HomeMy WebLinkAbout7/6/2016 - STAFF REPORTS - 2.G. *VALM$,.
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°4<.RoaN�P CITY COUNCIL STAFF REPORT
DATE: July 6, 2016 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 2 TO AGREEMENT 6288 WITH NBS
GOVERNMENT FINANCE GROUP FOR ASSESSMENT DISTRICT,
LIGHTING & LANDSCAPE MAINTENANCE DISTRICT, COMMUNITY
FACILITIES DISTRICT, AND COUNTY SERVICE AREA AUDIT AND
ADMINISTRATION SERVICES
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasury
SUMMARY
The City Council will consider an amendment to the current agreement with NBS to
provide professional services for County Service Area (CSA) 152.
RECOMMENDATION:
1. Approve Amendment No. 2 to Agreement No. 6288 with NBS Government
Finance Group, for County Service Area audit and administration services for the
remainder of the current contract term through June 30, 2017, per the schedule
of fees as provided in Exhibit A-2.
2. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
An agreement with NBS was approved by the City Council in October, 2012, and
amended in February, 2015, with extension options through June 30, 2017 to provide
the City with Assessment District, Lighting & Landscape Maintenance District,
Community Facilities District and County Service Area administration services.
Community Service Area (CSA) 152 provides funding for the National Pollutant
Discharge Elimination System (NPDES) through a tax levy which is assessed annually
by the County of Riverside through property tax assessments. Staff recommends
amending the agreement with NBS to include conducting a comprehensive boundary
and charge audit and to work with the County Assessor and Auditor-Controller's offices
to make assessment changes and corrections as appropriate, and then to provide
annual charge administration services.
The current agreement runs through FY 2016-17. Either party may cancel the
agreement at any time by providing 30 days written notice.
it EM NO.
City Council Staff Report
July 6, 2016 -- Page 2
Approval of NBS Agreement Amendment 2
FISCAL IMPACT:
The fees for anticipated CSA 152 audit and administration services are as follows:
CSA 152 NPDES Charge Review Internal Processes and Consulting
Procedures, Provide Boundary Audit, and Levy Audit Fees
1 Consulting Services $22,400
2 Estimated Expenses 1,500
Total Not-To-Exceed of Fees Above $23,900
(1) The Consulting Fees and Estimated Expenses include two on-site visits to the City;
one for staff interview and one for the presentation of the recommendations report
to City staff. Additional onsite visits may incur additional fees and expenses.
(2) Customary out-of-pocket expenses will be billed to the City at actual cost to NBS.
These expenses may include, but not be limited to travel, lodging, meals, mailing
fulfillment, postage, supplies, reproduction, telephone, data, and mapping.
Annual Administration Services for CSA 152 NPDES Charge Consulting
Fees
1 Consulting Services $12,750
2 Estimated Expenses 250
Total Not-To-Exceed of Fees Above $13,000
(1) The Consulting Fees and Estimated Expenses include an annual assessment
computation and rate analysis, preparation of the annual Engineer's report,
noticing and resolution coordination, Public Hearing attendance if requested,
and levy submittal to the County.
(2) Customary out-of-pocket expenses are the same as above.
All fees will be paid out of the tax revenues from CSA 152, There are sufficient funds in
account 124-4242-48400 to pay the contractual service costs.
i11L"_1
Geoffre . Kehl Marcus Fuller
Director of Finance and Treasurer Assistant City Manager
mes Thompson David H. Ready, City ger
Chief of Staff/ City Clerk City Manager
Attachment:
Agreement Amendment No. 2
02
AMENDMENT NO. 2
TO
District Administration, Tax Roll Billing and Related Services
(Agreement No. 6288)
THIS SECOND AMENDMENT to the Contract Services Agreement No.6288 for District Administration,
Tax Roll Billing and Related Services is made and entered into on , 2016 by and between
the City of Palm Springs, a California charter city and municipal corporation (hereinafter referred to as the
"City"), and NBS Government Finance Group (dba NBS), (hereinafter referred to as the"Consultant")
collectively, the "Parties".
