Title
Staff Report for a City of San Leandro City Council Resolution to Authorize the City Manager to enter into a Service Agreement with HdL Companies to Provide Business License Tax Administration Services Not to Exceed Amount of $125,000 and to Appropriate Funds from the General Fund Economic Uncertainty Fund Balance in the Amount of $125,000
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends (1) that the City Council approve and authorize the City Manager to enter into a service agreement with HdL Companies (HdL) to provide Business License tax administration and management services. The services will include the processing of new business license accounts and renewals, payment processing, on-line services, business support, and collection services. And, (2) that the City Council appropriate funds of $125,000 from the General Fund Economic Uncertainty fund balance for these purposes. Revenue generated from the annual business license program will fully offset these costs.
BACKGROUND
The City of San Leandro collects and processes approximately 9,900 current and active business license accounts. It results in tax revenues of approximately $6.3 million.
The administration, processing, and collection of business licenses is labor intensive, and is difficult to conduct in-house with current staffing levels. Therefore, a pilot project is recommended by staff in order to protect the City's business license tax revenue, and maintain high levels of customer service. It is critical to supplement staff activities with a contractor that specializes in municipal operations and revenue enhancement services.
The business license process by HdL uses a turnkey approach. Staff believes that this pilot project will improve efficiency in the administration and collection of the City's business license taxes and fees and will help to increase overall taxpayer compliance into the future. The end result will be an increase in business license compliance, increased...
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