Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with NBS Government Finance Group, Inc. for Administration Services of Alameda’s Non-Bonded Special Financing Districts for an Amount Not-to-Exceed $285,951. (Public Works 27641530)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) has several types of special financing districts: Island City Landscape & Lighting District (LLD) 84-2, Marina Cove Maintenance Assessment District (MAD) 01-01, and several non-bonded Community Facilities Districts (CFDs). The City utilizes a financial consulting firm for various administrative and levy collection support services for these districts, which is a necessary administrative function to continue to levy these assessments and taxes. Staff recently completed a solicitation for a new, five-year agreement for these services. The scope of work includes preparation and presentation of the Engineer's Reports for the LLD and MAD, and submittal of the property owner levy for the special districts. As a result of the competitive solicitation, staff recommends a new five-year agreement with NBS Government Finance Group (NBS).
BACKGROUND
Special assessment districts are a funding mechanism under the California Streets and Highway Code that fund improvements such as landscape and maintenance. Special benefit districts are additional funding mechanisms that provide local governments with flexile funding alternatives. The City has several types of special districts: Non-bonded assessment districts (Island City Landscape and Lighting District LLD 84-2 and Maintenance Assessment Districts MAD 01-01), and Community Facilities Districts which are special tax districts (CFD 03-01/Bayport Municipal Services district, CFD 13-2/Alameda Landing Municipal Services District, CFD 14-1/Marina Cove II, and CFD 17-1/Alameda Point Municipal Services District).
Since the formation of the first non-bonded assessment district in 1984, the City has retained a financial consultant to provide administrative and levy collection support for the City’s special financing districts. Over the years, as the City has continued to form new districts, most recently CFDs, the scope for these administrative services has increased due to the total number of special financing districts. The services provided include preparation of the legally required Engineer’s Report for the City’s assessment districts (LLD 84-2 and MAD 01-01), and the levy submittal to the County of Alameda to place assessments and special taxes on the property tax rolls. The consultant also performs the special tax requirement and levy calculation, as well as associated special tax notices and disclosures for the City’s CFDs.
DISCUSSION
The existing agreement for these services expires in March 2024. In anticipation of the expiration of the current agreement and the need for a new, five-year agreement, staff issued a Request for Proposals (RFP) on September 28, 2023. After a submittal period of 16 days, two timely proposals were received. Based on the staff’s evaluation of the proposals, staff is recommending the selection of NBS to provide the City with administration services for Alameda’s non-bonded special financing districts and recommends a five-year agreement with NBS be executed in an amount not-to-exceed $285,951.
ALTERNATIVES
• Authorize the City Manager to execute the agreement with NBS as presented.
• Direct staff to implement this work in-house. At this time, staff does not have the resources with specific expertise to execute this work.
• Do not authorize execution of the agreement and discontinue collection/levy of special assessments and taxes.
FINANCIAL IMPACT
Compensation for the 5-year agreement is reflected in the table below.
|
Term |
Compensation |
|
December 2023-2024 |
$ 51,750 |
|
December 2024-2025 |
$ 54,338 |
|
December 2025-2026 |
$ 57,054 |
|
December 2026-2027 |
$ 59,907 |
|
December 2027-2028 |
$ 62,902 |
|
Total |
$285,951 |
Funds for this contract are budgeted in the Public Works operating budget for Maintenance District Administration (ORG 27641530) for Fiscal Years 2023-2025. Fiscal Years 2025-2028 will be subject to future appropriations. There is no impact on the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a five-year agreement with NBS Government Finance Group, Inc. for administration services of Alameda’s non-bonded Special Financing Districts for an amount not-to-exceed $285,951.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Liz Acord, Public Works Coordinator
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Agreement