RECITALS
A. City and Consultant previously entered into a contract services agreement for District
Administration, Tax Roll Billing and Related Services, which was made and entered into on November 13,
2012 (the"Agreement')for three years with two one year renewal options through FY 16-17 in accordance
with the schedule of fees set forth in Exhibit "A".
B. Section 3.3, "Changes" allows for changes in the Scope of Services/Work via executed
written Amendment.
C. On February 9, 2015,the City and Consultant amended the Agreement(Amendment#1)to
add Community Facilities District(CFD)annexation services for the remainder of the term of the agreement
through FY 16-17.
D. City and Consultant desire to amend the Agreement (Amendment #2) to add Community
Facilities District(CFD)annexation services for the remainder of the term of the agreement through FY 16-
17 pursuant to the Scope of Services and Schedule of Compensation in Exhibit A-2.
NOW,THEREFORE, in consideration of the mutual promises and covenants contained herein,the
Parties agree as follows:
AGREEMENT
1. Section 1.1 "Scope of Services' of the Agreement is hereby amended as follows:
"In compliance with all terms and conditions of this Agreement, Consultant shall provide District
Administration, Tax Roll Billing and Related Services, including County Service Area Audit and
Administration Services,to the City as described in the Scope of Services/Work attached to this Agreement
as Exhibits "A" and "A-1" and "A-2" and incorporated by reference (the "services" or"work"). Exhibits "A"
and "A-1"and"A-2" include the agreed upon schedule of performance and the schedule of fees. Consultant
warrants that all services and work shall be performed in a competent, professional, and satisfactory
manner consistent with prevailing industry standards. In the event of any inconsistency between the terms
contained in the Scope of Services/Work and the terms set forth in this Agreement, the terms set forth in
this Agreement shall govern."
Section 3.1 "Compensation of Consultant' of the Agreement is hereby amended as follows:
"Consultant shall be compensated and reimbursed for the services rendered under this Agreement in
accordance with the schedule of fees set forth in Exhibits "A" and "A-1" and "A-2".
1 03
2. Full Force and Effect. This modifying Amendment is supplemental to the Agreement and is by
reference made part of said Agreement. All of the terms, conditions, and provisions, thereof, unless
specifically modified herein, shall continue in full force and effect. In the event of any conflict or
inconsistency between the provisions of this Amendment and any provisions of the Agreement, the
provisions of this Amendment shall in all respects govern and control.
3. Corporate Authority. The persons executing this Amendment on behalf of the Parties hereto warrant
that (1) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this
Amendment on behalf of said party, (iii)by so executing this Amendment, such party is formally bound to the
provisions of this Amendment, and (iv) the entering into this Amendment does not violate any provision of
any other agreement to which said party is bound.
[SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the parties have executed this Amendment as of the dates stated
below.
ATTEST: "CITY"
CITY OF PALM SPRINGS, CA.
By By
James Thompson, City Clerk David H. Ready, City Manager
Date: Date:
APPROVED AS TO FORM:
By
City Attorney
Date:
"CONSULTANT"
NBS Government Finance Group (dba NBS)
Date: By:
Date:
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EXHIBIT A-2
CONSULTANT SCOPE OF SERVICES
Review of Internal Processes and Procedures Related to the CSA 152 NPDES
Charge
Project Schedule. NBS will meet with City staff, legal counsel, and other interested
parties to:
• Establish lines of communication.
• Clarify the specific project goals and criteria that will meet the City's preference.
• Identify and resolve any special circumstances regarding the charge.
• Develop project schedules and provide for effective interaction of all involved
parties.
• Establish meeting dates consistent with schedule to achieve project milestones.
Data Collection and Review. NBS will gather and review data relevant to the project,
including but not limited to:
• Administrative policies or other documents pertaining to the administration of the
charge.
• Budgets including a breakdown of City staff costs.
• Description of City staff time coding or cost allocation systems applicable to work
performed on the charge.
• City's cost allocation plan.
• Description and templates for any administrative functions related to the charge
currently in use by the City.
Staff Interview. NBS will interview City staff to gather information about the ongoing
administration of the charge, both the historical and current processes in place to
administer the charge, and any other internal systems related to the ongoing
administration of the charge.
Fund Balance Review. NBS will review historical and current fund balances and the
tracking processes and procedures of the funds associated with the charge, any
surpluses, deficits, current reserve fund levels, any projections previously prepared by
the City, along with any goals and policies associated with the charge.
