HomeMy WebLinkAbout06 - PSA for Special District Administration Services Related to Special Tax and Assessment DistrictsQ �EwPpRT
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9C/FOR
TO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
PREPARED BY:
PHONE:
TITLE
ABSTRACT:
July 11, 2023
Agenda Item No. 6
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Jason AI -Imam, Finance Director/Treasurer — 949-644-3126,
jalimam@newportbeachca.gov
Trevor Power, Accounting Manager, tpower@newportbeachca.gov
949-644-3125
Award of Professional Services Contract to Willdan Financial
Services for Special District Administration Services Related to
Special Tax and Assessment Districts
The City of Newport Beach (City) issued a Request for Proposals for services related to
special district administration of the City's special tax and assessment districts for the
five-year period ending June 30, 2028. These services pertain to administration of the
districts after any applicable financing has been issued. Based on the results of the
competitive selection process, it is recommended that the City enter into a professional
services agreement with Willdan Financial Services.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Approve a five-year Professional Services Agreement with Willdan Financial Services
for special district administration services for the five-year period ending June 30,
2028, and a total not -to -exceed amount of $395,000-1 and
c) Authorize the Mayor and City Clerk to execute the Agreement.
DISCUSSION:
The City has contracted with Willdan Financial Services previously to oversee and assist
with the administration of the City's special districts after financing for a district has been
issued. For each individual district, administration services primarily include providing
staffing to field district inquiries from property owners, City staff or other interested parties;
preparing the annual levy for the property tax roll; maintaining a database containing all
parcel data; providing assessment lien payoff quotes as requested; providing delinquency
management services; and preparing all required financial reporting. The current contract
with Willdan Financial Services is at the end of its term.
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Award of Professional Services Contract to Willdan Financial Services for Special
District Administration Services Related to Special Tax and Assessment Districts
July 11, 2023
Page 2
The City currently has six active districts in which bonds are outstanding, and two more
districts will have bonds issued by the end of July, bringing the total number of districts
that will be administered at the start of this contract to eight. One district is expected to
have its bonds paid off during the term of this contract.
On March 14, 2023, the City posted a Request for Proposals (RFP) for special district
administration services. By the RFP due date, the City had four firms submit a proposal,
including Willdan Financial Services, NBS, David Taussig and Associates, and Webb
Municipal Finance, LLC. Under the administration of the Purchasing and Contracts
Administrator, proposals were reviewed and ranked by a three -person selection
committee comprised of the accounting manager and two senior accountants. The written
technical proposals were reviewed and ranked by the selection committee before the
sealed cost bids were opened and scored.
All firms met the minimum requirements for their proposals to be evaluated and staff
evaluated and ranked each firm's proposal based on the following criteria:
• Qualifications and experience
• Experience providing similar services to other public agencies
• Understanding of the project and subject matter expertise
• Ability to deploy and provide services
• Proposal cost
The results of the selection committee's technical score and cost ratio analysis are
summarized in the table below:
Proposer
Willdan Financial Services
Proposal Score
88.07
NBS
75.97
David Taussig and Associates
72.33
Webb Municipal Finance, LLC
70.72
Based on the results of the competitive selection process, it is recommended that the City
enter into a professional services agreement with Willdan Financial Services for special
district administration services for the five-year period ending June 30, 2028.
FISCAL IMPACT:
Contract costs for special district administration services are primarily passed on to the
property owners within each district as part of the special assessment and are included
in the annual property tax levy. The operating budget for Fiscal Year 2023-2024 includes
sufficient funding for costs associated with the current fiscal year.
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Award of Professional Services Contract to Willdan Financial Services for Special
District Administration Services Related to Special Tax and Assessment Districts
July 11, 2023
Page 3
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Professional Services Agreement
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Attachment A
Attachment A — Professional Services Agreement
PROFESSIONAL SERVICES AGREEMENT
WITH WILLDAN FINANCIAL SERVICES FOR
SPECIAL DISTRICT ADMINISTRATION SERVICES RELATED TO SPECIAL TAX
AND ASSESSMENT DISTRICTS
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and
entered into as of this 11th day of July, 2023 ("Effective Date"), by and between the CITY
OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and
WILLDAN FINANCIAL SERVICES, a California Corporation ("Consultant"), whose
address is 27368 Via Industria, Suite 200, Temecula, California 92590, and is made with
reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. City desires to engage Consultant to Special District Administration Services
Related to Special Tax and Assessment Districts ("Project").
C. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the professional services described in this Agreement.
D. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM
The term of this Agreement shall commence on the Effective Date, and shall
terminate on June 30, 2026 ("Initial Term"), unless terminated earlier as set forth herein.
City shall have the right to exercise two (2) additional one-year consecutive term
extensions (each "Option Term"). Should City wish to exercise an Option Term, City shall
notify Consultant in writing no less than ten (10) calendar days of the prior term's end
date.
2. SERVICES TO BE PERFORMED
Consultant shall diligently perform all the services described in the Scope of
Services attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). City may elect to delete certain Services within the Scope of Services at its
sole discretion.
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3. TIME OF PERFORMANCE
3.1 Time is of the essence in the performance of Services under this Agreement
and Consultant shall perform the Services in accordance with the schedule included in
Exhibit A. In the absence of a specific schedule, the Services shall be performed to
completion in a diligent and timely manner. The failure by Consultant to strictly adhere to
the schedule set forth in Exhibit A, if any, or perform the Services in a diligent and timely
manner may result in termination of this Agreement by City.
