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HomeMy WebLinkAboutAGENDA REPORT 2017 1206 CCSA REG ITEM 10I ITEM 10.1. C.17i) 7,0.Cou,c/t MOORPARK CITY COUNCIL Ac T -ad - 20/1 AGENDA REPORT ___4512/a4-i3_ • --€A. TO: Honorable City Council FROM: Ron Ahlers, Finance Director DATE: November 28, 2017 (City Council Meeting December 6, 2017) SUBJECT: Consider Amendment No. 4 to Agreement with Willdan Financial Services to Provide Special Tax Consulting Services and to Increase the Amount to $175,000 BACKGROUND Since February 2008, Willdan Financial Services (Willdan) has performed administrative services for the following debt issuances of the City: Assessment District 92-1 Mission Bell (AD 92-1), Community Facilities District 97-1 Carlsberg (CFD 97-1) and Community Facilities District 2004-1 Moorpark Highlands (CFD 2004-1). The original contract amount was $49,999. Amendment No. 1 to the agreement occurred in September 2009 to increase the scope to include arbitrage rebate services for AD 92-1 and CFD 97-1 in the amount of $10,100. In May 2010 Amendment No. 2 was signed to include arbitrage rebate services for CFD 2004-1 in the amount of $2,500. Willdan has performed these services according to the contract. On October 4, 2017, the City Council adopted Ordinance 453 which approved the residential planned developments RPD-9U and RPD-20U on application of Pacific Communities Builder, Inc. City Council Ordinance 454 approved the development agreement between the City and Pacific Communities Builder, Inc. Sections 6.21 and 7.3 of the Development Agreement call for the formation of Community Facilities District 2018-1 Pacific Communities (CFD 2018-1). The City will utilize Willdan to provide special tax consulting services for the formation process of CFD 2018-1. DISCUSSION • The attached proposal is from Willdan for the special tax consulting services for the formation process of CFD 2018-1. The price quote is for a fixed fee of $26,500. This cost is borne entirely by the_developer. The City has received $50,000 from the developer in order to form CFD 2018-1. 596 Honorable City Council December 6, 2017 Page 2 Additionally, the Willdan contract has exceeded the original contract price plus the two amendments. The current sum of payments from inception of the contract to today is $88,729. The Finance Director takes full responsibility for the sum of payments exceeding the contract total price. The current sum of payments plus the additional services price of $26,500 equals the amount of$115,229. Staff is pleased with the work product and services of Willdan and proposes increasing the contract price to an amount not to exceed $175,000. The City spends about $15,000 each year for services provided. The increase to $175,000 will extend the contract out to about the year 2021. FISCAL IMPACT The additional services for the formation of CFD 2018-1 in the fixed price of $26,500. This amount is entirely paid for by the developer, Pacific Communities. STAFF RECOMMENDATION Authorize the City Manager to execute the Amendment, subject to final language approval by the City Manager. Attachments: Amendment No. 4 to the Willdan contract Willdan proposal 597 AMENDMENT NO. 4 TO AGREEMENT BETWEEN THE CITY OF MOORPARK AND WILLDAN FINANCIAL SERVICES FOR PROFESSIONAL SERVICES This Amendment No. 4 to the Agreement between the City of Moorpark, a municipal corporation ("City"), and Willdan Financial Services, a California corporation ("Consultant"), for professional services ("Agreement"), is made and entered into the day of , 201 . RECITALS WHEREAS, on February 14, 2008 the City and Consultant entered into an Agreement to have the Consultant provide consulting services; and WHEREAS, on September 28, 2009, the City and Consultant expanded the Agreement for consulting services to include arbitrage rebate services for Mission Bell Plaza AD No. 92-1 and Carlsberg Business Park CFD 97-1; and WHEREAS, on May 19, 2010, the City and Consultant expanded the Agreement for consulting services to include arbitrage rebate services for Community Facilities District No. 2004-1; and WHEREAS, on April 25, 2013, the City and Consultant expanded the Agreement for consulting services to include arbitrage calculation for AD92-1; and WHEREAS, the City and Consultant now desire to amend the Agreement to include Special Tax Consulting Services for Community Facilities District 2018-1 for a fixed fee of$26,500; and WHEREAS, the City and Consultant now desire to amend the Agreement to increase the compensation for services to be performed by Consultant from sixty-four thousand, ninety-nine dollars ($64,099.00) by a value of one hundred ten thousand, nine hundred and one dollars ($110,901.00) for a total contract value of one hundred seventy-five dollars ($175,000.00), and document said agreement to amend by jointly approving Amendment No. 4 to the Agreement. NOW, THEREFORE, it is mutually agreed by and between the parties to the Agreement as follows: I. Section 1, SCOPE OF SERVICES, is amended by replacing this section in its entirety as follows: "CITY does hereby retain CONSULTANT in a contractual capacity to provide administration services as described in the CONSULTANT's 598 Proposal which is attached to the Agreement as Exhibits B, C, D, and E and made a part hereof. In the event that additional service is required of CONSULTANT, beyond the Scope of Services for this Agreement, CONSULTANT may be authorized to undertake and complete such additional work only if such authorization is provided in writing, identifying the exact nature of the additional service or services required and a "not-to-exceed" fee to be paid by CITY for said additional work, or at a negotiated lump sum amount approved by CITY. Amendment No. 1 will expand the Agreement to include arbitrage rebate services and retitled Exhibit C and made part of this Agreement. Amendment No. 2 will expand the Agreement to include arbitrage rebate services and retitled Exhibit D and made part of this Agreement. Amendment No. 3 will expand the Agreement to include arbitrage calculation and retitled Exhibit E and made part of this Agreement. This Amendment No. 4 with expand the Agreement to include special tax consulting services as stated in Exhibit F, and made part of this Agreement." II. Section 2, COMPENSATION, is amended by replacing this section in its entirety as follows: "Annual Administration — CONSULTANT shall be retained for the purpose of providing Annual Administrative Services and shall be compensated based on the Cost Proposal as described in Exhibits B, C, D, and E. Special tax consulting services — CONSULTANT shall be retained for the purpose of providing Special tax consulting services and shall be compensated based on the Cost Proposal as described in Exhibit F. CONSULTANT shall be compensated in an amount not to exceed $175,000. Payment to CONSULTANT shall be made by CITY within thirty (30) days of receipt of invoice, if the invoice is not contrasted or questioned by CITY. If CITY identifies a discrepancy between the invoice amount and the services or products completed, CITY shall within fifteen (15) workdays of receipt of the invoice specify in writing the discrepancy. CONSULTANT shall then either 1) provide support materials to satisfy CITY's stated concern, or 2) revise the invoice to reflect an adjustment to the stated Amendment No.3 to Agreement between City of Moorpark and Willdan Financial Services Page 2 599 discrepancy. CITY shall then pay the revised or documented invoice within thirty (30) days of such revision or documentation." III. Remaining Provisions: Except as revised by this Amendment No. 4, all of the provisions of the Agreement shall remain in full force and effect. In Witness Whereof, the parties hereto have caused this Amendment to be executed the day and year first above written. CITY OF MOORPARK WILLDAN FINANCIAL SERVICES Steven Kueny Anne Pelej City Manager Vice President and Group Manager Attest: Maureen Benson, City Clerk Amendment No.3 to Agreement between City of Moorpark and Willdan Financial Services Page 3 6 0 0 Exhibit B Proposal to Provide Community Facilities District and Assessment District Administration .--., ._ ie+,,,.. -,,,zi.., the Serfts*KAto ' . lov Ci* i4_ „ell 1 1 - . 1;' r 7"0 e 44. --''1 er .1.4: ; _ __...) !-r - .s- 3k ,,, ,. .:..-...„.._-.7 ,, -.4-. ,-.....A...,,........,,...,.. , ,,., ...,.... ,...,:._!T..... .-„,,A ,4...,...... . . -,-,,.. ,,,,,--:.-...,.- -:',.::.*.i.,-:,-.,:-: -. - . t `.5.-:ifi;',0, •...;:- ik.Z.?.,". ''• • - ":--s. ,'"4.:. .....