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HomeMy WebLinkAboutNBS Government Finance Group; 2025-11-06;Page 1 City Attorney Approved Version 5/30/2025 AGREEMENT FOR PUBLIC FACILITIES DEVELOPMENT IMPACT FEE NEXUS STUDY AND FEE EVALUATION SERVICES NBS GOVERNMENT FINANCE GROUP THIS AGREEMENT (“Agreement”) is made and entered into as of the ______ day of _______________, 2025, by and between the City of Carlsbad, California, a municipal corporation ("City") and NBS Government Finance Group, a California corporation, ("Contractor"). RECITALS A.City requires the professional services of a consultant that is experienced in analyzing funding for public facilities infrastructure to ensure city-imposed impact fees and taxes are sufficient to support current and future development needs, as well as conducting nexus studies for public facility development impact fees. B.Contractor has the necessary experience in providing professional services and advice related to public facility development impact fee studies. C.Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained in this Agreement, City and Contractor agree as follows: 1.SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services ("Services") that are defined in attached Exhibit "A," which is incorporated by this reference in accordance with this Agreement’s terms and conditions. 2.STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3.TERM The term of this Agreement will be effective for a period of one (1) year from the date first above written. The City Manager may amend the Agreement to extend it for one (1) additional one year or parts of a year. Extensions will be based upon a satisfactory review of Contractor's performance, City needs, and appropriation of funds by the City Council. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4.TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5.COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term shall not exceed eighty thousand eight hundred fifty dollars ($80,850) No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. If City elects to extend the Agreement, the fee amount shall not be increased except by subsequent amendments to this Agreement. Payment terms are Net 30 unless otherwise provided in Exhibit “A” or agreed to in writing by Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF 6th November Page 2 City Attorney Approved Version 5/30/2025 the parties. City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A." Incremental payments, if applicable, should be made as outlined in attached Exhibit "A." 6.STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under the control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to this Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At City’s election, City may deduct the indemnification amount from any balance owing to Contractor. 7.SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8.OTHER CONTRACTORS City reserves the right to employ other Contractors in connection with the Services. 9.INDEMNIFICATION Contractor agrees to defend (with counsel approved by City), indemnify, and hold harmless the City and its officers, elected and appointed officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described in this Agreement caused by any negligence, recklessness, or willful misconduct of Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s performance as a “design professional” (as that term is defined under California Civil Code Section 2782.8), then, and only to the extent required by California Civil Code Section 2782.8, which is fully incorporated in this Agreement, Contractor’s indemnification obligation shall be limited to claims that Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Page 3 City Attorney Approved Version 5/30/2025 arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Contractor, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction. Contractor’s liability for such claim, including the cost to defend, shall not exceed Contractor’s proportionate percentage of fault. The parties expressly agree that any payment, attorneys fee, costs or expense City incurs or makes to or on behalf of an injured employee under City’s self-administered workers’ compensation program is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10.INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. The full limits available to the named insured shall also be available and applicable to City as an additional insured. 10.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an “occurrence” basis, including personal and advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 10.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor’s profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Page 4 City Attorney Approved Version 5/30/2025 10.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to City. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 If Contractor maintains higher limits than the minimums shown above, City requires and will be entitled to coverage for the higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage will be available to City. 10.2.4 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. 11.BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12.ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement. 13.OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor’s records. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Page 5 City Attorney Approved Version 5/30/2025 14.COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. 15.NOTICES The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement are: For City: For Contractor: Name Laureen Ryan Name Nicole Kissam Title Senior Management Analyst Title Project Manager Dept Community Development Address 32605 Temecula Parkway, Suite 316 CITY OF CARLSBAD Temecula, CA 92592 Address 1635 Faraday Avenue Phone 800-676-7515 Carlsbad, CA 92008 Email nkissam@nbsgov.com Phone 442-339-2615 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16.CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. Contractor shall report investments or interests as required in the City of Carlsbad Conflict of Interest Code. Yes ☐ No ☒ If yes, list the contact information below for all individuals required to file: Name Email Phone Number 17.GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 6 Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 18.CALIFORNIA AIR RESOURCES BOARD (CARB) ADVANCED CLEAN FLEETS REGULATIONS Contractor’s vehicles with a gross vehicle weight rating greater than 8,500 lbs. and light-duty package delivery vehicles operated in California may be subject to the California Air Resources Board (CARB) Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets. 19.DISCRIMINATION, HARASSMENT, AND RETALIATIONPROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination, harassment, and retaliation. 20.DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 21.TERMINATION In the event of Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. City may terminate this Agreement by tendering thirty (30) days written notice to Contractor. Contractor may terminate this Agreement by tendering thirty (30) days written notice to City. In the event of termination of this Agreement by either party and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 7 22.COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 23.CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code Sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 24.JURISDICTION AND VENUE This Agreement shall be interpreted in accordance with the laws of the State of California without regard to, or application of, choice of law rules or principles. Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 25.SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 26.THIRD PARTY RIGHTS Nothing in this Agreement should be construed to give any rights or benefits to any party other than City and Contractor. 27.ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. This Agreement may be executed in counterparts. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 8 28.AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. Executed by Contractor this___________ day of _______________________, 20____. NBS GOVERNMENT FINANCE GROUP, a California corporation CITY OF CARLSBAD, a municipal corporation of the State of California By: By: (sign here) Geoff Patnoe City Manager Stephanie Parson – Vice President (print name/title) ATTEST: By: SHERRY FREISINGER, City Clerk (sign here) By: Sara Mares – Chief Operating Officer Morgen Fry Assistant City Clerk (print name/title) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Group B Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, City Attorney BY: _____________________________ C. Dalton SorichAssistant City Attorney October13th 25 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 9 EXHIBIT A SCOPE OF SERVICES AND FEE This scope of work includes a comprehensive evaluation of funding for public facilities infrastructure, ensuring that all city-imposed impact fees and taxes are sufficient to support both current and future development needs. The work will result in two NBS deliverables: 1.Funding Options Report. An analysis of existing and potential revenue opportunities for funding public facilities infrastructure. 2.Public Facilities Development Impact Fee Study. A full nexus study with findings and recommendations for revising current impact fees and establishing new ones to ensure the fee program adequately supports public facility needs for new development. The scope of work pertains to capital infrastructure needs and is further defined by the tasks described below. The scope excludes legal, engineering, architectural, cost estimating and appraisal services. INFORMATION TO BE PROVIDED BY THE CITY The work to be performed will depend heavily on information to be provided by the city. Among the types of information that may be needed for this study are: •The current General Plan, and any specific plans or other relevant planning studies. •Data on the amount of existing development and planned future development in the study area, by land use type. •The Capital Improvement Program, level of service policies, facility master plans and other facility planning data, plus inventories of existing facilities, vehicles and equipment to be funded by revenue sources. •Cost estimates for land, capital improvements, vehicles, and/or equipment to be funded by revenue sources. •Information on capital improvement funding sources and financing plans and any outstanding debt related to existing capital facilities. NBS assumes that all information needed to perform the work covered by the scope of work will be provided by the city or is readily available from other sources such as the U.S. Census Bureau or the California Department of Finance. SPECIFICS REGARDING DEVELOPMENT IMPACT FEES Laws governing impact fees, including both court decisions and the California Mitigation Fee Act (Govt. Code Sections 66000 et seq.) require that local agencies imposing fees as a condition of development approval demonstrate that there is a reasonable relationship or “nexus” between those fees and the impact of a development project on facilities to be funded by the fees. The required nexus for impact fees, as set forth in relevant court decisions, can be thought of as having three elements: •Need. The city must show that development creates a need for the improvements funded by impact fees; •Benefit. The city must show that development derives a benefit from the provision of improvements funded by impact fees; and Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 10 •Proportionality. The city must show that the fees charged to a development project are proportional to the impact of that project on facilities funded by the impact fees. The “reasonable relationship” requirements contained in Section 66001 of the California Mitigation Fee Act address the same elements in different language Any one of several methods may be used to calculate impact fees for a particular type of facility. The choice of an appropriate method may depend on the availability of information and how the impact of development is to be measured. There are several important recent developments that affect how NBS will approach review and analysis of the city’s impact fee program. The scope of work will incorporate review and discussion of requirements of several new laws enacted by the State of California as well as recent and pending court decisions affecting impact fees such as: •SB 330 - The Housing Crisis Act of 2019 which prohibits the imposition of new approval requirements on a housing development project once a preliminary application has been submitted. •AB 1483 – Housing Data: Collection and Reporting which requires that a city, county or special district must post on its website a current schedule of its fees and exactions, as well as associated nexus studies and annual reports. Updates must be posted within 30 days. •SB 13 – Accessory Dwelling Units which prohibits the imposition of impact fees on accessory dwelling units (ADUs) smaller than 750 square feet and to require that impact fees for ADUs of 750 square feet or more must be proportional to the square footage of the primary dwelling unit. •AB 602 – Amendments to the Planning and Land Use Law and the Mitigation Fee Act which imposes several new requirements for impact fees that went into effect in 2022. Read our article here for a summary of implications. •Recent and pending court decisions affecting impact fees, such as: o Boatworks LLC vs. City of Alameda o Walker v. City of San Clemente o Hamilton and High v. City of Palo Alto o Sheetz v. County of El Dorado Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 11 SCOPE OF WORK TASK 1: KICK-OFF MEETING, PROJECT SCHEDULE NBS and city staff will meet to: A.Establish lines of communication. B.Clarify the specific project goals and criteria that will meet the city’s objectives. C.Identify and resolve any special circumstances regarding the use of the funding mechanisms. D.Establish meeting dates consistent with the schedule to achieve project milestones. TASK 2: REVENUE OPTIONS ANALYSIS 2.1 Data Collection NBS will gather and review data relevant to the project goals per the list provided in Task 2 of the city’s RFP, as well as items of a more global nature such as city budgets, capital planning documents, etc. 2.2 Review Funding Options NBS will review the funding options for public facilities, providing pros and cons of each available option for identified improvements. Funding options will focus on the use of impact fees, existing taxes, property related fees, special taxes, and special assessments. Subtasks include: A.Review and assessment of the city’s Growth Management Plan, facility master plans, land use plans, and existing revenue sources listed in Task 2 of the RFP to: •Clarify purpose and use of existing revenue streams as pertains to funding of public facilities. •Ensure revenue streams do not overlap or double charge in their purpose and application. •Identify potential new revenue streams for funding public facilities. B.Review documentation supporting existing impact fees for various capital facilities such as parks, streets, storm drains, public buildings, and utility connection/capacity charges. •Recommend best practices to help ensure accurate fee collections, tracking and reporting consistent with the Mitigation Fee Act. •Identify high level best practices, strengths and opportunities for improvement within the fee program. C.Evaluate and recommend updates, as needed, to the existing license tax on new construction and Local Facilities Management Fee program. D.Review available data provided by the city regarding estimated project costs for identified capital improvements. E.Consider rate setting, approval process and various factors involved with each funding option and discuss impacts on voters, property owners and other stakeholder groups. Consider, as needed, the impacts of debt financing and pay as you go funding approaches. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 12 Task 2.3 Funding Options Report Compile the aforementioned research, analysis, and review into a report to be presented to city staff. Recommendations as to which funding options appear most viable along with an overview of next steps in the decision-making process will also be included in the report. Deliverables include: (1) a complete administrative draft funding options report for city staff review; (2) a second complete draft report for city staff review; and (3) a final report. All drafts and the final report will be submitted electronically in PDF format. All original Microsoft Word and Excel files will be provided to the city at completion of the work if requested. TASK 3: PUBLIC FACILITIES IMPACT FEE NEXUS STUDY Upon the conclusion of Task 2, the NBS project team will have a clear idea of what types of facilities should specifically be addressed in the public facilities impact fee program. Likely candidates include public safety, city hall, fleet maintenance yard and/or central maintenance facilities, and other general facilities not covered by other existing impact fees charged by the city. The following tasks represent the typical requirements of an impact fee study and may be adjusted to meet the needs of this project. Task 3.1 Project Initiation NBS attend a general project orientation meeting with key city staff and carry out other activities required to initiate the public facilities impact fee analysis, including: •Conduct initial interviews with key city staff members. •Evaluate available information resources. •Identify any issues of concern to the staff, City Council members or stakeholders. •Assess the city’s current development patterns and growth potential. Also, upon project initiation, NBS will review impacts and explore methodology options relating to fee programs as a result of recent legislative changes such as AB 602, and legal decisions such as Sheetz v. County of El Dorado. NBS requests the city involve legal counsel at this time to assist in discussion and direction setting for the study that will best serve the city’s needs. Task 3.2 Compile Data on Existing and Future Development NBS will collect, review, organize and analyze data on existing and future development in the city and compile it in a form useful for this study. Steps in that process may include: A.Establish boundaries of the study area to be used in the analysis (e.g., existing city vs. sphere of influence). B.Define the breakdown of land use types to be used in the study. C.Analyze land use data provided by the city to establish a baseline of existing development and a forecast of future development by land use type. D.Identify demand variables and specify demand factors that will be used to represent the impact of development in the impact fee calculations. E.Prepare development data tables to incorporate into the fee calculation model and the study report. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 13 Task 3.3 Facility Needs Analysis Using forecasts of future development from Task 2, NBS will review the Capital Improvement Program and facility master plans and work with staff to identify new facilities, facility expansions, vehicles and equipment needed to serve future development. Steps in that process will include the following: A.Review adopted level-of-service standards and actual service levels for relevant facility types. B.Work with city staff to identify the operative level-of-service standard to be used in the impact fee analysis for each facility type. C.Identify any existing deficiencies or available capacity relative to the selected level of service standard. D.Project the additional service demand that will be created by new development, based on selected service levels. E.Translate service demand into facility needs by facility type. F.Compile cost estimates for relevant facilities and other assets. G.Identify costs eligible for impact fee funding. Task 3.4 Impact Fee Analysis Using the information developed in Tasks 2 and 3, NBS will conduct the impact fee analysis and calculate impact fees by land use type for each type of facility addressed in the study. That process typically includes these steps: A.Review the methods used to calculate existing impact fees and consider alternative methods where appropriate. B.A critical new requirement of AB 602 (Govt. Code Section 66016.5) is that residential impact fees must be calculated proportionately to the square footage of units unless another method is justified by specific findings. NBS will work with the city early in the study process to determine the most appropriate way to satisfy that requirement. C.Construct a spreadsheet fee calculation model incorporating data on existing and future development, demand factors and costs for land, buildings and other capital assets relevant to the fee calculations. D.Specify formulas in the model to allocate facility costs in proportion to the impact of new development by land use type. E.Calculate a cost per unit of service for each facility type. F.Convert the cost per unit of service into a schedule of impact fees per unit of development, by development type. G.Project potential revenue from the proposed fees. Task 3.5 Fee Comparison Policy makers often desire a comparison of fee amounts to neighboring jurisdictions. Although an “apples to apples” comparison of cost recovery policy and fee structures between agencies is challenging, a comparison can ensure a smoother implementation process. NBS will utilize their industry Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 14 expertise comparing similar impact fees in up to five (5) neighboring and comparable communities. A list of communities will be selected and approved by city staff. NBS will download their respective fee schedules and supporting studies from the Internet. If schedules and supporting studies are not available on the Internet, NBS will make a reasonable attempt to contact the agency to obtain that information. NBS will then compile a comparison of the fee categories and amounts, for the most readily comparable fee items that match the city’s existing and proposed impact fees. Task 3.6 Draft and Final Study Reports The impact fee study report will explain the data, methodology and formulas used in the fee calculations and document the nexus between the proposed fees and the impacts of development for each type of impact fee calculated in the study. As the study progresses, NBS will submit preliminary drafts of portions of the study report for review and comment by city staff. Once all sections are in draft form, an administrative draft and second draft of the entire study report, incorporating any previous staff comments, will be submitted for review. Then a final draft document will be prepared for public and City Council public review. If necessary, additional changes will be incorporated into the final study report. The study report will include the following components: A.An Executive Summary including summary impact fee tables. B.A chapter discussing the legal requirements for impact fees and methods used to calculate the fees. C.A chapter presenting data on existing and future development in the study area and the factors used to measure the impacts of development on individual facility types. D.A separate chapter for each type of fee presenting the data and methodology used in the analysis, a detailed explanation of the impact fee calculations, and documentation of the nexus. E.A chapter on implementation recommendations, covering steps needed to comply with the Mitigation Fee Act through proper administration of the impact fees, including but not limited to: •Findings and enactment of fees •Collection and expenditure of fees •Accounting and reporting requirements •Administrative appeals, waivers, and exemptions •Credits and reimbursements for developer-provided facilities •Updating and indexing the fees •Recovery of administrative costs for the impact fee program Deliverables include: (1) preliminary chapter drafts; (2) a complete administrative draft report for staff review; (3) a complete second draft report for staff review; (4) a final draft report for public and City Council review (public review draft); (5) the final report. All drafts and the final report will be submitted electronically in PDF format. Five bound copies and one unbound copy of the final report will be provided. All original Microsoft Word and Excel files will be provided to the city at completion of the work if requested. