City of Culver City, California
Agenda Item Report
Meeting Date: January 23, 2012 Item Number: C-7
CITY COUNCIL AGENDA ITEM: Approval of a Professional Services Agreement
with NBS for Special Tax Consulting Services Related to the Development of a
Community Facilities District for the Washington/National Transit Oriented
District.
Contact Person/Dept.: Elaine Warner Phone Number: 310.253.5777
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Agenda and Meetings – City Council (01/19/12), Property Owners in
the Transit Oriented Development District (1/12/12)
Department Approval:
Sol Blumenfeld: (1/18/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (01/18/12)
Chief Financial Officer Approval:
Jeff Muir (01/18/12)
City Manager Approval:
John M. Nachbar (01/19/12)
RECOMMENDATION:
Staff recommends the City Council approve a professional services agreement with
NBS for special tax consulting services related to the development of a Community
Facilities District (CFD) for the Washington/National Transit Oriented District in an
amount not-to- exceed $48,750.
BACKGROUND:
Over the last four years, staff has prepared detailed land use studies of the
Washington/National transit oriented development site at the Phase I terminus of
the Exposition Light Rail Line connecting downtown Los Angeles with the Westside
and Culver City. A large part of this analysis focused on developing a placemaking
project that will improve mobility, connect neighborhoods, and provide streetscape
and open space amenities for the area.
To this end, a CFD can be established to fund public capital
improvements/infrastructure and the ongoing maintenance of such improvements for
the Washington/National area. Currently, the area surrounding the new station at
Washington/National is designated as a Transit Oriented Development District and a
Community Benefit District. It is comprised of primarily businesses as well as three
future transit oriented mixed-use developments including Washington/National,
Legado and The Platform.
City of Culver City, California
Agenda Item Report
DISCUSSION:
A CFD is a tool available to counties, cities, school districts, and special districts to
fund public improvements and services when no other source of money is available.
CFD’s can amortize financing for improvements such as streets, sewer systems, and
other basic infrastructure, police protection, fire protection, ambulance services,
schools, parks, libraries, museum, and other cultural facilities. CFD’s are created by
a sponsoring local government agency, and the district generally includes all
properties that will benefit from the improvements to be constructed or the services
to be provided. If there are fewer than 12 residents in a particular district, the vote is
conducted of current commercial landowners. Similar to an assessment district, the
CFD, once approved, would levy a special tax on each parcel within the District
based on mathematical formulas that consider property characteristics such as use,
structure and lot size. If project costs are high, bonds may be sold by the CFD to
provide the capital needed to build or fund the services. By California State Law, the
CFD is also entitled to recover expenses incurred to form the CFD and administer
the annual special taxes and bonded debt.
i
Creating a CFD is complex and typically requires specialized guidance. Thus, staff
recommends that the City Council approve a professional services agreement with
NBS to analyze the creation of a CFD in the Washington/National Transit District
area that will fund public improvements, infrastructure, and maintenance relative to
the City and community’s place-making and streetscape goals. NBS has consistently
provided outstanding service and valuable advice to staff relative to other
assessment district formations throughout the City. Per their three phase proposal
(Attachment No. 1), NBS will analyze the inclusion of a CFD process within the
Culver City Municipal Code, potential rates and methodologies based on property
characteristics and tax base factors to fund capital improvements and ongoing
maintenance, and also assist with community outreach, data collection and bond
documentation (should the City Council determine to move forward with a CFD.
NBS will also draft the special tax report (similar to an Engineer’s Report) and file all
the related CFD documents with the County Assessor’s Office upon completion.
Staff has studied potential streetscape improvements and related utility and
infrastructure costs. Though the specific public improvements have not yet been
finalized, they are anticipated to be significant and will likely require the sale of a
bond. The term and interest rates of the bond will depend on the market at the time
of sale. Currently, similar types of bonds are termed for 25-30 years at a blended
interest rate of 5%-6%.
FISCAL ANALYSIS:
Staff recommends that a not-to exceed contract in the amount of $48,750 with NBS
be approved to assist in forming the Washington/National Transit Oriented
Development CFD. This CFD will be critical in implementing the public City of Culver City, California
Agenda Item Report
improvements necessary to create an attractive and connected district relative to the
Exposition Light Rail. Funds have been allocated for this cost in program
48592620.619800 (former Agency Funds). The costs for this special tax consulting
service as well as other services required to form the CFD (legal counsel, disclosure
counsel, underwriter and other issuance costs) may be recovered by the City once
the CFD is formed.
