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HomeMy WebLinkAbout1999-08-09 City CouncilCity of Palo Alto C ty TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:AUGUST 9, 1999 CMR: 317:99 SUBJECT:APPROVAL OF CONTRACT WITH WINZLER AND KELLY IN THE AMOUNT OF $72,400 FOR CONSULTING SERVICES RELATED TO. PARKING STRUCTURE ASSESSMENT AND DOWNTOWN MAINTENANCE SPECIAL TAX REPORT IN BRIEF On July 7, 1997, the City. Council directed staff to proceed with the necessary steps leading to the construction of up to two .parking structures downtown, to be financed by an assessment district. The City Manager’s Office has since coordinated a series of meetings with representatives of the Chamber of Commerce to explore ways to finance an augmented downtown maintenance and landscaping program (CMR221:98) reported to Council on May 4, 1998. A downtown special tax district to fund these services has been agreed upon as the most viable financing mechanism. The timing of the special tax district will be folded around the parking assessment. Staff wishes to retain a consultant at this time to begin the assessment development process, because a successful assessment election will require an iterative process involving discussions with downtown property owners about the assessment methodology. An assessment formula can be crafted and an assessment sofb~vare program can be developed in 3-6 months as the construction estimates are simultaneously being developed through the 50 percent design process. Staff will closely coordinate the assesment formula process with the design approval process so that the formula is not finalized prior to the design approval. The scope of the consultant’s work includes assessment services, software development services for administration of the annual assessment and special tax districts, public outreach, CMR: 317:99 Page 1 of 8 and assisting staff with the mail balloting procedures for the two districts as required under Proposition 218. RECOMMENDATION Staff recommends that Council: 1) approve the attached contract for $72,400 with Winzler and Kelly to provide: a) b) assessment engineering services in order to begin steps to form a new downtown parking assessment district to fund the construction of two potential new parking structures; software development services to allow staff to administer an annual assessment calculation; c)software development services to allow staff to administer an annual special tax district calculation in order to fund augmented maintenance services downtown; d)mail ballot administration services for the assessment and special tax procedures, including assisting staff with public outreach services directed towards downtown property owners. 2)Grant the City Manager Change Order authority for up to $7,000 in change order authority in case additional consulting services related to this project are required. BACKGROUND On July 7, 1997, the City Council directed staff to proceed with the necessary steps leading to the construction of up to two parking structures downtown. On January 12, 1998, the Council approved a Budget Amendment Ordinance (BAO) that provided funding for architectural and engineering services for two new downtown parking structures. In the same CMR (109:98), staff informed Council that future funding would be needed when staff got to the point of acquiring assessment engineering and balloting services. Funds for this purpose were included in the 1999-00 budget. The City Manager’s Office has coordinated a series of meetings between City departments and the Chamber of Commerce to explore ways to finance an augmented downtown maintenance program (CMR221:98). The purpose of the program is to increase the frequency and expand the area for many maintenance services, such as street and sidewalk sweeping, pressure washing, landscaping and parking lot cleaning, to include the entire Downtown District, not just University Avenue. It was reported that staffwould work with the Chamber to provide information to downtown property owners supporting the need to create a special tax district to fund the property owners’ share of the proposed augmented CMR: 317:99 Page 2 of 8 maintenance program. In accordance with the Chamber’s goal, the formation of this special tax district is anticipated to occur, with property owner approval, at the same time that the downtown parking structure assessment is also considered by those property owners. DISCUSSION Project Description In November 1996, California voters approved Proposition 218, the "Right to Vote on Taxes" initiative. One of the sections of Proposition 218 deals with assessments. Assessments approved subsequent to November 1996 must be approved by the property owners affected. Approval is by majority vote of those property owners returning ballots, with the vote weighted by each property owners’ proportionate share of the assessment. Proposition 218 also forbids any assessments for "general benefits", i.e., only those "special benefits" affecting property owners can now be assessed. The assessment process requires that a formula be developed for calculating the special benefits, with an allocation of the assessment costs to each property owner based on each property’s proportional benefit received. That formula, or methodology is critical to the entire process, and is the key to compliance with Proposition 218’s special benefit mandates. Staff recommends retaining a consultant to begin the assessment development process, because a successful assessment election will require an iterative process involving discussions with downtown property owners about the assessment methodology. One of variables that will increase the likelihood of success for the eventual assessment ballot is that the formula and methodology for the assessment be understood and accepted by downtown property owners. They will have the financial responsibility for paying the assessment, so their support for the assessment methodology is critical. An assessment formula can be crafted and an assessment software program can be developed in 3-6 months as the construction costs are also being developed through the 50 percent design process. Because the formula for spreading the costs is somewhat independent from the construction cost estimates, this task can occur concurrently and separately as the design issues are being resolved by Public Works in the public review process. Staff does not believe it would be