HomeMy WebLinkAboutContracts & Agreements_28-2004_CCv0001.pdf AGREEMENT FOR PROPERTY TAX AUDIT AND INFORMATION SERVICES
This Agreement is made and entered into as of the 17 day of February ,
2004 by and between the CITY OF REDLANDS, a municipal corporation
hereinafter called CITY, and HdL Coren & Cone, a California Corporation
hereinafter called CONTRACTOR.
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 the
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 the CITY property tax base and identify and
recover revenues misallocated within the CITY, redevelopment project areas, or
to other jurisdictions; and
WHEREAS, CONTRACTOR has the programs, equipment, data and personnel
required to deliver the property tax services referenced herein;
NOW, THEREFORE, CITY and CONTRACTOR, for the consideration
hereinafter described, mutually agree as follows:
DEFINITIONS
Agency: Redevelopment Agency of the City
Data Base: A computerized listing of property tax parcels and
information compiled for CITY from information provided by
the County
Property Tax Roll: The assessed values of parcels on the lien date as reported
by the County.
Project Areas: The redevelopment project area(s) of the City
TRA: Tax Rate Area
SERVICES
The CONTRACTOR shall perform the following services:
A. ANNUALLY, after the Property Tax Roll is available:
1 . CONTRACTOR shall establish a Data Base for CITY and
install on a personal computer or network
2. Utilizing the Data Base, CONTRACTOR will provide
a. A listing of the major property owners in the CITY,
and each Project Area, including the assessed value
of their property
b. A listing of the major property tax payers, including an
estimate of the property taxes occurred
C. A listing of property tax transfers which
since the prior lien date
d. A listing of parcels that have not changed ownership
since the enactment of Proposition XIIIA
e. A comparison of property within the CITY and each
Project Area, by county-use code designation
f. A listing by parcel of new construction activity utilizing
city building department data, including building
permits with assessor parcel numbers and project
completion dates, to identify non-residential parcels
with new construction activity and to provide reports
for use in the CITY's preparation of Proposition 4 and
111 State Appropriation Limit calculations.
9. A listing of multiple owned parcels
h. A listing of absentee owner parcels
i. Calculate an estimate of property tax revenue
anticipated to be received for the fiscal year by the
CITY and the Agency, respectively. This estimate is
based upon the initial information provided by the
County and is subject to modification. This estimate
shall not be used to secure the indebtedness of the
CITY or the Agency.
j. Upon written request, analyses based on geo areas
designated by the CITY to include assessed
valuations and square footage computations for use
in community development planning.
B. QUARTERLY
1. A listing of property tax appeals filed on properties in the
CITY and Project Areas (selected counties)
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2. A listing of property transfers that have occurred since the
last report.
3. An update of computer program parcel transfer data.
C. ANALYSIS AND IDENTIFICATION OF MISALLOCATION
ERRORS
1 In the first year of this Agreement, and as necessary
thereafter but not less than once every three years,
CONTRACTOR shall conduct an analysis to identify and
verify in both the CITY and each Project Area, parcels on
the secured Property Tax Roll which are not properly
attributed to a CITY or a Project Area TRA, and will provide
the correct TRA designation to the proper County agency.
Typical errors include parcels assigned to incorrect TRAs
within the CITY or an adjacent city, and TRAs allocated to
wrong taxing agencies and parcels missing from Project
Areas.
2. CONTRACTOR shall reconcile the annual auditor-controller
assessed valuations report to the assessor's lien date rolls
and identify discrepancies.
3. CONTRACTOR shall review parcels on the unsecured
Property Tax Roll to identify inconsistencies such as value
variations, values being reported to a mailing address rather
than the situs address, and errors involving TRAs (to the
extent records are available).
4. Property transfers and new construction completions will be
tracked to determine whether reassessment is performed
within a reasonable time. The CITY will be notified of
parcels which have failed to be reassessed.
D. ON-GOING CONSULTATION - During the term of this Agreement,
CONTRACTOR will serve as the CITY's and the Agency's resource
staff on questions relating to property tax and assist in estimating
current year property tax revenues. On-going consultation would
include, but not be limited to, inquiries resolved through use of the
CITY's data base.
