HomeMy WebLinkAboutItem JAGENDA REPORT
DATE: April 9, 2001
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Stephen G. Badum, Director of Public Works/City Engineer
SUBJECT: AWARD PROFESSIONAL SERVICES AGREEMENT -
FINANCIAL ENGINEERING CONSULTING SERVICES
FOR AVALON HOMES DEVELOPMENT
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The proposed action will execute a professional services agreement in the amount not to
exceed $74,000 to retain Harris & Associates to perform financial engineering in
conjunction with the proposed Community Facilities District (CFD) for the Avalon homes
Development (former Shore Shop property on Seal Beach Boulevard).
BACKGROUND:
The former Shore Shop property is being redeveloped into eight single family residences. In
order to facilitate the construction of developer improvements, the property owners have
requested the formation of a CFD. The required developer financed improvements include
street, curb, gutter, sidewalk, parkway, underground utilities, and street trees along the
Property frontage on Seal Beach Boulevard. Also included is half of the cost to construct a
landscaped entrance island at the intersection of Seal Beach Boulevard and Pacific Coast
Highway. This work will be done in conjunction with the City's Seal Beach Boulevard
Rehabilitation Project. The formation of the CFD will not delay the City's project. The
developer has bonded for the required improvements and the proceeds of the CFD bonds
will reimburse the City for the cost of the required developer improvements.
City Staff has solicited a proposal from a qualified financial engineering firm, Hams &
Associates to provide the necessary services to form a CFD. The scope of services has been
separated into three phases of work including: 1) District Formation Services which will
provide the documentation, maps, and legal processes necessary to form the CFD; 2)
Acquisition Audit Services which will establish the methodology and procedures for setting
reimbursement eligibility and confirmed costs; and 3) Annual Administration Services in
connection with the required preparation of the annual tax levy.
AGENDA ITEM J
Profeviomrl S.,l= Agreement
City Coumil Agenda Report
April 9, 2001
FISCAL IMPACT:
There is no cost to the City, since all costs to form and maintain the CFD are included
within the levied assessments. Avalon Homes has agreed to post a deposit for the District
Formation phase in the amount of $28,000 to pay for consultant costs. Avalon Homes
will be reimbursed for these costs upon formation of the CFD.
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a
professional services agreement with Harris & Associates to perform financial engineering
in conjunction with the proposed Community Facilities District (CFD) for the Avalon
Homes Development at a cost not to exceed $74,000.
Step *Badum, Director of Public Works/City Engineer
NOTED AND APPROVED:
_ u
John BahorsM, City Manager
Agenda Item