PREPARED BY: ARTURO CASTILLO DATE OF MEETING: 03/16/2026
SUBJECT:
TITLE
CONSIDER ADOPTING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO AUTHORIZING THE CITY MANAGER TO EXECUTE A MASTER SERVICES AGREEMENT WITH HINDERLITER DE LLAMAS AND ASSOCIATES (HDL) FOR SALES AND USE TAX AUDITING, ALLOCATION AND AUDIT RECOVERY, ECONOMIC ANALYSIS, FORECASTING, REPORTING, AND RELATED CONSULTING SERVICES
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COMPLIANCE STATEMENTS
FY 2025-2027 Council Priority Workplan Compliance Statements:
Continue Best Management Practices, Fiscal Excellence, and Fiscal Transparency is a major policy goal contained in the adopted Fiscal Year 2025-2027 City Council Priority Workplan, effective April 7, 2025.
BACKGROUND
Since 2009, the City of San Pablo has contracted with Hinderliter de Llamas and Associates (HdL) and the related entity HdL Coren & Cone for sales and use tax auditing, property tax auditing, and related consulting services. HdL provides specialized expertise in monitoring and management of local tax revenues administered by the California Department of Tax and Fee Administration (CDTFA), helping ensure that the City receives all revenues to which it is entitled.
HdL has consolidated its related service lines under a new Master Services Agreement. Staff recommends that the City enter into this agreement, effective March 1, 2026, to reestablish and continue HdL's services. The agreement provides the City with sales and uses tax economic analysis, forecasting, and quarterly reporting; allocation and audit recovery services to identify and correct distribution errors with the CDTFA; and as-needed consulting on technical revenue matters.
Under the agreement, the two primary fee components are: (1) a monthly fee of $617 per measure for economic analysis and forecasting services, adjusted annually by the Consumer Price Index (CPI-U), i...
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