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HomeMy WebLinkAboutReso 113-22 Approving a First Amendment to the Agreement with Goodwin Consulting Group, Inc.RESOLUTION NO. 113 — 22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A FIRST AMENDMENT TO THE AGREEMENT WITH GOODWIN CONSULTING GROUP, INC. WHEREAS, on July 20, 2021, the City Council adopted Resolution No. 92-21 approving an agreement for on -call financial consulting services with Goodwin Consulting Group, Inc.; and WHEREAS, the City and Goodwin Consulting Group, Inc. desire to amend the agreement to add services for the formation, annexation, and administration of new community facilities districts. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the amendment to the agreement with Goodwin Consulting Group, Inc., attached hereto as Exhibit A. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the amendment to the agreement, attached hereto as Exhibit A, and make any necessary, non - substantive changes to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 20th day of September 2022, by the following vote: AYES: Councilmembers Hu, Josey, Kumagai, McCorriston and Mayor Hernandez NOES: ABSENT: ABSTAIN: ATTEST: DocuSigned by: OUVAli City 96ClerC SD F�lOA... iv o�2s�. DocuSignneddbby: ai�awF7A46A946l Mayor Reso. No. 113-22, Item 4.3, Adopted 09/20/2022 Page 1 of 1 DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 Exhibit A FIRST AMENDMENT TO CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN AND GOODWIN CONSULTING GROUP, INC. FOR ON -CALL SPECIAL TAX AND DISCLOSURE CONSULTANT SERVICES WHEREAS, on July 20, 2021, the City of Dublin (hereinafter referred to as "CITY") and Goodwin Consulting Group, Inc. (hereinafter referred to as "CONSULTANT") entered into a Consulting Services Agreement for on -call special tax and disclosure consultant services (hereinafter referred to as the "AGREEMENT"); and WHEREAS, CITY and CONSULTANT desire to amend the AGREEMENT to add services for Community Facilities District formation, annexation, and administration, and to add a compensation schedule for the new scope of services. NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the AGREEMENT is amended as follows: 1) Section 1 shall be rescinded in its entirety and replaced with the following: SERVICES. Subject to the terms and conditions set forth in this Agreement, CONSULTANT shall provide to CITY the services described in the Scopes of Work attached as Exhibit A and Exhibit A-1 at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and any Exhibits, the Agreement shall prevail. 2) Section 1.1 shall be rescinded in its entirety and replaced with the following: Term of Services. The term of this Agreement shall begin on the effective date and shall end when the work described in Exhibit A or Exhibit A-1 is complete, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to CONSULTANT to complete the services required by this Agreement shall not affect the CITY's right to terminate the Agreement, as referenced in Section 8. 3) Section 2 shall be rescinded in its entirety and replaced with the following: COMPENSATION. CITY hereby agrees to pay CONSULTANT for services outlines in Exhibit A in accordance with the schedule attached hereto as Exhibit B. CITY hereby agrees to pay CONSULTANT for services outlines in Exhibit A-1 in accordance with the schedule attached hereto as Exhibit B-1. CITY shall pay CONSULTANT for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from CITY to CONSULTANT for services rendered pursuant to this Agreement. CONSULTANT shall submit all invoices to CITY in the manner specified herein. Except as specifically authorized by CITY in writing, CONSULTANT shall not bill CITY for duplicate services performed by more than one person. CONSULTANT and CITY acknowledge and agree that compensation paid by CITY to CONSULTANT under this Agreement is based upon CONSULTANT's estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of CONSULTANT. Consequently, the Parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which CONSULTANT and its employees, agents, and subcontractors may be eligible. CITY Page 1 of 3 DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 therefore has no responsibility for such contributions beyond compensation required under this Agreement. 4) Section 2.5 shall be rescinded in its entirety and replaced with the following: Hourly Fees. Fees for work performed by CONSULTANT on an hourly basis shall not exceed the amounts shown on the compensation schedules attached hereto as Exhibit B and Exhibit B-1. 5) Section 2.6 shall be rescinded in its entirety and replaced with the following: Reimbursable Expenses. Reimbursable expenses are specified in Exhibit B and Exhibit B-1, expenses not listed are not chargeable to CITY. 6) Section 10.11 Integration shall be amended to add the new scope and compensation schedule attached hereto as Exhibits A-1 and B-1. 7) Except to the extent inconsistent with this First Amendment, the Parties ratify and confirm all of the terms and conditions of the AGREEMENT. 