timely to postpone the commencement of assessment services until all design issues are completed. Doing that would risk delaying the funding for this project by up to a year. Staff will closely coordinate assessment the formula process with the design approval process so that the forumula is not finalized prior to the design approval. A special tax district to fund augmented maintenance services and landscaping downtown is also proposed to be set up for the downtown area, with the same boundaries as the parking assessment district. No special benefit has to be calculated for a special tax, which the property owners would have to approve by a 2/3 majority. (This vote would not be weighted CMR: 317:99 Page 3 of 8 by the amount of the proposed tax.) If downtown property owners approve the setting up of this special tax, the tax will appear on their property tax bills. The consultant will set up a software program for maintenance services, and to administer a mail ballot procedure and assist staff with public outreach services. Staff has negotiated a contract with Winzler and Kelly for consultant services associated with the downtown parking structure assessment and special tax district for augmented maintenance. The scope of services includes the following tasks: 1. Assessment district engineering services Work under this task includes development of a formula to spread the costs associated with special benefit for the proposed new parking structures to downtown property owners. The consultant will also prepare an assessment district boundary map and an Engineer’s Report. The Engineer’s Report will be submitted to the Council for approval when it is completed. 2. Assessment district and special tax district administration software This task includes development of a computer program to allow for annual assessment district and special tax district administration by City staff, including spreading the cost of augmented maintenance. 3. Special ballot procedure administration and educational outreach Assuming Council approval of the Engineer’s Report and the setting up of a new parking assessment district, and assuming Council approval of the formation of a special maintenance district, the consultant will work with the City and its legal and financial consultants to develop a detailed timeline for executing a mail ballot procedure under the requirements of Proposition 218. The balloting procedure will involve the Clerk’s Office, which will insure that the balloting is done in a professional manner. The consultant will work with City staff to develop an educational outreach strategy and brochures for each of the proposed financing districts. Consultant will also assist City staff in holding a series of educational meetings with property owners and businesses. Both the meetings and the outreach materials will be objective and factual, and will not take an advocacy tone. Staff will bring back sample outreach materials for Council information once the assessment formula is developed and after all design issues are resolved. No materials will be distributed until issues related to parking structure size and design are resolved. CMR: 317:99 Page 4 of 8 4. Mail ballots This task includes final printing of all assessment and ipecial tax district ballots, as well as assistance with tabulation services during the balloting period and at the required public hearings. This work will not occur until after Council has voted on setting up the new districts and approved outreach materials. The special tax must be a separate mail ballot item from the assessment item. The contract is structured so that if the two measures occur concurrently, i.e., the assessment process and the special tax process, the City will realize cost savings over the amount specified in the contract. Council approval of the contract with Winzler and Kelly will allow staff to begin working on the assessment formula, and to have a contract in place if Council later approves the formation of a special maintenance district. No work will commence on going to property owners for approval of an assessment or a special tax until Council explicitly votes on approving a new parking assessment district and a new maintenance special tax district. That will occur after design on the parking structures is at roughly 50 percent completion, which is dependent on the parking structures’ completing the planning and public review processes. Public Works staff is bringing a separate report to the Council on the status of the downtown parking structures, which has recently been reviewed by the Planning Commission and the Architectural Review Board (ARB). Need For Balloting Support Services The Finance Committee recently (July 7, 1999) reviewed a scope of services for consultant assistance related to a Storm Drainage outreach and mail ballot services. The question came up at the Committee as to whether or not additional Proposition 218 services would be needed in the future. Staff, after close consultation with the City Clerk, believes these services are necessary for the reasons below. Mail balloting procedures are very different from regular elections. In regular elections, City of Palo Alto precinct ballots are consolidated with county-wide ballots by the Santa Clara County Registrar of Voters. The Registrar supervises the election, and collects, tabulates, and processes all Palo Alto ballots. In Proposition 218 ballot procedures, no County support is given, because the Registrar has no jurisdiction over Proposition 218 ballot procedures. Issues that are critical to elections, such as verification of voter registration, are not applicable in Proposition 218 mail ballot procedures. Related to this, the Clerk’s Office does not provide balloting and tabulation services for elections, and therefore has no pool of staff and technology to draw from to provide tabulation services. If the Clerk’s Office was required to provide balloting services, temporary staffing would be required and bar coding as well as computer equipment. More CMR: 317:99 Page 5 of 8 importantly, the limited number of times and frequency Proposition 218 ballotings will occur does not suggest that in house staff can easily develop an expertise in balloting services. Staff believes it is more cost effective to use consulting assistance to provide Proposition 218 balloting services. This is the route that other cities have taken to administer mail ballot procedures. Staff