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15-0831_HDL COMPANIES_Personal Services Agreement PERSONAL SERVICES AGREEMENT A THIS AGREEMENT is made, entered into, and shall become effective this day of August, 2015, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and HdL Companies. (hereinafter referred to as the "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant to Sales Tax and Property Tax Audit and Reporting Services and the Statistical Reporting Package for the Comprehensive Annual Financial Report (CAFR); and, WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1. Scope of Work. The scope of work to be performed by the Consultant shall consist of those tasks as set forth in Exhibit "A," attached and incorporated herein by reference. To the extent that there are any conflicts between the provisions described in Exhibit "A° and those provisions contained within this Agreement, the provisions in this Agreement shall control. Section 2. Term. This Agreement shall commence on the effective date and shall terminate, and all services required hereunder shall be completed, no later than June 30, 2020, subject to Section 15 (Termination). Section 3. Compensation. 3.1 Amount. Total compensation for the services hereunder shall not exceed $28,000 for the full term of this contract at the rates set forth in Exhibit "B," except for the rates in Exhibit "C," which supersedes rates in Section 1.1.b AND Section 1.2.c of the Cost Proposal in Exhibit `:B." 1 3.2 Method of Payment. Subject to Section 3.1, Consultant shall submit quarterly invoices based on total services which have been satisfactorily completed for such quarterly period. The City will pay quarterly progress payments based on approved invoices in accordance with this Section. 3.3 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to the City. Invoices shall be addressed as provided for in Section 16 below. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of the City, and shall obtain no rights to any benefits which accrue to Agency's employees. Section 5. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to the City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. Section 6. Changes to Scope of Work. For extra work not part of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Section 7. Time of Essence. Time is of the essence in the performance of this Agreement. 2 Section 8. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Work Product. At the completion of the work, Consultant shall have delivered to City at least one (1) copy of any final reports and/or notes or drawings containing Consultant's findings, conclusions, and recommendations with any supporting documentation. All reports submitted to the City shall be in reproducible format, or in the format otherwise approved by the City in writing. Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services. Section 13. Indemnity. To the fullest extent permitted by law, Consultant agrees to protect, defend, and hold harmless the City and its elective and appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of Consultant, Consultant's agents, officers, employees, subcontractors, or independent contractors hired by Consultant in the performance of the Agreement. The only exception to Consultant's responsibility to protect, defend; and hold harmless the City, is due to the sole negligence, recklessness and/or wrongful conduct of the City, or any of its elective or appointive boards, officers, agents, or employees. 3 This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Consultant. Section 14. Insurance. On or before beginning any of the services or work called for by any term of this Agreement, Consultant, at its own cost and expense, shall carry, maintain for the duration of the agreement, and provide proof thereof that is acceptable to the City, the insurance specified below with insurers and under forms of insurance satisfactory in all respects to the City. Consultant shall not allow any subcontractor to commence work on any subcontract until all insurance required of the Consultant has also been obtained for the subcontractor. Insurance required herein shall be provided by Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A- Class VII or better. 14.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive General Liability coverage in an amount not less than two million dollars per occurrence ($2,000,000.00), combined single limit coverage for risks associated with the work contemplated by this agreement. If a Commercial General Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this agreement or the general aggregate limit shall be at least twice the required occurrence limit. 14.2 Comprehensive Automobile Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non-owned vehicles in an amount not less than one million dollars per occurrence ($1,000,000.00). 14.3 Workers' Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Workers' Compensation Employer's Liability Insurance in the statutory amount as required by state law. . 14.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self-retention amount, and an additional insured endorsement naming City, its officers, employees, agents, and 4 volunteers as additional insured as respects each of the following: Liability arising out of activities performed by or on behalf of Consultant, including the insured's general supervision of Consultant; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or automobiles owned, leased, hired, or borrowed by Consultant The coverage shall contain no special limitations on the scope of protection afforded City, its officers, employees, agents, or volunteers. 14.5 Errors and Omissions Coverage Throughout the term of this Agreement, Consultant shall maintain Errors and Omissions Coverage (professional liability coverage) in an amount of not less than two million dollars ($2,000,000). Prior to beginning any work under this Agreement, Consultant shall submit an insurance certificate to the City's General Counsel for certification that the insurance requirements of this Agreement have been satisfied. 14.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverages reduced, until after thirty (30) days' written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 14.7 Terms of Compensation. Consultant shall not receive any compensation until all insurance provisions have been satisfied. 14.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the City has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement Section 15. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Consultant. In addition, this Agreement may be terminated by any party for cause by providing ten (10) days' notice to the other party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. 5 Section 16. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Cindy Russell To Consultant: NdL Companies 1340 Valley Vista Drive, Suite 200 Diamond Bar, CA 91765 Attn: Andy Nickerson Section 17. Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 18. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. [SIGNATURE PAGE FOLLOWS] 6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. CITY OF SAN JUAN CAPISTRANO By: Keith Till, Interim tity Ma ager CONSULTANT By: Ql� AndreNickerson, President HdL Companies ATTEST: LV <C V�lar Morri , Ci y lerk APPROVED AS TO FORM: Jeff ey allinger, PKAttorney 7 _..__...____ t . I saw1.961. 1776 a E ItO [ t t 3 _ ! I f CITY OF SAN JUAN CAPISTRANO REQUEST FOR QUOTATION ' FOR SALES TAX AND PROPERTY TAX AUDIT AND REPORTING SERVICES € 3 AND THE STATISTICAL REPORTING E PACKAGE FOR THE COMPREHENSIVE ANNUAL FINANCIAL REPORT t May 7, 2015 ! s EXHIBIT A- Page 1�of 28 _ TABLE OF CONTENTS 1. ABOUT THE CITY.........----......................-...-.... ...... ....... .......... 3 2, QUOTATION SCHEDULE.....-.......................... .......... ...-.... .................. 4 3. PROCEDURE FOR.SUBMITTING PROJECT QUOTATIONS....................... 4 4, DATA TO BE SUBMITTED WITH PROJECT QUOTATIONS .............. ....--.... 5 5, SCOPE OF WORK........-.................. ......................... ........ 6 & DATA TO BE SUBMITTED WITH COST QUOTATIONS................................ 11 7, GENERAL REQUIREMENTS,............................... .................................—. 11 APPENDIXA ......--.............. ................. ........................ ........ 14 APPENDIXB ......................................................................................................... 27 APPENDIX C .... ............... ...... ..................... ........... ...... 28 2 EXHIBIT A- Page 2 of 28 CITY OF SAN JUAN CAPISTRANO REQUEST FOR QUOTATION The City of San Juan Capistrano ("City") seeks quotations from qualified firms for Sales Tax and Property Tax Audit and Reporting Services and the Statistical Reporting Package for the Comprehensive Annual Financial Report (CAFR). Responses must conform with the requirements of this Request for Quotation ("RFQ"). The City reserves the right to waive any irregularity in any quotation or to reject any quotation which does not comply with this RFQ. Modifications to the RFQ, including, but not limited to the scope of work, can be made only by written addendum issued by the City. Selection of the proposer will be made solely by the City on criteria determined by the City. The use of the term "firm" throughout this document means individual proprietorship, partnership, Limited Liability Company, corporation or joint venture. By submitting a project quotation, the proposer agrees to all of the terms of the RFQ and Agreement (Appendix A), unless exceptions to the RFQ or Agreement are stated by the proposer in its project quotation. The successful proposer will be required to enter into an Agreement (Appendix A) which will include the requirements of this RFQ as well as other requirements. The City reserves the right to reject any quotation(s) exceptions or changes to the Agreement or Request for Quotation. 1. ABOUT THE CITY San Juan Capistrano is a general law City incorporated in 1961. The City is located in the southeastern portion of Orange County, approximately 62 miles south of the City of Los Angeles and 65 miles north of the City of San Diego. The City occupies a land area of 14.4 square miles and serves a population of approximately 35,900. The City is empowered to levy a property tax on both real and personal property located within its boundaries. Increases in property tax rates are subject to voter approval. The City's fiscal year begins on July 1 and ends on June 30. The City is governed by a five-member City Council under the council- manager form of government. The City Council is elected at large with staggered four-year terms and the positions of Mayor and Mayor Pro- Tem are selected amongst Council members annually. The firm's principal contact with the City of San Juan Capistrano will be Michelle Daggett Short, Senior Accountant, (949) 487-4317 or a designated representative, who will coordinate the assistance to be provided by the City of San Juan Capistrano to the proposer. 3 EXHIBIT A- Page 3 of 28 City Hall is located at 32400 Paseo Adelanto, San Juan Capistrano, California 92676. The telephone number is (949) 493-1171 2. QUOTATION SCHEDULE The schedule is as follows: Quotation Due at City Hall May 22, 2016, 4:00 p.m. Interviews June 4, 2015 Negotiations Complete/Agreement signed by Proposer June 26, 2016 3. PROCEDURE FOR SUBMITTING PROJECT QUOTATIONS A. Time Place and Format Quotations must be received at City Hall no later than 4:00 p.m. on the date indicated in Section 2. Quotations received in the mail after 4:00 p.m. on the date indicated in Section 2, regardless of the date of their postmarks, will be rejected. Quotations must: • not be folded, tabbed or bound • show page numbers for all pages in the quotation • include 3 copies punched for a standard 3-ring binder • be on 8-112"x11°, 20-24 Ib. white paper (do not submit covers) • be submitted in one or more envelopes, each of which clearly: ✓ states "Sales Tax and Property Tax Audit and Reporting Services and the Statistical Reporting Package for the Comprehensive Annual Financial Report" ✓ identifies the proposer ✓ states the number of the envelope and the total number of envelopes submitted by the proposer • the envelope must be addressed as follows: City of San Juan Capistrano Attn: Michelle Daggett Short 32400 Paseo Adelanto San Juan Capistrano, CA 92675 • the successful Proposer must submit the Scope of Work and Fee in electronic format (MS Word or other format acceptable to the City) in addition to the paper copy, upon request. If hand delivered, address as above and deliver to the City Clerk receptionist in main City Hall. 4 EXHIBIT A- Page 4 of 28 Quotations must address the requirements of the RFQ in the exact order set forth in Section 4. They should be as concise as possible and must not contain any promotional, advertising or display material. B. Opening of Responses All quotations will be opened and considered within two weeks after the deadline date shown in Section 2. 4. DATA TO BE SUBMITTED WITH PROJECT QUOTATIONS The content and sequence of the information contained in each copy of the quotation shall be as follows: A. tetter of Transmittal Include your firm's understanding of the work to be performed. In addition, state why your firm believes it to be the best qualified to perform the services requested. Also, state the Management Contact (Representative authorized to sign an agreement for your firm) and the Project Manager (person responsible for day-to-day management of the project). B. Table of Contents Include a clear identification of the material by section and by page number. C. Summary Sheet 1. This section of the quotation must include a fully-completed copy of the Summary Sheet included with this RFQ (Appendix B). 2. Provide the name, title, experience and qualifications of the personnel who will be assigned to the project. 3. Provide the resumes of the Management Contact with the City and the Project Manager. D. Allocation of Resources Provide a conceptual plan for services to the City that you believe are appropriate for the City. Indicate features, skills and/or services which distinguish your firm and make it the better choice for the City. Indicate how the resources of your firm (e.g_, number and type of personnel allocated by hours) will be allocated for this project. Submittal of a project schedule is required as part of the Allocation of Resources. 5 EXHIBIT A- Page 5 of 28 E. Scope of Work Quotations must address all items set forth in Section 5 "Scope of Work." Additional information which, in your opinion, should be included must be clearly identified. The items must be addressed in the order in which they appear in Section 5 of this RFQ. F. Sample Reports Provide samples of reports for each quotation. G. References Each firm must include the following references: 1. List similar services performed for all similar organizations/entities in the last five years and when performed. Show names of organizations, and names and telephone numbers of persons who can be contacted with regard to the services you have provided. 2. List all similar public agencies for which contracts were terminated in the last three years. Show names of organizations, and names and telephone numbers of persons who can be contacted. Firms may provide a brief explanation of the reason(s) for termination(s). G. Certification of Quotations Return a copy of the entire completed certification properly executed as provided for in Appendix C. 5. SCOPE OF WORK The Scope of Work, as may be modified through negotiation and/or by written addendum issued by the City, will be made a part of the Agreement. The City expects to award a contract for a five-year term with the possibility of two one-year extensions based upon consultant performance. Quotations must provide a menu of services and costs for sales tax, property tax, and CAFR statistical reporting services in separate sections. The City is requesting quotations for the auditing and reporting of sales/use and property tax records, the economic analysis, the recovery of revenue for the City and CAM statistical reports. The quotation should address the following items at a minimum: 6 EXHIBIT A- Page 6 of 28 A. Sales Tax I. General Strategy a. Describe the general strategy for sales and use tax auditing. b. Define the role of City staff and records as it relates to your efforts. c. Describe your interaction with the State Board of Equalization. i. (SBOE) and with businesses being audited. d. Identify what sources of information will be needed and the means with which they will be acquired. 2. Objectives and Methodology a. Identify the specific procedures you will use to detect, correct, and recover misallocated revenue for the City, including, but not limited to: i. Identify and correct the salesluse tax reporting errors and omissions of businesses within the City that are not properly registered based on their business activities in the City. ii. Identify and correct the reporting of businesses that are improperly reporting tax to state and county pools (i.e. classifying sales tax as use tax), thereby depriving the City of sales tax revenue. iii. Detect, document and correct salesfuse tax reports errors and omissions in order to generate new, previously unrealized revenue for the City. iv. Determine if the State Board of Equalization ("SBOE") had prior Knowledge of the error(s), which could entitle the City to collect revenue from additional periods. b. Monitor and analyze the quarterly distribution reports with a focus on.the following: i. Those accounts with previously reported point-of-sale distribution errors to ensure that the corrections are made for current quarters and all eligible back quarters. ii. Those major accounts comprising 90% or more of the City's total sales and use tax revenue to identify any irregularities or unusual deviations from the normal pattern (e.g. negative funds transfers, significant decreases, unusual increases, etc.) and ensure that the City is not receiving less revenue than it is entitled to receive. 7 EXHIBIT A - Page 7 of 28 c. Identify opportunities for the City to recover the local allocation on purchase transactions subject to tax, and facilitate the recovery of such funds. d. Assist the City with strategies to preserve and enhance sales and use tax generated by existing businesses within the City. 3. Sales and Use Tax Reporting Services The successful Proposer shall: a. Provide an electronic database of the City's sales and use tax data to the City to facilitate monitoring, analysis and forecasting. The database will include the following features at a minimum: i. All sales tax producers in the City, including business name, address, SBOE account number, and current and historical sales tax allocations. ii. Quarterly updates. iii. Ability for the City to create and maintain subsets of the information based on geographic features. iv. Ability to define and print reports. v. Ability to export all data to a spreadsheet b. Provide written quarterly sales tax reports and attend quarterly meetings with the City to discuss activity in the reports. The reports will include the following: i Top sales tax generators ranked by the amount of sales and use tax produced. ii Analysis of sales trends by business category, identifying by business the major increases and decreases each quarter. iii Comparisons to other local, county and state jurisdictions. Sales and use tax projections, updated quarterly. iv information regarding state and federal legislative issues, including an analysis of their potential impact on the City. vi Other reports as mutually agreed upon. 4. On-Going Consultation a. During the term of the contract, Consultant shall serve as the City's resource staff on questions relating to sales tax and assist in estimating future sales tax revenues. 8 EXHIBIT A T Page 8 of 28 B. Property Tax 1. General Strategy a. Describe the general strategy for property tax and economic analysis. b. Define the role of City staff' and City records as it relates to your efforts. c. Identify what sources of information will be needed and the means with which they will be acquired. 2. Objectives and Methodology a. Identify the specific procedures you will use to detect, correct, and recover misallocated property tax for the City. 3. Property Tax Reporting Services The successful Proposer shall: a. Annually, after the lien date roll becomes available, establish a special database which will include, for each parcel within the City Boundaries, the assessed values for the secured and unsecured property tax rolls. The major property owners and property taxpayers listings shall be provided on an annual basis. Tracking and trend analysis of property transfers, use type comparisons, pre- Prop 13 assessment parcels, new construction activity, multiple- owned parcels, absentee-owned parcels and other information will be provided to assist staff in fiscal, economic and community development planning. b. Each year, after the lien date roll is available, update reports identifying property transfers. Additional reports using the databases will be prepared to identify errors, analyze City tax rate areas and taxing agencies and provide comparative information. Printouts, graphs and comparative data will be provided on a quarterly basis. c. Provide a reconciliation of assessed values (secured and unsecured lien date valuations) to County records which will be used to project annual property tax figures for the City's use in revenue forecasting. . Provide the base year values by tax rate areas for all redevelopment project areas, and verify that all redevelopment parcels are correctly assigned to tax rate areas and taxing agencies. Tax increment projects based on net assessed values after factoring for base year values and exemptions will be furnished. 9 EXHIBIT A- Page 9 of 28 4. Analysis and Identification of Misallocation Errors a. Conduct an analysis to identify and verify, in both the City and within redevelopment project areas, parcels which are mis- assigned by Tax Rate Area (TRA) 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, Tax Rate Areas allocated to wrong taxing agencies and parcels missing from redevelopment project areas. b. Reconcile the annual auditor-controller assessed valuations report to the assessor's lien date rolls and identify discrepancies. c. A review of parcels on the unsecured roll will be performed to identify inconsistencies such as value reductions, values being reported to a mailing address rather than the site's address and errors involving TRAs. d. Property transfers and new construction completions will be tracked to determine whether reassessment is performed within a reasonable time frame. The City will be notified of parcels which have failed to be reassessed. e. Review and analyze Redevelopment Agency fiscal agreements for the purpose of verifying tax increment projects, pass-through monies and develop tax increment guarantees. f. Utilize 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 shall provide reports for use in the City's preparation of Prop 4 and 111 State Appropriation Limit calculations. 5. On-Going Consultation a. During the term of the contract, Consultant shall serve as the City's resource staff on questions relating to property tax and assist in estimating property tax revenues for proposed redevelopment project areas. C. Statistical Reporting Package for CAFR 1. During the term of the contract, Consultant shall provide the following reports annually: a. Use category summary for current fiscal year b. Property tax dollar breakdown for current fiscal year c. Roll summary for current fiscal year d. Net taxable assessed value for last ten fiscal years e. Assessed value of taxable property by secured, unsecured and nonunitary for last ten fiscal years 10 EXHIBIT A- Page 10 of 28 f. Assessed value of taxable property by category for last ten fiscal years g. Top ten property tax payers for current fiscal year h. Top ten property tax payers ten fiscal years ago i. Direct and overlapping property tax rates for last ten fiscal years j. Demographic and economic statistics for last ten calendar years k. Single family residential sales value history 1. Computation of direct and overlapping bonded debt 6. DATA TO BE SUBMITTED WITH COST QUOTATIONS A separate, sealed Cost Quotation shall be submitted with the Project Quotation. The separate, sealed envelope shall be marked "Cost Quotation — Sales Tax and Property Tax Audit and Reporting Services and the Statistical Reporting Package for the Comprehensive Annual Financial Report." Separate costs shall be submitted for Sales Tax Audit and Reporting Services, Property Tax Audit and Reporting Services and the Statistical Reporting Package for the Comprehensive Annual Financial Report. The successful proposer must submit an electronic copy of the cost quotation in MS Word, Excel or other format acceptable to the City in addition to the paper copy upon request. 7. GENERAL REQUIREMENTS A. Personnel The Agreement and Letter of Transmittal shall identify the Management Contact (representative authorized to sign an agreement for your firm) and Project Manager (person responsible for day-to-day management of project). The successful proposer may change the Management Contact, Project Manager, and other supporting staff and specialists with prior written permission of the City. B. Right to Request Additional Information During the evaluation process, the City reserves the right, where it may serve the City's best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. At the discretion of the City, firms submitting quotations may be requested to make oral presentations as part of the evaluation process. C. Right to Reject Quotations The City reserves the right without prejudice to reject any or all quotations. ii EXHIBIT A- Page 11 of 28 D. Quotation Interpretations and Addenda Any change to or interpretation of the RFQ by the City will be sent to each firm or individual to whom an RFQ has been sent and any such changes or interpretations shall become a part of the RFQ for incorporation into any agreement awarded pursuant to the RFQ. E. Public Record All quotations submitted in response to this RFQ will become the property of the City upon submittal and a matter of public record pursuant to applicable law. F. Additional Services The Scope of Work describes the minimum work to be accomplished. Upon final selection of the firm, the Scope of Work may be modified and refined during negotiations with the City. G. Conflict of Interest By signing the Agreement, the successful Proposer declares and warrants that no elected or appointed official, officer or employee of the City has been or shall be compensated, directly or indirectly, in connection with the award of the Agreement or any work for the proposed project. For the term of the Agreement, no elected or appointed official, officer or employee of the City, during the term of his/her service with the City and for two (2) years following his/her termination of office or employment with the City, shall have any direct interest in the Agreement, or obtain any present, anticipated or future material benefit arising therefrom. H. Confidential Information The City shall refrain from releasing Proposer's proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Proposer of its intention to release Proprietary Information. Proposer shall have five (5) working days after receipt of the Release Notice to give City written notice of Proposer's objection to the City's release of Proprietary Information. Proposer shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney's fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Proposer fails to fully indemnify, defend (with City's choice of legal 12 EXHIBIT A- Page 12 of 28 counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information. 13 EXHIBIT A- Page 13 of 28 APPENDIX A PERSONAL SERVICES AGREEMENT THIS AGREEMENT is made, entered into, and shall become effective this day of 2015, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and (hereinafter referred to as the "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant regarding the City's proposal for Sales Tax and Property Tax Audit and Reporting Services; and, WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1. Scope of Work. The scope of work to be performed by the Consultant shall consist of those tasks as set forth in Exhibit 'A," attached and incorporated herein by reference. To the extent that there are any conflicts between the provisions described in Exhibit "A" and those provisions contained within this Agreement, the provisions in this Agreement shall control. Section 2. Term. This Agreement shall commence on the effective date and shall terminate, and all services required hereunder shall be completed, no later than June 30, 2020, The City shall have the option, to renew this Agreement for no more than two additional one-year terms. Section 3. Compensation. 3A Amount. Total compensation for the services hereunder shall not exceed $ [either, total contract amount, or amount per month or per fiscal year, also specify whether the total compensation includes expenses, etc.[, [as set forth in Exhibit "B," attached and incorporated herein by reference [if Consultant provides a cost quotation or rate schedule]l. 3.2 Method of Payment. Subject to Section 3.1, Consultant shall submit monthly invoices based on total services which have been satisfactorily completed for such monthly 14 EXHIBIT A - Page 14 of 28 period. The City will pay monthly progress payments based on approved invoices in accordance with this Section. 3.3 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to the City. Invoices shall be addressed as provided for in Section 16 below. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of the City, and shall obtain no rights to any benefits which accrue to Agency's employees. Section 5. Limitations Upon Subcontracting and Assignment, The experience, knowledge; capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to the City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. Section 6. Changes, to Scope e,..of Work. For extra work not part of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Section 7. Familiarity with Work and/or Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed; (2) if applicable, it has investigated the work site(s), and is aware of all conditions there; and (3) it understands the facilities, difficulties and restrictions of the work to be performed under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, it shall immediately inform the City of this and shall not proceed with further work under this Agreement 15 EXHIBIT A - Page 15 of 28 until written instructions are received from the City. Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Work Product. At the completion of the work, Consultant shall have delivered to City at least one (1) copy of any final reports and/or notes or drawings containing Consultant's findings, conclusions, and recommendations with any supporting documentation. All reports submitted to the City shall be in reproducible format, or in the format otherwise approved by the City in writing. Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services. Section 13. Indemnity. To the fullest extent permitted by law, Consultant agrees to protect, defend, and hold harmless the City and its elective and appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of Consultant, Consultant's agents, officers, employees, subcontractors, or independent contractors hired by Consultant in the performance of the Agreement. The only exception to Consultant's responsibility to protect, defend, and hold 1.6 EXHIBIT A- Page 16 of 28 harmless the City, is due to the negligence, recklessness and/or wrongful conduct of the City, or any of its elective or appointive boards, officers, agents, or employees. This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Consultant. Section 14. Insurance. On or before beginning any of the services or work called for by any term of this Agreement, Consultant, at its own cost and expense, shall carry, maintain for the duration of the agreement, and provide proof thereof that is acceptable to the City, the insurance specified below with insurers and under forms of insurance satisfactory in all respects to the City. Consultant shall not allow any subcontractor to commence work on any subcontract until all insurance required of the Consultant has also been obtained for the subcontractor. Insurance required herein shall be provided by Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A- Class VII or better. 14.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive General Liability coverage in an amount not less than one million dollars per occurrence ($2,000,000.00), combined single limit coverage for risks associated with the work contemplated by this agreement. If a Commercial General Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this agreement or the general aggregate limit shall be at least twice the required occurrence limit. 14.2 Comprehensive Automobile Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non-owned vehicles in an amount not less than one million dollars per occurrence ($2,000,000.00). 14.3 Workers' Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Workers' Compensation Employer's Liability Insurance in the statutory amount as required by state law. 17 EXHIBIT A - Page 17 of 28 14.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self-retention amount, and an additional insured endorsement naming City, its officers, employees, agents, and volunteers as additional insured as respects each of the following: Liability arising out of activities performed by or on behalf of Consultant, including the insured's general supervision of Consultant; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or automobiles owned, leased, hired, or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded City, its officers, employees, agents, or volunteers. 14.5 Errors and Omissions Coverage [ 'or Profess ions/VVo rk Excluded from Liability] Throughout the term of this Agreement, Consultant shall maintain Errors and Omissions Coverage (professional liability coverage) in an amount of not less than One Million Dollars ($2,000,000). Prior to beginning any work under this Agreement, Consultant shall submit an insurance certificate to the City's General Counsel for certification that the insurance requirements of this Agreement have been satisfied. 14.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverages reduced, until after thirty (30) days' written notice is given to City, except that ten .(10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 14.7 Terms of Compensation.. Consultant shall not receive any compensation until all insurance provisions have been satisfied. 14.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the City has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement. Section 15. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Consultant. In addition, this Agreement may be terminated by any party for cause by providing ten (10) days' notice to the other party of a material breach of contract. If 18 EXHIBIT A- Page 18 of 28 the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 16. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Michelle Bannigan, Assistant Finance Director To Consultant: Section 17. Attorneys' Fees. If any action at lave or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 18. Dispute Resolution. In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"). Section 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. Section 20. Counterparts and Facsimile signatures. This Agreement may be executed by the Parties .— in counterparts, which counterparts shall be construed together and have the same effect as if all the Parties had executed the same instrument. Counterpart signatures may be transmitted by facsimile, email, or other electronic means and have the same force and effect as if they were original signatures. 19 EXHIBIT A - Page 19 of 28 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. CITY OF SAN JUAN CAPISTRANO By: Karen Brust, City Manager CONSULTANT By: ATTEST: Maria Morris, City Clerk APPROVED AS TO FORM: Jeffrey Ballinger, City Attorney 20 EXHIBIT A- Page 20 of 28 EXHIBIT "A" SCOPE OF WORK The City is requesting quotations for the auditing and reporting of sales/use and property tax records, the economic analysis, the recovery of revenue for the City and CAFR statistical reports. The quotation should address the following items at a minimum: A. Safes Tax 1. General Strategy a. Describe the general strategy for sales and use tax auditing. b. Define the role of City staff and records as it relates to your efforts. c. Describe your interaction with the State Board of Equalization (SBOE) and with businesses being audited. d. Identify what sources of information will be needed and the means with which they will be acquired. 2. Objectives and Methodology a. Identify the specific procedures you will use to detect, correct, and recover misallocated revenue for the City, including, but not limited to: i. Identify and correct the sales/use tax reporting errors and omissions of businesses within the City that are not properly registered based on their business activities in the City. ii. Identify and correct the reporting of businesses that are improperly reporting tax to state and county pools (i.e. classifying sales tax as use tax), thereby depriving the City of sales tax revenue. iii. Detect, document and correct sales/use tax reports errors and omissions in order to generate new, previously unrealized revenue for the City. iv. Determine if the State Board of Equalization ("SBOE") had prior knowledge of the error(s), which could entitle the City to collect revenue from additional periods. b. Monitor and analyze the quarterly distribution reports with a focus on the following: L Those accounts with previously reported point-of-sale distribution errors to ensure that the corrections are made for current quarters and all eligible back quarters. ii Those major accounts comprising 90% or more of the City's total sales and use tax revenue to identify any irregularities or unusual deviations from the normal pattern (e.g. negative funds transfers, significant decreases, unusual increases, etc.) and ensure that the City is not receiving less revenue than it is entitled to receive. 