HomeMy WebLinkAboutCC AG PKT 2007-10-22 #AA
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AGENDA REPORT
DATE:
October 22, 2007
TO:
Honorable Mayor and Members of the City Council
TIiRU:
David N. Carmany, City Manager
FROM:
June Yotsuya, Assistant City Manager
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SUB,mCT: Approval of Agreement for District Administration,
Municipal Disclosure and Arbitrage Rebate Services
SUMMARY QF REQUEST:
City Council is requested to approve an agreement with MuniFinancial to provide a
variety of financial related services for the City of Seal Beach.
DISCUSSION:
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At its last meeting, the Seal Beach City Council approved termination of its existing
agreements with Taussig & Associates. Previously, the firm provided tax consulting and
administrative services to maintain several of the City's Community Facility District
programs. At this time, staff has determined that MuniFinancial, a subsidiary of Willdan
Group, Inc. retains the professional qualifications to provide district administration,
municipal disclosure and arbitrage rebate services on the City's behalf.
The agreement with MuniFinancial will encompass district administration for three
Community Facility Districts (Seal Beach BlvdILampson Avenue Landscape
Maintenance, Heron Pointe and Pacific Gateway) as well as the Surfside Colony
Reassessment District and a Street Lighting District. In addition, MuniPinancial will
assist in the preparation of annual municipal disclosure statements, provide services
related to delinquent property fees collection !lI1d bond financing.
The term of the agreement is ongoing but may be suspended upon a thirty (30) day
written notice by the City.
FINANCIAL IMPACT:
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Costs for project services as described will be approximately $35,000 per year.
MU'1iFinancial will also receive reimbursement for out-of-pocket expenses. Service costs
shall be based on the fees provided in Exhibit A and B of the proposed agreement; and,
additional services authorized by the City shall be charged based on hourly rates provided
Agenda Item It /I
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October 22, 2007
City Council Agenda Report-Amendment to Agreement for District Administration,
Municipal Disclosure and Arbitrage Rebate Services
Page 2
in Exhibit B. A budget amendment will be required to cover the additional contribution
amount. This amendment would decrease the General Fund's undesignated fund balance
for FY 2007-08 from $10,428,849.00 to $10,393,849.00.
RECQMMENDATION:
Staff reco~ends that City Council:
,
,1. Approve Resolution Number _ Authorizing Budget Amendment
Number 08-08 for the Increase in Administrative Services Contract
Professional Services line item.
2. Approve Resolution Number _ Approving Agreement Between City
of Seal Beach and MuniFinancial. for District Administration, Municipal
Disclosure and Arbitrage Rebate Services
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Submitted by:
/)
NOTED AND APPROVED:
t!>- 'f ~
David N. Carman ,City Manager
Attachment:
Agreement with MuniFinancial
Resolution Authorizing Budget Amendment
Resolution Authorizing Approval
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AGREEMENT FOR PROFESSIONAL SERVICES
1HIS AGREEMENT, made and entered into this ~ day of October. 2001 by and between
MuniFinancial, a cotporation, and the City of Seal Beach, hereinafter refened to as "Client"
WHEREAS, Client desiIes to employ MuniFinancial to furnish ongoing professional services in
connection with District Adtniniuration. MnnlciJlal Disclosure. and Arbi~e Rebate Services.
hereinafter refetted to as the "Project."
NOW, 1HEREFORE, in consideration of the mutual ptemises, covenants and conditions
herein con~d, the patties agtee as follows:
SECTION I: BASIC SERVICES
MuniFinancial shall provide to the Client the basic services described in detail in "Exhibit A,"
Scope of Services, attached hereto and incotp012ted herein by this teference.
SECTION II: ADDITIONAL SERVICES
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If authorized, MuniFinancial shall furnish additional services, which ale in addition to the basic
services. To the extent that the additional services have been identified in this Agteement, they ale
itemized in "Exhibit A" and will be paid for by Client as indicated in Section III hereof. As further
additional services are requested by Client, this Agteement may be modified and subject to mutual
consent by execution of an addendum by authorized teptesentatives of both patties, setting foIth the
additional scope of services to be perfoImed, the perfoImance time schedule and the compensation fot
such services.
SECTION III: COMPENSATION
MuniFinancial shall be compensated for basic services rendered under Section I, as in
accotdance with the teIms and conditions indicated in "Exhibit B," Fees for Services; and
MuniFinancial will be compensated for any additional services rendered under Section IT as mote
patticulatly described in a fully approved and executed addendum to this Agteement If an addendum is
not executed, MuniFinancial shall then be compensated at its then-CUIIent prevailing hourly rates for
such additional services.
