TITLE
Recommendation to approve and authorize City Manager to execute an agreement with HdL Coren & Cone to provide property tax management and auditing services. (Citywide)
DISCUSSION
On October 16, 2001, the City Council authorized the City Manager to execute an agreement with HdL Coren & Cone (HdL) to provide property tax management and auditing services to the City. The agreement had a one-year term with the provision for four one-year extensions. The last of these extensions has expired.
Property tax revenue is the City's second largest source of General Fund revenue. The City must carefully account for this revenue source to help ensure the City's revenues are not misallocated to other jurisdictions. The County's current method of operation presents delayed transaction information. Retaining HdL's professional services will enhance the City's property tax information, providing solid data for revenue projections, and ensure that misallocations will be discovered and corrected in a timely manner.
Since October 2001, HdL has recovered approximately $250,000 in misallocated property tax revenue for the City. These revenues continue to be captured in subsequent years (to the extent that the misallocated parcels remain on the property tax rolls).
The proposed agreement is for the period of December 1, 2006 through November 30, 2007. It also provides for four consecutive one-year extensions. The terms of the new agreement will be the same as the prior agreement. HdL will be paid a retainer of $19,500 annually and receive 20 percent of the net misallocated revenues actually received by the City's General Fund up to an annual cap of $50,000. The City and the Redevelopment Agency (Agency) will equally share the cost of the retainer-$9,750 each. HdL will also receive 20 percent of the net misallocated revenues actually paid to the Agency; however, the annual cap for the Agency's fee will be $200,000. On
November 20, 2006, the Agency Board authorized its Executi...
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