Resolution Approving Amendment No. 1 to the Contract Agreement Between the City of Livingston and HDL Coren & Cone to Continue Providing Support Services in Property Tax Areas and Authorizing the City Manager to Execute a Three Year Service Contract Extension

Meeting Date: February 18, 2014

Agenda Item #5. Resolution Approving Amendment No. 1 to the Contract Agreement Between the City of Livingston and HDL Coren & Cone to Continue Providing Support Services in Property Tax Areas and Authorizing the City Manager to Execute a Three Year Service Contract Extension

Note from TheGardeningSnail: Parts of this page may have been prepared by running a PDF file through a program that converts Image to Print. So there may be a few textual Gremlins that have slipped in. I may also have broken up some of the longer paragraphs, for easier reading.

STAFF REPORT

AGENDA ITEM: Resolution Approving Amendment No. 1to the Contract Agreement between the City of Livingston and HDL Coren & Cone to Continue Providing Support Services in Property Tax Areas and Authorizing the City Manager to Execute a Three Year Service Contract Extension.

MEETING DATE: February 18, 2014

PREPARED BY: Odi Ortiz, Assistant City Manager/Finance Director

REVIEWED BY: Jose Antonio Ramirez, City Manager

RECOMMENDATION:

City Council adopt Resolution No. 2014-_,approving Amendment No. 1 extending the Contract Agreement between the City of Livingston and HDL Coren & Cone to continue to provide contract services on property tax revenue areas and authorize the City Manager to execute a three year contract extension.

BACKGROUND:

HDL Coren & Cone has been providing contract staff support services to the City of Livingston since January of 2007. The Scope of Services includes reports and analytical services in the property tax revenue areas. This includes generating property tax revenue projections, monitoring changes (additions/deletions, re-assessments, etc.), generating quarterly reports on trend activities, reconciling of county reports and audit calculations of revenues to ensure the City’s fair share. The contract also includes ongoing consultation on the City’s inquiries.

The contract approved in January 2007 was for three years with two automatic one year extensions pushing the expiration date to January 2012. The previous annual fee was $5,000 per year or $1,250 per quarter.

DISCUSSION:

Extend/amend expired contract for three additional years with new expiration date of 12/31/16.

FISCAL IMPACT:

Annual fee remains the same at $5,000 per year or $1,250 per quarter. Amount is already reflected on annual budget (general fund).

ATTACHMENTS:

I. Resolution No. 2014-

2. Exhibit "A" Amendment No. 1 -Contract Agreement between the City of Livingston and HDL Coren & Cone

3. Exhibit " B " 2007 Contract

RESOLUTION NO. 2014-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING AMENDMENT NO. 1 TO THE CONTRACT AGREEMENT BETWEEN THE CITY OF LIVINGSTON AND HDL COREN & CONE TO CONTINUE PROVIDING SUPPORT SERVICES IN PROPERTY TAX AREAS AND AUTHORIZING THE CITY MANAGER TO EXECUTE A THREE YEAR SERVICE CONTRACT EXTENSION

WHEREAS, the City of Livingston approved original three (3) year service contract on January 16, 2007; and

WHEREAS, contract included two (2) one (1) year automatic extensions; and WHEREAS, original contract term ended on January 16, 2012; and WHEREAS, scope of work will remain the same; and

WHEREAS, management is recommending a three (3) year contract extension; and

WHEREAS, the City wishes to approve a three (3) year contract extension with HDL Coren & Cone; and

WHEREAS, the original City Council authorized fee of $5,000 per year remains in place during these additional terms.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston hereby adopts a Resolution to approve a three (3) year contract extension in the form approved by legal counsel with HDL Coren & Cone to provide property tax reporting and analytical services.

Passed and adopted this 18th day of February, 2014, by the following vote: AYES:

NOES:

ABSENT:

ABSTAIN:

Rodrigo Espinoza, Mayor of the City of Livingston

ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this 18th day of February, 2014.

Antonio Silva, City Clerk of the City of Livingston

(Exhibit A)

FIRST AMENDMENT TO THE CONTRACT AGREEMENT BETWEEN THE CITY OF LIVINGSTON AND HDL COREN & CONE

This First Amendment to the Consultant Agreement ("Amendment") is made by and between the City of Livingston ("City") and HDL Coren & Cone ("Contractor”) as of February 18, 2014. City and Contractor are hereinafter collectively referred to as the "Parties."