MuniFinancial may submit monthly statements for basic and additional services rendered. It is
intended that Client will make payments to MuniFinancial within thirty (30)-days of invoice. All invoices
not paic! within thirty (30)-days shall beat inteIest at the rate of 1-1/2 percent per month or the then
e legal rate allowed
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SECTION IV: INDEMNITY - INSURANCE REQUIRED
A. Indemnity. MuniFinancial shall indemnify and hold hatmless Client, its officers,
officials, directors, employees, designated agents, and appointed volunteers from and against all claims,
damages, losses and expenses, including attorney fees, arising out of the performance of the services
described herein, caused in whole or in part by the negligent acts, errors or omissions ofMuniFinancia],
any subconsultant, anyone directly or indirectly employed by any of them or anyone for whose acts any
of them may be liable, except where caused by the active negligence or willful misconduct of Client or
Client's office;s, agents ot employees.
B.. Insurance. Without in any way limiting MuniFinancial's liability pursuant to the
indemnification described above, MuniFinancial shall maintain, during the t= of this contract, the
following insurance:
Coverage
General Liability
Comptehensive General Lillbility, including:
Premises and Operations
Contractual Lillbility
Personal-Injury Liability
Independent Contractors Liability Qf
applicable)
Minimum Limits
$1,000,000 Combined Single Limit, per
occurrence and general aggregate
Automobile Liability
Comprehensive Automobile Liability,
(including owned, non-owned and
hiIed autos)
$1,000,000 Combined Single Limit, per
occurrence
Workers' Compensation and Employer's
Liability
Workers' Compensation Insurance
Employer's Liability
StatutoEy, $1,000,000
Professional Liability
Professional Liability Insurance
$1,000,000 per claim and annual aggregate
SECTION V: INDEPENDENT CONTRACTOR STATUS
MuniFinancial shall be an independent contractor and shall have tesponsibility for and control
over the details and means of providing the services under this Agteement.
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SECTION VI: OWNERSHIP AND MAINTENANCE OF DOCUMENTS
MuniFinancial may tely upon the accuracy of any documents provided to MuniFinancial by
Client All data, infOImatiOn, documents, calculations, test information, software, and drawings prepared
for Client and requited to be furnished to Client in connection with this Agteement shall become the
property of Client, and Client may use all or any portion of the work submitted by MuniFinancial
pursuant to this Agteement as Client deems appropriate.
MuniFinancial shall maintain all recOIds, data, information, documents, calculations, test
infoImation, s6ftwale, and drawings font least two (2) yeatS after completion of the services covered in
this Agreement
SECTION VII: SUSPENSION OF SERVICES
Client may, at any time, by thiIty (30)-days' written notice, suspend further performance by
MuniFinancial. All suspensions shall extend the time schedule fOI performance in a mutually satisfactory
manner and MuniFinancial shall be paid for all services perfoImed and teimbursable expenses incurred
prior to the suspensions date.
SECTION VIII: TERMINATION
A. Client may tP1"l'n;note this Agteement at any time upon Jive (5)-days' written notice to
MuniFinancial. MuniFinancial agtees to cease all work under this Agteement on or befote the effective
date of such notice. MuniFinancial may terminate this Agteement at any time upon thiIty (30)-days'
written notice to Client.
B. In the event of tP1"l'n;notion or cancellation of this Agteement by Client, due to no fault
or failure of perfoImance, MuniFinancial shall be paid full compensation for all services perfoImed by
MuniFinancial, in an amount to be determined as follows: For work done in accordance with all of the
terms and provisions of this Agteement, MuniFinancial shall be paid an amount equal to the amount of
services performed prior to the effective date of termination or cancellation provided, in no event shall
the amount of money paid under the foregoing provisions of this paragraph exceed the amount which
would be paid MuniFinancial for the full perfoImance of the services requited by this Agteement.
SECTION IX: COMPLIANCE WITH LAW
Each patty hereto will use teasonable Cale to comply with applicable laws in effect at the time
the services are performed hereunder, which to the best of theiI knowledge, information and belief
apply to theiI tespective obligations under this Agteement.
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SECTION X: SUCCESSORS AND ASSIGNS
This Agteement shall be binding on the successors and assigns of the patties; but either patty,
without written consent of the other patty, shall not assign it
SECTION XI: ATTORNEYS' FEES
In the event of a dispute between the patties arising out of or connected with this Agteement,
the prevailing patty shall recover, in addition to any other amounts or damages, attomeys' fees, and
costs actually ~currep in connection with the altemative dispute resolution process set fOIth in Section
XII or any litigation.
SECTION XII: ALTERNATIVE DISPUTE RESOLUTION
If a dispute arises between the patties relating to this Agreement, the patties agtee to use the
following procedure prior to either patty pursuing other available temedies:
A. A meeting shall be held promptly between the patties, attended by individuals with
decision-making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the
dispute.
B. If, within thiIty (30) days after such meeting, the patties have not succeeded in
negotiating a resolution of the dispute, they will jointly appoint a mutually acceptable neutral person not
affiliated with either of the patties (the "neuttal'~, seeking assistance in such regard if they have been
unable to agtee upon such appointment within forty (40) days &om the initial meeting. The patties shall
share the fees of the neutral equally.