21 EXHIBIT A- Page 21 of 28 c. Identify opportunities for the City to recover the local allocation on purchase transactions subject to tax, and facilitate the recovery of such funds. d. Assist the City with strategies to preserve and enhance sales and use tax generated by existing businesses within the City. 3. Sales and Use Tax Reporting Services The successful Proposer shall: a. Provide an electronic database of the City's sales and use tax data to the City to facilitate monitoring, analysis and forecasting. The database will include the following features at a minimum: i. All sales tax producers in the City, including business name, address, SBOE account number, and current and historical sales tax allocations. ii Quarterly updates. iii Ability for the City to create and maintain subsets of the information based on geographic features. iv Ability to define and print reports. v) Ability to export all data to a spreadsheet. b. Provide written quarterly sales tax reports and attend quarterly meetings with the City to discuss activity in the reports. The reports will include the following: i Top sales tax generators ranked by the amount of sales and use tax produced. ii. Analysis of sales trends by business category, identifying by business the major increases and decreases each quarter. iii. Comparisons to other local, county and state jurisdictions. iv. Sales and use tax projections, updated quarterly. V. Information regarding state and federal legislative issues, including an analysis of their potential impact on the City. vi. Other reports as mutually agreed upon. 4. On-Going Consultation a. During the term of the contract, Consultant shall serve as the City's resource staff on questions relating to sales tax and assist in estimating future sales tax revenues. 22 EXHIBIT A- Page 22 of 28 B. Property Tax 1. General Strategy a. Describe the general strategy for property tax and economic analysis. b. Define the role of City staff and City records as it relates to your efforts. c. Identify what sources of information will be needed and the means with which they will be acquired. 2. Objectives and Methodology a. Identify the specific procedures you will use to detect, correct, and recover misallocated property tax for the City. 3. Property Tax Reporting Services The successful Proposer shall: a. Annually, after the lien date roll becomes available, establish a special database which will include, for each parcel within the City Boundaries, the assessed values for the secured and unsecured property tax rolls. The major property owners and property taxpayers listings shall be provided on an annual basis. Tracking and trend analysis of property transfers, use type comparisons, pre= Prop 13 assessment parcels, new construction activity, multiple- owned parcels, absentee-owned parcels and other information will be provided to assist staff in fiscal, economic and community development planning. b. Each year, after the lien date roll is available, update reports identifying property transfers. Additional reports using the databases will be prepared to identify errors, analyze City tax rate areas and taxing agencies and provide comparative information. Printouts, graphs and comparative data will be provided on a quarterly basis. c. Provide a reconciliation of assessed values (secured and unsecured lien date valuations) to County records which will be used to project annual property tax figures for the City's use in revenue forecasting. d. Provide the base year values by tax rate areas for all redevelopment project areas, and verify that all redevelopment parcels are correctly assigned to tax rate areas and taxing agencies. Tax increment projects based on net assessed values after factoring for base year values and exemptions will be furnished. 23 EXHIBIT A - Page 23 of 28 4. Analysis and Identification of Misallocation Errors b. Conduct an analysis to identify and verify, in both the City and within redevelopment project areas; parcels which are mis- assigned by Tax Rate Area (TRA) 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, Tax Rate Areas allocated to wrong taxing agencies and parcels missing from redevelopment project areas. b. Reconcile the annual auditor-controller assessed valuations report to the assessor's lien date rolls and identify discrepancies. c. A review of parcels on the unsecured roll will be performed to identify inconsistencies such as value reductions, values being reported to a mailing address rather than the site's address and errors involving TRAs. d. Property transfers and new construction completions will be tracked to determine whether reassessment is performed within a reasonable time frame. The City will be notified of parcels which have failed to be reassessed. e. Review and analyze Redevelopment Agency fiscal agreements for the purpose of verifying tax increment projects, pass-through monies and develop tax increment guarantees. f. Utilize 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 shall provide reports for use in the City's preparation of Prop 4 and 111 State Appropriation Limit calculations. 5. On-Going Consultation a. During the term of the contract, Consultant shall serve as the City's resource staff on questions relating to property tax and assist in estimating property tax revenues for proposed redevelopment project areas. 24 EXHIBIT A- Page 24 of 28 C. Reporting Package for CAFR 1. During the term of the contract, Consultant shall provide the following reports annually: a. Use category summary for current fiscal year. b. Property tax dollar breakdown for current fiscal year. c. Roll summary for current fiscal year. d. Net taxable assessed value for last ten fiscal years. e. Assessed value of taxable property by secured, unsecured and nonunitary for last ten fiscal years. f. Assessed value of taxable property by category for last ten fiscal years. g. Top ten property tax payers for current fiscal year. h. Top ten property tax payers ten fiscal years ago. i. Direct and overlapping property tax rates for last ten fiscal years. j. Demographic and economic statistics for last ten calendar years. k. Single family residential sales value history. 1. Computation of direct and overlapping bonded debt. 25 EXHIBIT A - Page 25 of 28 EXHIBIT „B„ COMPENSATION Consultant shall be paid for services rendered in accordance with Section 3 of the Agreement, and as described above under Scope of Work, the not-to-exceed fee of Consultant will be paid on a time-and- materials basis at the hourly rates set forth below. 26 EXHIBIT A- Page 26 of 28 APPENDIX B SUMMARY SHEET Firm Name: Firm Parent or Ownership: Firm Address: Firm Telephone Number: Firm Fax Number: Number of years in existence: Management Contact (person responsible for direct contact with the City of San Juan Capistrano and services required for this Request for Quotation): Name: Title: Telephone Number: Fax: Email: Project Manager (Person responsible for day-to-day servicing of the account): Name: Title: Telephone Number: Fax: Email: Types of services provided by the firm: 27 EXHIBIT A - Page 27 of 28 APPENDIX C CERTIFICATION OF QUOTATION TO THE CITY OF SAN JUAN CAPISTRANO 1. The undersigned hereby submits its quotation and, by doing so, agrees to furnish services to the City in accordance with the Request for Quotation (RFQ), dated and to be bound by the terms and conditions of the RFQ. 2. This firm has carefully reviewed its quotation and understands and agrees that the City is not responsible for any errors or omissions on the part of the proposer and that the proposer is responsible for them. 3. It is understood and agreed that the City reserves the right to accept or reject any or all quotations and to waive any informality or irregularity in any quotation received by the City. 4. The quotation includes all of the commentary, figures and data required by the Request for Quotation, dated 5. This firm has carefully read and fully understands all of the items contained in Section 7, General Requirements. This firm agrees to all of the general requirements except for those disclosed by the firm in project quotation, listed on an attachment_ 6. The quotation shall be valid for 120 days from Name of Firm: By: (Authorized Signature) Type Name: Title: Date: 28 EXHIBIT A- page 28 of 28 GemStone Monday,August 24, 2015 2,59 PM We6come Temp Acct2! GEMS - Government e-Management Solutions Version 2.3 Home Cashier FMS FMS Reporting ----------------------I---------------------------------------------------------------- ------------------------------------------- -------------------------------------------------------- ------------- ---------------------------------I---------------------- ----------------------- --------------- D CCR Cash Receipts .................. ....................... ...... ................ ........... ' Receipt into Or i Receipt# 1118879 Location: Trans. Date08/24/201 g.: i Complete 5 ................................................................ ............................................................... .......... Operator., Temp Drawer: Eff. Date: 408/21/201 Acct2 5 ...................... ............ Modules ---------------------------------------------------- ---------------- --------------------------- ----------------------------------- Module Account Number Name Pmt Code Amount Due Amount To Pay:, - ------------------------------------------------- ------------------------------------------ ----------------------------------------1__1.__1.__---------- ....................................... . .. ................................. ........................ .............. ............................................................ ................. 1 Miscellaneous Cash Receipts:' 4 Revenue Type Description i Quantity; Price: Taxable' Detail Total ................. ....................... ................................................. WATER WATER4 None 4 4,247.84 1 RECEIPTS Line Description: WATER SERVICES ------------------- ---------------------- . .. .................... --- ----- -------------- .......... ------- .......... ------ ............................... .......... .. ....................................... ........................................................... ........ Received From: WATER SERVICES CREDIT CARD Taxable: moo Source of Revenue: Non-Taxable:: $4,247.8 411 - ---------------- .........--------- .............................. Sub-Total:' $4,247.8. 1 Method Number: Expiration Authorizat Amount 4j - Date ion ........... ................................................... --------------- ----------- -------- Sales Tax-.: $0.00 i WATER CREDIT 4,247.54 ! 1 : ............... : CARDS Total Due:: $4,247.8: .............. 4� Amount $4,247, Tendered:1 44 Change Due: $0.00 ............. $ � Payment; 000 Needed.: --------------------- --------------------------- ........................................ ............ ............................................... ............ 1 Required : Supervisor Override: .......................... ............... .............. ............................... 7 Print Options # of Copies: ............... ...... ........... Receipt on validation document Format General Page 1 ............ ------- .................. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ............................................................................................................ CCR Cash Drawer Manager Operator Cnde --- - ............................... ............................................................................ --- ------ q-V r CCR- 1 Deposits -----------------------------------------------------------:------------------- -------------------- -------- ---------------I-------------------------- Operator Code- ----------------------------------------------------------------------------- CCR Reports ............ .......... CCR Journal Report ......................................................... @2006: Management Solutions for Government; All rights reserved Inserted from<jjU2:ZLSjcjQPvLemStp ngZ Deskto pD ef a u(t.as px?tabi nd ex-I&ta bid 749&Reset=Tru q> General Page 2 City of San Juan Capistrano Sales Tax and Property Tax Audit and Reporting Services And the Statistical Reporting Package for the CAFR Submitted by: HdL Companies 1340 Valley Vista Dr., Suite 200 Diamond Bar, CA 91765 www.hdicompanies.com Contact: Andy Nickerson 909.861.4335 anickerson@hdleompanies.com HdL C0 M P A N I E S EXHIBIT B Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 I. PRICING 1. Sales Tax Services a. Audit Recoveries HdL proposes a fee of 15% of all new sales and use tax revenue received by the City (including reimbursement from the sales and use tax compensation fund outlined in Section 97.618 of the Revenue and Taxation Code) as a result of audit and recovery work performed by the firm. This audit fee applies to monies received in the first eight consecutive reporting quarters beginning with the receipt of the audit revenue and includes retroactive back quarter adjustments obtained by HdL. Audit fees are billed only after completion of the audit, submittal of corrections to the BOIL. and receipt of revenues by the client. 100% of all new revenue generated by HdL flows to the City after the completion of the eight quarters. The fee constitutes the full reimbursement to HdL and covers all direct and indirect costs incurred by the firm under this contract. This includes all salaries of our employees, travel expenses and service contracting costs to the City of San Juan Capistrano under this proposal. Invoices are submitted only for recoveries previously approved by the City. HdL does not bill for audit revenues until the client has actually received said monies. Further, if during the billing cycle, a taxpayer receives a refund for overpayment of taxes generated during that cycle, HdL credits back any proportionate share of the fee that may have been levied. Invoices are submitted quarterly after the City has received the revenue from the audit correction. The invoice includes a printout showing the name, address, and sales tax registration number of each company, and the specific amount of revenue allocated by the BOF to the City for those businesses. If a misallocation correction involves additional revenue from a company that had already been partially allocating revenues to the City, the City and HdL will agree in a Work Authorization, prior to billing, the methodology for identifying the incremental revenue attributable to HdL's work. b. Web-Based Application and Sales Tax Management Services HdL's standard fees for an agency of San Juan Capistrano's size and character is X550 per month billed quarterly. This includes access to the sales tax web application, ongoing analysis, reports, legislative support and unlimited access to HdUs team members for sales and use tax related questions, as well as training and support for internal implementation of a program of use tax maximization and economic expansion. Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 c. Additional Services Additional services beyond the scope of services in this proposal are priced separately depending on the complexity of tasks involved. Such fees can either be fixed or time and materials. Our current hourly rates are listed below: Principal $225 Per Hour Programmer $195 Per Hour Senior Associate $150 Per Hour Analyst $75 Per Hour 2. Property Tax Services a. Audit Recoveries HdL Coren & Cone proposes a fee of 25% of net tax revenues recovered for the City and/or Successor Agency in the audits performed over the period of time allowable by State statute (current year and 3 prior lien date years) shall be paid to HdL Coren & Cone. Net tax revenues mean the taxes received by the City or Successor Agency through our audit efforts after factoring for tax sharing agreements. b. Web-Basest Application and Property Tax Management Services Based on the number of parcels within San Juan Capistrano (11,850), our fee for the services outlined in this proposal for Property Tax Auditing and Reporting Services is $3,150 per quarter, ($12,600/year). c. CAFR Statistical Reporting Package The cost for the Statistical Reporting Package for the Comprehensive Annual Financial Report is $695 annually. d. Additional Services Work that is requested by the City and that is beyond the scope of services outlined in this proposal shall be charged on a time and material basis. No work shall be performed without prior written approval of the City/RDA Successor Agency. Fees for these services are as follows: Partner $225 Per Hour Principal $195 Per Hour Associate $150 Per Hour Programmer $150 Per Hour Senior Analyst $100 Per Hour Analyst $ 65 Per Hour Administrative $ 45 Per Hour Hourly rates are exclusive of expenses. Expenses, reasonable travel and lodging fees are billed at 1.15 times actual incurred costs. C'IDtv San JuanCap 'iostrano Sales Tax and Property Tax Audit and Reporting Services And the Statistical Reporting Package for the CAFR Submitted by: HdL Companies 1340 Valley Vista Dr.,Suite 200 Diamond Bar, CA 91765 www.hdicompanies.com Contact: Andy Nickerson 909.861.4335 anickerson@hdicompanies.com Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 A. LETTER OF TRANSMITTAL May 22, 2015 City of San Juan Capistrano Attn: Michelle Daggett Short 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Re: Request for Sales Tax and Property Tax Audit and Reporting Services and the Statistical Reporting Package for the Comprehensive Annual Financial Report Enclosed please find three copies and an electronic version of our proposal for the City of San Juan Capistrano. This proposal constitutes a firm and irrevocable offer for a period of 120 days following the submittal deadline of May 22, 2015. The companies submitting the proposal are: Hinderliter, de Llamas and Associates Sales and Use Tax Audits and Services Project Manager., Andrew Nickerson Federal I.D. Number: 33-008507 1340 Valley Vista Drive, Suite 200 Diamond Bar, California 91765 909.861.4335 FAX: 909.861.7726 HdL Coren & Cone Property Tax Audits and Services Project Manager- Paula Corte Federal I.D. Number: 95-4398586 1340 Valley Vista Drive; Suite 200 Diamond Bar, California 91765 909.861.4335 FAX: 909.861.7726 As President of Hinderliter, de Llamas and Associates (HdL), I will serve as the key contact on matters relating to this proposal and am the authorized representative to sign the agreement have read, understand and agree to all terms and conditions specified in the Request for Quotation for the City of San Juan Capistrano. Acceptance of this proposal will bring the following benefits to the City: • HdL's larger database, consisting of 98.5% of statewide sales tax allocations and advanced audit methodologies identify allocation errors that are often missed by other systems. • The included web-based software is user friendly and can be integrated with other databases or programs to help maximize related revenue collections. • Our quarterly sales tax analysis is done in context with the surrounding market region to better identify retail trends, voids and opportunities. The quarterly sales tax reports include a custom non-confidential newsletter that can be shared with the Council and community. Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2096 • Our monthly fee includes unlimited staff support to provide sales tax estimates for proposed projects, target business retention possibilities, provide revenue projections and answer sales and use tax questions related to economic development, budgeting and business license collections. • All audit staff are selected and trained for their abilities to maintain positive relations with the business community. The Company's dealings with local businesses are strictly positive and educational in nature, with complete emphasis on protection of confidentiality, cooperation and assistance. This produces the desired gain in City revenues while maintaining positive relations with the City's businesses. • HdL provides management reports and trending data that provide insight into real estate value changes and the implications on budget forecasting for general fund revenues, Successor Agency tax increment and potential residual revenues relative to the former redevelopment agency. • 21 years of historical property tax data is available from HdL as archived from county assessor data. This unmatched data set places the company in a unique position to develop specialized City defined parcel and business property analyses necessary for economic planning and forecasting. • An unparalleled reputation for providing quality services promptly and efficiently. A review of our performance with the included references will affirm HdL's reputation for providing business-friendly and cost effective recovery of misallocated or uncollected revenues, as well as; timely and relevant reports, analysis and management support. ComRany Profile HdE`%� C.0M11ANi£5 Hinderliter, de Llamas & Associates • HdL Coren & Cone • HdL Sof=tware, LLC 1340 alley Vista Dir, SWte 200 Diamond Bar. CA 917 9) 861-4335 www.hd1cog,npanies.com Founded in 1983, HdL is a consortium of three companies established to maximize local government revenues by providing a variety of audits, analytical services and software products. Its audit and consulting services include sales, use and transaction taxes, property taxes and documentary transfer fees. The firm also provides a variety of enterprise software processing tools for business licensing, code enforcement, animal control, building permits and tracking/billing of false alarms. HdL's systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 380 agencies in six states. The firm currently serves 43 counties, 281 cities and 83 transactions tax districts in California. Hinderliter, de Llamas and Associates was founded in 1983 with the development and provision of the first computer software system in California to allow local governments to independently track sales and use tax revenues. The Company secured passage of ABI 161 which allows local agencies to verify the Board of Equalization allocation of revenues and is responsible for much of current methodology and processes used by all California agencies to maximize their sales, use and transactions tax revenues. HdL�` 2 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Repoftin City of San Juan.Capistrano May 22, 2015 HdL Coren & Come (Hc LCC)was founded in 1990 to provide property tax management, trending and audit services to local government, HdL Caren & Cone maintains property tax data.from 40 California counties, including all cities and former redevelopment project areas in those counties. Services provided include property tax management services, successor agency fiscal reporting, brand fiscal analysis. secured and unsecured parcel audits, assessment district processing, and general.fund budget and tax increment projections. The Company goes beyond audits by using its databases and expertise to help clients expand their revenues by identifying economic voids; finding local companies that can restructure the way orders are taken to increase local sales tax revenues, ascertaining opportunities for expanding use tax from.construction projects; seeping prospects for direct payment permits and purchasing corporations and by providing staff expertise to support a proactive and effective approach to short and long term fiscal and economic planning. HdL. also serves as "on-call" staff to provide sales and property tax estimates for proposed projects, assist with budget projections and answer sales and use tax questions related to economic development, budgeting and related revenue colleotion. When requested by the City, principals also meet with ccirr mittees of the City Cou.n oil and: rather groups to explain tax reguiabons and their importance to the Cony's tax base. All of HdUs key staff has extensive experience serving local government and many have previously held positions in c y management, finance, planning, economic development or revenue collection. HdL is a. Corporate Partner of the League of Califomia Cities and California State Association of Counties, and works extensively with the County Auditor's Association of California., California Society of Municipal Finance Officers (CSI~FO) and. California Municipal Revenue and Tax Association (CMRTA)on anticipation and planning of programs to sfreVhen local government revenues. This cfose understanding of local government needs couple with extensive datatba es and advance methodology provides for the most relevant, productive and responsive, revenue .recovery, forecasting and economic services available. Please feet free to contact us if you have questions or need additional information, We can be reached at 90 .861.43.35 or by email at nic hd[com.papiesgom.and &one cPropertvtAx Sincerely, 47y,. Andrew Nickerson Pella Cor* President 'resident Hinderliter, de Llamas &f\ssociat s HdL Coven &Cane Ery 3 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 B. TABLE OF CONTENTS A. LETTER OF TRANSMITTAL....................................................................................1 B. TABLE OF CONTENTS ......................................................................4 C. SUMMARY SHEET 1. Summary Sheet...................................................................................................5 2. Key Personnel.....................................................................................................8 3. Resumes for Management Contact and Project Manager............—....... ...........13 D. ALLOCATION OF RESOURCES 1. Sales and Use Tax Services..............................................................................16 2. Property Tax Services ....................................................................................... 19 E. SCOPE OF SERVICES 1. Sales and Use Tax Services..............................................................................22 2. Property Tax Services .......................................................................................30 F. SAMPLE REPORTS 1, Sales and Use Tax Services..............................................................................37 2. Property Tax Services .......................................................................................90 G. REFERENCES........................................................................... ......... 107 H. CERTIFICATION OF QUOTATIONS.,........ ...... .......... ....... ......All Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 21315 C. SUMMARY SHEET 1. Please see Appendix B Summary Sheet on the following page. 5 APPENDIX B SUMMARY SHEET Firm Name: HINDERLITER, DE LLAMAS &ASSOCIATES - SALES TAX. Firm Parent or Ownership: 100% Employee Owned Firm Address: 1340 VALLEY VISTA DRIVE, SUITE 200 DIAMOND BAR, CA 91765 Firm Telephone Number: 909.861.4335 Firm Fax Number: 909.861.7726 Number of years in existence. 31 Management Contact (person responsible for direct contact with the City of San Juan Capistrano and services rewired for this Request for Quotation): Name: ANDREW NICKERSON Title: PRESIDENT Telephone Number: 909.861.4335 Fax: 909.861.7726 - Email: anickersonC&hdlcompanics.co Project Manager (Person responsible for day-to-day servicing of the account): Name: ANDREW NICKERSON Title: PRESIDENT Telephone Number: 909.561.4335 Fax: 909.861.7726 Email: anickersoil@hdlcoi-npaz-ies,com Types of services provided by the firm: Sales and Use Tax Audit and Reporting Services 27 s APPENDIX B SUMMARY SHEET Firm Name: HdL Coren &Cone -PROPERTY TAX Firm Parent or Ownership: S Corporation Firm Address: 1340 VALLEY VISTA DRIVE, SUITE 200 DIAMOND BAR, CA 91765 Firm Telephone Number: 909.861.4335 Firm Fax Number; 909.861.7726 Number of years in existence: 31 Management Contact (person responsible for direct contact with the City of San Juan Capistrano and services required for this Request for Quotation): Name: ANDREW NICKERSON Title: PRESIDENT - HdL Telephone Number: 909.861.4335 Fax: 909.861.7726 Email: anickerson@hdlcompanies.coin Project Manager (Person responsible for day-to-day servicing of the account): Name: PAULA CONE Title: PRESIDENT - HdL COREN &CONE Telephone Number: 909.861.4335 Fax: 909.861.7726 Email: pcone@b.dlccpropert�,tax.coz-�. Types of services provided by the f'T m: Property Tax Audit and Reporting Sergi=,ces and Statistics fl Reporting Package for the Comprehensive Annual Financial Report 2'7 7 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 2. Key Personnel Sales Tax - Hinderliter de Llamas &Associates Andrew Nickerson — President, Management Contact and Project Manager Mr. Nickerson has over 23 years of experience working with local agencies on programs to enhance sales tax, property tax and documentary transfer tax revenues and would oversee the City of San Juan Capistrano's sales tax contract. Mr. Nickerson has been instrumental in guiding market expansion and new product development for the three affiliated companies. He is responsible for the day-to-day management of the companies' sales tax programs and services. Throughout his career, he has been involved in various municipal organizations, including The League of California Cities, California Society of Municipal Finance Officers and California Redevelopment Association. Mr. Nickerson holds a Bachelor of Science degree from California State Polytechnic University Pomona. Sales Tax arlaen'int Te Three sales and use tax principals and a management analyst will provide the City of San Juan Capistrano with sales tax analysis, budget and revenue management services. The team will advise the City on economic development opportunities, including analyzing the City's sales tax data for presentations and preparing sales and use tax revenue estimates of various terms up to five years. A principal will also meet with City staff each quarter to present the City's quarterly reports and address any issues or concerns. Providing these services to the City are: Sheri Peasley-- Principal Ms. Peasley assists clients with budget and sales tax revenue issues. She has over 20 years' experience in municipal finance including eleven years as Finance Director/Treasurer for the City of Westminster and as Administrative Services Director/Treasurer for the City of La Habra. Ms. Peasley is a Certified Public Accountant (inactive) and has a Bachelor of Science degree in Business Administration from California State University Long Beach. Don !festal —Principal Mr. Vestal performs sales tax analysis, conducts quarterly client briefings and assists clients with budget and economic development issues. He has been with the firm since 2007. In addition, he has over 29 years of local government experience with the cities of Westminster and Norwalk. During his tenure with the City of Westminster, he served in successive assignments as Planning Director, Community Development Director, Deputy City Manager/Public Works Director and City Manager. As Executive Director of the Westminster Redevelopment Agency, he led the expansion of the Agency's project area throughout the City to fund needed residential infrastructure repairs and participated in numerous revenue generating development projects. He has a Bachelor's degree in Political Science from Georgia Southern University, where he was a member of the international economics honorary Omicron Delta Epsilon, and a Master's degree in Public Administration from California State University, Long Beach where he was member of the national public affairs and administration honorary Pi Alpha Alpha. Proposal for Sales Tax and Property 'Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 Bobby Young— Principal Mr. Young has over 20 years of local government experience, most recently serving as the Finance Director for the City of Costa Mesa. During the majority of his tenure, he led the City's strategic financial planning and decision making through the Great Recession. Prior to his employment in local government, he was an external auditor of government and non-profit entities specializing in assessment and documentation of internal controls and annual review and preparation of client's Comprehensive Annual Financial Report (CAI=R). He has also been an active member in municipal affairs with both the Government Finance Officers Association and California Society of Municipal Finance Officers. He holds a Bachelor's degree from California State University, Fullerton in Accounting. Robin Sturdivant—Associate, Local Government Advocate Ms. Sturdivant has participated in thousands of point-of-sale audits since joining HdL in 1995. As Senior Auditor and HdL's Local Government Advocate, her primary responsibilities are research, investigation, and analysis of highly complex sales and use tax cases. Ms. Sturdivant is a primary interface with clients, taxpayers, and State Board of Equalization officials. She is instrumental in the preparation and presentation of appeal cases and regularly reviews taxpayer files in Sacramento and meets with Board staff and management. She has developed an extensive list of key contact people within major corporations in California with whom she regularly corresponds when a point of sale issue arises. Prior to working with HdL, Ms. Sturdivant was a private sector business manager. AUdiit Services Team Our Audit Services Director and Local Government Advocate have over 40 years combined experience auditing local tax, place of sale and SBOE administrative issues. The firm has continually adapted to legislative changes, SBOE regulation changes, and technology advances and will utilize these tools for the City of San.Juan Capistrano. HdL has an audit team in place that is very well trained and familiar with the state regulations and guidelines concerning tax reporting for the City. Matt Hinderliter— Director of Audit Services Mr. Hinderliter manages and supervises HdL's Sales Tax Audit Team. He joined the firm in 1990 after receiving his Bachelor of Arks degree in Business Administration from California State University, Fullerton, and during his 25 year tenure has directly participated in thousands of point of sale audits. Mr. Hinderliter developed and routinely updates an extensive training manual for the audit team, including information regarding complex point of sale issues and proposed changes in legislation and regulations. He created and continues to refine a multi-level audit process, which combines field reviews with extensive in-house data mining and analysis. As Director of the Audit Team he is primarily responsible for quality control, and for ensuring that HdL audit techniques and programs remain at the leading edge through continuous innovation and improvement. A.P. Mehta—Associate Director of Audit Services Mr. Mehta is the lead analyst for the audit services team. He works closely with the Director of Audit Services on operational and management aspects of the team, supervises and trains audit team members and is a principal liaison with State Board of Equalization Allocation Group staff. Mr. Mehta holds a Bachelor of Science degree in Business Administration from California State Polytechnic University, Pomona. E-,- 9 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 Production Services Team Our Production Team insures that the data from the State Board of Equalization is processed in an accurate and timely manner and is available to the City on our sales tax web application. The team is responsible for running the reports that are delivered at the quarterly meetings with the City staff, as well as processing any special report requests. Robert Gray— Director of Information Technology Mr. Gray serves as Director of Information Technology and has been with the firm since 1996. He has extensive experience in the design, development, implementation and support of software systems for local government. To date, he has played a key role in the design of 8 software systems and approximately 200 successful implementations of those systems. His passion for the end user, combined with his strong technical background, culminate in software designed both for ease of use as well as minimal burden to IT staff. He earned a Bachelor of Science degree in Computer Science and a Master's degree in Business Administration from Azusa Pacific University. Linda Butterfield --Director of Production Services Ms. Butterfield has been with Hdt_ since 1989 and supervises the conversion of the State Board of Equalization sales tax data to HdL's proprietary software and its subsequent translation into various client reports. She assists with client technical support and client software training, and she is responsible for the production of client newsletters and reports. Ms. Butterfield received a Bachelor of Science degree in Business Administration from Woodbury University. Her financial experience and background includes both the public and private sectors. 10 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 iroRerty Tax Services— HdL Caren & Cone Paula Cone—President, Project Manager Paula Cone is a principal with HdL Coren and Cone, the property tax arm of the HdL Companies, and has over twenty years of municipal experience in finance and city management and 24 years of property tax analysis, local agency interface and audit review experience. She joined the firm in 1990 to oversee the development of the property tax analysis, audit and software elements in use today. She developed the first cost- effective and accurate computer program for identifying, monitoring, auditing and correcting property tax misallocations, Ms. Cone oversees the company's property tax management and auditing division which is also responsible for verifying and correcting jurisdictional and boundary errors. She and her team have identified errors which have resulted in a redistribution of net tax revenues of $52.6 million to client agencies since 2000. The property tax database is also used to verify jurisdictional and boundary errors for sales tax audit purposes. Ms. Cone earned her Bachelor's degree from California State University, Long Beach in 1969. She is former Parks and Recreation Director and Assistant City Manager for the City of Lawndale. dit r duction Te Our Audit and Production Team insures that the data from the Orange County Assessor is processed in an accurate and timely manner and is available to the City on our property tax web application. The team has been performing audits of assessments and allocations for over 30 years combined and have the skills and expertise to navigate new and potential changes that may impact allocations. The team is also responsible for running the reports that are delivered at the annual meetings with the City staff, as well as processing any special report requests. Nichole Cone — Vice President, Principal Nichole Cone has 21 years property tax analytical and processing experience since joining HdLCC in 9992. She specializes in understanding the data received from Assessor & Auditor, used for secured and unsecured parcel audits, and property tax analysis. She supervises the secured and unsecured audit staff and staff in change of reports production and handles most special projects. Ms. Cone holds a Bachelor of Arts degree from Loyola Marymount University. Robert Scherer— IT Manager Robert Scherer joined HdLCC in 2004. He is responsible for the integration and preparation of County data into the HdLCC system, and is the supervisor and lead designer of HdLCC's property tax analytical reports system and manager of all programming staff. Mr. Scherer earned his Bachelor's degree in Business Administration, Computer Information Systems from California State Polytechnic University, Pomona. Sccesscr Aort ri er The dissolution of redevelopment agencies has been a complicated and confusing process for City and Successor Agency staff. Our associates are experienced and up to date on the legislation dissolving redevelopment agencies and on the most current rule changes and interpretations. Our associates are extremely qualified to assist City staff with navigating these complex issues. 