HomeMy WebLinkAbout5/21/2008 - STAFF REPORTS - 2.J. 'PALMS.
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CITY COUNCIL STAFF REPORT
DATE: May 21, 2008 Consent Calendar
SUBJECT: AWARD A CONTRACT WITH NBS GOVERNMENT FINANCE GROUP
FOR ASSESSMENT DISTRICT ADMINISTRATION
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasury
SUMMARY
NBS Government Finance Group (NBS) has been providing the City of Palm Springs
with assessment district administration services for several years. The City currently
has 6 active A.D.'s, 8 active Lighting & Landscape Maintenance Districts and 3 inactive
A.D.'s which need to be closed out. The total expected costs are $40,000, all of which
will be paid for by the assessment districts. No General Fund monies will be used.
RECOMMENDATION:
1. Award a contract with NBS Government Finance Group (NBS) of Temecula, CA
for assessment district administration services for FY 08-09 in an amount not-to-
exceed $40,000.
2. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
NBS will perform all the duties noted in the Scope of Services as per their Proposal.
The administration of the 6 active A.D.'s, including an estimate for the costs of
delinquency management, will be $15,000. This is an average cost of about $16 per
property. If the delinquency management costs begin to exceed the contract limit, an
amendment to the contract will be submitted to Council at a future date.
The costs of putting the 8 Landscaping and Lighting Districts on the property tax rolls
will be at the rate of $250 per district, for a total of $2,000. This also includes
researching and correcting parcel splits, sales of parcels to non-taxable entities, etc.
ITEM NO. .J.
City Council Staff Report
May 21, 2008 -- Page 2
Approval of Contract with NBS for Assessment District Administration
The 3 inactive districts, A.D. 143, A.D. 146, and A.D. 159 have all paid off their band
issues and State law requires that the remaining funds be refunded to the property
owners. However, it would be important to note that these funds cannot be used for
active landscape districts that my have a deficit. NBS has considerable experience in
closing out old A.D.'s, having handled over 60 of them statewide. About 2,200 property
owners will receive a credit on their Fiscal Year 2008-09 property tax bills. The amount
of the credit will vary considerably depending on the amount of the original assessment
on the property.
The total cost for NBS to close out the inactive A.D.'s is a not-to-exceed $20,000. This
cost will be paid from the balances in the A.D.'s before the refund is calculated. The
total cost of all services from NBS for FY 08-09 under this contract is estimated not to
exceed $40,000.
Section 7.04.030 of the Municipal Code provides that the City Council may authorize the
acquisition of supplies, equipment or services without competition when it is determined
that an unusual or unique situations exists, in that due to experience and expertise
demonstrated in prior contracts with the city a particular contractor is uniquely qualified
for a particular task, that makes the application of all requirements of competitive sealed
bidding or competitive sealed proposals contrary to the public interest. Pursuant to the
requirements of Section 7.04.030, the Procurement Manager and the Director of
Finance have determined that the prior contract performance and special expertise of
NBS for assessment district administration services is acceptable and will adequately
protect the public interest in that the total cost of the services to be provided will likely
be equal to or less than what could be obtained through an independent City
competitive process at this time.
FISCAL IMPACT:
All of the costs of this contract and any refunds will be borne by the A.D.'s or the
Landscaping & Lighting Maintenance Districts. There is no General Fund Impact.
-? eoffrey S. Kiehl, Director of Finance &
/Treasurer
David H. Ready, Git ger
Original assessments
1,600 A.D. 143
600 A.D. 146
40 A.D. 159
Attachment: Contract Services Agreement
000051� 2
CONSULTING SERVICES AGREEMENT
With NBS for 1915 Act District Administration Services
THIS AGREEMENT FOR CONSULTING SERVICES (the "Agreement") is made and
entered into this—day of , 2008, by and between the City of Palm Springs, a California
charter city and municipal corporation ("City"), and NBS Government Finance Group (dba
NBS) ("Consultant").
RECITALS
A. City requires the services of a professional consultant to provide district
administration services for current and future assessment districts.
B. Consultant has submitted to City a proposal to provide 1915 Act District
Administration Services for current and future districts pursuant to the terms of this Agreement.
C- Based on its experience, education, training, and reputation, Consultant is
qualified to provide the necessary services to City for the Project and desires to provide such
services.