RECITALS

WHEREAS, the Parties entered into a Contract Agreement ("Agreement") dated January 16th, 2007 for the purpose of providing contract support services to the city of Livingston in the property tax revenue management areas. Scope of services include, quarterly and annual reports, analytical services in property tax areas; and

WHEREAS, this Amendment will extend the Agreement for three additional years in order to have continueous support with property tax management and oversight. Fees will remain unchange and no additional funds need to be allocated as a result of this extension; and

WHEREAS, the Parties agree that changes to the term and services provided for in the Agreement are necessary in order for the City to continue receiving services by Contractor.

NOW, THEREFORE, the Parties hereto agree as follows:

AGREEMENT

1. The Parties agree to modify the end date of the Agreement from January 16, 2012, to December 31, 2016. The "Term" Section of the Agreement, "Term", shall be amended to read as follows:

"Contractor shall continue provide support services immediately following the execution of this three year contract amendment/extension by the city. The term of agreement should be extended through December 31, 2016.

2. All other terms and conditions in the Agreement shall remain in full force and effect to the extent they are not in conflict with this Amendment.

3. The signatures of the Parties to this Amendment may be executed and acknowledged on separate pages or in counterparts which, when attached to this Amendment, shall constitute one complete Amendment.

IN WITNESS WHEREOF, the Parties have executed this Amendment on the day and year first above written.

CITY OF LIVINGSTON

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Jose Antonio Ramirez, City Manager Date: _

Attest:

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Betty Cota, Deputy City Clerk Date: ——

Approved as to Form:

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Jose M. Sanchez, City Attorney Date: _

2132066.1

CONSULTANT

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HDL Coren & Cone, Principal Date: _

EXHIBIT B

This Agreement is made and entered into as of the 16th day of January, 2007 by and

between the CITY OF LIVINGSTON, a mW1icipal corporation hereinafter called CITY, and HdL Coren & Cone, a California Corporation hereinafter called CONTRACTOR.

RECITALS

WHEREAS, property tax revenues can be verified and potentially increased through a system of continuous monitoring, identification and reconciliation to county records; and

WHEREAS, an effective program of property tax management will assist the CITY in fiscal, economic and community development planning; and

WHEREAS, CITY desires the property tax data based reports and data analysis required to effectively manage the CITY property tax base and identify and recover revenues misallocated within the CITY, or to other jurisdictions; and

WHEREAS, CONTRACTOR has the programs, equipment, data and personnel required to deliver the property tax services referenced herein;

NOW, THEREFORE, CITY and CONTRACTOR, for the consideration hereinafter described, mutually agree as follows:

DEFINITIONS

Data Base: A computerized listing of property tax parcels and information compiled for CITY from information provided by the County.

Property Tax Roll: The assessed values of parcels on the lien date as reported by the County.

Agency: The Livingston Redevelopment Agency.

TRA: Tax Rate Area – A geographical area comprised of a unique combination of taxing agencies.

SERVICES

The CONTRACTOR shall perform the following services:

A. Annually, after the Property Tax Roll is available:

1. CONTRACTOR shall establish a Data Base for CITY and install the Data Base on a personal computer or network

2. Utilizing the Data Base, CONTRACTOR will provide

a. A listing of the top 25 major property owners in the CITY, including the assessed value of their property

b. A listing of the top 25 major property tax payers, including an estimate of the property taxes

c. A listing of property tax transfers which occurred since the prior lien date

d. A listing of parcels that have not changed ownership since the enactment of Proposition XIIIA

e. A comparison of property within the CITY by county-use code designation

f. A listing by parcel of new construction activity utilizing city building department data, including building permits with assessor parcel numbers and project completion dates, to identify non-residential parcels with new construction activity and to provide reports for use in the CITY1s preparation of Proposition 4 and 111 State Appropriation Limit calculations.

g. A listing of multiple owned parcels

h. A listing of absentee owner parcels

1. Calculate an estimate of property tax revenue anticipated to be received for the fiscal year by the CITY. This estimate is based upon the initial information provided by the County and is subject to modification. This estimate shall not be used to secure the indebtedness of the CITY.

j. Upon written request, analyses based on geographic areas designated by the CITY to include assessed valuations and square footage computations for use in community development planning.

B. QUARTERLY

Quarterly and no later than the end of each calendar quarter, the following services will be provided to CITY by CONTRACTOR.

