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HomeMy WebLinkAboutC23340A Section 29 Assessment District ProposalREQUEST: SUBMITTED BY: CONSULTANT: DATE: CONTENTS: Recommendation: CITY OF PALM DESERT STAFF REPORT APPROVE CONTRACT WITH MUNIFINANCIAL FOR PROFESSIONAL SERVICES ASSOCIATED WITH THE BENEFIT ASSESSMENT DISTRICT FORMATION DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING MUNIFINANCIAL 27368 VIA INDUSTRIA, STE. 110 TEMECULA, CA 92590 MARCH 23, 2006 CONTRACT PROPOSAL FROM MUNIFINANCIAL By Minute Motion, that the City Council approve Contract with MuniFinancial in a total amount not -to -exceed $11,500 for provision of professional services associated with the Benefit Assessment District Formation. The $11,500 necessary for the contract is available in Trust Account No. 610-0000-228- 2100, per the Reimbursement Agreement (Contract No. C23200) with the developers of the Section 29 Assessment District. Discussion: On 27 January 2005, the City Council approved a contract to MuniFinancial for provision of professional services related to the district formation costs associated with Section 29 Assessment District. Charges for these services are paid from the deposit made by the developers of the district, per the Reimbursement Agreement (Contract No. C23200). The formation is approximately 65% complete and MuniFinancial has been performing the required services in a satisfactory manner. One of the major improvements included in the Section 29 District is an off -site collective retention basin. With the exception of Sares Regis, all developers in Section 29 will be utilizing this basin for drainage purposes. In addition to Section 29 property owners, the property owners at Monterey 170 will also be utilizing the basin. As a result, there will be an ongoing need for maintenance of the drainage retention basin. Staff Report Approve Contract with MuniFinancial Page 2of2 March 23, 2006 The Benefit Assessment Act of 1982 is a mechanism that allows a local agency to levy an annual assessment on all benefited properties within it jurisdiction for drainage, flood control, or street light services. Each of these assessments is subject to the provision of Proposition 218 requiring special benefit be established, a mailed ballot to property owners and public hearing. Legal counsel has determined that the retention basin qualifies under this Act and could be maintained through this mechanism. The amount of $11,500 provides compensation for professional services associated with the benefit assessment district formation. These services include work related to improvement inventory, budget formation, reviewing maps, determine eligible improvements for maintenance, development of parcel data base used to collect assessments, benefit analysis, preparation of an Engineer's Report, preparation and mailing of ballots, preparation of relevant resolutions required, and tabulation of ballots. Staff recommends approval of the subject contract in order to facilitate the maintenance needs of the Monterey 170/Section 29 Benefit Assessment District. Submitted by: (`D'i�v ave Yrigo Director velopment/Housing Paul S. Gibson, Director of Finance Approval: McCarthy Redevelopm ___., Carlos L. Ortega, City Manager G:1RDA1Veronica Tapia\Word Files\Staff Reports\Staff Report -Muni Section 29 BAD.doc EmuniFinancial February 17, 2006 Arla Scott Senior Financial Analyst — Redevelopment City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Re: Revised Proposal to Provide Benefit Assessment District Formation and Administration Services for the City of Palm Desert Dear Arla: MuniFinancial is pleased to submit this revised letter proposal to provide services for the formation and administration of a 1982 Act Benefit Assessment District for the City of Palm Desert. Our proposal describes our understanding of the project background and our proposed scope of services, staffing, and fee for service. Background The City of Palm Desert wishes to obtain consulting services to form and administer a benefit assessment district. This proposed district would provide funding for the ongoing maintenance of a drainage retention basin being constructed by developers of property in area of the Citj's Section 29 Assessment District. Scope of Services We will approach this project in two phases: Phase I, Benefit Assessment District Formation; and, if the district is formed, Phase II, Benefit Assessment District Annual Administration. Phase 1. Benefit Assessment District Formation MuniFinancial will perform the following to provide assessment district formation services to the City of Palm Desert under the provisions of the Benefit Assessment Act of 1982 for the proposed Section 29 and Monterey 170 Benefit Assessment District. 