03-19-2002 RA RPT 07 - Laserfiche WebLink

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CITY OF RIVERSIDE Riverside bad AI~Amerlca c; , 1111. AGENCY/COUNCIL MEMORANDUM People Serving People 1998 HONORABLE MAYOR, AND CITY COUNCIL AND AGENCY MEMBERS DATE: March ]9,2002 ITEM NO: 7 SUBJECT: PROPOSED CONTRACT FOR PROPERTY TAX SERVICES FOR THE CITY OF RIVERSIDE AND THE RIVERSIDE REDEVELOPMENT AGENCY BACKGROUND: The City and the Riverside Redevelopment Agency (RDA) require the services of a consultant (HdL Coren & Cone) to expand the revenue enhancement efforts currently being provided under its contract with the City to include an audit of property tax and tax increments for the City and the RDA. The purpose of the property tax audit service is to assist the City and RDA to recover all of the revenue to which it is entitled from it property tax and RDA tax increments as a result of misallocation of property taxes and tax increment monies. Due to time limitations on the City's and RDA's ability to recover revenue to which they are entitled, the City and RDA mutually desire to have the revenue enhancement audits conducted as soon as possible. The consultant will prepare and deliver to the City and RDA, property tax data based reports and data analysis required to effectively manage the City's property tax base and to recover misallocated tax revenues within the City and redevelopment areas. This agreement is for a period of two (2) years and may be extended thereafter for additional two year terms with the specific written approval of the City and/or RDA. The cost of the property tax audit services will be a $1,000 set up fee each year of the contract. Any additional compensation to the consultant is predicated upon the City/RDA receiving additional revenues as a direct result of the Consultant's audit service (on a contingency fee basis). The contingency fee is 25% of the incremental revenue actually received by the City and/or the RDA. The 25% applies to the additional revenue realized by the City or RDA during the year in which the property tax misallocations are corrected and for first three calendar years following those corrections by the County of Riverside. The consultant will also pursue recovery of revenue for eligible prior periods if any. The contingency fee will apply to retroactive recoveries only in the amount of revenues actually recovered by the City/RDA. The consultant's expenses incurred in the provision of property tax audit services are the sole responsibility of the consultant. Any special reports prepared by the Consultant, as may be needed by the City and/or RDA, will be at the specifiC request of the City and/or RDA at the rates stated in Exhibit C of Attachment 1. Any expenses incurred by the consultant in the preparation and delivery of those special reports will be negotiated by the parties and must have the written approval of the City and/or RDA. FISCAL IMP ACT: This Agreement is expected to produce additional revenues to the City as a result of consultant's property tax audit work. The cost of the consultant's services will be recovered from the revenues earned for the City/RDA as a result of the consultant's efforts. Aside from the annual set up fee of 7-1