ATTACHMENTS:
Attachment 1 – Proposal from NBS
Attachment 2 – Letter from William Feldman
Attachment 3 – Letter from Walter N. Marks
MOTION:
That the City Council:
1. Approve a professional services agreement with NBS for special tax
consulting services related to the development of a Community Facilities District
for the Washington/National Transit Oriented District in an amount not to exceed
$48,750; and,
2. Authorize the City Attorney to review/prepare the necessary documents;
and,
3. Authorize the City Manager to execute such documents on behalf of the
City.
i
Information derived from www.califoniataxdata.com
MEETING DATE: 01.23.12
AGENDA ITEM: Approval of a Professional Services Agreement with NBS for
Special Tax Consulting Services Related to the
Development of a Community Facilities District for the
Washington/National Transit Oriented District.
ATTACHMENTS
Pages
1. Proposal from NBS 1-17
2. Letter from William Feldman 18
3. Letter from Walter N. Marks 19
Main Office
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516 Fax: 951.296.1998
Regional Office
870 Market Street, Suite 1223
San Francisco, CA 94102
Toll free: 800.434.8349 Fax: 415.391.8439
Proposal to Perform
Special Tax Consulting Services
Related to the Proposed Culver City Washington-National
Area Community Facilities District
for the
City of Culver City
January 6, 2012
ATTACHMENT 1
1
January 6, 2012
Ms. Elaine Gerety Warner
Senior Management Analyst
City of Culver City
9770 Culver Blvd, 3
rd
Floor
Culver City, CA 90232
Subject: Proposal for Special Tax Consulting Services related to the Proposed
Washington-National Area Culver City Community Facilities District
Dear Ms. Gerety Warner:
Thank you for the opportunity to submit this proposal to the City of Culver City (?“City?”) to assist with
Special Tax Consulting Services related to the proposed Washington-National area Culver City
Community Facilities District (?“CFD?”). We are confident the content s included herein demonstrate our
ability to perform the tasks necessary to complete this project. Our objective is to provide coordinated,
comprehensive, and cost effective services that will enhance the efforts of the City to serve its
constituents in the area of the Washington-National Metro Rail station.
In addition to our current work with the City, our experience includes working with over 250 local
governments, representing hundreds of districts, performing many types of Special Financing District
Formation projects. NBS has the strongest team in the industry. To demonstrate this, please note our
experience as it applies to this project and what differentiates us from our competition:
NBS works with public agencies and stakeholder groups across California. NBS has been
responsible for the formation, administration, and renewal of districts representing over one million
parcels.
NBS works extensively within Los Angeles County, including the Cities of Los Angeles, Long Beach,
Palmdale, La Habra Heights, and Santa Clarita, and is very familiar with the County processes and
data sources.
NBS has extensive experience in both registered voter and land owner CFD elections.
NBS claims the fastest full formation of a Property and Business Improvement District in California.
NBS has been involved in some of California?’s most successful revitalization efforts including
Downtown Long Beach and the Town of Mammoth Lakes.
The recommended next step to determine the possibility of establishing a CFD in the area of the
Washington-National Metro Rail station is to establish policies and procedures related to CFDs, analyze
the City?’s Charter to determine if a Municipal Ordinance should be establishe d or state law should be
used, prepare a financial modeling report with proposed methodologies and rates along with details
outlining the CFD formation process and timeline. Once those pieces are in place, the CFD formation
process can commence.
ATTACHMENT 1
2
On behalf of the NBS team, we thank you again for the opportunity to submit this proposal. We look
forward to assisting the City with consulting services as it relates to the establishment of a new CFD in
Culver City. If you have any questions please do not hesitate to contact me via phone at (800) 676-7516
or e-mail at gdavidson@nbsgov.com.
Sincerely,
Greg Davidson
Director
NBS, 32605 Temecula Parkway, Ste. 100, Temecula, CA 92592
ATTACHMENT 1
3
Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
TOC
TABLE OF CONTENTS
Section Page
Cover Letter ......................................................................................................................... Previous Page
NBS Introduction ......................................................................................................................................1
Introduction to Project ...............................................................................................................................1
Scope of Services ....................................................................................................................................2
Key Personnel ..........................................................................................................................................4
Staff Qualifications and Experience ...................................................................................................4
Project Team Structure ....................................................................................................................4
Organizational Chart ........................................................................................................................4
Professional Biographies ..................................................................................................................5
NBS PROFILE .............................................................................................................................................9
Qualities of NBS .................................................................................................................................9
NBS Headlines ...................................................................................................................................9
NBS Clients ....................................................................................................................................10
Client Satisfaction .............................................................................................................................10
References ..............................................................................................................................................11
Project Budget ........................................................................................................................................13
Fees ................................................................................................................................................13
Expenses ........................................................................................................................................13
Additional Services ...........................................................................................................................13
Terms ...............................................................................................................................................13
ATTACHMENT 1
4
Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
1 of 13
NBS INTRODUCTION
NBS is an independent firm that assists local governmental agencies, including Cities,
Counties, Special-purpose districts (including water, sewer) and School districts.
