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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 6, 2007 <br />Action Agenda <br />Item No. <br />SUBJECT: Letter of Agreement for Sales Tax Reallocation <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Letter of Agreement <br />Revenue Spreadsheet <br />INFORMATION CONTACT: <br />Ken Chavious, 245-2450 <br />PURPOSE: To consider approving a Letter of Agreement with Robert S. Segal, CPA for <br />consulting services related to the examination and analysis of refunds of sales and use tax for <br />potential reallocation to the County and the municipalities. <br />BACKGROUND: The County has worked with Robert Segal, CPA over the past several. years <br />on sales tax reallocation projects resulting in additional funds discovered and returned to the <br />County as well as each municipality. Mr. Segal's firm examines and analyzes sales tax refund <br />requests submitted by the County and the municipalities,. as well as refund requests submitted <br />by the school systems, non-profit corporations and the University to determine accuracy. <br />Inaccurate refund requests often impact the sales tax revenue received by the County and <br />municipalities. Over the years, Mr. Segal's firm has helped to recover significant amounts of <br />revenue for the County and municipalities. The most recent sales tax reallocation project <br />yielded a total of $505,538 in additional revenue for the County and Municipalities. Attached is <br />a spreadsheet that provides the detail of the revenues recovered. The amounts recorded are <br />net of Mr. Segal's fees. <br />The consultant's fees are based on a percentage of the revenue recovery recognized and are <br />outlined in the attached letter of agreement. The percentages quoted by the consultant for this <br />engagement are less than those paid on the previous engagement. As indicated previously, <br />each municipality also receives a portion of any additional revenue resulting from the <br />consultants work and they also pay their proportionate share of the associated fees. Each <br />municipality is listed as a party to the agreement. Discussions of the agreement have occurred <br />between the County Manager and the Managers of each of the municipalities with favorable <br />outcomes. <br />FINANCIAL IMPACT: As mentioned above, the fees associated with the agreement are based <br />upon funds identified and returned to the County. Other costs include a minimal amount of staff <br />time involved with providing information to the Consultant. <br />RECOMMENDATION(S): The Manager recommends that the Board approve the Letter of <br />Agreement with Robert S. Segal, CPA and authorize the Chair to sign.