District Consulting Group
COMPANY OVERVIEW
In
Business
NBS is a 100%
employee-owned
S-Corporation
NBS HEADQUARTERS
32605 Temecula Pkwy | Suite 100
Temecula, CA 92592
SAN FRANCISCO REGIONAL OFFICE
870 Market Street | Suite 1223
San Francisco, CA 94102
CONTACT
Greg Davidson | 800.434.8349
[email protected]
LEGAL NAME
NBS Government
Finance Group
DBA
NBS
INDIVIDUAL AUTHORIZED TO NEGOTIATE
AGREEMENT
Michael Rentner, President
The NBS District Consulting Group ensures your Special Financing Districts (SFD) and related revenue tools are well-developed from their inception, and then administered robustly over their lifetime.
We act as strong advocates for our public agency clients to ensure that any SFD or other revenue tool is appropriate and well-crafted for the need. Throughout our engagement, we provide sage guidance and recommendations. We are often called upon to present complex issues to councils, boards and interested parties.
We have supported thousands of SFDs including millions of parcels, and have worked through virtually every conceivable challenge in their use. Our experience is with all manners of special assessments, special taxes – including Community Facilities Districts (CFDs) – and other fees.
Whether the need is identifying and funding negative fiscal impacts, financing needed infrastructure, or providing community-desired services, our expert consultants have deep experience and help navigate the challenges.
AT-A-GLANCE: HELPING COMMUNITIES FUND TOMORROW
Since 1996, NBS has supported California
municipalities with the implementation
and ongoing administration of local
funding tools.
While the firm originally focused on
Special Financing Districts (SFDs),
specifically the formation and
administration of special assessments and
taxes, we have evolved with our clients’
needs and now provide a full range of
revenue consulting services. We focus on
sustainable water and wastewater utility
rate programs, cost allocation plans, cost
recovery, and legally justified fee design.
Across all practice areas, we have worked
with more than 500 public agencies to
date, including cities, counties, school
districts, utilities, and special districts.
26 YEARS
50 employees
172
Our Publications
We believe in continuing education, not only for our own team, but also for our clients and municipal staff.
As industry leaders, we have a unique set of qualifications and experience in the work we perform. In that regard, we have published four booklets on related industry topics that can be downloaded at no charge at
www.nbsgov.com/publications. For a hard copy, please
call 800.676.7516 or email [email protected].
Special Financing Districts (SFDs) has been credited as the best publication on SFDs in a decade by prominent
industry professionals.
Rates, Fees and Charges Compendium has received
high regard and interest from industry professionals.
Stormwater: A Ten-Step Funding Plan addresses the
spectrum of stormwater needs in California.
Community Facilities Districts (CFDs) explains this robust funding and financing tool for local governments in
California.
SCOPE OF SERVICES
Community Facilities District Administration (Non-Bonded)
DATA COLLECTION
NBS will gather and review data pertinent to the administration of the Community Facilities District (CFD).
Data will be obtained from various sources such as assessor’s parcel maps, building permits and county assessor information as determined to be necessary based on the requirements of the Rate and Method of Apportionment. NBS will maintain and periodically update a database of all parcels within the CFDs and relevant parcel information.
ADMINISTRATIVE COST RECOVERY
NBS will assist the City in identifying all costs associated with the administration of the CFD and recover those costs through the levy process as outlined in §53317(e) and §53340 of the Government Code of the State of California. Such costs may include, but are not to be limited to: bank fees, legal fees, county tax collection fees, and costs and expenses of the City and its consultants related to administration of the CFD. 173
SPECIAL TAX REQUIREMENT
NBS will calculate the annual Special Tax Requirement that will include all necessary components as outlined in the Rate and Method of Apportionment, such as funds necessary for authorized services and maintenance, administrative expenses, collection costs for direct financing of services or facilities, and credits as determined from the analysis of the CFD funds.
LEVY CALCULATION
NBS will calculate the annual special tax levy for each parcel within the CFD following the guidelines established in the Rate and Method of Apportionment.