C. In consultation with the neutral, the patties will select or devise an alternative dispute
tesolution procedure r'ADR'~ by which they will attempt to resolve the dispute, and a time and place
for the ADR to be held, with the neutral tn. Iring the decision as to the procedure, and/or place and time
(but unless ciIcumstances requite otherwise, not later than sixty (60) days after selection of the neutral) if
the patties have been unable to agtee on any of'such matters within twenty (20) days after initial
consultation with the neutral.
D. The patties agtee to patticipate in good faith in the ADR to its conclusion as designated
by the neutral. If the parties are not successful in resolving the dispute through the ADR, then the
patties may agtee to submit the matter to binding athitration OI a private adjudicator, OI either patty may
seek an ~djudicated resolution through the appropriate court.
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SECTION XIII: RECORDS
Records of MuniFinancial's diIect labor costs, payroll costs and reimbursable expenses
pertaining to the Project covered by this Agteement will be kept on a generally recognized accounting
basis and made available during normal business hours upon reasonable notice.
MuniFinancial's recOIds will be available fOI examination and audit if and as tequiIed.
SECTION XIV: MISCEllANEOUS PROVISIONS
This ~eement is subject to the following special provisions:
A, The titles used in this Agteement are for general teference only and ate not a part of the
Agteement.
B.
C.
This Agteement shall be intetpreted as though ptepared by both parties.
Any provision of this Agteement held to violate any law shall be deemed void, and all
rem.in;ng provisions shall continue in full force and effect.
D. This Agteement shall be intetpreted under the laws of the State of California.
E. This Agteement comprises a final and complete repository of the understandings
between the patties and supersedes all pliot or contemporary communications, representations or
agteements, whether oral or written, relating to the subject matter of this Agteement.
F. Any notices given pursuant to this agteement shall be effective on the thiId business day
after posting by first class mail, postage prepaid, to the addtess appearing immediately after the
signatures below.
G. MuniFinancial shall not be liable for damages resulting from the actions or inactions of
governmental agencies including, but not limited to, permit ptocessing, enviIonmental impact teports,
dedications, general plans and amendments thereto, zoning matters, annexations or consolidations, use
or conditional use permits, project or plan approvals, and building permits.
H. A waiver by either patty of any t~ condition, or covenant, or breach of any term,
condition, or covenant, shall not constitute the waiver of any subsequent breach of any other teIm,
condition or covenant.
I. Client acknowledges that MuniFinancial is not responsible for the perfoImance of
services by thiId patties, provided that MuniFinancial has not retained thiId patties.
J. In the event of any inconsistency between the terms of Exhibits A and B and this
Agteement, the teImS of this Agteement shall govern.
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K No officer, official, employee, agent, representative, or volunteer of the Client shall be
personally liable to MuniFinancial, or any successor in interest, in the event of any default or bteach by
the Client or for any amount which may became due to MuniFinancial or to its successor, or for breach
of any obligation of the terms of this Agteement.
L. No officer, official, employee, agent, representative, or volunteer of the Client shall have
any financial intetest, ditect or inditect, in this Agteement, nor shall any such officer or employee
patticipate in any decision relating to the Agteernent which affects his or her financial interest or the
financial interJst of .any cotporation, paItnership, or association in which he or she is, diIecdy or
indiIecdy,;interested, in violation of any state statute or regulation. MuniFinancial WaIl:ants that it has
not paid or given, and shall pot payor give, any thiId party any money or other consideration for
obtaining this Agteement
M. The teIms of this Agreement shall be construed in accordance with the meaning of the
language used and shall not be construed for or against either party by Ieason of the authorship of this
Agteement or any other rule of construction which might, otherwise, apply.
N. The persons executing this Agteement, on behalf of the patties hereto, warrant that
(i) Such party is duly organized and existing; (ii) They are duly authorized to execute and deliver this
Agteement on behalf of such party; (ill) By so executing this Agteement, such party is formally bound to
the provisions of this Agteement; and (iv) The entering into this Agteernent does not violate any
provision of any other Agreement to which such party is bound.
O. The agreements set foIth in this Agteement ale intended solely for the benefit of Client
and MuniFinancial, and no thiId-party beneficiaty relationship shall be deemed to be CIeated hereby.
IN WITNESS WHEREOF, the patties hereto have accepted, made and executed this
Agteement upon the teIms, conditions and provisions above stated, the day and yeat first above written.
MUNIFINANCIAL
CITY OF SEAL BEACH
By:
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By:
Tide: .
Address:
Malk Risco
Vice Ptesident
27368 Via Industria, Suite 110
TemecuIa, California 92590-3661
Title:
Address:
David CaImany
City Manager
211 Eighth Street
Seal Beach, California 90740
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Exhibit A
SCOPE OF SERVICES
Landscaping and Lighting District Administration
For administration of StIeet Lighting District No.1, MuniFinancial will:
1. Schedule an annual kick-off meeting with City staff to review the existiog district information, and
to identify and discuss possible changes to the districts for the upcoming fiscal year. Some topics of
discussion will include budget issues, annexations, modification, or expansion of district
improvements, as well as legislative changes that may impact the districts.
