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HomeMy WebLinkAboutRDA 03 LIBRARY 11-15-99AGENDA RDA 3 11-15-99 DATE: NOVEMBER 15, 1999 Inter-Com TO' FROM' SUBJECT: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT STAFF LIBRARY Summary: Redevelopment Agency approval is reqUested for special tax consulting services for financing an expanded Tustin Branch Library and services. Recommendations It is recommended that the Redevelopment Agency appropriate $20,000 from Town Center Project Area funds and authorize the Assistant City Manager to execute a Consultant Services Agreement with David Taussig & Associates, Inc. for special tax consultant services related to financing of a Tustin library expansion, subject to approval of the City Attorney. Fiscal Impact A funding commitment of $20,000 is requested at this time for the subject consulting services. Backqround Over the last 14 months a number of significant tasks have been completed related to the future of a library expansion project to serve the City of Tustin and unincorporated North Tustin community including: · The Tustin Library Needs Assessment and Facility Plan. · The Godbe Research and Analysis- Survey of Voters. · Meetings with Orange County Board of Supervisors SPitzer and Wilson. Based upon discussions with Board of Supervisors representatives and Stone and Youngberg, staff would recommend at this time completion of a more thorough analysis Library Page 2, 11-15-99 of the potential tax spread in the event of formation of a Community Facility District in Tustin and North Tustin to finance an expanded library and services. The firm of David Taussig & Associates, Inc. have come highly recommended by Stone and Youngberg and have submitted a proposal for said services at a maximum cost of $17,500 plus reimbursables not to exceed $2,500. A copy of the Taussig proposal and the Agency's standard Consultant Services Agreement are attached. Christine Shing Assistant Executive Director Attachments Ubrary cc library CONSULTANT SERVICES AGREEMENT This Agreement for Consultant Services (herein "Agreement"), is made and entered into by and between the TUSTIN COMMUNITY REDEVELOPMENT AGENCY, a public body, corporate and politic, ("Agency"), and David Taussing & Associates, Inc. ("Consultant"). WHEREAS, Consultant is qualified to provide the necessary services and has agreed to provide such services; and WHEREAS, Consultant has submitted to Agency a proposal, dated October 29, 1999, a copy of which is attached hereto as Exhibit "A", and is by this reference incorporated herein as though set forth in full hereat (the "Proposal"). NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, Agency agrees to employ and does hereby employ Consultant and Consultant agrees to provide consulting services as follows: 1. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in Exhibit "A" and incorporated. herein by'this reference, (the "services" or the "work"). Consultant warrants that all services shall be performed in a competent, professional and satisfactory manner in accordance with all standards prevalent in the industry. In the event of any inconsistency between the terms contained in Exhibit "A" and the terms set forth in the main body of this Agreement, the terms set forth in the main body of this Agreement and Exhibits B, C, and D shall govern. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all laws, ordinances, resolutions, statutes, rules, and regulations of the City of Tustin and Tustin Community Redevelopment Agency and of any federal, state or local governmental agency of competent jurisdiction. 1.3 Licenses and Permits. Consultant Shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Contract, Consultant warrants that Consultant (a) has thoroughly investigated and considered the work to be performed, Co) has investigated the site of the work and become fully acquainted with the conditions there existing, (c) has carefully considered how the work should be performed, and (d) fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should the Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the Agency, Consultant shall immediately inform Agency of such fact and shall not proceed with any work except at Consultant's risk until written instructions are received from the Contract Officer. 1.5 Care of Work. Consultant shall adopt and follow reasonable procedures and methods during the term of the Agreement to prevent loss or damage to materials, papers or other components of the work, and shall be responsible for all such damage until acceptance of the work by Agency, except such loss or damages as may be caused by Agency's own negligence. 1.6 Additional Services. Consultant shall perform services in 'addition to those specified in the Proposal when directed to do so in writing by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any additional compensation not exceeding ten percent (10%) of the original Contract sum must be approved in writing by the Contract Officer. Any greater increase must be approved in writing by the Executive Director. 