HomeMy WebLinkAbout2009-02-24 City Council Agenda Item No 10CITY OF
LADE , LS1A0RJE
DREAM EXTREME_
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: FEBRUARY 24, 2009
SUBJECT: PROFESSIONAL SERVICES CONTRACT FOR ASSESSMENT
ENGINEERING AND SPECIAL TAX CONSULTING - FRANCISCO AND
ASSOCIATES, INC.
Background
The City currently has 22 Mello -Roos Community Facilities Districts and 2 Landscape
and Lighting Maintenance Districts. The assessments and taxes derived from these
districts pay for bonded indebtedness and on -going operation and maintenance costs.
Each district requires specific administrative actions annually in order to collect the
amounts due with the County property tax bills. In addition, as development occurs, the
creation of new districts or the annexation of territory into the maintenance districts may
be required. For the past 11 years, the City has contracted with Harris & Associates for
these assessment engineering and special tax consulting services. Since 1998, Harris'
project manager, Dennis Anderson, has provided City staff and the public with
exceptional service.
Discussion
City staff has become aware that Mr. Anderson has accepted the position as a Principal
at the assessment engineering and special tax consulting firm of Francisco and
Associates, Inc. In order to preserve the historical knowledge that Mr. Anderson
possesses for each of the City's financing districts, staff is recommending entering into
a professional services agreement with Francisco and Associates, Inc. The contract
would take effect for the FY 2009 -10 annual administration process, which begins April
1, 2009 in order to meet the County property tax bill submittal deadline of August 10.
This change of consultant will also produce a 5% reduction in the consulting fees, based
on the rates provided by Francisco and Associates, Inc.
Agenda Item No. 10
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Professional Services Agreement - Francisco and Associates, Inc.
February 24, 2009
Page 2
Staff is also recommending terminating the existing professional services contract with
Harris & Associates effective April 30, 2009. This one month overlap in services will
allow Harris to complete FY 2008 -09 collection process and allow Francisco and
Associates, Inc. to begin the FY 2009 -10 process. No duplication of effort will occur and
the costs for the services are already funded through the districts.
Fiscal Impact
Annual administrative expenses are funded through the annual assessment and special
tax levy. Formation and annexation services are funded through the developers.
Recommendations
1. It is recommended that the City Council authorize the City Manager to enter into
the attached professional services agreement with Francisco and Associates,
Inc. for assessment engineering and special tax consulting services and
terminate the existing professional services contract with Harris & Associates
effective April 30, 2009.
Prepared by: James R. Rile
Acting Directo*Om nistrative Services
Approved by: Robert A. Brady
k
City Manager
Agenda Item No. 10
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AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement for Professional Services (the "Agreement ") is made and entered into as of
the _ day of , 2009, by and between the City of Lake Elsinore, a municipal
corporation ( "City ") and Francisco & Associates, Inc., a California corporation ( "Consultant ").
RECITALS
A. Consultant is specially trained, experienced and competent to perform the special services
which will be required by this Agreement.
B. Consultant possesses the skill, experience, ability, background, certification and knowledge
to provide the services described in this Agreement on the terms and conditions described herein.
C. City desires to retain Consultant to render professional consulting services and related work
as set forth in this Agreement.
AGREEMENT
1. Scope of Services Consultant shall perform the services described on Exhibit A which is
attached hereto and incorporated herein by reference. Consultant shall provide said services at the
time, place, and in the manner specified in Exhibit A, subject to the direction of the City through its
staff that it may provide from time to time.
2. Time of Performance The services of Consultant are to commence upon execution of this
Agreement and shall continue for a period of three (3) years, with two (2) optional one (1) year
extensions.
3. Compensation Compensation to be paid to Consultant shall be in accordance with the
Schedule of Charges set forth in Exhibit B, which is attached hereto and incorporated herein b}
reference. In no event shall Consultant's annual compensation exceed $450,000 without additional
authorization from the City. Payment by City under this Agreement shall not be deemed a waiver of
defects, even if such defects were known to the City at the time of payment.
4. Method of Payment Consultant shall submit monthly billings to City describing the work
performed during the preceding month. Consultant's bills shall include a brief description of the
services performed, the date the services were performed, the number of hours spent and by whom,
and a description of any reimbursable expenditures. City shall pay Consultant no later than 30 days
after approval of the monthly invoice by City staff.
5. Extra Work At any time during the tern of this Agreement, City may request that
Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined
by City to be necessary for the proper completion of the Project, but which the parties did not
reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not
perform, nor be compensated for, Extra Work without written authorization from City. Extra work
will be invoiced separately from services performed in accordance with the Scope of Services
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6. Termination This Agreement may be terminated by the City immediately for cause or by
either party without cause upon thirty (30) days' written notice of termination. Upon termination.
Consultant shall be entitled to compensation for services performed up to the effective date of
termination.
7. Ownership of Documents All plans, studies, documents and other writings prepared by and
for Consultant, its officers, employees and agents and subcontractors in the course of implementing
this Agreement, except working notepad internal documents, shall become the property of the City
upon payment to Consultant for such work, and the City shall have the sole right to use such
materials in its discretion without further compensation to Consultant or to any other party.
