HomeMy WebLinkAboutC-2920(C) - Agreement to Provide Improvement District Adminstration and Related Consulting Services (Regarding CIOSA)SIR
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June 20, 1995
THE Mr. Dennis C. Danner
GOVERNMENT Finance Director
FINANCE CITY OF NEWPORT BEACH
GROUP 3300 Newport Boulevard
Newport Beach, CA 92658-8915
RE: AGREEMENT TO PROVIDE IMPROVEMENT DISTRICT ADMINISTRATION
AND RELATED CONSULTING SERVICES
Dear Dennis:
The Government Finance Group (GFG) is pleased to submit this scope of services to the City
of Newport Beach (Agency) to provide annual administrative services for Newport Beach
Special Improvement District No. 95-1 (the "District").
SCOPE OF SERVICES
A. Annual Administration Sei-vices
1. GFG will setup and periodically update a comprehensive database of parcel and special
tax information on its internal special tax administration software. GFG will research and
track building permit issuance, building activity and parcel splits/renumbering within the
District.
CORPORATE
2. GFG will determine the annual aggregate special tax levy through the following steps:
a. GFG will identify the amount of principal and interest due in the next year and review
3200 BRISTOL
bond funds for interest earnings that may be available as a credit against the annual levy
SUITE soo
(applicable after construction of improvements is complete).
COSTA MESA
b. GFG will review administrative expenses to ensure cost recovery by Agency.
CALIFORNIA 92626
C. GFG will review delinquencies for the District to determine if a delinquency coverage or
any replenishment of the reserve fund should be included in the annual levy.
(7 14) 540-3200
(714) 540-3232 FAX
3. GFG will apportion the aggregate special tax to each taxable parcel within the District
according to the provisions of the Rate and Method of Apportionment.
NORTHERN CALIFORNIA
4. GFG will prepare an annual Special Tax Report, which is a comprehensive report
1777 BoTELHo DRIVE
provided to all GFG service clients. This report outlines district status and upcoming
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year's special tax levy.
WALNUT CREEK
CALIFORNIA 94596
5 • GFG will attend City Council meetings as requested to gain approval of the annual special
tax levy. GFG will assist in preparation of the annual resolution, if one is required.
(510)939-0477
(5 10) 939-5099 FAX
Mr. Dennis Danner
Improvement District Administration Agreement
page 2 of 6
6. GFG will convert tax roll data to magnetic tape and submit to the County Auditor -
Controller on or before the submission deadline. For any parcels rejected by the County
during processing, GFG will research and resubmit corrected special taxes. GFG will
prepare direct bills for any amount not collectible through the County tax rolls.
7. GFG will review monthly bond fund statements to verify that deposits, transfers and
expenditures are posted to the proper accounts per the requirements of bond documents.
Monthly fund summaries will be provided to the Agency upon request.
8. GFG will analyze funds twice a year for surplus monies that may be available or required
to call bonds. If a bond call is required GFG will determine the amounts to be called,
structure the bond call, generate a new debt service schedule and coordinate with the
fiscal agent to perform the bond call.
GFG will research payment information at least three times per year and prepare
delinquency reports for Agency staff. GFG will provide direction to the Agency
regarding the establishment or changes in policies for pursing delinquent special taxes
based on the current status of the District. If foreclosure efforts are required, GFG will
provide delinquency, penalty and fee information to Agency's legal counsel to ensure that
appropriate penalties and costs are recovered in the process.
10. GFG will prepare and mail delinquency reminder letters to property owners who are
delinquent in the payment of annual special taxes.
11. GFG will provide written prepayment calculations to property owners upon request. As
payoff monies are received GFG will track receipt, process the release of special tax lien,
and cease taxing the parcel in the future.
12. GFG will prepare the Notice of Special Tax on behalf of Agency upon request by
developers and real estate agents.
13. GFG will provide a toll-free number to field inquiries from property owners, Agency staff,
developers, realtors and other interested parties. GFG will provide written documentation
as authorized by the Agency.
14. GFG will schedule and attend meetings with Agency staff periodically to keep staff
informed of the status of the District and to address current issues.
15. GFG will prepare the annual status report required by the California Debt Advisory
Commission on behalf of Agency. If there is a draw on the Reserve Fund or if a debt
service payment is missed, GFG will prepare the required notice to CDAC.
Mr. Dennis Danner
Improvement District Administration Agreement
page 3 of 6
16. GFG will summarize changes to the law and inform Agency in writing of the effects to the
District and GFG's recommendations.
Optional Services
The following optional services are provided as a complement to GFG's Annual Services and will
be provided upon direction by Agency staff.
For delinquent properties not responding to the reminder letters, GFG will prepare and
mail demand letters informing property owners of the District's accelerated foreclosure
abilities. The format of the demand letter will be subject to approval by Agency staff and
counsel. GFG will include an option for direct payment of the delinquent special taxes
upon approval by Agency. If special taxes are paid directly, GFG will coordinate with
County to remove special taxes collected from the tax rolls.
