HomeMy WebLinkAbout10 - PSA Amendments for Underground AD Nos. 111, 116, and 116b and for Underground AD No. 117��WPaRT CITY OF
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City Council Staff Report
May 10, 2016
Agenda Item No. 10
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Michael J. Sinacori, Assistant City Engineer,
PHONE: 949-644-3342, msinacori@newportbeachca.gov
TITLE: Professional Services Agreement Amendments with Harris &
Associates for Underground Assessment District Nos. 111, 116,
and 116b and with Penco Engineering for Underground
Assessment District No. 117
ABSTRACT:
With the recent City Council approval and creation of Assessment District (AD) Nos.
111, 116, 116b and 117, additional professional services are now required for
assistance with assessment notifications, collections, addressing resident inquiries,
questions and concerns as well as other related Underground Assessment District
management and oversight task.
Staff is requesting City Council's approval to amend the Professional Services
Agreements with Harris & Associates for AD Nos. 111, 116 and 116b and with Penco
Engineering for AD No. 117 to cover these additional services.
RECOMMENDATION:
a) Approve Amendment No. 2 to the Professional Services Agreement (PSA) with
Harris & Associates, at a "not -to -exceed" price of $35,060.00, and authorize the
Mayor and City Clerk to execute the Amendment; and
b) Approve Amendment No. 1 to the Professional Services Agreement (PSA) with
Penco Engineering, at a "not -to -exceed" price of $17,600.00, and authorize the
Mayor and City Clerk to execute the Amendment.
FUNDING REQUIREMENTS:
Sufficient funds are currently available in the following accounts:
10-1
Professional Services Agreement Amendments with Harris & Associates for
Underground Assessment District Nos. 111, 116, and 116b and with Penco Engineering
for Underground Assessment District No. 117
May 10, 2016
Page 2
Account Description
Account Number
Amount
AD 111 Assessment Engineering
66002-941006
$2,000.00
AD 116 Assessment Engineering
65902-941006
$9,500.00
AD 116b Assessment Engineering
66102-941006
$4,560.00
AD 117 Assessment Engineering
65802-941006
$17,600.00
DISCUSSION:
Owners of properties located in Assessment District Nos. 111, 116, 116b and 117 voted
in favor of creating Districts and paying for the undergrounding of overhead utilities in
late 2015 and early 2016, followed by City Council approval of creation of the Districts.
Southern California Edison and the other utility companies are now preparing the design
and construction documents for the undergrounding.
Recently completed efforts include:
• Preparation and mailing of the first Notice of Assessment to the property owners
(also known as the "cash collection" notices) to allow owners to pay off the
assessment without incurring financing costs. A minimum 30 -day payment period
is required;
• Responded to public inquiries related to the assessment district and utility
undergrounding process during the 30 -day cash collection period;
• At the end of the 30 -day cash collection period, prepared and recorded the
Notice of Assessment Lien based on payments received in full.
The next steps in the funding of the undergrounding are as follows:
• Preparation and mailing of the second Notice of Assessment prior to bond
issuance, starting second 30 -day cash collection period;
• Respond to public inquiries related to the assessment district and utility
undergrounding process during the second 30 -day cash collection period;
• At the end of the second 30 -day cash collection period, prepare and record the
Notice of Assessment Lien Release based on payments received in full;
• After the second 30 -day cash collection period, prepare bond documents for City
Council approval for the issuance of bond debt to finance the construction of the
utility undergrounding;
• City issues bonds mid -2017;
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Professional Services Agreement Amendments with Harris & Associates for
Underground Assessment District Nos. 111, 116, and 116b and with Penco Engineering
for Underground Assessment District No. 117
May 10, 2016
Page 3
• Edison commences construction in fall 2017.
Staff is recommending that the City amend the Professional Services Agreements with
Harris & Associates for AD No. 111, 116, and 116b and with Penco Engineering for AD
No. 117. As shown in the amendments and proposals, the consultants will provide
additional services associated with the second cash collection period efforts prior to the
construction of the undergrounding in each district.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302 (replacement of existing
facilities involving negligible expansion of capacity) of the CEQA Guidelines, California
Code of Regulations, Title 14, Chapter 3, because it has no potential to have a
significant effect on the environment.
