HomeMy WebLinkAboutHINDERLITER de LLAMAS & ASSOC. - 2002-01-30C. MA�Tlfj *V.
OTY OF HUNTINGTON BEA* oaO, � INIMA4 �Pf, vy,
MEETING DATE: MARCH 4, 2002
DEPARTMENT ID NUMBER: AS 02-0 5 Srv,
Council/Agency Meeting Held: 03-04-OE
Deferred/Continued to:
Approved ❑ Conditio all A roved ❑Denied
W- d ler ' Signature
Council Meeting Date: MARCH 4, 2002""T
epartment ID Number: AS 02-005
a
CITY OF HUNTINGTON BEACH
_2f
REQUEST FOR COUNCIL ACTION �—
SUBMITTED TO:
HONORABLE MAYOR AND CITY COUNCIL
SUBMITTED BY:
RAY SILVER, CITY ADMINISTRATOR 02a
PREPARED BY:
CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES
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SUBJECT:
AUTHORIZING CERTAIN CITY OFFICIALS, CITY EMPLOYEES AND
HINDERLITER DE LLAMAS AND ASSOCIATES TO ACCESS SALES AND
USE TAX RECORDS
Statement ofissue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue:
Should the City Council adopt a resolution allowing City Council, City Treasurer, City
Administrator, Assistant City Administrator, Director of Administrative Services, Director of
Economic Development, Finance Officer, Economic Development Manager, and Senior
Budget Analyst to access sales and use tax records from the State of California Franchise
Tax Board.
Funding Source:
Not Applicable
Recommended Action:
Adopt Resolution No. ���- a resolution of the City Council of the City of Huntington Beach
amending Resolution No. 5945 and Authorizing certain City Officials, City Employees and
Hinderliter, De Llamas and Associates access to Sales and Use Tax Records pursuant to
section 7056 of the Revenue and Taxation Code.
Alternative Action(s):
Do not approve resolution and maintain current access to sales and use tax records. /�
*REQUEST FOR ACTION •
MEETING DATE: MARCH 4, 2002 DEPARTMENT ID NUMBER: AS 02-005
Analysis:
In 1988 the City entered into an agreement with Hinderliter de Llamas and Associates (HdL)
to perform quarterly Sales Tax Audits. At that time the City Council approved Resolution
5945 authorizing the Mayor, City Administrator, Director of Administrative Services, Finance
Officer, and HdL access to the City's sales and use tax records, per section 7056 of the
Revenue and Taxation Code, no other individuals are authorized to view sales and use tax
records. The proposed resolution allows individuals who need or require access to the sales
and use tax records to legally review this information. All individuals who have access to
sales and use tax records will be required to sign a confidentially statement, stating that they
will protect the information and not use it for personal gain.
Environmental Status:
Not Applicable
Attachment(s):
il/v-d-ora-/3
Document1 -2- 02/21/02 12:33 PM
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ATTACHMENT #1
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RESOLUTION NO. 2002-13
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH AMENDING RESOLUTION NO. 5945 AND
AUTHORIZING CERTAIN CITY OFFICIALS, CITY EMPLOYEES AND
HINDERLITER, DE LLAMAS & ASSOCIATES ACCESS TO SALES AND
USE TAX RECORDS PURSUANT TO SECTION 7056 OF THE
REVENUE AND TAXATION CODE.
WHEREAS, pursuant to agreement with the City, the State of California Franchise Tax
Board provides the City with information contained in the files of the Franchise Tax Board
relating to sales and use tax transactions; and
On November 7, 1988, the City Council adopted Resolution No. 5945 which authorized
certain City officials and Hinderliter, de Llamas & Associates to receive and review information
related to sales tax and use tax transactions; and
The City wishes to amend Resolution No. 5945 and authorize additional City officials
and City employees to receive and review information relating to sales and use tax transactions
for the City of Huntington Beach from the Franchise Tax Board,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington
Beach as follows:
SECTION 1. The following City officials and City employees are authorized to receive
and review information relating to sales and use tax transactions for the City of Huntington
Beach from the Franchise Tax Board:
• Mayor
• City Councilmembers
• City Treasurer
• City Administrator
• Assistant City Administrator
• Director of Administrative Services
• Director of Economic Development
• Finance Officer
• Economic Development Project
Manager
• Senior Budget Analyst
SECTION 2. The following independent contractor for the City of Huntington Beach is
hereby authorized to receive and review information relating to sales and use tax transactions for
the City of Huntington Beach:
Hinderliter, de Llamas & Associates
Robert Hinderliter, Principal
Lloyd de Llamas, Principal
SECTION 3. The City Council of the City of Huntington Beach hereby certifies that
Hinderliter, de Llamas & Associates:
02reso/sales tar access/l/29/02
•
• Res. No. 2002-13
A. Has an existing contract with the City of Huntington Beach to receive
sales and use tax records; and
B. Is required by that contract to disclose information contained in, or derived
from, those sales and use tax records only to an officer or employee of the
City who is authorized by this resolution to examine the information; and
C. Is prohibited by that contract from performing consulting services for a
retailer during the term of that contract; and
D. Is prohibited by that contract from retaining the information contained in,
or derived from those sales tax records, after that contract has expired.