Consultant shall, at Consultant's expense, provide such reports, plans, studies, documents and other
writings to City upon written request. City acknowledges that any use of such materials in a manner
beyond the intended purpose as set forth herein shall be at the sole risk of the City. City further
agrees to defend, indemnify and hold harmless Consultant, its officers, officials, agents, employees
and volunteers from any claims, demands, actions, losses, damages, injuries, and liability, direct or
indirect (including any and all costs and expenses in connection therein), arising out of the City =s
use of such materials in a manner beyond the intended purpose as set forth herein.
a. Licensing of Intellectual Propert y . This Agreement creates a nonexclusive and
perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs,
and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and
other documents or works of authorship fixed in any tangible medium of expression, including but
not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes,
which are prepared or caused to be prepared by Consultant under this Agreement ( "Documents &
Data"), Consultant shall require that all subcontractors agree in writing that City is granted a
nonexclusive and perpetual license for any Documents & Data the subcontractor prepares under this
Agreement. Consultant represents and warrants that Consultant has the legal right to license any and
all Documents & Data. Consultant makes no such representation and warranty in regard to
Documents & Data which were prepared by design professionals other than Consultant or provided
to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at
any time, provided that any such use not within the purposes intended by this Agreement shall be at
City's sole risk.
b. Confidentiality All ideas, memoranda, specifications, plans, procedures, drawings,
descriptions, computer program data, input record data, written information, and other Documents &
Data either created by or provided to Consultant in connection with the performance of this
Agreement shall be held confidential by Consultant. Such materials shall not, without the prior
written consent of City, be used by Consultant for any purposes other than the performance of the
services under this Agreement. Nor shall such materials be disclosed to any person or entity not
connected with the performance of the services under this Agreement. Nothing furnished to
Consultant which is otherwise known to Consultant or is generally known, or has become known, to
the related industry shall be deemed confidential. Consultant shall not use City's name or insignia,
photographs relating to project for which Consultant's services are rendered, or any publicity
pertaining to the Consultant's services under this Agreement in any magazine, trade paper,
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newspaper, television or radio production or other similar medium without the prior written consent
of City.
8. Consultant's Books and Records
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers,
canceled checks, and other records or documents evidencing or relating to charges for services, or
expenditures and disbursements charged to City for a minimum period of three (3) years, or for any
longer period required by law, from the date of final payment to Consultant to this Agreement.
b. Consultant shall maintain all documents and records which demonstrate performance
under this Agreement for a minimum period of three (3) years, or for any longer period required by
law, from the date of termination or completion of this Agreement.
C. Any records or documents required to be maintained pursuant to this Agreement shall
be made available for inspection or audit, at any time during regular business hours, upon written
request by the City Manager, City Attorney, City Auditor or a designated representative of these
officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is
practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be
available at Consultant's address indicated for receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or
discarded due to dissolution, disbandment or tennination of Consultant's business, City may, by
written request by any of the above -named officers, require that custody of the records be given to
the City and that the records and documents be maintained in City Hall. Access to such records and
documents shall be granted to any party authorized by Consultant, Consultant's representatives, or
Consultant's successor -in- interest.
9. Independent Contractor It is understood that Consultant, in the performance of the work and
services agreed to be performed, shall act as and be an independent contractor and shall not act as an
agent or employee of the City. Consultant shall obtain no rights to retirement benefits or other
benefits which accrue to City's employees, and Consultant hereby expressly waives any claim it mad
have to any such rights.
10. Interests of Consultant Consultant (including principals, associates and professional
employees) covenants and represents that it does not now have any investment or interest in real
property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement
or any other source of income, interest in real property or investment which would be affected in any
manner or degree by the performance of Consultant's services hereunder. Consultant further
covenants and represents that in the performance of its duties hereunder no person having any such
interest shall perform any services under this Agreement.
Consultant is not a designated employee within the meaning of the Political Reform Act
because Consultant:
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a. will conduct research and arrive at conclusions with respect to his /her rendition of
information, advice, recommendation or counsel independent of the control and direction of the City
or of any City official, other than normal agreement monitoring; and
b. possesses no authority with respect to any City decision beyond rendition of
information, advice, recommendation or counsel. (FPPC Reg. 18700(a)(2).)
11. Professional Ability of Consultant City has relied upon the professional training and ability
of Consultant to perform the services hereunder as a material inducement to enter into this
Agreement. Consultant shall therefore provide properly skilled professional and technical personnel
to perform all services under this Agreement. All work performed by Consultant under this
Agreement shall be in accordance with applicable legal requirements and shall meet the standard of
quality ordinarily to be expected of competent professionals in Consultant's field of expertise.
12. Compliance with Laws Consultant shall use the standard of care in its profession to comply
with all applicable federal, state and local laws, codes, ordinances and regulations.
13. Licenses Consultant represents and warrants to City that it has the licenses, permits,
qualifications, insurance and approvals of whatsoever nature which are legally required of Consultant
to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole
cost and expense, keep in effect or obtain at all times during the term of this Agreement, any
licenses, permits, insurance and approvals which are legally required of Consultant to practice its
profession.
14. Indemnity Consultant agrees to indemnify and hold harmless the City, its officers, officials,
agents, employees and volunteers from and against any and all claims, demands, actions, losses,
damages, injuries, and liability, direct or indirect (including costs and expenses in connection
therein), to the extent arising out of the negligent performance of services under this Agreement,
except for any such claim arising out of the negligence or willful misconduct of the City, its officers,
agents, employees or volunteers.
