Committee authorizes five-year, up-to-$165,000 contract for personal-property audits

The Finance & Claims Committee authorized the mayor to sign a five-year agreement with Charles B. Feldman & Associates LLC for personal-property audits, with a five-year ceiling not to exceed $165,000.

Paul Gorman described the audits’ purpose: businesses are required to file annual personal-property declarations and audits identify underreported or omitted taxable personal property (for example, leasehold improvements and tenant fit-outs). He provided historical figures from calendar years 2022–2024 showing additional assessments and tax yield resulting from prior audits and said the audits often produce assessment increases that recur in subsequent years.

Gorman reported that the city has previously contracted audit volumes between about 30–41 audits per year and that the proposed contract was priced lower than prior sole-source arrangements. He said revenue from audits often exceeds the contract cost over time and that audit selection is a strategy between Gorman, the consultant and personal-property staff, based on filings that look anomalously low compared with industry norms.

The committee moved and approved the contract authorization by voice vote; staff said they would manage annual volumes to remain within the $165,000 five-year cap and provide oversight on audit selection criteria.