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Council approves HDL audit contract amendment after debate over transparency and vendor incentives
Summary
The Los Gatos council voted 3-2 to authorize a fourth amendment with HDL to add business-license discovery, sales/tourism auditing and transient-occupancy audits and to waive late-fee penalties for compliant businesses for 90 days; the decision followed public concern about website clarity and audit incentives.
The Los Gatos Town Council on Sept. 16 approved a fourth amendment to its contract with HDL (the town's business-license processor) to add discovery, compliance audits, transient-occupancy audits and sales/use-tax review.
Staff said HDL already manages the town's business-license database and that discovery work would identify unlicensed commercial and transient businesses. The amendment extends services through June 30, 2027 and includes contingency fees linked to recoveries. Staff proposed a temporary amnesty: businesses found in an audit that…
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