Staff Cost Review. NBS will review the process for determining the annual projected
internal staff costs and expenses incurred while administering the charge. Cost
categories may include, but not be limited to, all relevant expenses, and incidental costs
(engineering, legal, City staff, consultants and ongoing administration).
Administration Procedures. NBS will review current policies and procedures for the
charge, and any other documents pertinent to ongoing administration of the CSA 152
NPDES Charge. NBS will review City staffs understanding of the CSA Act, the
administration process, and ongoing administration of the charge.
QN KC 1 Palm Springs CSA 152 Audit and Administration 2016-06-21 Exhibit A-2 07
Revised Procedures. NBS will recommend modifications and the creation of policies
and procedures, forms, documents, timelines and systems consistent with the CSA Act
and the goals and standards of the City for ongoing administration of the charge.
Recommendations Report. Prepare an initial report identifying issues and possible
solutions including critical status and a proposed timeline. The report will provide
analysis and support for discussion by staff and the City Council.
Presentation of Recommendations Report. NBS will present the recommendations
and possible solutions detailed in the report to the City and address any questions or
concerns.
Meeting Attendance. NBS will attend meetings to address questions and/or concerns.
Meeting attendance is subject to additional reimbursement for time and travel expenses.
Toll-Free Phone Number. NBS will provide a toll-free phone number for use by the
City staff and all stakeholders. NBS staff will be available to answer questions
regarding the project.
City Responsibilities. The City shall furnish Consultant with any pertinent information
that is available to City and applicable to the Services. The City shall designate a
person to act with authority on its behalf in respect to the Services. The City shall
promptly respond to Consultant's requests for reviews and approvals of its work, and to
its requests for decisions related to the Services. City understands and agrees that
Consultant is entitled to rely on all information and documents supplied to Consultant by
City or any of its agents or contractors and other government sources or proxies thereof
as being accurate and correct and Consultant will have no obligation to confirm that
such information and documentation is correct and that Consultant will have no liability
to City or any third party if such information is not correct.
CSA 152 NPDES Charge Boundary Audit
Project Schedule. NBS will communicate with City staff, legal counsel and other
interested parties to:
• Establish lines of communication.
• Clarify the specific project goals, components and criteria that will meet the City's
preference.
• Identify and resolve any special circumstances that may be involved in the project.
• Develop project schedules to meet legal requirements and provide for effective
interfacing of all involved parties.
• Establish meeting points consistent with schedule to achieve project milestones.
• Establish and coordinate with City staff a schedule to assure completion of
necessary actions and compliance with statutes.
Boundary Audit. NBS will research and compare the 2015/16 fiscal year assessment
\D N KS 2 Palm Springs GSA 152 Audit and Administration 2016-06-21 Exhibit A-2 08
roll, County Assessor's secured roll data, boundaries from City GIS data, and the
original formation and 2015/16 fiscal year documents to identify parcels levied outside
the boundaries and parcels missed within the boundaries of the CSA.
Findings Report. NBS will document findings as a result of the audit including
proposed corrections and fiscal impact for review and approval by the City.
Corrective Measures. NBS will request the implementation of any corrective
measures by the County Auditor-Controller's Office on behalf of the City. NBS will also
work with the City to ensure funds are redistributed where applicable.
Preventative Measures. NBS will provide the City with an updated parcel listing to
ensure future assessment rolls reflect all and only parcels within the boundaries of the
CSA.
City Responsibilities. The City shall furnish Consultant with any pertinent information
that is available to City and applicable to the Services. The City shall designate a
person to act with authority on its behalf in respect to the Services. The City shall
promptly respond to Consultant's requests for reviews and approvals of its work, and to
its requests for decisions related to the Services. City understands and agrees that
Consultant is entitled to rely on all information and documents supplied to Consultant by
City or any of its agents or contractors and other government sources or proxies thereof
as being accurate and correct and Consultant will have no obligation to confirm that
such information and documentation is correct and that Consultant will have no liability
to City or any third party if such information is not correct.
CSA 152 NPDES Charge Levy Audit
Project Schedule. NBS will communicate with City staff, legal counsel and other
interested parties to:
• Establish lines of communication.
