Metro - File #: 2019-0613

• File #: 2019-0613
• Type: Contract
• Status: Agenda Ready
• File created: 7/31/2019
• In control: Finance, Budget and Audit Committee
• On agenda: 10/16/2019
• Title: AUTHORIZE the Chief Executive Officer to award a five-year contract No.PS63897 to MuniServices, An Avenu Insights & Analytics Company (MuniServices) for the following: A. transaction and use tax forecasting at a firm fixed amount of $20,000 a year, or $100,000 for the full five-year period; and B. transaction and use tax recovery services on a contingency basis, paid only if revenues are recovered through a review of sales tax submissions to the California Department of Tax and Fee Administration (CDTFA), at the following rates: Recoveries Fee % Under $5M 9% $5M - 10M 9% $10M - $15M 8% Over $15M 8%
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Budgeting, Contracts, Debt Service- Enterprise (Project), Governmental And Oversight Activities (Project), Housing, Investment And Debt Management (Project), Measure M, Measure R, Procurement, Proposition A, Proposition C, Revenue Service
• Related files: 2019-0800

Date	Action By	Action	Result
10/24/2019	Board of Directors - Regular Board Meeting

Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
OCTOBER 16, 2019

Subject
SUBJECT: TRANSACTION AND USE TAX REVENUE FORECAST AND RECOVERY SERVICES

Action
ACTION: AWARD CONTRACT

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to award a five-year contract No.PS63897 to MuniServices, An Avenu Insights & Analytics Company (MuniServices) for the following:

A. transaction and use tax forecasting at a firm fixed amount of $20,000 a year, or $100,000 for the full five-year period; and

B. transaction and use tax recovery services on a contingency basis, paid only if revenues are recovered through a review of sales tax submissions to the California Department of Tax and Fee Administration (CDTFA), at the following rates:

Recoveries Fee %
Under $5M 9%
$5M - 10M 9%
$10M - $15M 8%
Over $15M 8%

Issue
ISSUE
The existing five-year transaction and use tax recovery and forecasting service contract with MuniServices will expire on December 31, 2019.

Background
BACKGROUND

Los Angeles County Metropolitan Transportation Authority (Metro) requires transaction and use tax (sales tax) recovery services including the review of internet sales to insure the correct collection, allocation, and distribution of Propositions A and C and Measures R and M sales taxes to Metro. In order to recover transaction and use taxes incorrectly allocated to other jurisdictions, Metro must examine Los Angeles County businesses' quarterly sales tax reports and file claims with the California Department of Tax and Fee Administration (CDTFA) when errors are noted. Additionally, Metro will require increased emphasis on internet sales to realize the revenue generated from retailers located outside of California, who are now required to collect and pay taxes due to the implementation of the Wayfair decision and California AB147.

MuniServices assists Metro in sales tax forecasting by identifying new sales permits and closed permits for a bottom up ass...