8) All requisite insurance policies to be maintained by the CONSULTANT pursuant to the Agreement, as may have been amended from time to time, shall include coverage for the amended term, as described above. 9) The individuals executing this Amendment and the instruments referenced in it on behalf of CONSULTANT each represent and warrant that they have the legal power, right and actual authority to bind CONSULTANT to the terms and conditions of this Amendment. SIGNATURES ON THE FOLLOWING PAGE Page 2 of 3 DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed as of the date of the City Manager's signature below. CITY OF DUBLIN By: Linda Smith, City Manager Dated: ATTEST: By: Marsha Moore, City Clerk APPROVED AS TO FORM: By: City Attorney 5189815.1 GOODWIN CONSULTING GROUP, INC. DocuSigned by: By:%._7BE169C88F404B7 Susan Goodwin, Managing Principal Page 3of3 DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 EXHIBIT A -1 CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT FOR MITIGATION COSTS FOR THE DUBLIN BOULEVARD EXTENSION & EAST DUBLIN SCOPE OF WORK Goodwin Consulting Group, Inc. (GCG) will provide special tax consulting services to the City of Dublin (City) associated with formation of a Community Facilities District (CFD) that will fund acquisition of mitigation land required in association with construction of the Dublin Boulevard Extension. GCG will also provide services related to annual administration of the CFD, including preparation of the annual special tax levy and delinquency management. Specifically, GCG will provide the following tasks pursuant to this Scope of Work: A. CFD FORMATION Task A-1. Background Research and Data Collection GCG will coordinate with City staff, affected developers, and the City's legal counsel to discuss the structure and components of the CFD, including special tax categories, maximum special tax rates, development triggers for levy of the special tax, boundaries of the CFD and future annexation area (if applicable), and the CFD formation timeline and action items. GCG will review mitigation costs and coordinate with the City regarding annual administration costs to determine the maximum special tax rates for property in the CFD. Task A-2. Rate and Method of Apportionment of Special Tax Based on the special tax structure selected by the working group, GCG will prepare the Rate and Method of Apportionment of Special Tax (RMA), which will serve as the official special tax formula for the CFD. The RMA will provide detail and direction as to how the special tax should be levied in future years to ensure adequate revenues are available for timely payment of costs funded by the CFD. The RMA will be included as an exhibit to the Resolution of Intention to Form the CFD, which will be adopted by the City Council as part of the first set of actions taken towards forming the CFD. Task A-3. Review of Legal Documents GCG will coordinate with the City's legal counsel to review and contribute to CFD formation documents, including the CFD Report required pursuant to Section 53321.5 of the Government Code. Task A-4. Meeting Attendance GCG will attend up to three meetings during the CFD formation process, including City Council meetings at which documents are reviewed, discussed, and approved. Dublin Blvd Extension Mitigation CFD A-1 Scope of Work DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 B. CFD ADMINISTRATION Task B-1. Background Research and Data Collection Each fiscal year, GCG will confirm the Assessor's parcel numbers for lots within the CFD and determine which parcels are Developed Property and which remain Undeveloped Property. GCG will categorize Developed Property as Single Family Detached Property, Single Family Attached Property, Multi -Family Property, or Non -Residential Property and include them on the tax roll for the fiscal year. Task B-2. Annual Special Tax Levy Calculation GCG will calculate the special tax levy for each taxable parcel in the CFD by applying the RMA. In coordination with the City, GCG will identify the maintenance costs and administrative expenses to be covered by the special tax levy and will levy the special tax in the amount needed, up to the maximum special tax for each parcel. Task B-3. Summary of Annual Special Tax Levy GCG will annually prepare a summary of the special tax levy which contains the results of our parcel research and identification of costs to be paid in the current fiscal year. The appendix to this summary will identify the special tax levy for each Assessor's parcel for the fiscal year. Task B-4. Annual Special Tax Enrollment GCG will compile a list of parcels in the CFD that will be subject to the special tax levy and format it in compliance with the specific formatting instructions of the County Auditor - Controller' s Office. The formatted tax levies will be submitted on or before August 10 (or other specified date) for inclusion on the consolidated property tax bills. Task B-5. Delinquency Manaiement GCG will monitor the County's tax collection summaries and report on delinquent parcels and corresponding delinquent CFD taxes. Task B-6. Annexation