3.2 Notwithstanding the foregoing, Consultant shall not be responsible for
delays due to causes beyond Consultant's reasonable control. However, in the case of
any such delay in the Services to be provided for the Project, each party hereby agrees
to provide notice within two (2) calendar days of the occurrence causing the delay to the
other party so that all delays can be addressed.
3.3 Consultant shall submit all requests for extensions of time for performance
in writing to the Project Administrator as defined herein not later than ten (10) calendar
days after the start of the condition that purportedly causes a delay. The Project
Administrator shall review all such requests and may grant reasonable time extensions
for unforeseeable delays that are beyond Consultant's control.
3.4 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the circumstances, by
hand -delivery or mail.
4. COMPENSATION TO CONSULTANT
4.1 City shall pay Consultant for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and the Schedule of Billing
Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's
compensation for all Work performed in accordance with this Agreement, including all
reimbursable items and subconsultant fees, shall not exceed Three Hundred Ninety
Five Thousand Dollars and 00/100 ($395,000.00), without prior written authorization
from City. No billing rate changes shall be made during the term of this Agreement without
the prior written approval of City.
4.2 Payment for services will be made quarterly on invoices deemed
satisfactory to the City, with payment terms of net thirty (30) days upon receipt of invoice.
Contractor shall submit invoices within fifteen (15) days from the end of quarter in which
services have been provided. Contractor shall provide invoices with sufficient detail to
ensure compliance with pricing as set forth in this Agreement. The information required
may include date(s) of work and material costs.
4.3 City shall reimburse Consultant only for those costs or expenses specifically
identified in Exhibit B to this Agreement or specifically approved in writing in advance by
City.
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4.4 Consultant shall not receive any compensation for Extra Work performed
without the prior written authorization of City. As used herein, "Extra Work" means any
Work that is determined by City to be necessary for the proper completion of the Project,
but which is not included within the Scope of Services and which the parties did not
reasonably anticipate would be necessary at the execution of this Agreement.
Compensation for any authorized Extra Work shall be paid in accordance with the
Schedule of Billing Rates as set forth in Exhibit B.
5. PROJECT MANAGER
5.1 Consultant shall designate a Project Manager, who shall coordinate all
phases of the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Consultant has designated Susana Hernandez to be
its Project Manager. Consultant shall not remove or reassign the Project Manager or any
personnel listed in Exhibit A or assign any new or replacement personnel to the Project
without the prior written consent of City. City's approval shall not be unreasonably
withheld with respect to the removal or assignment of non -key personnel.
5.2 Consultant, at the sole discretion of City, shall remove from the Project any
of its personnel assigned to the performance of Services upon written request of City.
Consultant warrants that it will continuously furnish the necessary personnel to complete
the Project on a timely basis as contemplated by this Agreement.
5.3 If Consultant is performing inspection services for City, the Project Manager
and any other assigned staff shall be equipped with a cellular phone to communicate with
City staff. The Project Manager's cellular phone number shall be provided to City.
6. ADMINISTRATION
This Agreement will be administered by the Finance. City's Finance Director or
designee shall be the Project Administrator and shall have the authority to act for City
under this Agreement. The Project Administrator shall represent City in all matters
pertaining to the Services to be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
To assist Consultant in the execution of its responsibilities under this Agreement,
City agrees to provide access to and upon request of Consultant, one copy of all existing
relevant information on file at City. City will provide all such materials in a timely manner
so as not to cause delays in Consultant's Work schedule.
8. STANDARD OF CARE
8.1 All of the Services shall be performed by Consultant or under Consultant's
supervision. Consultant represents that it possesses the professional and technical
personnel required to perform the Services required by this Agreement, and that it will
perform all Services in a manner commensurate with community professional standards
and with the ordinary degree of skill and care that would be used by other reasonably
Willdan Financial Services Page 3
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competent practitioners of the same discipline under similar circumstances. All Services
shall be performed by qualified and experienced personnel who are not employed by City.
By delivery of completed Work, Consultant certifies that the Work conforms to the
requirements of this Agreement, all applicable federal, state and local laws, and legally
recognized professional standards.
8.2 Consultant represents and warrants to City that it has, shall obtain, and shall
keep in full force and effect during the term hereof, at its sole cost and expense, all
licenses, permits, qualifications, insurance and approvals of whatsoever nature that is
legally required of Consultant to practice its profession. Consultant shall maintain a City
of Newport Beach business license during the term of this Agreement.
8.3 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by reason of strikes,
lockouts, accidents, acts of God, or the failure of City to furnish timely information or to
approve or disapprove Consultant's Work promptly, or delay or faulty performance by
City, contractors, or governmental agencies.
9. HOLD HARMLESS
9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend
and hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers and employees (collectively, the "Indemnified Parties") from and against any
and all claims (including, without limitation, claims for bodily injury, death or damage to
property), demands, obligations, damages, actions, causes of action, suits, losses,
judgments, fines, penalties, liabilities, costs and expenses (including, without limitation,
attorneys' fees, disbursements and court costs) of every kind and nature whatsoever
(individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate
(directly or indirectly) to any breach of the terms and conditions of this Agreement, any
Work performed or Services provided under this Agreement including, without limitation,
defects in workmanship or materials or Consultant's presence or activities conducted on
the Project (including the negligent, reckless, and/or willful acts, errors and/or omissions
of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants,
subcontractors, anyone employed directly or indirectly by any of them or for whose acts
they may be liable, or any or all of them).