• Clarify the specific project goals, components and criteria that will meet the City's
preference.
• Identify and resolve any special circumstances that may be involved in the project.
• Develop project schedules to meet legal requirements and provide for effective
interfacing of all involved parties.
• Establish meeting points consistent with schedule to achieve project milestones.
• Establish and coordinate with City staff a schedule to assure completion of
necessary actions and compliance with statutes.
Levy Audit. NBS will research and compare the 2015/16 fiscal year assessment roll as
corrected by the Boundary Audit, County Assessor's secured roll data, applicable City
data, and the Method of Assessment (rates) found in the original formation documents,
the 1997/98 (Prop. 218) and 2015/16 fiscal year documents and reports to recalculate
assessment levies for all parcels based on all applicable property characteristics, as
1 N RC 3 Palm Springs GSA 152 Audit and Administralion 2016-06-21 Exhibit A-2 09
required by the Method of Assessment.
Findings Report. NBS will document findings as a result of the audit including
historical modifications, misinterpretation and misapplication of the Method of
Assessment, proposed corrections, and fiscal impact for review and approval by the
City.
Corrective Measures. NBS will request the implementation of any corrective
measures by the County Auditor-Controller's Office on behalf of the City. NBS will also
work with the City to ensure funds are redistributed where applicable.
Preventative Measures. NBS will provide the City with an updated assessment roll
and supporting data and calculations in an Excel spreadsheet to ensure future
assessment rolls reflect the correct application of the Method of Assessment for the
charge.
City Responsibilities. The City shall furnish Consultant with any pertinent information
that is available to City and applicable to the Services. The City shall designate a
person to act with authority on its behalf in respect to the Services. The City shall
promptly respond to Consultant's requests for reviews and approvals of its work, and to
its requests for decisions related to the Services. City understands and agrees that
Consultant is entitled to rely on all information and documents supplied to Consultant by
City or any of its agents or contractors and other government sources or proxies thereof
as being accurate and correct and Consultant will have no obligation to confirm that
such information and documentation is correct and that Consultant will have no liability
to City or any third party if such information is not correct.
CSA 152 NPDES Charge Annual Administration Services
Kick-Off Meeting, Project Schedule. NBS will meet with City staff, legal counsel and
other interested parties to:
• Establish lines of communication.
• Clarify the specific project goals, components and criteria that will meet the City's
preference.
• Identify and resolve any special circumstances that may be involved in the
administration of the District.
• Develop project schedules to meet legal requirements and provide for effective
interfacing of all involved parties.
• Establish meeting points consistent with schedule to achieve project milestones.
• Establish and coordinate with City staff a schedule to assure completion of necessary
actions and compliance with statutes.
QN KC 4 Palm Springs CSA 152 Audit and Administration 2016-06-21 Exhibit A-2 10
Database Development. NBS will update the database with current County Assessor's
information including property owner names and addresses, information from the audit,
and any other available data that will augment the existing database.
Budget Preparation. NBS will meet with City staff to review the District budget for the
coming fiscal year. This budget will be based on historical costs and actual and/or
projected changes in costs and/or improvements to be maintained. Cost categories may
include, but are not limited to capital improvements and maintenance costs, incidental
costs (engineering, legal, District administration) and reserve funds.
Assessment Computation and Rate Analysis. NBS will compute the assessment for
each parcel within the District according to the Method of Assessment. NBS will provide
an assessment summary which will include the maximum assessments and current
year assessments, separated by zone and method of assessment categories, if
applicable.
Engineer's Report Preparation. NBS will prepare the annual Engineer's Report and
provide to City staff. The annual Engineer's Report does not require a Registered
Professional Engineer (PE) signature and stamp unless an assessment increase, as
defined by Proposition 218, occurs. The Report will consist of:
• District background information.
• A detailed and technically supported Method of Assessment.
• A description of the improvements and services that are being funded by the District.
• A cost estimate for the improvements and services being funded.
• Copy or reference to the original District Diagram.
• A table showing assessment levies by zone and method of assessment categories.
• An Assessment Roll listing assessments by parcel or reference a complete roll on file
with the City.
