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HomeMy WebLinkAboutItem E February 17, 1999 STAFF REPORT TO: Honorable Mayor and Members of the City Council FROM: Elizabeth Stoddard, Director of Administrative Services SUBJECT: SPECIAL DISTRICT ADMINISTRATION FOR SURFSIDE ASSESSMENT 94-1 AND STREET LIGHTING MAINTENANCE DISTRICTS NO. I SUMMARY OF REQUEST: Staff requests City Council approve a proposal for Special District Administration of the Surfside Assessment District 94-1 and Assessment Engineering Services Street Lighting Maintenance District No. 1 for Fiscal Year 1999/2000 DISCUSSION: Willdan Associates has served as the special district administrator for the Surfside Under Grounding project and Street Lighting Maintenance District since inception of these projects. Approval of these proposals will provide continuity in administration of these special districts. With respect to Assessment District Number 94-1 (Surfside Colony) the proposal is separated into two sections, Base Services and Optional Services. Willdan has expended the Scope of Services under both sections. The proposed fee for Base Services is $6,100 with additional fees for specific services. Because there are sufficient funds in the Redemption Fund, a bond call will be necessary for fiscal year 1999/2000. For this reason staff is requesting the Optional Services be approved to assist the City Treasurer in the anticipated bond call. Additional fees are included as parts of the costs of the bond call and do not impact the General Fund. The optional services for the bond call are on a time and material basis. The 1999/2000 Annual Levy of Assessment for Street Light Maintenance District No. 1 will proceed as in years' past. Willdan Associates is proposing the scopes of work include review of appropriations, compute the assessment for each parcel, and prepare the Engineer's Report. Willdan Associates has proposed an additional service to prepare the Proposition 218 response. The response is included in the Engineer's Report that summarizes the justification for exemption from Proposition 218 utilizing the Guidelines Relating to Gas Tax Expenditures as prepared by the State of California Controller's Office. This does not impact the General Fund. The proposed fee is$9,750 and assessed to each parcel. Optional services are charged on a time and material basis. Agenda Item FISCAL IMPACT: The fees established for the 1999/2000 Street Lighting Maintenance District Number 1 propose a lump sum payment of $9,750 for base services with a not to exceed aggregate of $15,000. The fees established for the 1999/2000 Surfside Assessment District propose for base services a lump sum payment of$7,400 with additional costs for the anticipated bond call. It is unknown at this time how many hours will be involved with the bond call, however, a not to exceed aggregate of$15,000 should be sufficient to cover anticipated costs. Again, the costs associated with the Annual Administration for both Districts can be funded by the Administrative Cost add- on as established in the Engineer's Report of the Formation. RECOMMENDATION: Approve the proposals to provide Special District Administration for the Surfside Assessment District 94-1 and the Street Light Maintenance District Number 1. Elizabet Stoddard - Direct o Administrative��Servviices / Noted and approved: Keith Till City Manager tV WILLDAN ASSOCIATES 0 E\GI\EERS & PLANNERS Professional Consulting Services Since 1964 January 22, 1999 Ms. Elizabeth Stoddard CITY OF SEAL BEACH 211 Eighth Street Seal Beach, CA 90740 Subject: Assessment District No. 94-1 (Surfside Colony) Annual Administration Services, Fiscal Year 1999/2000 Dearddard: We are pleased to submit our proposal to provide the Fiscal Year 1999/2000 Annual Administration Services for the City of Seal Beach Assessment District No. 94-1. Exhibit A, attached, details our Scope of Work which is separated into two sections. Base Services are those annual administration tasks that we have performed in the past that we believe are necessary to properly administer the District each year. Optional Services remain those services which may or may not be required during the year, such as a Bond Call Spread, with which Willdan can assist the City if the need arises. Our Fee Proposal is included as Exhibit B and Schedule of Hourly Rates as Exhibit C. Our proposed Project Team will once again include Bob Quaid as Project Manager and Tom Bandy as