11 Proposal for Safes Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 David Schey— Project Lead, Successor Agency Support David Schey has 18 years of experience with HdLCC since joining the firm in 1994. His prior experience includes service as Planning Director, Community Development Director and Deputy Director of Redevelopment as well as having provided development and consulting services to municipal clients. As a principal with HdLCC, Mr. Schey has provided client services in connection with tax allocations bonds; property tax and tax increment issues; tax sharing calculation; and analysis of legislative actions. David has spoken at numerous conferences and seminars sponsored by the California Redevelopment Association and the League of California Cities. In addition to his professional work in connection with local government, David served for over six years as a member and chairman of both the Planning Commission and Parks and Recreation Commission. Mr. Schey holds Bachelor of Arts degrees from both the University of California; Los Angeles and California State University; Long Beach, and a Master of Public Administration from the University of Southern California; Los Angeles. Cheryl Murase—Principal Cheryl Murase joined HdLCC in 1997 after five years with O'Connor & Company Securities as a Vice President. Prior to that, Ms. Murase worked for a California municipal financial advising firm for five years in Senior Associate and Associate positions where she gained experience in structuring a wide variety of issues including tax allocation, certificates of participation, Marks-Roos and Mello-Roos issues. Her understanding of county assessments of property value and tax collections has aided in the projection of tax increment revenue. She has assisted clients with the various government reporting requirements, and has gathered information necessary for continued rating of debt. Ms. Murase gained her municipal accounting background from working in a variety of capacities for the cities of Montebello and Commerce. She served as the Redevelopment Accountant for the City of Commerce. Joel Hermann —Programmer, Analyst ,Joel Hermann has been with The HdL Companies for 18 years, 13 of those with HdL Coren & Cone as a Software Developer. Mr. Hermann studied Computer Science at the University of California, Riverside. He is a key developer for both the HdL Coren & Cone Property Tax Web Application and The HdL Companies web ;..,Ite. Mr. Hermann has been in charge of training our clients on the use of the Property '''ax Web Application for the past 3 years and has recently added the responsibilities of i Associate. Hd1f, 12 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 3, Resumes for Management Contact and Project Managers a. Management Contact for Proposal: Andrew Nickerson m President, Hinderliter, de Llamas &.Associates b. Project Managers: Sales and Use Tax Services - Hinderliter, de Llamas and Associates Andrew Nickerson, President Property Tax Services - HdL Coren & Cane Paula Cone, President z,ef,r„ 13 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 Andrew Nickerson Experience Hinderliter,de Llamas&Associates-President: 2011 -Present ■ Lead the strategic planning, sales and management operation of this market leader in sales tax,audit and information services. Led the development of a web-based sales tax application that offers HdL clients immediate access to the latest Board of Equalization sales, use and transactions tax data and quarterly reports. Forged business affiliation with Beacon Economics, Equity Recovery Solutions and Cost. Control Associates to expand service offerings to local government agencies. Initiated HeadLines,a bi-weekly e-news service that provides up-to-date information on trends affecting California's economy. HeadLines is currently being circulated to over 1,400 subscribers. HdL Caren&Cone- Vice President of Sales and Operations: 2002 -2010 Lead the product development and sales activities for this provider of government tax consulting services and related software products. Manage major accounts that generate over $2.5 million in annual revenues. Prepare marketing proposals and deliver sales presentations to prospective clients. Meet annually with clients to review and discuss management reports and assist with budget projections. Enhanced revenues by identifying and developing complimentary products and services that were marketed to existing clients. Forged a strategic partnership with ESRI,a California based technology firm,enabling HdL to rapidly expand the utility of existing software applications. Streamlined a manual process for auditing real estate transfer tax revenues, significantly reducing staffing requirements and increasing revenue recovery. Spearheaded the in-house conversion of a 15 year old business critical database and software application increasing the companies' capabilities and enabling the firm to expand services to additional clients without adding extra staff, HdL Coren&Cone-Production Manager; 1997- 2002 Managed the team responsible for producing semiannual property tax reports and executive summaries for over 100 California cities. Guided IT staff in expanding the capabilities of the firms' proprietary software applications. Designed systems for importing and maintaining property tax records from 35 California counties into a customized database format. Provided on-site software training and technical support to client agencies. Facilitated special projects and requests from strategic business partners. HdL Coren&Cone-Associate: 1992 - 1997 ■ Conducted database research of tax records and contacted business owners to verify sales tax information. Performed sales tax and property tax revenue audits for client agencies. Coordinated audit recovery with local, county and state agencies. Analyzed tax receipts for development projects and tax sharing agreements. Education • Bachelor of Science,tipsiness Administration (Concentration in Finance,Real Estate,and Law) California State Polytechnic University,Pomona 1992 14 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 Paula Cone Experience HdL Caren&Cone-President/Partner: April 1990- Present ■ Founding partner of Hdf, Coren & Cone the property tax company aligned with the HdL Companies. Completed the development of the first cost-effective and accurate program for identifying,monitoring,auditing and correcting property tax misallocations. Instrumental in the development and creation of the analytical and management report that have become the standard in the industry of trending and forecasting revenue and property value changes. Oversees the company's property tax management service and client interface. Over the past 23 years the company has grown to serving 190 local agencies in 4.0 counties in California. City ofLawn dale-Assistant City Manager: January 1.981-March 1990 ■ Served as the Assistant City Manager responsible for the departments of Finance, Personnel, Risk Management, Emergency Management, Animal Control and Parking Enforcement, and Cable Television.Served as the staff to various commissions,committees and the city council for projects and support. Responsible for both the program development and staff supervision of departments and projects assigned. City of Lawndale--Director of Parks and Recreation July 1970-January 1989 ■ Responsible for the staffing and programming of recreation facilities. Major responsibilities included coordination of adult and youth sport leagues, senior citizen programming, pre- school/tiny tot programming, planning of after school and vacation special events, and the development of junior high school special events. The position also included application and securing of grant funds for facility expansion, joint powers coordination with local school sites for after school programs,and involvement in the development and construction of new facilities. Education ■ Bachelor of Science,Kinesiology/Physical Education-California State University,Long Beach, 1970 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 D. ALLOCATION OF RESOURCES 1. Sales and Use Tax Services: Hinderliter, de Llamas and Associates currently provides sales and use tax audit and consulting services to 335 local agencies and 78 Transaction Tax Districts throughout California, and will provide all services requested to San Juan Capistrano as requested in the RI;Q. Implementation of HdL's sales tax services would be seamless without any loss of historical data or interruption in audit, reporting and support activity. HdL maintains San Juan Capistrano's historical sales and use tax data back to 1992 and has been providing audit and analytical services to clients in the Orange County region for decades. The HdL Advantage includes: Exceptional Personnel: The HdL team is vested in your success, We are 100% employee owned and view your success as our success, Many of our key employees previously served local government agencies in positions of management, and have extensive experience in economic development, finance and revenue collection. We use a team approach so that there is always someone available to take your questions during our normal business hours of 8:00 am — 5:00 pm. Audits: HdL has the largest database outside of the Board of Equalization which allows for a "fresh" look at revenue collections. This advantage coupled with the HdL's advanced technology and processes consistently finds allocation errors and revenue opportunities often missed by other firms. Forecasting: HdL has developed a comprehensive, detail-oriented method for projecting and monitoring client sales and use tax revenues that has proved to result in estimates that fall within 1% of actual receipts two-thirds of the time. Reports and Services: HdUs analysis is done in context with the surrounding market region to better identify retail trends, voids and opportunities. The service includes a custom non-confidential newsletter that can be shared with the Council and community. The firm's sophisticated economic support program provides special reports and data to assist the City in monitoring and leveraging existing economic development programs, identifying new revenue opportunities and maximizing use tax revenues. Software: Our web-based sales tax application is user-friendly, and offers clients immediate access to current and historical sales tax data. The application allows for easy printing of reports and data export to other systems or programs. Quarterly reports are available on the website within 5 days of receiving the Quarterly Data Report from the SBOE. Seamless Transition: As recent converts will attest, switching sales tax services to HdL is seamless without any loss of historical data or interruption in audit, reporting and support activity. 16 Proposal for Sates Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 Project Staffing and Hours HdL employs a team approach for both analysis and management support services and for its point of sale audit work. With respect to analysis and administrative support, this provides superior continuity of service and responsiveness by ensuring an HdL Principal familiar with the City is always available to answer a question or provide additional data as needed. An overlapping team approach to the point of sale audit work ensures that audits are completed in a timely and very thorough basis. HdL has the "depth of bench" to scale allocation of personnel and hours to meet whatever the City's current needs are, rough estimates of time needed based on current clients of similar size are: Data Analysis, Client Meetings & Phone/email Support (Principal) — 10 hours per quarter Physical Field Canvass (Audit Team) —24 hours every 10-12 months In-House Follow Up on Field Audit Leads (Audit Team) — 40 hours per complete field canvass Ongoing In-House Database Reviews for Allocation Errors (Audit Team) — 10 hours per quarter Project Communications HdL has developed a streamlined approach to project management and delivery of its sales tax services. At the beginning of the project, HdL requests the City to provide a primary point of contact for communicating the following: • Scheduling quarterly sales tax meetings • Distributing audit "work authorizations" • Distributing quarterly audit reports • Coordinating special training sessions for City staff, elected officials or special boards • Preparing/updating geographic study areas or proposed annexations In addition, HdL coordinates with the City to ensure that all authorized City staff are provided access to the following services: • HdL's web-based client sales tax application • HdL's bi-weekly Headlines e-news service Sales tax issue updates = Legislative updates Project Schedule: Services under the proposed contract would comme,':ce immediately upon receipt of the executed agreement. Audit activities will be proms Liy conducted on each new quarter's data to identify those accounts requiring further res ..arch. Allocation errors and supporting documentation will be filed with the State Board r , Equalization in time to meet the state's statutory time limits to ensure that the City does of lose any revenue to which it is entitled. Training on use of HdL's web-based applic:�tion used to access the sales and use tax database will be scheduled at a time convenient to the City staff that are authorized access to the confidential information. 17 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San duan Capistrano May 22, 2015 A typical implementation timeline is below: e J.- pm ! E 1 Kick Off Meeting with City Follow up field Invoices are staff. report and submittal submitted quarterly of all confirmed (February, May, misallocations to August and City staff provided access to the Board of November) Hdl_'s web based sales tax Equalization application Meetings to Work authorization present quarterly Sales tax PDF reports a detailing initial reports are posted to website; °. - findings are scheduled within 3- W .. . .. submitted fa the 5 weeks of HdL's Initial field canvas is City for approval ry receipt of quarterly ....:..Completed_ :.::: allocation data from the;Board of Audits are performed and l�qualatan:+ documented. Petitions are then prepared Use tax maximization presentation �a Proposal for Safes Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 2. Property Tax Services: HdL Coren &Cone(HdLCC) currently provides property tax audit and information services to 194 local agencies throughout California, and will provide all services requested to San Juan Capistrano as requested in the RFQ. Implementation of HdLCC's property tax services would be seamless without any loss of historical data or interruption in audit, reporting and support activity. HdLCC maintains San Juan Capistrano's historical lien date property tax data back to 1990 and has been providing audit and analytical services to clients in the Orange County region since 1992. Advantages to using HdL Caren & Cone's property tax services include: Exceptional Personnel: The HdLCC team serves as a daily resource for any and all property tax questions and issues. Many of our key employees previously served local government agencies in positions of management, and have extensive experience in economic development, finance and revenue collection. We use a team approach for inquires so that there is always someone available to take your questions during our normal business hours of 8:00 am —5.00 pm, Audits: HdLCC's audit team has developed specialized databases and audit techniques and is thoroughly familiar with Orange County. This familiarity and excellent working relationships with County departments will allow San Juan Capistrano to recover all misallocated property tax revenue in a timely manner. Forecasting: HdLCC has developed a comprehensive, detail-oriented method for projecting property tax revenues for our clients that has proven results. Residual revenue distributions are also estimated to help cities plan property tax revenue from all sources. Reports and Services: HdLCC's analysis is done in context with the surrounding cities in the county to better identify regional value changes and trends. The service includes reports that, because of their non-confidential nature, can be shared with the City Council or the public. Specific reports related to reductions and value restorations performed by the Assessor during times of economic downturns (Proposition 8 reductions) are also provided. Software: Our web-based property tax application is user friendly and offers clients immediate access to current and historical property tax data. The application allows for easy printing of reports and data export to other systems or programs. Annual data is available on the website within 45 days of receiving the lien date roll from Orange County and updated monthly with transfers of ownership and quarterly with assessment appeals information. Our software allows for an unlimited number of users for the price quoted so there are no extra fees for access for additional personnel. Seamless Transition: As recent converts will attest, switching property tax services to HdLCC is seamless without any loss of historical data or interruption in audit, reporting and support activity. 19 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 Project Stang and Hours Data Request, Data Processing, Review and Preparation for Reporting — 30 hours annually Data Analysis, Client Meetings& Phone/email Support (Principal) — 15 hours annually Physical Field Canvass (Audit Team) — 12 hours annually In-House Follow Up and Preparation on Audit Submittals(Audit Team)--10 hours annually Ongoing In-House Database Reviews for Allocation Errors (Audit Team) — 10 hours per quarter Project Communications HdLCC has developed a streamlined approach to project management and delivery of its sales tax services. At the beginning of the project, HdLCC requests that the City provide a primary point of contact for communicating the following: • Scheduling annual property tax meetings • Distributing quarterly appeals and transfer of ownership reports • Coordinating web application training for City staff • Preparing/updating geographic study areas or proposed annexations In addition, HdLCC coordinates with the City to ensure that all necessary City staff are provided access to the following services: • HdLCC's web-based client property tax application • Property tax issue updates • Property tax reports addendum Project Schedule: Services under the proposed contract would commence immediately upon receipt of the executed agreement. Audit activities will be promptly conducted upon receipt of annual property data files from the Orange County assessor. Training on use of HdLCC's web-based application used to access the property tax database will be scheduled at a time convenient to the City staff. 20 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 A typical implementation timeline is below: ................. Kick Off Meeting with City Annual delivery of Invoices are staff. preliminary property submitted quarterly, .......... tax materials to staff (February, May, .. :.(October .:August and City staff provided access to ::Novem er November)�:.;::.::.�.::. HdLCC's web-based propetax t. rty. .appicaJon, --:-.A,, Addenclu.m.tox. . .. 1 First quarterly appeals property tax reports and transfers of reports provided ownership dW City C Via email. ail. ;, April) 2015-16 Property Tax v—----- Estir'nates::wiIl.be furnished.z.:31 Secured and unsecured audits are prepared and submitted within 90 days of Checklist of items needed :the:teceipt.of thabewest f.rom.CitV..staff:sent .�.:::..:,: Secured and unsecured audits arep repared and submitted within 90 days of the receipt of the newest.. rolf.data. Hdtf� C:1 Mr A Hk A 21 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 E. SCOPE OF WORK Sales Tax I. General Strategy a. Sales and Use Tax Auditing Over the last decade, administration of sales and use tax revenues has become increasingly complex. The State Board of Equalization now processes returns from over 1.2 million active accounts, some having 200 or more sub outlets. The difficulty of properly allocating the local share of revenues has been compounded by the constant turnover, selling and consolidation of businesses, evolving regulations impacting the allocation of sales and use tax from e-commerce, warehousing and construction projects and the trend of larger companies to outsource order taking and distribution as well as tracking and filing of their state tax returns to other firms. If not monitored closely, allocation errors can accumulate to the point where agencies pay exorbitant fees for recovery of revenues lost because of insufficient tracking and poor follow-up. HdUs systematic approach minimizes these costs by: • Reduction of errors through detailed quarterly analysis and advanced data mining techniques to insure correct permit registration information. • Ongoing monitoring to insure that errors that do occur are quickly identified and not allowed to age and become inordinately large, • Aggressive monitoring and follow-up on claims to the Board of Equalization to insure rapid turn around and reduction in the amount of fees associated with retroactive payments. HdL maintains a secure internal system which contains the City's data back to 1992. HdL's extensive database is supplemented with quarterly updates from the SBOE, and continually reviewed and enhanced by staff to improve quality. HdL provides approved City staff with unlimited access to our web-based sales tax system to facilitate in-house analysis and printing of reports. The system allows City staff to search all sales tax producers in the City by business name, address, SBOE account number and current or historical sales tax allocations. b. Role of City Staff; HdL's services are designed to require minimal involvement of the City's valuable staff resources. Should the City choose to engage HdL for these services, our firm would require the following assistance to successfully complete the services. • The name and contact information for our primary point of contact and other key contacts. • The name and contact information for the ind;vidual responsible for scheduling quarterly sales tax meetings. • The name and contact information for the in:�ividual responsible for reviewing and authorizing Work Authorizations. Hd L`r 22 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 • A listing of all staff (names and email addresses) the City would like to be authorized access to HdL's web-based sales tax system. • The name and contact information for submitting quarterly invoices. c. Interaction with the SBOE HdL submits an average of 5,000-5,500 claims a year including complex industrial, e-commerce, distribution and out-of-state misallocations that require specialized knowledge and methodology to identify and correct. HdL ensures that its claims are corrected in the timeliest manner possible by employing a full time case manager and Local Government Advocate;whose sole responsibility is to monitor and work with the Board of Equalization to insure that cases are not allowed to idle, and are instead aggressively pursued and processed. HdL employs a polite and professional approach when working with the City's business community; maintaining a careful balance between compliance and revenue collection, and tactfulness, sensitivity and taxpayer education. Taxpayer interviews are always conducted in a business friendly, non-intrusive manner that emphasizes cooperation and protection of confidentiality. d. Sources of Information HdL currently has all of the information necessary to provide quarterly analysis and management support, and to perform point of sale audits. Our primary information source is the SBOE registration and allocation data, which is updated quarterly. HdL has historical data for the City back to 1992 through our long-standing relationship with the County of Orange. The following items would be required from the City to complete the transition: • An executed agreement. • Copy of a Board Resolution authorizing HdL access to the City's sales tax data. • List of active audit claims filed by previous vendor or City to avoid duplication and taxpayer confusion. • Address parameters, maps or GIS shape files of any geographic areas that City wishes to segregate for analytical purposes. • Placement of HdL on mailing list of major planning and construction permit activity (if City wishes HdL to pursue use tax maximization opportunities). 2. Audit Objectives and Methodology To achieve the highest audit and recovery results, HdL employs the following audit techniques and programs: a. Identification of Errors and Revenue Maximization Opportunities Field Surveys: Field inventories of the City's business and industrial areas are conducted every 10-12 months to identify businesses located within the City that appear to be under-reporting revenues or are not on the SBOE allocation rolls. Specially trained field auditors, using the latc.:,st in mapping, GPS and digital recording technology, document not only the existence of sales tax producing businesses but also any relevant factors such as size, presence of a large stock of 23 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2075 goods, will-call windows and any specific references to sales activity. This process identifies a wide range of registration errors including erroneous consolidation of multiple outlets, misreporting of point of sale from an erroneous location and delays in reporting new outlets. Tax Area Code (TAC) Review: HdL reviews every active account on the SBOE's allocation rolls reporting $50 or more in local tax to ensure proper TAC assignment. Government and private sector mapping and GIS databases are used extensively in this process. These programs are important because physical canvassing will not reveal businesses with missing or incomplete signage, or those that are home- based. A complete TAC review is performed at least once every 9-12 months. Deviation Assessment: HdL applies proprietary queries and analyses to its statewide allocation database to identify all accounts for which there has been a substantial change in allocation pattern. HdL's database, unmatched in size, comprises over 98.5% of all sales and use tax transactions in California and allows for the most comprehensive audits in the state. The deviation review is performed every three months and is far more sophisticated and thorough than a review of the SBOE's published Quarterly Distribution Report. The review is applied to direct allocations and to the county pools, and allows for a much broader view and understanding of what has happened in any given quarter. Well-founded leads are quickly culled from this process, often without the need for time-consuming manual reviews of taxpayer files. This allows for faster processing and less time used for preparing submittals. This in turn lowers recovery fees by reducing the amount of prior quarter revenue requiring redistribution. Use Tax Errors and Opportunities: State Board of Equalization Regulation 1802(4) allows for direct allocation of local use tax on qualifying individual sales or purchases over $500,000. Under Regulation 1699.6, businesses and organizations (including local government agencies) with aggregate purchases subject to use tax of at least $500,000 per year can apply for a Use Tax Direct Payment Permit, allowing for direct allocation of the corresponding local share. Finally, under a resolution adopted by the SBOE in December of 1994, a construction contractor who enters into a contract equal to or greater than $5,000,000 may elect to obtain a sub-permit for the jobsite resulting in a direct allocation of local use tax to the jurisdiction where the jobsite is located. HdL analyzes the use tax allocation pools of the 58 counties and the state each quarter to identify instances where a taxpayer may have misidentified a transaction as use tax rather than sales tax. Further specialized reviews and techniques are employed to identify direct allocation opportunities of local use tax. Regulation 1699 Evaluations. SBOE Regulation 1699 controls when and where a permit should be issued to a given business location. Wholesalers, contractors, processors, manufacturers, and other nor-retail businesses that do not normally sell merchandise often conduct occasional sales, self-accrue use tax or are levied deficiency assessments by the state. HdL uses proprietary methods for finding companies that should be taking out permits so that those revenues are allocated to the City. L 3 F�'q 24 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 b. Monitoring and Recovery of Misallocated Revenue Development of Correction Data; Preliminary lead lists developed through any of the aforementioned audit programs are further culled using a variety of programs and databases to reduce the need for taxpayer contact. Companies remaining in the audit database are then contacted by a specialized audit team whose members are specifically selected and trained to interview tax preparers and marketing, warehouse and management staff. Taxpayer interviews are always conducted in a business friendly, non-intrusive manner that emphasizes cooperation and protection of confidentiality. Documentation Standards: HdL files claims that are supported by a high level of documentation. Factual and corroborating information are thoroughly researched and explained for ease of comprehension by the Board of Equalization staff and other who may become involved in deciding a case. In addition, HdL anticipates what questions might arise and provides extra information as necessary to provide answers beforehand. In some instances cases filed with supporting documentation have been confirmed and corrected by SBOE Allocation Group staff in as little as 2- 3 days. To gather the necessary factual information to support a claim, telephone contacts are made to the taxpayer; these are often accompanied by a written follow-up questionnaire concerning business activities, a specific one-time transaction or a written confirmation of our findings. The documentation submitted with our petitions has three direct benefits. It minimizes SBOE processing time and thereby ensures faster recovery of misallocated revenues. Secondly, it lowers audit fees payable by the client by reducing the number of quarters requiring retroactive adjustment and perhaps most importantly, sharply reduces the incidence of case appeals by the losing jurisdiction. Case research and documentation also includes, where appropriate, reviews of taxpayer files for any evidence of a prior SBOE date of ki--'.Mledge that may allow for the reallocation of revenue from additional prior periods: City Review: To avoid potential conflicts with a City in-house audit efforts, HdL prepares a list of misallocated or under-reporting " sinesses for City officials to review and authorize prior to any invoicing. This Ile item, account-level approval process is an important step in eliminating any mi - nderstandings or disagreements regarding what may be considered a valid audit 'find.,' Preparation and Submittal of Corrections: R Jtions are prepared (SBOE Form 549- S or 549-L) that notify the SBOE the existe ice and nature of the misallocation. All relevant and available supporting doc- -nentation is included. Copies of all transmittal forms and correspondence w' ri the SBOE and taxpayers are sent to City staff. Continuous Follow-up: HdL employ' a full-time case manager whose responsibility is to monitor and follow-up on case inventory. An aging report is updated and reviewed on a monthly basis and the appropriate follow-up is initiated on cases that are taking an inordinate amount of time to correct. This follow-up emphasizes H d L�"' 25 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 partnership and cooperation with SBOE Allocation Group staff. HdL's continuous efforts to check on the status of submittals are made to ensure that corrections are being pursued. Timely follow-up on cases reduces the time it takes for the City to recover its revenue. Appeals: Appeals are relatively few due to the extra effort HdL expends in gathering and presenting the relevant facts to support a correction of previously allocated revenue. Strong documentation at the outset reduces the number of cases that are initially disclaimed and must be further researched and defended through a very lengthy SBOE appeals process. Nearly all HdL cases are resolved favorably at either the first or second levels of the SBOE petition process described in Regulation 1807. HdL has cultivated close working relationships with the SBOE Appeals Division and with each of the elected Board Members. When an appeal is required, HdL has the necessary expertise and access to competently and aggressively represent client interests. Track Record: HdL is effective in recovering misallocated revenue for client agencies in 97% of all cases submitted to the SBOE. In the roughly 3% of cases that are initially disclaimed, HdL is able to achieve positive results by successfully appealing cases. The small number of cases that are appealed is evidence of HdUs thorough research and the quality of the factual information included to support claims. C. Use Tax Maximization Program Major construction projects and even ongoing business operations often generate significant use tax revenues from purchases of machinery, equipment and other fixed assets. HdL has worked with numerous clients to insure that use tax from manufacturing and assembly plants, food processing, cold storage facilities, power/energy projects, medical, research and technical facilities, oil fields/refineries and extra ctionlmining industries are properly allocated to the host jurisdiction. HdL's sales tax team includes a staff of specialists who review new business startups that might present potential self-assessed use tax opportunities, meets with contractors to advise on sub-permits and reporting procedures and provides materials and advice on purchasing companies and direct payment permits. The firm monitors major construction projects to insure that any use tax generated is properly allocated to the job site's Dost jurisdiction. When brought into a project early, HdL assists clients with inserting provisions in conditional use permits and development agreements to guarantee that use tax maximization procedures are followed and monitors projects and subcontractors to insure that sales tax is properly allocated back to the client jurisdiction. Direct payment permits and purchasing corporations can sometimes be utilized where conditions offer mutual opportunities for the client agency to capture additional sales tax revenues and the participating company can increase control of sales and use tax liabilities. 