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SECOND AMENDMENT TO WEBB
MUNICIPAL FINANCE, LLC
City Council Meeting
April 26, 2022
Finance Department
RiversideCA.gov
2 1. City completed a competitive RFP process for Assessment Engineering/Special Tax Services in 2017 and entered into a Professional Consultant Services Agreement with Webb Municipal Finance, LLC. (formally known as Albert A. Webb Associates) on July 25, 2017.
2. Term of Agreement five years – two options to extend for one-year periods, as outlined in the RFP.
3. March 17, 2020, City Council a pproved a First Amendment with Webb for program management services.
4. Current term with Webb expired on March 31, 2022.
BACKGROUND
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3 1. The following services provided by Webb Municipal Finance are critical to the annual levy and Special District Debt Management:
• Preparation of the annual Engineer’s Report, LMDs and SLAD • Preparation of Special Tax and Assessments apportionments for SLAD, Library Services Parcel Tax, CSA, CFDs, LMDs, and ADs
• Recording and submitting levy data, maps and reports to the County Assessor’s Office
• Assist City staff in gathering data and preparing legislative and SEC mandated reporting
• Prepare tax tables, Rate and Method of Apportionments, and Boundary Maps, and sizing analysis for new district formations
• Serves as a liaison between the City, developers, property owners, and the County Recorder’s Office
DISCUSSION - SERVICES PROVIDED
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4 Challenges if the contract option is not exercised:
a) Interrupting the levy process by replacing t he Special Tax consultant at this time would impact our ability to transmit the Special Tax and Assessment Levy to the County • $12.2 Million loss of Special Tax revenue and Assessments • The City would be at risk of default for multiple bond issuances, resulting in SEC event noticing and damage to the City’s reputation as a large issuer of municipal debt • The City would not have sufficient assessment revenue to maintain its duty of care to assessment districts in the next fiscal year
Changing providers would result in much higher cost in terms of time and resources a) Webb is a Riverside business with 30 years of knowledge of Riverside Special Districts, residential developments and County data.
b) At least six months to transfer the extensive kn owledge of the City’s districts and history from Webb to new vendor
c) Each extension caps the annual increase at 2%, which is significantly lower than current inflation rate.
d) Timing of Special District projects makes it problematic to evaluate change of vendors until late July – will need overlap with Webb to wrap up projects.
DISCUSSION – EXTENSION
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5 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
STRATEGIC PLAN ALIGNMENT
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6 That the City Council:
1. Approve the Second Amendment to the Professional Consultant Services Agreement with Webb Municipal Finance, LLC.,
exercising both one-year options to extend the term of the Agreement to March 31, 2024, for a total Agreement amount of $805,619.
2. Authorize the City Manager or designee to execute the Second Amendment to the Professional Consultant Services Agreement with Webb Municipal Finance, including making minor and non- substantive changes.
RECOMMENDATIONS
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