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NBS Government Finance GroupCITY OF LA QUINTA Statement of Qualifications for: Land-Secured Financing Services March 5, 2025 nbsgov.com Aerial view of City of La Quinta via Google Earth helping communities fund tomorrow since 1996 helping communities fund tomorrow 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 nbsgov.com March 5, 2025 1 |COVER LETTER Rosemary Hallick Principal Management Analyst City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 RE: Statement of Qualifications for Land-Secured Financing Services Dear Rosemary, We understand that the City of La Quinta (City) faces several upcoming challenges related to annexation of property in the City’s Sphere of Influence, potential expansion of the Sphere, potential utility undergrounding and concerns about aging electrical infrastructure and provision of electric services. These and other issues may require new capital funding sources such as Assessment Districts ADs) or Community Facilities Districts (CFDs). We can assist the City in both the feasibility and formation of both ADs and CFDs, including ADs formed under the 1911 Act, the 1913 Act, or if applicable, under the PBID Law of 1994. We offer decades of technical experience with these financial tools. Our interactive approach will incorporate stakeholder involvement to ensure that the resulting funding mechanism meet the needs of the City, property owners, residents and developers. Choosing NBS for this important project offers the following advantages: Exemplary Team – Our team is comprised of assessment and special tax finance specialists with decades of experience. Technically Sound Funding Alternatives – We will take a creative approach in evaluating revenue options while providing technically sound recommendations founded on established industry-accepted practices. The NBS headquarters in Temecula, California will serve as the location of the office that would service this project. Pricing provided in the presentation is valid for at least ninety (90) days. Any individual who will perform work for the City on behalf of NBS are free of any conflict of interest. Please contact me at 800.676.7516 or via email at smares@nbsgov.com if you have any questions or would like to discuss our professional qualifications further. We would genuinely like to work on this project and help the City move forward successfully. Sincerely, Sara Mares Michael Rentner, Authorized Signer Chief Operating Officer President Statement of Qualifications for City of La Quinta NBS | ii District Formation Consulting BACKGROUND, QUALIFICATIONS, AND EXPERIENCE In Business NBS is a 100% employee-owned S-Corporation (not a subsidiary) NBS HEADQUARTERS 32605 Temecula Pkwy | Suite 100 Temecula, CA 92592 CONTACT Sara Mares | 800.676.7516 smares@nbsgov.com LEGAL NAME NBS Government Finance Group DBA NBS INDIVIDUAL AUTHORIZED TO NEGOTIATE AGREEMENT Michael Rentner, President The NBS District Formation Consulting practice ensures your Special Financing Districts (SFD) and related revenue tools are well-developed from their inception. We act as strong advocates for our public agency clients to ensure that any SFD or other revenue tool is appropriate and well-crafted for the need. Throughout our engagement, we provide sage guidance and recommendations. We are often called upon to present complex issues to councils, boards and interested parties. We have supported thousands of SFDs including millions of parcels and have worked through virtually every conceivable challenge in their use. Our experience is with all manner of property related fees, special assessments, and special taxes – including Community Facilities Districts (CFDs). Whether the need is identifying and funding negative fiscal impacts, financing needed infrastructure, or providing community-desired services, our expert consultants have deep experience and help navigate the challenges. AT-A-GLANCE: HELPING COMMUNITIES FUND TOMORROW Incorporated on May 13, 1996 in California, NBS provides the following services to our local agency clients: •Since 1996, Special Financing Districts (SFDs), formation and administration of special assessments and taxes, including Community Facilities Districts •Water and wastewater utility rate programs •Cost allocation plans •User, Regulatory and Development Impact Fees •Public Outreach and Community Engagement 29 YEARS 52 employees Statement of Qualifications for City of La Quinta NBS | iii How NBS Stands Out NBS’ Community Facilities Districts (CFDs) publication. We believe in continuing education, not only for our own team, but also for our clients and municipal staff. As industry leaders, we have a unique set of qualifications and experience in the work we perform. In that regard, we have published four booklets on related industry topics that can be downloaded at no charge at www.nbsgov.com/insights (click on NBS Publications). For a hard copy, please call 800.676.7516 or email contactnbs@nbsgov.com. Community Facilities Districts (CFDs) explains this robust funding and financing tool for local governments in California and relates to the City’s current project needs. • Special Financing Districts (SFDs) has been credited as the best publication on SFDs in a decade by prominent industry professionals. • NBS produced a video titled An Introduction to Community Facilities Districts in California, available by clicking here. NBS Key Personnel Assigned to Project NBS’ staff of 52 professionals have extensive experience in the fields of finance, management, engineering, and local governance and combine their knowledge to produce a synergy that results in maximum success and minimum risk. We work with our clients as partners by developing an intricate knowledge of their needs and responding with strategic and timely solutions. The following is a brief overview of the NBS key personnel proposed to manage and complete the work noted for this engagement. SARA MARES, SENIOR REVIEW Roles and Responsibilities: Sara Mares will provide technical review, including the evaluation of alternatives and results, as needed throughout the project. She will assist the project team in developing the best solutions that will fit the City’s unique characteristics and issues. Statement of Qualifications for City of La Quinta NBS | iv Work Experience: Sara Mares is NBS’ Chief Operating Officer with more than 24 years of experience with NBS. She forms Special Financing Districts (SFDs), specializing in Community Facilities Districts and related bond issuance. She also has significant background in forming various types of Assessment Districts. Sara has experience working with all aspects of the formation, annexation