City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Finance Director |
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Prepared by: |
Blanca Perry, Administrative Assistant |
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Date: |
December 16, 2025 |
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Subject: |
Approve Agreement with HdL Companies |
Recommendation:
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Approve a five-year professional services agreement with Hinderliter de Llamas and Associates, dba HdL Companies (hereafter "HdL" or "HdL Companies") for Sales and Use Tax Services, Transactions Tax Services, Transient Occupancy Tax Operations Management Services, Short-Term Rental Administrative Services, and Business License Tax and Fees Administration for an amount not-to-exceed $700,000, and authorize the City Manager or designee to execute the agreement and any associated documents.
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Background:
The City currently contracts with HdL Companies to provide Sales and Use Tax Services, Transactions Tax Services (for Measures M and Q), Transient Occupancy Tax Operations Management Services, Short-Term Rental Administrative Services, and Business License Tax and Fees Administration. The City has several contracts with HdL for these services, and the proposed contract consolidates the services into a single contract for easier administration. The proposed agreement does not add additional services.
The number of entities that provide the above services is extremely limited. HdL has a significant client “footprint” in California, working with a vast number of cities for the services mentioned above. They are leading experts in the field of municipal revenues and often retain insight into future legislation that has potential impacts to municipal taxes and fees.
The services for Sales and Use Tax include Economic Analysis, Forecasting Services, reports, and establishing databases with the California Department of Tax and Fee Administration (hereafter “CDTFA”). The services for Business License, Transient Occupancy Tax, and Short-Term Rental Administration services will continue to include online payment processing services, Audit, Collection, and Discovery services as well as audit, operations management services and compliance services.
Fiscal Impact:
Fees associated with HdL's scope of services are included in the annual budget. There are two types of fees associated with the service that HdL provides: fixed fees and contingent fees. Contingent fees, specifically for audits and revenue recovery, are based on a percentage of revenue recovery and are paid only when there is additional net revenue to the City. The net fiscal impact of incurring contingent fees is extra revenue for the City. Hence, contingent fees are not subject to the not-to-exceed amount limitation.
Documents Attached:
1. Attachment 1 - Professional Services Agreement