HomeMy WebLinkAboutContracts & Agreements_125-2017 AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of services associated with property tax audit and
information services ("Agreement") is made and entered in this 20th day of .lune, 2017
("Effective Date"), by and between the City of Redlands, a municipal corporation ("City)" and
HdL Coren & Cone ("Consultant") City and Consultant are sometimes individually referred to
herein as a"Party" and, together, as the "Parties "
RECITALS
WHEREAS, property tax revenues can be verified and potentially increased through a
system of continuous monitoring, identification, and reconciliation to county records, and
WHEREAS, an effective program of property tax management will assist City in fiscal,
economic and community development planning, and
WHEREAS, City desires the property tax data based reports and data analysis required to
effectively manage City's property tax base and identify and recover revenues misallocated
within City to Redevelopment Property Tax Trust Fund tax increments or to other Jurisdictions,
and
WHEREAS, Consultant has the programs, equipment, data, personnel and expertise
required to deliver the property tax services referenced herein,
NOW, THEREFORE, in consideration of the mutual promises contained herein, City and
Consultant agree as follows
ARTICLE I —ENGAGEMENT OF CONSULTANT
1 1 City hereby engages Consultant to provide property tax audit and information services for
City's Management Services 1 Finance Department(the"Services")
12 The Services shall be performed by Consultant in a professional manner, and Consultant
represents that it has the skill and the professional expertise necessary to provide the
Services to City at a level of competency presently maintained by other practicing
professional consultants in the industry providing like and similar types of Services
ARTICLE 2—SERVICES OF CONSULTANT
2 1 The Services that Consultant shall perforin are more particularly described in Exhibit
"A," entitled "Scope of Services," which is attached hereto and incorporated herein by
reference
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22 Consultant shall comply with applicable federal, state and local laws and regulations in
the performance of this Agreement including, but not limited to State prevailing wage
laws
ARTICLE 3—RESPONSIBILITIES OF CITY
3 1 City shall make available to Consultant information in its possession that may assist
Consultant in performing the Services
32 City designates Danielle Garcia, Management Services I Finance Director, as City's
representative with respect to performance of the Services, and such person shall have the
authority to transmit instructions, receive information, interpret and define City's policies
and decisions with respect to performance of the Services
ARTICLE 4—PERFORMANCE OF SERVICES
41 The initial term of this Agreement shall be fol a period of three (3) years commencing as
of the Effective Date of this Agreement, and shall end on June 19, 2020, unless
terminated earlier as provided herein (the "Initial Term") City shall have the option to
extend the Initial Term of this Agreement for two additional one-year terms (each, a
"Renewal Term") on the same terms and conditions hereof by providing written notice to
Consultant not less than ten (I0) days prior to the expiration of the Initial Term or any
Renewal Term The Initial Term and the Renewal Terms are hereinafter collectively
referred to as the "Term" of this Agreement
42 If Consultant's Services include deliverable electronic visual presentation materials, such
materials shall be delivered in a form, and made available to the City, consistent with
City Council adopted policy for the same It shall be the obligation of Consultant to
obtain a copy of such policy from City staff
ARTICLE 5 —PAYMENTS TO CONSULTANT
5 1 The total compensation for Consultant's performance of the Services shall not exceed the
amount of Eighteen Thousand Two Hundred and Fifty dollars ($18,250) annually, and
Fifty Four Thousand Seven Hundred and Fifty dollars ($54,750) in total during the Initial
Term of this Agreement During any Renewal Term, the total compensation paid to the
Consultant shall be shall be the annual amount during the Initial Term ($1$,250) adjusted
by the California Consumer Pi ice Index (CCPI) for all urban users for the Los Angeles-
Riverside-Orange County, CA local area as determined by the California Department of
Industrial Relations as measured February of the first yeas to February of the third year of
the Agreement
52 Consultant shall submit monthly invoices to City describing the Services performed
during the preceding month Consultant's invoices shall include a brief description of the
Services performed, the dates the Services were performed, the number of hours spent and
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by whom, and a description of reimbursable expenses related to the Services City shall
pay Consultant no later than thirty (30) days after receipt and approval by City of
Consultant's invoice
5 3 Any notice or other communication required, or which may be given, pursuant to this