9.2 Notwithstanding the foregoing, nothing herein shall be construed to require
Consultant to indemnify the Indemnified Parties from any Claim arising from the sole
negligence orwillful misconduct of the Indemnified Parties. Nothing in this indemnity shall
be construed as authorizing any award of attorneys' fees in any action on or to enforce
the terms of this Agreement. This indemnity shall apply to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act
as a limitation upon the amount of indemnification to be provided by Consultant.
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10. INDEPENDENT CONTRACTOR
It is understood that City retains Consultant on an independent contractor basis
and Consultant is not an agent or employee of City. The manner and means of
conducting the Work are under the control of Consultant, except to the extent they are
limited by statute, rule or regulation and the expressed terms of this Agreement. No civil
service status or other right of employment shall accrue to Consultant or its employees.
Nothing in this Agreement shall be deemed to constitute approval for Consultant or any
of Consultant's employees or agents, to be the agents or employees of City. Consultant
shall have the responsibility for and control over the means of performing the Work,
provided that Consultant is in compliance with the terms of this Agreement. Anything in
this Agreement that may appear to give City the right to direct Consultant as to the details
of the performance of the Work or to exercise a measure of control over Consultant shall
mean only that Consultant shall follow the desires of City with respect to the results of the
Services.
11. COOPERATION
Consultant agrees to work closely and cooperate fully with City's designated
Project Administrator and any other agencies that may have jurisdiction or interest in the
Work to be performed. City agrees to cooperate with the Consultant on the Project.
12. CITY POLICY
Consultant shall discuss and review all matters relating to policy and Project
direction with City's Project Administrator in advance of all critical decision points in order
to ensure the Project proceeds in a manner consistent with City goals and policies.
13. PROGRESS
Consultant is responsible for keeping the Project Administrator informed on a
regular basis regarding the status and progress of the Project, activities performed and
planned, and any meetings that have been scheduled or are desired.
14. INSURANCE
Without limiting Consultant's indemnification of City, and prior to commencement
of Work, Consultant shall obtain, provide and maintain at its own expense during the term
of this Agreement or for other periods as specified in this Agreement, policies of insurance
of the type, amounts, terms and conditions described in the Insurance Requirements
attached hereto as Exhibit C, and incorporated herein by reference.
15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the Services to be
provided under this Agreement shall not be assigned, transferred contracted or
subcontracted out without the prior written approval of City. Any of the following shall be
construed as an assignment: The sale, assignment, transfer or other disposition of any
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of the issued and outstanding capital stock of Consultant, or of the interest of any general
partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or
joint -venture or syndicate or co -tenancy, which shall result in changing the control of
Consultant. Control means fifty percent (50%) or more of the voting power or twenty-five
percent (25%) or more of the assets of the corporation, partnership or joint -venture.
16. SUBCONTRACTING
The subcontractors authorized by City, if any, to perform Work on this Project are
identified in Exhibit A. Consultant shall be fully responsible to City for all acts and
omissions of any subcontractor. Nothing in this Agreement shall create any contractual
relationship between City and any subcontractor nor shall it create any obligation on the
part of City to pay or to see to the payment of any monies due to any such subcontractor
other than as otherwise required by law. City is an intended beneficiary of any Work
performed by the subcontractor for purposes of establishing a duty of care between the
subcontractor and City. Except as specifically authorized herein, the Services to be
provided under this Agreement shall not be otherwise assigned, transferred, contracted
or subcontracted out without the prior written approval of City.
17. OWNERSHIP OF DOCUMENTS
17.1 Each and every report, draft, map, record, plan, document and other writing
produced, including but not limited to, websites, blogs, social media accounts and
applications (hereinafter "Documents"), prepared or caused to be prepared by Consultant,
its officers, employees, agents and subcontractors, in the course of implementing this
Agreement, shall become the exclusive property of City, and City shall have the sole right
to use such materials in its discretion without further compensation to Consultant or any
other party. Additionally, all material posted in cyberspace by Consultant, its officers,
employees, agents and subcontractors, in the course of implementing this Agreement,
shall become the exclusive property of City, and City shall have the sole right to use such
materials in its discretion without further compensation to Consultant or any other party.
Consultant shall, at Consultant's expense, provide such Documents, including all logins
and password information to City upon prior written request.
17.2 Documents, including drawings and specifications, prepared by Consultant
pursuant to this Agreement are not intended or represented to be suitable for reuse by
City or others on any other project. Any use of completed Documents for other projects
and any use of incomplete Documents without specific written authorization from
Consultant will be at City's sole risk and without liability to Consultant. Further, any and
all liability arising out of changes made to Consultant's deliverables under this Agreement
by City or persons other than Consultant is waived against Consultant, and City assumes
full responsibility for such changes unless City has given Consultant prior notice and has
received from Consultant written consent for such changes.
17.3 All written documents shall be transmitted to City in formats compatible with
Microsoft Office and/or viewable with Adobe Acrobat.
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18. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the Services in this Agreement, shall be kept confidential
unless City expressly authorizes in writing the release of information.
19. INTELLECTUAL PROPERTY INDEMNITY
Consultant shall defend and indemnify City, its agents, officers, representatives
and employees against any and all liability, including costs, for infringement or alleged
infringement of any United States' letters patent, trademark, or copyright, including costs,
contained in Consultant's Documents provided under this Agreement.
