DATE: April 8, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 4 TO PROFESSIONAL SERVICES AGREEMENT WITH HINDERLITER DE LLAMAS AND ASSOCIATES EXTENDING THE TERM OF THE AGREEMENT FOR ONE YEAR WITH ONE-YEAR OPTION TO EXTEND
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 4 to Professional Services Agreement (PSA) with Hinderliter De Llamas and Associates (HdL) for Measure X sales and use tax services to extend the Agreement for one year at a cost of $3,600, plus twenty-five percent of new revenue generated, with one additional one-year option to extend, which may be administratively approved; and authorize the City Manager to execute the Amendment.
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BACKGROUND AND ANALYSIS
The City has contracted with HdL since September 2001 to assist with collection and allocation review related to the one-percent Bradley Burns sales and use tax. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes a 1.25% local sales tax rate in California, of which 1% is allocated to city or county general funds based on the "place of sale." Over time, HdL's work has been delivered timely and accurately, and the firm has been flexible in meeting the City's needs with minimal City staff effort.
For a district tax such as Measure X, the California Department of Fee and Tax Administration (CDTFA) requires a separate contract for consultant services and City Council approval of the contract with specific confidentiality clauses. Based on HdL's long-standing work with Oceanside's sales and use tax allocations, staff recommends continuing to use HdL for Measure X services.
HdL supports the City through audit and recovery work by reviewing sales and use tax allocations and, when appropriate, submitting requests for reallocation. CDTFA allocates tax revenue based on taxpayer submissions with some oversight, and HdL uses a specialized team of tax experts to provide an added level of review ...
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