----.ts'...1.' ,-.' • iff.riokt,71,1WAI... u . • .C+Vv oft, 1 s, i — ...''''''' /01111k i• 11;111iH' • = • MUniFinanCial 27368 Via Industria, Suite 110, Temecula, California 92590 601 MuniFinancial June 1, 2006 Mr. I Iugh Riley Assistant City Manager City of Moorpark 799 Moorpark Avenue Moorpark,California 93021 Re: Proposal to Provide Community Facilities District and Assessment District Administration Services to the City of Moorpark Dear Mr. Riley: As requested by Mr. Johnny Ea, MuniFinancial is pleased to submit the following proposal to the City of Moorpark to provide Community Facilities District (CFD) and Assessment District (AD) consulting services. Our proposal addresses the issues related to the administration of CFD 97-1 and AD 92-1. MuniFinancial is an industry leader in Special District administration. As such, we pride ourselves on the collaborative spirit with which we approach our engagements. We understand the issues associated with public infrastructure and services finance planning and can provide expert advice, combined with the responsiveness of a full team of professionals for the City of Moorpark. As division manager of District Administration Services, I will serve as principal-in-charge, while Ms. Adina Vazquez will be the project manager assigned to oversee the preparation of the annual tax rolls. Assisting her will be Mr. Alan Stutler. Collectively, our expert staff will provide the requisite experience and technical knowledge necessary to successfully complete this project. We arc particularly knowledgeable of the issues facing public agencies in Southern California. Our district administration team has overseen projects for the cities of Fillmore, Thousand Oaks, Simi Valley, and the County of Ventura. As a result of the extensive experience our administration staff has gained in managing these cities, as well as over 186 other public agencies in California alone, we have come to understand and appreciate the specific challenges faced by local governments and will serve as an extension or your in-house personnel. We arc certain that our services would be beneficial to the City of Moorpark as it plans for continued growth. We arc excited about this opportunity and look forward to hearing from you. If You have any questions regarding our proposal,please contact me at(800) 755-MUNI (6864), or via my email at markr@muni.com. Sincerely, MuniFinancial Mark Risco,Division Manager District Administration Services EMAILED cc: Mr.Johnny Ea,Finance Director,City of Moorpark Ms. Adina Vazquez, Project Manager,District Administration Services Mr. Marshall Eyerman,Principal Consultant,Financial Consulting Services 27368 Via Industria,Suite 110 Tel:(800)755-MUNI(6864) 6 0 2 Temecula, California 92590 www.nurni.com Fax:(951)587-3510 TABLE OF CONTENTS BRIEF FIRM OVERVIEW 1 DEMONSTRATED ADMINISTRATIVE KNOWLEDGE 2 MuniMagic - 3 Administering Districts 3 District Administration Services' Historical Statistics 3 Experience with the Annual Levy Process 4 Experience with the Ventura County Auditor/Controller 5 District Administration Services Structure 5 Quality Assurance 6 Annual Levy Properly Owner Service Calls 6 Related Project Experience 7 SCOPE OF SERVICES 8 District Administration Services 8 Optional Service 9 Client Responsibilities 11 COST PROPOSAL 12 District Administration Services 12 Optional Service 13 Reimbursable Expenses 13 Additional Services 14 CLIENT REFERENCES 15 Page i 603 IIMuniFinancial BRIEF FIRM OVERVIEW MuniFinancial has the largest Special District formation and administration practice in the nation. We are also known as the pre-eminent municipal disclosure firm, and a major provider of Arbitrage Rebate services. Our clients include cities, counties,state agencies, port authorities, housing agencies, Special Districts and school districts in 34 states. Our staff of over 80 professionals acts as an extension of agency staff, providing such services as: Administration of Special Taxes,assessments, standby charges and utility rates; Arbitrage Rebate calculations; Municipal disclosure reports preparation and dissemination; Economic studies, such as fiscal analyses of new development, LAFCO studies and developer impact fees; MuniFinancial provides the following Financial studies to identify funding sources or primary services: determine optimal utility rates, standby charges and cost of services;and ✓ District Administration.Services District formation seryices for ot capital prolcct ✓ Financial Consulting Services Assessment/Local Improvement Districts, ✓ Federal Compliance Services Community Facilities Districts, Landscaping and Lighting Districts, and Special Taxes. In addition, we arc dedicated to the improvement of our technology. Our Information Technology staff has created MuniFinancial's Municipal Administration Governthent Information Coordinator, MuniMagic', a custom software program to address the specific requirements related to administering taxes, assessments, standby charges and fees. The latest advance in the program allows clients to access parcel information through the Internet with a menu-driven format. MuniFinancial's success is based on a corporate philosophy of personal service. We provide support throughout the year — and for years after. Clients can be assured that we can be reached should any questions or issues arise. We serve as an extension of our clients' staff, augmenting existing personnel by providing specialized expertise. In support of this, MuniFinancial staff members regularly write articles and conduct presentations for local, state and national organizations. We hold client workshops and conduct onsite training throughout the year to assist clients in keeping abreast of the latest developments,while helping new agency staff understand our services. MuniFinancial focuses on the following client . base: ✓ StateAgencies ✓ Counties ✓ Cities ✓ School Districts ✓ Special Districts • Community Services Districts • Recreation and Park Districts • Water Districts • Vector Control Districts - Pagel EMuniFinancial 6 0 4 DEMONSTRATED ADMINISTRATIVE KNOWLEDGE As the largest Special District formation and administration practice in the nation, MuniFinancial provides administration, financial, and consulting services in three states—California, ,1lritiona and IVashington. Together with our affiliate engineering company, li/illdan, MuniFinancial offers a truly unique range of services to local government. \X'ith hundreds of ongoing client relationships for finance, engineering, and other services, we have been consistently called upon to assist public agencies with a wide range of special projects. We bring to the City of Moorpark the experience and knowledge of seasoned municipal finance consultants and engineering experts under one roof. MuniFinancial's District Administration Services address the ongoing day-to-dayrMuniMagtc activities associated with the long term Function as an extension of staff collection of bonded and pay as }you go Database setup,review and reconciliation Special 'Taxes, assessments, fees, utility Preparation of annual Engineer's Report, rates, and standby charges. These types ofbudget and resolutions services demand accurate, timely and Bill charges directly though County tax roll L. l7bl Comprehensive reporting knowledgeable treatment O{ iTiat-iy details. b Subsequently, MuniFinancial focuses on ✓ Financial analysis,modeling and budget quality control and brings the advantage of forecasting current technology and knowledge of recent ✓ Toll-free line legislation to our clients. ✓ Reporting on phone call activity V Reporting on collections and payment status MuniFinancial has several attributes that set ✓ Calculation of prepayment quotes us apart from our competitors: V Legislative updates Our company was formed to specifically offer annual district administration as a specialty service. Our organizational structure and systems have been designed to meet the needs of this niche market; Our staff has more than 17 consecutive years of providing engineering and consulting services related to Special Districts; A focus on customer service,expressly on acting as an extension of agency staff; A computer program (MuniMagic) that is specifically designed for district administration. This is the database tool we use to process levies, automate Delinquency Management, and to serve as a central source to address property owner and interested parties'inquiries. New functionality allows reporting on phone call activity; A dedicated staff committed to meeting deadlines, being responsive to clients and working hard to stay on top of legislative and industry developments; Internet access (optional): Web access to parcel data is available to clients for whom MuniFinancial administers district data. Details on this exceptional service are available upon request. In-house licensed engineers to generate Engineer's Reports and related documents;and In-house capability to produce County of Ventura-compatible formats (printed and electronic) for all necessary documents. MuniFinancial Page 6 0 5 MUNIMAGIC The most recent addition to our services is the development of an Internet interface to "`' `'414~ MuniFinancial's database management program known tA % g as MuniMagic. MuniMagic maintains parcel data, ' calculates Special Taxes, assessments, fees and charges, ` manages delinquency information and maintains bondIA related information. Clients can access data and reports online through a menu-driven system providing +� information at the touch of a button. powerhouse is is the used by MuniFinancial's experienced staff in fiscal year 2005-2006 to generate $569 million in levies and billings on more than 5.8 million parcels. Staff is dedicated full-time to calculations, levies, Delinquency Management,ongoing Disclosure, report writing,and property owner inquiries. ADMINISTERING DISTRICTS MuniFinancial's District Administration Services division has an extensive staff of 35 individuals, with over 17 consecutive years devoted wholly to district administration, including the preparation of annual Engineer's Reports, submittal of the levy, and responding to property owner inquiries generated by such services. In fact, our staff was responsible for administering over 1,297 Special Districts representing over half a billion dollars in individual fees, charges, taxes and assessments in 38 counties in support of 186.public agencies in California. DISTRICT ADMINISTRATION SERVICES' HISTORICAL STATISTICS The following arc charts of the numbers and type of districts that we arc contracted to annually administer,and demonstrate MuniFinancial's full range of administrative experience and expertise. • COUNTIES SERVED AOENCIEa SERVED 40 IVO 36 1!6 e 30 ` 100 4(17a F 46 } 170 7 20 J ` 163 INO 146• 15 Mr Ear-7'MA mai no 02/03 03/04 04/05 05/06 02/03 03/04 04/05 05/06 FISCAL YEAR FISCAL YEAR Page 3 6 0 6 MuniFinancial DISTRICTS ADMINISTERED PARCELS LEVIED 1400 II 7 1200 U 6 (A J I-moo J 6 ° Ft CDD 4 - al4Daiiiiii W gagthig Mai3 � x • L %.