12/07/2021 - AGENDA ITEM 5 - CONSIDERATION OF AWARD OF A REQUEST FOR PROPOSALS FOR ASSESSMENT ENGINEERING SERVICESAGENDA ITEM NO. 5
WEST" ON
DATE: December 7, 2021
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 AWARD OF A REQUEST FOR PROPOSALS FOR
ASSESSMENT ENGINEERING SERVICES
RECOMMENDATION:
It is recommended that City Council:
1. Award contract for Request for Proposals ("RFP") No. 11-013 for Assessment Engineering Services to
Willdan Financial Services;
2. Authorize the City Manager to negotiate and execute a Professional Services Agreement with Willdan
Financial Services for $145,669;
3. Authorize 15% of the awarded contract amount as contingency allowance to be used, with the City
Manager's approval, for additional services, if necessary; and
4. Adopt the following Resolution to amend the FY2021-22 Budget:
RESOLUTION NO.2021-114 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL
YEAR COMMENCING JULY 1, 2021, AND ENDING JUNE 30, 2022 (ASSESSMENT
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, streetlights, 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, streetlights, 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 under the 1972 Act, each maintenance 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.
A full study is needed to ascertain what a proper level of maintenance would cost and explore how to properly
set the assessment rates accordingly.
DISCUSSION:
A full evaluation of the assessment districts is critical to address the maintenance needs and assessment rates
of the seven districts. It has been as far back as 2009 since a comprehensive evaluation has been conducted for
some districts. With costs going up and some district assessment rates remaining stagnate, proper maintenance
has suffered. While a few districts' assessment rates have increased by CPI, an evaluation is still warranted
to ensure district needs are properly being addressed. In order to properly address the ongoing maintenance
needs of the districts including capital improvements, a comprehensive review of the scope of services and the
corresponding costs should be conducted.
Most of the districts (LMD 1, LMD4, LMD6, and LMD7) have not increased assessment rates in the last
twelve (12) years, which has led to reduced services and increased concerns by residents. LMD2
assessment rates have not increased in the last five (5) years. Maintenance districts are supposed to be self -
funded and not rely on a general fund contribution. A full study is needed to ascertain what a proper level of
maintenance would cost and explore how to properly set the assessment rate accordingly. If rates are to be
increased, the City will be required to comply with the requirements of Proposition 218. In order to complete
this process in time to implement increases by next fiscal year, it is critical that the evaluation assessment
begin as soon as possible.
On September 27, 2021, 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 evaluate and provide recommendation regarding the assessment rates and tax rolls for the City's existing
Citywide Sewer Service Charges, established pursuant to Section 38902 of the Government Code, and the
City's four existing Special Assessment Districts: Landscape Maintenance District Nos. 4, 6, 7, and Citywide
Lighting and Maintenance District, established pursuant Lighting and Landscaping Act of 1972 and
Proposition 218.
On October 21, 2021, staff received proposals from two consulting ferns: Willdan Financial Services and
Webb Municipal Finance, LLC.
District/Service
Webb
Municipal
Finance
Willdan
Evaluation of Assessment
29,500
25,130
Proposition 218 Ballot Process
180,000
18,920
SUBTOTAL ONE-TIME COSTS
209,500
44,050
Year 1 Administration
47,000
33,873
SUBTOTAL YEAR 1
256,500
77,923
Year 2 Administration
39,000
33,873
.Year 3 Administration
39,000
33,873
TOTAL CONTRACTI
$334,500
$145,669
The proposals were reviewed by staff for completeness, relevant experience, scope of services provided,
qualifications of proposed project team, proposed schedule and cost-effectiveness. The proposal from Willdan
Financial Services (Willdan) is the most cost-effective proposal.
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.
It is important to note that the City currently is contracted with Willdan to prepare the annual reports for the
districts. However, current services do not include an extensive evaluation of the districts needs with the
corresponding rate increases. Therefore, staff released the RFP for the evaluation services. In response to the
RFP, Willdan has proposed a separate team to conduct the evaluation of assessment rates. Additionally,
Willdan is prepared to commence work immediately following award in order to meet the City's timeline.