Agreement, shall be in writing Any such notice shall be deemed delivered (i) on the date
of delivery in person, (ii) five (5) days after deposit in first class registered mail, with
return receipt requested, (iii) on the actual delivery date if deposited with an overnight
courier, or (iv) on the date sent by facsimile, if confirmed with a copy sent
contemporaneously by first class, certified, registered or express snail, in each case
properly posted and fully prepaid to the appropriate address set forth below, or such other
address as a Party may provide notice in accordance with this section
City Consultant
Danielle Garcia, Directot Paula Cone, President
Management Services/Finance Department HdL.Coren & Cone
City of Redlands 1340 Valley Vista Drive, Suite 200
35 Capon Street, Suite 222 Diamond Bar, CA 91765
PO Box 3005 (mailing)
Redlands, CA 92373
Such addresses may be changed by notice to the othei Party given in the same manner as
provided above
ARTICLE 6—INSURANCE AND INDEMNIFICATION
6 1 Insurance required by this Agreement shall be maintained by Consultant for the duration
of its performance of the Services Consultant shall not perform any Services unless and
until the required insurance listed below is obtained by Consultant Consultant shall
provide City with certificates of insurance and endorsements evidencing such insurance
prior to commencement of the Services Insurance policies shall include a provision
prohibiting cancellation or modification of the policy except upon thirty (30) days prior
written notice to City
62 Workers' Compensation and Employer's Liability insurance in the amount that meets
statutory requirements with an insurance carrier acceptable to City, or certification to
City that Consultant is self-insured or exempt from the workers' compensation laws of
the State of California Consultant shall provide City with Exhibit "B," entitled
"Workers' Compensation Insurance Certification," which is attached hereto and
incorporated herein by this reference pi for to performance of the Services
63 Consultant shall secure and maintain comprehensive general liability insurance with
carriers acceptable to City Minimum coverage of One Million Dollars ($1,000,000) per
occurrence and Two Million Dollars ($2,000,000) aggregate for public liability, property
damage and personal injury is required City shall be named as an additional insured and
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such insurance shall be primary and non-contributing to any insurance or self-insurance
maintained by City
64 Consultant shall secure and maintain professional liability insurance throughout the term
of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made
65 Consultant shall secure and maintain business auto liability coverage, with minimum
limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily
injury liability and property damage liability This coverage shall include all Consultant
owned vehicles used in connection with Consultant's provision of the Services, hired and
non-owned vehicles, and employee non-ownership vehicles City shall be named as an
additional insured and such insurance shall be primary and non-contributing to any
insurance or self insurance maintained by City
66 Consultant shall defend, indemnify and hold harmless City and its elected officials,
employees and agents from and against any and all claims, losses or liability, including
attorneys' fees, arising from injury or death to persons or damage to property occasioned
by any negligent act of omission by, or the willful misconduct of, Consultant, or its
officers, employees and agents in performing the Services
ARTICLE 7—CONFLICTS OF INTEREST
7 1 Consultant covenants and represents that it does not have any investment of interest in
any real property that may be the subject of this Agreement or any other source of
income, interest in real property or investment that would be affected in any manner or
degree by the performance of Consultant's Services Consultant further covenants and
represents that in the performance of its duties hereunder, no person having any such
interest shall perform any Services under this Agreement
72 Consultant agrees it is not a designated employee within the meaning of the Political
Reform Act because Consultant
A Does not make a governmental decision whether to
(i) approve a rate, rule of regulation, or adopt of enforce a City law,
(ii) issue, deny, suspend or revoke any City permit, license, application,
certification, approval. order or similar authorization or entitlement,
(iii) authorize the City to enter into, modify or renew a contract,
(iv) grant City approval to a contract that requires City approval and to which
City is a party, of to the specifications for such a contract,
(v) grant City approval to a plan, design, report, study or similar item,
(vi) adopt of grant City approval of, policies, standards of guidelines for City
or for any subdivision thereof
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B Does not serve in a staff capacity with City and in that capacity, participate in
making a governmental decision or otherwise perform the same or substantially