•: 1 MI MINN ME MS' a 03/03 03/04 04/06 05/06 02/03 03/04 04/05 05/06 FISCAL YEAR FISCAL YEAR DOLLARS LEVIED 2005/06 DISTRICTS ADMINISTERED BY 600 AGENCY TYPE 500 C IT IC•- Z 400 1,103 5 300 .1 200 WATER �• DIET R IGT•- \ CLD'•-6 700 :` `I -i; 1 � 11146 COIINTIE•- 14 O ■P[CIAL 02/03 02/04 04/09 C5/04 DI•TRICT•- •CHCCL R[Cw[Ar10N& IPAR E DI•TRIO FISCAL YEAR 24T•- DI•TRICT■- REFU•E-1 46 66 CONTRACTS BY AGENCY TYPE 2005/06 DISTRICTS ADMINISTERED 131(TYPE LANC•cAPE&LI•HTINN A 0 I r Y-126 CSD-3 , 01M1,1 ICT•-56U DISTRICTS DI•TRICT■-420 01100„, 11 4 CCUNTIE• M 1•C-47 WATER C so-4 DI•T RICrN DI•TRICT•- R CCRCATION& DI•TwICT• c FDI•- WATER RCrll MK-4 31,[1:11.41- 14 PECIAL14 •allom, PARK 2T7 9TAN0•Y- DI•TRICT■- D1•TRICT•- DI•TR ICT•-3 DI•TRICT• 3.6 l0 11 REFU•E-1 DINT 1•113T• EXPERIENCE WITH THE ANNUAL LEVY PROCESS Three (3) major steps define the typical annual levy process: Step 1: Based on an annual budget and a defined Method of Apportionment, establishing the proposed assessment for each parcel; Step 2: Preparation and approval of the proposed assessments in an Engineer's Report;and Step 3:, Submittal of the approved assessments to the County Auditor/Controller. However, the key to a successful levy process is more than these three steps. The process involves attention to details and follow-up. Simply calculating an assessment, applying it to Assessor Parcel Numbers (APNs) identified as valid parcels, then submitting those assessments to the County would likely result in lost revenue owing to parcel rejects. Page laMuniFinancial 6 0 7 Prior to submitting the approved levy to the County, NIuniFinancial's standard administration practice includes updating the levy data with the most recent County secured roll information. All parcel changes and potential rejects arc researched and reconciled, new APNs are identified, and the proposed assessment amounts are recalculated. After the updated levy has been submitted, the County provides a list of rejects, which may include additional parcel changes or non-taxable properties.These parcels are then reconciled and resubmitted to the County. EXPERIENCE WITH THE VENTURA COUNTY AUDITOR /CONTROLLER MuniFinancial has long-time experience working with the Ventura County Auditor/Controller's Office, the Assessor's Office and Tax Collector. Our staff has 17 years' experience working with these offices and is extremely familiar with their procedures and practices. In addition, because MuniFinancial submits numerous assessments to the County, we have developed a strong working relationship that has benefited the County and our clients. DISTRICT ADMINISTRATION SERVICES STRUCTURE MuniFinancial's District Administration Services division has been organized to address the regional nature of our work. MuniFinancial has five (5) project managers with the responsibility of overseeing 36 analysts within the following regions: California Desert, Inland Empire, Central Valley,Northern California,and Southern California Coastal. The project manager/analyst teams arc designed to allow clients more immediate access to a single individual knowledgeable about all of the client's districts and issues. Questions can be answered with a single phone call, to a single person. For district administration, Adina Vazquez will be the City of Moorpark's project manager. MUNIF/NANCIAL lip District Administration Services -- Mark Risco MILTOON POICIVICCT A4NAsrR O/V/R/ON MANAOCR l 4ffir Mina YaxRwz Stec**Reynolds Cif Moe L PROJECT MANARCR 1CTRCR AWATIT lcN/OR AP4ALYiT PROJCDT MANASCR Med AeaImTA(Arruolt "11;eri Riellier ilitielle" 41111011. aTAIT WAR �'fAR ni7'AIF fTAII Pages ISMuniFinancial 6 0 8 QUALITY ASSURANCE A key to our success is a designated senior project manager responsible for implementing quality control measures. Robert Quaid, a Certified Public Accountant, is instrumental in preparing quality control checklists and sign-off mechanisms for all of our administration services. These quality control measures are embedded in the latest evolution of our administration software, and arc a required clement of the day-to-day analyst and project management activities within the division. ANNUAL LEVY PROPERTY OWNER SERVICE CALLS MuniFinancial's four (4) full-time property owner services representatives spend their days accepting phone calls related to assessments, charges and taxes. They have been trained to respond to questions relating to fees, charges,assessments,and Special'faxes; moreover,our representatives are fluent in English and Spanish. The property owner services representatives arc available to �Call:Log lada respond to phone calls from eight in the morning-until five in FA-;M: 670-191-014 the evening, Monday through friday, excluding major holidays I Cm•mdbS {Seca 0 Oen when the MuniFinancial offices arc closed. i D 1 01/2S/2004 az 23 f'14 -i To allow consistent answers for common questions, we have CJv4N�nc umsm: — established scripts for other clients, such as what are the charge TW"Cay. R _J �ty a«r� funds, how long the charge will be levied,can it be paid off,will Ir'sidl a�aeh,broie/Etyb.eov+ 1_1 it increase,what is the difference between this charge and other Ren 117/ 4P-opt=---- , tax bill water fees, etc. We will meet with your staff to discuss I--o Ap;iy To Mitres - appropriate answers to these and other pertinent questions; - - likewise, we will provide our property owner service • representatives with an authorized script. l i Additionally, our property owner service representatives will J1 keep a phone call log. Upon request, this information will be ! r sent to the City of Moorpark. A screenshot of MuniMagic's call Serrar� log interface is shown to the right. Utilizing lfuniMagic's reporting capabilities, the sample phone call log report (below) is generated from the information keyed into MuniMagic's call log interface (above). SAMPLE Assessment District 1 Phone Call History (all I1) lune I all Handler jtl'N l act lledson lot a all 'all lioboldhnn 1 orumr.nh Ndnic 1053 3/1513410'47 Raj Chander 21229030 Michelle Realtor Multiple Queries(See Comment) Provided Verbal Response/Explanation 2167 427414 9.16 Laura Castro 21415025 Sandra Property Owner Other(See Comment) Referred Caller to County 2063 42143414 47 Raj Chander 23351031 Vito Property Owner Charge Methodology Explanation Provided Verbal Response/Explanation 367 2117434 937 Julie Grucella 23410033 Chilma Property Owner Final Maturely Date of Bond/District Provided Verbal Response/Explanation 80 2/3434 1337 Julie Grucella 23413027 Joan Realtor Final Maturity Date of Bond/District Provided Verbal Response/Explanation 2211 243414 1636 Julie Grucella 23414045 Dave Property Owner Improvements Description Other(See Comment) 2111 4123404 8.50 Raj Chander 23420030 Jim Prospective Owner Charge Methodology Explanation Provided Verbal Response/Explanation Page 6 6 0 9 MuniFinancial RELATED PROJECT EXPERIENCE The following project descriptions are relevant samples of similar projects where MuniFinancial provides Special District administration services: City of Fillmore MuniFinancial performs the annual administration of the City of Fillmore's three (3) Community Facilities Districts (CFDs 1R, 2R,and 3), one (1) Landscaping and Lighting District (LL No. 2), four (4) Service Districts (SDs 1, 3-5), and one (1) Special Tax District. The work involved in this project includes database maintenance, while researching parcel changes, and preparing and providing the annual Engineer's Reports. Additionally, staff calculates and apportions the Special Taxes, prepares draft staff reports, provides Special Tax levies, researches parcel exceptions, fields inquiries, monitors delinquencies,attends meetings,and prepares an annual Special Tax Report. Cityof Simi Valley MuniFinancial performs