and the Clerk’s Office will work closely to supervise the work of consultants on this and other Proposition 218 related mail ballot procedures to make the process as professional and customer service oriented as possible. Ballots will go out under the supervision of the Clerk’s Office, and will be returned and safeguarded by the Clerk’s Office until tabulation at a public hearing, as is required under Proposition 218. Consultant Selection Process In July 1997 (CMR 308:97), staffobtained Council approval to "proceed with the appropriate steps to secure...assessment district engineer(ing) services." RFPs were mailed to 30 financial, economic, and engineering consultant firms on February 2, 1999. Consultants were given 4 weeks to respond. A total of five firms responded. A staff committee composed of representatives from the Attorney’s Office, Administrative Services, the City Manager’s Office, and Public Works reviewed the responses. Staff narrowed the consultant selection down to 2 firms which were interviewed in March 1999. Staff selected Winzler and Kelly due to its strong experience in assessment services, having had several post Proposition 218 assessment processes. The firm was spoken very highly of by its references, including the City’s outside bond counsel (Jones Hall). In addition, Winzler and Kelly provided excellent examples of informative, simple, and factual outreach materials it has designed for other Proposition 218 ballot processes. The individual who prepares outreach materials worked for a public agency in the Bay Area, and is sensitive to the nuances of public communications. Staff was impressed that.materials were low key and factual, and did not cross the line into ballot measure advocacy. Staff believes it will complement staff efforts well in outreach services. As in balloting services mentioned above, outreach services will be carried out by City staff, with advice and technical support from the consultant. No public outreach efforts, either presentations or mailings, will be made directly by consultants without direct City staff involvement and supervision. That involvement will include staff from Public Works, Administrative Services, the City Manager’s Office, and the City Clerk’s Office. RESOURCE IMPACT Funding for this contract has been budgeted in the General Fund for 1999-00. If downtown property owners approve a parking assessment and a new downtown maintenance district, funds for these consultant services will be reimbursed to the General Fund. POLICY IMPLICATIONS CMR: 317:99 Page 6 of 8 This recommendation is consistent with existing City policy. T1MELINE Assuming design issues are resolved shortly, a tentative timeline is as follows: Initial assessment coordination meeting 1 st draft assessment options Meetings w/affected businesses on new methodology using approximate construction numbers Educational materials, sample mail ballot language, and Engineer’s Report to Council for review and approval Mid August Mid September Thru end of 1999; January 2000 Send out educational materials to property owners Run final assessment model with final engineer’s estimate numbers for mail ballot February February Mail ballots out March Ballots returned by Tabulate at public hearing Send assessment information to County April Mid April June 15 On property tax roll November 2000 Sell bonds Between May and December 2000. The above timeline, which is approximate, would allow the City to sell bonds anytime after Spring 2000 for construction, assuming the assessment is approved by property owners. It is also dependent on design and other policy issues to be resolved by December 1999, in order to meet the June 15 deadline for the County. If that deadline is missed, the next window of filing of assessments with the County is June 15, 2001. In the event that the property owners approved the assessment, but not in time for the 2000 roll, then the City still would have the option of selling bonds in 2000 to begin construction. In that event, the bonds would have to be structured so that no payments were owed to bondholders until the following December (2001), resulting in additional interest costs over that year. The City’s CMR: 317:99 Page 7 of 8 financial advisor indicates that this practice (obtaining bond funding before the assessment is on the property tax roll) is not uncommon with assessment district financing. ENVIRONMENTAL REVIEW Acquiring an assessment consultant is not a project under the California Environmental Quality Act (CEQA). PREPARED BY:Jim Steele, Manager of Investments and Debt, Administrative Services Department APPROVED BY: CARL Director,Services CITY MANAGER APPROVAL: Assistant City Manager ATTACHMENTS: Contract with Winzler and Kelly CMR: 317:99 Page 8 of 8 CONTRACT NO. BETWEEN THE CITY OF PALO ALTO AND WINZLER & KELLY CONSULTING ENGINEERS FOR DOWNTOWN MAINTENANCE SPECIAL TAX CONSULTING SERVICES , 1999, by and between the CITY OF PALO ALTO, a ’ and a municipal corporation of the State of California ("CITY"), and WINZLER & KELLY CONSULTING ENGINEERS, a California Corporation, 495 Tesconi Circle, S~nta Rosa, CA 95401, Tax ID No. 68-0274914 ("CONTRACTOR"). RECITALS: WHEREAS, CITY desires certain consulting seJvices ("ServiceR," also sometimes referred to as ~tasks"), as more fully described in Exhibit "A," attached hereto and incorporated herein by reference; and WHEREAS, CITY desires to engage CONTRACTOR, including its employees, if any, in providing the Services by reason of its qualifications and experience in performing such Services, and CONTRACTOR has offered to provide the Services on the terms and in the manner set forth herein7 NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Contract, the parties agree: SECTION I.TERM i.i The term of this Contract shall be from August I0, 1999 through and including December 31, 2000. SECTION 2. QUALIFICATIONS.., STATUS, AND ...DUTIES OF CONTRACTOR 2.1. CONTRACTOR will perform services under this Contract with the degree of skill and diligence normally practiced by professional engineers or consultants performing the same or similar services. No other warranty or guarantee, expressed or implied, is made with respect to the services furnished under this Contract and all implied warranties are disclaimed. The CONTRACTOR represents that project director and every individual charged with the performance of the Services under this Contract are duly licensed or certified by the State of California, to the extent such licensing or certification is required by law to perform the Services. 