26 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 20315 d. Preserve and Enhance Sales and Use Tax When properly refined and organized, sales tax data analysis is an important tool for strengthening and expanding local economies. The data shows companies that are growing and may need expansion space and should be contacted as part of an agency's business retention program. When broken out geographically, the data produces patterns of industries that potentially share common customers, suppliers, technology and labor and therefore offer opportunities for attracting new businesses. The data further exposes retail areas that may be over saturated in some retail segments while also identifying voids and opportunities for additional retail development Although numerous companies and agencies use the SBOE's published data as a basis for analysis, the results are usually inaccurate and misleading due to address and business categorization errors in the data. To correct those deficiencies, HdL performs data validation and scrubbing techniques on an ongoing basis, fixing business addresses and re-categorizing merchants to differentiate brick and mortar retailers from "business to business" suppliers and on-line retailers. The company further creates and groups businesses into additional categories and classifications, not provided by the SBOE, to better track new and emerging economic trends. Samples include the breaking out of biotech medical suppliers, online fulfillment centers, alternate energy and utility providers, wineries and marijuana clinics. This focused approach to data management allows agencies to more accurately compare the impact of trends in their jurisdiction with state and regional trends. On a regional basis, it also allows for the identification of true economic voids and opportunities to expand the City's tax bases. Accurate addressing allows for improved performance monitoring and comparison of specific economic areas such as shopping centers, downtown districts and auto malls with similar projects throughout California. In addition to using our large database, HdL's principals leverage their experience analyzing client data throughout California to identify new trends and developments that might help other clients. The service includes analyses to identify retail voids and opportunities and an annual publication of retailers seeking expansion in the region and state, 1 Sales and Use Tax Reporting Services a. HdL Sales Tax Well Application HdL maintains San Juan Capistrano's detailed sales tax data back to 1992 and will provide City staff with unlimited access to its quarterly updated web-based sales tax system to facilitate "in-house" analysis and printing of reports. The system allows City staff to search, print and export their wales tax data for a variety of financial, management and planning functions. The system provides the ability to search all sales tax producers in the City by business name, address, SBOE account number and current or historical sales tax allocations. The web application also provides access to the City's archived quarterly sales tax reports in PDF format. Data is easily queried and exported to either comma delimited or native Excel formats, allowing for JV f.OV0 PA N .5 27 Proposal for Safes Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 convenient use with standard applications such as the Microsoft Office suite. The web application is accessible from all major operating systems, internet browser platforms, and device types (laptop, tablet, PC, mobile). Training on use of the sales tax application is included at no additional charge. HdL's Geo-area feature supports use of address ranges, which ensures the inclusion of all appropriate SBOE registrations and also allows City staff to create and modify Geo-areas without a separate GIS system. HdL also supports interfacing with the City's GIS by including accurately geocoded latitude and longitude for each business. The geocoded data can be exported for use in a secured GIS layer, or GIS provided shape files can be imported into the HdL system to create additional HdL geo areas. Preliminary safes and use tax reports are provided each quarter within 5 days following the receipt of the quarterly distribution report. These PDF reports can be accessed online via HdL's web-based sales tax application immediately after the data has been updated from the SBOE. Hard copy reports are provided at the regularly scheduled quarterly sales tax meetings.A variety of other reports, sales tax issues papers and legislative updates are also accessible on the HdL website, www.hdlcomanies.com b. Quarterly-Written Reports and Meetings Each quarter, a principal of the firm analyzes the City's data in detail and meets with appropriate City officials to review trends, and discuss and make recommendations regarding the budget implications of the quarter's data. Hard copies of written reports are provided and reviewed with the City staff. Analysis of sales and use tax data for the quarterly presentations to City staff are led by seasoned professionals, whose experience and knowledge adds value by identifying emerging retail trends, business retention needs, leveraging of economic clusters and reviewing successes in client jurisdictions with similar characteristics. HdL staff also prepares sales and use tax projections for proposed development projects, responds to technical questions relating to SBOE processes, procedures and regulations, and monitors revenue sharing agreements. HdL's services are superior to other vendors because the firm provides data analysis instead of bound stacks of raw data printouts. The firm's quarterly analysis is done in context with regional market areas, countywide and statewide trends to better monitor and compare the City's economic performance by business category and geographical area. A non-confidential newsletter is included to support management's efforts to inform and engage the public. Quarterly sales tax reports are provided on both a cash and adjusted basis. Cash reports reconcile to SBOE payments and are necessary for any revenue sharing agreements that the City might have in place. The adjusted reports shift payment aberrations (double-up payments, SBOE audit adi stments, etc.) into the quarter where the sales occurred to accurately show the f:ity's true economic trends. The quarterly sales tax data will be presented in repor'.3 for major sales tax producers by both rank and category, analysis of sales ta,, activity by category, business or geographic areas specified by the City. 28 Proposal for Sales Tax and property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 HdL's quarterly sales tax reports include a summary of top sales tax producers and comparisons of local, regional and statewide trends. Retailer information is provided in grouped form or in business by business detail. Quarterly information also includes tables that track year-to-date receipts and show comparisons with past periods to measure progress toward achieving the City's annual budgeted revenue amount. HdL has developed a comprehensive, detail-oriented method for projecting and monitoring client sales and use tax revenues that has proved to result in estimates that fall within 1% of actual receipts two-thirds of the time. Initial and mid-year projections are made by factoring out payment aberrations that skew the base revenue and factoring in known changes such as new or closed businesses. HdL also incorporates information from over 90 economic sources as well as information gathered from quarterly client meetings to develop economic factors to apply to individual retail business segments; the results are combined into a single estimate of anticipated revenue. HdL further enhances its projections by contacting builders of large-scale development projects to better time and estimate the value of potential use tax payments into its estimates. Five year forecasts are also provided. HdL regularly prepares Legislative Updates for clients to keep them updated on any changes that may impact local revenues. The firm also provides Issue Updates which are similar in nature but deal with specific issues such as Sales Tax Participation Agreements. Each issue is presented in detail so that Agency staff is better equipped to handle questions on that topic from their community leaders. The firm also retains Johan Klehs as a lobbyist to represent client interests in matters before the SBOE and the state legislature. Mr. Klehs is respected as an expert in budget, fiscal, taxation, and business issues affecting California and its economy; he maintains a wide range of ties with the executive and legislative branches of state and federal government. In statewide office, Klehs served as Chair and a Member of the California State Board of Equalization (1995-2003) and a Member of the Franchise Tax Board. He also served 14 ye:�rs as a Member of the California State Assembly. 4. Ongoing Consultation HdL also serves as"on-call"staff to provide sales tax esti :rites for proposed projects, assist with budget projections and answer sales ani ase tax questions related to economic development, budgeting and related reven .� collection. When requested by the City, principals also meet with committees of f. .e City Council and other groups to explain sales tax regulations and their importanr to the City's tax base. HdL will, when requested by the City, conduct t, ;hnical seminars for City personnel on California sales and use tax proceM yes. Tr Support in-house efforts to maximize use tax, the seminars will cover the fund .;mentals of direct payment permits, purchasing corporations and maximizing "us. .: tax" from construction projects. HdL maintains close and positive relation,ahips with members of the SBOE and staff to quickly resolve policy issues unique tc individual clients. The firm also advocates regulation and legislative changes when they are of benefit to all clients. Examples are the Company's work in the change of allocation of"use tax"for major construction H Z� d I 29 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 projects, securing an Executive Order from the Governor to allow publishing of top taxpayers in public documents and the introduction of the problem of "point of sale" for warehouses to the SBOE. Property Tax Auditing and Consulting Services 1. General Strat9A a. HdL Coren & Cone (HdLCC) provides property tax management services to over 190 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. This ensures prompt and knowledgeable response to inquiries and provides for relevant and timely information on issues impacting the City's property tax. HdLCC's specialized computer software, databases and highly trained staff have generated over $95 million in new revenues for client agencies, $52.6 million since 2000. HdLCC maintains property tax data from 43 California counties, including all cities and successor agency project areas in those counties. Our data resources include 15-23 years of historical data in most counties and the company maintains more than twenty years of annual property tax records for Orange County. Our audit team has wormed extensively with key County staff and is thoroughly familiar with Orange County. Identification of escaping revenue through the use of property tax data sets has been a targeted focus for HdLCC during the past 23 years. With the reduction of tax revenues through legislated Educational Revenue Augmentation Fund (ERAF), cities, counties, agencies and special districts have been focusing on ways to increase the limited resources already stretched thin. The unsecured roll contains property owners which, when matched with a business license data set can be used to identify escaping revenues. For instance, property leased to businesses in your jurisdiction is taxed to the lessor of the property. We find that frequently, the lessors are not properly registered with a city business license. When notified and properly licensed, these businesses will generate additional revenue for the city. Using HdLCC's custom software, a data set of all parcels in the city and former redevelopment project area(s), successor agency, will be established and be available through the HdLCC web-based property tax program. This data is prepared from the Orange County lien date property rolls that are purchased annually in July. HdLCC updates the original county secured roll with all transfers of ownership which have occurred between the lien date and the current month and updates the ownership information (name, mailing address), date of transfer, sale price and document (deed) number monthly. The use of the secured roll will assist in identifying owners of rented residential, commercial, or industrial properties that do not have a business license with the City should one be required. 30 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 b. The following reports/documents will be requested of city staff. • Annual Auditor's Certification of Values • A map with the City's borders for review in auditing parcels • Documents relative to any annexations performed within the prior 3 years of engagement of Contractor. • Resolutions, DDA, OPA and other formation documents relating to the former Redevelopment Agency • Electronic copies of completed projects/certificates of occupancy with assessor's parcel numbers for tracking of new construction. c. HdLCC will purchase the annual lien date property tax roll from the Assessor. This roll is made available for purchase in July each year. Tax percentages — ad valorem and voter approved, base year value reports, apportionment reports, ERAF shifts and VL1=AA amounts will be secured from the Auditor/Controller as they are made available. 2. Objectives And Methodology HdL Coren & Cone has the technology, methodology and trained staff to analyze all secured parcels within the City and Successor Agency to identify costly errors resulting in the misallocation of property taxes. Orange County has historically refused to provide situs addresses on bath the secured and unsecured tax rolls. Addresses are an important feature, particularly on the unsecured roll to ensure that property is correctly located. Absent this data, the unsecured tax roll cannot be audited for completeness or correctness. On the secured roll HdLCC migrates addresses forward on parcels that do not change between tax years and uses outside resources to populate missing addresses. The firm has the ability to audit the secured property tax rolls two ways, first reviewing the entire county to find parcels miscoded to other jurisdictions; and second, reviewing the parcels within the city, county or agency to ensure that each is coded to the appropriate taxing entity. Our advanced technology, accuracy and track record have placed us in a unique position to be hired by cities to find additional revenues after audits have been performed by prior consultants. In addition, by filing audit results with the County Assessor in a timely manner, we can assure that the repetitive errors ';'om previous years will not re-occur. 3. Property Tax Reporting Services Each year after the release of the lien date property tax (l by the County Assessor, HdL Coren and Cone will establish a database fr.,-+he City t! .will included each parcel within the city borders for the secured, unsecured and non- . Perating utility roll. This database will be available to the city via the firm's web-based r,roperty tax application. HdLCC will reconcile the annual Auditor/Controllev Assessed Valuations Report and will furnish a breakdown of assessed values within the City and Successor Agency. The company will provide the following reports based on the current year lien date rolls and will provide the reports annually, quarterly or monthly as appropriate: Reports are also available from prior years if required. HdL. `�_ 31 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 Sample Of Reports Included In Our Annual Meetin With Staff • A five year history of the values within the city, Successor Agency and custom (city defined) geographic area; • A listing of the largest value changes, positive and negative between tax years; • An annual parcel listing of properties with parcel number changes between tax years identifying parcel splits and combines; • A listing of the major property owners for both the City and Successor Agency, including the combined assessed values of their property and property use code designation; • A listing of the major property tax payers, including an estimate of the property taxes; • A listing of parcels that have not changed ownership since the enactment of Proposition 13; • A comparison of property within the City and Successor Agency by county use-code designation; •• A multiple year comparison of growth by use code designation over a 10 year period; • Base year value for all former redevelopment project areas • General Fund/T1 Revenue Estimate revenue anticipated to be received for the fiscal year by the City and Successor Agency respectively based upon the initial information provided by the County and subject to modification. This report is interactive for tax modeling. This estimate shall not be used to secure the indebtedness of the City or Successor Agency. • Analyses based on geo areas designated by the City to include assessed valuations and square footage computations for use in economic analysis and community development planning. • A listing of property tax transfers which occurred since the lien date ordered by month; • Preparation of Proposition 4 and 111 State Appropriation Limit calculations, • A listing of property tax transfers which occurred since the lien date ordered by month; Successor Auengy Support Successor Agency Services including but not limited to; • Tax increment projections and cash flow analysis for the Successor Agency by Project Area • Assistance with Redevelopment Obligation Payment Schedules (ROPS) • Assistance in providing property tax information for the taxing agencies receiving property tax revenues from former Project Areas • Estimates of property tax revenues to be received by the taxing entities from former Project Areas • Provide property tax information to the Oversight Board at the direction of the Successor Agency H d L" 32 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano I May 22, 2015 • Provide access to the Oversight Board to City and former redevelopment agency documents at the direction of the Successor Agency • Monitor the County distribution of tax-sharing revenues to the taxing entities of the former redevelopment agency • Coordinate with the Auditor-Controller the relationship between the tax-sharing, debt service and other obligations of former redevelopment agency • Coordination and assistance with developing a long range property management plan • Legislative analysis Information Provided Monthly/Quarterly • A listing of property tax appeals filed on properties in the City where data is available for purchase from the Clerk of the Board. These reports will be prepared for both the City General Fund portion of the City and Successor Agency and include a history of all appeals filed, the disposition of those appeals, successful appeals, pending appeals, Proposition 8 appeals and a report to assist the City/RDA in determining the potential impact of pending appeals. These reports are provided in a pdf format and are emailed to designated city staff. • A listing of property transfers will be provided as often as requested. This data will include the new owner/seller of the property, new mailing address if not the situs address, the date of sale, the sale price when verified, document number, and transaction type. 4. Analysis And Identification Of Misallocation Errors Upon approval of the contract, the company will perform an analysis of the Assessor Rolls to identify all parcels on the secured and roll and verify that parcel assessed valuations and the resulting taxes are correctly allocated to the City or its Successor Agency. This analysis is accomplished through the use of specialized computer software, assessor maps, city GIS maps, city records, other pertinent documents, and field investigations. The review will include the lien date secured and unsecured data for the current tax year as well as historical data back for a total of four tax years. HdLCC will follow up with the appropriate county departments atter the corrections are submitted and will provide documentation to the city after the corrections are made. Should the assessor change their position on providing addresses on the unsecured roll, the�. same methodology will be employed to audit the unsecured assets in the City. By cross matching parcels with the City's building permit ;,ctivity and project completion information, we are able to track parcels which should hr .e been reassessed due to new construction activity but have been missed by the :.ssessor's appraisers (escaped assessments). Should the assessor change their posi' in on providing addresses on the unsecured roll, the same methodology will be emplo), A to audit the unsecured assets in the City. comp., g 33 Proposal for Safes Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 5. On-Goinn Consultation During the term of the contract,we will serve as the resource staff to the city and successor agency on questions relating to property tax. This includes being "on-call" to assist with any property tax issues. On-going consultation would include, but not be limited to inquiries resolved through use of the city data base. All requests for information based upon the city's property tax data sets are provided without additional costs. Special reports, additional research, or requests requiring additional computer programming may entail some additional costs. HdLCC provides advice and consultation on the City/Successor Agency's preparation of required reports, such as revenue projections, review of Recognized Obligation Payment Schedules (BOPS), submittals to the Oversight Board and/or County or State agencies, and new or revised legislative requirements. Analysis of legislative and judicial matters impacting Redevelopment Property Tax Trust Fund (RPTTF) revenues to the Successor Agency and to the City is performed. HDLCC WEB-BASED SOFTWARE l?e3iv€r�rzr� Revenue, L`,� insightlnsight and Efflcipncy The City Of San Juan Capistrano Hd to Lucat Governme-rzt u.r36parels ,Urt r..:r,»;.: .:'TRA 23003 T The�tr.7 C)'�Sar Iuar CapMrar0 Use r MMLR,C:IAL MISCEL;3NECLVS Agertr Says Iuan CaGi5Trane CP-CertraE 82-83 Gwr3zr TR;4�:i?C:^)d1LlS g5 .LC �nniszq - Reglan _irckr>aovn' .: het AV 5,"S 765,841, S`�Chg.^ronl firior',r. 2.G tilfty 31jA:i C,SPlw-TF'Ja4 CA 92575 ��.�......_. --�.--�..._.-�... A.euearoue.tygte: ::G�nra':'�und , Stec rc,�niy< C E.: Ser rid $ 4,81 `h Shan,of-.Tpt*TaY, Mall Nd Mn T^-.i-.53.JCCi BILLS a5 LLC �-Cln:.cn d- $145.,7fl - Adct Ess !V,301 VQN KARIMAN t,lE UMIT 35a 7R'J:"E CA 9261.2-U-1W 0no -Pei -3C GO 'fPx Bill - �A9,52:� This Parcc4!s: ✓;H,,.:ertee:owned .......�Pre Plop>3 E'-,i t;.SF. - -ave= rnl '. x P¢. C ... cgc+JY7"i—- 1'L2Lf 4210 I. Y _ 3<EiGa Lan 1 s,o64,8 CQ Lxe s e7 s i,632.r(O Sx>a tiers Dny:m'kirlrartS. .3 82'L,2Ct3 3.C*50r6Jp - Net Tot?;AV 4,765,840 4,64a.00n , 199$ 2 rdiT 2L„a Zr! 2 JS 2U07 20N? 20-CI, 261E 20; .-D.. "-00 2r,,.4 ' Hd (i.a 34 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 Dcsliverini R ventre, nsighl Traci Effk ency The City Of San Juan Capistrano ' no Local Government en: .r .. o �anxstnn' 3 ... J. 0 `" -w"j' ...... 41. .. ......... zx. 4 gp &W r yng, 4 `,2 Ag y 4 s Risnag R, HdLCC provides a web-based software application to clients as a user-friendly tool to access the City's property tax data. Updates to the data are provided monthly to reflect changes in ownership, appeals filings, and deed recordings. As modifications and enhancements are made to the program, clients receive the enhanced version of the software at no additional cost. Training will be provided to city staff within the first two months after the execution of the agreement for property tax management and audit services and is available annually for new staff members or staff requiring a refresher course. If additional training sessions are required, the fees in the compensation section under hourly fees will be charged. The help manual available within the program is easy to navigate and user friendly. HdLCC staff is available Monday through friday, 8 a.m. to 5 p.m. to answer questions and assist staff on the use of the software. Assistance is available either by phone or via email. The city will be granted a site license for the application, providing no limit to the number of users. HdLCC will not charge an annual maintenance fee for the software program. Periodically, as the program changes and product enhancements are developed, upgrades or new releases of the software are issued at no additional cost to the client. k 35 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 Statistical Reporting Package For CAFR HdL Coren& Cone has been providing reports for inclusion in the CAl^R Statistical Section since 1995. Our staff is thoroughly familiar with reports in the Statistical Section related to property tax and sales tax and common issues and problems facing cities trying to comply with GASB 44. We provide the package to over 180 cities and special districts in California annually. During the term of the contract, Consultant shall provide the following reports annually: • Use Category Summary for current fiscal year • Property tax dollar breakdown for current fiscal year • City Roll Summary for current fiscal year • Net taxable assessed value for last ten fiscal years • Assessed value of taxable property by secured, unsecured and non-unitary for last ten fiscal years • Assessed value of taxable property by category for last ten fiscal years • Top ten property tax payers for current fiscal year Top ten property tax payers ten fiscal years ago • Direct and overlapping property tax rates for last ten fiscal years • Demographic and economic statistics for last ten calendar years = Single family residential sales value history • Computation of direct and overlapping bonded debt 36 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 F. SAMPLE REPORTS 1. SALES TAX SAMPLE REPORT PACKAGE Trends by Magor Groups 1. Major Industry Groups 1. Quarterly Line Graph 2. Annually Line Graph Major business type changes, including comparisons with state and county averages, 1. Allocations by Business Type Including Pools 2. Adjusted for Reporting Aberrations Quarterly printouts of top sales tax generators fisted in descending order. Used by top management to track treads and identiFy companies who should .be contacted as part of a business retention program and who aright identify customers and suppliers who might be interested in relocating to the Clty. 1. Top 100 Sales Tax Generators 2. Top Ranking Comparisons 3. Quarterly Deviation Analysis Reports for Revenue Projections. 1. Sales Tax Allocation Summary 2. Cash Reconciliation Report 3. Budget Projections 4. Five Year Forecast 5. Proposition 172 Projections 6. Triple Flip Calculations and Reconciliation 7. Consensus Forecast Quarterly analyses of sales by designated geoe.,raphic area, including reports to comply with any sales tax sharing agreements ents with other agencies or private developers. 1. Sample of Detailed Geo Analysis 2. Sample of Trends Comparison Quarterly customized newsletter sura ri ,`ng sales tax highlights presented in a manner to protect community,businesses' confidentiality and that can be .shared with public. 1. City of Lake Fc,��i, �Q2014 2. City of Sats Clemente, 3Q2014 Special reports as r,ct!a ed for economic .:iev loprr ant and other purposes. 1. Regionai Updates 3. Mark��-t Competition Comparisons 2. Surplus I Gap Analysis 4, Retail Analytics Brochure 5. Sample of Legislative and Issue Up;aates: Legislative Update— May 2015 Issue Update--Triple Flip Unwind, March 2015 HeadLines—Trends Affecting California's Economy(E-Newsletter) Hd L,",r 37 HdEr-'- CITY OF SAN JUAN CAPISTRANO C 0;IM P.A: N I E s MAJOR INDUSTRY GROUPS Manor Indusfty Group Count 4Q14 4013 Chane %Change General Consumer Goods 835 632,500 631,573 927 0.1% Autos and Transportation 115 531,802 530,402 1,400 0.3% Business and industry 411 199,940 211,089 (11,149) -5.3% Restaurants and Hotels 102 149,079 159,710 (10,631) -6.7% Building and Construction 59 123,415 109,653 13,762 12.6% Fuel and Service Stations 6 78,990 69,128 9,863 14.3% Food and Drugs 42 76,692 72,694 3,998 5.5% Transfers& Unidentified 3 54 (699) 753 107.7% Total 1,573 1,792,473 1,783,551 8,921 0.5% 4Q13 Compared To 4014 $700K $600K 4Q13 4Q14 $500K $400K / .�,% W.__ ._.. _ ............. ._.__ ... z� 300K p ✓/ �'/ r $100K ca - c 1511-1 $arc ..,. . �..... ..� _ �i —, . M General Autos Business Restaurants Building Fuel and Food Consumer and and and and Service and Goods Transportation Industry Hotels Construction Stations Drugs 4014 Percent of Tota[ Fuel and Food service and Stations Drugs Bwfding and Construction General „^ -Consumer Goods Restaurarrs x and -- '� w\ Ho=.els '. eus�nass4 ar:c€ Industry Autos and Transportation CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION gg 0512=015 1015 am HdL • 909.881.4335 • www.hdicornpanies.com Page 1 of 1 HdL4�6 CITY OF SAS JUAN CAPISTRANO P:/" NF € I_5 MAJOR INDUSTRY GROUPS - 13 QUARTER HISTORY Sales T x by Maio[IndUstry gmgp $700K General Consumer Goods Count:835 Autos And Transportation .- .__ .. _. _ .. .. _.,...M S600K Count7,i„1 Business And Industry $500K Restaurants And Hotels Count: 1012 M. _;.. $400K Building And Construction $300K Fuel And Service Stations Count: 6 Food And Drugs - - $200K Count:42 $100K $OK 4Q 1Q 2Q 30 40 1Q 2Q 3Q 4Q 1Q 20 3Q 4Q 11 12 12 12 12 13 13 13 13 14 14 14 14 Agency Trend $1,800K $1,750K San Juan Capistrano $1,700K M,. ..- ...._ _ _. ------- $1,650K�_._-._ .._._ ._.. 13 Quarter Trend,- 11.2% $1,600K $1,550K w ,!..M ..: _.... .:.. .. ..__ .. .. ., .... _,.. $1,500K 4Q 1Q 2Q 3Q 4Q 1Q 2Q 30 4Q 1Q 2Q 3Q 4Q 11 12 12 12 12 13 13 13 13 14 14 14 14 Periods shown reflect the period in which the sales occurred-Point of Sale CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 39 05M/2015 8:33 am HdL• 909.861.4335 • www.hdicompanies.com CITY OF .N JUAN CAPS TRANO , A N f:, Is MAJOR INDUSTRY GROUPS — 13 YEAR HISTORY S@ies Tax by Malo[Industry Group $3,200K General Consumer Goods Count:835 Autos And Transortaticn _: .. $2,800K Count: 115 x ... „ ,: Business And Industry s � �-� �:._:_. .�:..�,� � � - $2,400K Restaurants And Hotels M:. _ . .M.. .: ..:.. ._... ,,,. .,. . .. _. .,. ... ,_ .__ m ,._. $2,OOOK Count: 102 Building And Construction _ .. " $1,600K Fuel And Service Stations Count:5 $1,200K Food And ©rugs Count:42 _.. _ ., ,....:, w :..,.:.„ . ._ _.. .M.::.,. $800K . = $400K $OK 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 Aaencv Trend .: a . _. . .... . _._. .� n� $6,00DK �.._._ ..M. ..... . . .w _ _ . W ,_ _.. _. ___.� ._ _.: �. �._.__ :,._..._�_. $5,600K San Juan Capistrano - $5,200K 13 Year Trend: -12.5% _- ._ ._._:� ��..._ _,._ _ _ $4,800K $4,000K . _.._.. ,. $3,600K 02-03 03-04 04-05 05-06 06-07 07-08 08-09 00-10 10-11 11-12 12-13 13-14 14-15 Periods shown reflect the period in which the safes occurred-Point of Sale CONFIDENTIAL INF'ORMA'TION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 40 05/19!2015 8:34am HdL• 909.$81.4335 • www.hdicompanies.com HdLCITY OF SAN MAN CAPISTRANO TOP 26 BUSINESS TYPES LISTED BY ALLOCATION 4Q 2014 COMPARED TO 4Q 2013 AGENCY COUNTY HdL STATE Code Business Type Description(Count) 402014 4Q2013 Change 4Q 2014 Change 4Q 2814 Change 08 Discount Dept Stores(2) 397,274 396,605 0.2% 10,934,277 09%0 107,795:100 0,9% 60 New Motor Vehicle Dealers(9) 392,401 364,995 7.5% 15,602,812 8.4% 144,468,438 7.6% 62 Service Stations(6) 78,990 69,128 14.3% 9,540,402 -16.2% 118,783,991 -10.6% 03 Family Apparel(56) 68,193 69,227 -1.5% 5,111,445 5,5% 52,244,417 5.1% 36 Fine Dining(33) 66,086 74,300 -11,1% 2,547,465 15.2% 36,911,879 16.0% 24 Quick-Service Restaurants(58) 64,641 66,357 -2.6% 5,820,494 1.5% 69,567,088 7,4% 82 Contractors(47) 63,510 51,.535 23.2% 3,378,141 9.3%. 40,760,541 U% 90 Food Service Equip./Supplies(26) 52,054 40,517 28.5% 612,017 8.2% 8,016,832 7,9% 31 Electronics/Appliance Stores(16) 46,500 46,328 0.4% 4,232,655 -0.8% 40,913,754 1.3% 65 Auto Lease(16) 46,086 39,345 17.1% 2,166,645 1.2.9%0 11,778,641 .-0.1%. 41 Garden/Agricultural Supplies(23) 43,624 38,613 13.0% 782,390 6.7% 9,331,656 5.7% 64 Used Automotive Dealers(13) 41,500 36,619 13.3% 2,447,222 13.611/o 20,097,010 12.7% 34 Grocery Stores Liquor(7) 38,442 36,276 6.0% 3,978,426 4,9% 45,646,305 3.51/1a 19 Specialty Stores(214) 37,850 35,766 5.8% 3,983,758 5.8% 39,220,832 5.5% 52 Plumbing/Electrical Supplies(8) 31,919 28,887 14.5% 1,388,896 13.8% 13,571,165 7.5% 89 Business Services(108) 29,727 66,568 -55.3% 1,540,393 0.6% 12,399,939 4.5% 30 Home Furnishings(66) 24,705 27,855 -11.3% 3,787,272 8.8% 30,397,628 6.9% 71 Auto Repair Shops(34) 19,899 18,092 10.0% 1,174,216 5.0% 13,290,412 5.9% 61 Automotive Supply Stores(18) 19,252 61,323 -68.6% . 1,243,578 -0.3% 16,874,857 2.0% 98 Heavy Industrial.(14) 18,322 5,221 25€1.9% . 2,032,550 8.3% 23,460,594 14.5% 27 Drug Stores(8) 17,533 18,267 4,0% 1;369,313 -0.8% 16,626,842 -2.3% 18 Office Supplies/Furniture(15) 16,575 17,566 -5.6% 2,593,298 -46.1% 21,685,274 9.4% 53 Paint/Glass/Wallpaper(2) 11,725 11,231 4.4% 321385 0,9% 3,102,326 -01% 85 Transportation/Rentals(19) 11,424 7,849 45.6% 1,06',108 13.2% 13,135,083 8.8% 05 Variety Stores(25) 10,900 10,587 3.0% 6"!J,105 -0.2% 8,125,811 3.2% All Others(736). 143,340;. 944.,494 -0.8% 53.' 30,543 4.5% 512,746,784 4:6% TOTAL ALL TYPES(1573) 1,792,473 1,783,551 0.5% 141 544,105 1.7% 1,430,9531199 3,8% Major Industry Groups Autos And Transportation(115} 531,802 530,402 0.3% 24,625,829 8,8% 228,879,527 72% Building And Construction(5p) 123,415 169,653 12,6% 10,132,622 7.7% 112,747:122 3.9% Business And Industry(41'} 199,946 211,089 . -5.3% 22,024,069 -4.9% 248,193,344 8.5% Food And Drugs(42) 76,692 72,694 5.5% 7,698,468 3.7% 91,967,023 2.2% Fuel And Service Stations(6) 78,990 69,128 14.3% 12,408,579 -16.4% 149,467,094 -10.3% General Consumer Goods(835) 632,500 631,573 C.11/ i 42,586,880 3.1% 405,788,234 3.1% Restaurants And Hotels(162) 149,079 159,710 6." 21,994,545 77% 193,220,934 8.8% Transfers&Unidentified(3) 54 (699) 1t' .7">0 69,114 na 689,921 291.5% TOTAL ALL GROUPS(1573) 1,792,473 1,7�2�,651 0.5% 141,540,105 1.7% 1,430,953,199 3.8% COTAL ALL BUSINESSES(1573) 1,792,473 1,783,551 0.5% 141,546,105 1.7% 1,430,953,199 3.8% ALLOCATIONS FROM COUNTY POOL 232,586 219,196 6.1%a kLLOCATIONS FROM STATE POOL 1,967 1,2`2 59.6% DROSS RECEIPTS 2,027,626 2,003,982 1.1%n f CONFIDENTIAL INFORMATION -DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 0912015 9:05 am HdL - 909.861.4335 • www.hdicompanies.com 41 Page 1 or 3 Oma` CITY OF SAN JUAN CAPISTRANO C O m P A N i c. s TOP 25 BUSINESS TYPES LISTED BY ALLOCATION Agusr p FDO' 4Q 2014 COMPARED TO 4Q 2013 ECDNO'IC'DATR AGENCY COUNTY HdL STATE Code Business Type Description(Count) 4Q 2014 4Q 2013 Change 4Q 2014 Change 4Q 2014 Change 08 Discount Dept Stores(2) 397,274 396,314 0.2% 10,934,285 1.1% 107,796,097 1.6% 60 New Motor Vehicle Dealers(9) 392,401 363,813 7.9% 15,559,052 7.7% 144,825,008 8.1% 62 Service Stations(6) 69,143 73,226 -5,6% 9,672,525 -11.4% 117,495,251 -11.0% 36 l=ine Dining(33) 69,135 73,457 -5.9% 2,552,533 16.7% 35,563,745 13.6% 03 Family Apparel (56) 68,071 69,234 -1.7% 5,111,633 5.2% 51,962,762 4.4%0 24 Quick-Service Restaurants(58.) 65,697 65,553 0.2% 5,711,328 7.2% 67,779,166 6.9% 82 Contractors(47) 63,187 50,833 .24,3% 3,433,717 13.3% 40,036,322 7.5% 90 Food Service.Equip./Supplies(20) 51,769 40,231 28:7% 592,837 3.3% 7,806,614 -0.9% 31 Electronics/Appliance Stores(16) 46,503 46,328 0.4% 4,212,546 0.5% 40,717,605 21% 65 Auto Lease(16) 44,936 40,485 11.0% 2,305,1.70 15.8% 1.4,980,825. 18.9% 41 Garden/Agricultural Supplies(23) 43,616 38,624 12.9% 762,721 3.1%a 9,174,050 5,4% 64 Used Automotive Dealers(13) 41,683 36,886 13.0% 2,333,967 9.0% 19,368,446 11.6% 19 Specialty Stores(214) 36,195 38,708 -6.5% 3,903,106 4,6% 38,395,257 3.1% 52 Plumbing/Electrical Supplies(8) 31,813 28,887 101%0 1,398,347 14.1% 13,915,479 11.0% 89 Business Services(108) 29,902 66,481 -55,0% 1,666,987 0.2% 13,367,329 -2.8% 34 Grocery Stores Liquor(7) 28,308 26,470 6,9% 3,255,797 7.4% 40,540,651 6.76/6 30 Home Furnishings(66) 23,418 24,616 -4.9% 3,739,392 8.5% 29,691,660 5.0% 71 Auto Repair Shops(34) 20,121 18,808 7.0% 1,137,693 3.0% 12,721,948 3.1% 61 Automotive Supply Stores(18) 19,205 60,941 -68.5% 1,234,127 0.2% 16,585,026 2.5% 98 Heavy industrial(14) 18,270 5,221 249.9% 2,002,067 7.8% 21,326,281 7.0% 27 Drug Stores(8) 17,533 17,115 2.4% 1,363,642 0.4% 16,505,300 -1.2%a 18 Office Supplies/Furniture(15) 16,672 18,008 -7,4% 2,491,266 -47.3% 21,220,242 4.4% 53 PainUGlass/Wailpaper(2) 11,725 11,231 4.4% 327,002 1.9% 3,116,870 0.6% 85 Transportation/Rentals(19) 11,382 7,849 45.0% 1,005,189 71% 12,951,122 7.3% 05 Variety Stores(25) 10,900 10;734 1.6% 659,637 5.3% 8,318,805 6.0% Alf Others(736) 943,782 142,069 1.2% 52,85.0;237 4.8% 500;236,699 22% TOTAL ALL TYPES(1573) 1,772,641 1,772,122 0.0% 140,216,800 2.4% 1,406,398,562 2.8% Major Industry Groups Autos And Transportation(115) 530,773 530,728 0,0% 24,499,188 8.1% 230,639,035 8.3% Building And Construction(59) 122,986 107,283 14.6% 10,199,149 9.5% 112,407,133 7.4% Business And industry(411) 202,659 204,731 -1.0% 21,554,343 -5.0% 237,892,879 2.2% Food And Drugs(42) 65,530 63,882 2.6% 6,944,369 4.9% 86,100,568 3.5% Fuel And Service Stations(6) 69,143 73,226 -5.6% 13,032,072 -9.4% 148,317,259 -10.4% General Consumer Goods(835) 628,313 633,109 -0.8% 42,324,881 2.9% 402,718,449 2.5% Restaurants And Hotels(102) 153,184 158,062 -3,1% 21,661,010 8.7% 188,204,594 7.4% Transfers&Unidentified(3) 54 1,100 -95.1% 1,789 -99.1% 118,644 -88.7% TOTAL ALL GROUPS(1573) 1,772,641 1,772,122 0.0% :40,216,800 2,4% 1,406,398,562 2,8% TOTAL ALL BUSINESSES(1573) 1,772,641 1,772,122 0.00- ,140,216,800 2.4% 1,406,398,562 2.8% ALLOCATIONS FROM COUNTY POOL 238,781 217,671 9.7% ALLOCATIONS FROM STATE POOL 2,117 1,611 31.4°, ' .ROSS RECEIPTS 2,013,540 1,991,404 1., 0 CONFIDENTIAL INFORMATION -DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 511912015 9:©6 am HdL • 909.861.4335 • www.hdlcompanies.com 42 Page 1 of I K-11 11"CIEV C; C 0 M P A Int d e s TOP 100 SALES TAX PRODUCERS-4Q 2014 Business Percent Percent Cumulative Rank Type Firm Name Business Address 4Q 2014 4Q 2013 Prior 4 Qtrs Change of Total Percent 1 08 Dougco Discount Dept Stores 2207 W Butler Ave 597,106 585,275 1,908,322 2.02% 19.17% 19% 2 60 Djgraphic New Motor Vehicle Dealers 4 Locations 171,402 134,051 612,322 27.86% 5.50% 25% 3 60 Ooohlala New Motor Vehicle Dealers 1139 W East St 165,728 163,711 623,147 1,23% 5.32% 30% 4 60 Silverstone New Motor Vehicle Dealers 3 Locations 164,943 156,103 626,767 5.66% 5.30% 35% 5 08 Verdalee Discount Dept Stores 2120 W East St 145,966 141,387 499,259 3.24% 4.69% 40% 6 60 Macnetworks New Motor Vehicle DeaIF 2 Locations 143,059 142,097 606,472 0.68% 4.59% 45% 7 60 Beachtownrules New Motor Vehicle De726 E East St 128,625 0 254,229 nia 4.13% 49% 8 50 Giftprints Lumber/Building Materials 500 S East Ave 120,212 81,258 451,731 47.94% 3.86% 53% 9 65 Kiaras Auto Lease No Address In City 94,354 76,904 336,209 22.69% 3.03% 56% 10 60 Bonega New Motor Vehicle Dealers 1247 W East St 76,970 58,436 273,849 31.72% 2.47% 58% 11 60 Sandeli New Motor Vehicle Dealers 1100 W East St 70,658 0 10,336 n/a 2.27% 60% 12 60 Formerica New Motor Vehicle Dealers 1700 W East St 54,096 53,688 201,228 0.76% 1.74% 62% 13 07 Asd Department Stores 1201 S Townsend Ave 51,569 51,101 152,193 0.91% 1.66% 64% 14 19 Keris Specialty Stores 2500 W Butler Ave 46,112 47,273 126,313 -2.45% 1.48% 65% 15 60 Crepery New Motor Vehicle Dealers 1811 W East St 39,859 43,454 171,649 -8.27% 1.28% 66% 16 03 Socorros Family Apparel 201 E East St 37,955 35,108 130,819 8.11% 1.22% 68% 17 62 Keyman Service Stations 1201 S Ingersoll Blvd 35,912 7,811 174,010 359.79% 1.15% 69% 18 65 Eventos Auto Lease No Address In City 32,566 29,708 122,769 9.62% 1.05% 70% 19 62 Ravenous Service Stations 300 S Ingersoll Blvd 30,903 33,209 149,912 -6.94% 0.99% 71% 20 60 DIs New Motor Vehicle Dealers 1200 W East St 30,825 0 65,141 n(a 0.99% 72% 21 62 Survive Service Stations 600 N Gibson Ave 25,942 31,565 132,673 -17.81% 0.83% 73% 22 19 Maxies Specialty Stores 2568 W Butler Ave 21,449 21,599 83,549 -0.69% 0.69% 73% 23 24 Awch Quick-Service Restaurants 2 Locations 21,173 21,015 83,284 0.75% 0.68% 74% 24 27 Kade Drug Stores 3 Locations 20,761 21,460 83,336 -3.25% 0.67% 75% 25 34 Smartforce Grocery Stores Liquor 345 E East St 20,738 19,577 42,325 5.93% 0.67% 75% 26 62 Capelli Service Stations 601 W Yukon Blvd 19,750 21,344 91,806 -7.47% 0.63% 76% 27 34 Hotdog Grocery Stores Liquor 2400 W Butler Ave 19,216 16,835 69,866 14.14% 0.62% 77% 28 24 Chaunceys Quick-Service Restaurants 1210 N Ingersoll Blvd 18,365 17,289 70,587 6.22% 0.59%0 77% 29 62 Metropoly Service Stations 3201 W Yukon Blvd 16,843 18,559 81,112 -9.25% 0.54% 78% 30 18 Waxworks Office Supplies/Furniture 1200 W Yukon Blvd 16,265 9,409 38,729 72.87% 0.52% 78% 31 62 Trails Service Stations 2600 W Yukon Blvd 16,145 14,443 72,529 11.78% 0.52% 79% 32 12 Primeco Sporting Goods/Bike Stores 2801 W Dunkirk Rd 15,834 13,078 47,484 21.08% 0.51% 79% 33 65 Joyce Auto Lease No Address In City 14,974 13,073 56,029 14.54% 0.48% 80% 34 62 Natuurlik Service Stations 525 N Ingersoll Blvd 14,927 18,601 74,108 -19.75% 0.48% 80% 35 35 Foundry Casual Dining 245 W Yukon Blvd 14,583 9,939 67,928 46.73% 0.47% 81% CONFIDENTIAL INFORMATION- DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 05/1912015 &57am HdL • 909.861.4335 • www.hdlcompanies.com Page 1 of CITY OF GOTHAM TOP 100 SALES TAX PRODUCERS-4Q 2014 Business Percent Percent Cumulative Rank Type Firm Name Business Address 4Q 2014 4Q 2013 Prior Qlrs Change of Total Percent 36 86 Dascom Electrical Equipment 22220 W East St 13,971 0 0 nfa 0.45% 81% 37 31 Profab Electronics/Appliance Stores 810 E Yukon Blvd Ste D 13,672 12;589 47,191 8.60% 0.44% 82% 38 35 Coopersoft Casual Dining 740 E Yukon Blvd 13,398 12,155 49,257 10.22%Q 0.43% 82% 39 31 Axion Electronics/Appliance Stores 2121 W East St Ste 100 13,210 12,358 51,470 6.89% 0.42% 83% 40 24 Touba Quick-Service Restaurants 288 W Yukon Blvd Ste 110-112 12,950 3,842 21,515 237.05% 0.42% 83% 41 05 Antoinette Variety Stores 2810 W Republic Rd 12,440 12,229 41,786 1.73% 0.40% 83% 42 85 Samkhya Transportation/Rentals 3 Locations 12,277 10,900 49,198 12.64% 0.39% 84% 43 62 Lanimar Service Stations 848 S Gibson Ave 12,232 15,462 60,723 -20.89% 0.39% 84% 44 62 Citiva Service Stations 2601 W East St 11,506 14,262 57,615 -19.32% 0.37% 84% 45 34 Mulkeyland Grocery Stores Liquor 725 E East St 11,315 10,441 46,284 8.36% 0.36% 85% 46 27 Bondesign Drug Stores 2 Locations 11,307 11,805 43,373 422% 0.36% 85% 47 12 Euphorbia Sporting Goods/Bike Stores620 E Yukon Blvd 10,923 11,139 45,085 -1.94% 0.35% 86% 48 66 Nuvart Boats/Motorcycles 3001 W East St Ste A 10,920 13,365 44,345 -18.30% 0.35% 86% 49 65 Nesting Auto Lease No Address In City 10,741 5,560 29,259 93.19% 0.34% 86% 50 27 Mandalay Drug Stores 2551 W East St 10,693 10,585 39,142 1.02% 0.34% 87% 51 19 Sante Specialty Stores 2500 W Butler Ave 10,578 10,394 26,579 1.77% 0.34% 87% 52 35 Confeccion Casual Dining 68 W East St 10,452 10,118 41,316 3.30% 0.34% 87% 53 36 Qualitype Fine Dining 700 S Republic St 10,440 10,628 35,437 -1.77% 0.34% 88% 54 35 Heatherstone Casual Dining 700 W Yukon Blvd 10,219 9,445 39,739 8.20% 0.33% 88% 55 12 Chavas Sporting Goods/Bike Stores 2801 W Dunkirk Rd 10,127 9,082 36,200 11.51% 0.33% 88% 56 31 Ctm Electronics/Appliance Stores 2 Locations 9,892 10,986 26,967 -9.96% 0.32% 89% 57 19 Ardove Specialty Stores 2115 W Butler Ave 9,627 0 19,646 nla 0.31% 89% 58 90 Bootz Food Service Equip./Supplies 949 S Dupont Ave 9,599 9,876 38,194 -2.81% 0.31% 8.9% 59 35 Alteryears Casual Dining 2000 W East St 9,347 8,006 32,896 16.75% 0.30% 89% 60 05 Warrior Variety Stores 600 E Yukon Blvd 9,183 9;592 29,750 -4.27% 0.29% 90% 61 35 Greenbrew Casual Dining 33 W East St 9,130 8,768 40,760 4.14% 0.29% 90% 62 35 Creativities Casual Dining 742 W Yukon Blvd 8,978 8,452 39,608 6.22% 0.29% 90% 63 52 Elsies PlumbinglElectrical Supplies 2220 W East St . 