1. Consult with the developer and City staff to determine project timeline, improvement inventory and budget information for the district. This task includes one (1) project kick-off meeting, which can be done via conference call. 2. Review tentative maps, parcel maps and development plans to identify the eligible improvements to be maintained within the district, and to confirm number of parcels and Equivalent Benefit Units within the boundaries of the proposed district. - - - - —------------- ---- - --- — - ----- - ----_ _ — ---- ------ ----------- 273G8 Via Inclurttia, Ste. 110 Tel. (951) 587-3500 Temecula, California 92590 www.muni.com Fax (951) 587-3510 Ms. Arla Scott, GD; of Palm Desert YluniFinancial Revised Proposal to Provide Benefit Assessment District Formation &Administration Services Februag 17, 2006 Page2 of5 3. Prepare the district budget and coordinate with City staff to assist with accurate accounting cost recovery. Assist City staff with incorporating the actual maintenance costs into the district budget to achieve maximum cost -to -benefit equity. MuniFinancial can help to see that, as appropriate, adequate reserve funding is established and that the proper maintenance cost per square foot is reasonable and adequate for City needs. MuniFinancial will endeavor to develop a rate structure that allows for growth in costs, and includes an inflation adjustment factor in the district budget. MuniFinancial and City staff will decide upon the amount of the factor. 4. Develop the parcel database used to collect assessments. Update the database using parcel information from the current County Assessor's Office secured roll. IuniFinancial will enhance the data through parcel research and specific information provided by the City and County. 5. Prepare a special/general benefit analysis of the district to ensure that benefit factors are separate and distinct and that the general benefit portion (if any) is not included in the assessments. Prepare the assessment methodology and spread of assessments. 6. The proposed assessment methodology and spread will be presented to City Staff for review and comment. Feedback will be incorporated into a revised spread as necessary, and this revised spread presented to staff. 7. In accordance with the Benefit Assessment Act of 1982 (Section 54716) and the City of Palm Desert benefit assessement district format, MuniFinancial will prepare an Engineer's Report for the district to include the following items: • Description of services to be funded; Definition of benefit and description of the benefit analysis; • Budget estimates of costs for maintenance of improvements; • Estimate of assessment to each parcel; ® Method of spread; • A boundary map and /or assessment diagram; and An affidavit stating the report has been prepared by a professional engineer and signed by our registered civil engineer 8. Update the Engineer's Report if necessary to reflect changes for the public hearing. 9. Prepare and mail notices and ballots in accordance with the requirements of Proposition 218. MuniFinancial will use the latest property owner information from the following sources: Riverside County, City of Palm Desert and the developers for the project. 10. Prepare relevant resolutions for the Intent Meeting and the Public Hearing and send to the City for review. ills. Arta Scott, City of Palm Desert .,l1uarFinancial Revised Proposal to Provide BenelitAssessment Disind Formation &Administration Services Febiwag 17, 2006 Page 3of5 11. Attend one (1) Intent Meeting in front of City Council and one (1) Public Hearing in front of City Council regarding the formation of the district. 12. In conjunction with the City Clerk, tabulate the assessment ballots after the close of the Public Hearing. MuniFinancial will provide the balloting results to the City Clerk once tabulation is complete. Meetings and Client Contact We anticipate a total of three (2) meetings during the course of Phase I, as described above: one (1) Intent Meeting; and one (1) Public Hearing. Telephone conference calls are included in our scope of services and there is no limit to these calls with City Staff. Phase II: Benefit Assessment District Annual Administration If the proposed district is formed, MuniFinancial will perform the following to provide district administration services for Section 29 Benefit Assessment District: 1. Display the ability to meet the project deadlines. MuniFinancial shall also display a familiarity with the district, its boundaries, parcels, and particularities, as well as all applicable legislation (e.g., Proposition 21$). 2. Review all documentation, databases, and budgets prior to performing an analysis. In so doing, a total and complete equity of assessments within the district is ensured. 3. Provide consulting, coordination, and documentation necessary to communicate the intent of the district to staff, council and property owners. 4. Prepare complete documentation for the district, including the annual Engineer's Reports and maps. 5. Provide coordination with the various County departments to ensure full completion of the levy of assessments. 