Laserfiche WebLink
Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 9 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />May 6, 2025 <br />TOPIC: Business License Tax and Fee Software Services <br />AGENDA TITLE <br />Agreement with Hinderliter, de Llamas and Associates ("HdL") for Business License Tax <br />and Fee Software Services (Specification No. 23-165) (General Fund & Non -General <br />Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an agreement with Hinderliter, de Llamas and <br />Associates ("HdL") to provide business license tax and fee software services in an amount <br />not to exceed $1,557,525, for a five-year term beginning April 15, 2025 and expiring April <br />14, 2030, with provisions for one 2-year extension, followed by two 1-year extensions <br />(Agreement No. A-2025-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />The Treasury & Customer Services Division ("TCS") of the Finance and Management <br />Services Agency ("FMSA") is responsible for the administration, collection, and review of <br />the City's various business license taxes and fees. TCS currently oversees the following <br />tax categories, which collectively account for approximately 17% of the City's General <br />Fund revenue: <br />• Non -Regulatory Business License Tax <br />• Business License Tax For Cannabis Business <br />• Hotel Visitors Tax <br />• Utility Users Tax For Electric, Gas & Telecommunications Services <br />• Tourism Marketing Districts <br />All of the data and records associated to the above taxes (and related fees), in addition <br />to the Proactive Rental Enforcement Program ("PREP"), are stored in the City's in-house <br />legacy Business Tax System ("BTS"). This system began operating in 2007 and has <br />supported TCS operations for many years. As technology advanced, it became necessary <br />to update the system. City staff determined a full enhancement to the in-house system <br />would be more costly and time-consuming than switching to an external sytem. As such, <br />staff concluded that a search for an outside system would be the best path forward. <br />