Request for Proposals - Revenue Administration

Request for Proposals (RFP)
Revenue Administra(cid:415)on and
Consul(cid:415)ng Services
City of Half Moon Bay
Issue Date: September 16, 2026
Statement of Proposals (SOPs) Due Date:
October 14, 2026, at 5:00PM PST
City of Half Moon Bay Kenneth Stiles
501 Main Street Interim Administrative
Half Moon Bay, CA 94403 Services Director
www.hmbcity.com kstiles@halfmoonbay.gov

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
THIS PAGE INTENTIONALLY LEFT BLANK
Page 2

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
Table of Contents
1. RFP Overview ............................................................................................................................5
1.1. Purpose of RFP ............................................................................................................................. 5
1.2. RFP Timeline ................................................................................................................................ 5
1.3. RFP Ques(cid:415)ons .............................................................................................................................. 5
1.4. RFP Amendment and Cancella(cid:415)on .............................................................................................. 6
1.5. SOP Submi(cid:425)al .............................................................................................................................. 6
2. City Informa(cid:415)on .........................................................................................................................7
2.1. City Overview ............................................................................................................................... 7
2.2. City Background ........................................................................................................................... 7
3. Scope of Services .......................................................................................................................8
3.1. Transient Occupancy Tax Administra(cid:415)on, Audit, Discovery and Consul(cid:415)ng Services ................ 8
3.2. Business License Administra(cid:415)on ............................................................................................... 10
3.3. Sales Tax Repor(cid:415)ng, Forecas(cid:415)ng and Consul(cid:415)ng Services......................................................... 11
3.4. Implementa(cid:415)on, Data Conversion and Transi(cid:415)on ..................................................................... 11
4. Minimum Qualifica(cid:415)ons ........................................................................................................... 12
5. General Provisions and Requirements ...................................................................................... 12
6. SOP Format and Submission Requirements ............................................................................... 13
6.1. SOP Format ................................................................................................................................ 13
6.2. Cover Le(cid:425)er ............................................................................................................................... 13
6.3. Overview and Summary ............................................................................................................ 14
6.4. Qualifica(cid:415)ons ............................................................................................................................. 14
6.5. Proposed Team .......................................................................................................................... 14
6.6. Technical Approach .................................................................................................................... 15
6.7. Relevant Experience and References ......................................................................................... 15
6.8. Cost Proposal ............................................................................................................................. 15
7. Firm Selec(cid:415)on .......................................................................................................................... 16
7.1. SOP Evalua(cid:415)on ........................................................................................................................... 16
7.2. Award of Contract ...................................................................................................................... 17
7.3. Business License ........................................................................................................................ 17
7.4. Nega(cid:415)ve History ........................................................................................................................ 17
7.5. Background Checks .................................................................................................................... 17
8. Protest to Specifica(cid:415)ons or Requirements ................................................................................. 17
9. RFP Terms and Condi(cid:415)ons ........................................................................................................ 18
9.1. Review of RFP ............................................................................................................................ 18
9.2. Undue Influence ........................................................................................................................ 18
9.3. Nondiscrimina(cid:415)on ..................................................................................................................... 18
9.4. SOP Prepara(cid:415)on Costs ............................................................................................................... 18
9.5. SOP Withdrawals ....................................................................................................................... 19
9.6. SOP Errors .................................................................................................................................. 19
9.7. Incorrect SOP Informa(cid:415)on ......................................................................................................... 19
9.8. Prohibi(cid:415)on of Proposer Terms and Condi(cid:415)ons .......................................................................... 19
Page 3

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
9.9. Right to Refuse Personnel .......................................................................................................... 19
9.10. Proposal of Addi(cid:415)onal Services ................................................................................................. 19
9.11. Licensure .................................................................................................................................... 19
9.12. Conflict of Interest and SOP Restric(cid:415)ons ................................................................................... 19
9.13. Contract Nego(cid:415)a(cid:415)ons ................................................................................................................ 20
9.14. Right of Rejec(cid:415)ons ..................................................................................................................... 20
9.15. Disclosure of SOP Contents ....................................................................................................... 20
9.16. Proprietary Informa(cid:415)on ............................................................................................................. 20
9.17. Severability ................................................................................................................................ 21
9.18. SOP Amendment ....................................................................................................................... 21
9.19. SOP Abandonment .................................................................................................................... 21
9.20. Rights of the City........................................................................................................................ 21
10. A(cid:425)achment .......................................................................................................................... 21
10.1. Example Professional Services Agreement ................................................................................ 21
Page 4