NOTICING -
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Amendment No. 2 to the PSA with Harris & Associates
Attachment B — Amendment No. 1 to the PSA with Penco Engineering
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AMENDMENT NO. TWO TO
PROFESSIONAL SERVICES AGREEMENT
WITH HARRIS & ASSOCIATES, INC. FOR
ENGINEERING SERVICES FOR ASSESSMENT DISTRICTS 111, 116, AND 1166
THIS AMENDMENT NO. TWO TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. Two") is made and entered into as of this 15th day of March, 2016
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and HARRIS & ASSOCIATES, INC., a
California corporation ("Consultant"), whose address is 1401 Willow Pass Road, Suite
500, Concord, California 94520, and is made with reference to the following:
RECITALS
A. On September 10, 2014, City and Consultant entered into a Professional
Services Agreement ("Agreement") to engage Consultant in professional
engineering services for Assessment Districts ("AD") 111 and 116 ("Project").
B. AD 116 has been split into two separate districts numbered AD 116 (comprised
of approximately 103 parcels) and AD 116B (comprised of approximately 53
parcels).
C. On September 15, 2015, City and Consultant entered into Amendment No. One
to the Agreement ("Amendment No. One") to reflect additional services not
previously included in the Agreement, extend the term of the Agreement to
December 31, 2016, and to increase the total compensation.
D. The parties desire to enter into this Amendment No. Two to reflect additional
Services not included in the Agreement, as amended, to extend the term of the
Agreement to December 31, 2017, and to increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. TERM
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on the Effective Date, and shall
terminate on December 31, 2017, unless terminated earlier as set forth herein."
2. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be supplemented to include the Scope of
Services, attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). Exhibit A to the Agreement, Exhibit A to Amendment No. One, and Exhibit A
to this Amendment No. Two shall collectively be known as "Exhibit A." The City may
elect to delete certain Services within the Scope of Services at its sole discretion.
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3. COMPENSATION TO CONSULTANT
Exhibit A to the Agreement shall be supplemented to include the Schedule of
Billing Rates, attached hereto as Exhibit B and incorporated herein by reference
("Services" or "Work"). Exhibit A to the Agreement, Exhibit B to Amendment No. One,
and Exhibit B to this Amendment No. Two shall collectively be known as "Exhibit B."
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and the Schedule of
Billing Rates attached hereto as Exhibit B and incorporated herein by reference.
Consultant's compensation for all Work performed in accordance with this Agreement,
including all reimbursable items and subconsultant fees, shall not exceed One Hundred
Forty Seven Thousand Six Hundred Forty Dollars and 001100 ($147,640.00),
without prior written authorization from City. No billing rate changes shall be made
during the term of this Agreement without the prior written approval of City."
The total amended compensation reflects Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. Two,
including all reimbursable items and subconsultant fees, in an amount not to exceed
Thirty Five Thousand Sixty Dollars and 001100 ($35,060.00).
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Harris & Associates, Inc. Page 2
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IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to
be executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORI EY'S OFFICE
Date:
By:
Aaron C. Harp CA)& r I
City Attorney
ATTEST:
Date:
Ma
Leilani 1. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Diane B. Dixon
Mayor
CONSULTANT: Harris & Associates, Inc.,
a California corporation
Date: 161
By -
Dennis A. Anderson
Director, Financial Engineering
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Harris & Associates, Inc. Page 3
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EXHIBIT A
SCOPE OF SERVICES
Harris & Associates, Inc. Page A-1
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Harris & Associates..
January 25, 2415
Mr. Michael J. 5inacori, PE
Assistant City Engineer
City of Newport Beach
Public Works Department
100 Civic Center Drive
Newport Beach, CA 92660
Re: Proposal for Assessment Services after District Formation— UUAD No. 111, 116 & 116B
Dear Mike,
Per your request, attached is our proposal to provide additional assessment engineering services
now that Utility Undergrounding Assessment District ("UUAD") Nos. 111, 116 and 116B have been
formed. Per our discussions, the City wishes to contract with us to cover the mailing of the Notice
of Assessment for the 2 cash collection periods scheduled for each UUAD. The following is our
proposed scope of services and estimated fee to provide these additional services for each UUAD.
Because the 2nd cash collection period is not anticipated to occur until May, 2017 or later, we
request that the contract termination date be set for December 31, 2017.
SCOPE OF SERVICES
The following is our scope of services that will be required by the City for this process. The table at
the end of this section indicates our estimate of additional hours required to complete all 3
d istricts.
Assessment Confirmation and Bond Sale
13. Prepare the Notice of Assessment Lien, List of Assessed Property Owner Names and Assessment
Diagram for recordation and record.
14, lst Notice: Prepare the Notice of Assessment, including the confirmed assessment amount as well
as cash payoff amount, for mailing to all assessed property owners of record within the confirmed
district. This scope item assumes the City Attorney and/or Bond Counsel reviews the contents of
the Notice and that the City will provide the envelopes for the mailing. Harris will prepare a written
declaration that th« task has been completed.
