DATE: October 15, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH HINDERLITER, DE LLAMAS & ASSOCIATES DBA HDL COMPANIES FOR TRANSIENT OCCUPANCY TAX AUDITING SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve a Professional Services Agreement (PSA) with Hinderliter, De Llamas & Associates dba HdL Companies (HdL) for transient occupancy tax (TOT) auditing services, in the amount of $45,000 for fiscal year 2025-26 and total contract amount not to exceed $148,950 for a three-year term with an option to administratively extend for two additional one-year terms; and authorize the City Manager to execute the agreement.
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BACKGROUND AND ANALYSIS
In accordance with Chapter 34, Article III of the Oceanside Municipal Code, TOT is levied on transients (tourists) for the privilege of occupying lodging facilities in the City for 30 days or less. The tax is collected from tourists by lodging operators and remitted to the City at the close of their quarterly or monthly reporting period. In April 1992, the City Council adopted the TOT rate of ten (10) percent of the gross rent charged by the lodging operator effective May 15, 1993.
In March 2010, the City Council approved the establishment of the Oceanside Tourism and Marketing District (OTMD), a special benefit district as permitted under California law, to provide funding for a collective marketing effort to benefit tourism. Visit Oceanside serves as the OMTD Owners' Association and is responsible for the operations of the OTMD. Since inception the OTMD special district has been renewed in 2014, 2019 and 2025.
In June of 2019, the City Council approved a modification from the original OTMD assessment rate of one and a half (1.5) percent for all lodging operators to two and a half (2.5) percent for hotel/motel operators and one and a half (1.5) percent for vacation rentals. The OTMD assessment is remitte...
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