15. Insurance Requirements
a. Insurance Consultant, at Consultant's own cost and expense, shall procure and
maintain, for the duration of the contract, the following insurance policies.
i. Workers' Compensation Coverage Consultant shall maintain Workers'
Compensation Insurance and Employer's Liability Insurance for his /her employees in
accordance with the laws of the State of California. In addition, Consultant shall
require each subcontractor to similarly maintain Workers' Compensation Insurance
and Employer's Liability Insurance in accordance with the laws of the State of
California for all of the subcontractor's employees. Any notice of cancellation or
non - renewal of all Workers' Compensation policies must be received by the City at
least thirty (30) days prior to such change. The insurer shall agree to waive all rights
of subrogation against City, its officers, agents, employees and volunteers for losses
arising from work performed by Consultant for City.
Agenda Item No. 10
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ii. General Liability Coverage Consultant shall maintain commercial general
liability insurance in an amount not less than one million dollars ($1,000,000) per
occurrence for bodily injury, personal injury and property damage. If a commercial
general liability insurance form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be performed
under this Agreement or the general aggregate limit shall be at least twice the
required occurrence limit.
iii. Automobile Liability Coverage Consultant shall maintain automobile
liability insurance covering bodily injury and property damage for all activities of the
Consultant arising out of or in connection with the work to be performed under this
Agreement, including coverage for owned, hired and non -owned vehicles, in an
amount of not less than one million dollars ($1,000,000) combined single limit for
each occurrence.
iv. Professional Liabilitv Coverage Consultant shall maintain professional
errors and omissions liability insurance for protection against claims alleging
negligent acts, errors or omissions which may arise from Consultant's operations
under this Agreement, whether such operations by the Consultant or by its
employees, subcontractors, or subconsultants. The amount of this insurance shall not
be less than one million dollars ($1,000,000) on a claims -made annual aggregate
basis, or a combined single limit per occurrence basis.
b. Endorsements Each general liability and automobile liability insurance policy shall
be with insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the
following specific language:
i The City, its elected or appointed officers, officials, employees, agents and
volunteers are to be covered as additional insureds with respect to liability arising out
of work performed by or on behalf of the Consultant, including materials, parts or
equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects the City, its
elected or appointed officers, officials, employees, agents and volunteers. Any
insurance maintained by the City, including any self - insured retention the City may
have, shall be considered excess insurance only and shall not contribute with it.
iii. This insurance shall act for each insured and additional insured as though a
separate policy had been written for each, except with respect to the limits of liability
of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its elected or
appointed officers, officials, employees or agents.
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V. The insurance provided by this Policy canceled except after thirty (30) days
written notice has been received by the City and 10 -day notice for nonpayment of the
premiurn.
C. Deductibles and Self- Insured Retentions Any deductibles or self - insured retentions
must be declared to and approved by the City. At the City's option, Consultant shall demonstrate
financial capability for payment of such deductibles or self - insured retentions.
d. Certificates of Insurance Consultant shall provide certificates of insurance with
original endorsements to City as evidence of the insurance coverage required herein. Certificates of
such insurance shall be filed with the City on or before commencement of performance of this
Agreement. Current certification of insurance shall be kept on file with the City at all times during
the term of this Agreement.
16. Notices Any notice required to be given under this Agreement shall be in writing and either
served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other
party at the address set forth below. Notice shall be deemed communicated within 48 hours from the
time of mailing if mailed as provided in this section.
If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
If to Consultant: Francisco & Associates, Inc.
Joseph A. Francisco, P.E.
Principal
5650 El Camino Real, Suite 205
Carlsbad, CA 92008
17. Entire Agreement This Agreement constitutes the complete and exclusive statement of
Agreement between the City and Consultant. All prior written and oral communications, including
correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement.
18. Amendments This Agreement may be modified or amended only by a written document
executed by both Consultant and City and approved as to form by the City Attorney.
19. Assigmnent and Subcontracting The parties recognize that a substantial inducement to City
for entering into this Agreement is the professional reputation, experience and competence of
Consultant and the subcontractors listed in Exhibit D. Consultant shall be fully responsible to City
for all acts or omissions of any subcontractors. Assignments of any or all rights, duties or obligations
of the Consultant under this Agreement will be permitted only with the express consent of the Cite.
Consultant shall not subcontract any portion of the work to be performed under this Agreement
except as provided in Exhibit D without the written authorization of the City. If City consents to
such subcontract, Consultant shall be fully responsible to City for all acts or omissions of those
subcontractors. Nothing in this Agreement shall create any contractual relationship between City and
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any subcontractor nor shall it create any obligation on the part of the City to pay or to see to the
payment of any monies due to any such subcontractor other than as otherwise is required by law.
20. Waiver Waiver of a breach or default under this Agreement shall not constitute a continuing
waiver of a subsequent breach of the same or any other provision under this Agreement.
21. Severability If any term or portion of this Agreement is held to be invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
22. Controlling Law Venue This Agreement and all matters relating to it shall be governed by
the laws of the State of California and any action brought relating to this Agreement shall be held
exclusively in a state court in the County of Riverside.
23. Litigation Expenses and Attorneys' Fees If either party to this Agreement commences any
legal action against the other party arising out of this Agreement, the prevailing party shall be
entitled to recover its reasonable litigation expenses, including court costs, expert witness fees,
discovery expenses, and attorneys' fees.
24. Mediation The parties agree to make a good faith attempt to resolve any disputes arising out
of this Agreement through mediation prior to commencing litigation. The parties shall mutually
agree upon the mediator and share the costs of mediation equally. If the parties are unable to agree
upon a mediator, the dispute shall be submitted to JAMS /ENDISPUTE ( "JAMS ") or its successor in
interest. JAMS shall provide the parties with the names of five qualified mediators. Each party shall
have the option to strike two of the five mediators selected by JAMS and thereafter the mediator
remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may
commence litigation.
