Agenda Item
Regular Meeting of the
Board of Supervisors
Tuesday, October 13, 2026

TREASURER/TAX COLLECTOR/PUBLIC ADMINISTRATOR - M. CASILLAS
1. Approve retroactive contract with Hinderliter De Llamas and Associates (HdL) for the term of July 1, 2026, through June 30, 2029, for business license administration, for a total amount not to exceed $25,000.00 via net proceeds deductions; and 

2.  Authorize Chair, or designee, to sign contract.

SBC FILE NUMBER: 685.2

CONSENT AGENDA

HdL Companies has provided Business License Administration services for San Benito County since June 2019. During this time, HdL has successfully administered the County's business license program by managing business registrations, renewals, compliance monitoring, customer service, revenue reporting, and business outreach. Their specialized expertise has provided consistent and efficient administration of the program while supporting accurate revenue collection and regulatory compliance.

The County has elected to contract for these services rather than administer the program in-house due to the staffing resources required to effectively operate a comprehensive business license program. The Tax Collector's Office currently has 3.5 full-time employees and one part-time temporary employee during the peak property tax collection season. Existing staff are dedicated to the Office's core statutory responsibilities of property tax collection. The Office does not have the staffing capacity to assume the ongoing administration of the business license program without adversely impacting this essential service.

Business license administration requires continuous, year-round oversight, including identifying newly established businesses, processing new applications and renewals, responding to customer inquiries, monitoring compliance, conducting follow-up with delinquent accounts, and collecting revenues. These functions require dedicated personnel with specialized knowledge and cannot be effectively absorbed by existing staff.

The annual payment to HdL, in the form of net proceeds to the County, is on the average $20,000; payments over the course of 3 years exceeds $50,000 requiring Board approval. The proposed agreement provides for a three-year contract term beginning July 1, 2026, through June 30, 2029. Renewing the agreement will ensure continuity of services, preserve the established business license database and reporting processes developed since 2019, and avoid disruption to County operations and the local business community.  HdL has demonstrated a thorough understanding of San Benito County's business license ordinance. Their experience administering the County's program, combined with their established processes and institutional knowledge, has enabled the County to efficiently administer the program while maximizing compliance and revenue collection.

Approval will authorize the continued operation of business license administration services for the three-year contract term.

The contract is retroactive to July 2026 due to a change in the original contract by HdL. They are moving, as we are, from evergreen contracts. HdL sent a new contract for review in June and through back-and-forth amendments, we had a final draft in September.

The proposed agreement with HdL is funded through business license revenue generated by the program. Since implementation, the program has consistently generated net positive revenue for the County after payment of HdL's administrative fees.

Over the three fiscal years shown, the County realized $1,173,115.00 in net business license revenue while paying $60,329.50 in HdL administrative fees. HdL's fees represented approximately 5.1% of the net revenue generated during this period, demonstrating that the program continues to provide a significant positive fiscal benefit to the County while eliminating the need for additional County staffing and resources to administer the business license program.

1. Approve retroactive contract with Hinderliter De Llamas and Associates (HdL) for the term of July 1, 2026, through June 30, 2029, for business license administration, for a total amount not to exceed $25,000.00 via net proceeds deductions; and 

2.  Authorize Chair, or designee, to sign contract.