1.7 Special Requirements.. Any additional terms and conditions of this Agreement, are set forth in Exhibits "B", "C", "D" and "E" and are incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit "B", "C", and "D" and any other provision or provisions of this Agreement including Exhibit A, the provisions of Exhibits "B", "C", and "D" shall govern. 2. COMPENSATION 2.1 Compensation of Consultant. For the services rendered pursuant to this Agreement, the Consultant shall be Compensated and reimbursed in an amount not to exceed $20,000. 2.2 Method of Payment. In any month in which Consultant wishes to receive payment, Consultant shall no later than the first working day of such month, submit to Agency in the form approved by Agency's .Director of Finance, an invoice for services rendered prior to the date of the invoice. Agency shall pay Consultant for all expenses stated thereon which are approved by Agency consistent with this Agreement, no later than the last working day of said month. 2.3 Changes. In the event any change or changes in the work is requested by Agency, the parties hereto shall execute an addendum to this Agreement, setting forth with particUlarity all terms of such addendum, including, but not limited to, any additional Consultant's fees. Addenda may be entered into: A. To provide for revisions or modifications to documents or other work product or work when documents or other work product or work is required by the enactment or revision of law subsequent to the preparation of any documents, other work product or work; B. To provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Consultant's profession. 2.4 Payment for Changes. Changes approved pursuant to an Addendum shall be compensated at the personnel hourly rates prescribed in Exhibit "A" hereto. 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed within any time periods prescribed in any Schedule of Performance attached hereto marked Exhibit "E". The extension of any time period specified in the Exhibit "E" must be approved in writing by the Contract Officer. The Contract Officer shall not unreasonably withhold consent for an extension of time which is necessitated solely by the action(s) or inaction(s) of the Agency on its officers or employees. 3.3 Force Majeure. The time for performance of services .to be rendered pursuant to this Agreement may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of a public enemy, acts of the government, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, fi'eight embargoes, and unusually severe weather if the Consultant shall within ten (10) days of the commencement of such condition notify the Contract Officer who shall thereupon ascertain the facts and the extent of any necessary delay, and extend the time for performing the services for the period of the enforced delay when and if in the Contract Officer's judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in accordance with Section 7.7 of this Agreement, this Agreement shall continue in full force and effect until satisfactory completion of the services but not exceeding one (1) year from the date hereof, unless extended by mutual written agreement of the parties. 4. COORDINATION OF WORK 4.1 Representative of Consultant. The following Principal of the Consultant is hereby designated as being the principal and representative of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in'connection therewith: David Taussing David Taussing & Associates, Inc. 1301 Dove Street, Suite 600 Newport Beach, CA 92660 It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principal is a substantial inducement for Agency to enter into this Agreement. Therefore, the 'foregoing Principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing Principal may not be changed by Consultant without the express written approval' of Agency. 4.2 Contract Officer. The Contract Officer shall be the Assistant City Manager of City unless otherwise designated in writing by the Executive Director of Agency. It shall be the Consultant's responsibility to keep the Contract Officer fully informed of the progress of the performance of the services and Consultant shall refer any decisions which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the Agency t° enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. The Agency shall not unreasonably withhold consent for an assignment to a business entity which succeeds to the entire assets and operation of the Consultant's business. Reasonable grounds for withholding such consent shall include, but shall not be limited to, a delay in performance caused by or related to the assignment and/or a proposed change in the Principal designated in Section 4.1 of this Agreement. 4.4 Independent Consultant. Neither the Agency nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent consultant of Agency and shall remain at all times as to Agency a wholly independent consultant with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 5. INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance. Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's performance under this Agreement. Consultant shall also carry workers' compensation insurance in accordance with California worker's compensation laws. Such insurance shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to Agency of any proposed cancellation. The Agency's certificate evidencing the foregoing and designating Agency and the City of Tustin (City) as additional named insureds shall be delivered to and approved by the Agency and City prior to commencement of the services hereunder. The procuring of such insurance and the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify the Agency, its consultants, officers, and employees. The amount of insurance required hereunder shall include comprehensive general liability, personal injury and automobile liability with limits of at least One Million Dollars ($1,000,000) combined single limit per occurrence. Coverage shall be provided by admitted insurers with an A.M. Best's Key Rating of at least A.VII. 5.2 Indemnification. The Consultant shall defend, indemnify and hold harmless the Agency, City, its officers and employees, fi.om and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person or persons, for damage to property, including property owned by Agency, City, and for errors and omissions committed by Consultant, its officers, employees and agents, arising out of or related to Consultant's performance under this Agreement, except for such loss as may be caused by Agency or City's own negligence or that of its officers or employees. 6. RECORDS AND REPORTS 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports conceming the performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to properly perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit and make records and transcripts fi'om such records. 6.3 Ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of this Agreement shall be the property of Agency and shall be delivered to Agency upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by Agency of its full rights or ownership of the documents and materials hereunder. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use .the concepts embodied therein. 6.4 Release of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. 7. ENFORCEMENT OF AGRJEE~~ 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a Claim therefor. The injured party shall continue performing its obligations hereunder so long as the injuring party cures any default within ninety (90) days after service of the notice, or if the cure of the default is commenced within thirty' (30) days after service of said notice and is cured within a reasonable time after commencement; provided that if the default is an immediate danger to the health, safety and general welfare, the City may take immediate action under Section 7.6 of this Agreement. Compliance with the provisions of this Section shall be a condition precedent to any legal action, and such compliance shall not be a waiver of any party's fight to take legal action in the event that the dispute is not cured. 7.3 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. No consent or approval of Agency shall be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.4 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.5 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement,. to obtain injunctive relief, a declaratory judgment or any other remedy consistent with the purposes of this Agreement. 7.6 Termination Prior to Expiration of Term. The Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Consultant, except that where termination is due to the fault of the Consultant and constitutes an immediate danger to health, safety and general welfare, the period of notice shall be such shorter time as may be appropriate. Upon receipt of the notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract-Officer thereafter. 7.7 Termination for Default of Consultant. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, Agency may take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated, provided that the Agency shall use reasonable efforts to mitigate damages, and City may withhold any payments t° the Consultant for the purpose of set-off or partial payment of the amounts owed to City. 7.8 Attorneys Fees. If either party commences an action against the other party arising out of or in connection with this Agreement or it subject matter, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8. AGENCY AND CITY OFFICERS AND EMPLOYEES; NON- DISCRIMINATION 8.1 Non-Liability of City Officers and Employees. No officer or employee of Agency or City shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by the Agency or for any amount which may become due to the Consultant or its successor, or for breach of any obligation of the terms of this Agreement/ 8.2 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claimLng under or through them, that there shall be no discrimination