title
CC - CONSENT ITEM: Approval of a Five-Year Professional Services Agreement with NBS Government Finance Group dba NBS for Preparation of the Annual Sewer User Service Charges on the Los Angeles County Assessor's Property Tax Roll in an Amount Not-to-Exceed $15,500 Per Year.
body
Meeting Date: May 23, 2022
Contact Person/Dept.: Christopher Evans/PW
Mate Gaspar/PW
Phone Number: 310.253.5621
310.253.5602
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/18/2022); All consultants who submitted an RFP response by e-mail on (05/10/2022).
Department Approval: Yanni Demitri, Public Works Director/City Engineer (05/10/2022)
______________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve a five-year professional services agreement with NBS Government Finance Group dba NBS (NBS) for preparation of the annual sewer user service charges on the Los Angeles County Assessor’s property tax roll, from July 1, 2022 - June 30, 2027, in an amount not-to-exceed $15,500 per year.
BACKGROUND
Culver City obtains sewage treatment services at the City of Los Angeles' Hyperion Treatment Plant through an Amalgamated Agreement with the City of Los Angeles. (Agreement). The Agreement requires Culver City to pay a proportionate share of the costs of conveyance, operation, maintenance, repair, and capital improvements to upgrade and improve the Amalgamated Sewerage system.
Culver City owns and operates a separate sewage collection system, which is connected to the Amalgamated system.
Federal law requires that all agencies using the City of Los Angeles' Hyperion Treatment Plant adopt a system of charges to assure that each property served by a public sewer pays its fair share of costs for the operation, maintenance, repair and improvement of the Hyperion Treatment Plant. The “fair share” of each property is based on its contribution to the system in terms of flow quantity and sewage strength (biochemical oxygen demand and suspended solids). This is in addition to the cost incurred by Culver City in the collection, operation, and improvement of its own sewage collection and conveyance system.
In addition to formulating and adopting a system of Sewer User’s Service Charges, the City must also select a system for collecting these charges. In 1980, based on an engineering study and the City Engineer’s recommendation, the City Council adopted a once-a-year billing procedure for Sewer User’s Service Charges that places each property owner’s charges on their property tax bill. This method of collection has proven to be very efficient and provides the lowest cost billing and collection service for Culver City.
Pursuant to the Culver City Municipal Code, in fiscal year 2011-12 the City reviewed and approved an update to the Sewer User’s Service Charges (SUSC) structures and billing formulas to ensure that the City utilizes an effective pricing structure within the constraints of Proposition 218. Additionally, the City wanted to ensure that its sewer pricing structure continues to achieve the goals and objectives of the community, while maintaining a fair and equitable distribution of costs to all of its customers. The City is currently conducting a review of the Sewer User’s Service Charges.
Since 1997, the City has utilized consultants to prepare the annual SUSC on the property tax roll. There are approximately 13,755 parcels serving a total of 16,700 residential or business units in Culver City that are charged a SUSC. The charges are due to the Assessor’s office in early August of each year. The consultant is required to obtain the water data from Golden State Water Company, and from Los Angeles Department of Water and Power for a very small portion of parcels In Culver City served by them. The data is then used to calculate the charge based on the City Council approved SUSC formulas.
The existing 5-year contract with NBS for the preparation of the annual SUSC expires on June 30, 2022.
DISCUSSION
In March 2022, a Request for Proposals (RFP) #2236 was released and advertised on the City Public Works website and through PlanetBids for firms specializing in the preparation of charges on the annual tax roll. As of the time of closing, on April 21, 2022, the following three (3) firms responded:
Firm Fee
NBS Government Finance Group dba NBS $15,500
David Taussig & Associates dba DTA $15,500
Ravic $29,400
NBS is a consulting firm that specializes in the processing of the annual assessment levies by assessment districts for many agencies in the region. They have provided excellent services over the past five years. They offer a unique multi-level quality control program. They continue to offer a competitive rate. Staff recommends that the City Council award a contract to NBS for the placement of the SUSC on the property tax rolls for fiscal years 2022-2027.
FISCAL ANALYSIS
The sewer operating account number 20466100.61800 has sufficient funds available for the proposed agreement.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a five-year professional services agreement with NBS Government Finance Group dba NBS for the preparation of the annual sewer user service charges levies on the annual Los Angeles County Assessor’s office tax roll, from July 1, 2022 - June 30, 2027, in an amount not to exceed $15,500 per year; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.