25. Execution This Agreement may be executed in several counterparts, each of which shall
constitute one and the same instrument and shall become binding upon the parties when at least one
copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not
be necessary to produce or account for more than one such counterpart.
26. Authority to Enter Agreement Consultant has all requisite power and authority to conduct its
business and to execute, deliver, and perform the Agreement. Each party warrants that the
individuals who have signed this Agreement have the legal power, right, and authority to make this
Agreement and to bind each respective party.
27. Prohibited Interests Consultant maintains and warrants that it has not employed nor retained
any company or person, other than a bona fide employee working solely for Consultant, to solicit or
secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any
company or person, other than a bona fide employee working solely for Consultant, any fee,
commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting 5
the award or making of this Agreement. For breach or violation of this warranty, City shall have the
right to rescind this Agreement without liability. For the tern of this Agreement, no member, officer
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or employee of City, during the term of his or her service with City, shall have any direct interest in
this Agreement, or obtain any present or anticipated material benefit arising therefrom.
28. Equal Opportunity Employment Consultant represents that it is an equal opportunity
employer and it shall not discriminate against any subcontractor, employee or applicant for
employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such
non - discrimination shall include, but not be limited to, all activities related to initial employment,
upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise
program, Affirmative Action Plan or other related programs or guidelines currently in effect or
hereinafter enacted.
IN WITNESS WHEREOF the parties have caused this Agreement to be executed on the date
first written above.
CITY OF LAKE ELSINORE:
CONSULTANT:
Joseph A. Francisco, P.E., President
ATTEST:
City Cleric
APPROVED AS TO FORM:
City Attorney
Attachments: Exhibit A - Scope of Services
Exhibit B - Fee Schedule
Exhibit C - Certificate of Exemption from Workers Compensation Insurance
Exhibit D - List of Subcontractors
Agenda Item No. 10
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EXHIBIT A
SCOPE OF SERVICES
I. ANNUAL ADMINISTRATION
COMMUNITY FACILITIES DISTRICTS
CFD ANNUAL SPECIAL TAX ROLL UPDATE
Research and Data Gathering
Task 1. Update all Assessor Parcel listings to reflect the County Assessor's Roll as defined by
the Rate and Method of Apportionment.
Task 2. Identify and secure from the County, Developers and Builders the data required to
develop and update working files for the current year. This includes:
a. Identify and secure copies of all Final Tract maps for residential development
within CFD.
b. Identify and secure copies of all building permits for residential and non-
residential development within the CFD.
Task 3. Update the CFD database with data procured in Task 2.
Task 4 Determine the amount of funds required, current fund balances, allocation for
delinquencies, and administrative charges required for special tax computations,
Task 5. Apportion special taxes as defined by the Rate and Method of Apportionment.
Task 6. Prepare draft agenda report and resolutions for the City Council meeting to approve
the Annual Special Tax levy, for review by City staff.
Task 7. Support City staff during council meeting for approval and setting of the Annual
Special Tax.
Prepare and Submit CD
Task 8. Compile and transmit a complete list of the identified special tax levies for each
assessor parcel within the CFD to the County Auditor - Controller, via compact disc or
other County approved media, prior to County deadline.
Task 9. Following acceptance of the data and confirmation of parcels by County, prepare and
submit any parcel corrections, computation for special tax, or updates of the Annual
Special Tax Roll, requested by the County.
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GENERAL YEAR -ROUND ADMINISTRATION
Property Owner Inquiries
Task 10. Assist in responding to inquiries from property owners regarding special tax levies
and other CFD matters on an ongoing basis during the year as required. Report
periodically to the City about the source, frequency and nature of inquiries received.
Delinquency Report
Task 11. In coordination with the Auditor - Controller, check for and prepare a report of
delinquencies in payment of special taxes for each CFD. Identify and prepare
delinquency report upon receipt of "Paid /Unpaid Reports" from the County and /or
City, typically in February and May of each year.
CFD Year End Reports
Task 12. After completion and acceptance of Annual Special Tax Roll, prepare a year -end
report consisting of data drawn from areas defined in the Rate and Method of
Apportionment. Standard areas covered are presented below:
a. Development Status Number of residential properties and square footage of
commercial and industrial properties developed, current assessed valuation of
developed and undeveloped properties, and number of sales and prices of
properties sold in the prior year.
b. Capital Proiects Status A progress report on construction activity (status of
individual projects included in the Notice of Special Tax) and Fund balances on
CFD construction accounts.
a CFD Financial Status Reserve Fund balance, Capitalized Interest Fund balance,
tax delinquency rates, foreclosure actions initiated by the CFD to remedy special
tax delinquencies, number of actions and dollar amount of delinquencies,
outstanding principal and interest amounts, and debt authorization levels.
Task 13. Prepare draft agenda report for the City Council meeting to receive and file the CFD
Year End Reports, for review by City staff.
Task 14. Support City staff during council meeting.
ADDITIONAL SERVICES
Services additional to those described in this Scope of Services will be provided upon written
authorization on a time and materials basis, in accordance with the Schedule of Hourly Rates current
at the time of providing the services or on a lump sum fee basis, as negotiated. Additional Services
may include any other services desired and authorized by the City, including additional formations
and /or administration of new CFDs.
