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HomeMy WebLinkAbout2016-12-13 - AGENDA REPORTS - SD ANNUAL LEVY ADMIN CONTR (2)Yl Agenda Item• 6 CITY OF SANTA CLARITA Q) AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: fAl DATE: December 13, 2016 SUBJECT: AWARD OF SPECIAL DISTRICT ANNUAL LEVY ADMINISTRATION CONTRACT TO WILLDAN FINANCIAL SERVICES DEPARTMENT: Neighborhood Services PRESENTER: Darin Seegmiller RECOMMENDED ACTION City Council: 1. Award a one-year contract to Willdan Financial Services to administer the Annual Levy of Special Districts in the annual base amount of $46,600, and authorize an annual contingency of $4,660, for a total amount not to exceed $51,260. 2. Authorize the City Manager or designee to execute all contracts and associated documents, or modify the awards in the event that issues of impossibility of performance arise, and execute all documents subject to City Attorney approval. 3. Authorize the City Manager or designee to execute up to four additional one-year renewal options beginning in year two, not to exceed the annual bid amount plus contingency and Consumer Price Index (CPI) adjustments, upon request of the consultant. The City of Santa Clarita (City) uses a consultant to perform services specific to the management of Special Assessment Districts under the provision of the Landscape and Lighting Act of 1972, Benefit Assessment Act of 1982, Articles XIIIC and XIIID of the California Constitution, Chapter 15.50 of the Santa Clarita Municipal Code, the California Health and Safety Code Section 5471, and Proposition 218. The City currently administers five Special Assessment Districts and one Stormwater Fee District. The Landscape Maintenance District (LMD) consists of 55 financially independent zones. The Drainage Benefit Assessment Areas (DBAA) are located throughout the City and Page 1 Packet Pg. 30 were established to fund the maintenance of various drainage improvements. The Streetlight Maintenance District (SMD) was established to collect funds to cover the expenses for energy and maintenance of streetlights in the City. The Open Space Preservation District was established to provide funds to acquire, preserve, improve, and maintain parks, parkland and open space within and around the perimeter of the City of Santa Clarita. The Golden Valley Ranch Open Space Maintenance District was formed as a condition of the approval of the Golden Valley Ranch development and funds the maintenance of approximately 920 acres of natural, undeveloped space. Finally, the City of Santa Clarita Stormwater Pollution Prevention Fee is levied per Chapter 15.50 of the Santa Clarita Municipal Code and the California Health and Safety Code Section 5471. To secure professional services for administration of the annul levy of the City's Special Districts, the City's Purchasing staff published a Request for Proposal (RFP) NS 16-17-08 on October 5, 2016, on PlanetBids. hi total, 22 vendors downloaded the RFP, with two firms submitting proposals that included Willdan Financial Services and Harris and Associates. Staff from the City's Finance and Special Districts' operations reviewed and scored the proposals using evaluation criteria that focused on each firm's recent experience, quality and experience of personnel, and thoroughness of the proposal. hi reviewing these proposals staff found both to be well prepared, with each demonstrating their respective firm being capable of providing annual levy services for the City. In evaluating each proposal Willdan Financial Services received the highest score based on their technical expertise and identified resources required to successfully manage the City's annual levy process. Willdan Financial Services has 28 years of experience providing special district administration services and has client agencies that include Los Angeles County, the City of Irvine and Ventura, and the Metropolitan Water District of Southern California. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT There is no impact to the General Fund. Sufficient funds for this purpose were appropriated as part of the Fiscal Year 2016-2017 Budget. ATTACHMENTS Willdan Financial Services Proposal (available in the City Clerk's Reading File) Page 2 Packet Pg. 31 Vendor Location Cost Proposal 1 (Recommended) Willdan Financial Services Temecula, CA $46,600 Proposal 2 Harris & Associates Irvine, CA $51,520 Staff from the City's Finance and Special Districts' operations reviewed and scored the proposals using evaluation criteria that focused on each firm's recent experience, quality and experience of personnel, and thoroughness of the proposal. hi reviewing these proposals staff found both to be well prepared, with each demonstrating their respective firm being capable of providing annual levy services for the City. In evaluating each proposal Willdan Financial Services received the highest score based on their technical expertise and identified resources required to successfully manage the City's annual levy process. Willdan Financial Services has 28 years of experience providing special district administration services and has client agencies that include Los Angeles County, the City of Irvine and Ventura, and the Metropolitan Water District of Southern California. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT There is no impact to the General Fund. Sufficient funds for this purpose were appropriated as part of the Fiscal Year 2016-2017 Budget. ATTACHMENTS Willdan Financial Services Proposal (available in the City Clerk's Reading File) Page 2 Packet Pg. 31 Annual Levy of Special Districts WrWILLDAN /W I LLDAN FINANCIAL SERVICES November 14, 2016 Purchasing City of Santa Clarita 23920 Valencia Boulevard Santa Clarita, California 91355 Re: Technical Proposal to Conduct the Annual Levy of Special Districts for the City of Santa Clarita To Whom It May Concern: For fiscal year 2016/2017, the City of Santa Clarita levied over $25 million to over 63 Districts/Zones. This special district revenue will be used to fund the maintenance of various improvements, landscaped facilities and streetlights; energy costs; the acquisition, preservation, improvement and maintenance of parks and open space; and prevention of stormwater pollution, to name a few. For over 6 years, Willdan Financial Services ("Willdan") has assisted the City with the annual administration of these special districts. As part of the City's continuing efforts to ensure they receive the best and most cost-effective assistance, a solicitation to evaluate firms providing annual administration services has been released. Willdan is pleased to submit the following proposal to City identifying leading experts in the field of special district administration, formation and re-engineering, the most advanced special district administration software, and a depth of resources and customer service unmatched in the industry at a competitive fee. Since our inception on June 24, 1988, Willdan Financial Services was founded on the premise of providing the items listed in the scope of services at an advanced level of customer support. In fact, our District Administration Services ("DAS") group has over 30 employees wholly dedicated to providing ongoing special district administration services for local agencies throughout the state of California. The following are a few examples that make us uniquely equipped to continue to provide these services to the City. Depth of Administration Experience — Willdan's DAS group provides professional consulting services to 200 agencies located throughout 43 counties, which encompasses 1,562 special districts that in total were levied over $690 million for fiscal year 2016/2017. As a result, our staff possesses a high level understanding of the special issues and challenges local government agencies face. This in-depth understanding allows us to assist our clients by producing "custom tailored" solutions to overcome challenges pertinent to their community; thus allowing us to bring an unmatched level of effectiveness and responsiveness to this engagement. Proposition 218 Defensibility— Since the passage of Proposition 218 in November of 1996, greater focus has been placed on assessment methodologies, determination of benefit, and corresponding assessments. Willdan has prepared hundreds of levy reports implementing various assessment methodologies tailored to the specific attributes of the districts. As such, we understand our clients' concerns with respect to the legality of assessments and have years of unmatched experience in developing and implementing appropriate assessment strategies. We are fortunate to be in a position in which our knowledge will provide a tremendous benefit to the City. Intimate Knowledge of the City of Santa Clarita — Since 2010 Willdan has provided special district administration, formation and annexation services to the City. Our staff possesses unmatched firsthand knowledge of mechanisms specific to the City, such as the consolidation of the Landscape Maintenance Districts/Zones levy submittal to the County of Los Angeles, in order to free up Fund Numbers for the City to use on new districts while still having the capability to track these Districts/Zones as separate entities in our proprietary software system. This practice allows Willdan to provide separate reportings for these areas without data manipulation. We will continue to leverage our knowledge of your operations and key staff to facilitate and expedite the requested services. The longevity of our relationship with the City will allow Willdan to conduct this engagement in a cost-effective and efficient manner. Continuing this partnership also allows City staff to focus its time on direct City operations, rather than training consultants on the nuances of the City's special districts. Tenured Core Team — Willdan understands that consistency of staff designated as "key" to a project is vital. Our approach to each project involves bringing together a committed core team to be responsive to our clients' needs to form a cohesive and flexible unit. For that reason, we have assembled the same City of Santa Clarke tenured team consisting of Senior Project Manager Stacee Reynolds, Senior Project Analyst Pauline Nguyen, and Principal Consultant Jim McGuire. These individuals will continue to provide a depth of experience and stability that will successfully fulfill the City's desired work performance. Engineering and Planning I Energy Efficiency and Sustainability I Financial and Economic Consulting I National Preparedness and Interoperability 800.755.68641 fax: 951.587.3510 1 27368 Via Industr a, Suite 200, Temecula, CA 92590 1 www.villdan.com Purchasing, City of Santa Clarita Proposal to Conduct the Annual Levy of Special Districts November 14, 2016 Page ii To satisfy the instructions outlined within the City's Request for Proposals (NS -16-17-08), the table below contains the requested firm contact information. 27368 Via Industria, Suite 200 Temecula, California 92590 Tel #:(800)755-6864/(951)587-3500 Fax #:(888)326-6864/(951)587-3510 www.willdan.com I am confident that the attached proposal clearly demonstrates that Willdan and our assigned staff members have the exact core competencies, depth of resources, experience, and capabilities required to conduct the City's engagement, with the highest level of professionalism. If you wish to discuss any aspect of this proposal, please contact Ms. Reynolds at (951) 587-3551 or via email at sreynolds(@willdan.com. As Willdan Financial Services' President and CEO, I am authorized to represent and contractually bind the firm. We look forward to hearing from you. Sincerely, WILLDAN FINANCIAL SERVICES Mark J. Risco President & CEO COMPREHENSIVE. INNOVATIVE, TRUSTED. AW City of Santa Clarita Table of Contents 1. Introduction............................................................................................................................1 ProjectUnderstanding................................................................................................................................................... 1 Similar Project Experience — Willdan and Personnel.................................................................................................... 1 2. Background............................................................................................................................2 a) Firm's Major Focus...................................................................................................................................2 b) Ownership Structure................................................................................................................................2 C) Firm Experience.......................................................................................................................................3 d) Assessment District Management Innovations........................................................................................5 e) Fiscal Year 2015/2016 Levy Statistics..................................................................................................... 7 f) District Annexation Experience................................................................................................................8 g) Project Approach and Timeline................................................................................................................ 8 h) Client References................................................................................................................................... 10 i) Los Angeles County Client Agencies..................................................................................................... 12 j) Scope of Services.................................................................................................................................. 12 3. Personnel.............................................................................................................................13 4. Tasks...................................................................................................................................18 AnnualAdministration Services................................................................................................................................... 18 AnnexationServices....................................................................................................................................................20 5. Subcontractors.....................................................................................................................26 6. City Resources....................................................................................................................26 7. Conflict of Interest................................................................................................................ 26 8. Additional Data....................................................................................................................27 Property Owner Service Representatives................................................................................................................... 