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Resolution Authorizing Examination & Third Amendment to Agreement with
<br />MuniServices, LLC
<br />June 21, 2022
<br />Page 2
<br />Tax and the Use Tax. For the City of Santa Ana, the effective sales tax rate is 9.25% with
<br />6% going to the state, 2.5% going to the City and the remainder going to the County for
<br />local transportation.
<br />Currently MuniServices, LLC ("MuniServices"), provides the City Sales and Use Tax
<br />revenue record examination, auditing, recovery and consulting services. As part of these
<br />services, MuniServices provides both a web -based software application (STARS) to aid
<br />in tracking and analyzing sales and use taxes as well as a web -based geographic revenue
<br />information application (GRIA) to aggregate for analysis of a variety of general fund
<br />revenues along with reported sales and use tax data, geographically. However, the
<br />current agreement with MuniServices (A-2019-017) will lapse at the end of this fiscal year.
<br />To accommodate a thorough and deliberate Request for Proposals (RFP) process and
<br />because Sales and Use Tax and Transaction and Use Tax represent a large portion of
<br />the City's total General Fund revenue, staff recommends the approval of a Third
<br />Amendment to Agreement with MuniServices to receive continuous CDTFA revenue
<br />record examination, auditing, recovery and consulting services. MuniServices, LLC
<br />works directly with city and county management, finance directors, recorders, judges, and
<br />clerks, and has uncovered over $2.4 billion in new revenue, processed over $12.4 billion,
<br />and successfully streamlined operations for more than 2,000 jurisdictions. In FY 2020-
<br />21, MuniServices recovered $1,500,000 in sales tax revenue for the City and to -date, in
<br />FY 2021-22, MuniServices has recovered $1,100,000. Although Avenu Insights &
<br />Analytics, LLC is the official branding name of the company, it still operates under
<br />MuniServices, LLC for sales tax services for many agencies. With the Third Amendment
<br />to Agreement, the Assuming Party (MuniServices, LLC) becomes entitled to all rights,
<br />title, and interest of the Assigning Party (Avenu Insights & Analytics, LLC).
<br />Furthermore, the State of California Revenue and Taxation Code Section 7056 authorizes
<br />the examination of confidential Sales and Use Tax and Transaction and Use Tax data to
<br />officers or employees of local jurisdictions who are designated by resolution of the
<br />legislative body of the jurisdiction. The review of confidential information is governed by
<br />state law and sets certain requirements and conditions for the disclosure of Sales and
<br />Use Tax and Transaction and Use Tax information. Santa Ana Resolution No. 2019-004
<br />designates the Executive Director of Finance and Management Services, Assistant
<br />Director of Finance, Treasury and Customer Services Manager, Budget Supervisor, and
<br />the Revenue Supervisor as the City representatives to review sales tax information.
<br />However, since 2019, titles for these positions have changed and additional staff
<br />involvement is required. As a result, Santa Ana Resolution No. 2019-004 requires a
<br />revision and accompanying City Council approval. The resolution authorizing
<br />examination of CDTFA sales and transactions and use tax records by City employees
<br />(designed by position title), and by the City's contracted tax reporting, analysis and
<br />recovery services consultant will be forwarded to the CDTFA to be placed on record.
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