or segregation in the performance of or in connection with this Agreement regarding any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry. Consultant Shall take affirmative action to insure that applicants and employees are treated without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry. 9. MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by pre-paid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: TUSTIN COMMUNITY REDEVELOPMENT AGENCY 300 Centennial Way Tustin, CA 92780 Attention: Assistant City Manager (Contract Officer) To Consultant: David Taussing David Taussing & Associates, Inc. 1301 Dove Street, Suite 600 Newport Beach, CA 92660 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and cannot be amended or modified except by written agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the parties hereunder. 9.5 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto wan'ant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. Dated: "City" TUSTIN COMMUNITY REDEVELOPMENT AGENCY By: Christine A. Shingleton Assistant City Manager APPROVED AS TO FORM: Lois Jeffrey City Attorney "Consultant" By: EXHIBIT "A" PROPOSAL and SCOPE OF SERVICES Attached hereto are: 1) Consultant's Proposal Public Finance and Urban Economics 1301 Dove Street, Suite 600 Newport Beach, CA 92660 October 29, 1999 Tel (949) 955-1500 Fax (949) 955-1590 RECEIVED NOV - 1 · ADMINIST~::u-" '~'"~'? PRINCIPALS David O. Taussig Susan M. Goodwin Mitchell Mosesman Benjamin E. Dolinka David P. Freudenberger Andrea R. Roess Ms. Christine Shingleton Assistant City Manager City of Tustin 300 Centennial Way Tustin, California 92680 RE: Special Tax Consulting Services Proposal for CFD for Library Facilities and Services Dear Ms. Shingleton: Pursuant to our conversation,.I have enclosed a proposal under which David Taussig & Associates, Inc. ("DTA") would prepare a preliminary analysis of the formation of a Community Facilities District ("CFD") to finance library facilities and services. The proposal includes a description of DTA and the personnel who would be utilized on this project (Sections I and 11), as well as a list of three references (Section m), a scope of work (Section IV), and a fee quote and hourly rate schedule (Section V). For your information, DTA is a municipal finance and urban economics consulting firm with offices in Newport Beach, Riverside, and Sacramento. Since its establishment in 1985, DTA has focused its work on the financing of public infrastructure and services, and has completed consulting assignments in this area for more than 1,000 public and private sector clients in California, Nevada, Arizona, Hawaii, Illinois, Maryland, and Virginia. A number of the financing districts established by DTA involved registered voter elections. Recently DTA played a key role in the formation of the City of Torrance's Lighting District No. 99-1, which was approved by a registered voter election in June. DTA is currently assisting Capistrano Unified School District with a November 1999 election for the formation of a school facilities improvement district. DTA's level of experience with CFD formations is unequalled, as our firm is the State of California's leading special tax consultant~ having prepared special tax formulas for the establishment of over 250 CFDs. Over the past 24 months, DTA has provided special tax consulting services for CFD formations to virtually every major County government in Southern California, including the Counties of Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego and Santa Barbara. We have also provided CFD formation services to numerous cities and other public agencies throughout the State, including the Cities of Los Angeles, San Diego, San Francisco and San Jose. Newport Beach · Riverside · Sacramento Ms. Christine Shingleton October 29, 1999 Page 2 In addition to DTA's CFD formation experience, our firm is the State's leading annual special tax administration consultant for CFDs, as we are currently providing annual administration services for over 120 CFDs. If you have any questions regarding DTA or-the attached proposal, please do not hesitate to call me at (1-800) 969-4DTA. My staff and I look forward to having the opportunity to work with you and the other members of the City staff and the Ad Hoc Library Planning Committee. Very truly yours, David Taussig f~ Enclosure J:LpR OPO S ALWiELLO\TustinXLTR. doc Prepared for: CITY OF TUSTLN 300 Centennial Way Tustin, CA 92680 Prepared by: DAVID TAUSSIG & ASSOC~T~S, ISC. 1301 Dove Street, Suite 600 Newport Beach, CA 92660 October 29, 1999 ATES, INC. DESCRIPTION OF FIRM (a) OVERVIEW DAVID TAUSSIG AND ASSOCIATES, INC. ("DTA") is a public finance and urban economics consulting firm specializing in infrastructure and public facilities finance. The firm, which has offices in Newport Beach, Riverside, and Sacramento, acts as consultant to both public and private sector clients involved in land development and infrastructure finance. DTA's consulting services include: Special Tax