HomeMy WebLinkAboutFin Administration of Assessment District BondsCITY ,
,�• 20
�� � fi �� ��� 3 laki,,,,_ AGENDA ITEM NO.: ...... ............. ...............
® ®--�
SAN]RAF EL MEETING DATE.......... .June.--..1,,T,,,..,,�.9,.�1.
P 0 BOX 60. SAN RAFAEL CALF 94915 PHONE 141 51 456-1112
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: Administration of Assessment District Bonds
SUBMITTEDBY: ............................ ...................... ............. — ............ .................... APPROVED BY:...
RANSOM E. COLEMAN, Finance Director City Manager
DATE: June 11, 1991
RECOMMENDATION: Approve a Resolution authorizing Muni Financial
Services (MFS) to administer the City's Assessment
Districts and provide arbitrage calculations.
SUMMARY/ BACKGROUND: The administration of Assessment Districts has
become time consuming and the new federal
legislation regarding arbitrage requires extreme care and
additional time. Failure to comply with the new arbitrage
regulations could result in the Civic Center Bonds becoming taxable
rather than non-taxable bonds. MFS will provide all the services
necessary to administer all of our assessment bonds and do the
arbitrage calculations for the Civic Center Bonds. There will be
no cost to the City. Fees for this service will either come from
the bond proceeds or the annual assessment paid by the property
owners.
Attached is a proposal from MFS listing their services and the
fees. The final contract will incorporate the proposal submitted
by MFS.
Y
File No.----
a
------------ ---
Disposition
RESOLUTION NO. 8436
A RESOLUTION AUTHORIZING THE SIGNING OF A
CONTRACT, LEASE OR AGREEMENT
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:
The MAYOR and CITY CLERK are authorized to execute, on behalf
of the City of San Rafael, a contract, lease or agreement with Muni
Financial Services (MFS) (subject to approval by the City
Attorney).
JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby
certify that the foregoing resolution was duly and regularly
introduced and adopted at a regular meeting of the City Council of
said City held on Monday , the 17th day of
June , 1991, by the following vote to wit:
AYES: COUNCILMEMBERS : Boro, Brei ner, Shippey, Thayer & Mayor Mul ryan
NOES: COUNCILMEMBERS : None
ABSENT: COUNCILMEMBERS: None
JE N --M. LEOi� C(I f City Clerk
MFS
Muni Financial Services Inc.
42217 Rio Nedo
Suite A203
Temecula, CA 92390
(714)699-3990
Fax: (714) 699-3460
1440 Francisco Street
San Fransciso, CA 94123
(415)441-3550
Fax: (415) 441-1401
April 4, 1991
Mr. Ransom E. Coleman
Finance Director
City of San Rafael
P. O. Box 60
San Rafael, CA 94915-0600
RE: Agreement to Provide Special District Administrative
Consulting and Related Services.
Dear Mr. Coleman:
Pursuant to your request, Muni Financial Services, Inc. ("MFS") is pleased to submit this
letter Agreement to the City of San Rafael ("the Agency") to provide special assessment
district administration consulting and related services.
SCOPE OF SERVICES
The agreement specifies the steps that our services have been divided into, as summarized
in the following paragraphs.
1. We will meet with the City's Planning Department to establish procedures
under which we will be notified of all applications for parcel splits and mergers. We
will then gather all relevant materials to form a complete data base of the parcels
within the assessment districts. We will load the data onto our MFS administrative
software to provide full management of the districts.
0 Financial Consulting and Administration
i.MFS
2. We will prepare and record assessment diagrams and apportion and merge
assessments. We will provide notification of assessment apportionment to the
underwriter, although we are actively trying to remove this provision from the Code.
We will provide the City a report listing all parcel mergers and splits that have
occurred within the districts. Our standard report shows the original parcel(s) and
the new parcel(s), along with the new assessment of each parcel and the date of the
transaction.
3. We will then update the parcel data base using the parcels on record as of
March 1. We will prepare estimates of administrative expenses, bank fees, and
Reserve Fund interest earnings to determine the total annual assessment levy. These
estimates will be submitted to the City for review and approval.
4. We will provide to the County Auditor -Controller a tape or diskette with the
correct assessment installment information, formatted in the County's standard
configuration.
5. Throughout the year, we will monitor delinquencies, submit to the City a
delinquency report, and send notices to the delinquent property owners. We will
send two letters to the delinquent property owners in an attempt to eliminate the
delinquencies. We will provide a list of delinquent property owners that will require
the initiation of judicial foreclosure or other appropriate legal procedures. We will
coordinate with designated legal counsel to pursue delinquencies.
