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03-17-2020 - AGENDA ITEM 09 CONSIDERATION OF AGREEMENT WITH WILLDAN FINANCIAL SERVICES FOR COMPREHENSIVE ASSESSMENT DISTRICT ENGINEERING REPORTS11/16/2020 Print Staff Report AGENDA ITEM NO. 9 DATE: March 17, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF AGREEMENT WITH WILLDAN FINANCIAL SERVICES FOR COMPREHENSIVE ASSESSMENT DISTRICT ENGINEERING REPORTS RECOMMENDATION: It is recommended that the City Council authorize the City Manager to negotiate and execute a Professional Services Agreement with Willdan Financial Services for the not -to -exceed amount of $140,557.50 for a three- year period to provide Comprehensive Assessment District Engineering Services. BACKGROUND: The City of West Covina established maintenance districts to fund a variety of essential public services such as the maintenance of street trees, street lights, open spaces, and sewers. These districts were established using various methodology. Four of the districts in West Covina were established to maintain landscaping and irrigation in open space areas, street lights, and street trees in accordance with the Landscaping and Lighting Act of 1972 (1972 Act). The Citywide sewer district was established pursuant to Section 38902 of the Government Code. For the funding of ongoing maintenance costs of the 1972 Act maintenance districts, each district establishes a benefit formula and each parcel is assessed according to the benefit it receives from the services and improvements. The benefit formula is developed with an Engineer's Report, which provides the methodology in establishing the relation between the special benefit received and the assessment levied. It also includes the details of the improvements that are maintained and estimated budgets for each district. DISCUSSION: On November 25, 2019, the City issued A Request for Proposals (RFP) for Assessment District Engineering Services.The purpose of the RFP is to contract with a consultant to provide Assessment Engineering Services to update the tax rolls for the City's existing Citywide Sewer Services Charges, established pursuant to Section 38902 of the Government Code and City's existing Special Assessment Districts including Coastal Sage and Scrub, and CFD 1989-1,: Landscape Maintenance District Nos. 1, 2, 4, 6, 7, and Citywide Lighting and Maintenance District, established pursuant Lighting and Landscaping Act of 1972 and Proposition 2018. https://destinyhosted.com/print_ag_memo.cfm?seq=706&rev_num=0&mode=Extemal&reloaded=true&id=93782 1/2 IF TO CONSULTANT: IF TO CITY: Willdan Financial Services City of West Covina 27368 Via Industria, Suite 200 1444 West Garvey Ave. South Temecula, CA 92590 West Covina, CA 91790 Tel: (714) 848-8897 Tel: (626) 939-8422 Email: gmedina(a)willdan.com Email: jnderson@westcovina.org Attn: Gladys Medina Attn: Jeff Anderson 6.5. Attorneys' Fees. If litigation is brought by any party in connection with this Agreement against another party, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. 6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California. 6.7. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of Consultant's obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement. 6.8. Indemnification and Hold Harmless. Consultant agrees to defend, indemnify, hold free and harmless the City, its elected and appointed officials, officers, agents and employees, at Consultant's sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City's specifications or Consultant's Proposal, which shall be of no force and effect. 6.9. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. 8 Willdan Financial Services Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this paragraph. 6.10. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 6.11. Cooperation. In the event any claim or action is brought against City relating to Consultant's performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require. 6.12. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other related items as requested by City or its authorized representative, at no additional cost to the City. Consultant or Consultant's agents shall execute such documents as may be necessary from time to time to confirm City's ownership of the copyright in such documents. 9 Willdan Financial Services 6.13. Electronic Safeguards. Contractor shall identify reasonably foreseeable internal and external risks to the privacy and security of personal information that could result in the unauthorized disclosure, misuse, alteration, destruction or other compromise of the information. Contractor shall regularly assess the sufficiency of any safeguards and information security awareness training in place to control reasonably foreseeable internal and external risks, and evaluate and adjust those safeguards in light of the assessment. 6.14. Economic Interest Statement. Consultant hereby acknowledges that pursuant to Government Code Section 87300 and the Conflict of Interest Code adopted by City, Consultant is designated in said Conflict of Interest Code and is therefore required to file an Economic Interest Statement (Form 700) with the City Clerk, for each employee providing advice under this Agreement, prior to the commencement of work, unless waived by the City Manager. 6.15, Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act of 1974 (Government Code Section 81000, et seq.) and Government Code Sections 1090-1092. Consultant covenants that none of Consultant's officers or principals have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of the services hereunder, including in any manner in violation of the Political Reform Act. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be used by Consultant as an officer, employee, agent, or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City prior to the completion of the work under this Agreement. 6.16. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect. 6.17. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced. 6.18. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 6.19. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.20. Headinqs. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or 10 Wlldan Financial Services accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.21. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.22. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.23. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 6.24. Counterparts and Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures. 6.25. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. 6.26 Taxpayer Identification Number. Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W9, as issued by the Internal Revenue Service. [SIGNATURE PAGE FOLLOWS] 11 Willdan Financial Services IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF WEST COVINA, A municipal corporation Date: David Carmany City Manager WILLDAN F L SERY4elfS Californ" o atio Date: March 11, 2020 Signature Mark Risco, President N e and Title &JOA Date: March 11, 2020 Signature Rebekah Smith. Assistant Seeretar_v Name and Title ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM Date: Thomas P. Duarte City Attorney APPROVED AS TO INSURANCE: Date: Helen Tran Risk Management 12 Willdan Financial Services EXHIBIT A SCOPE OF WORK AND SCHEDULE This section of our submittal identifies Willdan's project approach to the City's request for Annual Administration Services, as well as individual work plans to complete the multiple facets associated with this engagement. PROJECT APPROACH District Administration and Levy Services Willdan views this project as a collaborative effort between the City and our team. Our broad range of professional expertise, as well as our years of experience working with the City, makes Willdan uniquely equipped to help you address the following key project aspects: Adherence to proposed timelines and effective communication with City staff; • Required database storage and management to correctly calculate levy amounts for County tax roll submission; • Review, preparation, and presentation of required documents to City Council for approval; • The availability of experienced personnel to serve as an extension of City staff in resolving any requested issues; and • The capacity to keep abreast of legislative changes for all services, including district administration and federal compliance. In order to address these items, our team will work with the City's staff to deliver our services in the following manner: 1. Meet with City staff to accurately identify specialized needs, requirements, establish timelines, communication channels, project due dates and other project specifics. Our staff takes responsibility to facilitate this communication, to provide written timelines, project deadlines, and to summarize meetings in writing. Our goals are to function as an extension of your staff, to utilize our extensive experience to help anticipate potential problems and pitfalls, and to implement procedures and policies both internally and in our coordination with the City, as well as with other interested parties to help ensure accuracy, timeliness and service. 2. Maintain computerized databases of all districts by utilizing Willdan's proprietary software, MuniMagic+SM. This software program administers taxes, assessments, standby charges and fees, including the calculation of complex formulas for special taxes and assessments applied to the County tax roll. MuniMagic+ has been designed to ensure full integration of all parcel information in a single software program, which ensures that our work is accurate. Furthermore, this software provides exceptional flexibility that enables our analysts to answer questions promptly, provide custom reports on demand, and ensure assessment and CFD charges are calculated consistently and accurately. 13 Willdan Financial Services 3. Update and maintain parcel databases for each district. Our project manager and analyst team will calculate annual installments and coordinate the timely delivery of the parcel data to the County for each affected property owner. Our staff has extensive experience working with the Los Angeles County Auditor / Controller's Office and the Assessor's Office and is extremely familiar with their procedures and practices. Our strong working relationship with the County has proven to be beneficial for our clients. In addition to performing the aforementioned tasks associated with the calculation and submittal of the taxes/ assessments to Los Angeles County, our staff will complete the staff reports, resolutions, Engineer's Reports, and coordinate the process of approving the Engineer's Reports before the City Council, as specified by Proposition 218, and the Landscaping and Lighting Act of 1972. 4. Project deliverables will be carefully passed through a review system prior to levy submittal to the County. This review system entails peer, project manager, and quality assurance manager approval. 5. Serve as an extension of City staff by keeping abreast of City policies, as well as with other state and federal regulations. As regular attendees and speakers at municipal conferences like the California Municipal Treasurers Association (CMTA), the California Society of Municipal Finance Officers (CSMFO), the League of California Cities (LOCC), the Association of California Water Agencies (AWWA), and the California Special Districts Association (CSDA), our staff is actively involved with current events transforming legislation that affects governmental agencies throughout the state, such as the City of West Covina. Likewise, our participation with the National Association of Bond Lawyers (NABL) and the National Federation of Municipal Analysts (NFMA) keeps us up to date with IRS and SEC regulatory amendments and enforcement actions. We will utilize this knowledge base and background to prepare updated tables for continuing disclosure reports that are rooted in complying with the letter and spirit of federal securities laws, regulations, and disclosure requirements under SEC Rule 10b 5 and 15c2 12. Work Plans This section contains detailed scopes of work to provide Annual Administration Services to the City of West Covina for the Special Districts listed below: • Landscape and Lighting Districts (1972 Act) • Citywide Sewer Service Charge • Coastal Sage and Scrub Community Facilities District • Municipal Improvement Districts (1911 Act) We want to ensure that our scopes provide quality and clarity, and is responsive to the City's needs and specific local circumstances. We will work in concert with City staff to adjust our scope (as needed) during the course of the contract term. Annual Administration of Landscape and Lighting Districts (1972 Act) Willdan will perform the following tasks to update Maintenance District No. 4 (3,230 parcels), Maintenance District No. 6 (238 parcels), Maintenance District No. 7 (380 parcels) and the Citywide Lighting and Maintenance District (approximately 25,775 parcels) tax rolls to levy assessments for FY's 2020-2021, 2021-2022, & 2022-2023. These tasks will be performed in compliance with the Lighting and Landscaping Act of 1972 and California Constitution Article XIIID (Proposition 218). As stated in the RFP, it is assumed that there will be no changes in the assessment methodology utilized for these districts. 14 Willdan Financial Services 1. Prepare the annual Engineer's Report for each district. This report will include the following required items: • A general description of the district, which may include key historical facts, zone designations and discussion of district benefits; • A description of the plans and improvement specifications (this may apply to documents to obtain details on file at the City); • An estimate of the costs of the improvements (budget); • A description of the Method of Apportionment (assessment calculation); • A diagram of the district; • An assessment of the estimated cost to each parcel; and • An affidavit stating that a professional engineer has prepared the report. 2. Provide the Engineer's Report in PDF format. Upon request, provide the City with two (2) bound copies of the full Engineer's Report, including the collection roll (one [1] for the City Clerk, and one [1] for City staff), and one (1) unbound copy of the Engineer's Report for staff to reproduce, as needed. 3. Attend up to two (2) City meetings, public hearings and/or staff meetings. Willdan will also be available to answer any questions requested by staff. Typically, we attend the public hearing; but we have, upon request, included an additional meeting to address budget issues with staff, or for adoption of the Resolution of Intention. 