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OCT 2 8 1997
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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
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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
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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
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