HomeMy WebLinkAboutAgr 2000-01-13 (NBS)Government Finance Group
LAND-BASED FINANCING CONSULTANTS
r~
July 26, 2000
Mr. Richard Stranzl
Finance Director
CITY OF TIBURON
1505 Tiburon Blvd.
Tiburon, CA 94920
Subject: Community Facility District Administration Services
Dear Mr. Stranzl:
The NBS Government Finance Group ("NBS") is pleased to provide the City of Tiburon with
Community Facility District Administrative Services. NBS maintains high level year round
service and provides the specific skills and expertise to attend to the administrative and financial
aspects of the districts. NBS provides, as part of our service, calculating the levy and placing it
on the Marin County Tax Roll. It is our understanding that the City has opted to place the levies
on the tax roll for the Fiscal Year 2000/01. Please provide a copy of the confirmed amounts
placed on each parcel so that we may more efficiently service the City.
If you have any questions regarding this matter, please feel free to call me at (800) 676-7516.
Sincerely,
Greg Davidson
Financial Manager
NBS Government Finance Group
41661 Enterprise Circle North, Suite 715, Temecula, CA 92590 909.296.1997 800.676.7516 Fax 909.296.1998
Temecula San Francisco
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
January 13, 2000
Mr. Richard Stranzi
Finance Director
CITY OF TIBURON
1505 Tiburon Blvd.
Tiburon, CA 94920
Subject: 1915 Act Assessment District Administration Services
The NBS Government Finance Group ("NBS") is pleased to submit this agreement to provide
professional Administrative Services to the City of Tiburon (the "City"). Our long-term
experience and expertise in assessment district administration, engineering, and special tax
consulting will ensure efficient, competent and timely services for the City. We look forward to
a successful professional relationship with the City of Tiburon. This agreement will become
effective February 1, 2000.
For your convenience, enclosed are two (2) copies of our Executed Agreement. Upon signing,
please keep one copy and return one copy to the undersigned.
1. SCOPE OF SERVICES
I A. 1915 Act Assessment District Administration
EXPERT RESOURCE. First and foremost, NBS will act as the City's "expert resource," and is
available to answer questions and advise the City on particular issues involving the Assessment
districts.
DATA COLLECTION. NBS will gather and review data relevant to the administration of the
districts. Data will be obtained from various sources, including City records, Assessor's parcel
maps, and County Assessor information.
PARCEL AUDIT. NBS will perform a parcel audit of all existing data for parcels in the
districts. The audit for will verify each parcel's original and remaining assessment. Based on
the audit results, a database will be established for the 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 City.
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 Agent fees, Arbitrage Rebate calculation fees, bank fees,
and expenses of the City and its consultants related to the administration of the districts.
Page I
41661 Enterprise Circle NoA, Suite 225, Temecula, CA 92590
Temecula
909.676.6225 800.676.7516 fox 909,676.7976
San Francisco
FUND ANALYSIS. NIBS 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 OF 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 City.
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 City 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 City or
property owners.
RELEASE OF LIENS. NBS will prepare all documents required to release the liens of parcels
that have prepaid the assessment or where the City has matured.
TOLL-FREE PHONE NUMBER. NBS will provide a toll-free phone number for use by the
City, 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.
Page 2
tibumn_t915 1-00
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
` B. Community Facilities District Administration
EXPERT RESOURCE. First and foremost, NBS will act as the District's "expert resource," and
is available to answer questions and advise the District on particular issues involving the
Community Facilities Districts.
DATA COLLECTION. NBS will gather and review data pertinent to the administration of the
Community Facilities Districts. Data will be obtained from various sources such as assessor's
parcel maps, building permits and county assessor information as determined to be necessary
based on the requirements of the Rate and Method of Apportionment. NBS will maintain and
periodically update a database of all parcels within the district and relevant parcel information.
ADMINISTRATIVE COST RECOVERY NBS will identify all costs associated with the
administration of the Community Facilities District and recover those costs through the levy
process as outlined in §53317(e) and §53340 of the Government Code of the State of California.
Such costs may include, but are not be limited to: bank fees, legal fees, county tax collection
fees, and all costs and expenses of the public agency and its consultants related to district
administration.
CASH AND EQUIVALENTS ANALYSIS. NBS will determine the Cash and Equivalents
balance requirements, acquire the current Cash and Equivalents balances and make
recommendations to keep the flow of funds and fund balances in compliance with the bond
documents. Fund transfers might include the transfer of available surplus funds to be used as
levy credits or the transfer of reserve funds to the redemption fund upon the prepayment of
assessments. Cash flow analysis will be performed to determine any levy shortfall or surplus
collections.
1
SPECIAL TAX REQUIREMENT. NIBS will calculate the annual Special Tax Requirement.
This will include all necessary components as outlined in the Rate and Method of
Apportionment, such as principal and interest due, administrative expenses, collection for direct
financing of services or facilities, and a fund credit or replenishment as determined from analysis
of district funds.
