TITLE
Recommendation to authorize City Manager to execute an agreement with Hinderliter, de Lamas and Associates (HdL) for continued tax revenue recovery and consultant services for an amount not to exceed $84,000 annually for a three-year term, ending November 30, 2009; and authorize City Manager to execute amendments to extend the term. (Citywide)
DISCUSSION
Since 1983, the City has contracted the services of revenue recovery firms to provide consulting and tax review services. Hinderliter, de Lamas and Associates (HdL) has been retained by the City since July 2000 to provide the technical expertise to perform these services, which are not available within the City. HdL provides a high level of service in sales and property tax management, including strong analytics, forecasting tools and reports, as well as immediate access to professional staff. Further, the fee for this service is predominately performance-based and contingent upon HdL's reviews producing new revenue that would not otherwise have been realized by the City.
This matter was reviewed by Senior Deputy City Attorney Donna F. Gwin on November 6, 2006 and Budget Management Officer David Wodynski on November 10, 2006.
TIMING CONSIDERATIONS
City Council action is requested on November 21,2006 to authorize the timely renewal of the current agreements.
FISCAL IMPACT
HdL's compensation for conducting the sales/use tax reviews will be 15 percent of the new revenue collected in the first eight reporting quarters, three retroactive quarters, plus a monthly fee of $750 for software, analysis and consultant services. As a requisite payment, the new revenue must be a direct result of HdL's detection, documentation and correction of the related point-of-sale/use reporting error.
Additional annual revenue recovery is estimated to be as high as $500,000 annually and HdL's corresponding compensation is estimated at $84,000. Appropriation exists to support this contract in the General Fund (GP) in the D...
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