6. We will prepare a public information report setting forth the method used in
apportioning the costs of the improvements to the lands within the District.
7. We will credit any surplus improvement fund monies to the installments and
oversee a pro -rata refund to all property owners that have paid -off their assessments,
if such a disposition is to be made.
8. We will answer questions from property owners and other interested parties
concerning the assessment proceedings and the assessment installments. We will
provide interested parties a projection of a property's estimated assessment
installments for the term of the assessment district.
9. We will provide an Administrative Procedures Reference Manual for the
annual special assessment setting System.
10. We will be available to assist, as -needed, any City Departments.
11. If authorized by the City, we will annually calculate the arbitrage rebate for
each district having a bond issue.
2
MFS
12. We will assist the City with the early redemption of bonds or "bond calls".
13. We will provide pay-off calculations for individual properties and submit
reports to the City identifying parcels that have removed their assessments.
CHARGES FOR SERVICES
None of the aforementioned costs should be borne by the City. The special district will
cover all these fees. Our services will be provided to the Agency according to the fee
schedule below:
1915 Act Assessment Districts:
Fixed Annual Fee (per district)
Generate installment data,
prepare estimates of expenses,
co-ordinate with Planning,
Assessor and Auditor and
report on delinquencies
(per parcel)
Optional Related Services:
• Delinquency follow-up
(per delinquency)
• Assessment Apportionment and
Amended Assessment Diagrams
(Over 20 parcels - per parcel fee)
• Pay-off Calculations
(per request)
• Amortization Schedule Preparation
(per request)
Q
$ 0.00 to $2,000.00
$ 15.00
$ 30.00
$1,250.00
$ 15.00
$ 25.00
$ 25.00
MFS
San Rafael - Proposal Assumptions
The following are the approximate number of parcels and districts the proposed fees are based upon. If
the actual number varies substantially it may cause a change in our fee structure.
* Five percent (5%) of principal and interest in each installment not -to -exceed $15.00.
ArbWaae Rebate Fees
We will perform arbitrage rebate services for an annual fee of:
$1,500/bond year
$1,250/bond year
$1, 000/bond year
$ 750/bond year
1 - 3 bond issues
4 - 8 bond issues
9 + bond issues
issues invested exclusively in
Fidelity Investments or the
Franklin Group of Funds
A Bond year is defined as the number of years since the last rebate calculation. The City
will not be charged for a full bond year if the original date of an issue is less than six
months from the calculation period. Our charges include at least one meeting each year.
Out-of-pocket expenses shall not exceed $500 per year. Additional services will be
charged at our then current hourly rate. These prices pertain to both current and future
bond issues.
The following is a schedule of our current hourly rates:
Partners/Directors
$125.00
Senior Associates
85.00
Associates
Per
Data Analysts
Remaining
District
Parcel
Principal
Parcels
Maturitv
Fee
Fee*
Sun Valley
$ 311,000.00
639
2006
$1,500.00
$15.00
Civic Center
3,700,000.00
200
2011
2,000.00
15.00
Kerner Blvd.
6,100,000.00
31
2005
2,000.00
15.00
Peacock Gap
7,300,000.00
100
2005
2,000.00
15.00
E. Francisco
35,000.00
15
No Fee
15.00
* Five percent (5%) of principal and interest in each installment not -to -exceed $15.00.
ArbWaae Rebate Fees
We will perform arbitrage rebate services for an annual fee of:
$1,500/bond year
$1,250/bond year
$1, 000/bond year
$ 750/bond year
1 - 3 bond issues
4 - 8 bond issues
9 + bond issues
issues invested exclusively in
Fidelity Investments or the
Franklin Group of Funds
A Bond year is defined as the number of years since the last rebate calculation. The City
will not be charged for a full bond year if the original date of an issue is less than six
months from the calculation period. Our charges include at least one meeting each year.
Out-of-pocket expenses shall not exceed $500 per year. Additional services will be
charged at our then current hourly rate. These prices pertain to both current and future
bond issues.
The following is a schedule of our current hourly rates:
Partners/Directors
$125.00
Senior Associates
85.00
Associates
65.00
Data Analysts
35.00
4
MFS
ABANDONMENT
In the event that this project is abandoned prior to its completion, the Agency will pay
MFS a fee equal to the reasonable value of its services. Reasonable value shall be
determined by using the then current hourly rates for our services or the percent
completion of the project, whichever is lowest.
The project may be abandoned at any time by the Agency. MFS may cancel its obligation
under this Agreement by providing thirty days notice in writing to the Agency.
In the event of litigation or arbitration between the parties over the terms or performance
of this agreement, the prevailing party shall be entitled to reasonable attorneys fees and
costs.
