2022-27 HdL Coren & Cone - Property Tax & Auditing Services ConsultingCONTRACT SERVICE AGREEMENT FOR PROPERTY TAX
CONSULTING/AUDIT SERVICES
This AGREEMENT (the "Agreement") is made and entered into as of
the 6 day of December 2022 by and between the CITY OF LA QUINTA a
municipal 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 is a state-wide expert in such data analysis
with over 150 public agency clients for whom such services are performed
and has the programs, equipment, data and personnel required to deliver
the property tax services referenced herein;
WHEREAS, CITY prefers to pay for certain of such services through a
contingency arrangement where payment is made from monies recovered
and CONTRACTOR is willing to base its compensation on such a risk-based
formula.
NOW, THEREFORE, CITY and CONTRACTOR, for the consideration
hereinafter described, mutually agree as follows:
1.0 DEFINITIONS
For purposes of this Agreement, the following terms shall have the
meaning stated below:
Audit Review: "Audit" or "Audit Review" shall mean the comparison
of databases to ensure that parcels are correctly coded with the
appropriate tax rate area to return revenue to the client city. Audits
include the secured and unsecured tax rolls and where secured records
are corrected; the corresponding unsecured records related to those
properties are also corrected. A review of the calculation
methodologies developed by auditor/controller offices in the
administration of property tax is made to ensure compliance. New
annexations are audited the 1st or 2nd year after the area's adoption
due to the timing of LAFCO and the State Board of Equalization in
assigning new tax rate areas and county processing of those changes.
County: 'County" shall mean the County in which the CITY is located.
Data Base: "Data Base" shall mean a computerized listing of property
tax parcels and information compiled for CITY from information
provided by the County.
Days: "Days" shall mean calendar days.
Property Tax Roll: "Property Tax Roll" shall mean the assessed
values of parcels on the secured and unsecured lien date rolls as
reported by the County.
Proprietary Information: 'Proprietary Information" shall be the
reports, technical information, compilations of data, methodologies,
formula, software, programs, technologies, and other processes
previously designed and developed by CONTRACTOR and used in the
performance of the services hereunder.
Successor Agency: "Successor Agency" means the City's
administration pursuant to Section 34176 of the Health and Safety
Code of the former community redevelopment agency of CITY).
Recovered/ Reallocated Revenue: "Recovered or Reallocated
Revenue" shall mean additional revenue received as a result of an
audit or review of properties submitted for correction or for corrections
due erroneous calculations or incorrect methods of distributing
revenue discovered by the CONTRACTOR and then made by county
agencies which result in a return of additional revenue to the AGENCY.
Reviews of AGENCY administered pass throughs are performed to
ensure the correctness of distributions being made to participating
agencies.
Scope of Services: "Scope of Services" shall mean all of the Base
Services specified in Section 2.0, the Optional Services in Section 3.0,
the Additional Services in Section 4.0, or any other services rendered
hereunder.
TRA: "Tax Rate Area" shall mean the area subject to the tax rate.
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2.0 BASE SERVICES
The CONTRACTOR shall perform all of the following duties as part of
the Base Services provided hereunder, unless otherwise specified in writing
by the Contract Officer:
2.1 Analysis And Identification Of Misallocation Errors
(Contingent Feel
(a) In the first year of this Agreement, and as
necessary thereafter but not less than once every five (5) 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.
(b) CONTRACTOR shall annually reconcile the annual
auditor- controller assessed valuations report to the assessor's lien
date rolls and identify discrepancies.
(c) CONTRACTOR shall annually 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) CONTRACTOR may audit general fund or tax
increment property tax revenue or other revenues attributable to the
CITY departments, districts, (including but not limited to base year
value audits; administration of tax sharing agreements; tax increment
allocation reviews; county allocation and payments reviews).
2.2 Annual Services (Fixed Feea
Annually, after the Property Tax Roll is available:
(a) CONTRACTOR shall establish a Data Base for CITY
available through CONTRACTOR'S online property tax application
(b) Utilizing the Data Base, CONTRACTOR will provide:
(1) A listing of the major property owners in the
CITY, including the assessed value of their property.
(2) A listing of the major property taxpayers,
including an estimate of the property taxes.