Quality Control Manager for the work performed and deliverables to the City. We will continue to provide the City with the technical knowledge, dedication to the task and responsiveness that the City demands. We believe you will find our proposal comprehensive and cost competitive. We sincerely want to continue working with you as you are one of our most valued clients. Services included in the Scope of Services shall commence immediately upon receipt of a Notice to Proceed from the City and shall be completed by June 30, 2000, unless extended by the City in writing. The term of this agreement shall be from the Notice to Proceed date to June 30, 2000, with three optional one-year extensions, which may be exercised solely by the City, by means of forwarding notice to Willdan Associates of the City's decision to exercise the applicable one-year extension. The compensation shall be adjusted for each extension by the increase in the Consumer Price Index(CPI)for the Los Angeles/Riverside/Orange County area for December of each year. 888 S.WEST STREET,SUITE 300,ANAHEIM, CA 92802•(714)563-3200• FAX: (714)535-3294 Willdan Associates Ms. Elizabeth Stoddard CITY OF SEAL BEACH January 22, 1999 Page 2 We look forward to serving the City and working with you again during Fiscal Year 1999/2000. If you have any questions on our proposal, please give Bob Quaid a call at your earliest convenience. Very truly yours, WILLDAN ASSOCIATES Thomas Bandy Division Manager Financial Management Services TB:jr EwSlp,oposanseai Beach 2 wpd cc: Bob Quaid Yy WILLDAN ASSOCIATES ❑ ENGINEERS & PLA\\ERS Professional Consulting Services Since 1964 January 22, 1999 Ms. Elizabeth Stoddard Director of Administrative Services CITY OF SEAL BEACH 211 Eighth Street Seal Beach, CA 90740 Subject: Proposal for Assessment Engineering Services for 1999/2000 Annual Levy '��44v�of Assessment for Street Light Maintenance District No. 1 Dear M t6ddard: We appreciaterethis opportunity to propose on the 1999/2000 Levy for the City of Seal Beach City-Wide Lighting Assessment District No. 1. We have prepared this proposal based on our extensive understanding of the District and Scope of Services gained over the past six years of working with the database, budget and engineer's report. We clearly want to continue providing this service to you as one of our most valued clients. The following sections discuss our scope of work, client responsibility, fee schedule and additional services. SCOPE OF SERVICES Willdan will furnish the following base services in connection with the 1999/2000 levy of assessment for the District. I. Pre-collection Strategy Meeting - If necessary, revise the project schedule to address any changes. - Identify assessment district budget. II. Compute the Assessment for Each Parcel - Collect pertinent assessor parcel information from the County Assessor to determine parcel changes and associated parcel factors (such as land use, acreage, etc.). - Calculate the assessments for each assessable parcel using the existing method of assessment. - Calculate the high and low assessments by land use for each zone. B88 S. WEST STREET,SUITE 300,ANAHEIM, CA 92802•(714)563-3200•FAX: (714)535-3294 • Wllldan Associates Ms. Elizabeth Stoddard CITY OF SEAL BEACH January 22, 1999 Page 2 III. Prepare Engineer's Report - Discuss the background of the District. - Describe the improvements/services which are being funded by the District. - Prepare a cost estimate for the improvements/services being funded. Prepare a table showing assessed rates by zone and land use, to be reviewed and approved by the City prior to finalizing the Engineer's Report. - Prepare 1999/2000 assessment roll. - Ten copies of each report will be submitted to the City for approval, confirmation, and distribution. IV. Attend Council Meeting and Public Hearing - If requested, present Engineer's Report to City Council. - Answer property owner questions at public hearing, as required. V. Place Assessment on County Assessor's Roll - Submit the assessment on a diskette to the County Auditor/Controller. - Reconcile rejected parcels from the County and resubmit corrected assessments, if any. - Submit a final roll to the City. CLIENT RESPONSIBILITY The City will provide the following: 1. Cost and budget information for the 1999/2000 annual levy. 2. Certified copies of resolution to levy and City certification regarding Proposition 218 compliance, if required by County. 