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HomeMy WebLinkAboutAGENDA REPORT 2023 0301 CCSA REG ITEM 10ICITY OF MOORPARK, CALIFORNIA City Council Meeting of March 1, 2023 ACTION APPROVED STAFF RECOMMENDATIONS. BY A. Hurtado. I. Consider Agreements with Willdan Financial Services and Jones Hall for Formation of Community Facilities Districts. Staff Recommendation: 1) Approve Agreement with Willdan Financial Services for a total not-to-exceed amount of $75,000 annually; and authorize the City Manager to sign the Agreement, subject to final language approval of the City Manager; and 2) Approve Agreement with Jones Hall for a total not-to-exceed amount of $75,000 annually; and authorize the City Manager to sign the Agreement, subject to final language approval of the City Manager. (Staff: Jeremy Laurentowski, Parks and Recreation Director) Item: 10.I. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jeremy Laurentowski, Parks and Recreation Director DATE: 3/01/2023 Regular Meeting SUBJECT: Consider Agreements with Willdan Financial Services and Jones Hall for Formation of Community Facilities Districts BACKGROUND The City has a long standing history of forming Landscape Maintenance Districts (LMDs) to cover the costs of certain improvements. Initially, in 1984, a Landscaping and Lighting Maintenance Assessment District No. AD 84-2 (AD 84-2), encompassing the entire City, was created to fund costs associated with street lighting and the maintenance of various landscaped areas in the City. This was a successor to the District enacted by the County of Ventura prior to the incorporation of the City. In subsequent years, Zones of Benefit (Zones) were added to fund improvements and the maintenance of certain specific areas. Later, these Zones were changed to Districts 1 through 12. Since 1984, the City has formed additional Districts to fund the maintenance of certain landscape improvements in and adjacent to: 2001 • Silver Oak Lane Tract 5201 (AD 01-1, District 14) • Country Club Estates Tract 4928 (AD 01-2, District 15 Zone A) • Masters at Moorpark Country Club Tract 5463 (AD 01-2, District 15 Zone B) • Mountain View Tract 5166 (AD 01-3, District 16) 2004 • Moonsong Court Tract 5307 (AD 04-01, District 18) 2005 • Campus Plaza Tract 5264 (AD 05-01, District 19) 2006 • Canterbury Lane Tract 5133 (AD 06-01, District 21 - Zone A) • Ivy Lane Tract 5425 (AD 06-01, District 21 - Zone B) 2007 • Meridian Hills Tracts 5187 and 5405 (AD 07-02, District 20) • Moorpark Highlands Tract 5045 (AD 07-01, District 22) Item: 10.I. 183 Honorable City Council 03/01/2023 Regular Meeting Page 2 • 875 Los Angeles Ave IPD 2000-10 (AD 07-04, District 24) 2008 • Patriot Commerce Center CPD 2004-01 (AD 07-03, District 25) 2009 • 14339-14349 White Sage Rd CPD 2004-03 (AD 09-01, District 26) 2010 • Tuscany Square CPD 2005-02 (AD 10-01, District 31) • 145 Park Lane CPD 2005-03 (AD 10-02, District 32) Although the creation and the management of City’s LMDs has generally been successful, they do not offer the flexibility that the City will need to fund improvements as we move towards ultimate build-out. This is due to the fact that the City does not have the financial capacity to subsidize maintenance costs associated with future development, such as street maintenance, public parks, or other improvements within the City’s rights- of-way. However, Community Facilities Districts (CFDs) offer a similar methodology to taxing parcels, while allowing for a greater range of authorized improvements and services. In 2018, staff presented an agenda report to the City Council regarding the advantages of CFDs. The City Council ultimately authorized staff to utilize CFDs for City government services instead of LMDs when entering into new Development Agreements. DISCUSSION A CFD is a special tax district provided for in State Law that funds public improvements and on-going services within an identified area. The Mello-Roos Community Facilities District Act of 1982 authorized local governments to create CFDs for the purpose of selling tax exempt bonds to fund public improvements and collect revenues to pay for public improvements. Also authorized is the collection of revenue to fund services and maintenance associated with the new development (a CFD by utilizing Government Code 53311-53368.3 for maintenance of facilities and services). Requirements of creating a CFD include several procedural actions by the City Council and affected property owners, such as an application, petition, Resolution of Intention including Rate and Method of Apportionment and Boundary Map, Resolution of Formation, property owner election, Public Hearing, and recordation of Notice of Special Tax. Prior to the formation of a CFD, it must be approved by a two-thirds majority of the qualified voters within the proposed district boundaries. As a general practice when forming a new funding mechanism associated with residential development that relies on a property assessment, the election regarding the imposition of an assessment is held before the property is subdivided, and lots are sold to individual homeowners. The additional applicable assessment rate is therefore disclosed to prospective homeowners by the home developer/builder. Although the City will generally seek City Council concurrence on the maintenance of improvements, or services, the Mello-Roos Community Facilities Act of 1982 184 Honorable City Council 03/01/2023 Regular Meeting Page 3 (Government Code 53311 et. seq.) can fund 100% of the cost of the following capital improvements: • Street improvements • Water, Sewer, Storm Drain improvements • Parks, Libraries, Schools and other Public buildings • Development Impact Fees for any of the above Additionally, a CFD Special Tax can fund 100% of the maintenance cost of the following improvements and services: • Police protection services • Fire protection and suppression services • Ambulance and paramedic services • Recreation programs • Libraries • Schools • Parks, parkways and open space maintenance • Flood and storm protection services • Street maintenance LMDs are permitted under the Landscaping and Lighting Act of 1972 (1972 Act) and State of California Proposition 218, the "Right to Vote on Taxes Act". The 1972 Act permits the formation of LMDs, and annexation into said District to finance the installation, maintenance and servicing of landscaping, trails, fencing, irrigation, streetlights, traffic signals, bridge lights, graffiti abatement, and drainage facilities through annual assessments on real property within the district. The annual assessment for each zone in an LMD is based on the estimated specific benefit to each parcel, Equivalent Dwelling Unit (EDU) or acre and not on property valuation. In 1996, State of California Proposition 218 required that all parcel assessments be presented to the property owners for their authorization in order to levy a parcel assessment. A "Special Election" is conducted to ascertain if 51% of the affected property owners are in favor of an annual assessment for an LMD being added to their property taxes. Elections are conducted in the same year the application for annexation is submitted. Although LMDs do provide for a number of services to be included, they are not as broad as CFDs in the eligibility of services that can be financed on an on-going basis. CFDs and LMDs both tax parcels, or residential units, in order to fund certain public improvements. However, as mentioned previously CFDs offer far greater flexibility and ease in developing a methodology to tax parcels. An LMD is an assessment, which requires a special benefit versus general benefit analysis and the finding of special benefit, which is a more rigorous standard and presents greater risk to the City. The methodology for a CFD just needs to be reasonable based on the quality and quantity of services within a future development. 185 Honorable City Council 03/01/2023 Regular Meeting Page 4 Because a CFD does not require a finding of special benefit, flexibility is provided in developing a methodology and special tax rates. CFD law specifically allows for a much greater range of authorized improvements and services than assessments. For an LMD, the City would be required to show that the improvements and/or services provide a specific benefit to the parcels being assessed, that the larger public receives no benefit, and based on this finding, develop the methodology for the District. For a CFD, as long as the service is authorized in the law, it can be included in the methodology, and there does not need to be direct association to the special tax rates being developed. If any improvements within an LMD are shown to have some general benefit to the public, such as public parks or street improvements, their inclusion would be restricted. Currently, a developer for new development project, Danco Communities (Danco), has requested the creation of a CFD to fund the public improvements associated with their development project, Vendra Gardens. The creation of a CFD is a requirement of their Development Agreement. Additionally, Danco is in the process of establishing the project budget and has requested the creation of the CFD to provide validity to their proposed project budget. In order to move forward with the creation of future CFDs, the City will be required to solicit the services of qualified consulting firms. Staff is recommending Agreements with Willdan Financial Services and Jones Hall. Willdan Financial Services (Willdan) has been providing public agencies with a comprehensive approach to special district consulting since their inception in 1988. The scope-of-work within the attached proposal outlines the tasks necessary for the preparation of the budget and costs associated with the maintenance of the improvements, special tax analysis, and preparation of required documents, including the Rate and Method of Apportionment of Special Tax (RMA) and CFD Report, and the completion of the procedural tasks necessary to execute the formation of the CFD. Additionally, Willdan has included optional scope-of-services to review and update the City’s existing CFD Goals and Policies, in the event modifications need to be made at a future date. Jones Hall has contracted with the City for many years to provide bond counsel services for the City’s debt issuances. Jones Hall will help the City with a variety of procedural tasks necessary for the formation of the CFDs, such as the Resolution of Intention to Incur Debt for the CFD, publication of notice of public hearing, Resolution of Formation, Resolution Calling Special Election, Resolution Declaring Results of Special Election, Ordinance Levying Special Taxes, and the Notice of Special Tax Lien. Additionally, Jones Hall will provide ancillary legal counsel and other tasks related to the formation process, as needed. The costs to form a CFD is approximately $45,000 to $60,000, depending on the size and complexity of the CFD. For the Vendra Gardens project, Willdan has proposed a cost of $23,750 and Jones Hall has proposed a cost of $25,000, for a total cost of $48,750. The fees will be paid by the developer through a deposit collected by the City prior to initiating 186 Honorable City Council 03/01/2023 Regular Meeting Page 5 the development of the CFD. Staff recommends approving Agreements with both Willdan and Jones Hall, for a not-to-exceed amount of $75,000 annually, so that future CFDs can be formed without having to contract for each project specific CFD individually. ENVIRONMENTAL DETERMINATION The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The creation of a Community Facilities District meets the above criteria and is not subject to CEQA. No additional environmental review is required. FISCAL IMPACT There is not fiscal impact to the City. All fees will be paid by the developer. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION 1. Approve Agreement with Willdan Financial Services for a not-to-exceed amount of $75,000 annually; and authorize the City Manager to sign the Agreement, subject to final language approval of the City Manager; and 2. Approve Agreement with Jones Hall for a not-to-exceed amount of $75,000 annually; and authorize the City Manager to sign the Agreement, subject to final language approval of the City Manager. Attachment 1: Professional Services Agreement Attachment 2: Willdan Financial Services Proposal Attachment 3: Jones Hall Proposal 187 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MOORPARK AND [CONSULTANT] FOR COMMUNITY FACILITIES DISTRICT FORMATION CONSULTING SERVICES THIS AGREEMENT, made and effective as of _____________________________________, between the City of Moorpark, a municipal corporation (“City”) and [CONSULTANT], a corporation, (“Consultant”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: WHEREAS, City has the need for Community Facilities District formation consulting services; and WHEREAS, Consultant specializes in providing such services and has the proper work experience, certifications, and background to carry out the duties involved; and WHEREAS, Consultant has submitted to City a Proposal dated ____________________, which is attached hereto as Exhibit C. NOW, THEREFORE, in consideration of the mutual covenants, benefits, and premises herein stated, the parties hereto agree as follows: 1. TERM The term of this Agreement shall be from the date of execution to June 30, 2026, unless this Agreement is terminated or suspended pursuant to this Agreement. Upon the mutual consent and written amendment to this Agreement executed by both parties, the term of this Agreement may be extended by two (2) additional one (1) year periods. 2. SCOPE OF SERVICES City does hereby retain Consultant, as an independent contractor, in a contractual capacity to provide Community Facilities District formation consulting services, as set forth in Exhibit C. In the event there is a conflict between the provisions of Exhibit C and this Agreement, the language contained in this Agreement shall take precedence. Consultant shall perform the tasks described and set forth in Exhibit C. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit C. Compensation for the services to be performed by Consultant shall be in accordance with Exhibit C. Compensation shall not exceed the rates or contract value of seventy-five thousand dollars ($75,000) annually, without a written Amendment to the Agreement executed by both parties. Payment by City to Consultant shall be in accordance with the provisions of this Agreement. ATTACHMENT 1 188 [Consultant] Page 2 of 15 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of their ability, experience, standard of care, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. MANAGEMENT The individual directly responsible for Consultant’s overall performance of the Agreement provisions herein above set forth and to serve as principal liaison between City and Consultant shall be _____________________, and no other individual may be substituted without the prior written approval of the City Manager. The City’s contact person in charge of administration of this Agreement, and to serve as principal liaison between Consultant and City, shall be the City Manager or the City Manager’s designee. 5. PAYMENT Taxpayer ID or Social Security numbers must be provided by Consultant on an IRS W-9 form before payments may be made by City to Consultant. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit C, based upon actual time spent on the above tasks. This amount shall not exceed seventy-five thousand dollars ($75,000) annually, for the total term of the Agreement unless additional payment is approved as provided in this Agreement. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement, which are in addition to those set forth herein, unless such additional services and compensation are authorized, in advance, in a written amendment to this Agreement executed by both parties. The City Manager, if authorized by City Council, may approve additional work not to exceed ten percent (10%) of the amount of the Agreement. Consultant shall submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. Any expense or reimbursable cost appearing on any invoice shall be accompanied by a receipt or other documentation subject to approval of the City Manager or the City Manager’s designee. If the City disputes any of Consultant’s fees or expenses, City shall give written notice to Consultant within thirty (30) days of receipt of any disputed fees set forth on the invoice. 189 [Consultant] Page 3 of 15 6. TERMINATION OR SUSPENSION WITHOUT CAUSE The City may at any time, for any reason, with or without cause, suspend, or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement. The Consultant may terminate this Agreement only by providing City with written notice no less than thirty (30) days in advance of such termination. In the event this Agreement is terminated or suspended pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination or suspension, provided that the work performed is of value to the City. Upon termination or suspension of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to this Agreement. 7. DEFAULT OF CONSULTANT The Consultant’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate or suspend this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant’s control, and without fault or negligence of the Consultant, it shall not be considered a default. If the City Manager or his/her designee determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have thirty (30) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 8. LIQUIDATED DAMAGES There are no liquidated damages under this Agreement. 9. OWNERSHIP OF DOCUMENTS Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate 190 [Consultant] Page 4 of 15 records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or the City’s designees at reasonable times to such books and records; shall give the City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Notification of audit shall be provided at least thirty (30) days before any such audit is conducted. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. Upon completion of, or in the event of termination or suspension without cause of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant’s office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. 10. INDEMNIFICATION AND HOLD HARMLESS Indemnity for professional liability: When the law establishes a professional standard of care for Consultant’s Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including legal counsels’ fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. Indemnity for other than professional liability: Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City, and any and all of its officials, employees, and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsels’ fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or agency for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section from each and every subcontractor, or any other person or entity involved by, for, with, or on behalf of Consultant in the performance 191 [Consultant] Page 5 of 15 of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this Section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns, or heirs of Consultant and shall survive the termination of this Agreement or this Section. City does not and shall not waive any rights that it may have against Consultant by reason of this Section, because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless and indemnification provisions shall apply regardless of whether or not said insurance policies are determined to be applicable to any losses, liabilities, damages, costs, and expenses described in this Section. 11. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit A attached hereto and incorporated herein by this reference as though set forth in full. 12. INDEPENDENT CONSULTANT Consultant is and shall at all times remain as to the City a wholly independent Contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers or employees, or agents of the City except as set forth in this Agreement. Consultant shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 13. LEGAL RESPONSIBILITIES The Consultant shall keep itself informed of local, state, and federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations, including but not limited to the Americans with Disabilities Act and Occupational Safety and Health Administration laws and regulations. The Consultant shall comply with and sign Exhibit B, the Scope of Work 192 [Consultant] Page 6 of 15 Requirement for Professional Services Agreements Compliance with California Government Code Section 7550, when applicable. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. Should the Scope of Services include work that is considered a public work to which prevailing wages apply, the public work project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (DIR). Consultant agrees to comply with and be bound by all applicable terms, rules and regulations described in (a) Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, including without limitation Labor Code Section 1771 and (b) the rules and regulations established by the DIR implementing such statutes, as though set forth in full herein, including any applicable amendments made thereto during the term of this Agreement. For every subcontractor who will perform work on this project, Consultant shall be responsible for subcontractor’s compliance with (a) and (b), and Consultant shall take all necessary actions to ensure subcontractor’s compliance. Labor Code Section 1725.5 requires all contractors and subcontractors to annually register with the DIR before bidding or performing on any public work contract. 14. ANTI DISCRIMINATION Neither the Consultant, nor any subconsultant under the Consultant, shall discriminate in employment of persons upon the work because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status; or any other basis protected by applicable federal, state, or local law, except as provided in Section 12940 of the Government Code. Consultant shall have responsibility for compliance with this Section. 15. UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms, or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City will receive compensation, directly or indirectly from Consultant, or any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 16. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of the City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Services during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Services performed under this Agreement. 193 [Consultant] Page 7 of 15 17. CONFLICT OF INTEREST Consultant covenants that neither they nor any officer or principal of their firm have any interests, nor shall they acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, they shall employ no person having such interest as an officer, employee, agent, or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services directly or indirectly, with the developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or processing an entitlement application for property in the City or its Area of Interest, now or within the past one (1) year, and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any contract with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or processing an entitlement application for property in the City or its Area of Interest, while under contract with the City and for a one (1) year time period following termination of this Agreement. 18. NOTICE Any notice to be given pursuant to this Agreement shall be in writing, and all such notices and any other document to be delivered shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the party for whom intended as follows: To: City Manager City of Moorpark 799 Moorpark Ave. Moorpark, CA 93021 To: [CONSULTANT] [CONSULTANT ADDRESS] Either party may, from time to time, by written notice to the other, designate a different address or contact person, which shall be substituted for the one above specified. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the third (3rd) day after deposit in the United States mail. 19. CHANGE IN NAME Should a change be contemplated in the name or nature of the Consultant's legal entity, the Consultant shall first notify the City in order that proper steps may be taken to have the change reflected in the Agreement documents. 194 [Consultant] Page 8 of 15 20. ASSIGNMENT Consultant shall not assign this Agreement or any of the rights, duties, or obligations hereunder. It is understood and acknowledged by the parties that Consultant is uniquely qualified to perform the services provided for in this Agreement. 21. LICENSES At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services in this Agreement. 22. VENUE AND GOVERNING LAW This Agreement is made, entered into, and executed in Ventura County, California, and any action filed in any court or for arbitration for the interpretation, enforcement or other action of the terms, conditions, or covenants referred to herein shall be filed in the applicable court in Ventura County, California. The City and Consultant understand and agree that the laws of the state of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. 23. COST RECOVERY In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including attorneys’ fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. 24. ENTIRE AGREEMENT This Agreement and the Exhibits attached hereto contain the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material. 25. CAPTIONS OR HEADINGS The captions and headings of the various Articles, Paragraphs, and Exhibits of this Agreement are for convenience and identification only and shall not be deemed to limit or define the content of the respective Articles, Paragraphs, and Exhibits hereof. 195 [Consultant] Page 9 of 15 26. AMENDMENTS Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by both parties to this Agreement. 27. PRECEDENCE In the event of conflict, the requirements of the City’s Request for Proposal, if any, and this Agreement shall take precedence over those contained in the Consultant’s Proposal. 28. INTERPRETATION OF AGREEMENT Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. 29. WAIVER No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding unless executed in writing by the party making the waiver. 30. AUTHORITY TO EXECUTE The person or persons executing this Agreement on behalf of the Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of obligations hereunder. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF MOORPARK [CONSULTANT] __________________________________ __________________________________ Troy Brown, City Manager [NAME], [TITLE] Attest: __________________________________ Ky Spangler, City Clerk 196 [Consultant] Page 10 of 15 Exhibit A INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet requirements set forth here, Consultant agrees to amend, supplement, or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to the City in excess of the limits and coverage required in this Agreement and which is applicable to a given loss, will be available to the City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office (ISO) “Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate. Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability for each such person. Workers’ Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this Agreement. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in 197 [Consultant] Page 11 of 15 addition to policy limits. Policy shall contain a provision obligating insurer at the time insured’s liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to the City for injury to employees of Consultant, subconsultants, or others involved in the Work. The scope of coverage provided is subject to approval by the City following receipt of proof of insurance as required herein. Limits are subject to review but in no event less than $2,000,000 aggregate. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of A- or better and a minimum financial size of VII. General conditions pertaining to provision of insurance coverage by Consultant. Consultant and the City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds the City, its officials, employees, and agents, using standard ISO endorsement CG 2010 and CG 2037 with edition acceptable to the City. Consultant also agrees to require all contractors and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant’s employees, or agents, from waiving the right to subrogation prior to a loss. Consultant agrees to waive subrogation rights against the City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operation limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include limiting endorsement of any kind that has not been first submitted to the City and approved in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification, and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect the City’s protection without the City’s prior written consent. 198 [Consultant] Page 12 of 15 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant’s general liability policy, shall be delivered to city at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled or reduced at any time and no replacement coverage is provided, the City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other Agreement and to pay the premium. Any premium so paid by the City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at the City’s option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to the City of any cancellation or reduction of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation or reduction of coverage imposes no obligation, or that any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this Agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to the City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the Work who is brought onto or involved in the Work by Consultant, provide the same minimum insurance required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the Work will be submitted to the City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer, or other entity or person in any way involved in the performance of Work contemplated by this Agreement to self-insure its obligations to the City. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or self- insured retention must be declared to the City. At that time, the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to the City. 199 [Consultant] Page 13 of 15 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with an insurance requirement in no way imposes any additional obligations to the City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as the City, or its employees or agents face an exposure from operations of any type pursuant to this Agreement. This obligation applies whether or not the Agreement is canceled or terminated for any reason. Termination of this obligation is not effective until the City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to the City within five days of the expiration of coverage. 17. The provisions of any Workers’ Compensation or similar act will not limit the obligations of Consultant under this Agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to the City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all- inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts or impairs the provisions of this section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the Work reserves the right to charge the City or Consultant for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to the City. It is 200 [Consultant] Page 14 of 15 not the intent of the City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against the City for payment of premiums or other amounts with respect thereto. 22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this Agreement. The City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve the City. 201 [Consultant] Page 15 of 15 Exhibit B CITY OF MOORPARK Scope of Work Requirement for Professional Services Agreements Compliance with California Government Code Section 7550 Consultant shall sign and include this page in any document or written reports prepared by Consultant for the City of Moorpark (City) to which California Government Code Section 7550 (Government Code § 7550) applies. Government Code §7550 reads: “(a) Any document or written report prepared for or under the direction of a state or local agency, that is prepared in whole or in part by nonemployees of the agency, shall contain the numbers and dollar amounts of all contracts and subcontracts relating to the preparation of the document or written report; if the total cost for the work performed by nonemployees of the agency exceeds five thousand dollars ($5,000). The contract and subcontract numbers and dollar amounts shall be contained in a separate section of the document or written report. (b) When multiple documents or written reports are the subject or product of the contract, the disclosure section may also contain a statement indicating that the total contract amount represents compensation for multiple documents or written reports.” For all Professional Services Agreement with a total dollar value in excess of $5,000, a signed and completed copy of this form must be attached to all documents or completed reports submitted to the City pursuant to the Scope of Work. Does the dollar value of this Professional Services Agreement exceed $5,000?  Yes  No If yes, then the following information must be provided in compliance with Government Code § 7550: 1. Dollar amount of Agreement/Contract: $ ____________ 2. Dollar amount of Subcontract: $ ____________ 3. Does the total contract amount represent compensation for multiple documents or written reports?  Yes  No I have read the foregoing Code section and will comply with Government Code §7550. __________________________________ ______________________ Date 202 City of Moorpark | California Proposal for Special Tax Consulting Services 203 T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com February 16, 2023 Mr. Jeremy Laurentowski Parks and Recreation Director City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Re: Proposal for Special Tax Consulting Services - Vendra Gardens by Danco Communities Dear Jeremy: Per our correspondence and your request, the following outlines Willdan Financial Services’ (“Willdan”) proposal to assist with the formation of a Community Facilities District (“CFD”), for the funding of maintenance services for improvements installed in association with the Vendra Gardens project, by Danco Communities in the City of Moorpark (“City”). The scope and budget within the attached outlines the tasks necessary for the preparation of the budget for costs associated with maintenance of the improvements, special tax analysis, preparation of required documents, including the Rate and Method of Apportionment of Special Tax (RMA) and CFD Report, and the completion of the procedural tasks necessary to execute the formation of the proposed CFD. It also includes an optional scope of services to review and update the City’s existing CFD Goals and Policies, in the event modifications need to be made. We look forward to this opportunity to work with you on this project. Please feel free to contact me directly at (951) 587-3528, or via email at cfisher@willdan.com if you have any questions regarding this submission. Sincerely, WILLDAN FINANCIAL SERVICES Chris Fisher Vice President / Director Financial Consulting Group 204 Special Tax Consulting Services ii City of Moorpark, CA Table of Contents SCOPE OF SERVICES ...................................................................................................................................................... 1 Project Approach ....................................................................................................................................................... 1 Community Facilities District Formation .................................................................................................................... 1 Goals and Policies ..................................................................................................................................................... 