HomeMy WebLinkAboutItem No. 05 - Award of PSA for District Formation, Annexation and Consulting Services to Spicer Consulting Group of Temecula, CA
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: April 1, 2020
To: Honorable Mayor and City Council Members
From: Teri Ledoux, City Manager
By:Kris Jensen, Director of Public Works
Subject: Award of Professional Services Agreement for District
Formation, Annexation and Consulting Services
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino,
California adopt Resolution No. 2020-55, approving the award of a Professional
Services Agreement (“Agreement”) with Spicer Consulting Group of Temecula,
California for a three year term through June 30, 2023, and in a total Agreement amount
not to exceed $316,018; authorizing the City Manager to execute all documents in
support of the Agreement; and authorizing the Director of Finance to issue a purchase
order in an amount of $96,000 for Fiscal Year 2019/20.
Background
The Public Works Department is responsible for the landscape and infrastructure
maintenance in public right-of-way throughout the City. Ongoing financial support of
these right-of-way activities is supported, in large part, by annual assessments levied
through landscape maintenance assessment districts (LMDs) and community facility
districts (CFDs) on the various properties that receive special and general benefit from
the existence of the right-of-way assets. Establishment of LMDs and CFDs is a complex
process that requires a thorough evaluation of right -of-way improvements installed,
evaluation of costs for ongoing maintenance of those improvements and preparing
engineering reports specific to each district formed. A public hearing process compliant
with Proposition 218 is required for any district formation, annexation and annual
assessment activities.
The City currently contracts with Spicer Consulting Group (SCG) to provide district
formation, annexation, and annual assessment preparation. SCG also provides ongoing
support to City staff for administration of the districts. The current contract with SCG
expired on July 31, 2019. Due to high staff turnover, no extension of the agreement was
ever formally executed. SCG has been performing services in good faith on a month -to-
month basis since that time.
Discussion
On November 14, 2018, the City entered into a Con sulting Services Agreement
("Original Agreement") with Spicer Consulting Group (SCG) to provide assistance with
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the administration, formation and annexations of special financing districts throughout
the City. The Original Agreement term was through July 3 1, 2019, and allowed for two
(2) one-year extensions. The Original Agreement was authorized in a total contract not -
to-exceed amount of $49,500.
On January 16, 2019, the Mayor and City Council adopted Resolution 2019 -9,
authorizing the First Amendment to the Consulting Services Agreement ("First
Amendment") to increase the not-to-exceed amount of the agreement to $145,500.
This increase was requested to support the costs of SCG services to be provided in
auditing the City's maintenance assessment district s and establishing a comprehensive
database of parcel information for each of the 69 districts, as well as, to support ongoing
administration of the various districts for the City. The First Amendment did not extend
the term of the Original Agreement.
In an effort to reestablish a current agreement with SCG, staff is recommending that the
Mayor and City Council approve a new three-year agreement effective retroactively to
July 1, 2019. Establishing the effective date as July 1, 2019, will ensure that the costs of
services provided through agreement remain consistent with the amounts levied
through the LMD annual assessments in the current fiscal year. It will also ensure that
the end of the agreement term coincides with the end of a Fiscal Year 2021/2022.
As the city wishes to continue its relationship with the Spicer Consulting Group (SCG)
for CFD consulting and administration services with a new three -year agreement, staff
will utilize San Bernardino Municipal Code section 3.04.010(B)2, which allows the City
to award a contract to a vendor based on another agency’s formal purchasing process.
In this case, the City of San Bernardino will use the City of Chula Vista’s formal
competitive bidding process and contract award to Spicer Consulting Group for Special
District Consulting Services.
The new Consulting Services Agreement with SCG is proposed for a three year term,
with the option of two (2) one-year extensions. The agreement will maintain the existing
service fees in FY2019/20. Years two and three incorporate a two percent increase for
services, and include annual administration of CFDs. Proposed annual administration
costs are summarized below.
It is important to note that annual administration fees for the CFDs listed above were not
incurred in FY2019-20 as the CFDs were not levied. These fees will be charged in
upcoming fiscal year work. The full not-to-exceed amount of the proposed three -year
agreement period is $316,018.
SCG has also provided a separate fee schedule for future LMD and/or CFD
formation/annexation services. These services are only performed when authorized by
the City for developments conditioned to form or annex into a special district. Costs
associated with these services are supported through developer or applicant deposits.
Separate purchase orders are established for these services and fall within the
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established approval authorization of the City Manager.
District formation and administration services are critical to maintaining financial stability
to support the proper maintenance of City right-of-way landscape and infrastructure.
The complex process of developing and auditing these numerous districts requires
more resources than are available at current staffing levels. Approval of this item would
allow the City to ensure that districts are properly formed, audited and levied.
2020-2025 Strategic Targets and Goals
Approval of an Agreement with SCG aligns with Key Target No. 1a: Financial Stability -
Secure a long-term revenue source. SCG’s services assist the City to ensure that
special districts are formed, levied, and managed properly so that the ongoing costs of
district maintenance are supported well into the future.
Fiscal Impact
No General Fund appropriation is required for support of this agreement. Fund ing for
the consultant annual administration services is recovered through district through
administrative costs assessed to each district during the annual levy process. Fees for
all SCG administration services were included in the FY2019/20 district lev ies in Fund
254. Future fiscal year charges for administration services provided by SCG will be
incorporated into the respective fiscal budget year levies. Annexation/formation fees
proposed by SCG will be supported directly through developer or applicant deposits.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California adopt Resolution No. 2020-55, approving the award of a Professional
Services Agreement(“Agreement”) with Spicer Consulting Group of Temecula,
California for a three year term through June 30, 2023, and in a total Agreement amount
not to exceed $316,018; authorizing the City Manager to execute all documents in
support of the Agreement; and authorizing the Director of Finance to issue a purchase
order in an amount of $96,000 for Fiscal Year 2019/20.
Attachments
Attachment 1 Resolution 2020-55; Exhibit A- Professional Services Agreement
between the City of San Bernardino and Spicer Consulting Group;
Exhibit A to PSA - Spicer Consulting Group - Proposal
Ward: All
Synopsis of Previous Council Actions:
January 16, 2019 Mayor and City Council adopted Resolution 2019-9, authorizing the
First Amendment to the Consulting Services Agreement.
Resolution No. 2020-55
RESOLUTION NO. 2020-55
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
APPROVING THE AWARD OF A PROFESSIONAL
SERVICES AGREEMENT (“AGREEMENT”) WITH
SPICER CONSULTING GROUP OF TEMECULA,
CALIFORNIA FOR A THREE YEAR TERM THROUGH
JUNE 30, 2023, AND IN A TOTAL AGREEMENT AMOUNT
NOT TO EXCEED $316,018; AUTHORIZING THE CITY
MANAGER TO EXECUTE ALL DOCUMENTS IN
SUPPORT OF THE AGREEMENT; AND AUTHORIZING
THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE
ORDER IN AN AMOUNT OF $96,000 FOR FISCAL YEAR
2019/20
WHEREAS, On November 14, 2018, the City entered into a Consulting Services
Agreement ("Original Agreement") with Spicer Consulting Group (SCG) to provide assistance
with the administration, formation and annexations of special financing districts throughout the
City. and
WHEREAS, On January 16, 2019, the Mayor and City Council adopted Resolution
2019-9, authorizing the First Amendment to the Consulting Services Agreement ("First
Amendment") to increase the not-to-exceed compensation amount of the Original Agreement but
did not extend the term of the agreement; and
WHEREAS, The Original Agreement expired as of July 31, 2019, and SCG has
continued to provide services on a month-to-month basis; and
WHEREAS, The City wishes to continue its relationship with the Spicer Consulting
Group (SCG) for special district consulting and administration services by entering into a three-
year Professional Services Agreement (Exhibit “A”) effective retroactively to July 1, 2019 in an
amount not to exceed $316,018; and
WHERAS, San Bernardino Municipal Code section 3.04.010(B)2 allows the City to
award a contract to a vendor based on another agency’s formal purchasing process; and
WHEREAS, the City of San Bernardino will use the City of Chula Vista’s formal
competitive bidding process and contract award to Spicer Consulting Group for Special District
Consulting Services.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
Resolution No. 2020-55
SECTION 2. The City Manager is hereby authorized and directed to execute a
Professional Services Agreement (“Agreement”) effective retroactively to July 1, 2019 and in an
amount not-to-exceed $316,018 for a three-year term, attached hereto and incorporated as
Exhibit “A”.