and debt issuance process, including planning, project management, budget analysis, rate modeling, financial analyses, formulation of rate and methods of apportionment, and public presentations. She spent many years involved in ongoing special district administration, including working with distressed districts, and brings that experience and perspective to every formation project she works on. She is a registered Municipal Advisor Representative. SANDRA BURKHART, SENIOR CONSULTANT Work Experience: Sandra Burkhart is a Senior Consultant with NBS. She has a broad background in Special Financing Districts (SFDs), including formations and tax/assessment increases for a variety of types of special assessments and special taxes. In addition, Sandra is versed in annual SFD administration for many types of SFDs. Her depth of experience spans special project implementation and administration, including coordination of public hearings and assisting with code compliance. Sandra‘s two decades of professional experience includes six years working for public agencies; she brings a valuable public agency perspective to her work. Sandra is a registered Municipal Advisor Representative. NICK DAYHOFF, SENIOR CONSULTANT Work Experience: Nick Dayhoff has been with NBS for 19 years. As a Senior Consultant, he is actively involved with new Special Financing District (SFD) formations including Assessment Districts and Community Facilities Districts, parcel tax modeling, bond issuance/refunding analyses, fiscal impact analyses, and feasibility studies. Nick is a Registered Municipal Advisor Representative. GREG GHIRONZI, SENIOR CONSULTANT Work Experience: Greg Ghironzi is a Senior Consultant with NBS in our District Formation Consulting Group. With more than 30 years of experience in public finance, he possesses a broad understanding of local government management and public revenue tools. Greg assists public agencies with feasibility analysis and selection of appropriate financing tools where several options are legally feasible. He applies his years of experience to match the project with the available solutions of taxes, assessments, and fees. Greg then provides Proposition 218 compliant formation, annexation, and ongoing administration of land-based Special Financing Districts (SFDs) to fund capital projects and ongoing maintenance and services. He has prepared rate and method of special tax apportionment and special assessment / special benefit methodologies and models, and he has formed 250+ SFDs. Greg is a Registered Municipal Advisor. TABLE OF CONTENTS 1 | COVER LETTER…………………………………………………………………………………………………..PREVIOUS SECTION BACKGROUND, QUALIFICATIONS, AND EXPERIENCE ............................................................ II 2 | REFERENCES OF CALIFORNIA GOVERNMENT AGENCIES .................................................................. 1 3 | COMPLETE PRICING LIST FOR FEE SCHEDULE ................................................................................... 5 4 | LIST OF COMPLIMENTARY SERVICES ................................................................................................. 7 5 | STAFFING AND PROJECT ORGANIZATION ....................................................................................... 10 6 | SUBCONTRACTING SERVICES .......................................................................................................... 11 7 | DISCLOSURES .................................................................................................................................. 12 8 | EXPLANATION OF METHODOLOGY ................................................................................................. 14 9 | NON-COLLUSION AFFIDAVIT (ATTACHMENT 1) .............................................................................. 16 APPENDICES .......................................................................................................................................... 17 APPENDIX A | PROJECT TEAM RESUMES .............................................................................................. 18 APPENDIX B | ADDENDUM ................................................................................................................... 23 Statement of Qualifications for City of La Quinta NBS | 1 2 | REFERENCES OF CALIFORNIA GOVERNMENT AGENCIES Below is a sampling of projects and references similar in scope and magnitude to the City’s needs. CITY OF FOLSOM, CA CFD FEASIBILITY STUDY AND FORMATION FOR THE FOLSOM PLAN AREA Project Dates: 2013 – Present Contact Information The City of Folsom’s Folsom Plan Area (“FPA”) is located on approximately 3,500 acres and is envisioned to contain approximately 10,200 residential units and 5.2 million building square feet of non-residential space. The City is utilizing CFD financing to fund a portion of the estimated $877 million backbone infrastructure and public facilities necessary to serve the FPA at buildout. NBS serves as the City’s ongoing CFD special tax consultant and has assisted in the development of a financing structure that will allow for a consistent special tax per EDU for all FPA-wide improvements and services, increased flexibility in the debt service structure, and minimizes the number of line items on the future homeowner’s property tax bill. John Donoghue Deputy Treasurer 50 Natoma Street Folsom, CA 95630 P: 916.355.7334 E: jdonoghue@folsom.ca.us NBS Project Manager(s): Greg Davidson, and Stephanie Parson COUNTY OF IMPERIAL GATEWAY COUNTY SERVICE AREA ASSESSMENT DISTRICT NO. 2024-1 (SERVICES ASSESSMENT DISTRICT) Service Dates: 2021 – 2024 Contact Information: Naomi Robles Administrative Analyst III Imperial County Dept of Public Works 155 S. 11th Street El Centro, CA 92243 P: 442.265.1843 E: naomirobles@co.imperial.ca.us NBS Project Manager: Sara Mares, Sandra Burkhart NBS was charged with the administration of an assessment within the Gateway County Services Area which was formed initially in 1998 with updates completed in 2001. Changes to the area and needs for increased funding to accomplish significant maintenance to the water and sewer systems along with street lighting operation and common area maintenance necessitated an assessment increase. A complete revision of the County Service Area Law and current parameters of Prop 218 combined to require a fresh look at the assessment district. The new assessment district was approved by property owners and will replace the old assessment. Statement of Qualifications for City of La Quinta NBS | 2 CITY OF LINCOLN, CA CFD FORMATION SERVICES Project Dates: 2018-2019 Contact Information City of Lincoln CFD 2019-1 (Independence). NBS was hired to form a bonded CFD to reimburse a developer