HomeMy WebLinkAboutContracts & Agreements_109-2022AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of property tax management, information and audit
services ("Agreement") is made and entered in this 21st day of June, 2022 ("Effective Date"), by
and between the City of Redlands, a municipal corporation ("City") and HdL Coren & Cone, a
California corporation ("Consultant") City and Consultant are sometimes individually referred
to herein as a "Party" and, together, as the "Parties " In consideration of the mutual promises
contained herein, City and Consultant agree as follows
ARTICLE 1— ENGAGEMENT OF CONSULTANT
1 1 City hereby engages Consultant to provide property tax management information and
audit services for City (the "Services")
1.2 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 perform are more particularly described in Exhibit
"A," titled "Scope of Services," which is attached hereto and incorporated herein by this
reference
2.2 Consultant shall comply with applicable federal, state and local laws and regulations in
the performance of this Agreement including, but not limited to, any applicable State
prevailing wage laws.
ARTICLE 3 — RESPONSIBILITIES OF CITY
31 City designates Danielle Garcia, Director of Management Services, 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
4 1 Consultant shall perform and complete the Services in a prompt and diligent manner
4.2 The term of this Agreement shall be for a period of three (3) years from the Effective
Date of this Agreement (the "Initial Term") The City shall have the option to extend the
Initial Term of this Agreement by two (2) additional one-year terms (each, an "Extended
Term"), on the same terms and conditions, by providing written notice to Consultant at
least thirty (30) days prior to the expiration of the Initial Term or any Extended Term.
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4.3 If Consultant's Services include deliverable electronic visual presentation materials, such
materials shall be delivered in a form, and made available to 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 compensation for the Consultant's performance of the Services will be the amount of
fifty-nine thousand nine hundred twenty-five dollars ($59,925 00) for the Services
provided during the Initial Term. Should this Agreement be extended, the compensation
for Consultant's performance for the Services will be the amount of nineteen thousand
nine hundred seventy-five dollars ($19,975 00) for the first Extended Term, and nineteen
thousand nine hundred seventy-five dollars ($19,975 00) for the second Extended Term,
bringing the total possible amount of compensation to ninety nine thousand eight hundred
seventy-five dollars ($99,875 00) For the Initial Term and each Extended Term, City
shall pay Consultant on a time and materials basis in accordance with the rates specified
in Exhibit `B," titled "Fee Schedule," which is attached hereto and incorporated herein
by this reference
Consultant may adjust its Based Fix Fee pursuant to the California Consumer Price Index
as set forth in Exhibit "B" Fees for the identification and correction of errors are
compensated on a contingent basis, Consultant shall receive 25 percent of general fund or
tax increment property tax revenue or other revenues attributable to City recovered or
reallocated as set forth in Exhibit "B"
5.2 Consultant shall submit quarterly 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 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 or electronic mail transmission (including
PDF), if confirmed with a copy sent contemporaneously by first class, certified,
registered or express mail, 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.
City Clerk
City of Redlands
35 Cajon Street
CONSULTANT.
HDL Coren & Cone
Paula Cone, President
120 S State College Boulevard
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P 0 Box 3005 (mailing)
Redlands, CA 92373
jdonaldson@cityofredlands org
Phone (909) 798-7531
Brea, CA 92821
Phone 714-879-5000
ARTICLE 6 — INSURANCE AND INDEMNIFICATION
6 1 The following insurance coverage 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
A. 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 execute and provide City with Exhibit "C,"
titled "Workers' Compensation Insurance Certification," which is attached hereto and
incorporated herein by this reference, prior to performance of the Services
B Comprehensive General Liability insurance with carriers acceptable to City in the
minimum amount 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 such
insurance shall be primary and non-contributing to any insurance or self-insurance
maintained by City
C 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
D 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
E. Consultant is expressly prohibited from assigning or subcontracting any of the
Services without the prior written consent of City In the event of mutual agreement
by the Parties to assign or subcontract a portion of the Services, Consultant shall add
such assignee or subcontractor as an additional insured to the insurance policies
required hereby and provide City with the insurance endorsements prior to any
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Services being performed by the assignee or subcontractor
6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed
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 or 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 or 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.
7.2 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 or regulation, or adopt or 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 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, or to the specifications for such a contract;
(v) grant City approval to a plan, design, report, study or similar item,
(vi) adopt, or grant City approval of, policies, standards or guidelines for City
or for any subdivision thereof.
