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HomeMy WebLinkAboutCDC/1999-52 I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. CDC 1999-52 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APROVING AN AGREEMENT, AND AUTHORIZING EXECUTION THEREOF, WITH HDL COREN & CONE, IN ASSOCIATION WITH CITY ASSOCIATES, TO PERFORM PROPERTY TAX AUDITS AND MALAK I ANALYSIS FOR THE SAN BERNARDINO REDEVELOPMENT AGENCY. WHEREAS, the Community Development Commission ("Commission") desires to enter to an agreement with Hdl Coren & Cone, in association with City Associates, to perform property tax audits and Malaki analysis for the San Bernardino Redevelopment Agency. NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: Section 1. The Commission hereby approves and authorizes the Chairperson of the Commission to execute an agreement with Hdl Coren & Cone, in association with City Associates, to perform property tax audits and Malaki analysis for the San Bernardino Redevelopment Agency, as attached hereto. Section 2. This Resolution shall take effect upon the date of its adoption. II II II II II II 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 CDC 1999-52 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN AGREEMENT, AND AUTHORIZING EXECUTION THEREOF, WITH HDL COREN & CONE, IN ASSOCIATION WITH CITY ASSOCIATES, TO PERFORM PROPERTY TAX AUDITS AND MALAK I ANALYSIS FOR THE SAN BERNARDINO REDEVELOPMENT AGENCY. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a joint regular meeting thereof, held on the 20thday of December, 1999. by the following vote, to wit: Commission Members Ayes Nays Abstain Absent ESTRADA x LIEN x x MCGINNIS SCHNETZ x SUAREZ x ANDERSON x MILLER The foregoing Resolution is hereby approved thi~/.5fcray ofDecemb~f999. /) r \'j/thc4r[ \!l / J l.t eft 'c Norine Miller Vice Chairman 28 By: . 27 Agency Counsel , . CDe 1999-52 AGREEMENT FOR PROFESSIONAL SERVICES Agreement Number EDA THIS AGREEMENT made and entered into this 20th day of December, 1999, by the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public agency ("Agency"), and Hdl Coren & Cone, in association with City Associates ("Consultant"). RECITAL 1. PURPOSE The purpose of this Agreement is the allow the Agency to procure the services of a qualified Consultant to provide to the Agency property tax audit and MaIaki analysis services. TERMS AND CONDITIONS 2. MISSION The Agency hereby retains the Consuhant in the capacity of Consultant for' provision of services described in Exhibit "A" (the "Scope of Services"), attached hereto and incorporated herein by reference. Consultant hereby accepts such responsibilities as described herein. 3. TERMS a) This Agreement shall commence as the day and year first shown above and shall remain in full force and effect until such time as all work as described in the Scope of Services has been completed in the time frame indicated in Exhibit "A", unless terminated sooner for the convenience of either party as provided in Section 24 herein. b) The Consultant shall complete all work as described in the Scope of Services and promptly report all findings to the Agency, along with recommendations to the San Bernardino County Assessor for corrective actions as necessary. 4. CONSULTANT RESPONSIBILITIES Upon the request of the Executive Director, or designee, the Consultant shall perform each element of the work described in the Scope of Services. Consultant commits the principal personnel as listed in Exhibit "A" to the Scope of Service for its duration. -1- CDC 1999-52 5. REPLACEMENT OF NAME PERSONNEL It has been determined that the individual(s) named in this Agreement is (are) necessary for the successful performance of this Agreement. No diversion or replacement of this (these) individual(s) shall be made by the Consultant without the written consent of the Executive Director or designee. 6. RELEASE OF NEWS INFORMATION No news release, including photographs, public announcements or confirmation of same, of any part of the subject matter of this Agreement or any phase of any program hereunder shall be made without prior written approval of the Executive Director or designee. 7. CONFIDENTIALITY OF REPORTS Consultant shall keep confidential all reports, information and data received, prepared or assembled pursuant to performance hereunder and that the Agency designates as confidential. Such information shall not be made available to any person, firm, corporation or entity without the prior written consent of the Executive Director or designee. 