HomeMy WebLinkAboutCity Council Item 07CITY OF
LAKJE LSINOIZE
DREAM EXTREMEn
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: MARCH 22, 2011
SUBJECT: AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR
ASSESSMENT ENGINEERING AND SPECIAL TAX CONSULTING -
FRANCISCO AND ASSOCIATES, INC.
Background
The City currently has 26 Mello-Roos Community Facilities Districts (CFDs), 2
Landscape and Lighting Maintenance Districts (LLMDs), and 3 1913 Act Assessment
Districts (ADs). These 31 districts require annual administration to calculate and levy
the assessments and taxes each year. These services generally consist of: the
development of annual reports, monitoring development activity and parcel changes,
calculation of annual assessments/taxes, monitoring assessment district funds,
conducting assessment and tax payoff calculations, bond call and disclosure reporting,
etc. Since April 2009, the City has contracted with Francisco & Associates, Inc.
(hereinafter "FAI") to administer the 26 CFDs and 2 LLMDs. For the past 15 years, the
City has contracted with NBS to administer the 3 ADs.
Discussion
In order to provide a more efficient and higher level of service to the City and property
owners, staff is recommending the administration of the 3 1913 Act Assessment
Districts be performed under the current contract with FAI. FAI has provided
outstanding customer service to the City and currently provides administration for the
vast majority of the City's special financing districts (28 of the 31 districts). In addition,
adding the 3 ADs to the current contract with FAI will not increase the annual not-to-
exceed amount of their existing contract. The amended contract with FAI would take
effect for the FY 2011-12 annual administration process, which begins April 1, 2011, in
order to meet the County property tax bill submittal deadline of August 10, 2011.
AGENDA ITEM NO. 7
Page 1 of 8
Amendment to Professional Services Agreement - Francisco and Associates, Inc.
March 22, 2011
Page 2
Staff has discussed adding the additional services with FAI and they have guaranteed
that they can provide the required AD services at the same cost efficient manner as
they have shown with the CFDs and LLMDs, while maintaining the exceptional level of
customer service that the City has come to rely on.
Below are some of the areas that will see cost efficient and enhanced customer service
levels due to the consolidation under one contract:
• Consolidating delinquency management and monitoring will remove a duplication
of work.
• All property tax bill questions and other inquiries, such as payoff requests, will go
to one firm, reducing frustration to property owners in multiple districts.
• Coordination efforts for development of the required annual continuing disclosure
reports will be reduced. Currently both firms assist with the development of the
continuing disclosure reports.
Therefore, staff is also recommending terminating the existing professional services
contract(s) with NBS effective April 30, 2011. A month overlap in services will occur,
but is necessary to transition the services to FAI.
Fiscal Impact
Annual administrative expenses are funded through the property owner annual
assessment and special tax levies.
Recommendations
1. It is recommended to approve the amendment to the existing agreement
between the City and Francisco & Associates, Inc., making the amendment
effective April 1, 2011
2. It is recommended that the existing professional services agreement(s) between
the City and NBS be terminated effective April 30, 2011.
Prepared by: James R. Riley
Director of Admini ative Services
Approved by: Robert A. Bradvlli f~
City Manager
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A Financial Services Group
January 19, 2011
James Riley
Director of Administrative Services
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530
Subject: Proposal to Provide Additional Assessment Engineering Services for the City
of Lake Elsinore Commencing in FY 2011-12
Dear James:
Francisco &r Associates, Inc. is pleased to present this proposal to provide additional
administrative services to the City of Lake Elsinore commencing in FY 2011-12. The proposed
scope of services and fee schedule are summarized below:
PHASE I - ASSESSMENT DISTRICT ADMINISTRATION
Task No. I Develop the ensuing year's assessment database for each assessment district. The
assessment databases will include a listing of each parcel's original assessment
amount, remaining principal amount, and the current year's principal, interest
and administrative charges.
Task No. 2 Coordinate with the City on a periodic basis to analyze the cash flow and fund
balances in each assessment district fund. This will include recommending
credits to the ensuing year's levy due to interest earnings or bond calls. When
warranted assist with the bond call spreads and coordinate the early redemption
of outstanding bonds.
Task No. 3 Coordinate with the County Assessors office in July of each fiscal year to
determine which parcels within the City's assessment districts have segregated.