SECTION 4: All City officials and/or City employees hereby authorized to receive and
review information relating to sales and use tax transactions for the City shall execute a
confidential statement attached hereto as Exhibit A and incorporated herein by this reference.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 4th day of March , 2002.
ATTEST:
City Clerk 03-0-�-02
REVIEWED AND APPROVED:
City Admi istrator
Mayor Pro Tem
APPROVED AS TO FORM:
City Atto y s107,
g•�-oz
INITIATED AND APPR VED.
Director o Administrative Services
02reso/sales tax accessn/29/02 2
0
• Res. No. 2002-13
Exhibit A
State of California
Confidentiality Statement
Franchise Tax Board
Confidential tax return information is protected from disclosure by law, regulation, and
policy. Information security is strictly enforced. Violators may be subject to disciplinary,
civil and/or criminal action. Protecting confidential tax return information is in the
public's interest, the state's interest, and the City's interest.
A City official/City employee is required to protect the following types of information
received from the Franchise Tax Board:
• Taxpayer name
• Taxpayeraddress
• Taxpayer social security or taxpayer identification number
• Principal business activity code
A City official/employee is required to protect confidential information by:
• Accessing or modifying information only for the purpose of performing official duties.
• Never accessing or inspecting information for curiosity or personal reasons.
• Never showing or discussing confidential information to or with anyone who does not
have the need to know.
• Placing confidential information only in approved locations.
• Never removing confidential information from your work site without authorization.
Unauthorized inspection, access, use, or disclosure of confidential tax return information
is a crime under state laws, including but not limited to Sections 19542 and 19552 of the
California Revenue and Taxation Code and Section 502 of the Penal Code.
Unauthorized access, inspection, use, or disclosure may result in either or both of the
following:
• State criminal action
• State and/or taxpayer civil action
You are reminded that these rules are designed to protect everyone's right to privacy,
including your own.
1 certify that 1 have read the confidentiality statement printed above. 1 further certify and
understand that unauthorized access, inspection, use, or disclosure of confidential
information may be punishable as a crime and may result in disciplinary and/or civil
action being taken against me.
Name
Signature Date
02reso/sales tax access/1/29/02
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•
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
Res. No. 2002-13
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number.of members of the City .Council
of the City of Huntington Beach is seven; that the foregoing resolution was
passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at a regular meeting thereof held on the 4th
day of March, 2002 by the following vote:
AYES: Green, Dettloff, Bauer, Winchell
NOES: None
ABSENT: Cook, Houchen, Boardman
ABSTAIN: None
City.Clerk and ex-officio C erk of the
City Council of the City of
Huntington Beach, California
RCA AOUTING S11EET
INITIATING DEPARTMENT:
ADMINISTRATIVE SERVICES
SUBJECT:
AUTHORIZING CERTAIN CITY OFFICIALS, CITY
EMPLOYEES AND HINDERLITER DE LLAMAS AND
ASSOCIATES TO ACCESS SALES AND USE TAX
RECORDS
COUNCIL MEETING DATE:
MARCH 4, 2002
RCA ATTACHMENTS
w ;STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Attached
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney)
Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Not Applicable
Financial Impact Statement (Unbudget, over $5,000)
Not Applicable
Bonds (If applicable)
Not Applicable
Staff Report (If applicable)
Not Applicable
Commission, Board or Committee Report (If applicable)
Not Applicable
Findings/Conditions for Approval and/or Denial
Not Applicable
.... ..... . . . ... .. . EXPLANATION FOR MISSING ATTACHMENTS
EXPLANATION FOR RETURN OF ITEM: -
RCA Author: William McReynolds
Su ity
Hunt p Beach*
(Please transmit this form when your contract is ready to be filed in the City Clerk's office)
Contracts Checklist for Submittal to
City Clerk's Office
To: Connie Brockway, City Clerk
c
x5404
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N
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1. Name of Contractor:
1
°O,�,,
, r'
Hinderliter de Llamas and Associates
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y
2. Purpose of contract: For Example: Audit Services or Water Quality Testing Huntington Lake — Huntington Central Park
Sales Tax Audit and Information Services
3. Expiration Date: If no expiration date, please put a tentative expiration date so the City Clerk's office can inquire of your
department if the file is ready to inactivate.