3. Written request for additional services as necessary. FEE SCHEDULE For the above listed base services,we propose a lump sum fee of$9,750, payable monthly on a percentage completion basis as the work progresses. (Our records indicate that this amount reflects the first increase in our lump sum fee during the past six years.) Willdan Associates Ms. Elizabeth Stoddard CITY OF SEAL BEACH January 22, 1999 Page 3 TERM OF AGREEMENT Services included in the Scope of Services shall commence immediately upon receipt of Notice to Proceed by the City and shall be completed by September 30, 1999, unless extended by the City in writing. The term of this agreement shall be from the Notice to Proceed date to September 30, 1999, with three optional one-year extensions, which may be exercised solely by the City, by means of forwarding notice to Willdan Associates of the City's decision to exercise the applicable one-year extension. The compensation shall be adjusted for each extension by the increase in the Consumer Price Index (CPI)for the Los Angeles/Riverside/Orange County area for December of each year. ADDITIONAL SERVICES The following are additional services that may be provided on a time-and-materials basis at the rates shown under Additional Services Rate Schedule, payable monthly as the work progresses: I. Information Services (approximate fee $250) - Assist the City year round with answering phone calls from property owners, appraisers, title companies, prospective buyers, etc. ADDITIONAL SERVICES RATE SCHEDULE The following wage rates are effective through June 30, 1999 and may be adjusted after that date to compensate for labor adjustments and other increases in labor costs. FEE RATE PER CLASSIFICATION HOUR Sr. Consultant $120.00 Director of Annual Administration 104.00 Special Districts Coordinator 88.00 Special Districts Analyst II 71.00 Technical Aide 44.00 SecretarialM/ord Processor 40.00 Willdan Associates Ms. Elizabeth Stoddard CITY OF SEAL BEACH January 22, 1999 Page 4 Additional billing classifications may be added to the above listing during the year as new positions are created. We have continually enjoyed our association with you and we look forward to working with you on this important project in the coming year. Please call me at (714) 563-3266 or Bob Quaid at (714) 563-3207, if you have any questions. Respectfully submitted, WILLDAN ASSOCIATES Thomas Bandy Division Manager Financial Management Services Group TB:jr E:\Lb9\popos&Seal Beam,.wp4 c: Mr. Bob Quaid, Willdan Associates Enclosures EXHIBIT A City of Seal Beach Street Lighting Maintenance District No. 1 Levy of Annual Assessment Fiscal Year 1999/2000 Proposed Landscaping and Lighting District Schedule WEEK OF ITEM March 1 City provides a Notice to Proceed to Willdan March 1 Order County Assessor's tape, if applicable March 8 ' Pre-collection strategy meeting March 15 Start assessment spread modeling and report preparation March 29 I Obtain District budget from City April 12 Modeling and Engineer's Report complete May 3 City Council Agenda deadline May 17 First Council Date - Resolution of Intention June 7 Public Hearing - Resolution to Levy July 19 Submit roll to Auditor/Controller August 9 Clear exceptions with County September 6 Finalize Assessment Roll and send to City City of Seal Beach Assessment District 94-1 Fiscal Year 1999/2000 EXHIBIT A Scope of Work BASE SERVICES Willdan will perform the following Base Services which are necessary to adequately administer the District during the year: I. 1999/2000 Annual Levy A. With the City's assistance, determine the amount of assessments to collect for Fiscal Year 1999/2000. 1. Identify the annual bond principal and interest to collect from the Official Statement for the Bonds and from verification by the Fiscal Agent. 2. Identify any bond calls, full or partial payoffs, since the last assessment roll. Determine that current bond maturity schedule properly reflects any bond calls. 3. Identify all costs to administer the District for the Fiscal Year including, but not limited to, costs of the City, County, Assessment Engineer, Fiscal Agent and, if applicable, the Arbitrage Consultant and Disseminating Agent. 