HomeMy WebLinkAboutAgenda Report - April 17, 1996 (66)AGENDA TITLE: Approve contract for Assessment District administrative services
MEETING DATE: April 17, 1996
PREPARED BY: Finance Director
RECOMMENDED ACTION: Council approve the $ 5,000 contract for Assessment District
administrative services to NBS/Lowry, Inc.
BACKGROUND INFORMATION: The City of Lodi has formed Assessment Districts pursuant to the Municipal
Improvement Act of 1913 and has issued bonds pursuant to the Improvement Bond Act of 1915, and has levied
special assessments on property to pay for the improvements financed. The City of Lodi has the responsibility to levy
and collect such assessments each year to meet debt service requirements. There are numerous other duties and
covenants involved with such districts and bonds including monitoring and pursuing delinquencies, initiating judicial
foreclosure actions, providing payoff calculations, tracking parcel changes and apportionments, adjusting for agency
costs, crediting the parcels for excess funds and interest eamings, calling bonds, and providing information on the
bonds and district status to interested parties. Most of these requirements are set forth in the California Streets and
Highways Code, Division 10: Others are as dictated in the Bond Transcripts. This is an area which requires special
expertise, and the agency staff is unable to provide the services on a cost-effective basis.
NBS/Lowry, Inc. is a firm with a fifty year history of providing quality and cost-effective engineering and assessment
services to public agencies. As such, the Public Finance Group at NBS/Lowry, Inc. has the breadth and depth of
experience with Assessment Districts, Mello -Roos Community Facilities Districts, Landscape and Lighting Districts,
and other such Special Financing Districts which cannot be matched by our agency staff. Furthermore, the
complementary engineering services and staff available at NBS/Lowry, Inc. will only enhance the administration of
our assessment districts.
Financial Impact.
Due to the code and current taxation policy, these Assessment Districts must cover their costs and not be paid for by
General Fund moneys. Therefore, all costs for administering these districts are captured in the annual levy and there
is no direct cost to the City of Lodi for NBS/Lowry, Inc's. services. This articulates with the costs for the
trustee/paying agent, incremental outside auditor fees, county tax collector charges, arbitrage rebate services, and
similar expenses which shall be incorporated into the annual levy and spread to the parcels within the district. The
total levy to the parcel owner may be reduced by active use of the available funds, such as interest earnings and
delinquent penalties.
FUNDING: No direct cost to City; captured in the annual levy.
Vicky McAt ie
Finance Director
APPROVED' ---
H. 6iix61 Flynn — cKY Manager
NOTICE OF RECORDING ASSESSMENT AND
TIME FOR RECEIPT OF CASH PAYMENTS
LODI CENTRAL CITY REVITALIZATION ASSESSMENT DISTRICT NO. 95-1
CITY OF LODI, CALIFORNIA
NOTICE IS HEREBY GIVEN that all owners of real property liable to be
assessed to pay the costs and expenses of the acquisition and/or construction of
improvements described in the Engineer's Report and Resolution No.95-123, a
Resolution of Intention to Acquire and/or Construct Improvements and to Refund Prior
Bonds Issued, adopted by the City Council of the City of Lodi on September 20, 1995,
are hereby notified that the assessment and diagram were recorded in the office of the
Director of Public Works of the City of Lodi on May 20, 1996.
The assessments are due and payable immediately at the office of the Finance
Director, City Hall Annex, 212 West Pine Street (mailing address P. O. Box 3006), Lodi,
California 95241, and must be received within the period expiring June 19, 1996.
In the event of the failure to pay before the expiration of that period, serial or
term bonds to represent the unpaid assessments and bearing interest at the rate of not
to exceed twelve percent (12%) per annum will be issued pursuant to the Improvement
Bond Act of 1915, the last installment of such bonds to mature not to exceed nineteen
(19) years from the second day of September next succeeding twelve (12) months from
their date, and the applicable provisions of Part 11.1 of the Improvement Bond Act of
1915, providing an alternative procedure for the advance payment of assessments and
the calling of bonds, shall apply.
