HomeMy WebLinkAbout24. AMGT FOR PROPERTY TAX CONSULTING SERVICESFinance and Management Services
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Item # 24
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 19, 2021
TOPIC: Approve Agreement with HdL Coren & Cone
AGENDA TITLE:
Approve agreement with HDL Coren & Cone for property tax consulting and auditing
services for up to a five-year period for an amount not to exceed $206,250 (General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute an agreement with HdL Coren & Cone (HdLCC)
for Secured and Unsecured Property Tax Revenue Auditing and Consulting Services for
a period beginning February 1, 2021 through January 31, 2024 for an amount not to
exceed $122,250 which includes a contingency of $52,500, plus two one-year extensions
exercisable by the City Manager for an amount not to exceed $84,000 which includes a
contingency of $37,500 for a total combined amount not to exceed $206,250, subject to
non -substantive changes approved by the City Manager and City Attorney.
Meeting Date Display
DISCUSSION
Property tax is the second largest General Fund revenue source, with an estimated
revenue of $75.9 million for Fiscal Year 2020-2021 and represents 25 percent of the City's
total General Fund revenue. The City has recently concluded its previous property tax
consultant agreement for property tax services, which has been used to provide budget
planning, revenue forecasting, trend analysis, and other property tax services. Therefore,
on October 1, 2020, a Request for Proposals (RFP No. 20-126) for Property Tax Revenue
Auditing Recovery, Reporting, Analysis, and Legislative/State Agency Liaison and
Implementation Monitoring Services was issued. The City received two proposals on
November 2, 2020 and a selection committee from the Community Development and
Finance and Management Services Agencies evaluated them. The evaluation was based
on the following criteria:
• Professional Consultant/Contractor Qualifications 15%
• Professional Consultant/Contractor Experience 15%
• Client References 15%
• Proposed Scope of Services 35%
Approve Agreement with HdL Coren & Cone
January 19, 2021
Page 2
• Cost of Providing Service
The final score was derived by averaging the individual
category and then reaching a cumulative score. Using
average cumulative score would reflect the best proposal.
The results of the RFP Evaluation are as follows:
20%
staff member's rating for each
this methodology, the highest
Rank
Firm
Avery e Sdor Out of 104 pts.
1
HdL Coren & Cone
96
2
Avenue Insights & Analytics, LLC
91
Staff recommends selecting HdLCC as the most responsive, capable and cost effective
respondent to the City's needs. HdLCC has been the property tax consultant for the City
since 2016 and has performed above expectations. Currently they serve as the property
tax consultant for over 250 California agencies, including the cities of Long Beach,
Pasadena, Riverside, Fullerton, Costa Mesa, and Irvine.
The property tax services provided by HdLCC (Exhibit 1) will include, but are not limited
to, the following:
1. Property Tax reporting services, including, but not limited to: City Property Tax
Roll Summary, Top 40 Net Taxable Change History, Median/Average Sales Price
of Property Sales, Top Secured/Unsecured Property Owner/Taxpayer Summary
Reports, General Fund Revenue Forecast Spreadsheet, 5 Year Property Tax
Revenue Projections.
2. Property Tax services for the Successor Agency (formerly Redevelopment),
including, but not limited to the following: tax increment projections for each former
Project Area, cash flow estimates for the Successor Agency by Project Areas,
estimates of property tax venues to be received by the taxing entities from former
Project Areas, and monitor the county distribution of Redevelopment Property Tax
Trust Fund.
3. Access to a web -based software application which will enable staff to access
secured and unsecured tax information; property tax information such as parcel
number, property owner, and property characteristics; and download data and
reports to perform further analysis.
4. Analysis and identification of misallocations by performing secured parcel audits
and unsecured bill audits.
5. Monitor and report on issues related to property tax legislation and regulations that
will impact the City or Successor Agency revenues.
Approve Agreement with HdL Coren & Cone
January 19, 2021
Page 3
Quarterly reporting of appeal filings, transfers of ownerships, and the median and average
sale prices for single family residential properties.
FISCAL IMPACT
Previously, the City charged the cost of service to the revenue account in the General
Fund, and reflected a net revenue number. To provide greater clarity going forward, staff
will report the gross revenue and an offsetting expenditure for the cost of service. The
summary table below includes the base contract fees, the allowances for contingency,
and the optional extension years for a potential grand total of $206,250 associated with
this contract.
Accounting
Accounting
Fi cal
Unit -
Fun'd
Unit;-
�
� �
�
Total
Year
Account
De criptidn
Account
Amount
Contingency
Amount
No.
o.
Description
FMSA
2020-
01110130-
General
Treasury
Contract
$11,625
$15,000
$26,625
21
62300
Fund
Services -
Professional
FMSA
2021-
01110130-
General
Treasury
Contract
$23,250
$15,000
$38,250
22
62300
Fund
Services -
Professional
FMSA
2022-
01110130-
General
Treasury
Contract
$23,250
$15,000
$38,250
23
62300
Fund
Services -
Professional
FMSA
2023-
01110130-
General
Treasury
Contract
$23,250
$15,000
$38,250
24
62300
Fund
Services -
Professional
FMSA
2024-
01110130-
General
Treasury
Contract
$23,250
$15,000
$38,250
25
62300
Fund
Services -
Professional
2025-
01110130-
General
FMSA
$11,625
$15,000
$26,625
26
62300
Fund
Treasury
Approve Agreement with HdL Coren & Cone
January 19, 2021
Page 4
Contract
Services -
Professional
Grand Total: 1 $206,250 1
EXHIBIT(S)
1. Consultant Agreement for HdL Coren & Cone
Submitted By: Kathryn Downs, CPA, Executive Director — Finance and Management
Services Agency
Approved By: Kristine Ridge, City Manager