TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Acting Finance Director
SUBJECT:Title
Consideration of a Resolution Approving the Renewal of a Five-Year Professional Services Agreement with HdL Coren & Cone to Provide Property Tax Reporting, Analytical and Audit Services for an Estimated Cost of $80,250 (Budgeted) (Acting Finance Director Bretthauer).
ADOPT RESOLUTION NO. 25-0057
Body
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RECOMMENDATION:
Staff recommends that City Council adopt Resolution No. 25-0057 approving a Five-Year Professional Services Agreement with HdL Coren & Cone for property tax management, information and audit services for an estimated cost of $80,250.
FISCAL IMPLICATIONS:
Funds are budgeted annually for this service. The cost of the five-year agreement consists of an annual base fee of $16,050, plus an annual California Consumer Price Index (CCPI) adjustment.
BACKGROUND:
The City’s largest (37%) General Fund revenue source is Property Tax. In fiscal year 2026, the City expects to receive Property Taxes totaling $47.0 million. Analyzing, auditing and reporting on these revenues is an important function that assists the City in budgeting, forecasting and tracking trends for this key funding source. The firm of HdL Coren & Cone has provided these services to the City since 1996.
DISCUSSION:
The scope of HdL Coren & Cone’s professional services includes providing:
• A property tax database available through a web-based software application;
• Monthly/quarterly reports and system updates;
• Listings of the major property owners in the City, largest parcel value changes, property tax appeals and property tax transfers;
• Median sale price data for current year and prior years for comparison;
• Audits of secured and unsecured property tax rolls to identify and correct errors;
• One and five-year budget projections for City General Fund; and
• Property tax newsletter for distribution on City website.
Staff recommends the City Council renew a five-year professional services agreement with HdL, Coren & Cone. This recommendation is based on the excellent service they have provided to the City over many years. HdL, Coren & Cone is the industry leader in property tax analysis and reporting, and the data they provide is relied upon for forecasting and tracking the City’s largest General Fund revenue source.
If approved, the agreement will be in effect through June 5, 2030. Professional services are exempt from the City’s bidding requirements.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it consists of an administrative activity of government that will not result in direct or indirect physical changes in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 25-0057
2. Agreement - HdL Coren & Cone