Report Prepared by: Melanie Karle, Accountant II, Finance
Title
SUBJECT: Approval of the Community Facilities Districts (CFD) Administration Professional Services Agreement with Goodwin Consulting Group, Inc. for a Three-Year Term, from November 4, 2022 to November 3, 2025, with a Renewal Option for Two Additional Years
REPORT IN BRIEF
Considers approving the Community Facilities Districts (CFD) Administration Professional Services Agreement with Goodwin Consulting Group, Inc. for a three-year term with an option to renew for two additional years.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding the Professional Services Agreement for the administration of Community Facilities Districts (CFD) to Goodwin Consulting Group, Inc.; and,
B. Authorizing the City Manager or the Deputy City Manager to sign the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended; or
2. Deny; or,
3. Refer to staff
AUTHORITY
Charter of the City of Merced, Section 3.04.110.
CITY COUNCIL PRIORITIES
As provided for in the 2022-23 Adopted Budget.
DISCUSSION
In 2003, the City of Merced approved a policy requiring all new development
within the boundaries of the City to form or annex into a Community Facilities District pursuant to the Mello-Roos Act of 1982 for services to be provided including all or a portion of the following: police and fire protection services, maintenance of parks, landscaping, street lighting, storm drain maintenance and other services authorized by the Act.
In addition, there were three Community Facilities Districts formed for the purpose of infrastructure financing. These districts require additional disclosure and reporting services as set forth in the financing agreement.
Goodwin Consulting Group, Inc. has been providing the Community Facilities Districts Administration Services since November 2, 2009. In 2014 the City of Merced completed a Request for Proposal and Goodwin Consulting Group, Inc. had the best overall score and a contract was awarded. The contract was for a five-year term with an option to renew for additional three-year term upon mutual agreement. In 2019, both parties agreed to extend the contract and the current contract expires on November 3, 2022.
In July 2022 the City of Merced put out a Request for Proposal for Community Facilities Districts Administration Services. Three responses were received by the deadline and evaluated. The criteria used in evaluating the responses to the Request for Proposal included technical scores for completeness and quality of the proposal, overall capabilities, experience and annual fees.
The estimated annual fees and total technical scores are as follows:
Annual Fees for Total Technical
CFD Administration Score (300 max points)
Goodwin Consulting Group, Inc $21,000 271
NBS $ 9,750 251
DTA $34,338 183
It is recommended that Goodwin Consulting Group, Inc. continues to provide CFD administration services to the City of Merced for a three-year term, with an option to renew for two additional years. Goodwin has done an excellent job as the CFD administrator for the past 13 years. They are the leading Mello-Roos special tax consulting firm based in northern California, specializing in both preparing the special tax formula during the formation of CFD and administering the special tax on an annual basis throughout the life of the district.
The City of Merced and Goodwin Consulting Group, Inc. have worked together on several projects including all four CFD formations. Goodwin Consulting Group, Inc is very familiar with the City of Merced Community Facilities Districts. They provided special tax consulting for both the Services and Infrastructure Financing Districts. They are currently working on annexations #21 & #23 of the Service Districts. We have an established rapport and they have always provided great service and excellent work.
IMPACT ON CITY RESOURCES
No budget appropriation is required; the CFD administration cost is included in the fiscal year 2022-23 budget and is fully paid by the CFD special tax assessment.
ATTACHMENTS
1. Goodwin Consulting Group, Inc Contract