D. City desires to retain the services of Consultant for the Project.
NOW, THEREFORE, in consideration of the promises and mutual agreements contained
herein, City agrees to retain and does hereby retain Consultant and Consultant agrees to provide
services to the City as follows:
AGREEMENT
1. CONSULTANT SERVICES
1.1 Scope of Services_ In compliance with all terms and conditions of this
Agreement, Consultant shall provide 1915 Act Assessment District Administration Services as
described in the Scope of Services/Work Proposal attached to this Agreement as Exhibit"A" and
incorporated herein by reference (the "services" or "work"), which includes 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 in accordance with all
standards prevalent in the industry. In the event of any inconsistency between the terms
contained in the Scope of Services/Work Proposal and the terms set forth in the main body of
this Agreement, the terms set forth in the main body of this Agreement shall govern.
1.2 Compliance with Law. All services rendered under this Agreement shall be
provided in accordance with all laws, ordinances, resolutions, statutes, rules, and regulations of
City and any federal, state, or local governmental agency of competent jurisdiction.
1.3 Licenses and Permits. Consultant shall obtain at its sole cost and expense such
licenses, permits, and approvals as may be required by law for the performance of the services
required by this Agreement.
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507639.2
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1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that
it has carefully considered how the work should be performed and fully understands the
facilities, difficulties, and restrictions attending performance of the work under this Agreement.
2. TIME FOR COMPLETION.
The time for completion of the services to be performed by Consultant is an essential
condition of this Agreement. Consultant shall prosecute regularly and diligently the work of this
Agreement according to the agreed upon schedule of performance set forth in Exhibit "A".
Consultant shall not be accountable for delays in the progress of its work caused by any
condition beyond its control and without the fault or negligence of Consultant. Delays shall not
entitle Consultant to any additional compensation regardless of the party responsible for the
delay.
3. COMPENSATION OF CONSULTANT
3.1 Compensation of Consultant_ For the services rendered pursuant to this
Agreement, Consultant shall be compensated and reimbursed, in accordance with the schedule of
fees set forth in Exhibit"A" for a total amount that shall not exceed$ 40 000.00.
3.2 Method of Payment. In any month in which Consultant wishes to receive
payment, Consultant shall no later than the first working day of such month, submit to City in the
form approved by City's Controller, an invoice for services rendered prior to the date of the
invoice. Payments shall be based on the rates as set forth in Exhibit "A" for authorized services
performed. City shall pay Consultant for all expenses stated thereon, which are approved by
City consistent with this Agreement, within thirty(30) days of receipt of Consultant's invoice.
3.3 Changes. In the event any change or changes in the Scope of Services/Work is
requested by City, the parties hereto shall execute a written amendment to this Agreement,
setting forth with particularity all terms of such amendment, including, but not limited to, any
additional fees. An amendment may be entered into:
A. To provide for revisions or modifications to documents or other work
product or work when documents or other work product or work is required by the enactment or
revision of law subsequent to tlie preparation of any documents, other work product, or work;
B. To provide for additional services not included in this Agreement or not
customarily furnished in accordance with generally accepted practice in Consultant's profession.
3.4 Appropriations. This Agreement is subject to and contingent upon funds being
appropriated therefore by the City Council of City for each fiscal year covered by the
Agreement_ If such appropriations are not made, this Agreement shall automatically terminate
without penalty to City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
507639 R 2 Revised:518108
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4.2 Schedule of Performance. All services rendered pursuant to this Agreement
shall be performed pursuant to the agreed upon schedule of performance set forth in Exhibit "A".
The extension of any time.period must be approved in writing by the Contract Officer.
4.3 Force Mom. The time for performance of services to be rendered pursuant to
this Agreement may be extended because of any delays due to unforeseeable causes beyond the
control and wiflmout the fault or negligence of Consultant, including, but not limited to, acts of
God or of a public enemy, acts of the government, fires, earthquakes, floods, epidemic,
quarantine restrictions, riots, strikes, freight embargoes, and unusually severe weather if
Consultant shall within ten (10) days of the commencement of such condition notify ffme Contract
Officer who shall thereupon ascertain the facts and the extent of any necessary delay, and extend
the time for performing the services for the period of the enforced delay when and if in the
Contract Officer's judgment such delay is justified, and the Contract Officer's determination
shall be final and conclusive upon the parties to this Agreement.
4.4 '.Perm. Unless earlier terminated in accordance with Section 8.5 of this
Agreement, this Agreement shall continue in full force and effect connnencing upon execution of
this agreement for a period of no more than one (1) year, unless extended by mutual written
agreement of the parties.
