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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />June 8, 2015 <br /> <br />SUBJECT <br />Agreement with MuniServices, LLC <br /> <br />RECOMMENDATION <br />By motion, approve and authorize the City Manager to execute a three-year Agreement <br />in amount up to $300,000 for Business License Compliance and Revenue <br />Enhancement Services with MuniServices, LLC. ; and authorize City Manager to <br />extend the Agreement by two (2) additional one (1) year terms in an amount not to <br />exceed $100,000 per year. <br /> <br />BACKGROUND <br />Historically, the City of Redwood City has used the services of a Sales and Use Tax <br />consultant to maximize the revenues generated by this funding source. As this revenue <br />stream provides approximately 20% of the City’s General Fund revenues, it is a vital <br />partnership. The consultant will generally utilize a number of techniques and tools to <br />prevent or correct tax revenue leakage such as audits; advocacy and lobbying efforts; <br />established relationships with State Board of Equalization and other local, state and <br />federal governments; and sophisticated analytical capabilities. The City does not have <br />the resources to perform these tasks as expertly and efficiently as a Sales and Use Tax <br />consulting firm so this effort has been outsourced for a number of years. <br /> <br />It was determined it would be most efficient to engage in a Request For Quote (RFQ) <br />process with the successful vendor entering into a contract with the City. MuniServices <br />was selected twice through a consolidated Request for Quote (RFQ) process. The RFQ <br />process worked extremely well in the past, resulting in substantial savings of both staff <br />time and overall costs. <br /> <br />In addition to Revenue Enhancement services, the City is also engaged in an RFQ <br />process for Business License Compliance Services from service providers. <br /> <br />The City of Redwood City currently has approximately 8,600 active business licenses <br />and receives approximately $2.2 Mill annually in business tax revenue. In an effort to <br />ensure that all entities doing business with the City have obtained a business license <br />and paid the proper amount of business tax. These services are specialized in nature <br />and require comprehensive data analysis of records obtained from State agencies, such <br />as State Board of Equalization and Franchise Tax Board. <br /> <br />7.1.H. - Page 1