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(3) A listing of property tax transfers which
occurred since the prior lien date.
(4) A listing of parcels that have not changed
ownership since the enactment of Proposition XIIIA.
(5) A comparison of property within the CITY by
county -use code designation.
(6) 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 CITY's preparation of Gann
(Propositions 4 and 111) State Appropriation Limit calculations.
(7) A listing of multiple owned parcels.
(8) A listing of absentee owner parcels.
(9) 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.
(10) Development of historical trending reports
involving taxable assessed values for the CITY, median and
average sales prices, and related economics trends.
(11) 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.
(12) Budget forecasting models for single and 5 -
year revenue projections for the city, successor agency and the
VLF in Lieu adjusted amount.
2.3 Successor Agency Services
Successor Agency Services including but not limited to:
(a) Annual tax increment projections and, as requested, cash
flow analysis for the Successor Agency by Project Area
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(b) Review of Redevelopment Obligation Payment Schedules
(ROPS) as requested.
(c) Provide property tax information to the Oversight Board at
the direction of the Successor Agency
(d) Provide access to the Oversight Board to City and former
redevelopment agency documents at the direction of the
Successor Agency
(e) Monitor the County distribution of tax -sharing revenues to
the taxing entities of the former redevelopment agency
(f) Advice and consultation on the City/Successor Agency's
preparation of required reports, such as revenue projections;
review of Recognized Obligation Payment Schedules (ROPS),
submittals to the Oversight Board and/or County or State
agencies, and new or revised legislative requirements
(g) Analysis of legislative and judicial matters impacting
Redevelopment Property Tax Trust Fund (RPTTF) revenues to
the Successor Agency and to the City.
The CONTRACTOR shall perform the following services quarterly:
(a) A listing of property tax appeals filed on properties
in the CITY (selected counties).
(b) A listing of property transfers that have occurred
since the last report.
(c) Monthly update of CONTRACTOR'S web -based software
program to include parcel transfer data and, in select counties, appeal updates.
2.5 On -Going Consultation (Fixed Fee)
During the term of this Agreement, CONTRACTOR will serve as the
CITY's resource staff on 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.
3.0 OPTIONAL SERVICES
The following services are available on a time and materials basis:
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Generation of specialized data -based reports which would require
additional programming, the purchase of additional data, costs for county
staff research, or similar matters not necessary to carry out services outlined
in Section 2.0.
3.2 County Research
Any research with County agencies for which CONTRACTOR does not
have a current database.
3.3 Bond Services
Bond services are available for a fixed negotiated fee, including:
(a) Tax Allocation Bonds fiscal consultant reports
(b) Mello -Roos Special Tax studies
3.4 Additional Meetings Requested
Meetings in excess of the annual meeting to review the analysis of
property tax data, trending information, and other findings with
AGENCY shall be considered an Optional Service.
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CITY shall have the right at any time during the performance of the
services, without invalidating this Agreement, to order extra work beyond
that specified in the Scope of Services or make changes by altering, adding
to or deducting from said work. No such extra work may be undertaken
unless a written order is first given by the Contract Officer to the Contractor,
incorporating therein any material adjustment in the contract and/or the
time to perform this Agreement, which said adjustments are subject to the
written approval of the Contractor. Any increase in compensation of up to
$75,000, or in the time to perform of up to one hundred eighty (180) days
may be approved by the Contract Officer. Any greater increases, taken
either separately or cumulatively must be approved by the City Council. It is
expressly understood by Contractor that the provisions of this Section shall
not apply to services specifically set forth in the Scope of Services or
reasonably contemplated therein.
5.0 OBLIGATIONS OF THE PARTIES WITH RESPECT TO SERVICES
CITY agrees to provide the following information:
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1. Current CITY maps and zoning map;
2. A copy of reports received by the CITY annually from the
Auditor- Controller's office detailing assessed values
(secured, unsecured and utilities), as well as unitary
values for reconciliation analysis;
3. Parcel listing and maps of CITY parcel annexations since
the lien date roll;
4. 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;
5. A listing of the CITY levies assessment districts and direct
assessments.
