HomeMy WebLinkAbout34-Finance
c.." OF SAN &DNARDreo - RI!QUIIOT POll COUNCIL ACQoN
Fnxn: Warren A. Knudson
Subject:
.Obtaining Sales Tax Audit From
Municipal Resource Consultants
DIpt: Finance
~: February 26, 1987
Synopsis of Previous CouncillCtion:
None
Recommlfldld motion:
1. Authorize the transfer of $2,750 from account number 001-092-53706
(Medicare Benefits) to account number 001-121-53150 (Professional/
Contractual Services - Finance Department).
2. Adopt Resolutions
tJ,
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Signature
ContICt penon:
Warren A. Knudson
Phone:
5242
FUNDING REQUIREMENTS:
Amount: ~2 , 750
Ward: All
(Professional/Contract. Svcs.
1986-87 5ouR8: Finance) 001-121-53150
FinlllC8: t L C' ~ ~ .
Supporting dati ettached: Yes
Council Notlll:
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cnG OF. SAN _NARDlQ) - RBQUBOJ- FOR COUNCIL .M:OJN
STAFF REPORT
Sales Tax revenue to the City of San Bernardino in fiscal year 1986-87 is
estimated to be $17.9 million. This represents the City General Fund's
largest single source of revenue or about 37% of total General Fund revenue.
City Sales and Use Tax is based on a proportional one percent tax rate
applied to all taxable sales within the City limits. The remaining portion
of the 6 percent tax rate is divided between the State (4-3/4 percent) and
the County Transportation Fund (1/4 percent). The major exemptions from the
tax include food purchased for home consumption and services. The local
Sales Tax is administered and collected by the State Board of Equalization
and is authorized by the State Revenue and Taxation Code Sec. 6001 - 9273.
City staff has recently become aware of the consulting firm of Municipal
Resource Consultants. This firm is unique in-California in that they are
experts in State Sales Tax who perform "Point of Distribution" audits. These
audits assure that Sales Taxes are properly allocated within the County. The
firm also assists the City staff by providing computer generated Sales Tax
information. Municipal Resource Consultants have provided this unique service
to other California cities such as Long Beach, Riverside, San Jose, Santa Ana,
San Mateo and Bakersfield. They consistently receive high marks from these
other cities in terms of professionalism and results. In Long Beach, for
example, annual Sales Tax revenues increased approximately $500,000 as a
result of the MRC services. Comparable figures in other cities were San Jose
$600,000, Bakersfield and Santa Ana $400,000 and San Mateo $250,000. The tlRC
audit scope would encompass all City business and would thus be comprehensive
in nature. Further, Finance staff would also be involved so that on-going
audit procedures can be established.
Officials in the referenced cities have been contacted and they have been
pleased ~/ith the services provided by t.IRC. MRC's efforts resulted in addi.-
tional Sales Tax revenues and enhanced City staff's ability to monitor and
estimate Sales Tax activity.
~ - tlRC has two pricing alternatives, both of which are contingent upon
additional Sales Tax revenues obtained for the City.
I. 35% of additional Sales Tax revenue obtained for the City. The
35% applies to any.back quarters and the first six consecutive
reporting quarters followinq completion of tlRC audit (and con-
firmation by the State).
~ 25% of additional Sales Tax revenue obtained for the City.
~ The method of determining the amount is the same as pre-
~US1Ynoted.
b) $ ,000 annually for a Sales Tax Information services system
hich provides quarterly reports which include Sales Tax
information by business and category and trend information
as outlined in item 4 of the attached proposal (pages 5,6,
and 7).
~AFF'REPORT
FEBRUARY 26, 1987
PAGE 2 .
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Staff recommends that the second alternative be adopted. This alternative
would cost less if any additional Sales Tax over $90,000 is identified.
According to the results confirmed by other cities, the additional revenues
would be expected to exceed that amount. The additional Sales Tax infor-
mation has proven to be beneficial in the cities that have been contacted.
1986-87 costs would be approximately $500 to obtain a tape of Sales Tax
permit records from the State Board of Equalization and one quarterly payment
of S2,250.for the additional services. The amount of $2,750 is available
from account number 001-092-53706 which contains $65,000 which was budgeted
to fund the City's portion of r~ndated Medicare contributions. The entire
amount that was budgeted for that purpose will not be utilized. With the
approval of this agenda item, $2,750 will be transferred from that account to
the Professional/Contractual Services account in the Finance Department
budget. The remaining cost for the service for 1987-88 of $6,750 will be
included in the upcoming budget.