E. OPTIONAL SERVICES - The following services are available on a
time and materials basis
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1 Generation of specialized data-based reports which would
require additional programming or the purchase of additional
data not necessary to carry out services outlined in Sections
A, B, and C.
2. Any Research with county agencies for which
CONTRACTOR does not have a current database.
3. Redevelopment Financial Services including but not limited
to:
a. Tax increment projections
b. Feasibility studies
C. Agency or Project Area cash flows
d. Low and moderate income housing set-aside
calculations, finding and consultations
e. Fiscal impact studies
f. Legislative analysis
9. Redevelopment plan adoption and amendment
financial feasibility studies
F. BOND SERVICES - Bond services are available for a fixed fee,
including
1. Tax Allocation Bonds fiscal consultant reports
2. Mello-Roos Special Tax studies
3. Independent redevelopment and financial consultant reports,
such as escrow release reports and additional bond tests.
CONSIDERATION
A. CONTRACTOR shall provide the services described in Services -
Sections A, B and D above, for an annual fee of $18,250 invoiced
quarterly.
B. Contractor shall be paid 25 percent of misallocated revenue
identified in the audit. Contractor's shall separate and support said
reallocation and provide CITY with an itemized invoice showing all
amounts due as a result of revenue recovery or reallocation. CITY
shall pay audit fees after Contractor's submittal of evidence that
corrections have been made by the appropriate agency. Payment to
Contractor shall be made after CITY receives its first remittance
advice during the fiscal year for which the correction applies.
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C. Fees for Optional Services as outlined in Services - Section E above
shall be billed at the following hourly rates:
Partner $150 per hour
Principal $135 per hour
Associate $100 per hour
Senior Analyst $ 85 per hour
Analyst $ 60 per hour
Administrative $ 40 per hour
Hourly rates are exclusive of expenses, which are billed at 1.15
times actual incurred costs.
D. Fees for Bond Services will be determined depending upon the
complexity of the bond issue and the time available for completion of
the task. The following are the ranges of price:
1 . Tax Allocation Bonds - $12,500 - $25,000
2. Special Tax Reports - $7,500 - $20,000
3. Independent Consultant Reports - $2,500 - $7,500
E. Except for fees billed under Section C above, all sums billed shall
constitute full reimbursement to CONTRACTOR for all direct and
indirect expenses incurred by CONTRACTOR in performing
analyses and audits including the salaries of CONTRACTOR's
employees, and travel expenses connected with contacting
appropriate county department representatives.
F. All fees are due 30 days immediately following billing. All undisputed
amounts that are not paid when due shall accrue interest from the
due date at the lesser of 18% per annum or the maximum rate
allowed by law.
CITY MATERIALS AND SUPPORT
CITY agrees to provide the following information:
A. Current CITY and Agency maps and zoning map;
B. A copy of reports received by the CITY and Agency annually from
the Auditor-Controller's office detailing Assessed Values (Secured,
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Unsecured and Utilities), as well as Unitary Values for reconciliation
analysis;
C. Parcel listing and maps of City or redevelopment parcel annexations
since the lien date roll;
D. A listing of completed new construction projects with Assessor's map
book, page and parcel (APN) numbers for proper identification and
tracking for two years prior to the date of the agreement. If the data
does not include the APN information, CONTRACTOR will research
this information at an additional cost;
E. A listing of the CITY levies assessment districts and direct
assessments;
INDEPENDENT CONTRACTOR
CONTRACTOR shall perform the services hereunder as an independent
CONTRACTOR and shall furnish such services in his own manner and method,
and under no circumstances or conditions shall any agent, servant, or employee
of CONTRACTOR be considered as an employee of CITY.
NON-ASSIGNMENT
This Agreement is not assignable either in whole or in part by CONTRACTOR
without the written consent of CITY.
ATTORNEY'S FEES
In the event a legal action is commenced to enforce any of the provisions of this
Agreement, the prevailing party shall be entitled to recover its costs and
reasonable attorney's fees.
