TITLE
Recommendation to adopt resolution designating MuniServices, LLC, as an authorized City consultant to examine sales and use tax records of the City of Long Beach. (Citywide)
DISCUSSION
Since 1983, the City has contracted with revenue recovery firms to provide consulting and tax review services. These services include the examination of sales and use tax records to ensure that these taxes are properly attributed to the City. Accordingly, in a separate action, staff is recommending that the City Council authorize an agreement with MuniServices, LLC, for the provision of these services.
State law requires that the local jurisdiction adopt a resolution that authorizes the consultant to perform these services. The attached resolution has been prepared by the City Attorney for City Council approval.
This matter was reviewed by Deputy City Attorney Lori Conway on August 21,2007 and Budget and Performance Management Bureau Manager David Wodynski on August 22, 2007.
TIMING CONSIDERATIONS
City Council action is requested on September 18, 2007, in order to effect the contract on October 1, 2007.
FISCAL IMPACT
MuniServices' compensation for conducting the sales and use tax review is a 20 percent contingency that applies to revenue received as a result oftheir review back to and including three quarters prior to the date of knowledge quarter, and for six quarters beginning with the date of correction. Additionally, MuniServices will be paid $2,250 quarterly for software, analysis, reporting, and consultant services. The quarterly fee will be adjusted annually based on the Consumer Price Index.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH DESIGNATING MUNISERVICES, LLC AS AN AUTHORIZED CITY CONSULTANT TO EXAMINE SALES AND USE TAX RECORDS OF THE CITY OF LONG BEACH
Respectfully Submitted,
MlCHAEL A. KILlEBREW
DIRECTOR OF FINANCIAL MANAGEMENT
NAME APPROVED:
TITLE
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