EXPENSES
The Agency shall reimburse us for any customary out-of-pocket expenses up to an amount
not to exceed $1,500.
PAYMENT
Payment for the services rendered pursuant to this Agreement shall be made within thirty
(30) days of the submittal of an MFS invoice. MFS invoices for the creation, distribution,
collection and follow-up of the tax installments shall be based upon the percentage
completion of the project as described in Attachment A. Payment for services related to
lot splits will be invoiced monthly according to the fee schedule. Such invoices shall be
submitted to the Agency on a monthly basis.
In the event of abandonment, the payment will be due within thirty (30) days of receipt of
an invoice.
5
MFS
BY SIGNING THIS AGREEMENT, THE AGENCY ACKNOWLEDGES UNDERSTANDING OF
THIS AGREEMENT, AND THAT THIS DOCUMENT, INCLUDING ATTACHMENTS,
CONSTITUTES THE ENTIRE AGREEMENT. NO OTHER AGREEMENTS, EXPRESS OR
IMPLIED, BETWEEN THE AGENCY AND MFS DUST WITH RESPECT TO THE SOFTWARE
AND SERVICES TO BE FURNISHED HEREUNDER. THIS AGREEMENT SUPERSEDES ALL
PRIOR COMMUNICATIONS BETWEEN THE PARTIES INCLUDING ANY ORAL OR WRITTEN
PROPOSALS. THIS AGREEMENT MAYBE MODIFIED OR AMENDED IN WRITING ONLY,
AND ANY SUCH AMENDMENT MUST BE SIGNED BY DULY AUTHORIZED
REPRESENTATIVES OF THE AGENCY AND MFS.
ACCEPTED:
MUNI FINANCIAL
SERVICES, INC.C'MFS'j
Harry Clark
Managing Director
April 2, 1991
CITY OF SAN RAFAEL
x.-
AWREN�EIULRYAN
Title - Mayor
June 17, 1991
Date
ATTEST:
MhUVE"'.M. LEO�II itY Clerk
"MVQ
ATTACHMENT A
Payment Schedule
and Estimated Completion of Work
Month
Percent Completion
January
7
February
7
March
7
April
7
May
7
June
7
July
15
August
15
September
7
October
7
November
7
December
7
100%
h
RESOLUTION NO. 8436
A RESOLUTION AUTHORIZING THE SIGNING OF A
CONTRACT, LEASE OR AGREEMENT
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:
The MAYOR and CITY CLERK are authorized to execute, on behalf
of the City of San Rafael, a contract, lease or agreement with Muni
Financial Services (MFS) (subject to approval by the City
Attorney).
JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby
certify that the foregoing resolution was duly and regularly
introduced and adopted at a regular meeting of the City Council of
said City held on Monday , the 17th day of
June , 1991, by the following vote to wit:
AYES: COUNCILMEMBERS : Boro, Breiner, Shippey, Thayer & Mayor Mul ryan
NOES: COUNCILMEMBERS : None
ABSENT: COUNCILMEMBERS: None
JE LEONCINA, City Clerk
MFS
Muni Financial Services Inc.
42217 Rio Nedo
Suite A203
Temecula, CA 92390
(714)699-3990
Fax: (7 14) 699-3460
1440 Francisco Street
San Fransciso, CA 94123
(415)441-3550
Fax- (415) 441-1401
April 4, 1991
Mr. Ransom E. Coleman
Finance Director
City of San Rafael
P. O. Box 60
San Rafael, CA 94915-0600
RE: Agreement to Provide Special District Administrative
Consulting and Related Services_
Dear Mr. Coleman:
Pursuant to your request, Muni Financial Services, Inc. ("MFS") is pleased to submit this
letter Agreement to the City of San Rafael ("the Agency") to provide special assessment
district administration consulting and related services.
SCOPE OF SERVICES
The agreement specifies the steps that our services have been divided into, as summarized
in the following paragraphs.
1. We will meet with the City's Planning Department to establish procedures
under which we will be notified of all applications for parcel splits and mergers. We
will then gather all relevant materials to form a complete data base of the parcels
within the assessment districts. We will load the data onto our MFS administrative
software to provide full management of the districts.
❑ Financial Consulting and Administration
C��Y
2.
2. We will prepare and record assessment diagrams and apportion and merge
assessments. We will provide notification of assessment apportionment to the
underwriter, although we are actively trying to remove this provision from the Code.
We will provide the City a report listing all parcel mergers and splits that have
occurred within the districts. Our standard report shows the original parcel(s) and
the new parcel(s), along with the new assessment of each parcel and the date of the
transaction.
