TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
SUBJECT:Title
Renewal of Five Year Professional Services Agreement with HdL, Coren & Cone to Provide Property Tax Reporting, Analytic and Audit Services for an Estimated Cost of $60,500 (Finance Director Moe).
APPROVE
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council renew a new five year agreement with HdL, Coren & Cone for property tax reporting, analytic and audit services for an estimated cost of $60,500.
Body
FISCAL IMPLICATIONS:
Funds are budgeted annually for this service. The total cost of the five year contract, which includes consumer price index adjustments in years four and five (estimated at 3% in those years), is $60,500. Years one through three are fixed at $11,880 per year.
BACKGROUND:
The City's largest General Fund revenue source is Property Tax (41%). Analyzing, auditing and reporting on these revenues is an important function that assists the City in budgeting, forecasting and tracking trends for this key source. The firm of HdL, Coren & Cone has provided these services to the City since 1996.
DISCUSSION:
The scope of these professional services include providing:
· a property tax database available through an online property tax application;
· listings of the major property owners in the City, including the assessed value of their properties, and an estimate of the property taxes;
· listings of property tax transfers which occurred since the prior lien date;
· comparisons of property within the City by county-use code designation;
· listings by parcel of new construction activity between tax years to provide reports for use in the City's preparation of Gann (Propositions 4 and 111) State Appropriation Limit calculations;
· estimates of property tax revenue anticipated to be received for the fiscal year;
· forecasts of estimated general fund property tax revenue for future fiscal years;
· historical trending reports involving taxable assessed values for the City, median and average sales prices, foreclosure activity and related economics trends;
· analyses based on geographic areas designated by the City to include assessed valuations and square footage computations for use in community development planning;
· and quarterly listings of property tax appeals filed on properties in the City.
Staff is recommending that the City Council renew a five year professional services agreement with HdL, Coren & Cone for property tax analytic, audit and reporting services. This recommendation is based on the excellent service they have provided to the City over many years, which staff relies upon for analyzing, forecasting and tracking the City's largest General Fund revenue source. However, if at any time the City is not satisfied with HdL, Coren & Cone's services it may terminate the contract with forty-five days written notice.
Contracts for professional services are exempt from the City's bidding requirements. Additionally, based on the successful association the City maintains with HdL, Coren & Cone, staff believes it is the City's best interest to continue this relationship. Finally, staff believes that seeking proposals will not result in the City obtaining improved service and/or significantly lower costs.
The annual cost of the contract for the first three years is $11,880 per year, subject to consumer price index adjustments in years four and five. The estimated total for five years is $60,500.
The City Attorney has reviewed the agreement and has approved it as-to-form.
Attachment:
1. Agreement for Property Tax Consulting/Audit Services