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HomeMy WebLinkAboutMINUTES - 06052012 - C.82RECOMMENDATION(S): APPROVE and AUTHORIZE the County Administrator, or designee to execute a contract with Hinderliter, de Llamas and Associates in amount of $425,000 for sales tax monitoring and information services for the period of July 1, 2012 to June 30, 2014, as recommended by the County Administrator. FISCAL IMPACT: The contract costs are based on two factors; a $7,200 flat fee annually for sales tax information/technical assistance and 15% of all revenue received by the County as a result of a contractor's audit. Historically, the County has recovered substantially more revenues than the cost of this contract. BACKGROUND: Hinderliter, de Llamas and Associates (HdL) was founded in 1983 by Robert Hinderliter, a former finance director and city administrator of Commerce, California. Mr. Hinderliter developed California's first computerized sales tax management program and secured the legislation that allows independent verification of the State Board of Equalization's allocation of sales tax revenues to local governments. The APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/05/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Lisa Driscoll, 925-335-1023 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 5, 2012 David Twa, County Administrator and Clerk of the Board of Supervisors By: Carrie Del Bonta, Deputy cc: C. 82 To:Board of Supervisors From:David Twa, County Administrator Date:June 5, 2012 Contra Costa County Subject:Contract with Hinderliter, de Llamas and Associates BACKGROUND: (CONT'D) County began contracting with HdL in 2002 to monitor sales and use tax receipts and to identify, correct, and recover allocation errors that impact the County's revenues. HdL has been very successful in locating mis-allocated revenues on behalf of the County. Additionally, HdL is an expert in sales tax revenue forecasting. Revenue forecasting has become more and more difficult over the years because of substantial fluctuations. A lack of monthly or annual revenue patterns require a more in-depth analysis of sales tax revenue. Hinderliter, de Llamas and Associates provides in-depth quarterly sales tax information and specialized analysis to the County. The need for detailed sales tax information is essential to revenue forecasting and economic development planning. CONSEQUENCE OF NEGATIVE ACTION: The County's ability to recover mis-allocated sales and use tax revenue will be reduced. CHILDREN'S IMPACT STATEMENT: Not applicable.