City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: APRIL 12, 2022 FROM: FINANCE DEPARTMENT WARDS: ALL
SUBJECT: SECOND AMENDMENT TO PROFESSIONAL CONSULTANT SERVICES AGREEEMENT FOR ASSESSMENT ENGINEER SERVICES WITH WEBB MUNICIPAL FINANCE, LLC., TO EXTEND THE TERM OF THE AGREEMENT TO MARCH 31, 2024, AND INCREASE THE COMPENSATION AMOUNT BY AN ADDITIONAL $283,288 FOR A TOTAL AGREEMENT AMOUNT OF $805,619.
ISSUES:
Approve the Second Amendment to the Professional Consultant Services Agreement for Assessment Engineer Services with Webb Municipal Finance, LLC., to extend the term of the Agreement to March 31, 2024, and increase the agreement compensation amount by $283,288 for a total Agreement amount of $805,619.
RECOMMENDATIONS:
That the City Council:
Approve the Second Amendment to the Professional Consultant Services Agreement for Assessment Engineer Services with Webb Municipal Finance, LLC., to extend the agreement term to March 31, 2024, and increase the compensation amount by $283,288 for a total agreement amount of $805,619.
Authorize the City Manager, or his designee, to execute the Second Amendment to the Professional Consultant Services Agreement with Webb Municipal Finance, LLC., including making minor and non-substantive changes.
BACKGROUND:
On July 25, 2017, the City Council approved a Professional Consultant Services Agreement (Agreement) with Webb Municipal Finance, LLC., (formerly known as Albert A. Webb Associates), which was the highest ranked proposal received. Per RFQ/RFP 1680, the original Agreement would be for five (5) years, with an option to extend an additional two (2) years.
The Professional Consultant Services Agreement approved by City Council on July 25, 2017, was for a total amount of $375,731. Under the terms of the agreement, Webb Municipal Finance, LLC (Webb) provides Assessment Engineer Services and prepares the levy for the Street Light Assessment District, City Library Services Parcel Tax, Community Facilities Districts, Landscape Maintenance Districts, and Assessment Districts.
In March 2020, the City Council approved the First Amendment with Webb Municipal Finance LLC, (Webb) to increase the compensation for a total Agreement amount of $522,331 to provide Program Management Services related to the districts that are administered by the City. The program management services provided by Webb has allowed them to act as a liaison between developers, property owners, the County Recorder’s Office, and City staff. Webb works with City staff to research parcel exceptions, monitor delinquencies, and prepare formation and bond sale tables and taxing documents. Webb hosts monthly meetings to provide updates on current districts along with any new developer requests they have received on the City’s behalf. This allows the Finance Department to collaborate proactively with Webb and Bond Counsel regarding existing and new district formations. In addition, Webb prepares continuing disclosure reports for all Special District debt in compliance with SEC Rule 15c2-12.
DISCUSSION:
Webb has been an integral component of the levy process and works with City staff to submit accurate and complete information to the Riverside County Assessor’s Office. They assist City staff with gathering information necessary to file State debt and special district reports each year. Webb also continues to be a valuable asset to the City in new district formations. They prepare Rate and Method of Apportionments as well as boundary maps using their team of GIS Specialists.
The Finance Department has been satisfied with the services provided by Webb and recommend the two-year extension, as specified in the terms of RFQ/RFP 1680. The current Agreement with Webb will expire on March 31, 2022, and the Second Amendment will allow the term to be extended through March 31, 2024. Prior to the final extension period in 2024, the Finance Department will issue a new RFP for these services and will bring the winning bid to the City Council for approval at that time.
The Purchasing Manager concurs that this request is in compliance with Purchasing Resolution No. 23812.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority No. 5 High Performing Government and Goal No. 5.3 – Enhance communication and collaboration with community members, to improve transparency, build public trust, and encourage shared decision-making.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The formation of Special Districts provides a transparent and equitable way to manage, administer, and report on specific infrastructure and services related to new development in the City. Webb Municipal Finance plays an integral role in the process of district formation, assessment and special tax apportionment, tax rate analysis, and compliance with continuing disclosure.
Equity – Special Districts are designed to share the cost of infrastructure and maintenance services among each property owner and spreads the cost long-term across the generations of property owners that benefit from it.
Fiscal Responsibility – Utilizing a special tax consultant helps to ensure that City Finance is adhering to California Government Code during district formation and in following years during the annual levy process. Webb Municipal Finance has provided valuable support with monitoring delinquencies within districts as well as ongoing reporting requirements.
Innovation – Special Districts are an innovative way to plan and offset the cost to support new development with the City.
Sustainability & Resiliency – Special Districts provide a way to share the cost of infrastructure and maintenance across the property owners who benefit directly from it. Webb Municipal Finance assists the Finance Department to ensure the proper taxes and assessments are levied and recorded each year.
FISCAL IMPACT:
The total fiscal impact of the action is $283,288 spread over Fiscal Year 2022/23 and Fiscal Year 2023/24. The General Fund portion of this cost is $24,000 and is budgeted and available in the General Fund, Finance Debt and Treasury Admin, Professional Services expenditure account number 2302000-421000. The remaining costs are paid through the special districts and are incorporated during the annual levy and budgeting process for the districts each year.
Prepared by: Heidi Schrader, Debt and Treasury Manager
Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/City Treasurer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments: Second Amendment to the Professional Consultant Services Agreement Second Amendment to Agreement with Webb Municipal Finance ● Page 3