6. Provide comprehensive assessment installment information for each parcel, and submit in a timely manner to the Riverside County Auditor/Controller's Office for placement on the property tax roll. This information shall be submitted in the media, format, and configuration specified by the County. 7. Research and, if possible, resubmit amounts that are rejected by the County Auditor/Controller's Office. On behalf of the District, MuniFinancial will directly invoice the property owner of record for any amount that cannot be collected by the County property tax roll. Staffing We have selected senior professionals for the City of Palm Desert' project. We are confident that the MuniFinancial team has a depth of experience that will successfully fulfill the City's desired work performance. Ylr. Arles Scott. City of Palm Desert Afan,Fina,vaalBevised Proposal to Provide Benefit Assessment Distnet Formation &Administration Serwees Febmag 17, 2006 Page 4 of S Mr. Chris Fisher, Principal Consultant in our Financial Consulting Services Group, will serve as Project Manager for district formation actions. As project manager, Mr. Fisher will organize and direct all work tasks and review interim work products. He will ensure the formation actions are completed on time and within budget. He will also be the primary client contact and will attend all meetings. Dick Kopecky, P.E., will be the Project Engineer and will review benefit analyses, as well as review and sign all Engineer's Reports. Mr. Kopecky is president of our affiliate company, Wlilldan. Mr. Habib Isaac, Senior Analyst, will provide analytical support during the district formation. Mr. Isaac -will work under the direction of Mr. Fisher, who will assign additional resources to the team, if necessary. For district administration services, Ms. Adina Vazquez, Project Manager in MuniFinancial's District Administration Services Group, will support the City, assisted by analysts assigned to our Temecula office. Fees for Services We will perform the work described in our scope of services for the following fees. Our fees assume a count of approximately 20 parcels. Increases to this parcel count may require a corresponding adjustment to our fees. Phase I: Benefit Assessment District Formation $11,500 fixed price Phase II: Benefit Assessment District $2000 annually Administration Notes: • These fees include all direct reimbursable expenses associated with the project, such as travel expenses, mileage and postage. We will bill the City at our cost with no overhead mark-up for expenses such as reports and data obtained from outside sources, such as the County. Our estimate of these costs is included in the fees stated above. • Our Phase II fee is possible at this rate due to our familiarity with the City's conditions and special district requirements. The Phase II fee quoted above includes fees for providing information to interested parties. • Our fee for annual district administration will be subject to an increase, which will not exceed the change in the annual Consumer Price Index (CPI) for the applicable areas as calculated by the United States Department of Labor. • All costs associated with annual administration are fully recoverable either through the assessment levy or through payment by requestor for special services. • Additional meetings or tasks outside our scope of services will require an additional fee. :YIs. Arla Scott, City o f Palm Desert 1 funiFinanaal Revised Proposal to Provide Benefit Assessment Districd Formation & Administration Services Febmag 17, 2006 Page 5 of 5 For Phase I, Benefit Assessment District Formation, we will invoice the City of Palm Desert monthly based on project completion. For Phase II, Benefit Assessment District Administration, we will invoice the City of Palm Desert monthly as work progresses based on percent of project completion. We appreciate this opportunity to assist the City of Palm Desert. Please contact me, at (951) 587-1528 or via email to chrisf@muni.com if you have any questions regarding this proposal. Sincerely, ItiuniFinancial l Chris Fisher, Principal Consultant Financial Consulting Services AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT, made and entered into this day of March 2006, by and between MuniFinancial, a corporation, and the City of Palm Desert, hereinafter referred to as "Client." WHEREAS, Client desires to employ MuniFinancial to furnish ongoing professional services in connection with Benefit Assessment District Formation and Administration Services, hereinafter referred to as the "Project." NOW, THEREFORE, in consideration of the mutual premises, covenants and conditions herein contained, the parties agree as follows: SECTION I - BASIC SERVICES MuniFinancial shall provide to the Client the basic services