15. Handle all property owner inquiries regarding the Assessment District payoff process and
coordinate issuance of replacement notices, as requested by property owners.
16. Prepare the List of Paid and Unpaid Assessments for use by the City.
17, Prepare Notice of Lien Release for all parcels that paid off the assessment in full for execution by
the City Clerk and recordation.
18. 2nd Notice: Prepare the 2nd Notice of Assessment, including the confirmed assessment amount as
well as cash payoff amount, for mailing to all assessed property owners of record within the
22 Executive Park, Suite 200, Irvine, California 92614-4705 949.655.3904 FAX 949.655.3995 WeAreHarris.com
10-8
Mr. Michael J. Sinacori, PE
City of Newport Beach
January 25, 2016
Page 2
confirmed district. This scope item assumes the City Attorney and/or Bond Counsel reviews the
contents of the Notice and that the City will provide the envelopes for the mailing. Harris will
prepare a written declaration that this task has been completed.
19. Handle all property owner inquiries regarding the Assessment District payoff process and
coordinate issuance of replacement notices, as requested by property owners.
20. Prepare the Final List of Paid and Unpaid Assessments for use by the City.
21. Prepare Notice of Lien Release for all parcels that paid off the assessment in full for execution by
the City Clerk and recordation.
22. Assist the City and project team with review of the Preliminary Official Statement and the Official
Statement, and provide basic assessment engineering, as necessary, to bring the project to the
point of initial bond sale.
23. Participate in meetings with City staff, project administration and coordination with City staff,
property owners, bond counsel, financial advisor, bond underwriter, appraiser, and other project
consultants. Up to three (3) meetings estimated per district.
Exclusions
The following items of work are excluded from the Scope of Services:
a. Right-of-way services.
b. Post -Public Hearing Services (except as noted), including debt service (amortization) schedules and
placement of assessments on tax roll.
c. Property valuation and tax delinquency information.
d. Advertising of notices in newspaper.
e. Preparation of improvement plans, specifications, and bid documents.
Services and Information to be Provided by Others
The following information will be provided by the City or others:
a. Posting of Notices.
b. Letterhead and envelopes for property owner mailings.
c. Fiscal administration.
d. Rights -of -entry onto private property, as required.
Current maps, records, plans, etc., that pertain to this project will be provided by the Public Works
Department and/or utility companies, as appropriate, including an electronic base map of the
proposed Assessment District.
f. Preparation and execution of Notice of Exemption (environment documents, etc.)
g. Utility construction cost estimates provided by respective utility companies.
H1Harris & Associates.
10-9
EXHIBIT B
SCHEDULE OF BILLING RATES
Harris & Associates, Inc. Page B-1
10-10
Mr. Michael J. Sinacori, PE
City of Newport Beach
January 25, 201E
Page 3
ESTIMATED FEES
Based on our understanding of the services required, our estimated fees for the Scope of Services identified
above are shown below and are based on a time -spent basis in accordance with our current hourly rates.
Hourly rates include most direct costs such as vehicles, mileage, equipment, computers, communications
and reproduction.
UUAD111...................................................................................................................... $21,000
UUAD116........................................................................................................................ $9,500
UUAD116B............................................................................................................................. $4,S60
TotalNot -to -Exceed Fee................................................................................................35 060
The following table provides the estimated hours of additional work allocated for each of the project tasks
under this Amendment.
Assessment Confirmation and Bond Sale
Project
Manager
$220/hr
Hours
Proj.
Analyst
$115/hr
Hours
Admin
Asst
$75/hr
Hours
Total
Estimated
Hours
Total
Estimated
Fee
13
Prepare Notice of Assessment Lien, List of Owners, Diagram/ Record
2.0
12.0
14.0
1,820
14-Maillst
Notice of Assessment
_2.0___
20.0
18.0_
40.0
4,090
15
Handle Property Owner Inquiries
2.0
40.0
42.0
5,040 _
1.6
_Prepare 1st Paid/Unpaid List _
2.0
9.0
_ 11.0
1,475
17
Prepare Notices of Lien Release and Record
2.0
9.0
11.0
1,475
18
Mai i 2nd Notice of Assessment
2.0
20.0
18.0
40.0
4,090
19
Handle Property Owner Inquiries
2.0
40.0
42.0
5,040_
20
Prepare Final Paid/Unpaid List
2.0
9.0
11.0
1,475
21
Prepare Notices of Lien Release and Record
2.0
_ 9.0
11.0_
1,475
22
Review POS and fly _
30.0
_
3.0.0
_ 6,600
23
Project Team Meetings and Coordination
9.0
9.0
1,980
Reimbursables: Postage
500
Total Services: 57 168 36 261 $35,060
If you have any questions regarding this proposal, please call me at 949.655.3900 ext. 2334, or email me at
Dennis.Anderson@WeAreHarris.com
Sincerely,
Harris & Associates
Dennis Anderson
Director, Public Finance
Harris & Associates..