RESPONSIBILITIES OF THE CITY
• Provide necessary maps, documents, and find amounts required to establish special tax.
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• Set and schedule meetings, transmit data and review documents in a timely manner to facilitate
progress.
• Provide envelopes and postage to mail delinquency notices.
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EXHIBIT A (continued)
SCOPE OF SERVICES
II. ANNUAL ADMINISTRATION
LANDSCAPE AND STREET LIGHTING DISTRICTS
PREPARE DISTRICT ENGINEER'S REPORTS
The services for this phase include the tasks required for preparing the Engineer's Report for the
district pursuant to the Landscaping and Lighting Act of 1972. All tasks will be performed annually
for each year covered by this Agreement.
Task 1. Meet with City staff to discuss methods to be used to update assessment rolls,
exchange pertinent information, review methodology for determining benefit zone
assessments and finalize project scheduling.
Task 2. Prepare a Preliminary Engineer's Report in which annual assessment rates for each
special benefit zone will be established. The assessment rates will be based on
projected landscape maintenance and street lighting costs, to be provided by the City.
Task 3. Update assessment district diagrams and exhibits to reflect minor changes to benefit
zone boundaries due to land development activity. Preliminary revision of the
database and related computer work will be completed at this time.
Task 4. Submit the Preliminary Engineer's Report with updated diagrams along with the
preliminary assessment rolls to the City for review and comment. Revisions will be
made and the report finalized for approval by the City Council.
Task 5 Prepare draft agenda report and resolutions for the City Council meeting to approve
the Annual Assessment levy, for review by City staff.
Task 6. Attend City Council meeting involving approval of the Engineer's Report and the
adoption of a resolution of intention to levy and collect assessments.
PREPARE ANNUAL ASSESSMENT ROLL
Following adoption by the City Council of the assessment rate per benefit unit to be levied upon
parcels within each special benefit zone in the Landscape and Street Lighting Districts, Francisco &
Associates will prepare the amoral assessment roll for submission to the County Auditor - Controller.
Task 7. Prepare an Assessment Roll in CD form as required by the County Auditor - Controller.
Task 8. Submit the roll to the responsible officials for inclusion in the ensuing year's tax roll,
and make such adjustments and corrections as required by the Auditor - Controller.
Task 9. After acceptance of the Assessment Roll for inclusion on the ensuing year's tax roll,
provide the City with a copy of the final Engineer's Report with updated assessment
diagrams and final assessment rolls.
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DISTRICT ADMINISTRATION SERVICES
Francisco & Associates will assist the City of Lake Elsinore in the administration of the Landscape
and Street Lighting Districts throughout the course of the year.
Task 10. Assist the City in answering inquiries from property owners and preparing reports
regarding their assessments.
ADDITIONAL SERVICES
Francisco & Associates will provide Additional Services upon written authorization on a time and
materials basis, in accordance with the rate schedule current at the time of providing services, or on a
lump sum fee basis, as negotiated. Additional Services may include:
• Financial studies;
• Formation of and administration of new assessment districts or related districts;
• Attend additional meetings other than those listed under the Scope of Services;
• Prepare mailed notices or ballots to property owners; and
• Any other services desired and authorized by the City of Lake Elsinore related to assessment or
tax districts.
RESPONSIBILITIES OF THE CITY
• Designate a responsible official to manage and coordinate the project;
• Make available records and documentation required in conjunction with the preparation of this
report;
• Provide proposed budgets for landscaping and park maintenance costs and for street lighting by
zone for each year;
• Provide all legal notices;
• Retain qualified legal counsel to provide legal advice during the district process;
• Schedule, administer, and accomplish the publishing of notices of the hearing in accordance with
government code sections (i.e. newspapers, posting, etc.);
• Schedule and agendize City Council Meetings and Hearings as required under the Act;
• Provide envelopes and postage for any and all mailings; and
• Respond to written communications in writing, and review draft reports and submittals in a
timely manner.
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EXHIBIT A (continued)
SCOPE OF SERVICES
III. FORMATION OF A MELLO -ROOS
COMMUNITY FACILITIES DISTRICT
DISTRICT FORMATION
Task 1. Gather support data, cost estimates for entire project, current appraisal report, absorption
schedule for building development based on building permit issuance, and an annualized
schedule for public works of construction.
Task 2. Coordinate with City staff, bond counsel, underwriter, financial consultant, property
owner, design engineer and appraisal engineer, as needed for this project.
Task 3. Review construction estimates of direct and indirect costs. Review the special tax
allocation methodology and formulae to be applied.
Task 4. Review estimates of annual direct and indirect costs for the improvements to be operated
and maintained. Review the maximum annual cost for the improvements, and the special
tax allocation methodology and formulae to be applied.
Task 5. Prepare boundary map, with proper certifications for a Community Facilities District, and
confirm delivery of specified quantities of mylars and bond copies of the boundary map.
Task 6. Prepare the boundary description for the District boundary and any improvement areas, if
necessary.
Task 7. Provide a description of improvements to be constructed through public financing under
the proposed District and a description of improvements to be operated and maintained.
Task 8. Prepare draft agenda report for the City Council meeting for Resolution of Intention
(ROI) to form a Community Facilities District, for review by City staff.
Task 9. Attend City Council meeting for the ROI to form a Community Facilities District.
Task 10. Upon completion of City Clerk's signature on the boundary map, transmit boundary map
to the Riverside County Recorder for recordation. Recordation will occur within 15 days
after the adoption of the Resolution of Intention.