John Austin of Municipal Resource Consultants will be' present at the March 9
meeting of the Mayor and Common Council to further explain the services to
be provided.
Staff recommends that the following actions be taken:
1. Resolution designating Municipal Resource Consultants as the
authorized City representative to examine Sales and Use Tax
records and designating the Director of Finance and Internal
Auditor as City officers authorized to receive these records.
2. Resolution authorizing the execution of an agreement with
tlunicipal Resource Consultants to provide Sales Tax audit and
information services.
3. Authorize the transfer of $2,750 from account number 001-092-53706
(Medicare Benefits) to account number 001-121-53150 (Professional/
Contractual Services - Finance Department).
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO DESIGNATING
MUNICIPAL RESOURCE CONSULTANTS AS THE AUTHORIZED CITY
REPRESENTATIVE TO EXAMINE SALES AND USE TAX RECORDS, AND
DESIGNATING THE DIRECTOR OF FINANCE AND CITY AUDITOR AS THE CITY
OFFICERS AUTHORIZED TO RECEIVE INFORMATION CONTAINED IN, OR
DERIVED FROM, THE SALES AND USE TAX RECORDS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION l. Recitals.
A. Pursuant to California Revenue and Taxation Code section
7200, et seq., the City of San Bernardino adopted San Bernardino
Municipal Code Chapter 3.56 which adopts a sales and use tax
ordinance which imposes a tax and provides a measure therefor that
can he administered and collected by the State Board of
Equalization using the same and existing statutory and
administrative procedures followed by the State Board of
Equalization in administering and collecting the California St~te
Sales and Use Taxes.
B. Pursuant to California Revenue and Taxation Code Section
7056, the City of San Bernardino, by resolution, may designate any
officer, employee or other person to examine all of the sales and
use tax records of the Board pertaining to sales and use taxes
collected for the City.
C. The City of San Bernardino has entered into an agreement
for sales tax audit and information services with the firm of
Municipal Resource Consultants, a partnership of John Austin and
Allen Charkow, and, pursuant thereto, desires to designate John
Austin and Allen Charkow of Municipal Resources Consultants as
authorized City representatives to examine such sales tax records
maintained by the Board on behalf of the City of San Bernardino.
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D. All legal prerequisites prior to the adoption of this
resolution have occurred, including the requisite assurances of
confidentiality of all records reviewed.
SECTION 2. Implementation.
A. The Mayor and Common Council of the City of San
Bernardino hereby certify to the State Board of Equalization that
John Austin and Allen Charkow of Municipal Resource Consultants
are the designated representatives of the City of San Brnardino to
examine all of the sales and use tax records of the Board
pertaining to sales and use taxes collected by the Board on behalf
of the City of San Bernardino.
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B. Pursuant to California Revenue and Taxation Code Section
7056 (bl, the Mayor and Common Council hereby certify that
Municipal Resource Consultants, a partnership of John Austin and
Allen Charkow, {hereinafter referred to as "Consultant"l meets all
of the following conditions:
(11 Consultant has an existing contract with the City to
examine sales tax records;
{21 Consultant is required by that contract to disclose
information contained in, or derived from, those sales tax records
only to an officer or employee of the City who is authorized by
resolution to examine the information;
{31 Consultant is prohibited by the contract from
performing consulting services for a retailer during the term of
the contract; and
{4 I Consultant is prohibi ted by the contract from
retaining the information contained in, or derived from, those
sales tax records after the contract has expired.
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C. Pursuant to Revenue and Taxation Code section 7056, the
Director of Finance and City Auditor of the City of San Bernardino
are designated as the City officers authorized to receive disclosu es
from Municipal Resource Consultants of information contained in,
or derived from, the sales and use tax records.
SECTION 3. Certification. The City Clerk of the City of San
Bernardino is hereby authorized and directed to certify to the
adoption of this resolution.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof, held on
the day of , 1987, by the following vote,
to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this ___ day
of , 19B7.
