SR-01-22-2013-3DID
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City of City Council Report
Santa Monica
City Council Meeting: January 22, 2013
Agenda Item: 3`D
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Director of Finance
Subject: Property Tax and Audit Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a five -year professional services contract with HdL Coren and Cone, a
California -based company, in an amount not to exceed $228,500 for property tax an
audit services.
Executive Summary
Staff requires property tax information and audit services, including audits to ensure the
City is receiving all property tax revenues due; property tax revenue trend reports to
forecast City property tax revenues; bond disclosure report updates; and other
consulting services as needed. Staff recommends HdL Coren and Cone as the best
firm to provide these services to the City.
Background
Since 1992, the City has contracted for property tax auditing services, fiscal consultant
reports associated with tax allocation bonds issued by the former Redevelopment
Agency, and property tax services. In 1997, these services were expanded to include
audits of secured and unsecured property tax rolls. The audits resulted in the discovery
of misallocated property taxes primarily affecting the Earthquake Recovery
Redevelopment Project Area. These financial services are critical to uncover and
correct errors in the distribution of property tax payments to the City.
Discussion
On September 28, 2012, staff issued a Request for Qualifications (RFQ) for property tax
auditing and other related services and posted it on the City's online bidding system and
the Successor Agency Website. The RFQ was also e- mailed to the following three
firms on September 28, 2012: HdL Coren and Cone, MuniServices, and Keyser Marston
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Associates. A subsequent addendum to the RFQ was issued on October 3, 2012
providing additional clarification on services being requested by the Successor Agency
and the City. This addendum was posted on Planet Bids and the Successor Agency
Website on October 3, 2010 and was e- mailed to each of the aforementioned firms.
The deadline to respond to the RFQ was October 8, 2012, HdL Coren and Cone and
Keyser Marston Associates responded to the RFQ.
In compliance with SMMC 2.24.070, a selection committee comprised of Finance and
Housing and Economic Development staff evaluated the proposals based on various
criteria including but not limited to the applicability of the proponent's experience as it
relates to the RFQ's scope of work, capacity and feasibility of the respondent to
accomplish all elements of the scope of services, and available resources of the
respondent to accomplish all elements of the scope of services. Based on proposals
and interviews with Keyser Marston Associates and HdL Coren and Cone conducted by
staff on October 22, 2012, HdL Coren & Cone was found to be the firm that could best
provide the broad range of required services with experienced staff at a competitive cost
to the City In particular, HdL Coren and Cone met the RFQ criteria through their
experience, extensive staff capacity, and available resources. HdL has been
successfully providing the scope of services requested by the City and the former
Redevelopment Agency for 16 years and providing staff with access to a property tax
data base that is updated on a quarterly basis and contains 20 years' worth of property
tax data, allowing staff to easily retrieve information as needed.
As part of their property tax service, HdL Coren and Cone would prepare a preliminary
and final property tax report for all City tax districts and the former redevelopment
project areas and present the data to the City and Agency. They would assist the City
in forecasting property tax revenues and the City's share of residual payments,
calculating statutory pass- through payments to taxing entities, preparing fiscal
consultant reports, and updating bond disclosure schedules and bond reports.
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Financial Impacts & Budget Actions
The contract to be awarded to HdL Coren and Cone is for an amount not to exceed
$228,500 for a five -year term. Funds in the amount of $24,375 are available in the FY
2012 -13 budget in division 01224. The contract will be charged to account
01224.555060. Budget authority for subsequent years will be requested in each budget
cycle for Council approval. Future funding is contingent upon Council approval.
Prepared by: Elsa Trujillo, Senior Development Analyst
Approved:
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Gigi Decavalles- Hughes
Director of Finance
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Forwarded to Council:
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Rod Gould
City Manager
Reference Contract No.
9686 (CCS).