27 Exceptionsof the City's RFP....................................................................................................................................... 28 RequiredDocumentation.............................................................................................................................................28 Proposal to Conduct the Comprehensive. Innovative. Trusted. Annual Levy of special Districts City of Santa Clarita 1. Introduction Project Understanding Willdan understands that the City of Santa Clarita wishes to retain a consulting firm to provide annual administration services for its 53 Landscape Maintenance Zones, 11 Drainage Area Assessment Districts, 2 Open Space Maintenance Districts, 2 Streetlight Maintenance Districts, and 1 Stormwater District. These districts were formed for the maintenance of existing or new improvements which are described in the Annual Engineer's Reports. These districts were formed for the purpose of financing the maintenance of various improvements, landscaped facilities and streetlights; energy costs; the acquisition, preservation, improvement and maintenance of parks and open space; and prevention of stormwater pollution, to name a few. In addition, the City is also seeking services pertaining to special district formations and/or annexations and the possible increase of assessment rates (identified as maximum rate increase in Request for Proposal (RFP) NS -16-17-08). Since Willdan has been administering the districts and fee identified above on the behalf of the City for the past six years, our team members possess first-hand experience working with City staff and understand the necessity for responsive, effective communication. Willdan's knowledge of the interrelationship between the Districts, their Zones of Benefit, and the corresponding assessments is unmatched. Furthermore, the project timeline provided within has been customized to the City's assessment districts and created to coincide with the City's internal deadlines. We understand that outsourcing these services is an important consideration for the City. Rest assured, our special district administration and formation experience, as well as our Proposition 218 knowledge is extensive. Willdan is a service oriented firm that delivers a quality product to public agencies and, ultimately, to the public. We specialize in approaching an agency's needs with a thorough knowledge of the start to finish requirements of the project at hand. Similar Project Experience — Willdan and Personnel For more than 28 years Willdan has kept pace with expanding local government authority to finance backbone infrastructure and public facilities using an expanded array of land -secured financing. Our special district formation experts Group Manager Chris Fisher and Principal Consultant Jim McGuire have benefited from the experience of matching the appropriate financing district type to the needs of more than 100 agencies in California. Mr. Fisher has participated in a CDIAC-sponsored working group of industry professionals who are seeking ways to clarify assessment law and promulgate industry best practices for financing districts. Insight gained through these types of efforts, in which Mr. McGuire has also participated, provides Willdan with a unique perspective that other consulting firms cannot match. Few other firms have in the last year assisted with the establishment of a Landscaping and Lighting District, Community Facilities District, Assessment District, and Property -based Business Improvement District in multiple counties across the State of California. Proposal to Conduct the Comprehensive. Innovative. Trusted. 1 Annual Levy of special Districts City of Santa Clarita 2. Background a) Firm's Major Focus Founded on June 24, 1988, Willdan Financial Services ("Willdan"), a California Corporation, is a wholly-owned subsidiary of Willdan Group, Inc. (WGI) and is one of the largest public sector financial consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of financial challenges, such as financing the costs of growth and generating revenues to fund desired services. Willdan assists local public agencies by providing the following services: • Administration of special taxes, assessments, standby charges, and utility rates; • District formation services for assessment/local improvement districts, Community Facilities Districts, Landscaping and Lighting Districts, and special taxes; • Arbitrage rebate calculations; • Continuing disclosure reports preparation and dissemination; Staff augmentation support; and • Tax increment finance district formation and amendment. In addition, we are dedicated to the improvement of our technology. Our Information Technology staff created Willdan's Municipal Administration Government Information Coordinator— MuniMagicsm— a custom software program to address the specific requirements related to administering taxes, assessments, standby charges and fees. In addition, the program allows our clients to access parcel information through the Internet with a menu -driven format. With current changes in legislation and new programs focused on Property Assessed Clean Energy (PACE), Willdan IT/Development staff is currently developing a web base version of MuniMagic that will replace the current software program. The new software system is expected to be released in the later part of 2017. Willdan's success is based on a corporate philosophy of personal service and we provide continuous support throughout the year. As you and your staff are aware we can always be reached should any questions or issues arise. Our standardized procedures and reporting formats ensure consistency within the District Administration, Federal Compliance and Financial Consulting groups and our "team approach" to servicing contracts means that if your assigned analyst is unavailable someone else will contact you without delay. Our staff of over 70 full-time employees supports our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise. b) Ownership Structure Willdan Financial Services is one of four operating divisions within Willdan Group, Inc. (WGI), which was founded in 1964, as an engineering firm working with local governments. Today, WGI is a publically owned company (NASDAQ ticker: WLDN). WGI, through its subsidiaries, provides technical and consulting services that ensure the quality, value, and security of our nation's infrastructure, systems, facilities, and environment. The firm has been a consistent industry leader in providing all aspects of municipal and infrastructure engineering, public works contracting, public financing, planning, building and safety, construction management, homeland security, and energy efficiency and sustainability services. Today, WGI has over 700 employees operating from offices in Arkansas, Arizona, California, Colorado, District of Columbia, Florida, Illinois, Kansas, Nevada, New Jersey, New York, Ohio, Oregon, Texas, and Washington. C IIGI NEC R kNGd / PI A1114ING °.�4V&,Pa ❑ICKGy CFFN:I{NCYd SIISIAINANII Ily Comprehensive. Innovative. Trusted. ;o FBIAK= d 1 r()NS111111K; SFNVN:FS IIATIONAL PRCPA RC DNC 558 INT IV1 RAHII I]Y Proposal to Conduct the Annual Levy of Special Districts City of Santa Clarita Financial Stability Willdan Group has sustained a healthy financial performance record due to the outstanding performance of the four operating divisions and a strong, dependable reputation in municipal consulting. Financial -related items are provided below that address our financial stability. Detailed financial information also appears on our webpage, http://ir.willdangroup.com/. • In business for over 50 Years • Market capitalization of $146.07 million (as of September 30, 2016) • Fiscal Year 2015 revenue of $135.1 million • $7.5 million line of credit (as of September 30, 2016) c) Firm Experience • $18.6 million in cash and cash equivalents (as of September 30, 2016) • As a publicly traded company (NASDAQ ticker: WLDN), must provide public financial information as required by the SEC Willdan's District Administration Services group address the ongoing day-to-day activities associated with the long-term collection of bonded and "pay-as-you-go" special taxes, assessments, fees, utility rates, and standby charges. These types of services demand accurate, timely, and knowledgeable treatment of many details. Subsequently, Willdan focuses on quality control and brings the advantage of current technology and knowledge of recent legislation to our clients. The following provides a snapshot of Willdan's district administration experience: Special districts administered 13563 Amount of debt annually administered Over $692 million Number of parcels levied Number of Counties/States 7,213,908 52 Counties in 4 States Unique Qualifications Willdan has several unique qualifications that sets us apart from our competitors: • Our Company was initially established to specifically offer annual district administration as a specialty service. Since this time our company has evolved and our specialty services include, economic development, grant administration, construction audits, staff augmentation, along with formations, annexations, re-engineerings, reassessments and refundings. Our organizational structure and systems have been designed to meet the needs of this niche market. • Our staff has 28 consecutive years (Over 50 years for WGI overall) of providing engineering and consulting services related to special districts. • Ample Resources — an extensive staff of over 30 individuals devoted to annual administration of special districts, including levy submittal, delinquency management, continuing disclosure, and property owner inquiries generated by such services. Our in-house staff performs district formation and administration, continuing disclosure, arbitrage rebate, apportionment, and delinquency management services. • A focus on customer service, expressly on acting as an extension of agency staff. • MuniMagic — specifically designed for district administration — is the database tool our project team utilizes to process levies, automate delinquency management, and to serve as a central source to address property owner and interested parties' inquiries. New functionality allows reporting on phone call activity. • In-house licensed engineers to generate Engineer's Reports and related documents. Proposal to Conduct the Comprehensive. Innovative. Trusted. 3 Annual Levy of special Districts City of Santa Clarita • Internet Access (optional) — Web access to parcel data is available to clients for whom Willdan administers district data. This particular function is being redeveloped into a web base system that can be easily utilized from any location. Geographical Information Systems — ability to utilize in-house, state-of-the-art GIS services, which is utilized for parcel/boundary audits, development of acreage information, and mapping/measuring improvements • Money -saving Techniques — innovative, cost effective, and comprehensive ways to meet your district formation and administration needs. Furthermore, we employ a variety of tools, including monitoring project status, implementing money -saving techniques (e.g., merging travel for meetings with adjacent agencies; employing technology [MuniMagic] to enhance speed and accuracy; and utilizing administrative and support staff to decrease time of higher priced management staff). • One-stop Shop — in addition to our administration services; financial consulting services are offered consisting of cost -of -service studies, rate analysis, district formation, fiscal impact studies, and economic analysis — all of which enhance our capabilities to serve public agencies. Impact of Recent Court Cases We are active members of the American Public Works Association (APWA), California Society of Municipal Finance Officers (CSMFO), California Municipal Treasurers' Association (CMTA), the League of California Cities (LOCC) associations, as well as an industry professional group focused on special taxes and assessments. Willdan staff regularly attends many of the seminars, conferences, and workshops held by these professional groups, in order to stay on top of the many issues faced by local agencies. In addition to these efforts, Willdan works closely with our legislative advocate, Gonsalves & Son, who represents 50 clients before the California State Legislature and has played a major role over the last 30 years in landmark legislation on behalf of our clients. They assist us with proposed modifications to current legislation that would have a beneficial bearing on the administrative and formation procedures for special assessments and taxes. Furthermore, our consultants are in communication with their legal colleagues from leading Califonia law firms, including Best Best & Kreiger and Colantuono, Highmith & Whatley, PC (formerly Colanutono & Levin), when clarification regarding Proposition 218 and other state legislative statutes specific to special district formations. The following outlines the impact of new and existing special benefit assessments and special tax case law. Willdan is also currently working with professional organizations in our industry to address the refinement of legislation related to special district financing. Assessment Case Law It is important to recognize that the 2008 California Supreme Court decision regarding special benefit assessments (Silicon Valley Taxpayers Association, Inc. v. the Santa Clara County Open Space Authority), as well as subsequent Appellate Court decisions regarding assessments (Town of Tiburon v. Bonander; Dahms v. Downtown Pomona PBID; Beutz v. County of Riverside; and Golden Hill Neighborhood Association, Inc. v. City of San Diego) had a profound impact on how future assessments are structured, and must be carefully considered for establishing any new assessment being presented to property owners. Even a simple assessment for local improvements requires a more extensive evaluation of general benefit and support of the special benefits findings than may have been necessary in the past. Willdan has prepared hundreds of Engineer's Reports implementing various assessment methodologies tailored to the specific attributes of the special district. Our firm possesses decades of unmatched experience in defending and implementing levies. Most recently, Willdan has conducted benefit analysis studies and assisted agencies with implementation strategies related to identification of special versus general benefit assessment engineering for the Cities of Lemoore, Moreno Valley, Poway, and Yorba Linda, as well as Orange County Vector Control District and McKinleyville Community Services District. Furthermore, Group Manager Chris Fisher and Principal Consultant Jim McGuire have served on several industry working groups, and have spoken at seminars on the subject of assessments and special/general benefit in light of the court cases and legislation that have come down over the past six to eight years. The working groups are focused on finding workable solutions and approaches that provide a means for public agencies to continue Proposal to Conduct the Comprehensive. Innovative. Trusted. 