To: MAYOR AND CITY COUNCIL
From: STEPHANIE MEYER, FINANCE DIRECTOR
TITLE
title
APPROVE AN AGREEMENT WITH HDL COREN AND CONE, INC. FOR PROPERTY TAX MANAGEMENT, DATA ANALYSIS, PROPERTY DATABASE, AND PARCEL AUDIT SERVICES IN A FIVE-YEAR AMOUNT NOT TO EXCEED $128,679, PLUS 25% OF FUNDS RECOVERED FROM IDENTIFYING AND CORRECTING ANY MISALLOCATED PROPERTY TAXES, FOR THE TERM AUGUST 17, 2026 TO AUGUST 16, 2031
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EXECUTIVE SUMMARY
The City’s contract with HdL Coren and Cone (“HdLCC”) to provide property tax management, data analysis, reporting, and parcel auditing services has expired. As a result, the Financial Services Department requested quotes from HdLCC and Neumo (formerly known as Avenu Insights & Analytics). Neumo did not respond to multiple requests for a proposal by the Financial Services Department.
Property tax revenue is the City’s largest single revenue source, contributing approximately $39.8 million, or about 46% of the City’s General Fund tax revenue in the FY 2026-27 Adopted Budget. HdLCC’s services also support the City in analyzing and forecasting other property tax related revenues, including Property Tax in Lieu of Vehicle License Fee (VLF) and Property Transfer Tax. The City relies on specialized property tax consulting, reporting, and auditing services to assist the City with budget forecasting; fiscal and economic planning; and to recover any misallocated property tax revenues.
HdLCC has consistently provided the City with reliable and high-quality specialized property tax consulting services for many years. These services also include access to a proprietary, web-based software database with the City’s parcel and property tax data and information that is utilized by multiple City Departments. HdLCC is recognized as one of the most experienced and reputable firms in California that performs property tax consulting, data analysis and parcel auditing. HdLCC currently provides these services to over 300 cities and special districts in California, including neighboring cities such as El Segundo, Manhattan Beach, Hermosa Beach, and Torrance.
Staff recommends the City Council approve a five-year agreement with HdLCC to continue to provide the City with property tax consulting and auditing services, and access to their web-based property database.
BACKGROUND
Property tax revenues are the City’s largest tax revenue source. In an effort to both protect and enhance these critical operating revenue sources, the City has contracted with HdLCC to provide property tax consulting, analysis, forecasting, auditing and recovery services. City Council last approved an agreement with HdLCC on August 17, 2021. Throughout the life of that Agreement, HdLCC has consistently provided accurate and timely reporting that has helped the City to forecast its primary revenue sources.
HdLCC has extensive qualifications and expertise in the area of property tax consulting and parcel auditing services with decades of experience serving California cities and counties. The firm employs industry specialists with direct knowledge of county assessor practices, allocation formulas, and revenue recovery methods. HdLCC has consistently provided the City with high-quality property tax consulting and parcel auditing services.
Some of the numerous services and reporting provided by HdLCC to the City include, but are not limited to, the following:
• Proprietary Property Tax Database: Staff access to a web-based software database, updated monthly, containing all City parcels and integrated property tax information
• Budget Forecasting: 1-year and 5-year revenue projections for the General Fund, Successor Agency, and VLF in Lieu Revenues. Estimate of annual property tax revenue anticipated to be received by the City and forecasting for future years
• Annual Property Tax Roll Audits: Comprehensive analysis of secured and unsecured rolls to identify, report, and correct misallocation errors or county discrepancies
• Reporting: Annual property tax listings and reporting services, including quarterly tracking of local property transfers and assessment appeals. Historical trending reports involving taxable assessed values for the City, median and average sales prices, foreclosure activity, bank owned property, and related economic trends
• Top Taxpayer Profiles: Listings of major property taxpayers, including exact assessed values and property use code designations
• On-Call Consultation: Direct, ongoing property tax consultation to assist City staff with property tax questions, issues, and data inquiries
• Optional Services: Additional research, attendance at Council or Commission meetings, or any out-of-scope work requested by the City are billed at hourly rates.
A critical component of this Agreement is the ability of staff to access HdLCC's proprietary, web-based property tax database. The platform maps the City's specific parcels and compiles comprehensive local property tax information. This database is utilized on a daily basis by Community Development for their Building and Planning Divisions, the Public Works Engineering Division, and Business Licensing in the Financial Services Department to verify property ownership, valuations, and parcel details.
The fees for HdLCC’s property tax management, parcel auditing services and web-based property database total $128,679 for known expenses as well as a percentage of funds recovered due to corrections and misallocations:
1. Basic Services: $21,035 for Year 1; $21,666 for Year 2; $22,316 for Year 3; $22,986 for Year 4; and $23,676 for Year 5
2. Reimbursable Expenses: $2,000 for out-of-pocket expenses.
3. Contingent Services: Twenty-five percent (25%) of funds recovered from identifying and correcting misallocated property taxes resulting from annual property tax audits and analysis.
4. Optional Services: $15,000 for optional services, as needed.
Staff recommends approval of the proposed Agreement with HdLCC to provide property tax management, data analysis, reporting, and parcel auditing services for the City.
COORDINATION
The Agreement was reviewed and approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Funding of $21,035 for Basic Services in Year 1 of the agreement, 25% of funds recovered for Contingent Services, and any cost for Optional Services (not to exceed $15,000) is available in the Financial Services Department FY 2026-27 operating budget. Costs for years two through five of the Agreement will be included in the Department’s future year budgets.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Agmt - HdL Coren & Cone, with Insurance
• Property Tax Client List - HdL Coren & Cone, July 2026