2.2 In reliance on the. representation and warranty set forth in Section 3.1, City hires CONTRACTOR to perform, and CONTRACTOR covenants and agrees that it will furnish or cause to be furnished, the Services as set forth in Exhibit ~A". ! 99072’1 sdt 0032200 2.3 CONTRACTOR will assign Mary Grace Pawson as the project director to have supervisory responsibility for the performance, progress, and execution of .the Services. If circumstances or conditions subsequent to the execution of this Contract cause the substitution of the project director for any reason, the appointment of a substitute project director will be subject to the prior written approval of the project manager. 2.4 CONTRACTOR represents that it will: 2.4.1 Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incident to the due and lawful prosecution of the Services; 2.4.2 Keep itself fully informed of all Federal, State of California, and local laws, ordinances, regulations, orders., and decrees which may affect those engaged or employed under~ this Contract, any materials used in CONTRACTOR’s performance under this Contract, or the performance of the Services; 2.4.3 At all times’ observe and comply with, and cause its emp!oyees and contractors (and consultants), if any, who are assigned to the performance.of this Contract to observe and comply with, the laws, ordinances, regulations, orders and decrees mentioned above; and 2.4.4 Report immidiately to the project manager, in writing, any discrepancy or inconsistency it discovers in the laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications or provisions of this Contract. 2.5 Any reports, information, data, or other material given to, or prepared or assembled by, CONTRACTOR or its contractors, if any, under this Contract ("Work Product") will become the property of CITY and will not be made available to any individual or organization by CONTRACTOR or its contractors, if any, without the prior written approval of the city manager. 2.6 CONTRACTOR will provide CITY with copies of the documents which may be required under this Contract, as provided in Exhibit "A," upon completion and acceptance of each such document by CITY. 2.7 If CITY requests additional copies of reports, drawings, specifications or any other materia! which CONTRACTOR is required to furnish in limited quantities in the performance of the Services, CONTRACTOR will provide such additional copies and CITY will compensate CONTRACTOR for its duplication costs. 2.8 CONTRACTOR will be responsible for employing or engaging all persons necessary to perform the Services. All contractors of CONTRACTOR will be deemed to be directly controlled and supervised by CONTRACTOR, which will be responsible for their performance. If any employee or contractor of CONTRACTOR fails or 99072 ~, sd[ 0032200 2 refuses to carry out the provisions of this Contract or appears to be incompetent or to act in a disorderly or improper manner, the employee or contractor will be discharged immediately from further performance under this Contract on demand of the project manager. SECTION 3~,DUTIES OF CITY 3.1 CITY will furnish or cause to be furnished the specified services set forth in Exhibit "A" and such other information regarding its requirements as may be reasonably requested by CONTRACTOR. 3.2 The City Manager will represent CITY for all purposes under this Contract. Jim Steele is designated as the project manager for the City Manager. The project manager will supervise the performance, progress, and execution of the Services. .3.3 If CITY observes or otherwise becomes aware of any default in the performance of CONTRACTOR, CITY will use reasonable efforts to give written notice thereof to CONTRACTOR in a timely manner. SECTION 4.COMPENSATION 4.1 In consideration of the full performance of the Services by CONTRACTOR, CITY will pay CONTRACTOR the total sum of Sixty-two thousand four hundred Dollars ($62,400). Payment for work performed hereunder will be made to CONTRACTOR on receipt of CONTRACTOR’s invoice, submitted no more often than monthly, based on work tasks performed, as shown on Exhibit ~B", attached hereto and incorporated herein by reference. The amount Set forth in this section may be reddced as provided in Exhibit ~B". 4.2 In addition to the compensation described in Paragraph 4.1, CITY will reimburse CONTRACTOR for its direct out- of~pocket expenses for items related to balloting, such as design, layout, recording fees, printing, envelopes, and postage. Reimbursement will be made based on receipt of CONTRACTOR’s invoice, with appropriate documentation. The total amount of reimbursement payable to CONTRACTOR under this agreement shall not exceed Ten thousand Dollars ($i0,000). 4.3 CITY may in writing request CONTRACTOR to perform Additional Services. In consideration of the full performance of such additional services, if any, CITY will pay CONTRACTOR for services rendered at the hourly rates shown in Exhibit "B-l". The project manager and the project director shall, upon mutual written agreement, have the authority to increase the amount of compensation payable under this Contract by the total amount of Ten Thousand Dollars ($i0,000). SECTION 5.AUDITS 5.1 CONTRACTOR will permit CITY to audit, at any reasonable time during the term of this Contract and for three (3) 99072,1 sdl 0032200 3 years thereafter, cONTRACTOR’s records pertaining to matters covered by this Contract. CONTRACTOR further agrees to maintain and retain such records for at least three (’3) years after the expiration or earlier termination of this Contract. SECTION 6.INDEMNITY 6.1 CONTRACTOR agrees to indemnify, defend and hold harmless CITY and its Council Members, officers and employees from and against any and all loss, damage, claim or liability (including without limitation, reasonable attorneys’ fees) incurred by CITY which arise out of CONTRACTOR’s negligent acts, errors or omissions, in performing under this Contract. SECTION 7. WAIVERS 71 The waiver by either party of any brea6h or violation-of any covenant, term, condition or provision of this Contract, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder will not be deemed to be a waiver of any preceding breach or violation by the other party of any te.rm, covenant, condition or provision of this Contract or of any applicable law or ordinance. 