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Home My WebLink AboutCC 5 DIST ADM CONSULT 07-01-91CONSENT CALENDAR NO. 5 7-�1-91 ' inter -Com DATE: JUNE 26, 1991 �_,_ •�_� TO: WILLIAM A. HUSTON, CITY MANAGER FROM: RONALD A. NAULT, DIRECTOR OF FINANCE SUBJECT: ANNUAL AGREEMENT TO PROVIDE SPECIAL DISTRICT ADMINISTRATIVE CONSULTING AND RELATED SERVICES RECOMMENDATION: Authorize the City Manager to sign agreement with Muni Financial Services, Inc. to provide administrative services and consulting for the City of Tustin Special Assessment Districts. BACKGROUND: Since the inception of the City's Special Assessment Districts, 85-1 and 86-2, staff has depended on the services of outside vendors to provide the technicalities associated with the annual administration of the Districts. The following points highlight the services provided by the vendor: • Develop and maintain a complete data base of the parcels with the districts. • Prepare and record assessment diagrams and apportion/merge assessments. • Prepare annual assessment levy to include administrative expenses, bank fees and reserve fund credits. • Submit assessment tape to County. • Monitor delinquencies. • Respond to citizen inquiries. • Assist with early redemption. • Provide pay off calculation on request. • Calculate arbitrage rebate. Page 2 June 26, 1991 Annual Agreement Special Assessment Districts We have been working with MFS since 1986 and are recommending the continued contracting for these services. The fees for these services are included in the Districts Annual Assessments. 1 Ron A. Nault Director of Finance RAN :ls Attachment a:agrement.85/1 ............ ...... iMFS Muni Financial Services Inc. 42217 Rio Nedo Suite A203 Temecula, CA 92390 (714)699-3990 Fax: (714) 699-3460 1440 Francisco Street San Fransciso, CA 94123 (415)441-3550 Fax: (415) 441-1401 June 21, 1991 Mr. Ronald A. Nault Director of Finance City of Tustin 300 Centennial Way Tustin, CA 92680 RE. Agreement to Provide Special DistrictAdministrative Consulting and Related Services Dear Mr. Nault: Pursuant to your request, Muni Financial Services, Inc. ("MFS") is pleased to submit this letter Agreement to the City of Tustin ("the Agency") to provide special assessment district administration consulting and related services. SCOPE OF SERVICES The agreement specifies the steps that our services have been divided into, as summarized in the following paragraphs. 1. We will meet with the City's Planning Department to establish procedures under which we will be notified of all applications for parcel splits and mergers. We will then gather all relevant materials to form a complete data base of the parcels within the assessment districts. We will load the data onto our MFS administrative software to provide full management of the districts. 2. We will prepare and record assessment diagrams and apportion and merge assessments. We will provide notification of assessment apportionment to the underwriter, although we are actively trying to remove this provision from the Code. We will provide the City a report listing all parcel mergers and splits that [:]Financial Consulting and Administration x '41�,MFS - City of Tustin Page Two have occurred within the districts. Our standard report shows the original parcel(s) and the new parcel(s), along with the new assessment of each parcel and the date of the transaction. 3. We will then update the parcel data base using the parcels on record as of March 1st. We will prepare estimates of administrative expenses, bank fees, and Reserve Fund interest earnings to determine the total annual assessment levy. These estimates will be submitted to the City for review and approval. 4. We will provide to the County Auditor -Controller a tape or diskette with the correct assessment installment information, formatted in the County's standard configuration. 5. Throughout the year, we will monitor delinquencies, submit to the City a delinquency report, and send notices to the delinquent property owners. We will send two letters to the delinquent property owners in an attempt to eliminate the delinquencies. We will provide a list of delinquent property owners that will require the initiation of judicial foreclosure or other appropriate legal procedures. We will coordinate with designated legal counsel to pursue delinquencies. 6. We will prepare a public information report setting forth the method used in apportioning the costs of the improvements to the lands within the District. 7. We will credit any surplus improvement fund monies to the installments and oversee a pro -rata refund to all property owners that have paid -off their assessments, if such a disposition is to be made. 8. We will answer questions from property owners and other interested parties concerning the assessment proceedings and the assessment installments. We will provide interested parties a projection of a property's estimated assessment installments for the term of the assessment district. 