From
Marty Wieder, Director of Economic Development
Title
Professional Services Contract for Sales/Use Tax Compliance Review and Recovery Services from TexasCityServices, LLC. (up to $150,000 annually) through an interlocal agreement with the City of Dallas for three years with the option to renew for two additional one year periods totaling $750,000 if all extensions are exercised; and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
This Professional Services Contract is to assist the City with the detection, documentation and correction of errors and omissions related to sales/use tax collections and remissions for goods and services sold and consumed within the City of Grand Prairie. In particular it will:
• Detect and validate qualified business activities within the City from which the City is not receiving sales/use tax revenue.
• Assist businesses, as required, in filing returns and making payments for all open tax periods.
• Assist businesses, as necessary, in correcting registration information for taxes that are being incorrectly reported to another jurisdiction.
• Provide documentation to the state to secure the transfer of funds to the City that was reported in error to another jurisdiction. The City will authorize access to sales tax information from the Texas Comptroller of Public accounts.
• Provide status reporting at agreed upon times to keep the City aware of the sales/use tax compliance review initiatives progress.
If awarded, TexasCityService, LLC. will collect a 24% contingent fee for sales tax increases for any previous year corrections enjoyed by Grand Prairie from a non-compliant business; a 24% contingent fee for sales tax increases for 24-month post compliance enjoyed by Grand Prairie by a previously non-compliant business; and, hourly rates at a standard $250 per hour for special assignments. It is estimated that the total amount paid to this Vendor shall not exceed $150,000.00 annually.
Chapter 271.102 of the Local Government Code authorizes local governments to participate in a cooperative purchasing program with another local government or local cooperative organization. In lieu of competitive bidding, items and services may be purchased through such agreements as the agreements have already been bid by the sponsoring entity or agency.
TexasCityServices, LLC. is available to the City through our master interlocal agreement with the City of Dallas. Dallas originally solicited RFP# BKZ1518 resulting in their contract# BKZ1518 and was executed on December 23rd, 2016 with a three year initial term and two optional one year renewals.
Financial Consideration
Funds are available in FY 2018/2019 General Fund budget 131010-40615 for Sales Tax Refunds and will be charged accordingly on orders through the end of the current fiscal year. Funding for future fiscal years will be paid from that year’s approved budgets.