2. Ptepare an annual levy timeline identifying key dates and timefra:mes for pertinent tasks throughout
the levy pi-ocess. This timeline will be reviewed and discussed with City staff and adjusted, as
needed, to addtess the City's scheduling tequiIements or proposed changes to the districts.
3. Review the districts' budget provided by the City, and assist City staff with accurate cost-recovery
accounting. MuniFinancial will also assist City staff in the preparation and/or review of the annual
district budgets so as to ensure the appropriate incotporation of maintenance contract costs,
administrative expenses, material costs, capital costs, and other incidental district budget fees in
achieving tn.,..,tnum cost-to-benefit equity. MuniFinancial can also help to see that adequate and
appropriate fund balances are identified
4. Maintain and update a palcellevy database using the Palce! information from various sources. As
new data becomes available, MuniFinancial will continue to update the levy database each yeal.
Additionally, we will enhance the data through PalCe! tesearch using updated secured roll
information, County Assessor maps, various thiId-paIty resources, and specific information
provided by the City. Updates to the database will include those necessitated by the addition and/or
temoval of parcels, land subdivisions and merges, and adjusted benefit unit information. This
database will then become the source for the calculation of the annual district assessments. Based
upon theiI assigned benefit, our MuniMsgicTM software will be used to calculate the annual
assessments for the districts' palcels.
5. Draft the necesslUJ' resolutions to be adopted, along with the annual levy of assessments, by
utilizing, as a template, tesolutions previously adopted by the City for the annual levy process.
FurtheImote, if tequested, we will assist City staff in the preparation of staff reports. Based on
current legislation, any recommended changes to the resolutions will be identified and discussed
with the City. The City of Seal Beach acknowledges that the City's legal counsel will review all
resolutions for fOIm and content.
6. Attend, in addition to the annual kickoff meeting, up to two (2) City meetings, public hearings
and/or staff meetings. As tequested by staff, MuniFinancial will also be available to answer
questions. Typically, we attend the public hearing; but if requested, we will also attend an additional
meeting to address budget issues with staff or to attend the meeting for adoption of the Resolution
of Intention. MuniFinancial's staff time for these meetings is included in our fee proposal. However,
based on actual costs incurred, travel expenses will be billed separately.
7. Prepale a single Engineer's Report that includes each of the districts to be assessed. This teport will
include the following items:
· ,A general description of the districts that may include key historical facts and zone designations.
· A description of the plans and specification for the improvements (for details, this may involve
a reference to documents on file at the City).
· An estimate of the costs of the improvements (budget for each district).
MuniPiDlIDciaJ
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Exhibit A
. A description of the Method of Apportionment (assessment calculation) and discussion of
benefits.
. A diagtam(s) of the districts (provided by the City).
. An assessment of the estimated cost to each palcel.
. An affidavit stating that a ptofessional engineer has prepaled the report.
8. Provide the City with two (2) bound copies of the full Engineer's Report, including the collection
roll (one [1] for the City clerk, and one [1] for the City staff); plus one (1) unbound copy of the
Engineer's Report for staff to reproduce when needed.
9. Provide a!sessment amounts for each parcel by Assessor's Patcel Number to the County
Auditor/C::ontroller's Office in the media, fonnat, and configuration tequited by the County for
placement on the annual property tax roll
10. CoOIdinate the assessment roll delivery, the resolutions ordering the levy, and the collection of
assessments and other necessary infoImation to the County Auditor/Controller's Office.
11. Reseatch the exceptions (upon Ieceipt of a palcel exceptions list from the County), update palcel
number changes, and report the revised palcels and updated levy amounts to the County. As
necessary, MuniFinancial will prepare additional County-requited correspondences for City staff that
relate to the submittal, co:aection, or removal of assessments to the County tax roll
12. Provide the City with a levy summary report comparing budget amounts to the actual applied levy.
This levy summary will include a description of the reasons for any significant variances between the
amounts budgeted, and the amounts actually applied to the County tax roll
13. Act as primary contact (at the disctetion of the City) to answer property owner questions regatding
the districts and assessments. MuniFinancial typically provides the County QUI toll-free telephone
number for inclusion on the tax hills for property owners to call with questions.
14. Prepale and mail invoices (handbills), at the City's request, to all property owners whose proposed
annual assessment for theiI parcel could not be applied to the County tax roll (parcels for which the
County does not generate a tax bill). These invoices would provided in two (2) installments similat
to the County tax bills and would be payable ditectly to the City.
Community Facilities and Assessment District Administration
MuniFinancial proposes to perfOIm the following services for the City's Community Facilities and
Assessment Districts:
1. Maintain up-to-date Assessor patcel maps; and periodically update an electronic database containing
palcel-basis data, as it relates to the infoImation, in accordance with the calculation dictated in the
Special Tax Rate and Method of Apportionment.