described in detail in "Exhibit A," Scope of Services, attached hereto and incorporated herein by this reference. SECTION II - ADDITIONAL SERVICES If authorized, MuniFinancial shall furnish additional services, which are in addition to the basic services. To the extent that the additional services have been identified in this Agreement, they are itemized in "Exhibit A" and will be paid for by Client as indicated in Section III hereof. As further additional services are requested by Client, this Agreement may be modified and subject to mutual consent by execution of an addendum by authorized representatives of both parties, setting forth the additional scope of services to be performed, the performance time schedule and the compensation for such services. SECTION III - COMPENSATION MuniFinancial shall be compensated for basic services rendered under Section I, as in accordance with the terms and conditions indicated in "Exhibit B," Fees for Services; and MuniFinancial will be compensated for any additional services rendered under Section II as more particularly described in a fully approved and executed addendum to this Agreement. If no addendum is executed, then MuniFinancial shall be compensated at its then -prevailing hourly rates for such additional services. MuniFinancial may submit monthly statements for basic and additional services rendered. It is intended that Client will make payments to MuniFinancial within thirty (30) days of invoice. All invoices not paid within thirty (30) days shall bear interest at the rate of 1-1 f 2 percent per month or the then legal rate allowed. MuniFinancial Page 1 City of Palm Desert SECTION IV - INDEMNITY; INSURANCE REQUIRED A. Indemnity. MuniFinancial shall indemnify and hold harmless Client, its officers, officials, directors, employees, designated agents, and appointed volunteers from and against all claims, damages, losses and expenses, including attorney fees, arising out of the performance of the services described herein, caused in whole or in part by the negligent acts, errors or omissions of MuniFinancial, any subconsultant, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except where caused by the active negligence or willful misconduct of Client or Client's officers, agents or employees. B. Insurance. Without in any way limiting MuniFinancial's liability pursuant to the indemnification described above, MuniFinancial shall maintain, during the term of this contract, the following insurance: Coverage General Liability Comprehensive General Liability, including: Premises and Operations Contractual Liability Personal -Injury Liability Independent Contractors Liability (if applicable) Minimum Limits $1,000,000 Combined Single Limit, per occurrence and general aggregate Automobile Liability $1,000,000 Combined Single Limit, per Comprehensive Automobile Liability, occurrence (including owned, non -owned and hired autos) Workers' Compensation and Employer's Statutory, $1,000,000 Liability Workers' Compensation Insurance Employer's Liability Professional Liability $1,000,000 per claim and annual aggregate Professional Liability Insurance SECTION V — INDEPENDENT CONTRACTOR STATUS MuniFinancial shall be an independent contractor and shall have responsibility for and control over the details and means of providing the services under this Agreement. MuniFinancial Page 2 City of Palm Desert SECTION VI — OWNERSHIP AND MAINTENANCE OF DOCUMENTS MuniFinancial may rely upon the accuracy of any documents provided to MuniFinancial by Client. All documents, including without limitation, reports, plans, specifications, field data, field notes, laboratory test data, calculations, estimates, schedules, spreadsheets, or other documents furnished by MuniFinancial pursuant to this Agreement, regardless of media (e.g., paper, electronic, magnetic, optical, Mylar, etc), are instruments of MuniFinancial's services in respect to this Project and not products. All such documents shall remain the property of MuniFinancial provided, however, that a copy of the final documents shall be made available to Client upon request. These documents are not intended, nor represented to be suitable for reuse by Client or any others on extensions of this Project or on any other project. These documents shall not be changed or reused without the prior written consent of MuniFinancial. Any modification or reuse without specific written verification and adoption by MuniFinancial for the specific purposes intended will be at user's sole risk. Client agrees to save, keep and hold harmless MuniFinancial from all damages, costs or expenses in law and equity including costs of suit and attorneys' fees resulting from such unauthorized reuse. Client further agrees to compensate MuniFinancial for any time spent or expenses incurred by MuniFinancial in defense of any such claim, in accordance with MuniFinancial's prevailing fee