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HomeMy WebLinkAboutReso 122-91 HDL SalesTaxAnalysi RESOLUTION NO. 122-91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING AN AMENDMENT TO AGREEMENT BETWEEN THE CITY OF DUBLIN AND HINDERLITER, DE LLAMAS AND ASSOCIATES, CONSULTANTS WHEREAS, the City Manager has presented an agreement entitled "FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF DUBLIN AND HINDERLITER, DE LLAMAS, AND ASSOCIATES"; and WHEREAS, said amendment is attached hereto, marked as Exhibit A, and by reference is considered part of this resolution; and ~FHEREAS, the City Council is familiar with the provisions of said agreement. NOW, therefore, be it resolved that the City Council does hereby approve said amendment to the agreement and authorizes the City Manager to execute said agreement (Exhibit A). PASSED, APPROVED AND ADOPTED this 25th day of November, 1991. AYES: Councilmembers Burton, Howard, Jeffrey, Moffatt and Mayor Snyder NOES: None ABSENT: None ABSTAIN: None ATTEST: FIRST AMENDMENT TO "AGREEMENT FOR SALES TAX ANALYSIS, AUDIT AND INFORMATION SERVICES" BETWEEN CITY OF DUBLIN AND HINDERLITER, DE LLAMAS AND ASSOCIATES The Agreement between the City of Dublin and Hinderliter, de Llamas and Associates, dated August 14, 1989, entitled "Agreement for Sales Tax Analysis, Audit and Information Services" (hereafter "Agreement") is hereby amended as follows: SECTION 1: Subparagraph 7 is added to Paragraph A of Section I, SERVICES, of the Agreement, to read as follows: "7. Pursuant to Section I A6 of this Agreement, Contractor shall perform the following services: Contractor shall conduct a sales tax audit in order to generate previously unrealized sales. and use tax income for the City. The sales tax audit shall include those steps set forth in items (a) to (e) in Section I A6 of the Agree- ment. The sales tax audit shall be completed no later than , 1992. Contractor shall prepare and submit to the Board of Equalization all information necessary to correct any allocation errors that are identified pursuant to the sales tax audit and shall follow up with the individual businesses and the State Board of Equalization to ensure that all back quarter payments. due the City are recovered. Copies of all correspondence between Consultant, individual businesses, and State Board of Equalization shall be provided to the City. If, during the course of the sales tax audit, Contractor identifies businesses located in the City that are properly reporting sales tax but have the potential for modifying their opera- tions to provide an even greater share of sales tax to the City, Contractor will work with those businesses and the City to encourage such changes." 11.20.91 114\agree\hindr[tr.ame -1- SECTION 2: Paragraphs C and D are added to Section III, CONSIDERATION, of the Agreement to read as follows: IIC, Contractor shall be paid 15% of all new sales and/or use tax revenues received by City as a result of the sales tax audit performed by Contractor (hereafter referred to as "audit fees") pursuant to Subpara- graph 7 of Paragraph A of Section I. "New sales and/or use tax revenues" shall include only amounts determined by City, as set forth below, to be attri- butable to the performance by Contractor of the sales tax audit. Audit fees shall be calculated as follows. The audit fee shall be payable for the first eight quarters following completion of the audit. The audit fees shall be equal to the difference between the sales and use tax receipts of the business for the corresponding quarter during the year preceding the completion of the audit and the sales and use tax receipts for the quarter for which fees are sought. Notwithstanding the foregoing, no audit fees shall be payable unless (1) the City, at its sole discretion, determines that the new sales and/or use tax revenues are attributable to the performance by Contractor of the sales tax audit, and (2) the Contractor has provided City with documentation from the State Board of Equalization of a State Fund Transfer to the account of the City of the new sales and/or use tax or the City has received the sales and/or use tax revenues for which the audit fee is claimed. Contractor shall submit to City an itemized quarter- ly invoice showing all formula calculations for amounts claimed due for audit fees, together with evidence of agreement by the State Board of Equali- zation to make changes in allocation formulae and evidence of receipt by City of new sales and/or use tax revenues, for approval by the City. City shall approve or disapprove items on such invoice within 30 days of receipt of the invoice. The audit fees approved by City shall be paid within 15 days of City approval. Contractor shall obtain City approval prior to beginning the work of correcting tax reporting methodology or "point of sale" for specific businesses where payment of the audit fee will be claimed. Said approval shall be accomplished by the City Manager or his designated representative on the Sales Tax Audit Authorization form, a copy of which is attached as 'Exhibit A.' -2- 11.20.91 114\agree\h~ndrltr.ame The sum specified in Paragraph C above shall con- stitute full reimbursement to Contractor for all direct and indirect expenses incurred by Contractor in performing the sales tax audit specified in Subparagraph 7 of Paragraph A of Section I including such expenses as the salaries of Contractor's employees and travel expenses connected with contacting local and out-of-state businesses and Board of Equalization representatives." SECTION 3: Section IV, CITY MATERIALS AND SUPPORT, of the Agreement is amended to read as follows: "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 Contractor to examine the confidential sales tax records of City. City further agrees to provide any information or assistance that may readily be available, such as business license records within the City, and to provide Contractor with proper identification for contacting businesses. City further agrees to provide copies of the monthly allocation reports received for the most recent five quarters from the execution of this Agreement and to continue to provide copies of future monthly alloca- tion reports on computer readable magnetic media until such time as all audit adjustments have been completed by the State Board of Equalization and percentage reim- bursements due the Contractor have been paid." SECTION 4: Section V, TERMINATION, of the Agreement is amended to read as follows: "This Agreement may be terminated by either party' by giving 30 days' written notice to the other of such termination and specifying the effective date thereof. Upon the presentation of such notice, Contractor may continue to work through the date of termination. Upon termination as provided herein, Contractor shall be paid the value of tax analysis and reporting work performed less payments previously made by City. Compensation for any sales tax audit work previously authorized and satis- factorily performed shall be made in the manner and at the times provided in the section entitled 'Considera- tion'." 11.20,91 114\agree\hindrltr.ame -3- All documents, data surveys and reports prepared by Contractor pursuant to this Agreement shall be considered the property of the City, and upon payment for services performed by Contractor, such documents and other identified materials shall be delivered to City by Contractor." Except as expressly amended herein, the Agreement shall remain in full force and effect. CITY CITY OF DUBLIN Attest: City~~k~~ CONTRACTOR HINDERLITER, de LLAMAS & ASSOCIATES, a California corporation By: As Its: Approved as to form: City Attorney 11.20.91 114\agree\hi ndrt tr, ame -4-