TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Cynthia Rockwell, Purchasing & Contracts Coordinator
SUBJECT:
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Agreement with Hinderliter de Llamas (HdL) for Business License Software Services
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RECOMMENDATION
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Retroactively approve a three-year agreement in the amount of $47,800 with Hinderliter de Llamas (HdL) for business license software services, with the option of two (2) one-year extensions;
Authorize the City Manager to execute the agreement and all other necessary documents; and
Waive the competitive bidding requirements in accordance with the Murrieta Municipal Code § 3.08.280(G).
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PRIOR ACTION/VOTE
On December 15, 2009, the City Council adopted Resolution No. 09-2427 approving an Agreement with HdL Software LLC for business license software services (Vote: 5-0).
On March 2, 2021, the City Council adopted Resolution No. 21-4368 approving an Agreement with HdL Software LLC for business license software services (Vote: 4-0)
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
Hinderliter de Llamas Companies (HdL) has provided the City of Murrieta with business license software since 2009. This software allows business owners to easily access and renew their business license through the City's website. In 2019, the system was upgraded to HdL Prime, providing new convenient features such as allowing online business license applications, license renewals, and secure credit card payment processing. HdL Prime also calculates and assesses penalties according to the municipal code and allows for customized correspondence with business owners. This software benefits business owners and enables staff to deliver services more efficiently and effectively.
The Finance Department remains satisfied with the HdL Prime business license software system. This service helps to reduce staff time spent on data entry, allowing for more efficient and streamlined processes to better serve the public. With this item, staff wishes to execute a new agreement with HdL and waive the competitive bidding requirements pursuant to Murrieta Municipal Code (MMC) § 3.08.280(G), as a formal request for proposal (RFP) process would be inefficient and impractical at this time. The current agreement expired on November 18, 2025; therefore, this approval request is to be retroactive with an effective date of November 18, 2025. Staff was unable to finalize the agreement with the consultant to seek Council approval prior to the second Council meeting in November.
FISCAL IMPACT
The annual cost of this agreement is approximately $14,760. Software subscription costs will be increased as of January 1, of each calendar year, based on the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U) for the West Region. Each annual increase will be equal to the greater of two percent (2%) or the actual CPI change, not to exceed ten percent (10%).
Software costs are estimated to be $43,000, with payment processing costs estimated at $4,800, totaling $47,800 for the three-year agreement term, which is proposed to run through November 17, 2028. Should the City choose to exercise the two (2) one-year extensions of the agreement, the full five-year cost, including software costs and payment processing fees, is estimated to be $84,000. The estimated agreement costs were calculated based on an average annual CPI increase of three percent (3%).
Funding is available in the Fiscal Year 2025/26 and Fiscal Year 2026/27 Operating budgets. Funding will be established in future biennial budget requests for the remaining years of the agreement.
ATTACHMENTS
1. Agreement