12/31 /04
4. Amount of Contract:
$20,000 annually
A. Is the attached contract RELATED to a PREVIOUSLY SUBMITTED contract (renewal/amendment/etc)? 01"YES ❑ NO
B. Did you attach the LIST OF CONSULTANTS from whom proposals were requested — pursuant to HBMC 3.03.100? ❑ YES ❑ NIA
OR Is the attached contract a SOLE SOURCE? ES ❑ NIA
C. Did you attach a COPY of the insurance certificate/waiver and send the ORIGINAL to Risk Management? 01 ES
PLEASE INCLUDE:
tru LA) tw. 52)
Name/Extension
4j)d
Ili ) - - VICZ
Department
2 2—
Date
CITY CLERK'S OFFICE USE ONLY:
g1forms/city clerk contract checklist.doc
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
Hinderliter deLlamas and Associates
FOR
Sales Tax Audit and Information Services
THIS AGREEMENT ("Agreement") is made and entered into this 30th day of
January , 20_n, by and between the City of Huntington Beach, a municipal
corporation of the State of California, hereinafter referred to as "CITY, and
Hinderliter de Llamas and Associates , a California corporation
hereinafter referred to as "CONSULTANT."
WHEREAS, CITY desires to engage the services of a consultant to
. -.cni-rect sales tax infonmatim and
Pursuant to documentation on file in the office of the City Clerk, the provisions of
the Huntington Beach , Municipal Code, Chapter 3.03, relating to procurement of
professional service contracts have been complied with; and
CONSULTANT has been selected to perform these services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows:
1. SCOPE OF SERVICES
CONSULTANT shall provide all services as described in Exhibit "A"
which is attached hereto and incorporated into this Agreement by this reference. These
services shall sometimes hereinafter be referred to as the "PROJECT."
CONSULTANT hereby designates T.1 o d jP T,Tmnac who shall
represent it and be its sole contact and agent in all consultations with CITY during the
performance of this Agreement.
agree/forms/profserv10/15/01 1
2. CITY STAFF ASSISTANCE
CITY shall assign a staff coordinator to work directly with CONSULTANT
in the performance of this Agreement.
3. TERM; TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of CONSULTANT
are to commence as soon as practicable after the execution of this Agreement by CITY (the
"Commencement Date"). This Agreement shall expire on December 31, 2004
unless
sooner terminated as provided herein. 'All tasks specified in Exhibit "A" shall be
completed no later than December 31, 2004 , from the Commencement Date of this
Agreement. These times may be extended with the written permission of CITY. The time
for performance of the tasks identified in Exhibit "A" are generally to be shown in
Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed
to in writing by CITY and CONSULTANT.
4. COMPENSATION
In consideration of the performance of the services described herein, CITY
agrees to pay CONSULTANT on a time and materials basis at the rates specified in
Exhibit "B," a fee, including all costs and expenses, not to exceed
Twenty -Thousand annually Dollars ($ 20, 000 )
5. EXTRA WORK
In the event CITY requires additional services not included in Exhibit "A"
or changes in the scope of services described in Exhibit "A," CONSULTANT will
undertake such work only after receiving written authorization from CITY. Additional
agree/forms/profserv10/15/01 2
compensation for such extra work shall be allowed only if the prior written approval of
CITY is obtained.
6. METHOD OF PAYMENT
CONSULTANT shall be paid pursuant to the terms of Exhibit "B," which
is attached hereto and incorporated by reference into this Agreement.