Services With each annexation, GCG will: (i) prepare a consolidated CFD boundary map reflecting the annexation area in the CFD, (ii) work with City staff to identify costs and land uses to calculate the maximum special taxes for the area being annexed, (iii) prepare the rate supplement to be attached to the unanimous approval form for new tax zones, and (iv) assist the City and legal counsel with anything related to annexing property into the CFD. Task B-7. Answer Inquiries from Various Parties GCG will respond to property owners, realtors, title companies, appraisers and other parties' questions regarding the special tax and other CFD related issues. A GCG staff member will be listed as the contact for calls that are received by the County Tax Collector's Office, and most calls will be responded to on the day received. Dublin Blvd Extension Mitigation CFD A-2 Scope of Work DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 EXHIBIT B -1 CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT FOR MITIGATION COSTS FOR THE DUBLIN BOULEVARD EXTENSION & EAST DUBLIN BUDGET AND FEE SCHEDULE A. CFD Formation GCG proposes a maximum budget of $35,000 for services provided, and expenses incurred, in association with formation of the services CFD. This budget represents a maximum amount not to be exceeded. Additional consulting services beyond those included in the scope of work may be provided within the maximum budget if total hourly billings are less than the budget maximum. Alternatively, if the scope of work can be completed for less than the maximum budget, only hours actually expended will be billed. Services will be billed based on the following hourly service rates: GCG Hourly Service Rates Managing Principal $345/Hour Senior Principal $335/Hour Principal $295/Hour Vice President $260/Hour Senior Associate $235/Hour Associate $220/Hour Analyst $210/Hour Research Assistant $95/Hour * The rates reflected above are valid through December 31, 2022 and may be adjusted thereafter. B. CFD Administration The budget for CFD administration services, not including annexation services, is $9,000 per year. The budget for annexation services is $8,000 per annexation. These budgets represent a maximum amount not to be exceeded; additional consulting services beyond those included in the scope of work may be provided within the maximum budget if total hourly billings are less than the budget maximum. Alternatively, if the scope of work can be completed for less than the maximum budget, only hours actually expended will be billed. This maximum fee will be subject to an inflation adjustment after fiscal year 2022-23. DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 EXHIBIT A -1 CITY OF DUBLIN EAST DUBLIN COMMUNITY FACILITIES DISTRICT FOR MAINTENANCE AND OTHER CITY SERVICES SCOPE OF WORK Goodwin Consulting Group, Inc. (GCG) will provide special tax consulting services to the City of Dublin (City) associated with formation of a Community Facilities District (CFD) that will fund maintenance and other City services. GCG will also provide services related to annual administration of the CFD, including preparation of the annual special tax levy and delinquency management. Specifically, GCG will provide the following tasks pursuant to this Scope of Work: A. CFD FORMATION Task A-1. Background Research and Data Collection GCG will coordinate with City staff, affected developers, and the City's legal counsel to discuss the structure and components of the CFD, including special tax categories, maximum special tax rates, development triggers for levy of the special tax, boundaries of the CFD and future annexation area, and the CFD formation timeline and action items. GCG will review service costs and coordinate with the City regarding annual administration costs to determine the maximum special tax rates for property in the CFD. Task A-2. Rate and Method of Apportionment of Special Tax Based on the special tax structure selected by the working group, GCG will prepare the Rate and Method of Apportionment of Special Tax (RMA), which will serve as the official special tax formula for the CFD. The RMA will provide detail and direction as to how the special tax should be levied in future years to ensure adequate revenues are available for timely payment of costs funded by the CFD. The RMA will be included as an exhibit to the Resolution of Intention to Form the CFD, which will be adopted by the City Council as part of the first set of actions taken towards forming the CFD. Task A-3. Review of Legal Documents GCG will coordinate with the City's legal counsel to review and contribute to CFD formation documents, including the CFD Report required pursuant to Section 53321.5 of the Government Code. Task A-4. Meeting Attendance GCG will attend up to three meetings during the CFD formation process, including City Council meetings at which documents are reviewed, discussed, and approved. East Dublin Services CFD A-1 Scope of Work DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 B. CFD ADMINISTRATION Task B-1. Background Research and Data