5.2 Compliance with Law
All services rendered hereunder shall be provided in accordance with
all ordinances, resolutions, statutes, rules, and regulations of the CITY and
any Federal, State or local governmental agency having jurisdiction in effect
at the time service is rendered.
5.3 License, Permits, Fees and Assessments
CONTRACTOR shall obtain such licenses, permits and approvals (collectively
the "Permits") as may be required by law for the performance of the services
required by this Agreement. CITY shall assist CONTRACTOR in obtaining such
Permits, and CONTRACTOR shall absorb all fees, assessments and taxes
which are necessary for any Permits required to be issued by CITY.
5.4 Further Responsibilities of Parties
Both parties agree to use reasonable care and diligence to perform
their respective obligations under this Agreement. Both parties agree to act
in good faith to execute all instruments, prepare all documents and take all
actions as may be reasonably necessary to carry out the purposes of this
Agreement. Unless hereafter specified, neither party shall be responsible for
the service of the other.
6.0 CONSIDERATION
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6.1 Base Fixed Fee Services
CONTRACTOR shall provide the Base Services described in Section 2.0
above, for a fixed annual fee of $20,700 (invoiced quarterly).
The Base Fixed Fee shall be adjusted annually by the California
Consumer Price Index (CCPI) for all items as determined by the California
Department of Industrial Relations as measured February to February by the
California All Urban Consumers index.
6.2 Base Contingent Fee Services
For Base Services pursuant to Section 2.1 which are payable on a
contingent basis, CONTRACTOR shall receive 25 percent of net general fund
attributable to CITY departments, districts, or funds recovered or reallocated
which are directly or indirectly 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; county 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 within thirty (30) days after CITY receives its first remittance advice
during the fiscal year for which the correction applies. The fee for
documentary transfer tax audit recovery services will be 25% of
documentary transfer tax recovered as a result of our audit efforts.
6.3 Optional Services
Fees for Optional Services as outlined in Services in Section 3.0 above
(except Section 3.4) shall be billed at the following hourly rates:
Partner $250 per hour
Principal $225 per hour
Associate $175 per hour
Programmer $200 per hour
Senior Analyst $125 per hour
Analyst $90 per hour
Administrative $70 per hour
Hourly rates are exclusive of expenses and are subject to adjustment
by CONTRACTOR annually. On July 1st of each year CONTRACTOR shall
provide CITY with an updated schedule of hourly rates. The rates will not be
increased by more than five percent (5%) per year. In addition, expenses
for Optional Services shall be billed at actual incurred costs.
6.4 Fees for Bond Services
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Services under Section 3.3 above will be determined depending upon
the complexity of the bond issue and the time available for completion of the
task and will be mutually agreed to be the parties.
6.5 Indirect Expenses
Except as specified above, no other charges shall be made for direct or
indirect expenses incurred by CONTRACTOR in performing the services in the
Scope of Services including for administrative overhead, salaries of
CONTRACTOR'S employees, travel expenses or similar matters.
6.6 Due Date
All fees are due 30 days immediately following billing. All amounts that
are not paid when due shall accrue interest from the due date at the rate of
one percent per month (12% per annum).
7.0 TERM PERFORMANCE SCHEDULE
7.1 Time of Essence
Time is of the essence in the performance of this Agreement.
7.2 Schedule of Performance
CONTRACTOR shall commence the services pursuant to this Agreement
upon receipt of a written notice to proceed and shall perform all services
within the time period(s) established in the "Schedule of Performance"
attached hereto as Exhibit "A", and incorporated herein by this reference.
When requested by the CONTRACTOR, extensions to the time period(s)
specified in the Schedule of Performance may be approved in writing by the
Contract Officer but not exceeding one hundred eighty (180) days
cumulatively.
7.3 Force Maieure
The time period(s) specified in the Schedule of Performance for
performance of the services rendered pursuant to this Agreement shall be
extended because of any delays due to unforeseeable causes beyond the
control and without the fault or negligence of the CONTRACTOR, including,
but not restricted to, acts of God or of the public enemy, unusually severe
weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots,
strikes, freight embargoes, wars, litigation, and/or acts of any governmental
agency, including the CITY, if the CONTRACTOR shall within ten (10) days of
the commencement of such delay notify the Contract Officer in writing of the
causes of the delay. The Contract Officer shall ascertain the facts and the
extent of delay and extend the time for performing the services for the
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period of the enforced delay when and if in the judgment of the Contract
Officer such delay is justified.