SECTION 3. The Director of Finance or his designee is hereby authorized and directed
to issue a Purchase Order to Spicer Consulting Group in support of the Agreement.
SECTION 4. That the City Council finds this Resolution is not subject to the California
Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA
applies only to projects which have the potential for causing a significant effect on the
environment. Where it can be seen with certainty, as in this case, that there is no possibility that
the activity in question may have a significant effect on the environment, the activity is not
subject to CEQA.
SECTION 5. Severability. If any provision of this Resolution or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 6. Effective Date. This Resolution shall become effective immediately.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested
by the Acting City Clerk this ___ day of __________ 2020.
John Valdivia, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, Acting City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
Resolution No. 2020-55
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true
copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______
2020 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of
____________ 2020.
Genoveva Rocha, CMC, Acting City Clerk
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PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO
AND SPICER CONSULTING GROUP .
This Agreement is made and entered into as of July 1,2019, by and between the City of San
Bernardino, a charter city and municipal corporation organized and operating under the laws of
the State of California with its principal place of business at Vanir Tower, 290 North D Street,
San Bernardino, CA 92401 (“City”), and Spicer Consulting Group, a California Sole
Proprietorship, with its principal place of business at 41619 Margarita Road, Suite 101,
Temecula, California 92591 (hereinafter referred to as “Consultant”). City and Consultant are
hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.”
RECITALS
A. City is a public agency of the State of California and is in need of professional
services for the following project:
Special Districts Services (hereinafter referred to as “the Project”).
B. Consultant is duly licensed and has the necessary qualifications to provide such
services.
C. The Parties desire by this Agreement to establish the terms for City to retain
Consultant to provide the services described herein.
AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. Incorporation of Recitals. The recitals above are true and correct and are hereby
incorporated herein by this reference.
2. Services. Consultant shall provide the City with the services described in the
Scope of Services attached hereto as Exhibit “A.”
3. Professional Practices. All professional services to be provided by Consultant
pursuant to this Agreement shall be provided by personnel identified in their proposal.
Consultant warrants that Consultant is familiar with all laws that may affect its perfo rmance of
this Agreement and shall advise City of any changes in any laws that may affect Consultant’s
performance of this Agreement. Consultant further represents that no City employee will
provide any services under this Agreement.
4. Compensation.
a. Subject to paragraph 4(b) below, the City shall pay for such services in
accordance with the Schedule of Charges set forth in Exhibit “A.”
b. In no event shall the total amount paid for services rendered by Consultant
under this Agreement exceed the sum of $316,018. This amount is to cover all related costs, and
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the City will not pay any additional fees for printing expenses. Consultant may submit invoices
to City for approval. Said invoice shall be based on the total of all Consultant’s services which
have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty-
five (45) days from the date City receives said invoice. The invoice shall describe in detail the
services performed and the associated time for completion. Any additional services approved
and performed pursuant to this Agreement shall be designated as “Additional Services” and shall
identify the number of the authorized change order, where applicable, on all invoices.
5. Additional Work. If changes in the work seem merited by Consultant or the City,
and informal consultations with the other party indicate that a change is warranted, it shall be
processed in the following manner: a letter outlining the changes shall be forwarded to the Cit y
by Consultant with a statement of estimated changes in fee or time schedule. An amendment to
this Agreement shall be prepared by the City and executed by both Parties before performance of
such services, or the City will not be required to pay for the c hanges in the scope of work. Such
amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
6. Term. This Agreement shall be effective beginning July 1, 2019, and continue for
a period of thirty-six (36) months, through June 30, 2022, and through the completion of services
as set forth in Exhibit “A,” unless the Agreement is previously terminated as provided for herein
(“Term”). City may, in its sole discretion, extend this Agreement for two (2) additional twelve
(12) month periods for the total potential extension period of twenty-four (24) months.
7. Maintenance of Records; Audits.
a. Records of Consultant’s services relating to this Agreement shall be
maintained in accordance with generally recognized accounting princ iples and shall be made
available to City for inspection and/or audit at mutually convenient times for a period of four (4)
years from the Effective Date.
b. Books, documents, papers, accounting records, and other evidence
pertaining to costs incurred shall be maintained by Consultant and made available at all
reasonable times during the contract period and for four (4) years from the date of final payment
under the contract for inspection by City.
8. Time of Performance. Consultant shall perform its services in a prompt and
timely manner and shall commence performance upon receipt of written notice from the City to
proceed. Consultant shall complete the services required hereunder within Term.
9. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this
Agreement for delays in performance caused by circumstances beyond the reasonable control of
the non-performing Party. For purposes of this Agreement, such circumstances include but are
not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and
other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances;
sabotage or judicial restraint.
b. Should such circumstances occur, the non-performing Party shall, within a
reasonable time of being prevented from performing, gi ve written notice to the other Party
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describing the circumstances preventing continued performance and the efforts being made to
resume performance of this Agreement.
10. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and
regulations of the federal, state and local government, including Cal/OSHA requirements.
b. If required, Consultant shall assist the City, as requested, in obtaining and
maintaining all permits required of Consultant by federal, state and local regulatory agencies.
c. If applicable, Consultant is responsible for all costs of clean up and/ or
removal of hazardous and toxic substances spilled as a result of his or her services or operations
performed under this Agreement.
11. Standard of Care. Consultant’s services will be performed in accordance with
generally accepted professional practices and principles and in a manner consistent with the level
of care and skill ordinarily exercised by members of the profession currently practicing under
similar conditions.
12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all
times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment
from or employment with any person or entity which will constitute a conflict of interest with the
City.
13. City Business Certificate. Consultant shall, prior to execution of this Agreement,
obtain and maintain during the term of this Agreement a valid business registration certificate
from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses,
permits, qualifications, insurance, and approvals of whatever nature that are legally required of
Consultant to practice his/her profession, skill, or business.
14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer
this Agreement or any rights under or interest in this Agreement without the written consent of
the City, which may be withheld for any reason. Any attempt to so assign or so transfer without
such consent shall be void and without legal effect and shall constitute grounds for termination.
Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in
this Agreement. Nothing contained herein shall prevent Consultant from e mploying independent
associates and subconsultants as Consultant may deem appropriate to assist in the performance
of services hereunder.
15. Independent Consultant. Consultant is retained as an independent contractor and
is not an employee of City. No employee or agent of Consultant shall become an employee of
City. The work to be performed shall be in accordance with the work described in this
Agreement, subject to such directions and amendments from City as herein provided.
16. Insurance. Consultant shall not commence work for the City until it has provided
evidence satisfactory to the City it has secured all insurance required under this section. In
addition, Consultant shall not allow any subcontractor to commence work on any subcontract
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until it has secured all insurance required under this section.
a. Additional Insured
The City of San Bernardino, its officials, officers, employees, agents, and
volunteers shall be named as additional insureds on Consultant’s and its subconsultants’ policies
of commercial general liability and automobile liability insurance using the endorsements and
forms specified herein or exact equivalents.
b. Commercial General Liability
(i) The Consultant shall take out and maintain, during the
performance of all work under this Agreement, in amounts not less than specified herein,
Commercial General Liability Insurance, in a form and with insurance companies acceptable to
the City.
(ii) Coverage for Commercial General Liability insurance shall be at
least as broad as the following:
Insurance Services Office Commercial General Liability coverage
(Occurrence Form CG 00 01) or exact equivalent.