2 CFD Formation .......................................................................................................................................................... 2 Client Responsibilities ............................................................................................................................................... 3 Project Disclaimer ...................................................................................................................................................... 4 FEE FOR SERVICES .......................................................................................................................................................... 5 Community Facilities District Formation .................................................................................................................... 5 Additional Services .................................................................................................................................................... 5 QUALIFICATIONS AND EXPERIENCE .................................................................................................................... 6 Firm Profile ................................................................................................................................................................ 6 Willdan Financial Services ........................................................................................................................................ 6 Unique Experience, Resources, and Capabilities ..................................................................................................... 7 Special District Experience ........................................................................................................................................ 7 Resources and Capabilities ....................................................................................................................................... 7 Quality Assurance Process ....................................................................................................................................... 8 Recent Formation Projects ........................................................................................................................................ 9 PROJECT TEAM ................................................................................................................................................................ 11 Staff Continuity ........................................................................................................................................................ 11 Chris Fisher ............................................................................................................................................................. 12 Mike Medve ............................................................................................................................................................. 14 Tyler Green .............................................................................................................................................................. 16 REFERENCES .................................................................................................................................................................... 17 205 Special Tax Consulting Services 1 City of Moorpark, CA Scope of Services We understand that the City of Moorpark (“City”), wishes to form a Community Facilities District (“CFD”), in conjunction with a new multi-family residential development, Vendra Gardens by Danco Communities. The CFD will be formed to provide funding for maintenance services related to lighting and landscaping amenities installed within parkway, slope, street, and basin areas associated with the project. Project Approach Our approach to this CFD formation includes and starts with a review of the City’s existing Goals and Policies. We will review to ensure they are consistent with the goals of this proposed CFD, and if necessary, amend and update them. Following this, the work then proceeds immediately with the necessary analysis and steps to establish the proposed district. The formation will be driven by a budget that will be developed to include the annual costs for maintaining the improvements designated for inclusion in the CFD. Willdan will gather data related to the services to be funded with the CFD and create a budget and a comprehensive special tax analysis. This analysis will consider the types and quantities of property proposed for inclusion in the CFD, and the level of special tax burden they can bear. We will gather necessary data for this analysis directly from developers (property owners), as well as from the City, County, and other sources, as necessary. By identifying the level to which properties can be fairly and equitably taxed, we will develop a special tax model that will accurately forecast the aggregate special tax revenue that can be generated and, therefore, guide the development of a budget for the proposed services; and assist in decision making about, ultimately, which services are approved. The budget and special tax analysis will be presented to, and discussed with, City staff; and feedback will be incorporated (as required). Once the analysis is finalized, we will use this as the foundation for the development of the special tax methodology and, ultimately, the Rate and Method of Apportionment of Special Tax (“RMA”). Finally, we will coordinate each step of the formation process and assist in the recordation of necessary documents with the County. Below is Willdan’s proposed scope of services described in detail. We want to ensure that the following is responsive to the needs of the City, and we will work with City staff to revise our proposed work plan based on input prior to approval of a contract, and as needed during the course of the project. Our scope of services has been separated as follows: ▪ Review of CFD Goals and Policies; and ▪ CFD Formation. Community Facilities District Formation The following outlines the steps associated with the formation of a CFD for the funding of maintenance services. Project Kick-off Meeting Following receipt of an authorization to proceed, we will discuss the process and objectives for this formation with the City and identify additional documents or information that may be needed. This discussion may include developers/landowners and/or their representatives. As needed throughout the project, we will coordinate with the City, City staff, and directly with the developer(s), their consultants to gather required information for the proceedings. Specifically, the kickoff discussion will include the following: ▪ Confirmation of the objectives of the CFD formation; ▪ Confirmation of the services to be funded by the CFD; ▪ Discussion of necessary data, its sources and availability; ▪ Outlining the process and steps necessary for the formation; ▪ Development of a draft timeline of events and milestones; ▪ Identification of key participants and areas of responsibility; and ▪ A general discussion of potential challenges or obstacles, whether practical (lack of data), political, public (perception or acceptance) or other. 206 Special Tax Consulting Services 2 City of Moorpark, CA Goals and Policies Goals and Policies Review Based on the discussions during the kick-off meeting, Willdan will review existing CFD Goals and Policies. These City policies for the formation and use of CFDs must be approved by the legislative body prior to the formation of any CFDs. It sets policies for the formation of CFDs in the City, including limits to the cumulative effective tax rate of properties within the district, value-to-lien requirements, and other aspects of the CFD formation process. The draft document will be provided to and discussed with City staff to ensure that it is an accurate reflection of the agency’s intent. Changes will be made as necessary, and the document will be submitted to the City Council for approval. Policies are typically approved in conjunction with the first required m eeting of the formation process (the Resolution of Intention – see below). CFD Formation Background Research Willdan will work with the developer and City staff to identify and develop a full listing of services to be funded by the CFD and prepare a narrative description to be included in the Community Facilities District Public Report. Willdan will research property ownership and development plans. In addition, Willdan will contact the County Registrar's Office to confirm the number of registered voters within proposed district boundaries to ensure there are less than twelve (12) registered voters, which will allow for a landowner election. Preliminary Cost Analysis and Development of Tax Methodology Willdan will work with the City and the developer/property owner to prepare a list of the maintenance and service activities to be included in the CFD and develop an annual budget for the costs associated with these activities. The budget will include the direct costs of the activities (i.e., landscape maintenance, basin maintenance, street/road maintenance) as well as incidental costs associated with City Staff support and coordination. This budget will then be used to create the special tax analysis and eventually, the RMA. A preliminary pro forma of the CFDs revenues and estimated expenses (based upon preliminary budget estimates prepared as part of this task) will be presented for evaluation and discussion. We will construct a special tax analysis that will be designed to identify the costs and special tax revenue that can be generated from property proposed for inclusion in the district. Our analysis will incorporate the proposed property development planned for the current project. In addition, we will utilize pricing and market data to determine proposed tax burden on the development. The analysis will be based upon available product mix data, market research, discussions with property owners and developers, and the City. Once we complete the development of the budget and special tax revenue projections, we will use this to create the special tax methodology that will be included in the RMA. The maximum proposed special taxes will be designed to generate sufficient revenue to meet CFD objectives and fairly tax expected properties consistent with established development requirements and policies. If requested, Willdan will prepare multiple spreads that are based upon different service and taxation assumptions. Willdan will develop special tax categories for property types within the CFD and the special tax structure for the RMA based on the boundaries of the CFD, operation and maintenance services to be funded, and proposed development. An analysis will be required to determine an equitable spread of the overall burden, taking into account the nature of the services and the area that they will serve. Rate and Method of Apportionment of Special Tax (RMA) Based on the work completed in the preceding tasks, a n RMA of Special Tax for the Resolution of Inte ntion will be prepared and, if necessary, will include improvement areas and/or tax zones to ensure maintenance and operations costs for properties within the CFD are equitably apportioned. The RMA will clearly describe the special tax methodology developed in the preceding step, the associated definitions, priority, and method by which properties in the CFD will be taxed, the special tax rates for each property type, and contain other information (as required) by the Mello -Roos Community Facilities Act of 1982. This document will be included with the Resolution of Intention , which is adopted by the City Council to initiate the CFD formation process. 