7.4 Term
Unless earlier terminated in accordance with Section 11.6 of this
Agreement, this Agreement shall continue in full force and effect for five (5)
years.
8.0 COORDINATION OF WORK
8.1 Representative of Contractor
The following principals of CONTRACTOR are hereby designated as
being the principals and representatives of CONTRACTOR authorized to act
in its behalf with respect to the work specified herein and make all decisions
in connection therewith:
Nichole Cone-Morishita, Vice President
HdL COREN & CONE
120 S. State College Blvd., Suite 200
Brea, CA 92821
It is expressly understood that the experience, knowledge, capability
and reputation of the foregoing principals were a substantial inducement for
CITY to enter into this Agreement. Therefore, the foregoing principals shall
be responsible during the term of this Agreement for directing all activities of
CONTRACTOR and devoting sufficient time to personally supervise the
services hereunder. For purposes of this Agreement, the foregoing principals
may not be replaced, nor may their responsibilities be substantially reduced
by CONTRACTOR without the express written approval of CITY.
The Contract Officer shall be such person as may be designated by the
City Manager of CITY. It shall be the CONTRACTOR'S responsibility to assure
that the Contract Officer is kept informed of the progress of the performance
of the services and the CONTRACTOR shall refer any decisions which must
be made by CITY to the Contract Officer. Unless otherwise specified herein,
any approval of CITY required hereunder shall mean the approval of the
Contract Officer. The Contract Officer shall have authority to sign all
documents on behalf of the CITY required hereunder to carry out the terms
of this Agreement.
8.3 Prohibition Against Subcontracting or Assignment
The experience, knowledge, capability and reputation of CONTRACTOR,
its principals and employees were a substantial inducement for the CITY to
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enter into this Agreement. Therefore, CONTRACTOR shall not contract with
any other entity to perform in whole or in part the services required
hereunder without the express written approval of the CITY. In addition,
neither this Agreement nor any interest herein may be transferred, assigned,
conveyed, hypothecated, or encumbered voluntarily or by operation of law,
whether for the benefit of creditors or otherwise, without the prior written
approval of CITY. Transfers restricted hereunder shall include the transfer to
any person or group of persons acting in concert of more than fifty percent
(50%) of the present ownership and/or control of CONTRACTOR, taking all
transfers into account on a cumulative basis. In the event of any such
unapproved transfer, including any bankruptcy proceeding, this Agreement
shall be void. No approved transfer shall release the CONTRACTOR or any
surety of CONTRACTOR of any liability hereunder without the express
consent of CITY.
8.4 Independent Contractor
Neither the CITY nor any of its employees shall have any control over
the manner, mode or means by which CONTRACTOR, its agents or
employees, perform the services required herein, except as otherwise set
forth herein. CITY shall have no voice in the selection, discharge, supervision
or control of CONTRACTOR'S employees, servants, representatives or
agents, or in fixing their number, compensation or hours of service.
CONTRACTOR shall perform all services required herein as an independent
CONTRACTOR of CITY and shall remain at all times as to CITY a wholly
independent CONTRACTOR with only such obligations as are consistent with
that role. CONTRACTOR shall not at any time or in any manner represent
that it or any of its agents or employees are agents or employees of CITY.
CITY shall not in any way or for any purpose become or be deemed to be a
partner of CONTRACTOR in its business or otherwise or a joint venturer or a
member of any joint enterprise with CONTRACTOR.
9.0 INSURANCE AND INDEMNIFICATION
9.1 Insurance
The CONTRACTOR shall procure and maintain, at its sole cost and
expense, in a form and content satisfactory to CITY, during the entire term
of this Agreement including any extension thereof, the following policies of
insurance:
Comprehensive General Liability Insurance. including coverage for premises and
operations, products and completed operations, personal and advertising injury,
bodily injury and property damage, with a minimum policy limit of $3,000,000
per occurrence and $5,000,000 in the annual general aggregate (occurrence
form). A combination of primary, excess and umbrella limits are acceptable to
satisfy minimum policy limit requirements.