3 Annual Levy of special Districts City of Santa Clarita utilizing assessments, while ensuring that they are defensible and in compliance with the court decisions It is also important to note that Willdan Financial Services was the Engineer of Record for the Downtown Pomona PBID. The Court supported our approach to the special benefit proportionality documented within the report, as well as the allowance for discounts. Furthermore, an outcome from the Dahms v. Downtown Pomona PBID case was clarification related to the procedural requirements of Proposition 218. The Court upheld that the City can hold the Public Hearing on the 45`" day after the mailing of Notice of Public Hearing. Special Tax Case Law The recent appellate court decision (City of San Diego v. Melvin Shapiro) has raised some concerns regarding the validity of a property owner vote election process for districts with less than 12 registered voters that may affect the formation and use of CFDs going forward. We are currently in contact with several legal firms that specialize in district formations and related constitutional provisions to determine the full impact of this court decision and the best course of action moving forward. Key Personnel Experience To demonstrate the similar project experience of the Willdan Team proposed for the City of Santa Clarita's engagement, project descriptions for assessment engineering projects are included herein. These descriptions demonstrate the Willdan Team's ability to enhance existing assessment documentation to help ensure compliance with the applicable state legislative statue and Proposition 218. City of Poway — 1972 Act District Re-engineering Services The City of Poway funds landscaping improvements and services through revenue generated by nine Landscaping and Lighting Districts, all of which were formed prior to Proposition 218 and many of the assessments did not provide for an annual inflationary adjustment. Therefore, in order to ensure that existing district assessments and the future financial stability of specific landscape maintenance districts are appropriately addressed, the City retained Willdan to undergo an assessment engineering for these districts. The project objective is to formulate recommendations and possible implementation options for City Council's consideration for the upcoming fiscal year (2017/2018). The goal of this project is to identify appropriate and/or necessary modifications to the district and/or assessments that the City may consider for implementation based upon current case law and legislative authority. Mr. McGuire served in the role of deputy project manager, Ms. Reynolds was the task manager and Ms. Nguyen provided analytical support. City of Lemoore — Assessment District Engineering Services The City of Lemoore has two existing assessment districts that fund maintenance, operation and servicing of landscaping and lighting. The City could not adequately identify or describe the improvements maintained by these districts and they were not certain that the Engineer's Reports could withstand the heightened scrutiny resulting from recent court cases specific to assessments. The City retained Willdan's services to perform a complete evaluation and as -needed assessment engineering of the existing districts, including the zones of benefit within each. Willdan identified and quantified the improvements and services funded and made appropriate or necessary modifications to the Engineer's Reports and the structure of the districts and/or assessments that should be implemented based on current case law and legislative authority. Mr. McGuire served in the role of deputy project manager, Ms. Reynolds was the task manager and Ms. Nguyen provided analytical support. City of Pico Rivera — Withdrawal from the LA County Consolidated Sewer Maintenance District Willdan assisted the City of Pico Rivera with the withdrawal from the Los Angeles County Consolidated Sewer Maintenance District ("CSMD") and the establishment of the Citywide Pico Rivera Sewer Maintenance Assessment District ("SMAD") to replace the previous CSMD charges. The SMAD provides an ongoing revenue stream for the maintenance and operation of the sewer system and capital improvement funding within its jurisdiction, these services were previously provided through the CSMD. The SMAD was successfully established and levied beginning in fiscal 2014/2015 and the assessment is levied to over 14,700 parcels. Mr. McGuire served as the project manager for this engagement and was supported by Ms. Nguyen Proposal to Conduct the Comprehensive. Innovative. Trusted. 4 Annual Levy of special Districts City of Santa Clarita City of Moreno Valley — Needs Assessment of the Moreno Valley Community Services District The Moreno Valley Community Services District (CSD) was formed in 1984 in order to continue the provision of services that were previously provided by the County of Riverside through County Service Areas. Over the past 27 years, additional Zones of Benefit were added to the CSD to provide funding for parks and community services, street lighting, landscape maintenance, and median landscape maintenance. The CSD was experiencing revenue shortfalls in most if not all of the Zones, which required either General Fund support or a reduction in services. During the first half of 2012, Principal Consultant Jim McGuire assisted the City by performing an initial macro review and evaluation of the CSD and related charges. A comprehensive document was provided to the City outlining the findings of the analysis by Zone, as well as recommendations for their consideration and implementation. At present, Mr. McGuire is assisting the City with the withdrawal of a single Zone from the City's CSD, which requires the formation of a new 1972 Act District, development of an assessment methodology and Engineer's Report, and completion of a Proposition 218 compliant notice, ballot and Public Hearing process. Mr. McGuire serves in the role of project manager for this ongoing engagement. d) Assessment District Management Innovations In order to accurately and efficiently administer special districts on behalf of our clients, Willdan has developed a custom software program, MuniMagic, and instituted a quality assurance process. Both of these innovations are discussed below in greater detail. MuniMagic Software We are dedicated to the improvement of our technology. Our Information Technology staff created Willdan's Municipal Administration Government Information Coordinator — MuniMagicsm — a custom software program to address the specific requirements related to administering taxes, assessments, standby charges and fees. In addition, the program allows our clients to access parcel information through the Internet with a menu -driven format. With current changes in legislation and new programs focused on Property Assessed Clean Energy (PACE), Willdan IT/Development staff is currently developing a web base version of MuniMagic that will replace the current software program. The 02"24TEr."T122A� AM ` new software system is expected to be released in the later part of 2017. MuniMagic consists of 2 servers that run current Microsoft Windows Microsoft SOL Server software and contains data for more than 13 million parcels. MuniMagic includes county assessor data, and other supplementary databases identifying parcel characteristics. Willdan staff relies primarily on this tool to compute levies and, as such, has expanded our scope to provide agencies with direct access to the data contained in MuniMagic through our Internet Website at www.willdan.com/financial/. This access allows licensed agency staff to access parcel -related information, such as Assessor's Parcel Number, situs and mailing addresses, assessment and tax amounts, and updated payment status. Our project managers and analysts are fully trained in the nuances of the software, and they are using its internal quality control checklists and automated forms for greater efficiency. Additionally, Willdan can provide designated City staff members with client level access to MuniMagic. Quality Assurance Process Willdan's standard administration practice includes an additional three levels of review for our products and deliverables in which report presentation or work product dissemination is carefully scrutinized, levy data is updated from the most recent county secured roll information, all parcel changes and potential rejects are researched and reconciled, new APNs are identified, and the proposed assessment/tax amounts are recalculated and resubmitted. As demonstrated by the workflow chart below, the three supplementary levels that Willdan staff performs for all work products primarily consist of: 1. Peer review, 2. Project manager review, and Proposal to Conduct the Comprehensive. Innovative. Trusted. 5 Annual Levy of special Districts City of Santa Clarita 3. Final quality assurance manager review. Quality Assurance Levels of Review In addition, a key to our success is a designated principal consultant responsible for implementing quality control measures. Mr. Robert Quaid, a Certified Public Accountant, is instrumental in preparing quality control checklists and sign -off mechanisms for each of our administration services. These quality control measures are embedded in the latest evolution of MuniMagic and are a required element of the day-to-day analyst and project management activities within the group. The primary mission of our quality control plan is to provide staff with the technical and managerial expertise to plan, organize, implement, and control the overall quality effort, thereby ensuring the completion of a quality project within the time and budget established. The goals of the Willdan quality assurance / quality control process team are to: Establish a set of planned and systematic actions for maintaining a high level of quality in the professional services performed; Establish a consistent and uniform approach to the services performed; Ensure efficient use of resources; Emphasize quality in every phase of work; and n Quality Assurance Manager Reviews Analyst Revises Data Based on Manager Review Project Manager Reviews Analyst Prepares �V Deliverables Peer Review of Deliverables Analyst Revises Data Based on Peer Review ........... ......•.. Implement appropriate quality control measures for each work task of the project. Willdan's District Administration Group has also established a Consulting Project Review Team to review the financial and written documentation prepared in conjunction with special district formation, annexation, re- engineering, refunding and benefit assessment analysis engagements. Each work product is reviewed by a project manager that was not involved in the preparation of the deliverables. This independent reviewer will compare the documentation against a checklist specifically developed for these types of projects. Proposal to Conduct the Comprehensive. Innovative. Trusted. 6 Annual Levy of special Districts City of Santa Clarita e) Fiscal Year 2015/2016 Levy Statistics Listed below in alphabetical order are Willdan's large district administration clients. This table outlines the district and parcel counts levied in fiscal year 2015116. Central Basin Municipal Water District City of Chino Hills City of Chula Vista City of Compton City of Covina Coachella Valley Mosquito & Vector Control District Deer Springs Fire Protection District Desert Recreation District Fremont Unified School District City of Fresno City of Inglewood City of Irvine Irvine Unified School District Los Angeles County Public Works Department Metropolitan Water District of Southern California Mt. Diablo Unified School District City of Murrieta Murrieta Fire Nevada County Consolidated Fire District City of Palm Desert City of Pico Rivera City of Poway City of Rancho Cordova City of Rancho Mirage City of Rialto _ City of Rocklin City of Roseville - San Jacinto Unified School District San Joaquin Area Flood Control Agency City of Santa Clarita County of San Diego County of San Diego - Parks and Recreation Three Valleys Municipal Water District Upper San Gabriel Metropolitan Water District City of Ventura Walnut Valley Water District West Basin Metropolitan Water District West Contra Costa Healthcare District (Measures D & J) Comprehensive. Innovative. Trusted. 2 317,110 22 54,569 63 79,461 2 41,058 5 16,370 1 198,671 1 32,853 5 127,108 1 63,760 9 36,677 5 40,416 64 98,391 1 65,331 35 37,876 32 3,806,287 1 80,896 45 85,248 1 34,098 2 34,858 45 87,888 4 29,069 13 49,395 5 33,925 17 71,420 6 34,193 13 69,873 46 56,019 22 5,482 2 108,123 77 269,317 69 258,408 5 34,218 1 135,693 2 202,555 17 29,156 2 30,573 2 231,339 1 78,323 Proposal to Conduct the Annual Levy of Special Districts City of Santa Clarita f) District Annexation Experience Willdan has assisted with approximately 15 annexation projects in the last 12 months. Listed below are the agencies that we have assisted. Furthermore, Principal Consultant Jim McGuire will soon kick-off an annexation project with the City of Santa Clarita ("City") for Streetlight Maintenance District No. 1. City of Fairfield (4 annexations) City of Moreno Valley City of Lemoore (in progress) City of Murrieta g) Project Approach and Timeline City of Rialto (3 annexations) City of Santa Clarita City of Ridgecrest City of Tracy (3 annexations) Project Approach Willdan views this project as a collaborative effort between the City and our team. Our broad range of professional expertise, as well as our six years of experience working with the City, makes Willdan uniquely equipped to help you address the following key project aspects: Adherence to proposed timelines and effective communication with City staff; Required database storage and management to correctly calculate levy amounts for County tax roll submission; The review, preparation, and presentation of required documents to City Council for approval; The availability of experienced personnel to serve as an extension of City staff in resolving any requested issues; and The capacity to keep abreast of legislative changes for all services, especially those related to Proposition 218. In order to address these items, our team will work with City staff to deliver our services in the following manner 1. Meet with City staff to accurately identify specialized needs, requirements, establish timelines, communication channels, project due dates and other project specifics. Our staff takes responsibility to facilitate this communication, to provide written timelines, project deadlines, and to summarize meetings in writing. Willdan's project goals include: functioning as an extension of your staff, utilizing our extensive experience to help anticipate potential problems and pitfalls, and implementing procedures and policies both internally and in coordinating with the City, as well as with other interested parties to help ensure accuracy, timeliness and service. 