the same duties for City that would otherwise be performed by an individual
holding a position specified in City's Conflict of Interest Code under Government
Code section 87302
73 In the event City determines that Consultant must disclose its financial interests,
Consultant shall complete and file a Fair Political Practices Commission Form 700,
Statement of Economic Interests, with the City Clerk's office pursuant to the written
instructions provided by the City Cleik
ARTICLE 8—GENERAL CONSIDERATIONS
8 1 In the event any action is commenced to enforce or interpret any of the terms or
conditions of this Agreement the prevailing Party shall, in addition to any costs and other
relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the
use of in-house counsel by a Party
82 Consultant shall not assign any of the Services, except with the prior written approval of
City and in strict compliance with the terms and conditions of this Agreement
83 Records, drawings, designs, cost estimates, electronic data files, databases and any other
documents developed by Consultant in connection with its performance of the Services,
and any copyright interest in such documents, shall become the property of City and shall
be delivered to City upon completion of the Services, or upon the request of City Any
reuse of such documents, and any use of incomplete documents, shall be at City's sole
risk
84 Consultant is for all purposes under this Agreement an independent contractor and shall
perform the Services as an independent contractor Neither City nor its agents shall have
control over the conduct of Consultant or Consultant's employees, except as herein set
forth Consultant shall supply all necessary tools and instrumentalities required to
perforin the Services Assigned personnel employed by Consultant are for its account
only, and in no event shall Consultant or personnel retained by it be deemed to have been
employed by City or engaged by City for the account of, or on behalf of City Consultant
shall have no authority, express or implied, to act on behalf of City in any capacity
whatsoever as an agent, nor shall Consultant have any authority, express or implied, to
bind City to any obligation
8 5 Unless eathei terminated as provided for below, this Agreement shall terminate upon
completion and acceptance of the Services by City This Agreement may be terminated
by City, in its sole discretion, by providing not less than five (5) days prior written notice
to Consultant of City's intent to terminate If this Agreement is terminated by City, an
adjustment to Consultant's compensation shall be made, but (1) no amount shall be
allowed for anticipated profit or unperformed Services, and (2) any payment due
Consultant at the time of termination may be adjusted to the extent of any additional costs
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to City occasioned by any default by Consultant Upon receipt of a termination notice,
Consultant shall immediately discontinue its provision of the Services and within five (5)
days of the date of the termination notice, deliver of otherwise make available to City,
copies (m both hard copy and electronic form, where applicable) of project related data,
design calculations, drawings, specifications, reports, estimates, summaries and such
other information and materials as may have been accumulated by Consultant in
performing the Services Consultant shall be compensated on a pro-rata basis for Services
completed up to the date of termination
86 Consultant shall maintain books, ledgers, invoices, accounts and other records and
documents evidencing costs and expenses related to the Services for a period of three (3)
years, or for any longer period required by law, from the date of final payment to
Consultant pursuant to this Agreement Such books shall be available at reasonable times
foi examination by City at the office of Consultant
87 This Agreement, including the Exhibits incorporated herein by reference, represents the
entire agreement and understanding between the Parties as to the matters contained
herein, and any prior negotiations, written proposals or verbal agreements relating to such
matters are superseded by this Agreement Except as otherwise provided for herein, any
amendment to this Agreement shall be in writing, approved by City and signed by City
and Consultant
8 8 This Agreement shall be governed by and construed in accordance with the laws of the
State of California
89 If one or more of the sentences, clauses, paragraphs or sections contained in this
Agreement is declared invalid, void or unenforceable by a court of competent
jurisdiction, the same shall be deemed severable from the remainder of this Agreement
and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs of
sections contained herein, unless to do so would deprive a Party of a material benefit of
its bargain under this Agreement
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IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed
in confirmation of this Agreement
CITY REDLAN� HDL COREN& CONE
By -' - By
Paul Barich, Mayor Pro Tempore Paula Cone resident
Attest.