Collection Each fiscal year, GCG will confirm the Assessor's parcel numbers for lots within the CFD and determine which parcels are Developed Property and which remain Undeveloped Property. GCG will categorize Developed Property as Single Family Detached Property, Single Family Attached Property, Multi -Family Property, or Non -Residential Property and include them on the tax roll for the fiscal year. Task B-2. Annual Special Tax Levy Calculation GCG will calculate the special tax levy for each taxable parcel in the CFD by applying the RMA. In coordination with the City, GCG will identify the maintenance costs and administrative expenses to be covered by the special tax levy and will levy the special tax in the amount needed, up to the maximum special tax for each parcel. Task B-3. Summary of Annual Special Tax Levy GCG will annually prepare a summary of the special tax levy which contains the results of our parcel research and identification of costs to be paid in the current fiscal year. The appendix to this summary will identify the special tax levy for each Assessor's parcel for the fiscal year. Task B-4. Annual Special Tax Enrollment GCG will compile a list of parcels in the CFD that will be subject to the special tax levy and format it in compliance with the specific formatting instructions of the County Auditor - Controller' s Office. The formatted tax levies will be submitted on or before August 10 (or other specified date) for inclusion on the consolidated property tax bills. Task B-5. Delinquency Management GCG will monitor the County's tax collection summaries and report on delinquent parcels and corresponding delinquent CFD taxes. Task B-6. Annexation Services With each annexation, GCG will: (i) prepare a consolidated CFD boundary map reflecting the annexation area in the CFD, (ii) work with City staff to identify costs and land uses to calculate the maximum special taxes for the area being annexed, (iii) prepare the rate supplement to be attached to the unanimous approval form for new tax zones, and (iv) assist the City and legal counsel with anything related to annexing property into the CFD. Task B-7. Answer Inquiries from Various Parties GCG will respond to property owners, realtors, title companies, appraisers and other parties' questions regarding the special tax and other CFD related issues. A GCG staff member will be listed as the contact for calls that are received by the County Tax Collector's Office, and most calls will be responded to on the day received. East Dublin Services CFD A-2 Scope of Work DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 EXHIBIT B -1 CITY OF DUBLIN EAST DUBLIN COMMUNITY FACILITIES DISTRICT FOR MAINTENANCE AND OTHER CITY SERVICES BUDGET AND FEE SCHEDULE A. CFD Formation GCG proposes a maximum budget of $17,500 for services provided, and expenses incurred, in association with formation of the services CFD. This budget represents a maximum amount not to be exceeded. Additional consulting services beyond those included in the scope of work may be provided within the maximum budget if total hourly billings are less than the budget maximum. Alternatively, if the scope of work can be completed for less than the maximum budget, only hours actually expended will be billed. Services will be billed based on the following hourly service rates: GCG Hourly Service Rates Managing Principal $330/Hour Senior Principal $320/Hour Principal $285/Hour Vice President $250/Hour Senior Associate $225/Hour Associate $210/Hour Analyst $200/Hour Research Assistant $90/Hour Note: These hourly rates are effective through December 31, 2021 and may be adjusted thereafter. B. CFD Administration The budget for CFD administration services, not including annexation services, is $4,500 per year. The budget for annexation services is $4,000 per annexation. These budgets represent a maximum amount not to be exceeded; additional consulting services beyond those included in the scope of work may be provided within the maximum budget if total hourly billings are less than the budget maximum. Alternatively, if the scope of work can be completed for less than the maximum budget, only hours actually expended will be billed. This maximum fee will be subject to an inflation adjustment after fiscal year 2022-23. DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 EXHIBIT A -1 CITY OF DUBLIN FORMATION AND ADMINISTRATION OF THE EAST RANCH COMMUNITY FACILITIES DISTRICT SCOPE OF WORK Goodwin Consulting Group, Inc. (GCG) will serve as special tax consultant to assist the City of Dublin in the formation of a Mello -Roos Community Facilities District (CFD) that will fund public improvements and, if applicable, public services required to serve the East Ranch Project (Project). In addition, GCG will manage the annual administration of the CFD, including preparing the special tax levy, complying with continuing disclosure requirements, and preparing arbitrage rebate calculations. Specifically, GCG will provide the following services: A. CFD FORMATION A-1. Kick -Off Meeting and Collection of Data GCG will meet with City