2. Maintain computerized databases of all districts by utilizing our proprietary MuniMagic software. Willdan will utilize our technological expertise to present the assessment/special tax information required by the City on an Internet Website. Parcel data can be accessed 24/7 by the City through this menu driven format; thus allowing a seamless delivery of quality and timely data to ensure effective communication with City staff. The MuniMagic software has been designed to ensure full integration of all parcel information in a single software program, which warrants that our work is accurate. Furthermore, this software provides exceptional flexibility that enables our analysts to generate appropriate standard and customized reports throughout each phase of our work. 3. Update and maintain parcel databases for each district. Project Manager Stacee Reynolds and Analyst Pauline Nguyen will calculate the assessment amounts, and coordinate the timely delivery of the parcel data to the County of Los Angeles for each affected property owner. Our staff has extensive experience working with the Los Angeles County Office of the Assessor and is extremely familiar with their procedures and practices. Our strong working relationship with the County has proven to be beneficial for our clients, especially the City of Santa Clarita. Willdan was able to work with the County and City staff to reduce the number of fund numbers associated with each District/Zone by consolidation. Proposal to Conduct the Comprehensive. Innovative. Trusted. a Annual Levy of special Districts City of Santa Clarita In addition to performing tasks associated with the calculation and submittal of the assessments to the County, our staff will complete the staff reports (upon request), resolutions, Engineer's Reports, and coordinate the process of approving the Engineer's Reports and Annual Fee Report before the City Council, as specified by Proposition 218, the Landscaping and Lighting Act of 1972, the Benefit Assessment Act of 1982 and the California Health and Safety Code, Section 5473. 4. Work product will be carefully passed through a review system prior to levy submittal to the County. This review system entails peer, project manager, and quality assurance manager approval. 5. Serve as an extension of City staff by keeping abreast of City policies, as well as with other state and federal regulations. As regular attendees and speakers at municipal conferences like the California Municipal Treasurers Association (CMTA), the California Society of Municipal Finance Officers (CSMFO), the League of California Cities (LOCC), the Association of California Water Agencies (AWWA), and the California Special Districts Association (CSDA), our staff is actively involved with current events transforming legislation that affects governmental agencies throughout the state. Project Timeline Target Project Tasks the Week Provided below is Willdan's proposed timeline specific to the administration of the City's assessment districts. Day of Target Project Tasks the Week Date Kick-off Meeting: To discuss the Districts, the levy process and overall expectations — City Monday 12/19/16 Council dates, staffing changes, budgets information, district specific or changes (including the improvements and services provided, formations or annexations, changes to the assessments particularly new or increased assessments), and the anticipated levy timeline. Wednesday 01/18/17 DECEMBER CPI Released Monday 02/06/17 City provides WFS with Updated Resolutions and draft Staff Report. Monday 02/20/17 City provides WFS with Recommended LIVID/SMD Budgets. City provides WFS with Recommended Open Space Budgets (OSPD & GRVOMD) and Monday 02/27/17 DBAA Budgets. Tuesday 03/07/17 WFS develops draft Engineer's Report and begins Preliminary Assessment Evaluation. City staff and WFS discuss the budgets, proposed assessments, and revenue alternatives'', Tuesday 03/14/17 based on Preliminary Assessment Evaluation. City staff confirms and finalize list of Districts'', and Zones to be levied. City staff confirms their intent to not have any new or increased'', assessments (no property owner ballots will be required) and finalize the levy process. Thursday 03/23/17 WFS delivers First Draft Stormwater Engineer's Report. Thursday 03/30/17 WFS delivers First Draft SMD, DBAAand OSGVR Engineer's Reports. Thursday 04/06/17 WFS delivers First Draft LIVID and OSPD Engineer's Reports. WFS completes final modifications to the Engineer's Report based on City's input of the Thursday 04/13/17 proposed assessments and budgets, and finalizes all resolutions and documentation. Friday 04/14/17 WFS delivers Final Stormwater Engineer's Report. Wednesday 04/19/17 WFS delivers Final SMD, DBAAand OSGVR Engineer's Reports. Tuesday 04/25/17 WFS delivers Final LIVID Engineer's Report. Monday 05/01/17 WFS delivers Final OSPD Engineer's Report. Monday 05/08/17 All documents and agenda package finalized to Department Secretary(City). Tuesday 05/09/17 City Council holds Public Hearing of Stormwater Ordinance. Tuesday _�LL 05/16/17 Pre -Agenda Meeting (City) Monday 05/22/17 Agenda Posted (City) Tuesday 05/23/17 City Council holds Second Reading of Stormwater Ordinance. Intent Meeting: City Council adopts three resolutions: 1) Initiating Proceedings; 2) 05/23/17 Preliminary Approval of the Engineer's Reports (reviews and preliminarily approves the reports and the proposed assessments); 3) Resolutions of Intent. Proposal to Conduct the Comprehensive. Innovative. Trusted. 9 Annual Levy of special Districts City of Santa Clarita Day of Target Project Tasks I the Week ..- The Marketing Tourism District will be added into the Friday 06/02/17 Public hearing notice appears in The Signal newspaper. WFS delivers: Final Engineer's Reports (if changes or modifications to the Preliminary Friday 06/02/17 Reports were ordered by City Clerk action or if any substantial or material changes must) be made to the report on file with the City Clerk.) Monday 06/05/17 Public Hearing Agenda Reports and Resolutions to City Clerk (City) Tuesday 06/06/17 Public Hearing's Pre -Agenda Meeting (City) Thursday 06/08/17 Public Hearing Posted (City) Public Hearing: City Council holds public hearing regarding the DBAAs, LMD, OSGVR, SMD Special Districts and assessments. After the public hearing has been closed, the City Council Tuesday 06/13/17 may discuss and adopt the appropriate resolutions for the Districts and levy of assessments: 1) Resolution Approving the Engineer's Reports (as submitted or amended); 2) Resolutions Ordering the Levy and Collection of Assessments. Public Hearing: City Council holds public hearing of OSPD. After the public hearing has been closed, the City Council may discuss and adopt the appropriate resolutions for the Districts and Tuesday 06/27/17 levy of assessments: 1) Resolution Approving the Engineer's Reports (as submitted or amended); 2) Resolutions Ordering the Levy and Collection of Assessments. Tuesday 07/11/17 Extended Public Hearing: The previous hearing may be continued to this date to allow additional testimony and/or to finalize the levy process and approve the final Resolutions. City Clerk provides WFS with two certified "wet copies" of all documents to be submitted to the Tuesday 07/18/17 County with the assessment roll including the Resolution Ordering the Levy and Collection of Assessments and any Proposition 218 Compliance Documentation. Tuesday 07/25/17 WFS reviews, confirms and updates all levy database files reflected in the Engineer's Report, budgets and/or assessment rates approved by the City Council. Thursday 08/10/17 WFS submits levyto County (levytape, Resolutions and any other documentati. Thursday 08/31/17 WFS submits levy corrections to the County for all taxable exceptions. Thursday y 10/12/17 County Applied Confirmations available on DAWeb.: Thursday 10/26/17 WFS provides City with an Applied Levy Summary. Note: The graphic above is a close reproduction to the Fiscal Year 2016/2017 timeline. The Marketing Tourism District will be added into the timeline in line with the City's schedule h) Client References To further exemplify our expertise, project descriptions that are similar in nature to the City's engagement, along with client contact information, are provided below. We are proud of our reputation for customer service, and encourage you to contact our past clients regarding our commitment to excellence. City of Tracy — Special Assessment District Formation and Administration Services Since 1994, Willdan has provided special district formation and administration services, along with arbitrage rebate and delinquency management services, to the City of Tracy. Willdan staff maintains the parcel databases and administers the annual levy of special taxes/assessments for the City's Community Facilities District, Local Improvement District and Landscaping District, comprised of over 16,000 parcels. Willdan has also assisted the City with post -Proposition 218 re-engineering, successful balloting and consolidation of three of the City's existing 1972 Act Districts into a single district with multiple zones, which was initially levied in fiscal year 2003/2004. Since that time Willdan has successfully annexed several new developments to the Tracy Consolidated Landscape Maintenance District, currently comprised of over 40 zones. Contact Information: Brian MacDonald, Management Analyst II 333 Civic Center Plaza, Tracy, CA 95376 Tel #: (209) 831-6233; E-mail: brian.macDonald(a)ci.tracv.ca.us Proposal to Conduct the Comprehensive. Innovative. Trusted. 10 Annual Levy of special Districts City of Santa Clarita Los Angeles County Public Works Department — Special District Administration and GIS Services Willdan provides administration and engineering services to the Los Angeles County Department of Public Works, which was previously overseen by the County's Park and Recreation Department. Willdan maintains the parcel database for the Landscaping and Lighting Act Districts Nos. 1, 2 and 4, which is comprised of over 37,800 parcels. These districts encompass several residential and commercial developments throughout the County. Moreover, Willdan also assists in the formation and annexation of new developments, while assuring compliance with Proposition 218. Contact Information: Julian A. Garcia, P.E. 1000 South Fremont Avenue, Building A-9, 4'h Floor, Alhambra, CA 91803 Tel #: (626) 458-4183; Email: iugarcia(a)dpw.lacounty.goy City of Paso Robles — Special District Administration and Formation Services Willdan has provided professional consulting services to the City of Paso Robles since 1992. Willdan currently administers the City's Landscape and Lighting Maintenance District No. 1, Community Facilities District No. 2005- 1 and Benefit Assessment District No. 2008-1. These districts comprise an aggregate of over 4,300 parcels. In 2014, Willdan provided re-engineering services for the City's LLMD, which included over 130 zones/sub-areas. The project concluded in 2016, resulting in a reorganization of the zones/sub-areas into shared and local improvements. Willdan revised the current Engineer's Report by expanding upon the distinction between general and special benefit, updating the District budget to breakdown cost into shared and local revenue and expenditures, updating improvement information, mapping improvements, and creating a user friendly district improvement summary booklet that can be given to property owners. Based on this re-engineering analysis there were several zones/district that were balloted, 40% of which approved an assessment increase containing an annual Consumer Price Index inflator. Willdan also performed 1972 Act District formation and annexation; whereupon, we assisted the City with the annexation of new developments to the LLMD, including annexations to existing zones and the establishment of new zones, as needed. Contact Information: Freda Berman, Maintenance Services Supervisor 1000 Spring Street, Paso Robles, CA 93446 Tel #: (805) 237-3861; Email: fberman(abprcity.com City of Yorba Linda — Landscaping and Lighting Feasibility Study Willdan recently completed a detailed review and analysis of the City maintained landscaping and lighting improvements throughout Yorba Linda. Up through the late 1980's, the City established several assessment districts to fund the ongoing maintenance and operation of various public improvements. These districts were then consolidated in 1994 to establish a single Citywide Consolidated Street Lighting and Landscape Maintenance District ("District"). In response to Proposition 218, the City re -organized the District and conducted a successful assessment ballot proceeding that outlined changes to the method of assessment and established a CPI escalator. The current District and associated assessments provide a funding source for the maintenance and operation of various public improvements which generally include, but are not limited to, specific landscaped areas, street lighting and traffic signals. These improvements are separated and assessed on both a citywide and local benefit basis. Recognizing that property development and improvements associated with the District, and the infrastructure maintenance needs had changed, the City desired to re-evaluate the various improvements provided, the annual costs of maintaining those improvements (budgets), and the associated special benefit assessment allocations to properties within each of the local landscape zones. Over a period of three years, Willdan has assisted the City with re-engineering the District to establish more localized zones and a true budget for each, identifying appropriate assessment amounts without increasing the existing amount. Willdan has been working with the City and an ad-hoc committee over the last year to ballot the zones that were underfunded based on the re-engineering effort. Willdan also annually administers this District on the City's behalf, which is comprised of over 22,200 parcels levying approximately $5.8 million. Proposal to Conduct the Comprehensive. Innovative. Trusted. Zi Annual Levy of special Districts City of Santa Clarita Contact Information: Michael Wolfe, Public Works Director/City Engineer 4845 Casa Loma Avenue, Yorba Linda, CA 92885 Tel #: (714) 961-7170; Email: mwolfe(a.vorba-linda.org i) Los Angeles County Client Agencies The table below encapsulates Willdan's district administration clients located within Los Angeles County. City of Irwindale City of Westlake Village City of Artesia City of La Canada Central Basin Municipal Flintridge Water District East Hollywood Property & City of Carson City of La Puente Business Improvement District City of Claremont City of Lancaster Hollywood Entertainment District City of Compton City of Maywood Los Angeles County Department of Public Works City of Covina City of Paramount Metropolitan Water District of Southern California City of Cudahy City of Pico Rivera Sunset & Vine Business Improvement District City of Hawaiian Gardens City of Pomona Three Valleys Municipal Water District City of Hawthorne City of San Fernando Upper San Gabriel _ Metropolitan Water District City of Hermosa Beach City of Santa Fe Walnut Valley Water District Springs City of Huntington Park City of South Gate West Basin Metropolitan Water District City of Inglewood City of South Park Whittier School District j) Scope of Services Please see Section 4, Tasks, which contains a detailed scope of services. Proposal to Conduct the NA/Comprehensive. Innovative. Trusted. 