RPVCCA_CC_SR_2015_06_02_G_Storm_Drain_User_Fee_Rate_Engineer_ProposalCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM: KATHRYN DOWNS, DEPUTY DIRECTOR OF FINANCE (�
DATE: JUNE 2, 2015
SUBJECT: STORM DRAIN USER FEE RATE ENGINEER
PROPOSAL
REVIEWED: DOUG WILLMORE, CITY MANAGER
RECOMMENDATION
Authorize the City Manager to accept the Harris & Associates Proposal to Finalize and
Establish the Water Quality and Flood Protection Fee — Task A (Rate Analysis Report
Review) for a lump -sum cost not to exceed $12,500.
BACKGROUND
The City's Storm Drain User Fee (Fee) approved by property owners in 2005 will sunset
in FY15-16 (pursuant to a 2007 measure approved by the City's voters).
On April 21, 2015, the City Council received a Staff Report titled Consideration of
Revenue Measures that Require Approval by City Voters or Property Owners. Within the
report, Staff recommended that the City undertake proceedings to conduct a mail -ballot
election of property owners, asking to extend the Fee another ten years using the existing
fee methodology.
On May 21, 2015, the Storm Drain Oversight Committee conducted its public hearing for
the FY15-16 Fee; and included the following in its annual report to the City Council.
"All members agree there are more known projects important to public safety and
the protection of public and private property than there is funding available, even
including the maximum user fee. The Committee believes the User Fee is an
appropriate, reliable, dedicated funding source, authorized by the voters, which
addresses known storm drain problems. Loss of the User Fee will cause storm
drain projects to compete with other types of infrastructure needs for City funding. "
STORM DRAIN USER FEE RATE ENGINEER PROPOSAL
June 2, 2015
Page 2 of 3
"The Committee recommends the following:
1. The continuation of a dedicated funding source for storm drain projects,
and;
2. The identification or creation of an appropriate funding source for mandated
water quality projects and programs. "
DISCUSSION
Following is a summary of the steps to extend the Fee.
1. Complete preparation of the Rate Engineer's Report by September 2015;
2. Mail Notices of Public Hearing in December 2015;
3. City Council conducts Public Hearing in February 2016 to determine whether to
conduct a mail -ballot election of property owners;
4. Ballot period February -March 2016; and
5. City Council adopts results of election, and considers ordinance to extend the Fee
in April 2016.
The first step in the process outlined above is to obtain a Rate Engineer's report. Harris
& Associates has served as the City's Rate Engineer for the Fee since inception; and has
prepared a proposal for extension of the Fee (see Attachment A). There are two tasks
outlined in the proposal.
A. Review potential changes to impervious factors and areas (sample of 100 parcels),
to minimize the number of appeals & prepare the Notice of City Council public
hearing (includes fee structure, proposed amount, basis of calculation, etc.). Lump
sum fee of $12,500.
B. Finalize and mail the Notice of City Council public hearing, tabulate any protest
letters received, provide technical support and attend public hearing, prepare the
form of ballot, mail ballots, tabulate ballots. Lump sum fee of $5,000, plus printing,
folding & stuffing notices & ballots (2 mailings of about 12,000 addresses) for an
estimated fee of $26,500 (postage not included).
Optional Service to attend information workshops throughout the process and
answer questions relating to the fee methodology and proceedings; and assist with
processing Fee appeals. Estimated fee of $7,500.
Staff recommends proceeding with Task A, as there have been changes to impervious
factors of affected parcels over the last 10 years. Once an updated report is received in
September 2015, the City Council may consider whether to proceed with Task B leading
to a public hearing.
If the City Council approves the recommendation, Staff will add a one-time $12,500
General Fund expenditure allocation to the draft FY15-16 budget.
STORM DRAIN USER FEE RATE ENGINEER PROPOSAL
June 2, 2015
Page 3 of 3
Attachment
A — Harris & Associates Proposal to Finalize and Establish the Water Quality and Flood
Protection Fee (page 4)
9
Harris & Associates,
MEShaping the f itwe, line: Project eat c7 fime,.
April 22, 2015
Ms. Kathryn Downs
Acting Director of Finance
City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
Re: Proposal to Finalize and Establish the Water Quality and Flood Protection Fee
Dear Kathryn,
The following is our proposal for assisting the City with the extension of the Storm Drain User Fee per the
California Health and Safety Code Section 5471 et seq.
SCOPE OF WORK
A. Rate Analysis Report Review
This scope item will provide services up to, but not including, the City Council meeting accepting the Rate
Analysis Report and setting the public hearing date. This includes reviewing potential changes in impervious
factors and areas with the goal to reestablish the proportionality requirement of Proposition 218 and to
minimize the number of potential appeals. The individual tasks for this scope item are as follows:
1. Generate a random sample of 100 parcels within the City of Rancho Palos Verdes. Parcels will be
stratified into 10 lot size groupings for the purpose of sampling and 10 properties shall be randomly
selected from each group.
Estimate the individual % impervious cover for each parcel within the sample from the aerial photo
layers of the City's GIS.
3. Analyze the estimated % impervious to the assumptions presented in the prior 2005 Rate Analysis
Report and make recommendations for adjustments, if necessary.