Meet with City Staff. NBS will meet with City staff to review the Engineer's Report for
modifications and approval.
Noticing and Resolution Coordination. NBS will coordinate activities to ensure that
required tasks are completed within the scheduled time frame. NBS will assist the City
(or the City's legal counsel) with preparation of any notice of public hearing or other
meetings requiring publication. NBS will assist the City (or the City's legal counsel) with
preparation of the staff report, all legal notices and the associated resolutions described
below:
• Resolution describing improvements, initiating proceedings, and ordering the engineer
to prepare and file a report for the City.
• Resolution preliminarily approving the Engineer's Report.
• Resolution of Intention declaring the intention of the City Council to levy and collect
assessments and setting a date for the public hearing.
• Resolution authorizing the placement of assessments on the secured property tax
bills.
4 \) N QC 5 Palm Springs CSA 152 Audit and Administration 2016-06-21 Exhibit A-2
Public Hearing Attendance. NBS will attend the public hearing as requested by the
City.
Levy Submittal. NBS will submit the levy to the County Auditor-Controller in the
required format. Assessments rejected by the County Auditor-Controller will be
researched and resubmitted for collection on the County Tax Roll. Any parcels that are
not submitted to the County for collection will be invoiced for payment directly to the
City.
Final Engineer's Report. NBS will update the annual Engineer's Report and deliver to
City staff.
Toll-Free Phone Number. NBS shall provide a toll-free phone number for use by the
City, other interested parties and all property owners. NBS will be available to answer
questions regarding the District and the ongoing collection of assessments. Bilingual
staff is available to assist Spanish-speaking property owners.
City Responsibilities. The City shall furnish Consultant with any pertinent information
that is available to City and applicable to the Services. The City shall designate a
person to act with authority on its behalf in respect to the Services. The City shall
promptly respond to Consultant's requests for reviews and approvals of its work, and to
its requests for decisions related to the Services. City understands and agrees that
Consultant is entitled to rely on all information and documents supplied to Consultant by
City or any of its agents or contractors and other government sources or proxies thereof
as being accurate and correct and Consultant will have no obligation to confirm that
such information and documentation is correct and that Consultant will have no liability
to City or any third parry if such information is not correct.
COMPENSATION FOR SERVICES
Review Internal Processes and Procedures, Provide Boundary Audit, and Levy
Audit Related to the CSA 152 NPDES Charge
Consulting Services (1).........................................................................................$22,400
EstimatedExpenses (1, 2)......................................................................................$1,500
Total Not-To-Exceed of Fees Above..................................................................$23,900
(1) The Consulting Fees and Estimated Expenses include two on-site visits to the City, one for
staff interviews and one for the presentation of the recommendations report to City staff.
Additional onsite visits may incur additional fees and expenses.
(2) See description of expenses below.
Annual Administration Services for the CSA 152 NPDES Charge
Consulting Services..............................................................................................$12,750
EstimatedExpenses (1).............................................................................................$250
Total Not-To-Exceed of Fees Above..................................................................$13,000
(1) See description of expenses below.
12
\D N RC 6 Palm Springs CSA 152 Audit and Administration 2016-06-21 Exhibit A-2
Expenses
Customary out-of-pocket expenses will be billed to the City at actual cost to NBS.
These expenses may include, but not be limited to travel, lodging, meals, mailing
fulfillment, postage, supplies, reproduction, telephone, data, and mapping.
Annual Fee Increases
A cost of living allowance ("COLA") may be applied to the Administration services
listed above on October 1 each year, beginning with October 1, 2017. The COLA
would be the actual cost of living increase based on the U.S. Department of Labor,
Bureau of Labor Statistics, Consumer Price Index for all urban consumers for the
Southern California counties.
Terms
Consulting services will be invoiced monthly. Administration services will be billed on a
quarterly basis. Expenses will be itemized and included in the next regular invoice. If
the project is prematurely terminated by either party or delayed for reasons beyond
NBS's control, NBS shall receive payment for work completed. Payment shall be made
within 30 days of submittal of an invoice. If payment is not received within 90 days
simple interest will begin to accrue at the rate of 1.5% per month.
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Qy r7 7 Palm Springs CSA 152 Audit and Administration 2016-06-21 Exhibit A-2