Title
Staff Report for a City of San Leandro City Council Resolution Approving the City Manager to Execute an Amendment and Novation Agreement with MuniServices for Examination of Sales or Transactions and Use Tax Records
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council authorize the City Manager to execute the Amendment and Novation Agreement with Municipal Resource Consultants/ MuniServices, LLC, and adopt a resolution authorizing Examination of Sales or Transactions and Use Tax Records.
BACKGROUND
California Revenue and Taxation Code Section 7056 authorizes the examination of confidential sales and use tax data by officers or employees of local jurisdictions who are designated by resolution of the legislative body of the jurisdiction. The review of confidential information is governed by state law and sets certain requirements and conditions for the disclosure of sales and use tax records. The City is also required to approve any sales tax consulting firms hired by the City to view sales tax collection information. State law also establishes criminal penalties for the unlawful disclosure of sales and use tax information.
In 1992, the City entered into an agreement with Municipal Resource Consultants (MRC) for sales tax consulting services including quarterly reporting, specific advice and transactions examination. In 1998, MRC was acquired and combined with other entities forming what is known today as MuniServices, LLC.
Due to various acquisitions over the years, MuniServices, LLC has operated under various “doing business as” names during its time as the sales tax consultant for the City. MuniServices was recently notified by the California Department of Tax and Fee Administration’s (CDTFA) legal department that based on its review of the contract between the City and MuniServices, LLC the contract name must be updated to reflect the full parent company name, MuniServices, LLC. The CDTFA advised MuniServices that this can be done through a contract novation referencing the existing contract. The purpose of this resolution is to clarify the name for the City’s sales tax consultant as authorized by the City per the request of CDTFA.
BUDGET IMPACT
There is no fiscal impact as a result of this action.
ATTACHMENT
• Amendment and Novation Agreement Between Municipal Resource Consultants and MuniServices, LLC
• Resolution
PREPARED BY
Susan Hsieh, Finance Director