and Assessment Engineering Public Infrastructure and Services Financing Plans and Strategies Fiscal and Economic Impact Analyses Redevelopment Finance Economic Development and Revitalization Studies Real Estate Economics Since its establishment in 1985, DTA has completed consulting assignments related to the financing of public infrastructure and services for more than 1,000 public and private sector clients in California, Nevada, Arizona, Hawaii, Illinois, Maryland, and Virginia. During this period, the firm has been involved in the formation of more than 400 public finance districts, with total bond authorizations exceeding $20 billion. Our financing programs have utilized a variety of public financing mechanisms such as Community Facilities Districts ("CFD"), Assessment Districts, Certificates of Participation, Tax Allocation Bonds, Sewer and Water Revenue Bonds, Marks-Roos Bond Pools, Landscaping and Lighting Districts and various types of fee programs. DTA's level of experience with CFD formations is unequaled~ as our firm is the State of California's leading special tax consultant: having prepared special tax formulas for the establishment of over 250 CFDs. (b) CFD FORMATION EXPERIENCE DTA's special tax formulas have been utilized to provide debt service coverage for the sale of several hundred CFD bond issues to-date, and have provided the firm with considerable experience working with landowners, public agencies, underwriters, bond counsels and financial advisors to provide special tax apportionment methods satisfactory to all parties. In the process, DTA has also worked frequently with institutional bond purchasers, all of whom are familiar with the firm and its expertise in the field of special tax consulting. DTA has also developed substantial experience and a strong reputation in the areas of overlapping debt analysis, value to lien studies, developer disclosure documentation, and other elements of the bond issuance process. DTA's special tax formulas, some of which have been in use since 1985, are based on a variety of methodologies which have withstood the test of time. Our firm's objective has been to take a balanced approach and utilize innovative and state-of-the-art techniques that enable all parties to receive the maximum benefit from public financing. DTA is aware of- and has contributed to - the most innovative and creative concepts in land secured public financing. This knowledge and experience has allowed DTA to maximize 'the capacity of City of Tustin Proposal for Special Tax Consultant Services Page 1 October 29, 1999 land secured financing programs while mini~nizing burdens on homebuyers and other property owners. Over the past two years, DTA has provided special tax consulting services for CFD formations to virtually every major County government in Southern California, including the Counties of Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego and Santa Barbara. Southern California cities to whom we have successfully provided these same CFD formation services include the Cities of Anaheim, Beaumont,' Beverly Hills, Burbank, Cathedral City, Chula Vista, Encinitas, Fillmore, Fontana, Hawthorne, Hesperia, Irwindale, Lake Forest, Lancaster, La Quinta, Long Beach, Los Angeles, Oceanside, Ontario, Palmdale, Pasadena, Placentia, Rancho Cucamonga, Rialto, Riverside, San Bernardino, San Diego, San Marcos, San Jacinto, Santa Clarita, Temecula, Torrance and Thousand Oaks, among others. Our firm has also prepared special tax formulas for numerous school districts and water districts in Southern California, as well as dozens of public agencies (including the Cities of San Francisco, San Jose and Fresno) throughout Central and Northern California. DTA is particularly familiar with Orange County land-secured financings, having already established over 40 CFDs within the County. including all 18 established by the County of Orange. (c) CFD ADM~ST~TION E~E~NCE In. addition to DTA's CFD formation experience, DTA is the State's leading annual special tax administration consultant for CFDs, as we are currently providing annual administration services for over 120 CFDs. DTA also has a "Due Diligence and Disclosure" unit in our administration division which specializes in the provision of arbitrage and continuing disclosure services to comply with all of the new Securities and Exchange Commission regulations (e.g., SEC Rule 10b-5), as well as providing existing and prospective property owners, title companies, government agencies and other interested parties with tax information and projections for specific properties. City of Tustin Propos_nl for Special Tax Consultant Services Page 2 October 29, 1999 ! ~.