12 Annual Levy of special Districts City of Santa Clarita 3. Personnel Our management and supervision philosophy for the project team is very simple; staff every position in sufficient numbers with experienced, capable personnel to deliver increased responsiveness and superior work products. With that philosophy in mind, we propose to staff this engagement with experienced professionals. We are confident that our team possesses the depth of experience that will successfully fulfill the desired work performance. Senior Project Manager Stacee Reynolds will serve as the annual administration/annexation project manager. She will be tasked with working closely with other members of the Willdan Team on the administration of the districts and annexations, as well as ensuring quality and accuracy. Ms. Reynolds will manage the generation of the annual special assessment levies, maintenance of the database, research parcel changes, field inquiries, and review the charge -exempted parcels. Ms. Reynolds will also work hand-in-hand with Mr. McGuire on annexations. Principal Consultant Jim McGuire will serve as the assessment engineering and annexation principal -in - charge. In this role, Mr. McGuire will develop the necessary benefit analysis and Engineer's Report. He will attend meetings, make presentations, and assist in tracking the project schedule, thereby ensuring the timely completion of critical documents, notices, and recordings. Mr. McGuire and Ms. Reynolds will be supported by Senior Project Analyst Pauline Nguyen. She will ensure that the appropriate data is collected, interpreted, and researched. Ms. Nguyen will also serve as lead GIS specialist for GIS mapping assignments associated with this engagement. We will also utilize the expertise of Mr. Richard Kopecky, P.E. He will serve as the assessment engineer and provide technical engineering advice. Mr. Kopecky possesses over 40 years of experience and his assistance will be available throughout the project, as needed. Furthermore, if necessary we can enlist the help of additional assessment engineers from within Willdan's Engineering division. Resumes Resumes for the key personnel identified above are presented on the following pages. Proposal to Conduct the Comprehensive. Innovative. Trusted. 13 Annual Levy of special Districts City of Santa Clarita Jim McGuire Principal Consultant Education Bachelor of Science, Principal Consultant Jim McGuire specializes in parcel and property -related revenue audits; University of California, district administration; and annexations/formations of various special districts, such as 1972 Irvine Act Landscaping and Lighting Districts, Community Facilities Districts, and Benefit Assessment Districts for streets and storm drain facilities, as well as Property and Business Areas of Expertise Improvement Districts. He is one of Willdan's lead technical advisors for Proposition 218 re - Special District Annexations, engineering evaluations, fiscal analyses, cost -recovery studies, and long-term strategic Formations, and planning for maintenance districts. Mr. McGuire possesses over two decades of experience Administration working with the public and local governments on special districts. His experience includes study sessions for staff and City Councils, along with facilitation and/or technical support for Parcel and Property -related advisory committees and property owner workshops. Revenue Audits Project Experience Feasibility Studies Cities of Yorba Linda, Moreno Valley, La Quinta, Poway, and Lemoore, McKinleyville Proposition eta Community Services District, Hollywood Entertainment District, Orange County Vector Control District and Sacramento Metropolitan Fire District: Conducted benefit 24 Years' Experience analysis studies and assisted these agencies with implementation strategies related to the identification of special versus general benefit necessary for Proposition 218 compliance and/or the re-engineering of special districts. Cities of Murrieta, Palm Desert, Indio, Rancho Mirage, Fairfield, La Quinta, Tracy, Santa Clarita, Yorba Linda and EI Centro; and County of Los Angeles: Over the past several years, Mr. McGuire has managed and provided, on an "as -needed basis" special assessment district formations and annexations, as well as Proposition 218 ballot proceedings for new or increased assessments, for each public agency identified. City of San Rafael, CA — Point San Pedro Road Median Landscaping Assessment District: In conjunction with the Point San Pedro Median Committee (an organization of local property owners), the City of San Rafael underwent proceedings to form the Point San Pedro Median Landscaping District. The City had unsuccessfully attempted to form a similar district for this area in 1988, but with Mr. McGuire's involvement and guidance during the second attempt the district was successfully formed. The revenue stream generated by the new district funded both median landscape construction (bonded assessments) and ongoing maintenance. Mr. McGuire incorporated his knowledge garnered from extensive analyses of post -Proposition 218 court decisions concerning assessments to ensure the defensibility of new proposed assessments; identified special and general benefits; developed a comprehensive budget for construction of improvements and ongoing maintenance; and employed his experience in developing assessment methodologies to develop a Method of Apportionment that addressed not only the proportional benefit to properties, but also general benefit costs associated with the improvements. In addition to the engineering required for this complex district, Mr. McGuire and his team developed and mailed the required notices and ballots for the assessments, and assisted in public outreach and educational efforts that helped ensure a positive outcome. Comprehensive. Innovative. Trusted. 14 Proposal to Conduct the Annual Levy of Special Districts City of Santa Clarita Stacee Reynolds Senior Project Manager Education Master or science, Ms. Reynolds is a senior project manager in Willdan's District Administration Services group. University of Phoenix She will be responsible for the administration of the City's assessments and fees. Ms. Reynolds will also work directly with Mr. McGuire on the coordination of assessment Bachelor of science, engineering assignments associated with this engagement. LaSalle University Ms. Reynolds' responsibilities include the administration of Community Facilities Districts, Areas of Expertise Local Improvement Districts, Benefit/Maintenance Assessment Districts, and other special BenefiUMaintenance districts. She has experience creating and maintaining district databases, preparing annual Assessment Districts assessments, charges and taxes, calculating prepayments, assisting with district analyses for refunding purposes, preparing bond calls, analyzing flow of funds, providing customer Community Facilities service to property owners, and overseeing the GIS team that creates and audits boundaries Districts for new and existing clients. Marks -Roos Pools Ms. Reynolds has over 26 years of combined accounting, finance, and project management experience. Prior to joining Willdan, Ms. Reynolds was a contract system specialist with SAP Local Improvement Districts Public Services in Washington, DC, where she managed a number of government agency contracts. Professional Affiliations Project Experience California a Officers y of ers Cit of Paso Robles, CA — Assessment Re-engineering: Ms. Reynolds recent) Municipal Finance Officers y 8 g' y y completed the re-engineering of the City's EI Paso de Robles Landscape and Lighting Municipal Management Maintenance District No. 1. It was the City's desire to combine shared improvement areas, Association of Southern where feasible, in order to simplify the overall district structure and to develop appropriate California assessments for optimal service levels originally planned for all areas in the District. She assisted in the preparation of the benefit assessment analysis, conducted the community 14 Years' Experience outreach meetings, prepared the Engineer's Report, staff reports, resolutions and ballots for the areas designated as underfunded in the District. Upon completion of the project, 40 percent of the underfunded Zones approved the new increased assessment, which included an annual CPI inflator. This was the highest approval percentage in the last ten years for the City's District. Cities of Indio, Rocklin, Stockton and Tracy, CA: Assisted each city with the refunding of special tax bonds and performed annexation work for the City of Tracy. City of Santa Clarita, CA — Special District Administration Services: Ms. Reynolds supervises and assists in the daily administration of the City's Community Facilities District, Open Space Preservation District (54,811 parcels), Landscape Maintenance District (approximately 50 zones comprised of 87,000 parcels), Streetlight Maintenance Districts (approximately 54,811 parcels), Drainage Benefit Assessment Districts (1,899 parcels), and Stormwater Pollution Prevention Fee District (62,000 parcels). Her duties include the review of the annual Engineer's Reports, resolutions, updated parcel databases, fees and submission of levies to the County of Los Angeles. Ms. Reynolds has also been part of the Willdan Team tasked with the preparation of a benefit review and analysis of potential modifications to the special districts. The objective of these analyses is to ensure compliance with applicable assessment legislation, Proposition 218 and recent changes to applicable case law. ItComprehensive. Innovative. Trusted. 15 Proposal to Conduct the Annual Levy of Special Districts City of Santa Clarita Pauline Nguyen Senior Project Analyst Education Bachelor of science, Ms. Nguyen serves as a senior project analyst within Willdan's District Administration Management Information Services group. She assists in the research and analysis specific to local government System, San Jose State University financial issues related to the annual administration of special districts, including document data entry and updating, database management, research and report preparation. She also Bachelor of science, Finance, provides general information on questions pertaining to assessment districts and special San Jose State University taxes (such as Mello Roos Pools), as well as the status of property delinquencies. Areas of Expertise Ms. Nguyen is also responsible for projects involving the use of Geographical Information System technology (GIS). GIS is utilized to generate maps, shapefiles, boundaries, plot Geographical Information System (GIS) Mapping landscaping, lighting, and other public improvements; and create visual aids, tables, and exhibits for special district analyses, memoranda, and reports. In addition, quality control Landscaping and Lighting analyses are performed in relation to secured roll data; and by utilizing spatial and Districts attributable data within spreadsheets, data sets, client maps, and shapefiles, existing parcel specifications and improvement data are identified, audited, and verified. Benefit Assessment Districts Ms. Nguyen came to Willdan with over 10 years of combined finance and information Community Facilities Districts technology experience. Prior to joining Willdan, she served as an information technology specialist with KeyPoint Credit Union in Santa Clara, California, working with vendors and 10 Years' Experience end users to develop and administer large financial databases. Project Experience Los Angeles County Department of Public Works, CA: Ms. Nguyen administers the workflow for the Los Angeles County Department of Public Works. Her duties include maintaining the parcel databases for 37 Landscaping and Lighting Districts associated with several residential and commercial developments throughout the County; and assists in preparing the annual Engineer's Report and levying assessments for over 39,000 parcels, while assuring compliance with Proposition 218. City of Santa Clarita, CA: Ms. Nguyen assists in the administration of the City's Community Facilities District, Open Space Preservation District (comprised of 54,811 parcels), Landscape Maintenance District (approximately 87,000 parcels), Streetlight Maintenance Districts (approximately 54,811 parcels), and Benefit Assessment Districts (comprised of 8 districts and 1,516 parcels). Her duties include the review of district budgets, the preparation and update of a parcel database, drafting resolutions, assisting with the preparation of the annual Engineer's Reports, updating and transferring the levy data to the County, and researching exceptions. City of Compton, CA: Ms. Nguyen administers the City's Landscaping and Lighting District and sewer charges, as well as assists in preparing the annual Engineer's Report, updating parcel changes, and submitting levy charges for over $5 million on nearly 36,000 parcels. City of Rocklin, CA: Ms. Nguyen assists with the annual administration of the City's Landscaping, Lighting and Park Maintenance Districts. The work for this project entails computation of assessments for each parcel; placement of the assessments on the County Assessor's tax roll; Proposition 218 compliance, verifying parcel data affecting each assessment parcel, including database maintenance and researching parcel changes; and preparing and providing the annual Engineer's Report on over 35,000 parcels. ffComprehensive. Innovative. Trusted. 16 Proposal to Conduct the Annual Levy of Special Districts City of Santa Clarita Metropolitan Water District of Southern California (Standby Fees, Assessment Engineer): Willdan Engineering ("WE") annually assists Willdan Financial Services in administering and placing on the tax roll over 950,000 parcels of MWD's Readiness -To - Serve (RTS) Standby Charge for each of its 26 -member agencies. Willdan is also responsible for reviewing requests for exemption from the RTS by property owners and preparing a report on our findings to MWD. City of Rancho Mirage, CA: Magnolia Assessment District, Magnesia Falls City of Cathedral City, CA: Dream Homes, East 35th Avenue and Cove Assessment Districts City of La Quinta, CA: Assessment District No. 2000-2 City of Palm Desert, CA: Section 29 Improvement District, Monterey 170 / Section 29 Drainage Benefit Assessment District (1982 Act) City of Santa Clarita, CA: Golden Valley Assessment District, Santa Clarita Mall Community Facilities District, Vermont/Everett Road Improvement District, and the Soledad Canyon Road Improvement District City of Irvine, CA: Stonegate Assessment District, Orchard Hills Assessment District City of Irvine, CA: Portola Springs and Orchard Hills Improvement Districts, 1913/15 Act Subdivision Improvements Anaheim Convention Center, CA: Mello -Roos and 1913/15 Acts ffComprehensive, Innovative. Trusted. 