5. COORDINATION OF WORK
5.1 Representative of Consultant. The following principal of Consultant is hereby
designated as being the principal and representative of Consultant authorized to act in its behalf
with respect to the services and work specified herein and make all decisions in connection
therewith: David Schroeder, Senior Consultant. It is expressly understood that the experience,
knowledge, education, capability, and reputation of the foregoing principal is a substantial
inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be
responsible during the term of this Agreement for directing all activities of Consultant and
devoting sufficient time to personally supervise the services hereunder. The foregoing principal
may not be changed by Consultant without prior written approval of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the City Manager, or his/her
designee. It shall be the Consultant's responsibility to keep the Contract Officer, or his/her
designee, fully informed of the progress of the performance of the services and Consultant shall
refer any decisions that must be made by City to the Contract Officer_ Unless otherwise
specified herein, any approval of City required hereunder shall mean the approval of the Contract
Officer.
5.3 Prohibition Against Subcontracting or Assi ment. The experience,
knowledge, education, capability, and reputation of Consultant, its principals and employees,
were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall
not contract with any other individual or entity to perform in whole or in part the services
required hereunder without the express written approval of City. In addition, neither this
Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of
law, without the prior written approval of City.
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507G39.^_
5.4 Independent Contractor_ Neither City nor any of its employees shall have any
control over the manner, mode, or means by which Consultant, its agents or employees, perform
the services required herein, except as otherwise set forth herein. Consultant shall perform all
services required herein as an independent contractor of City and shall not be an employee of
City and shall remain at all times as to City a wholly independent contractor with only such
obligations as are consistent with that role; however, City shall have the right to review
Consultant's work product, result, and advice. Consultant shall not at any time or in any manner
represent that it or any of its agents or employees are agents or employees of City.
5.5 Personnel. Consultant agrees to assign the following individuals to perform the
services set forth herein. Consultant shall not alter the assignment of the following personnel
without the prior written approval of the Contract Officer. Acting through the City Manager, the
City shall have the unrestricted right to order the removal of any personnel assigned by
Consultant by providing written notice to Consultant.
Name- Title.-
Mike Rentner President and C.E-O.
Dave Ketcham Director
David Schroeder Senior Consultant
G. INSURANCE
Consultant shall procure and maintain, at its sole cost and expense, policies of insurance
as set forth in Exhibit"B", which is attached hereto and is incorporated herein by reference.
7. INDEMNIFICATION.
To the fullest extent permitted by law, Consultant shall defend (at Consultant's sole cost
and expense), indemnify, protect, and hold harmless City, its elected officials, officers,
employees, agents, and volunteers (collectively the "Indemnified Parties"), from and against any
and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards,
settlements, darnages, demands, orders, penalties, and expenses including legal costs and
attorney fees (collectively "Claims"), including but not limited to Claims arising from injuries to
or death of persons (Consultant's employees included), for darnage to property, including
property owned by City, from any violation of any federal, state, or local law or ordinance, and
from errors and omissions committed by Consultant, its officers, employees, representatives, and
agents, which Claims arise out of or are related to Consultant's performance under this
Agreement, but excluding such Claims arising from the negligence or willful misconduct of the
City, its elected officials, officers, employees, agents, and volunteers- Under no circumstances
shall the insurance requirements and limits set forth in this Agreement be construed to limit
Consultant's indemnification obligation or other liability hereunder.
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507639.2 G O O C1 uD s
8. RECORDS AND REPORTS
8.1 Reports_ Consultant shall periodically prepare and submit to the Contract Officer
such reports concerning the performance of the services required by this Agreement as the
Contract Officer shall require.
8.2 Records. Consultant shall keep such books and records as shall be necessary to
properly perforin the services required by this Agreement and enable the Contract Officer to
evaluate the performance of such services. The Contract Officer shall have full and free access
to such books and records at all reasonable times, including the right to inspect, copy, audit, and
make records and transcripts from such records.
8.3 Ownership of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of this Agreement
shall be the property of City and shall be delivered to City upon request of the Contract Officer
or upon the termination of this Agreement, and Consultant shall have no claim for further
employment or additional compensation as a result of the exercise by City of its full rights or
ownership of the documents and materials hereunder. Consultant may retain copies of such
documents for its own use. Consultant shall have an unrestricted right to use the concepts
embodied therein.
8.4 Release of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of services under this
Agreement shall not be released publicly without the prior written approval of the Contract
Officer.