4. Identify excess reserve fund earnings and determine possible credit against current year assessments. B. Calculate the 1999/2000 assessment for each District parcel including debt service, administration fee, delinquency management fee, if applicable, and any excess interest credits deemed appropriate. Allocate the administration fee in compliance with the provisions of Streets and Highways Code Section 8682 and the per parcel limits established in the Engineer's Report. C. Place Assessment on the County Assessor's Roll. 1. Submit the Assessments on diskette to the County Auditor/Controller, according to the required specifications. 2. Reconcile rejected parcels from the County, if any, and resubmit corrected assessment data. Walden Associates 1 City of Seal Beach Assessment District 94-1 Fiscal Year 1999/2000 3. Prepare final roll summary and debt service schedule for the City. II. Delinquency Management Delinquency management will be performed to the extent required by the City's foreclosure covenants for the District. As provided in the Bond Indenture, commencement of judicial foreclosure action is required by October 1 on all delinquent owners unless the District delinquencies do not exceed 5.0% for the fiscal year and the Reserve Fund is at least equal to the Reserve Requirement. In this regard, Willdan will administer delinquency management procedures after each installment as follows: A. Obtain delinquent parcel list from the County upon first availability after each installment. (Per Streets and Highways Code Section 8683, this information must be provided by the County Auditor within 90 days of the installment due date.) Select which properties will require delinquency noticing. B. After the December 10 installment, mail a City approved Reminder Letter to all delinquent property owners to inform and educate the property owners of their obligation to pay the special tax. Provide toll-free 800 phone number to Willdan's office for owner inquiries. C. After the April 10 installment: 1. Review fiscal year 1999/2000 delinquencies to determine if delinquency rate for current fiscal year exceeds 5% and if the Reserve Fund is less than the Reserve Requirement. 2. If the fiscal year delinquency rate exceeds 5% and the Reserve Fund is less than the Reserve Requirement, send by certified mail a City approved Demand Letter to inform and educate the delinquent property owners of their obligation to pay, the City's foreclosure obligation to the Bondowners and the pending foreclosure action by the City if the amount is not paid by October 1. Demand full payment directly to the City, and provide a toll-free 800 phone number to Willdan's office for owner inquiries. 3. If the fiscal year delinquency rate does not exceed 5%, and the Reserve Requirement is equal to the Reserve Requirement, mail a Reminder Letter, similar to the one described in B above, to all delinquent property owners. D. Answer all other property owner telephone calls regarding their delinquent assessments. At the City's discretion, arrange an approved payment plan with Willdan associates 2 City of Seal Beach Assessment District 94-1 Fiscal Year 1999/2000 delinquent property owners in lieu of turning parcels over to the City's foreclosure counsel. E. On or before October 1, prepare and deliver all information to the City's foreclosure counsel for commencement of judicial foreclosure. III. Bond Fund Tracking This analysis will be performed semi-annually at December 31 and June 30, prior to payment of the bond debt service to determine fund transfers needed to satisfy the principal and interest requirements as well as excess funds available for credits against current assessment of for early retirement of bonds. In this regard, Willdan will: A. Update and track bond fund balances by obtaining statements from fiscal agents and available City records on City administered funds. Review transfers, earnings,and appropriate fund balances and review District formation documents to verify that Improvement, Reserve and Redemption fund structures are in compliance. B. Before 15 days prior to each semi-annual debt service payment, provide the City a Fund Activity and Balance Report showing Improvement Fund activity, if applicable, with costs to date in relation to budgeted costs, as well as Reserve and Redemption Fund activity. The Report will include: recommended fund transfers, if necessary, to achieve compliance with the Official Statement for the Bonds; a recommendation for the use of excess reserve funds after reviewing the outcome of arbitrage requirements, if applicable; funds required for upcoming debt service payment; and computation of bond calls, if required, such as in the case of a payoff of bond lien by a