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HE CITY OF <br />pL£ ASANTONC <br />CITY COUNCIL AGENDA REPORT <br />May 19, 2009 <br />Finance Department <br />TITLE: AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AGREEMENT <br />WITH MUNISERVICES, LLC FOR BUSINESS LICENSE TAX <br />COMPLIANCE SERVICES <br />SUMMARY <br />A Business License Tax based on gross receipts is levied on all persons and <br />businesses conducting business in the City of Pleasanton. In an effort to enhance <br />General Fund revenue by developing a successful Business Tax compliance program, <br />the Finance department recommends contracting with MuniServices, LLC to conduct a <br />comprehensive discovery and audit program. MuniServices is well known throughout <br />the public sector for providing the most comprehensive and effective program. <br />RECOMMENDATION <br />Authorize the City Manager to execute an agreement with MuniServices for Business <br />License Tax compliance services. <br />FINANCIAL STATEMENT <br />There will be no cash outflow for this service. MuniServices provides discovery services <br />with a contingency fee based on the additional revenue realized by the City from the <br />services performed. The fee applies only to the revenue actually received by the City. <br />MuniServices is compensated based upon a one -time percentage (40 of their <br />recovery during the compliance audit. No fee is paid on the new on -going revenue. <br />Overall, there will be a net gain in revenue associated with this program, but more <br />importantly, there will be a consistent method for ensuring compliance by all <br />businesses. <br />6 <br />