For nearly 15 years, NBS has assisted these agencies with specific public finance tasks
and engineering projects related to the use of Special Financing Districts (?“SFD?’s?”),
which include special assessment and special tax districts. This is the primary focus at
NBS, and we are committed to providing on-going administration, assessment
engineering, financial consulting, special tax consulting and other related services. The
firm was founded in 1996 by experienced finance and engineering professionals, and
has worked with more than 250 public agencies to date.
Our staff is extremely experienced in formation services and in all manners of special
assessment, tax, and fee districts; from PBIDs to CFDs, Landscape districts, 1915 Act
assessments, and more. We have worked with every type of SFD in almost every
County in the State.
Further, the staff at NBS is intimately involved with the latest practices and legal
changes for SFDs. We not only participate in educational updates, but we provide in-
depth training during our annual workshops. We are also commonly asked by various
organizations to speak at annual conferences and seminars (such as the CDA, CMTA,
CSDA, League of CA Cities, etc.). Our SFD primer, available for download from the NBS
website (www.nbsgov.com), has been credited as the best publication on SFDs in a
decade by prominent industry professionals. Lastly, NBS is active with legislation
affecting the use of SFDs, with significant input on the Proposition 218 related recent bill
SB 321, for example. We will continuously keep City staff up to date, via meetings,
newsletters, training, etc.
INTRODUCTION TO PROJECT
The Los Angeles County Metropolitan Transportation Authority (?“Metro?”) is currently
constructing the first phase of the Exposition Transit Corridor to Culver City which will
connect downtown Los Angeles with the Westside and Culver City. The second phase
of the project will continue rail service to Santa Monica.
The area surrounding the new station at Washington and National is currently
designated as a Transit Oriented Development zone and a Community Benefit District
area. The Community Benefit District designation provides incentives for certain public
facilities to be provided as part of development. In this case, public parking, pocket
parks, open space streetscape improvements and shuttle bus funding are the amenities
expected from development.
The City is considering the formation of a CFD to fund the public facility capital
improvements, the ongoing maintenance of the improvements or both. NBS offers our
support and service to Culver City via this proposal. NBS is a firm that specializes in
generating revenue for the public sector. Further, we have formed numerous CFDs to
fund capital improvements and ongoing maintenance.
We have discussed an initial exploratory phase related to the potential CFD formation.
NBS is prepared to evaluate and recommend policies and procedures for CFD
formation, analyze the City?’s Charter to det ermine if a Municipal Ordinance should be
established or state law should be used and prepare a financial modeling report with
proposed methodologies and rates along with details outlining the CFD formation
City of Los Angeles
MIRANDA PASTER
SPECIAL ASSESSMENTS
MANAGER
?“I appreciate the time that you
and Greg Davidson have given
to the Wilmington Industrial
proposed Business Improvement
District project, as well as
keeping the City Clerk?’s Office
apprised of your ongoing
involvement with the proponent
group.?”
ATTACHMENT 1
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Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
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process and timeline. Once those pieces are in place, NBS is prepared to execute the
CFD formation, including preparation of required mapping, rate and method of
apportionment and other documents. To that end and for your reference, we offer a
scope of service and fee proposal for Special Tax Consulting Services related to a
Community Facilities District.
SCOPE OF SERVICES
NBS shall provide the following scope of services for the City.
PHASE I
Activity Deliverables
Task A. Initial meeting with Culver City Group
All hands meeting ?– It is imperative that all of the
stakeholders, staff, and NBS have an initial meeting to
fully understand the parameters, possibilities, and any
limitations for a successful effort. The timeline and
issues thereof can be vetted in this initial meeting(s).
Timeline
Task B. Draft CFD Policies and Procedures
Prepare draft CFD Policies and Procedures document
which is consistent with the City?’s goals and CFD law.
CFD Policies and
Procedures
document
Task C. Analyze CFD law, determine if Municipal Ordinance
is desired
California?’s CFD law will be analyzed related to the
project goals, any strengths or deficiencies noted and
compared to potential Municipal Ordinance.
