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HomeMy WebLinkAbout1993-215 1 RESOLUTION NO. 93-215 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING APPROVAL OF A LETTER AGREEMENT WITH MUNI FINANCIAL SERVICES (MFS) FOR 1915 3 ACT ASSESSMENT DISTRICT AND COMMUNITY FACILITIES DISTRICT ADMINISTRATION AND APPOINTMENT OF A TRUSTEE FOR THE BONDHOLDERS RELATIVE TO THE COLLECTION OF DELINQUENT ASSESSMENT TAXES. 4 5 6 7 Bernardino, pursuant to the Improvement Bond Act of 1915 (Division 8 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: WHEREAS, the Mayor and Common Council of the City of San 10 of the Streets and Highways Code of the state of California) has 9 within the following special levied upon lands assessments 10 Assessment Districts: 5861, 961R, 977A, 977B, 985, 987 and 1003, 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 which are described in Resolutions of Intention adopted for said improvements, (hereinafter "ADs"); and WHEREAS, said proceedings provide for the issuance of bonds pursuant to the Improvement Bond Act of 1915 (Division 10 of the streets and Highways Code of the state of California), and said bonds were previously issued; and, WHEREAS, the Mayor and Common Council of the city of San Bernardino formed a Community Facilities District pursuant to the terms and provisions of the Mello Roos Community Facilities Act of 1982, (Division 2.5, Part 1, Division 2, Title 5 of the streets and Government Code of the state of California) and has levied special taxes upon lands within the Community Facilities District No. 995 Intention for said Resolution adopted described in of a improvements, (hereinafter "CFD"); and, WHEREAS, said proceedings provide for the issuance of bonds pursuant to the Mello Roos Community Facilities Act of 1982, and said bonds were previously issued; and, / / / 1 RES 93-215 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, at this time the Mayor and Common Council of the cit of San Bernardino is desirous to set forth all formal terms an conditions relating to the administration of said ADs and CFD an the appointment of a Trustee for the bondholders relative to th collection of delinquent assessments and taxes; and, WHEREAS, there has been presented for approval a lette agreement setting forth formal terms and conditions relating to th such administration services and appointment of a Trustee of th bondholders relative to the collection of delinquent assessment and taxes; NOW, THEREFORE, BE IT RESOLVED that the Mayor and Commo Council of the City of San Bernardino does hereby resolve as follows: section 1. That the above recitals are all true and correct. section 2. That the letter agreement is hereby approved substantially in the form presented herein, is to be dated the date hereof, and is subj ect to modifications as necessary and as approved by the Director of Finance. section 3. The authorization to execute the above referenced agreement is rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage of this resolution. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a reqular meeting thereof, held on the 6th day of Julv , 1993, by the following vote, to wit: / / / / / -2- RES 93":215 Resolution 'of the City of San Bernardino authorizing approval of a letter agreement with Muni Financial Services (MFS) for 1915 Act Assessment District and Community Facilities District Administration and appointment of a trustee for the bondholders relative to the collection of delinquent assessment taxes. 1 Councilmembers 2 NEGRETE 3 CURLIN 4 HERNANDEZ 5 OBERHELMAN 6 OFFICE VACANT 7 POPE-LUDLAM 8 MILLER 9 AYES NAYS ABSTAIN ABSENT x x x x x x ~ (! tu-i City Clerk 10 11 12 13 14 15 foregoing resolution is hereby approved this '-l\\t" day of , 1993. The July ------:-.~d ' / .' 1 /(A1;u:t'-- I ~ inciir, Mayor city of San Bernardino Approved as to form and legal content: 16 JAMES F. PENMAN city, torney A i-fe 17 18 By: 19 20 21 22 23 24 25 26 27 28 Res 93-215 IJMFS MUDi Financial Senices, Inc. CORPORATE OfFICE 2876'5 Single Oak Drive, Second Floor Tcmecula, CA 92590-3661 (<)09) 699-3990 FA,X (909) 699-}-i60 NORTHERN ilEGiON 3727 Buchanan, Suite 202 San Francisco, CA 94123-1779 (41 'j) 441-Yj'jO FAX (H 'j) ,HI-1401 April 19, 1993 Ms, Barbara Pachon Finance Director City of San Bernardino 300 North D Street San Bernardino, CA 92418 RE: AGREEMENT TO PROVIDE COMPREHENSIVE 1915 ACT ASSESSMENT AND COMMUNITY FACILITIES DISTRICT ADMINISTRA TION SERVICES Dear Ms. Pachon: Muni Financial Services, Inc, (MFS) is pleased to submit this Letter Agreement to provide comprehensive 1915 Act Assessment District and Community Facilities District Administration, Arbitrage Rebate consulting and related services to the City of San Bernardino (Agency), SCOPE OF SERVICES A. District Administration Services 1. MFS will prepare a comprehensive Annual Levy Report, This Report will identify all Agency administrative costs and fees recoverable through the annual levy. MFS will also review fund balances to identify any surplus amounts to be used as specified in the bond documents, 2. MFS will provide levy installment information for each parcel, formatted in the required configuration on 9-track magnetic