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 15 TASK 4: MEETINGS AND PRESENTATIONS NBS will provide support to city staff to review the funding options and impact fee analysis throughout the course of the project. Kick-off meetings, ongoing working meetings and routine project status check- in meetings to develop the final report deliverables for tasks 2 and 3 as described above are included in the project budget for these tasks; such meetings are not limited to a specified number of meetings but will be conducted as needed to complete tasks 1, 2 and 3. NBS has the tools to accomplish all aspects of the project’s work plan remotely from NBS offices by utilizing video conferencing, email and telephone to coordinate on the project and review deliverables in an effective manner. For purposes of developing a project budget, NBS has assumed all meetings of this nature will be conducted remotely. For optional stakeholder meetings with groups such as the Chamber of Commerce, Building Industry Association, City Council or Council subcommittees, NBS has provided both remote and in person “per meeting” fee options. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 16 PROJECT TIMELINE The following is an overview of the project schedule. NBS understands per the RFP that the timeframe to complete this scope of work is projected to begin in October 2025 and be completed in no more than 24 months (two years). The following schedule reflects typical timelines for similar projects. NBS estimates the project will require about 10 months to complete, not including the public approval process. We will discuss a detailed schedule at the kick-off meeting, along with any needed revisions to the expected timing for individual tasks. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 17 METHOD OF COMPENSATION NBS’ professional fees reflect the effort necessary to complete the scope of services described. This is expressed honestly and transparently through the price proposal. NBS applied the following hourly rates to derive the overall not-to-exceed pricing for the requested scope of services. NBS’ rates are inclusive of all costs associated with professional time, such as project management, invoicing, document production, and incidentals. Travel expenses, if required to attend in- person public meetings, will be approved by the city and charged separately, as described in the “meetings/additional services” section below. These rates will apply for the duration of our contract: Title Name Hourly Rate Senior Review Sara Mares, Tim Seufert, Allan Highstreet $275 Director Nicole Kissam $250 Senior Consultant Nick Dayhoff, Nicole Huerta, Lauren Guido $200 Impact Fee Specialist Joe Colgan $150 Consultant & Project Analyst Various, as needed $150 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF City Attorney Approved Version 5/30/2025 Page 18 MEETINGS / ADDITIONAL SERVICES Should the city require additional public meetings for implementation purposes, the following rates would apply per meeting: •Remotely conducted meeting via Zoom or other platform: $750 per meeting •In-person attendance: $1,200 per meeting, plus not to exceed $1,000 in as-needed travel expenses Any other additional services authorized but not included in the scope of services will be billed at the hourly rates shown above. INVOICING NBS invoices on a monthly basis, following recorded consultant time on the project, paralleling our completion of the work. At no time will we invoice for charges in excess of the fee to which the city and NBS mutually agree. Should the city specifically request additional services beyond those described in this document, we will discuss those requests and associated costs at that later time and only invoice for additional fees upon separate written authorization from the city. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF ANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED? INSR ADDL SUBRLTRINSDWVD PRODUCER CONTACTNAME: FAXPHONE(A/C, No):(A/C, No, Ext): E-MAILADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS(MM/DD/YYYY)(MM/DD/YYYY) AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATION AND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE EACH OCCURRENCE $ DAMAGE TO RENTEDCLAIMS-MADE OCCUR $PREMISES (Ea occurrence) MED EXP (Any one person)$ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER:GENERAL AGGREGATE $ PRO-POLICY LOC PRODUCTS - COMP/OP AGGJECT OTHER:$ COMBINED SINGLE LIMIT $(Ea accident) ANY AUTO BODILY INJURY (Per person)$ OWNED SCHEDULED BODILY INJURY (Per accident)$AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $AUTOS ONLY AUTOS ONLY (Per accident) $ OCCUR EACH OCCURRENCE CLAIMS-MADE AGGREGATE $ DED RETENTION$ PER OTH-STATUTE ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.L. DISEASE - POLICY LIMITDESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC # COMMERCIAL GENERAL LIABILITY Y / N N / A (Mandatory in NH) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION © 1988-2015 ACORD CORPORATION. All rights reserved.ACORD 25 (2016/03) CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) $ $ $ $ $ The ACORD name and logo are registered marks of ACORD 9/26/2025 License # 0L48969 (619) 233-8000 (619) 864-7106 22292 NBS Government Finance Group 32605 Temecula Parkway, Suite 316 Temecula, CA 92592 41840 10833 A 2,000,000 X X OH3A43196312 9/24/2025 9/24/2026 300,000 10,000 2,000,000 4,000,000 4,000,000 1,000,000A X X AH3A42745814 9/24/2025 9/24/2026 1,000,000A OH3A43196312 9/24/2025 9/24/2026 1,000,000 B X W23A42745712 9/24/2025 9/24/2026 1,000,000 N 1,000,000 1,000,000 C Professional Liabili VNPL019969 9/24/2025 Ea/Claim Aggregate 2,000,000 C E&O Professional Lia VNPL019969 9/24/2025 9/24/2026 Deductible 20,000 Additional insureds are included as/where required by written contract as respects to General Liability, Auto Liability; General Liability Primary Non- Contributory wording; Auto Liability Primary Non-Contributory wording, General Liability waiver of subrogation, Auto Liability waiver of subrogation, Workers Compensation waiver of subrogation, but limited to the operations of the Insured under said contract, and always subject to all the policy terms, conditions and exclusions per endorsements attached.Cancellation provisions attached. *THIS CERTIFICATE CANCELS AND SUPERSEDES ANY CERTIFICATE PREVIOUSLY ISSUED.* Blanket forms apply when required by written contract: SEE ATTACHED ACORD 101 City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 NBSGOVE-01 ROBLY2 C3 Risk & Insurance Services 404 Camino Del Rio S. STE 410 San Diego, CA 92108 policy@c3insurance.com THE HANOVER INSURANCE COMPANY Allmerica Financial Benefit Insurance Company Gemini Insurance Company X 9/24/2026 X X X X X X Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF FORM NUMBER: EFFECTIVE DATE: The ACORD name and logo are registered marks of ACORD ADDITIONAL REMARKS ADDITIONAL REMARKS SCHEDULE FORM TITLE: Page of THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, ACORD 101 (2008/01) AGENCY CUSTOMER ID: LOC #: AGENCY NAMED INSURED POLICY NUMBER CARRIER NAIC CODE © 2008 ACORD CORPORATION. All rights reserved. C3 Risk & Insurance Services NBSGOVE-01 SEE PAGE 1 1 SEE PAGE 1 ACORD 25 Certificate of Liability Insurance License # 0L48969 1 SEE P 1 NBS Government Finance Group 32605 Temecula Parkway, Suite 316 Temecula, CA 92592 SEE PAGE 1 ROBLY2 1 Description of Operations/Locations/Vehicles: GENERAL LIABILITY: Additional Insured-Special Broadening Endt: 391-1006 08 16 Additional Insured- Completed Operations: 391-1602 08 16 Primary & Non-Contributory: 391-1003 08 16 Waiver of Subrogation: 391-1003 08 16 Cancellation Provision:391-1003 08 16 Umbrella Cancellation Provision: CU 02 23 09 12 AUTO: Additional Insured: CA20 48 02 99 Primary & Non-Contributory: 461-0478 12 12 Waiver of Subrogation: 461-0500 11 13 Auto Broadening Endorsement: 461-0155 (9-97) Auto Cancellation Provision: IL 00 17 11 98 Professional Liability cancellation provision: VP00061017 Waiver of Subrogation and Primary and Contributory: VP09630819 WORKERS' COMPENSATION: Waiver of Subrogation: WC040306 (Ed 04-84) Cancellation Provision California WC 040601B Cancellation Provision Arizona WC 02 06 01 C Deductibles: General Liability- $0 Auto Liability- Comp Ded: $1,000 / Coll Ded: $1,000 Umbrella: $0 Professional Liability- $20,000 deductible (Per Claim). Umbrella goes over General Liability, Employers Liability and Auto Liability. Underlying Schedule per form 473-1103 (11/08) The City of Carlsbad, its officials, employees and volunteers must be named as an additional insured with respect to liability arising out of activities performed by or on behalf of the Named Insured. The full limits available to the named insured shall also be available and applicable to the City as an additional insured. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESSOWNERS LIABILITY SPECIAL BROADENING ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM This endorsement amends coverages provided under the Businessowners Coverage Form through new coverages and broader coverage grants. This coverage is subject to the provisions applicable to the Businessowners Coverage Form, except as provided below. The following changes are made to SECTION II - LIABILITY: 1.Additional Insured by Contract, Agreement or Permit The following is added to SECTION II - LIABILITY, C. Who Is An Insured: Additional Insured by Contract, Agreement or Permit a.Any person or organization with whom you agreed in a written contract, written agreement or permit to add such person or organization as an additional insured on your policy is an additional insured only with respect to liability for "bodily injury", "property damage", or "personal and advertising injury" caused, in whole or in part, by your acts or omissions, or the acts or omissions of those acting on your behalf, but only with respect to: (1)"Your work" for the additional insured(s) designated in the contract, agreement or permit; (2)Premises you own, rent, lease or occupy; or (3)Your maintenance, operation or use of equipment leased to you. b.The insurance afforded to such additional insured described above: (1)Only applies to the extent permitted by law; and (2)Will not be broader than the insurance which you are required by the contract, agreement or permit to provide for such additional insured. (3)Applies on a primary basis if that is required by the written contract, written agreement or permit. (4)Will not be broader than coverage provided to any other insured. (5)Does not apply if the "bodily injury", "property damage" or "personal and advertising injury"is otherwise excluded from coverage under this Coverage Part, including any endorsements thereto. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission.Page 1 of 6 SUMMARY OF COVERAGES Limits Page 1.Additional Insured by Contract, Agreement or Permit Included 1 2.Additional Insured - Broad Form Vendors 3.Alienated Premises 4.Broad Form Property Damage - Borrowed Equipment, Customers Goods and Use of Elevators 5.Incidental Malpractice (Employed Nurses, EMT's and Paramedics) 6.Personal and Advertising Injury - Broad Form 7.Product Recall Expense Product Recall Expense Each Occurrence Limit Product Recall Expense Aggregate Limit Product Recall Deductible 8.Unintentional Failure to Disclose Hazards 9.Unintentional Failure to Notify Included Included Included Included Included Included $25,000 $50,000 $500 Included Included 2 3 3 3 4 4 5 5 5 6 6 Aggregate Occurrence Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF c.This provision does not apply: (1)Unless the written contract or written agreement was executed or permit was issued prior to the "bodily injury", "property damage",or "personal injury and advertising injury". (2)To any person or organization included as an insured by another endorsement issued by us and made part of this Coverage Part. (3)To any lessor of equipment: (a)After the equipment lease expires;or (b)If the "bodily injury","property damage","personal and advertising injury"arises out of sole negligence of the lessor. (4)To any: (a)Owners or other interests from whom land has been leased if the "occurrence"takes place or the offense is committed after the lease for the land expires;or (b)Managers or lessors of premises if: (i)The "occurrence"takes place or the offense is committed after you cease to be a tenant in that premises;or (ii)The "bodily injury","property damage","personal injury"or "advertising injury"arises out of structural alterations,new construction or demolition operations performed by or on behalf of the manager or lessor. (5)To "bodily injury","property damage"or "personal and advertising injury"arising out of the rendering of or the failure to render any professional services. This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring,employment,training or monitoring of others by that insured,if the "occurrence"which caused the "bodily injury"or "property damage"or the offense which caused the "personal and advertising injury"involved the rendering of or failure to render any professional services by or for you. d.With respect to the insurance afforded to these additional insureds,the following is added to SECTION II -LIABILITY,D.Liability and Medical Expense Limits of Insurance : The most we will pay on behalf of the additional insured for a covered claim is the lesser of the amount of insurance: 1.Required by the contract,agreement or permit described in Paragraph a.;or 2.Available under the applicable Limits of Insurance shown in the Declarations. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations e.All other insuring agreements,exclusions, and conditions of the policy apply. 2.Additional Insured -Broad Form Vendors The following is added to SECTION II - LIABILITY,C.Who Is An Insured: Additional Insured -Broad Form Vendors a.Any person or organization that is a vendor with whom you agreed in a written contract or written agreement to include as an additional insured under this Coverage Part is an insured,but only with respect to liability for "bodily injury"or "property damage" arising out of "your products"which are distributed or sold in the regular course of the vendor's business. b.The insurance afforded to such vendor described above: (1)Only applies to the extent permitted by law; (2)Will not be broader than the insurance which you are required by the contract or agreement to provide for such vendor; (3)Will not be broader than coverage provided to any other insured;and (4)Does not apply if the "bodily injury", "property damage"or "personal and advertising injury"is otherwise excluded from coverage under this Coverage Part, including any endorsements thereto c.With respect to insurance afforded to such vendors,the following additional exclusions apply: The insurance afforded to the vendor does not apply to: (1)"Bodily injury"or "property damage"for which the vendor is obligated to pay damages by reasons of the assumption of liability in a contract or agreement.This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; (2)Any express warranty unauthorized by you; 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices,Inc.,with its permission.Page 2 of 6 Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF (3)Any physical or chemical change in the product made intentionally by the vendor; (4)Repackaging, unless unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instruction from the manufacturer, and then repackaged in the original container; (5)Any failure to make such inspection, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business in connection with the sale of the product; (6)Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; (7)Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; (8)"Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (a)The exceptions contained within the exclusion in subparagraphs (4)or (6) above; or (b)Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (9)"Bodily injury" or "property damage" arising out of an "occurrence"that took place before you have signed the contract or agreement with the vendor. (10)To any person or organization included as an insured by another endorsement issued by us and made part of this Coverage Part. (11)Any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. d.With respect to the insurance afforded to these vendors, the following is added to SECTION II - LIABILITY, D. Liability and Medical Expense Limits of Insurance: The most we will pay on behalf of the vendor for a covered claim is the lesser of the amount of insurance: 1.Required by the contract or agreement described in Paragraph a.; or 2.Available under the applicable Limits of Insurance shown in the Declarations; This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. 3.Alienated Premises SECTION II - LIABILITY, B. Exclusions, 1. Applicable To Business Liability Coverage k. Damage to Property, paragraph (2) is replaced by the following: (2)Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. 4.Broad Form Property Damage - Borrowed Equipment, Customers Goods, Use of Elevators a.The following is added to SECTION II - LIABILITY, B. Exclusions, 1.Applicable To Business Liability Coverage, k. Damage to Property: Paragraph (4)does not apply to "property damage" to borrowed equipment while at a jobsite and not being used to perform operations. Paragraph (3), (4)and (6)do not apply to "property damage" to "customers goods" while on your premises nor to the use of elevators. b.For the purposes of this endorsement, the following definition is added to SECTION II - LIABILITY, F. Liability and Medical Expenses Definitions: 1."Customers goods" means property of your customer on your premises for the purpose of being: a.Worked on; or b.Used in your manufacturing process. c.The insurance afforded under this provision is excess over any other valid and collectible property insurance (including deductible) available to the insured whether primary, excess, contingent or on any other basis. 5.Incidental Malpractice - Employed Nurses, EMT's and Paramedics SECTION II - LIABILITY, C. Who Is An Insured, paragraph 2.a.(1)(d) does not apply to a nurse, 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission.Page 3 of 6 Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF emergency medical technician or paramedic employed by you if you are not engaged in the business or occupation of providing medical, paramedical,surgical,dental,x-ray or nursing services. 