8. COMPENSATION The maximum compensation for services, including all Consultant's costs and expenses, shall be as outlined in Exhibit "A". All fees are on a contingency basis as follows: a) Audit of the project areas will be performed for a fee of25% of the Net Revenues recovered for the Agency in three (3) future years beginning with the first year in which the correction was made. ''Net Revenues" means revenues actually received by the Agency after deductions for the City of San Bernardino's share of property tax revenues derived from parcels shifted from the City to the Agency, and net of tax-sharing amounts. b) For MaIaki adjustments the fee is based on increases in revenues due to the adjustments in future years as follows: First Year 30% Second Year 25% Third Year 20% Fourth Year 10% -2- CDC 1999-52 Consultant shall provide an itemized invoice to the Agency. Said compensation shall be considered full and complete compensation for Consultant's costs associated with the services provided hereunder. Consultant shall be paid in accordance with the Agency's standard accounts payable system. Invoices shall be approved by the Executive Director or designee. 9. USE OF FUNDS Any funds paid to Consultant shall be used solely for the purposes set forth in Paragraph 1 of this Agreement and in accordance with Exhibit "A". Consultant shall remain in compliance with all state, federal and local laws prior to receipt of any compensation hereunder. This includes, but is not limited to, all laws and regulations relative to the form of organization, local business licenses and any laws and regulation specific to the business and activity carried out by the Consultant. Compensation shall not be made to the Consultant, which is not operating in compliance with all applicable laws. Compensation may be subsequently paid, at the direction of the Executive Director or designee, when compliance is achieved, provided that said amount is included in Section 8 of this Agreement. 10. ACCOUNTING/AUDIT Financial and other records applicable shall be maintained by the Consultant in accordance with Generally Accepted Accounting Principles, and in a manner which permits the Agency to trace financial transactions to source documentation. All books and records of the Consultant are to be kept open for inspection at any time during the business day by the Agency, its officers or agents. Financial records, supporting documents, statistical records, and all other records pertaining to this Agreement shall be retained by the Consultant until such time as any and all compensation has been paid to the Consultant, and in the event of litigation, claim or audit, the records shall be retained until all litigation, claim or audit finding involving the records have been fully resolved. 11. NONDISCRIMINATION. MONITORING AND REPORTING PROGRAM PERFORMANCE Consultant shall not discriminate because of race, color, national origin, creed, religion, sex, marital status or physical handicap. At the request ofthe Executive Director or designee, the Consultant shall submit written reports to the Executive Director or designee. Failure to provide such reports may prevent payment of request for compensation, and may justify the temporary withholding as provided herein. Agency reserves the right to waive such breach, without prejudice to any other of is rights hereunder, upon a finding by the Executive Director or designee that such failure was due -3- CDC 1999-52 to extraordinary circumstances and that such breach has been timely cured without prejudice to the Agency. 12. CONFLICT OF INTEREST Consultant shall maintain a code or standard of conduct which shall govern the performance of its officers, employees or agents. Consultant's officers, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value for work completed under the Scope of Services. To the extent permissible by state laws, rules and regulations, the standards adopted by the Consultant shall provide for penalties, sanctions or other disciplinary actions to be applied for violations of such standards by either the Consultant's officers, employees or agents. 13. AGENCY SUPPORT The Agency shall provide the Consultant with any documentation, records, reports, statistics or other data or information pertinent to the Scope of Services, which are reasonably available to the Agency. 14. INDEPENDENT CONTRACTOR Consultant shall perform each element of the work set forth in the Scope of Services as an independent contractor and shall not be considered an employee of the Agency. This Agreement is by and between Consultant and Agency, and is not intended, and shall not be construed, to create the relationship or agent, servant, employee, partnership, joint venture, or association, between Agency and Consultant. 