staff, the financial advisor, bond counsel and underwriter, and the developer to compile data, confirm assumptions, and discuss the structure and components of the Mello -Roos financing program. This task will include (i) identifying public facilities and, if applicable, public services to be funded by the CFD, anticipated absorption rates, and timing and number of bond issues; (ii) confirming the allocation of special taxes to land uses within the CFD and reviewing the advantages and disadvantages associated with various allocation methods; (iii) evaluating the need for separate improvement areas or tax zones, as well as property that may be designated as future annexation area; (iv) discussing acceptable maximum tax rates based on City policy and competitive market conditions; and (v) coordinating with the financial advisor and underwriter regarding the anticipated bond structure, including the special tax and debt service escalator, bond interest rate, short-term reinvestment rate, capitalized interest, reserve fund, and other features that may affect the size of bond issues and the corresponding annual debt service. A-2. Mello -Roos Cash Flow Analysis GCG will use the information compiled in Task A-1 to prepare an analysis of the annual cash flow of the CFD. The analysis will identify the maximum special tax that will be needed to maintain required debt service coverage on bonded indebtedness issued on behalf of the CFD. In addition, the cash flow will (i) estimate the special tax burden on undeveloped property based on a given absorption scenario, (ii) determine the size of the initial and subsequent bond sales taking into consideration minimum value -to -lien requirements set forth in state law and City policy, and (iii) evaluate the increased bonding capacity that is created from an escalating special tax and debt service or other unique bond structure. East Ranch Project A-1 CFD Formation DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 GCG will either present the cash flow analysis at a second meeting or circulate the analysis to the working group for review prior to the second meeting. Subsequent iterations of the analysis will be prepared based on feedback from City staff, the developer, the financial advisor, bond counsel and other members of the working group. Ultimately, through review and discussion of each alternative, the team will select a special tax structure which GCG will incorporate in the Rate and Method of Apportionment of Special Tax prepared in Task A-3 below. A-3. Rate and Method of Apportionment of Special Tax Based on the special tax structure selected pursuant to Task A-2 above, GCG will prepare the Rate and Method of Apportionment of Special Tax (RMA), which will serve as the official special tax formula for the CFD. The RMA will provide detail and direction as to how the special tax should be levied in future years to ensure adequate revenues are available for timely repayment of debt service on bonded indebtedness issued by the CFD. The RMA will be included as an exhibit to the Resolution of Intention to Form the CFD, which will be adopted by the City Council as part of the first set of actions taken towards forming the CFD. In addition to providing guidance relative to the annual levy of special taxes in the CFD, the RMA will provide some or all of the following items: • Identification of the maximum special tax for each special tax category, including each category of developed and undeveloped property • Provision for a back-up special tax or alternate mechanism to be used to maintain maximum special tax revenues in the event that land uses change in future years • A detailed prepayment formula that will provide flexibility for a property owner to prepay all or a portion of the special tax obligation after some or all bonds have been issued for the CFD • If additional property is expected to annex into the CFD, a description of the "catch- up tax" that will apply to annexing parcels to equalize the cumulative special tax burdens A-4. Preparation of CFD Boundary Map GCG will prepare the official boundary map for the CFD in a format acceptable to the County Recorder's Office. The map will include the initial CFD boundaries, as well as identifying the boundaries of any future annexation area. GCG will record the CFD boundary map pursuant to Section 3111 of the Streets and Highway Code. A-5. Contributions to Other CFD Documents In coordination with the working group, GCG will review, prepare and contribute to other documents required in the CFD formation proceedings that relate specifically to the special tax formula. Specifically, GCG will: East Ranch Project A-2 CFD Formation DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 • Prepare the CFD Report required pursuant to Section 53321.5 of the Government Code • Review the Bond Purchase Agreement, Fiscal Agent Agreement and/or Bond Indenture to assure that the flow of special tax revenues and interest earnings as set forth in these documents are consistent with assumptions used in the Mello -Roos cash flow analysis • Review