6.Personal Injury -Broad Form a.SECTION II -LIABILITY,B.Exclusions,2. Additional Exclusions Applicable only to "Personal and Advertising Injury",paragraph e.is deleted. b.SECTION II -LIABILITY,F.Liability and Medical Expenses Definitions,14."Personal and advertising injury",paragraph b.is replaced by the following: b.Malicious prosecution or abuse of process. c.The following is added to SECTION II - LIABILITY,F.Liability and Medical Expenses Definitions,Definition 14."Personal and advertising injury": "Discrimination"(unless insurance thereof is prohibited by law)that results in injury to the feelings or reputation of a natural person, but only if such "discrimination"is: (1)Not done intentionally by or at the direction of: (a)The insured; (b)Any officer of the corporation, director,stockholder,partner or member of the insured;and (2)Not directly or indirectly related to an "employee",not to the employment, prospective employment or termination of any person or persons by an insured. d.For purposes of this endorsement,the following definition is added to SECTION II - LIABILITY,F.Liability and Medical Expenses Definitions: 1."Discrimination"means the unlawful treatment of individuals based upon race, color,ethnic origin,gender,religion,age, or sexual preference."Discrimination" does not include the unlawful treatment of individuals based upon developmental, physical,cognitive,mental,sensory or emotional impairment or any combination of these. e.This coverage does not apply if liability coverage for "personal and advertising injury"is excluded either by the provisions of the Coverage Form or any endorsement thereto. 7.Product Recall Expense a.SECTION II -LIABILITY,B.Exclusions,1. Applicable To Business Liability Coverage, o.Recall of Products,Work or Impaired is replaced by the following: o.Recall of Products,Work or Impaired Property Damages claimed for any loss,cost or expense incurred by you or others for the loss of use,withdrawal,recall, inspection,repair,replacement, adjustment,removal or disposal of: (1)"Your product"; (2)"Your work";or (3)"Impaired property"; If such product,work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency,inadequacy or dangerous condition in it,but this exclusion does not apply to "product recall expenses" that you incur for the "covered recall"of "your product". However,the exception to the exclusion does not apply to "product recall expenses"resulting from: (4)Failure of any products to accomplish their intended purpose; (5)Breach of warranties of fitness, quality,durability or performance; (6)Loss of customer approval,or any cost incurred to regain customer approval; (7)Redistribution or replacement of "your product"which has been recalled by like products or substitutes; (8)Caprice or whim of the insured; (9)A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; (10)Asbestos,including loss,damage or clean up resulting from asbestos or asbestos containing materials;or (11)Recall of "your products"that have no known or suspected defect solely because a known or suspected defect in another of "your products" has been found. b.The following is added to SECTION II - LIABILITY,C.Who Is An Insured,paragraph 3.b.: "Product recall expense"arising out of any withdrawal or recall that occurred before you acquired or formed the organization. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices,Inc.,with its permission.Page 4 of 6 Property Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF c.The following is added to SECTION II - LIABILITY,D. Liability and Medical Expenses Limits of Insurance: Product Recall Expense Limits of Insurance a.The Limits of Insurance shown in the SUMMARY OF COVERAGES of this endorsement and the rules stated below fix the most that we will pay under this Product Recall Expense Coverage regardless of the number of: (1)Insureds; (2)"Covered Recalls" initiated; or (3)Number of "your products" withdrawn. b.The Product Recall Expense Aggregate Limit is the most that we will reimburse you for the sum of all "product recall expenses" incurred for all "covered recalls" initiated during the policy period. c.The Product Recall Each Occurrence Limit is the most we will pay in connection with any one defect or deficiency. d.All "product recall expenses" in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one "occurrence". e.Any amount reimbursed for "product recall expenses" in connection with any one "occurrence" will reduce the amount of the Product Recall Expense Aggregate Limit available for reimbursement of "product recall expenses" in connection with any other defect or deficiency. f.If the Product Recall Expense Aggregate Limit has been reduced by reimbursement of "product recall expenses" to an amount that is less than the Product Recall Expense Each Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of "product recall expenses" in connection with any other defect or deficiency. g.Product Recall Deductible We will only pay for the amount of "product recall expenses" which are in excess of the $500 Product Recall Deductible. The Product Recall Deductible applies separately to each "covered recall". The limits of insurance will not be reduced by the amount of this deductible. We may, or will if required by law, pay all or any part of any deductible amount, if applicable. Upon notice of our payment of a deductible amount, you shall promptly reimburse us for the part of the deductible amount we paid. The Product Recall Expense Limits of Insurance apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for the purposes of determining the Limits of Insurance. d.The following is added to SECTION II - LIABILITY, E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: You must see to it that the following are done in the event of an actual or anticipated "covered recall" that may result in "product recall expense": (1)Give us prompt notice of any discovery or notification that "your product" must be withdrawn or recalled. Include a description of "your product" and the reason for the withdrawal or recall; (2)Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. e.For the purposs of this endorsement, the following definitions are added to SECTION II - LIABILITY, F. Liability and Medical Expenses Definitions: 1."Covered recall" means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy, or dangerous condition in "your product" has resulted or will result in "bodily injury" or "property damage". 2."Product recall expense(s)" means: a.Necessary and reasonable expenses for: (1)Communications, including radio or television announcements or printed advertisements including stationary, envelopes and postage; 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission.Page 5 of 6 Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF (2)Shipping the recalled products from any purchaser,distributor or user to the place or places designated by you; (3)Remuneration paid to your regular "employees"for necessary overtime; (4)Hiring additional persons,other than your regular "employees"; (5)Expenses incurred by "employees" including transportation and accommodations; (6)Expenses to rent additional warehouse or storage space; (7)Disposal of "your product",but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid "bodily injury" or "property damage"as a result of such disposal, you incur exclusively for the purpose of recalling "your product";and b.Your lost profit resulting from such "covered recall". f.This Product Recall Expense Coverage does not apply: (1)If the "products -completed operations hazard"is excluded from coverage under this Coverage Part including any endorsement thereto;or (2)To "product recall expense"arising out of any of "your products"that are otherwise excluded from coverage under this Coverage Part including endorsements thereto. 8.Unintentional Failure to Disclose Hazards The following is added to SECTION II - LIABILITY,E.Liability and Medical Expenses General Conditions: Representations We will not disclaim coverage under this Coverage Part if you fail to disclose all hazards existing as of the inception date of the policy provided such failure is not intentional. 9.Unintentional Failure to Notify The following is added to SECTION II - LIABILITY,E.Liability and Medical Expenses General Conditions,2.Duties in the Event of Occurrence,Offense,Claim or Suit: Your rights afforded under this Coverage Part shall not be prejudiced if you fail to give us notice of an "occurrence",offense,claim or "suit", solely due to your reasonable and documented belief that the "bodily injury","property damage" or "personal and advertising injury"is not covered under this Policy. ALL OTHER TERMS,CONDITIONS,AND EXCLUSIONS REMAIN UNCHANGED. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices,Inc.,with its permission.Page 6 of 6 Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SCHEDULE 391-1602 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission.Page 1 of 1 Name Of Person Or Organization Location And Description Of Completed Operations (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) For the purpose of coverage provided by this endorsement, the following changes are made to SECTION II - LIABILITY: A.The following is added to SECTION II - LIABILITY, C. Who Is An Insured: Any person or organization shown in the Schedule above is also an additional insured, but only with respect to liability for "bodily injury" or "property damage" caused, in whole or in part, by "your work" at the location designated and described in the Schedule above, performed for that additional insured and included in the "products-completed operations hazard". However: 1.The insurance afforded to such additional insured only applies to the extent permitted by law; and 2.If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. B.The following is added to SECTION II - LIABILITY, D.Liability And Medical Expenses Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1.Required by the contract or agreement; or 2.Available under the applicable Limits of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. ANY PERSON OR ORGANIZATION AS REQUIRED BY CONTRACT Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF 1.SECTION I -PROPERTY,if two or more of this coverage part's coverages apply to the same loss or damage,we will not pay more than the actual amount of the loss or damage. 2.SECTION II -LIABILITY,it is our stated intent that the various Coverage Parts, forms,endorsements or policies issued to the named insured by us,or any company affiliated with us,do not provide any duplication or overlap of coverage for the same claim,"suit","occurrence",offense, accident,"wrongful act"or loss.We will not pay more than the actual amount of the loss or damage. If this Coverage Part and any other Coverage Part,form,endorsement or policy issued to the named insured by us, or any company affiliated with us,apply to the same claim,"suit",occurrence, offense,accident,"wrongful act"or loss, the maximum Limit of Insurance under all such Coverage Parts,forms, endorsements or policies combined shall not exceed the highest applicable Limit of Insurance under any one Coverage Part, form,endorsement or policy. This condition does not apply to any Excess or Umbrella Policy issued by us specifically to apply as excess insurance over this policy. G.Liberalization If we adopt any revision that would broaden the coverage under this policy without additional premium within 45 days prior to or during the policy period,the broadened coverage will immediately apply to this policy. H.Other Insurance 1.SECTION I -PROPERTY If there is other insurance covering the same loss or damage,we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance,whether you can collect on it or not.But,we will not pay more than the applicable Limit of Insurance of SECTION I -PROPERTY. 2.SECTION II -LIABILITY If other valid and collectible insurance is available to the insured for a loss we cover under SECTION II -LIABILITY,our obligations are limited as follows: a.Primary Insurance This insurance is primary except when paragraph b.below applies.If this insurance is primary,our obligations are not affected unless any of the other insurance is also primary.Then, we will share with all that other insurance by the method described in paragraph c.below. However,if you agree in a written contract,written agreement,or written permit that the insurance provided to any person or organization included as an Additional Insured under this Coverage Part is primary and non-contributory,we will not seek contribution from any other insurance available to that Additional Insured which covers the Additional Insured as a Named Insured except: (1)For the sole negligence of the Additional Insured;or (2)When the Additional Insured is an Additional Insured under another liability policy. b.Excess Insurance This insurance is excess over: (1)Any of the other insurance, whether primary,excess, contingent or on any other basis: (a)That is Fire,Extended Coverage,Builder's Risk, Installation Risk or similar coverage for "your work"; (b)That is Property Insurance for premises rented to you or temporarily occupied by you with permission of the owner; (c)That is insurance purchased by you to cover your liability as a tenant for "property damage"to premises rented to you or temporarily occupied by you with permission of the owner;or (d)If the loss arises out of the maintenance or use of aircraft,"autos"or watercraft to the extent not subject to SECTION II -LIABILITY, Exclusion g.Aircraft,Auto or Watercraft;and (2)Any other primary insurance available to you covering liability for damages arising out of the premises or operations,or the products and completed operations,for which you have been added as an additional insured by attachment of an endorsement. When this insurance is excess,we will have no duty under SECTION II - LIABILITY to defend the insured against any "suit"if any other insurer has a duty to defend the insured against that "suit".If no other insurer defends,we will undertake to do so,but we will be entitled to the 391-1003 08 16 Includes copyrighted material of Insurance Services Office,Inc.,with its permission.Page 79 of 81 Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF premium in accordance with our rates and rules then in effect. 3.With our consent, you may continue this policy in force by paying a continuation premium for each successive one-year period. The premium must be: a.Paid to us prior to the anniversary date; and b.Determined in accordance with paragraph 2. above. Our forms then in effect will apply. If you do not pay the continuation premium, this policy will expire on the first anniversary date that we have not received the premium. 4.Undeclared exposures or change in your business operation, acquisition or use of locations may occur during the policy period that is not shown in the Declarations. If so, we may require an additional premium. That premium will be determined in accordance with our rates and rules then in effect. J.Premium Audit 1.This policy is subject to audit if a premium designated as an advance premium is shown in the Declarations. We will compute the final premium due when we determine your actual exposures. 2.Premium shown in this policy as advance premium is a deposit premium only. At the close of each audit period, we will compute the earned premium for that period and send notice to the first Named Insured. The due date for audit premiums is the date shown as the due date on the bill. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured. 3.The first Named Insured must keep records of the information we need for premium computation and send us copies at such times as we may request. K.Transfer of Rights of Recovery Against Others to Us 1.Applicable to SECTION I - PROPERTY Coverage: If any person or organization to or for whom we make payment under this policy has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: insured's rights against all those other insurers. c.When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1)The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2)The total of all deductible and self-insured amounts under all that other insurance. d.We will share the remaining loss, if any, with any other insurance that is not described in this provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations for this Coverage. e.Method of Sharing If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable Limit of Insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable Limit of Insurance to the total applicable limits of insurance of all insurers. f.When this insurance is excess, we will have no duty under Business Liability Coverage to defend any claim or "suit" that any other insurer has a duty to defend. If no other insurer defends, we will undertake to do so; but we will be entitled to the insured's rights against all those other insurers. I.Premiums 1.The first Named Insured shown in the Declarations: a.Is responsible for the payment of all premiums; and b.Will be the payee for any return premiums we pay. 2.The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued. On each renewal, continuation or anniversary of the effective date of this policy, we will compute the 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission.Page 80 of 81 Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF a.Prior to a loss to your Covered Property. b.After a loss to your Covered Property only if,at time of loss,that party is one of the following: (1)Someone insured by this insurance; (2)A business firm: (a)Owned or controlled by you; or (b)That owns or controls you;or (3)Your tenant. You may also accept the usual bills of lading or shipping receipts limiting the liability of carriers. This will not restrict your insurance. 2.Applicable to SECTION II -LIABILITY Coverage: If the insured has rights to recover all or part of any payment we have made under this Coverage Part,those rights are transferred to us.The insured must do nothing after loss to impair such rights.At our request,the insured will bring "suit"or transfer those rights to us and help us enforce them. We waive any right of recovery we may have against any person or organization with whom you have a written contract,permit or agreement to waive any rights of recovery against such person or organization because of payments we make for injury or damage arising out of your ongoing operations or "your work"done under a contract with that person or organization and included in the "products-completed operations hazard". This condition does not apply to Medical Expenses Coverage. L.Transfer of Your Rights and Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual Named Insured.If you die,your rights and duties will be transferred to your legal representative but only while that legal representative is acting within the scope of their duties as your legal representative.Until your legal representative is appointed,anyone with proper temporary custody of your property will have your rights and duties but only with respect to that property. 391-1003 08 16 Includes copyrighted material of Insurance Services Office,Inc.,with its permission.Page 81 of 81 Policy Number: OH3A43196312 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF 18."Suit"means a civil proceeding in which damages because of "bodily injury", "property damage","personal and advertising injury"to which this insurance applies are alleged."Suit"includes: a.An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent;or b.Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. 19."Temporary worker"means a person who is furnished to you to substitute for a permanent "employee"on leave or to meet seasonal or short-term workload conditions. 20."Unmanned aircraft"means an aircraft that is not: a.Designed; b.Manufactured;or c.Modified after manufacture; to be controlled directly by a person from within or on the aircraft. 21."Volunteer worker"means a person who is not your "employee",and who donates his or her work and acts at the direction of and within the scope of duties determined by you,and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you. 22."Your product": a.Means: (1)Any goods or products,other than real property,manufactured,sold, handled,distributed or disposed of by: (a)You; (b)Others trading under your name;or (c)A person or organization whose business or assets you have acquired;and (2)Containers (other than vehicles), materials,parts or equipment furnished in connection with such goods or products. b.Includes: (1)Warranties or representations made at any time with respect to the fitness,quality,durability, performance or use of "your product";and (2)The providing of or failure to provide warnings or instructions. c.Does not include vending machines or other property rented to or located for the use of others but not sold. 23."Your work": a.Means: (1)Work or operations performed by you or on your behalf;and (2)Materials,parts or equipment furnished in connection with such work or operations. b.Includes: (1)Warranties or representations made at any time with respect to the fitness,quality,durability, performance or use of "your work";and (2)The providing of or failure to provide warnings or instructions. SECTION III -COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I -PROPERTY AND SECTION II -LIABILITY) A.Cancellation 1.The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2.We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: a.5 days before the effective date of cancellation if any one of the following conditions exists at any building that is Covered Property in this policy: (1)The building has been vacant or unoccupied 60 or more consecutive days.This does not apply to: (a)Seasonal unoccupancy;or (b)Buildings in the course of construction,renovation or addition. Buildings with 65%or more of the rental units or floor area vacant or unoccupied are considered unoccupied under this provision. (2)After damage by a covered cause of loss,permanent repairs to the building: (a)Have not started,and (b)Have not been contracted for, within 30 days of initial payment of loss. 391-1003 08 16 Includes copyrighted material of Insurance Services Office,Inc.,with its permission.Page 77 of 81 Policy #OH3A43196312Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF (3)The building has: (a)An outstanding order to vacate; (b)An outstanding demolition order; or (c)Been declared unsafe by governmental authority. (4)Fixed and salvageable items have been or are being removed from the building and are not being replaced. This does not apply to such removal that is necessary or incidental to any renovation or remodeling. (5)Failure to: (a)Furnish necessary heat, water, sewer service or electricity for 30 consecutive days or more, except during a period of seasonal unoccupancy; or (b)Pay property taxes that are owed and have been outstanding for more than one year following the date due, except that this provision will not apply where you are in a bona fide dispute with the taxing authority regarding payment of such taxes. b.10 days before the effective date of cancellation if we cancel for nonpayment of premium. c.30 days before the effective date of cancellation if we cancel for any other reason. 