2. Update, when necessary, the annual Special Tax/Assessment levy amounts by Assessor's Parcel
Number pOOl to enrollment of the annual levy.
3. Annually calculate and apportion the Special Taxes/Assessments, as specified by the Rate and
Method of Appottionment of Special Tax and the Assessment Engineer's Report
4. Prepare, if necessary, an annual resolution that establishes the budget fot the fiscal year and
application of the Special Tax to be submitted to the County, including the Special Tax summary for
the fiscal yeal.
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Exhibit A
5. Provide Special Taxi Assessment levies for each palce! by Assessors Palcel Number to the County
Auditor/Controller's Office in the media, fo=t, llI1d configuration required by the County for
placement on the annual property tax roll.
6. Resealch palcel exceptions provided by the County and, if possible, Iesubmit insh111ment amounts
that are unapplied by the County Auditor/Controller's Office. MuniFinancial will manually invoice
Special Tax/Assessment installments that cannot be collected on the County property tax roll on
behalf of the City.
7. Provide a toll-free number to field inquiries from City staff, property owners, and other interested
patties regarding Special Taxi Assessment installments and telated infoImation.
8. The fees (1ee "Cost Proposal" section) for the following services ale paid by the requesting patty
and may be charged to a credit catd; there is no ch"tge to property owners and/or to the City:
. Cdculate written pIepayment quotes for individual Special Tax/Assessment liens, as described
in the Rate and Method of Apportionment of Special Tax or in the Assessment Engineer's
Report For parcels prepaying the Special Tax/Assessment lien, MuniFinancial will obtain
recordation infoImation for prepaid tax/ assessment liens and coordinate the Release of Lien.
. Prepare ''Notice of Special Tax" as Iequited by the California GOII,rn""nt Cod" Sections
53340.2(b) and 53341.5, as amended.
. Prepare "Notice of Special Assessment" as Iequired by Section 3114 of the St,.,I1S and
Highways, as amended.
9. Perform. requited bond call spIeads, and coordinate the early redemption of outstanding bonds.
Additional efforts needed to complete bond calls, such as cash flow certificates, special analyses
and/or atypical spread ca1culations, shall be charged hourly using our then-currenthoudy rates
(see "Additional Services" section).
10. Prepare an Annual Special Tax/Assessment Levy report.
11. Monitor delinquencies each February and May, and submit periodic delinquency reports to the City.
12. Provide an annual report to the California Debt and Investment Advisory Commission (CDIAC) by
October 30, if Iequited by the California GOII,rnm,nt Cod" Section 53359.5(b), as amended.
13. Provide areport to the County Assessor's Office each yeal, as Iequited by Revenue and Taxation
Code 163.
14. Assist the City in the filing of a report with its goveming body each yeal to comply with legislation
approved in 2001 that enforces additional reporting requirements. This annual filing shall meetwith
regulations imposed by the California Gov,rn.""nt Cod" Section 50075.3 (a) & (b), and/or
Section 53411 (a) & (b), as amended (Senate Bill 165).
15. Be available to attend meetings.
Municipal Disclosure
Should the City of Seal Beach desiIe, MuniFinancial can also provide assistance and advice on ongoing
Disclosure matters. In connection with the City's outstanding debt linancings, MuniFinancial can
provide guidance llI1d diIection to the City in preparing DisclosUIe reports. MuniFinancial would help
the City provide requited financial and operating data requested by investors that would, otherwise, be
considered material in keeping securities holders infOImed of the investment quality of the debt issue.
MuniFinancial would also assist the City in Iesponding to questions from investors and other market
patticipants.
MuniFintU2a.J
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City ofSe.I Beach
Exhibit A
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In addition, MuniFinancial can assist the City with respect to new debt issues in developing reporting
requirements for the Disclosure documents for compliance with relevant requitements, and meet the
demands for infoImation from the marketplace.
Annual Financial Information Statement Preparation
With Iespect to the preparation of the Annual Financial InfoImation Statement, MuniFinancial would
provide one or all of the following services, as directed by the City:
15. Review pertinent documents relating to the debt issue, including the official statement, financial
statements, and annual ~eports.
16. Collect third-patty data and other infoImation requited to be included in the Annual Financial
InfoImatibn Statement diIectly from Trustees, fiscal agents, state and county agencies, and others, as
appliCable.
17. Analyze the infoImation for accuracy, materiality, and appropriateness.
18. Provide advice and diIection on inclusion and pIeS entation of the infOImation in the Annual
Financial Information Statement.
19. Create a draft of the Annual Financial Information Statement fOl teview by the City.
20. Discuss any relevant issues with the City Iegatding the teport, and addtess questions the City may
have Iegatding Disclosure matters.
21. Finalize and disseminate the Annual Financial Information Statement, including as necessary,
e arranging fOl electronic and paper reproduction and distribution.
