Report to Mayor and City Council
Tuesday, July 03, 2018
Discussion
SUBJECT:
Title
CONSIDER PROFESSIONAL SERVICES AGREEMENT WITH BRI CONSULTING GROUP, INC. TO PROVIDE AUDIT SERVICES FOR THE OIL INDUSTRY BUSINESS LICENSE TAX (CITY COUNCIL)
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I. SUMMARY
City Council is being asked to approve a professional services agreement with a consulting firm based in Houston, Texas. The scope of the project is to audit the gross receipts reported by the two oil refineries in the City of Carson.
II. RECOMMENDATION
Recommendation
APPROVE the proposed professional services agreement with BRI Consulting Group, Inc. to provide audit services for a not-to-exceed price of $140,000.
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
The City's voters approved the new Oil Industry Business License tax in November 2017. The tax is 0.25% of gross receipts subject to the tax. Gross receipts information is self-reported by each business paying the tax; and the City has the right to audit business records (CMC?63516A).
The Purchasing Ordinance allows staff to solicit proposals for professional services without a formally advertised process (CMC?2611(c)). Staff solicited proposals from 9 firms with reported oil industry experience. Four proposals were received, as five firms elected not to submit proposals. One of the four proposals was found to be inadequate due to the superficial scope proposed. The City Manager, Assistant City Manager, Finance Director and the City's Oil Industry Consultant (Mr. Luis Perez of MRS Environmental) interviewed 3 firms. Staff felt that 2 of the 3 firms interviewed could perform the work successfully. A contract was negotiated with the firm that proposed lower rates.
Staff recommends the City Council award a contract to BRI Consulting Group, Inc. (BRI). BRI was established in 1992 to provide energy companies with experienced professionals to meet their auditing needs. BRI is a privately-o...
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