TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
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Agreement with Hinderliter, De Llamas and Associates for Sales and Use Tax Audit and Information Services.
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2. SUMMARY
The City's Sales and Use Tax Audit and Information Services contract expired on June 30, 2024. Staff recommends the City renew its relationship with Hinderliter, De Llamas and Associates for Sales Tax Audit and Information Services through June 30, 2029, with options to extend the term of this agreement for an additional five 3-year terms upon the same terms and conditions.
3. RECOMMENDED ACTION
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Approve the agreement with Hinderliter, De Llamas and Associates for Sale and Use Tax Audit and Information Services; and authorize the Mayor and City Clerk to execute on behalf of the City.
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4. FISCAL IMPACT
The first-year expense for this agreement is $11,160 and will be funded through the General Fund (100):
100.1201.51670.00000 Other Professional & Consulting Services
Agreement includes annual increases based on the Consumer Price Index (CPI) if applicable.
5. STRATEGIC PLAN GOALS
2: Be a fiscally healthy community
d: Effectively manage and develop City assets.
6. DISCUSSION AND BACKGROUND
In 2019, the City renewed its contract with Hinderliter, De Llamas and Associates (HdL) to provide sales and use tax analysis, forecasting, and audit services. This contract expired on June 30, 2024. HdL has consistently provided high quality customer service throughout the term of their agreement. They identify and recover sales and use tax allocation errors, report deficiencies, and prepare necessary case submittals to the California Department of Tax and Fee Administration. HdL has recovered approximately $2.8 million in sales tax revenue over the last five years for the City. The agreement is for a flat fee of $930 a month, or $11,160 annually, for the first year with a Consumer ...
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