HomeMy WebLinkAboutReso 2025-109 RESOLUTION NO. 2025-109
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONSULTANT SERVICES
AGREEMENT BETWEEN THE CITY AND HINDERLITER, DE
LLAMAS AND ASSOCIATES TO PROVIDE SALES AND USE
TAX, TRANSACTION TAX AUDIT AND INFORMATION
SERVICES
WHEREAS, Hinderliter, De Llamas & Associates (“HdL”) has extensive experience in
providing sales tax analysis to many local cities; and
WHEREAS, the City requires the service of HdL (“Consultant”) to provide sales and use
tax services to assist in economic and business development and revenue projections, as well as
transaction tax services to effectively monitor Measure P and Measure A revenues; and
WHEREAS, continuous monitoring, identification, and correction of allocation errors and
reporting deficiencies will help maximize the City’s sales tax revenues; and
WHEREAS, an effective review program can provide for more accurate budget forecasting
and financial planning; and
WHEREAS, City desires the combination of data entry, report preparation, and data
analysis necessary to effectively manage both its general sales and use tax and Measure A and
Measure P transactions and use tax base for recovery of revenues either unreported or erroneously
allocated to other jurisdictions: and
WHEREAS, Consultant has the programs, equipment, and personnel required to deliver
the sales and use and transactions and use tax related services referenced herein; and
WHEREAS, Consultant’s annual base fee for services is $14,400. The Consultant will
receive a percentage based on recovered sales tax. For general sales and use tax, Measure A and
Measure P transactions and use tax recovered, the Consultant will receive 15% of sales and use
tax revenue recovered; and
WHEREAS, the maximum amount to be paid to consultant for services performed under
the agreement through June 30, 2028, shall not exceed $525,000 and, if the City exercises its two
(2) one-year options to extend the agreement, the maximum amount to be paid to the Consultant
for the period July 1, 2028 through June 30, 2030, shall not exceed $875,000; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code specifies the
conditions under which a city may authorize persons other than city officers and employees to
examine State Sales, Use and Transactions Tax records; and
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Resolution No. 2025-109
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WHEREAS, the City desires to retain HdL and certifies that, pursuant to the proposed
consultant services agreement, Consultant is:
A. Authorized to examine sales, use or transactions and use tax records of the
Department of Tax and Fee Administration provided to the City pursuant to contract under the
Bradley-Burns Uniform Sales and Use Tax Law;
B. Required to disclose information contained in, or derived from, those sales,
use or transactions and use tax records only to an officer or employee of the CITY who is
authorized by resolution to examine the information.
C. Prohibited from performing consulting services for a retailer, as defined in
California Revenue & Taxation Code Section 6015, during the term of this Agreement.
D. Prohibited from retaining the information contained in, or derived from those
sales or transactions and use tax records, after this Agreement has expired. Information obtained
by examination of Department of Tax and Fee Administration records shall
WHEREAS, in order to procure these services City solicited proposals in accordance with
Chula Vista Municipal Code Section 2.56.110 for “professional services” (e.g., architects, lawyers,
engineers, environmental), received two proposals, and selected Consultant as the most qualified.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves Consultant Services Agreement to provide Sales And Use Tax And Transactions
Tax Audit and Information Services, between HdL and the City, in the form presented, with such
minor modifications as may be required or approved by the City Attorney, a copy of which shall
be kept on file in the Office of the City Clerk and authorizes and directs the Mayor, City Manager
or Director of Finance to execute same.
BE IT FURTHER RESOLVED that Consultant is authorized to examine State Sales, Use, and
Transactions Tax records, in accordance with California Revenue and Taxation Code section 7056.
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Resolution No. 2025-109
Page No. 3
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Director of Finance/Treasurer City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 8th day of July 2025 by the following vote:
AYES: Councilmembers: Chavez, Fernandez, Inzunza, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: Preciado
John McCann, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2025-109 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 8th day of July 2025.
Executed this 8th day of July 2025.
Kerry K. Bigelow, MMC, City Clerk
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