(iii) Commercial General Liability Insurance must include coverage
for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion
deleted
(7) Contractual Liability with respect to this Contract
(8) Broad Form Property Damage
(9) Independent Consultants Coverage
(iv) The policy shall contain no endorsements or provisions limiting
coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one
insured against another; (3) products/completed operations liability; or (4) contain any other
exclusion contrary to the Agreement.
(v) The policy shall give City, its elected and appointed officials,
officers, employees, agents, and City-designated volunteers additional insured status using ISO
endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same
coverage.
(vi) The general liability program may utilize either deductibles or
provide coverage excess of a self-insured retention, subject to written approval by the City, and
provided that such deductibles shall not apply to the City as an additional insured.
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c. Automobile Liability
(i) At all times during the performance of the work under this
Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and
property damage including coverage for owned, non -owned and hired vehicles, in a form and
with insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as
broad as Insurance Services Office Form Number CA 00 01 covering automobile liability
(Coverage Symbol 1, any auto).
(iii) The policy shall give City, its elected and appointed officials,
officers, employees, agents and City designated volunteers additional insured status.
(iv) Subject to written approval by the City, the automobile liability
program may utilize deductibles, provided that such deduct ibles shall not apply to the City as an
additional insured, but not a self-insured retention.
d. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of
Section 3700 of the California Labor Code which requi res every employer to be insured against
liability for workers’ compensation or to undertake self -insurance in accordance with the
provisions of that code, and he/she will comply with such provisions before commencing work
under this Agreement.
(ii) To the extent Consultant has employees at any time during the
term of this Agreement, at all times during the performance of the work under this Agreement,
the Consultant shall maintain full compensation insurance for all persons employed directly by
him/her to carry out the work contemplated under this Agreement, all in accordance with the
“Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of
California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts
indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the
period required by this Agreement, workers’ compensation coverage of the same type and limits
as specified in this section.
e. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant
shall maintain professional liability or Errors and Omissions insurance appropriate to its
profession, in a form and with insurance companies acceptable to the Ci ty and in an amount
indicated herein. This insurance shall be endorsed to include contractual liability applicable to
this Agreement and shall be written on a policy form coverage specifically designed to protect
against acts, errors or omissions of the Consultant. “Covered Professional Services” as
designated in the policy must specifically include work performed under this Agreement. The
policy must “pay on behalf of” the insured and must include a provision establishing the insurer's
duty to defend.
f. Minimum Policy Limits Required
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(i) The following insurance limits are required for the Agreement:
Combined Single Limit
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate
for bodily injury, personal injury, and property
damage
Automobile Liability $1,000,000 per occurrence for bodily injury and
property damage
Employer’s Liability $1,000,000 per occurrence
Professional Liability $1,000,000 per claim and aggregate (errors and
omissions)
(ii) Defense costs shall be payable in addition to the limits.
(iii) Requirements of specific coverage or limits contained in this
section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of
any coverage normally provided by any insurance. Any available coverage shall be provided to
the parties required to be named as Additional Insured pursuant to this Agreement.
g. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City
evidence of insurance from an insurer or insurers certifying to the coverage of all insurance
required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s
equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25 -
S or equivalent), together with required endorsements. All evidence of insurance shall be
signed by a properly authorized officer, agent, or qualified representative of the insurer and
shall certify the names of the insured, any additional insureds, where appro priate, the type and
amount of the insurance, the location and operations to which the insurance applies, and the
expiration date of such insurance.
h. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior
written notice of cancellation of any policy required by this Agreement, except that the
Consultant shall provide at least ten (10) days prior written notice of cancellation of any such
policy due to non-payment of the premium. If any of the required coverage is cancelled or
expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s)
including the General Liability Additional Insured Endorsement to the City at least ten (10)
days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy
shall each contain a provision stating that Consultant’s policy is primary insurance and that any
insurance, self-insurance or other coverage maintained by the City or any named insureds shall
not be called upon to contribute to any loss.
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(iii) The retroactive date (if any) of each policy is to be no later than the
effective date of this Agreement. Consultant shall maintain such coverage continuously for a
period of at least three years after the completion of the work under this Agreement. Consultant
shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced
past the effective date of this Agreement; B) if the policy is cancelled or not renew ed; or C) if
the policy is replaced by another claims-made policy with a retroactive date subsequent to the
effective date of this Agreement.
(iv) All required insurance coverages, except for the professional
liability coverage, shall contain or be endorse d to provide waiver of subrogation in favor of the
City, its officials, officers, employees, agents, 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 sub-consultants.
(v) The limits set forth herein shall apply separately t o each insured
against whom claims are made or suits are brought, except with respect to the limits of liability.
Further the limits set forth herein shall not be construed to relieve the Consultant from liability
in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the
City and shall not preclude the City from taking such other actions available to the City under
other provisions of the Agreement or law.
i. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance
companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies
with a current A.M. Best's rating of no less than A:VII and admitted to transact in the
business of insurance in the State of California, or otherwise allowed to place insurance
through surplus line brokers under applicable provisions of the California Insurance Code
or any federal law.
j. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance
coverage to be maintained by Consultant, and any approval of said insurance by the City, is not
intended to and shall not in any manner limit or qualify the liabilities and obligations otherwis e
assumed by the Consultant pursuant to this Agreement, including, but not limited to, the
provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of
insurance required under this Agreement does not comply wi th 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 p remium from Consultant payments. In the alternative,
City may cancel this Agreement.
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(iii) The City may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(iv) Neither the City nor the City Council, nor any member of the City
Council, nor any of the officials, officers, employees, agents or volunteers shall be personally
responsible for any liability arising under or by virtue of this Agreement.
k. Sub-consultant Insurance Requirements. Consultant shall not allow any
subcontractors or sub-consultants to commence work on any subcontract until they have
provided evidence satisfactory to the City that they have secured all insurance required under
this section. Policies of commercial genera l liability insurance provided by such subcontractors
or sub-consultants shall be endorsed to name the City as an additional insured using ISO form
CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by
Consultant, City may approve different scopes or minimum limits of insurance for particular
subcontractors or sub-consultants.
17. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with
counsel reasonably approved by the City), indemnify an d hold the City, its elected and appointed
officials, officers, employees, agents, and authorized volunteers free and harmless from any and
all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability,
judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to
property or persons, including wrongful death, (collective ly, “Claims”) in any manner arising out
of, pertaining to, or incident to any alleged acts, errors or omissions, or will ful misconduct of
Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection
with the performance of the Consultant’s services, the Project , or this Agreement, including
without limitation the payment of all consequ ential damages, expert witness fees and attorneys’
fees and other related costs and expenses. Notwithstanding the foregoing, to the extent
Consultant’s services are subject to Civil Code Section 2782.8, the above indemnity shall be
limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain
to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any,
received by the City, the City Council, members of the City Council, its employees, or
authorized volunteers.
b. Additional Indemnity Obligations. Consultant shall defend, with counsel
of City’s choosing and at Consultant’s own cost, expense and risk, any and all Claims covered by
this section that may be brought or instituted against the City, its elected and appointed officials,
employees, agents, or authorized volunteers. Consultant shall pay and satisfy any judgment,
award or decree that may be rendered against the City, its elected and appointed officials,
employees, agents, or authorized volunteers as part of any such claim, suit, action or other
proceeding. Consultant shall also reimburse City for the cost of any settlement paid by the City,
its elected and appointed officials, employees, agents, or authorized volunteers as part of any
such claim, suit, action or other proceeding. Such reimbursement shall include payment for the
City’s attorney's fees and costs, including expert witness fees. Consultant shall reimburse the
City, its elected and appointed officials, employees, agents, or authorized volunteers, for any and
all legal expenses and costs incurred by each of them in connection therewith or in enforcing the
indemnity herein provided. Consultant’s obligation to indemnify shall not be restricted to
9
insurance proceeds, if any, received by the City, its elected and appointed officials, employees,
agents, or authorized volunteers.
