DATE: August 21, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH HDL COREN & CONE FOR PROPERTY TAX SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve a three-year Professional Services Agreement (PSA) with HdL Coren & Cone for a total of $84,000 and a contingent fee of 25 percent of net tax revenue recovered with the option for the City to grant up to two 1-year extensions for property tax management services; and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The Financial Services Department has been utilizing HdL Coren & Cone for property tax management services since 2009. These are very specialized services, with a limited number of firms providing them. HdL Coren & Cone is a statewide expert in property tax data analysis and has assisted the City in monitoring, identifying, and reconciling local property taxes to the County records. Their expertise has been extremely helpful in preparation of the City’s annual budget.
HdL Coren & Cone will provide a database on the City’s network of all parcels, assessed values, sales and transfer data, owner and situs information, and City revenue. In addition, they will provide annual written reports and analyses, calculations of estimated property tax revenue, development of historical trending reports, listing of filed property tax appeals, along with serving as the City’s resource on questions relating to property taxes.
In 2009, the Financial Services Department issued a Request for Proposals (RFP) for property tax management services. In August 2009, the City Council approved a five-year agreement with HdL Coren & Cone in the amount of $97,500. Since then, the City Council has approved six amendments totaling $181,535 from August 2009 to June 2023.
Under section 28A.24(b) of the Oceanside Municipal Code, the City is authorized to utilize purchasing agreements maintained by other public agencies for the provision of equipment, supplies or services to such agencies. This is often referred to as “piggy-backing” on another agency’s agreement.
HdL Coren & Cone currently holds RFP 24-010 with the City of Santa Ana to provide auditing, revenue recovery, analysis, forecasting, and reporting services for property tax revenues and the Annual Comprehensive Financial Report (ACFR). Said contract is valid through July 16, 2027, and subject to two 1-year optional extensions.
Services would be provided at a rate of $28,000 plus California Price Index (CPI) increase of no more than 5 percent and a contingent fee of 25 percent of net tax revenue recovered which would be administratively approved, subject to the annual review and recommendation by the Director of Financial Services and the annual availability of an appropriation
FISCAL IMPACT
The cost of the PSA is made up of an annual rate of $28,000 and a contingent fee of 25 percent of net tax revenues recovered for the City through audits. Based on revenue recovered over the past five years, the contingent fee is estimated to be approximately $1,300 annually. Additionally, the two optional 1-year extensions will cost $28,000 plus CPI increase that caps out at 5%. This will be charged to 211010101.5305 which has an approved budget of $28,000 in FY 2024-25; therefore, sufficient funds are available.
|
Description |
Amount |
Account Number |
Available Balance |
|
HdL Property Tax |
$28,000 annually |
211010101.5305 |
$28,000 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Jill Moya, Financial Services Director
Reviewed by: Michael Gossman, Assistant City Manager
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Consultant Agreement RFP - Santa Ana
2. HdL Property Tax PSA