7. DISPOSITION OF PLANS ESTIMATES AND OTHER DOCUMENTS
CONSULTANT agrees that title to all materials prepared hereunder,
including, without limitation, all original drawings, designs, reports, both field and office
notices, calculations, computer code, language, data or programs, maps, memoranda,
letters and other documents, shall belong to CITY, and CONSULTANT shall turn these
materials over to CITY upon expiration or termination of this Agreement or upon
PROJECT completion, whichever shall occur first. These materials may be used by CITY
as it sees fit.
8. HOLD HARMLESS
CONSULTANT hereby agrees to protect, defend, indemnify and hold
harmless CITY, its officers, elected or appointed officials, employees, agents and
volunteers from and against any and all claims, damages, losses, expenses, judgments,
demands and defense costs (including, without limitation, costs and fees of litigation of
every nature or liability of any kind or nature) arising out of or in connection with
CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent performance of
this Agreement or its failure to comply with any of its obligations contained in this
Agreement by CONSULTANT, its officers, agents or employees except such loss or
damage which was caused by the sole negligence or willful misconduct of CITY. CITY
agree/forms/profsery 10/ 15/01 3
shall be reimbursed by CONSULTANT for all costs and attorney's fees incurred by CITY
in enforcing this obligation. CONSULTANT will conduct all defense at its sole cost and
expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity
shall apply to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as limitation upon the amount of indemnification
to be provided by CONSULTANT.
9. PROFESSIONAL LIABILITY INSURANCE
CONSULTANT shall obtain and furnish to CITY a professional liability
insurance policy covering the work performed by it hereunder. This policy shall provide
coverage for CONSULTANT's professional liability in an amount not less than One
Million Dollars ($1,000,000) per occurrence and in the aggregate. The above -mentioned
insurance shall not contain a self -insured retention, "deductible" or any other similar form
of limitation on the required coverage except with the express. written consent of CITY. A
claims -made policy shall be acceptable if the policy further provides that:
A. The policy retroactive date coincides with or precedes the initiation
of the scope of work (including subsequent policies purchased as
renewals or replacements).
B. CONSULTANT shall notify CITY of circumstances or incidents
that might give rise to future claims.
CONSULTANT will make every effort to maintain similar insurance during
the required extended period of coverage following PROJECT completion. If insurance is
terminated for any reason, CONSULTANT agrees to purchase an extended reporting
agree/forms/profservl0/15101 4
provision of at least two (2) years to report claims arising from work performed in
connection with this Agreement.
10. CERTIFICATE OF INSURANCE
Prior to commencing performance of the work hereunder, CONSULTANT
shall furnish to CITY a certificate of insurance subject to approval of the City Attorney
evidencing the foregoing insurance coverage as required by this Agreement; the certificate
shall:
A. provide the name and policy number of each carrier and policy;
B. shall state that the policy is currently in force; and
C. shall promise that such policy shall not be suspended, voided or
canceled by either party, reduced in coverage or in limits except
after thirty (30) days' prior written notice; however, ten (10) days'
prior written notice in the event of cancellation for nonpayment of
premium.
CONSULTANT shall maintain the foregoing insurance coverage in force
until the work under this Agreement is fully completed and accepted by CITY.
The requirement for carrying the foregoing insurance coverage shall not
derogate from CONSULTANT's indemnification and defense obligations as set forth in
this Agreement. CITY or its representative shall at all times have the right to demand the
original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and
timely manner, the premiums on the insurance hereinabove required.
agree/forms/profserv10/15101 5
11. INDEPENDENT CONTRACTOR
CONSULTANT is, and shall be, acting at all times in the performance of
this Agreement as an independent contractor herein and not as an employee of CITY.
CONSULTANT shall secure at its own cost and expense, and be responsible for any and
all payment of all taxes, social security, state disability insurance compensation,
unemployment compensation and other payroll deductions for CONSULTANT and its
officers, agents and employees and all business licenses, if any, in connection with the
PROJECT and/or the services to be performed hereunder.
12. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike
manner. CITY may terminate CONSULTANT's services hereunder at any time with or
without cause, and whether or not the PROJECT is fully complete. Any termination of this
Agreement by CITY shall be made in writing, notice of which shall be delivered to
CONSULTANT as provided herein. In the event of termination, all finished and
unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become
its property and shall be promptly delivered to it by CONSULTANT.
