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HomeMy WebLinkAboutR-2003-163 Engage public utility management and planning services, inc for professional services RESOLUTION NO. 2003-163 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO ENGAGE PUBLIC UTILITY MANAGEMENT AND PLANNING SERVICES, INC. FOR PROFESSIONAL SERVICES IN AN AMOUNT NOT TO EXCEED $14,875.00 FOR THE VALUATION OF THE CITY'S INFRASTRUCTURE ASSETS IN ACCORDANCE WITH THE REQUIREMENT BY THE GOVERNMENTAL ACCOUNTING STANDARD BOARD STATEMENT 34, WITHOUT COMPETITIVE BIDDING AND WITHOUT ADVERTISEMENT FOR BIDS; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Charter of the City of Dania Beach, Part III, Article 3, Section 4, Subsection (J), provides that during unusual conditions or emergencies, the City Commission may, by resolution, authorize the purchase by the City Manager of designated supplies, services, equipment and materials in amounts in excess of fifteen thousand dollars ($15,000.00) without competitive bids and without advertisement for bids; and WHEREAS, the Governmental Accounting Standard Board Statement 34 requires the City of Dania Beach to report its infrastructure assets in the City's financial statement; WHEREAS, the City Manager has determined that it is necessary for the City to engage a consultant to perform valuation of the City's infrastructure assets; WHEREAS, the City Manager has determined that it is in the best interest of the City to engage Public Utility Management and Planning Services Inc. to perform the infrastructure valuation of the City's assets. WHEREAS, under the City Manager's approval level, the City has already engaged Public Utility Management and Planning Services Inc. to perform the stormwater fees study. 1 RESOLUTION NO. 2003-163 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the City Manager is authorized to engage Public Utility Management and Planning Services, Inc. to perform the infrastructure valuation of the City's assets as per attachment "A" in an amount not to exceed $14,875 without the competitive bidding process. Section 2. That all resolutions or parts of resolutions in conflict with this resolution shall be repealed to the extent of such conflict. Section 3. That this resolution shall be in force and take effect immediately upon its passage and adoption. PASSED and ADOPTED this 24t" day of June, 2003. VO B&AN , MAYOR — COMMISSIONER ATTEST. ROLL CALL: COMMISSIONER CHUNN - YES ( �4.A� -0 10 ,�4�_ COMMISSIONER FLURY—YES CHARLENE JO N ON COMMISSIONER MIKES - YES CITY CLERK VICE-MAYOR MCELYEA - YES MAYOR ANTON - YES APPROVED AS TO FORM AND CORRECTNESS: BY: THOMAS J. AN BRO CITY ATTORNEY 2 RESOLUTION NO. 2003-163 ATTACHMENT "A" • Frederick Bloetscher, Ph.D., P.E. Public Utility Management and Planning Services, Inc. P.O. Box 1890 Hollywood, FL 33022-1890 SCOPE OF SERVICES GASB 34 Inventory of Stormwater, City Property and Roadway Infrastructure, Including Evaluation of Street Pavement Condition This proposal is made in response to a request from the City of Dania Beach for services regarding the preparation of documents for the City of Dania Beach to complete an inventory of City owned property and facilities with the intent of meeting GASB 34 requirements. Included in the inventory will be development of the stormwater system (which does not exist) and City-owned roads, including the newly annexed areas, as well as parks, building sand open space. The inventory will be used to value the City's existing infrastructure. The tasks include the evaluation of the condition of the City owned roadway pavements. This information will be used to support prioritization of roadway improvements and paving in the City's capital improvement program, repair prioritization in the capital plan and will serve to support the City's efforts toward compliance with GASB 34. The following tasks must be completed: • Stormwater: • Review of Stormwater Master Plan and maps • Derivation of Stormwater system maps for newly annexed areas • Compilation of inventory of stormwater system which includes storm drains catch basins,pipes and other assets that are connected to the system • Valuation of stormwater system • Roadways • From maps determine City-owned streets and determination of lane miles • Determination of existence of sidewalks and condition • Inventory of landscaping and other roadway improvements including pavers block, street surface, base, guard rails if applicable, curbs and gutters and irrigation system • Site investigation of pavement condition of City-owned streets • Valuation of the current roadways • From maps determine City-owned property and existing facilities including: P Y P P Y g g ATTACHMENT "A" • Parks and recreation sites • Buildings • Beach improvements • City Hall • Parking Areas • Valuate the facilities with the exception of buildings. This should include lighting system, irrigation systems, tennis courts, dugouts, playgrounds equipment etc. • Canal System: Value the city's owned canal system • Update of Utility infrastructure (water and sewer) to comply with valuation methodology The priority for the inventory will be: • General Fund • Stormwater • Water and Sewer The City will provide any maps it has that may be useful to this investigation. Important Note: Public Utility Management and Planning Services, Inc. is aware that