AgdaPkt 2020-12-21 Amended Joint SA PFA

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6.A. - Page 5 of 80 HdL Coren & Cone provides property tax management services to over 240 California public agencies. The company consists of a team of seasoned professionals with decades of experience in every aspect of local government including finance, management, auditing, economic development, redevelopment and legislative advocacy. Greater Level of Engagement Staff has determined that additional consulting support is needed, especially with the handling of Use Tax and Property Tax. In addition to forecasting, more discussion and guidance is preferred with respect to Property Tax consulting services. Paula Cone, President of Coren & Cone, is the consultant who will be responsible for providing property tax consulting services to the City. Ms. Cone has 30 years of property tax analysis, local agency interface, and audit review experience; she is a regular contributor to the California Society of Municipal Finance Officers and the League of California Cities; and has presented to numerous organizations on the topic of property tax revenue. In regards to performance results, Ms. Cone's team has identified various jurisdictional and boundary errors for clients over the last 20 years, which has resulted in redistribution of $52.6 million in, net tax revenues to client agencies. In the recent past, the City has looked to the Use Tax consultant to help gain more traction with respect to the Business Cooperation Program. In order to better assess and realize the potential of this revenue stream, a more "hands-on" approach is desired. After several interviews, staff believes HdL would take a more engaged approach to our Business Cooperation Program, which could result in higher use tax revenues for the City Though the name has changed several times, Redwood City has worked with MuniServices, LLC since at least 1987. Staff believes it is wise to change consultants periodically to avoid complacency and allows the City to learn what other services and/or best practices could be available from other consultants. Because of the needs and opportunities noted above, as well as performance concerns, staff concluded that HdL Companies and HdL Coren & Cone would best meet the City's needs for revenue consulting and auditing services. Closeout of MuniServices, LLC agreement In order to continue work on petitions currently in progress with the CDTFA, a simple No -Fee agreement with MuniServices, LLC is needed so that they are able to continue to view the necessary data. Per the terms of the most recent Revenue Enhancement contract with MuniServices, LLC, the City is to pay a contingency fee of 15 percent for all amounts identified and corrected through the efforts of MuniServices, LLC for 8 quarters after the date of correction. Therefore, it is likely that the City will continue to pay this contingency fee for another 1- 2 years after the transition to HdL Companies. In order to prevent the City from paying twice for the same petition, City staff and MuniServices, LLC will provide HdL with a list of outstanding petitions to ensure that there is no overlap between the efforts of MuniServices, LLC and HdL. In addition to the No -Fee Agreement, a y Resolution is needed so the CDTFA can provides required data to MuniServices, LLC to ensure the existing petitions can be completed and to HdL for future sales and transaction and use tax. Page 5 of 7 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 14