TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Isidro Figueroa, Community Development Director
DATE: October 9, 2024
SUBJECT: APPROVAL OF CONTRACT RENEWAL WITH HINDERLITER,
DE LLAMAS AND ASSOCIATES TO PROVIDE BUSINESS
LICENSE SOFTWARE SERVICES THROUGH NOVEMBER 11,
2027
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
BACKGROUND
On November 11, 2020, the City Manager signed a Professional Services Agreement (PSA) with Hinderliter, De Llamas & Associates (HdL) in order to provide business license software services for the City. On November 11, 2022, the City Council approved Amendment No. 1 to the agreement, extending the contract through November 11, 2024, with a total amount not to exceed $23,045. The City requires all businesses operating within its jurisdiction, regardless of trade, profession, occupation, or location inside or outside City boundaries, to obtain a business license. Currently, the City manages approximately 3,265 active business licenses, including renewals.
DISCUSSION
The PSA with HdL expires on November 11, 2024. A renewal of the agreement is requested to allow HdL to continue supporting the Community Development Department staff in the issuance and administration of business licenses. Staff is requesting that the PSA with HdL be for the amount not to exceed $47,667 total for a term to expire on November 11, 2027. This cap reflects the Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
projected volume of work, inflation, and fee increases. The extension will allow HdL to continue to provide business license software support to the Community Development Department to manage the approximately 3,265 current active business licenses. The business license software services agreement will continue to assist the City in the following manner:
• Store, print, and process all business license records, including annual licenses as well as those issued on a daily, monthly, quarterly, or semiannual basis. • Process approximately 3,265 business license applications and renewals each year.
• Serve as a resource for business license customers, addressing inquiries and providing support.
• Process business license payments and issue certificates. • Manage online business license applications and renewals. • Enable easy data entry of business license information, calculate fees based on business type and rate tables, and print licenses. • Track unrenewed licenses and send renewal notices.
• Allow staff to track and send notices for delinquent licenses. • Generate journal entries for business license payments to be entered into accounting records.
• Maintain the history of business licenses for both active and closed businesses.
• Provide audit tools for cross-checking against other datasets such as property and sales tax records.
• Offer a variety of reports based on business name, type, and mandatory submissions to the Franchise Tax Board.
FISCAL IMPACT & PROCUREMENT REVIEW
The City and Consultant desire to renew the agreement to include an additional three years of service from November 11, 2024, through November 11, 2027. A budget amendment to the FY 2024-25 operating budget is not required as the City Council approved an appropriation of $15,246 in Community Development Department account 101-14-4150-0500 for the service. The remaining balance of $32,420.38 will be considered through the FY 2025-2026 and FY 2026-2027 Adopted Budget review process.
Procurement review is not applicable.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the Council approve the contract and authorize the City Manager to execute the agreement. If Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the contract renewal with HdL, which will extend the agreement for a term to expire on November 11, 2027, for their continued business license software services, and authorize the City Manager to execute the agreement.”
ATTACHMENTS
1. Professional Services Agreement with HdL
2. Scope of Work and Fee Schedule