207 Special Tax Consulting Services 3 City of Moorpark, CA Community Facilities District Report Willdan will prepare a preliminary CFD Report that includes a descriptio n of the public improvements to be maintained or services to be provided, cost estimates related to these activities, incidental expenses, the RMA, and other information necessary to meet the requirements of the Mello-Roos Community Facilities Act. If requested, Willdan will present the CFD Report to the City Council and field questions received at the Public Hearing. The CFD Report will include the following components: ▪ A description of the proposed services and maintenance to be funded; ▪ Cost estimates; and ▪ A projection and explanation of the annual special tax rates by special tax classification for each year that services are funded. Document Review and Preparation If requested, Willdan will prepare drafts of the required Petition, Consent and Waiver documents, and notices/ballots for review, or coordinate with and support the City’s legal counsel to complete these documents. Willdan will prepare a boundary map of the proposed area to be included in the CFD that meets the requirements of the Community Facilities Act and the City’s Goals and Policies. At the City’s request, Willdan will prepare a presentation to City Council for the Intent Meeting. Willdan will print the final boundary map after the Intent Meeting on the material and size required by the County of Ventura and coordinate recordation of the boundary map with the City and the County Recorder. Willdan will prepare the letter and exhibit for confirmation of the number of registered voters from the County of Ventura and obtain certification of findings. Public Hearing and Notice of Special Tax Lien At the City’s request, Willdan will prepare a presentation to City Council for the election meeting/Public Hearing. After successful formation of the CFD, Willdan will then coordinate the recordation of the “Notice of Special Tax Lien.” If the City is unable to garner 100 percent consent waiver from the affected property owners and a regular special tax election is required, the City attorney or designated legal counsel will be responsible for preparing the required impartial analysis and ballot arguments with Willdan’s assistance in coordinating the process. After successful formation of the CFD, Willdan will coordinate the recordation of the "Notice of Special Tax Lien." Formation Project Meetings While we expect that the majority of communications and sharing of information for this project may be cond ucted via e-mail and conference calls, our proposed scope of services anticipates the need for Willdan to attend two (2) in-person meetings. These include the Council meeting for the adoption of the Resolution of Intention, and the Council meeting for the adoption of the Resolution of Formation and Election/Public Hearing. Client Responsibilities As we do not practice law, we ask that your attorney, or other designated counsel, review the documents Willdan prepares. We will, however, assist your attorney in identifying pertinent legal issues and modifications necessary before the documents are implemented. For the formation of a special district the City will be responsible for providing the following items, some of which Willdan may already have: ▪ Copies of the City's Goals and Policies for CFDs. ▪ Proposed project development information, including (as applicable): o Detailed development plans. o Data on proposed product mix (e.g., residential, etc.). o Estimated construction and absorption schedules. 208 Special Tax Consulting Services 4 City of Moorpark, CA o Maps and/or diagrams of the proposed project area. ▪ Various maps of the area (either electronically or in hardcopy, as needed) for the development of the budget and special tax analysis, including: o Boundary maps, o General Plan maps, o Zoning maps, o Assessor parcel maps, o Improvement maps indicating the design and location of the proposed facilities, o Subdivision maps, or o Related development diagrams. ▪ Pertinent budget information, including but not limited to estimated/projected per capita staffing and expenses, anticipated maintenance costs, and City overhead and/or administration. ▪ Samples of sufficiently detailed resolutions (in an electronic format) to establish the required format for preparation of the CFD resolutions by Willdan. ▪ Publication of City Council meetings/public hearings notices in the local newspaper. ▪ Review of draft RMA, reports, and resolutions prior to the preparation of final documents. This review is, typically, performed by City staff; but may also include a review by the City's legal counsel. ▪ Opinions (as requested) from the City attorney's office. The City further acknowledges that Willdan shall be relying upon the accuracy and validity of the information provided by the City, developer, and County of Ventura Assessor, and agrees that Willdan shall not be liable for any inaccuracies contained therein. Project Disclaimer The City of Moorpark further represents, acknowledges, and agrees that: (i) The City uses the services of one or more municipal advisors registered with the U.S. Securities and Exchange Commission (“SEC”) to advise it in connection with municipal financial products and the issuance of municipal securities; (ii) The City is not looking to Willdan to provide, and the City shall not otherwise request or require Willdan to provide, any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues); (iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder; (iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash -flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumpt ions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and (v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services. 209 Special Tax Consulting Services 5 City of Moorpark, CA Fee for Services Community Facilities District Formation As described in the Scope of Services section, Willdan will provide CFD formation services for the not-to-exceed fee amounts: ▪ Goals and Policies review and update – $1,680 ▪ Completion of CFD formation, including development of budget, special tax analysis, RMA, and formation procedures – $23,750 Please Note: ▪ The fee denoted above will not be contingent upon the outcome of the formation process. ▪ Additional meetings or tasks outside our proposed scope of work will require an additional fee. ▪ For the purpose of our proposal, telephone conference calls are not considered “meetings” and are not limited by our scope of services. ▪ The City will be invoiced on a monthly percentage-completion basis. ▪ The City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to the Project. Reimbursement shall be at Willdan 's rates in effect at the time of such response. Additional Services Additional services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates. Our current hourly rates are: Willdan Hourly Rate Schedule Position Team Member Hourly Rate Group Manager Chris Fisher $250 Managing Principal $240 Principal Consultant Mike Medve $210 Senior Project Manager $185 Project Manager $165 Senior Project Analyst $135 Senior Analyst $125 Analyst II Tyler Green $110 Analyst I $100 210 Special Tax Consulting Services 6 City of Moorpark, CA Qualifications and Experience Firm Profile Willdan Financial Services, a California Corporation, is an operating division within Willdan Group, Inc. (WGI), which was founded in 1964 as an engineering firm working with local governments. Today, WGI is a publicly traded company (WLDN). WGI, through its divisions, provides professional technical and consulting services that ensure the quality, value and security of our nation’s infrastructure, systems, facilities, and environment. The firm has pursued two primary service objectives since its inception—ensuring the success of its clients and enhancing its surrounding communities. A financially stable company, Willdan has approximately 1,400 employees working in more than a dozen states across the U.S. Our employees include a number of nationally recognized Subject Matter Experts for all areas related to the broadest definition of connected communities—three of whom are committed to contribute their expertise throughout the duration of the City of Moorpark’s Special Tax Consulting Services engagement. Willdan has solved economic, engineering and energy challenges for local communities and delivered industry -leading solutions that have transformed government and commerce. Today, we are leading our clients into a future accelerated by change in resources, infrastructure, technology, regulations, and industry trends. Willdan Financial Services Established on June 24, 1988, Willdan Financial Services is a national firm, and is one of the largest public sector financial consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of financial challenges, such as financing the costs of growth and generating revenues to fund desired services. Our staff of nearly 80 full-time employees supports our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise. Willdan assists local public agencies by providing the following services: Willdan Financial Services Services ▪ Tax increment finance district formation and amendment; ▪ Utility rate and cost of service studies; ▪ User fee studies; ▪ Cost allocation studies; ▪ Real estate economic analysis; ▪ Property tax audits; ▪ Housing development and implementation strategies; ▪ Development impact fee establishment and analysis; ▪ Economic development strategic plans; ▪ District administration services; ▪ Municipal advisory services; ▪ Feasibility studies; ▪ Arbitrage and continuing disclosure services; ▪ Debt issuance support; and ▪ Long-term financial plans and cash flow modeling. 211 Special Tax Consulting Services 7 City of Moorpark, CA Unique Experience, Resources, and Capabilities Special District Experience Since our inception, Willdan has offered public agencies a comprehensive approach to special district consulting by including district formation and administration; delinquency management; continuing disclosure; and arbitrage rebate in our service offerings. This multi-service approach allows us to facilitate the flow of information between the different service areas, which creates less of a draw on agency staff time and reduces costs for these services. It also ensures that solutions and approaches provided in one area of work are consistent with overall policies and objectives. For instance, we form special districts with specific features to allow for ease of administration, as well as future annexations of new developments to the district. Finally, methodologies are created in a manner that allows for consistent application of agency policies from project to project. In view of our experience, Willdan is committed to: ▪ Having highly qualified core staff actively involved in day-to-day operations; ▪ Providing comprehensive and proactive customer service; ▪ Interfacing in a friendly and helpful manner with an agency’s governing body, staff, community organizations, and the public in general; ▪ Keeping up to date on the latest technology that allows specific data to be made available via the Internet to public agency staff, investors, and property owners at no additional charge; ▪ Staying current on legislation impacting the formation and administration of CFDs, such as SB 165, AB 2851 (annual reporting requirements), and AB 373 (recent modifications to Mello -Roos law); and ▪ Closely following legislation and legal proceedings involving assessments and other types of special districts, particularly issues related to Proposition 26 and 218. In utilizing our broad range of experience, amassed over 30 years from supervising and being consistently at the forefront of innovative approaches to special district formation and administration services, our methods and approaches support practical requirements. In fact, we have prepared Engineer’s Reports and Special Tax Reports for over 800 separate special districts, including Business Improvement Districts, 1972 Act Landscaping and Lighting Districts, Mello-Roos Community Facilities Districts (CFDs) and 1982 Act and 1913/15 Act Assessment Districts formed to finance infrastructure improvements and/or services and maintenance. Furthermore, Willdan possesses extensive experience developing budgets and forming CFDs and Assessment Districts for a