interest and general welfare will be served by appointing and employing an engineer of work for the proceedings; NOW, THEREFORE, IT IS ORDERED as follows: Berryman & Henigar, San Diego, California, is appointed and retained as Engineer of Work; its compensation to be, and it is hereby fixed at a reasonable fee for such services, as described in their proposal attached hereto and labeled Attachment 1. PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway, California, at a regular meeting thereof on this 31st day of January, 1995. ATTEST: Don Higginson, Mayor Marjorie K. Wahlsten, City Clerk STATE OF CALIFORNIA) ) ss. i COUNTY OF SAN DIEGO) I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify under penalty of perjury that the foregoing Resolution No. 95- was duly adopted by_the City Council at a meeting of said City Council on the day of , 1995, and that it was so adopted by the following vote: -- AYES: NOES: ABSTAIN: ABSENT: Marjorie K. Wahlsten, City Clerk Attachment 1 3 ms 2 ~B~rr~man___ __ ~ Henigar January l6, 1995 Mr. J. Bradley Kutzner, P.E. Senior Civil Engineer City of Poway 13325 Civic Center Drive P.O. Box 789 Poway, CA 92074-0789 Subject: High Valley Road Improvement District - Assessment Engineering Proposal Dear Mr. Kutzner: As a follow-up to our conversation last week, I have prepared our proposal for Assessment Engineering Services for the High VaLley Road Improvement District consisting of the attached Exhibits A, B and C. Exhibit A is the Scope of Work; Exhibit B is the project formation schedule; and Exhibit C is the fee schedule for professional services. We propose that our existing engineering services contract with the City would govern this assignment with the attached exhibits amending our services and fees. Hourly rates would be per our existing contract with the City. Our Project Team would be myself as Assessment Engineer and Project Manager. I would be assisted by our staff who have been working on the Conceptual Financial Plan. BSI Consultants, Inc., dba Berryman & Henigar,/~ppreciates being of service to the property owners in High Valley and the City. If we can be of further assistance, please let me know. Sincerely, BERRYMAN aS; HENIGAR Jeffrey M. Cooper, P.E. Senior Vice President JMC/jn p roposals\poway~high-val.j mc JAN 31 1995 I'[EN] Attachment la Bernardo Court, Suite !00 · San Diego, CA 92127 tel: 619-451-6100 fax: 619-451~2846 6 of 17 EXHIBIT A SCOPE OF WORK Assessment En2ineerin~ Service,5 The following Scope of Work describes services for the preparation of an Engineer's Report and administration of the assessments as required under the procedures of the Municipal Improvement Act of 1913 for the High Valley project for the City of Poway. Specific services to be provided include: BASIC S E R VI_C_E~ TASK I - CONCEPTUAL FINANCING PLAN APPROVAL TO RESOLUTION OF INTENTION A. Gather research materials, maps, assessor's parcel information, direct and indirect cost estimates and related data as required to update the assessment study. Verify district boundary and zones of benefit. Identify and exclude governmental lands. Ascertain utility-owned property. B. Update methodology as needed for the assessment spread based upon the Conceptual Financing Plan and any new information or requirements. C. Prepare Boundary Map and Assessment Diagram of the proposed District. Prepare and deliver a specified quantity of mylars and bluelines as ordered by the Agency. D. Prepare a Preliminary Engineer's Report including estimated costs, incidental expenses, assessment roll, method of assessment, District Procedural Certificates, description of work, assessment diagram and engineer furnished plans and specifications as required under the act for City review. Furnish City specified amount of copies of the Preliminary Engineer's Report for review and comment. E. Identify the requirements for the establishment of a reimbursement district or other mechanism to allow the modification of assessments/fees on those parcels which voluntarily elect to develop to a gross density of greater than three dwelling units. F. Complete Preliminary Engineer's Report for City Council approval and furnish specified amount of copies of the Preliminary Engineer's Report as ordered by the Agency. G. Berryman & Henigar will provide sample resolutions and sample mailed notices to the City and/or Bond Counsel for final text preparation. mrklng\poway~high-val.jme 1 ~Oerr~man & HenJgar 7 of 17 JAN 8 1 1995 I'T;...,~ l ~-. 