15. SUCCESSOR AND ASSIGNMENT The services as contained herein are to be rendered by Consultant whose name is as appears first above written and said Consultant shall not assign nor transfer any interest in this Agreement without the prior written consent of Agency. 16. INDEMNIFICA nON Consultant agrees to indemnifY, defend and save harmless Agency, its agents, officers and employees from and against any and all liability, expense, including defense costs and legal fees, and claims for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury or property damage arising from or connected with Consultant's operations, or its services hereunder, including any workers' compensation suit, liability or expense, arising from or connected with the services performed by or on behalf of the Consultant by any person pursuant to this Agreement. The costs, salary and expenses of the Agency's legal counsel in enforcing this Agreement on behalf of the Agency shall be considered as "legal fees" for the purpose of this Section. -4- CDC 1999-52 17. INSURANCE Without limiting Consultant's indemnification of Agency, Consultant shall provide and maintain at its own expense during the term of this Agreement the following program(s) of insurance covering its operating hereunder. Comprehensive General and Automobile Liability Insurance. Consultant shall obtain general liability insurance on a per occurrence basis with a combined single limit of one million dollars ($1,000,000); and automobile liability insurance for owned, hired and non-owned vehicles on a per occurrence basis with a combined single limits of one million dollars ($1,000,000). Additional insured endorsements are required for general and automobile liability policy coverage. Other requirements and acceptable proof of insurance: 1. All insurance coverage must be maintained throughout the duration of this Agreement. 2. Insurance companies must have an A.M. Best Rating ofB+VII or better. 3. Acceptable proof of insurance: a) ACCORD Certificate of Insurance listing all coverage, limits, deductible and insurers; and blanket endorsement for all applicable coverage if agent has authority to issue it; or b) Binders of insurance for all coverage. Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements and a corresponding Certificate ofInsurance listing all insurers and coverage must be submitted to the Agency. Insurance binders are only valid for 30 days and may need to be reissued if the policy endorsements are still pending. Binders may be issued for a maximum of three 30 day periods. Consultant shall furnish certified copies of all policies and endorsements to the Agency, evidencing the insurance coverage required five business days prior to the commencement ofperfonnance of Services hereunder, which certificates shall provide that such insurance shall not be terminated or expire without 30 days prior written notice to the Agency, and shall maintain such insurance from the time Consultant commences performance of Services hereunder, until the completion of such services. All policies, with respect to the insurance coverage required above, shall contain additional insured endorsements naming the Agency, and its -5- CDC 1999-52 officers, employee, agents and volunteers as additional name insured, with respect to liabilities arising out of the performance of Services hereunder. 18. COMPLIANCE WITH LAWS The parties agree to be bound by applicable federal, state and local laws, regulations and directives as they pertain to the performance of this Agreement. 19. SEVERABILITY In the event that any provision herein contained is held to be invalid, void or illegal by any court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall in no way affect, impair or invalidate any other provision contained herein. If any such provision srnill be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law. 20. INTERPRETATION No provision of this Agreement is to be interpreted for or against either party because that party or that party's legal representative drafted such provision, but this Agreement is to be construed as ifit were drafted by both parties hereto. 21. ENTIRE AGREEMENT This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the retention of Consultant by Agency and contains all the covenants and agreements between the parties with respect to such retention. 22. WAIVER No breach of any provision hereof can be waived unless in writing. Waiver of anyone breach of any provision shall not be deemed to be a waiver of any other breach of the same or any other provision hereof. 23. CONTRACT EVALUATION AND REVIEW The ongoing assessment and monitoring of this Agreement is the responsibility of the Executive Director or designee. 