¥i I DII [1,k'~l [~ &' AS, .TES, INC. DTA STAFF FOR CITY OF TUSTIN David Taussig & Associates, Inc. has assembled a project team for the City of Tustin with the breadth of experience needed to provide CFD formation services in a Professional and timely manner. This project would be handled out of DTA's Newport Beach Office. David Taussig would be the Principal in Charge. Andrea Roess would be the Project Manager and have the City ofTustin's primary account responsibility. Mr. Taussig and Ms. Roess will be assisted by Shayne Morgan and other support staff. All team members can be reached at 1- 800-949-4DTA. Resumes for our key team members are listed below. DAVID TAUSSIG, President, has more than twenty-five years of experience in the fields of real estate finance and planning. His areas of expertise include municipal finance programs for infrastructure and public facilities development, fiscal and redevelopment impact analysis, and land development project fe/tsibility studies. Mr. Taussig has an extensive background in computerized financial analysis. Since founding DTA in 1985, Mr. Taussig has developed a number of state-of-the-art analytical methods and modeling approaches, as well as personally directed the formation of more than 250 public financing districts, and the subsequent sale of tax-exempt municipal bonds. In addition, he has overseen the preparation of numerous feasibility and impact studies involving computerized analysis of project cash-flows and/or impacts on public agencies and landowners. This has included many fiscal impact analyses, as well as fee justification and redevelopment impact studies. Prior to establishing his own firm, Mr. Taussig was Director of Finance for Gfeller Development Company, where he was responsible for all take-out and construction financing for the Company's residential projects and infrastructure. He also prepared development project pro-formas, which were used by prospective lenders and joint venture partners to evaluate the Company's proposed projects. Mr. Taussig was previously employed for six years by Mission Viejo Company (MVC) where, as Manager of Housing and Community Development, he was involved in the planning and financing of two planned communities containing over 50,000 homes. Mr. Taussig was responsible for a substantial portion of MVC's mortgage financing and infrastructure financing during that period. He also processed a series of residential projects from general plan approval to the issuance of certificates of use and occupancy. Before joining MVC, Mr. Taussig was employed as Manager of Housing Programs for the Jack G. Raub Company, where he was responsible for mortgage revenue bond financing and affordable housing projects. Mr. Taussig also worked for five years in the public sector as the 'administrator of a federal housing and community development program, and as a land-use planner. His educational background includes an M.S. in city planning from the University of California at Berkeley and a B.S. in economics from Cornell University. He is a full member of the American Institute of Certified Planners. City of Tustin Proposal for Special Tax Consultant Services Page 3 October 29, 1999 ~~]~[~~& ASSO ZS, INC. ANDREA ROESS, Director, has a background in finance and public policy analysis. Ms. Roess has participated in all aspects of the formation and implementation of Mello-Roos Community Facilities Districts, including those involving multiple landowners, improvement areas, and Marks-Roos bond pools. She has particular expertise in the financial analyses necessary for the refunding of bonds issued by Mello-Roos Community Facilities Districts. Since joining DTA in 1992, Ms. Roess has developed cash flow pro forma models, created special tax formulas and methods of apportionment, and prepared overlapping debt analyses for many special districts. Ms. Roess also has experience in the preparation of AB 1600 fee justification studies, public facilities financing plans, water/sewer revenue bond analyses, and school fee justification studies. In addition, Ms. Roess is the project manager in charge of the annual special tax administration for several Mello-Roos Community Facilities Districts in southern California. Prior to joining DTA, Ms. Roess was a Financial Management Assistant for the U.S. Department of Housing & Urban Development, where she developed a comprehensive financial management manual for HUD's grantees. Ms. Roess holds an M.B.A. degree with a concentration in finance from San Francisco State University, and a B.A. in psychology/public policy analysis from Pomona College. SHAYNE MORGAN~ Senior Associate~ has a background in finance and investment'analysis. Since joining DTA three years ago, Mr. Morgan has been involved in the formation of more than 25 Mello-Roos 0ommunity Facilities Districts, as well as the sale of over $300 million in refunding and parity CFD bonds. Mr. Morgan's responsibilities related to these CFDs have included the preparation of tax spread proforma analyses, as well as the preparation of Public Reports and overlapping debt analyses. In addition, he has been the project manager for the annual administration of over ten CFDs in Los Angeles County, and has prepared due diligence, tax projections and disclosure repons related to land-secured bond issuances for numerous clients. He has also assisted in the