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Council approves HDL audit contract amendment after debate over transparency and vendor incentives

Los Gatos Town Council · September 16, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

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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