4. Provide assessment amounts for each parcel by Assessor's Parcel Number to the County Auditor/Controller's Office in the media, format and configuration required by the County for placement on the annual property tax roll as provided by the City. 5. Prepare resolutions and staff reports ordering the levy, collection of assessments, and any other necessary information to the County Auditor/Controller's Office. 6. After confirmation of the assessment rates by City Council, submit assessment rolls for each district in the required format to the County of Los Angeles Auditor/ Controller's office. Research the exceptions upon receipt of a parcel exceptions list from the County; and update parcel number changes, as well as report the revised parcels and updated levy amounts to the County. As necessary, Willdan will prepare for City staff additional County -required correspondences relating to the submittal, correction, or removal of assessments to the County tax roll. 7. Furnish one (1) bound copy and digital file in Excel format of the Final Assessment Roll for each district to the City. 8. Act as primary contact (at the discretion of the City) to answer property owner questions regarding the district(s) and assessments. Willdan typically provides the County our toll -free telephone number for inclusion on the tax bills for property owners to call with questions. 9. Upon City's approval prepare and mail invoices (handbills) to all property owners whose proposed annual assessment for their parcel could not be applied to the County tax roll (parcels for which the County does not generate a tax bill). These invoices would be provided in two (2) installments, similar to the County tax bills, and would be payable directly to the City. Annual Administration of Citywide Sewer Service Charges 15 Willdan Financial Services Willdan will perform the following tasks to complete the update of Citywide Sewer Service Charges (approximately 25,204 parcels) on the tax roll, in order to levy the charge for FY's 2020-2021, 2021-2022, & 2022-2023 pursuant to Section 38902 of the Government Code. 1. Review with City staff (prior to the annual levy submittal) the district assessments applied to the tax roll for the prior fiscal year, as well as the proposed charges calculated for the upcoming fiscal year. 2. Maintain and update an annual parcel levy database for the City's Citywide Sewer Service Charges utilizing the parcel levy database established in the previous fiscal year. Update the parcel information and data as necessary to calculate and submit the annual levy of charges to the County Auditor/Controller's Office for the upcoming fiscal year. The levy data will be based on available County secured roll data, and enhanced through parcel research using updated Assessor's information and various third -party resources to identify possible parcel changes and discrepancies needing review. Additional information provided by the City (e.g., updated tract maps, building permit information, or parcels the City has identified as exempt or have special circumstances for calculation of the annual assessments) will be reviewed and incorporated into the database. Significant changes or inconsistencies identified will be researched and discussed with the City (as needed) to ensure the annual charge for each parcel is calculated according to the Method of Apportionment established by the City. 3. Prepare, in accordance with the statutory requirements of the State of California, Proposition 218 and City Council Resolution No. 19,466, two (2) copies of the annual Engineer's Reports for the Citywide Sewer Service Charge. This report will be prepared in a format acceptable to the City and will outline the method by which the charges are established. The report will also quantify the number of parcels, the annual rate, and the total revenue. 4. Attend up to two (2) City meetings, public hearings and/or staff meetings. Willdan will also be available to answer any questions requested by staff. Typically, we attend the public hearing; but we have, upon request, included an additional meeting to address budget issues with staff, or for adoption of the Resolution of Intention. 5. Assist City staff in the preparation of the staff report to be presented to the City Council regarding the annual levy of the sewer service charge. 6. After confirmation of charges by City Council, submit "Assessment Rolls" in the required format to the County of Los Angeles Auditor/ Controller's office. Transfer the levy data (upon completion of the public hearing and Adoption of the Resolution to Levy) to an electronic file compatible with the County computer system to be used for entering individual parcel levy amounts to the tax roll as provided by the City. 7. File the electronic collection file, the resolution to levy and other necessary documentation required by the County Auditor/Controller's Office for collection of the charges. 8. Research the exceptions, update parcel number changes, and report the revised parcels and updated levy amounts to the City upon receipt of a County parcel exceptions list. As necessary, prepare additional County -required correspondences for the City relating to the correction or removal of assessments to the County tax roll (tax bill change requests). 9. Furnish one (1) bound copy and computer disk of the Final "Assessment Roll" to the City. 16 Willdan Financial Services 10. Act as primary contact (at the discretion of the City) to answer property owner questions regarding the assessment. Annual Administration of Community Facilities District Administration (1982 Act) The following outlines the steps necessary to annually update the City's Coastal Sage and Scrub CFD (approximately 25 parcels) on the tax roll, in order to levy the charge for FY's-2020- 2021, 2021-2022, & 2022-2023. All costs associated with CFD administration are fully recoverable, either through the special tax levy or payment by requestor for special services. 1. Obtain a digital copy of the existing database from the County of Los Angeles Assessor and update the data. Compare with the previous fiscal year tax rolls to determine any discrepancies and report to City. 2. Maintain and periodically update an electronic database containing parcel basis data and annual special tax levy amounts by Assessor's Parcel Number (APN). 3. Annually calculate and apportion the special taxes as specified in the Rate and Method of Apportionment of Special Tax (RMA). 4. Prepare, if necessary, staff report and/or an annual resolution that establishes the budget for the fiscal year and application of the special tax to be submitted to the County, including the special tax summary for the fiscal year. 5. Attend up to two (2) City meetings, public hearings and/or staff meetings. Willdan will also be available to answer any questions requested by staff. Typically, we attend the public hearing; but we have, upon request, included an additional meeting to address budget issues with staff, or for adoption of the Resolution of Intention. 6. Provide special tax levies for each parcel by APN to the County Auditor/Controller's Office in the media, format and configuration required by the County for placement on the annual property tax roll. 7. Research parcel exceptions provided by the County and, if possible, resubmit installment amounts that are unapplied by the County Auditor/Controller's Office. 