property owner. These recommendations will be discussed with City staff to obtain approval to implement one or more uses of the excess funds. IV. Annual Filing Under Revenue and Taxation Code Section 163 Section 163 requires certain information to be filed annually with the County Assessor's office for all Districts receiving revenue from assessment liens created under the 1911, 1913 and 1915 Acts. In this regard, Willdan will: A. Update and file an annual information report with the County Assessor's office, including: 1. The lien amount on each parcel in the district at the time the lien was created. Willdan Associates 3 City of Seal Beach Assessment District 94-1 Fiscal Year 1999/2000 2. In the case in which a lien has been completely satisfied, the date and amount of payment in satisfaction of the lien, and the identity of the party that made that payment. 3. The amount of principal balance of the lien on each subject parcel. B. Provide copy of filing to the City Finance Department. V. Annual Information Report Willdan will provide a comprehensive Annual Information Report that will show information for the District, including a detail of the levy amounts submitted to the County of direct billed for collection, details of delinquent assessments, bond fund analysis, paid off parcels and release of liens, all bond call activity, continuing disclosure information, and assessed valuation data. VI. Continuing Disclosure Reporting Land-secured debt issued after July 3, 1995, must comply annually with continuing disclosure requirements contained in amendments to SEC Rule 15c2-12. The City has made Continuing Disclosure Covenants with the Bondowners to provide an Annual Report for the District by October 1 of each year. In this regard, Willdan will: A. Review the Official Statement for the District Bonds to determine requirements of the continuing Disclosure Agreement. B. Prepare and deliver the Annual Report for the District. 1. Provide the City, no later than 45 days after the fiscal year end, a questionnaire relating to the occurrence of any Significant Events affecting bonds that would require disclosure in the Annual Report, and, if necessary, meet with the City to discuss any such items. 2. Prepare schedules and tables providing the information required under the "Content of Annual Report"section of the Continuing Disclosure Agreement. 3. Compile schedules and tables into Annual Report, including Significant Events information received from the City. 4. Deliver Annual Report copy to each national and state repository on/or before October 1 with a copy to the City. Wilidan Associates 4 City of Seal Beach Assessment District 94-1 Fiscal Year 1999/2000 C. The City will: 1. Provide Willdan with responses to the Significant Events questionnaire no later than 15 days prior to the date the Annual Report must be file with the Disseminating Agent. VII. Interested Party Inquiries Willdan will provide a toll free(800) phone number to property owners,the City and County staff, and all other interested parties. Willdan's Project Team will be available to anser questions regarding the annual levies, payoffs, apportionments, and ongoing collection of assessments. OPTIONAL SERVICES At the City's request, Willdan will perform the following Optional Services which may be required during the year: I. Assessment Lien Payoffs A. Upon request, provide payoff quotes of bond assessment liens for all interested parties. B. In the event of a payoff. 1. Provide City with documentation to be filed with the County, including the Release of Lien and, if applicable, a notice to remove unpaid assessments from the tax roll. 2. Coordinate delivery of signed documentation to County Recorder's Office. II. Bond Call Spread In the event of a bond call authorized by the District, Willdan will: A. Prepare the spread of principal to be called within the applicable guidelines of the Bond Indenture. B. Coordinate the bond call and revision of debt service schedule with the Paying Agent/Trustee. C. Deliver copies of bond call documents and revised debt service schedule to City. Willdan Associates 5 City of Seal Beach Assessment District 94-1 Fiscal Year 1999/2000 Ill. Delinquency Payment Plans A. At the City's discretion, arrange an approved payment plan with delinquent property owners in lieu of turning parcels over to the City's foreclosure counsel. B. Answer all property owner questions regarding the delinquency and foreclosure