HomeMy WebLinkAboutAgr 2005-07-12 (NBS)
NIBls
Local Government Solutions
July 1, 2005
Ms. Heidi Sigall
Director of Admin. Services
Town of Tiburon
1505 Tiburon Slvd.
Tiburon, CA 94920
Subject:
Addendum to Original Agreement to Provide 1915 Act Administrative Services
Plus Complementary Services for the Del Mar Valley Utility Underground Assessment
District
Dear Ms. Sigall:
NBS would like to thank you for the opportunity to provide additional Assessment District
Administration services to the Town of Tiburon ("Town") for the Del Mar Valley Utility Underground
Assessment District. We will add these services to our existing agreement with the Town. All other
provisions of the existing contract between the Town and NBS remain in effect. We look forward to
continuing our professional relationship.
Please find enclosed two (2) copies of our Executed Agreement. Upon signing, please return one copy to
the undersigned and keep one copy for your records.
Scope of Services
11915 Act Assessment District Administration Services 1
Expert Resource. First and foremost, NBS will act as the Town's "expert resource," and is available to
answer questions and advise the Town on particular issues involving the Assessment Districts.
Kick-Off Meeting, Project Schedule. NBS will meet with Town staff, legal counsel and other interested
parties to:
. Establish lines of communication.
. Clarify the specific project goals and criteria that will meet the Town's preference.
. Identify and resolve any special circumstances that may be involved in the administration of
the districts.
. Develop project schedules to meet legal requirements and provide for effective interaction of all
involved parties.
. Establish meeting dates consistent with schedule to achieve project milestones.
Data Collection. NBS will gather and review data relevant to the administration of the districts. Data will
be obtained from various sources, including Town records, Assessor's parcel maps, and County Assessor
information and establish a database for the assessment districts.
Policy Review. NBS will review polices and procedures that have been established by the Agency for
compliance with the governing documents and law. These policies will be incorporated into our service to
the Town.
Cost Recovery. NBS will identify all costs associated with the administration of the Assessment Districts
and recover those costs through the levy process as outlined in ~8682 and ~8682.1 of the California
Streets and Highways Code. These costs may include, but not be limited to Registrar/Transfer/Paying
41661 Enterprise Circle North, Suite 225 I Temecula, CA 92590 I Tel: 909.296.1997 I Toll-free: 800.676.7516 I Fax: 909.296.1998
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Agent fees, Arbitrage Rebate calculation fees, bank fees, and expenses of the Town and its consultants
related to the administration of the districts.
Fund Analysis. NBS will determine the balance requirements and acquire the current cash balances for
the districts. We will make recommendations to ensure that the flow of funds and fund balances are in
compliance with bond documents. Cash flow analysis will also be performed to determine any levy
shortfall or surplus.
Annual Assessment Levy. NBS will calculate the annual assessment levy for each parcel in each of the
districts and submit the amount for each parcel to the County in the format and medium (i.e. tape,
diskette) required by the County Auditor-Controller.
Resubmission or Rejects. NBS will research the status of any parcels rejected by the County Auditor-
Controller, and resubmit corrected data for collection on the County Tax Roll. Any parcels that are not
accepted by the County for collection will be invoiced directly, with payment directed to the Town.
Maintain Assessment District Data. NBS will annually track all parcel changes to ensure that all
changes are documented. Historical parcel change and assessment apportionment data will be
maintained by NBS.
Annual Report. NBS will provide a comprehensive Annual Report that will show a detail listing of the
amounts submitted to the levy or directly billed for collection, details of delinquent assessments, fund
analysis, paid off parcels and release of liens, all bond call activity, and assessed valuation information.
Delinquency Monitoring. NBS will provide the Town with a comprehensive list of delinquencies after
each installment becomes due. This report will show delinquency percentage as well as a detailed list of
each delinquent parcel.
Prepayment Calculation/Amortization Schedule. NBS will provide assessment prepayment
calculations and amortization schedules to interested parties. The requester will pay the cost of this
service; however, there will be no charge to the Town or property owners.
Bond Calls. NBS will prepare the spread of principal to be called within maturities for all bond calls and
coordinate the call with the Paying Agent/Trustee.
Release of Liens. NBS will prepare all documents required to release the liens of parcels that have
prepaid the assessment.