10-11
AMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT
WITH PENCO ENGINEERING, INC. FOR
AD 117 ENGINEERING SERVICES
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. One") is made and entered into as of this 14th day of March, 2016
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and PENCO ENGINEERING, INC., a
California corporation ("Consultant"), whose address is 16842 Von Karman Avenue,
Suite 150, Irvine, California 92606, and is made with reference to the following:
RECITALS
A. On May 7, 2014, the City and Consultant entered into that certain On -Call
Professional Services Agreement ("On -Call Agreement') for assessment
engineering services. Pursuant to this On -Call Agreement, Consultant provided
limited assessment engineering services for the proposed Assessment District
117 in the amount of $35,496.00.
B. On September 3, 2015, City and Consultant entered into a Professional Services
Agreement ("Agreement") to engage Consultant to provide additional engineering
services for Assessment District 117 ("Project').
C. The parties desire to enter into this Amendment No. One to reflect additional
Services not included in the Agreement, to extend the term of the Agreement to
December 31, 2017, and to increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. TERM
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on the Effective Date, and shall
terminate on December 31, 2017, unless terminated earlier as set forth herein."
2. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be supplemented to include the Scope of
Services, attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). Exhibit A to the Agreement and Exhibit A to this Amendment No. One shall
collectively be known as "Exhibit A." The City may elect to delete certain Services
within the Scope of Services at its sole discretion.
10-12
3. COMPENSATION TO CONSULTANT
Exhibit B to the Agreement shall be supplemented to include the Schedule of
Billing Rates, attached hereto as Exhibit B and incorporated herein by reference
("Services" or "Work"). Exhibit B to the Agreement and Exhibit B to Amendment No.
One shall collectively be known as "Exhibit B."
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and the Schedule of
Billing Rates attached hereto as Exhibit B and incorporated herein by reference.
Consultant's compensation for all Work performed in accordance with this Agreement
as well as the On -Call Agreement, including all reimbursable items and subconsultant
fees, shall not exceed One Hundred Thirty Eight Thousand Nine Hundred Seventy
Six Dollars and 001100 ($138,976.00), without prior written authorization from City. No
billing rate changes shall be made during the term of this Agreement without the prior
written approval of City."
The total amended compensation reflects Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed
Seventeen Thousand Six Hundred Dollars and 001100 ($17,600.00).
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Penco Engineering, Inc. Page 2
10-13
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to
be executed on the dates written below.
APPROVED AS TO FORM:
CITY ATT EY'S OFFICE
Date: 1'
r
By:
Aaron C. Harp ctM a510 -11u
City Attorney
ATTEST:
Date:
Leilani I. Brown
City Clerk
Attachments
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Diane B. Dixon
Mayor
CONSULTANT: Penco Engineering, Inc.,
a Ca1lforni corporation
Date: -9 IZ— 3 10k /')
By: i —cam----
eorge A. riga, P.E.
President
Date: 3 L16,
By:
Jeff re ooper, .E.
Vice P sident
[END OF SIGNATURES]
Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Penco Engineering, Inc. Page 3
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EXHIBIT
SCOPE OF SERVICES
Penco Engineering, Inc. Page A-1
10-15
Exhibit A
Scope of Services - amendment #1
21. Additional replacement ballots needed during ballot period.
22. Second notice of assessment for a second cash collection period.
23. Answer phone calls and questions during the first cash collection period from property owners.
Pc:c e 1
10-16
EXHIBIT B
SCHEDULE OF BILLING RATES
Penco Engineering, Inc. Page B-1
10-17
Exhibit B
Fees - Amendment #1
Tasks 21 through 23.................................................................................. Time & Materials, estimated at $17,175
Expenses 425
Total $17,600
The following table provides the estimated hours of work allocated for each project tasks.
Assessment Project
Tasks Engineer Engineer
S225lhr Hours S144Pnr Hours
Task 21: Additional replacement ballots.
Senior Design Design Admin
Engineer Engineer Assistant $851
S125/hr Hours 5115Ihr Hours hr Hours
Total Total
Estimated Estimated
Hours Fee
Task 22: Second cash collectionperiod.
Task 23: Answer questions first cash collection penc�.
Miscellaneous
.rr
Page 1
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