For each parcel that has segregated determine the new parcels corresponding to
each segregated parcel and reallocate their assessment lien.
Task No. 4 Based upon the parcel changes described in Task No. 3 update the assessment
database for each assessment district.
Task No. 5 After receiving City approval, submit the assessment levies to the County in their
required electronic format. If there are any additional parcel kick-outs research
the parcels and resubmit them to the County so that they are included on the
ensuing year's property tax roll.
5927 Balfour Court, Suite 109 Carlsbad, CA 92008
(760) 438-5330 - fax (760) 438-5326
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James Riley
January 19, 2011
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Task No. 6 Prepare an electronic listing of the assessment levies for each assessment district
and forward to the City.
Task No. 7 Provide a toll free number to field property owner inquiries throughout the fiscal
year.
Task No. 8 Prepare an annual report, which will include findings and recommendations, as
well as a summary of significant events. The report will contain district summary
information; amounts applied to the tax roll for each parcel, broken down by
principal, interest and adjustments; fund analysis; delinquency summary
information; value to lien ratios; current debt services and amortization
schedules; cash flow analysis; and bond call summaries.
Task No. 9 Prepare and submit the required CDIAC reports each year for each applicable
assessment district.
Task No. 10 Prepare the annual report required pursuant to Revenue and Taxation Code,
Section 163 to the County Assessor. The Report will contain:
• The lien amount on each subject parcel at the time the lien was created.
• In the case in which a lien has been completely satisfied, the date and
amount of the payment in satisfaction of the lien, and the identity of the
party that made that payment.
• The amount of the principal balance of the lien on each subject parcel.
PHASE II - ASSESSMENT PREPAYMENT CALCULATIONS
Task No. I Provide assessment prepayment calculations to interested parties throughout the
fiscal year. The prepayment calculations will take into account, remaining
principal, interest to the next bond call date, prepayment penalties, city
administrative fees, etc.
Task No. 2 Mail, fax or e-mail the prepayment calculation to the interested property owner
within 24 hours of the request.
Task No. 3 Coordinate the Release of Lien with the County when a property owner has paid
their assessment off in full.
PHASE 111- DELINQUENCY ADMINISTRATION
Task No. l Coordinate with the County each year and obtain a listing of delinquent parcels
for each bonded assessment district which have not paid their assessments by
December 10. This report is available approximately one (1) month after the
December 10 payment due date.
Francisco &Associates
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James Riley
January 19, 2011
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Task No. 2 Prepare a Delinquency Report identifying all parcels which have not paid their
December installment. The report will be prepared in January of each year and
include the assessor parcel number, property owner name, mailing address, situs
address, delinquent installment amount and corresponding payment due date.
Task No. 3 Prepare Delinquency Reminder Letters, approved by the City and mail them to
each property owner in January giving them 30 days to cure their delinquency.
Task No. 4 Coordinate with the County each year and obtain a listing of delinquent parcels
for each bonded assessment district which have not paid their assessments by
April 10. This report is available approximately one (1) month after the April 10
payment due date.
Task No. 5 Prepare an updated Delinquency Report identifying all parcels which have not
paid their December and/or April installment. The report will be prepared in
May of each year and include the assessor parcel number, property owner name,
mailing address, situs address, delinquent installment amounts and
corresponding payment due dates.
Task No. 6 Prepare Delinquency Reminder Letters, approved by the City and mail them to
each property owner in May giving them 30 days to cure their delinquency.
Task No. 7 Coordinate with the County each year and obtain a listing of delinquent parcels
for each bonded assessment district which have not paid their assessments by
July 1. This report will be requested in July of each year.
Task No. 8 Prepare Delinquency Demand Letters, .approved by the City and mail them to
each property owner in July giving them 30 days to cure their delinquency.
Task No. 9 Prepare a Final Delinquency Report identifying all parcels remaining delinquent
and their corresponding delinquent installment amounts. The report will be
prepared in August of each year and include the assessor parcel number, property
owner name, mailing address, situs address, delinquent installment amounts and
corresponding payment due dates.
Task No. 10 If required, coordinate with Legal Counsel and strip the delinquent assessments
from the County's Secured Property Tax Roll. Assist Legal Counsel with the
foreclosure process as necessary.