the annual administration of the City of Simi Valley's two (2) Assessment Districts (ADs 87-i and 89-1). The work involved in this project includes obtaining the County Auditor/Controller's list of valid and invalid parcels, and verifying Assessor Parcel Numbers within the Assessment Districts; updating the proposed assessment data; preparing the proposed assessment roll (bond register) in an electronic file format that is acceptable to the County Auditor/Controller's Office; submitting the assessment roll to the County; providing a copy of the assessment roll (bond register) to the County Auditor/Controller and the Cit} Finance Department; as well as answering questions from the County Auditor/Controller prior to finalizing the tax roll. In aggregate, the two (2) districts consist of more than 1,000 active parcels. City of Thousand Oaks MuniFinancial performs the annual administration of the City of Thousand Oaks' Special Districts. The work involved in this project includes database maintenance, researching parcel changes, and preparing and providing the annual levy of Special Taxes and assessments. In aggregate, the three (3) Community Facilities Districts (CFDs 1988-1R, 1994-1, and 1997-1), one Landscaping and Lighting District (LL79-2), and one (1) Business Improvement District (Thousand Oaks BID) consist of more than 35,500 active parcels. County of Ventura MuniFinancial provides Assessment District Administration Services for the County of Ventura's Assessment District No 98-1 (Lake Sherwood Refunding), totaling over 580 parcels. As with the City of Simi Valley, the work also includes obtaining the County Auditor/Controller's list of valid and invalid parcels, and verifying Assessor Parcel Numbers within the Assessment Districts; updating the proposed assessment data; preparing the proposed assessment roll (bond register) in an electronic file format that is acceptable to the County Auditor/Controller's Office; submitting the assessment roll to the County;providing a copy of the assessment roll (bond register) to the County Auditor/Controller and the City Finance Department, as well as answering questions from the County Auditor/Controller prior to finalizing the tax roll. Page 7 610 EMuniFinancial SCOPE OF SERVICES DISTRICT ADMINISTRATION SERVICES MuniFinancial provides full-service formation and administration services, as well as the optional supporting services of Arbitrage Rebate, Apportionment, Continuing Disclosure, and Delinquency Management. These additional associated services could be provided upon request. The following is our scope of services for CTD administration. All costs associated with annual administration are fully recoverable either through the levy, or payment by requester for special services. MuniFinancial will: 1. Maintain and periodically update an electronic database containing parcel basis data and annual Special Tax levy amounts by Assessor's Parcel Number. 2. Annually calculate and apportion the Special faxes as specified in the Rate and Method of Apportionment of Special Tax. 3. Use, if applicable, the listing of any approved exemptions provided by the County; identify each parcel,and modify the proposed Special Tax,accordingly. 4. Prepare, if necessary, an annual resolution that establishes the budget for the fiscal year and application of the Special Tax to be submitted to the County,including the Special Tax summary for the fiscal year. 5. Provide Special Tax levies for each parcel by Assessor's Parcel Number to the County" Auditor/Controller's Office in the media, format and configuration required by the County for placement on the annual property tax roll. 6. Research parcel exceptions provided by the County and, if possible, resubmit installment amounts that are unapplied by the County Auditor/Controller's Office. MuniFinancial will manually invoice Special Tax installments that cannot be collected on the County property tax roll on behalf of the City. 7. Provide a toll-free number to field inquiries from City staff, property owners and other interested parties regarding Special Tax installments and related information. 8. Monitor delinquencies each February and May, and submit periodic delinquency reports to the City. 9. Prepare an Annual Special Tax report.This report will include: The identification of CFD administrative cost items eligible for recovery by the County; The review of fund balances to identify any surplus funds; The requirements for debt sen-ice; The delinquency summaries;and A cover letter to the report providing related recommendations or issues,if any. The cover letter is not intended to be a component of the report. 10. Provide an annual report to the California Debt and Investment Advisory Commission (CDIAC) by October 30 if required by the California Government Code, Section 53359.5(b), as amended. Page 8 611 �MuniFinancial 11. Prepare "Notice of Special Tax" as required by the California Government Code, Sections 53340.2(b) and 53341.5, as amended. The fee for this service is S10 per Notice and is to be paid by the requestor. 13. Bc available to attend meetings. 14. Calculate written prepayment quotes for individual Special Tax liens, as described in the Rate and Method of Apportionment of Special Tax or by resolution. For parcels prepaying the Special Tax, MuniFinancial will coordinate the removal of the lien. The fee for this service is $250 per calculation, to be paid by the requestor. 15. Perform required bond call spreads and coordinate the early redemption of outstanding bonds. Additional efforts needed to complete bond calls, such as cash flow certificates, special analyses and/or atypical spread calculations, shall be charged hourly using our then-current hourly rates (see "Additional Services" section). However, MuniFinancial will not begin any additional work without prior approval from City staff. 16. Prepare and disseminate the Disclosure reports under the terms of the Continuing Disclosure Agreement to each Nationally Recognized Municipal Securities Information Repository (NRMSIR), the Municipal Securities Rulemaking Board (MSRB) (if applicable),appropriate State Information Depository (SID), and any other party as directed by the City. In addition, MuniFinancial will, upon notification by the City and/or if MuniFinancial becomes aware and if deemed to be material, prepare Notices of Significant Events covering events enumerated in Rule 15c2-12(b) for review by the City. The following is our scope of services for AD administration. 1. Maintain and periodically update an electronic database containing parcel basis data and annual Assessment levy amounts by Assessor's Parcel Number. 2. Provide assessment installment information for each parcel, formatted in the required configuration on nine-track magnetic tape or other media, to the County Auditor/Controller's Office for placement on the property tax roll. 3. Research and, if possible, resubmit installment amounts that are rejected by the County Auditor/Controller's Office. O PTIONAL SERVICE Delinquency Management In order to assure that the City of Moorpark complies with its foreclosure covenant to bondholders for the district,MuniFinancial will provide the following delinquency management services: 1. Monitor delinquent tax bill payments in December and April of each year. 2. Provide delinquency reports to the City in January and May. 3. Send a delinquency reminder letter after the first installment of the tax bill becomes delinquent. 4. Send a 30-day delinquency demand letter after the second installment of the tax bill becomes delinquent. Each demand letter will include a brochure providing answers to commonly asked questions concerning delinquencies. 5. Remove the delinquent installments of special assessments/taxes for the current and/or prior tax year(s) from the County tax roll. Such removal will comply with SB 1471. Page 612 �MuniFinancial 6. Send a final 21-day delinquency foreclosure letter to each delinquent property owner after confirmation from the County for the removal of the delinquent special assessments/taxes. Foreclosure letters shall contain a brochure providing answers to frequently asked questions regarding delinquencies and judicial foreclosures. 7. Send those parcels,whose special assessments/taxes continue to remain delinquent after twenty- one (21) days from the mailing of foreclosure letters, to the foreclosure attorney for collection of the delinquent special assessments, applicable penalties, interest, fees, and other authorized costs.The City-retained foreclosure counsel will collect these fees. 8. Provide a toll-free telephone number at MuniFinancial to field inquiries from staff, parcel owners, lenders, and other interested parties concerning annual installments and delinquencies throughout the entire delinquency management/foreclosure process. 9. Assist foreclosure counsel to initiate judicial foreclosure proceedings; and in accordance with bond foreclosure covenants,prosecute those parcels sent to foreclosure. 