1. A listing of property transfers that have occurred since the last report.

2. An update of computer program parcel transfer data.

C. ANALYSIS AND IDENTIFICATION OF MISALLOCATION ERRORS

1. In the first year of this Agreement, and as necessary thereafter but not less than once every three years, CONTRACTOR shall conduct an analysis to identify and verify in the CITY parcels on the secured Property Tax Roll which are not properly attributed to a CITY. and will provide the correct TRA designation to the proper County agency. Typical errors include parcels assigned to incorrect TRAs within the CITY or an adjacent city, and TRAs allocated to wrong taxing agencies.

2. CONTRACTOR shall reconcile the annual auditor-controller assessed valuations report to the assessor’s lien date rolls and identify discrepancies.

3. CONTRACTOR shall review parcels on the unsecured Property Tax Roll to identify inconsistencies such as value variations, values being reported to a mailing address rather than the situs address, and errors involving TRAs (to the extent records are available).

D. ON-GOING CONSULTATION – During the term of this Agreement, CONTRACTOR shall timely answer City’s questions relating to property tax and assist in estimating current year property tax revenues. On-going consultation would include, but not be limited to, inquiries resolved through use of the CITY’s data base.

E. OPTIONAL SERVICES – The following services are available on a time and materials basis

1. Generation of specialized data-based reports which would require additional programming or the purchase of additional data not necessary to carry out services outlined in Sections A, B, and C.

2. Any research with county agencies for which CONTRACTOR does not have a current database.

3. Redevelopment Financial Services including but not limited to:

a. Tax increment projections

b. Feasibility studies

c. Agency or Project Area cash flows

d. Low and moderate income housing set-aside calculations, findings and consultations

e. Fiscal impact studies

f. Legislative analysis

g. Redevelopment plan adoption and amendment financial feasibility studies

F. BOND SERVICES – Bond services are available for a fixed fee, including

I. Tax Allocation Bonds fiscal consultant reports

2. Mello-Roos Special Tax studies

3. Independent redevelopment and financial consultant reports, such as escrow release reports and additional bond tests

CONSIDERATION

A. CONTRACTOR shall provide the services described in Services – Sections A, B, C and D above, for an annual fee of $5,000 invoiced quarterly.

B. For services pursuant to Section C of Services, CONTRACTOR shall receive 25 percent of net general fund or tax increment property tax revenue recovered or reallocated that is the result of an audit, analysis or consultation performed by CONTRACTOR (including but not limited to base year value audits; administration of tax sharing agreements; tax increment allocation reviews). CONTRACTOR shall separate and support said reallocation and provide CITY with an itemized invoice showing all amounts due as a result of revenue recovery or reallocation. CITY shall pay audit fees after Contractor’s submittal of evidence that corrections have been made by the appropriate agency. Payment to CONTRACTOR shall be made after CITY receives its first remittance advice during the fiscal year for which the correction applies.

C. Fees for Optional Services as outlined in Services – Section E above shall be billed at the following hourly rates:

Partner     $150 per hour

Principal  $135 per hour

Associate  $100 per hour

Senior Analyst $ 85 per hour

Analyst     $ 60 per hour

Administrative $40 per hour

Hourly rates are exclusive of expenses, which are billed at 1.15 times actual incurred costs.

D. Fees for Bond Services -Section F above will be determined by mutual agreement of the parties and will vary depending upon the complexity of the bond issue and the time available for completion of the task.

E. Except for fees billed under Section C above, all sums billed shall constitute full reimbursement to CONTRACTOR for all direct and indirect expenses incurred by CONTRACTOR in performing analyses and audits including

the salaries of CONTRACTOR’s employees, and travel expenses connected with contacting appropriate county department representatives.

F. All fees are due 30 days immediately following billing. All undisputed amounts that are not paid when due shall accrue interest from the due date at the lesser of 18% per annum or the maximum rate allowed by law.

CITY MATERIALS AND SUPPORT

CITY agrees to provide the following information:

A. Current CITY and Agency maps and zoning map;

B. A copy of reports received by the CITY and Agency annually from the Auditor-Controller’s office detailing assessed values (secured, unsecured and utilities), as well as unitary values for reconciliation analysis;

C. Parcel listing and maps of CITY or Agency parcel annexations since the lien date roll;

D. A listing of completed new construction projects with Assessor’s map book, page and parcel numbers (APN) for proper identification and tracking for two years prior to the date of this Agreement. If the data does not include the APN information, CONTRACTOR will research this information at an additional cost;

E. A listing of the CITY levies assessment districts and direct assessments. TERM

CONTRACTOR shall begin services immediately following the execution of this Agreement by CITY. The term of the contract is for three years with the option for two 1-year extensions.

