FROM:
Finance
SUBJECT:
Title
Sales Tax Audit Services
End
RECOMMENDATION:
Recommendation
1. Authorize Finance to procure the Sales Tax Audit Services utilizing the Purchasing Policy and Procedure Manual Section 3.1.5 Non-Competitive Proposal to maintain the continuity of the service.
2. Authorize the City Manager to execute a contract with the Hinderliter, de Llamas and Associates to provide sales tax audit services for (5) five years.
3. Authorize the City Manager to execute any future amendments to the contract.
End
COUNCIL GOALS:
• Practice sound fiscal management by producing timely and accurate financial information.
• Practice sound fiscal management by producing transparent information in a timely matter.
DISCUSSION:
Originally selected through the City’s competitive proposal process, The Hinderliter, Llamas and Associates provide the City with sales tax audit services which include the review of seller permits from the State Board Equalization. The sales tax audit services provide information regarding businesses which are either not reporting or misallocating sales and use taxes that should be coming to the City and conducting the necessary work to recover any lost revenues. To date, The Hinderliter, Llamas and Associates have recovered over $17.9 million in sales tax revenue since 2000.
Under the Purchasing Policy and Procedure Manual Section 3.1.5 Non-Competitive Proposal method allows the incumbent vendor by a separate contract to maintain continuity of that service. Staff is recommending continuing the service for additional five (5) years by a separate new contract for the sales tax auditing services.
The annual base fixed fee for the first year will be $1,002.80 per month for a total of $12,033.60 for FY 2024/25. Fees can increase annually thereafter by CPI. The Audit Recovery fees will remain at 15%.
FISCAL IMPACT:
The cost associated with the approval of this item is $12,033.60 for 2024-25 and is included in the 2024-25 Supplemental Budget Operating Budget and will be included in future budgets.
MOTION:
Approve staff recommendation.