NON-DISCLOSURE CLAUSE
In performing its duties under this agreement, CONTRACTOR will produce
reports, technical information and other compilations of data to CITY. These
reports, technical information and compilations of data are derived by
CONTRACTOR using methodologies, formulae, programs, techniques and other
processes designed and developed by CONTRACTOR at a substantial expense.
CONTRACTOR'S reports, technical information, compilations of data,
methodologies, formulae, programs, techniques and other processes designed
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and developed by CONTRACTOR shall be referred to as Proprietary
Information. CONTRACTOR'S Proprietary Information is not generally known by
the entities with which CONTRACTOR competes.
CONTRACTOR desires to protect its proprietary Information. Accordingly, CITY
agrees that neither it nor any of its employees, agents, independent contractors
or other persons or organizations over which it has control, will at any time during
or after the term of this Agreement, directly or indirectly use any of
CONTRACTOR'S Proprietary Information for any purpose not associated with
CONTRACTOR'S activities. Further, CITY agrees that it nor any of its
employees, agents, independent contractors or other persons or organizations
over which it has control, will disseminate or disclose any of CONTRACTOR'S
Proprietary Information to any person or organization not connected with
CONTRACTOR, without the express written consent of CONTRACTOR. The
CITY also agrees that it will undertake all necessary and appropriate steps to
maintain the proprietary nature of CONTRACTOR'S Proprietary Information.
GOVERNING LAW
The laws of the State of California shall govern the rights, obligations, duties and
liabilities of the parties to this Agreement and shall also govern the interpretation
of this agreement.
TERMINATION
This Agreement may be terminated by either party giving 30 days written notice
to the other of such termination and specifying the effective date thereof. Upon
the presentation of such notice, CONTRACTOR may continue to work through
the date of termination. Upon termination as provided herein, CONTRACTOR
shall be paid the value of all tax analysis and reporting work performed less
payments previously made by CITY. In ascertaining the value of the work
performed up to the date of termination, consideration shall be given to amounts
due for any unpaid invoices, and to parcels identified by CONTRACTOR which
may result in increased or reallocated revenues after the termination of this
Agreement. After CITY receives said tax payments, CONTRACTOR shall be
paid for the percentage work as previously authorized and satisfactorily
performed at the times provided in the preceding section entitled
"Consideration".
INDEMNIFICATION
CONTRACTOR hereby agrees to, and shall hold CITY, its elective and
appointive boards, officers, agents and employees, harmless from any liability for
damage or claims for damage for personal injury, including death, as well as
from claims for breach of confidentiality or property damage which may arise
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from CONTRACTOR'S willful or negligent acts, errors or omissions or those of its
employees or agents. CONTRACTOR agrees to and shall defend CITY and its
elective and appointive boards, officers, agents and employees from any suits or
actions at law or in equity for damages caused, or alleged to have been caused,
by reason of any of the aforesaid willful or negligent acts, errors or omissions.
CITY hereby agrees to, and shall hold CONTRACTOR, its officers, agents and
employees, harmless from any liability for damage or claims for damage for
personal injury, including death as well as from claims for breach of
confidentiality or property damage which may arise from CITY'S negligent acts,
errors or omissions under this Agreement. CITY agrees to and shall defend
CONTRACTOR and its officers, agents and employees from any suits or actions
at law or in equity for damage caused, or alleged to have been caused, by
reason of any of the aforesaid negligent acts, errors or omissions.
NOTICE
All notices required by this Agreement shall be given to CITY and
CONTRACTOR in writing, by personal delivery or first class mail postage
prepaid, addressed as follows:
CITY City of Redlands
35 Cajon Street
P. O. Box 3005
Redlands, California 92373-1505
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CONTRACTOR: HdL COREN & CONE
1340 Valley Vista Drive, Suite 200
Diamond Bar, California 91765
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on the date first above written by their respective officers duly
authorized in that behalf.
CITY OF REDLANDS
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CONTRACTOR:
HdL COREN & CONE
A California Corporation