20. RECORDS
Consultant shall keep records and invoices in connection with the Services to be
performed under this Agreement. Consultant shall maintain complete and accurate
records with respect to the costs incurred under this Agreement and any Services,
expenditures and disbursements charged to City, for a minimum period of three (3) years,
or for any longer period required by law, from the date of final payment to Consultant
under this Agreement. All such records and invoices shall be clearly identifiable.
Consultant shall allow a representative of City to examine, audit and make transcripts or
copies of such records and invoices during regular business hours. Consultant shall allow
inspection of all Work, data, Documents, proceedings and activities related to the
Agreement for a period of three (3) years from the date of final payment to Consultant
under this Agreement.
21. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction of
the dispute with respect to such payment. Such withholding shall not be deemed to
constitute a failure to pay according to the terms of this Agreement. Consultant shall not
discontinue Work as a result of such withholding. Consultant shall have an immediate
right to appeal to the City Manager or designee with respect to such disputed sums.
Consultant shall be entitled to receive interest on any withheld sums at the rate of return
that City earned on its investments during the time period, from the date of withholding of
any amounts found to have been improperly withheld.
22. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than what would have
resulted if there were not errors or omissions in the Work accomplished by Consultant,
the additional design, construction and/or restoration expense shall be borne by
Consultant. Nothing in this Section is intended to limit City's rights under the law or any
other sections of this Agreement.
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23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Consultants in connection with the Project.
24. CONFLICTS OF INTEREST
24.1 Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act") and/or Government Code §§ 1090 et
seq., which (1) require such persons to disclose any financial interest that may
foreseeably be materially affected by the Work performed under this Agreement, and (2)
prohibit such persons from making, or participating in making, decisions that will
foreseeably financially affect such interest.
24.2 If subject to the Act and/or Government Code §§ 1090 et seq., Consultant
shall conform to all requirements therein. Failure to do so constitutes a material breach
and is grounds for immediate termination of this Agreement by City. Consultant shall
indemnify and hold harmless City for any and all claims for damages resulting from
Consultant's violation of this Section.
25. NOTICES
25.1 All notices, demands, requests or approvals, including any change in
mailing address, to be given under the terms of this Agreement shall be given in writing,
and conclusively shall be deemed served when delivered personally, or on the third
business day after the deposit thereof in the United States mail, postage prepaid, first-
class mail, addressed as hereinafter provided.
25.2 All notices, demands, requests or approvals from Consultant to City shall
be addressed to City at:
Attn: Finance Director
Finance Department
City of Newport Beach
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658
25.3 All notices, demands, requests or approvals from City to Consultant shall
be addressed to Consultant at:
Attn: Susana Hernandez
Willdan Financial Services
27368 Via Industria, Suite 200
Temecula, CA 92590
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26. CLAIMS
Unless a shorter time is specified elsewhere in this Agreement, before making its
final request for payment under this Agreement, Consultant shall submit to City, in writing,
all claims for compensation under or arising out of this Agreement. Consultant's
acceptance of the final payment shall constitute a waiver of all claims for compensation
under or arising out of this Agreement except those previously made in writing and
identified by Consultant in writing as unsettled at the time of its final request for payment.
Consultant and City expressly agree that in addition to any claims filing requirements set
forth in the Agreement, Consultant shall be required to file any claim Consultant may have
against City in strict conformance with the Government Claims Act (Government Code
sections 900 et seq.).
27. TERMINATION
27.1 In the event that either party fails or refuses to perform any of the provisions
of this Agreement at the time and in the manner required, that party shall be deemed in
default in the performance of this Agreement. If such default is not cured within a period
of two (2) calendar days, or if more than two (2) calendar days are reasonably required
to cure the default and the defaulting party fails to give adequate assurance of due
performance within two (2) calendar days after receipt of written notice of default,
specifying the nature of such default and the steps necessary to cure such default, and
thereafter diligently take steps to cure the default, the non -defaulting party may terminate
the Agreement forthwith by giving to the defaulting party written notice thereof.
27.2 Notwithstanding the above provisions, City shall have the right, at its sole
and absolute discretion and without cause, of terminating this Agreement at any time by
giving no less than seven (7) calendar days' prior written notice to Consultant. In the
event of termination under this Section, City shall pay Consultant for Services
satisfactorily performed and costs incurred up to the effective date of termination for which
Consultant has not been previously paid. On the effective date of termination, Consultant
shall deliver to City all reports, Documents and other information developed or
accumulated in the performance of this Agreement, whether in draft or final form.
28. STANDARD PROVISIONS
28.1 Recitals. City and Consultant acknowledge that the above Recitals are true
and correct and are hereby incorporated by reference into this Agreement.
28.2 Compliance with all Laws. Consultant shall, at its own cost and expense,
comply with all statutes, ordinances, regulations and requirements of all governmental
entities, including federal, state, county or municipal, whether now in force or hereinafter
enacted. In addition, all Work prepared by Consultant shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be subject
to approval of the Project Administrator and City.
28.3 Waiver. A waiver by either party of any breach, of any term, covenant or
condition contained herein shall not be deemed to be a waiver of any subsequent breach
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of the same or any other term, covenant or condition contained herein, whether of the
same or a different character.