LEVY CALCULATION. NBS will calculate the annual special tax levy for each parcel within
the District following the guidelines established in the Rate and Method of Apportionment.
MEETING ATTENDANCE. NBS will attend District related Council/Board meetings related to
district administration, as requested by the District.
LEVYSUBMITTAL. NBS will submit the levy to the County Auditor Controller in the required
magnetic tape format. Special Taxes rejected by the County Auditor Controller will be
researched and resubmitted for collection on the County Tax Roll. Any parcels that are not
submitted to the County for collection will be invoiced directly to the parcel owner, with
payment submitted to the public agency.
SPECIAL TAX LEVY REPORT. NBS will provide an annual Special Tax Levy Report. This
report will include a parcel listing with levy amounts and other parcel information, the details of
the annual Special Tax Requirement, current delinquency information, fund analysis,
administrative expenses to be recovered, status of the project and current issues affecting the
district.
Page 3
tiburon_1915 1-00
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
DELINQUENCY MONITORING. NBS will provide a comprehensive list of delinquencies
after each special tax installment becomes due. The delinquency report will provide district
overall delinquency percentage as well as a detailed list of each delinquent parcel, with the name
and address of the delinquent parcel owner, the delinquent amount and penalties.
PREPAYMENT CALCULATIONS. NBS will provide special tax prepayment calculations to
interested parties. The fee of any prepayment calculation shall be billed to the party requesting
the calculation.
RELEASE OF LIENS. NBS will prepare all documents required to release the liens of parcels
that have prepaid the special tax or where the district has matured.
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.
CDLQC REPORTING. NBS will perform all necessary reporting to the California Debt and
Investment Advisory Commission as required by §53359.5(b) and §53359.5(c) of the Government
Code of the State of California.
NOTICE OF SPECIAL TAX DISCLOSURE. NBS will provide Notice of Special Tax
Disclosure notices to requesting parties as required by- §53340.2 and §53341.5 of the
Government Code of the State of California. The fee of any Notice of Special Tax shall be billed
to the party requesting the disclosure form.
TOLL-FREE PHONE NUMBER. NBS will provide a toll-free phone number for use by the
District, other interested parties and all property owners. Our staff will be available to answer
questions regarding the formation of the district and ongoing collection of assessments.
2. OPTIONAL SERVICES
A. Delinquency Management
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 and procedures of the City. When deemed as the appropriate course of action,
NBS will perform the following:
DELINQUENCY REPORTS. NBS will provide the City 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 City'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.
Page 4
Iml tiburon_1915 1-00
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
DEMAND LETTER. At the City's direction, send a demand letter to the property owner of each
delinquent parcel for the April 1 Oth installment. This letter will be mailed to any property owner
who remains delinquent for both installments or who is delinquent for April 10th 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 parcels have been
removed from the tax roll. The letter delineates what amount must be paid directly to the City 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 City's discretion, NBS will offer payment plans to property owners
in lieu of turning parcels over to the City's foreclosure counsel.
SUBSEQUENT FORECLOSURE SERVICES. NBS will prepare and deliver all information
to the City's foreclosure counsel. We will also continue to supply the City's counsel with
additional information throughout the foreclosure process.. We will continue to respond to
property owner and City staff phone calls regarding the status of all cases, and will coordinate
and audit status reports on a bi--monthly basis from the City's foreclosure counsel.
TOLL-FREE PHONE NUMBER. NBS will provide a toll-free phone number for use by the
City, 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.
B. Apportionments
Parts 10 and 10.5 of the Streets and Highways Code detail the methodology and procedure that
the City must follow in apportioning the assessment lien on parcels that are reconfigured and/or
subdivided.
APPLICATION FORMS. NBS will provide apportionment application forms and instructions
to the District's Engineering representative for inclusion as a condition of approval for
subdivision within an assessment district.
NOTICE OF APPORTIONMENT. NBS will prepare a notice of apportionment and send it via
certified mail to the issuing underwriter, as required.
RECORDATION OF DIAGRAM. NBS will arrange to record the amended assessment diagram
prepared by the District and notice of apportionment with the County Recorder.
Page 5
dbumn_ 1915 1-00
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
C. 191 5 Act Bond Calls
BOND CALLS. NBS will prepare the spread of principal to be called within maturities for all
1915 Act bond calls and coordinate the call with the Paying Agent/Trustee.
ID. Secondary Disclosure
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. The
consultant/analyst who is responsible for the year-round administration of the Special Districts
will draft the report for these districts. The Project Director and the City then reviews the report
before being disseminated to the applicable Nationally Recognized Municipal Securities
Information Repository (NRMSIR). 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 City has agreed to provide in the
Disclosure Certificate.
DATA COLLECTION. NBS will collect the annual financial information and operating data
that the City 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.
