City Council

Item S505:\nAuthorization to Enter Into an Agreement with HdL Companies for Sales,\nTransaction and Use Tax Audit and Recovery, and Information Services. (Added\n6/18/25)\nTotal Estimated Cost of Proposed Action and Funding Source:\nHdL Companies will charge the General Fund a contingency fee equivalent to 7.5% of\nrevenues recovered for the sales, transactions and use tax audit service. The impact for\nFiscal Year 2026 and on an annual basis is estimated at $250,000. The contract not-toexceed amount is $5,000,000 over five years.\nCouncil District(s) Affected: Citywide.\nProposed Actions:\n(R-2025-616)\nResolution authorizing the Mayor or designee to enter into a five-year agreement with\nHdL Companies in an amount not-to-exceed $5,000,000 related to sales and use tax audits\nand reporting services.\nCommittee Actions Taken:\nThis item was heard at the Budget and Government Efficiency Committee meeting on\nJune 18, 2025.\nACTION: Motion by Council President Pro Tem Lee, second by Committee Member\nMoreno, to recommend Council approval of staff’s proposed actions.\nVOTE: 3-0; Foster III-yea, Lee-yea, Moreno-yea, Elo-Rivera-not present.\nDepartment of Finance: Benjamin Battaglia, (619) 533-3717\nCity Attorney Contact: Bret A. Bartolotta