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SR 11-28-2017 3G City Council Report City Council Meeting: November 28, 2017 Agenda Item: 3.G 1 of 6 To: Mayor and City Council From: Susan Cline, Director, Public Works, Civil Engineering Subject: Street Lighting Design Services - First Modification to Professional Services Agreement 3167 (CCS) with Penco Engineering Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to Professional Services Agreement 3167 in the amount of $132,000 with Penco Engineering, a California-based company, to provide street lighting design services for the construction of new streetlights within two newly formed assessment districts established by Resolutions 11066 and 11067, dated August 8, 2017; and street lighting assessment district formation services for up to three districts during FY 2017-18. This will result in a 3-year amended agreement with a new total amount not to exceed $199,000. Executive Summary The City initiates design services and installs street lighting on residential streets following Council approval of special assessments. Council approved two assessments districts in August for which lighting design is needed. Additionally, staff expects to receive and process up to three new street lighting petitions during FY 2017-18. Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to Professional Services Agreement 3167 (CCS) in the amount of $132,000 with Penco Engineering, a California-based company, to provide services for the two approved districts and up to three additional districts in Fiscal Year 2017-18. This would result in an amended agreement with a new total amount not to exceed $199,000. Background Residents may petition the City to have additional street lighting installed on residential streets. The street lighting is paid for by a special assessment of the property owners where the lighting will be installed. Once Council accepts the petition, a public hearing 2 of 6 is held and property owners vote on whether to accept the special assessment or not. The results of the ballot are presented at a City Council meeting where, if the majority voted in favor of the assessment, Council may authorize the special assessment. On April 18, 2017 (Attachment A), the City Council accepted petitions for the installation of new streetlights on:  10th Street between Carlyle Avenue and Marguerita Avenue (District A),  25th Street between Idaho Avenue and Washington Avenue (District B), and  27th Street between Pico Boulevard and Pearl Street (District C). The Council also approved the Preliminary Engineer’s Reports, and approved the resolutions of intent to set the public hearings for July 25, 2017. Notices of the public hearing were mailed to property owners in accordance with Prop 218, along with a ballot for the purpose of voting for or against the proposed assessment. On July 25, 2017 (Attachment B), public hearings were held for each district, City Council received public comments regarding each district, the City Clerk accepted all the ballots submitted by the close of the public hearings, and the hearings were continued to August 8, 2017. Ballots were tallied proportional to the financial obligation of each affected property. The City Clerk received ballots and kept them secured until the August 8, 2017 City Council meeting (Attachment C) when the results of the election were certified. Districts A and B passed and District C was not approved. Discussion A passing assessment, confirmed by Council Resolution, allows the City to begin the work described in the Engineer’s Report, which includes the preliminary schematic design and placement of the lights in the district, follow-up community meetings, final design, bid preparation and solicitation, award of the construction contract, contract execution, and construction. After construction is complete, staff would return to Council 3 of 6 to confirm final assessment costs and billing. Typically, this process takes 24 to 36 months to complete. City staff would meet with residents at the beginning and at various stages of the design process to present the project design, including proposed locations for the new street lights, and solicit input regarding the preferred pole style for each district. All light options presented would be consistent with dark sky requirements to limit light pollution from public outdoor lighting. Upon completion of the design, staff would solicit competitive bids for the project and request that Council award a construction contract to the best bidder. Property owners may pay for the improvements in full after construction is completed, or they may choose a payment plan, paid bi-annually, over a three-year payment plan at 2.5% interest, five-year payment plan at 3.5% interest, or a 10-year payment plan at 5% interest. The City could offer assistance to Low and Moderate Income (LMI) owner-occupied properties, contingent on income verification. Additionally, staff would work with the Rent Control Department on owner pass-through costs to renters, if applicable. Additionally, since the start of FY 2017-18 staff has prepared and distributed petition packages for two new districts. Based on this, staff anticipates receiving and processing up to three new street lighting petitions during FY 2017-18. Successful petitions, those including signatures by 60% or more of the residents within the proposed district, would be eligible to begin street lighting assessment district formation proceedings including, preparation of Engineer’s Reports and preliminary assessment district diagrams, community meetings, public hearings and other supplementary work required under Proposition 218. Consultant Selection On June 7, 2016, the City issued RFP (SP2460) for Street Lighting Assessment District Formation, Implementation and Administration Services, which was posted on the