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HomeMy WebLinkAbout069-2021DocuSign Envelope ID: D2FB361A-FE9C-40AA-9875-9F4E15A07FA3 RESOLUTION NO. 69-2021 AUTHORIZING THE AMENDMENT AND NOVATION AGREEMENT BETWEEN MUNICIPAL RESOURCE CONSULTANTS AND MUNISERVICES, LLC FOR EXAMINATION OF SALES, TRANSACTIONS AND USE TAX RECORDS WHEREAS, pursuant to Ordinance No. 14, §5, the Town of Danville entered into a contract with the California Department of Tax and Fee Administration (CDTFA), to perform all functions incident to the administration and collection of the Transactions and Use Tax Ordinances and the local sales and use taxes; and WHEREAS, the Danville Town Council deems it desirable and necessary for authorized officers, employees and representatives of the Town to examine confidential sales, transactions and use tax records of the CDTFA pertaining to sales and use taxes or sales or transactions and use taxes collected by the CDTFA for the Town, pursuant to that agreement; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of the CDTFA's records and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from sales or transactions and use tax records of the CDTFA; and WHEREAS, the Town has an existing Professional Services Agreement (PSA) with Municipal Resources Consultants (MRC), a legal entity of MuniServices, to examine the Town's sales, transactions and use tax records; and WHEREAS, the PSA prohibits MRC from performing consulting services for a retailer during the term of the contract and prohibits MRC from retaining the information contained in or derived from sales or transaction use tax records after the contract expires; and WHEREAS, it has been determined that the PSA should be in the name of MuniServices, the legal entity that owns MRC, and that the PSA can be assigned to MuniServices only with the Town's consent; and WHEREAS, Danville Resolution No. 34-2021 submitted to CDTFA did not contain adequate verbiage in certain areas regarding limitations on access to confidential data and this resolution addresses those concerns; now, therefore, be it RESOLVED, that MuniServices is hereby substituted for MRC and is designated and authorized to examine all of the sales, transactions and use tax records of the CDTFA pertaining to all sales and use taxes collected for the Town and any transaction and use taxes collected for the Town and any future transactions and use tax ordinances that DocuSign Envelope ID: D2FB361A-FE9C-40AA-9875-9F4E15A07FA3 may be enacted in the Town; and, be it further RESOLVED, that by the PSA, MuniServices, LLC shall be entitled to all rights, title, and interest of MRC in and to the assigned agreement in as much as MuniServices is the substituted party to the assigned agreement as of and after the effective date; and, be it further RESOLVED that the Town of Danville and MuniServices shall be bound by the terms of the assigned agreement in every way as if MuniServices is named in the novated assigned agreement in place of MRC; and, be it further RESOLVED that the information obtained by examination of the CDTFA's records shall be used only for purposes related to the collection of the Town's sales, transactions and use taxes by the CDTFA pursuant to the contracts between the Town and the California Department of Tax and Fee Administration and for purposes relating to the governmental functions of the Town listed in this resolution; and, be it further RESOLVED that this resolution supersedes Resolution No. 34-2021, adopted by the Danville Town Council on July 6, 2021; and, be it further RESOLVED that this resolution supersedes all prior sales, transactions and use tax resolutions of the Town adopted pursuant to subdivision (b) of Revenue and Taxation Code Section 7056; and, be it further RESOLVED, that the Finance Director/Treasurer or other officer or employee of the Town designated in writing by the Finance Director/Treasurer to the CDTFA is the only person authorized by the Town to examine those sales, transactions and use tax records of the CDTFA for purposes related to the following governmental functions of the Town: (a) tracking and economic development; (b) forecasting and budget related functions; (c) detecting misallocations and deficiencies; and the information obtained by examination of CDTFA records shall be used only for those governmental functions of the Town listed above. PAGE 2 OF RESOLUTION NO. 69-2021 DocuSign Envelope ID: D2FB361A-FE9C-40AA-9875-9F4E15A07FA3 APPROVED by the Danville Town Council at a regular meeting on October 19, 2021, by the following vote: AYES: Arnerich, Fong, Morgan, Stepper, Storer NOES: None ABSTAINED: None ABSENT: None DocuSigned by: D74F385835E14D5... MAYOR APPROVED AS TO FORM: ATTEST: DocuSigned by: R4c44 R. E44/41 895C6C4OADBF4BF... EDocuSi 71735A3F04C942F... CITY ATTORNEY CITY CLERK PAGE 3 OF RESOLUTION NO. 69-2021