8. Provide a toll -free number to field inquiries from City staff, property owners, and other interested parties regarding special tax installments and related information. 9. Monitor delinquencies each February and May and submit periodic delinquency reports to the City. 10. Prepare an Annual Special Tax report. This report will include: • The identification of CFD administrative cost items eligible for recovery by the City; • The review of fund balances to identify any surplus funds; • Prepare and mail invoices (handbills) to all property owners whose proposed annual tax for their parcel could not be applied to the County tax roll (parcels for which the County does not generate a tax bill). These invoices would be provided in two (2) installments, similar to the County tax bills, and would be payable directly to the City; • The delinquency summaries; and • A cover letter to the report providing related recommendations or issues, if any. The cover letter is not intended to be a component of the report. 17 Wlldan Financial Services 11/16/2020 Print Staff Report On December 19, 2019, staff received proposals from four consulting firms: Consultant IF Location DTA IF Newport Beach NBS Temecula WEBB Municipal Finance Riverside WILLDAN Financial Services Temecula The proposals were reviewed by staff for completeness, relevant experience, scope of services provided, qualifications of proposed project team, proposed schedule and cost-effectiveness. After review, staff determined that the proposal from Willdan Financial Services (Willdan) was the most comprehensive and demonstrated the best understanding of the information and recommendations to be included in the Assessment Engineering Services. Willdan has extensive experience working with public agencies located within the County of Los Angeles, as well as the Los Angeles County Auditor/Controller's Office, the Assessor's Office and Tax Collector. Willdan has more than 30 years of experience working with these offices and is very familiar with their procedures and practices. Additionally, Willdan levies to the Los Angeles County Auditor/Controller's Office on behalf of 36 different agencies. Willdan was also the previous consultant providing Assessment Engineering Services to the City of West Covina and thus is familiar with the City's procedures and practices. The contract also includes a cost of potential Proposition 218 Balloting fees for an individual assessment district (ranging from $3,795 to $6,325 depending on the district). Staff is recommending that the City Council approve a professional services agreement with Willdan for the not -to -exceed cost of $140,557.50 for Comprehensive Assessment District Engineering Services. OPTIONS: The City Council has the following options: 1. Approve Staffs recommendation; or 2. Provide alternative direction. Fiscal Impact FISCAL IMPACT: The total approved budget for this project is $140,557.50 with funding coming from Operating and the Capital Improvement Program (Account Nos. 184.61.4145.6110,186.61.4145.6110, 187.61.4145.6110, 188.61.4133.6110 and 189.61.4133.6110). There are sufficient funds available in this account to cover Willdan's contract amount. Attachments Attachment No. 1 - Professional Services Agreement with Willdan Financial Services CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL Enhance City Facilities and Infrastructure GOALS & Respond to the Global COVID-19 Pandemic OBJECTIVES: https://destinyhosted.com/print_ag_memo.cfm?seq=706&rev_num=0&mode=Extemal&reloaded=true&id=93782 2/2 11. Prepare "Notice of Special Tax" as required by the California Government Code, Sections 53340.2(b) and 53341.5, as amended. The fee for this service is $15 per notice and is to be paid by the requestor. Continuing Disclosure Services The following outlines the work plan required to provide annual disclosure services for the CFD's as part of the annual administration. For the current fiscal year, 2019/2020, Wilidan will prepare and disseminate the annual disclosure report by the disclosure due date deadline as dictated in the Continuing Disclosure Agreement. Willdan will perform the following services outlined below. • Review pertinent documents and data related to debt issuance. • Collect requisite information from trustee, fiscal agent, state and county agencies, and others, as applicable. • Prepare a draft Annual Financial Information Statement for District's review. • Finalize and disseminate disclosure reports to EMMA, the Willdan website, the appropriate State Information Depository, and other parties as required. Prepare, upon notification by the District and/or if Willdan becomes aware of such an occurrence, Notices of Occurrence of Listed Events. Annual Administration of Municipal Improvement Districts (1911 Act) Maintenance District No. 1 (845 parcels) and Maintenance District No. 2 (723 parcels) tax rolls to levy assessments for FY's 2020-2021, 2021-2022, & 2022-2023. 1. Obtain a digital copy of the existing database from the County of Los Angeles Assessor and update the data. Compare with the previous fiscal year tax rolls to determine any discrepancies and report to City. 2. Maintain parcel database, including Assessor Parcel Number, property ownership, parcel amortization schedule, and payment collection information. 3. Prepare, if necessary, staff report and/or an annual resolution that establishes the rates for the fiscal year and application of the assessment to be submitted to the County. 4. Attend up to two (2) City meetings, public hearings and/or staff meetings. Willdan will also be available to answer any questions requested by staff. 5. Provide assessment levies for each parcel by APN to the County Auditor/Controller's Office in the media, format and configuration required by the County for placement on the annual property tax roll. 6. Research parcel exceptions provided by the County and, if possible, resubmit installment amounts that are unapplied by the County Auditor/Controller's Office. 7. Provide a toll -free number to field inquiries from City staff, property owners, and other interested parties regarding special tax installments and related information. 