3. We will then update the parcel data base using the parcels on record as of
March 1. We will prepare estimates of administrative expenses, bank fees, and
Reserve Fund interest earnings to determine the total annual assessment levy. These
estimates will be submitted to the City for review and approval.
4. We will provide to the County Auditor -Controller a tape or diskette with the
correct assessment installment information, formatted in the County's standard
configuration.
5. Throughout the year, we will monitor delinquencies, submit to the City a
delinquency report, and send notices to the delinquent property owners. We will
send two letters to the delinquent property owners in'an attempt to eliminate the
delinquencies. We will provide a list of delinquent property owners that will require
the initiation of judicial foreclosure or other appropriate legal procedures. We will
coordinate with designated legal counsel to pursue delinquencies.
6. We will prepare a public information report setting forth the method used in
apportioning the costs of the improvements to the lands within the District.
7. We will credit any surplus improvement fund monies to the installments and
oversee a pro -rata refund to all property owners that have paid -off their assessments,
if such a disposition is to be made.
8. We will answer questions from property owners and other interested parties
concerning the assessment proceedings and the assessment installments. We will
provide interested parties a projection of a property's estimated assessment
installments for the term of the assessment district.
9. We will provide an Administrative Procedures Reference Manual for the
annual special assessment setting System.
10. We will be available to assist, as -needed, any City Departments.
11. If authorized by the City, we will annually calculate the arbitrage rebate for
each district having a bond issue.
is
12. We will assist the City with the early redemption of bonds or "bond calls".
13. We will provide pay-off calculations for individual properties and submit
reports to the City identifying parcels that have removed their assessments.
CHARGES FOR SERVICES
None of the aforementioned costs should be borne by the City. The special district will
cover all these fees. Our services will be provided to the Agency according to the fee
schedule below:
1915 Act Assessment Districts:
• Fixed Annual Fee (per district) $ 0.00 to $2,000.00
• Generate installment data,
prepare estimates of expenses,
co-ordinate with Planning,
Assessor and Auditor and
report on delinquencies
(per parcel) $ 15.00
Optional Related Services:
• Delinquency follow-up
(per delinquency) $ 30.00
• Assessment Apportionment and
Amended Assessment Diagrams $1,250.00
(Over 20 parcels - per parcel fee) $ 15.00
• Pay-off Calculations
(per request) $ 25.00
• Amortization Schedule Preparation
(per request) $ 25.00
3
N/1 I � '(17
San Rafael - Proposal Assumptions
The following are the approximate number of parcels and districts the proposed fees are based upon. If
the actual number varies substantially it may cause a change in our fee structure.
* Five percent (5%) of principal and interest in each installment not -to -exceed $15.00.
Arb&aae Rebate Fees
We will perform arbitrage rebate services for an annual fee'of,
$1, 500/bond year
$1,250/bond year
$1,000/bond year
$ 750/bond year
1 - 3 bond issues
4 - 8 bond issues
9 + bond issues
issues invested exclusively in
Fidelity Investments or the
Franklin Group of Funds
A Bond year is defined as the number of years since the last rebate calculation. The City
will not be charged for a full bond year if the original date of an issue is less than six
months from the calculation period. Our charges include at least one meeting each year.
Out-of-pocket expenses shall not exceed $500 per year. Additional services will be
charged at our then current hourly rate. These prices pertain to both current and future
bond issues.
The following is a schedule of our current hourly rates:
Partners/Directors
$125.00
Senior Associates
85.00
Associates
Per
Data Analysts
Remaining
District
Parcel
Principal
Parcels
Maturity
Fee
Fee*
Sun Valley
$ 311,000.00
639
2006
$1,500.00
$15.00
Civic Center
3,700,000.00
200
2011
2,000.00
15.00
Kerner Blvd.
6,100,000.00
31
2005
2,000.00
15.00
Peacock Gap
7,300,000.00
100
2005
2,000.00
15.00
E. Francisco
35,000.00
15
No Fee
15.00
* Five percent (5%) of principal and interest in each installment not -to -exceed $15.00.
Arb&aae Rebate Fees
We will perform arbitrage rebate services for an annual fee'of,
$1, 500/bond year
$1,250/bond year
$1,000/bond year
$ 750/bond year
1 - 3 bond issues
4 - 8 bond issues
9 + bond issues
issues invested exclusively in
Fidelity Investments or the
Franklin Group of Funds
A Bond year is defined as the number of years since the last rebate calculation. The City
will not be charged for a full bond year if the original date of an issue is less than six
months from the calculation period. Our charges include at least one meeting each year.
Out-of-pocket expenses shall not exceed $500 per year. Additional services will be
charged at our then current hourly rate. These prices pertain to both current and future
bond issues.
