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HomeMy WebLinkAboutR40-Economic Development Agency ~.1o-~ c;.;"".; .- " r.. ECONOMIC DEVELOPMENT AGENCY OF -TBECITY OFSANJlERNAllDINO REOUEST FOR COMMlSSIONICOUNCIL ACTION FROM: GARY VAN OSDEL ~Y"""'ntiv.o DirPMnr SUBJECT: BDL COREN" CONE AGREEMENT DATE: December 9. 1999 ORIGINAL Swomis or Previous CommlssioulCouDelIICommlttee AetIon(s): On December 9. 1999. the Redeve1c!pment CommiUee recommended l!(!proval of an qgreement with Hdl Coren " Con~. in association with C~ Associates. for JlrQpet\y tax audits and MaIaki ana!ysis. ..--............-..-..-..........-..-....-..-............-..............-.........................._...................--....-~..........-........_....._..._.....~....-.._-..-_.._--------.-......... R_mellded Motionlsl: (CommunitY DeveloDmellt ComlDiolon) MOno~ 1lESOLU'I'1ONOF THE.coMMUNlTY DEVELOPMEJilT .coMMISSIDN OF THE CITY OF SAN BERNARDINO. CALIEORNIA, APPROVING AN AGREEMENT. AND AUTHORIZING EXECUTION THEREOF. WITH HDL COREN" CONE. IN ASSOCIATION WITH CITY ASSOCIATES. TO PERFORM PROPERTY TAX AUDITS AND MALAKI ANALYSIS FOR THE SAN BERNARDINO REDEVELOPMENT AGENCY. Contact Person(s): Garv V an Osd~lIBarbaraLind.~ Phon~: 5081 Project Area(s): AU Ward(s): All Supporting Data Attached:1lD Staff Report 0 Reso1ution(s) 0 Agreemm(s)/Contract(s) 0 Map(s) 0 LtrlMemo FUNDING REQUIREMENTS: Amount: C'.nntin"ent Source: Tax Increment SIGNATURE: Reauested <--' C~" ~~irf Barbara Lindseth Admin Services Director ------------------..----....----..--..--..- CommissionlCoucl1 Notes: ------------------------------------.----------------------------------------------------------------------------- BL:Agenda CDC Hdl Coren COMMISSION MEETING AGENDA .MEETING DATE: 1212l11l999 Apnds Item Number: RI.JO """-c~.~~"'.'~ .......:.-..-,.. .- " '. ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ Rdl Coren" Cone A2reement Background Each year the Redevelopment Agency receives from the County of San Bernardino secured and unsecumtprQperty assessed values for each of the ten (10) redevelopmentproject areas. From the assessed property values provided by the County, staffprojects the estimAted amount of tax increment to be received. While the projected tax increment and the actual tax increment received by the Agency are within reasonable limits, taking into consideration account tax payer delinquencies, staffis re!yiJ!g on the accuracy of the CountY's total secured and unsecured assessedproperty value nwnbers as provided. Cul'ftDUssue Staff desires to audit property tax and perform MaIaki analysis for the Agency by utilizing the services of a l.)UA1ifiM consulting firm. A Request fur Proposal was issued by the Agency to three (3) firms that specialize in property tax audits and MaIaki analysis. The Request fur Proposal required that the Response cover the following scope of work: 1. A historical review of each redevelopment project area assessed values to determine accuracy. 2. Verification by parcel of the accuracy of secured assessed values. 3. Verification ofnn"""nred assessed values. 4. A review of government owned parcels that have been acquired fur public use since the adoption of each redevelopment project area and a calculation of the appropriate reduction of the base year values fur the parcels in public use. S. Preparation of appropriate finding with recommendations fur corrective actions as necessary. The three (3) consulting firms contacted are: The Hdl Coren & Cone Companies, in association with City Associates; Keyser Marston Associates, Inc.; and Rosenow Spevacek Group, Inc. One (1) response, from Hdl Coren & Cone, was received. Hdl Coren & Cone was established in 1992 to provide property tax data base management analytical and auditing services to California cities and counties. The Company currently is ------------------------------------------------------------------------------------------------------------------ BL:Agenda CDC HdI Coren COMMISSION MEETING AGENDA MEETING DATE: 1211011999 Agenda Item Number: R.l/ 0 -~"r;1..o'''~o_';' . . " Economic Development Agency Staff Report HdI Coren & Cone December 9, 1999 Page - 2- providing on-going property tax analytical and auditing services for 104 cities, counties, redevelopment agencies and ~ districts, includiQg Fontana, Rialto, CohoD, Ontario, Montclair and Upland. The Company audits County allocation procedures, researches property tax related issues, and provides revenue estimates. The Company bas specially i1.,qigJVXl software for the management of large property tax data bases, including having on-line the complete secured and unsecuredpropert.y tax rolls for San Bernardino County since 1990. The Company will establish a data base for each redevelopment project area and for each amendment to the project areas, which will include all of the 10caUy assessed va1ues for the current year and a minimum of the four (4) previous years. The Company will provide all services as outlined in the attached Sco.,pe of Services to be completed within an estimHted 90 ~ys of the authorization to proceed. Fiscal Imj)llct The Company's tee for the audit of the redevelopment project areas will be 25% of the Net Revenue recovered for the Agency in the three (3) futures years beginning with the first.year in which correction is made. For MaIaki adjustments the tee is based on increases in revenues due to the