Notice of Special Assessment. NBS will provide a "Notice of Special Assessment" disclosure notice to
requesting parties as required by ~53754 of the Government Code of the State of California. The fee of
any Notice of Special Tax shall be paid by the party requesting the disclosure notice.
Toll-Free Phone Number. NBS will provide a toll-free phone number for use by the Town, other
interested parties and all property owners. Our staff will be available to answer questions regarding the
formation and ongoing collection of assessments for the districts. Bilingual staff is available for Spanish-
speaking property owners.
County Assessor Reporting. NBS will work with the County Assessor to aid in complying with the
requirements of Revenue & Taxation Code 163. This includes providing data such as parcel number,
original assessment and current principal balance to the County Assessor.
IDelinquency Managementl
NBS will develop a comprehensive delinquency management program which includes a discussion
and interpretation of the issuer's foreclosure covenant together with a review of the existing polices
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and procedures of the Town. This service can be provided as part of overall annual administration or
as a stand-alone service. When deemed as the appropriate course of action, NBS will perform the
following.
Delinquency Reports. NBS will provide the Town with an updated list of delinquencies prior to
sending any of the below letters. This report will also detail each district's percentage of
delinquencies, as well as a detailed list of each delinquent parcel.
Reminder Letter. At the Town's direction, send a reminder letter to the property owner of each
delinquent parcel for the December 10th installment. The purpose of the letter is to inform and
educate the property owner of their obligation to pay assessments.
Demand Letter. At the Town's direction, send a demand letter to the property owner of each
delinquent parcel for the April 10th installment. This letter will be mailed to any property owner who
remains delinquent for both installments or who is delinquent for April 1 Oth only. The purpose of this
letter is to further educate the property owner and advise them of a potential foreclosure.
Foreclosure Letter. This type of letter is typically sent after the installments for a parcel have been
removed from the tax roll. The letter delineates what amount must be paid directly to the Town to
forestall the turnover of documents to the foreclosure attorney.
Tax Roll Removal. NBS will provide the information required to remove parcels from the tax roll and
coordinate with the County Auditor Controller to verify the removal. This step is in preparation of
turning the parcels over for foreclosure. Once removed from the tax roll, each property owner will
receive one final foreclosure letter indicating the amount due and payment instructions.
Payment Plans. At the Town's discretion, NBS will offer payment plans to property owners in lieu of
turning parcels over to the Town's foreclosure counsel.
Subsequent Foreclosure Services. NBS will prepare and deliver all information to the Town's
foreclosure counsel. We will also continue to supply the Town's counsel with additional information
throughout the foreclosure process. We will continue to respond to property owner and Town staff
phone calls regarding the status of all cases, and will coordinate and audit status reports on a bi-
monthly basis from the Town's foreclosure counsel.
Toll-Free Phone Number. NBS will provide a toll-free phone number for use by the Town, other
interested parties and all property owners. Our staff will be available to answer questions regarding
the formation and ongoing collection of assessments/special taxes for the districts. Bilingual staff is
available for Spanish-speaking property owners.
IContinuing Disclosurel
In accordance with the Disclosure Certificate of the issue, NBS will assist in compliance with the
annual disclosure requirement of the SEC Continuing Disclosure Rule 15c2-12. Since the
establishment of the Rule, the Bond Disclosure Certificate has guided our efforts. We scrupulously
follow the requirements of the Disclosure Certificate to assure full compliance by the Town. Even
prior to Rule 15c2-12, our consultants had been providing many of the disclosure requirements to the
investment community. Specifically, NBS will perform the following:
Document Review. NBS will review pertinent documents of the issue, including the Official
Statement and Disclosure Certificate. We will identify material such as the Consolidated Annual
Financial Report and/or other operating data that the Town has agreed to provide in the Disclosure
Certificate.
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Data Collection. NBS will collect the annual financial information and operating data that the Town
has agreed to provide to each Nationally Recognized Municipal Securities Information Repository
(NRMSIR) and the appropriate State Information Depository (SID), if any.
Report Preparation. NBS will prepare the Annual Disclosure Report as required in the Disclosure
Certificate.
Annual Dissemination. NBS will disseminate the Annual Disclosure Report to state and national
repositories and post to our website to allow public access free of charge.