0 e.A , iiv ck4,A,, 1.
VICKY MCA HIE, FINANCE DIRECTOR
CITY OF LODI
RESOLUTION NO: 96 34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI AUTHORIZING THE APPROVAL
OF AN AGREEMENT FOR 1915 ACT ASSESSMENT DISTRICT ADMINISTRATION AND OTHER
RELATED SERVICES.
WHEREAS, the City Council of the City of Lodi formed district(s) and issued bonds pursuant to the temps and
provisions of the Improvement Act of 1913 and Improvement Bond Act of 1915 (respectively Division 12 and 10 of the
Streets and Highways Code of the State of California) and has levied special assessments on lands within the
Assessment District(s), which are described in the Resolution of Intention adopted for said improvements and,
WHEREAS, there has been presented, considered and ready for approval an agreement setting forth formal
terms and conditions relating to such administration services and other related services, at this time the City Council of
the City of Lodi is desirous to set forth all formal terms and conditions relating to the administration of the Assessment
District(s) and other related services to ensure that all governing -code provisions, covenants, and conditions regarding the
District(s) are being observed and performed; and
NOW, THEREFORE, the City Council of the City of Lodi does hereby resolve as follows:
Section 1 That the above recitals are true and correct.
Section 2 That the letter agreement is hereby approved substantially in the form herein, is to be dated the
date hereof, and is subject to modifications as necessary and as approved by the City of Lodi
Finance Director.
Section 3 That the agreement relating to such actions submitted herewith passed and adopted at the
regular meeting of the City Council of the City of Lodi held on the 17th day of April, 1996 .
Dated: April 17, 1996
I hereby certify that Resolution No. 96-34 was passed and adopted by the Lodi City Council in a
regular meeting held April 17, 1996 by the following vote:
Ayes
Noes:
Absent:
Council Members - Mann, Pennino, Sieglock and Warner (Mayor)
Council Members - Davenport
Council Members - None
nifer
ity Cleri'�,
H-1
6) MEMORANDUM, City of Lodi, Public Works Department
To: City Council
From: City Engineer
Date: April 16, 1996
Subject: Additional Information on Central City Revitalization Assessment District
Attached is the following additional information on the District requested at the
Shirtsleeve meeting this morning. If I missed anything, please give me a call.
1. Copies of overheads showing protest figures without City property.
2. Copy of the detailed cost estimate from the Engineer's Report.
Note the that total cost of the project including the very preliminary estimate of
improvements to City infrastructure is as follows:
Amount to be assessed (last figure in estimate) : $ 3,126,031
City participation in assessment district (next to last figure in estimate) : 3,139,487
City infrastructure (Paving, signals and drainage): 1,881,000
Total: $ 8,146,518
3. Recalculated protest figures if the area east of the railroad tracks were eliminated
from the District (both with and without City property).
J
Richard C. Prima, Jr.
City Engineer
RCP/rcp
cc: City Manager
City Clerk
ADDUNFO.DOC
Central City Revitalization Program
Assessment District
• As established in the Engineer's Report, the District does NOT have
a majority protest and can go forward
• Protest figures for the total district without City property:
Valid Protests 43.5%
Invalid Protests 6.3%
11
Central City Revitalization Program
Assessment District
• Each zone separately without City property:
Downtown Zone Total Zone
without City
Property
Valid Protests 50.14%
Invalid Protests 4.8%
Cherokee Lane Zone
Valid Protests N/A
Invalid Protests NIA
12
Aws
EXHIBIT A
ESTIMATE OF THE COST AND EXPENSE OF IMPROVEMENT
LODI CENTRAL CITY REVITALIZATION PROJECT
ASSESSMENT DISTRICT NO. 95-1
LODI, CALIFORNIA
ESTIMATED COST OF SCHOOL STREET IMPROVEMENTS
64 each
Pedestrian Scale Street Lights
@ $
101 each
Parking Zone Street Trees
@
lump sum
Miscellaneous Demolition
@
34 each
Benches
@
34 each
Trash Receptacles
@
lumpsum
Post Office Frontage
@
5 each
Custom Kiosk
@
5 each
Kiosk Custom Art/Posters
@
68 each
Sidewalk Planter Pots
@
49,500 sf
Sidewalk Replacement
@
lumpsum
Entrance Gateway
@
20 each
Corner Bo% -outs
@
Estimated Total Cost of School Street Improvements
5,000 $
320,000
2,400
242,400
22,500
22,500
1,500
51,000
1,200
40,800
100,000
100,000
5,000
25,000
35,000
175,000
750
51,000
8
396,000
550,000
550,000
12,500.
