SR - AGR-6166 - ASSESSMENT ENGINEERING PROPOSITION 218 BALLOTING SANTIAGO HILLS LANDSCAPE MAINTENANCE DISTRICT 86-2AGENDA ITEM
Date: November 25, 2014
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: Marie Knight
Community Services Director
Joe De Francesco
Public Works Director
ReviewedNerified By:
City Manager kv
Finance Direct r
To Be Presented y: Marie Knight
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1. SUBJECT
Approval of an agreement with SCI Consulting, Inc., for Assessment Engineering and
Proposition 218 Balloting Services for the Santiago Hills Landscape Assessment District
(Landscape Maintenance District 86 -2) for an amount not to exceed $64,625.
2. SUMMARY
This agreement with SCI Consulting, Inc. will provide for technical assistance in the analysis of
current and projected costs for maintenance of the District, and the administration of a ballot
measure for potential increased benefit assessment for property owners in the District in
conformance with Proposition 218.
3. RECOMMENDED ACTION
1.) Appropriate $64,625.00 from unappropriated funds in Fund 291 (Irvine 86 -2 Landscape
Maintenance) to account 291.7026.51670.00000 (Other Professional & Consulting Services);
2.) Approve the agreement with SCI Consulting, Inc.; and
3.) Authorize the Mayor and the City Clerk to execute the agreement on behalf of the City.
4. FISCAL IMPACT
Upon appropriation, funds will be available in the following account:
291.7026.51670.00000 (Other Professional & Consulting Services) $64,625
ITEM J. /a 11/25/14
5. STRATEGIC PLAN GOAL(S)
GOAL
A. Refurbish, maintain, develop and/or expand public use places and spaces.
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Element Goal 3.0: Ensure adequate maintenance of public rights -of -way to
enhance public safety and improve circulation.
Policy 3.2: Provide sufficient levels of street sweeping, landscaping, graffiti abatement,
shopping cart and bulk item removal from streets, sidewalks, alleys, and other public rights -of-
way.
7. DISCUSSION and BACKGROUND
Background
In 1987, Landscape Maintenance District 86 -2 (District) was established to maintain the
landscape improvements constructed by Assessment District 86 -1 in Santiago Hills. The District
comprises over 32 acres of landscape, lighting, and other infrastructure maintained by the City.
Funds supporting the maintenance of the District landscape and other infrastructure are derived
from an annual assessment of property owners within the District. The high end of the
assessment range in 1987 was set at an annual cost per single family detached unit at $369.43.
From 1987 to 1996, when Proposition 218 was passed, an annual detailed accounting of
expenses was compiled and a new assessment was calculated to fund the following year's budget
expenses for the benefitting property owners. Some years the annual assessment went down due
to fluctuating maintenance costs, however, since 1987 the property owner's annual assessment
has only increased one cent.
The current assessment for a single family detached unit is $369.44, which is the maximum
assessment currently allowed. Since 1987 and particularly since the passage of Prop 218 in
1996, the costs to maintain the District have increased significantly with expenditures far
outpacing the revenues received from the assessments. In 2007, the City conducted a Property
Owner Protest Ballot Proceeding to raise the assessment in order to cover costs. At that time, the
proposed assessment necessary to fully fund the level of landscaping services was $432.52 for a
single family detached unit. The ballot measure was unsuccessful, and the increased assessment
was not imposed.
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ITEM 11/25/14
Without an increase in revenues, staff has had to make significant reductions to the service levels
in the District. These reductions include adjustments to the frequency of maintenance services,
replacement of plants that have died or are at the end of their life cycle, deferment of hardscape
repairs, and reduced water consumption in order to keep the cost of maintaining this District in
the year 2014 within assessment rates that were established in 1987. Most recently, the impact
of these service reductions has been clearly noted by many residents, who have indicated that
further reductions in service levels and watering would be unacceptable. Combined with the
need for replacement of aging infrastructure and landscape material that has outlived its useful
life, and expensive repairs made necessary by vandalism, an increase of the maximum allowable
assessment is essential.
Discussion
Pursuant to the Landscaping and Lighting Act of 1972, and the provisions of the California
Constitution Article XIIID, the process for increasing the assessment involves the development
of a reasonable and defensible benefit nexus and cost allocation for the special benefits received
by each parcel. A property owner ballot is required to raise fees, whereby a majority of the
ballots received must vote for the increase in order for it to be imposed.
In September 2014 the City issued a Request for Proposal for Assessment Engineering and
Balloting Services for the Santiago Hills Landscape Assessment District. Three proposals were
received and reviewed by a City staff committee representing Public Works and Community
Services who scored the proposals based on their responsiveness to the RFP and overall
approach to securing a successful ballot measure. While all three companies had relevant
experience, SCI Consulting, Inc. demonstrated not only a proven success rate of over 95% for
ballot measures conducted in the past, but also proposed an additional service which they feel is
the key to their success and which they highly recommended for the City of Orange.
SCI Consulting, Inc. proposed the creation and implementation of a public opinion survey which
would greatly increase the chances of a successful ballot measure. The survey, conducted prior
to our main community outreach efforts, would provide valuable information in two areas:
determining the level of support of the property owners, and determining the community's
priorities. This information would enable the City to craft elements of the funding measure that
will better resonate with the community and have a stronger chance of gaining support.
On the basis of the proven success record for SCI Consulting, Inc. and the strength of their
proposed community outreach program, City staff determined that SCI Consulting, Inc. is the
most qualified firm to provide these services. To ensure that the process emphasizes
qualifications over cost, the Request for Proposal process for this consultant selection involved
the submission of a sealed cost proposal, separate from the service proposal. Once SCI
Consulting, Inc. was determined to be the most qualified firm, City staff negotiated with SCI
Consulting, Inc. on a contract amount not to exceed $64,625. This includes the optional survey
implementation, and a 10% contingency for additional meetings, should that become necessary.
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ITEM 11/25/14
City staff recommends an award of contract with SCI Consulting, Inc. for Assessment
Engineering and Balloting Services for the Santiago Hills Landscape Assessment District for an
amount not to exceed $64,625. Funds for this contract are available in the District (Fund 291).
Upon approval of the contract, SCI Consulting will begin the engineering analysis required to
determine a fair and reasonable cost of the landscape maintenance services, combined with a
capital program that allows for repair and prudent replacement of the improvements. Once this
analysis is done, the community outreach effort will begin, culminating in a ballot measure in
April 2015, in time for a City Council public hearing to count the ballots in May 2015. If the
measure is successful, the assessments could be increased in time for FY 2015 -16.
8. ATTACHMENTS
Draft Agreement
ITEM 11/25/14