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May 16, 2023
ITEM TITLE
Agreement: Approve the Second Amended and Restated Agreement Between the City and SCG - Spicer Consulting Group, LLC. for Special Tax Consultant Services
Report Number: 23-0075
Location: No specific geographic location.
Department: Finance
Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Action
Adopt a resolution approving the second amended and restated agreement between the City and SCG – Spicer Consulting Group, LLC for special tax consultant services to extend the agreement through September 30, 2023 and increase the compensation amount from $1,000,000 to $1,037,243.
SUMMARY
The City of Chula Vista desires to amend the current 5 -year agreement with Spicer Consulting Group, LLC., to extend the duration from June 30, 2023, to September 30, 2023, to coincide with the end of the tax levy season.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
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DISCUSSION
The City of Chula Vista entered into a three-year Agreement with Spicer Consulting Group, LLC to perform special tax consultant services for assessment districts, community facilities districts, open space districts, and annual sewer assessment administration services from April 01, 2018 through March 31, 2021 (see Attachment 1). The City then entered into a First Amended Agreement with Spicer Consulting Group, LLC on February 16, 2021 to expand the scope of services to be provided and extend the term of the agreement through June 30, 2022 (see At tachment 2). The parties subsequently signed an Option to Extend, as authorized by the Agreement, to extend the agreement through June 30, 2023 to align with the end of the fiscal year (see Attachment 3). The current agreement with a not-to-exceed limit of $1,000,000 is set to expire June 30, 2023.
Spicer’s special tax consultant services include preparing the tax levy, which runs from March through September of every year. Due to a conflict with the levy season schedule, the City wishes to amend the current agreement to extend the duration through September 30, 2023, to align with the end of the levy season, and to add $37,243 to the total maximum compensation amount of $1,000,000 to cover the additional three (3) months, bringing the total maximum compens ation amount of this contract to $1,037,243. The proposed Second Amended and Restated agreement, attached as Attachment 4, amends the current agreement accordingly.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that Mayor McCann and Councilmember Gonzalez have real property holdings within 500 feet of the boundaries of the property which is the subject of this action, and Councilmember Preciado has real property holdings within 1,00 feet, but beyond 500 feet which is the subject of this action. However, to the extent that any decision would have a reasonably foreseeable financial effect on the member’s real property, the effect would be nominal, inconsequential, or insignificant. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702 (b), this item does not present a real property-related conflict of interest under the Political Reform Act (Cal. Gov’t Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact to the General Fund or other funds . The additional three (3) months fall in Fiscal Year 2024.
ONGOING FISCAL IMPACT
The administrative costs for each non-bonded Special Tax District (Assessment District, Open Space Districts and Maintenance CFDs) w ill be financed out of the revenue generated by the individual districts via the annual levy. Administrative costs incurred by the bonded districts (Assessment District and Improvement CFDs) will be recovered through the ‘administrative fee’ component of t he annual levy, with invoices sent P a g e | 3
directly to the district’s trustee for payment. These costs include the placement of the annual levy on the tax roll and other administrative tasks as required.
The ongoing fiscal impact in Fiscal Year 2024 totals $37,243, which will be included in the budget . Of the $37,243 total cost, $11,303 will be funded by CFD revenues held with the Trustee, $1,159.50 will be funded by revenues collected by Assessment District 97-2, and $24,780.50 will be funded by the maintenance CFDs and Open Space District revenues collected by the City.
ATTACHMENTS
1. Original Agreement
2. First Amended and Restated Agreement
3. Notice of Exercise of Option to Extend Agreement
4. Proposed Second Amended and Restated Agreement
Staff Contact: Sarah Schoen, Finance Director/Treasurer