HomeMy WebLinkAbout2015-01-13 - AGENDA REPORTS - AWRD WILLDAN-LMD RESERVE STUDY (2)0
Agenda Item: 7
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT
CALENDAR City Manager Approval:
Item to be presented by:Kev' Tonoian
DATE: January 13, 2015
SUBJECT: AWARD OF LANDSCAPE MAINTENANCE DISTRICT RESERVE
STUDY TO WILLDAN FINANCIAL SERVICES
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council:
1. Award contract to Willdan Financial Services for the preparation of a Reserve Study in
support of the City's Landscape Maintenance District (LMD) operation in an amount not to
exceed $245,000.
2. Authorize staff to proceed with Phase I of the LMD Reserve Study in the amount of $90,000.
3. Authorize the City Manager or designee to execute all contracts subject to City Attorney final
document approval, contingent upon the appropriation of funds by the City Council in the
annual budget for such fiscal year.
BACKGROUND
Santa Clarita administers 54 zones within the Landscape Maintenance District (LMD). In total,
the LMD maintains approximately 1,200 landscaped acres, including parkways, 9 parks, over 20
miles of paseos, 46 miles of landscaped medians, 30 bridges and tunnels, and 60,000 trees.
Landscape maintenance services for the City's LMD operation are provided through contracts
with private companies.
A significant component of administering the City's LMD includes the financial forecasting,
planning, and management relating to the repair and replacement of capital assets maintained
within each of the 54 independent LMD zones. To manage this long-term financial planning
need in a deliberate manner, it is common for public agencies to undertake preparation of a
reserve study.
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The City last awarded an LMD reserve study in 2008. Since this time, the City's LMD operation
has grown by more than 100%. Given the number of new LMD zones the City has created
and/or assumed as a result of the 2012 annexations, a new study is recommended.
The purpose of a reserve study is to locate and assess the condition of existing capital assets,
quantify the remaining useful life of such assets, and forecast future costs associated with
replacement of the assets. Examples of such assets include components of irrigation
management systems, fences, paseo bridges, benches, playground equipment, sport courts,
concrete walkways, lighting, monuments, and small structures.
Once completed, a reserve study allows the City to more accurately forecast long-term capital
replacement costs on a zone -by -zone basis. This tool enables City staff to maintain reserve
levels within each financially independent LMD zone so adequate monies are available to
replace the assets as the end of their useful life is reached.
To secure professional services to complete an updated reserve study, the City's Purchasing staff
published Request for Proposal (RFP) LMD No. 13-14-48. Three registered firms received
email notification upon posting of the RFP, with notifications sent to an additional three
companies which previously expressed interest in knowing when the City was seeking proposals
for auditing -type services.
In total, 28 vendors downloaded the RFP, with two firms submitting proposals. The firms were
Willdan Financial Services and Association Reserves, Inc.
A cross-section of staff from the City's Finance, Technology Services, and Special Districts
operations reviewed and scored the proposals. Evaluation criteria included an evaluation of
qualifications and experience, audit methodology and management approach, and
quality/experience of personnel. Furthermore, both responding firms were invited to and
participated in an interview panel.
As a result of this process, staff is recommending Willdan Financial Services, based on their
ability to provide professional guidance, qualified staff, reserve experience, and technological
experience. Prior to reaching this decision, City staff vetted each section of the proposal in order
to ensure the consultant could demonstrate they possessed the appropriate experience and
analytical capabilities to meet our organization's needs.
Willdan Financial Services is a Division of the Willdan Group, Inc., a nationwide company
providing professional technical and consulting services for engineering and infrastructure
projects. Willdan Financial Services specializes in disciplines that include engineering and
planning, energy efficiency and sustainability, and financial and economic consulting.
Over the three-year period of this proposed contract, Willdan Financial Services will
comprehensively evaluate the City's LMD zones in a manner which includes the following work
products.
• Identify, quantify, and rate the condition and remaining useful life of pre -determined capital
assets in each LMD zone.
• Analyze the total funding reserve necessary to replace essential assets.
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• Develop a financial model that will provide summarized activity which will be incorporated
in the budget model for each individual LMD zone.
• Calculate and identify the dollar amount required to fully fund each zone's reserve.
