The City of Oakdale looks to save approximately $12,000 a year by moving to a new consulting firm to administer its three community facilities district bonds for Bridle Ridge Development.
City Finance Director Albert Avila announced to the city council that in an effort to save the financially-strapped city money in administrative costs, he sought out bids for the contract.
The city is required to calculate the amount necessary for the payment of the principal, interest, and other administrative costs, of the bond for submission to the county for its property tax assessments and currently pays $20,102 to NBS Government Finance Group of Temecula for the service.
Avila received four bids for the city contract that ranged from $8100 to $22,500.
“All bidders are qualified to meet the needs of the city and would perform the requested services,” Avila said.
The $8100 yearly service fee bid was received from Special District Services Inc., based also in Temecula.
During the bid process, NBS, the company that had been charging the city $20,000, bid the same contract at $12,250, a cut of 40 percent.
Avila said the city had been contracting with NBS for administering the accounts for 10 years.
When contacted, Oakdale City Manager Bryan Whitemyer said the reason for the disparity was due to the economy booming at the time the service was initiated, compared to now where cities are struggling financially.
“That was the going rate at the time and cities would pay it,” Whitemyer said. “Now things are much more competitive.”
Mayor Pat Paul said she was pleased that the city would be having a cost savings, but pondered other contracts the city had.
“It signals to me that we need to go out to bid on other things and services,” Paul said. “We have to remain positive, look to new ideas, and keep moving on these things.”
For the entire story, read the May 29 edition of The Leader