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HomeMy WebLinkAboutAGENDA REPORT 1995 1004 CC REG ITEM 08ITO: FROM: DATE: RE: BACKGROUND Agenda Report City of Moorpark The Honorable City Council Richard Hare, Deputy City September 22, 1995 (CC Mtg Consider HdL Proposal for Property Tax Audit services ITEM • �. The City and the Agency budgeted jointly $16,000 for a property tax audit and analysis. Over the last year, staff has been working with HdL to interest another city in participation in the property tax audit and analysis to reduce the costs to us. HdL was originally selected for this work because of the previous work they did for the City on our sales tax analysis, and so that both the property tax and sales tax data can be compiled on the same properties using HdL's integrated database. HdL had originally indicated a cost of $14,200 for the project which was within our $16,000 budget for this project. The City of Fillmore is also engaging HdL for similar services. This results in a significant savings to the City because some of the start -up expenses and programming can be split between the City of Moorpark and Fillmore. With Fillmore's participation, the City will only be charged $7,100 for the first year's audit start -up, programming and analysis. HdL will also convert and load without additional charge our business registration database so that business registration, sales tax and property tax information can be accessed simultaneously. Recommendation: Staff recommends approval of the HdL proposal ($7,100 50% 01.4.170.642, 50% 01.4.117.642) and authorize the City Manager to engage HdL for property tax audit services. C: \WPDOCS \CC.REP \HDL.RPT W5 9s -6 9 SEP -22 -95 FRI 15;54 September 21, 1995 Mr, Richard Hare, Deputy City Manager City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 Dear Mr, Hare, P. 02 Revenue Mnnagemcnt for Local Government, Hintlerliter, de Llamas & Associates Hdi, Comn & Cone Thank you for your recent inquiry regarding our Property Tax Management Service. Enclosed is a property tax management proposal as well as a standard agrreemeht for our services. Please feel free to contact me if additional clarification of the enclosed information is necessary. One of the features of our service is the installation of your database on computers in your offices, Providing your data on computers at your site, allows staff to access property data and also provides a means of assembling parcels for review and analysis as well as the ability to print mailing labels. Our property tax service is based on the fact that it is not practical for most cities or special districts to invest in the staff, training and start-up costs to fully monitor parcel activity, property reassessment and tax levies. Our service analyzes both the city and redevelopment project areas to identify and correct errors and omissions that negatively impact revenues to both entities. Identification of property ownership transfers and completed construction project tracking for reassessments are also provided. A variety of reports detailing revenue trends for budgeting purposes, top taxpayers and top property owner listings, multiple ownerships, non -owner occupied parcels and geobased characteristics and analyses for planning and economic development use are furnished. The cost of our property tax management service is based on the number of city parcels plus a formula-based percentage of revenue recovered in the initial audit. Ventura County has one of the most expensive databases in the State, we have purchased the 1994 -95 and 1995 -96 secured rolls at a combined cost of $22,500. The unsecured roll which, in our experience in other counties, contains more frequent errors has still not been offered for purchase. We have been told that the only way we can gain access to that roll is by viewing the hard copy data in the Assessor's Off1ce. We are continuing to pursue this roll in an automated format similar to the secured roll that we have purchased. What I would hope in offering our service to cities in Ventura County is to be able to recover at least one years' data costs and the programming costs to be able to assemble the data into our format, The programming costs usually run between $2,500 and $3,000 for each new county we acquire, FillmoreA� has feixprerstsed an interest in our services to track Properties damaged by last year's 94WVJ Fq JKJa5BM4�#hp RVAV 111N2a+,oNbg9 %,� tJJefi3 SEP 22 '95 15:5B PAGE.002 SEP -22 -95 FRI 15:55 P. 03 fee would be $7,100. This would include all analysis, audit, management reports and the installation of your property data on a City computer, 'This installed program will interface with the Hinderliter deLlamas and Associates Sales Tax program and, if the City provides us with the Business License tape sent annually to the State Department of Finance, will link to that database as well, The linking of these three database will assist the city in locating businesses reporting sales tax which are not licensed in the City. To date I have not received any word from Fillmore that they are proceeding to engage HdL Coren & Cone for property tax services. Enclosed are samples of some of the various hard copy reports that we generate as a part of the property tax program, our scope of services, and reference list of our representative clients. Sincerely, 4vaj�07� Paula Cone 0() SEP 22 '95 15:59 PAGE.003 ** TX CONFIRMATION REPORT ** DATE TIME TO /FROM 9/22 15:42 4993655 AS OF SEP 22 '95 15:42 CITY OF MOORPARK MODE MIN /SEC PGS EC - -S 00 "46 01 City Of Moorpark Community Services Department ADDMON & DELEMN VOI (Page 2) PAGE. 01 CMD# STATUS TEAM NAME: DATE: LEAGUE:__ _ NIGHT: *INFORMED CONSENT AND PXiEASE* 90 OK L the undersigned. recognize that participation in the referenced activity is strictly vol=tory and that such participation does not in any manner imply that I em acting in the ommse and scope of oflscial City ofMeorp*A brraiw4w; nor doos it in any manner estahliah or imply an employer - employes or an agency relationship with the City of