and record the Notice of Special Tax Lien • Review the Official Statement and, at the request of the financial advisor or underwriter, prepare tables demonstrating special tax coverage, diversification of special tax burdens among major landowners and/or general CFD cash flows • Execute the Certificate of Special Tax Consultant to confirm the adequacy of special tax payments to meet CFD obligations A-6. Meeting Attendance GCG will attend meetings with City staff and other members of the working group to acquire information, present cash flow alternatives, and review formation documents. In addition, GCG will attend City Council meetings to present the special tax formula and answer questions from the Council. A total of five (5) working group meetings and three (3) public meetings is included in the budget presented in Exhibit B below. B. CFD ADMINISTRATION B-1. Background Research GCG will gather information and construct a database that will be used to calculate the annual special tax levy. This task will include the following: Map & Parcel Research: Identify and obtain copies of all subdivision, final and parcel maps. Identify all relevant information such as date of subdivision, property use, and acreage of each parcel in the CFD. Once the Assessor's tax roll has been closed for the upcoming fiscal year, review the assessor parcel maps and determine the assessor parcel numbers that will be valid for the fiscal year. Building Permit Tracking: If required to implement the special tax formula, monitor on an annual basis which parcels have had building permits issued and the type of land use for which such permits or certificates have been issued. East Ranch Project A-3 CFD Formation DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 Classification of Property: Pursuant to the RMA, categorize each parcel to the appropriate special tax classification, including each category of Developed Property and Undeveloped Property. Database Management: Prepare a database for the CFD which will contain all properties, parcel numbers, square footage, assigned tax categories, and other relevant information which will allow for the assignment of the special tax pursuant to the RMA. B-2. Annual Special Tax Levy Calculation GCG will calculate the special tax levy for each taxable parcel in the CFD by applying the RMA. GCG will identify all CFD expenses including annual debt service, administrative expenses, and collection costs. Any applicable surplus special taxes, interest earnings, and other credits will be applied to reduce the annual special tax levy. B-3. Annual CFD Administration Report Preparation GCG will annually prepare a special tax administration report for the CFD which contains the results of our parcel research and findings of the financial analysis. An explanation of the methodology employed to calculate the special taxes levied will be incorporated. The report will also include annual reporting items required by the newly adopted Senate Bill 165 (Local Agency Special Tax and Bond Accountability Act). The appendix to this report will identify the special tax levy for each assessor's parcel for the fiscal year. B-4. Annual Special Tax Enrollment GCG will compile a list of parcels in the CFD that will be subject to the special tax levy and format it in compliance with the specific formatting instructions of the County Auditor - Controller' s office. The formatted tax levies will be submitted to the Auditor -Controller's Office on or before August 10 (or other specified date) for inclusion on the consolidated property tax bills. B-5. Delinquent Special Tax Reporting GCG will monitor the Auditor -Controller's tax collection summaries and report on delinquent parcels and corresponding delinquent CFD taxes. After discussion with the City, GCG will prepare and mail demand letters to property owners with delinquent special taxes. Additionally, GCG will work with the City to ensure the CFD's compliance with any foreclosure covenants and provisions in the bond documents. B-6. Answer Inquiries from Various Parties GCG will respond to property owners, realtors, title companies, appraisers and other parties' questions regarding the special tax and other CFD related issues. A GCG staff member will be listed as the contact for calls that are received by the Treasurer/Tax Collector's Office, and calls will be responded to on the day received. East Ranch Project A-4 CFD Formation DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 B-7. Mello -Roos Cash Flow Analysis If needed for subsequent bond issues for the CFD, GCG will update the financial cash flow model for the CFD to examine the relationship of special tax revenues and debt service requirements. This cash flow model will incorporate information regarding bonded indebtedness and current and projected development. B-8. Coordination of Foreclosure Activities If requested, GCG will assist the City in complying with provisions in the bond indenture or fiscal agent agreement regarding actions to be taken in the event of a foreclosure on a property due to tax delinquency. GCG