8,976 2,722 12,732 229.79% 0.29% 91% 64 35 Dataliner Casual Dining 2131 W Butler Ave 8,551 8,767 37,197 -2.46% 0.27% 91% 65 35 Cellcite Casual Dining 21 E East St 8,357 8,013 39,982 4.29% 0.27% 91% 66 35 Christos Casual Dining 515 W East St 7,946 7,726 30,931 2.85% 0.26% 91% 67 24 Eastwind Quick-Service Restaurants 138 E Yukon Blvd 7,593 7,027 30,754 8.04% 0.24% 92% 68 18 Vending Office.Supplies/Furniture No Address In City 7,368 0 0 nla 0.24% 92% 69 71 Frances Auto Repair Shops 328 S East Ave 7,277 8,764 32964 -16.96% 0.23% 92% 70 35 Greenmail Casual Dining 828 W Yukon Blvd 7,027 0 7,581 nla 0.23% 92% CONFIDENTIAL INFORMATION- DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 05!1912015 &57 am HdL • 909.861.4335 • www.hdlcompanies.com Page 2 or 3 CITY OF GOTHAM TOP 100 SALES TAX PRODUCERS-4Q 2014 Business Percent Percent Cumulative Rank Type Firm Name Business Address 4Q 2014 4Q 2013 Prior 4 Qtrs Change of Total Percent 71 30 Mtv Nome Furnishings 700 S Hempstead Ave 6,942 8,476 30,296 -18.10% 0.22% 93% 72 37 Locksery Fast-Casual Restaurants 2121 W East St Ste 210 6,929 5,975 26,898 15.97% 0.22% 93% 73 35 Sportaction Casual Dining 2 Locations 6,834 5,679 23,565 20.34% 0.22% 93% 74 62 Martinetti Service Stations 1401 S Gibson Ave .6,830 7,350 30,123 -7.08% 0.22% 93% 75 35 Greenfield Casual Dining 1224 N Ingersoll Blvd 6,735 6,233 26,082 8.06% 0.22% 93% 76 65 Katana Auto Lease No Address In City 6,614 0 26,267 nla 0.21% 94% 77 35 Bjzz Casual Dining 1412 S Gibson Ave 6,572 0 5,423 nla 0.21% 94% 78 64 Khakis Used Automotive Dealers 400 W Yukon Blvd 6,365 6,034 25,999 5:49% 0.20% 94% 79 31 Eastwind Electronics/Appfiance Stores 1127 S Townsend Ave 6,162 4,713 1$;678' 30.75% 0.20% 94% 80 35 Fye Casual Dining 100 W East St 6,087 5,932 25,121 2:62% 0.20% 95% 81 35 Giulianos Casual[dining 701 S Townsend Ave 5,940 5,134 21,265 15.69% 0.19% 95% 82 24 Travelsmith Quick-Service Restaurants2528 W Butler Ave 5,878 5,569 22,905 5.55% 0.19% 95% 83 35 Loshas Casual Dining 228 W Yukon Blvd Ste101 5,766 0 6,242 nfa 0.19% 95% 84 82 Imt Contractors 3001 W Dunkirk Rd Ste B 5,754 5,775 22,927 -0.37% 0.18% 95% 85 37 Dawsons Fast-Casual Restaurants 2234 W Yukon Blvd 5,702 5,466 22,149 4.33% 0.18% 95% 86 35 Childprotect Casual Dining 208 E Yukon Blvd 5,690 5,592 22,361 1.76% 0.18% 96% 87 24 Peking Quick-Service Restaurants 511 W Yukon Blvd 5,532 0 0 nla 0.18% 96% 88 35 Kellco Casual Dining 910 E East St 5,385 4,900 20,167 9.89% 0.17% 96% 89 24 Calmaka Quick-Service Restaurants 245 S Ingersoll Blvd 5,258 5,132 20,796 2.46% 0.17% 96% 90 35 En, Yntherm Casual Dining 201 W East St 5,239 5,114 20;758 2.43% 0.17% 96% 91 98 Willoweir:- Heavy Industrial 1147 S Dupont Ave 5,011 5,333 21,374 -6.04%0 0.16% 96% 92 35 Gypsywick U� ual Dining 1032 E Yukon Blvd 4,947 5,011 19,863 -1.27% 0.16% 97% 93 61 Poche Automotive Supply Stores 800 E Yukon Blvd 4,899 0 14,437 nla 0.16% 97% 94 35 Hsquare Casual Dining 47 W East St 4,598 4,652 20,680 -1.16% 0.15% 97% 95 30 Marmac Home Furnishings 323 E East St 4,579 3,110 12,966 47.23% 0.15% 97% 96 24 Godprint Quick-Service Restaurants 2521 W Butler Ave 4,531 4,503 17,182 0.62% 0.15% 97% 97 24 Skytree Quick-Service Restaurants 647 W Yukon Blvd 4,471 3,564 17,906 25.44% 0.14% 97% 98 24 Jabco Quick-Service Restaurants 514 W Yukon Blvd 4,467 3,887 15,542 14.94% 0.14% 98% 99 24 Sandees Quick-Service Restaurants 1 W Yukon Blvd 4,440 3,991 16,821 11,27% 0.14% 98% 100 24 Canasia Quick-Service Restaurants 2531 W Yukon Blvd 4,305 4,130 17,290 4.24% 0.14% 98% Amount Paid By Top 100 Accounts 3,046,467 2,544,666 10,409,578 97.81% 98% Percent Paid By Top 100 Accounts 97.81% 78.47% 81.78% Total Paid By All Accounts 3,114,784 3,242,897 12,728,655 CONFIDENTIAL INFORMATION- DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 0511912015 8:57am HdL - 909.86'I.4335 • www.hdicompan'tes.com Page 3 of 3 CITY OF GOTHAM COM PAN t ES TOP 100 SALES TAX PRODUCERS RAMC COMPARISON-4Q 2014 Rank Rank Bus. Percent Cumulative Percent Rank Rank Rank 4Q14 4013 Type Firm Name 4Q 2014 of Total Percent 4Q 2013 Change 3Q14 2Q14 1Q14 1 1 08 Dougco Discount Dept Stores 597,106 19.17% 19% 585,275 2,02% 1 1 1 2 6 64 Djgraphic New Motor Vehicle Dealers 171,402 5.50% 25% 134,051 27.86% 2 5 3 3 2 60 Ooohlala New Motor Vehicle Dealers 165,728 5.32% 30% 163,711 1.23% 4 4 4 4 3 60 Silverstone New Motor Vehicle Dealers 164,943 5.30% 35% 156,103 5,66% 5 2 2, 5 5 08. Verdaioe Discount Dept Stores 145,966 4.69% 40% 141,387 3.24% 7 8 6 6 4 60 Macnetworks New Motor Vehicle Dealers 143,059 4.59% 45% 142,097 0.68% 3 3 5 7 0 60 ,Beachtownrules New Motor Vehicle Dealers 128,625 4.13% 49% 0 nla 8 7 55 8 8 50 Giftprints Lumber/Building Materials 120,212 3.86% 53% 81,258 47,94% 6 6 7 9 9 65 Kiaras Auto Lease 94,354 3.03% 56% 76,904 22.69% 9 9 8 10 10 60 Bonega New Motor Vehicle Dealers 76,970 2.47% 58% 58,436 31.72% 10. 10 10 11 0 60 Sandeli New Motor Vehicle Dealers 70,6658 2.27% 60% 0 n/a 51 0 0 12 12 60 Forerica New Motor Vehicle Dealers 54:096 1.74% 62% 53,688 0.76% 13 13 13 13 14 07 Asd Department Stores 51,569 1.66% 64% 51,101 0.91% 17 16 19 14 15 19 Keris Specialty Stores 46,112 1.48% 65% 47,273 -2.45% 21 21 20 15 16 60 Crepery New Motor Vehicle Dealers 39,859 1.28% 66% 43,454 -8.27% 14 14 14 16 17 03 Socorros Family Apparel 37,955 1.22% 68% 35,108 8.11% 19 18 18 17 64 62 Keyman Service Stations 35,912 1.15% 69% 7,811 359.79% 12 12 11 18 20 65 Eventos Auto Lease 32,566 1.05% 70% 29,708 9,62% 20 19 17 19 18 62 Ravenous Service Stations 30,903 0.99% 71% 33,209 -6.94% 15 15 15 20 0 60 Ds New Motor Vehicle Dealers 30,825 0.990/0 72% 0 n/a 16 20 0 21 19 62 Survive Service Stations 25,942 0,83% 73% 31,565 -17.81% 18 17 16 22 21 19 Maxies Specialty Stores 21,449 0.69% 73% 21,599 -0.69% 23 26 23 23 24 24 Awch Quick-Service Restaurants 21,173 0.68% 74% 21,015 0.75% 24 24 24 24 22 27 Kade Drug Stores 20,761 0.67%a 75% 21,460 -3.25% 27 25 22 25 25 34 Smarttorce Grocery Stores Liquor 20,738 0.67% 75% 19,577 5.93% 53 37 0 Top 25 2,348,884 75.41% 75% 1,955,787 20,10% 26 23 62 Capelli Service Stations 19,750 0.63% 76% 21,344 -7,47% 22 22 21 27 29 34 Hotdog Grocery Stores Liquor 19,216 0.62% 77% 16,835 14.14% 30 31 30 28 28 24 Chaunceys Quick-Service Restaurants 18,365 0.59% 77% 17,289 6.22% 31 30 29 29 27 62 Metropoiy Service Stations 16,843 0.54% 78% 18,559 -9.25% 25 23 25 30 54 18 Waxworks Office Supplies/Furniture 16.265 0.52% 78% 9,409 72.87% i 44 56 44 31 32 62 Trails Service Stations 16,145 0.52% 79% 14,443 11.78% 26 29 27 32 35 12 Primeoe Sporting Goods/Bike Stores 15,834 0.51% 79% 13,078 21.08% 43 40 38 33 36 65 Joyce Auto Lease 14,974 0.48% 80% 13,073 14.54% 35 35 32 34 26 62 Natuurtik Service Stations 14,927 0.48% 80% 18,601 -19.75% 32 27 28 35 50 35 Foundry Casual Dining 14,583 0.47% 81% 9,939 46.73% 29 28 26 36 0 86 Dascom Electrical Equipment 13,971 045% 81% 0 n/a 0 0 0 37 37 31 Protab Electronics/Appiiance Stores 13,672 0.44% 82% 12,589 8.60% 52 41 33 38 40 35 Coopersoft Casual Dining 13,398 0.43% 821X 12,155 10.22% 40 38 40 39 38 31 Axion Electronics/Appliance Stores 13,210 0.42% F, , 12.358 6.89% : 42 36 34 40 106 24 Touba Quick-Service Restaurants 12,950 0.42% A% 3,842 237.05% 83 80 67 41 39 05 Antoinette Variety Stores 12,440 0.40% 83% 12,229 1.73% 54 50 46 42 44 85 Samkhya Transportation/Rentals 12,277 0.39% 84% 10,900 12.64% 37 39 37 43 30 62 Lanimar Service Stations 12,232 0.39% 84% 15,462 -203.89%0 33 32 36 CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 9/2015 12:04 pm HdL • 909.861.4335 • wvvw.hd1Companios.com 46 Page t of 3 CITY OF GOTHAM TOP 100 SALES TAX PRODUCERS RANK COMPARISON-40 2014 Rank Rank Bus. Percent Cumulative Percent Rank Rank Rank 4Q14 4013 Type Firm Name 402014 of Total Percent 40 2013 Change 3Q14 2Q14 1Q14 44 33 62 Citiva Service Stations 11,506 0.3711/6 84% 14,262 -19.32% 36 33 31 45 47 34 Mulkeyland Grocery Stores Liquor 11,315 0.36% 85% 10,441 8.36% 34 43 45 46 41 27 Bondesign Drug Stores 11,307 0.36% 85% 11,805 -4.22% 48 34 71 47 42 12 Euphorbia Sporting Goods/Bike Stores 10,923 0.36% 86%. 11,139 -1.94% 41 42 42 48 34 66 Nuvart Boats/Motorcycles 10,920 0.35% 866/o 13,365 -18.30% 47 44 52 49 79 65 Nesting Auto Lease 10,741 0.34% 86% 5,560 93.19% 58 61 66 50 46 27 Mandalay Drug Stores 10,693 0.34% 871/0 10,585 1.02% 55; 52 48 51 48 19 Sante Specialty Stores 10,578 0.34% 87% 10,394 1.77% 86 79 83 52 49 35 Conteccion Casual Dining 10,452 0.34% 87% 10,118 3.30% 50 47 43 53 45 36 Qualitype Fine Dining 10,440 0.34% 88% 10,628 -1.77% 64 49 65 54 53 35 Heatherstone Casual Dining 10,219 0.33% 88% 9,445 8.20% 49 48 49 55 55 12 Chavas Sporting Goods/Bike Stores 10,127 0.33% 88% 9,082 11.51% 60 53 54 56 43 31 Cfm Electronics/Appliance Stores 9,892 0,32% 89% 1086 -9.96% 87 89 78 57 0 19 Ardove Specialty Stores 9,627 0,31% 89% 0 n/a 28 0 0 58 51 90 Bootz Food Service Equip./Supplies 9,599 0.31% 89% 9,876 -2.81% 56 54 50 59 63 35 Alteryears Casual Dining 9,347 0.30% 89% 8,006 16.75% 59 60 56 60 52 05 Warrior Variety Stores 9,183 0.29% 90% 9,59.2 -4.27% 75 67 64 61 56 35 Greenbrew Casual Dining 9,130 0.29% 90% 8,768 4.14% 48 45 41 62 61 35 Creativities Casual Dining 8,978 0.29% 90% 8,452 6.2211/0 45 46 47 63 133 52 Elsies Plumbing/Electrical Supplies 8,976 0.29% 91% 2,722 229.79% 109 120 128 64 57 35 Dataliner Casual Dining 8,551 0.27% 91% 8,767 -2.46% 57 51 53 65 62 35 Cellcite Casual Dining 8,357 0.27% 91% 8,013 4.29% 39 66 39 66 65 35 Christos Casual Dining 7,946 0.26% 91% 7,726 2.85%° 63 62 58 67 67 24 Eastwind Quick-Service Restaurants 7,593 0.24% 92% 7,027 8.04% 62 58 59 68 0 18 Vending Office Supplies/Furniture 7,368 0.24% 92% 0 nla 0 0 0 69 58 71 Frances Auto Repair Shops 7,277 0.23% 92% 8,764 -16.96/° 61 59 57 70 0 35 Greenmail Casual,Dining 7,027 0.23% 92% 0 n/a 66 0 0 71 60 30 Mtv Home Furnishings 6,942 0.22% 93% 8,476 -18.10% 67 63 60 72 73 37 Locksery Fast-Casual Restaurants 6,929 0.22% 93% 5,975 15.97% 68 65 69 73 76 35 Sportaction Casual Dining 6,834 0.22% 93% 5,679 20.34% 78 73 76 74 66 62 Niartinettl Service Stations 6,830 0.22% 93% 7,350 -7.08% 65 57 63 75 68 35 Greenfield Casual Dining 6,735 0.22% 930- 6,233 8.06% 69 69 72 76 0 65 Katana Auto Lease 6,614 0.21% 94' : 0 n/a 38 70 68 77 0 35 13jzz Casual Dining 6,572 0,21% % 0 n/a 95 306 845 78 71 64 Khakis Used Automotive Dealers 6,365 0.20% 94% 6,034 5.49% 70 74 61 79 91 31 Eastwind Electronics/Appliance Stores 6,162 0.20% 94% 4,713 30.75% 97 93 96 80 74 35. Fye Casual Dining 6,087 0.2V/ 95% : 5,932 262% 77 68 73 81 82 35 Giulianos Casual Dining 5. ^:o 0.1` :b 95°/° 5,134 15.69% 88 81 80 82 78 24 Travelsmith Quick-Service Restaurants 5,878 r.i9% 95% 5,569 5.550/0 80 77 77 83 0 35 Loshas Casual Dining 5,76; 0.19% 95% 0 n/a 81 353 0 84 75 82 Imt Contractors 5,754 0.18% 95% 5,775 -0.37% 76 78 86 85 80 37 Dawsons Fast-Casual Restaurants 5,702 0.18% 95% 5,466 4.33% 89 76 79 86 77 35 Chifdprotect Casual Dining 5,69�; 0.18°/0 96% 5,592 1.76% 84 82 74 87 0 24 Peking Quick-Service Restaurants 5,532 0.18% 96% 0 n/a 0 0 0 88 88 35 Kellco Casual Dining 5,385 0.17% 96% 4,900 9.89% 92 86 91 CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 19!2011611104 pm HdL • 909.869,4335 • www.hdicompanies.com 47 Page 2of3 CITY OF GOTHAM TOP 100 SALES TAX PRODUCERS RANK COMPARISON-4Q 2014 Rank Rank Bus. Percent Cumulative Percent Rank Rank Rank 4Q14 4013 Type Firm Name 4Q 2094 of Total Percent 4Q 2013 Change 3Q14 2Q14 1 Q14 89 83 24 Calmaka Quick-Service Restaurants 5,258 0.17% 96% 5,132 2.466/o 85 83 89 90 84 35 Envirotherm Casual Dining 5,239 0.1.7% 96% 5,114 2.43% 90 84 85 91 81 98 Willowerks Heavy Industrial 5,011 0.16% 96% 5,333 -6.04% 94 71 88 92 86 35 Gypsywick Casual Dining 4,947 0.16% 97% 5,011 -1.27% 82 95 92 93 0 61 Poche Automotive Supply Stores 4,899 0.16% 97% 0 n/a 93 91 94 94 92 35 Hsguare Casual Dining 4,598 0.15% 97% 4,652 -1.16% 72 94 90 95 125 30 Marmac Home Furnishings 4,579 0.15% 971/4 3,110 47.23% 108 150 112 96 94 .24 Godprint Ouick-Service Restaurants 4,531 0.156/0 9711/b 4,503 0.62% 103 96 98 97 114 24 Skytree Quick-Service Restaurants 4,471 . 0.14% 97% 3,564 25.44% 96 87 93 98 104 24 Jabco Quick-Service Restaurants 4,467 0.141/10 98% 3,887 14.94% 106 107 104 99 99 24 Sandees Quick-Service Restaurants 4,440 0.14% 98% 3,991 11.27% 100 97 99 100 97 24 Canasia Quick-Service Restaurants 4,305 0.14% 98% 4,130 4.24% 110 103 84 Amount Paid By Top 100 Accounts 3,046,467 97.81% 98% 2,544,666 19.72% Percent Paid By Top 100 Accounts 97.81 78.47 Total Paid By All Accounts 3,114,784 3,242,897 CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION )5/19!2[715 12:04 pm HdL • 909.861.4335 • www.hdlcompanies.com 48 Page 3 of 3 rica:;%j too i y ul- UUTHAM C$ 1 PA:N f, Gr 20 ICiEVIA 1 ING BUSINESSES Firm Name 4Q 2013 $Change Prior Year Comparison R '' 4Q 2013 Account Number 4Q 2014 %Change OW 4Q 2014 Beachtownruies New Motor Vehicle Dealers NP 128,625 60 SR AP 102666461 128,625 -n/a- Sandell New Motor Vehicle Dealers NP 70,658 60 SR AP 102749961 70,658 -r1/a- Giftprints Lumberl8oilding Materials 81,258 38,954 50 SRZ OHA 030835794 120,212 48% Djgraphic New Motor Vehicle Dealers 134,051 37,351 60 SRX AP 017252957 171,402 28% Dls New Motor Vehicle Dealers NP 30,825 60 SR AP 102679104 30,825 -n/a- Keyman Service Stations 7,811 28,102 62 SRY AR 102627270 35,912 3601/14 Bonega New Motor Vehicle Dealers 58,436 18,534 60 SR AP 102384022 76,979 32% Kiaras Auto Lease 76,904 17,450 65 SRS OHB 099963147 94,354 23% lascom Electrical Equipment NP 13,971 86 SRY AP 102798466x 13,971 -n/a- Dougco Discount Dept Stores 585,275 11,832 08 SRZ OH 030823777 597,106 2% Ardove Specialty Stores NP 9,627 19 SRY OHA 102785663 9,627 -n/a- Touba Quick-Service Restaurants 3,842 9,108 24 SR AP 100739752 12,950 237% Silverstone New Motor Vehicle Dealers 156,103 8,839 60 SRX AP 098183274 164,943 6% Vending Office SuppiieslFUrniture NP 7,368 18 SRS 0H8 098152086 7,358 -n/a- Quiroga Textlies/ urnishings 8,570 (8.570) 91 Sc OHA 100868222x NP -100% Kudos N Motor Ve i _ ._ _ __ m cie Deal,:s 15,346 (1 5,346) 60 SR AP 101746615X P -100% Photoscapes New Motor Veil cl Dealers 52,265 (52,265) 60 SR AP 101846452x NP -100% Lidos Service Stations 56,247 (56,245) 62 SRYAP017799524x 2 -100% Facaclecor Now MotorVehicle Dealers 108,294 (108,294) 60 SR AP 017895148x NP -100% _ ..._. .. -_ ww Stylization A to tease (9,527) (373,594) 65 SRS AS 018879697 (383,120) 3,921% 3,242,897 (128,114) Agency Total 3,114,784 -4.0% CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 49 05/19/2015 9:28arn HdL • 909.861.4335 a www.hdicompanies.com Page 1 of 1 HdU-` CITY OF SAN JUAN CAPISTRANO N a SALES TAX ALLOCATION SUMMARY Fiscal Yr FY 2013-14 Sales Quarters Fiscal Yr Dollar Percent FY 2014-15 Sales Quarters Fiscal Yr YTO Seven Major 2012-13 2013-14 Change Change 2014-15 %Change industry Groups Totals 20 3Q 4Q 1Q Totals Prior Yr Prior Yr 20 30 40 10 YTD Totals Prior Yr Point of Sale Autos And Transportatiorr 2,265,238 661,955 669,392 530,402 546,211 2,407,961 142,722 6% 568,292 584,264 531,802 104,357 -10% Building And Construction 425,255 119,751 121,572 109,653 111,664 462,641 37,385 9% 129,764 135,539 123,415 388,719 11% Business And Industry 691,630 193,340 188,508 211,089 123,742 716,679 25,049 4% 178,642 203,271 199,940 581,853 -2% Food And Drugs 243,731 65,329 59,895 72,694 41,185 239,104 (4,627) -2% 77,110 59,624 76,692 213,427 8% Fuel And Service Stations 319,835 75,249 80,942 69,128 76,439 301,759 (18,077) -6% 108,329 64,183 78,990 251,502 12% General Consumer Goads 2,081,138 516,670 506.406 631,573 489,334 2,143,983 62,845 3% 557,855 538,826 632,500 1,729,181 5% Restaurants And Hotels 631,906 164,784 166,443 159,710 161,246 652,183 20,277 3% 175,648 169,312 149,079 494,039 1% Transfers&Unidenfifled (96 (541) 0 (699) 201 1,039 (942) -978% 0 886 54 940 176% Total Point of Sale 6,658,638 1,796,537 1,793,160 1,783,551 1,550,023 6,923,271 264,633 4% 1,795,641 1,755,906 1,792,473 5,344,019 1% County Pooi Allocations 718,206 198,286 188,533 219,199 185,890 791,907 73,701 10% 199,582 205,679 232,586 637,847 5% State Pool Allocations 3,379 1,241 671 1,232 1,443 4,588 1,209 36% 1,356 1,199 1,967 4,522 44% Total(stet Collections) 7,380,223 1,996,064 1,982,363 2,003,982 1,737,356 7,719,765 339,543 5% 1,996,579 1,962,784 2,027,026 5,986,389 0% Triple Flip Redwtion (1,845,056 (499,016) (495,591) (500,996) (434,339) (1,929,941) (84,886) -5% (499,145) (490,696) (506,756) (1,496,597 0% Total 5,535,167 1,497,048 1,486,772 1,502,987 1,303,017 5,789,824 254,657 5% 1,497,434 1,472,088 1,52fl,269 4,489,791 0% Less:Cost of Administration (73,076 (21,098) (21,144) (20,132) (17,843 (80,21 (7,140) -10% (20,075) (19,511) (19,377) (58,963 5% Balance 5,462,091 1,475,950 1,465,628 1,482,855 1,285,174 5,709,608 247,517 5% 1,477,359 1,452,577 1,500,893 4,430,829 0% Sales&Use Tax Comp Fund' 1,840,415 0 0 1,132,763 955,783 2,088,545 248,131 13% 0 0 977,815 978,931 977,815 -14% Grand Total 7,302,505 1,475,950 1,465,628 2,615,618 2,240,956 7,798,153 495,648 7% 1,477,359 1,452,577 2,478,708 5,408,644 -3% Budget Accrual Basis(60-day) 7,540,505 7,880,553 Accrual Basis(90-day) 7,471,990 7,799,562 *Beginning 2401x07,the State began deduc",3 administrative costs on the 25%reimbursement, (in Thousands) -2,500 Budget _ 2,000 F:eGe[pis E Trend _ 00 u Budget vs, -- -r-1-r -�- - -- 0 9 01 Q1 Q1 Q1 Receipts 1.11 '12 113 '14 CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 05/19/2015 9:21 am HdL • 909.861.4335 • www.hdicompanies.com HdLt'w�A CITY OF SAN JUAN CAPISTRANO A N c f::.s SALES TAX ALLOCATION CASH RECONCILIATION Payment Fiscal Year Fiscal Year Month 2013-14 2014-15 1stAdvance June $ 394,100.00 $ 417,500.00 2nd Advance July 394,100.00 421,900.00 3rd Advance August 525,500.00 556,700.00 Clean Up September 162,250.45 81,259.48 2nd Quarter Allocation 1,475,950.45 :+; 1,477,359.48 1st Advance September 404,400,00 415,600.00 2nd Advance October 404,400.00 415,600.00 3rd Advance November 539,200.00 5 554,100.00 Clean Up December 117,628.28 67,276.68 3rd Quarter Allocation 1,465,628.28 1,452,576.68 -- — 1 st Advance December 434,400.00 422,100.00 2nd Advance January 434,400.00 422,100.00 3rd Advance February 579,200,00 562,8(]0.00 'Na Clean Up March 34,855.14 ��' 93 892.59 mss.' 4th Quarter Allocation 1,482,85514 1,500,892.59 _ £ 1st Advance March 363,300.00 371,500.0(} 2nd Advance April 363,300.00 371,500.00 3rd Advance May 484,400.00 495,200.00 Clean Up June 74,173.67 wMIR Elk 1st Quarter Allocation 1,285S 173.67 _ 1,238,200 00 -- v 1 st Advance June 417,500,00 2nd Advance July 421,900.00 MEN - 3rd Advance August 556,700,00 F�; �w Clean Up September 81,259.48 - 2nd Quarter Allocation 1,477,359.48 Fiscal Year Reconciliation I. Sales & Use Tax Compensation Fund 1st Payment 1,132,762.80 977,815.43 2nd Payment 955,782.50 978,930.50 Total $ 2,088,545.30 $ 1,956,745.93 05/9912015 9:22 am HdL 909.861.4335 • www.hdlcompanies.com 51 Page 1 of 1 CITY OF GOTHAM FY 2012-13(ending June) Mid-Year Sales and Use Tax Revenues Projection Agency Budget Estimate for FY 2012-13 Sales Tax Net 8,737,500 Sales Tax In Lieu 2,912,500 TotafAgency Budget Estimate $11,850,000 Total Allocation From SBOE(Cross Before Triple Flip Deduction) Includes State and County Pools, Net of Admin Fee Current Quarter 4Q 2012 3,452,303 Previous Quarter 3Q 2012 3,353,313 2nd Previous Quarter 2Q 2012 3,280,649 3rd Previous Quarter 1Q 2012 3,430,514 Total Allocation 13,516,780 Adjustments Economic Adjustments Autos&Transportation(+7.5%) 98,900 Pools(+10.0%) 32,800 General Consumer Goods(+3.0%) 23,700 Restaurants&Hotels(+5.0%) 19,650 Building&Construction(+4.5%) 6,950 Fuei&Service Stations(-1.5%) (4,050) Business&Industry(+4.0%) 3,000 Food&Drugs(+2.0%) 2,250 Transfers&Unidentified(-100.0%) 536 Other Adjustments(see attached) (20,010) Total Adjustments 163,726 Subtotal(10.0%increase from FY 2011-12 actual) 13,680,506 Triple Flip Deduction (3,453,655) Net 75%Allocation 10,226,851 Back Fill Payment Estimated FY 2012-13 SUTCF(Net of Admin) 3,182,289 FY 2011-12 True-Up Payment 162,778 Total Back Fill Payment 3,345,067 ESTIMATED FY 2012-13 SALES TAX REVENUES $13,571,918 Rounded to Nearest Thousand(9.2%increase from FY 2011-12 actual) $13,572,000 With Estimated 60-Day Accrual 14,615,000 Note? 1. Gotham's half-cent Pleasure G transactions tax became ffedbve A ii 1,2013 and is estimated to generate an additional$2,350,000 in the first year. Detried calculations are contained in a separate attachment. 2. Gotham's share of the half-cent Proposition 172 revenues are stimated at$537,850. 05/19/2015 1.2:47 pm CONFIDENTIAL-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION Prepared.511113 By:Idl 52 City of Gotham FY 2012-13(ending June) Page 2 oft Other Adjustments Ajax Power Plant Project-completed (185,625) Gotham Hospital Project equip,outlay 72,500 Air Fuel Resources-pending audit recovery 48,500 We Squeeze Finance refund-1112 38:525 Itty Bitty Italian Motors-new(1 qtr) 35,000 Bob's Saab-closeout (33,250) Ziroco Steel Wheels-pending audit recovery 18,500 Granny's Good0me Grill-reopens April 1 15,000 Acme Meters one-time purchase-1/12 (14,560) Snide Jahns Used Autos-closeout (12,5010) City Share of County pool-onetime spike in 1112 (9,950) Forever 39-new(2 Qtrs) 9,500 Ed's Hardware-closeout (8,500) Nancy's Natural Foods-new 6,850 Total Other Adjustments (20,010) 05119/2015 12:47 pm CONFIDENTIAL-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION Prepared:511113 By:Idl 53 tJCJU CITY OF GOTHAM CC)M PA.N i L s EXTENDED SALES AND USE TAX BUDGET ESTIMATE Industry Group Fiscal Yr Fiscal Yr 2013-14 Fiscal Yr 2014-15 Fiscal Yr 2015-16 Fiscal Yr 2016-17 Fiscal Yr 2017-18 Fiscal Yr 2018-19 2012-13 Actual Qtrs Prior Qtrs Actuals 20-10 Adjust Tolal4 0h % Adjust PrOjeCt0n % Projection 9n Projection % Projection % orojection Autos And Transportalion 4,632,274 4,632,274 287,250 4,919,524 6.211, 253,650 5,1€73,174 521/ 5,405,967 4.50' 5,622,206 4.0% 5,847,094 4.0°' 5,847,094 0.0° Building And Construction 689,399 689,399 19,000 708,399 23% 29,900 738,299 42° 786,28B 6-51/ 817,740 4.04' 846,361 3.59,11 846,361 0.00/ Business And Industry 489,827 489,827 350 490,177 01°` 12,350 502,527 2.5% 520,116 3.5%, 538,320 3.5% 557,161 3,5% 557,161 0.09 Food And Drugs 512,458 512,458 14,100 526,558 2,8% 9,6650 536,208 1.8°' 546,933 2.00/ 557,871 :;2,0'/ 569,029 2.0°i 569,029 0.01, Fuel And Service Stations 1,032,212 1,032,212 (3,600) 1,028,612 -0.39` 0 1,028,612 0.0% 1,044,041 1.51/( 1,059,702 1-5% 1,075,597 1.55` 1,075,597 0.01 General CwsumerGoods 3,468,788 3,468,788 133,350 3,602,138 3.89' 136,000 3,738,138 3.8% 3,850,282 3.00 3,946,539 ' 'Z5 4,025,470 2.0% 4,025,470 0.0" Restaurants And Hotels 1,546,113 1,546,113 90,000 1,636,113 5.8° 75,100 1,711,213 4.6% 1,779,662 4.001 1,841,950 . 3,5°/ 1,897,209 3.0°/ 1,897,209 0.00 Transfers&Unidentified (640) 1540) 693 53 108.31A 0 53 0.0°/ 53 0.0°/ 53 0.0°/ 53 0.0/ 53 0.05 State and County Pools 1,479,698 1,479:698 116,900 1,596,598 7,9/ 111,750 1,708,348 .7.0% 1,836,474 7.55 1,974,210 TV, 2,092,662 6.0, 2,092,662 0.0 Total 13,85(),130 0 13,850,130 658,043 14,508,173 4.8% 628,400 15,136,573 4.3% 15,769,816 4.20r 16,358,590 3.75' 15,910,636 3-49' 16,910,636 0.05 Administ-alion Cost (137,268) (137,268) (137,268) 0.0% (137,268) 0.0% (205,008} (212,662) (219,838) (219,838) Total 13,712,863 0 13,712,863 658,043 14,370,906 4.8% 62&400 14,999,306 4,4% 15,564,809 3.81 16,145,929 3.7°'° ':0,690,797 3.41 16,690,797 0.0 Triple Flip Deduction (3,462,533) (3,627,043) -4.8°1 (3,784,143) 4.3% Estimated SUTCF 3,182,289 3,574,050 12.3% 3,746,302 4.85` True-UpPayrnent 162,7-8 246,705 51.6% 16,723 -93.2 oral 13,595,397 0 13,712,$63 658,043 14,564,617 7.1% 628,400 14,978,187 23% 15,564,809 3.9°1 16,145,929 S. 4111 16,690,787 3.41 16,690,797 0.01i -p44 CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 0711412014 3A4 pm HdL • 909.861.4335 • www.hdtcompanies.com WI`r-11ruC LrIJV lV ! y CC) MPA NiF- s PUBLIC SAFETY 112 CENT(PROPOSITION 172)-TREND ANALYSIS 2010-11 2011-12 2012-13 2013-14 2014-15 County Pro-rata Factor 0.100223 0.099909 0.099420 0-098955 0,098199 %Change from Prior Year -0.667% -0.313% -0.489% -0.468% -0.764% Gross County Allocation $247,430,744 $271,491,801 $289.172.538 $302,823,343 $315,674,235 Change from Prior Year 4.136% 9.724% 6.512% 4.721% 4.244% Statewide Public Safety Revenues $2.468,802,0,10 $2717,390.834 52,908,595,231 $3,060,212,656 $3,214.637,985"' %Change from Prior Year 4.835% 10,069% 7.036% 5.213% 5.046% County Pro-rata Factor 0.1010 _. 0.1000 -......._ .. 0.0995 ` - _� -. 0.099€3 0.0985 . 0.0980 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Gross County Allocation-Includes City Shares 320M 260M _. __. .._.. .. m..._ ..-__. �.... .._ - _.., _._ . .._. ....r 240M '._,.__._._.____ -----._...,,, 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15" Statewide Public Safety Revenges 3.408 .. u. .,,.... ..... ,.. . w:,: n,__. .__. .. ,. .., 3.208 2.808 2.608 .-..... . .._.__. _. _.-. . .__ ...__... -.. _....... 2.40E ._.....:....... 2.208 .._,....._._ ..�._.___ ._..-_..,,_ .�_,__.._..,.w.,. _.. w_ 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Statewide 1%Sales&Use Tax (including county&state pools) Recent Year-to-Year Change 2013-14 Actual Public Safety Receipts: $3,060,23.2,65$ Quarter %Change 4Q 2414 3.88% 2014-15 Public Safety Tax Estimate': $3 214 537.985 3Q 2014 6.06% "2014-15 statewide growth forecast based on the fol€awing assumptions:Autos& Transportation 1+7.3%], 2Q 2014 3,91% Building&Construction[+6-4%],Business&industry(+2.9%)r Food&Drugs f+3-4%j,Fuel&Service Stations 10 2014 3.700/. [-10,3%],Generaf Consumer Goods(+2.8%),and Restaurants&Hotels[+6.9%].The forecast assumes accrual 4Q 2013 6.77% of JWy and August payments from tho State Controller,and a one-time adjustment of+$50M for the November 3Q 2013 3.48% payment. Sources:State Board of Equalization,State Controller's Office,The HdL Companies 55 05!2012015 70:41 am HdL • 909.861.4335 • www.hdicompanies.com Page 1 of 1 HdUCITY OF SAN JUAN CAPIST ANO e� P:AIF S Sales and Use Tax Compensation Fund Allocation 2014-15 (Triple Flip) Final Adjustment for 2013-14 Adjustment 2013-14 2013-14 From Estimated Actual Estimate Revenue Loss — $1,929,941.35 Admin Fee — ($19,491.42) $1,911,565.00 $1,910,449.93 ($1,115.07) Estimated Adjustment for 2014-15 2014-15 2014-15 Estimated 2013-14 Net SUTCF Adjustment Adjustment $1,957,861.00 ($1,115.07) $1,956,745.93 * The administrative fee on the 25% of I% has already been deducted from the estimate. Source: State of California department of Finance 95/19/2015 9:27 am HdL • 909.861.4335 - www.hdlcompanies.com Page 1 of 1 56 X11 T Ur bAN JUAN CAPI TRANO c ry A s TRIPLE FLIP RECONCILIATION Reconciliation -From FY 04-05 Triple Flip-True Up FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 Triple Flip Reducfion/Amount due 1.422,378 2,134,817 2,106,195 1,941,005 1,637,159 1,418,965 Less:Administration Fee - (15,411) (15,027) (14,247) (13,128) (13.066) Less. SUTCFAdvance (11933,864) (1,970,114) (2,137,147) (2,171,150) (1,976,003) (1,421:331) Net Difference (511,486) X49 292` , ?9 ( 44 393) (35T 973} � Net Remittance•Cash Payment FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 Reconciliation of Prior Year (511,486) 149 292. 4x73 (244,393) (35i 973) Total SUTCFAdvance 1,933,864 1,970.114 2,137,147 2,1717150 1,976,003 1,421,831 Net Remittance 1,933,864 1,458,628 2,286,439 2,125,171 1,731,610 1,069,858 Reconciliation -From FY 10-11 Triple Flip-True Up FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 Triple Flip Reduction/Amount due 1,426,956 1,666,240 1,845,056 1,929,941 - Less:Administration Fee (14;3013) (16,060) (17:854) (19,491) - Less:SUTCFAdvance (1,467,425) (1,459,937) (1,650,221) (1,911565) (1,957,861) - Net Difference (54,771) ? T1r� x' , $ _ 115}, 1,957,861 Net Remittance-Cash Payment FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 Reconciliation of Prior Year (54,771) 90,194; 1 11 Total SUTCFAdvance 1,467,425 1,459,987 1,650,221 1,911,565 1,957,861 - Net Remittance 1,451,493 1,405,216 1,840,415 2,088,545 1,966,746 Grand Total Thru FY 13-14 Triple Flip Reduction: 17,528,710 Administration Fee: (138,587) Subtotal: 17,390,123 Net Remittance: 17,390,923 Difference: 0 CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 05/20/201510:30em HdL • 909.861.4335 • www.hdlcompanies.com 57 page 1of1 w1� r Ui �' f< fs j31�fTas 3 - rF 3 Ell Ln 0 one LM CL 1�. fi oir t t N S I HdL" COMPAN IE 2014-15 2015-16 Lang term, low interest financing and increased job opportunities are reinforcing expectations of continued gains in this segment through 2016-17. Lower fuel prices have buyers shifting from fuel efficient economy models to pick-ups, SUVs and more powerful drivetrains. Sales are projected to level off after 2017 as the economy moves from recovery to stability,interest rates rise and extended financing(now averaging 66 months)place buyers in a negative position at trade-in time. �.^ %ter -- ^•�.:. a,: > .,,„„, -v,� *,`c;, y ;� ." :^ - x" �UI ding/Con"At'6�to Home improvement spending continues to do well and building permit applications for distribution warehousing, hotels, apartments, office and mixed use projects are on the rise. Single family home sales are leveling off despite low interest rates. Trophy corporate headquarter and stadium/entertainment projects along with stepped up water reclamation work will make the gains more region specific than statewide, Congressional approval of the President's billion dollar infrastructure spending proposal for California is still uncertain. Gains in this sector will be regionally uneven with technology and life science related industries boosting revenues in the San Francisco Bay area and portions ofOrangeand San Diego Counties. Orders for transportation equipment are on the rise while the prolonged.drought is reducing sales of farm/harvesting equipment. Equipment purchases related to renewable energy projects that meet California's greenhouse-gas emission goals will produce onetime use tax gains in parts of the San Joaquin Valley and Southern California deserts. Economic slowdowns in Europe and Asia should keep exporter investment relatively modest particularly where related to agricultural products and raw materials. ' i�,.'"`^*a"v,,,-,,,}�}` c"�w {y �""�^.. ,^ w�.�;'^'-�. r"� �;"`a.�"'� � _ �^�.•r�� r"��. "�£"` -t�`*`,tea-,� "'� �' Increased competition from big box retailers,introduction of new grocery chains and a growing push toward online purchases and home delivery of groceries make this a constantly evolving segment. Volatile gasoline prices partially skew comparisons because some grocery chains combine fuel sales with their sales tax returns. RM Refinery shut downs, labor strife and new cap and trade requirements generated price increases during the first quarter,however prices remained Well below the prior year because of e;=::ess supply and lower costs of crude oil. U.S. ail inventories:are reaching storage capacity and the glut may produc.': :3nother temporary drop in prices which will rebound quickly if producers slow their output to compensate while th excess is.sold off. IM .,.-.-:=:>»�i,=...,....,..:<�;,, Shifting consumer priorities.Joward non-taxable services inclu6 ;g digital downloads and cell phone/internet connect€ons coupled with increased price competition have low( ::d tax gains from this segment, Further, online shopping continues to shift distribution of the local sales tax E: he countywide allocation pools as many online purchases are shipped from out-of-state. During the latest hoii quarter,tax receipts from brick and mortar stores rose 2.8%over the previous year while general consumer good, :s allocated via the pools increased 22.2©/0. ga ti Mr , The number of meals consumed in restaurants through�.:, the state continues to rise with tax receipts from this segment posting gains in excess of S%for seven consect, ve guar{ers, New restaurant concepts,the state's booming travel and tourism industry and extra pocket change fro r:fuel savings are expected to produce further increases. MUMM The acceleration in online shopping for merchar .ase shipped from out-of-state, increased private party vehicle transactions registered at the DMV, more on-site ,stallation sales and increased long term equipment leasing make pool allocations the largest component of safes :d use tax gains for many jurisdictions. AWaim„ 3-,.=oT� -^�•-., _ ��., ,. -`a'- - , C E Proposition 172 projections vary from sta4«wide Bradley-Burns calculations due to the State's utilization of differing collection periods in its allocation to counties. An increase of 5.1%is projected for Fiscal Year 2014-15 which includes the onetime reimbursement for previous shortfalls that HdL identified in the state's distribution formulas. A statewide gain of 2.9%is projected for Fiscal Year 2015-16. HdL Companies o/wvjhdlcornpanies.com 59 r BEACON ECONOMICS 2014-15 2015-16 U.S.real GDP ended 2014 on a strong note,with revised estimates from the Bureau of Economic Analysis showing a 2.2%expansion in the fourth quarter,on top of the S.Oa/o gain experienced in the previous quarter.Growth was broad based,with consumers,nonresidential construction and residential investments all contributing to the increase.Real GDP growth is expected to remain above 3%through the end of fiscal 2015-16. The U.S. unemployment rate continues to improve; dropping to 5.5% in February 2015. The current rate of unemployment now more closely resembles"normal",so further declines are expected to be gradual. Another indicator of the improvements in the labor market:fewer workers consider themselves to be underemployed when compared to workers a year ago. The proportion of the labor force that is unemployed or discouraged(not happy with their current job)was only 6.0°/a in February 2015,1.7 percentage points lower than it was a year ago. Job growth in California continued to improve in 2014 and recently revised estimates provided by the Employment Development Department indicate that previous job counts had been severely underestimated.The San Francisco Bay led the state in job.expansion,.but growth was not limited to powerhouse regions of high-tech.The inland Empire and parts of the Centralllalley have all hit.their stride lately.Job growth is visible in both lower-skill,lower-wage industries and in higher-skill,higher-wage industries.We project that nonfarm payrolls will grow by 2.7%this fiscal year and by up to 2.0% in 2015-16. -a*"= ..r=w, �,:»-�..,.�. 'yew �, n,i:� 3 --.,'"�-'W a-ems:,- �,`�". _ �^�z.-u•�--� Y" �.n.. ' v California's unemployment rate continues to fall,reaching 6:9%in January 2015,That is down 1.2 percentage points from sametime.last year,though a large portion of the improvement came in the most recent month which is subject to revision`:Still,thelaborfotce continues its upward trajectory with more residents looking for work and an even larger number of-previously unemployed and discouraged workers finding jobs.Beacon Economics expects the unemploy- merit rate to continue its downward trend and by the end of our 5 year forecast approach its long run average of 5.5%. 