Mayor of the City of San Bernardino
Approved
,126/R7
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WiTH MUNICIPAL RESOURCE CONSULTANTS, A
PARTNERSHIP OF JOHN AUSTIN AND ALLEN CHARKOW, TO PROVIDE SALES TAX
AUDIT AND INFORMATION SERVICES~
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is hereby
authorized and directed to execute on behalf of said City an
agreement with Municipal Resource Consultants, a partnership of
John Austin and Allen Charkow, to provide sales tax audit and
information services, a copy of which is attached hereto, marked
Exhibit "A" and incorporated herein by reference as fully as
though set forth at length.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on
the
day of
, 1987, by the following vote,
to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day
of
, 19B7.
Mayor of the City of San Bernardino
Approved as to form:
{j:Z ..~;./J II
-'--f1-r;vj;cr~rd/
City Attorney
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AG~~~~~~!
{Sales Tax Auditl
THIS AGREEMENT is entered into this day of
, 19B7, between the CITY OF SAN BERNARDINO, a
municipal corporation, referred to as "City," and MUNICIPAL
RESOURCE CONSULTANTS, a partnership, consisting of John Austin and
Allen Charkow, referred to as "Consultant."
City and Consultant agree as follows:
1. Consultant shall perform a comprehensive sales tax audit
of the local sales tax administered and collected by the State
Board of Equalization and provide information services designed to
identify and correct point-of-sale distribution errors and thereby
generate new sales tax income for the City on an ongoing basis.
Consultant shall provide said auditing and information services as
specified in Consultant's proposal dated February 17, 1987. A
copy of said Proposal is annexed hereto as Exhibit "I" and
incorporated herein by reference.
2. This agreement may be terminated upon ninety {901 days
prior written notice by either the Consultant or City. The
Finance Director is hereby authorized to give such notice on
behalf of the City.
IN WITNESS WHEREOF, the parties have hereunto executed this
agreement on the day and year first above written.
CITY OF SAN BERNARDINO
ATTEST:
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By
Mayor
City Clerk
2/26/87
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1 MUNICIPAL RESOURCE CONSULTANTS,
a partnership
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By
4 Partner
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lty torney
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2/26/B7
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M UNICIP A~ESOURCE ~SUL T ANTS
o
32123 W. L1ndero Canyon Rd.
Suite 209
Westlake Village, CA 91361
(818) 991-5220
9874 Teaparty Lane
Fresno, CA 93710
(209) 432-6039
February 17, 1987
Mr. Warren A. Knudson
Finance Director
City of San Bernardino
300 North D Street
San Bernardino, CA 92418
Re:
Sales Tax Audit and Information Services
Dear Mr. Knudson:
Municipal
provide a
the city
errors.
Resource Consultants (MRC) hereDY proposes to
professional service to recover sales tax income for
of San Bernardino unrealized due to distriDution
1. FOREWORD
The city of San Bernardino, together with most of the
other cities in California, has Deen materially affected
in recent years DY Proposition 13, economic recession and
the State/Federal cutDacks. With the impending threat of
more fiscal hardship and few prospects for new revenue
sources, it is vitally important that cities maximize
income from existing revenue sources.
Clearly, these fiscal changes have made sales tax the
most important revenue source for almost all California
cities. For example, sales tax revenue for the city of
San Bernardino comprises approximately 36% of total
General Fund revenue (per Annual Report of Financial
Transactions, State of California, 1985).
Sales tax revenue has generally Deen taken for granted
with cities simply accepting payments from the State
without question. The complex reporting format and
distriDution process are largely responsiDle for this
condition.
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Mr. Warren A. Knudson c:>
city of San Bernardino
February 17, 1987
Page 2
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The State Board of Equalization is charged with overall
audit responsibility. However, staffing is not adequate
to audit all aspects of sales tax reporting. The Board
concentrates primarily on auditing sales tax collections
reported by the business. Very little audit takes place
with regard to "point-of-sale" reporting, which results
in many cities being subject to distribution errors.
These misallocation errors exist because businesses
register for sales tax permits according to their
convenience, which is not always consistent with point-
of-sales regulations. Furthermore, these errors are
often difficult to detect.
Because misallocations are not uncommon, it is essential
that the sales tax resource be audited to determine
whether the City is receiving all of the sales tax income
to which it is entitled. It is also important for the
City to know more about the businesses producing its
sales tax income in order to monitor, analyze and
forecast their performance.