2 TASK 2 - ESTABLISH REIMBURSEMENT DISTRICT A. Prepare a draft ordinance for review by City Attorney and/or Bond Counsel which would establish a reimbursement district which was coincidental with the boundaries of the assessment district. B. Meet with City staff to review draft ordinance and make any changes requested. C. Prepare estimate schedule of fees based on the term of the bonds to be issued by the assessment district. D. Attend City Council meetings for adoption of ordinance. TASK 3 - RESOLUTION OF INTENTION TO PUBLIC HEARING A. Record the Boundary Map with the responsible local official and the County Recorder as provided under the Act. B. Label and mail City-prepared Coy bond counsel) notices to all property owners within the boundary of the proposed district as listed on the last equalized County Assessors' Roll on the date the services for the Report are authorized. C. Update and amend the Preliminary Engineer's Report to reflect final estimated construction costs and project financing costs. Furnish City specified amount of copies of the Final Engineer's Report for City review and comment. D. Amend Boundary Map and Assessment Diagram of the proposed district. Amend, correct and deliver a specified quantity of mylars and bluelines as ordered by the Agency. E. Complete Final Engineer's Report and furnish specified amount of copies of the Final Engineer's Report as ordered by the Agency. F. Calculate percentage of property owner protest by area through the close of the public hearing. The City will determine whether a written letter is a legal protest or not. TASK 4 - PUBLIC HEARING THROUGH RECORDATION OF PAID ASSESSIVEENTS A. Make amendments and corrections to the Boundary Map and Assessment Diagram and prepare confu'med report, as ordered by City Council pursuant to the Public Hearing. Furnish specified amount of copies of the confirmed Engineer's Report as ordered by the Agency. mrk~ng\poway~high-val.j me 2 8 of 17 ,JAN 31 1995 I'f/F.~ 1~- · 2 B. Label and mail City-prepared (by bond counsel) notices for the cash collection, notice of conf'n'med lien amounts, to all property owners listed in the confirmed Engineer's Report. C. Record Assessment Diagram of the district and confirmed liens for each parcel within the district. D. After cash collection period, prepare a list of paid and unpaid assessments and submit to County Treasurer. E. Recordation of List of Paid Assessments. Record list of paid assessments to be deleted from the Auditor/Controller's records. TASK 5 - MEETENGS A. Attend project team meetings to develop information, and review results of preliminary and final reports. B. Attend property owner meetings when requested by the City. C. Attend City Council meeting for Resolution of Intention to form the Assessment District. D. Attend the public meeting and public hearing for Resolution of Formation. TASK 6 - DISTRICT ADMINISTRATIVE SERVICES A. Determine if any parcels have had their assessments paid off within the last fiscal year. If so, zero out their assessments. Determine if there have been any bond calls within the last fiscal year. If so, adjust the debt service schedule. B. Update data base for the assessment district based upon the latest County Assessor's records and other data. If parcels have been modified, recalculate their respective principal amounts. C. Calculate_the total amount to collect for the current fiscal year including: 1. Principal Amount 2. Interest Amount 3. Administrative Charges D. Calculate the ensuing year's special assessment amount for each parcel. mrlang\poway~high-val.j mc 3 9 of [7 JAN 311995 IIi~-;VJ 1L~. 2 E. Prepare a magnetic tape containing current year's special assessment information for submittal to the County Assessor's Office. F. Reconcile rejected parcels from the County, if any, and resubmit to the County Assessor. Prepare manual invoice for any assessments which cannot be collected on the County Tax Roll. G. Prepare a final summary report for the City indicating the projected revenues, parcel changes, assessment payoffs, bond calls, parcel amortization schedules etc. for the assessment district. H. Provide prepayment quotes or parcel amortization schedules upon request. Coordinate Release of Lien as requested. Respond to inquiries from property owners and other parties regarding annual assessments or district proceedings. TASK 7 - ASSESSMENT APPORTIONMENT SERVICES A. Review parcel changes from prior year and provide City with property owner application for Division of Land & Bond. B. Prepare the legally required apportionment package and amended diagram in accordance with the provisions of the Streets and Highways Code. After apportionment package and diagram have been completed, submit to City for required signatures. C. Record the amended assessments and diagram