8.5 Cost Records_ Consultant shall maintain all books, documents, papers, employee
time sheets, accounting records, and other evidence pertaining to costs incurred while performing
under this Agreement and shall make such materials available at its offices at all reasonable
times during the term of this Agreement and for three (3) years from the date of final payment
for inspection by City and copies thereof shall be promptly furnished to City upon request.
9. ENFORCEMENT OF AGREEMENT
9.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim, or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Riverside, State of
Califonnia, or any other appropriate court in such county, and Consultant covenants and agrees to
submit to the personal jurisdiction of such court in the event of such action.
9.2 Waiver. No delay or omission in the exercise of any right or remedy of a non-
defaulting party on any default shall impair such right or remedy or be construed as a waiver.
No consent or approval of City shall be deemed to waive or render unnecessary City's consent to
or approval of any subsequent act of Consultant. Any waiver by either party of any default must
be in writing and shall not be a waiver of any other default concerning the same or any other
provision of this Agreement.
507639.2 5 Revised:518/08
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9.3 Rights and Remedies are Cumulative_ Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the
parties are cumulative and the exercise by either party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or
remedies for the same default or any other default by the other party.
9.4 Legal Action_ In addition to any other rights or remedies, either party may take
legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for
any default, to compel specific performance of this Agreement, to obtain injunctive relief a
declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
9.5 Termination Prior to Expiration of Term. City reserves the right to terminate
this Agreement at any time, with or without cause, upon thirty (30) days written notice to
Consultant, except that where termination is due to the fault of Consultant and constitutes an
immediate danger to health, safety, and general welfare, the period of notice shall be such shorter
time as may be determined by the City_ Upon receipt of the notice of termination, Consultant
shall immediately cease all services hereunder except such as may be specifically approved by
the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior
to receipt of the notice of termination and for any services authorized by the Contract Officer
thereafter. Consultant may terminate this Agreement, with or without cause, upon thirty (30)
days written notice to City.
10. CITY OFFICERS AND EMPLOYEES- NON-DISCRIMINATION
10.1 Non-Liability of City_Officers and Employees. No officer or employee of City
shall be personally liable to the Consultant, or any successor-in-interest, in the event of any
default or breach by City or for any amount which may become due to the Consultant or its
successor, or for breach of any obligation of the terms of this Agreement.
10.2 Covenant Against Discrimination. Consultant covenants that, by and for itself,
its heirs, executors, assigns, and all persons claiming under or through them, that there shall be
no discrimination or segregation in the performance of or in connection with this Agreement
regarding any person or group of persons on account of race, color, creed, religion, sex, marital
status, disability, sexual orientation, national origin, or ancestry.
11. MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, consent, approval, or communication either
party desires or is required to give to the other party or any other person shall be in writing and
either served personally or sent by pre-paid, first-class mail to the address set forth below. Either
party may change its address by notifying the other party of the change of address in writing.
Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed
as provided in this Section.
507639.2 Revised'5I8=
60002
To City_ City of Palm Springs
Attention: City Manager& City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Consultant: Mike Rentner, President and C.E.O.
NSS Government Finance Group
32605 Highway 79 South, Suite 100
Temecula, CA 92592
11.2 Integrated Agreement. This Agreement contains all of the agreements of the
parties and cannot be amended or modified except by written agreement_
11.3 Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing.
11.4 Severability. In the event that any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by
valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability
shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this
Agreement, which shall be interpreted to carry out the intent of the parties hereunder.
11.5 Authority_ The persons executing this Agreement on behalf of the parties hereto
warrant that they are duly authorized to execute this Agreement on behalf of said parties and that
by so executing this Agreement the parties hereto are formally bound to the provisions of this
Agreement.
[SIGNATURE PAGE SEPARATELY ATTACHED]
7 Revised:5/8108
5076392
000� �r."u ;�
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: By:
David 14. Ready
City Manager
NOT TO EXCEED S Initialed:
APPROVED AS TO FORM: ATTEST
By: By:
Douglas C. Holland, James Thompson,
City Attorney City Clerk
"CONSULTANT"
NBS Government Finance Group
Date: By :
Mike Rentner, President
50709 2 8 Revised'518108
0®00w0
EXHIBIT "A"
CONSULTANT'S
SCOPE OF SERVICES/WORK PROPOSAL
Including,
Schedule or Fees
And
Schedule of Pez-£on-nance
Attached and incorporated herein
9 RevIsed:518108
$07639.2 { +,
�ol� oL
B1S
Local Government Solutions
May 8,2008
Ms.Sharon Ainsworth
Deputy City Treasurer
City of Palm Springs
3200 Tahquilz Canyon Way
Palm Springs, CA 92262
Subject: To provide 1915 Act District Administration Services and Related Services
for Current and Future Districts
Dear Ms.Ainsworth:
NOS would like to thank you for the opportunity to provide 1915 Act Administration and
Related Services for the City of Palm Springs('City")as referenced above. We look forward
to continuing our professional relationship.
