Report to Mayor and City Council
Tuesday, May 18, 2021
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AGREEMENT FOR CONTRACT SERVICES TO HINDERLITER, DE LLAMAS AND ASSOCIATES FOR PROFESSIONAL AUDIT AND ANALYSIS OF CITY SALES AND USE TAX (CITY COUNCIL)
Body
I. SUMMARY
The City issued a Request for Proposal ("RFP") on July 30, 2020 seeking qualified firms to provide Sales Tax revenue auditing and analysis services. The auditing and analysis of the City's sales tax is currently contracted with Hinderliter, de Llamas and Associates ("HdL"). The present contract was approved and issued in June 20, 2017, and a one-year contract amendment approved in June 2020, which is set to expire in June 2021.
Two proposals were received by the RFP deadline of September 17, 2020. A selection committee reviewed the proposals and evaluated each firm on the criteria set forth in the RFP. Based on the committee's recommendation of HdL, staff is requesting a contract service agreement for three years with two one-year extensions, for a base amount of $9,600 annually, not to exceed $28,800 over three years with the option to extend the term for two additional one-year periods; plus 15% of new sales and use tax revenue as a result of the audit and recovery work performed by the firm (Exhibit 1). If the City exercises the two one-year optional extensions, the additional cost will be $19,200, for a five-year total amount of $48,000.
To ensure the correct allocation of sales and use taxes to the City of Carson, access to sales and use tax collection data and analytics, insight into revenue trends and projections and provide leads for business license discovery, contracting with Hinderliter, de Llamas and Associates (HdL) is requested. The costs include the following services:
* Collect City, county and state sales and use tax dates from the appropriate governmental agencies and provide comparison information relating to the City.
* Audit and analyze City sales and use tax revenue source...
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