Analysis
Task D. Financial Modeling
Based on the area designated as Transit Oriented
Development District and Community Benefit District,
NBS will analyze potential rates and methodologies
based on property characteristics and tax base factors
to fund capital improvements, ongoing maintenance or
both. The final report will also include an outline of
necessary steps to complete the formation of a CFD
along with a proposed timeline
Report
PHASE II
Activity Deliverables
Task A. Community Outreach
NBS will be available for one full day of meetings and
information sessions with property owners, elected
officials and other stakeholders. All printed or visual
material is included.
Outreach
Presentation
Materials
Task B. Outreach Toolkit
NBS will prepare additional printed and visual material
for City staff to conduct additional outreach as
necessary.
Outreach
Presentation
Materials
ATTACHMENT 1
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Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
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PHASE III
Activity Deliverables
Task A. Establish CFD Formation Team
NBS will assist the City in contacting providers of the
required professional services for a CFD formation.
Participant List
Task B. Formation Kickoff Meeting
NBS will meet with City staff and other participants to
establish lines of communication, clarify project goals
and identify any special circumstances.
Timeline
Task C. District Boundaries and Mapping
NBS will establish the boundary of the CFD, verify
ownership based on the last equalized tax roll and
prepare the Boundary Map in the format required.
Parcel Listing and
Boundary Map
Task D. Rate and Method of Apportionment, Special Tax
Modeling
NBS will formulate and present the Rate and Method
of Apportionment and pro forma to model the special
tax based on various land uses, development and
structure presented in the Rate and Method of
Apportionment
Rate and Method
of Apportionment
and Special Tax
Modeling Pro
Forma
Task E. Special Tax Report
Based on the results of reviews, discussions
modifications and feedback, NBS will prepare a
detailed written report which includes the project cost
estimate, Rate and Method of Apportionment and
Boundary Map.
Special Tax
Report
Task F. Public Hearing
NBS will present all necessary testimony and respond
to public comments regarding the CFD formation
proceedings.
Provide Testimony
Task G. Data for Bond Documents
NBS will provide certain disclosure data for bond
documents, including the Official Statement. Such
data may include parcel data, assessed valuation,
special tax classification, value to lien and other
relevant data for proper disclosure to potential bond
investors. NBS will also review bond documents
prepared by legal counsel and other participants.
Disclosure Data
Task H. Filing CFD Documents
NBS will record the Boundary Map and Notice of
Special Tax Lien with the County Recorder?’s office in
compliance with applicable law.
Recorded
Boundary Map
and Notice of
Special Tax Lien
ATTACHMENT 1
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Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
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KEY PERSONNEL
Staff Qualifications and Experience
NBS is staffed with seasoned experts who are dedicated to providing our clients with the
best possible results. While we will commit the individuals identified below for the
duration of the City?’s project, please note t hat NBS has the infrastructure necessary to
deliver the City required work products in any unforeseen conditions that require
additional labor efforts. We also have an extensive group of individuals available for any
quality assurance/quality control efforts beyond those anticipated.
The NBS staff is fully conversant with all changes to laws, codes, and regulations
affecting local governments. Recognized as leaders in their field, they are often asked to
teach continuing education courses, serve as expert witnesses, and participate in
workouts for troubled agencies. In addition, NBS staff works with our clients as partners
by developing an intimate knowledge of their needs and responding with strategic and
timely solutions.
Project Team Structure
NBS certifies that the following individuals will perform the work for the City:
Pablo Perez, Client Services Director: Mr. Perez will be responsible for obligating
NBS to all commitments, schedule, and pricing for the project. Pablo will ensure that
the City?’s fundamental objectives for the Special Tax Consulting Services are being
met at all times.
Greg Davidson, Project Manager: Mr. Davidson will work closely with the City?’s
designated project manager to monitor the project schedule and delivery of work
products to the City?’s satisfaction. He will serve as the primary contact for City staff
and will provide senior-level technical analysis as warranted throughout the project.
Sara Mares, Senior Consultant: Under the direction of the Project Manager, Ms.
Mares will serve as the secondary point of contact for City staff. Sara will perform all
day-to-day activities related to the Special Tax Consulting Services.
Tiffany Ellis, Financial Analyst: Under the direction of the Project Manager, Ms. Ellis
will serve as an additional secondary point of contact for City staff. Tiffany will support
all day-to-day activities related to the Special Tax Consulting Services.