for transportation, water system , recycled water system, drainage, wastewater, and park improvements to be constructed. Through the formation process, it became apparent that funding would be needed in the future for park maintenance and capital replacement. NBS worked with the City to develop a “transitional CFD” that allows the special tax to transition from paying for debt service to a lower rate that will fund the maintenance and replacement needs. Ray Leftwich Public Works Director/City Engineer 600 Sixth Street Lincoln, CA 95648 P: 916.434.2457 E: Ray.Leftwich@lincolnca.gov NBS Project Manager: Sara Mares, Nick Dayhoff CITY OF LIVERMORE ASSESSMENT DISTRICT FORMATION Service Dates: 2016 – 2021 Contact Information Mallika Ramachandran Assistant City Engineer 1052 South Livermore Avenue Livermore, CA 94550 P: 510.754.6171 E: mramachandran@cityoflivermore.net Pleasant View Lane - The area around Pleasant View Lane was a pocket of County land within the City of Livermore. As such, it was required to annex to the City, but failing septic systems, a narrow road and updates to street lighting, grading and striping were required to be completed prior to annexation. NBS formed AD No. 2016-2 to finance the required improvements which were ultimately funded with a City- issued and held bond. Trevarno Road - Initially, NBS provided a financing options memorandum considering various financing mechanisms to allow property owners to finance replacement of failing private water and sewer infrastructure. An Assessment District was selected as the most appropriate financing tool. For the Assessment District formation process, NBS prepared all necessary assessment documents, including Engineer’s Report, Assessment Diagram, public hearing documents, ballots, and cash pay off letter. We also fielded property owner phone calls and provided outreach through several property owner meetings and outreach materials. NBS Project Manager: Sara Mares and Sandra Burkhart Statement of Qualifications for City of La Quinta NBS | 3 CITY OF PALMDALE FISCAL IMPACT ANALYSIS AND CFD FORMATION FOR RITTER RANCH DEVELOPMENT Service Dates: 2021 – Present Approximate Contract Amount: $43,000 Contact Information In 2021, NBS was contracted by the City to prepare a fiscal impact analysis for phase one of the Ritter Ranch Development. NBS identified the fiscal impact of the 1,180 for-sale residential homes that comprise phase one of the master plan. The analysis considered City financials and projected future revenues and expenditures resulting from the addition of new homes and residents to the City. The analysis informed the services Community Facilities District (CFD). Tim Carney Collection System Superintendent 38300 Sierra Highway Palmdale, CA 93550 P: 661.267.5367 E: tcarney@cityofpalmdale.org NBS Project Manager(s): Sara Mares, Sandra Burkhart CITY OF RANCHO CUCAMONGA FISCAL IMPACT ANALYSIS & CFD FORMATION, DEVELOPMENT IMPACT FEE Service Dates: 2015 – Ongoing Project Cost: Approximately $112,500 Contact Information (FIA & CFD) The City of Rancho Cucamonga has entrusted NBS with various Special Financing District (SFD) Consulting projects over the past several years, from Fiscal Impact Analysis (FIA), Maintenance Assessment District (MAD) Formation and Proposition 218 Compliance, to CFD Formation, Annexation and ongoing annual administration of the City’s SFDs. The FIA work completed for the City involved several existing MADs, which were outdated and underfunded. In lieu of developing property annexing into these outdated MADs, NBS worked with the City to establish new CFDs with special tax rates to provide an optimal level of service. The funding levels and CFD special tax rates are supported by a FIA evaluating the baseline, current, and optimal level of funding for the existing MADs, but also included funding levels and costs specific to the development of the defined project area. This study updated impact fees previously calculated for the City of Rancho Cucamonga by Joe Colgan in 2014. Together, NBS and Joe Colgan completed an impact fee update study for Park Land and Improvements, Community and Recreation Centers, Libraries, and Police Facilities. The work of this study included updating demographic data, including the inclusion of a major annexation, as well as facility costs used in the impact fee calculations. Updated impact fees were calculated to reflect those changes. Kelly Guerra Special Districts Analyst 10500 Civic Center Drive Rancho Cucamonga, CA 91730 P: 909.477.2700 Ext. 2582 E: kelly.guerra@cityofrc.us Contact Information (DIF) Brian Sandona Senior Engineer 10500 Civic Center Drive Rancho Cucamonga, CA 91729 P: 909.477.2740 Ext 4020 F: 909.477.2849 E: Brian.Sandona@CityofRC.us NBS Project Manager(s): Stephanie Parson, Sara Mares, Sandra Burkhart (FIA & CFD), Nicole Kissam (DIF), Joe Colgan (DIF) Statement of Qualifications for City of La Quinta NBS | 4 CITY OF SIERRA MADRE ASSESSMENT DISTRICT FORMATION SERVICES Project Dates: May 2020 – January 2021 Contact Information The City’s downtown area had multiple assessments in place to fund a variety of services. NBS was engaged to form a new Landscape and Lighting Assessment District that would consolidate the services under one funding tool, expand the services and create a more inclusive Downtown LLD. NBS provided detailed general and special benefit analysis and assessment engineering services for the new District, including developing a new Engineer’s Report, along with mailed notices and ballots. Chris Cimino Director of Public Works 232 Sierra Madre Boulevard Sierra Madre, CA 91024 P: 626.355.6615 E: CCimino@cityofsierramadre.com NBS Project Manager: Sandra Burkhart, Sara Mares As part of this study, NBS carried out a detailed analysis of a random sample of 2019 police calls for service to establish the distribution of calls among various types of development and to calculate calls-per-unit-per year factors for use in the impact fee calculations. The City Council adopted the updated impact fees in December 2020. NBS is currently under a separate contract to review Fire Protection Facilities fees for the Rancho Cucamonga Fire District. The final report for this study is complete and pending Board review and adoption. Statement of Qualifications for City of La Quinta NBS | 5 3 | COMPLETE PRICING LIST FOR FEE SCHEDULE Our proposed fees below are based upon our understanding of the varied project areas and include reasonable assumptions on iterations and number of meetings. We understand that there may be project areas with varying degrees of complexity. As with all of our engagements, we fully expect to collaborate with the City to refine the final scope and fee if selected for this