tape or other media, to the County Auditor-Controller's Office for placement on the property tax roll. 3. MFS will research and, if possible, resubmit installment amounts that are rejected by the County Auditor-Controller's Office. Any installment that cannot be collected on the County property tax roll will be invoiced directly to the property owner of record on behalf of the Agenc~'. IIIil I.v:ldl'rs in Puhlic Fin:ltll'(' Adlllini,qr:l\ion @ RES 93-215 .MFS City of San Bernardino CFD and Assessment District Administration Agreement Page 2 4, MFS will provide a toll free number to field inquiries from Agency staff, property owners, and other interested parties regarding annual installments and related proceedings, 5, MFS will provide lien pre-payment quotes (if applicable) for all interested parties upon request. Fees for this service are paid by the requesting party, MFS will obtain recordation document numbers for prepaid liens and coordinate the Removal or Release of Lien, 6, MFS will perform all required bond call spreads and coordinate the early redemption of outstanding bonds, 7, MFS will monitor delinquent installment payments in January and May of each year and provide reports identifying all delinquent parcels and the corresponding delinquent installment amounts to the Agency, 8, MFS will provide an annual report (if applicable to the bond issue) to the California Debt Advisory Commission (CDAC) by October 30 of each year as required by the California Government Code, Section 53359,5 (b), 9, MFS will prepare disclosure forms as required by the California Government Code, Sections 53340,2 (b) and 53341.5, The following services are available to compliment the administration consulting services described above and may be provided at the discretion of the Finance Director, B. Delinquency and Judicial Foreclosure Services 1. MFS will monitor outstanding delinquencies and submit periodic reports to the Agency, Reports will include aging and status of all delinquent installments, including parcels undergoing judicial foreclosure or other proceedings. 2, MFS will send one reminder letter to each delinquent property owner in an attempt to cure the delinquency, If the delinquency has not been cured within 30 days of receipt of the initial notice, MFS will accept appointment as trustee for the bondholders pursuant to California Government Code, Section 53356,1 and California Streets and Highways Code, Section 8830. 3, MFS will effect the removal of the delinquent installment(s) from the tax roll and send a final letter to the property owner demanding immediate payment. RES 93-215 MFS City of San Bernardino CFD and Assessment District Administration Agreement Page 3 4, MFS will attempt to negotiate an acceptable repayment schedule to cure the delinquency and avoid initiation of judicial foreclosure. MFS will not retain any payment received from a delinquent property holder, but will transfer all such proceeds directly to the Agency, 5. MFS will retain legal counsel and initiate judicial foreclosure for all assigned delinquencies as Trustee for the bond holders in accordance with bond covenants, C. Assessment Apportionment Services 1, MFS will assist the Agency in the establishment of a system to identify all required assessment apportionments in accordance with Division 10, Part 10 and 10,5 of the California Streets and Highways Code, and the Subdivision Map Act, Section 66493 (d), 2, MFS will provide the Agency with appropriate assessment apportionment application forms, 3. MFS will prepare an Amended Assessment Report for the Agency. This Report will re-spread the assessment to the new parcels and include an Amended Assessment Diagram with the Notice of Amended Assessment. 4, MFS will prepare the Letter and Notice to Bondholder required by the California Streets and Highways Code, 5, MFS will be available to represent the Agency to affected property owners. D. Arbitrage Rebate Calculations 1. MFS will prepare a comprehensive Arbitrage Rebate Calculation Report containing all pertainent and required reporting information, MFS will be available to present the findings and recommendations of the Report and to review our methodology with Agency staff as needed, 2. MFS is able to provide a legal opinion from the law firm of O'Melveny & Myers for an estimated fee of $500, This opinion may be relied upon in the same manner as an opinion of bond counsel and provides an additional protection for the representations of the issuer pertaining to arbitrage. RES 93-215 MFS City of San Bernardino CFD and Assessment District Administration Agreement Page 4 3, In the event of an audit, a member of our staff will be available for interpretation of the rebate liability computations. We will provide all documents and supporting materials which were used to prepare the computations. Our fees for this service would be charged at the then current hourly rate, CHARGES FOR SERVICES The current number of parcels and districts shown below are covered under this contract. If the actual number varies substantially it may cause a change in our fee structure, All hourly rates, fees and expense rates are subject to increase, not-to- exceed the