the City has adopted a capitalization level of $10,000 for all infrastructures which have an expected life of over 5 years. Only assets with a value (estimated historical cost) of $10,000 or more should be included in the report. Phase I— General Fund Property Inventory Public Utility Management and Planning Services, Inc. will review of City property maps to collect inventory of facilities owned by the City. A site visit will occur for each site and maps will be developed for each site for use in valuating the asset. Public Utility Management and Planning Services, Inc. will provide an inventory and a replacement value for this infrastructure as of October 1, 2002. Hard copies of data will be in a form that can be placed on the City's GIS system. Based on discussions with the City, decisions will be made thereafter to support GASB 34 requirements. Final maps used for the inventory will be provided to the City for input onto the City's GIS system. Estimated time: 24 hours. Work product is a spreadsheet and marked-up maps. Phase II—Stormwater Inventory Public Utility Management and Planning Services, Inc. will review of Stormwater Master Plan and maps to collect inventory of stormwater piping and catch basins in the City. However, for the annexed area, this information does not exist in City files. Public Utility Management and Planning Services, Inc. will provide an inventory and a ATTACHMENT "A" replacement value for this infrastructure as of October 1, 2002. Based on discussions with the City, decisions on the amount of depreciation to be applied will be made thereafter to support GASB 34 requirements. Final maps used for the inventory will be provided to the City for input onto the City's GIS system. Estimated time: 40 hours. Work product is a spreadsheet and marked-up maps. Phase III—Pavement Inventory Public Utility Management and Planning Services, Inc. will use City maps to compile an inventory of the streets and related improvements in Dania Beach. The requirements include the following: • Estimated widths of each City-owned roadway and conversion to lane miles ® Related improvements such as curbing, medians and sidewalks a Condition of pavement on each road based on driving surveys © Photograph support for condition surveys Public Utility Management and Planning Services, Inc. will provide a replacement value for this infrastructure as of October 1, 2002. Based on discussions with the City, decisions on the amount of depreciation to be applied will be made thereafter to support GASB 34 requirements. Final maps used for the inventory will be provided to the City for input onto the City's GIS system. • Public Utility Management and Planning Services, Inc. may require City services to help with investigations on busy roadways. Estimated time: 30 hours. Work product is a spreadsheet, letter report with photo documentation and marked-up maps. Phase IV—Water and Sewer Inventory Public Utility Management and Planning Services, Inc. has previously provided a summary for water and sewer infrastructure to the City at no cost. A replacement value was determined for these assets. The valuation will be made using the same system as developed for stormwater. A review of the asset list will be conducted to verify any improvements since its development have been accounted for. Estimated time: I hours. Work product is a spreadsheet. Phase V—Valuation Methodology Public Utility Management and Planning Services, Inc. will work with the City and its auditors to develop a reasonable methodology for valuing assets. The City's current situation presents two problems in meeting this goal in a more concise manner — lack of records on contracts and lack of dating of improvements. GASB 34 assumes that the City may start at a given point in time to establish its assets. In Dania Beach, many improvements are over 30 years old, yet belong in the asset inventory, such as piping, parks and buildings. Because the dates and original construction values are unknown a method to value these facilities from another perspective will be developed. ATTACHMENT "A" The following assumptions will be employed: o All assets must be reported based on the City's capitalization level. With regard to landscaping, only landscaping installed and maintained by the City will be included o The inventory will capture all assets, despite age, as best as possible, with some estimate of age, assuming they were initially installed as having significant value (example utility piping that may be as much as 70 years old) a The asset value should tie to the "Net Plant Assets" in the annual audit ® Disposable infrastructure, such as signs, will be deemed expenses, not capital. assets, regardless of cost ® Since most infrastructure age cannot be accurately determine, averaging will be employed where necessary v County developed schedules of values for roadway infrastructure will be used for consistency among municipalities in Broward County A draft methodology will be developed and distributed to the City'and its auditors prior to employing the methodology on all assets. Estimated time: 24 hours. Work product is a report. • Limitations of the Methodology The work will not include environmental audits, soil testing, or property surveys, including review of the Official Records for Broward County. It is assumed base