17 Proposal to Conduct the Annual Levv of Special Districts Richard Kopecky, PE Education Assessment Engineer BachelorScience, Civil Enginering, Mr. Kopecky, manages engineering, building and safety, and public works departments University of Illinois for several Southern California cities. As a City's designated city engineer, building official and/or public works director, he has directed the full services of these departments, including Areas of Expertise Assessment Districts, budgets, building and safety plan check and inspection, City Civil Engineer engineering, City traffic engineering, Community Development Block Grants, construction management and surveying, development and infrastructure review, disaster response and Administration Engineering recovery, fee studies and special district formation, landscape architecture, planning, public Development, including works design, and water and wastewater design. He also developed and implemented the Drainage, Roads, sewers, capital improvement program on behalf of client agencies as well. Soils/Geology, and Water Mr. Kopecky has served as the deputy building official for the City of Santa Clarita; plus, he Certification was the City Engineer for the City of Lancaster for 11 years; the City of Santa Clarita for 3 California Professional years; the City of California City for 2 years; the City of Big Bear Lake for 2 years; and the Engineer, #16742 City of Indian Wells for over 7 years. 41 Years' Experience Mr. Kopecky possesses extensive experience in developing solutions for the problems and challenges experienced by engineering and building and safety departments. Assessment Engineering Experience Acting in the capacity of Assessment Engineer and, in many cases, in tandem as civil engineer in both the designing and forming of a multitude of 1913/1915 Act Assessment Districts, Mr. Kopecky's related project experience includes the following. Metropolitan Water District of Southern California (Standby Fees, Assessment Engineer): Willdan Engineering ("WE") annually assists Willdan Financial Services in administering and placing on the tax roll over 950,000 parcels of MWD's Readiness -To - Serve (RTS) Standby Charge for each of its 26 -member agencies. Willdan is also responsible for reviewing requests for exemption from the RTS by property owners and preparing a report on our findings to MWD. City of Rancho Mirage, CA: Magnolia Assessment District, Magnesia Falls City of Cathedral City, CA: Dream Homes, East 35th Avenue and Cove Assessment Districts City of La Quinta, CA: Assessment District No. 2000-2 City of Palm Desert, CA: Section 29 Improvement District, Monterey 170 / Section 29 Drainage Benefit Assessment District (1982 Act) City of Santa Clarita, CA: Golden Valley Assessment District, Santa Clarita Mall Community Facilities District, Vermont/Everett Road Improvement District, and the Soledad Canyon Road Improvement District City of Irvine, CA: Stonegate Assessment District, Orchard Hills Assessment District City of Irvine, CA: Portola Springs and Orchard Hills Improvement Districts, 1913/15 Act Subdivision Improvements Anaheim Convention Center, CA: Mello -Roos and 1913/15 Acts ffComprehensive, Innovative. Trusted. 17 Proposal to Conduct the Annual Levv of Special Districts City of Santa Clarity 4. Tasks Provided within this section is a detailed description of the tasks associated with the Annual Administration of specific City assessments and Assessment Annexation Projects. Annual Administration Services Willdan offers to perform the following tasks in order to properly administer the following: • Drainage Benefit Assessment District Landscape Maintenance District • Streetlight Maintenance District Open Space Preservation District • Golden Valley Open Space Preservation District Tourism Marketing District • Stormwater Pollution Prevention Fee Please note, a few of the tasks below may not be applicable to the City's stormwater fee 1. Schedule an annual kick-off meeting with City staff to review the existing district information. Identify and discuss possible changes to the districts for the upcoming fiscal year, including budget issues, annexations, modification or expansion of district improvements, as well as legislative changes that may impact the district. 2. Prepare an annual levy timeline identifying key dates and timeframes for pertinent tasks throughout the levy process. This timeline will be reviewed and discussed with City staff. As needed, the timeline will also be adjusted to address the City's scheduling requirements or proposed district changes. 3. Review the district budgets provided by the City, and coordinate with City staff to assist with accurate cost - recovery accounting. Willdan will assist City staff to prepare and review the annual district budgets; thus ensuring the appropriate incorporation of maintenance contract costs, administrative expenses, material costs, capital costs, and other incidental costs into the district budget to achieve maximum cost -to -benefit equity. Willdan can help verify that adequate and appropriate fund balances are identified. In addition, Willdan will use the updated parcel databases for the districts to provide estimates of the assessment revenue for the upcoming fiscal year. These revenue estimates will be incorporated into the fiscal year budgets for the district, which will be analyzed to determine required changes in the level of assessment or funding from other sources. 4. Maintain and update a parcel levy database by using the parcel information from various sources. As new data becomes available, update the database and enhance the data through parcel research using current secured roll information, County Assessor maps, various third -party resources, and specific information provided by the City (e.g., up-to-date map approval status, building permits or certificate of occupancy data). Updates to the database will include those necessitated by the addition and/or removal of parcels, land subdivisions and merges, ownership and mailing address changes, and adjusted benefit unit information. This database will then become the source for the calculation of the annual district assessments/charges. Based upon their assigned benefit, our MuniMagic software will be used to calculate the annual assessments/charges for the parcels within the district. The same data can then be used to reproduce databases of assessed parcels in hardcopy, CD ROM, or other electronic formats. The County secured roll, Assessor's parcel maps, or any other necessary or required data sources for the calculation of the annual assessments/charges will then be purchased by Willdan. 5. Draft resolutions (if requested) to be adopted in conjunction with the annual levy of assessments/charges by utilizing resolutions previously adopted by the City for the annual levy process. If requested, assist City staff in the preparation of staff reports. The City acknowledges that the City Attorney will review all resolutions for form and content, as is intended. 6. Attend the annual public hearing and be available to answer any questions. Comprehensive. Innovative. Trusted. 18 Proposal to conduct the �!i!!J� Annual Levy of Special Districts City of Santa Clarity 7. Prepare in accordance with the Landscaping and Lighting Act of 1972, the provisions of California Constitution Article XIIID (Proposition 218), and the district's annual Engineer's Report. The Engineer's Report will include the following required items, which will be tailored to the specific district: • A general description of the district, which may include key historical facts, zone designations, and discussion of district benefits. • A description of the plans and improvement specifications (this may apply to documents on file at the City). • An estimate of the costs of the improvements (budget). • A description of the Method of Apportionment (assessment calculation). • A diagram of the district (provided by the City). • An Inventory map (provided by the City). • An assessment of the estimated cost to each parcel. 8. Provide the City with two (2) bound copies of the full Engineer's Reports, and one (1) bound copy of the confirmed assessment rolls. 9. Provide assessment/charge amounts for each parcel by Assessor's Parcel Number to the County Auditor/Controller's Office in the media, format, and configuration required by the County for placement on the annual property tax roll. 10. Provide resolutions ordering the levy, collection of assessments/charges, and any other necessary information to the County Auditor/Controller's Office. 11. Research the exceptions upon receipt of a parcel exceptions list from the County; and update parcel number changes, as well as report the revised parcels and updated levy amounts to the County. As necessary, Willdan will prepare for City staff additional County -required correspondences relating to the submittal, correction, or removal of assessments/charges to the County tax roll. 12. Provide the City with a levy summary report comparing budget amounts to the actual applied levy. This levy summary will include a description of the reasons for any significant variances between the amounts budgeted, and the amounts actually applied to the County tax roll. 13. Act as primary contact (at the discretion of the City) to answer property owner questions regarding the districts and assessments. Willdan typically provides the County our toll-free telephone number for inclusion on the tax bills for property owners to call with questions. 14. (Optional): Prepare and mail invoices (handbills) to all property owners whose proposed annual assessment/charge for their parcel could not be applied to the County tax roll (parcels for which the County does not generate a tax bill). These invoices would be provided in two installments, similar to the County tax bills, and would be payable directly to the City. This is an optional service, and the cost associated with this service is not included in the annual fee; but may be provided at our then current hourly consulting rates (see "Additional Services" section), plus expenses. 15. Monitor and track delinquent charges, and bi-annually provide updated delinquency information. Client Responsibilities — Annual Administration As required by law, the City is responsible for publishing the Public Hearing notices in the local newspaper, as well as for the posting of these notices. Willdan will rely on being able to obtain the following information from the City: • Annual budget information, including estimated fund balances. • Changes, modifications, or updates to the improvements described in the previous year's Engineer's Report(s). • Copies of the resolution(s) and other documentation required by the County for submittal of the annual levy. Comprehensive. Innovative. Trusted. 19 Proposal to conduct the Annual Levy of Special Districts City of Santa Clarity • Updated boundary diagrams, as required. • Pertinent development information, if needed. Annexation Services Two work plans are provided within this subsection since the tasks that Willdan would follow for an annexation to the City's Streetlight Maintenance District No. 1 (SMD) is slightly different than the tasks associated with an annexation to the Drainage Benefit Assessment Areas and/or Landscape Maintenance District. This nuance is specific to Willdan, since Mr. McGuire and his team have worked with the City for a number of years on annexation, re-engineering and formation projects. Furthermore, Mr. McGuire has assisted the City with the streamlining of the SMD annexation process which has allowed for our abbreviated work plan. Rest assured, regardless of the work plan followed, the associated tasks will be performed pursuant to the applicable state legislation and the provisions of the California Constitution. Streetlight Maintenance District No. 1 Annexation Services The following outlines the tasks associated with annexation of new development to SMD. As previously stated, Willdan has worked with the City for a number of years on similar engagements resulting in the development of a standardized annexation report that can typically be utilized for future projects of this nature. Due to the streamlining of the annexation process, the following scope of services has been abbreviated. Task 1: Annexation Documentation and Database Development Objective: The initial task for each territory to be annexed ("project") will be to obtain from the City all related development and improvement plans necessary to update the Engineer's Report and parcel database. Description: Utilizing documentation provided and electronic parcel information available to Willdan for the project, establish and update, as needed, an annexation assessment database utilizing available resources; including the County Secured Roll, City data and third -party data, such as CD -data. The updated database will contain all property within the project area (development) proposed to be annexed into the City's SMD No. 1. We will also identify potential benefits to nearby properties that may not be a part of the annexation Task 2: Development of Benefit Nexus and Assessments Objective: Develop appropriate benefit findings (general versus special), cost allocation (method of apportionment) and the proposed assessments based on the provisions of the California Constitution and current case law. Description: Willdan will establish an appropriate methodology for the apportionment of costs. The benefit nexus and cost allocation developed for the annexation area/development must be in compliance with the provisions of the California Constitution and consistent with applicable recent court decisions, specifically focusing on the identification and quantification of special and general benefits. Task 3: Prepare Engineer's Report Objective: Preparation of a comprehensive Engineer's Report based on findings, recommendations and assessments established during prior tasks. Description: Utilizing the Engineer's Report that has been honed over the past several years, prepare an updated Report that integrates the method of apportionment and benefit analysis specific to the annexation area/development to be annexed to the SMD. This report, prepared under the applicable state legislative statute and the provisions of the California Constitution Article XIIID (Proposition 218), will be the basis for the assessment ballots and notices to be mailed to property owners. The Engineer's Report will contain the following information. • Plans and specifications that describe the area of special benefit, the proposed assessment, and the improvements. WComprehensive. Innovative. Trusted. 