(Rev. 07/24) 1
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the CITY OF MANHATTAN BEACH , hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION , hereinafter called Department, enter into this Preparatory Agreement on December 17, 2024, and do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electo rs of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
Docusign Envelope ID: CCADAE6D-1966-48F7-AF2F-ABEAE0E63A4D (Rev. 07/24) 2
6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy -five thousand dollars ($175,000) (Revenue and Taxati on Code Section 7272.)
7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
City of Manhattan Beach
1400 Highland Avenue
Manhattan Beach, CA 90266
Attention: Finance Department
Re: Sales Tax – Measure MMB
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's t ransactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
Docusign Envelope ID: CCADAE6D-1966-48F7-AF2F-ABEAE0E63A4D (Rev. 07/24) 2
The Parties, through their duly authorized representatives are signing this Agreement on the date stated in the introductory clause.
CITY OF MANHATTAN BEACH
By:
Name: Talyn Mirzakhanian
Title: City Manager
Date:
ATTEST:
By:
Name: Liza Tamura
Title: City Clerk
Date:
APPROVED AS TO FORM:
By:
Name: Quinn M. Barrow
Title: City Attorney
Date:
APPROVED AS TO FISCAL IMPACT:
By:
Name: Onyx Jones
Title: Interim Finance Director
Date:
APPROVED AS TO CONTENT:
By:
Name: Onyx Jones
Title: Interim Finance Director
Date:
CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION
By:
Name:
Title: Administrator, Local Revenue Branch
Date:
Docusign Envelope ID: CCADAE6D-1966-48F7-AF2F-ABEAE0E63A4D 12/9/2024
12/9/2024
12/11/2024