10. Provide, upon request,payoff quotes for all interested parties for stripped delinquent assessment installments. Fees for this service are paid by the requesting party and may be charged to a credit card;there is no charge to the City. Subsequent Foreclosure Services Once the delinquent assessments/taxes have been forwarded to judicial foreclosure counsel, MuniFinancial will, upon request,provide the following services: 1. Prepare and forward a detailed report of the parcels to be foreclosed to foreclosure counsel. 2. Provide foreclosure counsel with the necessary resolutions and other documents to proceed with the judicial foreclosure process. 3. Keep the City and foreclosure counsel apprised of special arising situations of which we become aware, such as bankruptcies of parcel owners, tax foreclosure sales, Deed of Trust "'Trustee" foreclosure sales,and so forth. 4. Provide foreclosure counsel with "subsequent year" delinquency information consisting of any installments/years that become delinquent on parcels already in foreclosure. 5. Generally respond to inquiries from City staff and foreclosure counsel regarding the status of a foreclosure action and other relevant information. Additional Services Offered MuniFinancial can, at the discretion and approval of the City, negotiate a repayment schedule (payment plan) with property owner(s) to cure the delinquency and avoid initiation of judicial foreclosure. IS MuniFinancial Page 10 613 • CLIENT RESPONSIBILITIES MuniFinancial will rely on assistance from the City of Moorpark in obtaining the following information: Historical information related to the districts, their formation, and associated bonds to implement the initial district setup. This information may include,but is not limited to: diagrams and recorded notices for the district; Engineer's Reports; assessment rolls; copies of resolutions approved during the formation process for the districts; copies of pertinent bond documents; databases of parcels in the districts, including historical levy information; and historical information relative to the bonds and payoffs in the districts. Annual information related to fund balances for the districts. Budget summary to be incorporated into the annual resolution establishing the budget and Special Tax rates for the district. Assistance from the City in obtaining information. Although MuniFinancial will annually research information regarding land subdivision,issuance of building permits,and/or certificates of occupancy (as required by the City of Moorpark), it may be necessary for the City to supply further data. Existing delinquency information. Current development plan/tentative maps and annual changes, modifications or updates, if necessary. Confirmed assessment roll (as required) and other district information for new districts as they become available. The City of Moorpark will assist MuniFinancial in obtaining all aforestated scope of work information,if needed. The City also acknowledges that MuniFinancial shall be relying upon the accuracy of said information provided by the City and County, and agrees that MuniFinancial shall not be liable for any inaccuracies contained therein. MuniFinancial• Page ge 11 614 COST PROPOSAL DISTRICT ADMINISTRATION SERVICES The number of parcels and districts shown in the following District Administration tables arc the basis of this proposal. Any substantial variation in number may cause a change in our fee structure. All hourly rates, fees and expense rates arc subject to increase, not to exceed the Consumer Price Index within the applicable area. As the work progresses, these fees are payable on a quarterly basis. SERVICE BASE FEE Community Facilities District No. 97-1 $ 3,900 (Carlsberg Business Park Public Improvements) ./ Assessment District No. 92-1 (Mission Bell Plaza) 600 CFD Payoff Quotes (Per Request)* $ 250 AD Payoff Quotes (Per Request)* 50 The requesting party pays for fees for this service. There is no charge to property owners and/or the City. Page ge 12 615 OPTIONAL SERVICE Delinquency Management The following fees arc invoiced to the City as the service is rendered. They arc ultimately paid by, or on behalf of, the delinquent property owners. SERVICES FEES Fees Ultimately Reimbursed To Agency By Property Owner: Delinquency Reminder Letter $ 15 Delinquency Demand Letter 45 Foreclosure Letter 65 Effect Removal from Tax Roll and Record 110 Subsequent Notice of Satisfaction Payment Plan 200 Subsequent Foreclosure Services 100-300 Fees Paid Directly To MuniFinancial By Requestor: Delinquency Demand Payoff(1) $ 50 Zero Demand(1) 50 (t) This fee is waived for the property owner (except fnr escrow purposes) or City of Moorpark.. This fee complies with Section 8833 of the California Streets and Highways Code and/or Section 53356.2 of the California Government Code, which requires recording of a Notice of Intent to Remove Delinquent Special Assessments and/or Special Taxes from the County tax roll. It DOES NOT include the County tax roll removal charge, or similar fee, if any. REIMBURSABLE EXPENSES MuniFinancial will be reimbursed, at cost, for out-of-pocket expenses. Examples of reimbursable expenses include, but are not limited to: postage, travel expenses, mileage (44.5c per mile), maps, electronic data furnished from the County and/or other applicable resources, construction cost periodicals, and copying(currently 6c per copy). Any additional expense for reports or from outside services will be billed to the City, at our cost, with no overhead markup. Charges for meeting and consulting with counsel, the City, or other parties regarding services not listed in the scope of work above will be at our then-current hourly rates (see the"Additional Services"section). In the event that a third party requests any documents, MuniFinancial may, in accordance with MuniFinancial's applicable rate schedule, charge such third party for providing these documents. EMuniFinancial Page 13 616 CLIENT REFERENCES MuniFinancial is proud of our commitment to customer service and excellence. We encourage you to contact the references below regarding our past performance. We will gladly provide additional references upon request. • AGENCY CONTACT TELEPHONE PROJECT DESCRIPTION Annual Administration of the City's CFDs and Mr. Ron Carr, Assessment District;the levy of Special City of Perris Finance Director (951) 943-4610 Taxes/Assessments; Continuing Disclosure; Arbitrage Calculations; and Delinquency Management Ms. Barbara Smith, City of Temecula Senior Development (951)693-3995 Administration of the City's CSDs Services Analyst Annual Administration of the City's CFDs, Ms.Teri Ferro, Assessment Districts, and Landscape and Lighting City of Murrieta Deputy City Manager (951)461-60.45 Districts; the levy of Special Taxes/Assessments; Continuing Disclosure;Arbitrage Calculations;and Delinquency Management Annual Administration of the City's CFDs, Mr. Michael Busch, Assessment Districts,and Landscape and Lighting City of Indio (760) 342-6560 Districts; the levy of Special Taxes/Assessments; Finance Director Continuing Disclosure;Arbitrage Calculations; and Delinquency Management Page 15 617 MuniFinancial S {{ f{ ,wFw+ .y� �r7 7 L yam'.-4x4 `*.. . I t ,,A4s f .. tiff -::,,,,,,VA). r ng 4 f" f.V A.• .�;�tli F.Y ya - 'tet'4i 1 . "1-. i .. . 3 •rico t li,t . ' :•, ► +( ; MuniFinancial 27368 Via Industria, Suite 110,-Temecula, California 92590 618 EXHIBIT C: Scope of Services Phasel Task Document Collection Coordinate with the Bond Trustee the collection of bond documents and cash flow information required for the arbitrage rebate computation. Document Review Review pertinent documents relating to the debt to confirm that the financing is subject to the arbitrage rebate requirements and identify relevant exceptions,elections,and yield restrictions. File Set Up Load subject bond issues into Willdan Financial Services'proprietary tracking system. Work Plan Discussion Review tax-exempt financings subject to the federal compliance,regulations and discuss the work plan. Phase ll Task Calculate the bond yield and identify gross proceeds and replacement proceeds allocated to the issue. Compare allowable arbitrage earnings to actual earnings by fund. Computation Review and consider application of alternative regulatory provisions. Determine the cumulative arbitrage liability pursuant to Section 148(f)of the Internal Revenue Code. Quality Control Employ a triple-tiered review of the calculation and summary findings. For bond issues not subject to the arbitrage rebate or yield restriction requirements, Willdan Financial Services will prepare a certification of the exception that has been met. For bond issues subject to the arbitrage rebate requirements,Willdan Financial Services will prepare a comprehensive rebate report that includes: • Summary of methodology,assumptions,conclusions and recommendations • Statement of relevant dates • Sources and uses of funds Deliverable • Arbitrage yield and yield restriction requirements • Rebate liability by fund and aggregate liability for the issue • Arbitrage/Investment Yield Comparison Graph • Outstanding Investments Summary Prepare the necessary IRS Forms and provide filing instructions. Provide copies of completed rebate reports in electronic or hardcopy format,as directed. Provide work papers upon request. Procedural Support Review current policies and procedures for tracking expenditure and investment earnings allocations and make recommendations to improve funds and records management. Keep abreast of enforcement actions and Code/Regulation changes that may affect arbitrage compliance requirements. Regulatory Changes Retroactive changes requiring recalculation of a previously submitted arbitrage report shall be performed at our hourly rates. Audit Support Assist staff in the event of a rebate calculation audit. Document Retention Provide assistance with record retention and documentation relating to arbitrage rebate. 