Organizational Chart
Reporting structure
for the project team:
ATTACHMENT 1
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Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
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Professional Biographies
Pablo Perez, Director
Project Role: Client Services Director
Pablo Perez is a Director with NBS where he and his staff form and administer various
types of Special Financing Districts (SFD). He has over 20 years of experience, and is
actively involved with district formations and bond issuance/refunding analysis as well as
daily management of district administration operations. He also performs feasibility
studies and related financial projects.
SFD projects: Pablo has significant experience with many types of SFD?’s including:
o 1972 Act Maintenance Districts
o Standby and other Fees and Charges
o 1915 and 1911 Act Assessment Districts
o Community Facilities Districts (CFD?’s)
o Business Improvement Districts (BID?’s)
o Benefit Assessment Districts (BAD?’s)
o Public Safety Districts including Fire Assessments and Taxes
o
His involvement includes analysis of district finances as well as oversight of tasks
such as audits of assessment liens, delinquency management activities,
apportionment of liens, continuing disclosure, arbitrage rebate calculations, bond
tenders, and district workouts.
Continuing Disclosure: He has been responsible for the preparation and
dissemination of disclosure reports for all types of municipal bonds for over a
hundred public agencies.
Financial Projects: Pablo has managed numerous projects relating to assessment
and special tax districts, including apportionments of 1915 Act liens, tax roll billing
services, continuing disclosure reports, arbitrage rebate calculations, human
resources consulting, fund analysis and recommendations, bond tenders,
conversion of bonds, delinquency management, and special project consulting.
Proposition 218: Pablo provides Proposition 218 consulting services related to the
establishment or increase of fees, charges and assessments. He is an
acknowledged expert in Proposition 218 compliance programs which of particular
significance was the City of La Habra Heights project. There were over 2,000
assessment ballots mailed, and the property owners voted to retain the annual
assessment for street maintenance.
County Data Procurement: Pablo is on a ?“first name basis?” with many of the County
assessor and auditors staff in the State.
Sample Clients: Pablo has worked for many public agencies including:
o City of Hesperia
o City of Los Angeles
o City of La Habra Heights
o City of Long Beach
o City of Oakland
Pablo has 22 years of experience in the private and public finance sectors, including 20
years specializing in the administration of special financing districts. Prior to working in
public finance administration, he worked for a financial firm in New York.
Highlights
20 years of experience
Special Financing District
expert
Continuing disclosure expert
Experienced Special Tax
Consultant
Presenter at educational
seminars
Education
Bachelor of Arts, Liberal
Studies, California Baptist
University
Professional
Affiliations
California Society of
Municipal Finance Officers
(CSMFO)
California Special Districts
Association (CSDA)
California Municipal
Treasurer?’s Association
(CMTA)
ATTACHMENT 1
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Proposal for
Special Tax Consulting Services for the City of Culver City
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Greg Davidson, Director
Project Role: Project Manager
Greg Davidson is a Director with NBS where he and his staff form and administer special
financing districts, including Business Improvement Districts, Landscape Maintenance
Districts, 1913 and 1915 Act Assessment Districts, and Community Facilities Districts.
Greg is actively involved in managing the day-to-day district administration operations,
the preparation of the annual special assessment levies, and related special projects. He
has worked directly with more than 100 Agencies administering 300 Districts.
District Formation: Greg has formed Special Financing Districts consisting of:
o Business Improvement Districts
o Community Facilities Districts (Mello-Roos)
o Landscape Maintenance Districts
Speaking Engagements: Greg participated in speaking panels for the USDA,
CMTA, CSMFO, and presented at the 2009 annual CDA conference.
District Administration: Greg has more than 12 years of experience in actively
managing ongoing administration and annual levy calculations for Landscape
Maintenance Districts, 1913/1915 Act Assessment Districts, and Mello-Roos
Community Facilities Districts. He has trained numerous staff, and has directly
prepared levies for hundreds of Assessment and Special Tax Districts. He has also
provided consulting services related to curing troubled districts which have involved
judicial foreclosure, refinancing and property owner bond tender programs.
Financial Projects: Greg has experience performing revenue audits, parcel audits,
tax roll billing services and the formation of Community Facilities Districts.
Continuing Disclosure: Greg has prepared and disseminated Municipal Disclosure
Reports for numerous California Agencies over the past several years. He currently
is involved with the preparation and approval of more than 160 disclosure reports for
1915 Act, Community Facilities District, Tax Allocation and General Obligation
Bonds.
1915 Reassessment and Refunding: Greg has prepared several Reassessment
Reports as required by the California Streets and Highways Code §9523 saving
parcel owners a significant amount of money.