8. Monitor delinquencies each February and May and submit periodic delinquency 18 Willdan Financial Services reports to the City Client Responsabilities — Annual Administration Willdan will rely on obtaining the following information from the City in order to properly administer the City's 1972 Act, Sewer Service Charge, CFD and 1911 Act Districts. • Publishing the public hearing notices in the local newspaper and posting notice of the public hearing, as required by law. • Updated boundary diagram (if an updated diagram is required). • Electronic listing of new/changed exemption information applicable to the sewer charges. • An annual listing (preferably electronic) of water usage to be used for calculating sewer charges, if needed. • City attorney review of all resolutions for form and content. • Copies of staff reports; scheduling of agenda items; resolutions; and other legal notices connected with the annual levy, as may be required for Willdan to complete the scope of work outlined. • Copies of the City ordinance establishing the charges or changes to the ordinance. • Annual budget information, including estimated fund balances. • An electronic listing of all parcels within each district for the most recent fiscal year, with the corresponding parcel information necessary to calculate the assessments. • Certified copies of the resolution(s) or other documentation required by the County for submittal of the annual levy. • The City will assist Willdan in obtaining pertinent development information, if needed. Proposition 218 Services (Optional) Develop Proposed Budget and Assessments Objective: Review the annual budget prepared by the City and the corresponding assessment rates that are structured to achieve maximum cost -to -benefit equity for each property. The purpose of this review is to ensure the long-term financial stability of the improvements. Description: Willdan will review the budget provided by the City, which is also included it the current fiscal year's Engineer's Report. This budget should incorporate not only the annual maintenance costs but also estimates of periodic maintenance expenditures; long-term repair and rehabilitation costs; applicable capital improvement expenditures; administration expenses; and any other funding deemed appropriate to provide the improvements. Deliverables: Any issues discovered will be shared with the City via email. Prepare Modified Engineer's Report Objective: Prepare modified Engineer's Report for only those Districts balloted utilizing the annual Engineer's Report. Description: Prepare a modified Engineer's Report. This report will include the elements listed below. • Plans and specifications that describe the area of special benefit, the proposed assessment, and the improvements. • Method of apportionment that outlines the special benefit conferred on properties from the improvements, as well as calculations used to establish each parcel's proportional special 19 Willdan Financial Services benefit assessment; plus, a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years. • Budget that outlines the costs and expenses to provide, service and maintain the improvements, including authorized incidental expenses. • Assessment diagram that identifies the boundaries of the District. • Assessment roll that contains each of the Assessor Parcel numbers that comprise the District and the proportional new maximum assessment. • Affidavit stating that a professional engineer has prepared the report. Deliverables One (1) draft Engineer's Report for review by City staff. After receiving all edits and comments from City staff, Willdan will prepare and submit a final draft of the Report for Council action. Prepare Resolutions and Staff Report Objective: Prepare resolutions and staff reports for the Intent Meeting and Public Hearing. Description: We will forward all resolutions and staff reports to the City for review prior to the City Council meeting agenda deadline. We anticipate that the following resolutions will be necessary. Intent Meeting (two [2] resolutions): • Resolution Initiating Proceeding, and • Resolution of Intention (preliminarily approves the proposed assessments outlined in the Engineer's Report; sets the Public Hearing date; and calls for mailed ballots). Public Hearing (two [2] resolutions): • Resolution declaring results of the balloting; and • Resolution adopting the Engineer's Report, confirming the assessment diagram and assessments. Deliverables A total of four (4) resolutions will be required for City Council approval. The first two are for the initial City Council meeting. The second set of resolutions is specific to the Public Hearing. Draft resolutions will be delivered to City staff for review and comment prior to final versions being prepared and delivered to the City for the City Council agenda packet. Create Mailing Database Description: Utilizing the parcel levy database developed for annual administration tasks, create a mailing database containing parcels of real property that will be subject to the increased assessments. As necessary, we will incorporate information into the database related to the assessments that will need to be included on the notices as property -specific data. This data will be incorporated into the notices using mail merge techniques. The database developed in this task will be the source for property owner information and related assessment data that will be included in the notices. Deliverables: Provide the City with a copy of each mailing database. Prepare Notices and Ballots Objective: Prepare the necessary notice of Public Hearing and the assessment ballot, in compliance with Proposition 218. Description: Prepare the required notice of Public Hearing and the assessment ballot to 20 Willdan Financial Services be mailed to affected property owners. Draft copies will be sent to City staff for review and comment prior to finalization of the documents. The drafts of the notice and ballots will be consistent with and in a format widely used throughout the state for such Proposition 218 proceedings. This documentation will be tailored as needed so as to specifically address the issues being balloted and the assessments for each individual parcel. Deliverables: The draft notice and ballot for each district will be delivered to City staff for review and comment prior to the final versions being prepared for mailing. Print and Mail the Notices and Ballots (Mailing House) Objective: Print and mail the approved notice and ballot. Description: Upon adoption of the resolutions during the Intent Meeting, we will print and assemble the notice and ballot for mailing. The notice and ballot will be double -sided, in order to save money on postage costs. A return #9 envelope will be included for the property owner to mail back the assessment ballot to the City Clerk The notice and ballot will be delivered via first class mail. The ballot will contain instructions to return directly to the City Clerk and to not open until the close of the Public Hearing. Mailing of the notice and ballot will be completed a minimum of 45 days prior to the Public Hearing date as set in the resolutions. Please note: the direct cost for the printing, processing and mailing of the notices and ballots is not included in our fee. If the City desires for Willdan to coordinate this particular aspect of this task, a fee will be provided to City staff for review and approval. Deliverables: Notices and ballots mailed to the property owners of record subject to the proposed new/increased assessment. Public Hearing and Tabulation Objective: Attend the Public Hearing to answer questions and assist the City Clerk with an independent tabulation of the returned assessment ballots and protests. Description: A Willdan representative will attend the Public Hearing to be available to answer questions and to assist the City Clerk with an independent final tabulation of the returned ballots and protests. Upon the close of the Public Hearing, the City Clerk will be directed to open the ballots and protests received, and upon completion of the tally, announce the results. The ballots and protests may be opened and tallied by the City Clerk with the assistance of the consultant and must be opened in a public venue. Ballot results will be tallied in a database that identifies the "yes" votes, "no" votes, and sums the accumulative totals of each for