effort. CFD FORMATION Bonded CFD Formation ................................................................................................... $24,500 to $38,500 Factors such as number of Improvement Areas, number and type of voters (registered voters or landowner electors), number of parcels and overall complexity of the special tax formula affect pricing. Bond Issuance Disclosure ................................................................................................ $18,500 to $28,500 Factors such as number of parcels and overall complexity of the financing and data required affect pricing. ASSESSMENT DISTRICT FORMATION Bonded AD Formation ..................................................................................................... $28,500 to $68,500 Factors such as number of parcels, number of property owners and overall complexity of the assessment methodology affect pricing. Bond Issuance Disclosure ................................................................................................ $18,500 to $28,500 Factors such as number of parcels and overall complexity of the financing and data required affect pricing. EXPENSES Customary out-of-pocket expenses are billed at the actual cost incurred. These expenses may include mailing fulfillment, postage, reproduction, telephone, travel, meals and various third-party charges for data, maps, and recording fees. ADDITIONAL SERVICES The table below shows our current hourly rates. Additional services authorized by the City but not included in the scope of services will be billed at this rate or the then applicable hourly rate. Title Hourly Rate Senior Review $275 Director $250 Associate Director / Engineer $225 Senior Consultant $200 Consultant $175 Senior Project Analyst $165 Project Analyst $150 Project Resource Analyst $130 Clerical / Support $110 Statement of Qualifications for City of La Quinta NBS | 6 TERMS Formation services will be invoiced monthly. Fees for all other services will be invoiced monthly for work completed. Expenses will be itemized and included in the next regular invoice. If the project is prematurely terminated by either party, NBS shall receive payment for work completed. Payment shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days, simple interest will begin to accrue at the rate of 1.5% per month. Either party can cancel consulting contract with 30 days’ written notice. Statement of Qualifications for City of La Quinta NBS | 7 4 | LIST OF COMPLIMENTARY SERVICES Optional Engagement Services As communication is paramount, the NBS team developed the CivicMic platform, which focuses on providing collaborative governance services including outreach, public engagement, and adaptive management, bringing citizen voices into the governance process. Through our customized approach, we engage residents of diverse backgrounds for unique perspectives using social media and other collaborative activities. Optional engagement services for this project include: INITIAL RESEARCH – KICK-OFF MEETING, PROJECT SCHEDULE NBS will communicate with the City throughout the project's duration to clarify the City's goals, identify any particular circumstances, and develop a realistic project schedule. NBS will meet with City staff, legal counsel, and other interested parties to: • Establish lines of communication • Clarify the specific project goals and criteria that will meet the City's preferences • Identify and resolve any special circumstances regarding the engagement process • Develop an annual engagement schedule to provide for effective interaction of stakeholders CREATION OF A COMMUNICATION TOOLKIT Develop a comprehensive toolkit including website content, talking points, multilingual FAQs, postcards, content releases, timelines, checklists, and guidelines for various communication activities. WEBPAGE CREATION – DEVELOP AND DEPLOY CONTENT TO A DEDICATED DISTRICT WEBPAGE AND SOCIAL MEDIA This task includes but is not limited to the following items: • Background on the need for this project and revenue • History of use of current funds available to the City • Legislative background • Annual reports • Surveys • Meeting announcements and minutes • Recordings of community meetings • Calendar of anticipated events (such as community meetings and service schedules) • Specialized mapping and graphics. The sample map shown here details parcels engaged in a community on CivicMic.com Statement of Qualifications for City of La Quinta NBS | 8 EMAIL CAMPAIGN – ESTABLISHMENT OF AN EMAIL LIST Using the CivicMic platform, we will establish an email contact list for most participants in this engagement. In addition, multiple postcards will be mailed out announcing the survey and community meetings and explaining how to sign up at CivicMic.com to receive updates. FOCUSED COMMUNITY MEETINGS – PROVIDE THE FOLLOWING MEETING SERVICES: • Hosting one virtual and one in-person meeting to allow the community to discuss current issues • Creation and posting of Community Meeting notices on various outlets • Leading of meetings with objectives created with the City before the meeting • Development of action items based on feedback received at Community Meetings or from surveys and other ongoing communication efforts • Recordings of Community Meetings that will be shared to CivicMic.com and social media sites SURVEYS – DEVELOP ONE ONLINE/MAILED SURVEY TO GATHER INFORMATION Surveys will be sent at the beginning of the engagement efforts to determine support for a CFD and to create an educational outreach plan. WORKING GROUP The CivicMic team will work with previously identified stakeholders in the community to educate them on a closer level about the formation process and provide resources for roadblocks in sharing information. This group will meet monthly until the notice of intent is approved by the Town Council. Community Facilities District (CFD) Administration NBS will meet with City staff, legal counsel and other interested parties to kick the process off, request and confirm data needs and discuss project milestones. NBS will then provide a financial snapshot based on a cash flow analysis utilizing funds on hand and the Special Tax Requirement (including upcoming debt service needs coupled with administrative cost recovery (as outlined in §53317(e) and §53340 of the Government Code of the State of California). NBS will calculate and submit the annual special tax levy for each parcel pursuant to the Rate and Method of Apportionment to the County of Riverside, with direct bills sent for low assessed value/non-billable parcels. NBS will provide an annual Special Tax Levy Report that details the financial health of the District annually. In addition, NBS will provide