28.4 Integrated Contract. This Agreement represents the full and complete
understanding of every kind or nature whatsoever between the parties hereto, and all
preliminary negotiations and agreements of whatsoever kind or nature are merged herein.
No verbal agreement or implied covenant shall be held to vary the provisions herein.
28.5 Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and the Scope of Services or any other
attachments attached hereto, the terms of this Agreement shall govern.
28.6 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or
against either party by reason of the authorship of the Agreement or any other rule of
construction which might otherwise apply.
28.7 Amendments. This Agreement may be modified or amended only by a
written document executed by both Consultant and City and approved as to form by the
City Attorney.
28.8 Severability. If any term or portion of this Agreement is held to be invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
28.9 Controlling Law and Venue. The laws of the State of California shall govern
this Agreement and all matters relating to it and any action brought relating to this
Agreement shall be adjudicated in a court of competent jurisdiction in the County of
Orange, State of California.
28.10 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee
or applicant for employment because race, religious creed, color, national origin,
ancestry, physical handicap, medical condition, marital status, sex, sexual orientation,
age or any other impermissible basis under law.
28.11 No Attorneys' Fees. In the event of any dispute or legal action arising under
this Agreement, the prevailing party shall not be entitled to attorneys' fees.
28.12 Counterparts. This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute one (1) and the same instrument.
[SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: (9- 24L,
By:
aro C. H p zg z3 we
Attor ey
ATTEST:
Date:
IN
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
Bv:
Noah Blom
Mayor
CONSULTANT: Willdan Financial
Services, a California Corporation
Date:
By:
Gladys Medina
Vice President
Date:
By:
Rebekah Smith
Assistant Secretary
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Exhibit C — Insurance Requirements
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EXHIBIT
SCOPE OF SERVICES
Willdan Financial Services Page A-1 6-16
Scope of Services:
The Scope of Services will encompass a wide array of tasks and shall be comprehensive in
nature, including all necessary research, documentation, exhibit preparation, legislative analysis,
and attendance at staff meetings and/or public hearings required to levy all appropriate parcels
accurately and efficiently.
The following generally describes the services required from the consultant for administering the
annual levy of assessments and/or special taxes:
1. General Special District Administration Services
a. Review the existing administrative policies and procedures to ensure efficiency
and compliance with regulatory codes.
b. Answer questions from staff and provide general guidance in related areas.
c. Provide a toll -free phone number and staffing to field inquiries concerning special
tax district administration, annual Special Taxes, and payoff information for City
staff, property owners, and other interested parties regarding annual installments.
d. Notify the City of important changes in laws affecting special districts.
e. Prepare and record the amended assessment diagrams that result from lot splits,
subdivisions or combination.
f. Perform necessary functions to comply with annual reporting requirements of the
1915 Act Assessment Districts in compliance with Revenue and Taxation Code
163.
g. Complete all reports on special districts required by the State of California or its
agencies, or the bond investors, including disclosure, dissemination, and investor
relation services, as needed.
h. Provide on -site visits, as needed, and attend City Council meetings and other
special meetings (as requested by City staff) to advance effective administration
of the Special Districts.
i. Provide consulting and expertise as needed to assist the City with completing all
tasks needed to refund any monies owed to the property owners of the assessment
district.
j. Ensure timely completion of all administration related items.
2. Special District Administration Services
a. Prepare an Annual Special Tax Levy Report to include: a) Annual District budget
for each District; b) debt service requirements; c) delinquency summaries; d)
related recommendations or issues.
b. Prepare an Annual Levy Report for each special district summarizing the
information used to calculate the annual installment amount for each parcel.
c. Maintain and periodically update an electronic database containing parcel basis
data and annual special tax levy amounts by Assessor's Parcel Number.
d. The Consultant shall calculate the maximum Special Tax rates by adjusting the
previous years' rates as specified in the Rate and Method of Apportionment
("RMA") of Special Tax for each District. Based on information provided by the City
regarding budget requirements for the following fiscal year, fund balances and
6-17
reserve requirements, the actual Special Tax rates for each billing category shall
be determined and the costs distributed in accordance with the RMA.
e. Provide City with the district budgets to be approved prior to County submittals.
f. Provide assessment and special tax installment information for each parcel,
formatted in the required configuration and media, to the Orange County Auditor -
Controller's office for placement on the property tax roll within the timeframes
established by the Orange County Auditor -Controller's office.
g. Provide pre -payment quotes of special tax liens for all interested parties upon
request. When applicable, fees for this service are paid by the requesting party. If
the pre -payment quote is related to a Special District, there will be no charge to
the City. If the pre -payment quote is related to an assessment district, there will be
no charge to property owners and/or the City.
h. Obtain recordation document numbers for prepaid assessments and taxes and
coordinate the Release of Lien with the County.
i. Correct and resubmit, or hand bill as needed, installment amounts for parcels that
the Orange County Auditor -Controller's Office does not apply to the tax roll.
j. Provide a toll -free number to field inquiries from the City staff, property owners and
other interest parties regarding Special Tax/assessment installments and related
information.