Task 11. Prepare CFD Report to reflect final public works of construction facilities, their costs,
incidental expenses and projected financing costs as supplied by others, and the facilities
to be operated and maintained, their costs and administrative expenses. Furnish specified
quantities of the final CFD Report as ordered by the City. In summary the report will
include as requested by the Act:
• A Description of the District
• A Description of Facilities
• Cost Estimates
• A list of Property Owners
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Task 12. Prepare draft agenda report for the City Council meeting for the public hearing, ftx
City staff review.
Task 13. Attend public hearing for Resolution of Formation and election.
Task 14. Upon receipt of the Notice of Special Tax from the City's Bond Counsel, coordinate
getting the City Clerk's signature with notary and transmit Notice of Special Tax to the
Riverside County Recorder's office for recordation.
BOND ISSUANCE
Task 15. Prepare tables required by City and City's Financial Advisor for the preliminary official
statement for the bonds.
Task 16. Review the preliminary official statement for consistency with the Rate and Method of
Apportionment of Special Taxes and the CFD Report,
Task 17. Provide the required Certificate of the Special Tax Consultant.
ACQUISITION AUDIT
The acquisition audit will be conducted in accordance with the provisions of the Acquisition Agreement
between the City and the Developer.
Task 18. Collect copies of contracts, agreements, change orders, invoices, and canceled checl<s
from developer, bound per vendor.
Task 19. Review developer provided data for reimbursement eligibility and confirmed cost
amounts.
Task 20. Submit a summary report identifying reimbursement eligibility and confirmed cost
amounts to the City.
Task 21. Meet with the developer on a monthly basis to review construction progress and change
orders.
RESPONSIBILITIES OF THE CITY
• City to designate a responsible official to manage and coordinate the project.
• City shall make available to Francisco all available data, information, reports, maps, plans,
specifications, cost estimates and other reasonable information for the proper performance for
Francisco' services.
• City shall provide (by developer) cost estimates and electronic map files in AutoCAD format of
the development plan and proposed improvements.
• City shall prepare (by bond counsel) all notices pertaining to the public hearings and post all
notices pertaining to the public hearings.
• City shall cause to be published all notices of public hearings or other meetings (i.c., newspaper
and posting).
• City (by bond counsel) shall prepare all resolutions required by City Council.
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• All environmental documentation will be provided by others.
• City shall retain a qualified real estate appraiser to provide appraised values of the property
included in the formation and annexation process, as required.
• City shall schedule and agendize City meetings and hearings as required under the Act.
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EXHIBIT A (continued)
SCOPE OF SERVICES
IV. ANNEXATION OF TERRITORY INTO
AN EXISTING SERVICES CFD
RATE AND METHOD OF TAXATION
Task 1. Coordinate with Project Team (City staff, special counsel, and property owners) as
needed for this project.
Task 2. Prepare boundary map, with proper certifications for a Community Facilities District, and
confirm delivery of specified quantities of mylars and bond copies of the boundary map
to the County Recorder's Office for recordation after the Resolution of Intention.
Task 3. Review the legal description for the District boundary.
Task 4. Provide a description of improvements to be operated and maintained.
Task 5. Prepare all resolutions required by City Council.
Task 6. Prepare all staff reports required by City Council.
Task 7. Attend City Council meeting for Resolution of Intention (ROI) to annex ten itory into an
existing Community Facilities District.
Task 8. Prepare CFD Report to reflect facilities to be operated and maintained, their costs and
administrative expenses. Furnish specified quantities of the final CFD Report as of
by the City. In summary the report will include as requested by the Act:
• A Description of the District
• A Description of Facilities
• Cost Estimates
• A list of Property Owners
Task 9. Attend public hearing for Resolution of Formation and election.
Task 10. Assist with the preparation and recording of the Notice of Special Tax.
RESPONSIBILITIES OF THE CITY
• City to designate a responsible official to manage and coordinate the project.
• City shall make available to Francisco all available data, information, reports, maps, plans,
specifications, cost estimates and other reasonable infonnation for the proper performance for
Francisco' services.
• City shall provide (by developer) cost estimates, a legal description of the proposed boundary. and
electronic map files in AutoCAD format of the development plan and proposed improvements.
• City shall prepare and post all notices pertaining to the public hearings.
• City shall cause to be published all notices of public hearings or other meetings (i.e., newspaper and
posting).
• All environmental documentation required, if any, shall be provided by others.
• City shall schedule and agendize City meetings and hearings as required under the Act.
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EXHIBIT A (continued)
SCOPE OF SERVICES
V. ANNEXATION OF TERRITORY INTO
LANDSCAPE AND STREET LIGHTING DISTRICT NO. 1
ENGINEER'S REPORT
Task 1. Discuss with City staff the locations of improvements proposed to be maintained, the
different levels of maintenance, if any, strategies for approaching the benefit analysis
and cost apportionment, budget requirements for future maintenance, time frames,
noticing and balloting issues, and other considerations.
Task 2. Gather support data, cost estimates for the operation, maintenance and services to be
included, the proposed development plan including the number and type of
residential properties, and other pertinent information.
Task 3. Develop the property owner database from the current County Assessor's Roll.
Identify all public property and ascertain whether benefit from the improvements is
received. This includes City, school, County, State, and Federal properties and
facilities, as well as flood control and other special district properties. Identify all
parcels within the area of special benefit.