preparation of development fee justification studies and fiscal impact reports. Prior to joining DTA, Mr. Morgan was an investment intern with Smith Barney Inc. in Boston, where he performed fundamental equity analysis. Mr. Morgan holds a B.S. in finance from Boston College. City of. Tustin Proposal for Special Tax Consultant Services Page 4 October 29, 1999 As, ATES~ INC. !, III. THREE REFERENCES FOR WHOM DTA HAS PERFORMED SIMILAR ASSIGNMENTS (a) County of Orange Ms. Marian Beacham, Senior Staff Analyst County Administrative Office County of Orange 10 Civic Center Plaza 3rd Floor Santa Ana, CA 92701-2094 (714) 834-6036 (b) City of Anaheim Bill Sweeney, Finance Director Sue Kempik, Senior Accountant Finance Department City of Anaheim 201 S. Anaheim Boulevard Anaheim, CA 92805 (714) 765-5136 (c) City of Los Angeles Ms. Molly Campbell, Director of Public Finance City Administrative Office City of Los Angeles 200 N. Main Street, 15th Floor Los Angeles, CA 90012 (213) 485-2874 City of Tustin Page 5 Prop___~osal for Special Tax Consultant Services October 29, 1999 Assr, .Es, INC. ] IV. SCOPE OF SER VICES David Taussig & Associates, Inc. CDTA") shall assist the City of Tustin (the "City") with a preliminary analysis of the formation of a Community Facilities District ("CFD") in Tustin and North Tustin to finance library facilities and services. DTA shall perform the following tasks' Task 1. Determine CFD Boundaries DTA shall work with City staff to determine the boundaries of the proposed CFD. Once the CFI) boundaries are identified, DTA shall determine the Assessor' s Parcel Numbers for all properties within the proposed CFD. Task 2. Land Use Analysis DTA shall determine the number of single family residential units, multi-family residential units, commercial acres, and undeveloPed acres within the boundaries of the proposed CFD. The City shall be responsible for providing a computer file containing the County of Orange Property Characteristic Information data for all Assessor's Parcels identified in Task 1. Task 3. Tax Spreads based on Existing Land Uses DTA shall prepare two Tax Spread models to calculate the annual special taxes currently required from each land use class of developed property (i.e., single family residential units, multi-family residential units, and commercial acres) to support the proposed bond financing and services under a high and low cost scenario, based upon the existing development within the CFD. The City shall be responsible for providing the estimated cost of the library facilities and services proposed to be financed. Task 4. Tax Spreads based on Existing and Future Land Uses DTA shall prepare four additional Tax Spread models to calculate the projected annual special taxes required from each land use class of developed property (i.e., single family residential units, multi-family residential units, and commercial acres) and undeveloped property on a year-by-year basis to support the proposed bond financing and services under a high and low cost scenario, based upon the expected development of the CFD. Two of these tax spreads shall assume that special taxes are levied on undeveloped property prior to its development, while the other two tax spreads shall assume no special tax levy on undeveloped proPerty The City shall be responsible for providing the projected number of residential units or commercial acres to be developed on each Assessor's Parcel of undeveloped property within the CFI), as well as an absorption schedule for such property. City of Tustin Page 6 Proposal for Special Tax Consultant Services October 29, 1999 ~SSO, £S, INC. Task 5. Meetines DTA shall attend up to three meetings with City staff and/or the Ad Hoc Library Planning committee to discuss strategy and data needs, as well as to present the results of our analysis. City of Tustin ~Proposal for Speci~ Tax Consultant Services Page ~/ October 29, 1999 ASSO~.._-s'ES, INC. ] FEE SCHEDULE DTA's proposed budget (excluding expenses) for completion of Tasks 1 through 5 shall be $17,500 for services (excluding out-of-pocket expenses). DTA shall be remunerated for services based on the hourly rates shown below, with invoices being submitted to City-on a monthly basis. Hourly Rates President Vice President Director Manager Senior Associate Associate Financial Analyst Research Assistant $150/Hour $145/Hour $140/Hour $130/Hour $120/Hour $100/Hour $ 85/Hour $ 60/Hour Any additional tasks assigned by the City if the total fee listed above has been exceeded shall be charged at the hourly rates listed above. Additional tasks would include more than three meetings or more than six tax spread computer runs. If such additional fees are required, they would be added to the $17,500 maximum fee listed above. The hourly fees listed aboVe apply for a twelve month period after execution of this Agreement, and are subject to a cost- of-living increase after that period, and on an annual basis thereafter. In addition to fees for services, the City shall reimburse DTA for