3. Arbitrage Rebate and/or Yield Restriction
a. Collect third -party data and other statistical, financial, and cash flow information
required for the reports.
b. Review all regulatory provisions and calculate the arbitrage rebate liability and
prepare Arbitrage Rebate and/or Yield Restriction Calculation Reports (frequency
to be determined) containing all pertinent and required reporting information,
consult with City staff (as necessary) regarding Arbitrage -related matters, and file
all IRS forms required for rebate payments and refund requests.
c. Assist the City (as necessary) should an IRS audit event occur.
d. Prepare an Arbitrage Rebate and/or Yield Restriction Calculation report for each
tax-exempt financing that is currently subject to Section 148(f) of the Internal
Revenue Code.
e. Stay aware of enforcement actions and changes to the code/regulations that affect
arbitrage and/or yield restriction compliance requirements and provide necessary
services to maintain compliance with applicable arbitrage rebate provisions.
4. Annual Continuing Disclosure and CDIAC Reporting Obligations
a. Collect pertinent data relating to the debt issue in order to comply with the
Continuing Disclosure Agreement of each Special Tax District requiring an annual
report.
b. Prepare the Annual Continuing Disclosure Reports for all required disclosures for
City approval and then disseminate the final reports on the EMMA portal website:
emma.msrb.org.
c. Notify City staff of ratings changes, or other events enumerate in Rule 15c2-12(b).
which would require a Notice of Certain Significant Event to be posted to EMMA.
d. Provide annual reports as required to the California Debt and Investment Advisory
Commission (CDIAC) by December 31st if required by the California Government
Code, Section 53359.5(b), as amended.
e. In order to comply with SB 10129, Consultant will submit an annual report for any
issue of debt for which there was submitted a report of final sale on or after January
21, 2017. There were five (5) issuances to report for FY2021/2022 related to
Special Districts.
5. Delinquency Management Services
a. Consultant will monitor delinquencies at least twice a year, submit periodic reports
to the City and coordinate collection and foreclosure activity when needed.
b. Send a delinquency reminder letter after the first installment of the tax bill becomes
delinquent.
c. Send a 30-day delinquency demand letter after the second installment of the tax
bill becomes delinquent.
d. Cause the removal of the delinquent installments for the current and/or prior tax
year(s) from the County tax roll, in compliance with SB 1471.
e. Send a 21-day delinquency foreclosure letter. Foreclosure letters shall contain a
brochure providing answers to frequently asked questions.
f. Coordinate with the City's preferred counsel to collect the delinquent installments
and/or proceed against all assigned delinquencies, in accordance with he bond
documents.
g. Assist foreclosure counsel to initiate and prosecute judicial foreclosure
proceedings.
6. Bond Administration and Formation
a. Support the City's (and/or consultants hired by the City) issuance of new bond debt
on existing districts or refinancing of existing bond debt. (Usually done at an
additional cost as this service will be used on an as needed basis).
b. Perform all required bond call spreads in accordance with applicable documents
and coordinate the early redemption of outstanding bonds as needed including
working with fiscal agent/paying agent, or any other consultant to complete the
bond call.
7. Other Miscellaneous Services
It may be necessary for the consultant to render additional services or supplementary
services from time to time. Any such additional work shall be agreed to between the City
and the consultant prior to commencement of said work.
6-19
EXHIBIT B
SCHEDULE OF BILLING RATES
Willdan Financial Services Page B-1 6-20
ASSESSMENT DISTRICT ADMINISTRATION 1 REVENUE & TAXATION CODE 163
The fee structure shall be based on the number of parcels/districts below. This number may
change substantially therefore all hourly rates, fees, and expense rates submitted shall
anticipate these changes and any future applicable increases.
Assessment District
No. of
Base Fee
Per Parcel
Annual Fee
Parcels
671
Reassessment District 2012
$8,400
o
$8,400*
AD111 (Newport Blvd 1 23rd
198
Street 1 Ocean Front W 131 st
$5,200
0
$5,200*
Street)
162
AD113 (Agate Ave 1 Bay Front
N I Bay Front S I Collins Isle)
$5,200
0
$5,200*
82
AD116 (Balboa Blvd 1 River
Ave 138th Street & Rivo Alto)
$4,800
0
$4,800*
AD116B (River Ave 1 47th
41
Street 1 Balboa Blvd 138th
$4,800
0
$4,800*
Street & Seashore Drive)
187
AD 117
$5,200
0
$5,200*
AD120 (Area along Santa Ana
44
Ave between Old Newport
$4,800
0
$4,800*
Blvd and Cliff Drive)
966
AD124 (Central Balboa Island)
$6,000
o
$6,000*
Total Annual Cost
$44,400
0
$44,400
Annual Filing Under
Revenue and Taxation Code
$0.751parcel
Section 163
Payoff Quote (Per Request)
$501request
' The annual administration fee for each succeeding year, beginning with Fiscal Year 2024/2025, will be subject to an increase, which will not exceed
the change in the annual Consumer Price Index ("CPI") for the applicable regional area as calculated by the United States Department of Labor.
,. The fee charged for ADTR Preparation is $750 per year until bond proceeds are expended, and afterwards the fee decreases to $250 per year.
6-21
DELINQUENCY MANAGEMENT
Services
Fee
Fees Ultimately Reimbursed to City by Property Owner
Delinquency Reminder Letter
$ 15
Delinquency Demand Letter
$ 45
Foreclosure Letter
$ 65
Effect Removal from Tax Roll and Record Subsequent Notice of
Satisfaction
$125
Payment Plan
$200
Subsequent Foreclosure Services
$300
Fees Paid Directly to Consultant by Requestor:
Delinquency Demand Payoff
$ 50
Zero Demand
$ 50
ASSESSMENT APPORTIONMENT
The property owner pays these fees
Parcel Amount
Base Fee
Per Parcel Fee
1 to 4 Parcels
$1,000
$25
5 to 25 Parcels
$1,250
$20
26 or More Parcels
$1,500
$15
Review of Diagram and
Spread Only
$ 650
Not Applicable
The annual administration fee for each succeeding year, beginning with Fiscal Year 2024/2025, will be subject to an increase, which will not exceed
the change in the annual Consumer Price Index ("CPI') for the applicable regional area as calculated by the United Slates Department of tabor,
"" The fee charged for ADTR Preparation is $750 per year until bond proceeds are expended, and afterwards the fee decreases to $250 per year.