City’s online bidding website, and notices were advertised in the Santa Monica Daily Press. The RFP was for an initial term of three years with the option for two one-year extensions. Twenty-nine firms downloaded the RFP. 4 of 6 On June 27, 2016, the City received scope and fee proposals from two firms, Harris & Associates and Penco Engineering, for FY 2016-17 services, the first year of the initial three-year term. Both proposals were broken down into Phase 1 – assessment district formation services, and Phase 2 – street lighting design services. The City requested a phased proposal due to the limited funding available at the time and the desire to begin assessment district proceedings for pending street lighting petitions that had been received and verified by staff. Both Harris & Associates’ and Penco Engineering’s fee proposal for Phase I services were below the City’s threshold for an informal award for professional services. On July 7, 2016, the City posted the Under Threshold Notice of Award letter on Planet Bids, the City’s online bidding website, awarding Phase I services to Penco Engineering based on their technical and administrative experience establishing assessment districts for other agencies, the ability to meet the City's aggressive timeline, the quality of sample materials provided including Engineer's Reports and Assessment Diagrams, the cost of proposed services including hourly fees, and the ability to support the City with value added services such as developing manuals and updating guidelines. On August 30, 2016, the City of Santa Monica executed Professional Services Agreement 3167 (CCS) with Penco Engineering to provide Phase 1 – assessment district formation services for a total fee of $67,000 and a term of three years from the execution date. The three-year term was selected to allow staff to return to Council, once the results of the elections were known, with a recommendation to amend the agreement with Penco Engineering to also include Phase 2 - street lighting design services. On October 20, 2017, Penco Engineering provided revised scope and fee proposals to provide street lighting design services for the construction of new streetlights within the two newly formed assessment districts established by Resolutions 11066 and 11067, 5 of 6 and for street lighting assessment district formation services for up to three new districts during FY 2017-18, based on the expectation that up to three new street light petitions would be received and verified during this period. Penco Engineering’s fee proposal for the above street lighting design and assessment district formation services is $65,000 and $67,000 respectively, for a total of $132,000. Staff recommends executing a first modification to Professional Services Agreement 3167 with Penco Engineering to provide street lighting design and assessment district formation services in the amount of $132,000 resulting in an amended agreement with a new total not to exceed amount of $199,000. Streetlight design services would include preparing final construction plans; specification and cost estimates for the installation of new streetlights within passing Districts “A” and “B”; coordinating with Southern California Edison (SCE) for the type and location of new electrical services; conducting photometric analysis to ensure compliance with design standards; conducting public meetings with the residents and property owners to present the proposed design and receive input; and providing support during bidding and construction. Assessment administration services would include assisting staff in confirming the final assessment amount for each property within the districts once construction is complete, filing the Notice of Assessment with the county, preparing invoices and documentation for the confirmed assessment amount for mailing to each property during the 30-day cash collection period, reviewing preliminary and final official statements, and advising staff on other requirements for implementing the assessment district in conformance with Proposition 218 and the Improvement Act of 1911. Assessment district formation services would include preparation of Engineer’s Reports and preliminary assessment district diagrams, community meetings, public hearings and other supplementary work required under Proposition 218 for up to three new districts. 6 of 6 Penco Engineering would also assist staff in documenting current assessment district procedures for future reference, assist the City Attorney’s office in revising the City’s Municipal Ordinance if deemed necessary, and coordinate with City staff to compile a street lighting manual that identifies relevant design criteria that incorporates dark sky standards for adoption and implementation of future projects. Anticipated Schedule Street lighting design is anticipated to take approximately six months, starting in January 2018. Coordination with SCE for design and approval of the new electrical services is expected to take approximately three months. Construction is likely to begin in fall 2018 and last six to nine months. A significant portion of that duration is to accommodate coordination with SCE on installation of the new electrical services and for delivery of the new streetlight poles. Financial Impacts and Budget Actions The agreement modification to be awarded to Penco Engineering is $132,000, for an amended agreement total not to exceed $199,000. Funds are available in the FY 2017- 18 Capital Improvement Program budget in account C019212.589000. Prepared By: Allan Sheth, Civil Engineering Associate Approved Forwarded to Council Attachments: A. April 18, 2017 Staff Report B. July 25, 2017 Staff Report C. August 8, 2017 Staff Report D. PENCO Oaks Form REFERENCE – AGREEMENT NO. 10588 (CCS) (MODIFICATION TO PSA 3167 (CCS); RESOLUTION NOS. 11066 & 11067 (CCS)