HDL reports data cleanup and $61,000 recovered; discovery outreach to begin after staff authorization

HDL, the contractor managing Clayton City’s business license administration, told the Budget & Audit Committee on March 17 that it has cleaned the city’s business‑license data, increased collections and is prepared to begin a broader discovery program once city staff authorizes the work.

Ian, HDL’s on‑call representative, said the firm inherited an inaccurate database that previously listed about 1,100 ‘‘active’’ businesses. HDL’s review found many of those records were not actually active in Clayton, and the company focused first on cleaning the data and collecting delinquencies. Ian said HDL recovered more than $61,000 since the contract began and collected $101,000 in business license revenue this fiscal year; he said HDL remitted roughly $171,000 to the city under the contract to date.

Committee members pressed HDL on whether the firm audited the 1,100‑business estimate before contracting. Ian said HDL did not have access to the city’s underlying data when the contract was signed and relied on the list provided by prior staff. He described the difference as largely definitional — records marked ‘‘active’’ in the old database included businesses that had closed or no longer operated in Clayton — and said cleaning the data took roughly six to seven months.

Ian described HDL’s services in three parts: operations management (ongoing application processing and renewals), collections (follow‑up to bring delinquent accounts current) and discovery (proactive identification of businesses working in the city that lack licenses). HDL said operations and collections are ongoing and have been continuously delivered; the discovery program has not been turned on and will require explicit authorization from city staff because outreach can cause concern in the business community.

On timing, Ian said HDL will reach out to city staff immediately after the committee meeting to establish recurring coordination meetings and that notifications from a discovery effort would begin within about 60 days of city authorization. He recommended a regular cadence of meetings and close staff collaboration because discovery outreach can require escalations to code enforcement or other city departments.

Committee members asked for clearer reporting. City staff confirmed HDL provides a monthly report with invoice and disbursement details; council members asked HDL to provide a clearer breakdown of renewals versus new applications going forward. Ian also said HDL upgraded the city’s online business license portal, offers phone and mail options for taxpayers, and maintains a 95% service‑level target for answered calls and 24‑hour email responses.

The committee had no action to take; HDL is scheduled to provide an update to the full City Council on April 1.