Business License Tax Modernization

Post InformationPosted At:Thu, Oct 6, 2022 6:19 PMSealed Bid Process:Yes (Bids Sealed / Pricing Sealed)Private Bid:No1. Introduction1. SummaryThe City seeks to enter into an agreement with a consulting firm with the necessary experience to: Conduct an initial study analyzing the City’s current Business, Professions and Trades Provisions (business license program) in the context of the City’s goals for the program. The study would include: (1) a benchmarking analysis and an overview of trends and opportunities in this area based on current academic research and best practice; (2) a review identifying where the City could make administrative changes that would help to reach its goals Based on initial study results, and with additional direction from City leadership, develop business license taxation and financial models and provide tax proposals and recommendations Assist with conducting community and business outreach throughout the process Assist in drafting the proposed ordinance

Provide recommendations for and assist in implementation Assist with internal and external communication, including presence at City Council meetings when appropriate. 2. BackgroundThe City of Santa Monica (the “City”) was incorporated in 1886 and adopted its City Charter in 1945. In 1947, a Council/Manager form of government was established. The City provides a wide range of municipal services including community planning and development, public safety, building and safety, street maintenance, beach maintenance, and recreation services. Resource Recovery and Recycling (“RRR”), Water, Wastewater treatment services, and the Department of Transportation are also provided by the City as enterprise funds. The annual Citywide Adopted Budget for the fiscal year ending June 30, 2023, is approximately $654.9 million (net of transfers and reimbursements), including General Fund operating expenditure appropriations of $379.9 million. The City employs a workforce of approximately 2,025.3 permanent and temporary employees Citywide revenues are projected to be $671.2 million (net of transfers and reimbursements) in FY 2022-23 which includes General Fund revenue projections of $382.8 million. Approximately 8%, or $30.2 million of the General Fund revenues are generated from business license tax collections. The City’s Municipal Code allows the Finance Department to levy and collect business license tax. The business license tax program supports the overall well-being of Santa Monica by funding essential services, such as public safety, community recreation and economic development. The Finance Department’s Revenue Division is responsible for administering of the Business License Program which includes the collection of business license taxes from approximately 23,000 businesses within the City. With a few exceptions, the City’s annual business license taxes are gross receipts based associated with the assigned business classification, which varies from $1.25 to $5.00 per $1,000 of gross receipts. The City has had three comprehensive reforms of the Business, Professions and Trades ordinance in the last 60 years. Since the last major revision in 1990, the ordinance has remained relatively unchanged. Goals for the ProgramThe City’s desire to update and modernize the City’s Business, Professions and Trades provisions is intended to support economic growth and job creation and to ensure a flexible, forward-looking, and equitable business license program. With the proposed modernization, the City seeks to: Attract, retain, and encourage expansion of businesses within the City Create a fair, equitable and simple business license taxing system Support small businesses and microenterprises Address and appropriately tax emerging business models Ensure the taxing scheme is competitive with neighboring jurisdictions with similar characteristics Minimize administration and compliance costs for the City and taxpayers Protect the City’s fiscal position Be structured so that business oversight and compliance is not overly burdensome for City staff or affected businesses, and so that oversight and compliance is consistent with other City laws, taxes, and reporting procedures3. Contact InformationThe City has designated Haley Favre-Smith, as its contact (the “City Contact”) for this request for proposals (this “RFP”). The City Contact’s information is listed below: Any inquiries or requests regarding this procurement should be submitted via ProcureNow. Other City officers, agents, employees or representatives do not have authority to respond on behalf of the City. Contact with unauthorized City personnel during the selection process may result in disqualification.Haley Favre-SmithBusiness License Administrator 1685 Main Street Santa Monica, CA 90401 Email: haley.favre-smith@smgov.netPhone: (310) 458-4931Department:Finance DepartmentDepartment Head:Gigi Decavalles-Hughes Finance Director4. TimelineProposal Calendar The following is a list of key dates: Release Project Date:October 6, 2022Question Submission Deadline:October 21, 2022, 3:00pmQuestion Response Deadline:October 31, 2022, 5:00pmOptional Pre-Bid Meeting:November 14, 2022, 10:30am Microsoft Teams meeting Join on your computer, mobile app or room device Copy and paste URL for meeting into your browser: https://teams.microsoft.com/l/meetup-join/19%3ameeting_ZjA2ODZjOWYtOGU1MC00OWY3LTk2NTQtYzVhMDZjZTMyMjI4%40thread.v2/0?context=%7b%22Tid%22%3a%22c7e92aae-df65-4bdf-9e1f-86b3f233aeb2%22%2c%22Oid%22%3a%22827ec0dc-59b5-40fd-bb54-77d06658b8a1%22%7dMeeting ID: 228 889 240 292 Passcode: 2CZt7uProposal Submission Deadline:December 23, 2022, 3:00pm