HomeMy WebLinkAbout09/10/1990 Item #F3b•
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SEPTEMBER 10, 1990
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COUNCIL AGENDA NO.: F -3(b)
TO: MAYOR AND CITY COUNCIL MEMBERS SFP , h „n
FROM: Glen Everroad, License Supervisor
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SUBJECT: AMENDMENT AND EXTENSION OF CONTRAC WIT$
MUNICIPAL RESOURCE CONSULTANTS _ 77'5-
Background
Sales and Use Tax revenue received during fiscal year 1989 -90 of
approximately $12,432,000.00 represents the second largest source
of revenue for the City's General Fund. Last September, the City
Council adopted a resolution establishing Municipal Resource
Consultants (MRC) as an authorized representative to examine Sales
and Use Tax Records of the State Board of Equalization, and
approved a one year contract with MRC to provide sales tax
consulting services for the City. MRC's compensation for this
service is 25% of the first six months new sales tax income
realized by the City from MRC's identifying and correcting sales
tax distribution errors.
Municipal Resource Consultants' sales tax auditing services
provided since September of 1989 has resulted in $25,356.90
additional sales tax revenue to the City. MRC's compensation for
this service was $6,339.23, with a net yield to the City of
$19,017.67.
The original Consultant Services Agreement with Municipal Resource
Consultants was for one year, and expires on September 11, 1990.
The termination clause of the agreement allows the City to cancel
the agreement with ten (10) days prior written notice. Attached is
a copy of a proposed amendment to extend the Consultant Services
Agreement with MRC for a two year period ending on September 11,
1992, and grant the City an option to automatically extend an
additional two years thereafter.
Recommendation
The License Division recommends the City Council approve the
attached Amendment to Consulting Services Agreement with Municipal
Resource Consultants, extending the contract for sales tax
consulting services for the next two years.
G en Everroad
License Supervisor
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