7.2 No payment, partial payment, acceptance, or partial acceptance by CITY wil! operate as a waiver on the part of CITY of any of its rights under this Contract. SECTION 8. INSUR3iNCE 8.1 CONTRACTOR, at its sole cost and expense, will obtain and maintain, in full force and effect during the term of this Contract, the insurance coverage described in Exhibit "C", insuring not only CONTRACTOR and its contractors, if any, but also, with the exception of workers’ compensation, and employer’s liability, naming CITY as an additional insured concerning CONTRACTOR’s performance under this Contract. 8.2 All insurance coverage required hereunder will be provided through carriers with B.@st’s Key Rating Guide ratings of A:VII or higher which are admitted to transact insurance business in the State of California. 8.3 Certificates of such insurance, preferably on the forms provided by CITY, will be filed with CITY concurrently with the execution of this Contract. The certificates wil! be subject to the approval of CITY’s risk manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled or altered by the insurer except after filing with CITY’s city clerk thirty (30) days’ prior written notice of such cancellation or alteration, and that the City of Palo Alto is named 990721 sdt 0032200 4 as an additional insured except in policies ofworkers’ compensation, and employer’s liability insurance.Current certificates of such insurance will be kept on file at all times during the term of this Contract with the city clerk. 8.4 The procuring of such required policy or policies of insurance will not be construed to limit CONTRACTOR’s liability hereunder nor to fulfill the indemnification provisions of this Contract. _Notwithstanding the policy or policies of insurance, CONTRACTOR will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Contract, including such damage, injury, or loss arising after the Contract is terminated or the term has expired. SECTION 9 WORKERS’ COMPENSATION .9.1 CONTRACTOR, by executing this Contract, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing the performance of the Services. SECTION I0. SERVICES TERJINATION OR SUSPENSION ~OF CONTRACT OR i0.i The city manager may suspend the performance of the Services, in whole or in.part, or terminate this Contract, with or without cause, by giving thirty (30) days’ prior written notice thereof to CONTRACTOR. Upon receipt of such notice, CONTRACTOR will immediately discontinue its performance of the Services. 10.2 CONTRACTOR may terminate this Contract or suspend its performance of the Services by giving thirty (30) days’ prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY or in the event CITY indefinitely withholds or withdraws its request for the initiation or continuation of the Services to be performed. 10.3 Upon such suspension or termination by CITY, CONTRACTOR will be paid for the Services actually rendered to CITY on or before the effective date of suspension or termination; provided, however, if this Contract is suspended or terminated on account of a default by CONTRACTOR, CITY will be obligated to compensate CONTRACTOR only for that portion of the Services which are of direct and immediate benefit to CITY, as such determination may be made by the city manager acting in the reasonable exercise of her discretion. 10.4 Upon such suspension or termination, CONTRACTOR will deliver to the city manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether 990721 sdl 0032200 or not completed, prepared by CONTRACTOR or its contractors, if any, or given to CONTRACTOR or its contractors, if any, in connection with this Contract. Such materials will become the property of CITY. 10.5 The failure of CITY to agree with CONTRACTOR’s independent findings, conclusions, or recommendations, if the same are called for under this Contract, on the basis of differences in matters of judgment, will not be construed as a failure on the part of CONTRACTOR to fulfill its obligations under this Contract. SECTION ii ASSIGNMENT ii.i This Contract is for the personal services of CONTRACTOR, therefore, CONTRACTOR will not assign, transfer, convey, or otherwise dispose of this Contract or any right, title or interest in or to the same or any part thereof without the prior written consent+of CITY. A consent to one assignment will not be deemed to be a consent to any subsequent assignment. Any assignment made without the approval of the city manager wil! be void and, at the option of the City Manager, this Contract may be terminated. This Contract will not be assignable by operation of law. SECTION 12. NOTICES 12.1 All notices ~ereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as fol!ows: To CITY:Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 To CONTRACTOR: Attention of the project director at the address of CONTRACTOR recited above SECTION 13.CONFLICT OF INTEREST 13.1 In accepting this Contract, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 13.2 CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any contractor or person having such an interest. CONTRACTOR certifies that no person who has or will have any financial interest under this Contract is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipa! Code and the Government Code of the State of California. 99072 [ sdl 0032200 SECT,ION 14.NONDISCRIMINATION 14.1 As set forth in the Palo Alto.Municipal Code, no discrimination will be made in the employment of any person under this Contract because of the age, race, color, national origin, ancestry, religion, disability, sexual preference or gender of that person. If the value of this Contract is, or may be, five thousand dollars ($5,000) or more, CONTRACTOR agrees to meet all requirements of the Palo Alto Municipal Code pertaining to nondiscrimination in employment, including completing the requisite form furnished by CITY and set forth in Exhibit "D". 14.2 CONTRACTOR agrees that each contract for services with an independent provider will contain a provision substantially as follows: "[Name of Provider] will provide CONTRACTOR -with .a certificate stating that [Name of Provider] is currently in compliance with all Federal and State of California laws covering nondiscrimination in employment; and that~ [Name of Provider] will not discriminate in the employment of any person under this contract because of the age, race, color, national origin, ancestry, religion, disability, sexual preference or gender of such person." 