April 5, 2022
Finance Department
DATE: April 5, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Delmy Cuellar, Acting Director of Finance
Antonio Banuelos, Accounting Manager
Subject:
Contract Amendment to Implement Measure U Gross
Receipts Tax
FINANCIAL IMPACT: The contract amount will be funded by the Finance Budget in the amount of $30,000 for Fiscal Year 2021-
2022 and Fiscal Year 2022-2023 (Account String
01917090-400201).
PREVIOUS COUNCIL
ACTION:
June 22, 2021 – Contract approved for Management
Partners, Inc. in the amount of $109,135, with a term
through June 30, 2022.
STATEMENT OF THE
ISSUE:
Finance Department is seeking City Council approval to
amend the contract with Management Partners to
continue the Measure U Gross Receipts tax
implementation passed by voters on November 3, 2020.
Supplemental professional services are needed to
complete the Measure U implementation.
RECOMMENDED ACTION:
APPROVE the first amendment to the contract with
Management Partners, Inc. to increase the contract
amount by $30,000, for a total not to exceed amount of
$139,135, for an extended contract term through
December 31, 2022 – Finance Department (Delmy
Cuellar 510-620-6740/Antonio Banuelos 620-6741).
AGENDA
REPORT
April 5, 2022
DISCUSSION:
The City Council placed a measure on the November 3, 2020, ballot that was approved by the voters, which changes the Business License Tax calculation methodology to be based on gross receipts in the City of Richmond instead of the number of employees.
On June 22, 2021, Council approved a contract with Management Partners, Inc. to assist City staff in developing and implementing the Measure U Gross Receipts Tax.
The contract scope of services with Management Partners has the following eight tasks:
Task 1 – Start Project
Task 2 – Conduct Interviews, Surveys and Focus Groups
Task 3 – Perform Financial Modeling and Case Study Research Task 4 – Develop and Review Process Maps
Task 5 – Analyze Results and Develop Recommendations
Task 6 – Develop Administrative Policies, Regulations and Business/Staffing Plan Task 7 – Assist City Staff with Developing and Acquiring Necessary Information Technology
Task 8 – Support Implementation and Provide Additional Services
Supplemental services are needed to complete the Measure U implementation. By increasing the contract amount, the City will be able to secure as-needed services as determined by the Finance Director. The City has received approximately $2,354,869 in business tax revenue year to date. This corresponds to 29.8 percent of the budgeted amount. The goal of this contract is to assist in obtaining the remaining budgeted Measure U tax revenue in the amount of $5,545,131, 69.2 percent during FY 2021- 2022.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – Contract Amendment