'n°`umFzmV wA"+zRAi-rs^ California's population grew by 0.9%between July 2013 and July 201.4.Importantly,this new data shows that California experienced far less out-migration of residents in 20.14.than it had in recent years. As California's job growth has outpaced the nation,out-migration declined from a high of 111,000 in 2013 to under 59,000 in 2014.And, 151,000 immigrants carne to.California in.2014 demonstrating.the desirabilityofthe:state to residents from overseas. MOO ._r; m O Arobust two year rebound in California hame:prices have recently started to decelerate.Traditional sales have been dominating-the market,which means that price appreciation is expected to grow in line with income and population growth in.2014-15 and 201.5-16.However,supply constraints in some parts of the state will place upward pressure on home prices. , In 2014,. home sales reached an 8-year low despite declining.FIC0 scores for 30-year fixed-rate loans,and interest rates remaining in very,affordable territory. DataQuick reports than in February 2015, short-sales accounted for 6.7% of transactions while foreclosures accounted for 6.811/b,compared to 9.0%and 8.0%the previous year.Beacon Economics expects.home..sales to pick up in the years ahead.Unfortunately,the state still has an under-supply of housing relative to the population we've added over the past two decades.This will keep prices high and thwart home ownership opportunities for prospective buyers in the low and middle income strata. Beacon Economics ww ,BeAgn con,com HdLI* COMPANIES HdL Companies 1340 Valley Vista Drive,Suite 200 Diamond Bar,California 91765 Telephone:909.861.4335 888.861.0220 Fax:909.861.7726 California's allocation data trails actual sales activity by three to six months. HdL compensates for the lack of current information by reviewing the latest reports,statistics and perspectives from fifty or f moreeconon-gists,analysts and trade associations toreach aconsensus on probable trends for coming quarters.The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client's specific " - ., demographics,tax base and regional trends. ' "Good informatlon leads to good eci � " At BEACONECONOMICS SOUTHERN CALIFORNIA OFFICE 5777 West Century Boulevard,Suite 895 Los Angeles,California 90045 Telephone:310.571.3399 Fax:424.646.4660 E-Fax:888.821.4647 Beacon Economics,LLC has proven to be one of the most thorough and accurate,economic research/analytical forecasters in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdUs quarterdy consensus updates. The collaboration and sharing of informatiion between Beacon Economics and HdL helps both companies enhance the accuracy ofthe workthat they perform for their respective clients. 61 HdLr C!TY OF GOT'HAM com PAN I ESS TOP GEOS - 13 QUARTER HISTORY Geo Area Names Sales Tax by Geographic areas Agua Mansa �,,.. .:. �� . �� ., r��._ �� _"� $1,000K Count:91 Foothill Corridor Count:248 �._ ..rv..., M_.. ... . _� $800K Airport Area $_600K Baseline Corridor Count: 70 .�,�..�.. ,..�_, Gateway $ 400K Wal Mart center a. Count:? �.. . Downtown Count:84 -� $OK 4Q IQ 2Q 3Q 4Q IQ 2Q 3Q 4Q IQ 2Q 3Q 4Q 11 12 12 12 12 13 13 13 13 14 14 14 14 'Periods Shown Reflect the Period to V Mich the Sales Occurred-Point of Sale CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 62 1612012096 1037 am HdL • 409.861.4335 • www.hdicompanies.com HdLT'rs'- C;Thr' OF GuTHAM C 0-M,_ _A,. .r e s FOOTHILL CORRIDOR (0040) ADJUSTED a t oa ECONOMiC:DATA ALLOCATIONS BY BUSINESS TYPE-IN BUSINESS TYPE&ADDRESS ORDER Quarters shown reflect the period in which the safes occurred-Point of Sale FY 2013-14 FY 2014-15 Fiscal Firm Name Business Address Account Number 4Q 1Q 20 3Q 4Q YTD Total woI s� I? L Kims Fashions 425 E Foothllf Blvd#D SR EH 097608260 Magic Embroidery 463E Foothill Blvd#105 SR EH 099108810 Ja Sung Socks&Lingerie 463 E Foothill Blvd#201 SR EH 102462438 Maria Guadafupe Hernandez 501 W Foothill Blvd SR EH 101301865 Businesses For Type 01=4 Subtotals For Type 01 2 iE[' AE''AlEL Johns bens Wear 463 E Foothill Blvd Ste 509 SR EH 100714120 x Businesses For Type 02=1 Subtotals For Type 02 t� fiLY AP'A Lg Sports 2 200 W Foothill Blvd SR EH 097890603 x Jh Socks 200 W Foothill Blvd#B-1 SR EH 097984198 Paloma Blanca Fashion Outlet 380 W Foothill Blvd Ste B SR EH 102484791 x Sunshine Hosiery 463 E Foothill Blvd SR EH 100315903 lbarras Kids Wear 463 E Foothill Blvd SR EH 100842581 Botas Leon 463 E Foothill Blvd#213 SR EH 097726631 Shefff Accessories 463 E Foothill Blvd#701 SR EH 101647137 Jenny Fashion 463 E Foothill Blvd Ste 401 SR EH 100103653 Pro T Shirts Outlet 564 W Foothill Blvd SR EH 100992636 Rc Cutz 710 E Foothill Blvd SR EH. 102418690 Clara Malagon Perrusquia 937 W Foothill Blvd SR EH 102653864 Citi Trends 1346 Vel Foothill Blvd SRY OH 101252758 Saba Zahoor 1374 W Foothill Blvd SR EH 102301644 x Businesses For Type 03=13 Subtotals For Type 03 WSS 104 W Foothill Blvd SRY AS 018699404 Lee Shoes 200 W Foothill Blvd SRY EH 100662475 Genesis Shoes 463 E Foothill Blvd Spc 403 SRY EH 100435409 Kims Shoes 463 E Foothill Blvd Ste 203 SR EH 100938051 Payless Shoes 681 E Foothifl Blvd SRZ OH 030631930 Businesses For Type 04=5 Subtotals For Type 04 YAR» TCS Christi M Osborne 200 E Foothill Blvd SR EH 102621233 Family Dollar 552 W Foothill Blvd SRY OH 102121590 25% 99 Cents Only 1321 W Foothill Blvd SRY AA 01161G'i 50% Dollar Tree 1332 W Foothill Blvd Ste A SRY OH 097519588 50% Businesses For Type 05=4 Subtotals For Type 05 Alfonso Orellana 200 W Foothill Blvd D-4 SRX EH 102494964 J% Square Yard 224 E Foothill Blvd SRY AC 011656348 50% Square Yard 244 E Foothill Blvd SRY AC 011656348 50% Vero`s Candyland 463 E Foothill Blvd Spc 607 SRX EH 102494964 50% Manuela Rocio Martinez 463 E Foothill Blvd Spc R504 SR EH 102521275 Businesses For Type 07=5 Subtotals For Type 07 CONFIDENTIAL INFORMATION -DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 63 M012015 0:45 am HdL • 909.861.4336 • www.hdicompanies.corn Page 1of9 CITY OF GOT'HAM FOOTHILL CORRIDOR (0040) ALLOCATIONS BY BUSINESS TYPE-IN BUSINESS TYPE&ADDRESS ORDER Quarters shown reflect the period in which the sales occurred.Point of S29e FY 2013-14 FY 2014-15 Fiscal Firm Name Business Address Account Number 4Q 10 2Q 31) 4Q YTD Total Businesses for Type 87=1 Subtotals For Type 87 9 B�1SIt�;�Sf� 1(ICBS Wells Fargo Bank 190 W Foothill Blvd SRZ BH 019662489 x Manuel Jesus Banegas 402 E Foothill Blvd Ste C SU EH 102654199 Bank Of America Nt&Sa 409 F Foolhili Blvd SRZ OH 019663229 33% Dany Studio 463 E Foothill Blvd SR EH 017675363 Jin Hee Yoo 463 E Foothill Blvd#114 SR EH 101117436 x Businesses For Type 89=5 Subtotals For Type 89 sOOn SqRVlqIBUIP IsuPL Clara Arjona 200 W Foothill Blvd SRY EH 102614202 Businesses For Type 90-1 Subtotals For Type 90 Motor Liquidations Systems 444 E Foothill Blvd Ste A-1 SR EH 100359632 Montealban Auto Center 1516 W Foothill Blvd SR EH 100938102 Businesses For Type 94=2 Subtotals For Type 94 �8 il�AY i�IDEISl'R[A� Ynp Laundromat 402 E Foothill Blvd Ste D SR EH 101610998 Businesses For Type 98=1 Subtotals For Type 98 REPORT TOTALS Total Businesses in Agency: 11,760 Total Businesses Printed: 285 Total Active Businesses Printed: 248 Total Business Types Printed: 44 Quarters shown reelect the peded in which the sees occurred-Point of She FY 2013-14 FY 2014-15 Fiscal 40 10 2Q 30 4Q YTD Total Regular Payments 331,461 343,954 361,090 363,270 352,017 1,076377 Adjustments (473) 14 (878) (29) (818) (1,725) Grand Totals 34988 343,968 360,212 363,':f 351,199 1,074,653 CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 64 05/20/2015 10:45 am HdL • 909.861.4335 • www.hdlcompanies.com Page 9of 9 ti S..Fi1cE . Lake' jF�F 1�4� SA:Ies i ax Update f"ir;1�Jal�r �T I�z �rJl.'�rr}�=r�zir,Pl;�� , err SaI i(C)rlrlber-l�rr�rii5rr�'f11 dj. Sm Es TAX BY MAJOR BUS NEss GROUP Ath,Quarter 2013 _ 201d_.. r i �• - m- a a a ;- •r i r ,.... ' ...._. ..� .. r i a m r m r aines� General Regaurants Rujlding Foal and -Auto$ Food and corsurner and and sirviee End ant! lndrastrp Gcods tlrrtel,� Construction Stations T,aaasportatioa Drugs a i r RE-VENUEMPAR a e i j Arco ASI PM Oakley -6�� FJ N-, To Chevron Oakley • m a Chevron Panasonic Avionics 2013-14 2014-15 Circle K Quinn Company r f ri a CVS Pharmacy Ralphs Point-of-Sale ,) r . '.; t.5N _6. r •i r t ' r Franks Irvine Subaru Ram pone Industries County Pool 1_:548,,,E6 .,; '20. i Suzuki Renwes Sales Ganahl Lumber Ross i ,wte Pool 4 Home Depot Target I r p Grossr,ecei is n1.0,351,465 S10,711, ryx;8 Home Goods Tesoro West Coast l Innovage Company Less Triple Flip:' Lake Forest Express Venus Textiles jWash Wafmart Mercedes Benz of Wafters Wholesale { Foothill Ranch Electric h''e irtluarserl frr.7N a rttry CC;771)x'trsr7 fr:777 JirrTc Published by HdL Companies in Spring 2645 www,hdicompanies.com 88:8.86U226HdU Holiday Quarter Up Tripe Flip Uttid Adjusted for accounting aberrations, In March 2004, California voters ap- California's local sales and use tax rev- proved Proposition 57, the California enues for the fourth quarter (October Economic Recovery Bond Act that au- -December)of 2014 were 3.6%higher thorized the issuance of$15 billion. in $4,400 than last year's holiday quarter. "Economic Recovery Bonds"to close the The gain was primarily due to Contin- state's operating budget deficit. ued strong demand for new cars and The Bradley-Burns iocal sales tax rate trucks, increased restaurant patronage was decreased from I percent to 0.75 , and a rise`:in the countywide "use tax" percent and the diverted 0.25 percent allocation pools resulting from a shift rate was pledged to repay the bonds. to`onl ne shopping where much of the Tlxe state then directed that counties Merc il andise is shipped from out of state. reimburse local governments for the 44 a4 Q4 04 General consumer goods sales allocat- 0,25 percent loss with property tax from ] is 14 ed via the pools rose 22% during this the Educational Revenue Augmentation 1 !ake Forest County California holiday quarter versus an increase in tax Fund (ERA ) set up for schools and receipts from brick and mortar stores of then reimburse schools for the ERAF k . only 2.8�'/r�. loss from the State General Fund. The Robust sales for building and con- funding scheme became known as the struction materials added to the over- "Triple Flip." ©c�s ZQ% lir+s[aur�iif5 all increase which was largely offset by The governor's FY 201/4-15 state budget significant declines in revenues from currently provides for retiring the bonds petroleum related industries and set- u`. ' P as early as July 2015. If carried out as vice stations. planned, local agencies would receive their final "true-ups" of triple flip re- y ' Gasoline Supply and Demand imbursements in the first half of 2016 1 - Bulb€nq Statewide,fourth quarter's tax receipts ' and the full one cent Bradley-Burns tax u �u;asf cans. Fuel from fuel and service stations dropped '�'° 1 P reinstated in their second quarter 2016 /° 10.4% from the previous year. Prices receipts. rebounded in the first quarter of 2015. due to refinery shutdowns and labor strife but remained well below the pri- ` or year due to a worldwide supply glut "art Ihnrrsands i s Forest County HdL State and weals demand. Business Type Q4 Change Change Change Spending cuts by oil producers and a Casual Dining .9 7.6°i° 7.4% 6.3% Contractors i3.1 10.9% 9.3% 6,9% sharp decline in the number of rigs drill- E nt ° �ry Stores CpNFIt7NTIA.t 0,9!° 0., /a ing for crude in the U.S. could reduce ciecfrieal�C(l'[;E'!f 3,7°° -�,6°Ja 23.3%output and place upward pressure on Electronics/Appliance Stares 26.6 -92.0% 4.8% 1.3% prices in the second half of 2015. How- _ Q tOE t tAL- i9.Q°I° 4.7% ever, improved fuel efficiency and de- cery ores?'ip 133.7 0 7% 4.9% 3.5% urographic changes continue to reduce Gro demand for gasoline,with consumption Light Industrai,I rvr+.ers 86.0 -E,A% 44°/° _U% at the lowest it has been in 30 years. LurnberiB�i!riv;u 1•,4ateria=s -CONFIDENTihL- 5.8% -0.7% ! New gator vni-,icie Desfers GGNHOENTIAL- $.4% 7.8% From 2008 i lif through 2014 Californians ° g Q�ceSu��r=ieslrurniture i49.3 65.7/0 -4�,1% 9,4% purchased just over 10 million new ^70.4 19. % 1.6°I 7.4% C�uick-Service r��tarirar:s i ° vehicles, with mileage ratings almost Servic=Stations 314.5 -I3A% -16.2% -10.6% I 22% higher than those they replaced. Specialty Stores 13Q.1 1,2°!n 5,8°In 5.5°I° Also,usage has further declined as baby JvarehselFarm;Cons,.E499f4.0!quip. - CONFOENPAL- boomers age into retirement and mil- lennials increasingly favor public trans- Total All Accounts 53,259.4 4A% 1.7% 3.811° portation and car services that make County&State Pool Allocation $426.3 115°/° 7.7% 41% owning a vehicle less necessary. � Gross Receipts $3;684.3 5.1% 2.3% 95% .. -. g � San uiemente �4Ot °° da. te FSales T ax U ;erRe, e i0, I111A S ,rr&'r� r20, �J SALES TAX BY MAJOR BUSINESS GROUT' - ANION -10,3rldQuatrer2014....__... _- 6 N ce f ti o �� prat rata gran Fmel.,xnd a €n'.;<.. Ood BIII[dini3Autos ' C®rsnr er and .,PjICa amand and and Goods dote s - r s Fndr.;4 Drugs Cogstruction T rar spWtaVon - %M�W "' � f � �.v� C e„ 1. .: A. f'.u. ( Albertsons San Ciemenie Arco r_ Chevron San Oemente Shc' ' Cjrc:oK San Clemente 2tit -34 2�i4-15 :.ircle K176 !Valero _ ......._..._........ CVS Pharmacy SEHI Compute; 'I- � ,;71j. ,,,f); , ProO.;cis FisherTn�nc n PStater Bros Restaurant : Sun Edison Oil i Slat�s roof ' Lowes Target Nicks San Clemente Tesoro Gross Rec6pts s3AO,404 s4,014,056 Rainbow Sandals Trader,'jes Rai hs Unite Oil fess Triple Rip' _,I P Ralphs W Aif�art Rip Curl 76 Station I � -h?ainEr`st�.retr i'srrr�r�,r�rat3'u;lr?r)7�°r1�y;a�r.��ri�r,�' 1 Published b4 HdL Compar€ies in`Mntar 2015 1-id wuw w.hdt coir panias.co€n 888.861.022II ;, E:. California Overall sumer goods can also be expected . With payment aberrations removed, although accelerating online shop- local sales tax revenues rose 5.5% ping will shift much of the growth over the comparable quarter of July to the countywide allocation pools through September 2013. rather than brick auto dealershipsnd ortarstores.are 'Me largest gains were from the g $3,000 countywide use tax pools which also benefiting as lower fuel prices have been boosted by the rising and increased fuel efficiency have X2,{3(10 -• shift to online shopping and involve buyers choosing more costly SUVs a larger portion of goads shipped and accessories. Gains in home im- from out-of-stare. Rising sales from provement purchases are anticipated auto dealers and restaurants, high although the tax will be distributed $ tech Silicon Valley business activi- via countywide pools if the sale in- Q3 Q3 03 ties, and Southern California con- cludes onsite installation. 11 12 13 14 structiort also contributed. The major losing tax segment will be San Clemente County California Among general consumer goods, in fuel/service stations. The losses discount department stores, value will be partially offset by increased t priced apparel, home goods, pet travel/fuel consumption and by and personal care products outper- added costs associated with new kestauracyts formed other categories. green emission requirements that went into effect January 1. Even so, FUd The Impact of Falling Gas Prices substantial declines from service sta- on Sales Tax tions, truck stops, bulk and jet fuel Fuel prices plunged to a 5 year low operators and petroleum industry 24a° is to December with predictions that supplierssh should be anticipated.tod In expanded North American oil pro- the business/industry segment, tax - s4 ; duction,gains in fuel efficiency and from capital investment in new al- 59% Building coed Dru a sluggish international economy ternative energy and oil production g' t�° will sustain lower gas prices through projects is likely to slow. much of 2015. Not all of the estimated$50 to$75 8 1 a per month family savings will be *!n thousands San Clemente County HdL state spent on taxable goods.Part will be Business Type Q3`14* Change Change Change absorbed by rising casts of food and Cas€ral Dining 458.4 5,6% 3.6% 5.9% other non-taxable necessities and by Ccntractors ----CONTFIDENTIAL-W 15.9% 14.1% the ongoing shift in buying.habits Discount Dept Stores -CONFIDENTIAL- 1.9% 2.5% from purchases of taxable goods to ©rug stores -CONFIDENTIAL- -0.5% 1,0% non-taxable services,cellphone fees Fast-Casual Resta wants 33,2 95.2% 90,7°/° 12.0% and internet access. rine Dining 89.6 18.6°'0 15,8% 36.2% I Among the various economic seg- Grocery Stores 8eer,'Wine 31.3 12..9°% 3.6% 2.0% merits that make up each agency's ( Grocery Srofes Liquor 107,7 9.8% 5.6% 8.8% g drug Stares Light 9ndusfrialipr3nters 5(1,2 8.3% 1.3% 6.4% grocers,sales tax base, LumderiBuil and restaurants should benefit most. tling late sIs -CONFIL�ChTIAL- 0,2°!a 4.3°9 Extra disposable income translates Office Equipment 70.5 1621% 55.2% 1G.7°0 into more travel, dining out and Quick-service Restaurapts 90.5 8,0°x° 7.3% 8.5% impulse purchases of taxable items Service Stations 225.1 5.3% 3.9% 1.2% while shopping for food and neces- Specialty Stores 35,7 6.5% bA% 6.2% ! Sporting Goods/Bike Stares 44,8 0.31° 2.7% 0.60/0 sides. Despite intensive price competi- Total All Accounts $1,798.5 7.719 3.0% 5.5% tion, tax gains from general con- County&State Pool Allocation $211.9 20.3% 15.0°! 10.2% Gross Receipts $2,010.4 9% 4,2% 9.1% HdEr SOUTHERN CALIFORNIA C O nn P A N I s ACTUALIA©JUSTE©COMPARISON-BY COUNTY AND MAJOR INDUSTRY GROUP ACTUAL RECEIPTS ADJUSTED FOR ECONOMIC DATA 402014 402013 %Change 4Q 2014 40 2013 %Change Imperial County Autos And Transportation 632,462 631,019 0.2% 636,726 619,228 2.8% Building And Construction 274,502 392,096 -30.0% 274,473 335,584 -18.2% BusinessAn.d Industry 4,360,847 2;341.,982 86.2%. 4.;326,35. 4,532,212 45%' Food And.Drugs. 263,250 240,313 9.5% 223;138 209,892 6.3°70 Fuel And Service Stations 9752022 1,030,660 -5.4% 960,346 1,002,984 -4.3% General Consumer Goods 2,327,476 2,311,466 0.7% 2,322,966 2,299,094 1.0% Restaurants And Hotels. 474;929 447,534 6.10/0 458,285 445;831 2.8% Transfers&Unidentified -463 -457 -1.5%. 76 25 206.4% County&State Pool 901,585 821,661 9.7% 931,374 918,621 1.4% 10,209,609 8,216,272 24.3% 10,133,733 10,363,472 -2.2% Los Angeles County Autos And Transportation 56,089,989 52,249,695 7.3% 56,982,112 52,480,124 8.6% Building And Construction 22,949,484 21,579,919 6.3% 22,815,521 21,235,069 7,4% Business And Industry 54,662,552 49,182,200 11.1% 53,214,366 47,254,514 12.8% Food And Drugs 23,909,196 23,798,023 0.5% 21,183378 20.,383,950 3,9°/0 Fuel And Service Stations 34,421,855 401298,901 -14.6% 34,766,102 39,048,569 -11.0% General Consumer Goods 103,418,582 99,374,673 4.1% 102,469,777 99,523,405 30% RestauraritsAnd Hotels 53,335,101 48,74Cj1203 9.4% 51,615,914 48,141,149 7.2% Transfers&Unidentified 387;449 39,118 890.5% 25,309 517,439 -95.1% County&State Pool 48,343,213 4200,152 12.7% 48,702,040 44,498,287 9.4% 397,517,419 378,152,882 6.1% 391,774,458 373,082,505 5.0% Orange County Autos And Transportation 24,630,199 22,630,261 8.8% 24,503,558 22,673,775 8.1% Building And Construction 10,131,487 9,411,055 7.7% 10,198,014 9,311,139 9.5% Business And Industry 22,021,396 23,162,419 -4.9% 21,551,670 22,683,693 -5.0% Food And.Drugs 7,695,787 7.422,700 3.7% 6,941,938 6,618,404 4.9% Fuel And Service Stations 12,408,579 14,839,232 -16.4% 13,032,072 14,384,796 -9.4% General Consumer Goods 42.586,318 41,315,856 3.1% 42,324,399 41151,539 2.8% Restaurants And.Hotels 21,997,226 20,424,797 7.7% 21,683,441 19,923,373 8.7% Transfers&Unidentified 69,114 -7,050 "% 1,78lR 194,228 -99.1% County&State Pool 18,521,170 17,203,818 7.7% 19,022,184 17,114,083 11.1% 160,061,276 166,403,087 2.3% 169,238,984 154,055,029 3.4% Riverside County Autos And Transportation 13,074,120 11,819,253 10.6% 13,131,169 11,802,078 11.3% Building And Construction -7,713,855 7,621,772 1.2% 7,626,844 7,135,191 6.9% Business And Industry 13,889,686 10,167,700 36.61/0 10,487,329 10,289,937 1.9% Food And Drugs 4,911,157 4,963,096 -1,4% 4,462,262 4,419,489 1.0% Fuel And Service Stations 8,267,613 9,683,983 -13.7% 8,268,745 9,152,847 -9.7% General Consumer Goods 22,826,771 21,868,270 5.3% 22,642,141 21,560,399 5.0% Restaurants And Hotels 9,091,785 8,092,170 12.4% 8,772,4015 8,057,603 8.9% Transfers&Unidentified 31,638 -3,577 984.6% 3,688 13,202 -72.11/o County&State Pool 6,387,310 8,297,155 -23.0% 9,810,087 8,514,228 15.2% 85,193,936 82,229,822 4.8% 85,204,670 80,944,973 5.3% San Bernardino County Autos And Transportation 13,114,561 11.984,835 9.4% 13,420,107 11,885,845 12.9% BuildingAnd Construction 6,123,779 6,275,517 -2.4% 6,173,870 5,772.311 7.0% Business And Industry 16,462,702: 14;341,301 14.8% 15,928,594 16,4x3,021 -2.9% Food And Drugs 3,960.,685 .31987,850 -0.7% 3,669,4813,543,778 3.5% Fuel And Service Stations 10,031,900 10,698.848 -6.2a/a 10,051,982 10,395,101 -3.3% General Consumer Goods 20,970.577 i r,51, 5.3% 20,516,797 19,822,696 3,5% Restaurants And Hotels 7,711,504 6,989,871 10:3% 7,483,556 6,882,277 8.7% Transfers&Unidentified 21,417 3,736 473,3% 12,482 9,220 35.4% County&State Pool 10,078,476 8,873,579 13.6% 10,057,339 9,435,135 6.6% 80,475,601 83,062,160 6.6% 87,314,209 84,149,383 3A% San Diego County Autos And Transportation 20,/148,617 19,328,023 5.8% 20,563,187 19,208,033 7.1°/ Building And Construction 9,912,831 8,667,482 14,4% 9,877,788 8,575,049 15.2% Business And Industry 17;271,192 15,316,394 12.7% 16,493,721 15,876,543 3.91/. Food And Drugs 7;;805,245 7,852.476 2,0% 7,270,000 6,91.3,422 5.2% Fuel And Service Stations 11,212,174 13,474,817 16.8°/ 11,312,148 12,685,801 -10.8°/ General Consumer Goods 37,987,045 37.423,137 1.5% 37,832,093 37,258,734 1.5% Restaurants And Hotels 18,280,960 16,949,602 7..9% 17,864,556 16,792,069 6.4% Transfers&Unidentified . 19,759 1,261 ."% 3,416 24,156 -85.9% County&State Pool '7,825,605 16,253,243 9.7% 18,056,183 16,290,953 10.8% 140,764,428 135,068,435 4.21/. 138,273,093 133,624,760 4.2% CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 59 05119121)15 12;12 pm HdL • 909.861.4335 • www.hdicompanies.com Page 1 of 2 SOUTHERN CALIFORNIA ACTUAUADJUSTED COMPARISON-BY COUNTY AND MAJOR INDUSTRY GROUP ACTUAL RECEIPTS ADJUSTED FOR ECONOMIC DATA 4Q 2014 4Q 2013 %Change 4Q 2014 4Q 2013 °/n Change Ventura County AutosAnd Transportation 6,229,294 5,729,120 8.7% 6,220,562 5,730,933 8.5% Building And Construction 2,338,914 2,413,701 -3.1% 2,336,735 2,183,651 7.0% Business And Industry 5,524,446 5,029,657 9:8% 5,226,571 4,9$5,09'74.8% . Food And Drugs 2,120,687 2,059,5573.0% 1,959,454 1;898,128 3,4% Fuel And Service Stations 2,964,757 3,544,862 -16.4% 2,919,363 3,329,708 -12-3% General Consumer Goods 9,329,114 9,307,883 0.2% 9;294,252 9,266,664 0,3% Restaurants And Hotels 3,702,616 3,480,958' 6.4% 3,607;$47 3,429,&49 5.2% Transfers&Unidentified 9,468 -638. `*` '% 890 10,242 -93.3% County&State Pool 3,676,100 3,659,652 0.4% 3,863,449 3,616,900 6.80/0 35,896,375 . 35,224,764 1.9% 35,429,226 34,447,973 2.8°/a Southern California Totals Autos And Transportation 134,220,240 124,372,206 7.9% 135,457,421 124,400,017 8.9% Building And Construction 59,444,851 56;361,642 5.5% 59,303,246 54,547,995 8.71/o Business And Industry 134,192,821 119,543,654 12.30/c 127,228,541 122,025,017 4.3%e Food And Drugs 50,665,986 50,144,015 1.0% 45,709,651 43,984,063: 3,8% Fuel And Service Stations 80,281,898 93471,303 -14.1% 81,310,758 89,999,805 -9.7% General Consumer Goods 239,445,883 231,307,806 3.5% 237,402,346 230,882,530 2.8% Restaurants And Hotels 114,594,122 105,125,135 9.0% 111,466,104 103,671,951 7.5% Transfers&Unidentified 538,382 32,391 `"".'°1 47,650 768,512 -93,8% County&State Pools 105,733,459 97,999,260 7.9% 110,442,657 100,388,208 10.0% 919,117,64.3 878,357,411 4,6% 908,368,373 870,668,096 4.3% HdL State Totals Autos And Transportation 228,681,139 213,535,432 7.2% 230,640,647 212,994,573 8.3% BuiidingAnd Construction 112,745,987 108,544,295 3.9% 112,405,998 104,652,500 7.4% Business And Industry 248.193,430 226,840,716 8.5% 237.892,964 232,831,086 2.2% Food And Drugs 91,964,343 89,946.597' 2.2% 86.098,137 83,180,868 3.5% Fuel And Service Stations 149467,094 166,658,211 -10.3% 148,317,259 165,474,004 -10.4% General Consumer Go ods 405,787,672 393,7692490 3.1% 402,717,687 392,814,338 2.5% Restaurants And Hotels 193,223,614 177,532,529 8.8% 188,207,025 175,191,383 7.4% Transfers&Unidentified 689,921 176,221 291.5% 118,644 1,046,004 -88.7% County&State Fools 202772,397 193,629,767 4.7% 212,704,486 194,860,573 9.2% 1,633,725,596 1,572,733,251 3.9% 1,619,103,048 1,663,045,329 3.6% CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 70 05/19015 12:12 pm HdL • 909.861.4335 • www.hdicompanies.com Page 2 of 2 HdE--` CITY OF GOTHAM C 0 M F A N IE S REGIONAL RETAIL CENTERS - 13 QUARTER HISTORY Geo areas Sates Tax by Geographic areas $5,0OOK South Coast Plaza Count:374 Fashion Island OL -" -A-:-'_, —:—.:._.. —. —:_ , : .,..�.. $4,OOOK Count:37b ... .... Brea Mall $3,500K Count.230 ' u v.. _:.. . _K. .. $3,000K Shops At Mission Viejo Caunt:202 .. .�. $2,500K Westminster Mall Count: 196 $2,OQOK Irvine Spectrum Center X1 5 00 Count:212 _. . 00 �;. w __,. $500K 4Q 1Q 2Q 3Q 4Q 1Q 2Q 30 4Q 1Q 2Q 3Q 4Q 11 12 12 12 12 13 13 13 13 14 14 14 14 Periods shown reflect the period in which the sales occurred,Paint of Sale CONFIDENTIAL INFORMATION-BO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 71 05/2012015 10,48 am HdL • 909.861.4335 • www.hdicompanies.com H d CITY OF SAN JUAN CAPISTRANO > ' , s PER CAPITA SALES TAX SURPLUS/GAP COMPARISON - FISCAL YEAR 2014-15 A0JUSTO FOR'. ECONOMIC DATA Retail Category ($840) ($400 $0 $400 $800 $1,200 $1600 $2060 Discount Dept Stores BREMEN=1101101111M NNEXIMMMMEMM Fine Dining Family Apparel Paint/Glass/Wall paper ElectronlcslAppliiance Stores Hardware Stores Quick-Service Restaurants Variety Stores Drug Stores General Merchandise ArYGVNovelty Stores Specialty Stores Music Stores Florist Shops Liquor Stores Photographic Equipment Men's Apparel Stationery/Book Stores ,Jewelry Stores Grocery Stores Beer/Wine Sporting Goods0ke Stores Shoe Stores Home Furnishings Grocery Stores Liquor Women's Apparel Fast-Casual Restaurants Office Supplies/Furniture Department Stores Lumber/Building Materials Service Stations Casual Dining ($800) ($400) $0 $400 'oo $1,240 $1,600 $2,000 The above graph compares per capita sales tax generated from targeted retail r.<Aegories against countywide averages.A retail surplus suggests the community is capturing its local market for that category of goods plus attracting shoppers from outside the jurisdiction. A retail gap suggests the possibility that residents may have a greater demand for products in the specific category than is being satisfied by local businesses. The information is provided only as a starting point in identifying potential sources of sales tax loss and should not automatically be interpreted as an expansion or leveraging opportunity without more detailed analysis and assessment. CONFIDENTIAL INFORMATION- DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 72 05110015 9:13 am HdL • 909.861.4335 • www.hdicompanies.com Page 1 of 2 CITY OF SAN JUAN CAPISTRANO PER CAPITA SALES TAX SURPLUS/GAP COMPARISON - FISCAL YEAR 2014-15 Retail Category Per Cap Sales Sales Tax Typical Sales Per Approx Sq Ft to Capture(+)or Gap(-) Deviation Sq Ft by Retail Type Close Gap Discount Dept Stores $1,900 $682,010 $475 nla Fine Dining 392 140,599 800 nla Family Apparel 101 36,313 375 n1a Paint/Glass/Wallpaper 76 27,456 250 nla Electronics/Appliance Stores 51 18,191 500 n1a Hardware Stores 50` 18,043 225 nla Quick-Service Restaurants 38 13,707 500 nla Variety Stores 27 9,567 100 n1a Drug Stores 17 6,031 350 n1a General Merchandise 6 2,154 100 . rila ArtfGift/Noveity Stores 4 1,501 150 n1a Specialty Stores 0 144 175 nla Music Stores (4) (1,296) 200 1,000 Florist Shops (4) (1,508) 150 1,000 Liquor Stores (6) (2,100) Insufficient data Insufficient data Photographic Equipment (7) (2,549) Insufficient data insufficient data Men's Apparel (22) (7,772) 225 3,000 Stationery/Book Stores (29) (10,569) 200 5,000 Jewelry Stores (46) (16,546) 500 3,000 Grocery Stares Beer/Wine. (52) (18,021) 175 11,000 ` Sporting Goods/Bike Stores (73) (265354) 225 12,000 Shoe Stores (76) (27,262) 200 14,000 Home Furnishings (86) (30,738) 175 18,000 Grocery Stores Liquor (90) (32,357) 110 29,000 Women's Apparel (116) (41,522) 375 11,000 Fast-Casual Restaurants (120) (42,922) 520 8,000 Office SupptieslFurniture {105j (66,519) 225 30,000 Department Stores (416) 1149 32 175 85,000 Lumber/Building Materials (419) (150").4) 300 50,000 Service Stations. (434) (15 163) n1a nla Casual Dining (616) ('-1,158) 525 42,000 Average sales per square foot are based on HdL's overview of average statewide chain store sales. The square footage needed to close the gap is only on approximation and specfic demand will vary with regional and local market conditions and individual retailers. CONFIDENTIAL INFORMATION-DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 73 05/19/2015 9:13am HdL • 909.851.4335 • www.hdlcompanies.com Page 2of2 e e e e G N D Alk F40-1105W , r HdL supports focal governments by providing increased revenues, accurate information, expert analysis and innovative software solutions, The firm's economic development practice provides consulting, site selection assistance and business attraction services P A N I E S tailored to the needs of individual clients. • • r f i M A� 1 ► r •1 • • r . • 74 HdL�-`- RETAILERS EXPANDING IN CALIFORNIA C0 IM PANI I_ S 2015 Leasable Est.Annual Business!Name Sq F1 in 000'6 Tax in 000's Site Preferences Ex anslon Area Contact Information 99 Cents Only Stores 10-25 $15-35 1,2,3,4,13 Statewide jessea@990nly.com Active Ride Shop 4.5-6 $10-25 3,6,7, 13 Southern California )eft@strategicretalladvisorxorn Anna's Linens 7-12 $10-15 1,2,3 Statewide sieve.jackson@annaslirens.com Armstrong Garden Center 6.5 $15-25 4 Statewide Monte Enright,626.914.1091 Ashley Furniture Hornestore 30-50 $100-175 1,2,3,4,9 Statewide saroriphodgdongroup.com 4 T&T Mobility 3-3.5 $5-25 2,3,9 Southern Cailfornia cm6802@att.com 3anner Bedding 4.5 $10-15 1,2 Statewide customerservice@bannermattress.net 3ig 5 Sporting Goods 10-12 $20-50 1,2,13 Statewide jsb@bigdcorp.com 3ig Lots 30 $25-35 1,2,13 Statewide kevinday@bigiots.com Soot Barn 8-12 $15-35 1,2,4, 10 Statewide abrowNng@bootbarn.com 3rooks Brothers 2.5-7 $10-20 7,8,13 Statewide rkehm@brooksbrothers.cor 3uriington Coat Factory 50-70 $60-100 1,2,3,4,6,13 Statewide eric.corp,,ts@buriingtonstores.com :ache 2 $6-10 8,9,13 Statewide dawn.cache@gmail.com :attar's 4-5 $10-30 1,2,3,9,11 Statewide evan.graff@carters.corn :harming Charlie 6-10 $10.20 1,2,4,9 Statewide mjshanahan23@gmail.com :iti Trends 12-15 $9-13 1,2,3,13 Statewide abeise;@cittrends.com 'ostco 150 $800-1300 3,4 Statewide smca Shur@norfhwestat€antic.corn estination XL 7-10 $5-8 4,12 Statewide pschm€tz@dxlg.com oflar Tree 8-12 $10-30 1,2,4 Statewide cwaizmann@d0artreo.c0m cess Barn 7-8 $8-20 3,9,13 Statewide rsosnovy@dressbarn.com SUV Shoe Warehouse 18-30 $25-60 1,2,4,6,7,8 Statewide steveramey@dswinc.cam :han Allen 10-14 $10-15 8, 13 Los Angeles&Ventura Counties malthew@mra.la lmily Dollar 8-10 $8-18 1,2,3,4,9,10 Southern California cmoore3@farm?ydo1iar.co.m rmous Footwear 5-6 $7-30 1,2,3,6,7 Statewide hvanommeren@famousfootviear.com ishion Q 5-8 $7-12 1,13 Statewide jmanarino@cox.net ctwear Etc.I Footware Outlet 2-6 $8-12 1,2,4,12 Statewide e[le@footwearetc.com imestop 1.3-1.8 $6-12 3,9 Statewide maresummey@gamestop.com ap Inc."1 7-15 $25-50 3,5,6,7,8,9, 12 Statewide ed_kellof@gap.com itar Center 7-15 $15-60 1,2,3,4 Statewide ccanEwell@guitamenter.com rbor Freight Tools 15 $40-80 2,3,6 Statewide tfeiler@haborfraight.com bby Lobby 50-75 $40-80 3,9,13 Statewide pbarflett@edge-re.com me Depot 60-110 $200-800 3,4,9 Statewide jeff_nichois@homedepot.com Ann Fabrics&Crafts 20-25 $20-60 3,9,13 Southern California anthony.caroseilo@joann,corn Ann Fabrics&Crafts 20-25 $20-60 3,9,13 Northern California kavj,.beeg€e@joann.corn A.Bank Clothiers 4-4.5 $10-20 3,7,9,11, 13 Statewide jfoley@jos-a-bank.com tice 3.5-5 $8-20 1,3,6,7,9 Statewide rea[estate@tweenbrands.com e Spade 1-4.2 $15-40 4,7,8,9 Upscale Urban Centers contactus@katespade.com fl's 55-87 $75-175 3,4,9 Statewide kathy.avian@kohls.com -Furniture for Less 40-60 $90-180 3,4,11 Statewide ricksr@morfumlture.com to PCS 1-1.5 $6-20 1,2,3, 13 Southern California bbielatowlcz@lee associates corn v York&Company 6-8 $2-6 1,4,6,7 Statewide www.ryandcompany.com dstrom Rack 30-40 $250-400 1,2,4,6,8 Statewide deveiopment@nordstrom.com aya Fashions 2-5 $12-25 2,6,11 Statewide www.papayaclothing.com ormance Bicycle Shap 6.5 $12-25 2,3 Statewide :om.woods@coilies.com k Room Shoes aka Off Broadway 5.5-7 $18-25 1,2,3,6,7,9 Statewide kgonnermanc rackroornxom ert Wayne Footwear 2.5 $5-20 2,6,8 Statewide ,oww.roberwayne.com s Dress for Less 22-30 $75-150 1,2,3,13 Statewide gregg.mcgNiS@ros.eom 21 4.5 $8-12 3,11, 13 Statewide hcroson@rue2', om kh Shoes 3.5 $8-20 6 Statewide gaguinis@za€lcompany.com City 3.8-6 $15-25 4 Southern California bob@r[pratt.com t Chalet 42 $50-100 3,6,9 Statewide dtrausch@spodchaiet-com is Authority 30-45 $30-100 3,9 Statewide eterrnansen@w-reta4.com it 1,5-2,5 $12-45 1,2,3, 13 Southern Caffernia jradus@edge-re.com Mart 28-32 $35-60 3,9 Statewide wafdy@strategicreta€[advisor.(,,om s For Less 2.5-3 $2-5 1,3,6,7,8,9, Statewide jason@sty[esforiess.com )is 3.7-5 $12-20 1,2,4,6,7,8 Statewide launne.niey@talbots.com t 100-150 $250-700 3,4,9 Statewide kareemsfj(LNargetxom dey 15-30 $10-18 1,3,4 Statewide William Marek,760.347.7200 asvifle Home Furnishing 6-14 $6-10 4 Statewide tlittfe@drexelhe t;age,com 7-8 $5-12 3,9,13 Statewide dbeaney@tillys.com ,ompanies"2 25 35 $50-180 3,9 Statewide deborah_hoimsen@tjx.com zr Supply Co. 19--27 $30-60 1,2,4, 12 Statewide cteter@ractorsuppiy.eom Religion Apparef 1.5-3.5 $6-16 8,11 Statewide rea3estate@truereliglonbrandjeans.con eauty 10 S30-70 3 Statewide hck.franz@ultainc com n Wireless 1-4 $12-50 2,3,9 Statewide garymorris@morrscre.com 6rt Supercenter 170-210 $350-900 3,4,9 Statewide colbyEanner@waf-mart.com vlarine 8-10 $12-50 1,2 Southern California pbar!lett@edge-re,com 75 `1-Gap Inc.includes Gap,Old Navy and Banana Republic *2-TJX Companies includes TJ Maxx,Marshalis and Home Goods Leasable Est.Annual 3usiness Name Sa Ft in 000's Tax in$000's Site Preferences Ex ansion Area Contact Information 3J's Restaurants 8.5-10 $40-75 4, 13 Statewide giynds@bjsrestaurents,com 31aze Pizza 2.2-3 $10-15 1,2,5,12 Southern California ed@blazeplzza.com 3loo nin'Brands"1 6-8 $25-50 3,4,5,9 Statewide markseferian@bioominbrands.co n 3luewater Grill 7-7.5 $40-50 3,4,5,9 Southern California wa[ly@slategioretaiiadvisors.com 3uffalo Wild Wings 65-7.5 $30-70 3,5,6,9, 12 Statewide jwong@buffa€ow€!dwing,com Surger Lounge 1-5.5 $7-12 1,2,4,5,8,9, 10 Southern California realstate@burgerounge.com :ale Rio3-3-5 $13-20 3,5,9,12 Statewide kyle@mainandmaininc.cam :alifernia Pizza Kitchen 5-5.5 $25 35 7,9, 12 Statewide jbeus@cak.com :art's Jr. 2.5-3 $10-20 3,4,5, 12 Statewide iakers@ckr.com :hipotle 2-2.4 $15-30 4,12 Orange County,San Diego&Inland Empire gvujnov@chipotle.com '.hipotle 2-2.4 $15-30 4,12 Los Angeles&Central Valley gdlbias@chipolle.com :orner Bakery Caf$ 2.7-3.5 $10-18 1,2,3,8 Statewide rick.carsorr@comerbakerycafe.com ,arden Restaurants`2 6-8 $30-60 4,9, 12 Statewide michae€@mdubin.corn -enny's 4-5 $15-25 1,2,4,5,8,13 Statewide Igrace@dennys.com unkin Doughnuts 1.2-2.6 $1-1:8 2,4,5,9,12 Southern California jeson.askinosia@dunkinbands.com I Polio Loco 2.2-3 $14-20 3,4,5 Statewfde echang@elpol!oloco.com at Burger 1,5-2 $6-9 1,12 Southem Cal'!fornia real.estate@fatburger.com rehouse Subs 1,5-2 $5-10 1,2,3,5,12 Statewlde jnamey@f!rehousesubs.com ve Guys Burgers 2-3 $8-12 1,2,4, 10,12 Statewide rluclo@fiveguys.com abit Burger Grill 2-2.4 $12-20 5,12 Southern California cscnlueter@haatt.com n Out 3-3.5 $25-60 3,4,5 Statewide mbailey@innout.com !rsey Mike's 1.2-1.8 $4-6 1,2,3,5,12 Statewide npebbles@jerseymikes.ccm nmy John's 1-2 $4-6 1,2,3,5,12 Southern California jgordon@espleen.com ng's Fish House 8.5-10 $25-50 3,4,5,8,11 Southern California adminisirator@kingsseafood.com :Donald's 2.5-4 $12-30 1,2,4 Southern California leri.nunez@mcd.com )rm's Restaurant 6 $36-55 4 Southern California psingerman@normsrestauranis.eom !nda Express 1.7-2 $9-12 1,3,4, 12 Southern California dsn.samulsk!@cbre.com nera Bread 4-4.6 $12-25 4,5, 12,13 Southern California robenAluger@panerebread.com pet's Coffee&Tea 1.5 $1-1.5 1,2,4,8,9 Northern California tlogarn@retailwestinc,com ,oiogy 2.6-3 $15-20 1,2,5, 12 Statewide c aio@pieology.com 'za Studio 1,5-2.5 $10-15 1,2,5,12 Statewide bgarde!a@pizzastuc`!c.com d Robin 6-6.5 $20-40 3,4,5,9 Riverside and San Bernardino Counties barc!ay.harty@cbre.com iashburger 1.6-2.2 $6-12 3,9,12 Statewide mfernandez@smashburger.com nic Drive-In 1.5-1.8 $6-10 4,5 Southern Califomia marian@sonicdrivein.com Irbucks Coffee 1,7-2 $1-6 1,2,3,4,5,8,9,12 Southern California jgordor,@esp!een.com 3,1.Friday's 6.6 $35-50 3,9 Statewide jlagowitz@studley.com o Bel! 2.5-3 $12-20 1,2,3,4,9 Statewide gary.brc)ckmari@yum.com <as Roadhouse 7-7.5 $50-80 3,4,5 Southern California trryce.myers@legendaryrestaurants.net Cheesecake Factory 7.2-11 $70-115 4,6,7 Statewide Robert Schnur,310.282.5300 Counter 1.7-3 $10-20 3,9 L.A.