Title
[Contract Amendment] Hinderliter, De Llamas & Associates Business Operations Tax Software
End
FileID
File ID: 2026-01223
End
Location
Location: Citywide
End
Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Contract Amendment 2 to City Agreement PRC001329 with Hinderliter, De Llamas & Associates to provide an extension for use of their PRIME local tax software solution through April 30, 2027, for an amount not to exceed $45,000, bringing the agreement’s total not-to-exceed amount to $276,000.
End
Contact
Contact: Bryan Howard, Finance Manager, (916) 808-4847, bdhoward@cityofsacramento.org; Peter Coletto, Director, (916) 808-5416, pcoletto@cityofsacramento.org; Department of Finance
End
Presenter
Presenter: None
End
Attachments
Attachments:
1-Description/Analysis
2-Contract PRC001329 (2021): Business Operations Tax Software Professional Services Agreement
3-Contract PRC001329 Amendment 1
4-Contract PRC001329 Amendment 2 DRAFT
End
Description/Analysis
IssueDetail
Issue Detail: In March 2021, the City of Sacramento (City) entered into contract PRC001329 (Attachment 2) with Hinderliter, De Llamas & Associates (HdL) to utilize their PRIME local tax software solution for administration, collection, and compliance of the City’s Business Operations Tax (BOT). The initial terms of the contract included an original not-to-exceed amount of $156,000 and was intended to run through April 30, 2027. The initial contract did not require Council approval as Sacramento City Code (SCC) 3.56.080 authorizes the City Manager to execute a contract for less than $250,000.
In May 2024, the City processed Contract Amendment 1 (Attachment 3) to increase the not-to-exceed amount by $75,000, from $156,000 to $231,000, to cover costs associated with additional user licenses, costs for HdL customized work on new application program interface, or API, required to ensure adequate integration with the City’s newly implemented central accounting system, costs for HdL to update the PRIME BOT accounts with the updated Council districts, and costs associated with HdL customizations to support and implement the new online credit card and e-check vendor platform.
The City and HdL have preliminarily agreed upon an additional one-year term where the City would utilize the PRIME BOT system through April 30, 2028. However, the additional one-year term, with costs estimated at $45,000, results in the new not-to-exceed amount exceeding the $250,000 threshold under SCC 3.04.020(A)(1)(b), which requires Council approval of the Contract Amendment. Staff recommends Council approval of the amendment to cover the costs for the additional one-year term to ensure adequate BOT system coverage for BOT administration, collection, and compliance while staff issues a new BOT system request for proposal (RFP), enters into a new contract for a new BOT system, and works to migrate data and implement the newly selected BOT system.
The table below illustrates the total costs associated with contract PRC001329:
|
Contract’s original not-to-exceed amount |
$ 156,000 |
|
Net change by Amendment 1 |
$ 75,000 |
|
Not-to-exceed amount prior to Amendment 2 |
$ 231,000 |
|
Net change by Amendment 2 |
$ 45,000 |
|
New not-to-exceed amount, including all amendments |
$ 276,000 |
The HdL PRIME BOT system houses 21,848 active accounts:
End
PolicyConsiderations
Policy Considerations: The proposed contract amendment supports ongoing BOT administration, collection, and compliance as outlined in SCC 3.08.
End
EconomicImpacts
Economic Impacts: Not applicable.
End
EnvironmentalConsiderations
Environmental Considerations: Not applicable.
End
Sustainability
Sustainability: Not applicable.
End
Commission/Committee Action
Commission/Committee Action: Not applicable.
End
RationaleforRecommendation
Rationale for Recommendation: The one-year contract extension will allow the Revenue Division continued use of the current BOT system for one year while the City issues a RFP for a new system and works to implement the replacement BOT system.
End
FinancialConsiderations
Financial Considerations: The one-year contract extension will increase the existing contract’s not-to-exceed amount by $45,000 for a new total not-to-exceed amount of $276,000. The $45,000 contract increase will be paid to the contractor in Fiscal Year 2026/27 for the annual software license and usage fees.
End
LocalBusinessEnterprise
Local Business Enterprise (LBE): HdL is not a LBE.
End