2. PUaPOSE
Accordingly, we propose to conduct an initial and ongoing
sales tax audit in order to identify and correct point-
of-sale distribution errors and thereby generate new
sales tax income for the city. It should be emphasized
that MaC's proposed sales tax audit encompasses All City
businesses and not just the major firms.
Ancillary services designed to further enhance the City's
revenue base are offered as options to each of MaC's
audit clients. These Optional Services are covered
under Section 4, on pages 5 and 6.
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Mr. Warren A . Knudson 0
City of San Bernardino
February 17, 1987
Page 3
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3. SCOPE OF SERVICE
The scope of our proposed audit service includes, but is
not limited to, the following procedures and tasks:
o Procure a computer tape of sales tax permit records
from the State Board of Equalization (only the City
can order this tape which costs about $500).
o Input data from sales tax distribution reports
provided by State Board of Equalization. for most
recent consecutive quarters.
o Develop a target list of potential point-of-sale
distribution errors based on a comprehensive
inventory and evaluation of all businesses in the
city of San Bernardino. These businesses are to be
analyzed based On proprietary guidelines established
by MaC, formulated through expert knowledge of
corporate mergers and acquisitions, sales versus use
tax, business marketing organization and methods,
commercial sales tax reporting practices, and other
conditions contributing to reporting errors.
o Contact each target business to determine whether a
point-of-sale distribution error exists.
Note: This is accomplished with the highest regard
to discretion and professional conduct, as evidenced
by the fact that MaC's sales tax audits have
involved more than 40,000 direct contacts with
taxpayer businesses without a single complaint. Our
sales tax audits are predicated on a constructive
public relations approach which emphasizes the
importance of each business to the City and the
mutual benefits of correcting reporting errors.
o Provide to the city, for submission to the local
office of the State Board of Equalization, reports
addressing each point-of-sale distribution error
individually, including the business name, address,
telephone number, California sales tax permit
number, individuals contacted, date(s) of contact,
nature of business, reason(s) for error, recommended
corrective procedure and, if available, estimated
sales tax income which should be forthcoming to the
City of San Bernardino. This report is accompanied
by our suggested language for letters to be sent to
the taxpayers directly from the City urging
cooperation in promptly correcting the distribution
error.
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Mr. Warren A. Knudson 0
City of San Bernardino
February 17, 19B7
Page 4
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o Receive and process registration control record
information monthly.
o Receive and process sales tax distribution
reports quarterly.
o Coordinate with the taxpayer and State Board of
Equalization to make the necessary corrections
and collect backquarters amounts.
o Monitor and analyze the quarterly distribution
reports with audit focus on the following:
Those accounts with previously reported
point-of-sale distribution errors to
ensure that the corrections are made for
current quarters and all eligible
backquarters.
Those major accounts comprising most of
the City's total sales tax revenue to
identify any irregularities (e.g.,
negative funds transfers, significant
decreases, etc.) and ensure that the city
is not getting less than it is entitled.
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Mr. Warren A. Knudson()
City of San Bernardino
February 17, 1987
Page 5
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4 . OPTIONAL SERVICES
I
Much of the data developed as part of our audit service
is common to that required to perpetually monitor,
analyze and forecast income from the sales tax resource
and provide corollary consulting services designed to
maintain and enhance the City's revenue base. These
services are offered as options to each of MRC' saudi t
clients.
The scope of our STARS Reports and Corollary Consulting
services includes, but is not limited to, the following:
4.1 STARS Re~orts
o Refine our computerized sales tax data for the city
utilizing MRC's Sales Tax Analysis and ~eporting
System (STARS).
o Prepare and submit STARS reports on a quarterly
basis principally focusing on the major sales tax
producers. Major sales tax producers are defined as
those businesses meeting or exceeding a specified
quarterly revenue threshold and comprising in
aggregate 90% or more of the sales tax revenue
generated from businesses located in the City.
All major sales tax producers and
categories are monitored and analyzed
based on reports to include the following:
Maior (and To~ 100l Sales Tax Producers. Ranks
in descending order according to level of sales
tax produced.
business
quarterly
Business Classification. Groups and ranks
major producers by business classification
according to level of sales tax produced.