18. California Labor Code Requirements. Consultant is aware of the requirements of
California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of
Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the
payment of prevailing wage rates and the performance of other requirements on certain “public
works” and “maintenance” projects. If the Services are being performed as part of an applicable
“public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant
agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend,
indemnify and hold the City, its elected officials, officers, employees and ag ents free and
harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or
alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the
Consultant and all sub-consultants to comply with all California Labor Code provisions, which
include but are not limited to prevailing wages, employment of apprentices, hours of labor and
debarment of contractors and subcontractors.
If the Services are being performed as part of an applicable “public works” or
“maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant
and all sub-consultants performing such Services must be registered with the Department of
Industrial Relations. Consultant shall maintain registration for th e duration of the Project and
require the same of any sub-consultants, as applicable. This Project may also be subject to
compliance monitoring and enforcement by the Department of Industrial Relations. It shall be
Consultant’s sole responsibility to com ply with all applicable registration and labor compliance
requirements.
19. Verification of Employment Eligibility. By executing this Agreement, Consultant
verifies that it fully complies with all requirements and restrictions of state and federal law
respecting the employment of undocumented aliens, including, but not limited to, the
Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall
require all sub-consultants and sub-sub-consultants to comply with the same.
20. Laws and Venue. This Agreement shall be interpreted in accordance with the
laws of the State of California. If any action is brought to interpret or enforce any term of this
Agreement, the action shall be brought in a state or federal court situated in th e County of San
Bernardino, State of California.
21. Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work
under this Agreement by giving ten (10) calendar days’ written notice to Consultant. In such
event, City shall be immediately given title and possession to all original field notes, drawings
and specifications, written reports and other documents produced or developed for that portion of
the work completed and/or being abandoned. City shall pay Consultant the reasonable value of
services rendered for any portion of the work completed prior to termination. If said termination
occurs prior to completion of any task for the Project for which a payment request has not been
received, the charge for services performed during such task shall be the reasonable value of
such services, based on an amount mutually agreed to by City and Consultant of the portion of
such task completed but not paid prior to said terminat ion. City shall not be liable for any costs
10
other than the charges or portions thereof which are specified herein. Consultant shall not be
entitled to payment for unperformed services, and shall not be entitled to damages or
compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under
this Agreement upon thirty (30) calendar days’ written notice to City only in the event of
substantial failure by City to perform in accordance with the terms of this Agr eement through no
fault of Consultant.
22. Attorneys’ Fees. In the event that litigation is brought by any Party in connection
with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all
costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the
exercise of any of its rights or remedies hereunder or the enforcement of any of the terms,
conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Offi ce in
enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the
purposes of this Agreement.
23. Responsibility for Errors. Consultant shall be responsible for its work and results
under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation
as may be required by the City’s representative, regarding any services rendered under this
Agreement at no additional cost to City. In the event that an error or omission attribut able to
Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other
services necessary to rectify and correct the matter to the sole satisfaction of the City and to
participate in any meeting required with regard to t he correction.
24. Prohibited Employment. Consultant shall not employ any current employee of
City to perform the work under this Agreement while this Agreement is in effect.
25. Costs. Each Party shall bear its own costs and fees incurred in the prep aration and
negotiation of this Agreement and in the performance of its obligations hereunder except as
expressly provided herein.
26. Documents. Except as otherwise provided in “Termination or Abandonment,”
above, all original field notes, written reports, Drawings and Specifications and other documents,
produced or developed for the Project shall, upon payment in full for the services described in
this Agreement, be furnished to and become the property of the City.
27. Organization. Consultant shall assign Shane Spicer as Project Manager. The
Project Manager shall not be removed from the Project or reassigned without the prior written
consent of the City.
28. Limitation of Agreement. This Agreement is limited to and includes only the
work included in the Project described above.
29. Notice. Any notice or instrument required to be given or delivered by this
Agreement may be given or delivered by depositing the same in any United States Post Office,
certified mail, return receipt requested, postage prep aid, addressed to the following addresses and
shall be effective upon receipt thereof:
11
CITY:
City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: Kristen Jensen
Director Public Works
With Copy To:
City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Attorney
CONSULTANT:
Shane Spicer
Managing Director
41619 Margarita Road, Suite 101
Temecula, California 92591
30. Third Party Rights. Nothing in this Agreement shall be construed to give any
rights or benefits to anyone other than the City and the Consultant.
31. Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and that it shall not discriminate against any employee or applicant for
employment because of race, religion, color, national origin, ancestry, sex, age or other interests
protected by the State or Federal Constitutions. Such non -discrimination shall include, but not
be limited to, all activities related to init ial employment, upgrading, demotion, transfer,
recruitment or recruitment advertising, layoff or termination.
32. Entire Agreement. This Agreement, including Exhibit “A,” represents the entire
understanding of City and Consultant as to those matters conta ined herein, and supersedes and
cancels any prior or contemporaneous oral or written understanding, promises or representations
with respect to those matters covered hereunder. Each Party acknowledges that no
representations, inducements, promises, or agreements have been made by any person which are
not incorporated herein, and that any other agreements shall be void. This is an integrated
Agreement.
33. Severability. If any provision of this Agreement is determined by a court of
competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination
shall not affect the validity or enforceability of the remaining terms and provisions hereof or of
the offending provision in any other circumstance, and the remaining provisions o f this
Agreement shall remain in full force and effect.
34. Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the successors in interest, executors, admi nistrators and assigns of each Party to
this Agreement. However, Consultant shall not assign or transfer by operation of law or
otherwise any or all of its rights, burdens, duties or obligations without the prior written consent
of City. Any attempted assignment without such consent shall be invalid and void.
35. Non-Waiver. The delay or failure of either Party at any time to require
performance or compliance by the other Party of any of its obligations or agreements shall in no
way be deemed a waiver of those rights to require such performance or compliance. No waiver
of any provision of this Agreement shall be effective unless in writing and signed by a duly
12
authorized representative of the Party against whom enforcement of a waiver is sought. The
waiver of any right or remedy with respect to any occurrenc e or event shall not be deemed a
waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver
constitute a continuing waiver.
36. Time of Essence. Time is of the essence for each and every provision of this
Agreement.
37. Headings. Paragraphs and subparagraph headings contained in this Agreement
are included solely for convenience and are not intended to modify, explain, or to be a full or
accurate description of the content thereof and shall not in any way affect th e meaning or
interpretation of this Agreement.
38. Amendments. Only a writing executed by all of the Parties hereto or their
respective successors and assigns may amend this Agreement.
39. City’s Right to Employ Other Consultants. City reserves its right to employ other
consultants, including engineers, in connection with this Project or other projects.
40. Prohibited Interests. Consultant maintains and warrants that it has neither
employed nor retained any company or person, other than a bona fide employee working solely
for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. For breach or
violation of this warranty, City shall h ave the right to rescind this Agreement without liability.
For the term of this Agreement, no official, officer or employee of City, during the term of his or
her service with City, shall have any direct interest in this Agreement, or obtain any present o r
anticipated material benefit arising therefrom.
41. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original. All counterparts shall be construed together and shall
constitute one single Agreement.
42. Authority. The persons executing this Agreement on behalf of the Parties hereto
warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that
by doing so, the Parties hereto are formally bound to the provisio ns of this Agreement.
[SIGNATURES ON FOLLOWING PAGE]
13
SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO
AND SPICER CONSULTING GROUP
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
written above.
CITY OF SAN BERNARDINO
Approved By:
Teri Ledoux
City Manager
Approved as to Form:
Sonia Carvalho
City Attorney
Attested By:
Genoveva Rocha, CMC, Acting City Clerk
CONSULTANT
Signature
Shane Spicer .