6-22
CONTINUING DISCLOSURE
The annual fee below is for the preparation and dissemination of an Annual Information
Statement for each bond issue. Additionally, the annual fee to prepare the Annual Debt
Transparency Report (ADTR) in according with SB 10129.
Annual Report
ADTR
Preparation
Preparation
Per Debt Issue
Fee
Fee
Reassessment District 2012
$1,250
NIA
Assessment District No. 111
$1,000
$750**
Assessment District No. 113
$1,000
$750**
Assessment District No. 116
$1,000
$750**
Assessment District No. 1168
$1,000
$750**
Assessment District No. 117
$1,000
$750**
Assessment District No. 120
$1,000
$750**
Assessment District No. 124
$1,000
$750**
ADDITIONAL SERVICES
Annual Financial Information Statement Preparation: Additional Future
Parity Bond Issues
0
Notice of Occurrence of Listed Event Preparation
Hourly Rate
FEES FOR SERVICES — CURRENT ISSUES
Description
Annual
Third Year
Fifth Year
Every
Fifth Year
Thereafter
Fixed Rate Financings
$1 250
$1,500
$2,000
$2,000
Advanced Refundings —
Transferred Proceeds Analysis
Required
$1,250
$1,750
$2,250
$2,250
Arbitrage Rebate & Yield
Restriction Reports
See Above
See Above
See Abov
See Above
` The annual administration fee for each succeeding year, beginning with Fiscal Year 2024/2025, will be subject to an increase, which will not exceed
the change in the annual Consumer Price Index ("CPI") for the applicable regional area as calculated by the United states Department of Labor.
" The fee charged for ADTR Preparation is $750 per year until bond proceeds are expended, and afterwards the fee decreases to $250 per year.
6-23
HOURLY RATES
Additional services may be authorized by the City of Newport Beach and will be billed at the
hourly consulting rates below.
Tittle
Hourly Rate
Vice President, Group Director
$210
Principal Engineer
$211
Assistant Director 1 Principal Consultant
$200
Senior Project Manager
$165
Project Manager/Program Director
$145
Senior Project Analyst
$130
Senior Analyst
$120
Analyst
$100
Analyst Assistant
$75
Property Owner Service Representative
$55
Willdan will be reimbursed for out-of-pocket expenses. Examples of reimbursable expenses include, but
are not limited to the following:
Postage,
• Travel expenses,
• Mileage (current prevailing federal rate),
Maps,
• Electronic data provided by the County and/or other applicable resources,
• Construction cost periodicals, and
• Copying (currently 6¢ per copy).
Any additional expense for reports or from outside services will be billed to the City. 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. In the event that a third party requests any documents,
Willdan may charge such third party for providing said documents in accordance with Willdan's
applicable rate schedule.
The annual administration fee for each succeeding year, beginning with Fiscal Year 2024/2025, will be subject to an increase, which will not exceed
the change in the annual Consumer Price Index ("CPI") for the applicable regional area as calculated by the United States Department of Labor.
The fee charged for ADTR Preparation is $75D per year until bond proceeds are expended, and afterwards the fee decreases to $250 per year,
6-24
EXHIBIT C
INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES
1. Provision of Insurance. Without limiting Consultant's indemnification of City, and
prior to commencement of Work, Consultant shall obtain, provide and maintain at
its own expense during the term of this Agreement, policies of insurance of the
type and amounts described below and in a form satisfactory to City. Consultant
agrees to provide insurance in accordance with requirements set forth here. If
Consultant uses existing coverage to comply and that coverage does not meet
these requirements, Consultant agrees to amend, supplement or endorse the
existing coverage.
2. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders'
Rating of A- (or higher) and Financial Size Category Class VII (or larger) in
accordance with the latest edition of Best's Key Rating Guide, unless otherwise
approved by the City's Risk Manager.
3. Coverage Requirements.
A. Workers' Compensation Insurance. Consultant shall maintain Workers'
Compensation Insurance, statutory limits, and Employer's Liability
Insurance with limits of at least one million dollars ($1,000,000) each
accident for bodily injury by accident and each employee for bodily injury by
disease in accordance with the laws of the State of California, Section 3700
of the Labor Code.
Consultant shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City, its City Council, boards
and commissions, officers, agents, volunteers and employees.
B. General Liability Insurance. Consultant shall maintain commercial general
liability insurance, and if necessary umbrella liability insurance, with
coverage at least as broad as provided by Insurance Services Office form
CG 00 01, in an amount not less than one million dollars ($1,000,000) per
occurrence, two million dollars ($2,000,000) general aggregate. The policy
shall cover liability arising from premises, operations, personal and
advertising injury, and liability assumed under an insured contract (including
the tort liability of another assumed in a business contract).