schedule. Client acknowledges that its right to utilize the services and instruments of services of MuniFinancial will continue only so long as Client is not in default of the terms and conditions of this agreement and Client has performed all obligations under this agreement. Client further acknowledges that MuniFinancial has the unrestricted right to use the services provided pursuant to this agreement as well as all instruments of service provided pursuant to this agreement. Client agrees not to use or permit any other person to use any instruments of service prepared by MuniFinancial, which are not final and which MuniFinancial does not sign. Client agrees to be liable for any such use of non -final instruments of service not signed, stamped or sealed by MuniFir=cial and waives liability against MuniFinancial for their use. MuniFinancial's records, documents, calculations, test information and all other instruments of service shall be kept on file in legible form for a period of not less than two (2) years after completion of the services covered in this Agreement. SECTION VII — SUSPENSION OF SERVICES Client may, at any time, by thirty (30) days' written notice, suspend further performance by MuniFinancial. All suspensions shall extend the time schedule for performance in a mutually satisfactory manner and MuniFinancial shall be paid for all services performed and reimbursable expenses incurred prior to the suspensions date. MuniFinancial Page 3 City of Palm Desert SECTION VIII — TERMINATION Either parry may terminate this Agreement at any time by giving thirty (30) days' written notice to the other party of such termination. If this Agreement is terminated as provided herein, MuniFinancial will be paid an amount which bears the same ratio to the total compensation as the services actually performed bears to the total services of MuniFinancial covered by this Agreement, less payments of compensation previously made. SECTION IX - COMPLIANCE WITH LAW Each party hereto will use reasonable care to comply with applicable laws in effect at the time the services are performed hereunder, which to the best of their knowledge, information and belief apply to their respective obligations under this Agreement. SECTION X - SUCCESSORS AND ASSIGNS This Agreement shall be binding on the successors and assigns of the parties, but either party, without written consent of the other party, shall not assign it. SECTION XI - ATTORNEYS FEES In the event that any judgment is entered in any action upon this Agreement, the party hereto against whom such judgment is rendered agrees to pay the amount equal to the reasonable attorneys fees of the prevailing party in such action and that such amount may be added to and made a part of such judgment. SECTION XII - ALTERNATIVE DISPUTE RESOLUTION If a dispute arises between the parties relating to this Agreement, the parties agree to use the following procedure prior to either party pursuing other available remedies: A. A meeting shall be held promptly between the parties, attended by individuals with decision -making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute. B. If, within thirty (30) days after such meeting, the parties have not succeeded in negotiating a resolution of the dispute, they will jointly appoint a mutually acceptable neutral person not affiliated with either of the parties (the "neutral"), seeking assistance in such regard if they have been unable to agree upon such appointment within forty (40) days from the initial meeting. The parties shall share the fees of the neutral equally. MuniFinancial Page 4 City of Palm Desert C. In consultation with the neutral, the parties will select or devise an alternative dispute resolution procedure ("ADR") by which they will attempt to resolve the dispute, and a time and place for the ADR to be held, with the neutral making the decision as to the procedure, and/or place and time (but unless circumstances require otherwise, not later than sixty (60) days after selection of the neutral) if the parties have been unable to agree on any of such matters within twenty (20) days after initial consultation with the neutral. D. The parties agree to participate in good faith in the ADR to its conclusion as designated by the neutral. If the parties are not successful in resolving the dispute through the ADR, then the parties may agree to submit the matter to binding arbitration or a private adjudicator, or either party may seek an adjudicated resolution through the appropriate court. SECTION XIII - RECORDS Records of MuniFinancial's direct labor costs, payroll costs and reimbursable expenses pertaining to the Project covered by this Agreement will be kept on a generally recognized accounting basis and made available during normal business hours upon reasonable notice. MuniFinancial's records will be available for examination and audit if and as required. SECTION