Phase I of this project will evaluate the nine LMD zones transferred to the City from the County
as part of the 2012 annexation and nine newly created LMD zones since the last reserve study
was completed in 2008. This scope of work will include a field survey which will geo-code the
location of and assess the condition of LMD capital assets. Willdan will also develop a new
database capable of integrating the financial model and cost -factor assumptions into an asset -
management system which City staff can update and manage on a going -forward basis.
Phase II and III of this project will include field work to collect location data and assess the
condition of LMD assets, including irrigation systems, among the remaining LMD zones
evaluated during previous reserve studies. The cost associated with Phase II is $80,000, while
the cost of Phase III is $75,000. Commencement of future phases of the LMD Reserve Study
will be contingent upon the appropriation funds by the City Council.
ALTERNATIVE ACTION
1. Do not award contract to Willdan Financial Services.
2. Other direction as determined by City Council.
FISCAL IMPACT
The total amount of this agreement will not exceed $245,000. Funds in the amount of $90,000
were previously appropriate and are available in the Fiscal Year 2014-2015 budget to support
Phase I of the proposed LMD Reserve Study. Funding for subsequent phases is contingent upon
the appropriation of funds by the City Council.
ATTACHMENTS
LMD Reserve Study Proposal
Page 3
-1qVWILLDAN
Financial Services
December 5, 2014
Mr. Dennis Luppens
Special Districts Administrator
City of Santa Clarita
23920 Valencia Boulevard
Santa Clarita, California 91355
7.a
extending
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Re: Revised Scope and Fee to the City of Santa Clarita for the Financial Analysis to Update and
Augment the LMD Replacement Reserve Fund and Field Inventory of New LMD Assets
Dear Mr. Luppens:
As requested, the following serves as Willdan Financial Services' revised scope and fee specific to the
financial analysis necessary to update and augment the Landscape Maintenance District (LMD)
replacement reserve fund, as well as conduct a field inventory of new LMD assets on behalf of the City of
Santa Clarita ("City").
Due in part to the magnitude of this engagement, it has been decided that the project duration will span
three years and the field assessment will focus on specific zones during each year of the project. The table
below lists the proposed zones to be evaluated in each phase/year of the work plan, per the City's direction.
Phase One
Phase Two
Phase Three
Financial Analysis- All Zones
Financial Analysis- All Zones
Financial Analysis- All Zones
GIS Platform Development
Field Assessment / GIS Retrieval & Input
Field Assessment / GIS Retrieval & Input
Field Assessment / GIS Retrieval & Input
Data Retrieval & Input
Data Retrieval & Input
Data Retrieval & Input
GIS Mapping (in -House)
GIS Mapping (In -House)
GIS Mapping (in -House)
28 - NEW HALL
7 - Creekside
8 - Friendly/Sierra
29 - Metro Villa
15 - River Village
20 - Golden Valley Ranch Commercial
T20- EL DORADO VILLAGE
16 -Valencia Industrial Center
21-GVR RESIDENTIAL (Undeveloped)
T29 -AMERICAN BEAUTY
17-Bouquet/Railroad
22-HMNMH(in-House)
T33 -CANYON PARK
18- Town Center/Tourney
23-MONTECITO(in-house)
T44 -BOUQUET CANYON
19-Bridgeport/Bouquet
24 -CANYON GATE
T47 - Northpark
T2 - Old Orchard
25 - VALLE DI ORO (Undeveloped)
T48 -SHADOW HILLS
T3 -Valencia Hills
26 -CENTRE POINTE
T51- VALENCIA HIGH SCHOOL
T4- Valencia Meadows
1- Golden Valley/Centre Pointe (In -House)
T62 - CANYON HEIGHTS
T5 - Valencia Glen
2 - Price Costco (In -House)
T65 - FAIR OAKS RANCH PHASE I
T6 - Valencia South Valley
3 - Sierra Heights
T65A- FAIR OAKS RANCH PHASE II / III
T7 - Valencia Central & North
4 - Albertson (In -House)
T65B - FAIR OAKS PARK
T8 - Valencia Summit
5 -Sunset Hills
T67-MIRAMONTES
T23 -Mountain View Slopes
6- Canyon Crest
T71- HASKELL CANYON RANCH
T23A-Mountain View Condos
Tl- Faircliff Shopping Center (in -House)
T72-COPPERHILL 22
T23B-Seco Villas
T17 -Rainbow Glen
27 -Circlet Ranch
T29 -American Beauty
T46 -Northbridge
T31 -Shangri-La
T52-Stonecrest
$ NRlldan $ Willdan $ Wllldan
Color Key
Project Goals Most are new zones with no field data
1. Reserve Funding Financial Analysis Most are existing zones with data and
2. GIS Platform Development grouped in west part of City
3. Living Document - Accela Transferrable Most are existing zones with data and
