M&C Review


COUNCIL ACTION:  Approved on 3/21/2017 

DATE: 3/21/2017 REFERENCE NO.: **G-18969 LOG NAME: 13PID_ADMINISTRATION
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Authorize Execution of an Contract with MuniCap, Inc., to Provide Financial and Operational Administrative Services Related to the the Quail Valley and Rock Creek Ranch Capital Public Improvement Districts in an Amount Not to Exceed $350,000.00 (COUNCIL DISTRICTS 3 and 6)


RECOMMENDATION:

It is recommended that the City Council authorize the execution of a contract with MuniCap, Inc., for financial and operational administrative services related to the Quail Valley and Rock Creek Ranch Capital Public Improvement Districts in an amount not to exceed $350,000.00.

 
DISCUSSION:

The proposed Agreement between the City and MuniCap, Inc., provides services necessary to administer and operate the two newest Public Improvement Districts created by the City – PID No. 16 (Quail Valley) and PID No. 17 (Rock Creek Ranch) (collectively, PIDs). Unlike the City's existing Public Improvement Districts, Quail Valley and Rock Creek Ranch are both "capital" in nature and are anticipated to issue debt in the future. The services MuniCap will provide to the City include input and analysis of the initial Service and Assessment Plans, analysis of the bond issues, administrative and managerial support services for the day-to-day operation of the PIDs, including communication with property owners, calculation and allocation of the annual installment of the assessment, and collection oversight for assessment payments. MuniCap will also assist the City in performing arbitrage rebate calculations and assist in preparing continuing disclosure documents that will be required as part of the debt issuance.

Services performed under the Agreement will be paid from the proceeds of the PIDs, as appropriate, and are anticipated to be no greater than $350,000.00 per year. MuniCap's charges are as follows:

Consulting Services:

  • $30,000.00 for services related to levying assessments and issuing bonds for the initial phase of each PID, plus up to $5,000.00 in out of pocket expenses for the initial set-up charges
  • $15,000.00 for services related to levying assessments and issuing bonds for each additional phase of the PIDs, if any, with out-of-pocket expenses not to exceed $2,500.00 for each phase

Administration:

  • $30,000.00 per year for ongoing administrative expenses associated with the first phase of each PID, plus an estimated $5,000.00 to $7,500.00 for.one-time set-up costs
  • $10,000.00 per year for ongoing administrative expenses associated with each additional phase of the PIDs, if any, plus an estimated $2,500.00 to $4,000.00 for one-time set-up costs
  • The total administration fee for all phases of each individual PID will not exceed $60,000.00 per year (excluding one-time, set up costs)




Arbitrage Compliance:

  • $500.00 set-up cost for each bond issue
  • $1,250 per year for each bond issuance
 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds to pay for these services will be collected through the levy of an assessment from the PIDs.  Appropriations will be presented for Mayor and Council consideration when the assessments are finalized and the levy is presented.

TO
    Fund Department
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Account Project
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Program Activity Budget
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Amount

FROM
    Fund Department
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Account Project
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Program Activity Budget
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Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Aaron Bovos (8517)
Additional Information Contact:
Mark Krawczyk (7761)

 
 
ATTACHMENTS
  Form 1295.pdf