Francisco &Associates
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James Riley
January 19, 2011
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PHASE IV - CONTINUING DISCLOSURE
Prepare and disseminate Disclosure Reports to the Nationally-Recognized Municipal Securities
Information Repositories (NRMSIR), the Municipal Securities Rulemaking Board (MSRB) and
the appropriate State Information Depository (SID).
Task No. I Prepare the Annual Continuing Disclosure Report and respond to secondary
information requirements set forth in SEC Section 15c2-12, as amended and SEC
Section lOb-5.
Task No. 2 Prepare Notice of Material/Significant Events if any of the following events occur.
• Principal and interest payment delinquencies.
• Non-payment related defaults.
• Modifications to rights of bond holders
• Optional, contingent or unscheduled bond calls.
• Defeasances.
• Rating changes.
• Adverse tax opinions or events affecting the tax exempt status of bonds.
• Unscheduled draws on the debt reserves reflecting financial difficulties.
• Unscheduled draws on the credit enhancements reflecting financial difficulties.
• Substitution of the credit or liquidity providers or their failure to perform.
• Release, substitution or sale of property securing repayment of bonds.
PHASE V - ASSESSMENT SEGREGATION SERVICES
Task No. I Review with City staff the scope of work, project schedule and any other
pertinent project information. Discuss the pros and cons of using the Standard
Procedure for Division of Land and Bond versus the Alternative Procedure for
Division of Land and Bond.
Task No. 2 Upon receipt of the signed application and a copy of the map showing the newly
segregated parcels, apportion the original assessment amount to each newly
segregated parcel. The allocation of the original assessment amount to the newly
created parcels will be based upon the proportionate benefit they receive from
the improvements that were financed from the bond proceeds.
Task No. 3 Prepare a Notice of Amended Assessment and an Amended Assessment Diagram
that shows how the original parcels have been segregated based upon the
requirements of Section 3114 of the Streets and Highways Code and per the
County of Contra Costa's requirements.
Francisco &Associates
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James Riley
January 19,2011
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Task No. 4 Send to the underwriter or other original purchaser of any bonds a notice, by
certified or registered mail, that an apportionment of an assessment has been
made and that, unless a request for a hearing is received within 14 days from the
date of mailing of the notice, the apportioned assessments shall be recorded. (If a
request for a hearing is received, a report shall be filed and hearing shall be
scheduled, noticed, and held in accordance with the Standard Procedures for
Division of Land and Bond).
Task No. 5 File the approved amended assessment and amended assessment diagram with
the City Engineer and record a copy of the amended assessment diagram and
Notice of Assessment Lien in the County Recorder's office.
Task No. 6 Each Fiscal Year, prepare an annual segregation report that identifies all parcels
that have been segregated. The report shall show how the original parcels have
had their unpaid assessments apportioned in accordance with the benefits
received.
FEE SCHEDULE
The following is our estimated fee schedule for the annual administration of the Bonded
Assessment Districts. The final Invoice will reflect the true number of parcels that were
administered.
Assessment District Administrative Services
Assessment District Services
$16.00 per parcel
Prepayment Calculations $100 Charge to Requestor if requesting more than one payoff.
Delinquency Administration
Delinquency Reminder Letter
Hourly
Delinquency Demand letter
Hourly
Effect Removal from Tax Roll
Hourly
Forclosure Services
Hourly
Continuing Disclosures
$1,300/assessment district
$200/material report
Francisco 6i Associates
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James Riley
January 19, 2011
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Assessment Segregation Services
The follow is our lump sum rate schedule for Assessment Segregation Services.
Reimbursable expenses such as mileage, overnight mail, County Fees, County Assessor maps,
Secured Property Tax Roll, bluelines, mylars, etc. are included in the lump sum fees.
Francisco & Associates will invoice the City monthly for services provided during the previous
month.
Additional Services
If additional Services are requested by the City they could be performed for an agreed lump sum
or billed at the following hourly rates.
Principal Engineer
$180/hr.
Project Manager
$150/hr.
Project Engineer
$135/hr.
Senior Financial Analyst
$100/hr.
Financial Analyst
$85/hr.
Word Processing
$65/hr.
If you have any questions, or comments regarding our scope, fee or timeline, please give me a call
at 760-438-5330.
Sincerely,
FRANCISCO & ASSOCIATES, INC.
Joseph A. Francisco, P.E.
Principal
Francisco &Associates
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