HomeMy WebLinkAboutReso 92-040 - Approve & Authorize the mayor to sign the letter agreement between municipal resource consultants & the COR dated 01/17/92 regarding expanded Revenue Audit & info Services1
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RESOLUTION NO. �Z - 7O
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
y APPROVING AND AUTHORIZING THE MAYOR TO SIGN THE LETTER
AGREEMENT BETWEEN MUNICIPAL RESOURCE CONSULTANTS AND
THE CITY OF REDDING DATED JANUARY 17, 1992, REGARDING
EXPANDED REVENUE AUDIT AND INFORMATION SERVICES.
WHEREAS, property tax is the second largest General Fund
revenue source, estimated to be 160 of total fund revenue in
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fiscal year 1991-92 ; and
WHEREAS, property tax collected for properties located
within City limits is split between the County, City,
Redevelopment Agency, School Districts, and other special
districts based on AB8 allocation procedures; and
WHEREAS, the allocation is performed by the County with no
independent audit or other verification of their allocation
methodology or computation; and
WHEREAS, the Finance Department believes that it would be
prudent to engage the services of a firm with experience in
auditing such county systems and procedures to verify the
property tax allocation procedures and the computation of the
County; and
WHEREAS, it has been proposed that the City enter into the
attached letter agreement with Municipal Resource Consultants
dated January 17, 1992 ;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
1. The foregoing recitals are true and correct.
2. Council believes it will be of benefit to the City to
enter into the attached Letter Agreement with Municipal Resource
Consultants dated January 17 , 1992, to perform property tax audit
services.
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3 . Council hereby waives its Policy No. 1501 pertaining to
I the selection of technical consultants inasmuch as of the two
proposals submitted to the City, the proposal of Municipal
Resource Consultants indicates that their audits focus on AB8
allocationrocedures the type of service needed b the Cit
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I, 4. City Council hereby approves the Letter Agreement dated
January 17, 1992, between the City of Redding and Municipal
Resource Consultants in an amount not to exceed $15,000 . 00,
including expenses, a true copy of which is attached hereto and
incorporated herein by reference.
5 . The Mayor of the City of Redding is hereby authorized
and directed to sign said Letter Agreement on behalf of the City
of Redding; and the City Clerk is hereby authorized and directed
to attest the signature of the Mayor and to impress the official
seal of the City of Redding thereto.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 4th day of February 1992, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Arness, Fulton, Moss & Dahl
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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MIKE DAHL, Mayor
City of Redding
AT ST: FO PPROVED:
CONNIE STROHMAYER, CZty Clerk R DALL A. HAYS, C ty Attorney
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• Southern California
�UR� 32107 W.Lindero Canyon Road
'� F5 F� Suite 233
M °2 MUNICIPAL RESOURCE CONSULTANTS Westlake Village,CA 91361
cQ.
R (818)991-5220
C y A partnership of John T. Austin, Inc. &Allen W. Charkow, Inc.
Central California
(209)432-6039
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Northern California
(415)838-1115
January 17, 1992
Ms. Karen Sundin
Assistant Director of Finance
City of Redding
760 Parkview Avenue
Redding, CA 96001
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Re: Expanded Revenue Audit &Information Services
Dear Ms. Sundin:
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Municipal Resource Consultants (MRC) hereby proposes to expand the scope of
revenue audit and information services currently being provided to the City of
Redding (City). The purpose, scope of service, timing, staffing and compensation
are summarized as follows:
1. PURPOSE
The purpose of MRC's expanded service is to review and analyze Shasta
County's systems and procedures for calculation and allocation of property
tax and tax increment to the City and its Redevelopment Agency in order to
identify deviations from applicable statutes and estimate the potential
impact of those deviations.