determination of the protest results. Ballots that are deemed invalid, (not signed or desired vote cannot be determined) will be identified and reviewed with the City Clerk or designee before the ballot results are finalized. Meetings: One (1) City Council session for the Public Hearing. Deliverables: Tabulation results. Client Responsibilities — Proposition 218 Services • Provide pertinent budget information that will assist in developing the district budget 21 Willdan Financial Services and benefit rationale. • Arrange for any required publications notice of Council meetings or Public Hearings the local newspaper. Review the draft reports and presentation materials before the final documents are prepared. This review is typically performed by City staff but may include the City Attorney. Requested changes shall be submitted to Willdan in writing. It is important to note that while performing each service outlined herein, Willdan will rely on the validity and accuracy of the City's data and documentation to complete our analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy, and that we will not be responsible for any errors that result from inaccurate data provided by the client or a third party. 22 Willdan Financial Services EXHIBIT B FEE SCHEDULE Maintenance District W. 4 $ 3,992-50 $ 3,992.50 $ 3,992.50 Maintenance District ND. 6 $ 2,320.00 $ 2,320.00 $ 2,320.00 tvhntenance District No. 7 S 2,345.00 S 2,345.00 $ 2,345.00 Citywide Lighting and Maintenance District $ 7,177.50 $ 7,177.50 S 7,177.50 Total $15,835.00 S15,035.00 $15,935,00 Expenses s 550.00 Total Cost S 3,M.50 Maintenance District City of West Covina No. 6- Annual Adrunistration S-ervices C. Gam 5. Hemardez R. Quaid District Task 1 Project Co-Prq-t QA QC Manager Manager Manager Admin Anatyst Total $145 $145 sm $100 Haas Com R"m Methodolgy & Prepare Repot 1.00 0.50 0.50 2.00 4.OD $ 517.50 Prepare Stff Repots 0.50 0.00 0.50 2.00 3.00 372.50 Attend Intent Meeting & Public Hearing 1.00 0.00 0.00 1.00 2.00 245.00 Update & Maintain Parcel Ley Database 1.00 0.00 0.50 2.00 3.50 445.00 Prepare & Present Preliminary Assessment Roll 0.50 0.00 0.00 1:00 1.50 172.50 Prepare & Submit Assessmems to County 1.00 0.50 0.50 2.00 4.00 517.50 .Subtotal Wdldan Labor Coats 5.001 1.001 2.001 10.00 I&OGI $ 2,270.00 Expenses TotlCoo 5 50.00 $ 2,320.00 23 Willdan Financial Services Expenses $ 75.00 Total Coo $ 2,345.00 City of West Covina Citywide Lighting & Maintenance District C. no - Annual 5. Hernandez Administration R Quaid Services Task 1 Project Manager Co -Project Manager (WOC Manager District Admin Analyst Total $145 $145 $200 $100 Hours I Cost Review Mettlbdolgy & Prepare Report 200 0.50 1.50 6.00 10.00 $ 1,26250 Prepare Staff Reports 0.50 0.00 0.50 2.00 3-00 372.50 Attend Intent Meeting & Public Hearing 1.00 0.00 0.00 1.00 2.00 245.OD Update & Maintain Parcel Levi Database 2.00 0.00 1.00 6.00 9-00 1,090.00 Prepare & Present Preliminary Assessment Roll 1.00 0.00 0.00 400 5.00 545.00 Prepare & Submit Assessments to County 2.00 0.50 1.00 8.00 9.50 1,162.50 8.60 1.00 4.00 2650 38.50 $ 4,677.60 Subtotal Wiltdan Labor Costs Expenses Total Cost Citywide Sewer Service Charges $ 7,177.5D $ 7,177.50 S 7,177.50 Total $ 7,177.50 $ 7,177.50 $ 7,177.50 $ 2,500.00 $ 7,177.60 West Covina CitywideCity of r•s C. Gano - Annual Adirninistratim S. Hemandez Services R (]uaid District Task i Project Manager Co -Project Manager OAIOC Admin Total Manager Analyst $145 $145 $200 $1 DO Hours cost Review Mettadolgy & Prepare Report ZOD D.50 1.50 fi.DD 1D.00 S1,262.50 Prepare Staff Reports D.5D D.00 0.50 2.00 3.00 372.50 Attend Intent Meeting & Public Hearing 1.00 0.00 0.00 1.00 2.00 245.OD Update & Maintain Parcel Levi Database 2.00 0.00 1.0o 6.00 0.00 1,000.00 Prepare & Present Preliminary Assessment Roil 1.GD 0.00 0.00 4.00 5.00 545.00 Prepare & Submit Assessments to County 2Op 0.50 1.00 8.00 9.50 1, 162.5D 8151)1 1.001 4.DOI 25.001 38.50 $4,677.5D Subtotat Wdldan Labor Casts Expenses Total Cast $2,5W.00 $7,177.50 24 Willdan Financial Services Coastal Sage and Scrub Community Facilities District $ 5,130.00 $ 5,130.00 $ 5.130.00 Community Facilities District No. 1989-1 $ 6,680.00 $ 6,680.00 $ 6,680.00 Total $11,810.00 $ 11,810.00 $ 11,810.00 Coastal Sage and Scrub CornirrainityFacilities City of Vikst vina 1r4 t ict- Annual Administration Servims C. Gano S. Hemandi R. Quaid District Task 1 Project Manager Co -Project Manager QAIQC Manager Admin Analyst TMaI $145 $200 $100 Hours cost $145 Review McOx lolgy 2.00 1.00 1.00 4.00 8.00 $ 1,035.00 Prepare Staff Reports 1.DD 0.00 0.50 2.00 3.50 445.00 Attend Intent Meeting & Public Heating 1.00 0.00 0.00 1.00 2.00 245.00 Acquire, Update & Maintao Parcel Levy Database 3.00 0.00 1.50 6.00 10.60 1.335.00 Prepare & Present Prekminary Rot 200 0.00 0.00 2.00 4.00 490.00 Prepare & Submit Special Taxes to County 3.00 1.tX1 1.50 6.00 11-50 1,480.00 Subtotal WAIdan Labor Costs 12.00 200 4.50 21.00 39.50 $ 5A30.00 Expenses Total Cost S 100.00 $ 5A30.00 Community Facilities DistrictCity of West C. Garw Covina S. Fle1. ez R QuaidLAdidn Task 1 Project Manager Co -Project Manager QAICC Manager$146 Total $145 S2D0Hours Cost Reeiew Methodology 2.00 1.00 1.00 8.D0 S 1,035.00 Prepare Staff Reports 1,00 0.D0 0.00 150 44500 Attend Intent Meeting & Public Hearing 1.00 0.00 0.00 200 245.00 Acquire, Update & Maintain Parcel Levy Database 3.00 0.00 1.00 10.50 1,335.00 Prepare B Present Prebrtunary RW 200 0.00 ODo 4.Otl 490:00 Prepare & Submit Special Taxes to County 3.00 1.00 1.00 11.50 1,490.00 12.00 2.00 4 A0 39:50 $ 5,030.00 Subtotal Wiltdan Labor Costs Expenses Annual Continuing Disclosure Dissemination Fee Total Cost Maintenance District No. 1 Maintenance District No. 2 Total $ 100.00 $ 1,450.00 $ 100.00 8 6,680.00 $ 3,187.50 $ 3,187.50 $ 3,187.50 5 2,542.50 $ 2,542.50 $ 2,542.50 S 5,730,00 S 5,730.00 S 5,730.00 25 Willdan Financial Services Maintenance DistrictCity of West Covina C. Gano S. Hernandez R Quid District T k 1 Project Manager Co -Project Manager QNOC Manager Admin Analyst Total $145 $145 $200 $900 Hours Cost Re Mettioddgy 1.50 0.50 1.00 3.00 8A0 $ 79100 Prepare SW Reports 0.50 0.00 0.50 2.01) 3.01) 372.50 Attend Intent Meeting 1.00 0.00 0.00 1.00 2.00 245.00 Acquire, Update & Maintain Parcel LeW Databse 1.50 ODD 0.50 3.00 5.00 017.50 Prepare & Present Preliminary Rao 0.50 0A0 O.OD 1.110 1.50 172-50 Prepare & Submd Special Taxes to C-Ay 1.50 0.50 1.OD 3.00 O-W �0.00 850 1.00 3.00 13.00 23.50 $ 2,987.50 Subtotal Willdan Labor Cmta Expenses Total Coo $ 200.co $ 3,187.50 City of West Covina C. Gano S. Hernandez R Quaid OiSt ict Task 1 Projeot Manager Co -Project 'Manager QAlOC Admin Manager Analyst Total $145 $145 sm $100 Haas Cost Review Methoddgy 1.00 0.50 Q5D Z00 4.00 $ 517.511 Prepare StaFRepons 050 0.00 0.50 2m 3.00 37250 Attend Intent Meeting 1.00 0.00 0.00 1.131) 2.00 245.00 Acquire. Update & Maintain Parcel Levy Database 1.00 0.00 0.50 2.00 3.50 445.D0 Prepare & Present Prdir inary Rd1 Q50 0.00 0.00 1.00 1.5D 17Z50 Prepare & 5rbrnit Special Taxes to Carrty 1.511 0.50 0.50 2.00 4.50 590.00 Sbtotal W711dan Labor Coal. &50 1.00 20D ig.OD 2,34250 Expenses Total Cost $ 200-00 $ 2,54250 Citywide Lighting and Maintenance District $ 6,325.00 Maintenance District No. 4 $ 5,005.00 Maintenance District No. 6 $ 3,795.00 Maintenance District No. 7 $ 3,795.00 Total $ 18,920.00 26 Willdan