Resolution No. 2026-079
Resolution No. 2026-079
June 17, 2026
RESOLUTION NO. 2026-079
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING AMENDMENT NO. 2 TO THE
PROFESSIONAL SERVICES AGREEMENT WITH HINDERLITER, DE
LLAMAS & ASSOCIATES AND AUTHORIZING RELATED BUDGET
AMENDMENTS
WHEREAS, the Mayor and City Council (“Council”) adopted Resolution No. 2010 -351 dated October 18, 2010, authorizing the execution of an agreement with Hinderliter, de Llamas & Associates (“Consultant”) to provide analysis and audit services for City transactions a nd use tax collected by the State Board of Equalization Property Tax Audit and Analysis Services; and WHEREAS, the Council adopted Resolution No. 2020 -249 dated October 7, 2020, establishing the Measure “S” Expenditure Policy which provides that Measure “S” revenues are general purpose revenues to be used for lawful municipal purposes with enhanced transparency, accountability, and budgetary oversight (including tracking revenues and expenditures, annual budgeting, and audit requirements) pursuant to Chapter 3.56 of the San Bernardino Municipal Code (Bradley-Burns Uniform Local Sales and Use Tax Law); and WHEREAS, the City and Consultant entered into an agreement dated April 7, 2021 (“Agreement”), for the purpose of Consultant providing professional auditing and recovery services related to the City’s sale and use transaction tax (“Services”) utilizing California Department of Tax and Fee Administration authorized access; and WHEREAS, the City and Consultant entered into Amendment No. 1 dated July 1, 2025, to extend the term and increase the not-to-exceed (“NTE”) compensation amount; and WHEREAS, the Agreement includes compensation provisions providing for contingency- based audit recovery fees calculated as a percentage of revenues recovered for the City as set forth in Exhibit A; and
WHEREAS, the Council desires to clarify the compensation structure to provide for a base contract amount subject to a NTE limitation and contingency-based audit recovery fees calculated as a percentage of revenues recovered consistent with Exhibit A; and WHEREAS, the City has received and/or expects to receive significant recovered tax revenues attributable to Consultant’s services, and an associated Consultant invoice may exceed currently budgeted amounts; and
Resolution No. 2026-079
Resolution No. 2026-079
June 17, 2026
WHEREAS, in order to ensure timely and lawful payment of such invoice, a budget amendment is necessary to appropriate sufficient funds for contingency-based audit recovery fees in the applicable fiscal year; and
WHEREAS, all payments under the Agreement, including contingency -based compensation, remain subject to annual appropriation and the City’s fiscal controls.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Incorporation of Recitals . The above recitals are true and correct, and are incorporated herein by this reference.
SECTION 2. Approval of Amendment. The Council hereby approves Amendment No. 2 to the Agreement as set forth in Exhibit A, attached hereto and incorporated herein by reference.
SECTION 3. Findings Regarding Compensation Structure. The Council hereby finds and determines that (a) the contingency -based compensation tied to revenue recovery serves a valid public purpose by enabling the City to recover revenues that would not otherwise be received and aligns Consultant compensation wi th measurable results; (b) such compensation is based on objective, verifiable formulas applied to actual revenues received by the City and does not constitute an unlawful delegation of governmental authority; and (c) the Agreement, as amended, maintains appropriate City oversight and control over audit activities and payment processing.
SECTION 4. Authorization to Execute . The City Manager, or designee, is hereby authorized to execute Amendment No. 2 and any related documents necessary to effectuate its terms.
SECTION 5. Budget Amendment Authorization . The Council hereby authorizes the Director of Finance and Management Services , or designee, to amend the Fiscal Year 2025/26 budget as follows: (a) increase revenue appropriations in the appropriate General Fund and/or Measure “S” fund accounts to reflect recovered tax revenues received by the City in the amount of $2,661,843.00 ; (b) increase expenditure appropriations in the corresponding professional services or audit services account(s) in an amount sufficient to pay contingency -based audit recovery fees owed to Consultant, including amounts necessary to cover any outstanding or pending invoice associated with such recovered revenues in the amount of $570,191.34 ; and (c) make any technical adjustments, transfers, or reclassifications necessary to properly account for such revenues and expenditures in accordance with the City’s financial policies and Measure “S” Expenditure Policy.
SECTION 6. Fiscal Controls. All payments made pursuant to the Agreement shall remain subject to annual budget appropriation, the City’s standard fiscal controls and procedures, and applicable laws governing the expenditure of public funds.
Resolution No. 2026-079
Resolution No. 2026-079
June 17, 2026
SECTION 5. California Environmental Quality Act (“CEQA”) . The Council finds that adoption of this Resolution is not subject to CEQA pursuant to California Public Resources Code section 21065 and CEQA Guidelines sections 15060(c)(2), 15060(c)(3), and 15378 because it does not constitute a “project” as defined by CEQA; and will not result in a direct or reasonably foreseeable indirect physical change in the environment.
SECTION 6. Severability. If any section or provision of this Resolution is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Resol ution shall remain valid. The Council hereby declares that it would have adopted this Resolution, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation.
SECTION 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution; cause the same to be entered among the original resolutions of the City; and make a minute of the passage and adoption thereof in the records of the proceedings of the Council i n the minutes of the meeting at which time same is passed and adopted.
SECTION 8. Effective Date. This Resolution is effective immediately upon adoption.
APPROVED and ADOPTED by the Council and signed by the Mayor, and attested by the City Clerk this17th day of June 2026.
Helen Tran, Mayor
City of San Bernardino
Attest:
Telicia Lopez, CMC, City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
Resolution No. 2026-079
Resolution No. 2026-079
June 17, 2026
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Telicia Lopez, CMC, City Clerk , hereby certify that the attached is a true copy of Resolution No. 2026-079 adopted at a regular meeting held on the 17th day of June 2026 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
KNAUS _____ _____ _______ _______
FLORES _____ _____ _______ _______
ORTIZ _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this 18th day of June 2026.
Telicia Lopez, CMC, City Clerk