City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00963 5/21/2024 Consent Item 6.
Supplemental Agreement: Revenue Audit and Recovery Services File ID: 2024-00963
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 2 to City Agreement No. PRC000378 with MuniServices, LLC dba Avenu Insights & Analytics to increase the not to exceed (NTE) amount of the contract from $1.9 million to $2.6 million with no change in the contract term of 7/1/19 - 6/30/24 to account for contingency payments on higher than forecasted revenue recoveries for the City.
Contact: Julie Coffeen, Program Manager, (916) 808-1259, [email protected], Finance Department
Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Agreement 2 to PRC000378
Description/Analysis
Issue Detail: The City of Sacramento has ongoing needs for audit and revenue recovery services.
Request for Proposal P19061211002 was posted in April 2019. Avenu Insights & Analytics was selected by a review panel and awarded agreement PRC000378.
The sales and use tax audits are contingency based and it can be difficult to estimate what will be found in the audits. During the time of this contract, over $9.5 million dollars in misallocated sales and use tax were discovered and appropriately allocated to the City of Sacramento. There have also been 45 cannabis businesses, 51 hotels, and 5 utility providers audited to ensure compliance with the City’s business tax, transient occupancy tax, and utility user tax ordinances.
Policy Considerations: The recommendations in this report are consistent with the provisions of City Code Chapter 3.64 regarding contracts for professional services.
Economic Impacts: None.
File ID: 2024-00963 5/21/2024 Consent Item 6.
Environmental Considerations: None.
Sustainability: None.
Commission/Committee Action: None.
Rationale for Recommendation: An increase to the NTE amount of the contract will allow discovery of misallocated sales and use tax and compliance audits of taxpayers to continue through June 30, 2024, the end of the current contract.
Financial Considerations: Sufficient funding is available in the fiscal year 2023/24 operating budget for the departments utilizing this service.
Local Business Enterprise (LBE): Avenu Insights & Analytics is an LBE.
1 CONTRACT #: PRC000378-2
CONTRACT EFFECTIVE DATE: July 1, 2019
CONTRACT NAME: Revenue Audit and Recovery Services
DEPARTMENT: Finance
DIVISION: Revenue
PROFESSIONAL SERVICES
CONTRACT AMENDMENT
The City of Sacramento ("City") and MuniServices, LLC ("Contractor"), as parties to that certain Contract awarded for the above Event and designated as City Contract Number PRC000378, including any prior Contract Amendments modifying the Contract (the Contract and Contract Amendments are hereafter collectively referred to as the "Contract"), hereby amend and modify the Contract as follows:
SCOPE
The Services specified in the Scope of Services Exhibit of the Contract are not changed.
TIME OF PERFORMANCE
The Time of Performance for the Contract is not changed.
CONTRACT AMOUNT
In consideration of the Contract Amendment(s) described above, the maximum not-to- exceed amount that is specified in the Contract is INCREASED by $700,000 and the Contract's maximum not-to-exceed amount is amended as follows:
The original Contract sum was: $1,625,000
The net change by previous Contract Amendment was: $275,000 The Contract sum prior to this Contract Amendment was: $1,900,000 The Contract sum will be INCREASED by this Contract Amendment: $700,000 The new Contract sum including all Contract Amendments: $2,600,000
FULL COMPENSATION
Contractor agrees that the amount of increase or decrease in the not-to-exceed amount specified in section, above, shall constitute full compensation for the additional and/or revised Services specified in section, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection 2 with such additional and/or revised Services, including costs associated with any changes and/or delays in work schedules or in the performance of other Services or work by Contractor.AUTHORIZED SIGNATUREContractor warrants and represents that the person or persons executing this amendment on behalf of Contractor has or have been duly authorized by the Contractor to sign this amendment and bind Contractor to the terms hereof.FULL FORCE AND EFFECTExcept as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this amendment to the original agreement.