l/ eanne Donaldson,�CttyClerk
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EXHIBIT "A"
SCOPE OF WORK
Services provided include property tax management service, secured and unsecured parcel
audits, assessment district processing, budget projections, Successor Agency support, and bond
fiscal analysis
Reports and Management Analyses (1)
The company will provide the following reports Reports are also available from prior years if
required
• A five year history of the values within the city, successor agency and custom (city
defined) geographic area,
• A listing of the largest value changes, positive and negative between tax years,
• A listing of the major property owners, including the assessed value of their
property and property use code designation,
• A listing of the major property tax payers, including an estimate of the property
taxes,
A listing of property tax transfers which occurred since the lien date ordered by
month,
• A multiple year comparison of growth by use code designation over a 10 year
period,
• State Appropriation Limit calculations,
• Calculate an estimate of property tax revenue anticipated to be received for the
fiscal year based upon the initial information provided by the County and subject
to modification This report is interactive for tax modeling This estimate shall not
be used to secure the indebtedness of the City
• Foreclosure data and Bank Owned Property listings
• Property sales information, and Proposition 8 exposure and recapturing potential
Analyses based on geo areas designated by the City to include assessed valuations
and square footage computations for use in economic analysis and community
development planning
Budget forecasting model for 1 and 5-year projections for General Fund, Successor
Agency and VLF In Lieu Revenues
(1) Reports area based upon property tax information obtained from your county and supplemented by
additional information from third parties Some reports are dependent upon the availability of county
data in electronic format
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Successor Agencv Services
Successor Agency Services including but not limited to
• Tax increment projections
• Cash flows for the Successor Agency by Project Area
• Assistance with Redevelopment Obligation Payment Schedules
• Assistance in providing property tax information for the taxing agencies
receiving property tax revenues from former Project Areas
• Estimates of property tax revenues to be received by the taxing entities from
former Project Areas
• Provide property tax information to the Oversight Board at the direction of
the Successor Agency
• Provide access to the Oversight Board to City and former redevelopment
agency documents at the direction of the Successor Agency
• Monitor the County distribution of tax-sharing revenues to the taxing entities
of the former redevelopment agency
• Coordinate with the Auditor-Controller the relationship between the tax-
sharing, debt service and other obligations of former redevelopment agency
• Prepare as needed an assessment of resources available to the Successor
Agency to meet the long term obligations of the former redevelopment
agency
Quarterly Reports and Svstem Updates
• A listing of property tax appeals filed on properties in the City where data is
available for purchase from the Clerk of the Board
• A listing of property transfers that have occurred since the last report will be
available through the software provided and updated on a quarterly basis
Web-Based Software
• The HdLCC provides a web-based software application to clients as a user-
friendly tool to access the City's property tax data HdLCC provides updates
to the data portion of the product on monthly basis to reflect changes in
ownership, updated appeals filings, and deed recordings
• As modifications and enhancements are made to the program, clients receive
the enhanced version of the software at no additional cost Training will be
provided to city staff within the first two months after the execution of the
agreement for property tax management and audit services and is available
annually for new staff members or staff requiring a refresher course If
additional training sessions are required, the fees in the compensation
section under hourly fees will be charged
1 IcaldjmlAgreements\PSA with HdL Coren&Cone for Property Tax Coonsulting,doe
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Delivering Revenue Hd L y�M
Insight and Efficiency the City OF Redlands
to Local Government 13,370 p.—Is Lug..t COUNLCON[
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Parcel 0167.571.05•DOOO Rpt property TRA 00S007 The City OF Redlands
