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HomeMy WebLinkAboutC-2920(C) - Agreement to Provide Improvement District Adminstration and Related Consulting Services (Regarding CIOSA)SIR i 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 SUITE 370 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 -ame 22irrc v,, Title Date