619 FEES FOR SERVICES The nature and complexity of each bond issue,the frequency of computation, and the transparency of the transactional data, determines the maximum fee charged for each report. If circumstances are encountered that affect our ability to proceed, such as additional information coming to our attention not determined or available during our scoping efforts,we will inform you promptly and seek your approval for any changes in scope, timing or fees that may result from such circumstances. Issue Name Issue date Calculation Not to Period Exceed Fee Mission Bell Plaza AD No 92-1 4/20/1993 4/20/1993-4/20/2009 5,550 2,595,000 Carlsberg Business Park 7/24/1997 7/20/1997—7/24/2009 4,550 7,645,000 620 EXHIBIT D: The Agreement is amended to include the following additional issue/reports and fees: Issue-f ame Issue date Calculation Fee Period Community Facilities District No. 2004-1 (Moorpark Highlands)Special Tax Bonds,Series 2006 7/11/2006 7/11/2006—9/1/2010 $2,500* $38,030,000 'Includes one-time set up fee The nature and complexity of each bond issue,the frequency of computation, and the transparency of the transactional data,determines the maximum fee charged for each report. If circumstances are encountered that affect our ability to proceed, such as additional information coming to our attention not determined or available during our scoping efforts,we will inform you promptly and seek your approval for any changes in scope,timing or fees that may result from such circumstances. Arbitrage Services Fee Yield Restriction Computation.If we determine that a yield reduction payment is due on yield restricted nonpurpose investments,an additional fee will be $500 per fund charged to analyze and determine the yield reduction payment due. Commingled Funds Analysis. Clients providing data with commingled funds $250 per fund will incur an additional charge to uncommingle transactional data. Transferred Proceeds Analysis. The regulations require an additional level of $500 per fund analysis for proceeds of Refunding and Refunded bonds. Non-Bona Fide Debt Service Fund.Our base fee assumes that the Bond Fund,as defined in the bond documents,meets the bona fide debt service fund $500 per fund exemption to rebate. If this fund fails to qualify for this exemption an additional fee will be charged to analyze the investment activity. Request for Refund of Overpayment $150 per hour IRS Audit Assistance $150 per hour Online Compliance Management System No Charge Preparation of IRS Form 8038T(Payment) No Charge • City of Moorpark Page 2 Willdan Financial Services 621 EXHIBIT E: Scope of Services Phase Task Document Collection Coordinate the collection of prior reports,bond documents,and cash flow information required for the arbitrage rebate computation. Document Review Review pertinent documents relating to the debt to confirm that the financing is subject to the arbitrage rebate requirements and identify relevant exceptions,elections,and yield restrictions. File Set Up Load subject bond issues into Willdan Financial Services'proprietary tracking system. Work Plan Discussion Review tax-exempt financings subject to the federal compliance regulations and discuss the work plan. Phase II Task Calculate the bond yield and identify gross proceeds and replacement proceeds allocated to the issue. Compare allowable arbitrage earnings to actual earnings by fund. Computation Review and consider application of alternative regulatory provisions. Determine the cumulative arbitrage rebate liability and yield reduction payments pursuant to Section 148(f)of the Internal Revenue Code. Quality Control Employ a triple-tiered review of the calculation and summary findings. For bond issues not subject to the arbitrage rebate or yield restriction requirements,Willdan Financial Services will prepare a certification of the exception that has been met. For bond issues subject to the arbitrage rebate requirements,Willdan Financial Services will prepare a comprehensive rebate report that includes: • Summary of methodology,assumptions,conclusions and recommendations • Statement of relevant dates • Sources and uses of funds • Arbitrage yield and yield restriction requirements Deliverable • Rebate liability by fund and aggregate liability for the issue • Arbitrage/Investment Yield Comparison Graph • Outstanding Investments Summary Prepare the necessary IRS Forms and provide filing instructions. Provide copies of completed rebate reports in electronic or hardcopy format,as directed.Provide work papers upon request. If requested,provide a legal opinion that the arbitrage liability has been calculated pursuant to Section 148(f)of the Internal Revenue Code. Phase III Task Procedural Support Review current policies and procedures for tracking expenditure and investment earnings allocations and make recommendations to improve funds and records management. Regulatory Changes Keep abreast of enforcement actions and Code/Regulation changes that may affect arbitrage compliance requirements. Retroactive changes requiring recalculation of a previously submitted arbitrage report shall be performed at our hourly rates. Audit Support Assist staff in the event of a rebate calculation audit. Document Retention Provide assistance with record retention and documentation relating to arbitrage rebate. 622 FEES FOR SERVICES To the extent that the necessary information is available,Willdan Financial Services endeavors to quote fees that accurately reflect the complexity of the services needed. If circumstances are encountered that affect our ability to proceed,such as additional information coming to our attention not determined or available during our scoping efforts,we will inform you promptly and seek your approval for any changes in scope, timing or fees that may result from such circumstances. �'ax✓v.Twr.n.:...,.. - ..:.'... ._.y.;::aSS�,4GkU:TY`in'S.h'�lCl4 '+S.^9h',vtYw^�,.: _ _.... ... Ibi$�l Issue Name Principal Calculation Period Fee Amount Mission Bell Plaza AD No 92-1 $2,595,000 4/20/2009—4/20/2013 $1,500 Billed invoices are required to be paid within 30 days. 623 4 Exhibit F Scope of Services Community Facilities District Formation • Based on our discussions, we understand that the City of Moorpark ("City"), based on a request from Pacific Communities, wishes to form a Community Facilities District (CFD) in conjunction with the Pacific Arroyo development project. The proposed CFD will be formed to fund developer impact fees, and other infrastructure costs associated with the Los Angeles Avenue road improvements. As proposed, the project will include one neighborhood of 153 small-lot single-family homes (to be called "Fuchsia") and another neighborhood of 131 detached condominiums (to be called "Verbena"). Verbena will include 25 affordable housing units. The Pacific Arroyo project is located on the southside of Los Angeles Avenue, west of Leta Yancy Road. The formation will be driven by a special tax analysis that will consider the types of property proposed for inclusion in the CFD and an analysis of the level of special tax burden they can bear. As needed, we will gather necessary data for this analysis directly from the City and the property owner/developer directly. By modeling the proposed buildout of the project and identifying the level to which properties can be fairly and equitably taxed, we can construct a special tax model that will accurately forecast the aggregate special tax revenue to be generated, and address the financing objectives of the City and the property owner/developer. The special tax analysis will be presented to and discussed with the financing team, and feedback will be incorporated into the final document 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). The following outlines the steps associated with the formation of a CFD for the funding of public facilities, which could necessitate the issuance of bonds. Task 1: Project Kick-off Meeting • • Following receipt of an authorization to proceed, we will discuss the process with the financing team 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 City staff and directly with the developer(s)and 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 facilities 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. Task 2: Goals and Policies Based on the results of the kick-off meeting, Willdan will review the existing CFD Goals and Policies to ensure that this formation is in compliance with those adopted policies. For instance: any specific guidelines related to the cumulative effective tax rates for.properties within the district, value-to-lien requirements, and other aspects of the CFD formation process. Task 3: Background Research Willdan will work with the City to identify and develop a full listing of public improvements to be funded by the CFD, depending upon the phasing of development and/or bond issuance, it might be possible that multiple improvement areas will be established to accommodate the timelines. /'COMPREHENSIVE. Special Tax Consulting Services ievINNOVATIVE. 