SR - AGR-3090.C - SALES USE AND TRANSACTIONS TAX AUDIT� pF 0 11,9
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CCt�NTY CP
AGENDAITEM
Date: July 8, 2014
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: William M. Kolbow,
Finance Director OVA- q411-
Reviewed/Verifi d By:
City Manager
Finance Direct r
To Be Presente
X Cons Calendar _
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Crates _
Public Hrgs
Admin Reports
Plan/Environ
i. susJECr
Approve renewal of contract with Hinderliter, de Llamas and Associates (HdL) for Sales,
Use and Transactions Tax Audit and Information Services.
2. SUMMARY
The City's Sales and Use Tax Audit and Information Services contract expired on June 30, 2014.
Staff is recommending the City renew its relationship with HdL for Sales Tax Audit and
Information Services through June 30, 2019 and with an option to extend the term of this
agreement for an additional five years upon the same terms and conditions.
3. RECOMMENDATION /ACTION
Approve the Agreement for Sales and Use Tax Audit and Information Services between the City
of Orange and HdL and authorize the Mayor and the City Clerk to execute the agreement on
behalf of the City.
4. FISCAL IMPACT
Funds are available for Sales and Use Tax Auditing in account 100.1231.51670 (General
Accounting — Other Professional and Consulting Services).
15. STRATEGIC PLAN GOALS)
2d. Be a Fiscally Healthy Community — Effectively manage and develop City assets.
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6. GENERAL PLAN IMPLEMENTATION
N/A
7. DISCUSSION and BACKGROUND
In 2009, the City renewed its contract with HdL for Sales and Use Tax Audit and Information
Services. This contract expired on June 30, 2014. During the past years, HdL has provided
exceptional service to the City. HdL has agreed to charge a fixed fee of $700 per month for the
first year with a Consumer Price Index (CPI) increase annually for the remaining four -year term.
In addition, sales tax recovery will be charged at 15% of any monies found. Therefore, staff is
recommending their contract for an additional five -year period with an option for an extension
term of five more years upon the same terms and conditions.
The City Attorney's office has reviewed and approved the contract.
7. ATTACHMENTS
Agreement for Sales, Use and Transactions Tax Audit and Information Services
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