Financial Services Citywide Lighting & Maintenance City of West Covina District - Proposition S. Reynolds 218 Balloting C. Gala Co -Senior R. Quaid District Total Proposition 218 Balloting Project Pmject QAIQC Admin Manager Manager Manager Analyst S145 $165 S200 $100 Hours cost Develop Proposed Budget & Assessments 1.00 1.00 0.50 4.00 6.50 $ 810.00 Prepare Modified Report 100 0.00 0.50 4.00 5.50 645.00 Prepare Resolution and Staff Reports 1.00 0.00 0.50 3.00 4.50 545.00 Attend Public Hearing 1-00 1.00 0.00 1.00 3.00 410.00 Prepare Notice & Ballot & Mailing Database 2.00 1.00 0.50 6.00 9.50 t,155.00 Ballot Tabulation 4.00 4.00 0.00 4.00 12.00 1,640.00 Certify Tabulation results 200 200 0.00 2.00 6.00 820.00 Subtotal Willdan Labor Costs 1 12.00 9.00 2.00 24.00 47.00 S 6,025.00 Expenses Total Cost 300.00 6,325.00 Maintenance District City of West Covina No- 4 - Proposition 218 Balloting C. Gano S. Reynolds Co- R, Quaid District Proposition 218 Balloting Project Senior Project QA/QC Manager Manager Manager Admin Analyst Tel $145 $165 $200 $100 Hers Cost Detelop Proposed Budget & Assessments 1.00 1.00 0.50 3.00 5.50 $ 710.00 Prepare Modified Report 1.00 0.00 0.50 3.00 4.50 $ 545.00 Prepare Resolution aril Staff Reports 1.00 0.00 0.50 2.00 3.50 S 445.00 Attend Public Hearing 1.00 1.00 0.00 1.00 3-00 $ 410.00 Prepare Notice & Ballot & Mailing Database 200 1.00 0.50 S.DO 8.50 $ 1,055.00 Ballot Tabulation 200 200 0.00 2.00 6.00 $ 820.00 Gamy Tabulation results 200 200 0.00 200 8.00 $ 820.00 Subtotal Willdan Labor Costs 10.00 7.00 200 18.00 3700 $ 4,805.00 Ex penses Total Cost 200.00 5,00&00 Landscape Maintenance City of West District No. C. Gano Covina 6 - Proposition S- Reynolds Co- 218 Balloting R. Quaid District Proposition 218 Balloting Project Manager Senior Project Manager ONQC Adman Manager Analyst Total $145 $165 $200 $too tours Cast Develop Proposed Budget & Assessments 1.00 1.00 0.60 2.00 4.60 $ 610.00 Prepare Modfied Report 1,00 0.00 0.50 Zoo 3.50 445.00 Prepare Resolution and Staff Reports 0.60 0.00 0.50 1.00 200 27250 Attend Public Heating 1.00 too 0.00 1.00 3.00 410.00 Prepare Notice & Ballot & Mailing Database 1.00 0.50 0-50 3.00 5.00 627.50 Ballot Tabulation 2.00 2.00 0.00 2.00 6.00 820.00 Certify Tabulation results t.00 1.00 0.00 1.00 3.00 410.00 7.50 5.50 200 12-001 27.DOI $ 3,595.00 Subtotal Willdan Labor Costs Expenses Total Cost 200.00 3.795.00 27 Willdan Financial Services ATTACHMENT NO. 1 CITY OF WEST COVINA PROFESSIONAL SERVICES AGREEMENT WITH WILLDAN FINANCIAL SERVICES FOR ASSESSMENT ENGINEERING SERVICES THIS AGREEMENT is made and entered into this 17th day of March. 2020 ("Effective Date"), by and between the CITY OF WEST COVINA, a municipal corporation ("City"), and "Wilidan", a California Corporation ("Consultant"). WITNESSETH: A. WHEREAS, City proposes to utilize the services of Consultant as an independent contractor to City to provide Assessment engineering Services, as more fully described herein; and B. WHEREAS, Consultant represents that it has that degree of specialized expertise contemplated within California Government Code Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated, except that if Consultant is required to but does not yet hold a City business license, it will promptly obtain a business license and will not provide services to the City until it has done so; and C. WHEREAS, City and Consultant desire to contract for the specific services described in Exhibit "A" and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and D. WHEREAS, no official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement. E. WHEREAS, Consultant responded to the City's Request for Proposals dated December 19, 2019, incorporated via this reference as if fully set forth herein, and Consultant's response to the Request for Proposals was a material inducement to the City ultimately entering into this agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONSULTANT 1.1. Scope of Services. Consultant shall provide the professional services described in the Scope of Services attached hereto as Exhibit "A," incorporated herein by this reference. 1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant's performance of this Agreement. Consultant shall keep itself informed of State and Wilidan Financial Services Landscape Maintenance City of West District No. C. Geno Covina 7 - Proposition S. Reynotds Co- 218 Balloting R. Quaid Distdct Proposition 218 Balloting Project Manager Senor Project Manager QALQC Admin Manager Analyst Total $145 $165 $200 $100 Horns Cast Dmlop Proposed Budget d Assessments 1.00 1.00 0.60 2.00 4.50 $ 610.00 Prepare Modified Repot 1.00 0.00 0.50 2.00 3.50 445.00 Prepare Resolution and Staff Reports 0.50 0.00 0.50 1.00 200 27250 Attend Public Hearing 1.00 1.00 0.00 1.00 3.00 410.00 Prepare Notice & Ballot & Mailing Database 1.00 0.50 0.60 3.00 5.00 627.60 Ballot Tabulation 2.00 200 0.00 2.00 6.00 820.00 Certify Tabulafion resWts 1.00 1.00 0.00 1.00 3.00 410.00 Subtotal Willdan Labor Costs 7.50 5.50 200 12001 27.001 $ 3,595.00 Expen Total Cost Group Manager $210 Principal Engineer and Principal Consultant $200 Senior Project Manager $165 Project Manager $145 Senior Project Analyst $130 Senior Analyst $120 Analyst $100 Property Owner Service Representative $55 Support Staff $50 200.00 3,79i00 28 Willdan Financial Services Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. City officers and employees shall not be liable at law or in equity for any claims or damages occurring as a result of failure of the Consultant to comply with this section. 1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the reasonable satisfaction of the City. Evaluations of the work will be conducted by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to: (a) Meet with Consultant to review the quality of the work and resolve the matters of concern; (b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or (c) Terminate the Agreement as hereinafter set forth. 1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. 1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical or mental disability, medical condition, genetic information, pregnancy, marital status, sex, gender, gender identity, gender expression, sexual orientation, or military or veteran status, except as permitted pursuant to Section 12940 of the Government Code. 1.6. Non -Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.7. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement. 1.8 Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade Willdan Financial Services secrets, as that term is defined in California Government Code Section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the court. 2.0. COMPENSATION AND BILLING 2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit "B," attached hereto and made a part of this Agreement (the "Fee Schedule"). Consultant's total compensation shall not exceed One Hundred Forty Thousand Five Hundred Fifty Seven Dollars and Fifty Cents ($ 140,557,50). 2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the scope of services unless the City, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. Should the City request in writing additional services that increase the Scope of Services, an additional fee based upon the Consultant's standard hourly rates shall be paid to the Consultant for such additional services. Such increase in additional fees shall be limited to 25% of the total contract sum or to the maximum total contract amount of $25,000, whichever is greater. The Department Head or City Manager is authorized to approve a Change Order for such additional services. 