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HomeMy WebLinkAboutCC Resolution 9760 (Property Tax Services)RESOLUTION NO. 976.0 A RESOLUTION AUTHORIZING THE SIGNING OF AN AGREEMENT FOR PROPERTY TAX SERVICES WITH HdL COREN & CONE THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows: The City Manager and City Clerk are authorized to execute, on behalf of the City of San Rafael, an agreement for property tax services with HdL Coren & Cone 1340 Valley Vista, Suite 200 Diamond Bar, CA 91765 a copy of which is hereby attached and by this reference made a part thereof. In addition, a scope of services to be performed are outlined in the proposal attached hereto; the formal agreement shall include this proposal and shall be subject to the approval of the City Attorney as to form. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City on sixth day of January, 1997, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None resolutions\hdl prop tax.res V 4- JEANNE M. LEONCINI, City Clerk G 9 a'X t AGREEMENT FOR PROPERTY TAX SERVICES This Agreement is made and entered into as of the 6th day of January, 1997 by and between the CITY OF SAN RAFAEL, 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, or to other jurisdictions; and WHEREAS, CONTRACTOR has the programs, equipment, data and personnel required . to deliver the property tax services referenced herein; AGREEMENT NOW, THEREFORE, CITY and CONTRACTOR, for the consideration hereinafter described, mutually agree as follows: 1. DEFINITIONS 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: Special geobases prepared for the City. TRA: Tax Rate Area. COPY 2. PROJECT COORDINATION A. CITY. The City Manager shall be the representative of the CITY for all purposes under this Agreement. The Director of Administrative Services is hereby designated the PROJECT MANAGER for the CITY, and said PROJECT MANAGER shall supervise all aspects of the progress and execution of this Agreement. B. CONTRACTOR. CONTRACTOR shall assign a single PROJECT DIRECTOR to have overall responsibility for the progress and execution of this Agreement for CONTRACTOR. Paula Cone is hereby designated as the PROJECT DIRECTOR for CONTRACTOR. Should circumstances or conditions subsequent to the execution of the Agreement require a substitute PROJECT DIRECTOR for any reason, the CONTRACTOR shall notify the CITY within ten (10) business days of the substitution. 3. DUTIES OF CONTRACTOR CONTRACTOR shall perform the duties and/or services as follows: 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 Geobase 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 XHIA. e. A comparison of property within the CITY and each special geobase 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. 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. 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. 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 the CITY, parcels on the secured Property Tax Roll which are not properly attributed to a CITY 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 the CITY. 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 completion's 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. DOCUMENTARY TRANSFER TAX 1. Pursuant to the CITY's authorization, on a monthly basis, HdL 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 misallocations may be recovered for each of the past three years. 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. 3. 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 CTTY's remittance detail will be forwarded to HdL Coren & 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. 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. g. Redevelopment plan adoption and amendment financial feasibility studies. 4. Establishing the Spreadsheet Program described in C.5 above for the 1995-96 fiscal year. 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. 4. DUTIES OF THE CITY CITY shall perform the duties as follows: A. Current CITY maps and zoning map. B. A copy of reports received by the CITY 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. 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. 5. COMPENSATION A. CONTRACTOR shall provide the services described in Services - Sections 3A, 3B and 3D above, for an annual fee of $14,400 invoiced quarterly. B. CONTRACTOR shall be paid 25 percent of misallocated revenue identified in the audit as described in Services, Section C. CONTRACTOR 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 CONTRACTOR. D. Fees for Optional Services as outlined in Services - Section 3F above shall be billed at the following hourly rates: Principal $135 per 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 3C 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. 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. 6. TERM OF AGREEMENT The term of this Agreement shall be for two years commencing on January 6, 1997 and ending on December 31, 1998. Upon mutual agreement of the parties, and subject to the approval of the City Manager, the term of this Agreement shall be extended for an additional period of two years. 