Please find enclosed our executed Proposal outlining our services to the City or Palm Springs-
Scope of Services
11915 Act Assessment District Administradonj
Expert Resource. First and foremost, NOS will act as the City's"expert resource,"and is
available to answer questions and advise the City on particular issues Involving the Assessment
Districts.
Kick-Off Meeting,Project Schedule. NOS 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 that may be involved in the administration of
the districts.
Develop project schedules 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. NOS will gather and review data relevant to the administration of the districts.
Data will be obtained from various sources, including City records,Assessors parcel maps,and
County Assessor information and establish a database for the assessment districts.
Policy Review. NOS will review polices and procedures that have been eslablished by the
Agency for compliance with the governing documents and law. These policies will be
incorporated into our service to the City.
Cost Recovery. NOS will identify all costs associated with the administration of the Assessment
Districts and recover those casts through the levy process as outlined in§8682 and§8682.1 of
the California Streets and Highways Code. These costs may include, but not be limited to
Registrar/Transfer/Paying Agent fees,Arbitrage Rebate calculation fees,bank fees,and
expenses of the City and its consultants related to the administration of the districts.
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Fund Analysis. NBS will determine the balance requirements and acquire the current cash
balances for the districts. We will make recommendations to ensure that the flow of funds and
fund balances are in compliance with bond documents. Cash flow analysis will also be performed
to determine any levy shortfall or surplus_
Annual Assessment Levy. NBS will calculate the annual assessment levy for each parcel in
each of the districts and submit the amount for each parcel to the County in the format and
medium (i.e.tape, diskette)required by the County Auditor-Controller,
Resubmission or Rejects. NBS will research the status of any parcels rejected by the County
Auditor-Controller,and resubmit corrected data for collection on the County Tax Roll. Any
parcels that are not accepted by the County for collection will be invoiced directly,with payment
directed to the City.
Maintain Assessment District Data. NBS will annually track all parcel changes to ensure that
all changes are documented. Historical parcel change and assessment apportionment data will
be maintained by NBS.
Annual Report. NBS will provide a comprehensive Annual Report that will show a detail listing
of the amounts submitted to the levy or directly billed for collection,details of delinquent
assessments,fund analysis,paid off parcels and release of liens,all bond call activity,and
assessed valuation information.
Delinquency Monitoring.NBS will provide the City with a comprehensive list of delinquencies
after each installment becomes due. This report will show delinquency percentage as well as a
detailed list of each delinquent parcel.
Prepayment Calculation/Amortization Schedule. NBS will provide assessment prepayment
calculations and amortization schedules to interested parties. The requester will pay the cost of
this service; however,there will be no charge to the City or property owners.
Bond Calls. NBS will prepare the spread of principal to be called within maturities for all bond
calls and coordinate the call with the Paying Agent/Trustee.
Release of Liens. NBS will prepare all documents required to release the liens of parcels that
have prepaid the assessment.
Notice of Special Assessment NBS will provide a"Notice of Special Assessment"disclosure
notice to requesting parties as required by§53754 of the Government Code of the State of
California. The fee of any Notice of Special Tax shall be paid by the party requesting the
disclosure notice.
Toll-Free phone Number. NBS will provide a tolFfree phone number for use by the City,other
interested parties and all property owners. Our staff will be available to answer questions
regarding the formation and ongoing collection of assessments for the districts. Bilingual staff is
available for Spanlshspeaking property owners.
County Assessor Reporting. NBS will work with the County Assessor to aid in complying with
the requirements of Revenue&Taxation Code 163. This includes providing data such as parcel
number,original assessment and current principal balance to the County Assessor.
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090 ®i
11915 Act Assessment District Closeout Services)
• Perform a complete analysis of all funds for each Assessment District in accordance with the
Municipal Improvement Act of 1913 and the Improvement Act of 1915,
• Prepare a detailed analysis report for each District projecting revenue and expenditures
resulting in a surplus amount. Projected revenue may include but is not limited to investment
earnings and assessment levies. Projected expenditures may include but is not limited to
debt service payments, arbitrage rebate payments,administrative costs and project
maintenance costs.
• Determine if arbitrage rebate calculations have been performed and funds have been cleared
for disbursement by the Clty.