250,000
$ 2,223,700
ESTIMATED COST OF PINE STREET IMPROVEMENTS
Medan Demolition
@
26 each
Parking Zone Pedestrian/Street Lights
@ $
6,000
$ 156,000
4 each
Trash Receptacles
@
1,200
4,800
4 each
Corner Bow -outs
@
12,500
50,000
Estimated
Total Cost of Pine Street Improvements
180 each
Holophane Street Lights
$ 210,800
ESTIMATED COST OF OAK STREET IMPROVEMENTS
1,080,000
Estimated Total Cost of Cherokee Lane Improvements
18 each
Pedestrian Scale Street Trees
@ $
5,000
$ 90,000
34 each
Parking Zone Street Lights
@
2,400
81,600
lump sum
Miscellaneous Demolition
@
9,000
9,000
2 each
Trash Receptacles
@
1,200
2,400
2 each
Corner Bov.Louts
@
12,500
25,000
Estimated Total Cost of Oak Street Improvements $ 208,000
ESTIMATED COST OF CHEROKEE LANE IMPROVEMENTS
lump sum
Medan Demolition
@
$ 114,550
$ 114,550
124 each
Median Trees
@
800
99,200
lump sum
Median Treatment
@
123,750
123,750
lump sum
Existing Median Upgrades
@
20,000
20,000
180 each
Holophane Street Lights
@
6,000
1,080,000
Estimated Total Cost of Cherokee Lane Improvements
$ 1,437,500
ESTIMATED DESIGN/CONSTRUCTION CONTINGENCIES
$ 720,000
ESTIMATED CONSTRUCTION INCIDENTAL EXPENSES
Design Engineering $ 689,862
Construction Staking, Inspection and Testing 189,306
Estimated Total Cost of Construction Incidental Expenses $ 879,168
Page 1
IESTIMATED ASSESSMENT INCIDENTAL EXPENSES
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Page 2
Assessment District Engineer $ 75,350
Bond Counsel 47,000
Disclosure Counsel 25,000
Bond Printing, Advertising, Register 21,000
Bond Reserve (7%) 190,000
Bond Registration 10,000
Bond Discount (3%) 81,500
Estimated Total Cost of Assessment Incidental Expenses $ 449,850
ESTIMATED UNPAID ASSESSMENT FROM AD 84-1
Outstanding Principal Balance $ 125,000
Estimated Interest and Prepayment Premium 12,500
Estimated Total Unpaid Assessment from AD 84-1 $ 137,500
ESTIMATED CONSTRUCTION FUND INTEREST EARNINGS $ (1,000)
ESTIMATED CASH CONTRIBUTED BY CITY OF LODI TO PROJECT $ (3,139,487)
ESTIMATED TOTAL COST AND EXPENSE PROPOSED TO BE $ 3,126,031
ASSESSED TO PROPERTY OWNERS
NOTES:
1. The following items in the Estimate of Costs are estimates only, and may be somewhat
different from the actual cost: Cost of School Street Improvements, Cost of Pine Street
Improvements, Cost of Oak Street Improvements, Cost of Cherokee Lane Improvements,
Design/Construction Contingencies, Assessment Incidental Expenses, Construction Fund
Interest Earnings, Capitalized Interest and Cash Contributed by City of Lodi to Project.