Proposition 218: Greg also provides Proposition 218 consulting services related to
the establishment or increase of fees, charges and assessments.
Sample Clients: Greg has worked for many public agencies, performing BID
formation work including:
o City of Los Angeles
o City of Concord
o City of Camarillo
o City of Glendale
o City of San Francisco
Highlights
Expert in District
Administration
Project Manager on numerous
projects with over eleven years of
experience with Special Financing
Districts
Experienced Special Tax
Consultant
Over 12 years experience
Education
Certified Downtown Professional,
California State University ?–
San Bernardino
Bachelor of Science, Business
Finance with minor in Psychology,
San Diego State University
Professional
Affiliations
California Downtown
Association (CDA)
California Special Districts
Association (CSDA)
California Society of Municipal
Finance Officers (CSMFO)
ATTACHMENT 1
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Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
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Sara Mares, Senior Consultant
Project Role: Senior Consultant
Sara Mares is a Senior Consultant with NBS. She forms special financing districts,
including 1913 Act Assessment Districts, Community Facilities Districts, Landscape and
Lighting Districts, Benefit Assessment Districts, Property and Business Improvement
Districts and Fire Assessments. Sara has experience working with all aspects of the
formation process, including planning, project management, budget analysis,
development of Rate and Method of Apportionment and Engineer?’s Reports and
presentations. She also has significant experience with ongoing special district
administration including levy submittal, delinquency management and continuing
disclosure.
District Formation: Sara has formed many Special Financing Districts for many
communities across California, including Community Facilities Districts, Landscape
Maintenance Districts, Benefit Assessment Districts, Property and Business
Improvement Districts and Fire Assessments. She has prepared the Special
Assessment and Special Benefit Methodologies and Rate and Method of Special
Tax Apportionment Models.
Reassessment Consulting: Sara has prepared several Reassessment Reports as
required by the California Streets and Highways Code §9523 saving parcel owners
a significant amount of money. Sara has been involved with many challenging
issues, including pooled bonds, workouts and distressed districts including a project
which was nominated for the Bond Buyer Deal of the Year Award.
Proposition 218: Sara provides Proposition 218 Consulting Services related to the
establishment of and increases to fees, charges and assessments.
District Administration: Sara has extensive experience in ongoing administration
and annual levy calculations for 1913/1915 Act Assessment Districts, Mello-Roos
Community Facilities Districts, Landscape & Lighting, and Benefit Assessment
Districts.
Continuing Disclosure: Sara has prepared and disseminated Municipal Disclosure
Reports for several California Agencies. She prepared and disseminated ongoing
disclosure reports for special districts including 1915 Act, Community Facilities
Districts in compliance with Securities Exchange Commission regulation 15c2-12.
Delinquency Management: Sara also works extensively on delinquency
management. This includes the gathering of county data, sending letters, setting up
payment plans and dealing with foreclosure attorneys and property owners. Sara
has managed delinquencies for over 21 public agencies and approximately 60,000
parcels.
Highlights
Over 10 years experience
Expert in the Field
Project Manager on numerous
projects
Expert in formation and
administration
Experienced Special Tax
Consultant
Education
Bachelor of Arts, with honors,
Economics, Mills College
ATTACHMENT 1
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Proposal for
Special Tax Consulting Services for the City of Culver City
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Tiffany Ellis, Consultant
Project Role: Financial Analyst
Tiffany Ellis is a Consultant at NBS where she administers special financing districts
including 1913/1915 Act Assessment Districts, Mello-Roos Community Facilities
Districts, Landscape and Lighting Districts, Benefit Assessment Districts, and Energy
Assessment Districts. She is actively involved in the daily administration of district
administration operations.
District Administration: Tiffany has experience in ongoing administration for
1913/1915 Act Assessment Districts, Mello-Roos Community Facilities Districts,
Landscape and Lighting Districts and Energy Assessment Districts. Her
experience includes preparing annual assessment levy calculations, direct
assessment billings, district fund analyses, debt service tracking and monitoring
delinquent assessments to ensure timely debt service repayment. Tiffany
administers numerous districts with an aggregate parcel count of over 128,000
parcels.
Energy Assessment Districts: Tiffany works extensively with one of California?’s
first energy independence programs and contractual assessments in the County
of Sonoma. This includes the gathering of county data, bond calls, assessment
payoffs, debt service tracking, cash flow analysis, and levy submittals.
LMD/BAD Formation and Assessment Increases: Tiffany assists public agencies
with Proposition 218 compliance, the coordination of city council and community
outreach meetings, in addition to preparing notices, ballots and other materials.