with the County Recorder. D. Provide the City with a final copy of all documentation associated with the reapportionment process (e.g. notices, diagram, letters etc.) TASK 8 - DELINQUENT SERVICES A. Check with the County Tax Collector each January and May to determine which parcels have delinquent assessments. B. Prepare a delinquency list in February and June of each year for City review. C. Prepare and mail City approved delinquency letters t6 the delinquent property owners. D. Re-check with the County Tax Collector each March and July to determine which parcels still remain delinquent. E. Prepare a final delinquency report in March and July of each year to the City for commencement of foreclosure proceedings. mr~ng\poway~high-val.j mc 4 el'fyml HenJgar 10 of 17 JAN 81 1~95' I~'~ lz~. 2 OTItER SERVICES AS AUTHORIZED A. Prepare displays and/or audio-visual materials, as requested by the City. B. Additional mailings of notices to property owners not listed on last equalized roll of the County Assessor. C. Provide additional copies of reports, maps or diagrams. D. Prepare utility agreements as required by other agencies for drainage, sewer or other utilities. E. Prepare right-of-way acquisition legal descriptions or mapping thereof. F. Any other services desired and authorized by the City. RESPONSIBILITIES OF TIlE CITY (Scope of Work Tasks 1-5) I. City to designate a responsible official to manage and coordinate the project. 2. City shall make available to Berryman & Henigar all available data, information, reports, maps, plans, specifications, and other reasonable information for the proper performance for consultant's services. 3. City shall prepare (by Bond Counsel) all notices pertaining to the public hearings. 4. City (by Bond Counsel) shall cause to be published all notices of public hearings or other meetings (i.e., newspaper and posting). 5. City (by Bond Counsel) shall prepare all required resolutions. 6. All environmental documentation will be provided by others. 7. City shall retain a qualified legal counsel to provide legal advice during the process. 8. City shall_ retain a qualified real estate appraiser to provide appraised values of the property included in the formation and annexation process, as required. 9. City shall distribute Engineer's Reports to property owners, project team, City Council and other parties. 10. City to provide records of previous assessment obligation and encumbering proposed areas. 11. City shall schedule and agendize meetings and hearings as required under the Act. 12. City shall provide, in specified tape format, previous assessor's roll. RESPONSIBILITIES OF THE CITY (Scope of Work Tasks 6-8) 1. Assist in the calculation and review of fund balances and earned interest income. 2. Assist in the verification of assessment payoffs and bond calls. 3. Review and approve delinquency letters. 4. Obtain delinquent list from the County for each district in January and May of each year. 5. Provide legal counsel as required. rnrktng\poway~high-val.~rn¢ 6 ~2 of ~7 0"'"/~h"3~i'i~9'S: 'l'i'i~~ '~lzi. 2 EXHIBIT B HIGH VALLEY ROAD IMPROVEMENT DISTRICT FORMATION SCHEDULE Target Activity Date 1. Notice to proceed given to Berryman & Henigar. January 31, 1995 2. Prepare Assessment Engineer's Report and July 17, 1995 Reimbursement District Ordinance - submit draft to City staff. 3. Assessment Engineer's Report and August 1995 Reimbursement District Ordinance - receive City staff's comments. 4. Assessment Engineer's Report and September 5, 1995 Reimbursement District Ordinance - review with High Valley Board and property owners, thru October 20, 1995 5. Submit Assessment Engineer's Report and Council action Reimbursement District Ordinance to City Council - November 7, 1995 Resolution of Intention to form Assessment District; Fffst Reading of Reimbursement District Ordinance. 6. Send out notices to property owners for the public by November 22, 1995 meeting and public hearing. 7. Conduct Public Meeting - December 14, 1995 informational meeting for property owners. 8. Conduct Public Hearing - Council action to consider forming Assessment District; January 9, 1996 Consider adoption of ordinance for Reimbursement District. 9. Conduct 30-day cash collection period, start January 16, 1996 10. Sell bonds, award construction bid. February 23, 1996 Note: See attached Municipal Improvement Act of 1913, Steps for Formation of an Assessment District. MUNIC; 'AL IMPROVEMENT A "T OF 1913 I ~ AN ASSESSMENT DISTRICT Agency Owners Waiving 1931 act F. ngineer Prepares lnttntion I En~n eor Prepares 1913 Combined 1951/1913 To Form Distric~ ~ A~, Preliminary Report Preliminary Repo~ And Set Hearings Publi~ Notice I Plans 'd Specs l I Assessment Notice Advarti~d Published To PrOl~trty Owner Bids Opened Post Notice 45 Days Before Hearing (not required) Agency Conducts Public Meeting Agency Conducts Public Hearing Revie~m Protests Overrule Protest Abandon Order Improvements Hearing Proceedings Form District Confirm Assessment ? 