1 TRUSTED. for Pacific Arroyo 624 i Willdan will research property ownership and/or development plans. In addition, prior to beginning formation proceedings, Willdan will contact the County Registrar's Office to confirm that the number of registered voters within the proposed district boundaries is less than twelve (12), which will allow for a landowner election. A cost estimate of the improvement items, incidentals, and issuance costs related to the CFD will be prepared, and the bond issuance costs will be discussed with the finance team to ensure that appropriate costs have been included correctly, such as: • Capitalized interest; - Any required bond security; and • Official Statement printing; & The costs for the various professionals involved in Reserve fund level; the financing. Task 4: Preliminary Tax Spread Analysis and Development of Tax Methodology A preliminary pro forma of the CFD's revenues and estimated expenses (based upon preliminary estimates, as available)will be presented to the financing team for evaluation and discussion. We will construct a special tax analysis that will be designed to identify the special tax revenue that can be generated from the various land use types proposed for the CFD. To the extent possible, we will utilize assessed value, pricing and/or market data to determine estimated tax burdens, with and without the CFD in place. The analysis will be based on available product mix data, market research, tax bills, title reports, and discussions with the City. Once we complete the special tax revenue projection, we will use this to create the special tax methodology to be included in the Rate and Method of Apportionment (RMA). The proposed maximum special taxes will be designed to generate sufficient revenue to meet CFD objectives and tax properties consistent with established development requirements and policies. Based on gathered information, Willdan will begin to prepare a preliminary special tax evaluation to accompany the pro forma. This study may include an overlapping tax analysis and maximum special tax coverage computations. It is anticipated that the analysis will incorporate multiple improvement areas. As necessary, we will prepare calculations from our database, including: • Special tax runs identifying maximum expected special tax coverage and comparing special tax revenues to costs for the financing of the public improvements. If appropriate, this will include scenarios for both level and escalating special taxes. • Value-to-lien computations for each parcel, each property owner, and (if necessary) differentiating between developed and undeveloped property by using appraiser data. • An overlapping debt table indicating property value, as compared to new district debt, as well as other Assessment District or Community Facilities District outstanding parcel debt. • Effective tax rate schedules denoting the projected total property tax burden including the new special tax. Willdan will develop special tax categories for property types within the CFD. Special considerations will be identified for discussion with the financing team, such as prepayment provisions. The special tax structure for the RMA will be developed based on CFD boundaries and Improvement Areas (and/or "zones"), improvements to be funded, proposed development, and effective tax rate limitations. An analysis will be required to determine an equitable spread of the overall burden, while considering the nature of public facilities to be constructed, as well as the area they will serve. The method will be discussed with the financing team to ensure that considerations have been addressed,and then included in both the Resolution of Intention and the Community Facilities District Public Report. The method will consider practical annual administration implications;the"trigger"event used to reclassify undeveloped property, to developed property; the developer's methodology acceptance; possible exemptions; and the effect, both financial and political, on the secondary property owner. c0MFREHENSIVE. Special Tax Consulting Services 2 INNOVATIVE. TRUSTED. for Pacific Arroyo 625 11 • Task 5: Rate and Method of Apportionment of Special Tax(RMA) An RMA of Special Tax for the Resolution of Intention will be prepared. Establishing Improvement Areas and/or tax zones will most likely be the preferred/utilized approach to equitably apportion facilities' cost to properties within the CFD, and increase security of any issued bonds. Considering possible phased approaches to construction and, therefore, bonding; this approach may be necessary to allow for the generation of sufficient project value, as development progresses. Establishing Improvement Areas provides flexibility in the following manner: 1. Provides the ability to group similar developments together in terms of schedule and product type. In so doing, the special tax structure will be more equitable and reasonable to the individual property owners and will relate to the likely financing schedule and needs. 2. Structure the special tax to accommodate potential phasing of multiple bond issuances, brought about by development schedules. This will provide the City with the ability to bond against phases of development (Improvement Areas)that are ready to pull building permits, without impacting (or having to wait on) the rest of the proposed development. 3. Provides the financing team with ability to monitor the current real estate market, and re-evaluate each established Improvement Area (in that context), prior to the issuance of any additional series of bonds. One phase of the development may not have the appropriate value-to-lien ratio or taxing capacity to issue bonds or maximize bond issuance. Through the establishment of Improvement Areas, such a phase would not impact the rest of the CFD; and the City could still issue bonds for other Improvement Areas.Also, a slowing market may cause the developer(s) to change their proposed plan of development. If so, the establishment of Improvement Areas will capture any such changes. In most CFDs that are formed to finance facilities, Willdan typically proposes that special taxes not only be levied for debt service; but also, finance the acquisition of authorized improvements, and the construction of authorized future facilities. This will provide the ability to levy the full amount of special tax on property, regardless of whether bonds have been issued. Finally, Willdan endeavors to provide a simple and practical means of prepaying special taxes.A description of various alternatives for structuring the special tax will be provided to the City and financing team; and then based on received comments, incorporated into the RMA. Task 6: Community Facilities District Report Willdan will prepare a preliminary CFD Report that includes a description of the public improvements to be funded, cost estimates, incidental expenses, the RMA, boundary map, and other information. The CFD Report will include the following components: • A description of the proposed public facilities to be funded; • Costs and estimated construction dates of proposed facilities; • Estimates of bond issuance and other incidental costs; • Projected bonded indebtedness and anticipated issuance dates; and • A projection and explanation of annual special tax rates (by special tax classification) for each year bonds are outstanding or services funded. Task 7: Document Review and Preparation Willdan will prepare drafts of the required petition, Consent and Waiver documents, and notices/ballots for review and comment. As we do not practice law, we ask that designated legal counsel review the documents. We will however assist legal counsel in identifying pertinent legal issues and modifications necessary before the documents are implemented. After successful formation of the CFD, Willdan will coordinate the recordation of the"Notice of Special Tax Lien." /COMPREHENSIVE. Special Tax Consulting Services INNOVATIVE. 