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Contractor HDL reports $6 million in business-license findings, council asks for easier public access
Summary
HDL, the city's business-license contractor, told the council the firm has identified about $6 million in uncollected business tax revenue over its contract and recommended improved customer-facing access on the city website.
HDL, the contractor that administers West Covina's business-license program, told the City Council March 4 that its compliance work has identified roughly $6 million in previously uncollected business-tax findings since the contract began.
Christine Gaenier of HDL summarized the contractor's renewal and discovery process and noted that HDL's compliance work has led to registration of about 1,200 previously unregistered businesses and collection activity on roughly 1,300 delinquent accounts. "Those efforts have led to a total of $6,000,000 in findings for the city of West Covina," Gaenier said during the presentation.
HDL said administrative services are charged as a flat fee per account while compliance work is paid on contingency; HDL representatives said contingency fees are paid by the businesses identified in the discovery program rather than by the city.
Council members focused on two operational issues: penalties assessed to businesses that do not renew on time and ease of public access to the business-license application process. HDL noted that the city's municipal code requires registration and that a 10% monthly penalty (capped at 100%) begins after the 30-day renewal window. HDL's representatives said the firm follows existing city policy on penalty enforcement, and council members discussed whether limited hardship or equity-based waivers should be considered for certain small or home-based businesses.
Council members and staff urged easier navigation from the West Covina website to HDL's business-license portal and asked HDL to work with the city to add a prominent "apply for business license" or "report a problem" link. HDL said most notices are sent by postal mail and email when an address is available, and that routine processing time for HDL administration is under two days, though planning and permit approvals from other departments can extend that timeline.
Next steps: the city will coordinate with HDL to improve website navigation and consider whether a formal policy on penalty waivers or hardship exceptions should be developed and brought back to council for consideration.