delinquency monitoring and other disclosure related reporting as required (Continuing Disclosure, CDIAC reporting, SB 165 reporting, State Controller’s Office AB 2109 reporting, Notice of Special Tax, etc.). And importantly, NBS has a well-staffed Customer Care department to respond to interested parties and property owners regarding the CFD, prepayment calculation requests, etc., with bilingual staff available for Spanish-speaking property owners. Assessment District (AD) Administration NBS will hold a kick-off meeting to establish communication and review annual procedures. They will collect relevant parcel data and update and maintain a database of District data and annually track and maintain parcel changes and assessment lien apportionment data. NBS will assist in identifying costs associated with Statement of Qualifications for City of La Quinta NBS | 9 administration for cost recovery through the levy, they will review District balances and make recommendations to ensure fund balances are in compliance with bond documents and to determine the sufficiency of the flow of funds. They will calculate and submit the levy to the County Auditor-Controller. Parcels not accepted for collection on the tax rolls will be invoiced directly. NBS will then provide an Annual Report that will include details relevant to the District and annual levy, and provide a report of delinquencies after each installment becomes due. NBS will prepare bond call documents and coordinate the call with the Paying Agent/Trustee and will provide prepayment calculations and amortization schedules. They will prepare documents required to release the liens of parcels that have prepaid the assessment and will provide a GC §53754 "Notice of Special Assessment”* disclosure notice on request. NBS will prepare required Annual Continuing Disclosure Reports*, GC §53754 CDIAC Reports, and R&T 163 Reports as well as provide a toll-free phone number for property owners and other interested parties. Bilingual staff is available for Spanish-speaking property owners. *Additional related services are available, and fees may apply to either the City or requesting party. Detailed scopes and fees for additional services can be provided upon request. Statement of Qualifications for City of La Quinta NBS | 10 5 | STAFFING AND PROJECT ORGANIZATION One of our greatest strengths and a critical element in successful project execution is a team that works cohesively, efficiently, and has expertise in resolving complex issues. We treat our clients as partners by developing an intimate knowledge of their needs and responding with strategic and timely solutions. The staff selected are those most qualified based on their experience and backgrounds. Outlined below is a brief overview of NBS’ proposed consulting team for the City: Project Organizational Chart All work will be performed in-house by the above employee-owners of NBS. Full resumes are included on the following pages. Sara Mares Senior Review Nicole Kissam Client Services Director Jeremy Jung GIS Senior Consultant GIS Mapping Project Management Client Services City Stakeholders, Management and Staff Sandra Burkhart Nick Dayhoff Greg Ghironzi Senior Consultants Depending on the specific project scope and timing, any one of the above listed senior consultants may serve as Project Manager. Review/Approval of NBS Engineer’s Report John Egan, PE Jeremy Tamargo Customer Care Team Statement of Qualifications for City of La Quinta NBS | 11 6 | SUBCONTRACTING SERVICES NBS will not be utilizing subcontracting services for this effort. Statement of Qualifications for City of La Quinta NBS | 12 7 | DISCLOSURES Litigation We have had no lawsuits, litigation nor claims during the past five years. We did have two instances that could be termed “requests” over the five-year period. Both were amicably resolved via corrections and certain refunds made by NBS. The latter is not uncommon in our industry involving Special Financing District Administration services where millions of calculations are made annually based on tens of millions of data inputs. Disclosure of Conflicts of Interest and Legal or Disciplinary Events Pursuant to the Municipal Securities Rulemaking Board (“MSRB”) Rule G-42 on Duties of Non-Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients and potential clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of NBS Government Finance Group (“NBS”) and its associated persons. CONFLICTS OF INTEREST Compensation NBS represents that in connection with the issuance of municipal securities, NBS may receive compensation from an Issuer or Obligated Person for services rendered. Any such compensation may be contingent upon the successful closing of a transaction and/or is based on the size of a transaction. Consistent with the requirements of MSRB Rule G-42, NBS hereby discloses that such contingent and/or transactional compensation may present a potential conflict of interest regarding NBS’ ability to provide unbiased advice to enter into such transaction. This conflict of interest does not impair NBS’ ability to render unbiased and competent advice or to fulfill its fiduciary duty to the Issuer. It should be noted that other forms of compensation (i.e., hourly or fixed-fee based) may also present a potential conflict of interest regarding NBS’ ability to provide advice regarding a municipal security transaction. These other potential conflicts of interest will not impair NBS’ ability to render unbiased and competent advice or to fulfill its fiduciary duty to the Issuer. The fee paid to NBS increases the cost of investment to your agency. The increased cost occurs from compensating NBS for municipal advisory services provided. Other Municipal Advisor Relationships NBS serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another NBS client. For example, NBS serves as Municipal Advisor to other municipal advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to your agency. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, NBS could potentially face a conflict of interest arising from these competing client interests. NBS fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with your agency. If NBS becomes aware of any additional potential or actual conflict of interest after this disclosure, NBS will disclose the detailed information in writing to the issuer or obligated person in a timely manner. Statement of Qualifications for City of La Quinta NBS | 13 LEGAL OR DISCIPLINARY EVENTS NBS does not have any legal events or disciplinary history on NBS’ Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations, and civil litigation. The Issuer may electronically access NBS’ most recent Form MA and each most recent Form MA-I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html. There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC. If any material legal or regulatory action is brought against NBS, NBS will provide complete disclosure to the Issuer in detail allowing the Issuer to evaluate NBS, its management and personnel. Pursuant to Municipal Securities Rulemaking Board Rule G-10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal entity and obligated person clients which include the following: • NBS is currently registered as a Municipal Advisor with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board. • Within the MSRB website at www.msrb.org, the Municipal Advisory client brochure that is posted on the MSRB website may be obtained. The brochure describes the protections that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities. Statement of Qualifications for City of La Quinta NBS | 14 8 | EXPLANATION OF METHODOLOGY Explanation of Methodology: Community Facilities District Formation NBS approaches each Community Facilities District formation as a problem solver. Our aim is for the City to stand out in front of its constituents, to include its developers, property owners, City Council, and other interested parties. The goals of each CFD are unique and we tailor the development of the Rate and Method of Apportionment and design of the Special Tax Rates to first and foremost meet the local goals and policies set by the City, and achieve the desired outcomes. To this end, we have formed CFDs throughout California to include the following features: • Multiple Improvement Areas • Future Annexation Area with provisions for streamlined annexation • Financing facilities and funding services in a single CFD • Transitional special tax that allows special tax funds to be used for bonds initially, then services following the bond repayment • Contingent special taxes that are only levied under specific circumstances • City-wide registered voter CFDs We approach this project as an extension of City staff. NBS works with you as partners and listens to your concerns; we will solicit your active involvement in the project yet respect your time by not burdening you with unnecessary requests. In order to provide these advantages to the City, we believe that communication is a key factor. NBS manages the above analysis using tools we have developed over many years of providing similar services. To wit, we have customized cost estimation and budgeting tools and GIS Dashboards that provide our clients with resources to work collaboratively through the CFD formation process. Explanation of Methodology: Assessment District Formation NBS approaches every assessment district with a fresh look to evaluate the location and nature of the specific improvements and services, the characteristics of the property receiving special benefits and the varying circumstances that may be present. Behind that fresh look is the experience of our team who have been performing annual administration, formation and Prop 218 compliance services for more than 20 years. Those years have seen an evolution in process and standards with every revision to the law and every new court case that interprets that law and NBS staff is at the forefront of the assessment engineering practice. This work begins with: 1. Identifying the location of the improvements being maintained 2. Ascertaining accurate maintenance and servicing cost estimates, including a ten-year budgeting forecast inclusive of any needed capital replacement or larger periodic maintenance costs 3. Reviewing the district boundary and parcels assessed 4. Appraising the current general and special benefit language 5. Evaluating the characterization and proportional allocation of special benefits 6. Making recommendations as to how to address any deficiencies discovered Statement of Qualifications for City of La Quinta NBS | 15 NBS manages the above analysis using tools we have developed over many years of providing similar services. To wit, we have customized cost estimation and budgeting tools and GIS Dashboards that provide our clients with resources to work collaboratively through the assessment review and subsequent assessment engineering process. NBS Engineer’s Reports will represent the culmination of the prior analysis and recommendations. Special care is taken in the writing of the Engineer’s Reports to prepare a document that is both clear and concise, but also addresses the specificity required of a defensible assessment methodology. It has been made clear through various court cases that simply saying that X% of the benefit is general with no rationale or attempt to utilize metrics to calculate such percentage is not appropriate. Further, simply stating that all parcels receive the same proportional special benefit with no analysis is likewise insufficient. NBS staff has extensive experience presenting the complex and perhaps arcane topic of assessment engineering to a variety of stakeholders including staff, Council and property owners. We strive to communicate in a manner that is detailed yet concise and encourage open dialogue to ensure a full understanding is achieved. NBS believes that deliberate and thoughtful communication develops trustworthy and engaged property owners willing to collaborate with the City in finding solutions. Full scopes are available upon request. Statement of Qualifications for City of La Quinta NBS | 16 9 | NON-COLLUSION AFFIDAVIT (ATTACHMENT 1) Statement of Qualifications for City of La Quinta NBS | 17 APPENDICES The appendices contain: • Appendix A: Full Resumes for our Key Project Personnel • Appendix B: Addendum Statement of Qualifications for City of La Quinta NBS | 18 APPENDIX A | PROJECT TEAM RESUMES Statement of Qualifications for City of La Quinta NBS | 19 EDUCATION • Bachelor of Arts, with honors, Economics, Mills College • Continuing education from UC Davis, UCLA, CDIAC, etc. HIGHLIGHTS • Registered Municipal Advisor Representative • 24 years of experience • Expert Special Tax Consultant • District Formations • Reassessment Consulting • Proposition 218 AFFILIATIONS • California Society of Municipal Finance Officers (CSMFO) • California Special Districts Association (CSDA) • Committee on Special Assessments, Taxes and Other Financing Facilities (CASTOFF) • Women in Public Finance (WPF) SPEAKING / MEDIA • Maintenance Services Funding: A Finance/Public Works Convo, 2023 CSMFO Annual Conference • Revenue Recovery: From Riches to Rags, and Back to Riches? 2022 CSMFO Annual Conference • Show Me More Money: Optimizing Revenues in a Post-COVID World. 2022 CSMFO Annual Conference • Park & Rec Fiscal Toolbox. 2021 CARPD Annual Conference • A Revenue Cornucopia: A Multi- Faceted Approach to Funding. 