Name
Managing Director – Spicer Consulting
Title
14
EXHIBIT A
Via Electronic Mail
February 19, 2020
Ms. Kristen Jensen
Public Works Director
City of San Bernardino
201 North E Street, Suite 200
San Bernardino, CA 92401
RE: Special Districts Services
Dear Ms. Jensen:
Thank you for considering Spicer Consulting Group (SCG) to serve the City of San Bernardino for administration
services of the 69 Maintenance Assessment Districts (MAD), two Community Facilities Districts (CFDs) – Services,
and one Community Facilities District – Bonded (collectively, Districts). SCG is pleased to submit this proposal for
Special Districts Services.
The project team at SCG possesses a tremendous amount of experience in administering these types of special
financing districts for cities. Shane Spicer will act as Project Manager for the City special district administration support.
I will be the City’s day-to-day contact and will be responsible for the accurate and timely delivery of work product,
attendance, and participation at team meetings. I will work with the City public works department team and staff in
providing the support for the much-needed revenues these types of district provide for services and facilities.
Our proposed Scope of Services for Special Districts Services are as follows:
ADMINISTRATION SERVICES
MAINTENANCE ASSESSMENT DISTRICTS
Kickoff Meeting-Communications: The purpose of this task is to coordinate with the City to gain understanding of the
specific goals, components and criteria to meet the City’s needs. To that end, SCG will meet with the City staff to
confirm the schedule of events for the City’s MADs including; administration expenses, reserve funds, identifying
eligible annexations (if necessary), and discuss and identify the boundaries. SCG will collect and review data germane
to the MADs.
Annual Levy Timeline: SCG will coordinate with City staff to develop timelines, including key dates and timeframes
for pertinent tasks throughout the year for the annual administration services.
Apportion Special Assessments and Database Maintenance: SCG will maintain a comprehensive database of City of
San Bernardino parcel information for the MADs in a form such that the annual levy submission to San Bernardino
County follows the guidelines as outlined in the County’s fixed charge submission packet. SCG will maintain all data
related to individual parcels including special assessment information, principal assessments, acreage, land use codes,
zones, dwelling units, EDU values, property owner information, including situs address and tract number.
Building Permits and Final Maps: SCG will obtain and review all building permits provided by the City, final maps
and site development plans for all MADs.
Ms. Kristen Jensen
City of San Bernardino
Page 2
Assessor Parcels Maps: We obtain the latest assessor’s parcel maps and equalized tax roll information from the
San Bernardino County Assessor’s Office for the parcels within the MADs. SCG will load this information to aid in
identifying parcel changes allowing for timely calculation for the initial levy submittal, and not relying on rejected
submittals from the County to identify these changes.
Data Collection: SCG will utilize their vast understanding of all key documents and research data required for the
successful comprehensive annual administration of the City’s MADs and will ensure that all information required
from the MAD will be requested with ample time that all deadlines are maintained.
Data Analysis and Billing Category Updates: SCG will analyze all data and documentation provided to ensure all
necessary information has been requested and collected. Changes in building category from undeveloped to
developed will be input.
Parcel Information Updates: SCG will provide the City of San Bernardino with annual updates of any assessor’s
parcel changes recognized within each MAD.
Reserve and Budget Review: SCG will review the reserve balances for each of the City’s MADs. SCG will coordinate
with City staff to ensure adequate levels are maintained through accurate cost-recovery accounting. SCG will assist
City staff in preparation and review of the annual MAD budgets. SCG will also determine whether all other fund
balances are properly identified and maintained.
Administrative Expenses: SCG will determine, with the City’s approval, the amount needed to meet the anticipated
administrative expenses for each MAD for the current Fiscal Year and prepare a summary of administrative costs.
Recommend Benefit Assessments: SCG will prepare spreads based on benefit assessments for each MAD by District
or Zone. A more specific analysis will be required to meet the requirement of Proposition 218 including additional
noticing requirement to newly assessed public properties deemed to benefit from the public improvements.
Levy Analysis: SCG will review the estimated levy and the maintenance costs and recommend any necessary changes
or adjustment to the annual levy to ensure that he financial needs of each MAD are met. SCG will work with City staff
to prepare a five-year plan or forecast for each MAD and make any recommendations regarding necessary adjustment
to be made to the annual levy or methodology.
Create Tax Roll Application: SCG will prepare the annual application for the tax rolls in an acceptable format acceptable
to the Auditor/Controller-Recorder, including the preparation of the Proposition 218 Compliance letters for each MAD.
Submit Annual Levy: SCG will, in consultation with City staff, determine the Levy requirement for the current Fiscal
Year prior to the last working day of July. SCG will calculate and prepare the annual levy for each MAD separately in
a format and media acceptable for direct submission to the Auditor-Controller's Office prior to the statutory deadline
and shall perform adjustments and corrections to the levies on the property tax rolls as necessary.
Annual Levy Corrections: If any corrections/revisions to the secured tax roll are determined to be necessary after the
deadline, SCG will research, recalculate and rectify the issue. SCG will notify the City of any assessor’s parcel numbers
that were rejected by the County and therefore will not be assessed.
Direct Bills: SCG will prepare billing information for all property owners whose proposed annual assessment for their
parcel could not be applied to the County tax roll (parcels for which the County does not generate a tax bill) for the City
to mail.
Ms. Kristen Jensen
City of San Bernardino
Page 3
Annual Engineer’s Report: SCG will prepare the Annual Engineer’s Report pursuant to Government Code Section
61115 and the provisions of California Article XIIID (Proposition 218). This report will include the following required
items:
A general description of the plans and specifications
An estimate of costs and expenses
Special and general benefit nexus
Method of assessment
An Assessment Diagram
The assessment roll
Report Reproduction: SCG will provide the City with two (2) bound copies of the full Engineer’s Report including the
assessment roll; one (1) copy for the City Clerk, and one (1) copy for City staff, and one (1) unbound copy of the
Engineer’s Report for staff to reproduce, as needed.
Meetings: The purpose of this task is to discuss the need for the increases with property owners. In addition to the
kick-off meeting, SCG will attend up to three (3) City Council Meetings held for the purpose of disseminating information
to the public. Prior to such meetings or hearings, information will be prepared and assembled for purposes of making
a complete and factual presentation. We will also attend these meetings as required by the appropriate improvement
act(s) fully prepared to present all necessary testimony and to respond to all public comments.
COMMUNITY FACILITIES DISTRICTS - SERVICES
Land Use Research: SCG will use all resources available including tract maps, parcel maps and regular parcel data
updates from the Assessor’s Offices. We are confident we are able to quickly identify residential and
commercial/industrial developments, conduct Assessor’s parcel research, and provide accurate database
management.
Subdivision Research: SCG will identify and obtain copies of all final tract or parcel maps recorded within the
boundaries of the CFD. SCG will verify this information with the additional resources available.
Development Research: SCG will conduct development research to identify building permit issuance, building
square footage and sites address for the new properties. Upon determination of this information, SCG will be able
to provide the City with related GIS Data to be used for its own GIS database and that of the City, as appropriate.
Assessor’s Parcel Research: SCG will review any current Assessor’s Parcel Maps for updating the APN’s within the
CFD Boundary.
Levy Audit Maps: SCG will generate annual Audit Maps and provides them to the City depicting the current year’s
levied properties within the boundaries of the CFD through the implementation of our GIS platform. This will help
us insure accuracy in identifying any parcel changes.
Database Management: SCG will maintain a comprehensive database of the CFD and parcel information in a form
such that the annual levy submission to San Bernardino County will follow the guidelines as outlined in the County’s
fixed charge submission packet. SCG will maintain all data related to individual parcels including special tax
information, a regularly updated delinquency history (delinquent amounts for each parcel including penalties and
interest, reference to those referred to foreclosure action, and paid prior year delinquency information), current property
ownership information, assessed valuation information, and much more.
Classification of Property: SCG will determine the appropriate property classification in accordance to the rate and
method of apportionment. SCG will review the land use code information from the latest equalized roll for San
Bernardino County and update our database for the special tax calculations annually.