• Determine the best use of the surplus amount in accordance with applicable laws.
• Prepare a Certificate of Project Completion and Use of Funds for Project Maintenance Letter
to be signed by the Public Works Director,if applicable.
• Prepare a City Council Resolution Declaring Surplus,Determining Use and Approving the
Analysis Report prepared under this scope of work.
• Prepare documents and Coordinate the advanced maturity of bonds as required.
• Prepare a detailed report for the processing of refunds to property owners by the City-
. Review procedures with legal counsel and City staff as required.
• Prepare a detailed delinquency report and consider findings in the analysis of funds and
refunds.
• Coordinate the implementation of a policy for the collection of delinquencies and timeline for
completion.
• NBS will coordinate a meeting with City staff to review the report and recommendations made.
jTax Roll Submittal Services for 1972 Act Landscaping and Lighting Districts)
Data Gathering: Gather and review data pertinent to the Landscaping and Lighting Maintenance
Districts. Data will be obtained from various sources such as the 2008/09 Engineer's Reports,
assessor's parcel maps and county assessor information as determined to be necessary based
on the requirements of the methods of apportionment_
Quality Control: Perform cross-reference tests looking at the various data sources,land use
codes,and other pertinent information to verify the Assessment Roll in the Engineer's Reports.
Database: Create a database of all parcels within the districts and relevant levy information
based on the Assessment Rolls found in the Engineer's Reports,and as provided electronically
by the City.
County Submittal. Submit the levy to the County Auditor Controller in the required electronic
formal Levies rejected by the County Auditor Controller will be submitted to the City for further
research,update of the Assessment Roll and resubmitted for collection on the County Tax Roll.
Any parcels that are nut submitted to the County for collection will be invoiced with payment to be
directed to the City.
Reporting: Provide a listing of parcels and levy amounts applied by the County for the district.
Parcel and levy data can be provided via a CD ROM,diskette or emailed electronic file,if desired.
IDellnquency Management)
NBS will develop a comprehensive delinquency management program which includes a
discussion and interpretation of the issuer's foreclosure covenant together with a review of the
existing polices and procedures of the City.This service can be provided as part of overall
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annual administration or as a stand-alone service. When deemed as the appropriate course of
action, NBS will perform the following.
Delinquency Reports. NBS will provide the City with an updated list of delinquencies prier to
sending any of the below letters. This report will also detail each district's percentage of
delinquencies,as well as a detailed list of each delinquent parcel.
Reminder Letter. At the City's direction,send a reminder letter to the property owner of each
delinquent parcel for the December 10th installment. The purpose of the letter is to inform and
educate the property owner of their obligation to pay assessments.
Demand Letter.At the City's direction,send a demand letter to the property owner of each
delinquent parcel far the April 10th installment This letter will be mailed to any property owner
who remains delinquent for both installments or who Is delinquent for April 10th only. The
purpose of this letter is to further educate the property owner and advise them of a potential
foreclosure.
Foreclosure Letter.This type of letter is typically sent after the installments for a parcel have
been removed from the tax roll. The letter delineates what amount must be paid directly to the
City to forestall the turnover of documents to the foreclosure attorney.
Tax Roll Removal. NBS will provide the information required to remove parcels from the tax
roll and coordinate with the County Auditor Controller to verify the removal. This step is in
preparation of turning the parcels over for foreclosure. Once removed from the tax roll,each
property owner will receive one final foreclosure letter indicating the amount due and payment
instructions.
Payment Plans. At the City's discretion,NBS will offer payment plans to property owners in
lieu of turning parcels over to the City's foreclosure counsel.
Subsequent Foreclosure Services. NBS will prepare and deliver all information to the City's
foreclosure counsel. We will also continue to supply the City's counsel with additional
information throughout the foreclosure process. We will continue to respond to property owner
and City staff phone calls regarding the status of all cases,and will coordinate and audit status
reports on a bi-monthly basis from the City's foreclosure counsel.
Toll-Free Phone Number. NBS will provide a toll-free phone number for use by the City,other
interested parties and all property owners. Our staff will be available to answer questions
regarding the formation and ongoing collection of assessments/special taxes for the districts.
Bilingual staff is available for Spanish-speaking property owners.
jApportionmentsi
Parts 10 and 10.5 of the Streets and Highways Code detail the methodology and procedure
that the City must follow in apportioning the assessment lien on parcels that are reconfigured
andfor subdivided. With our experience in district formation and the development of methods
of assessment,we are able to ensure that apportionments are properly performed.