Dissemination
MuniFinancial can disseminate the DisclosUIe teports to each Nationally Recognized Municipal
Securities InfoImation Repository (NRMSIR), the Municipal Securities Rulemaking Board (MSRB) (if
applicable), the appropriate State InfoImation Depository (SID), and any other patty as diIected by the
City. MuniFinancial can also post the final DisclosUIe reports on the MuniFinancial Website at
www.mnni.com. In addition, MuniFinancial would also assist the City when !equests for information
ale received, and respond to questions from investOls and other market patticipants.
Significant Event Notices
Upon notification by the City and/or if MuniFinancial becomes aWaIe, and if deemed to be material,
MuniFinancial would prepare Notices of Significant Events covering events enumerated in
Rule 15c2-12(b) for teview by the City. :
Delinquency Management
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In order to assure that the City of Seal Beach complies with its foreclosure covenant to bondholders fOl
the district, MuniFinancial can provide the following Delinquency Management services:
1. Monitor deIinquent tax bill payments in December and April of each yeat.
2. Provide deIinquency reports to the City inJanUaIy and May.
3. Send a delinquency reminder letter after the first installment of the tax bill becomes delinquent
4. Send a 30-day delinquency demand letter after the second installment of the tax bill becomes
delinquent. Each demand letter will include a brochure providing answers to commonly asked
questions concerning delinquencies.
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Exhibit A
5. Remove the delinquent installments of special assessments/taxes for the curtent and/or prior tax
yeates) from the County tax roIl. Such removal will comply with SB 1471.
6. Send a final 21-day delinquency foreclosure letter to each delinquent property owner after
confirmation from the County for the Iemoval of the delinquent special assessments/taxes.
ForeclosUIe letters shall contain a brochUIe providing answers to frequently asked questions
regatding delinquencies and judicial foreclosUIes.
7. Send those parcels, whose special assessments/taxes continue to temain delinquent after twenty-one
(21) days from the mailing of fOIeclosUIe letters, to the fOIeclosure attomey for collection of the
delinquent special assessments, applicable penalties, interest, fees, and other authorized costs. The
City-Ietain.ed fOIeclosure counsel will collect these fees.
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8. Provide a toll-free telephone number at MuniFinancial to field inquiries from staff, palcel owners,
lendeis, and other interested patties concerning annual installments and delinquencies throughout
the entire Delinquency Management/ fOIeclosure process.
9. Assist fOIeclosure counsel to initiate judicial foreclosure proceedings; and in accordance with bond
foreclosure covenants, prosecute those parcels sent to foreclosure.
10. Provide, upon Iequest, payoff quotes fOl all interested patties for stripped delinquent assessment
installments. Fees for this service ale paid by the requesting patty and may be chatged to a credit
card; there is no charge to the Ci~.
Subsequent Foreclosure Services
Once the delinquent assessments/taxes have been forwalded to judicial foreclosure counsel,
MuniFinancial would, upon request, provide the following services:
1. Prepare and forward a detailed Ieport of the parcels to be fOIeclosed to foIeclosure counsel.
2. Provide foreclosure counsel with the necessary resolutions and other documents to proceed with the
judicial fOIeclosure process.
3. Keep the City and foreclosure counsel apprised of special arising situations of which we become
aware, such as bankruptcies of palcel owners, tax fOleclosure sales, Deed of Trust ''Trustee''
fOIeclosure sales, and so forth.
4. Provide fOIeclosure counsel with "subsequent year' delinquency information consisting of any
installments/yeats that become delinquent on parcels already in fOIeclosure.
5. Generally respond to inquiries from City staff and fOIeclosure counsel regatding the status of a
foreclosure action and other Ielevant information.
Additional Services Offered
MuniFinancial can, at the discretion and approval of the City, negotiate a Iepayment schedule (payment
plan) with property owner(s) to CUte the delinquency and avoid initiation of judicial foreclosUIe.
Arbitrage Rebate
In connection with Arbitrage Rebate Compliance Services, MuniFinancial could also perfOIm the
following tasks, as ditected by the City:
1. Review pertinent documents relating to the subject financings to identify relevant exemptions,
exceptions, elections, and yield Iestrictions.
MuDiFin8Ddlll
Page 11
City ofSelll Besch
e 2.
3.
4.
5.
6.
7.
8.
9.
e
e
Exhibit A
Load the subject bond issues into our online tracking system, which is made available for viewing
via our Website.
ThiId-paIty data, and other statistical, financial, and cash flow information requited for the reports
will be collected.
Review all reguIatory provisions; whereby, a comptehensive rebate report is produced.
Complete and sent all IRS forms with filing instructions to the City.
Engage, upon request, the services of tax counsel; whereby, an independent legal opinion shall be
rendeted.
Keep abr,ast of enforcement actions and changes to codes/tegulations that affect Arbitrage
compliance requiternents.
Assist the City in the event of a rebate calculation audit.