(a)Worker's Compensation Insurance. A policy of worker's compensation
insurance in such amount as will fully comply with the laws of the
State of California and which shall indemnify, insure and provide legal
defense for both the CONTRACTOR and the CITY against any loss,
claim or damage arising from any injuries or occupational diseases
occurring to any worker employed by or any persons retained by the
CONTRACTOR in the course of carrying out the work or services
contemplated in this Agreement.
(b)Automotive Insurance. including coverage for all non -owned and hired
automobiles used in the performance of this Agreement and with
minimum limits of $1,000,000 combined single limit each accident.
(c) Errors and Omissions (Professional Liability). A policy of professional
liability issuance written on a claims made basis in an amount not less
than One Million Dollars ($1,000,000).
(d)General Requirements. All of the above policies of insurance shall be
primary insurance and shall name the CITY, its officers, employees and
agents as additional insureds. The insurer shall waive all rights of
subrogation and contribution it may have against the CITY, its officers,
employees and agents and their respective insurers. All of said policies
of insurance shall provide that said insurance may not be amended or
cancelled without providing thirty (30) days prior written notice by
registered mail to the CITY. In the event any of said policies of
insurance are cancelled, the CONTRACTOR shall, prior to the
cancellation date, submit new evidence of insurance in conformance
with this Section 9.0 to the Contract Officer. No work or services under
this Agreement shall commence until the CONTRACTOR has provided
the CITY with Certificates of Insurance or appropriate insurance
binders evidencing the above insurance coverages and said Certificates
of Insurance or binders are approved by the CITY.
9.2 Indemnification
CONTRACTOR agrees to indemnify the CITY, its officers, agents and
employees against, and will hold and save them and each of them harmless
from, any and all actions, suits, claims, damages to persons or property,
losses, costs, penalties, obligations, errors, omissions or liabilities, (herein
"claims or liabilities") that may be asserted or claimed by any person, firm
or entity arising out of or in connection with the negligent performance of
the work, operations or activities of CONTRACTOR, its agents, employees,
subcontractors, or invitees, provided for herein, or arising from the
negligent acts or omissions of CONTRACTOR hereunder, or arising from
CONTRACTOR'S negligent performance of or failure to perform any term,
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provision, covenant or condition of this Agreement, whether or not there is
concurrent passive or active negligence on the part of the CITY, its officers,
agents or employees but excluding such claims or liabilities arising from the
sole negligence or willful misconduct of the CITY, its officers, agents or
employees, who are directly responsible to the CITY.
Insurance or bonds required by this Agreement shall be satisfactory
only if issued by companies qualified to do business in California, rated "A"
or better in the most recent edition of Best Rating Guide, The Key Rating
Guide or in the Federal Register, and only if they are of a financial category
Class VII or better, unless such requirements are waived by the Risk
Manager of the CITY due to unique circumstances. In the event the Risk
Manager of CITY ("Risk Manager") determines that the work or services to
be performed under this Agreement creates an increased or decreased risk
of loss to the CITY, the CONTRACTOR agrees that the minimum limits of the
insurance policies and the performance bond required by this Section 9.0
may be changed accordingly upon receipt of written notice from the Risk
Manager; provided that the CONTRACTOR shall have the right to appeal a
determination of increased coverage by the Risk Manager to the CITY
Council of CITY within 10 days of receipt of notice from the Risk Manager.
10.0 RECORDS AND REPORTS
10.1 Reports
CONTRACTOR shall periodically prepare and submit to the Contract
Officer such reports concerning the performance of the services required by
this Agreement as the Contract Officer shall require.
10.2 Records
CONTRACTOR shall keep, and require subcontractors to keep, such
books and records as shall be necessary to perform the services required by
this Agreement and enable the Contract Officer to evaluate the performance
of such services. The Contract Officer shall have full and free access to such
books and records at all times during normal business hours of CITY,
including the right to inspect, copy, audit and make records and transcripts
from such records. Such records shall be maintained for a period of three (3)
years following completion of the services hereunder, and the CITY shall
have access to such records in the event any audit is required.