XIV - MISCELLANEOUS PROVISIONS This Agreement is subject to the following special provisions: A. The titles used in this Agreement are for general reference only and are not a part of the Agreement. B. This Agreement shall be interpreted as though prepared by both parties. C. Any provision of this Agreement held to violate any law shall be deemed void, and all remaining provisions shall continue in full force and effect. D. This Agreement shall be interpreted under the laws of the State of California. E. This Agreement comprises a final and complete repository of the understandings between the parties and supersedes all prior or contemporary communications, representations or agreements, whether oral or written, relating to the subject matter of this Agreement. F. Any notices given pursuant to this agreement shall be effective on the third business day after posting by first class mail, postage prepaid, to the address appearing immediately after the signatures below. MuniFinancial Page 5 City of Palm Desert G. MuniFinancial shall not be liable for damages resulting from the actions or inactions of governmental agencies including, but not limited to, permit processing, environmental impact reports, dedications, general plans and amendments thereto, zoning matters, annexations or consolidations, use or conditional use permits, project or plan approvals, and building permits. H. MuniFinancial's waiver of any term, condition, or covenant, or breach of any term, condition, or covenant, shall not constitute the waiver of any subsequent breach of any other term, condition or covenant. I. Client acknowledges that MuniFinancial is not responsible for the performance of services by third parties, provided that said MuniFinancial has not retained third parties. IN WITNESS WHEREOF, the parties hereto have accepted, made and executed this Agreement upon the terms, conditions and provisions above stated, the day and year first above written. MuniFinancial City of Palm Desert B ��ii./�/" y _ Name: Frank G. Tripepi B y Name: Tide: President & CEO Title: Address: 27368 Via Industria, Suite 110 Address: Temecula, California 92590-3661 73-510 Fred Waring Drive Palm Desert, California 92260 MuniFinancial Page 6 City of Palm Desert Exhibit A SCOPE OF SERVICES We will approach this project in two phases: Phase I, Benefit Assessment District Formation; and, if the district is formed, Phase II, Benefit Assessment District Annual Administration. Phase I. Benefit Assessment District Formation MuniFinancial will perform the following to provide assessment district formation services to the City of Palm Desert under the provisions of the Benefit Assessment Act of 1982 for the proposed Section 29 and Monterey 170 Benefit Assessment District. 1. Consult with the developer and City staff to determine project timeline, improvement inventory and budget information for the district. This task includes one (1) project kick-off meeting, which can be done via conference call. 2. Review tentative maps, parcel maps and development plans to identify the eligible improvements to be maintained within the district, and to confirm number of parcels and Equivalent Benefit Units within the boundaries of the proposed district. 3. Prepare the district budget and coordinate with City staff to assist with accurate accounting cost recovery. Assist City staff with incorporating the actual maintenance costs into the district budget to achieve maximum cost -to -benefit equity. MuniFinancial can help to see that, as appropriate, adequate reserve funding is established and that the proper maintenance cost per square foot is reasonable and adequate for City needs. MuniFinancial will endeavor to develop a rate structure that allows for growth in costs, and includes an inflation adjustment factor in the district budget. MuniFinancial and City staff will decide upon the amount of the factor. 4. Develop the parcel database used to collect assessments. Update the database using parcel information from the current County Assessor's Office secured roll. MuniFinancial will enhance the data through parcel research and specific information provided by the City and County. 5. Prepare a special/general benefit analysis of the district to ensure that benefit factors are separate and distinct and that the general benefit portion (if any) is not included in the assessments. Prepare the assessment methodology and spread of assessments. 6. The proposed assessment methodology and spread will be presented to City Staff for review and comment. Feedback will be incorporated into a revised spread as necessary, and this revised spread presented to staff. 