Agenda

Return

C. 34

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	June 16, 2020

Contra

Costa

County

Subject:

Contract Amendment with Hinderliter, de Llamas and Associates

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/16/2020

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Tim Ewell, Chief Assistant County Administrator (925)335-1036

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: June 16, 2020
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract amendment with Hinderliter, de Llamas and Associates (HdL), effective July 1, 2020, to increase the payment limit by $300,000 to a new payment limit of $725,000 and extend the term from June 30, 2020 through June 30, 2023, to continue providing Sales Tax Audit and Information Services, as recommended by the County Administrator.

FISCAL IMPACT:

The contract costs are based on two factors; a flat annual fee for sales tax information/technical assistance, and 15% of new sales and use tax revenues recovered by the County as a result of HdL's audit. Historically, the County has recovered substantially more revenue than the cost of this contract. (100% General Fund)

BACKGROUND:

Hinderliter, de Llamas and Associates (HdL) developed California's first computerized sales tax management program and secured the legislation that allows independent verification of the State Board of Equalization's allocation of sales tax revenues to local governments.

BACKGROUND: (CONT'D)

The County began contracting with HdL in 2002 to monitor sales and use tax receipts, and to identify, correct and recover allocation errors that impact the County's revenue. HdL has been very successful in locating mis-allocated revenues on behalf of the County. Additionally, HdL is an expert in sales tax revenue forecasting. Revenue forecasting has become increasingly difficult over the years due to substantial fluctuations. A lack of monthly or annual revenue patterns require a more in-depth analysis of sales tax revenue. HdL provides in-depth quarterly sales tax information and specialized analysis to the County. The need for detailed sales tax information is essential to revenue forecasting and economic development planning.

CONSEQUENCE OF NEGATIVE ACTION:

The County will not have comprehensive resources to recover mis-allocated sales and use tax revenue.