24. TERMINATION This Agreement may be terminated for the convenience of either party by giving written notice at least thirty (30) days prior to the effective termination date pursuant to Section 3 (a), terms herein. -6- CDC 1999-52 25. NOTICE Notices, herein shall be presented in person or by certified or registered u.s. mail, as follows: To Consultant: Hdl Coren & Cone 1340 Valley Vista Drive Suite 200 Diamond Bar, California 91765 To Agency: Executive Director San Bernardino Redevelopment Agency 201 North "E" Street Suite 301 San Bernardino, California 92401 Nothing in this paragraph shall be construed to prevent the giving of notice by personal service. 26. ENTIRE AGREEMENT This Agreement with Exhibit "A" constitutes the entire understanding and agreement of the parties. III III III III III III III III III III III -7- CDC 1999-52 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above shown. REDEVELOPMENT AGENCY of the CITY OF SAN BERNARDINO By: ), cu-<'~~ ~/ at'2t'.-Le-/ Norine Miller Vice Chairman Approved as to form and legal conte ) CONSULTANT By: !u H-, L {l. (J PZA- Hdl Coren & Cone -8- CDC 1999-52 Revenue :\Ianagement for Local Governmcnt Hinderliter. de Llamas & Associates HdL Coren & Cone HdL Software. LLC November 29, 1999 Mr. Gary Van Osdel Executive Director City of San Bernardino Economic Development Agency 201 North E Street, Suite 301 San Bernardino, CA 92401-5081 Dear Mr. Van Osdel: HdL Coren & Cone, in association with City Associates, is pleased to present this proposal to perform property tax audits and Malaki analysis for the San Bernardino Redevelopment Agency. HdL Coren & Cone (HdLCC) currently is providing on-going property tax analytical and auditing service for 104 cities, counties, redevelopment agencies and special districts. For these cities we serve as adjunct staff on all property tax matters, including auditing county allocation procedures, researching property tax related issues, providing revenue estimates to assist in the budget process, and preparing updated tables for continuing disclosure. Our services are based upon the firm's large investment in computers and specially designed software for the management of large property tax data bases. We currently have on line more than 120 gigabits of property tax data, including the complete secured and unsecured property tax rolls for San Bernardino County since 1990. Our software capability gives us the ability to audit an entire county for the benefit of our clients. We have corrected the allocation of $3.2 billion in assessed values resulting in the recovery of more than $29 million for our clients. We have extensive experience working with cities and redevelopment agencies in San Bernardino County, including Fontana, Rialto, Colton, Ontario, Montclair and Upland. HdLCC was established in 1992 to provide property tax data base management analytical and auditing services to California cities and counties. HdLCC, along with Hinderliter de Llamas & Associates and HdL Software, comprise the HdL Companies. Hinderliter de Llamas & Associates provides sales tax auditing and analytical services to California cities and counties. HdL Software develops software to assist cities and counties with their administrative and financial services. The business license software is now in 1340 Valley Vista Drive I Suite 200 I Diamond Bar. CA 1 91765 I [9091861-4335 I 1',\\ [9091 861-7726 www.hdlcompanies.com I E-mail: hdlcomps@earthlink.net I 18881 861-0220 Exhibit "A" CDC 1999-52 City of San Bernardino Economic Development Agency Assessed V alues Verification Proposal November 29, 1999, pg. 2 operation in more than 70 cities. A new software program for managing the permitting process has recently been released and is now operating in five cities. Personnel The HdL Companies are located in Diamond Bar, California. HdLCC has nine employees, led by its principals, Martin Coren and Paula Cone. Ms. Cone worked for 24 years with the City of Lawndale prior to joining the HdL Companies, including ten years as assistant city manager. She joined Hinderliter de Llamas & Associates in 1990 to develop the property tax data base software now utilized by HdLCC. Martin Coren joined the firm in 1992 after spending 15 years as a redevelopment consultant, and five years as a legislative assistant with the California State Assembly. Mr. Coren specializes in redevelopment finance and has participated in the issuance of more than $3 billion of tax increment supported debt. Both Mr. Coren and Ms. Cone will participate in providing the services under this proposal. The secured audits will be performed by Cynthia Robinson, an analyst with more than seven years experience performing parcel audits. Other members of the HdLCC staff will assist as needed. City Associates, Inc. will assist with contact work