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SR-6C (53) tRt fr-fficf1t f# B?--/ {L 7 tiC OCT 2 8 1997 FD RB DC/g \flnance\treas\share\srhdl Council Meeting October 28, 1997 Santa Monica. Callforma TO Mayor and City Council FROM City Staff SUBJECT Recommendation to Authorrze the City Manager to Negotiate and Execute a Professional Services Contract with the Consultmg Firm HdL Coren & Cone to Conduct Property Tax Auditing and Monitoring Services for the City and the Redevelopment Agency Introd uctlon ThiS report recommends that the City Council authorize the City Manager to negotiate and execute a contract with the consulting firm HdL Coren & Cone to provide property tax audit and Information reportmg services for one year with an option to renew for two additional years Background The City has contracted for property tax audits smce 1992 The property tax audits have recovered approximately $300,000 In new revenues based on City or RDA parcels that were Improperly coded on the County Property Tax Roll The property tax audit and information reporting needs of the City and the Redevelopment Agency have expanded due to the creation of the Earthquake Recovery Project Area and the n umber of assessed value appeals filed by property owners Due to the expanded scope of services required. staff Issued a Request for Proposal to firms With expertise In 1 (OC OCT 2 8 1997 these areas The three firms requested to submit proposals for expanded property tax audit and mformatlon reporting were Munrclpal Resource Consultants (MRC), Keyser Marston (KM), and Hd L Coren & Cone (HdL) The proposals were reviewed by a selection committee which rncluded Resource Management and Fmance Department staff. who also Interviewed each firm The firms were evaluated on the basIs of their ability to provide the services, experrence In similar work, approach to accompllshrng the work plan. and fee levels A comparison of fees IS listed below HdL 25% of net revenue recovered for the City and/or RDA resulting from audit services for the year of recovery only For property tax mformatlon services - $14.400 annually MRC 25% of net revenues recovered. plus 25% of on-going revenue for the next three years from the corrected parcels For property tax Information services - $7,500 annually KM One-time fee for data base verrflcatlon of $19.800 For property tax audIt and information services - $16,000 annually After a full evaluation of all candidates. staff has concluded that HdL would best be able to proVide the expanded scope of services required by the City HdL demonstrated a unique understanding of the City's needs and the capabIlity and approach necessary to .., provide the entire scope of services requIred HdL's proposal offered certain services absent from the other proposals. such as City staff having access to HdL's data base of City parcels along with training on how to use the data base Staff contacted other HdL chent cities and received strong favorable recommendations In each case Other ServIces - Subsequent to the onglnal Interviews, the Resource Management Department Identified certain other urgent and time-limIted property tax-related services speCifically related to the Earthquake Recovery Redevelopment Project Area, but outSide the scope of services onglnally Identified In the Request for Proposal The cost of those services, $28.000, IS Included In the recommended award Budget/Financial Impact Funds for thiS purpose are currently budgeted In the Resource Management and Finance Departments Recommendation Staff recommends that the City Council authorize the City Manager to negotIate and execute a contract with HdL Coren & Cone to proVide Property Tax audltrng and information reporting services for one year with an option to renew for two additional years 3 Prepared by Mike Denms, Director of Finance-City Controller Jeff Mathieu, Resource Management DIrector Ralph Bursey, City Treasurer-Revenue Manager David Carr. Assistant City Treasurer Klrt Lyle. Administrative Services Officer 4 -~-