SR-200-004 (5)
C:\Documents and Settings\laserfiche\Desktop\edoc conversion\export\12736.doc
Council Meeting: September 24, 2002 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Professional Services Contract with HdL Coren & Cone to Conduct Property
Tax Auditing and Tax related Services to the City and Redevelopment
Agency
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate and
execute a contract with the consulting firm of HdL Coren & Cone to provide property tax
audit and property tax related services for the next three years.
BACKGROUND
The City has contracted for property tax audits and information services since 1992. The
property tax audits have resulted in recovery of tax revenues to the City and the
Redevelopment Agency from improperly coded parcels on the County Property Tax Roll.
In 1997, these services were expanded to include other property related tax services for
both the City and the Redevelopment Agency as the Agency created the Earthquake
Recovery Project Area. Both the Finance and Resource Management departments require
these services in order to monitor and forecast both property tax
and tax increment revenues for current and future fiscal years for the City and the
Redevelopment Agency.
DISCUSSION
Due to completion of the previous contract with HdL Coren and Cone, on August 5, 2002,
the City and Redevelopment Agency released a Request for Qualifications (RFQ)
1
for property tax auditing and property tax information services. The three firms that
responded to the RFQ were HdL Coren & Cone, MBIA Muniservices and Fraser and
Associates. A selection committee that included Finance and Resource Management staff
reviewed the proposals. The firms were evaluated on the following criteria: 1) technical
competence of the firm and its understanding of the scope of services; 2) experience in
similar work; 3) staff capacity and 4) fee schedule. HdL Coren & Cone was unanimously
recommended as the firm, who could best provide the services, was experienced in similar
work plans and whose fee schedule, taking into account contingent fees, was most
competitive.
HdL Coren & Cone has provided property tax audit and information services for both the
City and Agency from December 1997 to June 2002. During this time, the firm has
recovered nearly $345,000 in combined City and Agency misallocated tax revenues from
the County. HdL Coren and Cone has also produced the fiscal consultant reports for the
Agency’s 1999 Earthquake Recovery Project Area Tax Allocation bond issue and the 2002
Ocean Park Redevelopment Project Areas Tax Allocation bond issue.
The terms of the contract provide for an initial three-year term with the City having the
option of renewing the contract for two additional one-year periods. Once under contract
HdL Coren & Cone will provide the following services; Annual Property Tax Reports for all
tax districts including the four redevelopment project areas, Property Tax Audit Report,
assessment appeal information, reconciliation of the Annual Auditor-Controller Assessed
Valuations Report with the tax rolls, and various other services in accordance with the
scope of services as outlined in the proposed contract.
2
Additionally, the consultant will update the City’s existing database for all City parcels on a
quarterly basis and maintain the existing program for statutory pass-through payments to
other taxing entities
BUDGET/FINANCAL IMPACT
The amount of the contract is $18,250 per year. Two-thirds will be the responsibility of the
Redevelopment Agency, and the City will be responsible for the other one-third. For FY
2002/03, funds are available in account number 01264.55506 to cover the FY 2002/03
Redevelopment Agency portion of $12,173 and in account number 01224.555060 to cover
the City portion of $6,077. Therefore, no budget changes are required.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to enter into a
Professional Services Contract with HdL Coren & Cone for $18,250 per year, plus
contingent fees based on recovery of property tax revenues through audits and recovery of
transfer tax revenues, for three years with two one-year renewal options.
Prepared by: Mike Dennis, Director of Finance
Ralph Bursey, Treasurer
Jeff Mathieu, Director of Resource Management
Tina Rodriguez, Redevelopment Administrator
Ryan Moore, Senior Administrative Analyst
3