9. We will provide an Administrative Procedures Reference Manual for the annual special assessment setting System. 10. We will be available to assist, as -needed, any City Departments. 11. If authorized by the City, we will annually calculate the arbitrage rebate for each district having a bond issue. MFS City of Tustin Page Three 12. We will assist the City with the early redemption of bonds or "bond calls". 13. We will provide pay-off calculations for individual properties and record a Release of Lien with the County identifying parcels that have pre -paid their assessments. CHARGES FOR SERVICES None of the aforementioned costs should be borne by the City. The special district will cover all these fees. Our services will be provided to the Agency according to the fee schedule below: 1915 Act Assessment Districts: *Fixed Annual Fee (per district) $0.00 *Generate installment data, prepare estimates of expenses, co-ordinate with Planning, Assessor and Auditor and report on delinquencies (per parcel) $15,00 Optional Related Services: • Delinquency follow-up (per delinquency) 30.00 *Assessment Apportionment and *Amended Assessment Diagrams 19250.00 (Over 20 parcels - per parcel fee) 15.00 • Pay-off Calculations (per request) 25.00 •Amortization Schedule Preparation (per request) 25.00 'MFS City of Tustin Page Four Arbitrage Rebate Fees We will perform arbitrage rebate services for an annual fee of: $1,500/bond year $1,250/bond year $1,000/bond year $ 750/bond year 1 - 3 bond issues 4 - 8 bond issues 9 + bond issues issues invested exclusively in Fidelity Investments or the Franklin Group of Funds A Bond year is defined as the number of years since the last rebate calculation. The City will not be charged for a full bond year if the original date of an issue is less than six months from the calculation period. Our charges include at least one meeting each year. Out-of-pocket expenses shall not exceed $750 per year. Additional services will be charged at our then current hourly rate. These prices pertain to both current and future bond issues. The following is a schedule of our current hourly rates: Partners/Directors $125.00 Senior Associates 85.00 Associates 65.00 Data Analysts 35.00 Proposal Assumptions The following are the approximate number of parcels and districts the proposed fees are based upon. If the actual number varies substantially it may cause a change in our fee structure. 1915 Act Districts 85-1 86-2 No. of Parcels 1,350 25 MFS City of Tustin Page Five ABANDONMENT In the event that this project is abandoned prior to its completion, the Agency will pay MFS a fee equal to the reasonable value of its services. Reasonable value shall be determined by using the then current hourly rates for our services or the percent completion of the project, whichever is lowest. The project may be abandoned at any time by the Agency. MFS may cancel its obligation under this Agreement by providing thirty days notice in writing to the Agency. 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 attorneys fees and costs. EXPENSES The Agency shall reimburse us for any customary out-of-pocket expenses up to an amount not to exceed $1,500. i PAYMENT Payment for the services rendered pursuant to this Agreement shall be made within thirty (30) days of the submittal of an MFS invoice. MFS invoices for the creation, distribution, collection and follow-up of the tax installments shall be based upon the percentage completion of the project as described in Attachment A. Payment for services related to lot splits will be invoiced monthly according to the fee schedule. Such invoices shall be submitted to the Agency on a monthly basis. In the event of abandonment, the payment will be due within thirty (30) days of receipt of an invoice. 'MFS City of Tustin Page Six BY SIGNING THIS AGREEMENT, THE AGENCY ACKNOWLEDGES UNDERSTANDING OF THIS AGREEMENT, AND THAT THIS DOCUMENT, INCLUDING ATTACHMENTS, CONSTITUTES THE ENTIRE AGREEMENT. NO OTHER AGREEMENTS, EXPRESS OR IMPLIED, BETWEEN THE AGENCY AND MFS EXIST WITH RESPECT TO THE SOFTWARE AND SERVICES TO BE FURNISHED HEREUNDER. THIS AGREEMENT SUPERSEDES ALL PRIOR COMMUNICATIONS BETWEEN THE PARTIES INCLUDING ANY ORAL OR WRITTEN PROPOSALS. THIS AGREEMENT MAY BE MODIFIED OR AMENDED IN WRITING ONLY, AND ANY SUCH AMENDMENT MUST BE SIGNED BY DULY AUTHORIZED REPRESENTATIVES OF THE AGENCY AND MFS. ACCEPTED: MUNI FINANCIAL SERVICES, INC. ("MFS) CITY OF TUSTIN By: By: Har Managing Director June 21, 1991 Title Date MFS City of Tustin Page Seven ATTACHMENT A Payment Schedule and Estimated Completion of Work Percent Month Completion January 7 February 7 March 7 April 7 May 7 June 15 July 15 August 7 September 7 October 7 November 7 December 7 100%