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. Mr. Warren A. Knudson. 0
City of San Bernardino
February 17, 1987
Page 6
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Sales Tax Trend ReDorts. Indicates growth and
decline comparisons by various c.tegpries for
forecasting and analysis.
Proiectipns. For budgetary purposes, provides
sales tax projections based on optimistic,
pessimistic and most likely economic conditions
for major business categories.
Executive SU1II1Darv. Based on our analysis and
evaluation of the. STARS reports and other data,
our quarterly report is to include an Executive
SUlIlllIary, which presents our findings,
conclusions and recommendations in a condensed
format with narrative complemented by graphics.
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Mr. Warren A. Knudson c:>
city of San Bernardino
February 17, 1987
Page 7
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4.2 CorollarY Consultina
o Make specific recommendations (for city staff and/or
MaC) to further enhance the city's revenue base in
areas such as sales tax, property tax, business
license tax, transient occupancy tax, utility tax
and defined economic development goals.
o Provide City employees with post-audit sales tax
orientation:
Conduct technical seminar on California's local
sales tax distribution process.
Train staff in the fundamentals of sales tax
auditing should the City desire to assume
responsibility for future maintenance of local
retail accounts internally.
o Analyze list of city's major sales tax producers in
order to assist the city in developing a public
relations program to prevent the loss of these
important businesses.
o Profile for Economic Development/community
Redevelopment and Chamber of Commerce personnel the
most economically desirable/undesirable types of
developments/business users and the reasons why.
o Provide a list of businesses located in the City
that are not presently producing sales tax to the
city of San Bernardino, but could be through
constructive changes in marketing procedures.
o If economics warrant, recommend a program be
implemented to capture the 1% sales tax on City
purchases from vendors reporting as use tax and/or
having non-city points of sales.
o Assist in defining specific geographic areas for
which the city would have an interest in knowing the
sales tax produced (e.g., within community
Redevelopment Agency boundaries).
C)
Mr. Warren A... Knudson 0
city of San Bernardino
February 17, 1987
Page 8
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5. TIMING
We are prepared to commence
immediately upon receipt of
authorization and resolution
authorized City contractor to
records (see Exhibit B).
the proposed service
city Council contract
designating MaC as the
examine sales and use tax
The initial audit report identifyng point-of-sale
distribution errors is normally provided within 60
working days following. receipt of authorization. The
ongoing audit reports are provided within 30 working days
following receipt of the quarterly distribution reports.
wi th regard to the optional services, STARS reports are
provided on a. quarterly basis within 30 working days
following receipt of the quarterly distribution reports.
The corollary consulting services are provided on an
ongoing basis in. conjunction with the delivery of our
ongoing audit and STARS reports.
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Mr. Warren A. KnUdson()
City of San Bernardino
February 17, 1987
Page 9
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6. OUALIFICATIONS
Municipal Resource Consultants (MaC) specializes in
providing sales, use, excise and property tax consulting
services to California municipalities. Each service
provided is designed to produce an economic return that
is many times greater than the amount invested for the
service.
MaC has established a reputation as the undisputed leader
in providing sales tax services to California
municipalities, based on a proven track record of
consistently impressive results.
Since 1978, MaC has conducted sales tax audits that have
produced in aggregate more than $7 million annually in
recovered sales tax for California municipalities. Our
sales tax audits have also resulted in the identification
and correction of the largest misallocated accounts in
California.
California clients served represent a wide and varied mix
of cities with populations ranging from less than 50,000
to more than 500,000, and annual sales tax income from
less than $2 million to more than $20 million.
The uniqueness of our service and significant results
achieved are directly attributable to our employing
proprietary techniques borne out of the principals'
combined 23 years of sales tax audit experience.
MaC's proposed service is to be provided by its
principals, John Austin and Allen Charkow.
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Mr. Warren A. Rnudson 0
City of San Bernardino
February 17, 1987
Page 10
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7. PERIOD COVERED & CHARGES
Our compensation is based on a contingency incentive for
the initial and ongoing sales tax audit service plus a
flat charge for the STARS reports and corollary
consulting, further described as follows:
Sales Tax Audit Service
MRC's compensation for the initial and ongoing sales tax
audit service is entirely predicated and contingent upon
our ability to produce new sales tax income for the City.