Levy Submittal Management: Tiffany is responsible for coordinating the annual
levy submittal for multiple counties, which include over 130 special financing
districts and over 115,000 parcels.
Continuing Disclosure: Tiffany prepares, disseminates and is responsible for
many Continuing Disclosure Reports for over a dozen public agencies. She has
completed continuing disclosure reports for all types of municipal bonds in
compliance with Securities Exchange Commission regulation 15c2-12.
Delinquency Management: Tiffany works extensively on delinquency
management. This includes the gathering of county data, removing assessments
from the county tax roll, and dealing with foreclosure attorneys and property
owners.
Special Projects: In addition to the above listed responsibilities, Tiffany works on
several special projects including District Closeouts, assisting public agencies with
the coordination of public hearings, assisting Cities and Districts with code
compliance on several topics related to land-based financing, assistance with
judicial foreclosure processes and pre-formation and pre-bond disclosure analysis.
Highlights
Experience with ongoing
administration of special financing
districts
Administrator for the Sonoma
County Energy Independence
Program
Responsible for ongoing
administration of over 100
districts
4 years of experience
Education
Bachelor?’s of Science in
Business Administration,
California State University,
San Marcos
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Proposal for
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NBS PROFILE
Qualities of NBS
From a public agency?’s perspective, we believe the following five points are the most
important qualities of NBS:
1. Experience ?– NBS staff have worked with every type of SFD in almost every County
in the State. Our long history of providing ongoing administrative services gives us
the advantage of being able to develop solutions that make long term sense.
2. Differentiation ?– The unique qualities of NBS include:
Working solely for local public agencies, without the inherent conflict of interest
Development of D-FAST software, which incorporates the latest in technology
Focus on the needs of local agencies who use SFD?’s
3. Benefits - By using NBS, a public agency gets:
Quality of work and attention to detail
High level of service
Real stewardship, offering solutions that make sense for the public
Value and reasonable fees
4. Base Infrastructure and Systems ?– The backbone of NBS includes:
Robust information and data technology systems
Quality control systems to ensure accuracy
An emergency preparedness and business back-up plan
Options for enhanced data availability via D-FAST proprietary software
5. Strong Track Record: Most importantly, NBS has a proven track record of
delivering services on time, as demonstrated by:
Continuous growth of client base
High client retention rate
Strong client references
The ultimate goal of NBS is to provide support, expertise and solutions that allow local
agencies to focus on their communities?’ needs and core services.
NBS Headlines
OVER 150 years combined experience of senior staff alone
FIRST Proposition 218 ballot process
FASTEST full formation of a Property and Business Improvement District in California
LONGEST legacy of best-of-breed software
UNIQUE as exclusive provider to local governments
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Proposal for
Special Tax Consulting Services for the City of Culver City
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NBS Clients
NBS has a client base of over 250 local government agencies, which includes
everything from small special districts to the largest of cities as represented below.
Larger
City and County of San Francisco
City of Chula Vista
City of Long Beach
City of Los Angeles
City of Oakland
City of San Diego
City of Temecula
Contra Costa County
Olivenhain Municipal WD
Mid Size
City of Alameda
City of Concord
City of Folsom
City of Santa Clarita
City of Scottsdale
City of Suisun City
Empire Union School District
Trabuco Canyon Water District
Smaller
Bel Marin Keys CSD
City of Emeryville
City of Placerville
City of Garden Grove
City of Newman
Piedmont Unified School District
Coastside County Water District
Riverbank Union School District
Client Satisfaction
In a recent Client Care Survey conducted by NBS, we were pleased to receive the
following feedback from our clients:
Sample Results
Overall Satisfaction Overall Value
4.6 out of 5 4.5 out of 5
Cities
Counties
School
Districts
Special
Districts
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Proposal for
Special Tax Consulting Services for the City of Culver City
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REFERENCES
For nearly 15 years, NBS has provided feasibility, outreach, financial analysis, formation
and ongoing administration for hundreds of local agencies in California. Below we have
provided a sampling from recent relevant projects and references.
CITY OF PALMDALE
Project Name
Community Facilities District Formation
Contact Name
Betsy St. John, Finance Director
Contact
Information
38300 N. Sierra Highway, Building D, Palmdale, CA 93550
(P) 661.267.5417 | (E) bstjohn@cityofpalmdale.org
Project
Description
The City of Palmdale retained NBS to form a CFD as part of a mixed
commercial and residential area, including a master-planned
community of over 6,000 homes and four improvement areas with a
very complicated development plan. The Special Tax funded
$150,000,000 in bonds. NBS was involved from the inception of the
project and worked through numerous scenarios to develop options
that best fit the situation and protected the City. The project team
included attorneys, finance professionals and a seasoned developer.