Use 0101 Industrial Distribution Warehouse Agency Redlands General Fund
- Owner AMB INSTITLMONAL ALLIANCE FUND III Zoning Region Sah Bernardino
SRUS 1651 CALIFORNIA ST .` Not AV $84,853,484 %Chg from Prior Yr 1.53%
REOLAROS CA 92374 Revenue type - Gr114ni rand Sux.slar Agency
DBA Seevred $Sas,575.71 96$1141!0070W Tia 22.87%
Mad Name AMB INSTITUTIONAL ALLIANCE FJNO III 0,14Cuetd s6160.27
&Address 60 STATE ST STE 1200 BOSTON MA 02109 C—A.i S0.M Ale a,u $2,243.751.29
This Parcel Is: d Absent"Owned Pre Prop 13 70tal Rev $192,239.91 IPS
va[a s.rx•s c rueal AW., ur:—.— sur uW— Lax Sale Oat. 09!28/2Doa Sala pi rc. 628,900,000
V k— Wim Y—vlwn
Land 28,283,495 27,858,669 l�em�llons
Improvements 56,566,989 55,717,301
Rrturas
9ersonal Property
Totals 84,850,484 83,575,950
Net Total AV 94,850,484 83.575,950
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Identification and Correction of Errors
HdL Coren & Cone has the technology, methodology and trained staff to analyze
all secured parcels within the City to identify costly errors resulting to the
misallocation of property taxes
The company audits the secured and unsecured property tax rolls to ensure that
each is coded to the appropriate taxing entity The company performs an analysis
of the Assessor Rolls to identify all parcels on both the secured and unsecured tax
rolls and verify that parcel assessed valuations and the resulting taxes are
correctly allocated to the City This analysis is accomplished through the use of
specialized computer software, GIS maps, assessor maps, city maps, city records,
other pertinent documents, and field investigations
On-Going Consultation
During the term of the contract, we serve as the resource staff to the County or
agency on questions relating to property tax This includes bung "on-call" to
assist with any property tax issues On-going consultation would include, but not
be limited to inquiries resolved through use of the City data base All requests for
information based upon the County's property tax data sets are provided without
additional costs Special reports, additional research, or requests requiring
additional computer programming may entail some additional costs Attendance
at City and/or Successor Agency meetings will be billed at our hourly rates
Fees for Optional Services shall be billed at the following hourly rates
Partner $225 per hour
Principal $195 per hour
Associate $150 per hour
Programmer $150 per hour
Senior Analyst $100 per hour
Analyst $ 65 per hour
Administrative $ 45 per hour
Hourly rates are exclusive of expenses and are subject to adjustment by CONTRACTOR annually
On July 1st of each year CONTRACTOR shall provide CITY with an updated schedule of hourly
rates The rates will not be increased by more than five percent (5%) per year In addition,
expenses for Optional Services shall be billed at 115 times actual incurred costs
[1cMdjmlAgreementsTSA with I IdL Coven&Cone for Property Tax Consuit€ng.doc
EXHIBIT "B"
WORKERS' COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation In one or more of
the following ways
(a) By being Insured against liability to pay compensation by one or more Insurers
duly authorized to write compensation Insurance in this State
(b) By securing from the Director of Industrial Relations, a certificate of consent to
self-insure, either as an individual employer, or as one employer in a group of
employers, which may be given upon furnishing proof satisfactory to the Director
of Industrial Relations of ability to self-insure and to pay any compensation that
may become due to his or her employees
CHECK ONE
,/ I am aware of the provisions of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workers' Compensation or to undertake self-
Insurance in accordance with the provisions of that Code, and I will comply with such provisions
before commencing the performance of the work and activities required or permitted under this
Agreement (Labor Code §186 1)
I affirm that at all times, in performing the work and activities required or permitted under
this Agreement, I shall not employ any person in any manner such that I become subject to the
workers' compensation laws of California However, at any time, if I employ any person such
that I become subject to the workers' compensation laws of California, Immediately I shall
provide the City with a certificate of consent to self-insure, or a certification of workers'
compensation insurance
I certify under penalty of perjury under the laws of the State of California that the information
and representations made in this certificate are true and correct
HdL Coren & Cone Date 0�1z 112,01
By
Paula Con President
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