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
1. RFP Overview
1.1. Purpose of RFP
The City of Half Moon Bay ("City") is reques(cid:415)ng proposals from qualified firms to provide
revenue administra(cid:415)on and consul(cid:415)ng services in the following areas:
1. Transient Occupancy Tax Administra(cid:415)on, Audit. Discovery and Consul(cid:415)ng Services;
2. Business License Administra(cid:415)on; and
3. Sales Tax Repor(cid:415)ng and Forecas(cid:415)ng Services.
The City seeks experienced firms capable of providing accurate and responsive administra(cid:415)on,
compliance, repor(cid:415)ng, analy(cid:415)cal, and consul(cid:415)ng services that support the City's revenue
programs.
Proposers may submit proposals for any or all of the service areas iden(cid:415)fied in this RFP. The
City reserves the right to award the services separately or collec(cid:415)vely based on the proposals
received and the best interests of the City.
1.2. RFP Timeline
Error! Reference source not found. iden(cid:415)fies the RFP schedule.
Table 1 - RFP Schedule of Events
Activity Date
City Issues RFP September 16, 2026
Deadline for Proposer Questions September 30, 2026, at 5:00 PM PST
City Provides Responses to Questions October 2, 2026
Deadline for SOP Submissions October 14, 2026, at 5:00 PM PST
Interviews & Demos October 15 - October 29
City Completes Evaluations October 30, 2026
Finalist Notified and Contract Negotiations November 1 - November 17, 2026
City Council Approval November 17, 2026
Implementation Begins November 18, 2026
Service Period Begins January 1, 2027
The City reserves the right, at its sole discre(cid:415)on, to adjust the RFP schedule as it deems
necessary. No(cid:415)fica(cid:415)on of any adjustment to the RFP Schedule of Events will be provided to all
Proposers.
1.3. RFP Ques(cid:415)ons
All ques(cid:415)ons, technical or otherwise, pertaining to this RFP must be submi(cid:425)ed via email to:
Kenneth S(cid:415)les,
Interim Administra(cid:415)ve Services Director
City of Half Moon Bay
Email: ks(cid:415)les@halfmoonbay.gov
The deadline to receive all questions is September 30, 2026, at 5:00PM PST. Questions received
after this date may not be answered. Proposer questions should clearly identify the relevant
section(s) of the RFP and page number(s) related to the question being asked.
Page 5

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
1.4. RFP Amendment and Cancella(cid:415)on
The City reserves the right to amend this RFP in wri(cid:415)ng at any (cid:415)me. The City also reserves the
right to cancel or reissue the RFP at its sole discre(cid:415)on. If amendment(s) are issued, no(cid:415)fica(cid:415)on
shall be provided to all Proposers. Amendment(s) will also be posted on the City's website:
h(cid:425)p://www.half-moon-bay.ca.us/287/Bid-RFP-Center.
1.5. SOP Submi(cid:425)al
SOPs must be received by the City no later than the date and (cid:415)me indicated in Sec(cid:415)on 1.2.
Proposers assume the risk of the method of delivery chosen. The City assumes no responsibility
for delays caused by any delivery service. Postmarks will not be accepted as proof of receipt.
Failure to submit a SOP as required before the deadline may cause the SOPs to be disqualified.
SOPs packages must be emailed to Kenneth S(cid:415)les, Interim Administra(cid:415)ve Services Director (a
single .pdf file containing all submi(cid:425)ed material) at ks(cid:415)les@halfmoonbay.gov
The email should be clearly labeled as follows:
Statement of Proposals for Revenue Administra(cid:415)on and Consul(cid:415)ng Services
Due Date: October 14, 2026, at 5:00 PM PST
A(cid:425)n: Kenneth S(cid:415)les, Interim Administra(cid:415)ve Services Director
Name of Proposing Firm
Proposer's Address
Proposer's Contact Person
Proposer's Telephone Number
All proposers are expected to make all necessary inquiries and examina(cid:415)ons to ascertain all
condi(cid:415)ons and requirements affec(cid:415)ng the full performance of the contract and to verify any
representa(cid:415)ons made by the City. If the Proposer receives an award as a result of its SOPs
submission, failure to have made such inves(cid:415)ga(cid:415)ons and examina(cid:415)ons will in no way relieve
the firm from its obliga(cid:415)on to comply in every detail with all provisions and requirements of
the contract, nor will a plea of ignorance of such condi(cid:415)ons and requirements be accepted as
a basis for any claim whatsoever by the firm for addi(cid:415)onal compensa(cid:415)on.
Page 6