a4justments in future years as follows: fustyear 30"A.; second year 25%; thirdyear 20%; and, fourthyear 10"A.. Fees will only be paid based upon revenues recovered. Recommeadatioa That the Community Development Commi...,ion adopt the attached Resolution approving an agreement with HdI Coren & Cone, in association with City Associates, to perform property tax audits and MaIaki . for the San Bernardino Redevelopment Agency. -~---------~~-~~----~-----~--~--~-~-----~-------------------------~----------------------------------------------~ BL:Agenda CDC HdI Coren COMMISSION MEETING AGENDA MEETING DATE: 12I1Gn999 A&enda Item Number: . R. I/fJ (G(Q)[?))1 1 RESOLUTION NO. 0 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APROVING AN 3 AGREEMENT, AND AUTHORIZING EXECUTION THEREOF, WITH 4 HDL COREN & CONE, IN ASSOCIATION WITH CITY ASSOCIATES, TO PERFORM PROPERTY TAX AUDITS AND MALAKI ANALYSIS 5 FOR THE SAN BERNARDINO REDEVELOPMENT AGENCY. 6 WHEREAS, the Community Development Commission ("Commission") 7 desires to enter to an agreement with Hdl Coren & Cone, in association with 8 City Associates, to perform property tax audits and MaIaki analysis for the San 9 10 Bernardino Redevelopment Agency. 11 NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY 12 DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, 13 AS FOLLOWS: 14 Section 1. The Commission hereby approves and authorizes the 0 15 Chairperson of the Commission to execute an agreement with Hdl 16 17 Coren & Cone, in association with City Associates, to perform property tax 18 audits and MaIaki analysis for the San Bernardino Redevelopment Agency, as 19 attached hereto. 20 Section 2. This Resolution shaI1 take effect upon the date of its adoption. 21 II 22 II 23 II 24 25 II 26 II 0 27 II 28 o o o I 2 3 4 5 6 7 8 9 10 II 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 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 MALAKI 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 meetingthereot;heldonthe_dayof ,1999. by the following vote, to wit: Commission Members Aves Navs Abstain Absent ESTRADA LIEN MCGINNIS SCHNETZ SUAREZ ANDERSON MILLER Secretary The foregoing Resolution is hereby approved this _day of ,1999. Approv Judith Valles, Chairperson Community Development Commission of the City of San Bernardino By:../ Agency Counsel , , CDC 1999-52 AGREEMENT FOR PROFESSIONAL SERVICES Agreement Number EDA TInS AGREEMENT made and entered into this 20th day of Dec&Bber , 1999, by the REDEVELOPMENT AGENCY OF 1HE 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 Consuhant to provide to the Agency property tax audit and MaIak.i analysis services. TERMS AND CONDmONS 2. MISSION The Agency hereby retains the Consuhant in the capacity of Consuhant for provision of services descnbed in Exlnbit "A" (the "Scope of Services"), attached hereto and incorporated herein by reference. Consultant hereby accepts such responsibilities as descnbed 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 descnbed 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 descnbed 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 RESPONSmlLITIES Upon the request of the Executive Director, or designee, the Consultant shall perfonn each element of the work descnbed in the Scope of Services. Consultant conunits the principal personnel as listed in Exlnbit "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 fur the successful performance of this Agreement. No diversion or replacement of this (these) individua1(s) sball be made by the Consuhant 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 sbaIl be made without prior written approval of the Executive Director or designee. 7. CONFIDENTIALITY OF REPORTS Consultant sbaIl keep confidential all reports, information and data received, prepared or assembled pursuant to performance hereunder and that the Agency designates as confidential. Such information sbaIl 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 ConsuItant's costs and expenses, sbaIl be as outlined in Exhibit "A". All fees are on a contingency basis as follows: a) Audit of the project areas will be performed fur 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 Malaki 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"10 -2- CDC 1999-52 Consultant sha1l provide an itemized invoice to the Agency. Said compensation sha1l be considered full and complete compensation fur Consultant's costs associated with the services provided hereunder. Consultant sha1l be paid in accordance with the Agency's standard accounts payable system. Invoices sha1l be approved by the Executive Director or designee. 9. USE OF FUNDS Any funds paid to Consultant sha1l be used solely for the purposes set forth in Paragraph I of this Agreement and in accordance with Exln"bit "A". Consultant sha1l 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 Jaws and regulation specific to the business and activity carried out by the Consultant. Compensation sha1l not be made to the Consultant, which is not operating in compliance with all applicable Jaws. 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 sha1l be maintained by the Consultant in accordance with Genera1ly 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 sha1l be retllined 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 sha1l be retained until all litigation. claim or audit finding involving the records have been fully resolved. 