13. ASSIGNMENT AND DELEGATION
This Agreement is a personal service contract and the work hereunder shall
not be assigned, delegated or subcontracted by CONSULTANT to any other person or
entity without the prior express written consent of CITY. If an assignment, delegation or
subcontract is approved, all approved assignees, delegates and subconsultants must satisfy
the insurance requirements as set forth in Sections 9 and 10 hereinabove.
agree/forms/profserv10/15/01 6
14. COPYRIGHTS/PATENTS
CITY shall own all rights to any patent or copyright on any work, item or
material produced as a result of this Agreement.
15. CITY EMPLOYEES AND OFFICIALS
CONSULTANT shall employ no CITY official nor any regular CITY
employee in the work performed pursuant to this Agreement. No officer or employee of
CITY shall have any financial interest in this Agreement in violation of the applicable
provisions of the California Government Code.
16. NOTICES
Any notices, certificates, or other communications hereunder shall be given
either by personal delivery to CONSULTANT's agent (as designated in Section 1
hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed
envelope, postage prepaid, and depositing the same in the United States Postal Service, to
the addresses specified below. CITY and CONSULTANT may designate different
addresses to which subsequent notices, certificates or other communications will be sent by
notifying the other party via personal delivery, a reputable overnight carrier or U. S.
certified mail -return receipt requested:
TO CITY:
TO CONSULTANT:
City of Huntington Beach Hindliter de Llamas and Associates
ATTN: Senior Budget Analyst - Revenues 1340 Valley Vista Drive #200
2000 Main Street
Huntington Beach, CA 92648 Diamond Bar, CA 91765
agree/forms/profsery 10/ 15/01 7
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17. CONSENT
When CITY's consent/approval is required under this Agreement, its
consent/approval for one transaction or event shall not be deemed to be a consent/approval
to any subsequent occurrence of the same or any other transaction or event.
18. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid
unless in writing and duly executed by both parties.
19. SECTION HEADINGS
The titles, captions, section, paragraph and subject headings, and descriptive
phrases at the beginning of the various sections in this Agreement are merely descriptive
and are included solely for convenience of reference only and are not representative of
matters included or excluded from such provisions, and do not interpret, define, limit or
describe, or construe the intent of the parties or affect the construction or interpretation of
any provision of this Agreement.
20. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed
as a whole, according to its fair meaning, and not strictly for or against any of the parties.
If any provision of this Agreement is held by an arbitrator or court of competent
jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate
or affect the remaining covenants and provisions of this Agreement. No covenant or
provision shall be deemed dependent upon any other unless so expressly provided here.
As used in this Agreement, the masculine or neuter gender and singular or plural number
shall be deemed to include the other whenever the context so indicates or requires.
agree/forms/profserv10/15/01 8
Nothing contained herein shall be construed so as to require the commission of any act
contrary to law, and wherever there is any conflict between any provision contained herein
and any present or future statute, law, ordinance or regulation contrary to which the parties
have no right to contract, then the latter shall prevail, and the provision of this Agreement
which is hereby affected shall be curtailed and limited only to the extent necessary to bring
it within the requirements of the law.
21. DUPLICATE ORIGINAL
The original of this Agreement and one or more copies hereto have been
prepared and signed in counterparts as duplicate originals, each of which so executed shall,
irrespective of the date of its execution and delivery, be deemed an original. Each
duplicate original shall be deemed an original instrument as against any party who has
signed it.
22. IMMIGRATION
CONSULTANT shall be responsible for full compliance with the
immigration and naturalization laws of the United States and shall, in particular, comply
with the provisions of the United States Code regarding employment verification.
23. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONSULTANT and CITY agree that CITY is not liable for payment of any
subcontractor work involving legal services, and that such legal services are expressly
outside the scope of services contemplated hereunder. CONSULTANT understands that
pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive
legal counsel for CITY; and CITY shall not be liable for payment of any legal services
expenses incurred by CONSULTANT.
agree/forms/profsery 10/ 15101 9
24. ATTORNEY'S FEES
Except as expressly set forth in Section 8 of this Agreement, in the event
suit is brought by either party to construe, interpret and/or enforce the terms and/or
provisions of this Agreement or to secure the performance hereof, each party shall bear its
own attorney's fees, such that the prevailing party shall not be entitled to recover its
attorney's fees from the non -prevailing party.
25. SURVIVAL
Terms and conditions of this Agreement, which by their sense and context
survive the expiration or termination of this Agreement shall so survive.
26. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the
laws of the State of California.
27. ENTIRETY
The parties acknowledge and agree that they are entering into this
Agreement freely and voluntarily following extensive arm's length negotiation, and that
each has had the opportunity to consult with legal counsel prior to executing this
Agreement. The parties also acknowledge and agree that no representations, inducements,
promises, agreements or warranties, oral or otherwise, have been made by that party or
anyone acting on that party's behalf, which are not embodied in this Agreement, and that
that party has not executed this Agreement in reliance on any representation, inducement,
promise, agreement, warranty, fact or circumstance not expressly set forth in this
Agreement. This Agreement, and the attached exhibits, contain the entire agreement
between the parties respecting the subject matter of this Agreement, and supercede all prior
agree/forms/profserv10/15101 10
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understandings and agreements whether oral or in writing between the parties respecting
the subject matter hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by and through their authorized offices the day, month and year first above
written.
CONSULTANT,
HINDERLITER DE LLAMAS & ASSOCIATES
By:
print name
ITS: (circle one) Chairma residen ice President
AND
By:L.
CIS M. DELACH
print name
ITS: (circle one) Secreta Chief Financial Officer sst.
Secretary - Treasurer
agree/forms/profserv10/15101 11
CITY OF HUNTINGTON BEACH,
a municipal corporation of the State of California
Director of cfini nstrative Services
ursuant To HBMC §3.03.100)
APPROVED AS TO FORM:
P y <
2'6 —DZ
-F City Attorney
REVIEWED AND APPROVED:
City Administrator
(only for contracts over $50, 000.00)
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PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
Hinderliter de Llamas and Associates
FOR
Sales Tax Audit and Information Services
Table of Contents
Scopeof Services.....................................................................................................1
CityStaff Assistance................................................................................................2
Term; Time of Performance.....................................................................................2
Compensation..........................................................................................................2
ExtraWork...............................................................................................................2
Methodof Payment..................................................................................................3
Disposition of Plans, Estimates and Other Documents...........................................3
HoldHarmless.........................................................................................................3
Professional Liability Insurance.............................................................................4
Certificate of Insurance............................................................................................5
IndependentContractor............................................................................................6
Termination of Agreement.......................................................................................6
Assignment and Delegation......................................................................................6
Copyrights/Patents............................................................................:......................7
City Employees and Officials..................................................................................7
Notices.........................................................................................7
Consent....................................................................................................................8
Modification.............................................................................................................8
SectionHeadings.....................................................................................................8
Interpretation of this Agreement..............................................................................8
DuplicateOriginal....................................................................................................9
Immigration...............................................................................................................9
Legal Services Subcontracting Prohibited................................................................9
Attorney's Fees..........................................................................................................10
Survival......................................................................................................::.............10
GoverningLaw.........................................................................................................10
Entirety......................................................................................................................10
0 EXHIBIT "A" 0
A. STATEMENT OF WORK: (Narrative of work to be performed)
The City desires the combination of data entry, report preparation, and data
analysis necessary to effectively manage the municipal sales tax base and
recover revenues erroneously allocated to other jurisdictions.
B. CONSULTANT'S DUTIES AND RESPONSIBILITIES:
Sales tax and economic analysis
1. Consultant shall establish a special database that identifies the name,
address and quarterly allocations of the major sales tax producers within the
City.
2. Provide updated reports each quarter identifying changes in sales by major
outlets and by category; area growth and decline comparisons; and current
graphics, tables, and top 100 listings.
3. Provide a non -confidential newsletter each quarter for the City and its
Redevelopment Agency.
4. Provide annual reports identifying historical growth comparisons with state,
county, selected city averages and CPI indices; top producer listings and
make up and volatility of the economic base.
Allocation Audit and Recovery
6. Consultant shall conduct on -going sales tax audit in order to identify and
correct "point of sale" distribution errors and thereby generate previously
unrealized sales tax income for the City.
6. Consultant will initiate contacts with the appropriate sales management and
accounting officials in companies that have businesses where a probability of
error exists to verify whether current tax receipts accurately reflect the local
sales activity.
7. Consultant shall prepare and submit reports to the Board of Equalization
providing all information necessary to accurately and timely correct any
allocation errors that are identified and shall follow-up with appropriate
agencies to recover all back quarter payment due the City.