The following is a schedule of our current hourly rates:
Partners/Directors
$125.00
Senior Associates
85.00
Associates
65.00
Data Analysts
35.00
4
ABANDONMENT
In the event that this project is abandoned prior to its completion, the Agency will pay
MFS a fee equal to the reasonable value of its services. Reasonable value shall be
determined by using the then current hourly rates for our services or the percent
completion of the project, whichever is lowest.
The project may be abandoned at any time by the Agency. MFS may cancel its obligation
under this Agreement by providing thirty days notice in writing to the Agency.
In the event of litigation or arbitration between the parties over the terms or performance
of this agreement, the prevailing party shall be entitled to reasonable attorneys fees and
costs.
EXPENSES
The Agency shall reimburse us for any customary out-of-pocket expenses up to an amount
not to exceed $1,500.
PAYMENT
Payment for the services rendered pursuant to this Agreement shall be made within thirty
(30) days of the submittal of an MFS invoice. MFS invoices for the creation, distribution,
collection and follow-up of the tax installments shall be based upon the percentage
completion of the project as described in Attachment A. Payment for services related to
lot splits will be invoiced monthly according to the fee schedule. Such invoices shall be
submitted to the Agency on a monthly basis.
In the event of abandonment, the payment will be due within thirty (30) days of receipt of
an invoice.
61
BY SIGNING THIS AGREEMENT, THE AGENCY ACKNOWLEDGES UNDERSTANDING OF
THIS AGREEMENT, AND THAT THIS DOCUMENT, INCLUDING ATTACHMENTS,
CONSTITUTES THE ENTIRE AGREEMENT. NO OTHER AGREEMENTS, EXPRESS OR
IMPLIED, BETWEEN THE AGENCY AND MFS EXIST WITH RESPECT TO THE SOFTWARE
AND SERVICES TO BE FURNISHED HEREUNDER. THIS AGREEMENT SUPERSEDES ALL
PRIOR COMMUNICATIONS BETWEEN THE PARTIES INCLUDING ANY ORAL OR WRITTEN
PROPOSALS. THIS AGREEMENT MAY BE MODIFIED OR AMENDED IN WRITING ONLY,
AND ANY SUCH AMENDMENT MUST BE SIGNED BY DULY AUTHORIZED
REPRESENTATIVES OF THE AGENCY AND MFS.
ACCEPTED:
MUNI FINANCIAL
SERVICES, INC.("MFS")
By:
Harry Clark
Managing Director
April 2, 1991
6
CITY OF SAN RAFAEL
LAWRENCE E. MULRYAN
Title - Mayor
June 17, 1991
Date
ATTEST:
JEANNE M. LEONCINI, City Clerk
Month
January
February
March
April
May
June
July
August
September
October
November
December
ATTACHMENT A
Payment Schedule
and Estimated Completion of Work
III
Percent Completion
7
7
7
7
7
7
15
15
7
7
7
7
100%
J f
ROUTING SLIP FOR APPROVAL OF CONTRACT/AGREFI.IENTS/ORDINANCES/RESOLUTIONS
G
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF ORIGINAL CONTRACT/
AGREEMENT/ORDINANCE/RESOT�UTION BEFORE APPROVAL BY
COUNCIL/AGENCY
FROM:
Date:
Originating Department: T nljJrlL��
)ftXX/SP,CC AGENDA ITEI7
(__ 2i — — — —)
DA E 0 PIEETING
TITLE OF DOCUMENT:
{2cS -AtL 1fib YL 1 Z ) rd lLii:_: inrit/T W I TP MSS
(4t -L1- 11-6ILIEE NEWT 5u93 QCT. Td Ci ► I1_7'yLV�
RECEIVED
Department Head (Signature)
CITY ATTORNEY
cmv flf CIIN "FAE4
(LOWER HALF OF FORM FOR APPROVALS ONLY)
REVIEWED BY CITY MANAGER/EXECUTIVE TO:
DIRECTOR APPROVED AS TO FORM:
APPROVED AS COUNCIL/AGENCY AGENDA ITEM
611
City
City Attorney (Signature)
NOT APPROVED
REMARKS:
-_�
cc- Finince O.trector: Attached is one copy of document.
Please review For financial impact.`
0I White- - - - • - -City Clerk's Office with Original Document y
�I
Green- - - - - - -City Manager's Office J
m C.+narl - - - - - -Orig inatJnq Department
'i Pink - - - - - - -Finance Director
ni rc Iden rod- - - - -Preliminary ['Jle Copy-Jr-a+natiny DepaJvuirnt
C1
I. 4 5CA