7. TERMINATION A. Discretionary. Either party may terminate this Agreement without cause upon thirty (30) days written notice mailed or personally delivered to the other Pty• B. Cause. Either party may terminate this Agreement for cause upon fifteen (15) days written notice mailed or personally delivered to the other party, and the notified party's failure to cure or correct the cause of the termination, to the reasonable satisfaction of the party giving such notice, within such fifteen (15) day time period. C. Effect of Termination. Upon receipt of notice of termination, neither party shall incur additional obligations under any provision of this Agreement without the prior written consent of the other. D. Return of Documents. Upon termination, any and all CITY documents or materials provided to CONTRACTOR and any and all of CONTRACTOR's documents and materials prepared for or relating to the performance of its duties under this Agreement, shall be delivered to CITY as soon as possible, but not later than thirty (30) days after termination. E. Presentation of Notice. Upon the presentation of such notice, CONTRACTOR may continue to work through the date of termination and 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 of work as previously authorized and satisfactorily performed at the times provided in the preceding section entitled "Consideration". 8. OWNERSHIP OF DOCUMENTS The written documents and materials prepared by the CONTRACTOR in connection with the performance of its duties under this Agreement, shall be the sole property of CITY. CITY may use said property for any purpose, including projects not contemplated by this Agreement. 9. INSPECTION AND AUDIT Upon reasonable notice, CONTRACTOR shall make available to CITY, or its agent, for inspection and audit, all documents and materials maintained by CONTRACTOR in connection with its performance of its duties under this Agreement. CONTRACTOR shall fully cooperate with CITY or its agent in any such audit or inspection. 10. ASSIGNABILITY The parties agree that they shall not assign or transfer any interest in this Agreement nor the performance of any of their respective obligations hereunder, without the prior written consent of the other party, and any attempt to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. 11. INSURANCE A. During the term of this Agreement, CONTRACTOR shall maintain, at no expense to CITY, the following insurance policies: 1. A comprehensive general liability insurance policy in the minimum amount of one million ($1,000,000) dollars per occurrence for death, bodily injury, personal injury, or property damage. 2. An automobile liability (owned, non -owned, and hired vehicles) insurance policy in the minimum amount of one million ($1,000,000) dollars per occurrence. B. The Insurance coverage required of the CONTRACTOR by section 11.A., shall also meet the following requirements: 1. The insurance shall be primary with respect to any insurance or coverage maintained by CITY and shall not call upon CITY's insurance or coverage for any contribution. 2. The insurance policies shall be endorsed for contractual liability and personal injury. 3. The insurance policies shall be specifically endorsed to include the CITY, its officers, agents, employees, and volunteers, as additionally named insureds under the policies. 4. CONTRACTOR shall provide to PROJECT MANAGER, (a) Certificates of Insurance evidencing the insurance coverage required herein, and (b) specific endorsements naming CITY, its officers, agents, employees, and volunteers, as additional insureds under the policies. 5. The insurance policies shall provide that the insurance carrier shall not cancel, terminate or otherwise modify the terms and conditions of said insurance policies except upon thirty (30) days written notice to CITY's PROJECT MANAGER. 6. If the insurance is written on a Claims Made Form, then, following termination of this Agreement, said insurance coverage shall survive for a period of not less that five years. 7. The insurance policies shall provide for a retroactive date of placement coinciding with the effective date of this Agreement. 8. The insurance shall be approved as to form and sufficiency by PROJECT MANAGER and the City Attorney. C. If it employs any person, CONTRACTOR shall maintain worker's compensation and employer's liability insurance, as required by the State Labor Code and other applicable laws and regulations, and as necessary to protect both CONTRACTOR and CITY against all liability for injuries to CONTRACTOR's officers and employees. D. Any deductibles or self-insured retention's in CONTRACTOR's insurance policies must be declared to and approved by the PROJECT MANAGER and the City Attorney. At CITY's option, the deductibles or self-insured retention's with respect to CITY shall be reduced or eliminated to C] TY's satisfaction, or CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claims administration, attorney's fees and defense expenses. 12. INDEMNIFICATION CONTRACTOR shall indemnify, release, defend and hold harmless CITY, its officers, agents, employees, and volunteers, against any claim, demand, suit, judgment, loss, liability or expense of any kind, including attorney's fees and administrative costs, arising out of or resulting in any way, in whole or in part, from any acts or omissions, intentional or negligent, of CONTRACTOR or CONTRACTOR's officers, agents and employees in the performance of their duties and obligations under this Agreement. 