3.We will mail or deliver our notice to the first Named Insured's last mailing address known to us. 4.Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5.If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. 6.If notice is mailed, proof of mailing will be sufficient proof of notice. B.Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy. C.Concealment, Misrepresentation or Fraud This policy is void in any case of fraud by you as it relates to this policy at any time. It is also void if you or any other insured, at any time, intentionally conceals or misrepresents a material fact concerning: 1.This policy; 2.The Covered Property; 3.Your interest in the Covered Property; or 4.A claim under this policy. D.Examination of Your Books and Records We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward. We have the right to make copies of these books and records. E.Inspections and Surveys 1.We have the right but not the duty to: a.Make inspections and surveys at any time; b.Give you reports on the conditions we find; and c.Recommend changes. 2.We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. We do not warrant that conditions: a.Are safe and healthful; or b.Comply with laws, regulations, codes or standards. 3.Paragraphs 1.and 2.of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. 4.Paragraph 2.of this condition does not apply to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. F.Insurance Under Two or More Coverages If two or more of this policy's coverages apply to the same loss or damage, you may choose only one of these coverages to apply to that loss. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission.Page 78 of 81 Policy #OH3A43196312Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF CALIFORNIA CHANGES - CANCELLATION AND NONRENEWAL THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CU 02 23 09 12 Copyright, Insurance Services Office, Inc., 2012 Page 1 of 2 This endorsement modifies insurance provided under the following: COMMERCIAL LIABILITY UMBRELLA COVERAGE PART A.Paragraphs 2. and 3. of the Cancellation Common Policy Condition are replaced by the following: 2.All Policies In Effect For 60 Days Or Less If this policy has been in effect for 60 days or less, and is not a renewal of a policy we have previously issued, we may cancel this policy by mailing or delivering to the first Named Insured, at the mailing address shown in the policy, and to the producer of record, advance written notice of cancellation, stating the reason for cancellation, at least: a.10 days before the effective date of cancellation if we cancel for: (1)Nonpayment of premium; or (2)Discovery of fraud by: (a)Any insured or his or her representative in obtaining this insurance; or (b)You or your representative in pursuing a claim under this policy. b.30 days before the effective date of cancellation if we cancel for any other reason. 3.All Policies In Effect For More Than 60 Days a.If this policy has been in effect for more than 60 days, or is a renewal of a policy we issued, we may cancel this policy only upon the occurrence, after the effective date of the policy, of one or more of the following: (1)Nonpayment of premium, including payment due on a prior policy we issued and due during the current policy term covering the same risks. (2)Discovery of fraud or material misrepresentation by: (a)Any insured or his or her representative in obtaining this insurance; or (b)You or your representative in pursuing a claim under this policy. (3)A judgment by a court or an administrative tribunal that you have violated a California or Federal law, having as one of its necessary elements an act which materially increases any of the risks insured against. (4)Discovery of willful or grossly negligent acts or omissions, or of any violations of state laws or regulations establishing safety standards, by you or your representative, which materially increase any of the risks insured against. (5)Failure by you or your representative to implement reasonable loss control requirements, agreed to by you as a condition of policy issuance, or which were conditions precedent to our use of a particular rate or rating plan, if that failure materially increases any of the risks insured against. (6)A determination by the Commissioner of Insurance that the: (a)Loss of, or changes in, our reinsurance covering all or part of the risk would threaten our financial integrity or solvency; or (b)Continuation of the policy coverage would: (i)Place us in violation of California law or the laws of the state where we are domiciled; or (ii)Threaten our solvency. (7)A change by you or your representative in the activities or property of the commercial or industrial enterprise, which results in a materially added, increased or changed risk, unless the added, Policy #OH3A43196312Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Page 2 of 2 Copyright,Insurance Services Office,Inc., 2012 CU 02 23 09 12 increased or changed risk is included in the policy. (8)A material change in limits,type or scope of coverage,or exclusions in one or more of the underlying policies. (9)Cancellation or nonrenewal of one or more of the underlying policies where such policies are not replaced without lapse. (10)A reduction in financial rating or grade of one or more insurers,insuring one or more underlying policies based on an evaluation obtained from a recognized financial rating organization. b.We will mail or deliver advance written notice of cancellation,stating the reason for cancellation,to the first Named Insured,at the mailing address shown in the policy,and to the producer of record, at least: (1)10 days before the effective date of cancellation if we cancel for nonpayment of premium or discovery of fraud;or (2)30 days before the effective date of cancellation if we cancel for any other reason listed in Paragraph 3.a. B.The following is added and supersedes any provisions to the contrary: Nonrenewal 1.If we elect not to renew this policy,we will mail or deliver written notice,stating the reason for nonrenewal,to the first Named Insured shown in the Declarations,and to the producer of record,at least 60 days,but not more than 120 days,before the expiration or anniversary date. We will mail or deliver our notice to the first Named Insured,and to the producer of record,at the mailing address shown in the policy. 2.We are not required to send notice of nonrenewal in the following situations: a.If the transfer or renewal of a policy, without any changes in terms,conditions or rates,is between us and a member of our insurance group. b.If the policy has been extended for 90 days or less,provided that notice has been given in accordance with Paragraph B.1. c.If you have obtained replacement coverage,or if the first Named Insured has agreed,in writing,within 60 days of the termination of the policy,to obtain that coverage. d.If the policy is for a period of no more than 60 days and you are notified at the time of issuance that it will not be renewed. e.If the first Named Insured requests a change in the terms or conditions or risks covered by the policy within 60 days of the end of the policy period. f.If we have made a written offer to the first Named Insured,in accordance with the timeframes shown in Paragraph B.1.,to renew the policy under changed terms or conditions or at an increased premium rate,when the increase exceeds 25%. Policy #OH3A43196312Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF CA 20 48 02 99 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1 o POLICY NUMBER: AH3A42745814 COMMERCIAL AUTO CA 20 48 02 99 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIGNATED INSURED This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by this endorsement. This endorsement identifies person(s) or organization(s) who are "insureds" under the Who Is An Insured Provision of the Coverage Form. This endorsement does not alter coverage provided in the Coverage Form. This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below. Endorsement Effective: 09/24/2025 Countersigned By: Named Insured: NBS GOVERNMENT FINANCE (Authorized Representative) SCHEDULE Name of Person(s) or Organization(s): ANY PERSON OR ORGANIZATION WHEN REQUIRED BY A WRITTEN CONTRACT, WRITTEN AGREEMENT OR PERMIT. (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applica- ble to the endorsement.) Each person or organization shown in the Schedule is an "insured" for Liability Coverage, but only to the extent that person or organization qualifies as an "insured" under the Who Is An Insured Provision contained in Section II of the Coverage Form. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF 461-0500 11 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US (WAIVER OF SUBROGATION) This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below. Named Insured: Endorsement Effective Date: NBS GOVERNMENT FINANCE GROUP 09/24/2025 SCHEDULE Name(s) Of Person(s) Or Organization(s): ANY PERSON OR ORGANIZATION WHEN REQUIRED BY A WRITTEN CONTRACT Information required to complete this Schedule, if not shown above, will be shown in the Declarations The Transfer Of Rights Of Recovery Against Others To Us Condition does not apply to the person(s) or organization(s) shown in the Schedule, but only to the extent that subrogation is waived prior to the "accident" or the "loss" under a contract with that person or organization. Page 1 of 1 Policy #AH3A42745814Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF 461-0478 12 12 Includes copyrighted material of ISO Insurance Services Office, Inc., with its permission THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BLANKET ADDITIONAL INSURED – PRIMARY AND NON-CONTRIBUTORY This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM A.The following is added to SECTION II – LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured: Additional Insured if Required by Contract If you agree in a written contract, written agreement or written permit that a person or organization be added as an additional “insured” under this Coverage Part, such person or organization is an “insured”; but only to the extent that such person or organization qualifies as an “insured” under paragraph A.1.c. of this Section. If you agree in a written contract, written agreement or written permit that a person or organization be added as an additional “insured” under this Coverage Part, the most we will pay on behalf of such additional “insured” is the lesser of: (1)The Limits of Insurance for liability coverage specified in the written contract, written agreement or written permit; or (2)The Limits of Insurance for Liability Coverage shown in the Declarations applicable to this Coverage Part. Such amount shall be part of and not in addition to the Limits of Insurance shown in the Declarations applicable to this Coverage Part. Regardless of the number of covered "autos", "insureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or expense" combined resulting from any one "accident" is the Limit of Insurance for Liability Coverage shown in the Declarations. B.The following is added to SECTION IV – BUSINESS AUTO CONDITIONS, Paragraph B. General Conditions, subparagraph 5. Other Insurance: Primary and Non-Contributory If you agree in a written contract, written agreement or written permit that the insurance provided to a person or organization who qualifies as an additional “insured” under SECTION II – LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured, subparagraph Additional Insured if Required by Contract is primary and non- contributory, the following applies: The liability coverage provided by this Coverage Part is primary to any other insurance available to the additional “insured” as a Named Insured. We will not seek contribution from any other insurance available to the additional “insured” except: (1)For the sole negligence of the additional “insured”; or (2)For negligence arising out of the ownership, maintenance or use of any “auto” not owned by the additional “insured” or by you, unless that “auto” is a “trailer” connected to an “auto” owned by the additional “insured” or by you; or (3)When the additional “insured” is also an additional “insured” under another liability policy. C.This endorsement will apply only if the “accident” occurs: 1.During the policy period; 2.Subsequent to the execution of the written contract or written agreement or the issuance of the written permit; and 3.Prior to the expiration of the period of time that the written contract, written agreement or written permit requires such insurance to be provided to the additional “insured”. D.Coverage provided to an additional “insured” will not be broader than coverage provided to any other “insured” under this Coverage Part. ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS REMAIN UNCHANGED. Page 1 of 1 POLICY NUMBER: AH3A42745814 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Includes copyrighted material of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1996 461-0155 (9-97) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS AUTO COVERAGE BROADENING ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. 1.CANCELLATION EXTENSION Paragraph A. CANCELLATION 2. b. of the COMMON POLICY CONDITIONS is replaced with the following: b.60 days before the effective date of cancellation if we cancel for any other reason. SECTION I - COVERED AUTOS 2.EMPLOYEE HIRED "AUTOS" Description Of Covered Auto Designation Symbols; Symbol 8 is replaced by the following: 8 = Hired "Autos" Only - Only those "autos" you lease, hire, rent or borrow; including "autos" your employee hires at your direction, for the purpose of conducting your business. This does not include any "auto" you lease, hire, rent, or borrow from any of your "employees" or partners or members of their households. SECTION II - LIABILITY COVERAGE 3.BROADENED NAMED INSURED The following is added to the SECTION II - LIABILITY COVERAGE, Paragraph 1. Who Is An Insured provision: d.Any business entity for which you have a financial interest greater than 50% of the voting stock or otherwise have a controlling interest after the effective date of this policy or that is newly acquired or formed by you during the term of this policy. The coverage provided by this provision is afforded until expiration or termination of this policy, whichever occurs earlier. The coverage provided by this provision does not apply to any business entity described in d. above that qualifies as an insured under any other automobile liability policy issued to that business entity as a named insured or would have been an insured except for the exhaustion of the policy limits or the insolvency of the insurer. The coverage provided by this provision does not apply to "bodily injury" nor "property damage" arising from an accident that occurred prior to your acquiring or forming the business entity described in d. above. Policy Number: AH3A42745814 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Includes copyrighted material of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1996 461-0155 (9-97) 4.EMPLOYEES AS INSUREDS The following is added to the SECTION II - LIABILITY COVERAGE, Paragraph 1. Who Is An Insured provision: e.Any employee of yours is an "insured" while using a covered "auto" you do not own, hire or borrow in your business or your personal affairs. 5.SUPPLEMENTARY PAYMENTS The following amends SECTION II - LIABILITY COVERAGE, Paragraph 2. Coverage Extensions provision: Paragraph (2) is replaced by the following: (2) Up to $2500 for cost of bail bonds (including bonds for related traffic law violations) required because of an "accident" we cover. We do not have to furnish these bonds. Paragraph (4) is replaced by the following: (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $500 a day because of time off from work. 6.AMENDED FELLOW EMPLOYEE EXCLUSION The following is added to the SECTION II - LIABILITY COVERAGE, B. Exclusions Paragraph 5. Fellow Employee exclusion: This exclusion does not apply if the "bodily injury" arises from the use of a covered "auto" you own or hire. This coverage is excess over any other collectible insurance SECTION III - PHYSICAL DAMAGE COVERAGE. 7.EXPENSE OF RETURNING A STOLEN "AUTO" and SIGN COVERAGE The following is added to SECTION III - PHYSICAL DAMAGE COVERAGE, A.1. COVERAGE: d.Expense Of Returning A Stolen "Auto" We will pay for the expense of returning a covered "auto" to you. e.Sign Coverage We will pay for loss to signs, murals, paintings or graphics, as part of equipment, which are displayed on a covered "auto". The most we will pay for "loss" in any one "accident" is the lesser of: 1.The actual cash value of the property as of the time of the "loss"; or 2.The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality; or 3.$2,000. 8.GLASS BREAKAGE DEDUCTIBLE The following is added to SECTION III- PHYSICAL DAMAGE COVERAGE A. COVERAGE paragraph 3. Glass Breakage - Hitting a Bird or Animal - Falling Objects or Missiles: Any deductible shown in the Declarations as applicable to the Policy Number: AH3A42745814 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Includes copyrighted material of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1996 461-0155 (9-97) covered "auto" will not apply to glass breakage if such glass is repaired, rather than replaced. 9.TRANSPORTATION EXPENSE Paragraph 4. Coverage Extension. of SECTION III - PHYSICAL DAMAGE COVERAGE, A. COVERAGE is replaced with the following: 4.Coverage Extension We will pay up to $50 per day to a maximum of $1500 for temporary transportation expense incurred by you because of the total theft of a covered "auto" of the private passenger type. We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes of Loss Coverage. We will pay for temporary transportation expenses incurred during the period beginning 24 hours after the theft and ending, regardless of the policy’s expiration, when the covered "auto" is returned to use or we pay for its "loss". 10.HIRED AUTO PHYSICAL DAMAGE The following is added to SECTION III - PHYSICAL DAMAGE COVERAGE, A. COVERAGE: 5.Hired Auto Physical Damage If hired "autos" are covered "autos" for Liability Coverage and if Physical Damage Coverage of Comprehensive, Specified Causes of Loss, or Collision is provided under this Coverage Form for any "auto" you own, then the Physical Damage Coverage(s) provided is extended to "autos" you hire without a driver or your employee hires, without a driver, at your direction, for the purpose of conducting your business, for a period of 30 days or less, of like kind and use as the "autos" you own, subject to the following: The most we will pay for any one loss is the lesser of the following: a.$50,000 per accident, or b.cash value, or c.the cost of repair, minus the deductible equal to the lowest deductible applicable to any owned "auto" for that coverage. Any deductible shown in the Declarations does not apply to "loss" caused by fire or lightning. Subject to the limit and deductible stated above, we will provide coverage equal to the broadest coverage provided to any covered "auto" you own, that is applicable to the loss. If the loss arises from an accident for which you are legally liable and the lessor incurs an actual financial loss from that accident, we will cover the lessor’s actual financial loss of use of the hired "auto" for a period of up to seven consecutive days from the date of the accident, subject to a limit of $1,000 per accident. 11.AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE The following is added to SECTION III - PHYSICAL DAMAGE COVERAGE, A. COVERAGE: 6.Audio, Visual and Data Electronic Equipment Coverage We will pay for "loss" to any electronic equipment that receives Policy Number: AH3A42745814 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Includes copyrighted material of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1996 461-0155 (9-97) or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound. This coverage applies only if the equipment is permanently installed in the covered "auto" at the time of the "loss" or the equipment is removable from a housing unit which is permanently installed in the covered “auto’ at the time of the "loss", and such equipment is designed to be solely operated by use of the power from the "auto’s" electrical system, in or upon the covered "auto", including its antennas and other accessories. However , this does not include tapes, records or discs. The exclusions that apply to PHYSICAL DAMAGE COVERAGE, except for the exclusion relating to Audio, Visual and Data Electronic Equipment, also apply to coverage provided herein. In addition, the following exclusions apply: We will not pay , under this coverage, for either any electronic equipment or accessories used with such electronic equipment that is: 1.Necessary for the normal operation of the covered "auto" or the monitoring of the covered "auto’s" operating system; or 2.Both: a.An integral part of the same unit housing any sound reproducing equipment designed solely for the reproduction of sound if the sound reproducing equipment is permanently installed in the covered "auto", and b.Permanently installed in the opening of the dash or console normally used by the manufacturer for the installation of a radio. With respect to coverage herein, the LIMIT OF INSURANCE provision of PHYSICAL DAMAGE COVERAGE is replaced by the following: 1.The most we will pay for all "loss" to audio, visual or data electronic equipment and any accessories used with this equipment as a result of any one "accident" is the lesser of a.The actual cash value of the damaged or stolen property as of the time of the "loss"; or b.The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality; or c.