variety of purposes. Resources and Capabilities Firm Resources Willdan assists local public agencies by providing formation services for Community Facilities Districts and assessment/local improvement districts; administration of special taxes, assessments, stan dby charges and utility rates, landscaping and lighting districts; arbitrage rebate calculations; continuing disclosure reports preparation and dissemination; and staff augmentation support. We have been providing these services for over 34 years; decades later, Willdan continues to be a leader. Consideration of Practical and Administrative Matters in Special District Formations We understand the complexities involved in developing a special tax methodology that is tailored to address the specific objectives of the project and balancing that with the desire to simplify the future administration of the CFD. The tax formula should be able to accommodate multiple land uses and multiple funding purposes, and possibly account for potential future development and annexations to the CFD, while also being straightforward to apply. Our district formation experience coupled with more than 30 years of providing administration services for special taxes and assessments is unmatched, allowing us to approach formations in a holistic manner. Provisions and features can be incorporated into the CFD methodology that ensure the proposed district balances the funding needs of the project, while clarifying and simplifying future management and administrative tasks and processes. We create documentation and applicable methodology in an understandable and practical manner that may be easily interpreted for ongoing administration of the district. Willdan has prepared Engineer’s Reports and Special Tax Reports for over 800 separate special districts 212 Special Tax Consulting Services 8 City of Moorpark, CA Serve as an Extension of Staff Willdan takes to heart the fact that we represent the Client when working and/or speaking with residents, business owners, developers and with other industry professionals such as underwriters, bond counsel and appraisers. Our goal is to take care of and effectively manage the special district formation and administration process, so that staff can focus on other responsibilities. We actively manage projects with a focus on the overall timeline, so that staff is provided timely and accurate work products without having to expend valuable time managing the proce ss more than necessary. One of our most important roles has been educating and helping staff to understand Community Facilities District concepts, how they apply to the special district processes and procedures, and how they can help the agency achieve primary financial objectives. Willdan will impart our knowledge to key staff through education and day -to-day efforts throughout the project and beyond. Quality Assurance Process Willdan’s standard administration practice includes an additional three levels of review for our products and deliverables in which report presentation or work product dissemination is scrutinized, levy data is updated from the most recent county secured roll information, all parcel changes and potential rejects are researched and r econciled, new APNs are identified, and the proposed assessment/tax amounts are recalculated and resubmitted. As demonstrated by the workflow chart to the right, Willdan staff performs for all work products primarily consist of: ▪ Peer review; ▪ Project manager review; and ▪ Final quality assurance manager review. In addition, another key to our success is having a designated principal consultant responsible for implementing quality control measures. Mr. Robert Quaid, a former Certified Public Accountant, has been instrumental in preparing quality control checklists and sign-off mechanisms for each of our administration services. These quality control measures are embedded in the latest evolution of MuniMagic+ and are a required element of the day-to-day analyst and project management activities within the group. 213 Special Tax Consulting Services 9 City of Moorpark, CA Recent Formation Projects Identified in the table below is a partial list of recent Willdan formation projects that are currently in process or completed in the previous five years. Willdan Financial Services Recent CFD Formations Agency Name Project/District Name California Statewide Communities Development Authority, CA Atwell CFD 2020-02 IA 1 (Facilities) (Facilities, Maintenance and Services) City of Banning, CA Atwell CFD 2020-02 IA2 (Facilities, Maintenance and Services) City of Banning, CA Atwell CFD 2020-02 IA 3 (Facilities, Maintenance and Services) City of Banning, CA McSweeny Farms CFD (Facilities) City of Hemet, CA Horsecreek Ridge 2017-01 (Facilities) San Diego County Citro CFD 2021-1 (Facilities) San Diego County, CA City of Chula Vista, CA CFDs 18-I & 18-M (Bayfront) (Facilities & Services) CFD 97-2 (Services) CFD 13-M (Services) CFD 16-I (Millennia) (Facilities) CFD 17-I (Western CV Infill) City of Colton, CA CFD 2021-1 (Services) CFD 2021-2 (Services) City of Galt, CA Liberty Ranch CFD Formation (Facilities) CFD 2020-1 (Public Services) City of Gonzales, CA Enhanced Infrastructure Financing District City of Lancaster, CA CFD 2021-1 (Services) City of Moorpark, CA CFD 2018-1 (Pacific Arroyo) City of Palm Desert, CA University Park CFD 2005-1 Refunding and 2021-1 Formation (Facilities) City of Perris, CA Green Valley (Facilities) CFD 2021-1 (Facilities) CFD 2022-1 (Facilities) CFD 2022-2 (Facilities) City of Rancho Mirage, CA CFD #4A (Facilities) CFD #4B (Facilities) CFD #4C (Facilities) CFD #5 (Facilities) 214 Special Tax Consulting Services 10 City of Moorpark, CA Willdan Financial Services Recent CFD Formations Agency Name Project/District Name City of Rialto, CA CFD 2019-2 (Foothill/Spruce) (Facilities) CFD 2020-1 (El Rancho Verde) (Facilities) City of Richmond, CA Point Molate CFD No. 2022-1 City of Santa Paula, CA CFD Nos. 1 & 2 (Harvest at Limoneria) Formation (Services/Facilities) City of Upland, CA Sycamore Hills CFD (2015-1) (Facilities) Harvest CFD (2016-1) (Facilities) 2017-1 (Services) 2017-2 (Services) Enclave (2022-1) (Facilities) County of San Diego, CA CFD 2008-01 (Harmony Grove Village IA 1) (Facilities) CFD 2008-01 (Harmony Grove Village IA 2) (Facilities) CFD 2008-01 (Harmony Grove Village) Special Tax B (Flood, Non-flood, Fire Protection) Sweetwater CFD Formation (Services) Park Circle CFD Formation (Services) Meadowood CFD Formation (Services) Horse Creek Ridge CFD Formation (Services) Piper Otay CFD Formation (Services) Otay 250 CFD Formation (Services) Contra Costa County Fire Protection District, CA CFD 2022-01 (Antioch Fire Services) (Services) Cucamonga School District, CA CFD 2019-1 (Facilities) Marin County Open Space District, CA CFD 2022-1 (Facilities) San Jacinto Unified School District, CA CFD 2020-1 (Facilities) CFD 2021-1 (Facilities) CFD 2022-1 (Facilities) Sulphur Springs School District, CA CFD 2019-1 (Facilities) 215 Special Tax Consulting Services 11 City of Moorpark, CA Project Team Our management and supervision philosophy is simple: staff every position with experienced personnel to deliver a superior product and deliver effective results on time and on budget. With that philosophy in mind, we have selected the following individuals for this engagement. Our employees know and understand the problems facing local government under the current economic climate, and we have oriented our practice to support an agency’s modified budget policies and public service priorities. City of Moorpark Project Team Key Team Member Project Role Responsibility to the Engagement Chris Fisher Vice President/Director Principal-in-Charge ▪ Technical guidance; ▪ Project oversight; ▪ Quality assurance & control; and ▪ Meeting and presentation attendance. Mike Medve Principal Consultant Project Manager ▪ Task oversight; ▪ Produce key elements of the analyses; ▪ Responsible for project deliverables; ▪ Report evaluation; and ▪ Meeting and presentation attendance. Tyler Green Analyst Financial Analyst ▪ Collect, interpret, and analyze key data; ▪ City staff coordination; ▪ GIS files parcel database linkage; ▪ Report preparation; and ▪ Meeting and presentation attendance. Staff Continuity Mr. Fisher has been assigned to serve as the City’s Principal-in-Charge; he has been selected for this role due to his extensive experience, which includes the preparation and supervision of numerous studies, as well as his experience presenting to govern ing bodies, stakeholders, and industry groups. Willdan as a whole is composed of over 1,500 employees, including a cadre of public finance experts. If necessary, Mr. Fisher can recruit additional, qualified individuals from our employee roster to assist with the completion of the engagement to deliver the final materials on time and within budget. The team presented within this proposal has worked collectively on numerous projects, such as the one requested by the City of Moorpark; an established work practice between the team members has been forged, this proven long-standing system has benefited our clients. It is important to note that Mr. Fisher has been with Willdan for over 23 years, ensuring the City of Moorpark of continuity and dedication in staffing during the completion of the project. 216 Special Tax Consulting Services 12 City of Moorpark, CA Chris Fisher Principal-in-Charge With over 23 years of experience at Willdan, Mr. Fisher has managed an array of financial consulting projects for public agencies in California, Arizona, Colorado, Texas, and Florida, coordinating the activities of resources within Willdan, as well as those from other firms working conjointly on projects. He is one of the firm’s leading experts for special district financing related to public infrastructure, maintenance, and services including public safety. Relevant Project Experience City of Chula Vista, CA ‒ Formation of CFD 16-I (Millenia), 17-I (Western Chula Vista CFD), 18-M (Otay Ranch Village 3) and Bayfront CFD: Mr. Fisher has assisted the City in each of the listed CFD formations. The first, CFD 17-I, was formed to allow for the financing of impact fees over an extended time period through the payment of a special tax, to facilitate development of non-residential projects in certain areas of the City. This formation was completed in the Spring of 2016. The second project, CFD 16-I, was completed to provide funding for the construction of basic infrastructure associated with the Millenia development project in the City. Formation was completed in September 2016, with bonds sold in late 2016/early 2017. CFD 18-M was formed to provide funding for the maintenance of landscaping, trails, walls, and storm water facilities in the Otay Ranch Village 3 development project. For each formation, Mr. Fisher worked with City staff in multiple departments and a diverse financing team including the financial advisor, legal counsel, developers and property owners, and developer’s consultants. Mr. Fisher is currently overseeing the completion of a CFD for the Bayfront Project, a multi-use project being developed in conjunction with the San Diego Port Authority, which will include a convention center, hotel, and multi-family property. County of San Diego, CA – Special Tax Consulting: Mr. Fisher is currently serving as the County’s Special Tax Consultant for CFDs formed within unincorporated areas. To meet the demands of continued growth within the County, he assisted with the formation of CFD 2013- 1 (Horse Creek Ridge), CFD 2017-1 (Hillside Meadows), CFD 2018-2 (Park Circle), CFD 2019- 1 (Meadowood), and CFD 2019-2 (Sweetwater Place). All of these CFDs will provide funding for services and improvements ranging from maintenance and monitoring of flood control improvements, maintenance of parks, park facilities and landscaping, and provision of fire protection services to necessary capital improvements. City of Rancho Mirage, CA – Special Tax Consulting: Mr. Fisher oversaw the Willdan team that completed the formation of CFDs in 2018 through 2020 for the City and is