will coordinate with City staff and legal counsel to identify those parcels for which judicial foreclosure will be initiated. B-9. Prepayment Calculations GCG will provide developers, title agents and other interested parties with the prepayment amount required to pay down the special tax lien on their property(ies). B-10. Bond Redemption Administration GCG will work with the homebuilders, title agents and bond trustee to ensure that prepayment checks are processed properly and the correct bond amount is redeemed at each interest payment date. GCG will further ensure that prepayment amounts are allocated to the appropriate CFD accounts. B-11. Disclosure Regulations Compliance GCG will provide information to the Nationally -Recognized Municipal Securities Information Repositories (pursuant to S.E.C. regulations) and the California Debt and Investment Advisory Commission (pursuant to Senate Bill 1464) and prepare special tax disclosure materials to home buyers as specified in Senate Bill 1464. This task shall include the following subtasks: • Prepare the annual Continuing Disclosure Report and respond to secondary information requirements set forth in SEC Section 15c2-12, as amended. • Submit the annual Fiscal Report as specified in Government Code Section 53359.5 to the California Debt and Investment Advisory Commission by October of each year. • Submit the annual Debt Transparency Report required pursuant to SB 1029 to the California Debt and Investment Advisory Commission by January 31 of each year. • Prepare special tax disclosure materials on OCII's behalf for resale properties as required by Government Code Section 53340.2. East Ranch Project A-5 CFD Formation DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 • Pursuant to SB 165, the Local Agency Special Tax and Bond Accountability Act, prepare annual reporting requirements regarding the disposition of the special taxes collected and bonds issued by a local public agency during the past fiscal year. B-12. Arbitrage Rebate Calculations If requested, GCG will prepare annual or five-year arbitrage rebate calculations. A report, identifying the rebate liability for the CFD, will be produced. GCG will determine the amount, if any, that must be rebated to the federal government at each five-year interval. East Ranch Project A-6 CFD Formation DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 EXHIBIT B -1 CITY OF DUBLIN FORMATION AND ADMINISTRATION OF THE EAST RANCH COMMUNITY FACILITIES DISTRICT BUDGET & FEE SCHEDULE A. CFD Formation The maximum budget for services associated with formation of the CFD is $35,000. Prior to the sale of bonds, GCG will bill for services on a time and materials basis using the hourly rates identified below. B. GCG Hourly Service Rates * Managing Principal $330/Hour Senior Principal $320/Hour Principal $285/Hour Vice President $250/Hour Senior Associate $225/Hour Associate $210/Hour Analyst $200/Hour Research Assistant $90/Hour * The fee schedule above is valid through December 31, 2021 and may be adjusted thereafter. Bond Issuance The fee for services provided by GCG related to the issuance of bonds, whether the first or subsequent series, will be determined based on the following schedule: First Bond Issue Size Up to $10,000,000 $10,000,000 - $25,000,000 $25,000,000 + Total Fee * $50,000 $50,000 + .0010 of amount over $10,000,000 $65,000 + .0008 of amount over $10,000,000 Upon the sale of bonds, the total fee will be paid from proceeds of the issue. If no bonds are sold, no fee will be paid. These maximum fees will be subject to an inflation adjustment after December 31, 2022. C. CFD Administration The budget for CFD administration services in the first two fiscal years is $15,000 per year plus expenses. This budget includes all aspects of CFD administration, including preparation of the tax levy, delinquency management, continuing disclosure, and arbitrage rebate calculations associated with the first bond issue. If a CFD includes multiple series of bonds, an additional $1,500 will be East Ranch Project B-1 Budget & Fee Schedule DocuSign Envelope ID: E34C5DAA-4DEB-47E1-88A1-4D1309FA3BD4 added for arbitrage rebate calculations for each subsequent series of bonds after the first bond issue. These budgets represent maximum amounts not to be exceeded; additional consulting services beyond those included in the scope of work may be provided within the maximum budget if total hourly billings are less than the budget maximum Alternatively, if the scope of work can be completed for less than the maximum budget, only hours actually expended will be billed. These maximum fees will be subject to an inflation adjustment after fiscal year 2022-23. D. Limitations The following services are not included in the scope of work provided above and will be billed on a time and materials basis or pursuant to a separate contract if needed: • Attendance at more meetings than that set forth for each component of the Scope of Work in Exhibit A • Formation of multiple CFDs • Issuance of subsequent series of bonds East Ranch Project B-2 Budget & Fee Schedule