Agmt 2004 MBIA MuniServices Company

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• EXHIBIT A PROPERTY TAX ADDENDUM MBIA MuniServices Company (MMC) shall provide to the City of San Leandro (CITY), MMC's Property Tax Compliance Services which consists of Discovery, Audit and Recovery Services. OBJECTIVES AND METHODS MMC's property tax audit assists CITY in recovering all of the revenue to which it is entitled from its Property Tax and RDA Tax Increment. Administrative errors and omissions combined with general compliance problems are inevitable given the non-standard, complex nature of state and local property taxes. Error rates rise with respect to property tax applicability, rates, exceptions, exemptions, quirks and other inconsistencies. Because there are time limitations on the CITY's ability to recover misallocated revenue, prompt correction of these errors and omissions is essential to maximizing revenue potential. The following steps are taken in conducting MMC's Property Tax Audit: o Contact CITY's designated staff to review service objectives, scope, workplan schedule, public relations and logistical matters. MMC will also establish an appropriate liaison with the CITY's coordinator and logical checkpoints for progress reviews. o Represent the CITY for purposes of examining records pertaining to property tax and RDA tax increment to identify and confirm any errors/omissions that are resulting in deficient payment of tax revenues to the CITY. o For each error/omission identified and confirmed, prepare documentation to substantiate and facilitate recovery of revenue due from prior periods plus applicable interest and penalties (collectively "Misallocations"). o Meet with designated CITY official(s) as necessary to review our findings and recommendations. o Prepare and forward to the appropriate parties requests for corrective action and revenue recovery for Misallocations. The date appropriate parties receive and acknowledge these requests is the Date of Knowledge. o Provide additional assistance as necessary to support the CITY in recovering and preventing tax allocation errors/omissions. From the Date of Knowledge, the County Assessor's office will review the identified Misallocations, and for those Misallocations for which a correction is required, an Assessor's Roll Correction (ARC) will be processed by the County correcting those Misallocations, typically triggering a reallocation. The Roll Year in which the assessments first appear corrected is the Date of Correction. Corrected assessments result in proper allocations in subsequent Roll Years ("Corrected Allocations"). Specifically, MMC shall: o Establish a comprehensive inventory of every parcel located within the City and within the RDA project(s), including the database elements needed to facilitate a comparison analysis with County secured and unsecured taxable values. o Conduct an audit of the CITY local secured and unsecured valuations, on a parcel-by- parcel basis to determine tax rate area (TRA) miscoding errors and omissions. TIMING AND REPORTING