Ms. Kristen Jensen
City of San Bernardino
Page 4
Exempt Property: SCG will identify all property owned by public agencies or entities exempt from the special tax
and classify them in accordance to the rate and method of apportionment. SCG will communicate these
classifications to the City and report them on our annual levy detail reports. We will confirm the location of these
properties using our GIS database and illustrate them on our annual audit map.
Taxable Property: SCG will identify all taxable properties and classify them in accordance with the rate and method
of apportionment. SCG will communicate with the City these classifications and report them on our annual levy
detail reports. We will confirm the location of these properties using our GIS database and illustrate them on our
annual audit map.
Budget Preparation: SCG will apply the rate and method of apportionment and calculate the annual special taxes to
be levied for the current Fiscal Year. SCG will report this information to the City to assist in the budget review process.
SCG will determine, with the City’s approval, the amount needed to meet the anticipated maintenance and
administrative expenses for each Tax Zone for the current Fiscal Year. The CFD budgets will include accurate cost-
recovery accounting including; a) ensuring the appropriate maintenance contract costs, b) any administrative
expenses, c) material costs, d) capital costs, e) reserves and replacement costs, and f) other incidental costs are
incorporated into the CFD budget to achieve maximum cost-to-benefit equity. We will also determine whether adequate
and appropriate fund balances are identified.
Special Tax Rates: SCG will calculate the special tax rates for each Tax Zone and report this information to the
City prior to submittal to the San Bernardino County Auditor’s-Controller’s Office.
Report Preparation: Once finalized, SCG will provide the City with a hard copy and an electronic copy of the Annual
Levy Report containing the information used to calculate the annual installment amount for each parcel, as well as a
summary of the total annual levy for the CFD.
Enrollment of Special Taxes: In consultation with the City, SCG will determine the Levy requirement for the current
Fiscal Year on or before August 10. SCG will calculate and prepare the annual levy for the CFD in a format and media
acceptable for direct submission to the Auditor-Controller's Office prior to the statutory deadline, and shall perform
adjustments and corrections to the levies on the property tax rolls as necessary.
Roll Changes and Adjusted Property Tax Bills: Upon determination that changes to the secured tax roll necessitates
corrections/revisions after the deadline, SCG will research, recalculate, and with the City’s approval, rectifies the issue.
Responses to Property Owner Questions: SCG will serve as the initial and primary contact to the CFD property owners,
title companies and other interested parties regarding the CFD proceedings and annual installments.
Toll Free Number: SCG will provide a toll free phone number for the City to refer property owners, title companies
and other interested parties to in regard to CFD proceedings and annual installments.
Disclosure: SCG will prepare for the City approval any State and/or Federal Disclosure reporting requirements,
including AB 2109 and AB 1666, pertaining to the CFD as applicable.
Electronic Format: SCG will provide an electronic copy of each report, as well as a hard copy of each report, to the City
for internal use.
COMMUNITY FACILITIES DISTRICTS - BONDED
Debt Service Component: SCG will coordinate with the City’s fiscal agent to review debt service schedules and
determine the amount needed to pay principal and interest on the outstanding bonds. We independently maintain a
Ms. Kristen Jensen
City of San Bernardino
Page 5
debt service schedule for the District as quality assurance and verify the appropriate debt service amounts are
identified.
Calculation of Special Taxes: SCG will annually calculate and apportion the special taxes for the District in accordance
with the Rate and Method of Apportionment (RMA) of the Special Tax. The annual calculation will consist of assigning
the special tax classes to each parcel within the District per the RMA and determine the special tax amount that will
satisfy the special tax requirement.
Annual Levy Preparation and Submittal: SCG will determine the Annual Levy requirement for the current Fiscal Year
on or before August 10. SCG will calculate and prepare the annual levy for the District in a format and media acceptable
for direct submission to the San Bernardino County Auditor-Controller's Office, including the enabling resolution, prior
to the statutory deadline and shall perform adjustments and corrections to the levies on the property tax rolls as
necessary.
Staffing and Contact Information: SCG will provide a toll-free telephone number, of SCG designation, for inclusion on
the regular property tax billing next to the specific line item to facilitate contact with the public, and provide payoff
calculations, if requested. City Staff may also refer property owners, title companies and other interested parties to that
toll-free number in regards to the special tax proceedings and annual installments.
Annual Levy Report: SCG will prepare any necessary documentation required for assessments of the special tax to be
submitted to the County for enrollment. SCG will also provide the City with a Levy Report for the tax enrollments for
the District. These reports will provide the City a full listing of the parcels levied for the District including information
relevant to the calculation of the assessment for the City’s approval.
Disclosure for Prospective Property Purchases: SCG will assist City staff with providing the proper disclosure of
Assessment information for prospective property purchases as required by Sections 53340.2 (b) and 53341.5 of the
State of California Government Code.
Annual Continuing Disclosure: SCG will prepare Annual Continuing Disclosure Reports that meet the guidelines of the
Continuing Disclosure requirements for the District as stated by the continuing disclosure certificate under SEC Rule
10b-5and 15c2-12. SCG will provide this report to the City for review and approval. Upon approval SCG will
disseminate the reports with the Municipal Securities Rule Making Board (MSRB) using Electronic Municipal Market
Access (EMMA) and to any other party directed by the applicable continuing disclosure agreement.
Bond Call: SCG will perform an analysis to determine the par amount of the bonds to be called, to calculate any
applicable premium, and to determine which maturities to call from and prepare a revised debt service schedule. SCG
will coordinate the bond call with the Fiscal Agent/Trustee to ensure that bonds are called per the redemption provisions
of the bond issue.
Release of Lien: SCG will prepare the Release of Lien, required by Revenue and Taxation Code 163, upon confirmation
a prepayment has been made by the property owner. SCG will record the release within five (5) days of receiving the
signed release and provide a copy to the City.
Delinquency Monitoring: SCG will provide delinquency management services to the City regarding the District. SCG
will monitor delinquencies as required for the Annual Continuing Disclosure agreement and provide delinquency
reporting, prepare notifications to property owners, coordinate with the City and Foreclosure Counsel, assist in the
collection process, and help monitor any payment plans.
Foreclosure Coordination (Bonded Districts Only): SCG will assist in preparing documents submitted by the City
requesting authorization of foreclosure action. This includes preparation and recordation of the Notice of Intent to
Ms. Kristen Jensen
City of San Bernardino
Page 6
Commence Foreclosure, preparation of Exhibits for the Resolution commencing foreclosure, and coordination of the
removal of the assessments approved for foreclosure from the tax roll. SCG will provide delinquent amounts (including
penalty and interest at the time the foreclosure is transferred) to City staff.
Bond Rating Agencies: SCG will assist City staff in providing information to bond rating agencies when needed.
Current and Future CFD Laws: SCG is well versed in all case laws approved affecting assessment and special tax
districts. We continue to attend educational seminars and conferences and discuss these issues with other industry
professionals on an annual basis. SCG will provide City Staff with periodic updates as new case law is approved and
keep the City in compliance with all statutory and regulatory laws related to the City’s special finance district.
Notice of Special Tax: SCG will provide and record a Notice of Special Tax Disclosure as required by California
Government Code Sections 53340.2(b) and 53341.5.
SB 165 Reporting: SCG will provide all materials to assist the City in preparing reports for the legislation that was
approved in 2001 requiring additional reporting requirements outlined in Section 53411 of the Government Code (a)
and (b).
AB 2109: SCG will prepare all reports for the City’s approval of any State and/or Federal reporting requirements
including the Assembly Bill 2109, if applicable.
California Debt and Investment Advisory Commission (CDIAC): SCG will prepare all reports for the City’s approval of
any State and/or Federal reporting requirements pertaining to the District including the California Debt and Investment
Advisory Commission (CDIAC), if applicable.
Annual Reporting AB 1666: SCG will provide an Annual Report (AB 1666) to the City which will include identification
of the Community Facilities District (CFD) administrative cost items eligible for the recovery by the public agency,
review of fund balances and any surplus/deficit funds, debt service requirements, delinquency reporting, and a cover
letter providing any related recommendations or issues. The report will include a series of schedules, including a
District summary that will be useful for City staff to reference.