2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than once a month. Said invoice shall be based on the total of all Consultant's services which have been completed to City's sole satisfaction. City shall pay Consultant's invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as "Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoices. 2.4. Records and Audits. Records of Consultant's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after the termination or expiration of this Agreement. 3.0. TIME OF PERFORMANCE 3.1. Commencement and Completion of Work. Unless otherwise agreed to by the parties, the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the Project Schedule approved by City as set forth in Exhibit 'A," attached hereto and incorporated herein by this reference. The Project Schedule may be amended by mutual agreement of the parties. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a 3 Willdan Financial Services party. If a delay beyond the control of the Consultant is encountered, a time extension may be mutually agreed upon in writing by the City and the Consultant. The Consultant shall present documentation satisfactory to the City to substantiate any request for a time extension. 4.0. TERM AND TERMINATION 4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of thirty six months, ending on March 17, 2023, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least fifteen (15) days prior written notice to Consultant. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City. If the City suspends, terminates or abandons a portion of this Agreement such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement. If the Consultant defaults in the performance of any of the terms or conditions of this Agreement, it shall have ten (10) days after service upon it of written notice of such default in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement. The City also shall have the right, notwithstanding any other provisions of this Agreement, to terminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement, immediately upon service of written notice of termination on the Consultant, if the latter should: a. Be adjudged a bankrupt; b. Become insolvent or have a receiver of its assets or property appointed because of insolvency; C. Make a general assignment for the benefit of creditors; d. Default in the performance of any obligation or payment of any indebtedness under this Agreement; e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or f. Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs. 4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the effective date of the City's written notice of termination, within forty-five (45) days after the effective date of the notice of termination or the final invoice of the Consultant, whichever occurs last. Compensation for work in progress shall be prorated based on the percentage of work 4 Willdan Financial Services completed as of the effective date of termination in accordance with the fees set forth herein 4.4, Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of the effective date of the notice of termination, at no cost to City. 5.0. INSURANCE 5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, with a current A.M. Best's rating of no less than A:VII, and approved by City: (a) Broad -form commercial general liability, including premises -operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than Two Million Dollars ($2,000,000.00), combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit. (b) Business automobile liability for owned vehicles, hired, and non -owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per accident for bodily injury and property damage. (c) Workers' compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Consultant agrees to waive, and to obtain endorsements from its workers' compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers' compensation insurance policies. By execution of this Agreement, the Consultant certifies as follows I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers' Compensation or to undertake self-insurance before commencing any of the work. The Consultant shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of this Agreement by the City. The City, its officers and employees shall not be responsible for any claims in law or equity occasioned by failure of the consultant to comply with this section. 5 Willdan Financial Services (d) Professional errors and omissions ("E&O") liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence or claim, and Two Million Dollars ($2,000,000.00) aggregate. Architects' and engineers' coverage shall be endorsed to include contractual liability. If the policy is written as a "claims made" policy, the retroactivity date shall be prior to the start of the work set forth herein. Consultant shall obtain and maintain said E&O liability insurance during the life of this Agreement and for five (5) years after completion of the work hereunder. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the effective date of this Agreement, Consultant shall purchase "extended reporting" coverage for a minimum of five (5) years after completion of the work. If the Consultant maintains higher limits or has broader coverage than the minimums shown above, the City requires and shall be entitled to all coverage, and to the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 5.2. Endorsements. The insurance policies are to contain, or be endorsed to contain, the following provisions: (a) Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant. (b) Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (c) Primary Coverage: The Consultant's insurance coverage shall be primary insurance as respects the City of West Covina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and not contributing with the insurance provided by this policy. (d) Waiver of Subrogation: Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. (e) Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, its officers, officials, agents, employees, and volunteers. Willdan Financial Services (f) Coverage Applies Separately: The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible or self -insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. 5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. 5.5. Non -limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement. Ci11 fir]=Ql=IA%a ZIGILT&I[s7kIR 6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. 6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Key Personnel. It is the intent of both parties to this Agreement that Consultant shall make available the professional services of Charlene Palmer, Principal, who shall coordinate directly with City. Any substitution of key personnel must be approved in advance in writing by City's Representative, 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile, Email or by U.S. mail. If by U.S. mail, it shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile or by Email; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. Wlldan Financial Services