HomeMy WebLinkAboutCC Res 7593 2024-12-09 RESOLUTION 7593
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING THE AMENDED AND RESTATED MASTER
PROFESSIONAL SERVICES AGREEMENT WITH HINDERLITER
DE LLAMAS AND ASSOCIATES DBA HDL COMPANIES, FOR
TRANSACTION TAX AUDIT & INFORMATION SERVICES
WHEREAS, the City of Seal Beach ("City") has relied upon professional services
firms to provide technical expertise for certain City operations, including services
relating to municipal finance, pursuant to the authority set forth in the Seal Beach
City Charter and Seal Beach Municipal Code Section 3.20.025(C); and,
WHEREAS, the City has been utilizing Hinderliter, de Llamas and Associates
dba HdL Companies ("Consultant"), since 1991 to assist the City in monitoring,
managing and auditing sales, transactions and use taxes allocated to the City
pursuant to state law and local ordinance; and,
WHEREAS, the City and Consultant are parties to an Agreement for
Transactions Tax Audit and Information Services dated April 1, 2019 (hereinafter
"2019 Agreement") for Consultant to provide transactions and use tax
management services to the City in connection with the 1% local transaction and
use tax approved by the City's voters on November 6, 2018, pursuant to
Ordinance 1671 (Measure "BB"), as codified in Seal Beach Municipal Code
("SBMC") Chapter 4.55; and,
WHEREAS, on November 5, 2024, the City's voters approved Ordinance 1714,
commonly known as Measure "GG", to increase by 1/2% the local transaction and
use tax and to thereby amend SBMC Chapter 4.55; and,
WHEREAS, the City and Consultant desire to update the 2019 Agreement for
Consultant to provide transactions tax and economic analysis/forecasting
services/reports and deficiency allocation reviews and recovery with respect to
Ordinance No. 1714, along with the services previously approved by Measure
"BB", which such combined services shall be known collectively as "Measure GG
Services"; and,
WHEREAS, pursuant to the updated agreement, Consultant's services will assist
the City in carrying out continuous monitoring, identification and correction of
allocation errors and reporting deficiencies to help maximize transactions and
use tax revenues allocated to the City pursuant to pursuant to SBMC Chapter
4.55, as most recently amended by Ordinance No. 1714; and,
WHEREAS, an effective review program can provide for more accurate budget
forecasting and financial planning; and,
WHEREAS, Consultant has the programs, equipment and personnel required to
deliver the transactions and use tax related services referenced herein, to serve
the needs of the City; and,
WHEREAS, the City and Consultant wish to enter into the Amended and
Restated Master Professional Services Agreement for Consultant (a) to provide
the City with tax and economic analysis/forecasting services/reports and
deficiency allocation reviews and recovery with respect to the Measure "GG"
Services pursuant to SBMC Chapter 4.55 as originally approved pursuant to
Ordinance 1671 (Measure "BB") and as most recently amended by Ordinance
1714; (b) to set an initial term of one-year and provide for one-year renewals
unless timely notice of non-renewal is provided by either party; (c) to modify the
compensation for the combined transactions and use tax services for each one-
year term; and (d) to supersede and replace the 2019 Agreement and any and all
other prior agreements with HdL in connection with transactions and use taxes
related to Measure "BB".
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH
DOES HEREBY RESOLVE:
Section 1. The City Council hereby approves the Amended and Restated
Master Professional Services Agreement between the City of Seal
Beach and Hinderliter, de Llamas and Associates dba HdL
Companies for the performance of transaction tax audit and
information services, as set forth in Exhibit "A", attached hereto and
incorporated herein by this reference, relating to SBMC Chapter
4.55 as most recently amended by Ordinance 1714.
Section 2. The City Council hereby sets an initial term of one year to
commence April 1, 2025 and extend through March 31, 2026, with
automatic renewal thereafter for additional one-year terms unless
either party provides timely notice of non-renewal prior to the end of
any one-year term.
Section 3. The City Council modifies the compensation to provide that: (a) for
the initial one-year term and for the second one-year term, the City
will pay Consultant the not-to-exceed sum of $200 per month billed
quarterly plus 25% of Measure "GC" revenue recovered through
Consultant's audit services, for each term; (b) for the third one-year
term, the City will pay Consultant the not-to-exceed sum of $300
per month billed quarterly plus 25% of Measure "GG" revenue
recovered through Consultant's audit services; and (c) for the fourth
one-year term and each one-year term thereafter, the City will pay
Consultant the not-to-exceed sum of $300 per month billed
quarterly as adjusted by Consumer Price Index for All Urban
Consumers (CPI-U) for All items in Los Angeles-Long Beach-
Anaheim, CA, not seasonally adjusted, as reported by the U.S.
Bureau of Labor Statistics, plus 25% of Measure "GG" revenue
recovered through Consultant's audit services.
Section 4. The Amended and Restated Master Professional Services
Agreement hereby supersedes and replaces in their entirety the
2019 Agreement and any and all other prior agreements with
Consultant related to transactions and use tax services in
connection with Measure "BB".
Section 5. The City Manager is authorized to execute the Amended and
Restated Master Professional Services Agreement on behalf of
the City.
Section 6. The City Clerk shall certify to the passage and adoption of this
resolution.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 9th day of December 2024 by the following vote:
AYES: Council Members Kalmick, Moore, Steele, Landau, Sustarsic
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
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Schelly Sustarsic, Mayor
ATTEST: �. StAI d�ti
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Gloria D. Harp , ity Clerk \-*., /oefA 2 ,�'`�'--��
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7593 on file in the office of
the City Clerk, passed, approved, and adopted by the City Council at a regular
meeting held on the 9th day of December 2024.
loria D. Ha e , C