4. Based on the above analysis and integrating the latest County Assessor's data, provide a draft final 2015
Rate Analysis Report, for review and comment.
5. Finalize the Rate Report, based on comments received and provide up to twenty (20) copies to the City.
6. In conjunction with the City Attorney's office, prepare draft Noticing and Balloting Procedures, for
review by City staff, including the City Clerk. These procedures will discuss the mailing out of notices
and the receipt, handling and tabulation of protests and ballots. Finalize the procedures based on
comments received.
In conjunction with City staff and the City Attorney's office, prepare the draft form of the notice per the
requirements of Section 6 of Article XIIID of the State Constitution (Proposition 218), for review and
approval by the City. The notice will include the proposed fee rate structure, the proposed fee amount
for the parcel being noticed, the basis upon which the rates were calculated, the reason for the fee, and
the date, time and location of the public hearing.
22 Executive Park, Suite 200, Irvine, California 92614-4705 949.655.3900 FAX 949.655.3995 WeAreHarris,com 4
Ms. Kathryn Downs
City of Rancho Palos Verdes
April 22, 2015
Page 2
B. Fee Establishment Process
8. Attend the City Council meeting accepting the 2015 Rate Analysis Report and setting the public hearing
date.
9. Finalize the Notice of Public Hearing. The notice and other informational material, as specified by the
City, will be printed and stuffed into City envelopes (produced by Harris) and mailed with City -provided
postage a minimum of 45 days prior to the date of the public hearing.
10. Assist the City with the tabulation of any protest letters that are received.
11. Attend the Public Hearing to present the proposed Storm Drain Fee, provide technical support and
answer questions.
12. In conjunction with City staff and the City Attorney's office, prepare the form of the ballot per the
requirements of Section 4 of Article XIIID of the State Constitution, for review and approval by the City.
13. The ballots and other informational material, as specified by the City, will be printed and stuffed into
City envelopes (produced by Harris) and mailed with City -provided postage a minimum of 45 days prior
to the due date. Return envelopes for the ballots will also be produced.
14. After the specified ballot due date, the ballots will be opened and tabulated. An analyst using a laptop
computer will tabulate the ballots in the City Clerk's office.
15. Attend the City Council meeting accepting the results of the balloting.
16. (Optional Services) Attend information workshops throughout the City to present the extended fee and
answer questions relating to the fee and proceedings and/or assisting City Staff with processing Storm
Drain User Fee Appeals.
Responsibilities of the City
1. Designate a project manager to manage and coordinate the project.
2. Make available records and documentation in conjunction with preparation of the methodology
options and rate structure, including the estimated maintenance cost of the system in sufficient detail
to estimate costs between maintenance components.
3. Schedule, administer, and accomplish the publishing of required notices in accordance the authorizing
legislation. Schedule meetings and hearings as required by the prevailing law(s) and prepare all notices
and all resolutions and ordinances required by the City Council pertaining to the proceedings.
4. Provide qualified legal counsel to provide guidance to the City and financial engineer during the
process.
5. Provide postage for any and all mailings within 1 week of each mailing date.
SCHEDULE
The schedule is to be determined based on input from the City on the potential public hearing date.
FEE PROPOSAL
Harris & Associates will provide the services described above for the following fees:
as Harris & A�ociates
Ms. Kathryn Downs
City of Rancho Palos Verdes
April 22, 2015
Page 3
Task A — Rate Analysis Report Review
Items 1 through 7..........................................................................................$12,500 lump sum
Task B — Fee Reestablishment Process
Items 8 through 15..........................................................................................$5,000 lump sum
(excluding printing and postage)
Plus printing, folding and stuffing of notices and ballots ....................... $26,500 estimated fee
at cost plus 10% (2 mailings)
Optional Item 16....................................................................................... $7,500 estimated fee
per the schedule of hourly rates shown below
Additional City Council and any FAC meetings....................................$750 lump sum per meeting
Harris & Associates
Schedule of Hourly Rates
K. Dennis Klingelhofer, PE — Project Director ............................
$245 / hour
Dennis A. Anderson — Project Manager ....................................
$220 / hour
Alison Bouley, P.E. — Deputy Project Manager .........................
$190 / hour
Project Engineer........................................................................
$150 / hour
Senior Project Analyst...............................................................
$115 / hour
Project Analyst............................................................................
$90 / hour
Project Technician.......................................................................
$75 / hour
Clerical Staff................................................................................
$65 / hour
These hourly rates may be updated on an annual (calendar year) basis.
Attendance at meetings as described in the Scope of Work and most direct costs such as vehicle usage and
mileage, equipment usage (including computers), and printing and copying are included in the lump sum
fees and hourly rates except where noted.
Invoices will be submitted monthly for services provided in the previous month and shall be paid within 30
days of receipt. It is assumed that this project will be subject to the same terms and conditions of our
current contract with the City.
We look forward to continuing our working relationship with you both and the City. Please let us know if
you have any questions regarding our scope of work or fees.
Sincerely,
Harris & Associates
Dennis A. Anderson
Director, Public Finance
an Harris & A65
ociates