8. If consultant finds businesses located in the City that are properly reporting
sales tax but have the potential for modifying their operation to provide an
even greater share to the City, consultant will work with those businesses
and the City to encourage such changes.
jmp/contracts group/exA/l/25/02
0 EXHIBIT "A"
On -Going Consultation
9. Consultant shall, at the request of the City work with the City and the
Redevelopment Agency staffs on questions related to proper tenant mix for
maximum sales tax returns; advise City business license staff on utilization of
reports to enhance business license collection efforts; train internal staff in
the fundamentals of sales tax auditing should the City opt to resume
responsibility for future follow up.
C. CITY'S DUTIES AND RESPONSIBILITIES:
1. City shall adopt a resolution in a form acceptable to the State Board of
Equalization and in compliance with Section 7056 of the Revenue and
Taxation Code, authorizing the Consultant to examine the confidential sales
tax records of the City
2. The City agrees to provide any information or assistance that may readily be
available such as business license records which identify owners and
telephone numbers of specific businesses within the City and copies of
monthly sales tax allocations reports received from the Board of Equalization.
jmp/contracts group/exA/1/25/02
• EXHIBIT "B" •
Payment Schedule (Hourly Payment)
A. Hourly Rate:
CONSULTANT'S fees for such services shall be based upon the following hourly rate and
cost schedule:
Sales Tax reporting two thousand four hundred dollars ($2,400.00) quarterly for the services
rendered in the prior three months. Contractor shall be further paid 15% of all new Sales
and/or Use tax revenue which are received by the City as a result of audit and recovery work
performed by Contractor.
B. Travel
Charges for time during travel are normally not reimbursable and will only be paid
if such time is actually used in performing services for CITY or as otherwise
arranged with CITY.
2. As CITY sometimes uses consultants that are outside of the nearest metropolitan
area, CITY is very conscious of travel costs. Subject to agreement otherwise,
CONSULTANT will be held to charging no fees on travel time to or from
Huntington Beach.
3. Automobile expenses are limited to Twenty-seven Cents ($0.27) per mile. All other
travel expenses must be approved in advance by CITY in writing. Requests for
approval shall be submitted at least fourteen (14) days in advance, to allow for
reduced transportation fares. Meals are not billable to CITY, without prior written
consent of CITY.
C. Billing
All billing shall be done monthly in one -tenth -hour (0.10) increments and matched
to an appropriate breakdown of the time that was taken to perform that work and
who performed it.
Minimum billing charges are unacceptable. CONSULTANT shall only charge for
actual time spent. For example, minimum of 0.2 hours for phone calls or 0.4 hours
for letters is unreasonable unless that is an accurate measure of time spent.
2. Each month's bill should include a total to date. That total should provide, at a
glance, the total fees and costs incurred to date for the case or matter.
3. Telephone, cellular phone and postage charges are billable at actual cost. A copy of
all service bills/costs should accompany the billing for each single item that exceeds
Seventy -Five Dollars ($75.00). The fee for the sending or receiving of facsimiles
agree/forms/exB-hourly fee/1/18/02 EXHIBIT B
Hourly Payment
• EXHIBIT "B" •
Payment Schedule (Hourly Payment)
shall not exceed Twenty-five Cents ($0.25) per page. CITY will not pay a fee or
charge for telephone calls or facsimiles to CITY. Photocopier costs should be no
more than the actual cost of duplication, or Ten Cents ($0.10) per page, whichever
is less.
4. CITY will not pay for secretarial time or secretarial overtime. CITY will not pay
for secretarial tasks or tasks that should be subsumed into CONSULTANT's
overhead. For example, time spent for faxing, mailing, arranging for messengers
and calendaring are not acceptable charges.
5. CITY will not pay for word processing charges. This includes per page or hourly
charges.
6. CITY will not pay for billing or discussion of bills. If CITY has questions about
billing or needs additional information on bills, that is not a chargeable event;
CONSULTANT should respond without charging CITY for the time required.
7. CITY appreciates when CONSULTANT has researched an issue previously and
uses that research on the present case. CITY has retained CONSULTANT because
of its past experience. CONSULTANT shall not charge CITY for work it has done
and billed another client for in the past.
8. Delivery of work product: A copy of every memorandum, letter, report, calculation
and other documentation prepared by CONSULTANT shall be submitted to CITY to
demonstrate progress toward completion of tasks. In the event CITY rejects or has
comments on any such product, CITY shall identify specific requirements for
satisfactory completion.
9. CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such
invoice shall:
A) Reference this Agreement;
B) Describe the services performed;
C) Show the total amount of the payment due;
D) Include a certification by a principal member of CONSULTANT's firm that
the work has been performed in accordance with the provisions of this
Agreement; and
E) For all payments include an estimate of the percentage of work completed.
Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is
making satisfactory progress toward completion of tasks in accordance with this
Agreement, CITY shall approve the invoice, in which event payment shall be made
within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be
unreasonably withheld. If CITY does not approve an invoice, CITY shall notify
CONSULTANT in writing of the reasons for non -approval and the . schedule of
performance set forth in Exhibit "A" may at the option of CITY be suspended until the
agree/forms/exB-hourly fee/l/18/02 EXHIBIT B 2
Hourly Payment
• EXHIBIT "B" 0
Payment Schedule (Hourly Payment)
parties agree that past performance by CONSULTANT is in, or has been brought into
compliance, or until this Agreement has expired or is terminated as provided herein.
10. Any billings for extra work or additional services authorized in advance and in writing
by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the
information required above, and in addition shall list the hours expended and hourly
rate charged for such time. Such invoices shall be approved by CITY if the work
performed is in accordance with the extra work or additional services requested, and if
CITY is satisfied that the statement of hours worked and costs incurred is accurate.
Such approval shall not be unreasonably withheld. Any dispute between the parties
concerning payment of such an invoice shall be treated as separate and apart from the
ongoing performance of the remainder of this Agreement.
agree/forms/exB-hourly fee/l/18/02 EXHIBIT B 3
Hourly Payment
su 'Iy INSU NCE AND INDEMNIFIC TION WAIVER
MODIFICATION REQUEST
1.
Requested by: William McReynolds
2.
Date: January 25, 2002
3.
Name of contractor/permittee: Hinderliter de Llamas and Associates
4.
Description of work to be performed: Sales Tax Audit and Information Services
5.
Value and length of contract: $20,000 annually for 3 years
6.
Waiver/modification request: Professional Liability
7.
Reason for request and why it should be granted: Consulant does not carry Professional
Liability Insurance.
8.
Identify the risks to the City in approving this waiver/modification: None
1 /25/02
Depa ent Head Signature Date:
APPROVALS
Approvals must be obtained in the order listed on this form. Two approvals are required'
for a request to be granted. Approval from the City' Administrator's Office is only required: if
Risk Management and the City Attorney's Office disagree.
1.
Risk Management
'
AApprovedElZ Denied C( 5 o L
-77 Signature Date
2.
City Attorney's Office n
/ l Approved ❑ Denied . 2 7 oz
Signature Date
3.
City Administrator's Office
❑ Approved ❑ Denied
Signature Date
If approved, the completed waiver/modification request is to be submitted to the
City Attorney's Office along with the contract for approval. Once the contract has been approved,
this form isto>be filed -with the Risk Management Division of Administrative Services
Hril Inciornnra Wnviar 112SM7 2-97 PM
Su; iN PR FESSIONAL SERVIC CONTRACTS
HPURCHASING CERTIFICATION
1. Requested by: William McReynolds
2. Date: January 25, 2002
3. Name of consultant: Hinderliter de Llamas and Associates
4. Description of work to be performed: Sales Tax Audit and Information Services
5. Amount of the contract: $20,000.00
6. Are sufficient funds available to fund this contract?' ® Yes,✓ ❑ No
7. Company number and object code where funds are budgeted:10035301.69540
8. Is this contract generally described on the list of professional service contracts
approved by the City Council'? ® Yes, ❑ No
9. Is this contract within $25,000 or 25% (whichever is less) of the amount stated on
the list of professional service contracts approved by the City Council?'
® Yes, ❑ No
10. Were (at least) written proposals re este f th�rJ�e q�nsultants?
Yes, �Pd No �6�-- uT
11. Attach list of consultants from whom propo Is were requested (including a
contact telephone number). (o�\5,V4�,
&-A so v,cos 6 b� � ���� �� �,
<i
12. Attach proposed scope of work.
13. Attach proposed payment schedule. L,,l
R
�HARD'AMADRIL, Manac
rchasing/Central Services
' If the answer to any these questions is "No," the contract will require approval from the City Council.
Document] 1/25/02 2:57 PM