HomeMy WebLinkAbout1998 CON HdL Coren & Cone - Property Tax ServicesErom'HdL COMPANIES
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This Agreement is made and entered into as of the 14th day of July 1998 by
and between the CITY OF NATIONAL CITY , a municipal corporation hereinafter called
CIIY, 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
CDC The Community Development Commission of the City of National
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:
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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
c. A- listing of property tax transfers which occurred since the
prior lien date
d. A listing of parcels that have not changed ownership since
the enactment of Proposition ?CILIA
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.
g. 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 CDC,
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 CDC.
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)
2. A listing of property transfers that have occurred since the last
report.
3. An update of computer program parcel transfer data.
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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 IRAs (to the extent records are
available).
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 CDC'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. DOCUMENTARY TRANSFER TAX
1. Pursuant to the City's authorization, on a monthly basis, IidL
Coren & Cone will review Documentary Transfer Tax remittance
detail and compare all qualifying transfers of ownership by deed to
those for which the City has received payment. To the extent that
remittance detail is available rnisafocations may be recovered for
each of the past three years.
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2. Those transfers which are coded to the City and which have not
resulted in taxes being remitted to the City will be identified
monthly and submit to the City for review and final transmittal to
the appropriate County agency for correction action.
When the taxes are remitted to the City as a result of this audit
review, they will be identified on the County remittance detail. A
copy of •the city's remittance detail will be forwarded to HdL Caren
& Cone so that invoicing related to the corrections can be
submitted to the City for payment.
F. OPTIONAL SERVICES - The following services are available on a time
and materials basis
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.
Redevelopment Financial Services including but not limited to:
a. Tax increment projections
b. Feasibility studies
c. CDC or Project Area cash flows
d. Low and moderate income housing set -aside calculations,
finding and consultations
e. Fiscal impact studies
f. Legislative analysis
g. Redevelopment plan adoption and amendment financial
feasibility studies
G. 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.
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CONSIDERATION
A. CONTRACTOR shall provide the services described in Services - Sections
A, B and D above, for an annual fee of $9,600 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.
C. Contractor shall be paid a fee of 25 percent of the amount of revenue
recovered for Documentary Transfer Tax Revenues as described in Section
E above. The City will pay only for those corrections identified, approved
and corrected on the City's behalf by HdL Caren & Cone.
D. Fees for Optional Services as outlined in Services - Section F above shall be
billed at the following hourly rates:
Principal $135per hour
Senior Associate $100 per hour
Associate $ 85 per hour
Senior Analyst $ 70 per hour
Analyst $ 55 per hour
Hourly rates are exclusive of expenses, which are billed at 1.15 times
actual incurred costs.
E. 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 - $10,000 - $20,000
2. Special Tax Reports $7,500 - $20,000
3. Independent Consultant Reports - $2,500 - $7,500
F. 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
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the salaries of CONTRACTOR's employees, and travel expenses connected
with contacting appropriate county department representatives.
G. 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 CDC maps and zoning map;
B. A copy of reports received by the CITY and CDC annually from the
Auditor -Controller's office detailing Assessed Values (Secured, 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;
I. A Iisting 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;
2. A listing of the CTTY 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
attomey's fees.
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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 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
TERNIINATION
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".
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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 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 CONTRA( -TOR 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.
INSURANCE
The CONTRACTOR, at its sole cost and expense, shall purchase and maintain
throughout the term of this agreeement the following insurance policies:
A. Automobile insurance covering all bodily injury and property damage incurred
during the performance of this Agreement, with a minimum coverage of $500,000
combined single limit per accident. Such automobile insurance shall included non -owned
automobiles.
B. Comprehensive general liability insurance, with minimum limits of $1,000,000
combined single limit per occurrence, covering all bodily injury and property damage
arising out of its operation under this Agreement.
C. Workers' compensations insurance covering all of its employees and volunteers.
D. The aforesaid policies shall constitute primary insurance as to the CITY, its
officers, employees, and volunteers, so that any other policies held by the CITY shall not
contribute to any Loss under said insurance. Said policies shall provide for thirty (30) day
prior written notice to the CITY of cancellation or material change.
E. Said policies, except for the workers' compensation policy, shall name the CITY
and its officers, agents and employees as additional insureds.
F. This agreement shall not take effect until certificate(s) or other sufficient proof
that these insurance provisions have been complied with, are filed with and approved by
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the CITY's Risk Manager. If the CONTRACTOR does not keep all of such insurance
policies in full force and effect at all times during the terms of this Agreement, the CITY
may elect to treat the failure to maintain the requisite insurance as a breach of this
Agreement and terminate the Agreement as provided herein.
G. If required insurance coverage is provided on a "claim made" rather than
occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three
years after expiration of the term (and any extensions) of this Agreement.
H. Any aggregate insurance limits must apply solely to this Agreement.
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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:
CONTRACTOR:
City of National City
1342 National City Boulevard
National City, California 91950
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 NATIONAL CITY
Mayor George H. Waters
r�r �
Cit Clerk erk 1 R. Della
CONTRACTOR:
HdL COREN 8c CONE
A California Corporation
41./.40pAn-y--
APPROVED AS TO FORM:
City Attorney George x_ Eirer, III
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