13. NONDISCRIMINATION CONTRACTOR shall not discriminate, in any way, against any person on the basis of age, sex, race, color, religion, ancestry, national origin or disability in connection with or related to the performance of its duties and obligations under this Agreement. 14. GOVERNING LAW AND COMPLIANCE WITH ALL LAWS 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. CONTRACTOR shall observe and comply with all applicable federal, state and local laws, ordinances, codes and regulations, in the performance of its duties and obligations under this Agreement. CONTRACTOR shall perform all services under this Agreement in accordance with these laws, ordinances, codes and regulations. CONTRACTOR shall release, defend, indemnify and hold harmless CITY, its officers, agents and employees from any and all damages, liabilities, penalties, fines and all other consequences from any noncompliance or violation of any laws, ordinances, codes or regulations. 15. NO THIRD PARTY BENEFICIARIES CITY and CONTRACTOR do not intend, by any provision of this Agreement, to create in any third party, any benefit or right owned by one party, under the terms and conditions of this Agreement, to the other party. 16. NOTICES All notices and other communications required or permitted to be given under this Agreement, including any notice of change of address, shall be in writing and given by personal delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as follows: CITY: Ken Nordhoff (Project Manager) CITY OF SAN RAFAEL 1400 Fifth Avenue P. O. Box 151560 San Rafael, CA 94915-1560 CONTRACTOR: Paula Cone, Project Director HdL COREN & CONE 1340 Valley Vista Drive, Suite 200 Diamond Bar, CA 91765 17. INDEPENDENT CONTRACTOR For the purposes, and for the duration, of this Agreement, CONTRACTOR, its officers, agents and employees shall act in the capacity of an Independent Contractor, and not as employees of the CITY. CONTRACTOR and CITY expressly intend and agree that the status of CONTRACTOR, its officers, agents and employees be that of an Independent Contractor and not that of an employee of CITY. 18. ENTIRE AGREEMENT - AMENDMENTS A. The terms and conditions of this Agreement, all exhibits attached, and all documents expressly incorporated by reference, represent the entire Agreement of the parties with respect to the subject matter of this Agreement. B. This written Agreement shall supersede any and all prior agreements, oral or written, regarding the subject matter between the CONTRACTOR and the CITY. C. No other agreement, promise or statement, written or oral, relating to the subject matter of this Agreement, shall be valid or binding, except by way of a written amendment to this Agreement. D. The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by the CONTRACTOR and the CITY. E. If any conflicts arise between the terms and conditions of this Agreement, and the terms and conditions of the attached exhibits or -the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 19. SET-OFF AGAINST DEBTS CONTRACTOR agrees that CITY may deduct from any payment due to CONTRACTOR under this Agreement, any monies which CONTRACTOR owes CITY under any ordinance, agreement, contract or resolution for any unpaid taxes, fees, licenses, assessments, unpaid checks or other amounts. 20. WAIVERS The waiver by either party of any breach or violation of any term, covenant or condition of this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a, waiver of any other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent acceptance by either party of any fee, performance, or other consideration which may become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance or regulation. 21. COSTS AND ATTORNEY'S FEES The prevailing party in any action brought to enforce the terms and conditions of this Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs (including claims administration) and attorney's fees expended in connection with such action. 22. CITY BUSINESS LICENSE / OTHER TAXES CONTRACTOR shall obtain and maintain during the duration of this Agreement, a CITY business license as required by the San Rafael Municipal Code. CONTRACTOR shall pay any and all state and federal taxes and any other applicable taxes. CONTRACTOR's taxpayer identification number is 95-4398586, and CONTRACTOR certifies under penalty of perjury that said taxpayer identification number is correct. 23. 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. 24. PROFESSIONAL STANDARDS CONTRACTOR shall maintain or exceed the level of competency presently maintained by other similar practitioners in the State of California, for professional and technical soundness, accuracy and adequacy of all work, advice, and materials furnished under this Agreement. 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 CITY OF SAN RAFAEL By: City Manager ATTEST: Clerk APP ORM: Cify Attorni // CONTRACTOR HdL COREN & CONE, a California Corporation By: Lloy/d de Llamas, Secretary