Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with HdL Coren & Cone in an Amount Not to Exceed $135,000 for Review and Analysis of Property Tax Revenues. (Finance 2410)
In an amount not to exceed 135,000 for review and analysis of property tax revenues. Nebraska. Okay. Thank you, Madam Mayor. So I just wanted a little more information about this. What? So this is a steady hello, Ms.. Adair, who's our finance director? Um, uh, this is a study looking into. Well, you can probably tell us that we're capturing all of the property tax. We should, because it's the largest source of the general fund. Is that that correct? So, hello, council members. Madame Mayor Allen, our dear finance director. This particular contract actually provides us with so hd all corn and corn. And what they provide is they assist us with projections of the property taxes. They review the taxes that are assessed by the county in making sure that the city receives its fair share, whether it's for specific properties or things such as equipment and things like that, that is not necessarily secured by, let's say, a single family home. So they look into those and make sure it does come to the city if it's within the city. City limits, if you wish. They also provide us with on the annual basis with a report that breaks down things like general fund related properties and revenues, as well as what used to be a redevelopment agency, currently a successor agency, do still provide us all the information that relates to it. It assists us to also figure out how much money is going to come in in order to pay successor agency obligations. They provide updates. They also provide us with things like This is what we expect next year's assessments will be or what they expect. The CPI increase would be, so they assist cities with that information as well. So it's a variety of services. One of the things that they do is they do sometimes audits. And actually, I guess I would say fortunately for Alameda, within the prior period that they were under the contract, we only had twice that they actually had to go in and do certain corrections. So usually it happens at extra charge outside of regular agreements, but we've only got it twice and the dollar amounts were very minimal. So when you say corrections, does that mean that we. And too much tax. Usually that we didn't get enough or somebody was paying it to another entity, let's say outside of city of Alameda. Let's say it would have may have been Oakland. So they would make sure and recapture those to make sure that she'll comes to the city. So I'm a couple questions. So we've used this firm to do this kind of work in the past. That's correct. And is the compensation structure always the same? Because what caught my eye is that this is a five year contract. Five year. Five years, and we're paying $18,250 per year, plus 25% of the net revenues recovered by the consultant. Is that. That's correct. As and as I mentioned, we only had a twice where they actually had to come in and recover certain property taxes on our behalf within the last five years prior to that. So in I believe the amount was all we received about like $800. So it was very. So it's not likely. It's yes, I mean. I mean. It's possible. But and that's why we have them, because we cannot look at every single property and that's kind of their job. They actually get County Assessor's maps and everything like that and they look whether it's actually paid correctly, whether the appropriate addresses are applied correctly. And then my one request is, can we get an update, say, on an annual basis of what the results of their their review were? I'm sure you. Do. And I think it can probably just be a consent calendar item even. But I would just like to have that. In my city manager just mentioned, we do do it as a part of a budget update. In general, we can incorporate that. But generally when we look at the property taxes for the budget, that's one of the sources that we'll. Rely on other than what we know internally as well within our own, I would say, economy. And so a lot of the information they provide ends up in the budget, in projections and assessing us. And we can do more in the budget about what the long term strategy is from the consultants point of view. I was just more interested in on a year yearly basis, what is it that they were able to uncover? Oh, okay. Like the recovery part? Yeah. Yeah. Can you confirm that there's a cap? I understand there's a cap not to exceed 135,000 overall. That's correct. So the expectation is, as you've mentioned, it's about over a little over $18,000 per year and plus any recoveries. So what we were trying to do is figure out $18,000, how much would that be and give a little bit of buffer in case would you have recoveries that we have to make a payment? So I don't necessarily expect it to be that high and it's obviously limited to a five year period. In addition to that, they do have in year three and four and five a CPI increase for their fees. Actually, $18,000 stayed pretty much consistent with the prior. Five year contract. It actually has increased. So this would be, I think, reasonable that it's, you know, increased and it's increased by California CPI, not even Bay Area CPI, which normally is lower. Thank you. Any other questions. Dear? Thank you. Do we have a motion? I move that we accept the recommendation to authorize the city manager to execute a five year agreement with HDR. Corrine and Cohn. Remember De Sock seconded all this in favor. My motion carries unanimously. Thank you. The next item that was pulled is five F and I pulled that because I wanted to give Alameda point an opportunity actually to share with the public.