HomeMy WebLinkAboutReso 147-2017 (17-1042)City of South San Francisco P.O. Box 711 (City Hall,
lip City 400 Grand Avenue)
South San Francisco, CA
Council
Resolution: RES 147 -2017
File Number: 17 -1042 Enactment Number: RES 147 -2017
RESOLUTION AUTHORIZING THE EXAMINATION OF SALES OR
TRANSACTIONS AND USE TAX RECORDS BY MUNISERVICES,
LLC, AND AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONTRACT AMENDMENT WITH MUNISERVICES, LLC.
WHEREAS, pursuant to Resolution 02 -2016, the City of South San Francisco ( "City ") entered into a
contract with the State Board of Equalization to perform all functions incident to the administration and
collection of the Transactions and Use Tax Ordinances and the local sales and use taxes; and
WHEREAS, the City deems it necessary for authorized representatives of the City to examine
confidential sales and transactions and use tax records of the Board or its successor agency, the
California Department of Tax and Fee Administration, (collectively, or in the alternative, the "Agency ")
pertaining to sales and transactions and use taxes collected for City by the Agency; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements
and conditions for the disclosure of Agency records and establishes criminal penalties for the unlawful
disclosure of information contained in, or derived from sales or transactions and use tax records of the
Agency; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code requires that any person
designated by the City shall have an existing contract to examine the City's sales and transactions and
use tax records.
NOW, THEREFORE IT IS RESOLVED AND ORDERED AS FOLLOWS:
Section 1. The Director of Finance, or other officer or employee of the City designated in writing by the
Director of Finance to the Agency, is hereby appointed to represent the City with authority to examine all
of the sales and transactions and use tax records of the Agency pertaining to sales and transactions and
use taxes collected for the City by the Agency pursuant to the contract between the City and the Agency.
The information obtained by examination of Agency records shall be used for purposes related to the
collection of the City's sales and transactions and use taxes by the Agency pursuant to the contract.
Section 2. The Director of Finance, or other officer or employee of the City designated in writing by the
Director of Finance to the Agency, is also hereby appointed to represent the City with the authority to
examine those sales and transactions and use tax records of the Agency for purposes related to the
following governmental functions of the City:
a) Tracking and economic development
b) Forecasting and budget related functions
City of South San Francisco Page 1
File Number: 17 -1042 Enactment Number: RES 147 -2017
c) Detection of misallocation and deficiencies
The information obtained by examination of Agency records shall be used only for those governmental
functions of City listed above.
Section 3. MuniServices, LLC is hereby designated and authorized to examine all of the sales and
transactions and use tax records of the Agency pertaining to all sales and use taxes collected for the City,
and any transaction and use taxes collected for the City under the following Transactions and Use Tax
ordinances and any future Transactions and Use Tax ordinances that may be enacted in the City:
Measure W - So. San Francisco Fiscal Stability & Essential Services T &U (SSFR)
The person or entity designated by this section meets all of the following conditions:
a) Has an existing contract with City to examine sales and transactions and use tax records;
b) Is required by that contract to disclose information contained in, or derived from those sales and
transactions and use tax records only to an officer or employee authorized under Section 1 (or Section 2)
of this resolution to examine the information;
c) Is prohibited by that contract from performing consulting services for a retailer during the term of that
contract;
d) Is prohibited by that contract from retaining the information contained in, or derived from those sales
and transactions and use tax records after that contract has expired.
BE IT FURTHER RESOLVED that the information obtained by examination of Agency records shall be
used only for purposes related to the collection of the City's sales and transactions and use taxes by the
Agency pursuant to the contracts between the City and the Agency and for purposes relating to the
governmental functions of the City listed in Section 2 of this resolution.
Section 4. This resolution supersedes all prior sales and transactions and use tax resolutions of the City
adopted pursuant to subdivision (b) of Revenue and Taxation Code Section 7056.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute a contract
amendment with MuniServices, LLC, attached herein as Exhibit A.
At a meeting of the City Council on 11/8/2017, a motion was made by Liza Normandy, seconded by
Richard Garbarino, that this Resolution be approved. The motion passed.