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2. SCOPE OF SERVICE
The expanded scope includes, but is not limited to, MRC performing the
service summarized as follows:
o Meet with Shasta County (County) and State Board of Equalization
(SBE) staff to review procedures utilized by the County in the
'I calculation and allocation of property tax revenues to cities and
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1 redevelopment agencies under AB 8 and the Community
Redevelopment Law (CRL) Section 33670.
o Obtain and review all copies of available County records and
worksheets used by the County Auditor Controller in the calculation
and allocation of property tax revenues.
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o Obtain and review State Controller and SBE audits of County systems
and procedures re: assessment practices and the calculation and
allocation of property tax revenues.
o Review sample City property tax receipts for current and prior year
and compare to County allocation of property tax revenues.
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o .Review sample City Tax Rate Area (TRA) valuations and compare to
County records of taxable valuation.
o Review sample unsecured business property valuations and compare
to County unsecured reportings.
o Review County procedures re: roll updates, property tax
delinquencies and assessment appeals.
o Review County procedures re: supplemental assessments.
o Perform comparative analysis to ascertain differences, if any, between
County of Shasta's procedures and applicable statutes prescribing
property tax procedures under AB 8.
o Prepare a summary report based on the above findings and
conclusions.
3. TIMING
We are prepared to commence the expanded service within 10 days
following authorization with the objective of conducting our analysis and
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delivering the report within 90 working days thereafter.
4. STAFFING
The expanded service is to be staffed by Gary Jones and Partho Mandal.
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Gar ones
Gary has overall responsibility for MRC's property tax consulting practice.
In this capacity, Gary and his staff conduct deficiency audits for cities and
their redevelopment agencies to detect, document and recover previously
unrealized property tax and tax increment.
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Prior to his association with MRC, Gary was a Principal with the firm of
Katz Hollis in charge of fiscal and administrative management consulting
services to redevelopment and other public agencies throughout California
and other western states.
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Gary has been analyzing property tax assessments and tax allocations for
public agencies in Northern and Southern California for more than 20 years.
Gary received his BA degree,from California State University Fresno and
completed graduate courses at University of California Los Angeles.
Partho Mandal
Partho Mandal is a Senior Consultant in MRC's property tax consulting
practice. Prior to his association with MRC,Partho was a Senior Analyst and
Associate with the firm of Katz Hollis for four years. In this capacity, Partho
+ provided property tax analysis and financial analytical services to support
the issuance of municipal bonds. He additionally provided general and
specialized financial analysis for municipal government agencies throughout
California.
Before joining Katz Hollis, Partho was an Associate with Gunn Russell
Copenhaver & Co. where he provided advisory services to resolve financial
requirements of redevelopment agencies.
Partho received his BA degree with Honors from University of Delhi, New
Delhi, India where he majored in Economics. He also earned an MA in
Economics from the Delhi School of Economics, New Delhi, India and an
MBA in Finance from State University of New York, Albany.
5. COMPENSATION
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To make the expanded service self-funding for the City of Redding, MRC's
compensation for the Phase I Property Tax Service shall be contingent upon
the City receiving sufficient funds from the City's share of new revenue
produced from MRC's Sales Tax Audit and /or other revenue audits the City
contracts with MRC to perform (self-funded in the same fashion as the
STARS Sales Tax Inquiry System provided to the City by MRC). Stated
another way, payment is deferred until there is adequate audit revenue to
cover it. Audit revenue to be included in the self-funding must be received
by the City after the date this expanded service is authorized.
MRC's fee for the expanded service is$15,000, including expenses.
Should MRC's audit service fail to generate sufficient new tax revenue for
the City to cover the above Property Tax Service fee, then MRC shall absorb
the shortfall amount.
6. AUTHORIZATION
To authorize the expanded scope of service, please return an executed cop)
of this letter to my attention. The original is for your records. Thank you.
ACCEPTED FOR THE MUNICIPAL RESOURCE CONSULTANTS
CITY OF BEDDING PARTNER: JOH4171,-6��--L—
Title:
N T. AU TIN, INC.
B B Y� Y' John T. Austin
Title:
Date: Date:
Sincerely,
John T. Austin
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