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HomeMy WebLinkAboutItem 2b: Citywide Street Lighting Assessment District: Contract with WilldanIneor~an~~d An~Y\1}.190) STAFF REPORT Public Works Services Department DATE: September 1, 2009 TO: Mayor and City Council FROM: Pat Malloy, Assistant City Manager/Public Works Services Di SUBJECT: ESTABLISHMENT OF A CITYWIDE STREET LIGHTING A, DISTRICT - AUTHORIZE THE CITY MANAGER TO EXECUTE A SOLE SOURCE AGREEMENT WITH WILLDAN FINANCIAL SERVICES FOR THE ASSESSMENT AND POTENTIAL FORMATION OF A CITYWIDE STREET LIGHTING ASSESSMENT DISTRICT IN THE AMOUNT OF $50,800 Recommendation: Approve SUMMARY The Lighting Maintenance District is set to expire on June 30, 2010, which will obligate the City to fund all street lighting costs, approximately $981,000 beginning in fiscal year 2010/11. The current District contributes approximately $400,000 in assessments each year which offset approximately 40% of the cost to provide street lighting. Last year, the City conducted proceedings for the formation of a Citywide Street Lighting Assessment District (District) to provide for a portion of the annual costs associated with street light maintenance. Property owners were balloted for the formation of the District but the assessment was not approved. A majority protest existed and the City Council abandoned the formation of a District last December. This year's Capital Improvement Budget includes a project to revisit the formation of a new District. Staff proposes to build on the prior assessment process, re evaluate reports prepared, modify the method of apportionment and annual budget and to re- ballot property owners in the City. If successful a new Citywide Street Lighting Assessment District will be formed via the Landscaping and Lighting Act of 1972. In order to proceed with the proposed formation of a new Street Lighting Assessment District, a new analysis and engineers report will need to be prepared, building on last year's material. Due to the complexity of this process and the consultant's familiarity with the City and last year's process, staff recommends that City Council authorize the City Manager to execute a sole source contract with Willdan Financial Services, (formerly MuniFinancial) for assessment engineering services, mailing costs, ballot Page 1 of 3 Mayor and City Council September 1, 2009 printing, postage and necessary administrative and engineering support for the establishment of this District in the amount of $50,800. DISCUSSION During the early 1970s, under the Street Lighting Act of 1919, the City's existing lighting districts were consolidated into a single district. This is the last year that the City will be able to assess property owners for street lights the old cost. Without the formation of a new Citywide Street Lighting District before July 2010, the City will be forced to shoulder all costs associated with street lighting in the City. This year's Capital Improvement Budget includes a project to revisit the formation of a new Citywide Street Lighting Assessment District (District). Staff proposes to build on the prior assessment process, develop/modify a new engineer's report and to re-ballot property owners in the City. If successful a new citywide Street Lighting Assessment District will be formed via the Landscaping and Lighting act of 1972. The following are key study issues/strategies that will need to be addressed: Evaluate possible modifications to last year's method of apportionment and budget that could enhance property owner support. Staff anticipates two (2) study sessions (mid October and mid November) with City Council and Willdan on these issues. This work should be completed by mid December. There are options on the schedule; the critical date is that a successful formation must be completed by July 2010. 2. Simplify the presentation of the required Notice of Public Hearing and Ballot. Public outreach is anticipated be begin in March and conclude in May, with property owner ballots and notices mailed in mid April. There are options on the schedule; the critical date is that a successful formation must be completed by July 2010. 3. Expand and enhance public outreach and property owner communications Public education and outreach efforts will need to be addressed separately this fall while Willdan Financial Services (Willdan) is modifying last year's approach to the formation of the new District. Last year's lighting assessment attempt failed by a small margin, but with the current poor economic environment it is critical that a comprehensive outreach strategy is developed. A total of $85,000 is included in this year's Capital Improvement Project for retention of a public relations firm to work with staff, City Council and Willdan to prepare and execute an effective public outreach program, should the Council wish to contract for these outreach services. Page 2 of 3 Mayor and City Council September 1, 2009 Willdan, formerly MuniFinancial, was selected for the last years Assessment Process through a formal Request for Proposal process. They were rated the most qualified out of four (4) proposals received, based on their successful completion of similar projects, commendable background and a thorough approach and understanding of the project. Two other consultants, declined to submit a proposal due to their current workload and insufficient work experience in street lighting assessments. Do to the complexity of this process and the consultant's familiarity with the City and last year's assessment process, staff recommends that City Council authorize the City Manager to execute a sole source contract with Willdan Financial Services, for assessment engineering services, mailing costs, ballot printing, postage and necessary administrative and engineering support for the establishment of this District in the amount of $50,800. ENVIRONMENTAL IMPACT The environmental impact study is not necessary for this evaluation. FISCAL IMPACT The Capital Improvement Program includes a Street Lighting Assessment District Project $136,300. Upon a successful establishment of a citywide street lighting assessment district, the LLD 1972 would allow the City to include this project cost as part of the special benefit assessment and would be collected from the property owners' annual property tax bill. RECOMMENDATION Award a Professional Services Agreement with Willdan Financial Services in the amount of $50,800 for assessment-engineering services for the establishment of a citywide street lighting assessment district. 2. Authorize the City Manager and City Clerk to execute a contract in a form approved by the City Attorney. Approved by PM `J cyxr ,_e `pe ~ Donald Penman, City Manager Page 3 of 3