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HomeMy WebLinkAboutAgenda Statement 1986/09/23 Item 5 COUNCIL AGENDA STATEMENT Item 5 Meeting Date 9/23/86 ITEM TITLE: Resolution /Z73,7 Approving Agreement with the firm R. W. 04V Beck and Associates for appraisal of street lights SUBMITTED BY: Director of Public Works/City Engineer REVIEWED BY: City Manage (4/5ths Vote: Yes No X ) The City Council has authorized $19,000 in the FY 1985-86 and the 1986-87 budget for the appraisal of the approximately 1 ,650 street lights owned by San Diego Gas & Electric (SDG&E) located within the City. This appraisal is the first step the City will be taking to acquire these street lights from SDG&E. Three firms responded to a Request for Proposal (RFP) to perform an appraisal of the street lighting property owned by SDG&E. The project will be completed within an estimated four months. RECOMMENDATION: That the City Council adopt the resolution approving the agreement with R. W. Beck and Associates for appraisal services. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The proposed appraisal of street lights would be accomplished in three steps: . A detailed examination of SDG&E' s Detailed Street Light Inventory List and its verification through a random sample. . A valuation analysis of the street lighting property to be acquired using a computer model to calculate replacement cost less depreciation, original cost less depreciation, and the like. . Preparation of a report setting forth a summary of values of the street lighting property and a comparison of the current monthly rate paid by the City for street lights owned by SDG&E versus the rate it would pay if the City owned these lights. Proposals to perform these tasks were received as follows: Cost of Firm Providing Services R. W. Beck and Associates $18,000 Popov Engineers 25,600 KIM Engineers 35,900 Page 2, Item 5 Meeting Date 9/lb/86 During the interview of those three firms, it was determined that R. W. Beck and Associates was the best qualified firm. This was confirmed through reference checks. This same firm has already appraised the street lighting properties for the cities of San Diego, National City, and San Marcos. The other two firms, Popov Engineers and KIM Engineers, have never appraised street lighting properties and were considered non-responsive. The agreement for consulting services is attached. The City Attorney' s office has reviewed the agreement. While R. W. Beck and Associates is insured with a $5,000,000 policy. Section II.E of their agreement limits their liability to this $5,000,000. The City Attorney's office is concerned about this section, but believes the likelihood that this section would negatively impact the City is small given the size and nature of the contract and other alternatives are not available as the other two consulting firms were non-responsive. FISCAL IMPACT: The cost of the appraisal services is $18,000. Sufficient monies have been budgeted in the FY 1986-87 budget. GG:nr/ WPC 2306E 4geze.22 -csfd y the City Council of Chula Vista, California Dated _ ` 4:2 /73 7 Form No. F-229 12/73 CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of Unappropriated Balance I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. Amount $ Fund Purpose Bidder Director of Finance The City of Chula Vista Date By Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the monies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ 18,000 Director o Finance The City of Chula Vista Date 9/23/86 By PUBLIC WORKS/CITY ENGINEER Fund 100 Dept./Activity 1431-5201 Purpose APPRAISAL OF STREET LIGHTS Bidder R.W. BECK AND ASSOCIATES 5--2Y-$b Certificate No. 9