$500. 2.An adjustment for depreciation and physical condition will be made in determining actual cash value at the time of the "loss". 3.Deductibles applicable to PHYSICAL DAMAGE COVERAGE, do not apply to this Audio, Visual and Data Electronic Equipment Coverage. If there is other coverage provided by this policy for audio, visual and data electronic equipment, the coverage provided herein is Policy Number: AH3A42745814 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Includes copyrighted material of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1996 461-0155 (9-97) excess. However, you may elect to apply the limit or any portion thereof of coverage provided herein to pay any deductible that is applicable under the provisions of the other coverage. 12.RENTAL REIMBURSEMENT and MATERIAL TRANSFER EXPENSE The following is added to SECTION III - PHYSICAL DAMAGE COVERAGE, A. COVERAGE: 7.Rental Reimbursement and Material Transfer Expense This coverage provides only those Physical Damage Coverages where a premium is shown in the Declarations. It applies only to a covered "auto" described or designated to which the Physical Damage Coverages apply. We will pay for auto rental expenses and the expenses, incurred by you because of "loss" to a covered "auto", to remove and transfer your materials and equipment from the covered "auto" . Payment applies in addition to the otherwise applicable amount of each coverage you have on a covered "auto". No deductibles apply to this coverage. We will pay only for those auto rental expenses incurred during the policy period beginning 24 hours after the "loss" and ending, regardless of the policy’s expiration, with the lesser of the following number of days: 1.The number of days reasonably required to repair or replace the covered “auto". If “loss” is caused by theft, this number of days is added to the number of days it takes to locate the covered "auto" and transport it to a repair shop. 2.60 days. Our payment is limited to the lesser of the following amounts: 1.Necessary and actual expenses incurred, including loss of use. 2. $3000. This auto rental expense coverage does not apply while there are spare or reserve "autos" available to you for your operations. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided for under the SECTION III - PHYSICAL DAMAGE COVERAGE, A. 4. Coverage Extension. 13.AIRBAG COVERAGE The following is added to SECTION III - PHYSICAL DAMAGE COVERAGE, B. Exclusions, paragraph 3. The portion of this exclusion relating to mechanical or electrical breakdown does not apply to the accidental discharge of an airbag. This coverage is excess of other collectible insurance or warranty. No deductible applies to this Airbag Coverage. Policy Number: AH3A42745814 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Includes copyrighted material of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1996 461-0155 (9-97) 14.AUTO LOAN PHYSICAL DAMAGE EXTENSION The following is added to SECTION III - PHYSICAL DAMAGE COVERAGE, C. Limit Of Insurance provision: When a "loss" results in a total loss to a covered auto you own for which a Loss Payee is designated in this policy, the most we will pay for "loss" in any one "accident" is the greater of: 1.The actual cash value of the damaged or stolen property as of the time of the "loss"; or 2.The outstanding balance of the initial loan, less any amounts for taxes, overdue payments, overdue payment charges, penalties, interest , any charges for early termination of the loan, costs for Credit Life Insurance, Health, Accident or Disability Insurance purchased with the loan, and carry-over balances from previous loans. 15.AUTO LEASE PHYSICAL DAMAGE EXTENSION The following is added to SECTION III - PHYSICAL DAMAGE COVERAGE, C. Limit Of Insurance provision: If, because of damage, destruction or theft of a covered "auto", which is a long-term leased "auto", the lease agreement between you and the lessor is terminated, "we" will pay the difference between the amount paid under paragraph C. LIMIT OF INSURANCE 1. or 2. and the amount due at the time of "loss" under the terms of the lease agreement applicable to the leased "auto" which you are required to pay: less any fees to dispose of the auto; any overdue payments; financial penalties imposed under a lease for excessive use, abnormal wear and tear or high mileage; security deposits not refunded by the lessor; cost for extended warranties, Credit Life Insurance, Health, Accident or Disability Insurance purchased with the loan; and carry over balances from previous leases. This coverage applies only to the initial lease for the covered "auto" which has not previously been leased. This coverage is excess over all other collectible insurance. SECTION IV - CONDITIONS 16.DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS The following is added to SECTION IV - BUSINESS AUTO CONDITIONS, A. Loss Conditions, 2. Duties In The Event Of Accident, Claim, Suit Or Loss: d.Knowledge of any "accident", claim, "suit" or "loss" will be deemed knowledge by you when notice of such "accident", claim, "suit" or "loss" has been received by: (1) You, if you are an individual; (2) Any partner or insurance manager if you are a partnership; or (3) An executive officer or insurance manager if you are a corporation. 17.BLANKET WAIVER OF SUBROGATION Paragraph 5. Transfer Of Rights Of Recovery Against Others To Us, SECTION IV - BUSINESS AUTO CONDITIONS, A. Loss Conditions is replaced by the following: Policy Number: AH3A42745814 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Includes copyrighted material of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1996 461-0155 (9-97) 5.Transfer Of Rights Of Recovery Against Others To Us If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, which have not been waived through the execution of an "insured contract", written agreement, or permit, prior to the "accident" or "loss" giving rise to the payment, those rights to recover damages from another are transferred to us. That person or organization must do everything necessary to secure our rights and must do nothing after the "accident" or "loss" to impair them. 18.UNINTENTIONAL FAILURE TO DISCLOSE INFORMATION The following is added to SECTION IV BUSINESS AUTO CONDITIONS. B. General Conditions, paragraph 2. Concealment, Misrepresentation Or Fraud: Your unintentional error in disclosing, or failure to disclose, any material fact existing after the effective date of this Coverage Form shall not prejudice your rights under this Coverage Form. However, this provision does not affect our right to collect additional premium or exercise our right of cancellation or nonrenewal. 19.HIRED AUTO – WORLDWIDE COVERAGE The following is added to SECTION IV - Business Auto Conditions, B. General Conditions, paragraph 7. Policy Period, Coverage Territory provision: e.Outside the coverage territory described in a., b., c., and d. above for an "accident" or "loss" resulting from the use of a covered "auto" you hire, without a driver, or your employee hires without a driver, at your direction, for the purpose of conducting your business, for a period of 30 days or less, provided the suit is brought within The United States of America or its territories or possessions. SECTION V - DEFINITIONS 20.MENTAL ANGUISH Paragraph C. "Bodily injury", SECTION V - DEFINITIONS is replaced by the following: C."Bodily injury" means bodily injury, sickness or disease sustained by a person including death or mental anguish resulting from any of these. Policy Number: AH3A42745814 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF IL 00 17 11 98 IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1  COMMON POLICY CONDITIONS All Coverage Parts included in this policy are subject to the following conditions. A.Cancellation 1.The first Named Insured shown in the Declara- tions may cancel this policy by mailing or deliv- ering to us advance written notice of cancella- tion. 2.We may cancel this policy by mailing or deliver- ing to the first Named Insured written notice of cancellation at least: a.10 days before the effective date of cancella- tion if we cancel for nonpayment of premium; or b.30 days before the effective date of cancella- tion if we cancel for any other reason. 3.We will mail or deliver our notice to the first Named Insured's last mailing address known to us. 4.Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5.If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. 6.If notice is mailed, proof of mailing will be suffi- cient proof of notice. B.Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy. C.Examination Of Your Books And Records We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward. D.Inspections And Surveys 1.We have the right to: a.Make inspections and surveys at any time; b.Give you reports on the conditions we find; and c.Recommend changes. 2.We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to in- surability and the premiums to be charged. We do not make safety inspections. We do not un- dertake to perform the duty of any person or or- ganization to provide for the health or safety of workers or the public. And we do not warrant that conditions: a.Are safe or healthful; or b.Comply with laws, regulations, codes or standards. 3.Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes in- surance inspections, surveys, reports or rec- ommendations. 4.Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommen- dations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or eleva- tors. E.Premiums The first Named Insured shown in the Declarations: 1.Is responsible for the payment of all premiums; and 2.Will be the payee for any return premiums we pay. F.Transfer Of Your Rights And Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named insured. If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representa- tive. Until your legal representative is appointed, an- yone having proper temporary custody of your prop- erty will have your rights and duties but only with respect to that property. Policy #AH3A42745814Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF AD 66 16 04 09 Page 1 of 1  Policy Number: VNPL019969Insured Name: NBS Government Finance Group AD 66 16 04 09 Effective Date: 09/25/2025 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NON-CONTRIBUTORY ENDORSEMENT This endorsement modifies insurance provided under the following: Professional Liability Coverage Part In consideration of the premium charged, it is hereby understood and agreed that section IX. GENERAL CONDITIONS, Item D. OTHER INSURANCE, is deleted in its entirety and replaced with the following This Policy is excess over any other valid and collectible insurance regardless of whether such other insurance is primary, excess, contributory, contingent, or otherwise, unless such other insurance is written to be specifically excess over the insurance provided by this Policy. Other insurance includes benefits under a risk retention group. Notwithstanding the above and with regard only to the entity(ies) scheduled below this insurance is primary and non-contributory solely for Professional Services provided by the Named Insured. Scheduled entities: Any person or organization you have agreed in a written and executed contract, prior to a Claim, that you would provide such person or organization primary non-contributory on your policy. Endorsement Premium: $250 All other terms and conditions of this Policy remain unchanged. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF VP 00 06 10 17 © Vela Insurance Services All rights reserved. Page 10 of 13 2.If an Extended Reporting Period is purchased, then coverage otherwise afforded by this Policy will be extended to apply to Loss and Claim Expenses from Claims that are first made and reported to the Company during such Extended Reporting Period but only for Wrongful Acts committed before the end of the Policy Period and which first commence after the Retroactive Date. The entire additional premium for the Extended Reporting Period shall be deemed fully earned at the inception of such Extended Reporting Period. The Each Claim and Aggregate Limits of Liability for the Extended Reporting Period shall be part of and not in addition to the Each Claim and Aggregate Limits of Liability for the Policy Period. C. CANCELLATION 1.The first Named Insured may cancel this Policy by surrender thereof to the Company, or by written notice to the Company stating when thereafter such cancellation shall be effective. Such notice shall be sufficient notice and the effective date of cancellation stated in the notice shall become the end of the Policy Period. 2.The Company may cancel this Policy by mailing or delivering to the first Named Insured written notice stating when, not less than sixty (60) days thereafter, such cancellation shall be effective. However, if the Company cancels this Policy because the Insured has failed to pay a Premium when due, this Policy may be canceled by the Company by mailing or delivering a written notice of cancellation to the first Named Insured stating when, not less than ten (10) days thereafter, such cancellation shall be effective. The notice of cancellation shall state the reason for cancellation. The mailing of such notice shall be sufficient notice and the effective date of cancellation stated in the notice shall become the end of the Policy Period. Delivery of such written notice by the Company shall be equivalent to mailing. 3.If this Policy is canceled, we will send the first Named Insured any Premium refund due. If the Company cancels, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. However, in no event shall the Company retain less than the Minimum Earned Premium at Inception. The cancellation will be effective even if the Company has not made or offered a refund. D. OTHER INSURANCE This Policy is excess over any other valid and collectible insurance regardless of whether such other insurance is primary, excess, contributory, contingent, or otherwise, unless such other insurance is written to be specifically excess over the insurance provided by this Policy. Other insurance includes benefits under a risk retention group. E. REPRESENTATION In issuing this Policy, the Company has relied upon the statements, representations and information in the Application. The Named Insured acknowledges and agrees that all such statements, representations and information provided in the Application are true and accurate, are made or provided in order to induce the Company to issue this Policy, and are material to the Company’s acceptance of the risk to which this Policy applies. In the event that any of the statements, representation or information in the Application are not true and accurate, this Policy shall be void with respect to the Named Insured and any other Insured who, as of the date the Application was signed, knew about the facts that were not truthfully and accurately disclosed (whether or not the Insured knew of such untruthful disclosure in the Application) or to whom knowledge of such facts is imputed. For purposes of the preceding sentence: 1.The knowledge of any Insured who is a present or former chief financial officer, in-house general counsel, partner, chief executive officer, president or chairperson of the Named Insured shall be imputed to the Named Insured; 2.The knowledge of the person(s) who signed the Application for this Policy shall be imputed to all of the Insureds; and Policy Number: VNPL019969Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF VP 09 63 08 19 © Vela Insurance Services All Rights Reserved Page 1 of 1 Policy Number: VNPL019969 Insured Name: NBS Government Finance Group VP 09 63 08 19 Effective Date: 09/25/2025 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF SUBROGATION This endorsement modifies insurance provided under the following: Professional Liability Coverage Part Section IX. GENERAL CONDITIONS, paragraph G. SUBROGATION shall not apply to the entities listed below for Claims arising out of Wrongful Acts of an Insured. Any person or organization you have agreed in a written and executed contract, prior to a Claim, that you would provide such person or organization a waiver of transfer of rights of recovery against others to us on your policy. All other terms and conditions of this Policy remain unchanged. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable ot enforce ourfor an injury covered by this policy. We will n ent that you performright against the person or organization named in the Schedule. (This agreement applies only to the ext work under a written contract that requires you to obtain this agreement from us.) dintheworkYou must maintain payroll records accurately segregating the remuneration of your employees while engage described in the Schedule. 2KKKKKThe additional premium for this endorsement shall be % of the California workers’ compensation premium otherwise due on such remuneration. Schedule Person or Organization APPLIES AS BLANKET WAIVER FOR THOSE HAVING A WRITTEN CONTRACT WITH THE POLICY- HOLDER REQUIRING WOS FOR WC POLICYHOLDER EMPLOYEES. Job Description n the date issued unless otherwise stated.This endorsement changes the policy to which it is attached and is effective o nt to preparation of the policy.)(The information below is required only when this endorsement is issued subseque Endorsement Effective Policy No. Endorsement No.W23-A427457-12 Insured Insurance CompanyALLMERICA FINANCIAL BENEFIT INSURANCE Countersigned By WC 04 03 06 (Ed 04-84) Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF ........................................................................................................................................................................................................................................................................................................................................................................................................................................................111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 WC 04 06 01 BWORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY (Ed. 01-22) CALIFORNIA CANCELATION ENDORSEMENT .A. of theThis endorsement applies only to the insurance provided by the policy because California is shown in Item 3 Information Page. The cancelation condition in Part Six (Conditions) of the policy is replaced by these conditions: Cancelation: he cancelation is to1. You may cancel this policy. You must mail or deliver advance written notice to us stating when t take effect. 2. We may cancel this policy for one or more of the following reasons: a. Non-payment of premium; b. Failure to report payroll; ed by us;c. Failure to permit us to audit payroll as required by the terms of this policy or of a previous policy issu icy ord. Failure to pay any additional premium resulting from an audit of payroll required by the terms of this pol any previous policy issued by us; e. Material misrepresentation made by you or your agent; f. Failure to cooperate with us in the investigation of a claim; ignatedg. Material failure to comply with federal or state safety orders or written recommendations of our des loss control representatives; h. The occurrence of a material change in the ownership of your business; i. The occurrence of any change in your business or operations that materially increases the hazard for frequency or severity of loss; ationj. The occurrence of any change in your business or operation that requires additional or different classific for premium calculation; ed by ourk. The occurrence of any change in your business or operation which contemplates an activity exclud reinsurance treaties. e written3. If we cancel your policy for any of the reasons listed in (a) through (f), we will give you 10 days advanc address shown innotice, stating when the cancelation is to take effect. Mailing that notice to you at your mailing or any of the reasonsItem 1 of the Information Page will be sufficient to prove notice. If we cancel your policy f t in the eventlisted in Items (g) through (k), we will give you 30 days advance written notice; however, we agree tha s, notice willof cancelation and reissuance of a policy effective upon a material change in ownership or operation not be provided. will be extended by4. If we mail the notice to you, the stated periods of notice and your right to remedy the condition ling or your5 days if the place of mailing and your mailing address is within California, 10 days if the place of mai tside of themailing address is outside of California and 20 days if the place of mailing or your mailing address is ou United States. 5. The policy period will end on the day and hour stated in the cancelation notice. he date issued unless otherwise stated.This endorsement changes the policy to which it is attached and is effective on t ent to preparation of the policy.)