Task 4. Analyze the locations of the improvements proposed to be maintained to determine
the specially benefiting parcels and the method of apportioning costs.
Task 5. Prepare a draft Engineer's Report based on the requirements of the Landscaping and
Lighting Act of 1972 and Article XIIID of the California State Constitution (the
Report will be prepared by a Registered Professional Engineer). Prepare an
Assessment Diagram. Submit up to five (5) copies of the draft Report. Review with
City staff and discuss comments.
Task 6. Finalize the Engineer's Report based on comments received from City staff and the
property owner and submit up to twenty (20) copies for processing and filing.
DISTRICT FORMATION
Task 7. Prepare all resolutions required by City Council.
Task 8. Prepare all staff reports required by City Council.
Task 9. Attend one (1) City Council meeting involving approval of the Engineer's Report and
adoption of a Resolution of Intention to annex property into the District.
Task 10. Prepare the required Notice and Ballot for mailing to the property owner in the
District, based on the text provided by legal counsel. The notice will be mailed, in a
City provided envelope.
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Task 11. Attend one (1) Public Hearing to present the Engineer's Report, provide technical
support, answer questions and tabulate the ballots. If required, revisions will be made
to the Engineer's Report after the public hearing, as directed by the City Council.
(Revisions at this time are limited to reducing assessments, unless another balloting is
requested.)
RESPONSIBILITIES OF THE CITY
• Designate a responsible official to manage and coordinate the project.
• Make available to Francisco all available data, information, reports, maps, plans, specifications,
cost estimates and other reasonable information for the proper performance for Francisco'
services.
• Provide (or have developer provide) cost estimates, a legal description of the proposed boundary,
and maps of the development plan and proposed improvements, electronically if available.
• Prepare all notices of public hearings or other meetings to be published by City Clerk, and
schedule and agendize City meetings and hearings as required by law.
• Provide qualified legal counsel to draft legal notices, review resolutions, etc., and to provide legal
advice to City staff and to the Assessment Engineer as required.
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EXHIBIT A (continued)
SCOPE OF SERVICES
VI. ADDITIONAL SERVICES
FORECLOSURE ADMINISTRATION
Task 1. Francisco will assist the City's foreclosure counsel in preparing a final delinquency
list for the initial preliminary foreclosure notice, prepared by the forecloswc counsel.
Francisco will verify the delinquency list with the County of Riverside Tax Collector
and the City of Lake Elsinore, to make sure that payments received have been posted
to the properties. Francisco will support the foreclosure counsel during the
foreclosure process.
DEVELOPMENT REVIEW FOR CONDITIONS OF APPROVAL
Task 2. Francisco will review the planning department's Request For Review based on
applications received for new developments and will prepare draft Conditions of
Approval for the Department of Administrative Services. Conditions will be
prepared in a Microsoft Word format and transmitted directly to the City's planner
assigned to each application. The City will transmit copies of the Request for Review
and planning applications to Francisco in a timely manner. Francisco will return the
comments back by the City's deadline. Francisco will track the CRS number for each
Request and provide a listing for each development reviewed in the prior month,
which will be attached to our monthly invoice.
CITY COUNCIL RESOLUTIONS & AGENDA REPORTS
In addition to the tasks listed above, Francisco will prepare, or assist in the preparation of,
resolutions and City Council agenda reports pertaining to the districts that Francisco currently
administers, as well as for any future district formations and annexations that Francisco will
oversee. These tasks will be included in the separate task assignments for each district or
annexation.
Services additional to those described in this Scope of Services will be provided upon written
authorization on a time and materials basis, in accordance with the Schedule of Hourly Rates current
at the time of providing the services or on a lump sum fee basis, as negotiated. Additional Services
may include any other services desired and authorized by the City, including additional formations
and /or administration of new CFDs.
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EXHIBIT B
FEE FOR SERVICES
I. ANNUAL ADMINISTRATION OF CFDs
The following is Francisco & Associates' annual lump sum fixed fee for the administration of the
City's Community Facilities Districts, by district:
For the City's CFDs formed prior to 2000, Francisco will maintain the fees currently charged. These
are:
District
Assessed
Parcels
Fee
CFD No.
88 -3 (West Lake Elsinore)
$13,500
CFD No.
90 -2 (Tuscany Hills)
$13,500
CFD No.
98 -1 (Summerhill)
$7,000
CFD No.
95 -1 (Civic Center)
$5,000
Villages at Wasson Canyon CFD 2005 -5
191
$39,000
For all CFDs formed after 2002, Francisco' administration fee will be $16 per parcel within the CFD,
with a minimum fee of $5,000. Based on this, the following would be the maximum estimated fees
for the current CFDs formed after 2002, based on the expected build -out parcel estimates:
District
Assessed
Parcels
Maximum
Fee
Canyon Hills CFD 2003 -2
3,208
$51,328
Rosetta Canyon CFD 2004 -3
1,072
$17,152
Serenity CFD 2005 -1
233
$5,000
Alberhill Ranch CFD 2005 -2
1,288
$20,608
Villages at Wasson Canyon CFD 2005 -5
191
$5,000
City Center CFD 2005 -6
144
$5,000
Summerly CFD 2006 -1
1,484
$23,744
Viscaya CFD 2006 -2
168
$5,000
La Strada CFD 2006 -3
128
$5,000
Tract 30698 & 32129 CFD 2006 -4
184
$5,000
Tessera CFD 2006 -6
90
$5,000
Ruining Deer Estates CFD 2006 -8
100
$5,000
Trieste CFD 2006 -9
121
$5,000
Riverlake Villas CFD 2006 -10
51
$5,000
Makenna Court CFD No. 2007 -4
80
$5,000
Red Kite CFD No. 2007 -5
48
$5,000
$172,832
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For the City's services CFDs, the fee will be based on $1.50 per parcel with a minimum fee of
$5,000, as follows:
District
Police, I
Assessed
Parcels
3,217
S5,000
Parks, Open Space, Storm Drain 541 $5,000
$10,000
II. ANNUAL ADMINISTRATION LANDSCAPE AND STREET LIGHTING DISTRICTS
The following are Francisco & Associates' maximum annual lump sum fixed fees for the
administration of the City's Landscape and Street Lighting Districts, by district:
Citywide Landscape and Street Lighting District - Francisco will maintain the fee charged since
1998, at $27,000.
