To: Sonoma County Board of Supervisors
Department or Agency Name(s): Auditor-Controller-Treasurer-Tax Collector
Staff Name and Phone Number: Erick Roeser, 565-3285
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
First Corporate Solutions, Inc. Agreement
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Recommended Action:
Recommended action
Authorize the Auditor-Controller-Treasurer-Tax Collector to execute an agreement with First Corporate Solutions, Inc. for Tax Sale Services for the period of July 1, 2025 to June 30, 2028 in an amount not to exceed $150,000.
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Executive Summary:
The Auditor-Controller-Treasurer-Tax Collector is requesting Board approval of an agreement with First Corporate Solutions, Inc. to provide tax sale support services for tax defaulted properties with delinquent unpaid taxes for five or more years. The scope of work includes title research and notification of property owners to ensure that the property does not have disqualifying conditions that would render it ineligible for sale, but does not include the actual sale of the tax defaulted properties. This agreement would normally fall under Department Head delegated authority, but the vendor is requesting an exception to the County’s standard indemnification language by limiting liability to the $5,000,000 covered by the vendor’s Errors & Omissions insurance policy, and therefore Board approval is required to accept this term. Both County Counsel and the County’s Risk Management division have approved this limitation of liability.
Discussion:
In accordance with California Revenue and Taxation Code (RTC) section 3691, et. seq., the Auditor-Controller-Treasurer-Tax Collector (ACTTC) has the authority to sell tax-defaulted properties that are five years or more delinquent on secured property taxes by way of public auction or sealed bid. To prepare for either of these processes, there are strict statutory requirements around both title research and notification of property owners to ensure that the property does not have disqualifying conditions that would render it ineligible for sale.
There are a very limited number of vendors that provide a comprehensive title search and notification service and the vendor that ACTTC has used for over ten years, Tax Sale Services of California, LLC, is no longer offering these services. First Corporate Solutions, Inc. currently provides these specialty services to at least fifteen other California counties. First Corporate Solutions, Inc. does not conduct the public auction or sealed bid to sell tax defaulted properties.
Prior to First Corporate Solutions, Inc conducting any services, such as title research or notification to property owners regarding a defaulted tax sale, ACTTC staff must first bring a list of all tax defaulted parcels that will be offered for sale at the next scheduled public auction to the Board of Supervisors for approval.
Under Department Head delegated authority, ACTTC began the process of entering into an agreement with First Corporate Solutions, Inc. but received the request of alternate indemnification language that limits their liability to the current $5,000,000 limit on their Errors & Omissions insurance policy. County Counsel has reviewed and recommended department proceed with request for Board approval of the limitation of liability provision and the County’s Risk Management division has also approved this. Staff is not aware of a claim or lawsuit ever being filed against the County related to improper process leading up to a tax defaulted sale.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
None.
Fiscal Summary
|
Expenditures |
FY24-25 Adopted |
FY25-26 Projected |
FY26-27 Projected |
|
Budgeted Expenses |
$0 |
$50,000 |
$50,000 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$0 |
$50,000 |
$50,000 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
$0 |
$50,000 |
$50,000 |
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
$0 |
$50,000 |
$50,000 |
Narrative Explanation of Fiscal Impacts:
The department is requesting not-to-exceed amount of $50,000 annually for three years in alignment with current Department Head authority. The actual amount expended will be dependent on the number of defaulted properties eligible for auction. Costs are recovered as fees charged as part of sale and/or redemption processes.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
Draft Agreement with First Corporate Solutions, Inc.
Related Items “On File” with the Clerk of the Board:
None.