10.3 Non -Disclosure of Proprietary Information
In performing its duties under this Agreement, CONTRACTOR will
produce reports, technical information and other compilations of data to
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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, software, 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, 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, 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 consistent with its
obligations under the California Public Records Act and related disclosure
laws, it will undertake all necessary and appropriate steps to maintain the
proprietary nature of CONTRACTOR'S Proprietary Information.
Any use of the Proprietary Information or any other reports, records,
documents, or other materials prepared by CONTRACTOR hereunder for
other projects and/or use of uncompleted documents without specific written
authorization by the CONTRACTOR will be at the CITY's sole risk and without
liability to CONTRACTOR, and the CITY shall indemnify the CONTRACTOR for
all damages resulting therefrom.
10.4 Propriety Information shall EXCLUDE reports and all other
documents or information produced by CONTRACTOR that is specifically
intended to be available to the general public as determined by the
CONTRACTOR. Release of Documents Pursuant to Public Records Act
Notwithstanding any other provision in this Agreement, all obligations
relating to disclosure of Proprietary Information remain subject to the
Freedom of Information Act or California Public Records Act, Cal. Gov't Code
§§ 7920.000 et seq. (collectively, the "PRA"). The Parties intend that if CITY
is served with a request for disclosure under the PRA, or any similar statute,
the CITY in good faith will make the determination as to whether the
material is disclosable or exempt under the statute and shall resist the
disclosure of Proprietary Information which is exempt from disclosure to the
extent allowable under the law. CITY shall advise CONTRACTOR in writing
five (5) days prior to the intended disclosure of any decision to disclose
Proprietary Information, and the reasons therefore, and if CONTRACTOR
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then timely advises CITY in writing that it objects to the disclosure, CITY
shall not disclose the information. In such case, CONTRACTOR shall then be
solely liable for defending the non- disclosure and shall indemnify and hold
CITY harmless for such nondisclosure.
11.0 ENFORCEMENT OF AGREEMENT
11.1 California Law
This Agreement shall be construed and interpreted both as to validity
and to performance of the parties in accordance with the laws of the State of
California. Legal actions concerning any dispute, claim or matter arising out
of or in relation to this Agreement shall be instituted in the Superior Court of
the County of Los Angeles, State of California, or any other appropriate court
in such county, and CONTRACTOR covenants and agrees to submit to the
personal jurisdiction of such court in the event of such action.
11.2 Disputes
In the event of any dispute arising under this Agreement, the injured
party shall notify the injuring party in writing of its contentions by submitting
a claim therefor. The injured party shall continue performing its obligations
hereunder so long as the injuring party commences to cure such default
within ten (10) days of service of such notice and completes the cure of such
default within forty-five (45) days after service of the notice, or such longer
period as may be permitted by the injured party; provided that if the default
is an immediate danger to the health, safety and general welfare, such
immediate action may be necessary. Compliance with the provisions of this
Section shall be a condition precedent to termination of this Agreement for
cause and to any legal action, and such compliance shall not be a waiver of
any party's right to take legal action in the event that the dispute is not
cured, provided that nothing herein shall limit CITY's or the CONTRACTOR'S
right to terminate this Agreement without cause pursuant to Section 11.6.
11.3 Waiver
No delay or omission in the exercise of any right or remedy by a
nondefaulting party on any default shall impair such right or remedy or be
construed as a waiver. A party's consent to or approval of any act by the
other party requiring the party's consent or approval shall not be deemed to
waive or render unnecessary the other party's consent to or approval of any
subsequent act. Any waiver by either party of any default must be in writing
and shall not be a waiver of any other default concerning the same or any
other provision of this Agreement.
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11.4 Rights and Remedies are Cumulative
Except with respect to rights and remedies expressly declared to be
exclusive in this Agreement, the rights and remedies of the parties are
cumulative and the exercise by either party of one or more of such rights or
remedies shall not preclude the exercise by it, at the same or different
times, of any other rights or remedies for the same default or any other
default by the other party.
In addition to any other rights or remedies, either party may take legal
action, in law or in equity, to cure, correct or remedy any default, to recover
damages for any default, to compel specific performance of this Agreement,
to obtain declaratory or injunctive relief, or to obtain any other remedy
consistent with the purposes of this Agreement.