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
7.3 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 Clerk.
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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
8.2 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. Any
assignment or attempted assignment without such prior written consent may, in the sole
discretion of City, result in City's immediate termination of this Agreement.
8.3 Consultant is for all purposes under this Agreement an independent contractor and shall
perform the Services as an independent contractor Neither City nor any 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
perform 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 4 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 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 or
otherwise make available to City, copies (in 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.
8.5 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
for examination by City at the office of Consultant.
8 6 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
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matters are superseded by this Agreement Except as otherwise provided for herein, any
amendment to this Agreement shall be in wntmg, approved by City and signed by City
and Consultant
8 7 This Agreement shall be governed by and construed in accordance with the laws of the
State of California, without regard to its conflicts of laws provisions The Parties agree
that all actions or proceedings ansing in connection with this Agreement shall be tned
and litigated only m the state courts located in San Bernardino County, California, and
the federal courts located m Riverside County, California
8 8 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
junsdiction, the same shall be deemed severable from the remainder of this Agreement
and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or
sections contained herein, unless to do so would deprive a Party of a matenal benefit of
its bargain under this Agreement
IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have
signed >n confirmation of this Agreement
CITE' OF REDLANDS HDL COREN & CONE
By { By /pack, efre
Paul T Banch, Mayor Paula Cone, Predent
ATTEST
ne Donaldson, City Clerk
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EXHIBIT "A"
SCOPE OF SERVICES
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)
Consultant 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,
• 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
• Property sales information, and Proposition 8 exposure and recapturing potential
• Budget forecasting model for 1 and 5-year projections for General Fund, Successor Agency and
VLF In Lieu Revenues.
(1) Reports are 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.
Successor Agency Services including but not limited to
• Tax increment projections by project area and for the Successor Agency
• Cash flows for the Successor Agency as requested
• Assistance with Redevelopment Obligation Payment Schedules as requested (additional
charges may be required)
• Estimates of property tax revenues to be received by the City as requested
• Monitor the County distribution of tax -sharing revenues to the City and to taxing entities of the
former redevelopment agency
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• Coordinate as necessary with the Auditor -Controller the relationship between the tax -sharing,
debt service and other obligations of former redevelopment agency
Monthly/Quarterly Reports and System 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 monthly basis
Web -Based Software
• Consultant provides a web -based software application to clients as a user-friendly tool to access
the City's property tax data. Consultant 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.
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EXHIBIT "B"
FEE SCHEDULE
Fee for Services
Consultant shall provide the Base Services described above, for a fixed annual fee of $19,975
(invoiced quarterly)("Based Fixed Fee")
The Base Fixed Fee shall be adjusted annually starting in calendar year 2023 by the California
Consumer Price Index (CCPI) for all items as determined by the California Department of
Industrial Relations as measured February to February by the California All Urban Consumers
index.
On -Going Consultation
During the term of the agreement, we serve as the resource staff to the County or agency on
questions relating to property tax. This includes being "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 requested by City in writing may be charged additional costs.
Attendance at City and/or Successor Agency meetings at the written request of City will be
billed at our hourly rates
Fees for Optional Services shall be billed at the following hourly rates
Partner $250 per hour
Principal $225 per hour
Programmer $200 per hour
Associate $175 per hour
Senior Analyst $125 per hour
Analyst $ 90 per hour
Administrative $ 70 per hour
Hourly rates for optional services are exclusive of expenses and are subject to adjustment by
Consultant annually On July 1st of each year starting in calendar year 2023, Consultant shall
provide City with an updated schedule of hourly rates. The rates will not be increased by more
than five percent (5%) per year
Identification and Correction of Errors
Fees for the identification and correction of errors are on a contingent basis, Consultant shall
receive twenty-five percent (25%) of general fund or tax increment property tax revenue or
other revenues attributable to City recovered or reallocated which are directly or indirectly the
result of an audit, analysis or consultation performed by Consultant (including but not limited to
base year value audits, administration of tax sharing agreements, tax increment allocation
reviews, county allocation reviews) Consultant 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 Consultant's submittal of evidence that corrections
have been made by the appropriate agency Payment to Consultant shall be made within thirty
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(30) days after City receives its first remittance advice during the fiscal year for which the
correction applies.
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EXHIBIT "C"
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 § 1861)
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
By. �au�
Paula Cone, President
Date
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June 9, 2022