&Orange Counties rand y@thecouraerburger.com be Grill 1-5-2 $4-9 1,12 L.A.,Orange&Ventura Cour' s madamczk@kennedywiEson.com ndy's 2.8-3 $12-30 1,2,4,5 Statewide kathy.sefedan@wendys.ecm es: `1-Bloomin'Brands include Cutback Steakhouse,Carrabba's,Flemings&Rays *2-Darden Restaurants include Olive Garden,Longhorn Steakhouse,Bahama Breeze and Yard House USA 15-18 $20-25 1,2,4 Southern California jgordon@epstean.com Mo! 10 $40-1,00 1,2,3 Statewide endomg@bevmo.corr, to!Farms 30 $20-70 4,9 Statewide cerporaleinto@bfttolfarms.com i 13 $15-70 1,2,4,12 Statewide rick.dube@cvscaremark.com ery Outlet 15-20 $15-35 1,2,4 San Diego mdrasin@cfgo.com -Aid 14.5 $15-50 1,2,4,12 Southem Cal''.rnia tiverastegui@rifeald.com !rt&Final Extra 23-32 $20-65 1,2;4 Southern C ;ifornia hellyjensen@smartandflnal.com ;ut's Farmers Market 23-28 $16-50 4,9 5,=,'s.:idr elizabethhoxworth@sprouts.com er Joes 12-14 $35-60 1,2,4, 10 Sidtawi,'s deighanone@aol.com 3reens 14.5 $20-60 1,2,4,12 South -n California wa4er.caihey@wa(greens.com le Foods Market 30.5 $50-150 4 Stat,--vide nerah.smith@wholefo:.ds.com ,o Foods 85-100 $75-125 3,4,11 St,,iawide greg.goinsa7 vincofoods.cam ANEW, ven 30-50 $60-130 4,5 Southern Callforri;s teresa.opsahl@7-11.com AM/PM 30-50 $75-180 4,5 Southern California michae!.e.glassman@tsocorp.com ?one,fnc. 6.5-8 $15-25 1,2,4,5 Statewide tahirsikandar@autozone.cam Sunt Tire Centers 4.5 $6-10 1,2,3,4 Statewide jsilhasek@discounitire.com illy Automotive 7-8 $8.15 2,4,5 Statewide jdrezee@oreil!yauto.com 30ys 4-6.5 $10-25 4 Statewide nicholas_puccio@pepboys.com nmunity Strip 4 Freestanding 7 Enclosed Super Regional Mall 10 Mixed Use 13 Regional Strip Mall 76 ghborhood Strip 5 Pad/Out Parcel 8 Downtown I CBC) 11 Outlet Center ver Center 6 Enclosed Regional Mall 9 Lifestyle Center 12 Endcaps HdERETAIL STORE TAXABLE SALES ESTIMATES COMPANIES 2015 HdL used a mix of similar stores to estimate sales per gross square foot for each category. Actual results will vary based on store size,location and market area characteristics. If your jurisdiction has received a site plan and prospective tenant list for anew project,contact us for a revenue estimate. Typical Sq Ft in Est.Annual Store Type 000$ Example Stores Tax in 000s Annual SaleslSq Ft Accessories a 1.1-3.3 Claires,Fossil,Styles For Less,Francescas Collection $4.5-9 $275-440 Small Format 1.5-3 Kate Spade,White House/Black Market,Love Culture,Chico's $6-12 $415-675 Mid-Size Format 3.5-5 Aeropostaie,Bebe,Catharines,Papaya,Talbots,BCBGeneratlon $12-18 $250.595 Large Format 5.5-9 Ann Taylor,Anthropologie,Express,Kitson,New York&Co. $15-32 $260-445 Bargain Chic 7.5-20 H&M,Forever 21.Charlotte Russe.Charming Cf"arlle $30-41 $185-460 Casual 3-9.5 Casual Male,Patrick James,Tommy Bahama,Paul Jardin $6-18 $155-335 Business Attire 4-6 Men's Wearhouse,Jos A Bank,Brooks Brothers $8-65 $265-535 Children 3.1-5.25 Babies'R'Us,Chi€drens Place,Carters,Gymboree $15-28 $340-575 Casual 3.5-25 American Eagle,Gap,Old Navy,Hollister,Abercrombie&Fitch,Aeropostafe $22-50 $205-560 Discount 30-80 Ross,T.J.Maxx,Marshalls,Nordstrom Rack,Burlington Coat,Kohl's $85-160 $105-370 Small 1.5-2.1 Cole Haan,Stride Rite,Journeys,Johnston&Murphy,Clarks $7-14 $355-575 Mid-Sized 3-3.5 Payless,Footlocker,Shiekh Shoes,Skechers,Aldo $7-10.5 $200-300 Large 5-30 DSW,Warehouse Shoe Sale,Famous Footwear,Boot Barn $11-55 $185.355 Athletic 3-20 Nike,New Balance,Adidas,Reebok,Puma $17-106 $400-575 Closeout I Dollar Stores 10-30 Big Lots,99 Cents Only,Dollar Tree,Family Dollar,Pallas Paredes $12-25 $155-255 Discount Department 125-140 Target,Walmart,K-Mart $315.785 $280-995 Warehouse'Membership 140-150 Costco,Sam's Club $330-1540 $275-1045 Department 140-200 Sears,JC Penney,Di€lards,Macys $105-435 $95-255 Upscale Department 130-275 Nordstrom,Bloomingdale$,Neiman Marcus,Saks $460-715 $385-485 Jr.Market 5-15 Aldi USA,Bonfare Market,Trader Joe's,Grocery Outlet $5-55 $100-465 Specialty Market 10-30 Sprouts,New Leaf,Jimbos Naturally,Mothers Market $1155 $105»270 Chain Supermarket` 40-55 Ralphs,Albertson,Safeway,Relays,Stater Bros.,Vons $30-130 $115-155 High End Market 16.5.55 Bristol Farms,Gelsons,Pavilions,Whole Foods,Andronicos,Draegers $31-102 $130-205 Warehouse Grocery 45-60 Wince,Food 4 Less,Smart&Final,Food Maxx,Save Mart $110-335 $80-165 Ethnic Market 25-50 99 Ranch,EI Super,Mi Ranchito,Mi Pueblo,Cardenas,Superior Grocers $20-45 $80-85 Drug Stores I Pharmacy 10-19 Rite Aid,Walgreens,CVS $18-35 $110-235 Coffee House 5-1,7 Dunkin'Donuts,Starbucks,Coffee Bean&Tea Leaf,Poet's Coffee&Tea $0.7-2 $170-230 Fast Food-Burger 1.5-3 McDonalds,Five Guys Burger, tri-N-Out,Sonic Burger $10-35 $415-1035 Fast Food-Hispanic 2.0-5.5 Taco Bell,Del Taco,High Tech Burrito,King Taco,Miguel's Jr. $10-55 $310-1030 Fast Food-Asian 1-2.5 {ane Hawaiian BBOT,Rice Garden,Yoshinoya Beef Bowl,Panda Express $4-16 $290-575 Fast Casual 1.5-4.5 Pick Up Stix,Panera Bread,Chipotle,Buffalo Wild Wings,Corner Bakery $6.5-22 $665-800 Fast Casual-Pizza 1,5-3 Blaze Pizza,Pieofogy,Pizza Studio $10-25 $270-625 Diners 4.5-5.5 Dennys,IHOP,Carrows,Bob's Big Boy,Ruby's Diner $10-19 $215-425 Buffet 7.5-11 Hometown Buffet,Souplantation,Sweet Tomatoes,Golden Corral $20-40 $200-400 Casual Dining 5-8.5 Islands,Chili's,BJ's Restaurant&Brewhouse,Buca di Beppo,Mimi's Cc,e' $25-70 $475-740 Dinner House-Fine Dining 6,5-20 Flemings,P.F.Changs,McCormick&Schmicks,Kings Fish House $35-85 $425-1000 Imports 1 Home Accents 10-30 Cost Plus,HomeGoods,Bed Bath&Beyond,Kirkland$,Crate& Barj-,!, $30-95 $185-425 Home Decor!Accessories 10.40 Pottery Barn,Z Gallerie,Williams Sonoma,West Elm $31.92 $280-435 Paint 4.5-10 Sherwin Will'€ams,Vista Paint,Dunn Edwards $11-32 $235-315 Home Improve.I Bldg Supply 11 0.1 60 Home Depot,Lowes,Probuild,Stock Building Supply $40-730 $135-540 Hardware 3,5-51. Orchard Supply Hardware,Ace Hardware,True Value,D, cults Hardware $11-55 $95-435 Furniture-Bedroom 2-'M St'N Seep,Steep Number,Banner Mattress $7-75 $210.420 Furniture-General 1'�-75 Mor For Less,Bassett Furniture,Ethan Allen $19-48 $105-420 Warehouse Fumiture 135-200 Living Spaces,IKEA,Ashley,deromes $210-1370 $150-420 Smat#Electronics 1-6 Radio Shack,Gamestop $1.3-11 $i20-860 Cell Phones .5-5 Verizon Wireless,AT&T Mobility,T-Mobile,Sprin'.,Metro PCS $3.5-38 $345-1380 Volume Elect./Appliances 4-180 Best Buy,Pacific Sales,Fry's,Howard's $68.5-1146 $260-900 Bath&Body 1-10 Ulla Beauty,Sephora,Both&Body Works 3are Escentuals $8.6 65 $485-1405 Craft-Speciality Decor 15-60 Michaels,Jo-Ann Fabrics&Crafts,Hanc,ck f=abrics,Hobby Lobby $10-50 $75-225 Multi-plex Cinemas 10-20 screens Regal-Edwards,AMC,Pacific,Cinemax- $650.1,0001Screen Office Supplies 18-25 Off€coMax Staples,Office Depot $29-72 $140-240 Party Supplies 6-12 Party America,Party City $9-13 $175-275 Flet Supplies 10-25 Petsmart,Petco,Pet Club,Kahoots $21-48 $160-265 Sperling Goods 15-55 Sport Chalet,REI,Sports Authority,Dick's,Big 5 $25.135 $130-310 *May Include Gasoline Sales HdL receives expanding retailer information from a variety of sources which tend to highlight large regional or national chains while excluding small regional rotatlers. Many of these uses are also looking to expand, but their growth objectives are not as well publicized because of their small size. Therefore, HdL recommends that agencies stay in touch with local business communities to maximize expansion opportunities offered by smaller chains. 77 i • li� H C'd L' CCS M PA N I F 5 Introduction The following is a summary of the Governor's May Revision for the 2015-16 state budget and a legislative update for bills related to sales, use and property taxation. The deadline for the Legislature to pass the budget is June 15, 2015. The deadline for the Governor to sign the new budget is July 1,2015. Governor's May Revision to the FY 2015-16 State Budget The May Revision reflects a $6.7 billion in increase in General Fund (GF) revenues. That does not mean that everyone gets a claim to the new monies. It is important to remember that California's Proposition 98, passed by the voters in 1988,guarantees the first cut of all new revenues to the K-14 school system. In other words, when talking about new budget revenues,there is always the "Prop 98"side of the budget and the "non-98" side of the budget.The three largest portions of the non-98 side of the budget are: 1. Health and Human Services 2. Higher Education (UC and CSU) 3. Corrections(state's prisons) Proposition 98 requires increased GF spending by$5.5 billion for K-14 (schools and community colleges). Proposition 2 requires an additional $633 million be saved for the state's Rainy Day Fund and another$633 million to pay down debts and liabilities. The California Earned Income Tax Credit is a new proposal for the state's lowest income workers which will provide $380 million in benefits ar?nul aiiy. The Governor also announced increased funding for higher education and freezing tuition thm gh FY 2016-2017 at the UC and CSU C<atems. Funds for providing health care safety net services to currer dy undocumented immigrants who ga` Permanent Residence status under President ©bama's executive actions are also included. Local Government The May Revision includes the following substantive amendments to the proposed RDA dissolution legislation: H&Corn anies 909.861.4335 www.hdlcompanies.com 1 78 1.Findings of Completion- Findings of completion provide successor agencies with increased fiscal tools and reduced state oversight. The May Revision allows successor agencies that enter into a written payment agreement with the Department of Finance to remit unencumbered RDA cash assets to the county auditor-controller to receive a finding of completion. 2. Stranded 2011 Bond Proceeds - For successor agencies with a finding of completion, the May Revision establishes a tiered process whereby agencies may expend a portion of "stranded" bond proceeds. The unused portions are to be used to defease outstanding bonds in accordance with current law. 3. Property Tax"Override" Revenues-The May Revision spells out that any pension or State Water Project override revenues pledged to RDA debt service must be used for that purpose. However, if the override revenues were not pledged to debt service,they will be returned in their entirety to the entity that levies the override. Furthermore,if the override revenues were pledged to RDA debt service, but some of the revenues are not needed for debt service payments,the entirety of the portion not needed for debt service payments will be returned to the levying entity. 4. Highway Infrastructure Improvements - The May Revision allows highway infrastructure improvements pursuant to agreements between the former RDA and its sponsoring entity to be an enforceable obligation of the successor agency. 5. Litigation Expenses - Clarifies that a sponsoring entity can loan money to a successor agency for litigation expenses associated with challenging dissolution decisions and those loaned amounts may be repaid as an enforceable obligation if the litigation is successful. 6. Reentered Agreements - Clarifies, as a result of a final court decision, that only reentered agreements entered into after the passage of AB 1484 (2012)are unauthorized and unenforceable, unless they were for the purpose of providing administrative support activities. Other local government revenue changes include: • $5.8 million for Insufficient ERAF backfill for San Mateo, Alpine and Amador counties. B $6.9 million in annual relief for four"Negative Backfill"counties. $24 million in city debt forgiveness for California's newest cities in Riverside County and backfill from the General Fund to cover Riverside County's CaIFIRE payments. • $3.4 million in ERAF calculation forgiveness for San Benito County. e winding down city reimbursement requirements to Santa Clara County ERAF for Tax Equity Allocations. Sales and Use Tax AB 26(Jones-Sawyer)-Medical Marijuana This bill would create the Division of Medical Cannabis Regulation within the Department of Alcoholic Beverage Control and make the department responsible for medical cannabis regulation and enforcement including the creation of uniform policies for state taxation of medical cannabis. Status: Failed Deadline-2 year bill. HdL Companies 909.86!.4335 www.hdicompanies.com 2 79 AB 34(Bonita)--Medical Marijuana Regulation,Enforcement&Taxation Would establish a statewide plan to regulate medical marijuana. The bill would authorize county boards of supervisors to impose, by ordinance and voter-approval, a non-uniform, multilevel tax on cultivating, dispensing, producing, processing, preparing,storing, providing, donating, selling or distributing marijuana. Status:Re-referred to the Assembly Committee on Appropriations. AB 88(Gomez) - Exemption for Energy Efficient Nome Appliances This bill provides a sales tax exemption for energy or water efficient home appliances that are provided at no cost to low-income participants in a federal, state or ratepayer funded energy efficiency program. Status: To be heard May 18, 2015 in the Assembly Revenue and Taxation Committee Suspense File. AB 155 Dababneh —Vending Machine Sales Tax Exemption This bill would make food products sold through vending machines tax exempt including the local Bradley- Burns, and city and county transactions and use tax district allocations. It would take effect immediately as a tax levy. Status: To be heard May 18,2015 in the Assembly Revenue and Taxation Committee. AB 338(Hernandez)—Los Angeles MTA Transactions and Use Tax Increase This bill authorizes the Los Angeles County Metropolitan Transportation Authority (MTA), subject to voter- approval,to impose an additional transactions and use tax (TUT) at a rate of 0.5%for a period not to exceed 30 years. Status: In Senate. Read first time. To Assembly Committee on Rules for Assignment. AB 405(Brough) -Board of Equalization (BOE) Existing Sales and Use Tax Law provides that interest is paid by taxpayers on underpayments of various taxes at a modified adjusted rate per annum. This bill would revise the definition of"modified adjusted rate per annum"to require that interest on overpayments be the same as interest charged for underpayments. Status:Referred to the Assembly Appropriations Committee Suspense File. AB 464(Mullin)-Maximum Combined Tax Rate The Revenue and Taxation Code authorizes cities and counties to levy a transaction and use tax for general purposes so long as the combined rates of all such taxes in a given jurisdiction does not exceed 2%. This bill would increase the maximum rate to 3%. The proponents of this bill state that in many communities throughout the state, local agencies are considering options for financing improvements in infrastructure, parks, public safety, and other local programs. However, many agencies are precluded from considering the option of an additional transactions and use tax due to the 2 percent cap on the combined rate. The opponents state that California already has the highest sales and use tax rate in the nation, with a combined minimum state and local sales tax rate of 7.5 percent. Status: In Senate. Read first time. To Assembly Committee on Rules for Assignment. HdLCompanies 909.861.4335 a ww-hdicoa panies,com 3 80 AB 717(Gonzalez)—Diapers This legislation exempts diapers from sales and use tax. Bill does not provide an appropriation to reimburse local governments for the corresponding revenue loss. The State Board of Equalization has estimated state and local losses due to AB 71.7 would total $46.7 million annually. Status: To be heard May 18, 2015 in the Assembly Revenue and Taxation Committee Suspense File. AB 82.1 (Gipson)- Medical Marijuana This bill would make medical marijuana, for consumption by a terminally-ill patient,exempt from a sales and use tax. Bill does not include an appropriation or reimbursement to local agencies for corresponding revenue losses. Status:Introduced-The author is not moving this bill. AB 945(Ting) -Low-Emission Vehicles This bill would exempt low-emission vehicles from sales or use tax until January 2020. This bill includes provisions for reimbursement of revenue losses to local governments. Status: To be heard May 18, 2015 in the Assembly Revenue and Taxation Committee. AS 1021 (Steinorth)—Tax on Smartphones This bill specifies that the "grass receipts"and "sales price" from the retail sales of a smartphone are limited to the amount charged for the smartphone when it is sold in a bundled transaction. The current system applies the sales tax to the listed retail price of the phone,even if a customer actually pays a highly discounted price, The BOE estimates that revenues to state and local agencies would be reduced by $370 million annually. Status:Referred to Assembly Revenue and Taxation Committee. AB 1090(O'Donnell)-Bringing Off Shore Manufacturing Jobs Back to California This bill would exempt from sales and use tax, equipment and supplies purchased primarily for use in any stage of reshoring of jobs including manufacturing, research and construction. This exemption would not apply to local sales and use taxes. The specific definition of"reshoring" is still being finalized within the bill language. Status: Hearing cancelled at the request of the author. AB 1269 LDababnehl-Alternative Energy Projects This act would extend from July 1, 20316 to January 1, 2021 the authorization to grant financial assistance in the form of a sales and use tax exclusion to projects that promote Californta-based manufacturing,California- based jobs and the reduction of greenhouse gases, pollution, and energy consumption up to a $100 million annual aggregate. The current provision has resulted in substantial revenue losses to local governments. This extension would continue to exclude an appropriation or reimbursement for such losses. Status:introduced. HdL Companies 909,86 .4335 www.hdicompanies.com 4 81 AB 1280(Maienschein)-Small Business This bill would exempt merchandise sold by or purchased from a small business on the Saturday following Thanksgiving from sales and use tax. This legislation defines a "small business" as a retailer that remitted less than$200,000 in tax far the previous four calendar quarters or one that has remitted less than an average of$50,000 in tax for each calendar quarter of operation if the business was in operation for fewer than four calendar quarters. This exemption would not apply to local sales and use taxes. Status: To be heard May 18, 2015 in the Assembly Revenue and Taxation Committee Suspense File. ACA 4(Frazier) -Transportation Projects This bill reduces the vote threshold for the approval of special taxes to fund local transportation projects from two-thirds to a 55 percent majority. Status: Re-referred to Revenue and Taxation Committee. SB 8(Hertzberg)--Upward Mobility Act This is an "intent" bill with more specific language to be added as debate and discussion progresses. It proposes broadening the tax base by imposing sales tax on services other than health,education and small businesses grossing less than $100,000. It further proposes reducing income tax rates and establishing corporate tax incentives for new investment and higher minimum wages. This bill is based on previous recommendations from the "Think Long Committee for California" and is expected to be a two year bill. Status: Referred to the Senate Governance and Finance Committee. SIB 533 (Pan)-Sales and Use Tax Agreements Effective January 2016, this bill prohibits sales tax rebates for any purpose if the agreement results in a reduction in the amount of Bradley-Burns tax revenues that in the absence of the agreement would be received by another local agency where the retailer has continued to maintain a physical presence. This also requires that prior to approval of the agreement,a 60 day notice is provided to the prospective losing agency and a 30 day public posting of the proposed agreement on the agency's internet website. Status: On the Senate Floor. SB 640 Beall) -Sales Tax Refunds This legislation authorizes a retailer to make an irrevocable election to assign a refund of sales and use tax payments that exceed the amount due under the law if the amount due to a single customer is $50,000 or more. The bill also allows the State Board of Equalization to make the refund directly to the customer. Status: May 4, 2015 hearing. Placed on the Senate Appropriations suspense file. SB 680(Wieckowski)-Motor Vehicles This bill exempts from sales tax qualified new motor vehicles (and accessories) that are purchased in California for permanent use outside the state. This legislation requir{:;the purchaser to provide the retailer with an exemption certificate that ensures that the vehicle would be emoved for permanent use outside the state within 30 days of purchase. This bill does not provide an :Appropriation or reimbursement to local agencies for any corresponding revenue loss. Status:In the Senate Appropriations Committee. H&Ce panier, 909.9 1.433 x www.hd'companics.corn 5 82 SB 767(de Leo -Transactions and Use Tax Increase This proposed bill authorizes the Los Angeles County Metropolitan Transportation Authority(MA)to impose a transactions and use tax at a rate of 0.5 percent, in addition to the MTA's existing 0.5 percent tax, subject to the adoption of an expenditure plan and voter approval. The bill also exempts this transactions and use tax from the current 2 percent combined rate limit on transactions and use taxes imposed in any county. Status: Bead second time. Ordered to third reading. Property Tax and Successor Agencies AB 2(Aleio)—Community Revitalization Authority This is an "intent" bill to reintroduce redevelopment by enacting legislation that would authorize the formation of Community Revitalization Authorities to perform redevelopment activities within defined revitalization and investment areas including infrastructure, affordable housing and economic revitalization. The bill would further provide for the financing of these activities by the issuance of bonds serviced by tax increment revenues. Status: in Senate. Read first time. To Assembly Committee on Rules for Assignment. AB 204(O'Donnell) -Assembly Local Government Existing law requires that successor agency oversight boards established to oversee the dissolution of redevelopment agencies be consolidated into a single countywide oversight board by July 1, 2016. This bill would allow the 71 oversight boards within Los Angeles County to continue to independently operate past the July 1, 2016 consolidation date and until each respective successor agency requests dissolution of its oversight board and transfer of fiduciary duties to the countywide board. Status: Read first time. To Committee on Rules for assignment. AB 313 (Atkins)—Enhanced Infrastructure Financing Districts Existing law authorizes the legislative body of a city ora county, or city and county to establish an enhanced infrastructure financing district. Existing law also requires the legislative body to adopt a resolution of intention to establish the proposed district and prepare and adopt an infrastructure financing plan. This bill would require the legislative body to transmit its resolution of intention to the public financing authority and causes the public financing authority instead of the legislative body to prepare and adopt the infrastructure financing plan and adopt the district. If the legislative body subsequently approves a resolution to abandon proceedings to adopt the infrastructure financing plan, the public financing authority ceases to exist. Status: Read second time. Ordered to consent calendar. AB 476(Chan--)—Increases the Homeowners Exemption and Renter's Credit Existing property tax law provides a homeowner's exemption of$7,000 or$70.00 per principal residence per year. This bill would increase that exemption to $25,000 or$250 per principal residence. It also provides a comparable increase in benefits to qualified renters. This bill would take effect immediately and require the state to reimburse local governments for the corresponding revenue loss. Status: To be heard May 18, 2015 in the Assembly Revenue and Taxation Committee Suspense File. &Co panies 909.861.433.E www.hdlcompanies.com 6 83 AB 1157(Kazarian)—Commercial Air Carrier Assessment The California Constitution requires property subject to ad valorem property taxation to be assessed in the county in which it is situated. The formula used to determine the fair value market value of commercial carrier aircraft sunsets in 2015-16. Originally this bill would have extended the 2015-16 termination date to 2021-22, however it was amended on May 4, 2015 to extend the 2015--16 termination date to 2016-17. Status: Passed from Assembly Appropriations Committee. AB 1.335(Atkins)—Affordable Housing-Real Estate Transfer Tax This bill would enact the Building Homes and Jobs Act and imposes a $75 tax for most recorded real estate documents to fund affordable housing, home ownership opportunities and other housing-related programs as specified. The bill contains an urgency clause. This would require a two-thirds supermajority vote. Status: Re-referred to the Assembly Appropriations Committee. SB_2(Anderson)-Veterans Organizations Veteran's organizations are exempt from property taxes under the welfare exemption. This bill extends the welfare exemption to property used for fraternal, lodge or social club purposes. The exemption would not apply to any part of the property where alcohol is served. Status:Placed in the Serrate Appropriations Committee Suspense File. SB 25 Roth -Vehicle License Fees Beginning with FY 2004-05,the existing law requires that cities and counties receive additional property tax revenues for reimbursement of the previous loss of Motor Vehicle License Fees. Because they were incorporated after the VLF loss,the cities of Eastvale,Jurupa Valley, Menifee and Wildomar do not receive a corresponding reimbursement. This gill would provide the VLF benefit to the four cities. Previous proposals to equalize the new cities' revenues either failed or were vetoed. Status:Placed in the Senate Appropriations Committee Suspense File. SB 661(Hill) -Commercial Air Carriers This bill shifts the assessment of business personal property owned by a commercial air carrier from the County Assessor to the State Board of Equalization beginning with the 2016-17 lien date. This further requires that revenue derived from the assessment be allocated to local jurisdictions in the same percentages as if the property were locally assessed. Status:Placed in the Senate Appropriations Committee Suspense Fife. Homeowner and Renter Tax Relief The Howard Jarvis Taxpayers Association filed an initiative on May 1, 2015 that would provide property tax relief to homeowners and renters by increasing the homeowners' exemption from $7,000 to $32,000 and would increase the renters'tax credit by$250 for taxpayers filing a joint return and $125 for single filers. HdL Companies 904,861.4335 www.hdicornpanies.com 7 84 No Triple Flip Unwind BACKGROUND In March 2004, California voters approved Proposition 57, the California Economic Recovery Bond Act. The legislation authorized the issuance of$15 billion in "Economic Recovery Bonds" to close the State's operating budget deficit. As a result,the Bradley-Burns local sales tax rate was decreased from 1 percent to 0.75 percent on July 1, 2004 and the diverted 0.25 percent rate was pledged to repay the newly issued Economic Recovery Bonds. The State then directed that counties reimburse local governments for the 0.25 percent loss with Sales Tax In-Lieu from the Educational Revenue Augmentation Fund (ERAF), originally set up for schools. Consequently, schools would be reimbursed for the ERAF loss from the State General Fund. The funding scheme became known as the "Triple Flip" TRIPLE FLIP UNWIND PROCESS The Governor's FY 2014-15 state budget includes a supplemental payment of$1.6 billion that will allow the 2004 Economic Recovery Bonds to be paid off earlier than originally planned. The state's current estimate for retiring the bonds is July 2015,although this date could change. The timeline below outlines the Triple Flip unwind process based on a July 2015 payoff date. EXPECTED SCHEDULE July 2015 Bonds paid off September 2015 Department of Finance (DOF) and Board of Equalization (BOE)will estimate Sales Use Tax Compensation Fund (SUTCF) amounts to be paid from the Educational Revenue Augmentation Fund (ERAF) and provide estimates to County Auditor- Controllers,which will include: - Fiscal Year 2014-15 Triple Flip True Up. - Advance amount for the Second Quarter(2Q) 2015 (N of annual estimate) January 2016 County Auditor-Controllers will disburse one-half of SUTCF estimate May 2016 County Auditor-Controllers will disburse remaining SUTCF estimate May 2016 DOF and BOE will calculate final payment from State Fiscal Recovery Fund (to be disbursed via County SUTCF)that will include: - Second Quarter 2015 Triple Flip True Up - Payment of actual Triple Flip withholding` om Third Quarter(3Q)2015 - Payment of actual Triple Flip withholdir: from Fourth Quarter(4Q) 2015 June—Aug 2016 Final disbursement from County Auditor-Controllers based on May calculation Based on our review of historical annual Triple Flip reconciliations,all past takeaways have been properly trued up and no additional amounts are due to local/county agencies. www,hdlcorn anies.corn 1 909.861.4335 85 Starting with monthly advances in March 2016 (representing sales activity starting January 1, 2015) and thereafter, Bradley-Burns allocations will revert back to the original 1% amount. Due to the increase in monthly cash flow,_many agencies are like) to experience a one-time bump in recorded accrued revenues for the 2015-16 fiscal year when compared to the 2014-15 fiscal year. FldL is committed to ensuring its' clients have all the information necessary to accurately determine the impacts of the Triple Flip unwind process and will provide agency specific information with the quarterly reports. In the interim, if there are other questions, feel free to contact Bobby Young b ours or Sheri Peas#ey Deasie , hdlcom arties.com at 909.861.4335. vwww -hdlco toa� 1 909.861.4335 �� 86 Trends Affecting California's Economy Is this email not displaying Vol. 5 Issue 8-April 30,2015 correctly? View it in vour browser. Hekal :d U. HdE C (7). NAPA N ES Our Headlines a-news service provides HdL clients with the most up-to-date information on trends affecting California's economy and is meant to provide you with insight and support in your budget preparation and economic planning. IN THIS ISSUE: • Americans Spending on Dining Out Just Overtook Grocer Sales • How Teens are 5 endin Mone and Where Tl�e Shc • BOE Estimates a Tax on Service Industries Mav Generate $122,6 Billion for GA • Say Hello to A€ azon Business • Apple Campus heads 20 Billion in 2014 Pro'ect Starts • Gasoline Prices WHI Get Pumped-Up (text geek • HdL Retail Anal _ics -The Chan in Retail kandsca e Americans Spending on Dining Out Just Overtook Grocery Sales Grocery stores are finding it harder to make headway with shoppers as a surge in spending at restaurants over the past several months signals Americans are more likely to ditch the brown bags in favor of doggy bags. Sales at restaurants and bars overtook spending at grocery stores in March for the first time ever, according to Commerce Department data just released that dates back to 1992. Read More How Teens are Spending Money and Where They Shop Teens are spending most of their money on food, Nike remains their top brand and they shop Amazon more than any other website according to Piper Jaffray's semiannual report on teen spending. Read More i 87 BOE Estimates a Tax on Service Industries May Generate$122.6 Billion for CA The California State Board of Equalization (BOE) released an estimate indicating that California's state and local governments may receive approximately$122.6 billion in new revenue if tax were collected on services that are currently non-taxable.Of that amount, $60.9 billion could go to the state, with $61.7 billion for city, county, and other local government entities.The estimate assumes a statewide average sales tax rate of 8.42 percent. Read More Say Hello to Amazon Business Amazon.com Inc. has launched Amazon Business, its new business-to-business e-commerce marketplace, snatching millions of buyers and sellers with millions of products, says Prentis Wilson, Vice President of Amazon Business. Amazon Business replaces Amazon5upply.com, which the company launched in 2012 and that grew to more than 2.25 million products ranging from janitorial suppliers to metal-cutting tools and industrial equipment. Recti More Apple Campus Leads$20 Billion in 2014 Project Starts For the first time in nine years,a commercial construction project tops EPR California's annual ranking of the largest construction starts in the state last year. The 175-acre Cupertino site for the $5 Billion Apple Campus 2 buzzes with the activity of five major general contractors and thousands of workers as they construct 2.8 million square feet of office I space,600,000 square feet of research space and myriad supporting spaces. Read More f �. Gasoline Prices Will Get Pumped Up Text Week Southland motorists should expect to see gasoline hikes of 10 to 20 cents Per gallon next week because of refinery problems and other issues,ar:. industry analyst :,aid. Allison Mac, a petroleum analyst with GasBuddy.com, said Chevron's Richmond refinel y implemented an . E unplanned shutdown for flaring.That's when too much pressure builds up due to overpressurizing of equipment and flammable gas is released througl- pressure-relief l valves. Read More HdL Retail Analytics-The Changing Retail Landscape Click here for HdL's update, "The Changing Retail Landscape:Tr ,tional Brick and Mortar vs. Online Shopping." This update shows the growth in online sl` pping of general consumer goods for the 2014 holiday) quarter in addition to the longe erm trend. 1 €ff E i 3e Prepared for you by HdL Companies • Sales and Use Tax • Property Tax • Software Solutions By The Numbers dL provides relevant information and Percent of change from one year ago. analysis on the economic forces affecting local government CALIFORNIA DATA agencies. We serve over 380 cities, counties and districts in California and across the nation. Our allocation audits Ports (March): and software help our clients maximize Containers their revenues. Imported T 22.76% Exported .(, 18.74% We Deliver Revenue, Insight and Major Airport Traffic(February)- Efficiency to Local Government. Passengers Domestic t 4.46% International T 6.18% ARCHIVE Unemployment Rate: To view past issues of Headlines, March 2015 6.6% click the link below: March 2014 7.9% Vol. S Issue 5 March 12 2015 Vol. 5 issue 6 March 30 2015 Vol. 5 Issue 7 Aprii 15, 2015 . .._. r 89 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 2. PROPERTY TAX SAMPLE REPORT PACKAGE Assessed Values A five year history of the values within the city, Successor Agency and custom (city defined) geographic area Top 40 precured Net Taxable Value Changes A listing of the largest value changes, positive and negative between tax years Use Category Summary A comparison of property within the City and Successor Agency by county use-code designation Growth by Use Category Growth by use code designation between tax years Property Tax Dollar Breakdown A listing of the ATI shares of the largest tax rate area in the City Property Tax Revenue Current year revenue estimate for general fund and former RDAs Vales Value History Average and median sale prices annually for the last ten years Proposition 8 History Report A summary of the history of the Proposition 8 pool of parcels; including declines and restorations over the last economic downturn Top 10 Taxpayers A listing of the major property owners for both the City (Successor Agency also available), including the combined assessed values of their property and property use code designation Appeals History Historical appeals information including successful, pending end withdrawn appeals for 5- 10 years with reduction amounts and totals. General Pund1 f Revenue Estimate Revenue anticipated to be received for the fiscal yep,- by the City and Successor Agency respectively based upon the initial infornnation pr ;vided by the County and subject to modification. This report is interactive for tax moi cling. Residual Distribution Report Calculates City's share of residual revenue .�s part of an interactive spreadsheet where the client enters their ROPs amounts. HdL. ` 90 Hd %--v' THE CITY" OF SAH JUAN CAP STRAND COREN&CO E 2009/10 TO 2013/14 ASSESSED VALUES Unsecured -2009110 =-2010/11UM-2011/12 -2012113 M -2013114 NonunMry Percent Change Secured $0 $900,000,000 $1800,000,000 $2,700,000,000 $3,600,0001000 City Count Land $3,327,368,450 j $3,297,576,478 -0.9% j -0.5% $3,252,381,098 -1.4% 12% $3,290,883,637 1.2%. 1.8%. .._. . $3,421,523,134 4.01%rs j 4.8% lm rovements _ $2,786,362,658 j $2,798,935,141 0.5% 0.5% I $2,855,273,956 2.0% j 1.4% $2,878,341,032 Q:8%. E 2.7% $2,966,906,858 3:1°/a 2.5°/a Personal ProRertV !E $112,490,810 $102,231,133 iE .9..1%0 -3.5% $78,368,197 -23.3% -2.5%° $88,630,416 13.1%. $91,769,758 II 3.5% f -5.1a/ $198,607,194 [� $188,041,393 5.3% . j, 4.7% $164,971,833 -12, $201,106,654 21 9% .j 4.7%. $214,049,631 6.4% j 4.3% $1,700,000,000 $3,4002000,000 $5,100,000,000 $6,800,004,000 City County Gross Assessed $6,226,221,918 $6,198,742,752 -0�4%: 0 % f $6,186,023,251 '' ,y �: ^0.2%. j 112% $6,257,855,085 F 1.2% j 2;1% $6,480,199,750 36%, ( 34% Net Taxable Value $5,835,578,341 $5,818,284,780 :: 3 `0 % I -0.5% . $5,799,485,720 -03%0 0:9%0 $5,831,920,632 1.9% $6,031,391,679 3.;4% j 3.4%0 Data Source: Orange County Assessor 2009110 To 2093114 Combined Tax Rolls Prepared On 511212015 By PC This report is not to be used in support of debt issuance or continuing disclosure statements without the 91 Page 1 written consent of HdL,Coren&Cone HdL,4-� TIME CITY OF SAN JUAN CAPISTRANO COREN&COBE 2013114 TOP 40 NET TAXABLE SECURED VALUE CHANGES Current Net � Net Taxable Parcel Use Category Owner Situs Taxable Value Value Change Value Change from Prior Year: 666.451-48 Residential Lebon Charles B Iii 28153 Camino Del Rio $13,371,246 +$13,082,977 +4,538% 666-451-53 Vacant Murphy Jennifer M And Mitchell J $9,299,774 +$9,011,505 +3,126% 666-451-49 Vacant Taylor Morrison Of California Llc $7,696,365 +$7,408,096 +2,570%o 666-451-57Vacant Gluzman Peter And Josephine $6,734,319 .x-$6,446,050 : +2;236% 666-451-51 Residential Hildabrand Gary LAnd Janet K 28183 Via Del Mar $3,388,557 +$3,100,288 +1,075% 121-171-29 Commercial Millennium Housing Corporation 32302 Alipaz St $4,893,477 +$2,726,439 +126% 121-171-30 Commercial Millennium Housing Corporation 32302 Alipaz St $4,204,781 +$2,328,421 +124% 666-451=52 Residential Hildabrand Gary L And Janet K 28187 Via Del Mar $2,299,118 +$2,010,849 +698% 666451-58 Vacant Clements C And P l=amity Trust $2,244,773 +$1,956,504 +679% 121-254-44 Commercial Blue Sky Properties Camino Capistrano Sp( 33711 Camino Capistrano Ai $18,536,304. +$1,912,456 +12% 650-111-15 Industrial Sa Cosman And Damian Llc 30700 Rancho Viejo Rd $19,464,102 +$1,775,262 +10% 666-301-17 Agricultural- Caster San Juan Capistrano L P $1,499,400 +$1,499,400 +9,999% 649-091-05 Residential Murphy James J Jr Trust;Murphy Karen K 1 31765 Aguacate Rd $3,350,000 +$1,451,931 +76% 650-603-29 Residential Williams Kathleen J Family Frust 30422 Via Andalusia $3,250,000 +$1;433,795 +79% 649-101-01 Residential Wilholt Matthew Fuller Trust 31521 Aguacate Rd $1,230,000 +$1,112,014 +942°f° 649-352-13 Residential Barkate Harold E Trust Barkate Living Trust 31991 Peppertree.Bend $2,652,000. +$1,043,432,. __65% 649-111-66 Residential Brennan Leo W;Brennan Beverly K 31411 Old San Juan Rd $2,150,000 +$964,636 +81% .649-101-29 Residential Samattre William R 31595 Aguacate Rd $1,750,000 +$856,578 . +96% 675-411-44 Residential Francis Nadine 26732 Via La Jolla $1,096,702 +$854,962 +354% 668-121-14 Commercial Tuttle-Clicks Capistrano Property Inc 33235 Camino Capistrano $6,875,730 -$846322 +14% 675-411-41 Residential Rutherford Richard Michael Trust R M And F 26691 Via La Jolla $1,241,487 +$820,143 +195% 864-252-13 Residential Elliott Sarah M 29220 Via Zamora $854,364 +$806;674: +1,691% 650-612-35 Residential Mommy Glam Inc 30452 Via Cantabria $2,040,000 +$804,561 +&5% 67.5,.