14.3 If CONTRACTOR is found in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions of Federal law or executive order in the p~rformance of this Contract, it will be in default of this Contract. Thereupon, CITY will have the power to cancel or suspend this Contract, in whole or in part, or to deduct the sum of twenty-five dollars ($25) for each person for each calendar day during which such person was subjected to acts of discrimination, as damages for breach of contract, or both. Only a finding of the State of California Fair Employment Practices Commission or the equivalent federal agency or officer will constitute evidence of a breach of this Contract. 14.4 If CONTRACTOR is in default of the nondiscrimination provisions of this Contract, CONTRACTOR wil! be found in material breach of this Contract. Thereupon, CITY will have the power to cancel or suspend this Contract, in whole or in part, or to deduct from the amount payable to CONTRACTOR the sum of two hundred fifty dollars ($250) for each calendar day during which CONTRACTOR is not in compliance with this provision as damages for breach of contract, or both. SECTION 15.MISCELLANEOUS PROVISIONS 15.1 CONTRACTOR represents that it has knowledge of the requirements of the Americans with Disabilities Act of 1990, and the Government Code and the Health and Safety Code of the State of 9907~1 sdl 0032200 California, relating to access to public buildings and accommodations for disabled persons, and relating to facilities for disabled persons. CONTRACTOR will comply wit~ or ensure by its advice that compliance with such provisions will be effected in the performance of this Contract. 15.2 This Contract will be governed by the laws of the State of California, excluding its conflicts of law. 15.3 In the event that an action is brought, the parties agree that trial of such action wi!l be vested exclusively in the state courts of California or in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 15.4 The prevailing party in any action brought to enforce the provisions of this Contract may recover its reasonable costs and-attorneys’ fees expended in connection with that action. 15.5 CONTRACTOR and CITY shall attempt to resolve conflicts or disputes under this Contract in a fair and reasonable manner and agree that if resolution cannot be made to attempt to mediate the conflict by a professional mediator (except for payment disputes which may be submitted directly to arbitration). If mediation does not settle any dispute or action which arises under this Contract or which rela%es in any way to this Contract or the subject matter of this Contract, it shall be subject to arbitration under the rules governing commercia! arbitration as promulgated by the American Arbitration Association and arbitrability shall be subject to the Federal Arbitration Act. Any arbitration proceedings shall take .place in Santa Clara County, California unless the parties agree otherwise. 15.6 This document represents the entire and integrated agreement between the parties and supersedes all prior negotia- tions, representations, and contracts, either written or ora!. This document may be amended only by a written instrument, which is signed by the parties. City’s City Manager is authorized to execute any amendments on behalf of the City. 15.7 All provisions of this Contract, whether covenants or conditions, wil! be deemed to be both covenants and conditions. 15.8 The covenants, terms, conditions and provisions of this Contract will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and contractors, as the case may be, of the parties. 15.9 If a court of competent jurisdiction finds or rules that any provision of this Contract or any amendment thereto is void or unenforceable, the unaffected provisions of this Contract and any amendments thereto wil! remain in full force and effect. 15.10 All exhibits referred to in this Contract and any addenda, appendices, attachments, and schedules which, from time 990721 sdl 0032200 8 to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Contract and will be deemed to be a part of this Contract. 15.11 This Contract may be executed in any number of counterparts, each of which wil! be an original, but all of which together will constitute one and the same instrument. 15.12 This Contract is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Contract will terminate without any penalty (a) at the end of any fiscal year in the event that funds ere not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section 15.12 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision.of this Contract. II II II /I II II II II //o II // II II 11 II II 99072t sdl 0032200 9 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Contract on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk Mayor APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED : Assistant City Manager WINZLER & KEZLY CONSULTING ENGINEERS, a California corporation ~By Director of Administrative Services Risk Manager By Taxpayer Identification No. 68-0274914 (Compliance with Corp. Code § 313 is required if the entity on whose behalf this contract is signed is a corporation. In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respective capacities is acceptable) At t achment s : EXHIBIT "A" : EXHIBIT "B" & "B-I" : EXHIBIT "C" : EXHIBIT "D" : SCOPE OF SERVICES FEE SCHEDULE INSURANCE NONDISCRIMINATION COMPLIANCE FORM 990721~ sdl 0032200 i0 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) a Notary Pu_~..lic in 9nd for s~id _County and/State, persojiaily a eared " ~ "~’L ~q ersonall known to mepp! o~,nc~.> ,/~. ~./_ ~K~_- ........., ~ y ..... or proved ~o me on the b~a,sis of satisfactory evidence to be the person(~ whose name(i) ~s~a~fe-2%Libscribed to the within instrument an~d ac~knowledged to m~--that (h~/~ executed t~he same in ~is_~i%er~~_ authorized capaci-~y(i-e~, and that by~/her-7~ ~gnature(2~ on the instrume@t the person(~), or the entity upon behalf of which the person(~ acted, executed the instrument. WITNESS my hand and official seal. of 99072,1 sdl 0032200 II CERTIFICATE OF ACKNOWLEDGMENT (Civil Code S 1189) STATE OF COUNTY OF ) SS. On_, .~.~.