Our fee for providing the audit service, exclusive of the
optional services, is 35% of new sales tax income
realized by the City as a result of MRC identifying and
correcting the related point-of-sale distribution error.
said 35% applies to each correction for any backquarters
fund transfers and the first six consecutive reporting
quarters following completion of the audit by MRC and
confirmation of corrections by the State Board of
:equalization.
Should the City also desire the optional services, the
contingency incentive fee for the audit service is
reduced from 35% to 25%.
Sales tax audit invoices are submitted quarterly after
the City has received the revenue from. the correction and
quarterly distribution report confirming it. Each
invoice is to include the business name, permit nUlllber,
local allocation amount received by the city and amount
due MRC.
STARS Re~orts & Corollarv Consultina (ODtional)
MRC is to provide STARS Reports and Corollary Consulting
for a flat fee of $9,000 for the first year, payable in
four equal quarterly installments of $2,250 each.
Invoices are to be submitted together with our quarterly
reports and are due and payable upon receipt.
EXDenses
It should be emphasized that under both the flat fee and
contingency fee arrangements, all expenses are absorbed
by MRC. These expenses include items such as airfare,
auto rentals, meals, lodging, keypunching, computer
processing, clerical, cOlllDlunications (e. g. , personal
meetings, telephone, mail, etc.) photocopying, overhead
and miscellaneous out-of-pockets for consumable supplies
and research materials such as maps, directories, etc.
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Mr. Warren A. Knudson. 0
City of San Bernardino
February 17, 1987
Page 11
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8. CERTIFICATION OF CONFIDENTIALITY
Section 7056 of the State of California Revenue and
Taxation code specifically limits the disclosure of
confidential taxpayer information contained in the
records of the State Board of Equalization. This section
specifies the conditions under which a City may authorize
persons other than City officers and employees to examine
State Sales and Use Tax records (see sample resolution
attached as Exhibit B).
The following conditions specified in Section 7056 (b),
(1) of the State of California Revenue and Taxation Code
are . hereby made part of this contractual agreement
entered into between the City of San Bernardino and
Municipal Resource Consultants (Contractor).
A. Contractor is authorized by this agreement to examine
sales and use tax records of the Board of Equalization
provided to city pursuant to contract under the Bradley-
Burns Uniform Sales and Use Tax Law.
B. Contractor is required to disclose information
contained in, of derived from, those sales and use tax
records only to an officer or employee of the City who is
authorized by resolution to examine the information.
C. Contractor
services for
agreement.
is prohibited from performing consulting
a retailer during the term of this
D. contractor is prohibited from retaining the
information contained in, or derived from, those sales
and use tax records, after this agreement has expired.
Information obtained by examination of Board records
shall be used only for purposes related to collection of
local sales and use tax or for other governmental
functions of the City as set forth by resolution adopted
pursuant to Section 7056 (b) of the Revenue and Taxation
Code.
The resolution shall designate the Contractor as a person
authorized to examine sales and use tax records and
certify that this agreement meets the requirements set
forth above and in Section 7056 (b), (1) of the ReVenue
and Taxation Code.
Contractor hereby certifies that any and all information
utilized in the conduct of work performed is to be
utilized only for those purposes authorized by the City
and by the Bradley-Burns Uniform Local Sales and Use Tax
Law.
',0'
Mr. .~arren A. Knudson 0
City of San Bernardino
February 17, 1987
Page 12
o
o
9. CONCLUSION
The proposed audit service is designed to identify and
correct point-of-sale distribution errors and thereby
generate new sales tax income for the city of San
Bernardino on an ongoing basis.
The STARS reports and corollary consulting provide the
essential information to monitor, analyze and forecast
income from the sales tax resource and to maintain and
enhance the City's revenue base.
The proposed service is automatically cost-justified
because compensation earned by MRC is derived from new
income which would not otherwise have been realized by
the city.
Should you have any questions regarding the proposed
services or our charges, we are prepared to respond
promptly.
Should the City decide to use this proposal as the
contract or contract attachment, please indicate
acceptance by noting the services desired and returning
an executed copy to my attention. The original is for
your records.
Sales Tax Audit Service
xu
X
No
STARS Reports
&
Corollary consulting
X
ACCEPTED FOR
CITY OF SAN BERNARDINO
ACCEPTED FOR MUNICIPAL
RESOURCE CONSULTANTS
By:
By:
Title:
Tit
Date:
Date: Februarv 17, 1987