2021 CSMFO Annual Conference BIOGRAPHY Sara Mares is a Chief Operating Officer with NBS. She forms Special Financing Districts (SFDs), including Community Facilities Districts, Property and Business Improvement Districts, 1913 Act Assessment Districts, Landscape and Lighting Districts, Benefit Assessment Districts and Fire Assessments. Sara has experience working with all aspects of the formation process, including planning and feasibility, project management, budget analysis, development of Rate and Method of Apportionment and Engineer’s Reports and presentations. She also has significant experience with ongoing SFD administration including levy submittal, delinquency management and continuing disclosure. RELEVANT PROJECT EXPERIENCE TEAM RESUME SARA MARES | Chief Operating Officer • City of Patterson CFD Formation. Formation of services CFD with Future Annexation Area, Subsequent Annexations. CFD funds maintenance and operation of streetlights, landscaping storm drainage, etc., for residential property in the City. Formation completed in 2018, subsequent annexations through 2020. • City of Lincoln CFD 2019-1 (Independence). Formation of facilities CFD that transitions to a services CFD. CFD finances transportation, water system , recycled water system, drainage, wastewater, and park improvements and will transition to fund park maintenance and capital replacement. Formation completed in 2019. • Other Projects. Desert Recreation District, City of Alameda, City of Elk Grove, City of Hesperia, City of Vacaville, City of Carson, East Bay Regional Park District • Altadena Library District CFD Formation. In 2020, the need for significant updates to aging facilities led the District to engage NBS to form a CFD to finance those infrastructure needs. Additionally, with the existing parcel tax sunset on the horizon, NBS worked with the District to include a services special tax component of the CFD that would replace those services revenues and provide for a perpetual, stable funding source into the future. The CFD has been formed and was approved by registered voters in the District. • City of Rio Vista CFD Formation, Complex Workout including refinancing existing CFD debt, formation of a new CFD to restructure a portion of the existing CFD debt and funding of additional services. CFD Formation and Bond Issuance completed in 2018. “Thank you so much for all of your guidance, advice and support this year. We definitely wouldn't have been able to accomplish this amazing feat without your experience and knowledge!!” Nikki Winslow, Library District Director, Altadena Library District Statement of Qualifications for City of La Quinta NBS | 20 EDUCATION • Bachelor of Arts/Business Economics, University of Nevada, Las Vegas HIGHLIGHTS • Registered Municipal Advisor Representative • Seasoned public agency revenue consultant with a focus in Special Financing Districts (SFDs) • Extensive background in project management support to state and local government in the areas of tax and assessment related levies, fund accounting, budget administration • More than 20 years of local government and finance experience AFFILIATIONS / AWARDS • Camarillo Health Care District Advisory Panel: Member • Camarillo Kiwanis Club: Member • Pacific Coast Business Times “Top 50 Women in Business” Recipient 2016; “Top Women in Business” Recipient 2013; “Top Leaders in Community Leadership” 2010; and “40 Under 40” Recipient 2008 • President’s Council on Service and Civic Participation “The President’s Volunteer Service Award” Recipient 2008 BIOGRAPHY Sandra Burkhart is a Senior Consultant at NBS where she forms and administers various types of Special Financing Districts (SFDs), both bonded and non-bonded, including 1911 and 1913 Act Assessment Districts, Landscape and Lighting Districts, Benefit Assessment Districts and Property and Business Improvement Districts. She is actively involved with district formations, bond issuance analysis, and the daily management of district administration services. RELEVANT PROJECT EXPERIENCE Sandra has consulted and served on many projects, including the following: TEAM RESUME SANDRA BURKHART | Senior Consultant • City of Fairfield District Fund Balance Review and Budget Audit. Performed a fund balance review and budget audit of the City’s 19 Landscaping and Lighting Maintenance Assessment Districts and associated Annexations. The project also included a district boundary audit and a final findings report with recommended corrective actions. • County of Imperial Assessment District Formation. NBS is currently assisting with the formation of a new Assessment District to fund maintenance, operation and servicing of water, sewer, street lighting and common are improvements. NBS prepared and mailed ballots to property owners and will be assisting with the Public Hearing and Ballot Tabulation. • City of Palmdale LMD Assessment District Formations. Prior to transitioning Community Facility Districts, assisted the City with ongoing Landscape and Lighting District Formations as new development came online. NBS assisted with the legislative process, preparation and mailing of ballots to property owners and the final Public Hearing and Ballot Tabulation. • City of Pomona LLAD Assessment District Formation. Formation of replacement LLAD. LLAD funds maintenance and operation of streetlights, trees, landscaping, open space, etc. • City of Tulare PBID. NBS is currently assisting with the formation of a new Property and Business Improvement District to fund the costs of marketing and special events, “Clean and Safe Program,” Economic Development, Homelessness Services, and maintenance services within the proposed PBID area. NBS will be preparing the Management District Plan, Engineer’s Report, Assessment Ballots and Tabulation. • City of Sierra Madre Assessment District Formation. The City’s downtown area had multiple assessments in place to fund a variety of services. NBS was engaged to form a new Landscape and Lighting Assessment District that would consolidate the services under one funding tool, expand the services and create a more inclusive Downtown LLD. NBS provided detailed general and special benefit analysis and assessment engineering services for the new District, including developing a new Engineer’s Report, along with mailed notices and ballots. Statement of Qualifications for City of La Quinta NBS | 21 TEAM RESUME NICK DAYHOFF | Senior Consultant EDUCATION • Bachelor of Arts, Finance, California State University, San Diego HIGHLIGHTS • Registered Municipal Advisor Representative • 18 years with NBS • Expert Special Tax Consultant • Proposition 218 Compliance and Notification • Seasoned