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
2. City Information
2.1. City Overview
Incorporated in 1959, the City of Half Moon Bay has
a popula(cid:415)on of about 12,600 and encompasses
approximately 6.5 square miles. The City is a general
law en(cid:415)ty, governed by a council-manager form of
government. The City employs 36 full-(cid:415)me
employees. Half Moon Bay is nestled on the
peninsula between forested hills and the scenic
coastlines of San Mateo County, located 28 miles
south of San Francisco and 40 miles north of San
Jose.
The City's Historic downtown is home to numerous
shops, art galleries, restaurants, bed and breakfasts,
and other businesses, and its celebrated beaches
and parks are wonders of nature, accessible to
pedestrians, bicyclists, and equestrians. With its
many ac(cid:415)vi(cid:415)es and events, beau(cid:415)ful natural
scenery, old-town charm, and abundance of retail
and commercial services, Half Moon Bay is a regional
des(cid:415)na(cid:415)on. Growth in the number of households is
expected to be 0.6-.8 percent per year over the next
10 years.
2.2. City Background
The City u(cid:415)lizes specialized third-party services to support the administra(cid:415)on, monitoring,
compliance, and analysis of several City revenue programs, including Transient Occupancy Tax
(TOT), sales and use tax, and business license tax. These services supplement City staff
resources by providing specialized exper(cid:415)se, technology, taxpayer support, compliance
services, and revenue analysis.
Transient Occupancy Tax
TOT is the City's largest General Fund revenue source, genera(cid:415)ng approximately $9.9 million
annually and accoun(cid:415)ng for approximately 40% of General Fund revenues. The City has
approximately 15 hotels and other tradi(cid:415)onal lodging establishments and approximately 54
registered short-term rentals and inns subject to the City's TOT requirements.
In conjunc(cid:415)on with TOT collec(cid:415)ons, the City also collects assessments on behalf of two tourism-
related Business Improvement Districts (BIDs). Assessment revenues are remi(cid:425)ed to the Half
Moon Bay Coastside Chamber of Commerce for administra(cid:415)on of the respec(cid:415)ve programs. The
City's third-party administrator supports the collec(cid:415)on and repor(cid:415)ng of both TOT and
applicable BID assessments, in addi(cid:415)on to providing operator account management,
compliance support, and periodic audit services.
Page 7

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
Sales and Use Tax
The current sales and use tax rate in Half Moon Bay is 9.875%. The City receives its share of the
Bradley-Burns local sales and use tax, as well as revenues from Measure R, a one-half cent
(0.5%) local transac(cid:415)ons and use tax approved by Half Moon Bay voters in November 2024.
Measure R became effec(cid:415)ve in 2025 and generates approximately $2 million annually for the
City's General Fund.
The City's sales tax base is supported by a mix of visitor-serving, retail, restaurant, and other
commercial ac(cid:415)vity, with visitors accoun(cid:415)ng for a significant por(cid:415)on of taxable sales within the
City. The City u(cid:415)lizes specialized sales tax repor(cid:415)ng and consul(cid:415)ng services to monitor revenue
performance and economic trends, prepare revenue forecasts, and iden(cid:415)fy poten(cid:415)al alloca(cid:415)on
or repor(cid:415)ng issues.
Business License Tax
The City administers approximately 1,491 ac(cid:415)ve business licenses for businesses opera(cid:415)ng
within Half Moon Bay. The City's business license tax is generally based on the number of
employees associated with the business and is renewed annually. The annual business license
period runs from October through September.
Third-party administra(cid:415)on services support the City's business license program through
applica(cid:415)on and renewal processing, payment collec(cid:415)on, account maintenance, customer
service, compliance monitoring, and repor(cid:415)ng.
3. Scope of Services
The City is seeking qualified firms to provide the services described below. Proposers should iden(cid:415)fy
any addi(cid:415)onal services, technology, or approaches they recommend to effec(cid:415)vely administer and
support the City's revenue programs.
3.1. Transient Occupancy Tax Administra(cid:415)on, Audit, Discovery and
Consul(cid:415)ng Services
The selected Consultant will provide comprehensive administra(cid:415)on of the City's Transient
Occupancy Tax (TOT) program and associated Business Improvement District (BID)
assessments, including compliance, audit, discovery, forecas(cid:415)ng, and consul(cid:415)ng services.
Administra(cid:415)on
Services shall include, at a minimum:
Provide an online portal for lodging operators to file returns, make payments, and
manage their accounts for both TOT and applicable BID assessments.
Receive and process TOT and applicable BID assessment returns and payments.
Maintain accurate operator, filing, and payment records.
Remit collec(cid:415)ons to the City at least monthly.
Provide monthly reconcilia(cid:415)on reports detailing amounts collected and how payments
were applied.
Provide separate repor(cid:415)ng of BID assessments collected, including delinquencies,
discrepancies, or other excep(cid:415)ons.
Page 8