C. Automobile Liability Insurance. Consultant shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01
covering bodily injury and property damage for all activities of Consultant
arising out of or in connection with Work to be performed under this
Agreement, including coverage for any owned, hired, non -owned or rented
vehicles, in an amount not less than one million dollars ($1,000,000)
combined single limit each accident.
Willdan Financial Services Page C-1 6-25
D. Professional Liability (Errors & Omissions) Insurance. Consultant shall
maintain professional liability insurance that covers the Services to be
performed in connection with this Agreement, in the minimum amount of
one million dollars ($1,000,000) per claim and two million dollars
($2,000,000) in the aggregate. Any policy inception date, continuity date,
or retroactive date must be before the Effective Date of this Agreement and
Consultant agrees to maintain continuous coverage through a period no
less than three years after completion of the Services required by this
Agreement.
4. Other Insurance Requirements. The policies are to contain, or be endorsed to
contain, the following provisions:
A. Waiver of Subrogation. All insurance coverage maintained or procured
pursuant to this Agreement shall be endorsed to waive subrogation against
City, its City Council, boards and commissions, officers, agents, volunteers
and employees or shall specifically allow Consultant or others providing
insurance evidence in compliance with these requirements to waive their
right of recovery prior to a loss. Consultant hereby waives its own right of
recovery against City, and shall require similar written express waivers from
each of its subconsultants.
B. Additional Insured Status. All liability policies including general liability,
excess liability, pollution liability, and automobile liability, if required, but not
including professional liability, shall provide or be endorsed to provide that
City, its City Council, boards and commissions, officers, agents, volunteers
and employees shall be included as insureds under such policies.
C. Primary and Non Contributory. All liability coverage shall apply on a primary
basis and shall not require contribution from any insurance or self-insurance
maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days' notice of cancellation (except for nonpayment for which ten
(10) calendar days' notice is required) or nonrenewal of coverage for each
required coverage.
5. Additional Agreements Between the Parties. The parties hereby agree to the
following:
A. Evidence of Insurance. Consultant shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a
waiver of subrogation endorsement for workers' compensation and other
endorsements as specified herein for each coverage. Insurance certificates
and endorsement must be approved by City's Risk Manager prior to
commencement of performance. Current certification of insurance shall be
kept on file with City at all times during the term of this Agreement. The
certificates and endorsements for each insurance policy shall be signed by
a person authorized by that insurer to bind coverage on its behalf. At least
Willdan Financial Services Page C-2 6-26
fifteen (15) days prior to the expiration of any such policy, evidence of
insurance showing that such insurance coverage has been renewed or
extended shall be filed with the City. If such coverage is cancelled or
reduced, Consultant shall, within ten (10) days after receipt of written notice
of such cancellation or reduction of coverage, file with the City evidence of
insurance showing that the required insurance has been reinstated or has
been provided through another insurance company or companies. City
reserves the right to require complete, certified copies of all required
insurance policies, at any time.
B. City's Right to Revise Requirements. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Consultant sixty (60) calendar days' advance
written notice of such change. If such change results in substantial
additional cost to Consultant, City and Consultant may renegotiate
Consultant's compensation.
C. Right to Review Subcontracts. Consultant agrees that upon request, all
agreements with subcontractors or others with whom Consultant enters into
contracts with on behalf of City will be submitted to City for review. Failure
of City to request copies of such agreements will not impose any liability on
City, or its employees. Consultant shall require and verify that all
subcontractors maintain insurance meeting all the requirements stated
herein, and Consultant shall ensure that City is an additional insured on
insurance required from subcontractors. For CGL coverage,
subcontractors shall provide coverage with a format at least as broad as CG
20 38 04 13.
D. Enforcement of Agreement Provisions. Consultant acknowledges and
agrees that any actual or alleged failure on the part of City to inform
Consultant of non-compliance with any requirement imposes no additional
obligations on City nor does it waive any rights hereunder.
E. Requirements not Limiting. Requirements of specific coverage features or
limits contained in this Section are not intended as a limitation on coverage,
limits or other requirements, or a waiver of any coverage normally provided
by any insurance. 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 all inclusive, or to the exclusion of
other coverage, or a waiver of any type. If the Consultant maintains higher
limits than the minimums shown above, the City requires and shall be
entitled to coverage for higher limits maintained by the Consultant. Any
available insurance proceeds in excess of the specified minimum limits of
insurance and coverage shall be available to the City.
F. Self -insured Retentions. Any self -insured retentions must be declared to
and approved by City. City reserves the right to require that self -insured
retentions be eliminated, lowered, or replaced by a deductible. Self-
Willdan Financial Services Page C-3 6-27
insurance will not be considered to comply with these requirements unless
approved by City.
G. City Remedies for Non -Compliance. If Consultant or any subconsultant fails
to provide and maintain insurance as required herein, then City shall have
the right but not the obligation, to purchase such insurance, to terminate this
Agreement, or to suspend Consultant's right to proceed until proper
evidence of insurance is provided. Any amounts paid by City shall, at City's
sole option, be deducted from amounts payable to Consultant or reimbursed
by Consultant upon demand.
H. Timely Notice of Claims. Consultant shall give City prompt and timely notice
of claims made or suits instituted that arise out of or result from Consultant's
performance under this Agreement, and that involve or may involve
coverage under any of the required liability policies. 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
City.
Consultant's Insurance. Consultant shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of the
Work.
Willdan Financial Services Page C-4 6_28