30Day Cash Collection ] Sell ~ Bonds ~ Improvements 14 of 17 JAN 3 1 1995 I']'E~ lZ,'- · 2 EXHIBIT C FEE SCH2EDULE Based upon the Scope of Work, Berryman & Henigar proposes compensation for the services and deliverables described in Exhibit A, "Scope of Work", as follows: Percent Task Descrintion Fee Complete Conceptual Financing Plan $16,000 100% at ROI Approval to ROI (Lump Sum) (Task i) Establish Reimbursement District $1,500 100% at ordinance adoption (Task 2) (Lump Sum) ROI To Public Hearing $6,500 100% at (Task 3) (Lump Sum) Public Hearing Public Hearing to Recordation $ 2,000 100% at of Paid Assessments (Lump Sum) Recordation (Task 4) Meetings and Project meetings (Tasks 1 thru 3) and project as costs are incurred Reimbursables expenses, including printing, binding, mileage and (Task 5) postage. (Time and Materials; estimate of $7,000) District Administrative Services $2,500/year 100% upon submittal (Task 6) (Lump Sum) to County Auditor/ Controller Assessment Apportionment Services $1,500 + $50/parcel as costs are incurred (Task 7) (per application) Delinquent Services $2,000/yr + $50/letter as costs are incurred (Task ~) Berryman & Henigar will invoice the City monthly for services performed during the previous month up to the percent complete indicated above. Additional Services shall be provided as authorized by the City. Fees for Additional Services will be charged on a time and materials basis and will be invoiced monthly based upon the Schedule of Hourly Rates per Engineering Services contract with the City of Poway. rm'kmg\poway~high-vaLj mc 8 15 of 17 JAN 31 1995 ITEM FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF POWAY AND THE COUNTY OF SAN DIEGO, CALIFORNIA ON BEHALF OF COUNTY SERVICE AREA 5 TO ALLOCATE FUNDS FOR A PRELIMINARY ROAD DESIGN THIS FIRST AMENDMENT is made by and between the City of Poway, a municipal corporation, herein called "Poway" and the County of San Diego, a political subdivision of the state of California, herein called "County," on behalf of County Service Area 5 - High Valley, herein called "CSA 5." WITNESSETH: WHEREAS, Poway and the County entered into an agreement on the lOth day of September 1991, wherein Poway agreed to advance funds to cover the preliminary design costs for CSA 5, the monies being subject to reimbursement by the County; and WHEREAS, all parties agree that it is now in the best interests of CSA 5 to obtain Assessment Engineering services to explore financing options for the cost of full design and improvement of the roads; and WHEREAS, Poway will contract all services necessary to complete the Preliminary Assessment Engineering at a cost not to exceed an additional $10,000. The total amount now authorized is $122,380; and WHEREAS, Poway will pay for the Assessment Engineering services provided Poway is reimbursed by CSA 5; NOW THEREFORE, IT IS MUTUALLY AGREED as follows: Said a§reement is modified as follows: 6. Poway will contract all services necessary to complete Assessment Engineering services for CSA 5. 7. Poway will advance the funds to cover the Assessment Engineering services for CSA 5. 8. Reimbursement payments will be made to Poway upon presentation of invoices with evidence of payment, with total reimbursement not to exceed $10,000. IN WITNESS WHEREOF, County has caused this instrument to be executed by its respective officials and this instrument be issued by Poway acting by and through the City Manager pursuant to a resolution of the City Council of said City authorizing such execution. The parties hereto have executed this FIRST AMENDMENT TO AGREEMENT at San Diego, California, the day and year first above written. Attachment 2 jA, 3 199 16 of 17 First Amendment To Agreement Between The City of Poway and The County of San Diego, California On Behalf of County Service Area 5 To Allocate Funds For A Preliminary Road Design Page Two Dated this day of , 1995 CITY OF POWAY COUNTY OF SAN DIEGO A MUNICIPAL CORPORATION A POLITICAL SUBDIVISION OF THE STATE OF CALIFORNIA BY By James L, Bowersox Thomas J. Pastuszka City Manager Clerk of the Board of Supervisors The form and legality of foregoing Agreement is hereby approved by Steven M. Eckis, City Attorney for the City of Poway BY APPROVED AS TO FORM AND LEGALITY COUNTY COUNSEL BY JAN311995 ~EM 1~. 17 of 17