7. In accordance with the Benefit Assessment Act of 1982 (Section 54716) and the City of Palm Desert benefit assessement district format, MuniFinancial will prepare an Engineer's Report for the district to include the following items: • Description of services to be funded; • Definition of benefit and description of the benefit analysis; • Budget estimates of costs for maintenance of improvements; • Estimate of assessment to each parcel; • Method of spread; • A boundary map and /or assessment diagram; and • An affidavit stating the report has been prepared by a professional engineer and signed by our registered civil engineer MuniFinancial Page 7 City of Palm Desert Exhibit A 8. Update the Engineer's Report if necessary to reflect changes for the public hearing. 9. Prepare and mail notices and ballots in accordance with the requirements of Proposition 218. MuniFinancial will use the latest property owner information from the following sources: Riverside County, City of Palm Desert and the developers for the project. 10. Prepare relevant resolutions for the Intent Meeting and the Public Hearing and send to the City for review. 11. Attend one (1) Intent Meeting in front of City Council and one (1) Public Hearing in front of City Council regarding the formation of the district. 12. In conjunction with the City Clerk, tabulate the assessment ballots after the close of the Public Hearing. MuniFinancial will provide the balloting results to the City Clerk once tabulation is complete. Meetings and Client Contact We anticipate a total of three (2) meetings during the course of Phase I, as described above: one (1) Intent Meeting; and one (1) Public Hearing. Telephone conference calls are included in our scope of services and there is no limit to these calls with City Staff. Phase H. Benefit Assessment District Annual Administration If the proposed district is formed, MuniFinancial will perform the following to provide district administration services for Section 29 Benefit Assessment District: 1. Display the ability to meet the project deadlines. MuniFinancial shall also display a familiarity with the district, its boundaries, parcels, and particularities, as well as all applicable legislation (e.g., Proposition 218). 2. Review all documentation, databases, and budgets prior to performing an analysis. In so doing, a total and complete equity of assessments within the district is ensured. 3. Provide consulting, coordination, and documentation necessary to communicate the intent of the district to staff, council and property owners. 4. Prepare complete documentation for the district, including the annual Engineer's Reports and maps. 5. Provide coordination with the various County departments to ensure full completion of the levy of assessments. 6. Provide comprehensive assessment installment information for each parcel, and submit in a timely manner to the Riverside County Auditor/Controller's Office for placement on the property tax roll. This information shall be submitted in the media, format, and configuration specified by the County. 7. Research and, if possible, resubmit amounts that are rejected by the County Auditor/Controller's Office. On behalf of the District, MuniFinancial will directly invoice the property owner of record for any amount that cannot be collected by the County property tax roll. MuniFinancial Page 8 City of Palm Desert Exhibit B FEES FOR SERVICES We will perform the work described in Exhibit A for the following fees. Our fees assume a count of approximately 20 parcels. Increases to this parcel count may require a corresponding adjustment to our fees. Phase I: Benefit Assessment District Formation $11,500 fixed price Phase II: Benefit Assessment District Administration $2,000 annually Notes: • These fees include all direct reimbursable expenses associated with the project, such as travel expenses, mileage and postage. We will bill the City at our cost with no overhead mark-up for expenses such as reports and data obtained from outside sources, such as the County. Our estimate of these costs is included in the fees stated above. • Our Phase II fee is possible at this rate due to our familiarity with the City's conditions and special district requirements. The Phase II fee quoted above includes fees for providing information to interested parties. • Our fee for annual district administration will be subject to an increase, which will not exceed the change in the annual Consumer Price Index (CPI) for the applicable areas as calculated by the United States Department of Labor. • All costs associated with annual administration are fully recoverable either through the assessment levy or through payment by requestor for special services. • Additional meetings or tasks outside our scope of services will require an additional fee. For Phase I, Benefit Assessment District Formation, we will invoice the City of Palm Desert monthly based on project completion. For Phase II, Benefit Assessment District Administration, we will invoice the City of Palm Desert monthly as work progresses based on percent of project completion. MuniFinancial Page 9 City of Palm Desert