=41.1.40 Residential Liao Joseph.Q.Liao Merielle 26681 Via La Jolla $1,226,125 +$796,355.. +185% 664-252-07 Residential Tait Jonathan;Taff Miranda 29231 Via Zamora $825,000 +$777,310 +1;6301/1 650-392-07 Residential Kao John E Trust 30738 Paseo Eleganda $4,794,000 $781,16.1:. -14% 637-082-65 Commercial Saddleback Valley Community Church 29251 Camino Capistrano $0 -$834,509 -100% 650-461-01 Residential Mc Clain William D Trust 29565 Monarch Dr $151,978 -$839,702. _85% 668-291-18Industrial Myers Famfly Trust 26381 Via De Anza $1,750,000 -$902,000 -34% 666-131-19, . Vacant Franks Edward C Western Deafer Holding C 27164 Ortega Hwy $403,042 7$910,718 -69% 668-241-03 Commercial Chevron U S A Inc State Of California 26988 Ortega Hwy $0 -$946,983 -100% 666-131-03 Commercial Chevron Usa Inc State Of California 27112 Ortega Hwy $0 41,021,325 -100% 121-070-59 Residential Burke Jennifer Trust Paul J Burke Trust 31351 Aguacate Rd $536,810 -$1,119,524 -68% 121-070-60 Residential O'BrienMichael J 31301 Aguacate Rd $1,754,400 -$1,232,259. -41% 637-082-71 Agricultural Saddleback Valley Community Church 29343 Camino Capistrano $425,506 -$1,273,725 -75% 660-611=02 Commercial Ngp Realty Sub 30800 Golf Club Rd $5,566,181 $1,356,94$ -20% 637-082-66 Commercial Saddleback Valley Community Church 29251 Camino Capistrano $16,283 -$1,512,422 99% 98-291-13 Commercial Terracotta Realty Fund Llc 32881 Camino Capistrano $6,158,634 41,805,191 23/° R'7-082-68 Commercial Saddleback Valley Community Church $2,745,569 46,032,649 -69% 637=082-64 Commercial Saddleback Valley Community Church 29251 Camino Capistrano $0 $6,039,194 -100% Data Source: Orange County Assessor 2022113 And 2013114 Secured Tax Rolls Prepared On 5/12/2015 By PC This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL,Coren&Cone page 2 Hdt:l-,', TSE CITY OF SAN JUAN CAPISTRANO co REN&CONE 2013/14. USE CATEGORY SUMMARY BASIC PROPERTY VALUE TABLE Category Parcels Assessed..Value Net Taxable Value Residential 9,567 $4,767,001,675 (73.6%) $4,738,536,807 (78.6°/x) Commercial 282 $893,375,750 (13.8%) $716,874,031 (11.9%) Industrial 71 $185,644,485 (2.9%) $185,644,485 (3.1%) Agricultural 81 $44,368,625 (0.7%) $42;403,606 (0.7%) Vacant 603 $196,158,880 (3,0%) $192,753,780 (3.2%) Exempt 1,132 $234,758,440 (3.6%) $0 (0.0%) Crass Reference [1,082] $42,194,021 (0.7%) $42,011,716 (0.711/.) Unsecured [1,5841 $116,697,874 (1.8%) $113,167,254 (1.9%) TOTALS 11,736 $6,480,199,750 $6,031,391,679 ASSESSED VALUE NET TAXABLE VALUE Others Others 6-d°l. 3.3°% Vacant Industrial 3.01/0 3.1% Exempt Vacant 3.6°h 3.2% C om rn aroial C om m ereial 11.9% ~l q Residential Residential 73:6/ 78.6% Data Source: Orange County Assessor 2013/94 Combined Tax Rolls Prepared On 5tl212015 By PC This report is not to be used in support of debt issuance or continuing disclosure statements without the 93 Page 3 written consent of HdL, Coren&.Cone HdL��" THS CITY OF SAN iUAN CAPISTRANO COR N&CONE 2013114 GROWTH BY USE CATEGORY 2012/13 to 2013114 Value Growth by Use Category Category 2012113 Net Taxable Value. 2013114 Net Taxable Value $Change %Change Residential 9,506 $4,575,966,695 9,567 $4,738,536,807 (78.6%) $162,570,112 3.6% Commercial 292 $711,600,651 282 $716,874,031 (11.9%) $5,273,380 0.7% Vacant 663 $169,809,851 503 $192,753,780 (3.2%) $22,943,929 13.5% Industria! 71 $179,861:098 71 $185,644,485 (3.1%) $5,783,387 3.2% Unsecured 11,6331 $111,569,738 j1,584] $113,167:254 (1.9%) $1,597,516 1.4% Agricultural. 61 $41,947:707 81 $42,403,606 (0.7%) $455,899 1.1% Cross Reference. 11,0561 $41,164,392 [1,082] $42,011,716 (0.7%) $847,324 2.1% Exempt 1,120 $0 9,132 $0 (0.0%) $0 0.0% SBE Nonunitary 111 $500 101 $0 (0.0%) --$500 -100.0% TOTALS11,733 $5,831,920,632 19,736 $6,031,391,679 (100.0%) $199,471,047 3.4% Numbers in blue are parcellassessment counts .Assessed !Value by Major Use Category i1 $5,000,000,000 2012/13 $4,000,000,000 20131€4 $3,000,000,000 $2,000,000,040CD f Z --------_- 1 Residential Commercial Vacant Industrial Unsecured Agricultural Cross Reference Use Category Data Source: Orange County Assessor 2013114 Combined Tax Rolls Prepared On 511212015 By PC This report is not to be used in support of debt issuance or continuing disclosure 94 Page 4 statements without the written consent of t-ldL.,Corea&Cane THE CITY nE SAN IUAN f"'APISTR ANO ® � �,L1 PROPERTY TAX DOLLAR BREAKDOWN $ 0,3724 Capistrano Unified General Fund z i> $ Q.1660 Educational Revenue Augmentation Fund M 3 $ 0.1163 O.C. Fire Authority General Fund 010 San.Juan aprstrano genera!Fur l $ 0.0916 South Orange County Community College Dist-Gene v � g y �'..r $0.0638 Orange County General Fund $ 0.0205 Or<:,nge County Flood Control District $ 0.01725 ( angaCounty Public Library $ 0.01588 0—C.Dept.Of Education-General Fund $ 0.01681 O C.Harbors Beaches&Pads Csa 28 $ 01;1;2 San J aap Cstyro 96 (was Cf3 $ 0.00280 OrangeCcunty7ransitAuthority $ 0.00,1`6 Prange County Vector Control District $ 0.00051 Orang a County Cemetery Fund-General $ 1.0000 ATI Annual Tax Increment Ratios for Tax Rate Area 23065 Excluding Redevelopment Factors&Additional Debt Service Data Source: Orange County Assessor 2013/14 Annual Tax Increment Tables Prepared On 5/12/2015 By PC This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL,Coren&Cone 95 Page 5 Hd THE CITY OF SAN JEAN CAPISTRAN COREN&CONE PROPERTY TALC REVENUE - 2013114 Estimated Revenue,Assuming Zero Delinquency, County Admin Fees Not Deducted General Fund Summary-.Non SA TRAs,. Non SA TRAS General Fund Rol[ Taxable Value . Rate Revenue Debt Rate _ Debt Revenue. Total Revenue.. SFC - - - $5,089,909,668 0.097821303 $4,979,015.95 �- 0.000000 $0.00 $4,9791015:95 UTIL $0 0.000000000 $0.00 0.000000 $0.00 $0.00 UNS $47,285,489 0.099000265 $46,812.76 0.000000 $0.00 $46,812:'76; TgTAL tl $5,137,195,157 0.097832155 $5,025,828.71 0.000000 $0A0 ` _ $5;1125;828.71 +Aircraft $0 $0.00 $0.00 WOO-: Total $5,137,195,157 0.097832155 $5,025,828.71 0.000000 $0.00 $51025828fE Non..SA TRAs Total $5,137,195,157 0.697832155 $5,025,828,71 $5;0251828.71 General Fund Summary.-SA THAs SA TRAS.Base Year Roll _ NetValue Valge Efate Base Year Revenue Debt Rate Debt Revenue Total:Revenue. SEC $828,314,757 $91,026,302 0.099768340 $90,815.43 11.000000 $0.00 $90,81.5.43 UTIL $0 $247,765 0.101944141 $252.58 0.000000 $0.00 $252.58 UNS $65,881,765 $15,627,291 0.101944178 $15,931.11 0,000000 $0.00 $15,931.1.1 TOTAL $894,196,522 $106,901,358 0.100091456mW $106,999.13 0.000000 $0.00 $100,99943 +Aircraft $0 $0 $0.00 $0.00 $0.0©.. SA TRAs Total $894,196;522 r� General Fend Total $6,031,391,679 $5,244,096,515 0.097878211 $5,132,827.83 0.000000 $5.00 $5,13.2,827.83 SB 2557 County; 4min.Fees Orrent Year Actual Amount) $57,379:99 Other CityAssociateci ', enu.eS . (Bait Juan,Capistrano.City 1990 Bond Fund) 'nn SA'TRAS SA TRAS Base Year Combined General General Fund Roll Taxable Value Tz.: 'n Value Value Fund Value. Rate Revenue Debt Rate Debt Revenue Total Revenue. SFC $5,918,224,425 $5,0i> ,009,668 $91,026,302 $5,180,935,970 0.000000000 $0.00 0.003760 $222,525.24 $2221525:24 UTIL $0 $0 $247,765 $247,765 0.000000000 $0.00 0.000000 $0.00 $0.00 UNS $113,167,254 $47,285,489 $15,627,291 $62,912,780 0.000000000 $0.00 0.004050 $4,583.27 $4,583.27' TOTAL $6,031,391,679 $5,137,195,157 $106,901,358 $5,244,096,515 0.0011000000 $0.00 0.003765 $227,108.51 1227,108.51. +Aircraft $0 $0 $0 $0 0.000000000 $0.00 0.1100000 $0.00 $0:00 Total $6,031,391,679 $5,137,195,157 $106,901,358 $5,244,096,515 0.000000000 $0.00 0.003765 $227,108.51' $227,108.51 B 2557 County Admin Fees(Current Year ActualAmount) � - -� Not Available co M Homeowner Exemption revenues are included in the revenue model used for this re ort Data Source- Orange County Assessor 2413114 Combined Tax Rolls Prepared On 5/12/2015 By PC This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren&Cone Page 6 `�� $ THE CIS F SAN JUAN CAPIST N® COREN&CONE PROPERTY TAX REVENUE . 2013/14 Estimated Revenue,Assuming Zero Delinquency, County Admin Fees Not Deducted Incremental Revenue Summary _ �.. Total Incremental Roil 3A Taxable Value Base Year Value Incremental Value _ Rate Incremental Revenue Debt Rate Debt Revenue_ Revenue SEC $828,314,757 $91,026,302 $737,288,455 1,000000000 $7,372,884,55 0.003500 $25,805.10 $7,39.816.89.65 UTIL $0 $247,765 -$247,765 1.000000000 -$2,477,65 0.0035013 -$8.67 -$2,486:32 UNS $65,881,765 $15,627,291 $50,254,474 1.000000000 $502,544.74 0.003500 $1,758.91 $504,303.65 : TOTAL 894,196,522 106,901,358 787,295,164 1.000000000 $7,872,851,64 0.003500 $27,555.33 $7,900,506;97 ...... _ _ $0 $0 _. $0 0.000000000 _. _-$0.00 0.000000 ..... $0.00 $0 00 +Aircraft ____-._ ...... - � .__ SA Total $894,196,522 $106,901,358 $787,295,164 $7,872,951.64 0.003500 $27,555.33 $7,900j506.97 58;2557 County Admin Fees Not Available Homeowner Exemption revenues are included in the revenue model used for this report Date Source., Orange County Assessor 2013114.Combined Tax Rolls Prepared On 5/12/2015 By PC This report is not to 6e used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren&Cone Page 7 HdL!"r1-s'- THE CITY OF SAN JUAN CAPISTRANO COREN&CONE SALES VALUE HISTORY Single Family Residential Full Value Sales (0110111999 -4/3012015) clwsmElmz= 1999 383 $394,999 $303,000 2000 383 $460,320 $330,000 8.91% 2001 356 $412,329 $315,500 -4.39% 2002 488 $492,626 $405,000 28.37% 2003 476 $585,749 $439,750 8.58% 2004 505 $745,514 $540,000 22.80% 2005 550 $828,298 $625,000 15.74% 2006 458 $917,956 $667,500 6.80% 2007 339 $996,650 $785,000 17.60% 2008 380 $610,863 $398,750 -49.20% 2009 395 $494,671 $351,000 -11.97% 2010 470 $538,371 $370,500 5.56% 2011 446 $557,623 $406,000 9.58% 2012 497 $625,766 $449,000 10.59% 2013 483 $758,654 $625,000 39.20% -Median Price -Avg Price $1,000,000 $800,000 $600,000 a $400,000 $200,000 $o Yep° "Sales not included in the analysis are quitclaim deeds,trust transfers,timeshares,and partial sales. Data Source. Orange County Recorder Prepared On 511212015 By PC This report is not to be used in support of debt issuance or continuing disclosure statements without the written 98 Page 8 consent ofHdL,Coren&Cone C`�-�§', THE CITY OF SAID JUAN C IS�`RANO C O R E N&CON PROP 8 POTENTIAL RECAPTURE HISTORY Single Family Residential Parcels Roll Prop 8 Real Value of Inflation Potential % of Prop 8 Parcels Increase in Real Prop 8 Parcels Increase in Real Year Parcel Prop 8 Parcels Adjusted Peak Recapture All Parcels that have fully AV Due to full that;have AV Due to Count Taxable Values Recaptured Recaptures .Recaptured Value Recaptures 2008 1,384 1,107,875,386 1,260,317,497 152,442,111 13.1% 21 4,422,390 44 5,148,961 2009 2,312 1,428,395,302 1,872,982,152 444,586,850 21.8% 156 10,785,855 571 36,995,393 2010 2,161 1,326,281,301 1,765,683,710 439,402,409 21.3% 94 5,024,449: 498 31,901,605 2011 2,266 1,401,841,112 1,844,783,063 442,941,9.51 22.4% 6 4,031,264: 106 5,333,225 2012 2,603 1,508,961,397 1,993,269,925 484,308,528 25.7% 239 .3,116,808 718 12,836,461 2013 2,359 1,466,805,097 1,948,220,193 481,415,096 23.3% Totals for Single Family Residential Parcels Prop 8 History 6,000,000,000 $500,000,000 F �5,000,000 000 `j $400,000,000 ff 4,000,000,0000 I � �$300,000,000 — — ---------- IN PutlRecature 3,DOO,DOO,000 I f Potential Recapture RecapturaRadue Recaptured Net AV _ a L $200,000,000 2,QDQ,DOQ DQD �u I �Y 3 E'�I 1,000,000,000 ` $10O,OOODQO E i t lt. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 The report identifies those parcels which have been granted a value reduction and are eligible for further potential of recaptured value per Proposition 8. The reductions were based on market conditions at the time of assessor review. This calculation is derived from historical transfers of ownership,Assessor applied Proposition 8 reductions and trends in the marketplace relative to median and average home sales and is an estimate of the impact of current adjustments to the assessment roll as of the 2013-14 lien date. The Inflation Adjusted Peak Value is defined as a parcel's highest value after its most recent sale. If a parcel is assessed for a lower value after its most recent sale,then the sales price becomes the peak value. Peak values are inflated annually according to the maximum allowed rate under proposition 13. The count of Prop 8 Parcels that have recaptured value includes both parcels that have been fully recaptured and are no longer in the Prop 8 Parcel Count as well as parcels that have only recaptured a portion of the Inflation Adjusted Peak Values. The Proposition 8 potential value recapturing is shown in the Potential Recapture Column and assumes no future sales transactions. As properties transfer ownership they ars removed from the Prop 8 Parcel Co@t and 9 sold for more or less will not be eligible for value recapturing per Proposition 8. Data Source: Orange County Assessor Combined Tax Rolls;Sales Through 4/3012015 V3.0 Prepared On 5/1212015 By PC This report is not to be used in support of debt issuance or con0nuing disclosure statements without the written consent of Hdl,Coren 8 Cone Page 9 THE CITY F SAN JUAN CAPISTRANO rw iw d Lw"'"1'-5: COREN&CONE 2013/14 TOP TEN PROPERTYTAXPAYERS Top Property Owners Bases! On Net Values Owner Secured Unsecured Combined Primary Use & %of %of %of Parcels Value NetAV Parcels Value . Net AV Value Net AV Primary Agency Vacant 1) LV PACIFIC POINT LILAC 192 $87,564,381 1.48% $87,564,381 1.45% (PendlnyAppeals on Parcels) San Juan Capistrano General Fund Commercial 2) COSTCO WHOLESALE CORPORATION 2 $36,535,080 0.62% 1 $4,988,189 4.41% $41,523,269 0.69% SuccessorAgency (PendingAppeals(3n Parcels) Commercial 3) CAPISTRANO ENTERPRISES 2 $35,742,552 0.60% 1 $14,280 0.01% $35,756,832 0.59% SuccessorAgency Commercial 4) NATIONWIDE HEALTH PROPERTIES 3 $30,501,433 0.52% $30,501,433 0.51% San Juan Capistrano General Fund (PendingAppeals on Parne�s) Residential 5) 1NLBD SANJUANCAPISTRANO ASSOCIATES 13 $26,420,902 0.45°% $26,420,902 0.44% � SuccessorAgency Commercial 6) ORTEGA RANCH LLC 6 $25,724,212 0.43% 1 $10,498 0.01% $25,734,710 0.43% SuccessorAgency Commercial ') SSL LANDLORD LLC 1 $23,513,040 0.40% $23,513,040 0.39% SuccessorAgency 8) HFP LIMITED l 2 $20,378,747 0.34% I $20,378,747 0.34° Commercial9I /° SuccessorAgency Commercial 9) MITCHELL LAND AND IMPROVEMENT COMPANY 8 $19,946,644 0.34% $19,946,644 0.33% Successor Agency Industrial 10) FLUIDMASTER INC 1 $19,707,345 0.33% $19,707,345 0.33% SuccessorAgency Top Ten Total 230 $326034,336 5.51% 3 $5,012,967 4.43% $331,047,303 5.49% City Tota! $5,918,224,425 $113,167,254 $6,031,391,679 0 0 Top Owners last edited on 5/12115 by paulac using sales through 06/30/14(Version R.1) Data Source:Orange County Assessor 2013/14 Combined Tax Rolls and the SBE Non Unitary Tax Roll Prepared On 5/12/2015 By PC This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL,Caren&Cone page 10 THE CITY OF SAN JUAN CAPISTRANO t1d COREN8,CONE. APPEALS HISTORY Appeals History Listing -2009 Through 04110120/5-In Appeal Number Order —. __.___ _ _ _ _._________ — __ ...... 2009 Parcel Appeals .. . Appeal Count. Roll Total Board Value Change �. — —_— —. f 209 Totals 117 Appeals Allowed $233,531,049 $186.424,030 $-47,107,019 Value C3ecllne: 20.2% .:41. Appeals Denied $46,638;369 16 Appeals pending $16,169,098 120 Appeals Withdrawn $257,006;966 294Appeals :$553,345,482 186 424,03Q —--$47,907,019 2010 Parcel Appeals —� Appeal Count Roll Total Board Value �VY Change 2090 Totals 233 Appeals Allowed $262,388,166 $201,452,948 $-60,935,218 Value Decline: 23.2% J 32 Appeals Denied $46,413,969 20 Appeals Pending $17,390;563 I 93 Appeals Withdrawn $220,167,919 378 Appeals $546,360,617 . $201,452,948 $-60,935,218 2011 ParcelAppeals �_._ Appeal Count Rolf Total Board Value Change �E 2011 Totals. 81 Appeals Allowed $130,996,792 $110,710,446 $-20,286,346 Value Decline: 15.5% 33 Appeals Denied $52,496,495 I 45 Appeals Pending $28,946,625 82 Appeals Withdrawn $217,153,980 241 Appeals $429,593,892 $110;710,446 $-20,286,346 F72,012 Parcel Appeals Appeal Count Rolf Total Board Value Change 2012 Totals 72 . Appeals Allowed .$105,840,001 $88,470,984 $-17,369,017 Value Decline:: 16.4% 35 Appeals Denied $42,500295 I 65 Appeals Pending $53,295,491 I 285 Appeals Withdrawn $324,288,802 467 Appeals $525,924,589 $88,470,984 $-17,36.9,017 Data Source: Orange County Assessor Through 04/1012015-In Appeaf Number Order Combined Tax!tolls Prepared On 511212015 By PC This report is not to be used in support of debt Issuance or continuing disclosure statements without the written consent of NUL,Core"8 Cone page 11 HdL THE CITY OF SAN JUAN CAPISTRANO COREN &CONE APPEALS HISTORY Appeals History Listing -2009 Through 04/10/2015 -In Appeal Number Order 2013 Parcel Appeals Appeal Count _ Roll Total Board Value Change 2013"Totals _ _ —. 19 Appeals Allowed - _ - $46,747,696 $38,814,678 A^ $-7,932,418 ValueM1Dediw 117.0% - E 13 ..Appeals Denied $112,551;749 46 Appeals Pending $24,011,584 176 Appeals Withdrawn $251,515,661 254: Appeals $434,826,090 $38,814,678 $=7,932,418 SAN JUAN CAPISTRANO ENTIRE CITY 522 Appeals Allowed $779,503,104 $625,873,086 $-153,630,018 Value Decline: 19.7% Listed Totals' 154 Appeals Denied $300,600,877 192 Appeals Pending $139,813,361 756 Appeals Withdrawn $1,270,133,328 1,624 .Appeals $2,490,670 $626,873,086�� $-153,630,018 ca Data Source: Orange County Assessor Through 0411012095-In Appeal Number Order Combined Tax Rolls Prepared On 511212015 By PC This report is not to be used in support of doubt issuance or continuing disclosure statements without the written consent of HdL,Coron 8 Cone Page 12 HdL" THE CITY OF SAN JUAN CAPISTRANO e-s'/ GENERAL FUN® REVENUE ESTIMATE O R E N&C 0 K E 2014-15 Revenue Estimate based on 2013-14 Values and Estimated Changes General Fund and BY Values 2093-94 $5,244,096,515 Citywide Net Taxable Value 2013-14 $6,031,391,679 Real Property Value(Incl.prop 8 parcels) $5,091,916,649 $5,942,382,173 CPI of Non Prop 8 Parcels (0.454%) $16,656,013 $20,319,120 Transfer of Ownership Assessed Value Change $122,761,794 $129,055,493 Est. SFR Prop 8 Adj Based on Recent SFR Price . $273,024,444�[.. $283,289,4 0 2014-15 Estimated Real Property Value $5,504,358,900 $6,375,046,196 Base Year Values $106,901,358 Included in AV Secured Personal Property Value (0.0%growth) $18,226,813 $23,657,254 Unsecured Personal Property Value(0.0%growth) $27,051,695 $65,352,252 Nonunitary Utility Value $0 $0 Enter Completed New Construction 1 2014-15 Estimated Net Taxable Value $5,656,538,766 $6,464,056,702 Estimated Total Percent Change 2014-15 7,86% 7.17% Taxed @ 1% $56,565,388 Aircraft Value $0 Average City Share 0.0978782107 $5,536,519 Aircraft Rate (01 *0,333333333) $0 � � Enter Unitary Taxes Budgeted Flat Net GF Estimate for 2014-15 $5,536,519 Enter Suppl. Apportionment Recd. in 20113-14 Base Value of VLFAA $2,772,267 Estimated Change to VLFAA $198,772 ULFAd'Estimate far.,2014-15: $ ,97"1, 39 NOTES: • Base Year Values Entry: The dissolution of redevelopment means that base year values in redevelopment project areas will tend to remain constant(no growth). •Completed new construction entry:if completed new construction has resulted in a sale of the property it is likely that the new value will appear in the value increase due to transfers of ownership entry and therefore should not be also included in the completed new construction value. Enter the value of new construction completed between Nov.2012 and Oct.2013. o Secured personal property and unsecured values are projected at 100%of 2013-14 levels. The unsecured values include escaped assessments that have a general fund total value of$6,383,877 and a district wide value of$9,093,089. The value of escaped assessments is generally inconsistent and varies from year to year. o Estimated Assessor Prop 8 Reductions: Prop 8 reductions in value are TEMPORARY reductions applied by the assessor that recognize the fact that the current market value of a property has fallen below its trended(Prop 13)assessed value. For 2014-15,properties with prior Prop 8 reductions are not included in the CPI increase,they are projected flat until either the Assessor begins to recapture value as the economy improves and median sale prices begin to increase,they are further reduced,or they sell and are reset per Prop 13. • Supplemental revenue allocations are pooied countywide and are erratic. They should be budgeted conservatively using last year's actual receipts as a guide. •General Fund Revenue Estimate does not include any ad valorem voter approved debt service revenue. •The revenue projection assumes 100%payment of taxes. Delinquency is not considered in the projection;however,rates of between 2%and 3%are typical. Prepared on 5112115 Using Sales Through 4130115 This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL Coren &Cone 103 THE CITY OF SAN JUAN CAPISTRANO 2413/14 SUCCESSOR AGENCY RESIDUAL DISTRIBUTIONS COR, N.i. Based on Estimated Revenue The attached Excel spreadsheet is provided to assist Successor Agencies with the estimate of the ABx1 26 Residual Revenues. ABx1 26 provides that the taxing entities of redevelopment project areas are to receive semi-annually as property tax revenues the residual revenue amounts left after the obligations of the former redevelopment agencies are paid. According to ABx1 26, the former tax increment revenues are to be deposited into the Redevelopment Property Tax Trust Fund (RPTTF). Priorto the allocations that will be made on January 2 and June 1 of each year,the county auditor-controller shall first deduct its administrative costs from the RPTTF and then make all tax sharing payments required by existing tax sharing agreements or statutory tax sharing obligations. Remaining RPTTF property tax revenues will then be allocated to the Successor Agency for payment of obligations approved on their Recognized Obligation Payment Schedules (BOPS). These payments may include debt service obligations for tax allocation bonds and other debt obligations but only to the extent that the tax increment revenues were plef'p�:d fr =',a r of the det t. Other payments may be authorized for obligations listed on the ROPS as allowed by ABx1 26 and AB 1484 and as approved by the oversigll� D {ard a 3d the DOF. The Successor Agency's administrative cost allowance will be paid assuming that funds allocated by the County for ROPS obligations are sufriicient after payment of ROPS obligations. Any residual revenues remaining wi,l be distributed by the County to school entities, city, the.county and special districts based on their percentage shares of property tax collections. n no case may the coil-1 :i>,:3tion of pass through payments and residual revenue payments exceed a taxing entity's full share of tax increment revenue. Taxing er "�es receiving a pass through amount that is 100%of its share of tax increment revenue,for instance, may not receive any share of residual revenue. The table provides a calculation of tax incremei;� -nerated by the former redevelopment agency's project area(s). Net Tax Revenue consists of Gross General Levy Revenues less the SB 2557 Administration Fee, ,,, -ty collection charges when applicable,and tax-sharing payments. In the yellow boxes below the Net Tax Revenue the Successor Agency should insert their Ki:. ,?unt for the January and June ROPS allocations as positive numbers. The spreadsheet will then calculate the Successor Administrative Allowance as three perce, ;. ': ROPS amount or$250,000, whichever is larger. The City's general fund and debt service (if any) shares of the residual revenue are then calculated. The caic".c;1. 1 amounts are estimates. Exact amounts will vary based upon actual collections, and in some cases, particular interpretations of ABx1 26 by the County Auditor Controller. c� THE CITY OF SAN JUAN CAPISTRANO Hdll:&-� 2013/14 SUCCESSOR AGENCY RESIDUAL DISTRIBUTIONS Based on Estimated Revenue Caxable' 3-14 3014-#5 201518 2916.''-17 .201718. V;Itaes X012 13' 301 Real Property 830,907,285 851,345,815 855,210,925 872,315,144 889,761,446 907,556,675 Personal Property 41,569,261 42,850,707 42,850,707 42,850,707 42,850,707 42,850,707 Total Projected value 872,476,546 894,196,522 898,061,632 915,165,851 932,612,153 950,407,382 Base Year Value 107,668,916 106,901,358 106,901,358 106,901,358 106,901,358 106,901,358 Taxable Value over Base 764,807,630 787,295,164 791,160,274 808,264,493 825,710,795 843,506,024 Gross Tax Increment Revenue 7,674,949 7,900,507 7,939,293 8,110,934 8,286,008 8,464,583 Unitary Tax Revenue 43,337 43,337 43,337 43,337 43,337 43,337 Gross General Levy Revenues 7,718,286 7,943,844 7,982,631 8,154,272 8,329,345 8,507,920 LESS SB 2557 Admin Fee (82,048) (72,174) (72.526) (74,086) (75,676) (77:299) County Collection Charge NA NA NA NA NA NA Net Tax Revenue 7,636,238 7,871,671 7,910,105 81080,186 8,253,669 8,430,622 ,January RODS Cycle: Available Revenue(1) 3,935,835 3,955,052 4,040,093 4,126,834 4,215,311 Insert Obligation Amounts Payable i;-m RPTTF(2) (AS A POSITIVE) ----> 0 0 0 0 0 SA Admin.Allowance(3) 125,000 125,000 125,000 125,000 125,000 Residual Property Tax Revenue 3,810,835 3,830,052 3,915,093 4,001,834 4,090,311 City Share of Residual Revenue (10.0226% (Footnote 4) 381;945 383,871 392,394 401,088 409,955. City DI5'Residual Revenue.(tit.091?0%) (ru-__;: <' 4) 0 0. 0 0 0:' June ROPS Cycle: Available Revenue(1) 3,935,835 3,955,052 4,040,093 4,126,834 4,215,311 Insert Obligation Amounts Payable from RPTTF(2) (ASA POSITIVE) D 0 0 0 0 SA Admin,Allowance(3) 125,000 125,000 125,000 125,000 125,000 Residual Property Tax Revenue 3,810,835 3,830,052 3,915,093 4,001,834 4,090,311 It Shire of isrdurai Fteveslue (10 022E°Jo) (Footnote 4) 381;945 883 87 332,394 40,1,088 499,955 City 1�l5R05idri #Reve�te0 OOti9°J°) . (Footnote 4) tJ D 9 9 9 c� U I Wl LLIVLW,5. (1) The Available Revenue for the January RODS cycle will consist of the June,July and,in some counties,Augusta I locations from the prior fiscal year and the November and December allocations from the current fiscal year. Available Revenue forth e June BOPS cycle will consist of the revenue allocable for January through May of the current fiscal year. (2)The ROPS obligation amounts shoufd be entered by the Agency from its ROBS tables as approved. Please exclude line item amounts for administrative allowance and include only amounts that are to be paid from the RPTTF. The Successor Agency may insert projected BOPS amounts for years beyond 2013-14 in order to estimate residual revenue distribution for future years. (3)The Successor Agency is allowed a minimum of$250,000 for administrative cost allowance per fiscal year unless this amount is reduced by the Oversight Board. Subject to Oversight Board approval,additional amounts may be allowed up to a maximum of 3%of the amounts allocated to the Successor Agency for payment of Recognized Obligations from the RPTTF. To the extent that there is insufficient revenue to pay all ROPS obligations, the administrative allowance will be reduced or eliminated. (4) The City share of residual revenue shown is based on the City's weighted average share of the 1%general levy tax rate within all project area tax rate areas. If the City levied pension fund debt service tax rates, the portion of Residual Revenue attributable to this debt service tax rate revenue is shown separately. The actual share of residual revenue allocated by the County may be reduced in order to pay a portion of the residual revenue to the ERAF as mandated by AB 1x 26 and AB 1484. The portion of residual revenue allocated to the City may be increased or decreased by other allocation methodologies required in the law or adopted by the County. The amounts shown should be considered as approximations and should not be used for budgeting purposes. Data Source., Orange County Assessor 2013/94 Secured and Unsecured Tax Rous,Orange County Auditor Controller Prepared On 5119/2015 By NEC This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL,Coren&Cone Page 3 0 oa Proposal for Sates Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 G. REFERENCES A complete list of all clients follows this page. Many clients use HdL for both Sales Tax and Property Tax Services, 1. References for Sales and Property Tax City of Barstow- 1987 to Present Sales Tax and Property Tax Analysis, Revenue Projections and Audit Services 220 E. Mountain View Street, Suite A, Barstow, CA 92311 Cindy Prothro, Finance Director, 760.256.3531 cprothro@barstowca.gov City of Covina— 1988 to Present Sales Tax and Property Tax Analysis, Revenue Projections and Audit Services 125 East College St., Covina, CA 91723 Andrea Miller, City Manager, 626.858.7212, amiller(a-)covinaca._qov City of Glendora— 1987 to Present Sales Tax and Property Tax Analysis, Revenue Projections and Audit Services 116 E. Foothill Blvd., Glendora, CA 91741 June Overholt, Finance Director, 626.914.8200 loverholt(a.ci.glendora.ca.us City of Lake Elsinore —2015 to Present Sales Tax and Property Tax Analysis, Revenue Projections and Audit Services 130 South Main Street, Lake Elsinore, CA 92530 Jason Simpson, Finance Director, 951.674.3124 jsimpson(cDllake-elsinore.orq City of Lake Forest— 1992 to Present Sales Tax and Property Tax Analysis, Revenue Projections and Audit Services 25550 Commercentre Drive, Suite 100, Lake Forest, CA 92630 Keith Neves, Director of Finance, 949.461.3511 kneves@,lakeforestca.aov City of Mission Viejo—1990 to Present Sales Tax and Property Tax Analysis, Revenue Projections and Audit Services 200 Civic Center, Mission Viejo, CA 92691 Josephine Julian, Dep. City Treasurer, 949.470.3059 iiulia_n(d�cityofmissionviejo.orq City of Paramount—1996 to Present Sales Tax and Property Tax Analysis, Revenue Projections and Audit Services 16400 Colorado Ave., Paramount, CA 90723 1996 to Present Karina Lam, Director of Finance, 562.220.2207 klam aremount6ty.com City of Pleasant Hill —2014 to Present Sales Tax and Property Tax Analysis, Revenue Project#ins and Audit Services 100 Gregory Lane, Pleasant Hill, CA 94523 Mary McCarthy, Finance Manager, 925.671.5231 mrr�,,carthy@ci.oleasant-hill.ca.us City of San Clemente—2001 to Present Sales Tax and Property Tax Analysis, Revenue P'ejections and Audit Services 100 Avenida Presidio, San Clemente, CA 92672. James Makshanoff, City Manager, 949.361.6166 rnakshanoffj@san-clemente.org_ H d L"'p"' 107 HdE HdL Companies Clients and Services COMPANIES A—Sales Tax E=Permitting Software Leeend of Services: B=Sales'Tax Audit F=Professional Services C=Property Tax Services G=Other Services D=Business License Software Adelanto(B,C,F,G) Calabasas(C) Desert Hot Springs(A,B,C) Hoquia ,WA(D) Agoura Hills(A,B,C) Calexico(A,B,G) Diamond Bar(A,B) Hugh son(B,E,G) Alameda(A,B,C,D) Ca4mesa(B,E,G) Dixon(A,B,C) Humboldt County(B,G) Alameda County(A,B,D,G) Calistoga(A,B,C,D) Downey(A,B,C,D) Huntington Beach(A,B,C) Alhambra(A,B,C) Camarillo(A,B,C,D) Duarte(A,B) Huntington Park(A,B,C) Aliso Viejo(A,B,C) Canyon Lake(A,B) Dublin(A,B,C) Huron(B,C) American Canyon(A,B,C,D) Carmel(A,B,G) Eastvale(A,B,C) Imperial(A,B,C) Anderson(A,B,D) Carpinteria(A,B) EI Cajon(D) imperial Beach(A,B,C) Apple Valley(A,B,D) Carson(A,B,C,D) EI Centro(A,B) Imperial County(A,B,G) Arcadia(A,B,D,E) Cathedral City(A,B,C,D,G) EI Cerrito(A,B,C,G) 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Covina(A,B,C,D) Montclair(A,B,C,E,G) Rancho Santa Margarita(A,B,C) Seaside(A,B,C,G) West Hollywood(A,B,C,D,E) Montebello(A,B,C,D,E) Red Bluff(A,B,C) Shasta County(B,G) Western Municipal Water Dist(C) Monterey County(A,B) Redlands(A,B,C,D,F) Shasta take(G) Westminster(A,B,C,D,E) Monterey Park(A,B,C,D,F) Redondo Beach(A,B,C,F) Sierra Madre(B,C,G) Wheatland(B,G) Moorpark(A,B,C,D) Rialto(A,B,C) Signal Hill(A,B,C,D) Whittier(A,B,C,D) Maraga Orinda Fire District(C) Riverside(A,B,D) Sirrmf Valley(A,B) Willows(B) Moreno Valley(A,B,C,D) Riverside County(A,B,D) Siskiyou County(B,G) Windsor(A,B,D) Morro Bay(A,B,D,E,G) Rocklin(A,B,C,D) Solana Beach(A,B) Winters(A,B) Moulton Niguel Waster Dist(C) Rosemead(A,B,C,D,E) Sotano County(A.6) Yoio County(A,B) Mountain View(A,B,C) Roseville(F,G) Soledad(A,B,C:G) Yorba Linda(A,B,C,D,E) Murrieta(A,B,D) Ross(C,F) Sonoma County(A,B) Yreka(B:G) Napa County(A,B,G) Sacramento County(A,B) Sonoma Cc,unty Trans Auth(G) Yuba City(A,B,C) National City(A,B,C,G) Sacramonto Metro Fire(C) South Fl Monte(A,B,D,G) Yuba County(A,B) Needles(A,B) Salinas(A,B,G) South Gate(A,B,C,D,E,G) Yucaipa(A,B) Nevada City(A,B,F,G) San Benito County(B) South Lake Tahoe(A,B,G) Yucca Valley(A,B,D,G) Nevada County(A,B,G) San Bernardino(A,B,C,G) South Pasadena(A,B,C,D) Newark(A,B,D) SANBAG(A,G) Sparks,NV(D) 10.9 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 2. Terminated Contracts -Previous Three Years HdL has no terminated contracts in the last three years. L M rN4� 110 Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 H. CERTIFICATIONS OF QUOTATIONS Appendix C, Certification of Quotation to the City of San Juan Capistrano, follows this page. H d=F z APPENDIX C CERTIFICATION OF QUOTATION TO THE CITY OF SAN JUAN CAPISTRANO The undersigned hereby submits its quotation and, by doing so, agrees to furnish services to the City in accordance With the Request for Quotation (RFQ), dated 5/7/15 and to be bound by the terms and conditions of the RFQ. 2. 'This firm has carefully reviewed its quotation and understands and agrees that the City Is not responsible for any errors or ornissions on the part of the proposer and that the proposer is responsible for them, 3. it is understood and agreed that the City reserves the right to accept or reject any or all quotations and to waive any inforrnahty or irregularity in any quotation received by the City. 4: The quotation includes all of the commentary, figures and data required by the Request for Quotation.,. dated 5_ . 5, This firm has carefully read and fully understands all of the items contained in Section 7, Generai Requirement8. This firm agrees to all of the general requirements.except for those disclosed bv the, firm in project quotation, listed on an attachment. 6The quotation shall be valid for 120 days from -�/_22/15 . NaMe,&-,p I)E RLI JTR, de LLAMAS-, _SSW,(XWrES D. (A-uthorized Signature) Type Name:--ANDRMATINI.CKERSON Title: PRESIDEW- 7 bete- 112 C'Ity San Juan Cap *tstrano Sales Tax and Property Tax Audit and Reporting Services And the Statistical Reporting Package for the CAFR COST PROPOSAL Submitted by: HdL.Companies 1340 Valley Vista Dr., Suite 200 Diamond Bar, CA 91765 www.hdicompanies.com Contact; Andy Nickerson 909.861.4335 anickerson@hdlcompanies.com HdIE C0 M PA N IES Proposal for Sales Tax and Property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2095 1. PRICING 1. Sales Tac Services:, a, Audit Recoveries HdL proposes a fee of 15% of all new sales and use tax revenue received by the City (including reimbursement from the sales and use tax compensation fund outlined in Section 97.68 of the Revenue and Taxation Code) as a result of audit and recovery work performed by the firm. This audit fee applies to monies received in the first eight consecutive reporting quarters beginning with the receipt of the audit revenue and includes retroactive back quarter adjustments obtained by HdL. Audit fees are billed only after completion of the audit, submittal of corrections to the BOE and receipt of revenues by the client. 100% of all new revenue generated by HdL flows to the City after the completion of the eight quarters. The fee constitutes the full reimbursement to HdL and covers all direct and indirect costs incurred by the firm under this contract. This includes all salaries of our employees, travel expenses and service contracting costs to the City of San Juan Capistrano under this proposal. Invoices are submitted only for recoveries previously approved by the City. HdL does not bill for audit revenues until the client has actually received said monies. Further, if during the billing cycle, a taxpayer receives a refund for overpayment of taxes generated during that cycle, HdL credits back any proportionate share of the fee that may have been levied. Invoices are submitted quarterly after the City has received the revenue from the audit correction. The invoice includes a printout showing -:,-ie name, address, and sales tax registration number of each company, and the sp :siirc amount of revenue allocated by the BOE to the City for those businesses. If a misallocation correction involves additional revenue from a company that had already been partially allocating revenues to the ;ity, the City and HdL will agree in a Work Authorization, prior to billing, the metho6ology for identifying the incremental revenue attributable to HdL's work. b. Web-Based Application and Sales Tax Mar :agement 10'Prvices HdL's standard fees for an agency of S-.C3 Juan Car strano's size and character is X550 _per month billed quarterly. -":lis includes access to the sales tax web application ongoing analysis, repor`, legislative support and unlimited access to HdL's team members for sales mnd use tax relate, questions, as well as training and support for internal implementation of a pros am of use tax maximization and economic expansion. Hdtv )fOP,4f!5. 9 Proposal for Sales Tax and property Tax Audit and Reporting Services and Statistical Reporting City of San Juan Capistrano May 22, 2015 c. Additional Services Additional services beyond the scope of services in this proposal are priced separately depending on the complexity of tasks involved. Such fees can either be fixed or time and materials. Our current hourly rates are listed below: Principal $225 Per Hour Programmer $195 Per Hour Senior Associate $150 Per Hour Analyst $75 Per Hour 2. Property Tax Services a. Audit Recoveries HdL Coren & Cone proposes a fee of 25% of net tax revenues recovered for the City and/or Successor Agency in the audits performed over the period of time allowable by State statute (current year and 3 prior lien date years) shall be paid to HdL Caren & Cone. Net tax revenues mean the taxes received by the City or Successor Agency through our audit efforts after factoring for tax sharing agreements. b. Web-Based Application and Property Tax Management Services Based on the number of parcels within San Juan Capistrano (11,850), our fee for the services outlined in this proposal for Property Tax Auditing and Reporting Services is $3,150 per quarter, ($12,600/year). c. CAFR Statistical Reporting Package The cost for the Statistical Reporting Package for the Comprehensive Annual Financial Report is $695 annually. d. Additional Services Work that is requested by the City and that is beyond the scope of services outlined in this proposal shall be charged on a time and material basis. No work shall be performed without prior written approval of the City/RDA Successor Agency. Fees for these services are as follows: Partner $225 Per ''riour Principal $195 of Hour Associate $150 ;'�er Hour Programmer $15` Per Hour Senior Analyst $1 : ( Per Hour Analyst JF 65 Per Hour Administrative "'A 45 Per Hour Hourly rates are exclusive of expenses. Exc enses, reasonable travel and lodging fees are billed at 1.15 times actual incurred coy-is. <. ., `; S 2 The following rates supersede rates in Section 1.1.b and Section 1.2.c of the Cost Proposal in Exhibit "B." 1.1.b. Web-Based Anplication and Sales Tax Management Services The initial annual fee for sales tax services is $5,000.00 invoiced quarterly ($1;260 per quarter) and a stepped fee structure over the five-year term of the agreement as follows: Year 1 $5,000 Year 2 $5,000 Year 3 $5,500 Year 4 $6,000 Year 5 $6,500 1.2.c. CAFR Statistical Reporting Package The CAI=R statistical package will be provided at no additional charge. EXHIBIT C