currently working on the formation of a third CFD (4C). He worked closely with the team to provide technical assistance based on prior project experience and provide quality review. The two CFDs (4A and 4B) were formed in association with the development of a Del Webb residential pro ject in the City to provide for funding of backbone infrastructure required for the development, and for payment of certain development fees required by the City. Willdan’s work included preparation of the special tax and pro forma analyses, development of the tax methodology and preparation of the Rate and Method of Apportionment of Special Tax document, preparation of the CFD Report and other associated documents, and coordination of the formation process. City of Upland, CA – Special Tax Consulting: Mr. Fisher oversaw the Willdan project team that assisted the City of Upland with initial formation of the Sycamore Ranch CFD, and its eventual modification to adapt to a change in the plan for development and product mix. He worked closely Willdan’s team to provide guidance and advice in the development of the methodology and approach, and to review documents and work product. California Statewide Communities Development Authority – Special District Formations: For over 10 years, Mr. Fisher managed district formation projects in conjunction with CSCDA and their financing team. Recent projects include the Horse Creek Ridge CFD in San Diego County (2018), the McSweeney Ranch CFD in the City of Hemet (2019), and the Butterfield Ranch (Atwell) CFD in the City of Banning. Education Bachelor of Science in Finance, San Francisco State University Areas of Expertise Multi-disciplinary Team Management Special District Formations Cost of Service Studies Proposition 218 Utility Rate Studies Client Presentations Affiliations California Society of Municipal Finance Officers Municipal Management Association of Northern California California Municipal Treasurers Association 23 Years’ Experience 217 Special Tax Consulting Services 13 City of Moorpark, CA City of Banning, CA – Fiscal Analysis and CFD Formation Services: As technical advisor, Mr. Fisher oversaw the preparation of a comprehensive fiscal impact analysis and facilities funding plan in association with the Butterfield Specific Plan Area within the City. The Specific Plan area covers 1,543 acres and is proposed to include more than 5,000 homes of varying densities, 36 acres of commercial development, over 400 acres of open space, schools , and a utility substation. He also provided technical and policy guidance as well as quality review. City of Laguna Beach, CA – Formation of Assessment District No. 08-01: Mr. Fisher served as the project manager for the City of Laguna Beach Assessment Engineering Services project, for its proposed Underground Utility Assessment District. For this effort Mr. Fisher collaborated with Willdan’s Engineering division and included coordination with City staff and a diverse project team. This formation required the preparation of dr aft and final Engineer’s Report for the district, along with related documentation and analysis, and presentation of these items. The initial formation was unsuccessful; however, the district was formed with modifications. City of Moreno Valley, CA – CFD No. 7, Storm Drain and Street Improvements: As project manager, Mr. Fisher oversaw the formation of a CFD to finance the construction of storm drain and street infrastructure improvements for an industrial/warehouse project in the City. Recently worked with the City to modify the RMA for the CFD and support the financing team in the issuance of $3.625MM in bonds. City of Gonzales, CA – Tax Increment/Special Tax Consulting: Mr. Fisher served as the principal-in-charge of the City of Gonzales engagement. He worked closely with the project manager to provide guidance and advice. City of Yucaipa, CA – Tax Increment/Special Tax Consulting: Mr. Fisher served as the principal-in-charge of the City of Yucaipa engagement. C. Fisher Resume Continued 218 Special Tax Consulting Services 14 City of Moorpark, CA Mike Medve Project Manager Mr. Mike Medve is a principal consultant, with 16 years of experience, in the Financial Consulting Services group, with expertise in public finance, including special district formation and administration, fiscal impact analysis, public facilities financing plans, integrated financing districts, Proposition 218, tax credit financing, state and federal grant and loan p rograms, sales tax revenue bonds, and infrastructure financing districts. He has developed financial pro formas and cash flow analyses for numerous types of public and private project financing programs. Prior to joining Willdan, Mr. Medve was a consultant in the field of public finance for Parsons Brinckerhoff and David Taussig & Associates. Over the years, he has been a financing team member for over $150 million in limited obligation bonds and over $50 million in grant funds. He has served as the lead consultant for over two dozen clients, both public and private, throughout the country. Relevant Project Experience City of Rancho Mirage, CA – Special Tax Consulting: In 2018 and 2019 Mr. Medve assisted the City with the formation of CFD 4A and CFD 4B, bot h of which were formed in association with the development of a Del Webb residential project in the City. He is also working on the current formation of CFD 4C. The CFDs were formed to provide for funding of backbone infrastructure required for the development, and for payment of certain development fees required by the City. Willdan’s work included preparation of the special tax and pro forma analyses, development of the tax methodology and preparation of the Rate and Method of Apportionment of Special Tax document, preparation of the CFD Report and other associated documents, and coordination of the formation process. City of Upland, CA – Special Tax Consulting: In 2015 through 2019 Mr. Medve assisted the City of Upland with the initial formation of a CFD, the change proceedings that were subsequently conducted to amend the CFD to accommodate a change in the plan of development, and finally with the issuance of bonds associated with the CFD. He worked closely with the City and its financial advisor to ensure the CFD was formed in a manner that met the City’s requirements and financing objectives. The CFD was created to equitably spread the cost of the infrastructure being financed through a methodology that was equitably applied to various types of residential development in the project. Cucamonga School District, CA – Special Tax Consulting: Managing the project, Mr. Medve recently completed the formation of CFD 2019-1 for the Cucamonga School District. The CFD was formed to provide ongoing funding for school facilities and payment of school fees associated with the development of property with the School District’s boundaries. City of Roseville, CA – Special Tax Consulting: In 2014, Mr. Medve prepared an Amended Notice of Special Tax Lien for the City’s Fiddyment Ranch CFD No. 1 (Facilities) and Fiddyment Ranch CFD No. 2 (Services). The amendment was necessary to reconcile changes in project land use with the special tax revenues that were needed to pay debt service and administration on outstanding infrastructure bonds and fund the annual operations and maintenance of existing facilities. In 2015, Willdan was retained to serve as Special Tax Consultant for the formation of an overlay CFD (Fiddyment Ranch CFD No. 5) that will refund a portion of the CFD No. 1 bonds and pay for additional infrastructure projects associated with the development. Facilities needed include streets, bridges, sewer improvements, storm drains, water infrastructure and landscaping. Willdan has also performed the annual administration for the City’s CFDs for over a decade. City of Galt, CA – Special Tax Consulting: Mr. Medve is serving as project manager for the City of Galt Liberty Ranch Community Facilities District formation. The project consists of approximately 356 acres of land, and the proposed CFD would finance a range of City services and maintenance activities. Education Bachelor of Science Information and Computer Science, Management and Mathematics Minors, Cum Laude University of California Irvine Areas of Expertise Public Finance Public Facility Financing Special District Formation and Administration Proposition 218 New Markets Tax Credits Grant Writing 16 Years’ Experience 219 Special Tax Consulting Services 15 City of Moorpark, CA City of Murrieta, CA – Special Tax Consulting: Mr. Medve assisted the City of Murrieta with change proceedings related to the existing CFD No. 2005-5 for the Golden Cities project. The CFD was modified to accommodate new sales prices and a new product mix. County of San Diego, CA – Special Tax Consulting: Mr. Medve is currently assisting the County with their special tax consulting projects, specifically CFDs formed within unincorporated areas. He assisted in the formation of the Horse Creek Ridge and Hillside Meadows CFDs and is currently involved with the application review and initial steps of forming three additional CFDs that will fund services and improvements ranging from flood control maintenance and fire protection services to necessary capital improvements. He also has assisted in additional follow-on special tax analysis for the Harmony Grove CFD, and in the annexation of new territory to that CFD. He is also assisting with the replacement of an existing Permanent Road Division special assessment with a special tax to fund street rehabilitation and maintenance. City of Gonzales, CA – Tax Increment/Special Tax Consulting: Mr. Medve provided consulting services related to the formation of one of the State’s first Enhanced Infrastructure Financing Districts (EIFD). The EIFD’s tax-sharing plan has been approved by both the City of Gonzales and the County of Monterey, bringing millions in funding to an area that will be annexed to the City and developed into a high-tech office park and research center. He also assisted the City with its Cost Allocation Plan and Comprehensive User Fee update. City of Yucaipa, CA – Tax Increment/Special Tax Consulting: Mr. Medve provided consulting services related to the formation of one of the State’s first Enhanced Infrastructure Financing Districts (EIFD) to assist in funding infrastructure needed to serve a retail and office park surrounding Crafton Hills college. While the formation of the EIFD is still pending, Mr. Medve prepared several feasibility analyses related to the formation, as well as the financial analysis and fiscal impact analysis that will be incorporated into the Infrastructure Financin g Plan. City of Laguna Beach, CA – Utility Undergrounding District Formation: Mr. Medve has assisted the City with four undergrounding assessment district formations since 2014. Duties include plan review, site inspection, benefit allocation, producing Eng ineer’s Reports, notices, ballots, and other legal documents, and attending Public Hearings/Council meetings. Mr. Medve has innovated new techniques for benefit allocation that are more consistent with the requirements of Proposition 218 as interpreted by the California courts. City of Newport Beach, CA – Utility Undergrounding District Formation: In 2016, Mr. Medve assisted the City with an undergrounding assessment district ballot proceeding and the coordination of several other undergrounding districts in various stages of development. Duties involved the development of assessment methodologies and Engineer’s Reports, plan review, coordination with utility companies, and the tabulation/counting of ballots. City of Irvine, CA – Great Park Financing Plan: Mr. Medve assisted the City's Orange County Great Park (OCGP) subsidiary with the formation of a CFD and Redevelopment Area for the Great Park project. After the elimination of redevelopment agencies, he assisted OCGP with changing the tax structure to accommodate land use modifications and CFD change proceedings to assure adequate funding. M. Medve Resume Continued 220 Special Tax Consulting Services 16 City