20 Proposal to conduct the �!i!!J� Annual Levy of Special Districts City of Santa Clarita • Method of apportionment that outlines the special benefit conferred on properties from the improvements, as well as calculations used to establish each parcel's proportional special benefit assessment; plus, a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years. • Budget that outlines the costs and expenses to provide, service and maintain the improvements, including authorized incidental expenses. • Assessment diagram that identifies the boundaries of the proposed area to be annexed to the district. • Assessment roll that contains each of the Assessor Parcel numbers to be annexed to the district and the proportional new maximum assessment. • Affidavit stating that a professional engineer has prepared the report. Deliverables: One (1) draft Engineer's Report for review by City staff prior to submittal to the City Council for approval. Task 4: Assist with Resolution Preparation Objective: Review the necessary resolutions for the Intent Meeting and Public Hearing. Description: We will review drafts of each resolution prepared by City staff prior to the City Council meeting agenda deadline. It is anticipated that the following four (4) resolutions will be required for City Council action and approval. Intent Meeting (two [2] resolutions): • Resolution Initiating Proceeding, and Resolution of Intention (preliminarily approves the proposed assessments outlined in the Engineer's Report; sets the Public Hearing date; and calls for mailed ballots). Public Hearing (two [2] resolutions): • Resolution Declaring Results of the Balloting; and • Resolution Confirming the Annexation of Territory, Approving the Engineer's Report; confirming the Assessment Diagram and ordering the levy and collection of assessments. It has been our experience that City staff typically prepares the resolutions necessary for assessment district formation/annexation projects. Although Willdan can prepare each of the necessary resolutions on behalf of the City, upon request. Deliverables: We anticipate a total of four (4) resolutions will be required for City Council action and approval. Task 5: Prepare Notices and Ballots Objective: Prepare the necessary Notice of Public Hearing and assessment ballots in compliance with the provisions of the California Constitution (Proposition 218). Description: Drawing upon our prior SMD annexation experience, Willdan will prepare drafts of the required Notice of Public Hearing and assessment ballot that will eventually be mailed to the property owner of record subject to the proposed new assessment. Draft copies of these documents will be sent to the City for review and comment prior to finalization of the documents. Deliverables: Draft notice and ballots will be delivered to City staff for review and comment prior to the preparation of the final versions for printing and mailing. In addition, if warranted, Willdan will prepare and provide the City with a consent and waiver document. Task 6: Print and Mail Notices and Ballots Objective: Print and mail notices and assessment ballots. it Comprehensive. Innovative. Trusted. 21 Proposal to conduct the Annual Levy of Special Districts City of Santa Clarity Description: After finalizing the notice and ballots with City staff and upon the City Council's adoption of the Resolution of Intention, we will coordinate and facilitate the printing and processing of the notices and ballots for mailing. A return #9 envelope addressed to the City Clerk will be included for the convenience of the property owner to mail back the assessment ballot. Our proposed fee includes the estimated expense to print and mail the notices and ballots (including postage), based on a standard layout that includes each piece being printed on a single, double - sided page. Deliverables: Notices and ballots mailed to property owners of record within the proposed annexation area. Mailing of the ballots and notices will be completed a minimum of 45 days prior to the Public Hearing date as required by law. Drainage Benefit Assessment Areas and/or Landscape Maintenance District Annexation Services Outlined below is the work plan associated with the annexation of new development to the City's existing Drainage Benefit Assessment Areas and/or Landscape Maintenance District. Task 1: Annexation Documentation and Database Development Objective: The initial task for this project will be to obtain from the City and/or developer all related development and improvement plans necessary to prepare an Engineer's Report and to establish an electronic database. The updated database will contain all property within the project area proposed to be annexed into the applicable existing district. Description: Utilizing documentation provided and electronic parcel information available to Willdan for the project area, establish and update as needed, an annexation assessment database utilizing available resources; including the County Secured Roll, City data and third -party data, such as CD -data. This database will contain properties proposed to be annexed to LLD No. 2012-01 and will incorporate, as needed, key parcel information and characteristics relevant to the development of the method of apportionment and necessary for implementing the proposed assessments and balloting. We will also identify potential benefits to nearby properties that may not be a part of the annexation Deliverables: None at this time. Summaries and specific elements of this task will eventually be incorporated into the Engineer's Report, assessment roll and ballots. Task 2: Establish Comprehensive Improvement Matrix and Budgets Objective: Work with City staff to identify the improvements specifically associated with the development to be included in the annexation territory. Based on this improvement matrix prepare a comprehensive annual budget to achieve maximum cost -to -benefit equity and ensure the long-term financial stability and funding of the improvements. Based on our knowledge of the City's landscape maintenance districts, we recognize that the annexation process for new developments to the City's existing District may likely involve developing proportional assessments associated with the development's benefit from the broader shared improvements of Zone 2008-1, as well as the local improvements associated with the development that may be in the form of an annexation to an existing local Zone or the establishment of a new Zone. Description: In cooperation with City staff, identify and quantify the specific improvements to be installed and maintained in connection with the development of properties in the annexation territory, as well as any other improvements in the vicinity that may be funded in whole or in part through the proposed assessments. In addition, discuss and identify any proposed improvements that may benefit surrounding parcels and/or future developments in the area and prepare an appropriate annual budget for the maintenance and operation of such improvements. The budgets will be developed in cooperation with City staff utilizing Willdan's budget modeling software that utilizes standard per unit costs for such improvements and the City's historical maintenance costs. The development of the budgets may incorporate, but is not limited to: regular annual maintenance and energy expenses (if applicable); specific servicing cost and administrative expenses provided by the City; long-term repair and rehabilitation costs; and any other funding deemed appropriate to provide the improvements. "Comprehensive. Innovative. Trusted. 22 Proposal to conduct the Annual Levy of Special Districts City of Santa Clarity The proposed budget prepared during this task should be comprehensive and identify the full long- term cost of providing the improvements, including appropriate reserve funding. In addition, the budget will likely identify costs considered to be general benefit and available funding from other sources. The goal of this task is to accurately depict the true funding requirements to operate and maintain the improvements and to quantify and separate general benefit and the proportional special benefit to properties within the annexation territory. Meetings: None. It is anticipated that the City's assistance and input for this task will be provided through conference calls and e-mails. Deliverables: None at this time. The resulting budget information along with the method of apportionment developed in Task 3 will be discussed with City staff in conjunction with the preparation of the Engineer's Report. Task 3: Development of Benefit Nexus and Assessments Objective: Develop appropriate benefit findings (general versus special), cost allocation (method of apportionment) and the proposed assessments based on the provisions of the California Constitution and current case law. Description: Willdan will establish an appropriate methodology for the apportionment of costs. To the extent possible, the method of apportionment established for any new formation or annexation will mirror the method of apportionment previously implemented for such districts. However, ultimately the benefit nexus and cost allocation developed for each district formation and/or annexation must be in compliance with the provisions of the California Constitution and consistent with applicable recent court decisions, specifically focusing on the identification and quantification of special and general benefits. In some cases, it may be necessary to deviate from the method of apportionment historically utilized and/or the allocation of general benefit costs the City would be obligated to fund from other sources. Deliverables: None. Any significant funding or apportionment issues that are identified will be discussed with City staff before proceeding with the annexation process. Task 4: Prepare Engineer's Report Objective: Preparation of a comprehensive Engineer's Report based on findings, recommendations and assessments established during prior tasks. Description: Based on findings and results from the previous tasks and discussions with City staff, prepare an Engineer's Report that integrates the method of apportionment and benefit analysis established in prior tasks. This report, prepared under the applicable legislative statute and the provisions of the California Constitution Article XIIID (Proposition 218), will be the basis for the assessment ballots and notices to be mailed to property owners. The Engineer's Report will contain the following information. • Plans and specifications that describe the area of special benefit, the proposed assessment, and the improvements. • Method of apportionment that outlines the special benefit conferred on properties from the I mprovements, as well as calculations used to establish each parcel's proportional special benefit assessment; plus, a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years. • Budget that outlines the costs and expenses to provide, service and maintain the improvements, including authorized incidental expenses. • Assessment diagram that identifies the boundaries of the proposed area to be annexed to the district. • Assessment roll that contains each of the Assessor Parcel numbers to be annexed to the existing assessment district and the proportional new maximum assessment. Comprehensive. Innovative. Trusted. 23 Proposal to conduct the Annual Levy of Special Districts City of Santa Clarity • Affidavit stating that a professional engineer has prepared the report. Deliverables: One (1) draft Engineer's Report for review by City staff prior to submittal to the City Council for approval. Task 5: Assist with Resolution Preparation Objective: Review the necessary resolutions for the Intent Meeting and Public Hearing. Description: We will review drafts of each resolution prepared by City staff prior to the City Council meeting agenda deadline. It is anticipated that the following four (4) resolutions will be required for City Council action and approval. Intent Meeting (two [2] resolutions): • Resolution Initiating Proceeding, and Resolution of Intention (preliminarily approves the proposed assessments outlined in the Engineer's Report; sets the Public Hearing date; and calls for mailed ballots). Public Hearing (two [2] resolutions): • Resolution Declaring Results of the Balloting; and • Resolution Confirming the Annexation of Territory; Approving the Engineer's Report; confirming the Assessment Diagram and ordering the levy and collection of assessments. It has been our experience that City staff typically prepares the resolutions necessary for assessment district formation/annexation projects. Although Willdan can prepare each of the necessary resolutions on behalf of the City, upon request. Deliverables: We anticipate a total of four (4) resolutions will be required for City Council action and approval. Task 6: Prepare Notices and Ballots Objective: Prepare the necessary Notice of Public Hearing and assessment ballots in compliance with the provisions of the California Constitution (Proposition 218). Description: Utilizing our experience with similar projects, Willdan will prepare drafts of the required Notice of Public Hearing and assessment ballot that will eventually be mailed to the property owner of record subject to the proposed new assessment. Draft copies of these documents will be sent to the City for review and comment prior to finalization of the documents. Deliverables: Draft notice and ballots will be delivered to City staff for review and comment prior to final versions prepared for printing and mailing. In addition, if warranted, Willdan will prepare and provide the City with a consent and waiver document. Task 7: Print and Mail Notices and Ballots Objective: Print and mail notices and assessment ballots. Description: After finalizing the notice and ballots with City staff and upon the City Council's adoption of the Resolution of Intention, we will coordinate and facilitate the printing and processing of the notices and ballots for mailing. A return #9 envelope addressed to the City Clerk will be included for the convenience of the property owner to mail back the assessment ballot. Our proposed fee includes the estimated expense to print and mail the notices and ballots (including postage), based on a standard layout that includes each piece being printed on a single, double - sided page. Deliverables: Notices and ballots mailed to property owners of record within the proposed annexation territory. Mailing of the ballots and notices will be completed a minimum of 45 days prior to the Public Hearing date as required by law. It Comprehensive. Innovative. Trusted. 24 Proposal to conduct the Annual Levy of Special Districts City of Santa Clarita Task 8: Council Meeting Objective: Attend either the Intent Meeting or Public Hearing to answer questions posed by the City Council. Description: At the City's request, a Willdan representative will attend either the Intent Meeting or the Public Hearing to be available to answer questions from the City Council regarding the Engineer's Report and/or annexation proceeding. We recognize that over the years, the City has processed numerous district annexations and formations and typically the Intent Meeting for this type of project is a procedural formality and Willdan's attendance at the Intent Meeting is not typically required. Therefore, our typical scope for formations/annexations assumes that Willdan will not need to attend this Council Meeting. However, at the City's request, the Willdan project manager or representative can attend the City Council Intent Meeting. Meetings: One (1) City Council session. Our pricing is based upon the assumption that the Willdan project manager will attend a single Council meeting, but at the City's request will also be available to attend additional meetings as noted the in the Cost Proposal. Client Responsibilities — Annexation Services To assist the Willdan Team, the City will provide the following information and/or services: • Detailed listings and descriptions of the improvements, services and/or maintenance to be funded, which needs to be reviewed during the initial part of this project. Provide (as needed) pertinent budget information, which may include estimated construction costs, estimated service costs or rates, specific replacement costs and/or capital expenditures, City overhead, and available funding from other sources that can be used to offset costs. • Various maps or diagrams (either electronically or in hardcopy) of the improvement areas and/or parcels to be included in district. • Prepare all internal memos, staff reports, and other supporting documents necessary for Council agendas. • Arrange for any required publication notices of City Council meetings or Public Hearing in the local newspaper. • Review the draft reports and resolutions before the final documents are submitted for the Council agenda packets. This review is usually performed by department staff, but may include the City's legal counsel. Requested changes shall be submitted to Willdan in writing. Willdan will rely on the validity and accuracy of the City's data and documentation to complete our analysis. We will further rely on the data as being accurate without performing an independent verification of accuracy, and that we will not be responsible for any errors that result from inaccurate data provided by the client or a third party. Legal Opinions: In preparing the resolutions, notices and ballots, Willdan will provide our professional expertise. Since we do not practice law, we ask that the City's legal counsel review the documents. We will assist your attorney in identifying any pertinent legal issues. it Comprehensive. Innovative. Trusted. 