Assuming proceeding under the preferred procedure of Part 10.5, NBS will perform the
following:
Application Farms. NBS will provide apportionment application fors and instructions to the
City's Engineering representative for Inclusion as a condition of approval for subdivision within
an assessment district
Segregation. NBS will apportion the special assessment according to the method of spread
as described In the engineer's report-
Notice of Apportionment. NBS will prepare a notice of apportionment and send it via certified
mail to the issuing underwriter,as required.
Assessment Diagram. NBS will prepare an amended assessment diagram and notice. The
diagram and notice will be filed and recorded with the County Recorder.
Page 4
Amortization Schedule.NBS will prepare an amortization schedule for each newly created
assessment type.
Apportionment Report. NBS will prepare and submit to the City an Apportionment Report
showing the Finalized apportionment and the amended assessment diagram.
In the event proceedings are undertaken under Part 10,the(allowing additional items are
required:
Resolutions. NBS will prepare the required resolutions to order the amended assessment,
the amended assessment diagram, notices to the property owner,and fix the amount of costs
to perform the apportionment.
Public Meetings. NBS will be available to allend any public meetings required to complete
the apportionment.
Fees
11915 Act Administration Services—Current Districts[
A.D. 155 1915 183 $1,773.00
A.D. 157 1915 109 1,811.00
A.D. 158 1915 28 1.500.00
A-D. 161 1915 308 2.635.00
A.D. 162 1915 95 2,635.00
A.D. 164 1915 196 2,635.00
Total Fee $12,989.00
[Revenue and Taxation Code 1631
AnnualFee..................................... ...................... •.. -- ..........................------... -..........no charge
This information is part of the database used to calculate the annual levy. We routinely send this
information to the Counties.
Page 5
�CI
00®0� 0
11915 Act Assessment District Closeout Servicesi
Total for Assessment Districts No. 143. M and 159.................................................................$20,000
ITax Roll Submittal Services for 1972 Act Landscaping and Lighting Districts)
FlatFee Per District.......................................................................................................................• .$250
[Delinquency Managententl
ReminderLetters...............................................................•...................----------- ...............$10
DemandLetters.............................................................................................................................15
Foreclosure Letters................. ...........____..........____.................................................30
Payment Plan Administration......................................................................... .-- ..............150
TaxRoll Removal..........................................................................................................................50
Subsequent Foreclosure Fees......................................................................................................75 +++
Fiscal Year 20008/09 Estimated Annual Fees.............. .........................$5,000 '"""
AM fees are based on a per parceflper disfict basis
'This fee will be recovered as part of the next levy.
"This fee includes filing of"Notice of Intent to Remove Delinquent Installments"
but does not include County Fees for removal from the tax roll.
"'This fee is per parcellper district/per year from the initiation of the foreclosure.
*'This fee is based on an estimate of approximately 25 parcels undergoing foreclosure and
approximately 60 parcels being requiring delinquency management- Fees will be billed by NOS
to the City and recovered directly from the delinquent parcels,resulting in no net cost to the
CRY.
jApportionmentsi
Apportionments will be performed upon request and paid far by the property owners requesting
parcel subdivisions at our then current fee structure,as shown below. NOS will apportion the
assessment according to the original method of spread,prepare the amended assessment
diagram,and record the notice of apportionment and amended diagram per Parts 10 and 10.5
of the Streets and Highways Code.
Part 10.5
Apportionment Fee(Four parcels or less):............................................................. .....$950
Apportionment Fee(Five or more parcels):,..... ........................................................$1,800
(plus$35 per parcel)
Recording Fee(each): ............. -------_---------------__$413
Part 10
Resolutions:..... .......................................__................................................................$300
Meeting Attendance:....... ............__......................... ........ ----------hourly,plus travel costs"
" reasonable and customary travel costs, as needed
Page 6
N JSIB
�6001L7
Fees-Addltlonal Information
jExpensesi
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, postage,telephone, reproduction,meals
and various County charges for tapes,maps,and recording fees.
JAnnual Fee Increases]
Cost of living Increases may be applied to the services listed above on October 1 each year,
beginning with October 1,200& 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 9outhem Cafifomia counties.
[Additional Servicesi
Following Is the current hourly rate. Additional services authorized by the City will be billed at
this rate or the then-applicable hourly rate-
Title
•urlyRate
Director $190
Senior Consultant/Programmer 150
Engineer 140
Consultant 130
Analyst 100
Clerical/Support 55
JTarmsj
Administration services will be Invoiced quarterly at the beginning of each quarter. Expenses
Will be itemized and Included in the next regular invoice. Fees for all other services will be
invoiced upon completion of the task. If the project is prematurely terminated by either party,
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. Either party can cancel contracts with 30 days written
notice.
