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Home My WebLink About3162 RESOLUTION NO. 3 16 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH PUBLIC FINANCE INC. TO PROVIDE LOCAL IMPROVEMENT DISTRICT ADMINISTRATION SERVICES. WHEREAS, the city has no current Y2K compliant system and is in need of a system to provide administrative services. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH RESOLVES AS FOLLOWS: Section 1. The Mayor and the City Clerk of the City of Auburn are hereby authorized to execute a professional services agreement with Public Finance Inc. for the purpose of providing local improvement district administration services for the City of Auburn. A copy of which is attached as Exhibit "A" and incorporated by reference in this Resolution. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Resolution No. 3162 January 18, 2000 Page I DATED and SIGNED this 18th day of January, 2000. CITY OF AUBURN CHARLES A. BOC~I'H MAYOR ATTEST: City Clerk APPROVED AS TO FORM: Michael J. Reynolds, City Attorney Resolution No. 3162 January 18, 2000 . Page 2 City of Auburn Page 1 LID. Administration Services Agreement AGREEMENT TO PROVIDE LOCAL IMPROVEMENT DISTRICT ADMINISTRATION THIS AGREEMENT made and entered into by and between the CITY OF AUBURN, a Municipal Corporation in King County, Washington, hereinafter referred to as "CITY" and with Public Finance Inc., a Washington sole proprietorship, whose address is 17519 NE 137th St, Redmond, Washington 98052, hereinafter referred to as "CONSULTANT." In consideration of the covenants and conditions of this Agreement, the parties hereby agree as follows: SCOPE OF SERVICES Assessment Administration .1. Convert assessment record and payment information from existing file sources and maintain the data in our Windows-based software system. This information is readily available to city staff in electronic or printed form upon request. 2. Update real property ownership data each year. Regular database maintenance saves time and postage by reducing the number of returned billing statements. 3. Generate and mail billing statements to property owners each year until all assessments are paid in full. We will include a remittance coupon with Exhibit "A~' Resolution 3162 · City of Auburn Page 2 L.I.D. Administration Services Agreement each statement and enclose a pre-addressed return envelope to facilitate the prompt payment of installments. 4. Research and re-send all returned or undeliverable mail. 5. Provide a copy of the annual assessment roll for each LID showing the amount of principal, interest, overdue installments and penalties due on each account. 6. Payments will be collected by city staff or designated lockbox provider retained by the CITY. Receipts will be deposited directly into the appropriate account. At no time will CONSULTANT handle or have access to any LID funds. 7. Post payment transactions and report the allocation of principal, interest and penalty amounts for each payment. 8. Provide quarterly reports for each LID showing the original assessment for each active account, remaining principal balance, any overdue amounts and the amount required to pay the assessment in full. 9. Provide payment allocation reports each month showing the total amount of principal, interest and accrued penalties received and credited to each account. 10. Field telephone inquiries from property owners, title companies and other interested parties. Respond to written inquiries as requested. 11. Provide preopayment quotes, amortization schedules, delinquency status and other information to property owners or other interested parties upon request. City of Auburn Page 3 L. I. D. Administration Services Agreement 12. Generate a trial balance report each quarter to confirm that assessment principal is accounted for and posted properly. 13. General annual balance reports and other documentation to fulfill audit requirements. Communicate with State Auditor's Office as needed. 'Delinquency ,Management 1. Monitor the payment status of each account and post penalties following the end of the collection period each year. 2. Generate a quarterly report summarizing the overdue principal, interest and accrued penalties for each account. 3. Send overdue notices to delinquent property owners in a timely manner. The longer the problem is ignored, the more difficult, and more expensive, it may be to resolve. 4. With CITY approval, send a second notice to property owners who do not respond within the allotted time period. 5. Should the property fail to respond to these efforts, send certified Notices of Intent to Foreclose as required by Section 35.50.030 of the Revised Code of Washington. 