4. Field Inventory, Condition Assessment grouped in west part of City
Engineering end Planning I Energy Efficiency and Sustainability I Financial and Economic Consulting I National Preparedness a
951.587.3500 1 800.755.6864 1 fax: 951.587.3510 1 27368 Via Industria, Suite 110. Temecula, California 92590-4856 1 wwn Packet Pg. 39
Mr. Luppens, City of Santa Clanta 7,a
Revised Scope and fee for the Financial Analysis to Update & Augment the LMD Replacement Reserve fund & Field Inventory of New Assets
December 5, 2074
Page 2
Scope of Services
Project Understanding
At present, there are 61 financially independent zones within the City's LMD. In general, these zones are
comprised of trees, shrubs, turf, irrigation, booster pumps, lighting, fencing pedestrian bridges, 20 miles of
paseos, tunnels, playgrounds, site furniture, gazebos, sports courts and fields, and typical park, open space
and parkway amenities ("LMD elements'). Currently, the City has inventory data information for 35 zones
that can be used as reference when revisiting those sites.
The inventory will be use to: a) identify existing LMD elements, b) quantify those elements, and
c) analyze and determine the element's current viability and remaining life span of those elements. In
addition, an opinion of probable cost for replacement will be assigned for all identified types of elements in
the inventory utilizing an average cost factor per square foot, per linear foot, or per unit for each respective
element as applicable in each zone. These cost factors will be developed utilizing those established in the
City's previous LMD asset study. The new cost factors may be adjusted or modified as necessary based on
replacement cost history provided by the City and/or cost estimates and pricing obtained from vendors or
other agencies. This inventory will develop a foundation upon which future management decisions can be
based.
It is the City's objective to create a document that depicts a clear picture as to what types of LMD capital
assets are present within the zones, as well as each asset's remaining useful life and replacement value.
Willdan further understands the City wishes for this Study to become a "living document," whereby in future
years, when an asset is replaced or improved, the enhancement can be documented in the Reserve
Funding Analysis. This important objective will be kept top of mind throughout this engagement.
Approach
Willdan's approach will be to utilize ESRI ArcPad mobile GIS software for collection of asset inventory data.
ArcPad software will be used to display a base map of the City on a GPS -enabled handheld field computer.
ArcPad Data Collection Application
Willdan will develop a customized ArcPad software application which will display a data collection form
designed to capture the location and attributes of each physical asset. The data collection form will use
drop-down "combo -box" menus to the fullest extent possible, minimizing the amount of data entry that would
need to be inputted using the mobile device's soft key pad. Combo box controls allow the user to either pick
the desired item from a list, or type it in if the item is not present in the list. The ArcPad software also has an
"AutoComplete" feature that speeds up hand -entry by displaying previous entries when the user starts
typing in a new entry. New data entry controls and drop-down list items can easily be added to the data
collection form at any time.
A menu at the top of the data collection form will list the physical asset types to be inventoried as shown in
the Physical Asset List Template (Exhibit C) of the City's Request for Proposals (RFP). Additional menus will
allow the field inspector to specify more specific attributes, such as types of irrigation controllers and
enclosures, type and size of play equipment, etc. Another menu will be provided to enter appropriate
quantities for each asset (linear feet of piping, square feet of pavement, acres of landscaping, etc.). Another
data entry control will include the type of material, for example; wood, vinyl or metal for handrails, brick or
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Mr Luppens, City of Santa Clama 7,a
Revised Scope and fee for the Financial Analysis to Update & Augment the LMD Replacement Reserve fund & Fie/d Inventory ofNewAssets
December 5, 2014
Page 3
concrete for benches, etc. Additional data entry controls will include the condition of the asset, the name of
the field inspector, the date, and a field for any comments the inspector deems relevant.