INDEPENDENT CONTRACTOR

CONTRACTOR shall perform the services hereunder as an independent CONTRACTOR and shall furnish such services in his own manner and method, and under no circumstances or conditions shall any agent, servant, or employee of CONTRACTOR be considered as an employee of CITY.

NON-ASSIGNMENT

This Agreement or any portion thereof, shall not be assigned, transferred or delegated by CONTRACTOR without the written consent of CITY.

ATTORNEY’S FEES

In the event a legal action is commenced to enforce any of the provisions of this Agreement, the prevailing party shall be entitled to recover its costs and reasonable attorney’s fees.

NON-DISCLOSURE CLAUSE

In performing its duties under this Agreement, CONTRACTOR will produce reports, technical information and other compilations of data to CITY. These reports, technical information and compilations of data are derived by CONTRACTOR using methodologies, formulae, programs, techniques and other processes designed and developed by CONTRACTOR at a substantial expense. CONTRACTOR’S reports, technical information, compilations of data, methodologies, formulae, programs, techniques and other processes designed and developed by CONTRACTOR shall be referred to as Proprietary Information. CONTRACTOR’S Proprietary Information is not generally known by the entities with which CONTRACTOR competes.

CONTRACTOR desires to protect its Proprietary Information. Accordingly, unless required under the California Public Records Act, California Government Code Section 6250 et seq., CITY agrees that neither it nor any of its employees, agents, independent contractors or other persons or organizations over which it has control, will at any time during or after the term of this Agreement, directly or indirectly use any of CONTRACTOR’S Proprietary Information for any purpose not associated with CONTRACTOR’S activities. Further, unless required under the California Public Records Act, California Government Code Section 6250 et seq., CITY agrees that it nor any of its employees, agents, independent contractors or other persons or organizations over which it has control, will disseminate or disclose any of CONTRACTOR’S Proprietary Information to any person or organization not connected with CONTRACTOR, without the express written consent of CONTRACTOR. The CITY also agrees that it will undertake all necessary and appropriate steps to maintain the proprietary nature of CONTRACTOR’S Proprietary Information.

GOVERNING LAW

The laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and shall also govern the interpretation of this Agreement.

TERMINATION

This Agreement may be terminated by either party giving 30 days written notice to the other of such termination and specifying the effective date thereof. Upon the presentation of such notice, CONTRACTOR may continue to work through the date of termination.

Upon termination as provided herein, CONTRACTOR shall be paid the value of all tax analysis and reporting work performed less payments previously made by CITY. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to amounts due for any unpaid invoices, and to parcels identified by CONTRACTOR which may result in increased or reallocated revenues after the termination of this Agreement. After CITY receives said tax payments, CONTRACTOR shall be paid for the percentage work as previously authorized and satisfactorily performed at the times provided in the preceding section entitled "Consideration".

INDEMNIFICATION

CONTRACTOR hereby agrees to, and shall hold CITY, its elective and appointive boards, officers, agents and employees, harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for breach of confidentiality or property damage which may arise from CONTRACTOR’S willful or negligent acts, errors or omissions or those of its employees or agents. CONTRACTOR agrees to and shall defend CITY and its elective and appointive boards, officers, agents and employees from any suits or actions at law or in equity for damages caused, or alleged to have been caused, by reason of any of the aforesaid willful or negligent acts, errors or omissions. CITY hereby agrees to, and shall hold CONTRACTOR, its officers, agents and employees, harmless from any liability for damage or claims for damage for personal injury, including death as well as from claims for breach of confidentiality or property damage which may arise from CITY’S negligent acts, errors or omissions under this Agreement. CITY agrees to and shall defend CONTRACTOR and its officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid negligent acts, errors or omissions.

NOTICE

All notices required by this Agreement shall be given to CITY and CONTRACTOR in writing, by personal delivery or first class mail postage prepaid, addressed as follows:

CITY City of Livingston

P.O. Box 308

Livingston, California 95334

CONTRACTOR: HdL COREN & CONE

1340 Valley Vista Drive, Suite 200 Diamond Bar, California 91765

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

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CITY OF LIVINGSTON City Manager

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CONTRACTOR:

HdL COREN & CONE

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CitYAttomey ‘

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