11.6 Termination Prior to Expiration of Term
This Section shall govern any termination of this Agreement. The Parties
reserve the right to terminate this Agreement at any time, with or without
cause, upon forty-five (45) days' written notice to the non -terminating
party, except that where termination is for cause, the Parties will comply
with the dispute resolution process in Section 11.2. Upon issuance of any
notice of termination, CONTRACTOR shall immediately cease all services
hereunder except such as may be specifically approved by the Contract
Officer. The CONTRACTOR shall be entitled to compensation for all services
rendered prior to the effective date of the notice of termination and for any
services authorized by the Contract Officer thereafter. In the event of
termination without cause pursuant to this Section, the terminating party
need not provide the non- terminating party with the opportunity to cure
pursuant to Section 11.2.
11.7 Attorneys' Fees
If either party to this Agreement is required to initiate or defend or
made a party to any action or proceeding in any way connected with this
Agreement, the prevailing party in such action or proceeding, in addition to
any other relief which may be granted, whether legal or equitable, shall be
entitled to reasonable attorney's fees. Attorney's fees shall include attorney's
fees on any appeal, and in addition a party entitled to attorney's fees shall
be entitled to all other reasonable costs for investigating such action, taking
depositions and discovery and all other necessary costs the court allows
which are incurred in such litigation. All such fees shall be deemed to have
accrued on commencement of such action and shall be enforceable whether
or not such action is prosecuted to judgment.
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12.1 Non -liability of CITY Officers and Employees
No officer or employee of the CITY shall be personally liable to the
CONTRACTOR, or any successor in interest, in the event of any default or
breach by the CITY or for any amount which may become due to the
CONTRACTOR or to its successor, or for breach of any obligation of the
terms of this Agreement.
12.2 Conflict of Interest
No officer or employee of the CITY shall have any financial interest,
direct or indirect, in this Agreement nor shall any such officer or employee
participate in any decision relating to the Agreement which effects his
financial interest or the financial interest of any corporation, partnership or
association in which he is, directly or indirectly, interested, in violation of any
State statute or regulation. The CONTRACTOR warrants that it has not paid
or given and will not pay or give any third party any money or other
consideration for obtaining this Agreement.
CONTRACTOR covenants that, by and for itself, its heirs, executors,
assigns, and all persons claiming under or through them, that there shall be
no discrimination against or segregation of, any person or group of persons
on account of race, color, creed, religion, sex, marital status, national origin,
or ancestry in the performance of this Agreement. CONTRACTOR shall take
affirmative action to ensure that applicants are employed and that
employees are treated during employment without regard to their race,
color, creed, religion, sex, marital status, national origin, or ancestry.
13.0 MISCELLANEOUS PROVISIONS
13.1 Notice
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Any notice, demand, request, document, consent, approval, or
communication either party desires or is required to give to the
other party or any other person shall be in writing and either served
personally or sent by prepaid, first-class mail addressed as follows:
CITY City of La Quinta
78-495 Calle Tampico
La Quinta, California 92253
CONTRACTOR: HdL COREN & CONE
120 S. State College Blvd., Ste 200
Brea, CA 92821
Either party may change its address by notifying the other
party of the change of address in writing. Notice shall be deemed
communicated at the time personally delivered or in seventy-two
(72) hours from the time of mailing if mailed as provided in this
Section.
13.2 Interpretation
The terms of this Agreement shall be construed in accordance
with the meaning of the language used and shall not be construed
for or against either party by reason of the authorship of this
Agreement or any other rule of construction which might otherwise
apply.
13.3 Integration; Amendment
It is understood that there are no oral agreements between
the parties hereto affecting this Agreement and this Agreement
supersedes and cancels any and all previous negotiations,
arrangements, agreements and understandings, if any, between
the parties, and none shall be used to interpret this Agreement.
This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing.