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
Provide periodic reports regarding TOT collec(cid:415)ons and performance, including
comparisons to prior periods and iden(cid:415)fica(cid:415)on of significant trends or changes.
Iden(cid:415)fy operators that are delinquent, have failed to file, or are otherwise out of
compliance and conduct appropriate outreach and follow-up.
Calculate and administer applicable penal(cid:415)es and interest in accordance with City
requirements.
Provide customer service by telephone and electronic means Monday through Friday
during normal business hours.
Provide City staff with online access to operator account, filing, payment, and
compliance informa(cid:415)on.
Audit Services
Services shall include, at a minimum:
Audit approximately one-third of the City's TOT operators annually, with the goal of
reviewing each operator at least once during a three-year cycle.
Review operator records to verify reported taxable receipts, exemp(cid:415)ons, applicable
BID assessments, and taxes remi(cid:425)ed.
Iden(cid:415)fy underpayments, repor(cid:415)ng errors, or other compliance issues.
Prepare wri(cid:425)en audit findings and suppor(cid:415)ng schedules.
Calculate addi(cid:415)onal taxes, assessments, penal(cid:415)es, and interest due, as applicable.
Communicate findings to the City and assist with operator responses, disputes, and
follow-up as necessary.
Recommend targeted or addi(cid:415)onal audits when poten(cid:415)al compliance concerns are
iden(cid:415)fied.
Lodging and Short-Term Rental Discovery
The Consultant shall provide ongoing discovery services to iden(cid:415)fy lodging ac(cid:415)vity that may be
subject to the City's TOT, BID, short-term rental registra(cid:415)on, business license, or other
applicable requirements.
Services shall include, at a minimum:
Iden(cid:415)fy poten(cid:415)ally unregistered hotels, inns, short-term rentals, and other lodging
operators conduc(cid:415)ng business within the City.
Monitor major online lodging and short-term rental pla(cid:414)orms and other available
sources for lodging ac(cid:415)vity within City limits.
Compare iden(cid:415)fied lodging ac(cid:415)vity against City registra(cid:415)on, business license, and TOT
account records to iden(cid:415)fy poten(cid:415)ally unregistered proper(cid:415)es, discrepancies, and
other compliance issues.
Provide City staff with sufficient property and lis(cid:415)ng informa(cid:415)on to evaluate iden(cid:415)fied
cases.
Conduct outreach and compliance follow-up with iden(cid:415)fied operators, as authorized
by the City.
Track discovery cases from ini(cid:415)al iden(cid:415)fica(cid:415)on through resolu(cid:415)on and provide periodic
status reports to City staff.
Iden(cid:415)fy trends or recurring compliance issues and recommend strategies to improve
registra(cid:415)on and compliance.
Page 9

City of Half Moon Bay RFP: Revenue Administra(cid:415)on and Consul(cid:415)ng Services
Proposers shall describe their discovery methodology, data sources and technology, frequency
of monitoring, process for matching lis(cid:415)ngs to physical proper(cid:415)es, and approach to measuring
the effec(cid:415)veness of discovery efforts.
Forecas(cid:415)ng and Consul(cid:415)ng
Services shall include, at a minimum:
Prepare two TOT revenue forecasts annually, generally in conjunc(cid:415)on with the City's
annual budget development and mid-year financial review.
Provide analysis of collec(cid:415)on trends and other factors affec(cid:415)ng TOT revenues.
Provide consulta(cid:415)on to City staff regarding TOT administra(cid:415)on, compliance, lodging
ac(cid:415)vity, and related ma(cid:425)ers as requested.
3.2. Business License Administra(cid:415)on
The selected Consultant will provide comprehensive administra(cid:415)on of the City's business
license program.
Services shall include, at a minimum:
Provide an online portal for businesses to apply for, renew, pay for, and manage
business licenses.
Provide an administra(cid:415)ve portal for City staff to review and manage applica(cid:415)ons
requiring City approval or addi(cid:415)onal ac(cid:415)on.
Receive and process new business license applica(cid:415)ons, renewals, and payments.
Coordinate the rou(cid:415)ng of applica(cid:415)ons requiring review or approval by City
departments.
Calculate applicable business license taxes, fees, penal(cid:415)es, and other charges in
accordance with City requirements.
Produce and mail or otherwise deliver approved business licenses.
Prepare and distribute annual business license renewal no(cid:415)ces.
Maintain accurate business, licensing, and payment records.
Iden(cid:415)fy expired, delinquent, or poten(cid:415)ally unlicensed businesses and conduct
appropriate outreach and follow-up.
Remit collec(cid:415)ons to the City at least monthly.
Provide monthly reconcilia(cid:415)on reports detailing amounts collected and how payments
were applied.
Provide repor(cid:415)ng on ac(cid:415)ve businesses, including repor(cid:415)ng by business type or
classifica(cid:415)on.
Provide City staff with online access to business license applica(cid:415)ons, account
informa(cid:415)on, payment history, and compliance status.
Provide customer service by telephone and electronic means regarding applica(cid:415)ons,
renewals, payments, and general licensing ques(cid:415)ons.
Desirable features include:
Provide data export and/or integra(cid:415)on capabili(cid:415)es compa(cid:415)ble with the City's
Geographic Informa(cid:415)on System (GIS).
Ability to provide customer service to taxpayers in Spanish.
Page 10