Landscape and Street Lighting District No. 1 — The fee for this district will be based on the number
of parcels within the district, charged at $3 per parcel.
Assessed
District Parcels
Fee
Citywide LLMD 22,858
$27,000
LLMD No. 1 2,690
$8,070
$35,070
III. FORMATION OF A MELLO -ROOS COMMUNITY FACILITIES DISTRICT
The following are Francisco & Associates' fees for the formation of a new community facilities
district:
District Formation / Bond Issuance
Proposed CFD — 500 units or less
$15,000 lump sum
Proposed CFD greater than 500 units $25,000 lump sum
Acquisition Audit Services Time & Materials based on Hourly Rate Schedule
IV. ANNEXATION OF TERRITORY INTO AN EXISTING SERVICES CFD
District Formation
$4,200 lump sum
V. ANNEXATION OF TERRITORY INTO LANDSCAPE AND STREET LIGHTING
DISTRICT NO. 1
District Formation
VI. ADDITIONAL SERVICES
Foreclosure Administration
Development Review
Other Additional Services
$4,700 lump sum
Time & Materials based on Hourly Rate Schedule
$25 for each Review
As negotiated
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EXHIBIT "C"
CERTIFICATE OF EXEMPTION FROM WORKERS COMPENSATION INSURANCE
I hereby certify that in the performance of the work for which this Agreement is entered
into, I shall not employ any person in any manner so as to become subject to the Workers'
Compensation Laws of the State of California
Executed on this day of , 20 at
California.
Consultant
Agenda Item No. 10
Page 25 of 26
EXHIBIT "D"
LIST OF SUBCONTRACTORS
No sub- contractors at the time of contract execution. Sub- contractors may be added with the
prior written consent of the City.
Agenda Item No. 10
Page 26 of 26
CITY OF A
LAKE oLSIIYOI�E
- ` DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: FEBRUARY 24, 2009
SUBJECT: RECEIVE AND FILE THE ANNUAL SPECIAL TAX LEVY REPORT FOR
THE CITY'S COMMUNITY FACILITIES DISTRICTS FOR FY 2008 -09
Background
The Mello -Roos Community Facilities Act of 1982 requires that an annual special tax
levy report be prepared for each Community Facilities District (CFD). This report must
detail the special taxes that are levied within a CFD and any construction activity at the
time the report is prepared.
Discussion
An Annual Special Tax Levy Report for FY 2008 -09 has been prepared for the following
CFDs:
CFD No. 88 -3 (West Lake Elsinore Public Improvements)
CFD No. 90 -2 (Tuscany Hills Public Improvements)
CFD No. 95 -1 (Lake Elsinore City Center Public Improvements)
CFD No. 98 -1 (Summerhill Public Improvements)
CFD No. 2003-11 CFD No. 2007 -1 (Law Enforcement, Fire and Paramedic Services)
CFD No.
2003 -2 (Canyon Hills)
CFD No.
2004 -3 (Rosetta Canyon)
CFD No.
2005 -1 (Serenity)
CFD No.
2005 -2 (Alberhill Ranch)
CFD No.
2005 -4 (Lakeview Villas)
CFD No.
2005 -5 (Wasson Canyon)
CFD No.
2005 -6 (City Center Townhomes)
CFD No.
2006 -1 (Summerly)
CFD No.
2006 -2 (Viscaya)
CFD No.
2006 -3 (La Strada)
Agenda Item No. 11
Page 1 of 2
CFD Annual Special Tax Levy Report, FY 2008 -09
February 24, 2009
Page 2
CFD No. 2006 -4 (Tracts 30698 & 32129)
CFD No. 2006 -5 (Parks, Open Space and Storm Drain Maintenance
CFD No. 2006 -6 (Tessera)
CFD No. 2006 -8 (Running Deer Estates)
CFD No. 2006 -9 (Trieste)
CFD No. 2006 -10 (Riverlake Villas)
CFD No. 2007 -4 (Makenna Court)
CFD No. 2007 -5 (Red Kite)
CFD No. 2007 -6 (Holiday Inn Express)
Fiscal Impact
Annual administrative expenses are funded through the annual special tax levy.
Repayment of the bonds and payment of services taxes are secured by the special
taxes levied on all property within each CFD, other than those properties that are
exempt as provided in the respective rate and method of apportionment.
Recommendations
It is recommended that City Council receive and file this report. The summary of
this report is included with this staff report. The detail reports (Volumes 1 and 2)
are available for review in the City Clerk's office.
Prepared by: James R. Rile
Acting Director dministrative Services
Approved by: Robert A. Brady
City Manager
Agenda Item No. 11
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