The base map and customized data collection form will be loaded into handheld field computers equipped
with Global Positioning System (GPS) receivers. Field personnel will occupy the location of each LMD
asset. Tapping the screen of the GPS handheld will store the GPS coordinates and display the data
collection form.
Daily Data Back and QA/QC
Field data from each GPS handheld will be downloaded at the end of each day and stored on Willdan's file
servers. A GIS analyst will review each day's work. Any inconsistencies or missing data items can then be
addressed in the field the following day.
Quality control will also be built into the data collection software. Critical data entry items will be designated
as required; the field inspector will not be able to click the OK button to close the data collection form and
store the data unless all required fields have been entered. An error message will alert the inspector with the
name of the required field that needs to be completed before the form can be closed.
Inventory Analysis
Field data is stored in the GPS handhelds in ESRI shapefile format. Once the asset inventory field survey is
completed, the shapefile will be imported into an ESRI file geodatabase for use in data analysis and
mapping. Latitude and longitude coordinates in decimal degrees will be added to the database for each
asset. This will be useful if it is desired to export the data into a Comma -Separated Values (CSV) ASCII file
for use in other spatially -enabled software programs. The data can also be exported into a variety of other
formats including Microsoft Excel, Microsoft Access, PDF, Autodesk Civil 3D, Microstation and others as
needed to prepare specifications and design drawings for performing maintenance and implementing
improvements.
Compatibility with Santa Clarita GIS and Accela Asset Management System
Willdan will coordinate with City staff to confirm the version of ESRI ArcGIS software in use by the City to
ensure that GIS deliverables are compatible. The appropriate file geodatabase version will be provided to
the City, or can be provided in shapefile format if desired. All GIS feature classes delivered to the City will
include the appropriate metadata for each feature class.
Accela, Inc.'s Asset Management System software is compatible with ArcGIS databases and supports the
ArcGIS Server. Willdan's asset inventory data in ArcGIS geodatabase format can be easily integrated into
Accela's proprietary cloud -based GIS solution.
Work Plan
LMD Element Inventory
To achieve the City's goal of developing a LMD element inventory our work plan will involve consultation
with City staff and all pertinent representatives and stakeholders.
This portion of the scope will be coordinated utilizing the subsequent methods:
1. Arrange a kick-off meeting with City staff to review goals and confirm scope of work. Finalize project
objectives, schedule, zone priorities, as well as define roles and responsibilities.
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Mr. Luppens, City of Santa Clanta 7,a
Revised Scope and fee for the FlnancialAna"s to Update & Augment the LMD Replacement Reserve Fund & Field Inventory of New Assets
December 5, 2014
Page 4
2. Obtain LMD zone map, and if necessary, obtain City provided descriptions/points of interest of zone
which require special attention while being evaluated.
3. Obtain existing relevant data from the City such as the most current inventory document identifying 35
zones (previous Reserve Study), construction drawings, existing as -built, development and irrigation
plans, current renovation plans (if any), and documents pertaining to the City's LMD standards or
guidelines for reference. Willdan will utilize the information contained within the Reserve Study to
develop the initial framework of the financial model. While we will review the cost factor assumptions
previously established for the assets within the 35 zones, a field survey will not initially be conducted
to confirm the specific LMD assets and quantities. Each of the additional 26 zone areas will have a list
that identifies all aspects of the LMD inventory.
4. Obtain list (including contact person and phone number) of maintenance contractors along with maps
of their respective LMD area limits of work. Willdan will contact each contractor and arrange to meet in
the field to review contractor's limits of work. In addition, the field meeting will allow time to familiarize
ourselves with each site, such as irrigation controllers and other elements, and identify any issues that
could impede the inventory process.
5. Assign a team of two for the larger zones and an individual for the smaller zones. Based on City
provided documents, prepare base maps of the zones to map out the route to access the zones in a
productive sequence. Each team (or individual) will have a PC tablet to document the information
required for the inventory. A customized software program will be developed to house the information
for this inventory and all its attributes.