2. The Estimated Cost of School Street Improvements, the Estimated Cost of Pine Street
Improvements, the Estimated Cost of Oak Street Improvements, and the Estimated Cost of
Cherokee Lane Improvements were prepared by Freedman, Tung & Bottomley and are
discussed in further detail in the Memorandum dated April 5, 1995 from Michael Freedman to
Ms. Janet Keeter, Economic Development Coordinator, City of Lodi, entitled "Central City
Revitalization - Alternative Catalyst Project Recommendation".
3. The Estimated Cost of School Street Improvements, the Estimated Cost of Pine Street
Improvements, the Estimated Cost of Oak Street Improvements, and the Estimated Cost of
Cherokee Lane Improvements represent the estimated cost of construction of each component
of the Alternative Catalyst Project for the Lodi Central City Revitalization Project.
4. The Estimated Design/Construction Contingencies represents an allowance for any
design and/or construction revisions to the scope of work that may increase the actual costs of
the project. The Estimated Design/Construction Contingencies represent approximately 17% of
the total estimated cost of the proposed improvements.
S. The Estimated Design Engineering represents the architectural/engineering design fees
for the preparation of plans ,specifications and estimates for the Lodi Central City Revitalization
Project, Alternative Catalyst Project.
6. The Construction Staking, Inspection and Testing item represents the estimated cost of
inspection and testing fees for the construction of the
engineering, surveying, phase project.
I
Page 2
7. The Assessment District Engineer item represents the fees for the assessment
engineering work relative to the formation of the Assessment District, the preparation of the
Engineer's Report and the spreading of the assessments.
8. The Bond Counsel item represents the fees for the legal services provided by Bond
Counsel relative to the formation of the Assessment District, the levying of the assessments and
the issuing of the bonds.
9. The Disclosure Counsel item represents the fees for the legal services for disclosure
advice relative to the bond sale for the Assessment District.
10. The Bond Printing, Advertising, Register item represents the costs associated with the
preparation of the Auditor's Register, the bond printing and advertising, and printing of the
preliminary and final official statements.
11. The Bond Reserve item is based upon seven percent (7%) of the total amount of the
bond issue.
12. The Bond Registration item represents the costs associated with the registering of the
bonds.
13. The Bond Discount item is based upon three percent (3%) of the total amount of the
bond issue.
14. The Estimated Outstanding Principal Balance is the estimated principal balance still
outstanding on the Assessment District 84-1 bonds.
1s. The Estimated Interest and Prepayment Premium is the estimated interest that will be
due and the estimated prepayment premium that will be due at the time that the outstanding AD
84-1 bonds are payed off.
16. The Estimated Construction Fund Interest Earnings represents the estimated interest
earned by funds in the construction account from the time that funds are received from the sale
of bonds until the funds are disbursed. from the construction account.
17. The Estimated Cash Contributed by the City of Lodi to Project represents the estimated
contribution to be made by the City of Lodi towards the Alternative Catalyst Project for the Lodi
Central City Revitalization Project,
18. The Estimated Total Costs Proposed to be Assessed to Property Owners represents the
estimated total project costs less the estimated construction fund interest earnings and less the
estimated City cash contribution towards the project.
Page 3
Central City Revitalization Program
Assessment District
• Protest figures for the total district excluding the property and protests
east of the SPRR railroad tracks:
Valid Protests
Invalid Protests
Total:
37.0%
5.7%
42.7%
• Protest figures for the Downtown zone only excluding the property
and protests east of the SPRR railroad tracks:
Valid Protests
Invalid Protests
Total:
32.1%
2.5%
34.6%
16
Central City Revitalization Program
Assessment District
• Protest figures for the total district excluding the property and protests
east of the SPRR railroad tracks and without City property:
Valid Protests
Invalid Protests
Total:
38.9%
6.0%
44.9%
• Protest figures for the Downtown zone only excluding the property
and protests east of the SPRR railroad tracks and without City property:
Valid Protests
Invalid Protests
Total:
37.6%
3.6%
41.2%
17