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Auburn council approves contract amendment to outsource business-license administration
Summary
The council approved an amendment to the city's contract with HDL to add business-license services, extend the contract, and raise the maximum compensation to $155,000; staff said the change will reduce in-house workload and is expected to cost about $19 per license.
Auburn Finance Director Gretchen Hoskins told the council the city should amend its contract with HDL to add business-license administration, extend the term and increase the contract cap to $155,000.
"We have nearly 2,000 active licenses right now," Hoskins said, and adding the business-license component at $19 per license would equate to roughly $34,000 annually under typical volumes. Hoskins said HDL already hosts the city's customer portal and has successfully managed other collections for the city, including short-term rental tax work.
Hoskins and council members framed the change as a move to improve efficiency: outsourcing routine license processing would free finance staff to focus on reporting and other priorities while maintaining in-person service for customers who need it. Under the contract amendment, HDL would also apply one-time setup and collection fees where appropriate for businesses found to be out of compliance.
Council members thanked staff for bringing the item forward, noting high online uptake for license renewals and the administrative burden of mailing and manual processing. After members moved and seconded approval, the council adopted the amendment by roll call vote.
The motion passed with all members present voting yes. The clerk's roll call listed Council member Don Kelier voting yes, Council member Holmes voting yes, Council member Redella Harris voting yes and Mayor Kelly Davis voting yes. Council member Amara was recorded absent earlier in the meeting.
The amendment will take effect as specified in the contract paperwork and staff will oversee the transition to HDL's expanded services.