Professional in Assessment District Formation and Administrations • Expert in Initial and Continuing Disclosure BIOGRAPHY Nick Dayhoff is a Senior Consultant with NBS where he forms and administers Special Financing Districts (SFDs). He is actively involved with a broad range of new district formations, bond issuance/ refunding analysis, and feasibility studies. RELEVANT PROJECT EXPERIENCE • East Bay Regional Park District, CFD No. AC-3: Formation of CFD, subject to voter approval on November 6, 2018. CFD funds maintenance of parks, trails, open space, public safety services, recreation and open space program services, flood and storm protection services, etc. Formation completed in 2018. • City of Manteca: NBS assisted with the formation of a Community Facilities District, CFD No. 2023-1 (Villa Ticino West Facilities), to fund the costs of various public facilities, including roadway and transportation improvements, water system and irrigation improvements, recycled water system improvements, drainage system improvements, wastewater system improvements, environmental mitigation, and park, trails, landscaping and open space improvements. NBS also provided bond issuance disclosure services relating to the debt issued on behalf of the CFD, including value-to-lien information, estimates of special tax revenue, and sample tax bills, etc. • City of Carson: Community Facilities District, CFD No. 2018-01 is used to fund the calculated negative fiscal impacts of new development. On an ongoing basis, NBS assists the City with the annexation of property to the CFD by preparing all the documentation, including the Unanimous Approval Forms, Boundary Maps, Resolutions & Ordinance, and Amendment to the Notice of Special Tax Lien. The CFD and annexations ensure that the projects are funding the increased public services necessitated by additional development within the City. • Cosumnes Community Services District: NBS assisted with the formation of a Community Facilities District, CFD No. 2021-1 (Sheldon Farms North), to fund fire protection, park maintenance, and landscaping services for the Sheldon Farms North residential development project. The CFD ensures that the project funds the increased public services necessitated by additional development within the Community Services District. • City of Sacramento: NBS assisted with the formation of a Community Facilities District, CFD No. 2019-1 (Delta Shores, consisting of multiple Improvement Areas), to fund the costs of various public facilities, including roadway and transportation improvements, water system and irrigation improvements, storm drainage system improvements, wastewater system improvements, and a fire station. NBS also provided bond issuance disclosure services relating to the debt issued on behalf of the CFD, including value- to-lien information, estimates of special tax revenue, and sample tax bills, etc. “Thank you all for your help on this project, you made it easy for me and our staff!” Brad Wungluck, Deputy Director of Development Services, City of Manteca Statement of Qualifications for City of La Quinta NBS | 22 TEAM RESUME GREG GHIRONZI | Senior Consultant BIOGRAPHY Greg Ghironzi is a Senior Consultant with NBS in our District Formation Consulting group, with more than 30 years of experience in public finance. Greg has worked with every type of local agency including cities, counties, and a broad range of special districts. His diverse experience includes financing or funding of facilities and services such as fire protection, library, healthcare, conservation, cemetery, groundwater (management & sustainability), utility (water, wastewater, sanitary & sanitation, irrigation, and reclamation), pest abatement, school, transit, flood control, recreation & parks. Greg assists clients with analysis and selection of appropriate financing tools where several options are legally feasible. He has also performed financial analyses for water and wastewater utility cost of service and rate design analysis. In combination with his utility experience, he is an acknowledged expert in the Proposition 218 compliant formation and annexation of land-based Special Financing Districts (SFDs) to finance capital projects and fund ongoing maintenance and services. RELEVANT PROJECT EXPERIENCE HIGHLIGHTS • Registered Municipal Advisor Representative • More than 30 years of experience • Proposition 218 expertise • Special Financing District (SFD) solutions including special assessments, special taxes, and property related fees • Compliance audits of SFDs • Development Impact Fee and Capacity Charge analysis • Sustainable Groundwater Management Act expertise including Groundwater Sustainability Agency (GSA) Formation and Funding • Reimbursement and Acquisition of public facilities • Stormwater and Flood Control funding • Property and Parcel Tax audits • Debt related Initial and Continuing Disclosure “In the world of government financing, there is no better partner for us than NBS. They prepare you for the coming challenges and are always one step ahead.” Dean Wetter, Valley-Wide Recreation and Park District • Town of Mammoth Lakes – Financial Modeling and Planning: Developed long-range (20 year) model including analysis of historical costs, projection of future costs together with calculations of the maximum revenue generation for multiple types of special districts. Cost estimates included fund balance accumulations, maintenance costs, capital improvements, and agency contributions. • City of Indio – Overlapping Debt and Special Tax Pro-Forma Modeling and Analysis: Modeled the taxing capacity and potential revenue generation required to fund capital infrastructure improvements. Project included development of residential property sales prices, identification and analysis of overlapping debt/tax obligations to determine an appropriate level of bonded indebtedness. • . • City of San Pablo – Citywide Funding Analysis: Evaluated the City’s revenues and expenses and developed options for long-range funding solutions to address the identified structural revenue deficits. Modeled various funding options informed by constituents’ priorities and levels of support. Multiple revenue mechanisms (taxes, assessments, and fees) were evaluated with recommendations for the most viable options. Greg has formed 250+ SFDs consisting of: • 1913/1915 Act Assessment Districts • Landscape Maintenance Districts • Mello-Roos Community Facilities Districts (CFDs) • Benefit Assessment Districts • Business Improvement Districts • Special Tax / Parcel Tax Districts Statement of Qualifications for City of La Quinta NBS | 23 APPENDIX B | ADDENDUM Statement of Qualifications for City of La Quinta NBS | 24 March 5, 2025