25 Proposal to conduct the Annual Levy of Special Districts City of Santa Clarita 5. Subcontractors Willdan will not require the assistance of a subcontractor in order to complete the scope of services identified within the City's RFP for the Annual Levy of Special Districts. 6. City Resources Willdan does anticipate that City services and/or City staff resources will be necessary to supplement the scope of services identified herein in order to achieve the desired project objectives. Although we have identified a list of information (titled "Client Responsibilities") specific to Annual Administration and Annexation Services that will need to be provided by City staff in order to properly execute the tasks identified. Although due to our existing working relationship with the City, the fulfillment of these data requests will not be labor intensive on the part of either party. 7. Conflict of Interest Willdan is not aware of any potential conflicts of interest with other clients that may arise due to the performance of work on the City of Santa Clarita's behalf. Comprehensive. Innovative. Trusted. 26 Proposal to Conduct the Annual Levy of Special Districts City of Santa Clarita 8. Additional Data Property Owner Service Representatives Willdan acts as the primary contact to provide assistance and answer property owner questions regarding the districts. Willdan's toll-free telephone number will be provided to the County for inclusion on the tax bills for property owners to call with questions throughout the year. Likewise, Willdan will field inquiries from City staff, lenders, and other interested parties concerning the annual installments. Phone inquiries will be documented using Willdan's proprietary computer system. A phone call log can be sent (upon request) to the City. Willdan employs dedicated property owner service representatives, who respond to phone inquiries and serve as the primary contact in answering questions related to charges, assessments, and special taxes on property owner tax bills. They utilize Willdan's proprietary computer system, MuniMagic, to readily access the owner's name, the Assessor's Parcel Number (APN), the existing taxes/assessments, and more; thus enabling expedient service. In addition, our phone system is specifically set up to automatically route calls to an available person so that property owners will reach a live representative, and not voicemail. This ensures that City staff is not directly impacted by these calls, but instead can be confident that property owner inquiries are answered expediently and professionally. Our representatives field property owner and other interested parties' questions in fluent English, Spanish, Tagalog, Korean, and Vietnamese. They are available to respond to phone calls from 8:00 am until 5:00 pm, Monday through Friday (excluding major holidays when Willdan offices are closed). APN; 670-182-024 De41od bl sod DippuNa Cd Dete', d1/28120040223M 71 Cl Nems IJ:nsmith Typedcalm Pmpueyniou They have been trained to respond to questions relating to fees, charges, assessments, and special taxes. They use Willdan's proprietary computer system to readily access the owner's name, the Assessor's Parcel Number, the existing taxes or assessments, and more; thus enabling expedient service. To allow consistent answers for common questions, we have established scripts for our clients, such as: Fe�Ilu Gr PyplfOwk,'EnvaLe//Ew4neYan He>eWlvt Pmmded Paydl Dude m Call ID and Time Created by 1025 8111'. 52 A. M. Jennifer Sharp 1143 2/20/20163,42 P. M. Melissa Hunt 2268 2/2/2016215 P.M. Peggy Marsh 8529 6/26/201610'. 59 A.M. Julie Ray 3462 5/30/20168:22 A.M. Tulle Ray 6952 4/4/20164:30 P.M. Melissa Hunt 2535 3/6/20169:55 A.M. Peggy MarsM1 0256 2/14/20161:03 P. M. Jennifer Sharp 2216 1/15/201612'.14 P.M. Jennifer Sharp What are the charges funding? How long will the charge be levied? Can it be paid off? Will it increase? We will meet with your staff to discuss appropriate answers to these and other pertinent questions; likewise, we will provide our property owner service representatives with an authorized script. In addition, our property owner service representatives will keep a phone call log, a sample call log has been provided below. APN Caller Name 212-360 450 9 Keith Crow 215-684-522-8 Jonathan Monroe 845-346-2257 Kelly MCHollater 324-854-236-6 Aided Williams 456-654-123-5 Nancy Goal 698-632-458-4 Virginia Richardson 293-589-210-3 lose Guttierez 693-852-056-2 Nicolle Hendrickson 192-822-502-1 Buffy Johnson SAMPLE Assessment District No.1 Phone Call History Type of Caller Erro for CaN Property Owner Payoff Quote/Estimate Explanation Provided Instructions for 0rdering Information Title Company Maximum Tax Explanation Provided Verbal Response/Explanation Realtor Final Maturity Date of Bond District Provided Verba l Response/Explanation _ Law Firm Cha rge Methods log Fare nation Provided Written Documentation A345WWWiliamsmwfirmcom Prospective Owner Delinquency Information Referred Callertor Attorney Currently in Foreclosure Developer_ Remaining Principal Amount Provided Verbal Response/Explanation Prospective Owner Improvement Description Provided Verbal Response/Explanation Realtor Notice of Special Tax/Assessment Provided Written Documentation NhendricksonMLawerstitle.com _ Other Other Referred Callerto County Questions on Ad Valorem Taxes Comprehensive. Innovative. Trusted. Proposal to Conduct the 27 Annual Levy of Special Districts City of Santa Clarita Exceptions of the City's RFP Willdan's attorney has reviewed the City's sample Agreement, and we kindly request the City's consideration of the contract exceptions outlined below, revised language has been underlined. 22. INSURANCE. B. Commercial general liability insurance.... Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable except upon thirty (30) days prior written notice to CITY (10) days' notice if cancellation is due to nonpayment of premium. Required Documentation Provided on the following pages are completed copies of the Proposal Form and acknowledgement of Addendum #1. Comprehensive. Innovative. Trusted. 26 Proposal to Conduct the Annual Levy of Special Districts CITY OF SANTA CLARITA REQUEST FOR PROPOSAL SCHEDULE PROPOSAL # NS -16-17-08 ELECTRONIC PROPOSALS ARE DUE BEFORE: 11:00 A.M., November 14, 2016 The City of Santa Clarita invites electronic proposals for: SAMPLE Proposal responses must be uploaded to Planet Bids at: htti),I/wvAv.planetbids.com/portal/portal.cfm?Comr)anvlD=168409 2. Prices shall be D.D.P. Destination or for the service rendered. 3 Proposer shall honor proposal prices for sixty (60) days or for the stated contract period, whichever is longer. 4 Proposals must include this Proposal form and be signed by the contractor's authorized representative. This signature acknowledges the proposer has read and understands the requirements contained on pages 1 to 23 5. The last day for questions will be 5:00 PM, October 18, 2016. 6. The contractor is responsible for the accuracy and completeness of any solicitation form not obtained directly from the City. PROPOSER TO READ I have, read, understood, and agree to the terms and conditions on all pages of this proposal. The undersigned agrees to furnish the commodity or service stipulated on this proposal as stated above. Company: ylfilldan Financial Services Name (Print): Mark J. Risco Company Phone No.: (951) 587-3500 Title of Person Signing lfid: President and CEO Bid # NS -16-17-08 I ADDENDUM #1 For City of Santa Clarita Request For Proposal NS -16-17-08 ANNUAL LEVY OF SPECIAL DISTRICTS October 13, 2016 This addendum must be acknowledged via Planet Bids and should be included with the bid response. To follow, please find Exhibits to assist with the LMB Engineer's Report. A. Drainage Benefit Assessment District Boundaries B. Landscape Maintenance District Boundaries C. Streetlight Maintenance District Boundaries D. Golden Valley Ranch Open Spaces E. Open Space Preservation Districts Willdan Financial Services Company Name Bid # PR -13 14 11 November 11, 2016 Date WrWILLDAN 27368 Via Industria, Suite 200 Temecula, California 92590-4856 800.755.6864 1 951.587.3500 1 Fax: 951.587.3510 w .willdan.com /W I LLDAN FINANCIAL SERVICES November 14, 2016 Purchasing City of Santa Clarita 23920 Valencia Boulevard Santa Clarita, California 91355 Re: Cost Proposal to Conduct the Annual Levy of Special Districts for the City of Santa Clarita To Whom It May Concern: Willdan Financial Services ("Willdan") is pleased to submit this cost proposal to the City of Santa Clarita ("City") to conduct the Annual Levy of Special Districts. The following information has been provided separately per the instructions identified within Request for Proposals (RFP) NS -16-17-08. To discuss any aspect of our technical and/or cost proposals, or to arrange for an interview with our team, please contact Senior Project Manager Stacee Reynolds at (951) 587-3551 or via email at srevnolds(cDwilldan.com. Sincerely, WILLDAN FINANCIAL SERVICES xe� 04 Mark J. Risco President & CEO Engineering and Planning I Energy Efficiency and Sustainability I Financial and Economic Consulting I National Preparedness and Interoperability 800.755.68641 fax: 951.587.3510 1 27368 Via Industria, Suite 200, Temecula, CA 92590 1 www.willdan.com Willdan Financial Services 27368 Via Industria, Suite 200 Temecula, CA 92590 Cost Proposal Special District and Fee Program Administration The annual administration fee below reflects application of the scope of services identified within Willdan Financial Services' ("Willdan") technical proposal. It is based on the time we estimate we will spend on average each year. There will not be any additional charges for data requests, custom reports, or phone calls relating to the districts listed below. The fees are payable as the work progresses, on a percentage -completion basis, unless another billing format is mutually agreed upon between the City and Willdan. The fees and rates are subject to increase, which will not exceed the most recent annual change in the Consumer Price Index (CPI) within the applicable area, as calculated by the United States Department of Labor. Landscape Maintenance Districts 86,157 $18,900.00 Streetlight Maintenance Districts Drainage Benefit Assessment Areas Open Space Preservation District Golden Valley Ranch Open Space District Tourism Marketing District Stormwater Pollution Prevention Fee Total Annual Administration Fee 54,811 1,899 62,331 424 62,289 7,000.00 6,500.00 6,500.00 2,150.00 1,250.00 4,300.00 MM $46,600.00 Annexation Services Provided below are typical fees anticipated for annexations and formations, which have been segmented by district type. Although it is important to note that due to the unique characteristics potentially associated with a pr6oject of this nature, these fees may require modification prior to initiation. District/Zone Formation/Annexation District/Zone Formation/Annexation DistricUZone Formation/Annexation Perform Maximum Rate Change Perform Maximum Rate Change District/Zone Formation/Annexation $ 8,000 / base fee per single development annexation $2,000 / per additional development annexation $ 1.50 / per parcel for printing & mailing ballots $ 6,500 / per Zone (assuming simple increase) $ 1.50 / per parcel for printing & mailing ballots $ 5,400 / per single annexation area District/Zone Formation/Annexation $ 8,500 / base fee per single development annexation District/Zone Formation/Annexation District/Zone Formation/Annexation Perform Maximum Rate Change Perform Maximum Rate Change $2,500 / per additional development annexation $ 1.50 / per parcel for printing & mailing ballots $ 6,500 / per Zone (assuming simple increase) $ 1.50 / per parcel for printing & mailing ballots It Comprehensive. Innovative. Trusted. Cost Proposal to Conduct the 1 Annual Levy of Special Districts Willdan Financial Services 27368 Via Industria, Suite 200 Temecula, CA 92590 Please note the following specific to Annexation Services: • Our fee will not be contingent on the outcome of the district annexation. • The fees identified above include direct expenses, such as printing, postage and processing associated with the mailing of the notices and ballots. • Telephone conference calls are not considered meetings and are not limited by our proposal. • If the City wishes for the Willdan project manager to attend face-to-face meetings, the fee is estimated to be $1,200 per meeting. • We will invoice the City monthly based on percent of the task completion. Reimbursable Expenses Willdan will be reimbursed for out-of-pocket expenses. Examples of reimbursable expenses include, but are not limited to: • Postage; 0 Electronic data provided from the county • Travel expenses; and/or other applicable resources; • Mileage (current prevailing rate); Construction cost periodicals; and • Maps; Copying (currently 6¢ per copy). Charges for meeting and consulting with the Council, the City, or other parties (or requests for reports containing information not included in the Engineer's Reports, parcel databases, County secured roll, or County tax payment tapes that are not listed in the scope of work) will be at our then -current hourly rates (see "Additional Services" below). In the event that a third party requests any documents, Willdan may, in accordance with Willdan's applicable rate schedule, charge such third party for providing said documents. City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the Project. Reimbursement shall be at Willdan's rates in effect at the time of such response. Additional Services Additional authorized services will be billed at Willdan's then current hourly consulting rates. Our current hourly rates are: Principal Senior Project Manager Project Manager Senior Project Analyst Senior Analyst Analyst Analyst Assistant Property Owner Services Representative Comprehensive. Innovative. Trusted. 2 200 ■ 165 . 145 130 . 120 100 . 75 55 MM Cost Proposal to Conduct the Annual Levy of Special Districts