OPTIONS:
The City Council has the following options:
1. Approve Staffs recommendation; or
2. Provide alternative direction.
Prepared by: Stephanie Sikkema, Assistant Finance Director
Fiscal Impact
FISCAL IMPACT:
Staff recommends that City Council authorize the City Manager to negotiate a professional services
agreement with Willdan for Comprehensive Assessment District Engineering Services. The initial proposal
totals $145,668 which includes three years of annual maintenance ($33,873 annually), a one -rime cost for an
assessment evaluation ($25,130), and a potential one-time cost for Proposition 218 Balloting ($18,920).
However, the initial proposal did not include an assessment evaluation for Maintenance Districts No. 1 and 2.
These items will need to be reconsidered and negotiated prior to final execution.
There are sufficient funds available across the district funds to cover the total contract amount of $145,669,
however; a budget amendment is necessary to allocate funds for FY2021-22.
District/Service
Fund
FY2021-22
Amount
Estimated
Available
Fund
Balance
Maintenance District No.1
181
3,188
3,241,120
Maintenance District No. 2
182
1 2,543
791,738
Maintenance District No. 4
184
15,648
2,184,727
Maintenance District No.6
186
10,115
261,019
Maintenance District No. 7
187
10,140
406,166
Citywide Lighting & Maintenance
District
188
20,983
1,518,702
Citywide Sewer Service Charge
189
10,178
5,704,777
Coastal Sage and Scrub CFD
183
5,130
446,297
TOTAL FY2021-22
$77,923
Attachments
Attachment No. 1 - Resolution No. 2021-114
CITY Enhance City Image and Effectiveness
COUNCIL Achieve Fiscal Sustainability and Financial Stability
GOALS &
OBJECTIVES:
ATTACHMENT NO. 1
RESOLUTION NO.2021-114
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING A BUDGET
AMENDMENT FOR THE FISCAL YEAR COMMENCING
JULY 1, 2021, AND ENDING JUNE 30, 2022 (ASSESSMENT
ENGINEERING SERVICES)
WHEREAS, the City Manager, on or about May 18, 2021, submitted to the City Council a
proposed budget for the appropriation and expenditure of funds for the City for West Covina for
Fiscal Year 2021-22; and
WHEREAS, following duly given notice and prior to budget adoption, the City Council
held public meetings, considered and evaluated all comments, and adopted a budget for the fiscal
year commencing July 1, 2021 and ending June 30, 2022; and
WHEREAS, amendments must periodically be made to the budget to conform to changed
circumstances following adoption of the budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves Budget Amendment No. 025, attached
hereto as Exhibit No. 1, for Fiscal Year 2021-22.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter
the same in the book of original resolutions and it shall become effective immediately.
APPROVED AND ADOPTED this 7th day of December, 2021.
APPROVED AS TO FORM
Thomas P. Duarte
City Attorney
Dario Castellanos
Mayor
ATTEST
Lisa Sherrick
Assistant City Clerk
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do hereby
certify that the foregoing Resolution No. 2021-114 was duly adopted by the City Council of the City
of West Covina, California, at a regular meeting thereof held on the 7th day of December, 2021, by
the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
Exhibit No. 1
Date:
Requested by
Dept/Div:
EXPENDITURES
CITY OF WEST COVINA
BUDGET AMENDMENT
11/16/2021
Stephanie Sikkema
Finance
BA # 025
Posted By:
Date Posted:
Fiscal Year: 2021-2022
Amount: 77,924.00
Description: Allocate funding for Assessment
Engineering Services
Account Number
Dept/Account Description
Current Budget
Proposed
Amendment
Amended Budget
181.71.4133.6110
Professional Services
3,200
3 188
6,388
182.71.4133.6110
Professional Services
2,600
2,543
5,143
184.71.4133.6110
Professional Services
4,000
15,648
19,648
186.71.4133.6110
Professional Services
2,300
SO 115
12 415
187.71.4133.6110
Professional Services
2,400
10,140
12,540
188.71.4133.6110
Professional Services
18,800
20,983
39,783
189.71.4133.6110
Professional Services
121,300
10 178
131 478
183.71.4133.6110
Professional Services
5,200
5 130
10,330
9,800
77 924
87,724
REVENUES
Account Number
Account Description
Current Budget
Propose
Amendment
Amended Budget
REASON/JUSTIFICATION (Please be specific)
Allocate funding for Assessment Engineering Services.
APPROVALS
City Council Approval Date (if required, attach minutes): ❑ Approval Not Required
Dept Head Approval:
Date:
Finance Director: Date:
Funds Available? ❑ Yes ❑No
City Manager: Date:
;if over $100,000)
❑ Approved ❑ Denied