with the Agency and the County. Richard Powers and Louis Shepard of City Associates combine more that 40 years experience as city and redevelopment managers. Mr. Shepard and Mr. Powers are familiar with the Agency having served with it as consultants. Examples In January 1999 HdLCC completed a secured and unsecured audit of all the redevelopment project areas for the Ontario Redevelopment Agency. Among the findings was the discovery of a 266-parcel area with more than $11 million of assessed value had never been properly coded as part of Redevelopment Project #2. In 1999 HdLCC assisted the Vernon Redevelopment Agency with the recovery of $1,249,657 of unsecured property tax revenue from two fiscal years. The majority of the recovery came from unsecured billings that were erroneously recorded to areas outside the City of Vernon. HdLCC assisted the Monterey Park Redevelopment Agency and lrwindale Redevelopment Agency with Malaki adjustments through the identification of properties purchased by a public entity for street development and widening that were appropriate for Malaki adjustments. In both cases the redevelopment agencies did not have documentation of base year values of the properties to be able to quantify the value to be removed. For both agencies the base year values were pro-rated on a per acre basis for reduction of the base year. Exhibit "A" CDC 1999-52 '. City of San Bernardino Economic Development Agency Assessed Values Verification Proposal November 29,1999, pg. 3 Scope of Services HdLCC will establish a data base for each project area and each amendment area of the Agency. The data base will include all of the locally assessed values for each project and amendment area, including the secured and unsecured tax rolls for the current year and a minimum for four previous years The data base for each project area will be reconciled with the County reports to assure its accuracy. Utilizing the data base, HdLCC will then provide the following services: 1. A five year history of each project area broken down by land, improvements, personal property and exemptions on the secured and unsecured tax rolls. These histories will be utilized to determine anomalies and discrepancies which merit further investigation; 2. To the extent records allow, a history of the base year of each project area since its inception to determine if the purchase of private property for public use has resulted in any reductions of the base year pursuant to the Malaki procedure; 3. A secured parcel audit of the current year to identify any misplaced or miscoded parcels for each project area. All misplacements and miscodings will be investigated for at least three previous years; 4. An audit of the unsecured billings of the entire County to assure that the Agency is receiving all unsecured revenues due form each project area; 5. A review of all publicly owned parcels in each project area to determine which were purchased from private parties, and of those parcels, which ones would qualify for Malaki adjustments to the project area base years; 6. Preparation of a report of audit and Malaki findings for submission to the San Bernardino County Assessor for corrections as appropriate; 7. Assistance with monitoring the Assessor's and Auditor-Controller's offices to assure appropriate audit and Malaki corrections. Time Frame Assuming the timely accessibility of necessary information, the scope of services should be complete within 90 days of a written authorization to proceed. Exhibit "A" CDC 1999-52 City of San Bernardino Economic Development Agency Assessed V alues Verification Proposal November 29, 1999, pg. 4 Fees All fees are on a contingency basis as follows: 1. Audit of the project areas will be performed for a fee of 25 percent of the Net Revenues recovered for the Agency in three future years beginning with the first year in which the correction is made. "Net Revenues" means revenues actually received by the Agency after deductions for the City of San Bernardino's share of property tax revenues derived from parcels shifted from the City to the Agency, and net of tax-sharing amounts. 2. For Malaki adjustments our fee is based on increases in revenues due to the adjustments in future years as follows: 1 sl Year 2nd Year 3rd Year 4th Year 30% 25% 20% 10% Qualification Performance of this scope of services is dependent upon the availability of parcel information for the respective base years from the Agency and/or the County Assessor's Office. This proposal is valid for six months. We would be glad to discuss any details of this proposal. Please call Martin Coren or Paula Cone if you have any questions. 11// ~/~ HdL Coren & Cone corenlpropoeal! sbaudil Exhibit "A"