Meetings: SCG will attend City Meetings, Public Hearings, and/or staff meetings annually as determined by the City for
the annual enrollment. We will attend additional hearings and public meetings as required by the appropriate
improvement act(s) fully prepared to present all necessary testimony and to respond to all public comments.
Data Collection: SCG has the latest assessor’s parcel maps and equalized tax roll information from the San Bernardino
County Assessor’s Office, including Geographic Information System (GIS) shape files for the parcels within the District.
The database will include final tract and/or parcel map recordation information, building permits, and the appropriate
building and parcel information, as well as certificate of compliance information for properties within each District to be
used for the calculation of the annual district assessments and made readily viewable using a KML file accessible and
searchable, including APN and street address, using Google Earth.
Budget Review: SCG will review the District budget provided by the City and coordinate with City staff to assist with
accurate cost-recovery accounting, incorporating the actual maintenance costs into the District budget to achieve
maximum cost-to-benefit equity.
Annual Enrollment Correspondence: SCG will prepare all Proposition 218 compliance forms for each fund number
utilized by the City for the Auditor-Controller’s Office, as well as any summary statements and authorized signature
forms. SCG will identify and discuss with City staff any legislation impacts and changes made to the documents.
Ms. Kristen Jensen
City of San Bernardino
Page 7
Resubmittals and Adjusted Property Tax Bills: If any changes to the secured tax roll necessitate corrections/revisions
after the deadline, SCG will research, recalculate and, with the City approval, rectify the issue. We will notify the City
of the assessor’s parcel numbers that were rejected by the County and therefore may not be assessed.
Handbills: SCG will prepare and mail hand bills for those parcels the County does not generate a tax bill. The hand
bills would include the City letterhead, invoices with two (2) installments, and would be payable to the directly to the
City.
Prepayment Calculation: SCG will calculate the special tax prepayment amount for a parcel(s) and provide any
additional information as requested related thereto. The party requesting the calculation shall pay the fee of any
prepayment calculation.
Indenture Compliance: SCG will periodically review and monitor the City’s compliance with the Indenture of Trust or
Fiscal Agent Agreement as it relates to the flow of the special taxes. This will be incorporated in the annual budget
review process.
OPTIONAL SERVICES
CFD FORMATION SERVICES
Kickoff Meeting and Gathering Information: SCG will participate in regular meetings relating to the financing of the
project. We will work to establish lines of communication and gain understanding of the specific goals, components
and criteria to meet the City and the project’s needs. SCG will meet with the City’s Staff, legal counsel, team of
consultants and project proponents to confirm the CFD’s schedule of events, procedural and financial considerations,
establish the appropriate land use classifications and discuss and identify the boundaries of the proposed CFD.
Data Collection: SCG will obtain the latest assessor’s parcel maps and equalized tax roll information from the San
Bernardino County Assessor’s Office for the parcels within the proposed District, and Geographic Information System
(GIS) shape files for creating the database and for mapping the proposed boundaries of the CFD.
Tax Spread: SCG will recommend a special tax structure by establishing a Special Tax formula for the necessary
revenues to cover the approved public facilities improvement costs including administrative costs. Based on the
proposed structure of the Special Tax formula, SCG will determine the appropriate methodology for allocating the costs
to the various land use classifications and maintain consistency with the previously approved methodology of the City’s
Goals and Policy for public financing.
Rate and Method of Apportionment: SCG will prepare a proposed Rate and Method of Apportionment (RMA) that takes
into consideration the various land use classifications, tax zones and improvement areas, and provides the necessary
flexibility for a variety of developments to be included in the CFD. The RMA will take into consideration: clarity of
language in the definition of terms, ability of the property to be assigned to different tax classifications, and presence
of a mechanism to levy taxes in the event of a change in projects and usage.
Public Report Preparation: SCG will prepare the CFD public report, including a description of the facilities to be included
and projected annual special tax and present it to the City Council at the Public Hearing.
Boundary Map: SCG will prepare the Boundary Map illustrating the boundaries of territory proposed for inclusion in
the district capturing the entirety of any parcel subject to taxation by the proposed district. The map shall meet the
requirements of the Mello-Roos Act and the San Bernardino County Recorder’s Office. Additionally, SCG will record
the map with the Recorder’s Office on behalf of the City.
Ms. Kristen Jensen
City of San Bernardino
Page 8
Document Review and Preparation: SCG will review and prepare the required documents for the formation of the CFD.
SCG will also assist the formation team in reviewing staff reports, resolutions, election materials and bond / legal
documents for the formation of the CFD. SCG will assist in document preparation related to the CFD formation,
presentation to the City Council, rating agencies, investors, and other stake holders as appropriate.
Notice of Special Tax Lien: SCG will prepare and provide a list of Assessor’s Parcels for the Notice of Special Tax Lien
and records the notices.
Landowner Election: SCG will prepare a list of the owner names and acreages and obtain a certificate from the
Registrar of Voters whether confirming there are, or are not, registered voters within the boundaries of the CFD.
Consulting Services: SCG will provide consulting services and advice to the City as necessary, including due diligence
to ensure accuracy in the process and clear written documentation in our approach when structuring the Rate and
Method of Apportionment and the Special Tax roll. SCG will assist with other duties as assigned by the City and /or its
financial advisor.
CFD ANNEXATION SERVICES
Gathering Information: SCG will meet with the City’s Staff, legal counsel, team of consultants and project proponents
to confirm the annexation schedule of events, procedural and financial considerations, establish the appropriate land
use classifications, and discuss and identify the boundaries of the proposed annexation.
Data Collection: SCG will obtain the latest assessor’s parcel maps and equalized tax roll information from the San
Bernardino County Assessor’s Office for the parcels within the proposed Districts, and Geographic Information System
(GIS) shape files or the annexation.
Maintenance Data: SCG will coordinate with the City in determining what the necessary levels of services that would
be required for proper allocation per the Rate and Method of Apportionment for the annexation.
Maintenance Tax Rates: SCG will establish a Special Tax Rates for each annexation determining the necessary
revenues to cover operations and maintenance costs including administrative costs. Based on the structure of the
Special Tax formula, SCG will determine the appropriate methodology for allocating the costs to the various land use
classifications consistent with the previously approved methodology of the City’s landscape, lighting, street, parks, and
drainage maintenance programs.
Annexation Boundary Map: SCG will prepare the Annexation Boundary Map, illustrating the boundaries of territory
proposed for inclusion in the district, capturing the entirety of any parcel subject to taxation by the district. The map
shall meet the requirements of the Mello-Roos Act and the San Bernardino County Recorder’s Office. Additionally,
SCG will record the map with the Recorder’s Office.
Consulting Services: SCG will provide consulting services and advice to the City as necessary. This includes due
diligence to ensure accuracy in the process, and provide clear written documentation in our approach to structuring the
Rate and Method of Apportionment and the Special Tax roll. To assure and maintain quality assurance, SCG has
instituted an internal auditing and review policy that requires a minimum of two individuals with the appropriate expertise
to review and audit any information prior to dissemination of that information to the client.
Meetings: SCG will attend two (2) informal meetings or hearings held for the purpose of disseminating information to
the public, including attending property owner meetings requested for property owner associations (POA) that may
request to annex into the CFD. Prior to such meetings or hearings, SCG will be prepared to make a complete and
factual presentation. We will also attend two (2) public meetings, as required by the appropriate improvement act(s),
fully prepared to present necessary testimony and respond to public comments.
Ms. Kristen Jensen
City of San Bernardino
Page 9
Landowner Election: SCG will prepare a list of the owner names and acreages and obtain a certificate from the
Registrar of Voters whether confirming there are, or are not, registered voters within the boundaries of the annexation.