Yes: 5 Vice Mayor Normandy, Councilmember Garbarino, Councilmember
Matsumoto, Mayor Gupta, and CouncilmemberAddiego
Attest y LE
rista rt' el i
City of South San Francisco page 2
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AMENDMENT TO CONTRACT BETWEEN
CITY OF SOUTH SAN FRANCISCO AND MUNISERVICES, LLC
THIS CONTRACT AMENDMENT No. 1 (the “Amendment”) is entered into between City of South
San Francisco (“City”) and MuniServices, LLC (“MuniServices”), (collectively the “Parties”).
The City and MuniServices agree as follows:
WHEREAS, the City and MuniServices, entered into a Consulting Services Agreement on or about
July 1, 2017 (hereinafter “Agreement”) to perform, among other things, Sales and Use Tax Audit Services;
WHEREAS, on or about November 8, 2016 the City adopted the Measure W - So. San Francisco
Fiscal Stability & Essential Services T&U (SSFR), which became effective on or about April 1, 2017 (the
“District Tax”);
WHEREAS, the State Board of Equalization or its successor agency the California Department of
Tax and Fee Administration (collectively, or in the alternative, the “Agency”) has taken the position that
general references to “sales and use tax” are insufficient to allow access to information relating the
collection of the District Tax by the Agency;
WHEREAS, the City and MuniServices, without conceding the correctness of the Agency’s
interpretation, deem it prudent to comply with the interpretation by amending the Agreement to
specifically refer to the District Tax;
WHEREAS, section 7056 of the California Revenue and Taxation Code imposes conditions on the
access to information related to the collection of sales, transaction, and use tax by the Agency;
NOW THEREFORE, in order to satisfy the requirements of section 7056, the parties hereby amend
the Agreement as follows:
1.The following language is incorporated into the Professional Services Agreement as if set forth therein.
Transaction and Use Tax
“MuniServices qualifies under Section 7056 of the Revenue and Taxation Code to review
(Bradley-Burns) confidential taxpayer information and documentation before the State
Board of Equalization (BOE) or its successor agency, the Department of Tax and Fee
Administration (collectively, or in the alternative, the “Agency”.). MuniServices is hereby
authorized by this Agreement to examine transaction tax, sales tax and use tax records of
the Agency, including but not limited to the transaction and use tax that becomes effective
on or about April 1, 2017 known as the Measure W - So. San Francisco Fiscal Stability &
Essential Services T&U (SSFR) pertaining to the ascertainment of those sales or
transactions and use taxes to be collected for the City.
MuniServices is required to disclose information contained in, or derived from, those
transaction, sales and use tax records only to an officer or employee of the City who is
authorized by resolution to examine the information.
EXHIBIT A
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MuniServices is prohibited from performing consulting services for a retailer during the
term of this Agreement.
MuniServices is prohibited from retaining the information contained in, or derived from, those
transaction, sales and use tax records, after this Agreement has expired.”
2. The City and MuniServices agree that although the scope of work generically refers to “sales and use
tax” those references are meant to include “sales, transaction, and use tax” as part of the scope of
work, including but not limited to any transaction and use taxes adopted after the effective date of the
Agreement.
3. The Parties agree that Agreement is applicable to all Sales, Transaction and Use Tax Ordinances
currently enacted in the City and which may become enacted while the Agreement is in effect.
4. The Parties agree that the City will adopt an updated resolution in substantially the same form as the
template provided as Exhibit A to this Amendment.
5. Except as herein modified, all other provisions of the Agreement, including any exhibits and
subsequent amendments thereto, shall remain in full force and effect.
6. In case of a conflict between the terms of this Amendment and the terms of the Contract, the terms
of this Amendment shall strictly prevail.
IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their duly
authorized representatives as of the date set forth below.
DATED: _________________________, 2017
CITY OF SOUTH SAN FRANCISCO MUNISERVICES, LLC
By: ______________________________ By: ______________________________
Doug Jensen
Name: ____________________________ SVP Client Services
Title: _____________________________
APPROVED AS TO FORM:
__________________________________
Office of the City Attorney