11. NONDISCRIMINATION. MONITORING AND REPORTING PROGRAM PERFORMANCE Consultant sha1l not discriminate because of race, color, national origin, creed, religion. sex, marital status or physical handicap. At the request of the Executive Director or designee, the Consultant sha1l 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 bereunder, upon a finding by the Executive Director or designee that such fuilure was due -3- c,oc 1999-52 to extraordinary circumstances and that such breach has been timely cured without prejudice to the Agency. 12. CONFLICT OF INTEREST Consultant sball D1AintaID a code or standard of conduct which sball govern the perfurmance of its officers, employees or agents. Consultant's officers, employees or agents sball neither solicit nor accept gratuities, :Iilvors, or anything of monetary value for work completed under the Scope of Services. To the extent pennissible by state laws, rules and regulations, the standards adopted by the Consultant sball 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 sball 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 sball 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 (;onsultant shall not assign nor transfer any interest in this Agreement without the prior written consent of Agency. 16. INDEMNIFICATION Consuhant 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 sball provide and maintain at its own expense during the term of this Agreement the following program(s) ofinsurance covering its operating heretmder. Comprehensive General and Automobile Liability Insurance. Consultant sball 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+vn 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 bas 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 of Insurance 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 of performance of Services hereunder, which certificates sball provide that such insurance sball 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- COC 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 1oca11aws, 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 shall 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 any one 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- qx: 1999-52 25. NOTICE Notices, herein shall be presented in person or by certified or registered U.S. mail, as fullows: To Consultant: Hdl Coren & Cone 1340 Valley Vista Drive Suite 200 Diamond Bar, Califurnia 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 Exlnbit "A" constitutes the entire understanding and agreement of the parties. III III III III III /II III III III III III -]- CJ?C 19!19-52 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: j/IT/I-'-'~/-? 1M /~/f~./ Horine Mi11er Vice Chairman Approved as to form and legal CO By: I Agency Counsel CONSULTANT By: Hdl Coren & Cone -8- ;; CDC 1999-52 111I :Hcllj COi\ IP,\:\ I E S Re\-enue ~Ianagement for Local Government Hinderliter. de Llamas & Associates HdL Coren & Cone HdL Software. LLC November29,1999 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 1 Suite 200 1 Diamond Bar. CA 1 91765 I 19091 861-4335 I F\.\ 19091 861-7726 www.hdlcompanles.com I E-mail: hdlcomps@earthllnk.netI18881 861-0220 Exhibit "A" CDC 1999-52 City of San Bernardino Economic Development Agency Assessed Values Verification Proposal November 29.1999, pg. 2 operation in more than 70 cities. A new softwar.e program for managing the permiIting process has recently been released and is now operating in five cities. Personnel The HelL 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 HelL 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 fmance 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. Examnles In January 1999 HdLCC completed a secured and unsecured audit of all the redevelopment project areas for the Ontario Redevelopment Agency. Among the fmdings 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" li""..-.- CDC 1999-52 City of San Bernardino Economic Development Agency Assessed V alues Verification Proposal November 29, 1999, pg. 3 Scone 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 fmdings 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" Wi; '. CDC 1999-52 , City of San Bernardino Economic Development Agency Assessed V aloes 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 ftrst 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 M~aki adjustments our fee is based on increases in revenues due to the adjustments in future years as follows: I"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. 114/ ~/~ HdL Coren & Cone corenIpropoeal/sbaudil Exhibit "A" ~, c . CITY OF SAN BERNARDINO Interoffice Memorandum CITY CLER,K'S OFFICE Records and Information Management (RIM) Program DATE: January 6, 2000 TO: Gary Van Osdel FROM: Melanie Miller, Senior Secretary RE: Transmitting Documents for Signature Attached is the following original document: Resolution CDC 1999-52 original agreements (3) Please obtain signature where indicated on original document. Please return everything to the City Clerk's Office as soon as possible to my attention. I will forward to you a copy when fully executed. If you have any questions, please do not hesitate to contact me at ext. 3212. Thank you. Rachel Clark City Clerk By: Melanie Miller Senior Secretary I hereby aCknOWledgereCe~f the above me~tioned documents. Signed: ~ - j~ / - ~ - OV Date: .