This team has worked on many such large scale developments, and
the need for a top-notch solution was obvious. NBS analyzed the
various factors and development plan to formulate a Rate and
Method of Apportionment of Special Tax which was congruent with
the total financing solution of the project. In addition, a prepayment
formula based on share of the total bonding capacity was included.
OLIVENHAIN MUNICIPAL WATER DISTRICT
Project Name
Community Facilities District Formation
Contact Name
Rainy Selamat, Finance Manager
Contact
Information
1966 Olivenhain Road, Encinitas, CA 92024
(P) 760.753.6466 | (E) rselamat@olivenhain.com
Project
Description
The Olivenhain Municipal Water District retained NBS to form a
Community Facilities District as part of a developing residential area.
NBS was involved from the inception of the project and worked
through numerous scenarios to develop options that best fit the
situation and protected the Water District. The project team included
attorneys, finance professionals and a seasoned developer.
NBS analyzed various factors including the development plan to
formulate a Rate and Method of Apportionment of Special Tax which
was congruent with the total financing solution of the project. The
solution included two tax zones. NBS prepared the required Special
Tax Report and affidavits related to the formation.
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Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
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NEVADA IRRIGATION DISTRICT
Project
Name
Community Facilities District Formation
Contact
Name
Timothy A. Crough, Assistant General Manager
Contact
Information
1036 West Main Street, Grass Valley, CA 955945
(P) 530.273.6185 | (E) crough@nid.dst.ca.us
Project
Description
The Nevada Irrigation District (?“NID?”) in the Sierra foothills retained
NBS as advisor and Special Tax Consultant to form a Community
Facilities District (?“CFD?”) to provid e $5MM in capital as part of the
financing for desperately needed water system infrastructure in an
area known as Cement Hill. This infrastructure was needed to hook up
the residents to the existing NID treated water system as the local
wells were becoming inadequate, both in terms of water quality and
quantity.
NBS was involved from the inception of the financing project, initially
looking at the feasibility of either a CFD or a 1913/1915 Act
assessment district. NBS worked closely with the property owners and
NID staff to analyze many issues that lead to a successful solution.
The final CFD solution included the following creative components:
An initial ?“cash collection?” period, allowing property owners to
prepay their share of the costs before the financing commenced
Penalty or quasi ?“catch-up?” tax for additional connections in the
future (for equity purposes)
Ability to add the NID connection fees to the CFD financing
NBS used the various new factors and existing conditions to formulate
the Rate and Method of Apportionment of Special Tax (i.e., Special
Tax Formula). NBS prepared the required Special Tax Report and
Boundary Map related to the formation.
This CFD was noteworthy for the following primary reasons:
It solved a long-standing water well problem
Comprised a registered voter constituency in a capital-financing
CFD
The registered voter vote was conducted by NBS and NID, not
the County registrar?’s office, via a mailed ballot
Nevada Irrigation District
TIMOTHY A. CROUGH
ASSISTANT GENERAL
MANAGER
?“This project came together after
several years of collaboration
between NBS, NID staff and
the local residents. NBS
provided the financing solution
that met the local needs and
resulted in overwhelming
community support. NBS is a
valuable resource to our staff,
providing their expertise and
ability to accomplish our goals.?”
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Proposal for
Special Tax Consulting Services for the City of Culver City
Prepared by NBS ?– January 6, 2012
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PROJECT BUDGET
Fees
NBS has provided the following fee based on the information provided and our
understanding of the overall level of effort required. Should NBS be retained as the most
qualified firm to work with the City, we will endeavor to set up a fee and billing schedule
that is commensurate with the tasks required that meets the needs of the City.
Phase I ..................................................................................................................... $14,750
Phase II .................................................................................................................... $5,000
Phase III ................................................................................................................... $29,000
Excludes out-of-pocket expenses (see below)
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 travel, mailing fulfillment, postage, telephone,
reproduction, materials, lodging, meals and various third-party charges for data, maps,
and recording fees.
Additional Services
The following table shows our current hourly rates. Additional 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.
Title Hourly Rate
Director $ 190
Senior Consultant/Programmer 150
Engineer 140
Consultant 130
Analyst 100
Clerical/Support 55
Terms
Consulting services will be invoiced monthly upon completion of the task. Expenses
will be itemized and included in the next regular invoice. 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
contracts with 30 days written notice.
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