3 626 TRUSTE. for Pacific Arroyo {fir Task 8: Bond Issuance Support We will participate in the creation and review of financing documents. Typically, as the Community Facilities District Public Report is being finalized to include the best available project costs, the financing team begins preparing the Preliminary Official Statement. Willdan will provide their necessary expertise on POS and OS development for the issuance of CFD bonds. Willdan will provide the necessary data analysis, support and documentation to support each proposed bond issuance. It is not currently known when the bonds may be issued. Therefore, the Willdan Team will provide a more detailed work plan for these efforts once the potential of a bond issuance is realized. Project Meeting Attendance Willdan will attend one (1) in-person meeting, either the Intent Meeting or the Public Hearing. The City will be responsible for providing the following items: • Proposed project development information, including (as applicable): — Detailed development plans; — Data on proposed product mix(e.g., residential types, commercial types [retail, office, etc.]); - Estimated construction and absorption schedules; and — Maps and/or diagrams of the proposed project area. • Pertinent budget information, including estimated/projected construction costs, and City overhead and/or administration; • Publication of Council meetings/Public Hearings notices in the local newspaper; • Developer/owner contact information for noticing and balloting purposes; • Review of draft reports and resolutions prior to the preparation of final documents (this may also include review by City staff and designated legal counsel); and • Opinions (as requested)from legal counsel. Annual Administration Services Upon successful formation of the CFD, Willdan proposes to undertake the following tasks to annually administer the district. 1. Develop and periodically update an electronic database containing parcel basis data and annual special tax levy amounts by Assessor's Parcel Number. 2. Annually calculate and apportion the special taxes as specified in the Rate and Method of Apportionment of Special Tax. • 3. Use, if applicable,the listing of any approved exemptions provided by the County; identify each parcel,and modify the proposed special tax, accordingly. • 4. Prepare, if necessary, an annual resolution that establishes the budget for the fiscal year and application of the special tax to be submitted to the County, including the special tax summary for the fiscal year. 5. Provide Special Tax levies for each parcel by Assessor's Parcel Number to the County Auditor/Controller's Office in the media, format and configuration required by the County for placement on the annual property tax roll. 6. Research parcel exceptions provided by the County and, if possible, resubmit installment amounts that are unapplied by the County Auditor/Controller's Office. Willdan will manually invoice special tax installments that cannot be collected on the County property tax roll on behalf of the City. 7. Provide a toll-free number to field inquiries from City staff, property owners and other interested parties regarding special tax installments and related information. - 8. Monitor delinquencies each February and May, and submit periodic delinquency reports to the City. /COMPREHENSIVE Special Tax Consulting Services 4 INNOVATIVE. TRUSTED, for Pacific Arroyo < < a." 9. Prepare an Annual Special Tax report. This report will include: • The identification of CFD administrative cost items eligible for recovery by the County; The review of fund balances to identify any surplus funds; F The requirements for debt service; • The delinquency summaries; and • A cover letter to the report providing related recommendations or issues, if any. The cover letter is not intended to be a component of the report. 10. Provide an annual report to the California Debt and Investment Advisory Commission (CDIAC) by October 30 if required by the California Government Code, Section 53359.5(b), as amended. 11. Prepare "Notice of Special Tax" as required by the California Government Code, Sections 53340.2(b) and 53341.5, as amended. The fee for this service is $15 per Notice and is to be paid by the requestor. 12. Assist the City in the filing of a report with its governing body each year to comply with legislation approved in 2001 that enforces additional reporting requirements. This annual filing shall meet with regulations imposed by the California Government Code, Section 50075.3 (a) & (b) and/or Section 53411 (a) &(b), as amended (Senate Bill 165). 13. Be available to attend meetings. 14. Calculate written prepayment quotes for individual special tax liens, as described in the Rate and Method of Apportionment of Special Tax or by resolution. For parcels prepaying the special tax, Willdan will coordinate the removal of the lien. The fee for this service is $250 per calculation, to be paid by the requestor. 15. Perform required bond call spreads and coordinate the early redemption of outstanding bonds. Additional efforts needed to complete bond calls, such as cash flow certificates, special analyses and/or atypical spread calculations, shall be charged hourly using our then-current hourly rates. However, Willdan will not begin any additional work without prior approval from City staff. 16. Prepare and disseminate the Continuing Disclosure reports under the terms of the Continuing Disclosure Agreement to EMMA, the Willdan website, the appropriate State Information Repository, and other parties as required. In addition, upon notification by the City and/or if Willdan becomes aware and if deemed to be material, prepare Notices of Occurrence of Listed Events covering events enumerated in Rule 15c2-12(b)for review by the City. Client Responsibilities — Annual Administration For annual administration services, Willdan will rely on assistance from the City in obtaining the following information: • Annual information related to fund balances for the CFD. • The budget summary to be incorporated into the annual resolution establishing the budget and special tax rates for the district. • Information regarding land subdivision, issuance of building permits and/or certificates of occupancy (as required by the City). Although Willdan will annually research information, it may still be necessary to obtain additional assistance from the City. • Existing delinquency information. • Current development plan/tentative maps and annual changes, modifications or updates, if necessary. • Confirmed assessment roll and other district information for new districts as they become available, if required. Willdan will rely on the validity and accuracy of the City's data and documentation to complete the services described herein. We will rely on the data as being accurate without performing an independent verification of accuracy, and that we will not be responsible for any errors that result from inaccurate data provided by the client or a third party. 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. IA/ COMPREHENSIVE. Special Tax Consulting Services INNOVATIVE. TRUSTED. for Pacific Arroyo 6 2 8 1 Fee for Services Community Facilities District Formation As described in the Scope of Services, Willdan will provide CFD formation services for the fixed fee of$26,500. 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. Annual Administration Services Willdan proposes to annually administer the CFD associated with the Pacific Arroyo development for the annual fee of $5,000. This fee is based on the time estimated that will be spent on average each year to provide the administration services outlined in the Scope of Services section. All costs associated with annual administration are fully recoverable either through the special tax levy or through payment by requestor for special services. Fees and rates are subject to increase, which will not exceed the most recent change in the annual Consumer Price Index(CPI) for the"All Urban Consumers" Los Angeles—Anaheim—Riverside—San Bernardino region, as calculated by the United States Bureau of Labor Statistics. Delinquency Management Services As the service is rendered, the following fees will be invoiced to the City. They are ultimately paid by, or on behalf of, the delinquent property owners. Delinquency Management Services Fees Fees Ultimately Reimbursed to Agency by Property Owner Delinquency Reminder Letter $ 15 Delinquency Demand Letter 45 Foreclosure Letter 65 Effect Removal from Tax Roll& Record Subsequent Notice of Satisfaction 125 Payment Plan 200 Subsequent Foreclosure Services 150 Fees Paid Directly to Willdan by Requestor Delinquency Demand Payoff(1) $ 50 Zero Demand w 50 (1) This fee is waived for the property owner(except for escrow purposes). This fee complies with Section 8833 of the California Streets and Highways Code and/or Section 53356.2 of the California Government Code, which requires recording of a Notice of Intent to Remove Delinquent Special Assessments and/or Special Taxes from the County tax roll. It DOES NOT include the County tax roll removal charge, or similar fee, if any. Reimbursable Expenses Willdan will be reimbursed for out-of-pocket expenses. Examples of reimbursable expenses include, but are not limited to: postage; travel expenses; mileage (current prevailing rate); maps; electronic data provided from the county and/or other applicable resources; construction cost periodicals; and copying (currently 6¢ per copy). COMPREHENSIVE. Special Tax Consulting Services 6 INNOVATIVE. TRUSTED. for Pacific Arroyo 629