2. For properties remaining delinquent after the demand letter, GFG will research and
identify if there is a lender on the property. If there is, GFG will remove the delinquent
special taxes form the tax rolls and send a notice of default informing the lender of the
delinquency and the ability of the agency to foreclose and collect associated legal and
administrative fees. Often lenders will demand the property owner to cure the
delinquency and/or pay the district and amortize the amount back into the loan amount.
As needed, GFG will attempt to negotiate repayment schedules for other delinquent
property owners that respond to the mailings. GFG will obtain approval from Agency
staff on all repayment schedules prior to finalization.
4. For properties remaining delinquent after the above steps, GFG will analyze to determine
impact on District repayment capabilities and reserve levels. In accordance with the
established delinquency policy, GFG will recommend that remaining delinquencies by
turned over to legal counsel for initiation of foreclosure proceedings.
GFG can provide arbitrage rebate calculations on an as -needed basis. The calculations
will be facilitated by the Financial Services Group of Orrick, Herrington and Sutcliffe and
will include the legal opinion of a nationally recognized law firm and leading rebate
analysis provider.
Mr. Dennis Danner
Improvement District Administration Agreement
page 4 of 6
CHARGES FOR SERVICES
The current number of parcels and districts shown below are covered under this Agreement. If
the actual number varies substantially it may cause a change in our fee structure.
A. Annual Administration Services ........................... $4,500 per year
(Fully recoverable through the annual administrative component)
The following fees are for the optional services described below which shall be provided at
the discretion of the Agency.
B. Optional Services
Prepayment Calculations (billed to requesting party) ......................... $50.00
Notice of Special Tax (billed to requesting party) .... I ....................... $10.00
Arbitrage Rebate Calculations (including legal opinion)
Engagement Fee (waived if previously calculated) .......................... $ 500.00
Report (per individual bond issue) ..................................... $2,000.00
Additional fees may be charged for identification and separation of commingled funds or
allocation of investment earnings. These services will be provided at our then current hourly
consulting rates.
(The following fees for optional delinquency collection services are per parcel and are
ultimately paid by the delinquent property owner)
Reminder Letters ........................................ included in annual fee
Demand Letters ..................................................... $10.00
Effect Removal from Tax Roll .......................................... $40.00
Notice of Default/Negotiate Repayment Schedule .......................... $100.00
Subsequent Foreclosure Services ......................................... hourly
Mr. Dennis Danner
Improvement District Administration Agreement
page 5 of 6
C. Additional Services
Additional services may be authorized by the Agency and will be billed at our then current hourly
consulting rates. Our current hourly rates are listed below:
Hourly Rates
Directors....................................................... $115.00
Senior Associates ....... . ........... 95.00
Associates........................................................ 75.00
Administrative Assistants ............................................. 45.00
Data Entry/Secretarial............................................... 25.00
TERM OF AGREEMENT
The term of this agreement is continuous, not to exceed thirty (30) years, or until districts are
dissolved pursuant to Section 53338.5 of the California Government code or Section 8650.1 of
the California Streets and Highways Code, whichever is earlier.
EXPENSES
GFG will be reimbursed for customary, out-of-pocket expenses. These expenses would apply to,
but are not limited to: Assessor's parcel or tract maps, data, data conversion fees, postage,
mileage reimbursements, and telephone expenses. Any out-of-pocket expenses will be itemized
on our invoices as they occur. Expenses will be limited and in any case will not exceed $500 per
year.
GFG will be reimbursed for out-of-pocket expenses made to the County for delinquency,
redemption and assessors tapes, assessor parcel maps and data, recording fees and any expenses
incurred for services rendered in the course of judicial foreclosures proceedings.
Attorney fees resulting from foreclosure actions requested by Agency shall be reimbursed as a
cost item and shall be due and payable upon the earlier occurrence of (a) entry of judgment in the
action (b) settlement of the action, or (c) redemption of the delinquency.
PAYMENT
The services rendered pursuant to this agreement as outlined under the section entitled "Annual
Administrative Services" will be invoiced in twelve equal installments. Payment for optional or
additional services will be invoiced as they occur. Payment for services rendered, expenses and
costs pursuant to this Agreement shall be made within thirty (3 0) days of receipt of GFG invoice.
Mr. Dennis Danner
Improvement District Administration Agreement
page 6 of 6
ABANDONMENT AND ARBITRATION
In the event that the services provided to the Agency by GFG in accordance with this Agreement
are terminated by the Agency prior to completion and in accordance with the second paragraph
under the section entitled "TERM OF AGREEMENT" above, the Agency will pay GFG a fee
equal to the reasonable value of the services provided. Reasonable value shall be determined
based on our then current fees and hourly rates. In the event of litigation or arbitration between
the parties over the terms or performance of this Agreement, the prevailing party shall be entitled
to reasonable attorney's fees and costs.
ACCEPTED BY:
The Government Finance Group
Peter M. Placey
Managing Director
June 20, 1995
City of Newport Beach
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