SIGNIFICANT EVENTS. NBS will prepare and disseminate a "Notice of Significant Event" to
the appropriate SID and to either each NRMSIR or the Municipal Securities Rulemaking Board
(MSRB). Action will commence upon notification by the City of the occurrence of any of the
following events, if deemed by the City to be material:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
Principal and interest payment delinquencies
Non-payment related defaults
Unscheduled draws on debt service reserves reflecting financial difficulties
Unscheduled draws on credit enhancements reflecting financial difficulties
Substitution of credit or liquidity providers, or their failure to perform
Adverse tax opinions or events affecting the tax-exempt status of the security
Modifications to the rights of security holders
Bond calls
Defeasances
Release, substitution, or sale of property securing repayment of the securities
Rating changes
Any other Significant Event as defined by the Disclosure Certificate
Page 6
tiburon_1915 1-00
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
3. FEE STRUCTURE
191 5 Act Administration
_......_.4
rstrcta
-
. Parcels:.:,.
Via Capistrano
6
$500
Calbrian Drive
8
1,000
Linda Vista Undergrounding
6
500
Hillhaven Undergrounding
31
1,000
Gilmartin Drive Refunding
28
2,500
TOTAL
$5,500
* A minimum fee of $2,000 applies to 1915 Act contracts. Upon final maturity of Gilmartin
Drive Refunding, the fee for the remaining districts will be subject to an increase for the
annual fee of $1,000 per district.
A Revenue and Taxation Code 163 1
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.
C. Community Facilities District Administration I
CFD #1
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
$2,500
Page 7
tiburon 1901.00
OPTIONAL .FEES:
Delinquency Management
Reminder Letters
*
Demand Letters
..15 *
Foreclosure Letters ....................................................................................................30
Payment Plan Administration
150
Tax Roll Removal .....................................................................................................50
Subsequent Foreclosure Fees
..75
Fees are based on a per parcel basis
* This fee will be recovered on a per parcel basis as part of the next levy.
This fee includes filing of "Notice of Intent to Remove Delinquent Installment"
but does not include County fees for removal from the tax roll.
B. Apportionments
The following fees reflect the cost of providing apportionment tasks under Division 10 of the
California Streets and Highways Code Part 10.5, Alternative Procedure for Division of Land and
Bond (Voluntary Method) and as described in the Scope of Services. Apportionments processed
under Part 10, Division of Land and Bond (Public Hearing Method), will be subject in addition
to the fees quoted below, an hourly charge not to exceed $180. County recordation fees will be
expensed to the City at cost.
Apportionment Tasks Fee ..................................................................................$250
C. 1915 Act Bond Calls
Bond Calls (per district per call) ................................................................$250
D. Secondary Disclosure
Gilmartin Drive Refunding .....................................................................$1,200
~E. Addition of a New District and Corollary Services
Fees for new districts will be based on those fees for comparable existing districts or will fall
within the range for the existing districts.
Page 8
tiburon_t915 t-00
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
, 1
F. Annual Fee Increases
Cost of living increases may be applied to the services listed above. If applied, the COLA would
be the actual cost of living increase, or 3%, whichever is less.
4. CONTRACT PROVISIONS
A. Expenses
Customary out--of-pocket expenses will be billed to the City at actual cost to NBS. These
expenses may include, but not be limited to: travel, postage, telephone, reproduction and meals
plus various County charges for tapes, maps, and recording fees. Annual expenses will not
exceed $350.
B. Work Product
Upon payment for the work performed, or portion thereof, all drawings, specifications, records,
electronic computer mapping files, or other documents generated by NBS pursuant to this
agreement, or any other product of NBS rendering hereunder, are and shall remain the property
of the City whether the project for which they are made is executed or not. NBS shall be
permitted to retain copies, including reproducible copies, of drawings and specifications for
information or reference.
C. Insurance
For the protection of our clients, NBS is covered by the insurance policies described in the
following table. Workers' Compensation Insurance is maintained at the level required by state
law. At the request of the City, Certificates of Insurance will be provided prior to commencing
work on the project.
7
T e Uf Insurance
p .
7 Coverage Amount
Workers' Compensation
$1,000,000.00
General Liability
$23,0005000.00
Professional Liability
$1,000,000.00
Page 9
tiburon_t915 1-00
Government Finance Group
® LAND-BASED FINANCING CONSULTANTS
D. Terms
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. 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.
The City or NBS may cancel this agreement upon 30 days written notice. If the project is
abandoned, NBS will be paid a sum equal to the current hourly rate for the hours expended and
unpaid upon the project. This agreement is continuous in nature and shall remain in effect until
canceled or the district matures and all administrative work completed.
ACCEPTED BY
NBS Government Finance Group
Mike Rentner
Chief Operating Officer
City of Tiburon
Richard Stranzl
Finance Director
r /ev
Date
Government Finance Group
LAND-BASED FINANCING CONSULTANTS
I ~ PA
Date
Page 10
tibumn 19151-00