Please feel free to contact me if you have any questions or need further information_
Best regards,
NBS Government Finance Group,
DBA NBS
_W"�r/z/cf
Mike Rdntfrer
President and CEO /
Title Date
Page 7
N I BI S
EXHIBIT 66B59
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
10 Revised.518108
50789.2 a rig 0 J !�
Insurance
Consultant shall procure and maintain, at its sole cost and expense, and submit
concurrently with its execution of this Agreement, in a form and content satisfactory to City,
public liability and property damage insurance against all claims for injuries against persons or
damages to property resulting from Consultant's performance under this Agreement. Consultant
shall also carry workers' compensation insurance in accordance with California workers'
compensation laws. Such insurance shall be kept in full force and effect during the term of this
Agreement, including any extension thereof, and shall not be cancelable without thirty (30) days
written notice to City of any proposed cancellation. Certificates of insurance evidencing the
foregoing and designating the City, its elected officials, officers, employees, agents, and
volunteers as additional named insureds by original endorsement shall be delivered to and
approved by City prior to commencement of services. The procuring of such insurance and the
delivery of policies, certificates, and endorsements evidencing the same shall not be construed as
a limitation of Consultant's obligation to indemnify City, its elected officials, officers, agents,
employees, and volunteers-
A. Minimum Scope of Insurance. The minimum amount of insurance required
hereunder shall be as follows:
1. Comprehensive general liability and personal injury with limits of at least
one million dollars ($1,000,000.00) combined single limit coverage per occurrence;
2. AtAemebile liabilanCz r,.:al 1; ..ary F na lon n4 lly l 17 n_n
im 1 nun nun n
�y rvv�ava� -6e(�tk�f%nC-E; TfCZ1VL' .
3 Pref ssiefiel liability �„_..._.. ....,7 :n3i99iOkk9�i33^sttFa33G2-'v'49�1]-�it r-B�aE
, , OD...90 r ecouffefiee; *Waived.
4. Workers' Compensation insurance in the statutory amount as required by
the State of California and Employer's Liability Insurance with limits of at least one million
dollars $1 million per occurrence.
For any claims related to this Agreement, Consultant's insurance coverage shall be
primary insurance as respects City and its respective elected officials, officers, employees,
agents, and volunteers. Any insurance or self-insurance maintained by City and its respective
elected officials, officers, employees, agents, and volunteers shall be in excess of Consultant's
insurance and shall not contribute with it- For Workers' Compensation and Employer's Liability
Insurance only, the insurer shall waive all rights of subrogation and contribution it may have
against City, its elected officials, officers, employees, agents, and volunteers.
B. Errors and Omissions Coverage. If Consultant provides claims made
professional liability insurance, Consultant shall also agree in writing either (1) to purchase tail
insurance in the amount required by this Agreement to cover claims made within three years of
the completion of Consultant's services under this Agreement, or (2) to maintain professional
liability insurance coverage with the same carrier, or equivalent coverage with another company,
in the amount required by this Agreement for at least three years after completion of
Revised:51$108
SU763Y.
Consultant's services under this Agreement. Consultant shall also be required to provide
evidence to City of the purchase of the required tail insurance or continuation of the professional
liability policy.
C. Sufficiency of Insurers. Insurance required herein shall be provided by
authorized insurers in good standing with the State of California. Coverage shall be provided by
insurers admitted in the State of California with an A.M. Best's Key Rating of B+, Class VII, or
better, unless otherwise acceptable to the City-
D. Verification of Coverage. Consultant shall furnish City with both certificates of
insurance and endorsements, including additional insured endorsements, effecting all of the
coverages required by this Agreement. The certificates and endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be
received and approved by the City before work commences. City reserves the right to require
Consultant's insurers to provide complete, certified copies of all required insurance policies at
any time. Additional insured endorsements are not required for Errors and Omissions and
Workers' Compensation policies.
E. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City. At the option of the City, either the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City,
its elected officials, officers, employees, agents, and volunteers; or, Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration, and
defense expenses.
F. SeverabiUty of Interests (Separation of Insureds). This insurance applies
separately to each insured against whom claim is made or suit is brought except with respect to
the limits of the insurer's liability.
12 Revised:518/08
5076392