~ ~ l~:~q..., T9-9-_, before me, ~& _~. ¯ O&¢lV]~.,., a Notary Pub~lic ~in and for said County and State, personally appeared ~’0~ ~, ~i ~ .... , personally kno~ to me 4~ proved to me on the basis of satisfactory evidence to be the person(~) whose name(~) ~~ subscribed to the within instrument ~acknowledged to me that ~~ executed the same in h~r/th~r authorized capacity(~), and that by~/hcritheir ature(~) on the instrument the person(~), or the entity upon behalf of which the person(~) acted, executed the instrument. WITNESS my hand and official seal. Signature of Notary Public 99072,I sdl 0032200 12 EXHIBIT A SCOPE OF WORK The scope of work described below assumes that separate public hearings, balloting and public outreach efforts will occur for the proposed parking assessment and the proposed downtown maintenance special tax. If those two efforts occur simultaneously, the costs associated with this scope of work will be reduced by $5,000. A decision by the City to combine or stagger the two processes will occur after 1-2 of the initial meetings with Consultant. Work under this scope will include supervising the author of the assessment administration program, Robert Goldman, who will be working as a subconsultant for Winzler Kelly, and coordination with the City’s Geographic Information System. Mr. Goldman’s role will be to provide background to Consultant on the current parking assessments’ methodology~, and to interface with City staff to ensure software compatibility with City systems. Project Manager for Winzler Kelly shall be Mary Grace Pawson. Task Al: Assessment District Engineering-Proposed Downtown Parking Structure Assessment District: Work under this task includes development of the formula of benefit for the proposed new assessment district and preparation of the Boundary Map, Assessment Diagram and Engineer’s Report. Task AI.1 Assessment Methodology Consultant will prepare a Preliminary Technical Memorandum on assessment methodology for review by the City and its outside legal and financial consultants. This initial document will present options for developing a formula of benefit and calculating the annual assessments. The Technical Memorandum will present advantages and disadvantages of each of the proposed options. The final formula of benefit will be based on the City’s review comments. Meetings: Allow two (2) meetings with City Staff and legal and financial consultants. Scope includes Mr. Goldman’s attendance at meetings Task A1.2 Mapping Consultant will develop the Boundary Map and Assessment Diagram, based on the existing University Avenue Parking Assessment District. Mapping will be prepared in AutoCAD R. 14.0. Map layering will be coordinated with City’s Department of Public Works for integration with the Geographic Information System. Meetings: Allow one (1) meeting with City Public Works staff. 990721 sd10032209 Task A1.3 Engineer’s Report Consultant will develop an Administrative Draft of the Engineer’s Report for review by the City’s financing team and finalize the Engineer’s Report based on comments received. Consultant’s scope also includes making final changes to the Engineer’s Report based on final project cost information and concerns raised at the public hearing. Meetings: Allow one (1) meeting with City Staff and outside legal and financial consultants. Scope includes Mr. Goldman’s attendance at meetings. .4 Task A1.4 Recordings Consultant shall coordinate all recordings of the Assessment District documents (Boundary Map, Engineer’s Report, Assessment Diagram and Notice of Assessment) associated with the Downtown Parking Structures. Consultant shall coordinate with City to provide mailing information for Notices of Cash Payment Period as requested by City. Consultant shall also record all Special Tax District documents, if that special tax passes concurrently with this assessment. Deliverables Under Task A1 include one (1) Technical Memorandum, Boundary Map, Assessment Diagram, Administrative" Draft of the Engineer’s Report, Final Engineer’s Report and Notice of Assessment. Additional.meetings will be billable at the hourly rates listed in Exhibit B-Fee Schedule & Breakdown. Task B1 Assessment District Administration Software in PC Format: This task includes development of a computer database that will allow for computation of assessments and administration of the initial assessment process, and which can be used for annual assessments. The database will be coordinated with City’s concurrent upgrade of its existing assessment administration software to provide ease of transition between the new Assessment District and the City’s ongoing assessment district administration activities. Task B 1.1 Initial Data Collection Consultant will coordinate with City staff and the County Assessor and Recorder to bring forward existing information on the property within the District. Work will also include the initial field surveys to verify lot size, occupancy, etc. A preliminary assessment calculation program will be written based on the Technical Memorandum developed under Task A 1.1. Microsoft Access will be utilized for easy linkage between the Engineer’s cost estimates, the Engineer’s Report and tailored ballots and notices. 990721sdi0032209 Task B 1.2 Coordination with Update of Current Assessment Administration Software Consultant will coordinate work with the concurrent update of the City’s existing Assessment Administration Software. Work under this task allows for up to twenty-four (24) hours of coordination work and three (3) meetings with City’s Public Works Staff and outside Assessment Administration Consultants. Task B 1-3 Coordination with City’s Geographic Information System (GIS) Consultant will help City link the assessment database with City’s GIS system. This task includes up to sixteen (16) hours of coordination work and two (2) meetings with City’s Public Works and Planning staff and outside GIS programming consultant. Task B 1-4 Coordination with California Avenue Geographic Information System (GIS) conversion. Consultant will assist City in linking the California Avenue Assessment District with the City’s GIS system. This task includes up to forty (40) hours of coordination work. Meetings will be combined with Task B 1-3 above. Consultant will deliver the preliminary Microsoft Access programs and documentation, to the City for review. Based on the review comments, consultant will update the program. This scope allows for updating the program based on final project cost information and the results of the public heating. Meetings: Scope includes (5) meetings with Mr. Goldman in attendance at (3) meetings. Deliverables: Preliminary and Final Microsoft Access Programs with Documentation and GIS link Task B2 Special