MEETING ATTENDANCE
NBS will attend CFD-related City Council meetings as requested by the City.
LEVY SUBMITTAL
NBS will submit the levy to the County Auditor-Controller in the required format by the County’s deadline.
Special Taxes rejected by the County Auditor-Controller will be researched and resubmitted for collection on the County Tax Roll. Any parcels that are not accepted by the County for collection will be invoiced directly to the parcel owner, with payment to be directed to the City.
SPECIAL TAX LEVY REPORT
NBS will provide an annual Special Tax Levy Report. This report will include a parcel listing with levy amounts and other parcel information, the details of the annual Special Tax Requirement, fund analysis, administrative expenses to be recovered, and status of the project and current issues affecting the CFD.
ADDITIONAL REPORTING
NBS will be a resource to the City by staying current and identifying any new legislation and reporting requirements as they relate to the CFD.
For each of the following reporting requirements, NBS will review all pertinent documents and obtain the information needed to:
Prepare the required reporting to the California State Controller’s Office California Government Code, Section 12463.2, enacted as part of AB 2109. Provide to City staff for inclusion in the annual financial transaction report.
Assist in the filing of the SB 165 report to the City Council each year to comply with legislation that enforces additional reporting requirements. California Government Code, Sections 50075.3 or 53411.
Prepare other reports as required by any State and/or Federal disclosure reporting requirements pertaining to each CFD, as applicable, amended, or newly enacted and required. This may be subject to additional fee.
174
NOTICE OF SPECIAL TAX DISCLOSURE
NBS will provide Notice of Special Tax Disclosure notices to requesting parties as required by §53340.2 and §53341.5 of the Government Code of the State of California. The fee of any Notice of Special Tax shall be billed to the party requesting the disclosure form.
CONSULTING SUPPORT
NBS will provide a toll-free phone number for use by the City, other interested parties and property owners. Our staff will be available to answer questions regarding the CFD and ongoing collection of the special tax. Bilingual staff is available for Spanish-speaking property owners.
CLIENT REFERENCES
CITY OF FOLSOM, CA
CFD AND ASSESSMENT DISTRICT FORMATION AND ANNUAL ADMINISTRATION Service Dates: 2001 – Present
Contact Information Since 2001, NBS has been performing Special Financing District (SFD) annual administration and formation/annexation services for the City of Folsom, which includes CFD and AD administration. NBS formed eight (8) CFDs for the City, one of which has six (6) improvement areas.
We currently administer seventeen (17) CFDs (fifteen of which are bonded CFDs) on behalf of the City, in addition to 1915 Act Assessment Districts and Property and Business Improvement Districts. The City has also trusted NBS to form new districts as well as provide ongoing SFD Formation and Consulting work related to the City’s continued development. For FY 2021-2022, NBS levied $17.6MM on 13,800 parcels within the City’s CFDs.
John Donoghue
Deputy Treasurer
50 Natoma Street
Folsom, CA 95630
P: 916.355.7334
E: [email protected]
ANNUAL ADMINISTRATION | 2001 - PRESENT
“Quality is paramount in the services NBS provides, and we have faith in your professional abilities, accuracy, timelines and overall integrity.” – John Donoghue, Deputy Treasurer
175
EL DORADO COUNTY, CALIFORNIA
ANNUAL ADMINISTRATION AND DISCLOSURE SERVICES
Service Dates: 1996 – Ongoing
Contact Information NBS staff handles the ongoing administration for all El Dorado County’s Community Facilities Districts (CFDs), and has done so since 1996. The County’s CFDs are comprised of thousands of parcels with multiple series of bond issues and complex rate and method of apportionments (i.e., tax formulas).
NBS has worked as the County’s Special Tax Consultant, forming multiple new CFDs as well as providing the analytical support for a number of refundings.
The County finds value in the unique perspective NBS brings to addressing their current goals while continuously evaluating the feasibility of following the rate and method for the life of the bonds.