Significant Events. NBS will prepare and disseminate a "Notice of Significant Events", as listed on
the Continuing Disclosure Certificate, to the appropriate SID and to either each NRMSIR or the
Municipal Securities Rulemaking Board (MSRB). Action will commence upon notification by the
Town of the occurrence of any of the events, if deemed by the Town to be material. Typical
significant events may include:
1) Principal and interest payment delinquencies
2) Non-payment related defaults
3) Unscheduled draws on debt service reserves reflecting financial difficulties
4) Unscheduled draws on credit enhancements reflecting financial difficulties
5) Substitution of credit or liquidity providers, or their failure to perform
6) Adverse tax opinions or events affecting the tax-exempt status of the security
7) Modifications to the rights of security holders
8) Bond calls
9) Defeasances
10) Release, substitution, or sale of property securing repayment of the securities
11) Rating changes
IArbitrage Rebatel
To assist in compliance with the IRS Code and U.S. Treasury Regulations, NBS will provide the
following services, at the fees quoted, through the firm of Bond Logistix, LLC ("BLX"), formerly known
as Orrick, Herrington & Sutcliffe, LLP, the premiere firm for the provision of these services. The
following outlines the specific services provided relating to arbitrage rebate calculation and consulting
services.
Document Review. Pertinent documents of the issue will be reviewed including the Official
Statement, Trust Indenture, Tax Certificate, and IRS form 8038-G to determine whether the issue is
subject to the rebate requirement and identify what general and/or elective exceptions are available
to the issue.
Bond Yield. Sources and uses of all proceeds will be identified to determine how the rebate
requirement applies to each fund. Produce a debt service schedule for the issue and calculate
and/or verify the bond yield.
Excess Earnings Calculation. Trust statements and/or Agency accounting records will be utilized to
create a cash flow report for each fund. These reports will be used to identify all investment activity
and interest earnings attributable to the funds. Calculate the arbitrage earnings on investment of
funds subject to rebate and determine the issuer's net rebate and/or penalty liability.
Investment Yield Calculation. The investment yield will be calculated for each fund as a "reality
check" to reaffirm the accuracy of the cash flow report. This measure not only ensures the accuracy
of the report but also is a useful tool when analyzing investment opportunities.
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Summary. A report will be prepared that summarizes the rebate liability of the issue, identifies the
methodology employed, computational assumptions, conclusions, and any recommended changes in
record keeping and investment policies. Analyze all transactions and explore every legally
permissible avenue to minimize the rebate liability. Identify outstanding proceeds subject to the
rebate requirement, and identify the instruments and yields of the investment vehicles utilized by
each fund.
Filing Requirement. NBS will coordinate the preparation and filing of the IRS form 8038-T with the
payment as required.
Review. NBS will review the rebate report with Town staff and discuss the policies and procedures
as they relate to the rebate requirement to ensure compliance with treasury regulations. The review
will also be used to determine the necessity of any future calculations.
IApportionmentsl
Parts 10 and 10.5 of the Streets and Highways Code detail the methodology and procedure that the
Town must follow in apportioning the assessment lien on parcels that are reconfigured and/or
subdivided. With our experience in district formation and the development of methods of
assessment, we are able to ensure that apportionments are properly performed.
Assuming proceeding under the preferred procedure of Part 10.5, NBS will perform the following:
Application Forms. NBS will provide apportionment application forms and instructions to the Town's
Engineering representative for inclusion as a condition of approval for subdivision within an
assessment district.
Segregation. NBS will apportion the special assessment according to the method of spread as
described in the engineer's report.
Notice of Apportionment. NBS will prepare a notice of apportionment and send it via certified mail
to the issuing underwriter, as required.
Assessment Diagram. NBS will prepare an amended assessment diagram and notice. The
diagram and notice will be filed and recorded with the County Recorder.
Amortization Schedule. NBS will prepare an amortization schedule for each newly created
assessment type.
Apportionment Report. NBS will prepare and submit to the Town an Apportionment Report showing
the finalized apportionment and the amended assessment diagram.
In the event proceedings are undertaken under Part 10, the following additional items are required:
Resolutions. NBS will prepare the required resolutions to order the amended assessment, the
amended assessment diagram, notices to the property owner, and fix the amount of costs to perform
the apportionment.
Public Meetings. NBS will be available to attend any public meetings required to complete the
apportionment.