Moorpark. I, the undersigned, and in the event the undersigned is under 18 years of age, the undersigned's patents or guardian, in consider- ation of the reqwst and permission to participate in the referenced activity, hereby asS+=7i* full responsibility for all risk of injury or loss which may result from my participation in this activity and hereby AGM TO DEFEND, 1ND1 Y, HOLD HARKS_ �► RE F'.AfiE AND FOREVER DISCHARGE the City of MomparkC, its respective officers„ agents and employees, past and present, from any and all acts of negligence and all claims and deranuds whatsoever, which the undersigned, any tbW person, or any persons acting under their behalf. have or may ha" against the City of Moorpark, or its respective officers, agents or employ. ees, past and present by reason of any accident. jauem injury to or death of any person or persona, or damage to or loss or destruction of any property arising or resulting directly or in&vctly from participation in the r*lemced wtivity and occurring during said participation, or any time subsequent thereto. The terms of this release will serve as a release and assumption of risk for my heir$, executors and administrators and for all of my family members. I agree and aeknowlodge that core* activities may be of a hazardous nature and/or iacluds physical and/or strenmom exercise or activity, and, underatanding this, I state that to the best of my knowledge, I have no medical, physical, mental or emotional health condition which would hinder or prevent my active participation in the referenced activity. PLEASE NOTE: The City of boorpark strongly recommends that each participant have some 'type of accident Medical insurance for his/her own protection. SIGNATURE OF PARTICIPANTS Priut Name Signature 1. 2. 4. b ADDITION/DELETION RULES; 1. If a player is deleted from a team, the player may not return for #hQm� + »�oN .,r SEP -22 -95 FRI 13:49 P. 03 This Agreement is made and entered into as of the day of 1995, by and between the CITY OF MOORPARK, 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, econornic 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 The Moorpark Revelopment Agency 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 areas) of the City TRA: Tax Rate Area SERVICES The CONTRACTOR shall perform the following services: A. ANNUALLY, after the Property Tax Roll is available; 000(;x%4 SEP 22 '95 13:54 PAGE.003 SEP -22 -95 FRI 13:50 P.04 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 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 XDIA 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 CTTY'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 N 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) 2. A listing of property transfers that have occurred since the last report. 3. An update of computer program parcel transfer data. (AX)O U 3 SEP 22 '95 13:54 PAGE.004 SEP -22 -95 FRI 13:51 P.05 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. Z. 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. 5• CONTRACTOR would annually maintain and update Spreadsheet Program developed by CONTRACTOR under previous contract to determine the proportionate share of increment due each taxing agency pursuant to the Tax Sharing and Capital Facility Agreements with the Community project Area. b. 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 3 00001A SEP 22 '95 13:55 PAGE.005 SEP -22 -95 FRI 13:51 P.06 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 city'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 SERVICFS - 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. F. BOND SERVICES - Bond services ate available for a fixed fee, including 1. Tax Allocation Bonds 'fiscal consultant reports 2. Mello -Roos Special Tax studies O000�5 SEP 22 '95 13:55 PAGE.006 SEP -22 -95 FRI 13;52 P.Q7 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 $7,100 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 shalt 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 15 percent of the amount of revenue recovered for Documentary Transfer Tax Revenues as described in Section B above. The City will pay only for those corrections identified, approved and corrected on the City's behalf by HdL Coren & Cone. D. Fees for Optional Services as outlined in Services - Section F 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, D. Frees 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: I . Tax Allocation Bonds - $10,000 - $20,000 2. Special Tax Reports - $7,500 - $20,000 5 SEP 22 '95 13:56 PAGE.007 SEP -22 -95 FRI 13:52 3, Independent Consultant Reports - $2,500 - $7,500 B. 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. CITY MATERIALS AND SUPPORT CITY agrees to provide the following information. A. Current CITY and Agency maps and zoning map; $, A copy of reports received by the CITY and Agency 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 (AM 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, CONTRAC'T'OR 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 CON'TRACT'OR without the written consent of CTTY. 000057 L SEP 22 '95 13:57 PAGE.908 SEP -22 -95 FRI 13:53 In the event a Agreement, the attorney's fees. WIN ATTORNEY'S FEES legal action is commenced to enforce any of the provisions of this Prevailing party shall be entitled to recover its costs and reasonable 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. 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 (AA) U SS SEP 22 '95 13:57 PAGE.009 SEP -22 -95 FRI 13:54 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 pteceding section entitled "Consideration ". MEMNMCAITION 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 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. (AML S9 SEP 22 '95 13:58 PAGE.010 SEP -22 -95 FRI 13:54 P. 11 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 Moorpark 799 Moorpark Avenue Moorpark, CA 93021 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 MOORPARK Mayor City Clerk CONTRACTOR: HdL COREN & CONE A California Corporation APPROVED AS TO FORM: City Attorney E SEP 22 '95 13 =58 PAGE. 011