City of Long Beach - File #: 23-0972

• File #: 23-0972
• Version: 1
• Name: FM - Contract w/HdL Companies for tax auditing
• Type: Resolution
• Status: Adopted
• File created: 8/21/2023
• In control: City Council
• On agenda: 9/5/2023
• Final action: 9/5/2023
• Title: Recommendation to adopt Specifications No. RFP FM23-225 and award a contract to Hinderliter, de Llamas & Associates (dba HdL Companies), of Brea, CA, for sales, use, and transaction and use tax auditing, projection, recovery, and consultant services, in a total annual amount not to exceed $150,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; Authorize City Manager, or designee, to compensate HdL Companies for its contractual share of new or misallocated sales, use, and transaction and use tax revenue, contingent on actual revenues received from the California Department of Tax and Fee Administration (CDTFA), as a direct result of HdL Companies’ detection and correction efforts pursuant to contract terms, including payment for such revenues received following close of said contract; and Adopt resolution authorizing HdL Companies to examine all records related to sales, use, and transaction and use ta...
• Sponsors: Financial Management

Date	Ver.	Action By	Action	Result
9/5/2023	1	City Council	approve recommendation and adopt	Pass

TITLE
Recommendation to adopt Specifications No. RFP FM23-225 and award a contract to Hinderliter, de Llamas & Associates (dba HdL Companies), of Brea, CA, for sales, use, and transaction and use tax auditing, projection, recovery, and consultant services, in a total annual amount not to exceed $150,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager;

Authorize City Manager, or designee, to compensate HdL Companies for its contractual share of new or misallocated sales, use, and transaction and use tax revenue, contingent on actual revenues received from the California Department of Tax and Fee Administration (CDTFA), as a direct result of HdL Companies’ detection and correction efforts pursuant to contract terms, including payment for such revenues received following close of said contract; and

Adopt resolution authorizing HdL Companies to examine all records related to sales, use, and transaction and use tax collected by the CDTFA. (Citywide)

DISCUSSION
City Council approval is requested to enter into a contract with HdL Companies for sales, use, and transaction and use tax auditing, projection, recovery, and consultant services. City Council approval is also requested to authorize payment to HDL Companies due after the expiration of the contract with the City of Long Beach (City). Compensation is on a contingency basis, as HdL Companies will receive its contractual share of new or misallocated sales, use, and transaction and use tax revenue received by the City as a direct result of HDL Companies’ auditing efforts while under contract with the City. The timing of payments is subject to when the CDTFA reviews, approves, and remits actual revenues to the City. Due to these timing considerations, which may extend beyond the contract end date, authorization is requested to process payments for compensation due after the contract ends. Finally, State law requires that local juris...