Tax District Administration Soft~vare in PC Format: Task B 1.2 Coordination with Special Tax District Consultant Consultant agrees to subcontract with Bob Goldman in order to convert the special tax district allocation methodology (which will be delivered by David Taussig and Associates under separate contract) into an algorithm to be written for incorporation in Microsoft Access or Excel software (to be determined later) for ongoing administration of the district Meetings: Three (3) meetings between Mr. Goldman, City’s Public Works Staff and outside Assessment Administration Consultant. Deliverables: Preliminary and Final Programs with Documentation and GIS link 990721 sdl 0032209 Task C Special Ballot Procedure, Educational Outreach and Administration: Task C 1 Outreach Strategy and Schedule: Consultant will work with the City and its legal and financial consultants to develop a detailed timeline for the balloting and public outreach process for each of the proposed financing districts. Consultant will prepare a Technical Memorandum on public outreach that will include potential outreach activities and proposed strategies for the outreach and for the balloting period. This task includes one meeting with City staff and its legal and financial consultants on the advantages and disadvantages of combining the two ballot processes. Consultant will subsequently summarize this discussion with an options memo. This task also includes two meetings with City staff and representatives of the downtown business community and Chamber of Commerce in order to get input on the most effective strategy for the City to use. Meetings: Scope includes (3) meetings. Deliverables: Detailed Timelines, Technical Memorandum on Outreach Strategy and Schedule Task C2 Outreach Material Consultant will develop mock-ups of the proposed Information Material. This task includes (2) two City coordination meetings. Meetings: Scope includes (2) meetings. Deliverables: Preliminary Informational Material Design Task D1 Informational Material & Ballot-Printing for the Assessment District Task D 1-1: This task includes final printing and mailing of all assessment district ballots and public information brochures and assistance during the balloting period and at the public hearing. The final documents will be based on the City’s input received during Task C. This scope allows for (2) two City coordination meetings, (2) two public workshops and attendance at (2) two City Council Meetings (one when the Preliminary Engineer’s Report is adopted and one at the Public Hearing where ballots are tabulated). Consultant will also assist the City in tabulating the ballots and verifying the final results. Meetings: Scope includes (6) six meetings. 990721 sd10032209 Task D2 Informational Material & Ballot-Printing for the Special Tax District Task D2-1: This task includes final printing and mailing of all special tax district ballots and public information brochures and assistance during the balloting period and at the public hearing. The final documents will be based on the City’s input received during Task C. This scope allows for (2) two City coordination meetings, (2) two public workshops and attendance at (2) two City Council Meetings (one when the Preliminary Engineer’s Report is adopted and one at the Public Hearing where ballots are tabulated). Consultant will also assist the City in tabulating the ballots and verifying the final results. Meetings: Scope includes (6) six meetings. 990721 sdl 0032209 EXHIBIT B FEE SCHEDULE & DETAILED BREAKDOWN Fees for the above services are detailed below, and total $62,400 plus expenses not to exceed $10,000 for design, printing, and layout expenses. Expenses to be supported by original invoices. Progress payments will be made at milestone described below. Task A1 Assessment District Engineering:$18,500 $5,000 will be due and payable upon receipt and acceptance of final’Technical Memorandum on Assessment Methodology. $11,000 will be due and payable upon completion of the Boundary Map, Assessment Diagram, and Engineer’s Report. Remaining fee will be due and payable upon completion of recordings Task B1 Assessment District Administration Software in PC Format:$17,000 (includes Mr. Robert Goldman as a suBconsultant) $7,000 due and payable upon delivery of preliminary and acceptance of updated, conformed assessment roll. $5,000 due and payable upon delivery of Visual Basic algorithm for new assessment formula Remaining fee due and payable upon completion of GIS coordination Task B2 Special Tax District Administration Software in PC Format:$3,500 (includes Mr. Robert Goldman’s work as a subconsultant) 990721 sdl 0032209 Task C Special Ballot Procedure, Educational Outreach And Administration:$7,800 $3,000 due and payable upon receipt and acceptance of Detailed Timeline and Technical Memorandum on Outreach Strategy, Remaining fee due and payable upon receipt and acceptance of Preliminary Informational Material Design Task D1 Informational Material and services for the Assessment District Ballot-Printing an~ mailing, and tabulation $7,800 (plus Expenses) * (design and printing expenses, to be supported by invoices, not to exceed $5,000): $2,000 will be due and payable upon successful delivery of brochures to City for mailing. $2,000 will be due and payable upon successful delivery of ballots to City for mailing. $3,800 will be due and payable after public hearing and ballot tabulation. Task D2 Informational Material and Ballot-Printing and mailing, and tabulation services for the Special Tax District $7,800 (plus Expenses) * (*design and printing expenses, to be supported by invoices, not to exceed $5,000): $2,000 will be due and payable upon successful delivery of brochures to City for mailing. $2,000 will be due and payable upon successful delivery of ballots to City for mailing. $3,800 will be due and payable after public hearing and ballot tabulation. If the two procedures (Assessment District and Maintenance District) occur concurrently, the costs associated with tasks D-1 and D-2 will be reduced by $5,000. That is, in this case the total owed for Tasks D-1 and D-2 will be $10,600 plus layout and printing expenses. 990721 sdt 0032209 EXHIBIT "B-I" HOURLY FEE RATES Addition~il work will be billed at the following hourly rates: Principal in charge $125 Project Manager 90 Principal Engineer 85 Engineer 70 Technician 68 Surveyor 75 CADD Technician 68 Typist 55 990721sd10032209