Consumer Price Index within the applicable area. A. District Administration Services Annual Base Administration Fee for combined Districts: Annual Per Parcel Fee for 1915 Act Assessment Districts: $26,300,00 15,00 Districts Parcels AnnuarSase Fee AD. 5861 3 $2,500 AD,961R 71 2,500 AD,977A 277 2,500 A,D, 977B 185 2,500 AD. 985 16 2,500 AD. 987 652 2,500 A.D. 1003 101 2,500 CFD No, 995 298 8,800 'RES 93-215 MFS City of San Bernardino CFD and Assessment District Administration Agreement Page 5 The following services are available to compliment the administration consulting services described above and may be provided at the discretion of the Finance Director. B. Delinquency and Judicial Foreclosure Services (Paid by delinquent property owner) Delinquency Reminder Letter Delinquency Demand Letter Effect Removal from Tax Roll All Subsequent Foreclosure Services $30,00 50,00 70,00 Hourly Rate C. Assessment Apportionment Services (Paid for by property owner) Apportionment and Amended Assessment Diagram: Parcel Map (4 parcels or less)* Tract I Subdivision Map (5 parcels or more)* $950 $1,950 + $25 per parcel 'per Chapter 2, Section 66426 of the Subdivision Map Act D. Arbitrage Rebate Calculations Initial Report Per Bond Issue: Updates Per Bond Issue (less than 6 issues): Updates Per Bond Issue (6 issues or more): $2,000 1,500 1,250 Additional fees may be charged for identification and separation of commingled funds, allocation of investment earnings, analysis of transferred proceeds associated with advanced refundings, and recalculation of bond yield as required for variable rate issues, These services will be provided at our then current hourly consulting rates. RES 93-215 MFS City of San Bernardino CFD and Assessment District Administration Agreement Page 6 E. Additional Services Additional services may be authorized by the Agency and will be billed at our then current hourly consulting rates. Our current hourly rates are listed below. Directors / Attorneys Senior Associates Associates / Paralegals Support Staff $150,00 95.00 65.00 35.00 TERM OF AGREEMENT The term of this Agreement is continuous, not to exceed thirty (30) years, or until the districts are dissolved pursuant to the California Government Code and Section 8650,1 of the California Streets and Highways Code, This service may be abandoned at any time by the City of San Bernardino, Muni Financial Services, Inc, may cancel its obligation under this Agreement by providing thirty days (30) notice in writing to the Agency, AUTHORIZATION By executing this Agreement, the City of San Bernardino authorizes the appointment of MFS as the trustee for the bondholders with full standing to commence all judicial foreclosure proceedings contemplated by this Agreement pursuant to the California Government Code, Section 53356,1 and the California Streets and Highways Code, Section 8834, MFS will, as instructed by the Agency, proceed to use its best efforts to collect all current and future delinquent assessment installments as provided in the preceding scope of services. PAYMENT MFS services for assessment district administration will be invoiced monthly in twelve equal installments, This payment schedule will become effective July 1, 1993, Payment for Assessment Apportionment Services, Arbitrage Rebate Calculations and any other special projects will be invoiced monthly as they occur. RES 93-215 MFS City of San Bernardino CFD and Assessment District Administration Agreement Page 7 Attorney fees resulting from foreclosure action shall be reimbursed as a cost item and shall be due and payable upon the earlier occurrence of (a) entry of judgment in the action, (b) settlement of the action, or (c) redemption of the delinquency, MFS will be reimbursed for customary out-of-pocket expenses. These expenses would apply to, but are not limited to: Assessor parcel maps and data, postage, travel expenses, meals, telephone expenses, county and legal fees and costs, Any out-of- pocket expenses will be itemized on monthly invoices. Payment for services rendered, expenses and costs pursuant to this Agreement shall be made within thirty (30) days of the submittal of an MFS invoice, AMENDMENT OF SCOPE This Agreement may be amended from time-to-time by the Finance Director, or designee, as may be required or advisable due to changes in Federal or State Law, or to provide these same services to additional assessment districts, All other amendments must be in writing and approved by MFS and the legislative body of the City of San Bernardino, ABANDONMENT AND ARBITRATION In the event that this project is abandoned prior to its completion, the Agency will pay MFS a fee equal to the reasonable value of services provided, Reasonable value shall be determined based on our then current hourly consulting rates, In the event of litigation or arbitration between the parties over the terms or performance of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees and costs. ACCEPTED BY: M~I~A~RVICES, INC. '- '- CITY OF SAN BERNARDINO Harry Clark Managing Director -7~ }1~ / Name Mayor, City of San Bernardino Title Approved as to form and legal content: JAMES F. PENMAN Ci ty Attorney July 8, 1993 Date By:~l /1 lle~