6. Prepare and submit a schedule with appropriate milestones and submittal dates, in addition to a
summary of tasks to be performed. The schedule will be based on previous discussions with City
staff. Examples of milestone activity would include:
• Conclusion of the field review (middle and end points);
• Preliminary field data findings for the assets of the various zones (electronic copy); and
• Final inventory of field data (asset) information (electronic copy).
Field Review
The following tasks will be performed as part of the field review:
1. Conduct a site reconnaissance to document the existing elements and their respective conditions of
each zone. Special attention will be paid to the current functionality and remaining lifespan of the
LMD elements. During this review notations will be made as to whether the various elements are in
poor, fair or good condition. Generally these notations will reflect the overall condition of the various
element types (i.e. fencing, benches, playground equipment, landscaping, irrigation system, etc.),
but may also denote specific elements or areas that are deficient. A poor condition shall reflect an
element that exhibits a safety factor and should be on the high priority list of replacements, such as
a 6 to 12 month lifespan. A fair or good attribute describes an element that can withstand at its
current condition for a 5 to 15 year lifespan.
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Mc Luppens, City of Santa Clarita 7,a
Revised Scope and Fee for the Financial Analysis to Update & Augment the LMD Replacement Reserve fund & Field Inventory of New Assets
December 5, 2014
Page 5
2. As part of the field review of the site landscaping itself, we will study the site topography and
document type of terrain; i.e., sloping (say greater than 3:1 slope ratio), generally flat terrain, or a
combination of sloping and flat. This information may assist in determining future costs for
replacement of the landscape material since work effort/costs tend to increase when the topography
is sloped.
An evaluation of the irrigation system will be performed by a landscape architect or licensed
inspector to determine whether it is operable or non-operable, outdated, adequate or not adequate.
The evaluation will entail backflow preventer device type, size, and condition; controller type
(pedestal, wall mount within cabinet); cabinet material (stainless steel or rolled steel); manufacturer,
condition, verification of master control valve (MV), size (if visible without excavation); power source
(hard wired, solar, battery, etc), and verification of flow sensor (FS) device size, if any. For each
controller the evaluation will entail estimating the total irrigated area (square feet) served by the
controller and as warranted a breakdown the estimated square feet for turf, shrub and slope areas.
3. Evaluate the list of LMD related amenities including: fencing, playgrounds, bike furniture, etc. We
will evaluate and identify the current viability, remaining life span, and replacement value of each
amenity.
4. Areas that exhibit poor landscapes, irrigation facilities, or equipment will be documented.
Documentation of the LMD assets or sites that are in poor condition will include photographs of
those LMD assets or sites indicating general appearance or specific deficiencies.
After these steps have been completed, a meeting with City staff will be arranged to review the
documentation and electronic files gathered in the field review in order to discuss the preliminary findings
and any additional evaluation that may be necessary.
Draft and Final LMD Element Inventory Documentation
Based on discussions and direction of City staff, Willdan will provide the City with the finalized field data
collected for the assets (site and landscape element inventories). The information will be separated by
zones. The files will be presented in an Excel spreadsheet format that is capable of linking up asset data
with the GIS data information. The spreadsheet data will include lists of assets in a table format (e.g. types,
quantities, square footages, etc.), summary tables of assets, and detailed/itemized opinion of probable
construction cost estimates for replacement of the assets at the various lifespan timeframes. In addition, the
Excel spreadsheets will link up to colored coded maps for each zone along with information pertinent to the
LMD inventory.
Calculate and Establish Funding Reserve Needs
Utilizing the LMD inventory information and GIS data gathered in the field review, as well as knowledge
gained through discussions with City staff, Willdan proposes to develop a spreadsheet -based financial
planning model that will allow the City to test a variety of "what -if' futures. The model will allow the City to
change assumptions related to growth, the capital improvements program, operational programs, and a
variety of other planning and financial variables and predict the financial outcome of that scenario. This will
be especially useful in testing the affordability of the capital improvement program, allowing the user to turn
new projects "on or off' in the model, change the costing with updated information, delay their funding, or
look at funding alternatives and their impact on affordability.