maps, data, travel, photocopying, courier, facsimile, clerical, telephone expenses, and administrative charges, not to exceed $2,500. Limitations The City shall provide DTA (at no cost to DTA) with the County of Orange Property Characteristic Information file for all Assessor's Parcels within the proposed CFD. Consulting services related to the formation of a CFD or collection of annual special taxes shall be covered under a separate agreement. J APROPOS ALhMELLO\Tustin~proposal.doc ? CityofTustin Page 8 ~o~pos~ for Special Tax Consultant Services October 29, 1999 EXHIBIT "B" SPECIAL REQUIREMENTS , o . o o , . The Consultant shall comply with all applicable federal, state and local laws applicable to its activities. The Consultant shall not release to the public or press any information regarding the purpose/scope of services to be accomplished or data specific to the project required under the Agreement without prior authorization of the contract officer. All such information is considered confidential. All inquiries made of Consultant shall be imfiaediately referred to the Contract Officer. Consultant shall present to the Agency certificates of insurance and endorsement forms verifying that the Consultant has the insurance as required by this Agreement. Said form shall be reviewed and approved by the office of the City Attorney. A certificate of insurance form is attached. Consultant shall utilize those professional staff members to perform services as identified in Consultant's' proposal. No substitution shall be made without the advance written approval of the Contract Officer. No increase in compensation or reimbursable salary rates will be allowed when personnel or finn substitutions are authorized by the Contract Officer. The Consultant shall review and replace project personnel who do not perform assigned duties in a manner satisfactory to Contract Officer when requested by Contract Officer. Monthly progress reports shall be submitted by Consultant with billing requests. At minimum these reports shall specify the period reported, tasks completed, tasks underway, percent of project completed and strategies to solve any timing delays. Consultant shall be required to meet with the Contract Officer as determined necessary or desirable to discuss elements of the Scope of Work and project's progress. Field Investigation necessary. The Consultant shall obtain all necessary field data and make investigations and studies necessary to properly accomplish the work required under this Agreement. The final report shall be presented in person and discussed with the Tustin Ad-hoc Library Planning Committee. EXHIBIT "C" SCHEDULE OF COMPENSATION Compensation . As compensation for the Consultant'~ services under this Agreement, the Agency shall pay the Consultant a not-to-exceed fixed amount of $20,000, of which $17,500 is a not to exceed amount to include direct services based on hourly rates shown in Exibit A and a not to exceed amount of $2,500 for expense reimbursements. Expense Reimbursement . The Consultant's not-to-exceed compensation for services under this Agreement may include reimbursement for miscellaneous expenses. The Agency shall reimburse Consultant for direct expenses such as and including postage, telephone charges and Consultant travel subject to the following restrictions: a. Expenses for air travel shall be for standard, economy class only; b. Itemized payment statements shall set forth in detail all actual reimbursement expenses during the preceding month. Compensation for Additional Services 3. In the event the Agency requires services in addition t° those described in Exhibit A and B, said services must first be approved in writing by the Contract Officer. The Consultant shall be compensated at the Consultant's standard hourly rates for professional services as shown in Exhibit A, plus reimbursement of expenses or a fixed amount agreed to in writing by the Agency and Consultant. Method of Payment , As a condition precedent to any payment to Consultant under this Agreement, Consultant shall submit monthly to the Agency a statement of account which clearly sets forth by dates the designated items of work, as well as reimbursable expenses, for which the billing is submitted. The payment request shall identify each task required by the Agreement, percent of completion, amount of actual reimbursable expenses and requested amount to be billed against each task. Timing of Payment o The Agency shall review Consultant's monthly statements and pay Consultant for services rendered and costs incurred hereunder, at the rates and in the amounts provided hereunder, on a monthly basis in accordance with the approved monthly statements. EXHIBIT "D" SCHEDULE OF PERFORMANCE Upon the Consultant receipt of the County of Orange Property Characteristic Information file for all Assessor's parcels within the City of Tustin and North Tustin unincorporated area, the Consultant shall complete the Scope of Services under this Agreement within 4-6 weeks of receipt of a Notice to Proceed.