(The information below is required only when this endorsement is issued subsequ W23-A427457-12EndorsementEffective Policy No. Insured ALLMERICA FINANCIAL BENEFIT INSURANCEInsurance Company Endorsement No. Countersigned By WC 04 06 01 B (Ed. 01-22) Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF OWNER FIRM OR CORPORATION NAME CITY OF CARLSBAD 1635 Faraday Ave, Carlsbad CA 92008 NOT TRANSFERABLE BUSINESS REGISTRATION CERTIFICATE POST IN CONSPICUOUS PLACE The person, firm or corporation named below is granted this business certificate pursuant to the provisions of the City Business License Ordinances to engage in, carry on or conduct the business, trade, calling, profession, exhibition or occupation described below. Issuance of the certificate is not an endorsement, nor certification of compliance with other ordinances or laws. This license is issued without verification that the licensee is subject to or exempt from licensing by the State of California. LIC. NUMBER DATE ISSUED NAICS CODE EXPIRATION DATE BUSINESS LOCATION NAICS DESCRIPTION KEEP FOR YOUR RECORDS DATE ISSUED CITY OF CARLSBAD TAXES PAID IN ACCORDANCE WITH CITY BUSINESS TAX ORDINANCE 32605 Temecula PKWY STE 100 561499 06/30/2026 BLOS004833-02-2019 BLOS004833-02-2019 08/22/2025 08/22/2025 All Other Business Support Services NBS GOVERNMENT FINANCE GROUP NBS GOVERNMENT FINANCE GROUP EXPIRATION DATE 06/30/2026 BUSINESS LOCATION 32605 Temecula PKWY STE 100 LICENSE NUMBER BUSINESS NAME BUSINESS NAME NBS GOVERNMENT FINANCE GROUP 32605 TEMECULA PKWY STE 316 TEMECULA, CA 92592-6836-RIVERSIDE MAILING ADDRESS Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF CITY OF CARLSBAD Statement of Qualifications & Proposal for: RFP 25-09 – Public Facilities Development Impact Fee Nexus Study and Fee Evaluation June 20, 2025 nbsgov.com Aerial view of City of Carlsbad via Google Earth helping communities fund tomorrow since 1996 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF helping communities fund tomorrow 32605 Temecula Parkway, Suite 316 Temecula, CA 92592 Toll free: 800.676.7516 nbsgov.com June 20, 2025 City of Carlsbad Community Development Department 1635 Faraday Avenue Carlsbad, CA 92008 ATTN: Amber Dan, Contract Administrator RE: SOQ & Proposal for RFP 25-09 – Public Facilities Development Impact Fee Nexus Study and Fee Evaluation Dear Amber, We recognize that the City of Carlsbad needs an experienced consultant to provide a comprehensive evaluation of the financing and funding tools for public facilities infrastructure, ensuring that all City- imposed impact fees and taxes are sufficient to support both current and future development needs. This will form an important “baseline” for the City to flourish in the coming years, given the type and nature of development that is occurring. NBS offers an experienced team who can meet the City’s needs for these particular services, and we currently provide these services to various California municipalities. We have decades of experience performing studies for development impact fee programs as well as related special taxes (Community Facilities Districts) and benefit assessments. We are very proud of the working relationship we have developed with your City to date in the parallel realms of public finance and consulting. We at NBS offer a broad range of revenue consulting and compliance services, and we enjoy providing solutions that benefit the communities we work in. For this effort, we continue our partnership with Colgan Consulting. As needed, we can optionally bring in legal resources to complement the effort, with the experts from Colantuono Highsmith & Whately or other relevant legal counsel. Our goal is to safely work in helping communities fund tomorrow. Please contact me at 800.676.7516 or via email at nkissam@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, Nicole Kissam Director Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF TABLE OF CONTENTS 1 | FIRM EXPERIENCE......................................................................................................................... 1 2 | APPROACH TO SCOPE OF SERVICES .............................................................................................. 4 3 | KEY PERSONNEL ......................................................................................................................... 11 4 | METHOD OF COMPENSATION .................................................................................................... 15 5 | REFERENCES ............................................................................................................................... 18 APPENDIX | RESUMES ...................................................................................................................... 21 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 1 Financial Consulting Group 1 | FIRM EXPERIENCE The NBS Financial Consulting Group ensures robust fees and cost recovery mechanisms are in place. Our expert consultants help our public agency clients navigate the challenges inherent with these processes. We are stalwart advocates for our public agency clients to ensure cost recovery strategies and fee structures are well-vetted and fit the agency’s policy goals. We are often called upon to present complex issues to councils, boards and interested parties, as well as teach educational seminars on these topics. We have vast experience with public agencies of all types, as well as a broad range of complicated fee structures. We leverage our in-depth understanding of the laws, codes and regulations affecting local governments, including Propositions 26 and 218, to support our clients. We focus on cost recovery and enhancing revenue streams, leveraging our experience with a wide variety of tools such as cost allocation plans as well as user, regulatory and development impact fees that fund programs, services and infrastructure. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 2 District Consulting Group The NBS District Consulting Group ensures your Special Financing Districts (SFD) and related revenue tools are well-developed from their inception, and then administered robustly over their lifetime. 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 special assessments, special taxes – including Community Facilities Districts (CFDs) – and other fees. 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. NBS AND COLGAN CONSULTING | DEVELOPMENT IMPACT FEE NEXUS STUDY EXPERIENCE We offer over three decades of professional experience performing impact fee studies and advising California’s local governments on cost recovery policy and procedures. NBS will serve as the prime consultant on this engagement. We have completed impact fee analyses for a multitude of California governments over the past 15 years. Colgan Consulting is owned and operated by Joe Colgan and works exclusively with NBS on development impact fee analysis and will participate as a subconsultant in the role of subject matter expert. Joe has specialized in development impact fees for 30+ years and has prepared more than 150 impact fee studies for cities, counties, and special districts in California and five other states. His background also includes ten years in local government as a planner and planning director, which provides him with extensive experience in land use planning and capital facilities planning. Since 2018, NBS and Colgan Consulting have worked exclusively together on many Development Impact Fee studies. The following table reflects a sampling of municipal agencies for whom NBS and Colgan Consulting have completed Development Impact Fee studies: Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 3 TYPE OF IMPACT FEE Agency Park Land / Improvements Public Safety Public Buildings Roads / Traffic Storm Drain Water / Sewer City of Brisbane  City of Carlsbad  City of Chowchilla  City of Covina  City of Eastvale    City of Encinitas    City of Grass Valley    City of Indio  City of La Quinta  City of Orland   City of Rancho Cucamonga     City of Redmond (WA)  City of Rocklin   City of San Leandro   City of Sunnyvale   City of Victorville    City of Visalia    City of Watsonville   City of Wildomar   East Contra Costa Fire Protection District   Groveland CSD     Hughson Fire Protection District   Lathrop Manteca Fire District  Moraga Orinda Fire District   Rancho Cucamonga Fire District  Sacramento Metropolitan Fire District  Town of Ross    OPTIONAL SPECIALIZED LEGAL COUNSEL As mentioned in the cover letter, if there are legal issues to understand, we can optionally bring in the experts from Colantuono Highsmith & Whatley, Jones Hall, or other expert attorneys. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 4 2 | APPROACH TO SCOPE OF SERVICES Project Overview and Approach This proposal outlines a comprehensive evaluation of funding for public facilities infrastructure, ensuring that all City-imposed impact fees and taxes are sufficient to support both current and future development needs. Our work will result in two deliverables aligned with the City’s objectives: 1. Revenue Options Analysis An analysis of existing and potential revenue opportunities for funding of public facilities infrastructure. 2. Public Facilities Development Impact Fee Study A full nexus study with findings and recommendations for revising current impact fees and establishing new ones to ensure the fee program adequately supports public facility needs for new development. The specific scope of services offered in this proposal pertains to capital infrastructure needs and is further defined by the tasks described in the work plan that follows. That scope excludes legal, engineering, architectural, cost estimating and appraisal services. Information to be Provided by the City The work to be performed will depend heavily on information to be provided by the City. Among the types of information that may be needed for this study are: • The current General Plan, and any specific plans or other relevant planning studies. • Data on the amount of existing development and planned future development in the study area, by land use type. • The Capital Improvement Program, level of service policies, facility master plans and other facility planning data, plus inventories of existing facilities, vehicles and equipment to be funded by revenue sources. • Cost estimates for land, capital improvements, vehicles, and/or equipment to be funded by revenue sources. • Information on capital improvement funding sources and financing plans and any outstanding debt related to existing capital facilities. This proposal assumes that all information needed to perform the work covered by the scope of this proposal will be provided by the City or is readily available from other sources such as the U.S. Census Bureau or the California Department of Finance. Specifics Regarding Development Impact Fees Laws governing impact fees, including both court decisions and the California Mitigation Fee Act (Govt. Code Sections 66000 et seq.) require that local agencies imposing fees as a condition of development approval demonstrate that there is a reasonable relationship or “nexus” between those fees and the impact of a development project on facilities to be funded by the fees. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 5 The required nexus for impact fees, as set forth in relevant court decisions, can be thought of as having three elements: • Need. The City must show that development creates a need for the improvements funded by impact fees; • Benefit. The City must show that development derives a benefit from the provision of improvements funded by impact fees, and: • Proportionality. The City must show that the fees charged to a development project are proportional to the impact of that project on facilities funded by the impact fees. The “reasonable relationship” requirements contained in Section 66001 of the California Mitigation Fee Act address the same elements in different language Any one of several methods may be used to calculate impact fees for a particular type of facility. The choice of an appropriate method may depend on the availability of information and how the impact of development is to be measured. There are several important recent developments that affect how we will approach review and analysis of the City’s impact fee program. Our work plan will incorporate review and discussion of requirements of several new laws enacted by the State of California as well as recent and pending court decisions affecting impact fees such as: • SB 330 - The Housing Crisis Act of 2019 which prohibits the imposition of new approval requirements on a housing development project once a preliminary application has been submitted. • AB 1483 – Housing Data: Collection and Reporting which requires that a city, county or special district must post on its website a current schedule of its fees and exactions, as well as associated nexus studies and annual reports. Updates must be posted within 30 days. • SB 13 – Accessory Dwelling Units which prohibits the imposition of impact fees on accessory dwelling units (ADUs) smaller than 750 square feet and to require that impact fees for ADUs of 750 square feet or more must be proportional to the square footage of the primary dwelling unit. • AB 602 – Amendments to the Planning and Land Use Law and the Mitigation Fee Act which imposes several new requirements for impact fees that went into effect in 2022. Read our article here for a summary of implications: • Recent and pending court decisions affecting impact fees, such as: o Boatworks LLC vs. City of Alameda o Walker v. City of San Clemente o Hamilton and High v. City of Palo Alto o Sheetz v. County of El Dorado Detailed Work Plan The following tasks comprise our proposed list of tasks to be accomplished in meeting the City’s project objectives. This work plan may be discussed and adjusted to meet the needs of this project. TASK 1: KICK-OFF MEETING, PROJECT SCHEDULE Meeting with City staff and other interested parties. The goals are to: Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 6 • Establish lines of communication. • Clarify the specific project goals and criteria that will meet the City’s preference. • Identify and resolve any special circumstances regarding the use of the funding mechanisms. • Establish meeting dates consistent with the schedule to achieve project milestones. TASK 2: REVENUE OPTIONS ANALYSIS 2.1 Data Collection Gather and review data relevant to the project goals per the list provided in Task 2 of the City’s RFP as well as items of a more global nature such as City budgets, capital planning documents, etc. 2.2 Review Funding Options Review the funding options for public facilities, providing pros and cons of each available option for identified improvements. Funding options will focus on the use of impact fees, existing taxes, property related fees, special taxes, and special assessments. Subtasks include: • Review and assessment of the City’s Growth Management Plan, facility master plans, land use plans, and existing revenue sources listed in Task 2 of the RFP to: o Clarify purpose and use of existing revenue streams as pertains to funding of public facilities o Ensure revenue streams do not overlap or double charge in their purpose and application o Identify potential new revenue streams for funding public facilities • Review of documentation supporting existing impact fees for various capital facilities such as parks, streets, storm drains, public buildings, and utility connection/capacity charges. o Recommend best practices to help ensure accurate fee collections, tracking and reporting consistent with the Mitigation Fee Act o Identify high level best practices, strengths and opportunities for improvement within the fee program • Evaluate and recommended updates, as needed, to the existing license tax on new construction and Local Facilities Management Fee program. • Review of available data provided by the City regarding estimated project costs for identified capital improvements. • Consider rate setting, approval process and various factors involved with each funding option and discuss impacts to voters, property owners and other stakeholder groups. Consider, as needed, impacts of debt financing and pay as you go funding approaches. Task 2.3 Funding Options Report Compile the aforementioned research, analysis, and review into a Report to be presented to City staff and other interested parties. Recommendations as to which options appear most viable along with an overview of next steps in the decision-making process will also be included. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 7 TASK 3: PUBLIC FACILITIES IMPACT FEE STUDY Upon the conclusion of Task 2, the project team will have a clear idea of what types of facilities should specifically be addressed in the public facilities impact fee program. Likely candidates include public safety, city hall, corporation yard, and other general facilities not covered by other existing impact fees charged by the City. The following tasks represent the typical requirements of an impact fee study and may be adjusted to meet the needs of this project. Task 3.1 Project Initiation Attend a general project orientation meeting with key City staff and carry out other activities required to initiate the public facilities impact fee analysis, including: • Conduct initial interviews with key City staff members. • Evaluate available information resources. • Identify any issues of concern to the staff, City Council members or stakeholders. • Assess the City’s current development patterns and growth potential. Also, upon project initiation, we plan to review impacts and explore methodology options relating to fee programs as a result of recent legislative changes such as AB 602 and legal decisions such as Sheetz v. County of El Dorado. We request the City involve legal counsel at this time to assist in discussion and direction setting for the study that will best serve the City’s needs. Task 3.2 Compile Data on Existing and Future Development Collect, review, organize and analyze data on existing and future development in the City and compile it in a form useful for this study. Steps in that process may include: • Establish boundaries of the study area to be used in the analysis (e.g., existing City vs. sphere of influence). • Define the breakdown of land use types to be used in the study. • Analyze land use data provided by the City to establish a baseline of existing development and a forecast of future development by land use type. • Identify demand variables and specify demand factors that will be used to represent the impact of development in the impact fee calculations. • Prepare development data tables to incorporate into the fee calculation model and the study report. Task 3.3 Facility Needs Analysis Using forecasts of future development from Task 2, review the Capital Improvement Program and facility master plans and work with staff to identify new facilities, facility expansions, vehicles and equipment needed to serve future development. Steps in that process will include the following: • Review adopted level-of-service standards and actual service levels for relevant facility types. • Work with City staff to identify the operative level-of-service standard to be used in the impact fee analysis for each facility type. • Identify any existing deficiencies or available capacity relative to the selected level of service standard. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 8 • Project the additional service demand that will be created by new development, based on selected service levels. • Translate service demand into facility needs by facility type. • Compile cost estimates for relevant facilities and other assets. • Identify costs eligible for impact fee funding. Task 3.4 Impact Fee Analysis Using the information developed in Tasks 2 and 3, we will conduct the impact fee analysis and calculate impact fees by land use type for each type of facility addressed in the study. That process typically includes these steps: • Review the methods used to calculate existing impact fees and consider alternative methods where appropriate. • A critical new requirement of AB 602 (Govt. Code Section 66016.5) is that residential impact fees must be calculated proportionately to the square footage of units unless another method is justified by specific findings. We will work with the City early in the study process to determine the most appropriate way to satisfy that requirement. • Construct a spreadsheet fee calculation model incorporating data on existing and future development, demand factors and costs for land, buildings and other capital assets relevant to the fee calculations. • Specify formulas in the model to allocate facility costs in proportion to the impact of new development by land use type. • Calculate a cost per unit of service for each facility type. • Convert the cost per unit of service into a schedule of impact fees per unit of development, by development type. • Project potential revenue from the proposed fees. Task 3.5 Fee Comparison Policy makers often desire a comparison of fee amounts to neighboring jurisdictions. Although an “apples to apples” comparison of cost recovery policy and fee structures between agencies is challenging, a comparison can ensure a smoother implementation process. NBS will utilize their industry expertise comparing similar impact fees in up to five (5) neighboring and comparable communities. A list of communities will be selected and approved by City staff. We will download their respective fee schedules and supporting studies from the Internet. If schedules and supporting studies are not available on the Internet, we will make a reasonable attempt to contact the agency to obtain that information. We will then compile a comparison of the fee categories and amounts, for the most readily comparable fee items that match the City’s existing and proposed impact fees. Task 3.6 Draft and Final Study Reports The impact fee study report will explain the data, methodology and formulas used in the fee calculations and document the nexus between the proposed fees and the impacts of development for each type of impact fee calculated in the study. As the study progresses, the Consultant will submit preliminary drafts of portions of the study report for review and comment by City staff. Once all sections are in draft form, an administrative draft of the entire Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 9 study report, incorporating any previous staff comments, will be submitted for review. Then a final draft document will be prepared for the City Council and public review. If necessary, additional changes will be incorporated into the final study report. The study report will include the following components: • An Executive Summary including summary impact fee tables. • A chapter discussing the legal requirements for impact fees and methods used to calculate the fees. • A chapter presenting data on existing and future development in the study area and the factors used to measure the impacts of development on individual facility types. • A separate chapter for each type of fee presenting the data and methodology used in the analysis, a detailed explanation the impact fee calculations, and documentation of the nexus. • A chapter on implementation recommendations, covering steps needed to comply with the Mitigation Fee Act through proper administration of the impact fees, including but not limited to: • Findings and enactment of fees • Collection and expenditure of fees • Accounting and reporting requirements • Administrative appeals, waivers, and exemptions • Credits and reimbursements for developer-provided facilities • Updating and indexing the fees • Recovery of administrative costs for the impact fee program Deliverables include: (1) Preliminary chapter drafts; (2) a complete draft report for staff review (administrative draft and second draft); (3) a final draft report for City Council and public review (public review draft); (4) the final report. All drafts and the final report will be submitted electronically in .pdf format. Five bound copies and one unbound copy of the final report will be provided. All original Microsoft Word and Excel files will be provided to the City at completion of the work if requested. TASK 4: MEETINGS AND PRESENTATIONS We will provide support to staff to review the funding options and impact fee analysis throughout the course of the project. We have the tools to accomplish all aspects of the project’s work plan remotely from NBS offices. We utilize video conferencing, email and telephone to coordinate on the project and review deliverables in an effective manner. For purposes of developing a project budget, we have assumed all meetings of this nature will be conducted remotely. For stakeholder meeting with groups such as Chamber of Commerce, Building Industry Association, City Council or Council Subcommittees, we have provided both remote and in person “per meeting” fee options in our cost proposal. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 10 Project Timeline for the City of Carlsbad The following is an overview of our proposed project schedule. We understand per the RFP that the timeframe to complete this scope of work is projected to begin in October 2025 and be completed in no more than 24 months (two years). The following schedule reflects typical timelines for similar projects for the City’s consideration. We estimate the project will require about 10 months to complete, not including the public approval process. We will discuss a detailed schedule at the kick-off meeting, along with any needed revisions to the expected timing for individual tasks. PROJECT TIMELINE | CITY OF CARLSBAD Activity 1 - Kick-Off Meeting/Project Schedule 2 - Revenue Options Analysis 2.1 Data Collection 2.2 Review Funding Options 2.3 Funding Options Report 3 - Public Facilities Impact Fee Study 3.1 Project Initiation 3.2 Compile Data on Existing and Future Development 3.3 Facility Needs Analysis 3.4 Impact Fee Analysis 3.5 Fee Comparison 4 - Meetings and Presentations * Denotes anticipated site-visit(s) for meeting and/or presentation purposes 3.6 Draft and Final Study Reports Public Facilities Development Impact Fee Nexus Study & Fee Evaluation De c 2 0 2 5 Ma y 2 0 2 6 Oc t 2 0 2 5 Ja n 2 0 2 6 Fe b 2 0 2 6 Ma r 2 0 2 6 Ap r 2 0 2 6 TBD by Agency No v 2 0 2 5 Ju n 2 0 2 6 Ju l 2 0 2 6 Au g 2 0 2 6 Se p 2 0 2 6 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 11 3 | KEY PERSONNEL The NBS staff selected to participate on this project 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 Full resumes for key personnel are included in the Appendix. Project Management Nicole Kissam Project Manager Joe Colgan Impact Fee Specialist City Stakeholders, Management and Staff Client Services Stephanie Parson Client Services Director Nick Dayhoff Nicole Huerta Lauren Guido Senior Consultants Project Analysts & Consultants Sara Mares Tim Seufert Allan Highstreet Senior Review Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 12 NICOLE KISSAM, PROJECT MANAGER Role and Responsibilities: Nicole Kissam is based in our Southern California offices, and she will provide leadership on this project including serving as the primary point of contact for the City‘s staff and directing the work efforts of our project team. Nicole will be fully conversant in all findings and available for public events as needed. She will assist Joe Colgan in all aspects of project design and analysis and provide senior- level technical analysis throughout the project. Work Experience: Nicole Kissam is a Director of the NBS Financial Consulting Group. She has nearly 25 years of experience as a financial consultant to the public sector and has managed many impact fee studies for both large and small agencies. Nicole has been a financial and management consultant to California’s local governments for most of her career, specializing in impact fee analysis, user and regulatory fee analysis, cost allocation and grant related cost recovery, and operational improvement strategies. Prior to her career in public sector consulting, Nicole worked in a City finance department for several years, and also in marketing and public relations firms. Nicole holds a Bachelor of Science in Business Administration from California Polytechnic State University in San Luis Obispo. Nicole has served the City on multiple engagements over the past ten years including: Overhead Cost Allocation Plan, Citywide User Fee Study, Park In-Lieu Fee Analysis, and Cost Recovery Policy. SARA MARES, SENIOR REVIEW Role and Responsibilities: Sara Mares will provide technical review for the Revenue Options Analysis task and any potential CFD-related portions of this project, 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. Work Experience: Sara Mares is 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 extensive experience in revenue options analysis for municipalities as well as in planning, project management, budget analysis, rate modeling, financial analyses, formulation of rate and methods of apportionment, and public presentations. She is a registered Municipal Advisor Representative. TIM SEUFERT, SENIOR REVIEW Role and Responsibilities: Tim Seufert will provide technical review for the Revenue Options Analysis task and any potential taxation related portions of this project, including the evaluation of alternatives and results, as needed throughout the project. He will assist the project team in developing the best solutions that will fit the City’s unique characteristics and issues. Work Experience: Tim Seufert has two decades of local government experience with a wide variety of revenue tools. He also has a decade of corporate financial experience. Tim has been involved with many projects from their inception and feasibility stage to their completion. He has been a presenter at dozens of training seminars, and he is an author on local government finance issues for the California League of Cities, the California Special Districts Association, California Society of Municipal Finance Officers, and other forums. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 13 ALLAN HIGHSTREET, SENIOR REVIEW Role and Responsibilities: Allan Highstreet will provide senior technical review on this project as pertains to utility-specific subject matter. He will be available as needed throughout the project to assist the project team with the analysis and technical issues as they arise. Work Experience: Allan Highstreet has 41 years of experience in the water industry where he was a senior vice president managing water resource planning and development projects for Jacobs Engineering (previously CH2M Hill). Allan’s four decades of experience includes preparing water and sewer rate and capacity fee studies, and he provides invaluable experience to the NBS project team for this engagement. His academic background includes a BS in Agricultural Business and a MS in Agricultural Economics. JOE COLGAN, COLGAN CONSULTING, IMPACT FEE SPECIALIST Role and Responsibilities: Joe Colgan will work closely with NBS and other team members as the technical expert on this impact fee analysis. Work Experience: Joe Colgan is the President of Colgan Consulting and a recognized expert in impact fee analysis with over 30 years of experience in the field. He is a professional planner with 10 years of direct experience in local government as a planner and planning director, and extensive experience in land use planning and capital facilities planning. He has served three terms on the board of the National Impact Fee Roundtable (now the Growth and Infrastructure Consortium), including one term as vice chair, and has spoken on impact fees at conferences and seminars nationally. He earned a Bachelor of Architecture degree from the University of Nebraska, Lincoln, and a Master of City Planning degree from the University of Pennsylvania. NICK DAYHOFF, SENIOR CONSULTANT Role and Responsibilities: Under the direction of the project manager, Nick Dayhoff will be actively involved in the daily management of the Revenue Options Analysis task and any potential CFD-related portions of this project. Work Experience: Nick Dayhoff has been with NBS for more than 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. NICOLE HUERTA, SENIOR CONSULTANT Role and Responsibilities: Under the direction of the project manager, Nicole Huerta will support projects as needed with the completion of key aspects of the project’s Task Plan, including but not limited to organizational interviews, fee model development, data collection, timeline management, draft reviews, and documentation efforts. Work Experience: An NBS Senior Consultant, Nicole Huerta offers more than a decade of research and analysis experience for public and private industry, including participation in many cost allocation, cost recovery, and related fee studies. Nicole has an extensive background in public finance and governmental accounting practices and policies as well as experience working with analytical software, databases, and Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 14 spreadsheets. She has a Bachelor of Arts degree in Business Administration from California State University, Fullerton. LAUREN GUIDO, SENIOR CONSULTANT Role and Responsibilities: Under the direction of the project manager, Lauren Guido will lead efforts with individual departments and areas of study. She will complete key aspects of the project’s Task Plan, including but not limited to staff interviews, fee model design and development, data collection and analysis, timeline management, draft reviews, and documentation efforts. Work Experience: Lauren Guido is a Senior Consultant with NBS. She brings more than six years of fee study analysis experience and more than a decade of accounting and financial management experience in the public and private sectors to our project team. She has extensive applied skills in analytical software, databases, and spreadsheets and a special talent for graphical display of complex information in presentations to elected and community stakeholders. Lauren has a Bachelor of Fine Arts and Multimedia from Woodbury University. NBS PROJECT ANALYSTS AND CONSULTANTS Roles and Responsibilities: In addition to the team noted above, NBS has additional qualified staff that can assist this project’s leadership during times of peak workloads. Under the direction of the project manager, NBS staff are available to participate in the role of Project Analyst or Project Consultant as needed. Work Experience: These staff add municipal finance, accounting, and financial management experience collectively to the project team. All staff at NBS have extensive applied skills in analytical software, databases, and spreadsheets, as well as a minimum of a Bachelor’s level degree from an accredited university. STEPHANIE PARSON, CLIENT SERVICES DIRECTOR Role and Responsibilities: Stephanie Parson will act as a representative of our corporate commitment to providing the highest level of service. She will ensure that the City’s fundamental objectives are being met at all times. Work Experience: Stephanie Parson is the Chief Executive Officer of NBS where she has worked on consulting projects for Special Financing Districts, including CFDs, Property and Business Improvement Districts, Landscape and Lighting Districts, Benefit Assessment Districts, 1913 Act Assessment Districts, and Parcel Taxes. She has more than 22 years of experience with NBS and is a Registered Municipal Advisor. Stephanie earned her Master of Business Administration/Accounting from University of Phoenix and her Bachelor of Science in Business Administration/Finance from Montana State University. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 15 4 | METHOD OF COMPENSATION Our professional fees reflect the effort we believe is necessary to complete the scope of services described. We express this honestly and transparently through our price proposal. NBS applied the following hourly rates to derive the overall not-to-exceed pricing for the requested scope of services. NBS’ rates are inclusive of all costs associated with professional time, such as travel, document production, and incidentals. These rates will apply for the duration of our contract: Title Hourly Rate Senior Review $275 Director $250 Senior Consultant $200 Impact Fee Specialist $150 Consultant & Project Analyst $150 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 16 PROJECT COST DETAIL | CITY OF CARLSBAD Task Plan Hourly Rate $250 $275 $200 $150 $150 Public Facilities Development Impact Fee Nexus Study & Fee Evaluation 1 - Kick-Off Meeting/Project Schedule 4.0 1.0 0.0 1.0 1.0 7.0 1,575 2 - Revenue Options Analysis - - 2.1 Data Collection 4.0 1.0 0.0 2.0 2.0 9.0 1,875 2.2 Review Funding Options 28.0 12.0 12.0 16.0 12.0 80.0 16,900 32.0 6.0 4.0 6.0 12.0 60.0 13,150 3 - Public Facilities Impact Fee Study - - 3.1 Project Initiation 4.0 0.0 0.0 2.0 0.0 6.0 1,300 3.2 Compile Data on Existing and Future Development 12.0 0.0 0.0 24.0 6.0 42.0 7,500 3.3 Facility Needs Analysis 24.0 0.0 0.0 18.0 0.0 42.0 8,700 3.4 Impact Fee Analysis 24.0 0.0 0.0 18.0 0.0 42.0 8,700 3.5 Fee Comparison 4.0 0.0 0.0 16.0 8.0 28.0 4,600 20.0 0.0 0.0 28.0 0.0 48.0 9,200 4 - Meetings and Presentations Tasks 1- 3 - - Committees, Public Review, Etc.- - TOTAL PROJECT COST 156.0 20.0 16.0 131.0 41.0 364.0 73,500$ included above per meeting, see additional services 2.3 Funding Options Report 3.6 Draft and Final Study Reports Senior Review Consultant Labor (Hours)Grand Totals Director Senior Consultant Consultant Labor (Hours) Consultant Costs ($) Consultants & Project Analysts Impact Fee Specialist Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 17 MEETINGS / ADDITIONAL SERVICES Should the City require additional public meetings for implementation purposes, the following rates would apply, per meeting: • Remotely conducted meeting via Zoom or other platform: $750 per meeting • In-person attendance: $1,200 per meeting, plus not to exceed $1,000 in as needed travel expenses Any other additional services authorized but not included in the scope of services will be billed at the hourly rates shown above. INVOICING We invoice on a monthly basis, following recorded consultant time on the project, paralleling our completion of the work. At no time will we invoice for charges in excess of the fee to which the City and NBS mutually agree. Should the City specifically request additional services beyond those described in this document, we will discuss those requests and associated costs at that later time and only invoice for additional fees upon separate written authorization from the City. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 18 5 | REFERENCES Below is a sampling of projects and references similar in scope and magnitude to the City’s needs. CITY OF EMERYVILLE REVENUE STUDY Service Dates: 2019 – Present Contact Information In 2019, NBS led a team along with EMC Research and TBWB to analyze a wide range of revenue options. NBS has also just been asked to update these options and provide further analysis on revenue options. The options include special assessments, parcel taxes, bonds and other revenue tools. Previously, NBS was asked to provide a feasibility study and implementation plan for the City to provide additional revenues for park and landscaping needs throughout the City via a special tax or assessment. Sharon Friedrichsen Finance Director 1333 Park Avenue Emeryville, CA 94608 P: 510.596.4371 E: sharon.friedrichsen@emeryville.org NBS Project Team: Adina McCargo, Sara Mares, Tim Seufert CITY OF SAN PABLO GENERAL FUND REVENUE ENHANCEMENT EVALUATION Service Dates: September 2024 – December 2024 Contact Information The City engaged NBS in September 2024 to integrate the findings from the financial planning model and polling results into actionable revenue solutions for the City. NBS has prepared a comprehensive presentation that recaps the prior studies, provides background on local government revenue options and makes recommendations for specific revenue mechanisms that the City may consider pursuing. The NBS assessment covers taxes, fees and assessments – the three primary revenue tools outside of general property taxes available to cities. Arturo Castillo Administrative Services Director 1000 Gateway Avenue San Pablo, CA 94806 P: 510.215.3021 E: AECastillo@sanpabloca.gov NBS Project Team: Sara Mares, Greg Ghironzi Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 19 CITY OF INDIO DEVELOPMENT IMPACT FEE STUDY Project Dates: June 2019 – May 2020 Contact Information This comprehensive review and update of the City of Indio’s impact fee program included the following fees: Park Land and Improvements, Police Facilities, Fire Protection Facilities, Public Buildings, Roads and Bridges, Traffic Signals, Storm Drainage Improvements, and Water System Improvements. The final report for this Study was completed in May 2020 and adoption was delayed due to pandemic related issues. The results were successfully adopted by City Council in December 2021. Bryan Montgomery City Manager 100 Civic Center Drive Indio, CA 92201 P: 760.391.4015 E: bmontgomery@indio.org NBS Project Team: Nicole Kissam, Joe Colgan CITY OF ROCKLIN IMPACT FEE STUDY – PARK IMPROVEMENTS AND PUBLIC FACILITIES Service Dates: July 2019 – June 2022 Contact Information NBS and Colgan updated Rocklin’s impact fees for park improvements, community and recreation facilities and general government facilities including Police and Fire facilities. Those fees had not been updated since 2006. We worked with a committee consisting of the City Manager, Assistant City Manager and several department heads to identify an approach to the impact fee update, and to address the existence of a development agreement that controlled park impact fees for much of the new development in the City. We also worked closely with the City’s Finance Department to address outstanding debt on some facilities. The project team met several times with the local building industry to answer questions about methodology and industry standards, and to resolve issues of concern to builders and developers. Impact fees based on this study were adopted by the Rocklin City Council in June 2022. Aly Zimmerman City Manager 3970 Rocklin Road Rocklin, CA 95677 P: 916.625.5583 E: alyz@rocklin.ca.us NBS Project Team: Nicole Kissam, Joe Colgan CITY OF CARLSBAD PARK LAND DEDICATION AND IN-LIEU FEE STUDY Project Dates: March 2023 – May 2024 Contact Information Kyle Lancaster Parks & Recreation Director 1635 Faraday Avenue Carlsbad, CA 92008 P: 442.339.2941 E: kyle.lancaster@carlsbadca.gov NBS Project Team: Nicole Kissam, Joe Colgan The City of Carlsbad retained NBS to calculate updated park land dedication requirements and fees in lieu of dedication for residential subdivisions in the City as authorized by the Quimby Act (Government Code Section 66477). The final report for this Study was completed in March of 2024 and the results were successfully adopted by City Council in May of 2024. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 20 CITY OF RANCHO CUCAMONGA FISCAL IMPACT ANALYSIS & CFD FORMATION, DEVELOPMENT IMPACT FEE Service Dates: 2014 – Ongoing 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. Joe Colgan completed a Citywide impact fee study for the City of in 2014. Together, NBS and Joe Colgan completed several updates to the City’s impact fee program in 2020 and most recently in 2025. Both impact fee program updates were reviewed by key industry stakeholders and successfully adopted by City Council. Facilities studied include Park Land and Improvements, Community and Recreation Centers, Libraries, Police, and Fire facilities. 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) Zackary Neighbors Deputy Director of Building and Safety Services 10500 Civic Center Drive Rancho Cucamonga, CA 91729 P: 909.477.2700 Ext 2567 E: zack.neighbors@cityofrc.us NBS Project Team: Stephanie Parson (FIA & CFD), Nicole Kissam (DIF), Joe Colgan (DIF) CITY OF VICTORVILLE CITYWIDE DEVELOPMENT IMPACT FEE STUDY Service Dates: 2019 – 2022 Contact Information NBS completed a comprehensive study of all City impact fees, successfully adopted by City Council in June 2022. The analysis included establishment of citywide fees for water, sewer, parks, recreation centers, fire, police, general government, libraries, and roads facilities. The work of this study included demographic data analysis, and evaluation of whether a separate fee calculation was needed for the airport land use area of the City. Upon issuance of the draft final report, NBS represented the project during the City’s outreach process to local development community, conducted a study session with City Council, and supported staff during the adoption hearing. Jenele Davidson, Deputy City Manager and/or Melissa Krejckant, Public Works & Water Administrative Manager 14343 Civic Drive Victorville, CA 92392 P JD: 760.955.5033 P MK: 760.243.6330 E: JDavidson@victorvilleca.gov E: mkrejckant@victorvilleca.gov NBS Project Team: Nicole Kissam, Lauren Guido, Joe Colgan, Allan Highstreet Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 21 APPENDIX | RESUMES This appendix contains full resumes for our key project personnel. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 22 TEAM RESUME NICOLE KISSAM | Director EDUCATION • Bachelor of Science, Business Administration, California Polytechnic State University, San Luis Obispo AFFILIATIONS • California Society of Municipal Finance Officers (CSMFO) • Growth and Infrastructure Consortium (GIC) SPEAKING / MEDIA • “Cost Allocation Plans (CAP) Best Practices; A Discussion of CAP Basics, Timelines, Case Studies, and In-House vs. Vendor- supported Approaches” - California State Association of County Auditors (SACA) Conference, 2021 • “A Revenue Cornucopia: One Special District’s Approach to Raising Revenue” - California Special Districts Association (CSDA), Exhibitor Series, 2020 • “Tools for Fiscal Sustainability” - CSMFO Desert Chapter, 2020 • “Fees, Fees, and MORE FEES!?” - California Association of Recreation and Park Districts, Annual Conference, 2019 • “Building Department Fees…you need a plan” - California Building Officials (CALBO) Annual Business Meeting, 2018 HIGHLIGHTS Nicole Kissam is Director of Financial Consulting for NBS. She has more than 20 years of experience in public sector consulting, city government, marketing, and public relations. Nicole specializes in cost recovery and revenue policy for California local governments. She routinely manages projects and provides senior level technical analysis on impact fee studies, user/regulatory fee analyses, cost allocation plans, and financial plans. She has completed over 100 consulting engagements for a range of cities, counties, and special districts, including those with less than 10,000 population up to the largest in the State such as Los Angeles, Sacramento, and San Jose. Her background also includes performance of various management audits that improved operational efficiency of development services, parks and recreation, and utility departments. Nicole is regularly invited to speak on the topics of cost recovery, fee program development, and fiscal sustainability for various prominent professional organizations in California. RELEVANT PROJECT EXPERIENCE • East Contra Costa Fire Protection District, Impact Fee Study and Fire Prevention Regulatory Fee Study – Completed a complex analysis of impact fees for the District, requiring the merging of several different legacy fee structures from the County and two incorporated cities served by the District. The Study required participation with interested developers, has been successfully adopted in 2020 by the County and one incorporated city, and is pending final adoption by the second city’s Council in February 2021. NBS also developed a first Regulatory fee program for the District’s newly added fire prevention division, adopted in 2020. • City of Indio, Citywide Development Impact Fee Study – Fees evaluated included Park Land and Improvements, Fire Protection Facilities, Police Facilities, Public Buildings, Roads and Bridges, Traffic Signals, Storm Drainage Improvements. • City of La Quinta, Development Impact Fee Study – Fees evaluated included Parks and Recreation, Community and Cultural Centers, Library, Civic Center, Maintenance Facilities, Transportation. Adoption process involved working with local building industry associations. Fee program adopted successfully by Council in 2019. • Los Angeles, Tree In-Lieu Fee Analysis for the Board of Public Works – Evaluated the cost of sourcing, planting, and maintaining trees paid for “in-lieu” of conditions of development for protected trees and other types of City trees. Assisted in implementing a fee program with the Board of Public Works. • Other Recent Impact Fee Projects – Lathrop Manteca Fire District, Moraga Orinda Fire Protection District, City of Orland, Plymouth, Rancho Cucamonga, Rocklin, Town of Ross, Sacramento Metropolitan Fire District “Thanks again for another successful fee study. Always a pleasure working with you and your team.” Greg McFann, Building Official City of Alameda Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 23 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 Chief Operating Officer of 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 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 24 TEAM RESUME TIM SEUFERT | Managing Director EDUCATION • Master of Public Administration, San Francisco State University • Bachelor of Science, Finance, University of Southern California AFFILIATIONS • Member, CSMFO Professional Standards Committee. Board member, San Francisco Parks Alliance • Member: CARPD, CMTA, CSDA, CSMFO, League of California Cities, GFOA, and MMANC SPEAKING / MEDIA • Fundamentals of Fees, Rates, Charges and Land-Based Financing Tools. CSMFO Training Class, November 16, 2019 • Enhancing Special District Revenues. 2019 CSDA General Manager Leadership Summit, June 2019 • Special Financing Districts Review and Update. California State Association of County Auditors Annual Conference, April 2018 • Testimony regarding law, policy and financial issues regarding Accessory Dwelling Units (ADU). Joint hearing of the California Assembly Committees on Housing & Community Development and Local Government, April 2019 • The Recreation and Park Revenue Toolbox. California Association of Recreation and Park Districts, May 2018 • “Introduction to Special District Revenues-A Primer on the Revenue Tools Available in California” Published by CSDA, 2019 • “Municipal Revenue Sources Handbook.” Published by the League of California Cities, 2020 BIOGRAPHY AND HIGHLIGHTS Based in the San Francisco office, Tim Seufert is Managing Director of NBS. He has over two decades of local government experience, out of more than three decades of financial and management experience. He is involved with funding and financing projects from their inception and feasibility stage to their completion, as well as the ongoing consulting and administration for Special Financing Districts (SFDs). Tim has worked with municipalities, school districts, counties, and many types of special districts including park/recreation, fire, water, wastewater and others. • In-depth experience in the selection and use of many types of revenue tools and ballot measures, including SFDs • Extensive client history involves well over 200 clients • Presenter, trainer, and author on local public finance issues • Registered Municipal Advisor RELEVANT PROJECT EXPERIENCE San Francisco Civic Center Community Benefits District (BID) Renewal and Expansion: Successfully completed in 2019, with a record-setting 94% affirmative ‘yes’ ballot, NBS provided consulting related to the data analysis, services provided, and assessment engineering for a substantially increased budget and territory. San Francisco Civic Center Community Benefits District (BID) Renewal and Expansion: Successfully completed in 2019, with a record-setting 94% affirmative ‘yes’ ballot, NBS provided consulting related to the data analysis, services provided, and assessment engineering for a substantially increased budget and territory. • San Francisco Civic Center Community Benefits District (BID) Renewal and Expansion: Successfully completed with a record- setting 94% affirmative ‘yes’ ballot, provided consulting related to the data analysis, services provided, and assessment engineering for a substantially increased budget and territory. • San Francisco Bay Restoration Authority: Worked with the nine-county Authority to develop a parcel tax structure to achieve a number of goals, approved by 70% of the voters in 2016. Currently administer the parcel tax, which encompasses over two million parcels, believed to be the largest in the USA. • City of Novato/Pacheco Community: Successful CFD formation for acquisition of open space, with a 95% yes vote. Working with agency staff, counsel and others, developed structure and tax formula that satisfied the community, Marin Open Space Trust, City and financing needs. • East Bay Regional Park District: Formed new CFDs and annually administer large special assessments and CFDs. These SFDs encompass tens of thousands of parcels, across two counties. Initially developed goals and policies for first CFD, then formed 4 CFDs, three for new development areas and third for the replacement of the existing parcel tax. “Our Board and staff appreciate the expertise, guidance and experience that Tim and the NBS team bring to our funding tools. Their approach builds confidence so that we can take action.” Deborah Spaulding, Assistant General Manager, East Bay Regional Park District Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 25 TEAM RESUME ALLAN HIGHSTREET, PMP | Principal Consultant EDUCATION • Master of Science, Agricultural Economics, UC Davis • Bachelor of Science, Agricultural Business Management, California State University, San Luis Obispo AFFILIATIONS • Project Management Professional (2002, No. 52367) • American Water Works Association (AWWA), Member PROJECTS |CONT. HIGHLIGHTS After retiring from Jacobs Engineering as a senior vice-president, Allan Highstreet has since joined NBS as a technical consultant with the highest level of expertise in water-related financial analyses. Allan is a senior economist with 43 years of experience in financial planning for water, wastewater, and stormwater utilities, including rate studies, project funding, and cost allocations. He has performed economic assessments, cost analyses, finance plans, and rate studies, including preparing loan applications and related documents for many municipal clients. RELEVANT PROJECT EXPERIENCE • Rowland Water District – Water and Recycled Water Rate Study. Update water and recycled water rates. Proposed a minor increase in order to fund maintenance of the water system. Update the cost-based rates and drought rates to coincide with the District’s Water Shortage Contingency. Objectives for the recycled water system: develop a method for allocating costs in the District’s budget to the potable and recycled water systems, establish a financial plan to have recycled water customers bear a greater percentage of their costs. • Project Economist, Groundwater Recovery Enhancement and Treatment Program, City of Oxnard, CA. Prepared a Title 16 feasibility study to obtain a $20 million grant from U.S. Bureau of Reclamation. This project comprised of a recycled water treatment, conveyance, and injection. Tasks included providing recycled water for groundwater injection and irrigation that would enable the City to build groundwater credits through injection and obtain groundwater allocations from agricultural users who would use recycled water in lieu of groundwater. Allocations and credits could then be used to make up the City’s water supply deficit. • Project Economist, Finance Planning Framework, California Water Plan, California Department of Water Resources, CA. Assisting in preparing the Finance Planning Framework for the 2013 and 2018 California Water Plan. The effort includes describing the current financial setting, developing approaches to prioritizing investments, and developing a menu of available financing strategies. • Merced Irrigation District, Merced, CA – Water Cost of Service Study: Prepared a cost-of-service study that estimated user charges and fees for the water deliveries within the District. Also prepared the Proposition 218 material for the vote to enact the rates. • Byron Bethany Irrigation District, Byron, CA – Water Cost of Service Study: Prepared a cost-of-service study that estimated user charges for the water deliveries within the District. Also prepared the Proposition 218 material for the vote to enact the rates. • Westlands Water District, CA – Evaluating Land Based Assessments: Led an evaluation of possible land based assessments in the District, then prepared an Engineers Report to implement a benefit assessment for the District. • Oakdale Irrigation District, Oakdale, CA – Water Rate Study: Prepared a cost-of-service study that estimated user charges for the water deliveries within the District. This study moved the District from a flat rate to tiered volumetric rates to comply with the Water Conservation Act of 2009 (SBx 7-7). Also prepared the Proposition 218 material for the vote to enact rates. • City of Tracy, Tracy, CA – Sewer Rate Studies: Has prepared sewer rate updates for the City of Tracy since 1979. Originally done to satisfy SRF requirements, more recent updates focused on cost of service studies. • Senior Consultant, San Mateo Clean Water Program, San Mateo, CA. Overseeing the preparation of the State Revolving Fund loan applications for the $800M Clean Water Program. These efforts include developing a financial model to evaluate funding scenarios and preparing the application packages. • Project Economist, Wastewater Master Plan, Laguna County Sanitation District, Santa Barbara, CA. Prepared a financial model that estimated user charges and demand fees for various capital improvement scenarios. The model’s financial dashboard could vary in growth, timing of projects, escalation rates, financing terms, and rate structure alternatives to develop the appropriate master plan for the District. Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 26 TEAM RESUME JOE COLGAN | Subconsultant, Impact Fee Specialist EDUCATION • Master of City Planning degree, University of Pennsylvania Bachelor of Architecture degree, University of Nebraska, Lincoln AFFILIATIONS • Growth and Infrastructure Consortium (formerly the National Impact Fee Roundtable) • Over 35 years as a member of the American Planning Association (APA) and the American Institute of Certified Planners (AICP) SPEAKING / MEDIA • National Impact Fee Roundtable 2004, 2005, 2007, 2009, 2011 • California Association of Recreation and Parks Districts 2019 HIGHLIGHTS Joe Colgan is founder and president of Colgan Consulting Corporation, a small Sacramento firm specializing in development impact fees for cities, counties and special districts. He has a thorough understanding of the constitutional and statutory requirements for defensible impact fees and is an expert in impact fee methodologies. The vast majority of Joe’s impact fee work has been done for California clients, but he has also done impact fee studies in Oregon, Washington, Arizona, Utah, New Mexico and Florida. He has prepared more than 200 impact fee studies since 1990, for clients as large as Albuquerque, NM (pop. 555,000) and the Orange County (CA) Fire Authority (serving 22 cities and unincorporated Orange County), and as small as Brisbane CA (pop. 4,700). RELEVANT PROJECT EXPERIENCE • City of Indio, Comprehensive Impact Fee Study • City of Manhattan Beach, Impact Fee Feasibility Study • City of Wildomar, Comprehensive Impact Fee Study and Two Impact Fee Update Studies • City of Rocklin, Parks and Public Facilities Impact Fee Study • City of Vista, Impact Fee Update Study for Streets and Signals; Joe has prepared four impact fee studies for Vista • City of La Quinta, Comprehensive Impact Fee Studies and Updates; Joe has prepared three impact fee studies for La Quinta • City of Orange, Impact Fee Study for Police, Libraries and Parks • City of Lemoore, Comprehensive Impact Fee Studies and Updates; Joe has prepared four impact fee studies for Lemoore • City of Madera, Comprehensive Impact Fee Study and Update • City of Beaumont, Comprehensive Impact Fee Study • Town of Windsor, Impact Fee Study for Parks and Rec, Open Space and Trails, Police, Fire and Public Facilities • City of Cloverdale, Impact Fee Study for Accessory Dwelling Units • City of Moreno Valley, Comprehensive Impact Fee Studies and Updates; Joe has prepared four impact fee studies for Moreno Valley • City of Encinitas, Impact Fee Study Streets and Signals, Parks, Fire and Libraries; Joe has prepared three impact fee studies for Encinitas • City of Rancho Cucamonga, Two Impact Fee Studies for Parks, Community & Recreation Centers, Libraries, Police, and the Animal Center Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 27 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 Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 28 EDUCATION • Bachelor of Arts, Business Administration, California State University, Fullerton HIGHLIGHTS • More than a decade of research and analysis experience for public and private industry • Experienced Consultant supporting cost allocation, user and regulatory fee studies • Lead Consultant for Ground Emergency Medical Transportation cost reporting services • Working knowledge of public finance and governmental accounting practices and policies • Extensive experience working with analytical software, databases, and spreadsheets BIOGRAPHY Nicole Huerta serves as Senior Consultant for NBS’ Financial Consulting Group. She provides data gathering, analysis, modeling and project tracking support for Overhead Cost Allocation Plans and User Fee Studies. She has also served as an analyst for many of NBS’ special district formation and administration clients. In addition to her experience at NBS, Nicole offers many years of work experience and undergraduate studies in cost/expense recovery analysis, asset allocation, market analysis, economic analysis, portfolio management, and profit and loss statements. RELEVANT PROJECT EXPERIENCE Nicole has consulted and served on many projects, including the following representative and recent project samples: • City of Carlsbad, Citywide Cost Allocation Plan and User Fee Study, GEMT Cost Reporting, Ground Ambulance Data Collection System Cost Reporting • Clean Water Services, Indirect Cost Rate Analysis • Cole County EMS, GEMT Cost Reporting, Ground Ambulance Data Collection System Cost Reporting • Commute.org, Fully Burdened Hourly Rate Analysis • City of Culver City, Annual Cost Allocation Plan • City of Indio, Ambulance and Emergency Services Fee Study • City of Pleasanton, Citywide Cost Allocation Plan • City of Poway, Ambulance and Emergency Services Fee Study • City of Redmond, Basic Life Services Ambulance Fee Study • Riverside Community Services Agency, Cost Allocation and Rate Study • Sacramento Public Library Authority, Annual Cost Allocation Plan • City of San Carlos, Citywide User Fee Study • San Francisco County Transportation Authority, Annual Indirect Cost Rate Analysis • San Francisco Municipal Transportation Authority, Annual Indirect Cost Rate Analysis • San Francisco Planning Department, User Fee Study • City of Victorville, Cost Allocation Plan and User Fee Study • Vista, Ambulance and Emergency Services Fee Study TEAM RESUME NICOLE HUERTA | Senior Consultant “Thank you for all your help... I couldn’t be more impressed with our experience.” Eric Hoy, Chief of EMS, Cole County EMS Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF Proposal for City of Carlsbad NBS | 29 A EDUCATION • Bachelor of Fine Arts and Multimedia, Woodbury University, Burbank HIGHLIGHTS • Experienced Consultant supporting cost allocation, user fee studies, and development impact fee studies • Extensive experience in budget management and financial reporting • Extensive experience working with analytical software, databases, and spreadsheets BIOGRAPHY Lauren Guido offers more than a decade of finance experience in accounting, budget planning and systems analysis. She performs various financial analyses, data management, and customer data analyses for Development Impact Fee Studies, Overhead Cost Allocation Plans, and User Fee Studies. Lauren’s diverse knowledge of accounting, budgeting, and resource management is essential to the work performed by NBS. RELEVANT PROJECT EXPERIENCE Lauren has consulted and served on many projects, including the following representative and recent project samples: • City of Alameda, Building, Planning, Public Works, and Fire Fee Study • City of Albany, Building, and Planning Fee Study • City of Camarillo, Citywide User Fee Study • City of Chowchilla, Citywide Development Impact Fee Study • East Contra Costa Fire Protection District, Fire Prevention Regulatory Fee Study and Fire Facilities Development Impact Fee Study • City of Indio, Citywide Fee Study Update and Development Impact Fee Study • City of Lathrop, Building Fee Study • City of Los Angeles, Department of City Planning Fee Study • City of Los Angeles, Department of City Planning, Home Sharing Ordinance Fee Study • City of Portola Valley, Development Services Fee Study • City of Rocklin, Public Facilities Impact Fee Study • Rancho Cucamonga Fire Protection District, Regulatory Fee Analysis and Development Impact Fee Study • Sacramento Metropolitan Fire District, Community Risk Reduction Regulatory Fee Study and Capital Facilities (Impact) Fee Study • City of San Ramon, Planning Fee Study • City of Tracy, Citywide User Fee Study and Internal Service Fund Rates Analysis • City of Tustin, Citywide User Fee Study • City of Yorba Linda, Citywide Fee Study • City of Victorville, Development Impact Fee Study TEAM RESUME LAUREN GUIDO | Senior Consultant “Lauren was terrific in helping to deliver this project for us. She took the time to dive into the more technical and detailed aspects of a very unique subject area, kept the project moving, and was in constant communication with us as the client. Would love to work with her again on any project.” Raoul Mendoza, Chief Management Analyst, Los Angeles City Planning Docusign Envelope ID: 51398696-95B0-4E35-9537-5DF3211B93EF