HomeMy WebLinkAboutO-2002-2553
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Ma 20 2002
Agenda Date Requested:
Appropriation
Requested By: Cynthia Alpunder, nirector of Finance
Source of Funds:
Not Applicable
Department:
FINANCE
Account Number:
Report:
Resolution:
Ordinance:
xx
Amount Budgeted:
Exhibits:
Services Agreement
Amount Requested:
Exhibits:
Budgeted Item: YES
NO
Exhibits:
SUMMARY & RECOMMENDATION
MBIA Inc. is the world's preeminent financial guarantor and a leading provider of specialized financial services.
MBIA MuniServices Company (MMC) is a subsidiary of MBIA that helps municipalities preserve, enhance and
manage their revenue bases, and currently provides innovative revenue enhancement services to over 190 public
sector clients around the country.
MMC pioneered the creation of revenue discovery for municipalities in 1978. Since then, MMC has established a
track record of consistently impressive results by producing more than $750 million of new revenue. MMC
commenced providing services to Texas cities with the inclusion of the City of Greenville as a client in December
2001. MBIA Insurance Corporation has a claims-paying rating of Triple-A from Moody's Investors Service,
Standard and Poor's Ratings Services and Fitch mCA.
Staff would like to enter into an agreement with MMC for revenue enhancement services including the review of
Sales and Use taxes. Examples of the Scope of Services include: detecting and validating qualifying business
activities within the City that are not paying sales and use taxes; and determining if they are unregistered for sales
and use taxes; and/or are remitting those taxes to the state with distribution to another jurisdiction.
These services will be provided on a self-funding basis without creating an expenditure impact on the City's budget.
We feel that this is risk free for the city because it is on a contingency fee basis. The company goes through a series
of recovery processes -identified taxes will be sent directly to us - we then pay them 35% of the recovered funds.
For a three-year period This proposal has been presented to the Finance/Audit Committee and received their
approval. We are entering into this agreement for a one-year period, with a 30-day termination clause by either
party.
Action Required bv Council:
Recommend that we enter into agreement with MBIA MuniServices Company for review and recovery of Sales and
Use taxes.
Approved for City Council Al!enda
G?~ T. \1-~
Robert T. Herrera, City Manager
s- \L,.o2-
Date
ORDINANCE NO. 2002-~)53
AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE
CITY OF LA PORTE AND MBIA MUNISERVICES COMPANY, FOR ECONOMIC
FORECASTING, INCLUDING REVIEW OF SALE AND USE TAX REVENUE, MAKING
VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE
DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby approves and authorizes
the contract, agreement, or other undertaking described in the
title of this ordinance, in substantially the form as shown in the
document which is attached hereto and incorporated herein by this
reference. The City Manager is hereby authorized to execute such
document and all related documents on behalf of the City of La
Porte. The City Secretary is hereby authorized to attest to all
such signatures and to affix the seal of the City to all such
documents.
Section 2.
The City Council officially finds, determines,
recites, and declares that a sufficient written notice of the date,
hour, place and subject of this meeting of the City Council was
posted at a place convenient to the public at the City Hall of the
City for the time required by law preceding this meeting, as
required by the Open Meetings Law, Chapter 551, Texas Government
Codei and that this meeting has been open to the public as required
by law at all times during which this ordinance and the subject
matter thereof has been discussed, considered and formally acted
upon.
The City Council further ratifies, approves and confirms
such written notice and the contents and posting thereof.
Section 3. This Ordinance shall be effective from and after
its passage and approval, and it is so ordered.
ORDINANCE NO. 2002- ~563
PAGE 2
PASSED AND APPROVED, this 20th day of May, 2002.
CITY OF LA PORTE
By:
~~~
rman L. Ma one
Mayor
ATTEST:
';!!l,OAHfL (). .lfJ1Lti
Mart a A. Gillett
City Secretary
APP~D If
,I UJJiuJ M/~
Knox W. Askins
City Attorney