maps will be provided by the City for mark-up by the Consultant. Duplication costs and costs for copies of photographs are additional costs. Reporting Requirements Public Utility and Management Services, Inc. after completion of no less than fifteen (15) percent and no more than twenty (25) percent of the project appraisal work, should meet with representatives from the City to present preliminary findings, explain methodology and point out any unexpected or unique circumstances to City staff. City stall shall review the information presented with the firm and City staff shall then agree on methodology to be implemented for the remainder of the work to be accomplished. The appraisal report shall, at a minimum, include the followings: 1. A description of the methodology used in preparing the appraisal. 2. Acknowledge of compliance with applicable GASB 34 guidelines. • 3. Listing of specific streets, sidewalks, irrigation system, canals and other items appraised in the report. ATTACHMENT "A" • 4. Estimated cost for each of the categories listed under Scope of Service. 5. Estimated life for each of the categories listed under Scope of Service. 6. Annual/accumulated depreciation for each of the categories listed under Scope of Service. It is agreed upon that Public Utility and Management Services, Inc. will deliver a preliminary draft to the City by September 20, with a final report to the City no later than October 5, 2003. The firm may require making a presentation to the City Commission if staff finds it necessary. Summary of Hours Item Hours Rate Cost Infrastructure Inventory- General Fund 24 $ 125 $ 3,000 Infrastructure Inventory-Stormwater 40 $ 125 $ 5,000 Infrastructure Inventory- Roads 30 $ 125 $ 3,750 Infrastructure Inventory-Water and Sewer 1 $ 125 $ 125 Methodology 24 $ 125 $ 3,000 • TOTAL $ 14,875 All costs to be paid as lump sum, billed on a monthly basis up to the lump sum amount. Payment to be made 45 days after invoice is submitted. • i Agenda Request Form City of Dania Beach 7s4 Agenda Item: Date of Commission meeting: 6/17/2003 Description of Agenda Item: Engage Public Utility Management& Planning Services for Infrastructure Valuation Commission action being requested: Adopt Resolution or Ordinance ® Expenditure ® Award BID/ RFP ❑ Presentation ❑ General approval of item ❑ Continued from meeting Other{Please explain) -.-�' , 5.:,.. ..�.�.... Summary explanation and background GASB 34 requires all governmental agencies to records its assets which include infrastructure assets. The City is required to implement GASB 34 for year-ending September 30, 2003. The City needs to iengage a consultant who is either an engineer or an appraiser to perform this tasks A�ttacheyd exhibits a tl additional back materials Please list ; ` p ) ! Staff Memo Resolution Proposal For purchasing requests ONLY Department: Finance Amount: $14,875.00 Fund: General: ® Water: ® Sewer: ® Stormwater: ® Grants: ❑ Capital: ❑ Account Name: Account Number: Submitted by: Patricia Varney Date: 6/17/2003 Department Director: Date: Admin. Services Director: Date: • Finance Director: Patricia Varney Date: 6/17/2003 City Manager: Ivan Pato Date: 6/17/2003 • - CITY OF DANIA BEACH DEPARTMENT OF FINANCE MEMORANDUM TO: Ivan Pato Memo: DFA-03-025 City Manager FROM: Patricia Varney Director of Finance DATE: June 17, 2003 SUBJECT: GASB 34 Infrastructure Valuations Issue To engage Public Utility Management and Planning Services Inc. to perform infrastructure valuation for the City of Dania Beach in accordance to GASB 34 requirement. • Back rg ound On June 30, 1999, the Governmental Accounting Standards Board issued Statement No. 34 which establishes new financial reporting standards for state and local governments. GASB 34 requires that governmental entities to report its capital assets (land, infrastructure, buildings, furnishings and equipment) as component of its financial statement and that infrastructure be reported at historical cost, net of accumulated depreciation. Under the City Manager's authority, Public Utility Management and Planning Services Inc. has been engaged to perform the Stormwater user fee for fiscal year 2004 instead of Government Services Group. While we were discussing on this issue, I requested Public Utility Management Planning Services Inc. to submit a proposal on citywide infrastructure valuation. Mr. Fred Bloetcher submitted a proposal of$14,875. When I was with the City of Lauderdale Lakes, I issued a RFP for infrastructure study in June 2002, and the lowest cost I obtained was from American Appraisal in the amount of $18,350. $11,800 for the General Fund and $6,550 for the Stormwater Fund. The City of Lauderdale Lakes is a smaller city in size than the City of Dania Beach. The total area of the City is approximately 4.5 square miles, and does not have any water and sewer utilities. 1 • Mr. Bloetcher has also performed the Water and Wastwater Facilities Plan for the City a couple of months ago and he is familiar with the boundaries of the City. I felt comfortable to recommend Mr. Bloetcher to perform the task of infrastructure valuation. Since the City has already engaged Mr. Bloetcher in the amount $12,000 for the stormwater fees under the City Manager's authority, and with this proposal of$14,875, it will be over$15,000 that will require City Commission's approval. 2