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Fees
11915 Act Assessment District Administration Servicesl
1915 Act Admin................................................. ........................................... $3,500 annual base fee
Prepayment Calculations (each)........... .............................................................................. $35
(Party requesting calculations shall pay)
Notice of Special Assessment (per notice)........................................................................... $1 0
(The fee of any Notice of Assessment shall be billed to the party requesting the disclosure form)
Revenue and Taxation Code 163
Annual Fee.................................................................................................................. no charge
This information is part of the database used to calculate the annual levy. We routinely send this
information to the Counties.
IDelinquency Managementl
Reminder Letters................................................................................................................. $10 *
Demand Letters..................................................................................................................... 15 *
Foreclosure Letters............................................................................................................... 30
Payment Plan Administration ................................... .... ............ ........................................... 150
Tax Roll Removal.................................................................................................................. 50 **
Subsequent Foreclosure Fees .......................... ....................... ......................... ....... ...... ....... 75 ***
All fees are based on a per parcel/per district basis
* This fee will be recovered as part of the next levy.
** This fee includes filing of "Notice of Intent to Remove Delinquent Installments"
but does not include County fees for removal from the tax roll.
*** This fee is per parcel/per districUper year from the initiation of the foreclosure.
IContinuing Disclosure Servicesl
Annual Report Fee
Annual Report (per report) ........................................................................................ $1,500
Significant Event Notification............................. .................................... hourly or $100 per event
Dissemination Services
Report Dissemination (per recipient).............................................................................. $25
Significant Event Dissemination (per recipient).............................................................. $25
Posting to CPO and NBS website................................................................................. No charge
IArbitrage Rebate Servicesl
Base Fees
Commitment Fee: ...................................................................................................................... $500
Report Fee (per annual report; includes Legal Opinion): ....................................................... $2,250
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Additional Service Fees
Computation Periods in Excess of 18 Months (per year): ......................................................... $500
Commingled Funds Analysis (as appropriate): ...........................................................................500
Transferred Proceeds Analysis (as appropriate):............................... ......................................... 750
Variable Rate Issues: .................................................................................................................. 500
IApportionmentsl
Apportionments will be performed upon request and paid for by the requesting party at our then current
fee structure, as shown below. NBS will apportion the assessment according to the original method of
spread, prepare the amended assessment diagram, and record the notice of apportionment and
amended diagram per Parts 10 and 10.5 of the Streets and Highways Code.
Part 10.5
Apportionment Fee (Four parcels or less):................................................................... $950
Apportionment Fee (Five or more parcels): .............................................................. $1,800
(plus $35 per parcel)
Recording Fee (each):.................................................................................................... $40
Part 10
Resolutions: ........................ ................................................... ....................................... $300
Meeting Attendance:...................................................................... hourly, plus travel costs.
· reasonable and customary travel costs, as needed
IExpensesl
Customary out-of-pocket expenses will be billed to the Town at actual cost to NBS. These
expenses may include, but not be limited to travel, postage, telephone, reproduction, meals and
various County charges for tapes, maps, and recording fees.
IAnnual Fee Increasesl
Cost of living increases may be applied to the services listed above on October 1 each year,
beginning with October 1, 2006. The COLA would be the actual cost of living increase, based on
the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all urban
consumers for the Northern California counties.
IAdditional Servicesl
Following is the current hourly rate. Additional services authorized by the Town will be billed at this
rate or the then-applicable hourly rate.
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Title Hourly Rate
- -- - -
Director $135
Engineer 125
Senior ConsultanUProgrammer 110
Consultant 85
Analyst 65
Clerical/Support 45
ITermsl
Administration services will be invoiced quarterly at the beginning of each quarter. Expenses will be
itemized and included in the next regular invoice. Fees for all other services will be invoiced upon
completion of the task. If the project is prematurely terminated by either party, NBS shall receive
payment for work completed. Payment shall be made within 30 days of submittal of an invoice. If
payment is not received within 90 days simple interest will begin to accrue at the rate of 1.5% per
month. Either party can cancel contracts with 30 days written notice.
Please feel free to contact me if you have any questions or need further information.
Best regards,
NBS Government Finance Group,
DBA NBS
Town of Tiburon
Mike Rentner
'/114J ~-
President and CEO
Title
7/1/05
Date
{~ ~fL
Title
1~~
Date
APPROVED AS TO FORr~l
~
ANN DANFORTH
TOWN ATTORNEY
T(yr~ff\! T18U .\1
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