Consult, upon request, with respect to the structuring of new bond issues and other matters that will
affect any eventual Arbitrage liability.
Client Responsibilities
MuniFinancial will rely on being able to obtain the following information from the City of Seal Beach:
. Annual information related to fund balances for the district.
· The budget Sl1tnm.'Y to be incotpOl:ated into the annual resolution establishing the budget and
Special Tax rates for the district
· InfOImation regatding land subdivision, issuance of building petmits and/or certificates of
occupancy (as requited by the City of Seal Beach). Although MuniFinancial will annually reseatch
infoImation, it may still be necessary to obtain additional assistance from the City.
· Current development plan/tentative maps and annual changes, modifications or updates, if
necessary.
. Official Statement.
. Tax Certificate (Arbitrage Certificate, Non-Arbitrage Certificate).
· IRS FOIm 8038-G (governmental) or FOIm 8038 (private activity).
. Escrow Verification (tefunding issues only).
· Cash/Asset and Investment Activity Statemen,ts (or intemal records of expendituIe and eatnings
activity).
MuniFinancial will also tely on being able to obtain certain financial and operating information to
perform the necessary due diligence on the bonds. This information will include, but may not be limited
to, the following infoImation from the City of Seal Beach:
· The City's Adopted Budget · The Redevelopment Agency's State
. The City's Audited Financial Statements, Controller's Report, and
Th R clevel t A ' A dit d · Current balances on funds held at the
· <; e opmen gencys u e C'
Financial Statements, Ity.
The City of Seal Beach acknowledges that MuniFinancial shall be relying upon the accuracy of the
information provided by the City or theiI designees and that MuniFinancial shall not be liable for any
inaccuracies contained therein.
MuniFinmcial
Page 12
City of Seal Be.ch
Exhibit B
e COST PROPOSAL
Community Facilities District Administration
The fees below reflect the completion of the tasks outlined in the scope of services. These fees and rates
ale subject to inCIease, which will not exceed the most recent annual change in the Consumer Price
Index (CPI) within the applicable areas, as calculated by the United States DepaItment of Labor. Any
substantial variation in number may cause a change in our fee structure. As the work progtesses, these
fees are payable on a monthly basis.
e
- --- ----- - - I - --
Dis1tilt h'l'
--- - -- - - - -- - --- -
StIeet Lighting District No.1 $ 9,500
Community Facilities District 2002-01 (Heron Pointe) 4,500
Pacific Gateway Community Facilities District 4,500
Surfside Colony Reassessment District No. 2000-1 4,500
Community Facilities District 2002-02 3,500
(Seal Beach Blvd/Lampson Avenue)
Payoff Quote'" (per Request):
Community Facilities Districts $ 350
Assessment Districts 150
", The requestiDg party pays for fees for this service. Them is DO chaw to propertyowners
IlDd/or to the City of Seal Beach.
Municipal Disclosure
Community Facilities District 2002-01
(Heron Pointe)
S 1,000
Waived
Pacific Gateway Community Facilities District
1,000
Waived
Surfside Colony Reassessment District No. 2000-1
1,000
Waived
e
Significant Event Notice Preparation
(If necessary)
Hourly Rates
MuniPin.nc1al
Page 13
City of Seal Besch
e
e
e
Exhibit B
Delinquency Management '
As the service is rendered, the following fees ale invoiced to the City. They ale ultimately paid by, Ol on
behalf of, the delinquent property owners.
- - - - - - --- -
, Sl'f\ lLL~ Fees I
I -- -- ---- --
Fees Ultimately Reimbursed to Agency by Property Owner.
Delinquency Reminder Letter $ 15
DelifI.queney Demand Letter 45
ForeclosUIe Letter 65
Effect Removal from Tax Roll and 110
Record Subsequent Notice of Satisfaction
Payment Plan 200
Subsequent Foteclosure Services 100-300
Fees Paid Ditectly to MuniFinancial by Requestor:
Delinquency Demand Payoff (1) $ 50
Zero Demand (1) 50
(1) This fee is wsived for the property owner (exceot for escrow purposes) or for the
City of Sesl Beach. Tbis fee complies with Section 88JJ of tbe Cslifornia Streets
and Highways Code and/or Section 5JJ56.2 oftbe California Government Code,
wbich requires recording of a Notice of Intent to Remove Delinquent Special
Assessments and/or Special Taxes from the County tax roll. It DOES NOT include
the County tax roD removal charge, or similar fee, if any.
Arbitrage Rebate
MuniFinancial reserves the right to review all official bond documents befote any bid is binding. If any
fee adjustments ale needed after our review, MuniFinancial will notify and gain prior approval from the
City before engaging in said calculation.