Joe Harn
Auditor-Controller
360 Fair Lane
Placerville, CA 95667
P: 530.621.5456
E: [email protected]
ASSOCIATION OF BAY AREA GOVERNMENTS (ABAG)
SFD FORMATION AND CFD ADMINISTRATION
Service Dates: 1999 - Present
Contact Information The Association of Bay Area Governments (ABAG) is owned and operated by the cities and counties of the San Francisco Bay Area. It was established in 1961 to protect local control, plan for the future, and promote cooperation on area-wide issues. In recent years, ABAG has answered the needs of its members by providing low-cost services that save the taxpayers millions of dollars.
In this case, ABAG formed a 1913 Act assessment district and issued $125 Million of 1915 Act Bonds since 1999 to fund the public infrastructure for the Windemere Ranch development in the City of San Ramon. Lennar Homes was the primary developer, and built approximately 5,200 homes. ABAG provided the funding for the roads, sewer, and miscellaneous infrastructure including a Fire station with the assessment district.
NBS has been part of the project since the early period and managed the construction reimbursements as well as the annual administration of the bonds. This specialized project required tracking of the construction funds for over 50 line items of construction including anything from Environmental consulting fees, Grading, and Acquisition of fire trucks and other equipment.
NBS continues to perform the following on behalf of ABAG: preparation of annual levies, preparation of pay-off quotes, delinquency management services, and overall management of the entire bond issue.
Catherine Cam
Treasury Manager
P: 415.778.5282
E: [email protected]
176
PROFESSIONAL FEES
Our proposed fees below are based upon our understanding of the City’s need for CFD Administration services.
ANNUAL ADMINISTRATION FEES
Annual Fees ............................................................................................................................................... $9,300 Estimated annual administration expenses (as needed/not to exceed) ..................................................... $550 Expenses
Customary out-of-pocket expenses will be billed to the City at actual cost to NBS. These expenses may include, but not be limited to, mailing fulfillment, postage, reproduction, telephone, travel, meals and various third-party charges for data, maps, and recording fees. For the One-time set up/Implementation, there could be one-time printing and mailing costs that exceed the typical annual cap above.
Annual Fee Increases
Cost of living increases may be applied to the services listed above in October each year, beginning with October 2026, should the City extend for additional year(s). The increase would be the actual cost of living increase based on the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index (CPI) for all urban consumers for the City’s area.
Additional Optional Services – Hourly Rates
The following table shows our current hourly rates. Any optional services authorized by the City but not included in the scope of services will be billed at this rate or the then applicable hourly rate. This may include attendance at additional meetings, notice and ballots, etc.
Title Hourly Rate
Director $250
Associate Director / Engineer $225
Senior Consultant / Manager $200
Consultant $175
Analyst $150
Clerical/Support $110
Terms
Administration services fees are for the first year, with possible CPI adjustment in subsequent years, as referenced above. Such fees will be invoiced at the beginning of each quarter. Expenses will be itemized and included in the next regular invoice. Fees for all other services will be invoiced upon completion of the task. If the project is prematurely terminated by either party, NBS shall receive payment for work completed. Payment shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days, simple interest will begin to accrue at the rate of 1.5% per month. Either party can cancel administration contracts with 30 days’ written notice.
177
EXHIBIT B
INSURANCE REQUIREMENTS
Without limiting CONSULTANT’s indemnification of CITY, and prior to commencement of Work, CONSULTANT shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below and, in a form, satisfactory to CITY.
General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this AGREEMENT, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this AGREEMENT, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this AGREEMENT and CONSULTANT agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this AGREEMENT.
Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Umbrella or excess liability insurance. [Optional depending on limits required].
CONSULTANT shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
178
• A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
Other provisions or requirements
Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or subconsultants.
Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.
City’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT payments. In the alternative, CITY may cancel this AGREEMENT.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City Administrator.
179
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONSULTANT of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 180
Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONSULTANT, provide the same minimum insurance coverage and endorsements required of CONSULTANT. CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section.
CONSULTANT agrees that upon request, all Agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review.
City’s right to revise specifications. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the CITY and CONSULTANT may renegotiate CONSULTANT’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’s performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 181