process through a toll free phone number. IV. Foreclosure Services In the event of Judicial Foreclosure action by the City on delinquent parcels, Willdan will: A. Work closely with Foreclosure Attorney to provide information to begin proceedings, provide the necessary City Resolutions to proceed, verify the Counsel's data and confirm action is being commenced on the appropriate parcels in the correct amount, and research ongoing delinquency problems to amend the complaint with updated delinquency amounts. B. If parcels are participating in the County's delinquent taxes payment plan, analyze the value of removing selected parcels from the County plan and including in the City's foreclosure proceedings. C. Answer all property owner questions regarding the delinquency and foreclosure process through a toll-free phone number. V. Arbitrage Rebate Service Coordination Willdan Associates recognizes the need for knowledgeable experts in the field of Arbitrage Rebate Services ('Arbitrage') to assist the City in complying with this IRS requirement. Therefore, we recommend that the City retain the law firm of Orrick, Herrington and Sutcliffe ('OH&S') which has provided such services to municipal issuers since 1980 and has over 800 active engagements.At the City's request,Willdan Associates will coordinate the Arbitrage in conjunction with the City's agreement with OH&S, or any other firm that the City may choose to retain. Our services would include: A. Assisting the City in soliciting, interviewing and selecting a qualified firm to perform the Arbitrage. B. Coordinating the accumulation and delivery of all required documents to the Arbitrage provider selected for commencement of the rebate calculation. Walden Associates a City of Seal Beach Assessment District 94-1 Fiscal Year 1999/2000 C. Answering questions by Arbitrage provider regarding the information delivered and continue to assist in providing additional documentation to provider as requested. D. Follow-up with completion and timely delivery of the Rebate Report to the City. Wlllden Associates 7 City of Sea/ Beach Assessment District 94-1 Fiscal Year 1999/2000 EXHIBIT B Fee Proposal SERVICES FEES Willdan Associates is pleased to present the City with the following fee proposal for Base Services and Optional Services for Fiscal Year 1999/2000. The Base Services Fee is increased over last year's fee by the Los Angeles/Orange County Consumer Price Index (CPI) for December. BASE SERVICES FEE: $7,400 The Base Services fee is a lump sum fee to be billed on a percent complete basis. OPTIONAL SERVICES FEES Description Rate I. Lien Payoff Requests $ 30/Request Invoiced directly to requesting party by Willdan Payoff Documents $ 120/Payoff Charged to property owner; included in payoff quote II. Bond Call Spread Time& Materials Ill. Delinquency Payment Plans Time& Materials Charged to Property Owner IV. Foreclosure Services Time&Material& Charged to Property Owner V. Arbitrage Rebate Service Coordination Time& Materials' Time &Materials based on Exhibit C, Schedule of Hourly Rates Willdan Associates B City o/ Seal Beach Assessment District 94-1 Fiscal Year 1999/2000 EXHIBIT C Wiliden Associates Schedule of Hourly Rates July 1 , 1998 - June 30, 1999 Fee Rate Classification Per Hour Special Districts Spvsr. - Special Districts Services 104.00 Sr. Special Districts Coordinator 95.00 Special Districts Coordinator 88.00 Special Districts Analyst II 71 .00 Special Districts Analyst I 60.00 Computer Services Computer Data Entry 45.00 Personal Computer Time 15.00 Clerical 40.00 Word Processing 40.00 Additional billing classifications may be added to the above listing during the year as new positions are created. Consultation in connection with litigation and court appearances will be quoted separately. The above schedule is for straight time. Overtime will be charged at 1 .25 times the standard hourly rates. Sundays and holidays will be charged at 1 .70 times the standard hourly rates. Blueprinting, reproduction, messenger services, and printing will be invoiced at cost plus fifteen percent (15%). A subconsultant management fee of fifteen percent (15%) will be added to the direct cost of all subconsultant services to provide for the cost of administration, consultation, and coordination. These hourly rates are effective through June 30, 1999, and may be adjusted after that date to compensate for labor adjustments and other increases in costs. Wiliden Associates s