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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 4, 2026
To: Honorable Mayor and City Council Members
From: C. Jeannie Fortune, Interim Director of Finance & Management Services
Department: Finance & Management Services
Subject: Approve Amendment No. 1 to the Professional Services Agreement with Hinderliter, De Llamas & Associates for
Sales and Use Transaction Tax Auditing Services,
Including Measure S District Tax, Extending the Term
Through June 30, 2030, Increasing the Not-to-Exceed
Amount by $250,000 for a New Total Contract Amount Not
to Exceed $275,500 (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement with Hinderliter, De Llamas & Associates for Professional Auditing Services related to the City's Sales and Use Transaction Tax, including the Measure S District Tax, extending the agreement term through June 30, 2030; and
2. Increase the original contract not-to-exceed amount by $250,000, resulting in a new total contract amount not to exceed $275,500; and
3. Authorize the City Manager or designee to execute the amendment.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
Approval of Amendment No. 1 extends the City’s existing agreement with Hinderliter, De Llamas & Associates (HdL) for continued allocation audits and recoveries with the California Department of Tax and Fee Administration (CDTFA), quarterly and annual forecasting, database and reporting tools, and Measure S monitoring.
The amendment extends the term through June 30, 2030, and increases the contract 3 1
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amount by $250,000 over five (5) years, establishing a new total not-to-exceed contract amount of $275,500, inclusive of the original agreement amount of $25,500.
These services support accurate revenue allocation, ongoing audit recovery efforts, and informed fiscal planning. Funding for this amendment is available within the General Fund and will be incorporated into annual budget appropriations.
Background
On April 7, 2021, the Mayor and City Council approved a portfolio of revenue audit and recovery agreements via Resolutions 2021-73, 2021-74, 2021-75, and 2021-76. Under Resolution 2021-75, the City executed an agreement with HdL for sales tax analysis and audit services. Concurrently, Resolution 2021-76 authorized the examination of transactions and use tax records from CDTFA, which is required by law to permit contracted consultants to access confidential taxpayer data (Rev. & Tax. Code §7056).
Those actions followed an RFP issued September 3, 2020, and established HdL as the City’s specialist for sales/use and district (Measure S) tax audits, allocation corrections, and forecasting. Since that time, HdL has provided ongoing audit, recovery, and reporting support that enhances revenue compliance and informs budget development.
Discussion
Amendment No. 1 continues the City’s existing relationship with HdL by formalizing a defined term through June 30, 2030, to ensure uninterrupted sales, use, and Measure S transaction tax auditing, analysis, and reporting services. The original agreement provided that the term would continue through completion of services as described in Exhibit “A”, without a specific end date. To provide administrative clarity and establish a defined multi-year term aligned with the City’s fiscal planning cycle, the amendment sets an effective date of July 1, 2025, and extends the agreement through June 30, 2030. HdL has continued providing services without interruption, and sufficient budget authority exists within the General Fund to support those services.
Amendment No. 1 modifies the existing Professional Services Agreement as follows:
Extends the agreement term through June 30, 2030, to ensure continuity of sales, use, and Measure S transaction tax auditing and analytical services. Increases the contract amount by $250,000 for the five-year extension period. Establishes a new total contract amount not to exceed $275,500, inclusive of the original $25,500 agreement amount.
All other terms and conditions of the original agreement remain unchanged. 2021-2025 Strategic Targets and Goals
Approval of a Professional Agreement with Hinderliter, De Llamas & Associates aligns with Goal 1. Improved Operational and Financial Capacity. 3 1
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Fiscal Impact
The agreement includes a fixed monthly fee of $1,007.52, invoiced quarterly and subject to annual CPI adjustment, plus contingent audit recovery fees equal to 15% of new Bradley-Burns revenues and 25% of new Measure S revenues attributable to the Consultant’s work. Total compensation under the agreement is subject to a not-to- exceed amount of $275,500 over the five-year term. Funding for FY 2025/26 is available in the General Fund within existing appropriations.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement with Hinderliter, De Llamas & Associates for Professional Auditing Services related to the City's Sales and Use Transaction Tax, including the Measure S District Tax, extending the agreement term through June 30, 2030; and
2. Increase the original contract not-to-exceed amount by $250,000, resulting in a new total contract amount not to exceed $275,500; and
3. Authorize the City Manager or designee to execute the amendment.
Attachments
Attachment 1 Professional Services Agreement with Hinderliter, de Llamas & Associates (HdL), including Exhibit A (Scope of Services and Schedule of Charges)
Attachment 2 Amendment No. 1 to the Professional Services Agreement with Hinderliter, de Llamas & Associates
Ward:
All Wards
Synopsis of Previous Council Actions:
April 7, 2021 The Mayor and City Council adopted Resolution No. 2021-75 authorizing the execution of a Professional Services
Agreement with Hinderliter, De Llamas & Associates for
sales and use tax auditing and analysis services.
April 7, 2021 The Mayor and City Council adopted Resolution No. 2021-76 authorizing examination of transactions and use tax records from the California Department of Tax and Fee
Administration.
CC: Eric Levitt, City Manager