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HomeMy WebLinkAboutReso 36-2014RESOLUTION NO. 36 -2014 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AMENDMENT SIX TO THE CONSULTING SERVICES AGREEMENT WITH MUNISERVICES LLC FOR SALES AND USE TAX RECOVERY SERVICES FOR THE CITY'S BUSINESS COOPERATION PROGRAM. WHEREAS, the City of South San Francisco ( "City ") and MuniServices LLC entered into a Consulting Services Agreement to provide for Sales and Use Tax Audit Services ( "SUTA ") and Sales Tax Analysis reporting Services ( "STARS ") (the "Agreement "); and WHEREAS, section eight of the Agreement requires that any amendments, modifications, or alterations of the Agreement must be in writing and duly executed by the parties; and WHEREAS, the City and MuniServices have amended the Agreement and extended the term of the Agreement, most recently on or about January 2, 2013, to extend the term of the Agreement to December 31, 2013; and WHEREAS, the City and MuniServices desire to further amend, modify or alter certain terms and conditions of the Agreement; and WHEREAS, City staff recommends approving Amendment Six to the Agreement ( "Amendment ") in order to modify the pricing schedule and extend the term of the Agreement with MuniServices in order to provide sales and use tax recovery services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby approves Amendment Six to the Consultant Services Agreement with MuniServices LLC for the sales and use tax recovery services for the Business Cooperation Program, attached hereto as Exhibit A, and incorporated herein. BE IT FURTHER RESOLVED that the City Manager of the City of South San Francisco is hereby authorized and directed to execute the Amendment on behalf of the City of South San Francisco, subject to approval as to form by the City Attorney, and to take any other action consistent with the intent of this Resolution. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 26 lb day of March, 2014 by the following vote: AYES: Councilmembers Mark N. Addiego Pradeep Gupta and Liza Normandy Vice Mayor Richard A. Garbarino and Ma or Karvl Matsumoto NOES: None ABSTAIN: ABSENT: N ATTEST: `- pa-Q? '-t-� Anna Brown, Deputy City Clerk Exhibit A Amendment Six Amendment No. 6 to Consulting Services Agreement This Amendment is dated March 26, 2014, and is between MuniServices, LLC, a Delaware Limited Liability Company with an office at 7625 N. Palm Avenue, Suite 108, Fresno, CA 93711 ( "MuniServices "), and the City of South San Francisco, California ( "City ") located at 400 Grand Avenue, San Francisco, CA 94083. RECITALS • On or about November 1, 2001, City and MuniServices entered into a Consulting Services Agreement ( "Agreement ") to provide for Sales and Use Tax Audit Services (SUTA) and Sales Tax Analysis reporting Services (STARS). • On or about November 3, 2005, the parties extended the term of the Agreement to November 1, 2006. • On or about August 24, 2006, the parties extended the term of the Agreement to November 1, 2007. • The parties have been performing and operating since November 1,2007 to the present under the same terms and conditions of the November 1. 2001 Agreement. • On or about November 19, 2010 the parties extended the term of the Agreement to December 31, 2011. • On or about December 14, 2011 the parties extended the term of the Agreement to December 31, 2012. • On or about January 2, 2013 the parties extended the term of the Agreement to December 31, 2013. • The parties now desire to extend the term of the Agreement for an additional one -year period. The parties now therefore amend the Consulting Services Agreement as follows: 1. Delete Section 1.1 of the Consulting Services Agreement and replace with the following: 1.1 Term of Services. Consultant shall complete the services it has agreed to perform under this Agreement by June 30, 2015 The time provided to Consultant to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement prior to the date referenced above. 4- 2. Delete Section 2 of the Consulting Services and replace with the following: Section 2. COMPENSATION. City herby agrees to pay Consultant a sum not to exceed 25% of findings based on current quarter findings, three previous quarters, and six quarters following the findings for tax revenue, notwithstanding any contrary indications that may be contained in the Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Consultant's proposal regarding this amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified herein shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Business Cooperation Program /Sales and Use Tax Revenue Recovery. City herby agrees to pay Consultant a sum not to exceed 20% of findings based on current quarter findings and three quarters following the findings for sales and use tax revenue recovery, notwithstanding any contrary indications that may be contained in the Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement. 3. The Scope of Services are Amended and supplemented with the attached Exhibit A. All other terms, conditions and provisions in the Agreement remain in full force and effect. If there is a conflict between the terms of this Amendment and the Agreement, the terms of the Agreement will control unless specifically modified by this Amendment. The parties are signing the Amendment on the date stated in the introductory clause. MuniServices, LLC City of South San Francisco By: Doug Jensen SVP Client Services Approved as to form Date: By: City Attorney By: Name: Title: -5- Exhibit A Amendment Six -6- EXHIBIT A SCOPE OF SERVICES BUSINESS COOPERATION PROGRAMISALES AND USE TAX REVENUE RECOVERY The Scope of Services is designed to capture sales and use tax revenue through review of past purchase activity of selected businesses located in the city. MuniServices will consult with the City's Project Manager (Economic Development Coordinator) in the Economic and Community Development Department to establish new systems, procedures and processes designed not only to prevent pooling of use tax revenue paid by businesses within the city, but also increase direct allocation of new sales and use taxes to the City. MuniServices will consult with the Project Manager on targeting businesses and institutions where there is an opportunity to increase revenue to the City based on the following procedures: 1. Analyze the companies and construction projects in the City to develop a target list for inclusion in the Program. 2. Work with City staff to identify targeted companies and general contractors to explain the Business Cooperation Program (BCP) service, explore the possibility of their participation in the program and determine the level of interest and potential for allocation of recovery of sales and use tax revenue to the City. 3. Work with general contractors and their sub - contractors to discuss tax reporting procedures. 4. Develop systems for cooperating business and contractors to utilize a direct payment permit to capture use tax for direct allocation to the City. 5. Monitor the newly implemented procedures and maintain records of all sales and use tax directly allocated as a result of the BCP 6. Assist in preparation of outreach material and participate in kick -off meetings with key businesses along with the Project Manager and other designated City staff. 7. City staff will survey each company and introduce other programs, such as the PACE program. For qualified targeted businesses, MuniServices and the Project Manager will meet with key decision makers from the business. Normally this type of visit is preceded by research about the business and the best strategy to secure its cooperation. This meeting includes a presentation showing the importance of sales and use tax revenue to the City and how they can help the City by changing the sales tax reporting, point -of -sale and point -of -use regulations and the best approach for their participation. Then, ECD will assist them as necessary to implement practices that result in increased sales and use tax revenue. An additional benefit of BCP is that a business may reveal future expansion or relocation plans; or identifies obstacles and challenges that the City may be able to assist in resolving. -7-