6. Any accounts that remain delinquent and unresponsive will be turned over to the City Attorney's office for commencement of foreclosure proceedings. State law requires filing of foreclosure action whenever two installments are delinquent as of January 1st Of any given year, however, City of Auburn Page 4 L.I.D. Administration Services Agreement our objective is to cure the delinquency before such action becomes necessa~. City of Auburn Page 5 L.I.D. Administration Services Agreement CHARGES FOR SERVICES Initial Set Up There is a one-time charge of $375 to offset the cost of setting up the assessment database, validating real property information and reconciling historical transaction data. Assessment Administration Monthly charges are calculated on the basis of $40 per LID plus an account servicing fee reflecting the actual number of assessments as indicated by the schedule below. · 200 to 300 accounts $145 · 150 to 199 accounts 125 · 100 to 149 accounts 105 · 75 to 99 accounts 85 · 50 to 74 accounts 65 .. 25 to 49 accounts 45 · Less than 25 accounts 25 Example: The fee for six (6) LIDs and 178 accounts would be computed as follows: 6 LIDs @ $40 each $240 150 to 199 accounts 125 Total Monthly Fee $365 Delinquency Management · First Notice of Overdue Account (per account) $15 · Second Notice of Overdue Account (per account) $15 · Notice of Intent to Foreclose (per account) $45 City of Auburn Page 6 L.I.D. Administration Services Agreement The fees presented above include all incidental expenses except US postage, county processing fees and any outside printing costs. All such expenses will be passed through at actual cost. Any future increase in this fee structure is limited to the annual percentage change in the Average Wage Eamers and Clerical Workers Consumer Price Index for Seattle/Tacoma as published by the U.S. Department of Labor. PAYMENT Charges for LID Administration services will be invoiced on a quarterly basis. Charges for Delinquency Management will be invoiced as they occur. Payment will be due within thirty (30) days of the invoice date. STATUS Neither CONSULTANT nor personnel employed by CONSULTANT shall be deemed agents of the city for any purpose other than as specified herein. CONSULTANT shall be deemed an independent contractor and shall be responsible in full for payment of its employees, including worker's compensation, insurance, payroll deductions, and all related costs. INSURANCE The CITY will waive its requirement for professional liability insurance coverage. No insurance is required for this Agreement. City of Auburn Page 7 L.I.D. Administration Services Agreement CONTRACT CANCELLATION The City of Auburn may cancel this contract at anytime, for any reason, by providing written Notice of Intent to Cancel at least 30 days prior to cancellation. This notice must include the last day that service will be provided. Public Finance Inc. will turn over all electronic database and document information within 10 days of the contract cancellation. GENERAL PROVISIONS 1. This Agreement shall be governed by the laws, regulations and ordinances of the City of Auburn, the State of Washington, King County, and where applicable, Federal laws. 2. All claims, disputes and other matters in question arising out of, or relating to, this Agreement or the breach hereof, except with respect to claims which have been waived, will be decided by a court of competent jurisdiction in King County, Washington. Pending final decision of a dispute hereunder, the CONSULTANT and the CITY shall proceed diligently with the performance of the services and obligations herein. 3. The CITY and the CONSULTANT respectively bind themselves, their partners, successors, assigns, and legal representatives to the other party to this Agreement with the respect to all covenants to this Agreement. 4. This Agreement represents the entire and integrated Agreement between the CITY and CONSULTANT and supersedes all prior negotiations, representations or agreements either oral or written. This Agreement may be City of Auburn Page 8 LI.D. Administration Services Agreement amended only by written instrument signed by both the CITY and the CONSULTANT. 5. Should it become necessary to enforce any term or obligation of this Agreement, then all costs of enforcement including reasonable attorney's fees and expenses and court costs shall be paid to the substantially prevailing party. City of Auburn Page 9 L.I.D. Administration Services Agreement ACCEPTED BY: CITY OF AUBURN Charles A. Booth Mayor Date January 18, .2000 ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: Mc~hael~ity Attorney Pub, lic Finance Inc.. BY: 1 .' ......... .-z/,, /~,-;~ Rick M Kn f anagin~ ~'n~ector publi~c. 17519 NE 137th Street Redmond, WA 98052 Phone: (425) 885-1604 FAX: (425) Federal Tax ID # 556-37-5045