Title
Staff Report for a City of San Leandro City Council Resolution to Authorize the City Manager to enter into Service Agreement Amendment No.1 with HdL Companies to Continue Providing Business License Tax Administration Services Not to Exceed $135,000 and to Appropriate Funds from the General Fund Economic Uncertainty Fund Balance in the Amount of $135,000
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends (1) that the City Council approve and authorize the City Manager to enter into a service agreement amendment no. 1 with HdL Companies (HdL) to continue providing Business License tax administration and management services. The services will include the processing of new business license accounts and renewals, updates to the applications, reports and website, payment processing, on-line services, business support, and collection services. And, (2) that the City Council appropriate funds of $135,000 from General Fund Economic Uncertainty fund balance for these purposes. Finance staff estimates that revenue generated from the annual business license program will fully offset these costs.
BACKGROUND
On December 3, 2018, the City of San Leandro City Council approved a pilot project to contract with HdL Companies (HdL) to provide business license administration and management services for 2019 through November 30, 2019.
The City Council approved this pilot project in order to protect the City's business license tax revenue stream, supplement staff activities with a contractor that specializes in municipal operations and revenue enhancement services, and to continue to maintain high levels of customer service. The end goals were to increase business license compliance, increase business license revenues, and realize cost savings to the City.
Analysis
The City has utilized HdL's business license software since 2005 and their audit services to investigate businesses operating without City business licenses since 2016. These facts provide HdL a u...
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