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January 9, 2024
ITEM TITLE
Agreement: Approve an Agreement with Spicer Consulting Group, LLC to Provide Special Tax Consultant and Other Administration Services
Report Number: 23-0278
Location: The Community Facilities Districts and Open Space Districts are located throughout the City. For specific locations, please see Attachment Nos. 3 and 4
Department: Finance
G.C. § 84308: Yes
Environmental Notice : The 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 an agreement with Spicer Consulting Group, LLC to provide Special Tax Consultant and Other Administration Services.
SUMMARY
The City of Chula Vista ( the "City") issued a Request for Proposal (RFP) for Special District Consulting Services, as well as administration, apportionments and related services for the City’s Delinquent Trash Fund and Delinquent Sanitation Fund; arbitrage calculations and continuing disclosure services for non -land based bonds, including future issuances that may be created throughout the term of the agreement; and continuing disclosure services related to the Bayfront Project Special Tax Financing District. Three bidders submitted proposals. After an evaluation of the proposals, a selection committee recommended Spicer Consulting Group, LLC (SCG). Staff recommends approving a three-year agreement with SCG with up to two (2) one-year extension options.
ENVIRONMENTAL REVIEW
The Director of Development Services 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 1537 8 of the State CEQA Guidelines because it will not result in a physical change in the P a g e | 2
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.
DISCUSSION
The City has one (1) Assessment District, thirty-two (32) Community Facilities Districts, thirty-five (35) Open Space Districts, one (1) Bayfront Project Special Tax Financing District, one Sewer Assessment District, one Delinquent Trash Fund and one Delinquent Sanitation Fund. Additionally, the City has bonded debt which includes Certificates of Participation (COPs), Lease Revenue Bonds (LRBs), Tax Allocation Bonds (TABs), and Pension Ob ligation Bond (POBs). The City currently contracts out part of the Administration of these districts, funds, and bonded debt.
On July 2023, the City issued RFP P04 -2024 for Special Tax Consultant and Other Administration Services.
Albert Webb, Spicer Consulting Group, LLC (SCG), and Willdan Financial Services submitted proposals in response to the RFP. The City’s Selection Committee members reviewed, scored, and discussed the firms based on the qualification of personnel, adherence of firm’s proposal t o RFP guidelines, resources available to perform tasks on time and within budget, firm experience directly related to contract, and total cost and justification. After comprehensive assessment, the selection committee recommended approving the agreement with SCG to provide Special Tax Consultant and Other Administration Services including but not limited to: Community Facilities District Administration; Assessment District Administration and Apportionments; Open Space District Administration; delinquency management/monitoring and related services; administration and apportionments for the City’s Delinquent Trash and Delinquent Sanitation funds; arbitrage calculations and continuing disclosure for the City’s bonded debt; and continuing disclosure for the Bayfront Project Special Tax Financing District.
Staff recommends entering into an initial three-year agreement from January 9, 2024 to December 31, 2026 with a not-to-exceed amount of $525,952 with SCG, with up to two (2) one-year options to extend for a total of five (5) years (potentially through December 31, 2028).
The average annual cost of this agreement is estimated to total approximately $175,318.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that Mayor McCann, Councilmember Gonzalez and Councilmember Chavez 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 1,000 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.).
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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
The agreement is funded by multiple sources including the General Fund and Special Assessment Funds .
Associated expenditures were included in the fiscal year 2023-24 budget. There is no additional current-year fiscal impact anticipated as a result of this action.
ONGOING FISCAL IMPACT
The ongoing fiscal impact is estimated at $810,160 through Year 5 of the agreement (fiscal year 2028-29), as outlined in the following summary table. Annual expenses per the agreement will be considered as part of the annual budget development process.
Agreement
Fiscal Year (FY) Totals
FY 2024-25 $173,709
FY 2025-26 $181,572
FY 2026-27 $178,824
FY 2027-28 (Optional) $190,256
FY 2028-29 (Optional) $85,799
Agreement Total $810,160
ATTACHMENTS
1. Special Tax Consultant Services Agreement
2. RFP P04-2024 Special District Consultant
3. Community Facilities Districts within the City of Chula Vista
4. Open Space Districts within the City of Chula Vista
Staff Contact: Sarah Schoen, Director of Finance/Treasurer