Notice of Special Tax Lien: SCG will provide a list of Assessor’s Parcel for the Notice of Special Tax Lien and record
the notices
BOND ISSUANCE SERVICES
Kickoff Meeting and Gathering Information: The purpose of this task is to establish lines of communication and gain
understanding of the specific goals, components and criteria to meet the City’s needs. SCG will meet with City Staff,
legal counsel, team of consultants and project proponents to confirm the CFD’s schedule of events, procedural and
financial considerations, establish the appropriate land use classifications and discuss and identify the boundaries of
the proposed CFD.
Data Collection: SCG will obtain the latest assessor’s parcel maps and equalized tax roll information from the San
Bernardino County Assessor’s Office for the parcels within the proposed District, and Geographic Information System
(GIS) shape files for our in-house GIS platform.
Bond Documents Table Preparation and Review: SCG will prepare and provide final calculation to the finance team
for inclusion in the Preliminary Official Statement (POS) and Official Statement (OS) to include: i) Maximum special tax
coverage; ii) Value-to-lien computations; iii) Overlapping debt table; and iv) Effective tax rate schedules. SCG will
review the POS, OS and other legal documents as they relate to any items included in the CFD Public Report, the
boundary map and any tables SCG provides.
Vicinity Map: SCG will prepare a location and area map for inclusion in the POS and OS.
Special Tax Certificate: SCG will prepare and sign the Special Tax Consultant Certificate that certifies that the
maximum special tax rates are sufficient to meet debt service requirements and coverage ratios for bonds to be issued.
Compensation
We propose to be compensated a fixed fee of $96,000 for Fiscal Year 2019-20 as follows for services performed
according to the scope of services listed above for the list of Special Districts included as Attachment A. The proposed
compensation shall increase following FY 2019-20 annually by 2%.
Annual Administration
Description FY 2019-20 FY 2020-21 FY 2021-22
Maintenance Assessment Districts $96,000 $97,920 $99,878
Community Facilities Districts - Services
CFD 2018-1 (Safety Services)(1) $0 $2,500 $2,550
CFD 2019-1 (Maintenance Services) (2) $0 $3,500 $3,570
Community Facilities Districts - Bonded
CFD 2018-2 (Verdemont Ranch) (3) $0 $5,000 $5,100
Totals $96,000 $108,920 $111,098
(1) CFD 2018-1 Not levied for FY 2019-20. Fee includes: $2,500 Base plus $500 per annex.
(2) CFD 2019-1 Not levied for FY 2019-20. Fee includes: $2,500 Base plus $500 per annex; includes two annex FY 2020-21.
(3) CFD 2018-2 Not levied for FY 2019-20.
Ms. Kristen Jensen
City of San Bernardino
Page 10
Optional Services
We propose to be compensated a fixed fee for services performed payable from developer deposit or bond proceeds.
Service Fee
CFD Formation Services (with one Improvement Area) $25,000
(per additional Improvement Area) $5,000
CFD Annexation Services $10,000
Bond Sale Services $20,000
Hourly Rates
Title Rate
Principal $195
Senior Associate $140
Associate $115
Assistant Analyst $85
Mapping Technician $60
For the services performed related to the projects which are not listed herein, compensation shall be at the hourly rates
set forth, together with reimbursement, at cost, for incidental expenses incurred in connection with such services,
together with reimbursement for outside services at cost plus 15%.
It is our objective to provide the City with a high-quality work product while being solution oriented, and value added.
We look forward to working with the City on this exciting project and establishing a long-standing relationship. If you
have any questions regarding our proposal, or if additional information is needed, please contact me directly at (951)
520-3331 or email me at shane.spicer@spicercg.com.
Sincerely,
Spicer Consulting Group
Shane Spicer
Managing Director
cc: Alex Qishta, City of San Bernardino
Melissa Bellitire, Spicer Consulting Group
ATTACHMENT A
Maintenance Assessment Districts
District District
AD 951 Zone1 (Wagonwheel Road Area) AD 1024 (Inland Center Drive and Riverwalk Drive Area)
AD 951 Zone 2 (Wagonwheel Road Area) AD 1025 (Palm Avenue and Washington Avenue Area)
AD 952 Zone 1 (State College Area) AD 1027 (Waterman Avenue and Washington Street Area)
AD 952 Zone 2 (State College Area) AD 1028 (Ohio Avenue and Walnut Avenue Area)
AD 952 Zone 2A (State College Area) AD 1029 (California Street and 16th Street Area)
AD 952 Zone 3 (State College Area) AD 1030 (Magnolia Avenue and Ohio Avenue Area)
AD 953 (16th Street) AD 1031 (Irvington Avenue and Olive Avenue Area)
AD 956 (Carnegie Drive Area) AD 1032 (Palm Avenue and Verdemont Drive)
AD 959 Zone 1 (Shandin Hills) AD 1035 Zone 1 (Palm Avenue and Meyers Road)
AD 962 (Pine Avenue Area) AD 1035 Zone 2 (Palm Avenue and Meyers Road)
AD 963 (Allen Street) AD 1036 (Northpark Boulevard and Campus Parkway)
AD 968 (Airport Drive) AD 1037 (Belmont Avenue and Magnolia Avenue)
AD 974 (Rialto Avenue between Eucalyptus and Pepper) AD 1038 (Orange Show Road and Arrowhead Avenue)
AD 975 (Pepper and Mill Area) AD 1039 (Irvington Avenue and Chestnut Avenue Area)
AD 976 (Pine and Belmont) AD 1040 (Acacia Avenue and Hill Drive Area)
AD 981 (Meridian and Randall Avenue) AD 1041 (Magnolia Avenue and Ohio Avenue Area)
AD 982 (Piedmont Drive Area) AD 1042 (Shandin Hills Drive and Shady Creek Drive)
AD 986 (Rialto and Macy Area) AD 1043 Zone 1 (Palm Avenue and Irvington Avenue Area)
AD 989 (Mill and Macy Area) AD 1043 Zone 2 (Palm Avenue and Irvington Avenue Area)
AD 991 (Verdemont and Olive Area) AD 1045 (Waterman Avenue and Orange Show Road Area)
AD 993 (Cajon and June Area) AD 1046 (Northpark Boulevard and Northstar Avenue Area)
AD 997 (Chestnut Area) AD 1047 (Ohio Avenue and Pine Avenue Area)
AD 1001 (Pennsylvania and Birch Area) AD 1048 (Eucalyptus Avenue and Randall Avenue Area)
AD 1002 (North "H" Street Area) AD 1050 (Pepper Avenue and Rialto Avenue Area)
AD 1005 (Cajon and Pepper Linden Area) AD 1052 (Belmont Avenue and Chestnut Avenue Area)
AD 1007 (Pepper and Randall Area) AD 1054 (Campus Parkway and Valles Drive Area)
AD 1012 (Mill/Burney Area) AD 1055 (Pine Avenue and Redwood Street Area)
AD 1016 (Coulston Area) AD 1056 (Magnolia Avenue and Garfield Street Area)
AD 1017 (Kendall and Pine Area) AD 1057 (Cajon Boulevard and University Parkway Area)
AD 1019 (Northpark and Mountain Area) AD 1059 (Orange Show Road and Tippecanoe Avenue Area)
AD 1020 (Mill Street and Dallas Avenue Area) AD 1060 (Chiquita Lane and Date Street Area)
AD 1022 Zone 1 (San Bernardino International Airport/Alliance-CA) AD 1063 (Central Avenue and Lena Road Area)
AD 1022 Zone 2 (San Bernardino International Airport/Alliance-CA) AD 1064 (Cajon Boulevard and Glen Helen Parkway Area)
AD 1022 Zone 3 (San Bernardino International Airport/Alliance-CA) AD 1068 (Tippecanoe Avenue and Central Avenue Area)
AD 1023 (Elm Avenue and Coulston Street Area)
Community Facilities Districts – Services
CFD 2018-1 (Safety Services)
CFD 2019-1 (Maintenance Services)
Community Facilities Districts ‐ Bonded
CFD 2018-2 (Verdemont Ranch)