--- - - - --- -- ---
I I I
Issllt' I C.t1clILttioll I
ISSlIl' N.1I1H' I f),He PCflntl I J-<Cl'
- - -- I ----- -- -
Community Facilities District 2002-01 TBD Annual $ 1,250
(Heron Pointe)
Pacific Gateway Community Facilities District TBD Annual 1,250
MuniFinmcisd
Psge 14
City ofSesd Beach
Exhibit B
e
-- - -- - -- - - -
Dc" riptlon oll \dd1l1olll.d hTS th.lI 1\1.,,' or 1\1.1\ Nolt i\)lph I AnltllJtlt
- - -- ___J - -
Setup Fee (One-time Chatge) $ 500
Transferted Proceeds Analysis (per Bond Yeat) 250
Commingled Funds Analysis (per Bond Yeat) 250
Prepalation of IRS Payment Form 8038T No Chalge
Request for Refund of Overpayment No Chatge
IRS 4udit Assistance Hourly Rates
Reimbursable Expenses
e
MuniFinancial will be reimbursed for out-of-pocket expenses. Examples of reimbursable expenses
include, but ale not limited to: postage, travel expenses, mileage (currently 48.5t per mile), maps,
electronic data provided from the County and/or other applicable resources, and copying (currently 6t
per copy). Any additional expense for reports or from outside services will be billed to the City. Charges
for meeting and consulting with counsel, the city, or other patties regarding services not listed in the
scope of work above will be at our then-CUIIent hourly rates (see the "Additional Services" section).
In the event that a thiId patty requests any documents, MuniFinancial may chalge said patty for
providing such documents in accordance with MuniFinancial's applicable rate schedule.
Additional Services
Hourly Rates
Upon the City's request for MuniFinancial to perfOIm any additional services, MuniFinancial will
provide a separate written cost estimate for the City's authorization. Cost estimates for additional
services are based on our then-CUIIent hourly rates, which ale as follows:
e
Illk I J Lolllrh R.lle
-- - -- --- -- --
Division Manager $ 180
Principal Consultant '. 145
Senior Project Manager 125
Project Manager 105
Senior Project Analyst 95
Senior Analyst 85
Analyst 75
. Analyst Assistant 65
Property Owner Service Representative 50
Support Staff 45
MuniPinsnci"]
P"II"15
City ofk"] Beach
e
RESOLUTION NUMBER
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH, CALIFORNIA, AUTHORIZING A BUDGET
AMENDMENT, NO. OS..o8 FOR FY 2007/OS TO INCREASE
ADMINISTRATIVE SERVICES (CONTRACT PROFESSIONAL
SERVICES) FOR MUNICIPAL DISCLOSURE AND ARBITRAGE
REBATE SERVICES
WHEREAS, the fiscal year 200712008 budget requires budgetary amendments as
outlined below:
THE CITY COUNCll. OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
Section 1. The City Council hereby revises the budget for Contract Professiono!
Service.s by adding thereto $35,000 as follows:
DESCRIPTION
ACCOUNT
REVISED/
ADOPTED
BUDGET
PROPOSED BUDGET (dif!)
BUDGET AMENDMENT
Contract Prof Svcs ool-ll17.440oo
$189,500
$224,500
$35,000
PASSED, APPROVED AND ADOPI'ED BY THE City COImcil of Seo! Beach, at a
meeting he=f held on the 22nd day of October. 2007 by the following vote:
AYES:
COUNCn.MEMBERS
e
NOES:
COUNCn.MEMBERS
ABSENT: COUNCn.MEMBERS
ABSTAIN: COUNCn.MEMBERS
Mayor
ATI'EST:
City Clerk
STATEOFCALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk for the City of Seal Beach, California, do hereby certify that
the foregoing resolutions i. the original copy of Resolution Number_ on file in the
office of the City Clerk, passed, approved and adopled by the City Council of the City of
Seal Beach at a regular meeting hereof held on the 22nd day of October. 20m.
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City Clerk
e
RESOLUTION NUMBER
A RESOLUTION OF THE CITY COUNCll. OF THE CITY OF
SEAL BEACH APPROVING AGREEMENT WITH MUNI.
FINANCIAL FOR DISTRICT ADMINISTRATION, MUNICIPAL
DISCLOSURE AND ARBITRAGE REBATE SERVICES
The City Council of the City of Seal Beach hereby resolves as follows:
SECTION I. Tbe City Council hereby approves the Agreement between the City of Seal
Beach and MuniFinancial for district administration, mllllicipal disclosure and arbitrage
rebate services.
9j;.CT10N 2. The Council hereby directs the City Manager to execute the Agreement
with MuiJiFmancial.
PASSED, APPROVED AND ADOPI'ED by the City Council of Seal BelICh, at a regular
meeting held on the 22nd day of October. 2007 by the following vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
e
Mayor
ArrEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH I
I, Unda Devine, City Clerk for the City of Seal Beach, California, do hereby certify that
the foregoing resolution is the original copy of Resolution Number on file in the
office of the City Clerk, passed, approved and adopted by the City Council of the City of
Seal Beach at a regular meeting held on the 22nd day of October. 2007.
City Clerk
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