To: BOARD OF SUPERVISORS
From: Treasurer-Tax Collector
Meeting Date: November 17, 2026
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Department Contact: |
Chamise Cubbison |
Phone: |
707-234-6875 |
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Department Contact: |
Juanita Dreiling |
Phone: |
707-234-6875 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 30 Minutes |
Agenda Title:
title
Discussion and Possible Action Including Acceptance of Treasurer-Tax Collector’s Informational Update and Recommendation to Utilize Third-Party Vendor Services for Collection, Compliance and Administration of Transient Occupancy Tax, Business Improvement District Assessments and Business License Renewals, Including Information on Available Vendors and Associated Costs
(Sponsor: Treasurer-Tax Collector)
Vote Requirement: Majority
End
Recommended Action/Motion:
recommendation
Accept the Treasurer-Tax Collector’s informational update and recommendation to utilize third-party vendor services for collection, compliance and administration of Transient Occupancy Tax, Business Improvement District assessments and Business License Renewals, including information on available vendors and associated costs; direct staff to return to the Board with an Agreement with HdL Companies to implement the HdL Proposal as soon as reasonably possible, and to include any necessary budget adjustments with the 2026-27 mid-year budget report.
End
Previous Board/Board Committee Actions:
During their May 19, 2026 meeting, the Board of Supervisors accepted the Mendocino County Lodging Business Improvement District 2026-2027 Annual Report which recommended contracting with a third-party vendor for collection, enforcement, reporting and administration of BID funds. The Board directed the Treasurer-Tax Collector to research this option and return to the Board by December 31, 2026, with information on associated costs and a plan for potential implementation.
Summary of Request:
The Mendocino County Lodging Business Improvement District 2026-2027 Annual Report recommended contracting with a third-party vendor for collection, enforcement, reporting and administration of BID funds. The collection, enforcement, reporting and administration of “BID” Assessments is closely tied to the same efforts regarding Transient Occupancy Tax, both of which are handled by the Treasurer-Tax Collector’s Office (TTC).
The TTC has been impacted over the last several years by the addition of new fees and taxes to be collected, such as Cannabis, increased Transient Occupancy Tax, Transient Occupancy Tax - Camp, Business Improvement District Assessments. In addition, the implementation of the new property tax system (Aumentum) has not resulted in any efficiencies, but rather an increased number of corrections, supplemental and escape tax bills to invoice, collect, and manage when payment plans are set up. Existing staff have had to absorb tasks related to the new system. This has contributed to an overall decrease in the office’s collection rates for secured and unsecured property taxes.
In response to the direction given by the Board of Supervisors regarding the BID (and to relieve some of the increased workload of staff, improve their ability to focus on collection of property taxes, conduct auctions and manage payment plans), the Treasurer-Tax Collector proposes the outsourcing of two functional areas 1) Business License Annual Renewal Billing and Delinquent Collection, and 2) Monitoring, compliance, collection and audits of Transient Occupancy Tax (TOT) and Business Improvement District (BID) Assessments.
The results of the Treasurer-Tax Collector’s inquiry with the three main third-party vendors that provide most or all of the services needed indicate that the County would benefit from shifting those tasks to HdL Companies. The result would free up County staff for other important collection tasks, reduce the BID-only related costs, improve the availability of data, and likely increase revenue to the County general fund and the Mendocino County Lodging Business Improvement District.
A more detailed analysis is contained in the attached November 2, 2026, Treasurer-Tax Collector Informational Update and Recommendation to utilize third-party services for TOT/BID compliance, monitoring, collection and reporting and Business License Renewal billing and collection activities.
Alternative Action/Motion:
Provide alternate direction
Strategic Plan Priority Designation: A Thriving Economy
Supervisorial District: All
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: General Fund |
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current f/y cost: $150,000 increase to BU1130, Org TC |
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budget clarification: 2026/27 BU1130, Org TC 26/27 increase of $150,000 in year of implementation, offset by additional revenue to ND for TOT. Overall increase to Annual Net County Cost in TC of approximately $110,000, anticipated to be offset by increase in ND revenue for additional TOT revenue. |
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annual recurring cost: Approximately TC Business License $60,000 + CPI, TOT/BID ongoing $222,000 + CPI, depending on total # of registered locations and total # of audits requested. |
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budgeted in current f/y (if no, please describe): No |
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revenue agreement: No |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: No
CEO Liaison: Executive Office
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Deputy Clerk |
Final Status: Item Status |
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Date: Date Executed |
Executed Item Type: item |
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Number: |
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