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Mr. Luppens, City of SantaClarita 7,a
Revised Scope and Fee for the FinancialAnalysis to Update & Augment the CMD Replacement Reserve Fund & Field Inventory of New Assets
December 5, 2014
page 6
Specifically, Willdan will develop a financial model that will allow the City to anticipate the future financial
performance of the LMD and each respective zone based on various assumptions. For each zone within the
LMD, this model will produce the projected operating results and cash flow for the next 5 and 10 fiscal years
for each zone and a summary of the LMD. It will also determine projected revenues, operating and
maintenance expenses, capital expenditures and their respective funding sources, fund transfers (if any)
and the resulting fund balances for each year of the projection period. This model will also show the
summarized activity within the LMD's operating accounts and the projected year-end cash balances for
each zone within the LMD. This summarized activity and data can be utilized and easily transferred to the
City's existing LMD budget model for establishing the annual assessment budgets for each zone.
It is important to note that this model will fully integrate the LMD's CIP and asset listing, as developed in
previous tasks, anticipated revenues and expenses, and reserve fund balances, in order to develop a
concise summary by fiscal year in a comprehensible format. The model will allow the City to determine the
optimum path for balancing the financial health of the LMD against political and other considerations. Using
drop-down window functionality, the model will allow the City to view the projected operating results and
capital needs at the zone level (micro -view) and at the LMD level (macro -view) and to prioritize asset
replacements both separately and collectively. The model will be PC-based using Microsoft Excel and at the
completion of the project will be provided to the City. Although it is not anticipated that this budgeting model
will be directly linked to the GIS inventory data, it will be structured in a way that updated GIS summary
information can be periodically uploaded into the spreadsheet in order to update changes to the LMD
elements and the financial plan. The most common way to link Excel to ArcGIS is by using a database join
which is accomplished by creating a data field that is present in both the GIS layer's attribute table and the
Excel table. For an asset inventory, this would involve establishing an Asset ID in both data files. Once the
two tables are joined, the information in the Excel table can be used to perform queries, label features and
create symbols in ArcGIS. Any changes made to the Excel table will be updated the next time the map is
opened in ArcGIS. This method would not allow the Excel table to be edited in ArcGIS, only in Excel. If
editing the Excel data in ArcGIS is desired, the joined layer can be exported to a new GIS layer that would
contain both the GIS attributes and the fields from the Excel file. Any kind of spatial operation could then be
performed on the data, including calculating XY coordinate values within the desired coordinate system.
Excel tables can also be linked to ArcGIS using the Add XY Data command. To use this command, the
coordinates of each asset would need to be present in the Excel table. Similar to the database join method,
this would not allow the Excel table to be edited in ArcGIS, but the data can be converted to a format that is
editable in ArcGIS.
The summarized information will be captured in a graphical interface allowing the City to easily change key
variables and absorb critical information at a glance. While this work plan considers a 5 to 10 year projection
period, the model can easily be revised to accommodate additional years if requested. Upon completion, we
will provide in-house staff training on the operation and use of the model. This knowledge will allow City staff
to independently and efficiently evaluate the effects of changes in certain factors in future years.
Budget
Willdan's original cost proposal quoted a fee of $287,000 to complete this engagement over an estimated
nine-month time frame. Upon further discussion with the City and in order to meet internal budgeting
requirements, the total project cost has revised to $245,000 and will be distributed as follows over three
years.
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Mr. tuppens, City of Santa Clartta
Revised Scope and Fee for the Financial Analysis to Update & Augment the CMD Replacement Reserve Fund & Field Inventory of New Assets
December 5, 2074
Page 7
Phase I/Year 1 $ 90,000
Phase II/Year 2 80,000
Phase III/Year 3 75,000
Total Cost $ 245,000
We appreciate this opportunity to provide a revised submittal to the City of Santa Clarita and look forward to
beginning this engagement. If you have any questions regarding this submission, please contact Senior
Project Manager Jim McGuire or Group Manager Gladys Medina at (951) 587-3500 or via email at
imcauire((Dwilldan.com or gmedinaawilldan.com, respectively.
Sincerely,
WILLDAN FINANCIAL SERVICES
Mark J. Risco
President and CEO
T.a
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