of Moorpark, CA Tyler Green Project Analyst Mr. Tyler Green is an analyst within Willdan’s Financial Consulting and District Administration Services groups. His primary function is to support project managers and senior analysts with the preparation of utility rate studies, cost allocation plans and user fee studies, as well as the formation of special tax districts. He specializes in analysis for a variety of clients, including cities and school districts. Mr. Green is responsible for the annual administration of Community Facilities Districts and other types of special taxes. He assists in the research, analysis and implementation required for special district administration, including property classification, budget preparation, document data entry and updates, database management, and report preparat ion. Mr. Green provides valuable analytical support under the guidance of Principal Consultant Mike Medve. His assigned tasks include updating content within the annual reports, preparing resolution(s) for Intent Meetings and Public Hearings, inputting a nd updating of parcel data, researching parcel changes, reviewing charge-exempt parcels, preparing applied reports, and providing general information on questions relating to the special taxes. Relevant Project Experience Mr. Green has worked with the following agencies. Special District Formation California Statewide Communities Development Authority – Special District Formations: Mr. Green provides analytical support to the Project Manager and Principal-In-Charge for the CSCDA’s Citro CFD project. City of Upland, CA – Special Tax Consulting: Mr. Green assisted the Willdan team by developing analysis and draft documents necessary for the formation of a CFD, and to support the issuance of bonds for the CFD. County of San Diego, CA – Special Tax Consulting: Ms. Green served as a financial analyst assigned to the County of San Diego, special tax consulting services project team. He assisted the senior members of the team in analysis development and drafting necessary documents for the formation of CFDs, and supports the issuance of bonds, as necessary. City of Santa Paula, CA – Special Tax Consulting: Mr. Green assisted with the Bond issuance support for CFD No. 2. San Jacinto Unified School District; San Jacinto, CA: Mr. Green was the assigned project analyst for the recently formed CFD for the San Jacinto School District. Tasks included formation and bond issuance support. City of Upland, CA – Special Tax Consulting: Mr. Green provided support for the formation of CFD 2022-1 and issuance of debt for previously formed CFDs. City of Rancho Mirage, CA – Special Tax Consulting: Mr. Green was the project analyst for the formation of CFD 4C and 5 and debt issuance for CFDs 4A and 4B. Special District Annual Administration ▪ City of Upland, CA – Administration of Community Facilities Districts ▪ California Statewide Communities Development Authority – Administration of Community Facilities Districts ▪ City of Buckeye, AZ – Administration of Community Facilities Districts ▪ City of Galt, CA – Administration of Community Facilities Districts ▪ Nevada County Consolidated Fire Department; Nevada City, CA – Administration of special taxes ▪ River Delta Unified School District; Rio Vista, CA – Administration of Community Facilities Districts Education Bachelor of Science, Business Administration and Leadership Studies, Chapman University Areas of Expertise Community Facilities Districts Formation and Administration Bond Issuance Support 2 Years’ Experience 221 Special Tax Consulting Services 17 City of Moorpark, CA References Below are recent Special Tax Consulting Services project descriptions. We are proud of our reputation for customer service and encourage you to contact these clients regarding our commitment to completing the projects within budget and agreed upon timelines. City of Lancaster, CA Special Tax Consultant and Community Facilities District Formation Services Willdan assisted the City of Lancaster with a cost of service and fiscal study, and subsequent CFD formation, to fund maintenance services associated with new development projects in the City. The City requested that the special tax rates be lower in the City center to account for the existing availability of resources and lower demand for services within that region. Areas external to the City center generally would require the construction of new public facilities (community centers, corporation yards, parks, trails, etc.) and would incur greater maintenance demand. Only limited guaranteed revenues were considered in the fiscal analysis. The CFD was formed in early 2021. Willdan completed special tax analysis and cash flow pro forma analysis for the proje ct, developed a taxing methodology that suited anticipated development, and which apportioned the tax burden among the types of development expected in the areas proposed for inclusion in the CFD, and we prepared the Rate and Method of Apportionment and CFD Report. The first annexation to the CFD took place in Summer 2022. Client Contact: Patti Garibay, Innovation and Economic Development Tel #: (661) 723-6072 | Email: pgaribay@cityoflancasterca.org City of Rancho Mirage, CA Special Tax Consultant and Community Facilities District Formation Services The City of Rancho Mirage has been a long-standing client of Willdan. Most recently, Willdan worked with the City to complete the formation of CFD 4A and CFD 4B and supported the City in the issuance of bonds for both. Both CFDs are associated with the development of a Del Webb residential development project in the City, and collectively encompass more than 600 single-family residential units. The CFDs were formed in 2018 and 2019 to provide revenue to support bonds that would finance backbone infrastructure improvements required by the City, payment of certain fees required by the City, and also sewer and water improvements and fees required by the Coachella Valley Water District . Our role included close work with the City, the developer, and the developer ’s consultant to develop special tax and pro forma cash flow analysis, as well as the development of the special tax methodology. The methodology was created to appropriately distribute the cost of the improvements and develop tax rates that equitably char ged various types of property in the district. Willdan completed the Rate and Method of Apportionment, CFD Report, and assisted in the preparation of resolutions and other associated documents for the formation of the CFD. We also completed other tasks necessary to support the formation and special tax election proceedings. Willdan will continue to work with the City going-forward to assist in the annual administration of the district, including calculation of the annual taxes for properties in the CFD. We will also assist in the preparation of annual continuing disclosure reports. Client Contact: Kofi Antobam, Director of Administrative Services Tel #: (760) 324-4511, Ext 232 | Email: kofia@ranchomirageca.gov 222 Special Tax Consulting Services 18 City of Moorpark, CA City of Richmond, CA Special Tax Consulting Services Willdan was retained by the City of Richmond to provide Special Tax Consulting and Community Facilities District formation services for the Point Molate CFD No. 2022-1. The proposed CFD encompasses an area that was formerly a fuel storage complex for the military. It was proposed for redevelopment into mixed-use by a master developer, SunCal, who would construct approximately 251 single family homes, 387 low-rise apartments/condominiums, 521 mid-rise apartments/townhomes/condominiums, as well as several non-residential uses. The proposed CFD would provide funding for infrastructure improvements, with a second special tax that would fund ongoing maintenance and services associated with the development. Willdan was part of a multi -disciplinary financing/consulting team, led by Mark Northcross from NHA Advisors, which included attorneys, developer consultants, an appraiser and engineers. Willdan worked with the financing team to develop a sophisticated special tax methodology and Rate and Method of Apportionment that incorporated unique approaches to community benefit and facility financing, as well as resolving sticking points between City Staff and the project proponent. We also evaluated and updated a fiscal analysis submitted to the City for the project and presented results to the team, City Staff, and ultimately the City Council. Due to various concerns amongst the elected officials, the formation of the CFD was put on hold while the proposed uses for the former military facility were re-evaluated and debated. Client Contact: Joe Leach, Public Works Director Tel #: (510) 620-5478 | Email: joe_leach@ci.richmond.ca.us City of Upland, CA Special Tax Consultant and Community Facilities District Formation Services Willdan worked with the City of Upland and their financing team to form the Sycamore Hills CFD (2015 -1) and the Harvest CFD (2016-1) and assist in the issuance of multiple series of bonds. The CFDs were formed to provide revenue to support the issuance of bonds, proceeds of which were used to pay for backbone infrastructure (streets, sewer, water, storm drains, etc.) and development fees associated with the development of over 300 residential units in the City. The CFDs were originally formed with one improvement area, then underwent change proceedings to create a second improvement area to better align the timing of two series of bonds with the development of two separate areas of the project. Willdan completed special tax analysis and cash flow pro forma analysis for the project, developed a taxing methodology that suited the projected build out timeline, and which equitably allocated the costs and apportioned the tax burden among the various types of property in the CFDs. We also prepared the Rate and Method of Apportionment and CFD Report for both and assisted in the preparation of bond offering documents. We are also working with the City on an ongoing basis to provide for administration of the CFD and preparation of annual disclosure and arbitrage rebate reports. Client Contact: Doug Anderson, Managing Director Urban Futures Tel #: (714) 923-3543 | Email: douga@urbanfuturesinc.com 223 27368 Via Industria, Suite 200 Temecula, California 92590-4856 800.755.6864 | 951.587.3500 | Fax: 888.326.6864 www.willdan.com 224 1 February 14, 2023 VIA EMAIL PDF Troy Brown Jeremy Laurentowski City of Moorpark Re: City of Moorpark- Proposed Vendra Development, Formation of Community Facilities District Thank you for requesting a proposal from our firm for the City of Moorpark’s planned formation of a community facilities district (CFD) for the proposed Vendra development. Upon your request we will perform the following services: •draft deposit agreement related to property owners’ deposit to pay for formation costs, if necessary; •provide instructions regarding boundary map and review draft boundary map; •review and comment on rate and method of apportionment of special tax prepared by special tax consultant to the City; •draft or assist in drafting joint facilities agreements with other local agencies, if necessary; •draft Resolution of Intention to Establish CFD and Resolution of Intention to Incur Debt for the CFD •draft and coordinate publication of notice of public hearing; •draft and consult with special tax consultant and City staff re CFD Report; •draft Resolution of Formation; •draft Resolution Calling Special Election; •draft ballot and related election materials, mail to property owner(s); •draft Resolution Declaring Results of Special Election; •draft Ordinance Levying Special Taxes and coordinate publication; •draft Notice of Special Tax Lien and coordinate recordation; •legal counsel ancillary and related to the formation process, as needed. Our fee for the above is $25,000, flat fee and contingent upon successful formation of the CFD. Let us know if you have any questions. David T. Fama James A. Wawrzyniak, Jr. 475 Sansome Street Suite 1700 San Francisco, CA 94111 t. 415.391.5780 f. 415.276.2088 225