13.4 Severabilitx
In the event that any one or more of the phrases, sentences,
clauses, paragraphs, or sections contained in this Agreement shall
be declared invalid or unenforceable by a valid judgment or decree
of a court of competent jurisdiction, such invalidity or
unenforceability shall not affect any of the remaining phrases,
sentences, clauses, paragraphs, or sections of this Agreement
which are hereby declared as severable and shall be interpreted to
carry out the intent of the parties hereunder unless the invalid
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provision is so material that its invalidity deprives either party of
the basic benefit of their bargain or renders this Agreement
meaningless.
13.5 Corporate Autbot tv
The persons executing this Agreement on behalf of the parties hereto
warrant that (i) such party is duly organized and existing, (ii) they are
duly authorized to execute and deliver this Agreement on behalf of said
party, (iii) by so executing this Agreement, such party is formally
bound to the provisions of this Agreement, and (iv) the entering
into this Agreement does not violate any provision of any other
Agreement to which said party is bound.
IN WITNESS WHEREOF, the parties have executed and
entered into this Agreement as of the date first written above.
CITY OF LA QUINTA
City Manager - Jon McMillen
CONTRACTOR:
HdL COREN & CONE
A California Corporation
.� -awl, z�
APPROVED AS TO FORM: ATTEST TO CITY MANAGER's SIGNATURE:
�V r - -
William H. Ihrke, City Attorney Monika Radeva, City
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EXHIBIT "A"
SCHEDULE OF PERFORMANCE
TIMELINE FOR DELIVERABLES
July/August Data available for purchase from counties
September 30 Data available on HdLCC's web -based property tax application
September/October Unsecured audits performed and forwarded to county assessor
October Appeals quarterly updates emailed in counties where the data is available
October -February Delivery of preliminary property tax reports
January Appeals quarterly updates emailed in counties where the data is available
January/February General Fund Budget Projections
April Appeals quarterly updates emailed in counties where the data is available
April/May Final Books - Addendums emailed to clients
July Appeals quarterly updates emailed in counties where the data is available
Ongoing Secured Audits- City
Property sales reports
City and Successor Agency mid -year budget reviews and budget projections
Analytical work at the request of clients
Monthly updates of database with property sale information
CONSENT CALENDAR ITEM NO. 5
City of La Quinta
CITY COUNCIL MEETING: December 6, 2022
STAFF REPORT
AGENDA TITLE: APPROVE CONTRACT SERVICE AGREEMENT TO EXTEND
PROPERTY TAX CONSULTING AND AUDIT SERVICES WITH HDL COREN & CONE
RECOMMENDATION
Approve Service Agreement to extend property tax consulting and audit
services with HdL Coren & Cone and authorize the City Manager to execute the
agreement.
EXECUTIVE SUMMARY
• Since 2017, HdL Coren & Cone (HdLCC) has provided property tax
verification, collections, and revenue projection services; the City also
uses HdL for sales tax verification.
• This service would ensure that the City continues to receive all eligible
property tax payments.
FISCAL IMPAC'i
The total cost for the agreement would be $20,500 per year, plus an annual CPI
adjustment, for five years (Attachment 1). Funds are available in the Finance
department's consultant account (101-1006-60104). Additionally, property tax
remitted to the City as a direct result of a vendor audit is subject to a 25% fee
of the net tax revenue recovered.
BACKGROUND/ANALYSIS
Property tax revenue is the City's second largest revenue source. The City
currently contracts with HdL, an affiliate company of HdLCC, for sales tax
verification and forecasting services. This contract would provide City property
tax verification and forecasting, including:
• Verifying that the City receives the correct amount of property tax
revenue from each non-exempt property within the City;
• Preparing annual property tax revenue projections;
• Forecasting sale price and foreclosure trends;
• Identifying major property taxpayers, property tax transfers, parcels that
have not changed ownership since 1978 (Proposition 13), and parcels
with new permits/construction; and
• Maintaining an online database to research and verify property taxes;
and
HdLCC provides these services to over 200 California cities, counties and special
districts. Further, their team works with key Riverside County staff and is
thoroughly familiar with their property tax procedures.
ALTERNATIVES
Council may elect to not continue verifying property tax collections.
Prepared by: Claudia Martinez, Finance Director
Approved by: Jon McMillen, City Manager
Attachment: 1. Contract Service Agreement for Property Tax
Consulting/Auditing