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Cg41FORN`p CITY COUNCIL STAFF REPORT
DATE: December 17, 2014 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO AGREEMENT 6288 WITH NBS
GOVERNMENT FINANCE
GO IN CE GROUP FOR ASSESSMENT DISTRICT,
LIGHTING & LANDSCAPE MAINTENANCE DISTRICT, COMMUNITY
FACILITIES DISTRICT, AND COUNTY SERVICE AREA
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 annexations to Community Facilities Districts.
RECOMMENDATION:
1. Approve Amendment No. 1 to Agreement No. 6288 with NBS Government
Finance Group, for Community Facilities District annexation services for the
remainder of the current contract term through June 30, 2017, per the schedule
of fees as provided in Exhibit A-1.
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, 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.
The City has 5 Assessment Districts (AD), 9 Lighting & Landscape Maintenance
Districts (LLMD), 2 Community Facilities Districts (CFD), and 1 County Services Area
(CSA). NBS currently performs administration services for these districts in accordance
with the Scope of Services as per their agreement. The administration of the districts
includes a variety of services related to the reporting of assessment information to the
County of Riverside Assessor's Office, researching levy rejects, providing delinquency
management services, closeout services, and detailed audits of individual districts.
The current agreement does not provide for services related to the annexations into the
Community Facilities districts. Amendment No. 1 to the Agreement allows for NBS to
ITEM NO. 1
City Council Staff Report
December 17, 2014 -- Page 2
Approval of NBS Agreement Amendment
provide professional services for CFD annexations. NBS has the experience and
expertise required to complete these tasks.
The current agreement is for an initial term of three years through FY 2014-15, with two
one-year renewal options. Either party may cancel the agreement at any time by
providing 30 days written notice.
FISCAL IMPACT:
The fees for anticipated CFD annexations services are as follows:
No. of Concurrent Annexations Consulting
1 Annexation $7,500
2 Concurrent Annexations (per annexation 6,000
3 Concurrent Annexations (per annexation 5,000
4 Concurrent Annexations (per annexation 4,250
5 or more Concurrent Annexations (per annexation 3,750
(1) "Concurrent' means annexations occur on the same timeline and same
City Council dates.
(2) Plus expenses - see description of expenses below.
(3) Fiscal Impact analysis is not included in the scope listed above, and if
required will be priced separately.
All fees will be paid for by the developers of the new projects through the CFD. The
costs will be budgeted for using matching revenue in accounts 140-3026-43200 and
140-3526-43200. The budget in these accounts for future years will be adjusted as
appropriate.
Geoffrey iehl, Director of Finance mes Thompson
Chief of Staff/ City Clerk
David H. Ready, Ci ger
Attachment:
Agreement Amendment No. 1
02
AMENDMENT NO. 1
TO
District Administration, Tax Roll Billing and Related Services
(Agreement No. 6288)
THIS FIRST AMENDMENT to the Contract Services Agreement No. 6288 for District Administration,
Tax Roll Billing and Related Services is made and entered into on 201_byand 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. City and Consultant desire to amend 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 pursuant to the Scope of Services and Schedule of Compensation in Exhibit A-1.
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 CFD Annexation Services, to the City as
described in the Scope of Services/Work attached to this Agreement as Exhibits "A" and "A-V and
incorporated by reference (the "services" or "work"). Exhibits "A" and "A-V 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".
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.
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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-1
CONSULTANT SCOPE OF SERVICES
CFD Annexation
Consultant will complete all tasks required to annex territory to a CFD, as listed below.
Kick-Off Meeting, Project Schedule. Consultant will meet with Client staff, legal
counsel, the financial advisor and other interested parties to:
• Establish lines of communication.
• Clarify the specific project goals and criteria that will meet the Client's preference.
• Identify and resolve any special circumstances regarding the annexation of the CFD.
• Develop project schedule to meet legal requirements and provide for effective
interaction of all involved parties.
• Establish meeting dates consistent with schedule to achieve project milestones.
Data Collection. Consultant will gather and review data relevant to the annexation of
territory to a CFD. Data will be obtained from various sources, including Client records,
Assessor's parcel maps, and County Assessor information.
District Boundaries. Consultant will make determinations of the property subject to
the Special Tax.
• Establish boundaries for the annexation area of the CFD, giving consideration to
both the project area and peripheral lands.
• Verify ownership based on last equalized tax roll.
Cost Estimate. Consultant will obtain the estimate of project costs and incidental
expenses and prepare a total project Cost Estimate.
Rate and Method of Apportionment. Consultant will work with Client staff, legal
counsel, the financial advisor and other interested parties to determine if any changes
are to be made to the Rate and Method of Apportionment of the CFD.
Mapping. Consultant will prepare the Annexation Boundary Map and related
documents and present to Client staff as required by the Mello-Roos Community
Facilities Act of 1982.
Special Tax Report. Based on the results of the aforementioned reviews, discussions
and modifications, Consultant will prepare a detailed written report (Special Tax Report)
including the Cost Estimate, the Rate and Method of Apportionment and the Boundary
Map and present to Client staff, legal counsel, and property owners. Consultant will
also file the Special Tax Report with the City Clerk and will include a signed Special Tax
Certificate.
Notices and Ballots. Consultant will prepare and mail notices and ballots to all
property owners or will coordinate with the County Registrar of Voters to mail notices
CN BS Palm Springs CFD Annexatl0A_12.09.14 revised for all annexations v4 as amendment to existing agreement 7
and ballots to registered voters within the territory to be annexed to a Community
Facilities District. The notices and ballots will comply with `Proposition 218, The Right
to Vote on Taxes Act", the Mello-Roos Community Facilities Act of 1982 and all
applicable provisions of the Elections Code. Final form of notices and ballots will be
approved by Client staff and legal counsel. Consultant will also tabulate all property
owner ballots or provide any necessary assistance to the County Registrar of Voters in
the tabulation of registered voter ballots. Consultant will file a written summary of the
election results with Client staff.
Public Hearing. Consultant will present all necessary testimony and respond to public
comments regarding the annexation proceedings.
Filing CFD Documents. Consultant will record the Annexation Boundary Map with
County Recorder in compliance with the Mello-Roos Community Facilities Act of 1982.
Consultant will record the Notice of Special Tax Lien, including the Rate and Method of
Apportionment, with County Recorder in compliance with the Mello-Roos Community
Facilities Act of 1982.
COMPENSATION FOR SERVICES
CFD Annexation
. of Concurrent Annexations Consulting
1 Annexation $7,500
2 Concurrent Annexations (per annexation 6,000
3 Concurrent Annexations (per annexation 5,000
4 Concurrent Annexations (per annexation 4,250
5 or more Concurrent Annexations (per annexation 3,750
(1) "Concurrent" means annexations occur on the same timeline and same
City Council dates.
(2) Plus expenses- see description of expenses below.
(3) Fiscal Impact analysis is not included in the scope listed above, and if
required will be priced separately.
Expenses
Customary out-of-pocket expenses will be billed to the Client at actual cost to
Consultant. These expenses may include, but not be limited to, mailing fulfillment,
postage, reproduction, telephone, travel, meals and various third-party charges for data,
maps, and recording fees.
Terms
Services will be invoiced monthly. Expenses will be itemized and included in the next
regular invoice. 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. Either party can cancel contracts with 30 days written notice.
QN BS Palm Springs_CFD Annexatir>2_12.09.14 revised for all annexations v4 as amendment to existing agreement 08