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Committee requests HDL presentation after year of business‑license work; staff says contract is performing but data gaps remain
Summary
The Budget & Audit Committee received a staff update on the HDL business‑license contract, heard public complaints about missing payment notices, and asked staff to get HDL to present discovery results and data to the full council; staff recommended continuing the contract through a full fiscal year.
Assistant City Manager Regina told the Clayton City Budget & Audit Committee that HDLexecuted the business‑license contract on 10/03/2023 and began collecting revenue on 01/01/2024, and that early numbers show the arrangement is “relatively close to on budget.”
Regina said the city has a full calendar year of HDL revenue but not a full fiscal year, and that staffprojected the shortfall to be roughly $2,000 after estimating six months of 2024 revenue into 2025. “So it's my recommendation that we continue on with HDL to give a full fiscal year,” she said, adding that the contract auto‑renews in 12‑month periods and requires 120 days' notice to exit.
Why it matters: Council members pressed staff on whether HDL delivered the discovery analysis HDL promised when the contract began — a review intended to identify additional businesses (HDL previously estimated as many as 2,000 businesses, compared with the city's ~1,100). Multiple members said they had not seen that analysis and asked staff to verify HDLcounts and provide evidence of the work.
Members also raised operational concerns. A council member noted that HDL's busiest work is done in late spring and summer, and suggested shifting contract dates or negotiating to ensure the city has adequate time after HDL's peak work to review results before automatic renewal. Regina responded that some contract terms could change if the renewal date were shifted and emphasized the 120‑day notice requirement.
Public commenters described problems with notices and invoicing after HDL took over billing. One commenter, identified in the transcript as Mr. Kaplan, said he did not recall receiving timely payment notices and recommended more reliable reminders: “For some reason, I don't recall getting notice to pay,” he said. Other small‑business commenters said they previously received a city email reminder that they found easier to use than the current process.
What the committee asked staff to do: Regina said staff would request that HDL present to the full council, bring the discovery analysis and underlying data, and address notice and invoicing procedures. The committee received the report and directed staff to schedule HDL for a full‑council presentation so members can evaluate HDL's discovery findings and billing performance.
Next steps: Staff will follow up with HDL to schedule a presentation at a full council meeting and supply the committee with the data HDL used to reach its business‑count estimates and revenue projections.
