HomeMy WebLinkAboutItem 4.5 Sales Tax Audit CITY OF DUBLIN
AGENDA STATEMENT
MEETING DATE: November 25, 1991
SUBJECT : Report on sales tax audit
EXHIBITS ATTACHED : 1 . Proposed Resolution approving the first
amendment to the agreement between the City and
Hinderliter DeLlamas and Associates (consultant) .
2. The proposed amendment to the agreement
between the City and Consultant.
3. Current agreement with Hinderliter DeLlamas
and Associates dated August 14, 1989.
RECOMMENDATIONS 1 . Review amendment to the agreement
2. Authorize staff to amend the contract with
/"� j>'Hinderliter and DeLlamas to conduct a sales tax
7,t audit.
3. Appropriate the necessary amount to pay for
the audit from new found revenues that are
generated from the audit.
FINANCIAL STATEMENT: Because the audit fee for the contract with
Hinderliter and DeLlamas is based upon previously
unidentified retail transactions, no estimate for
the new found revenue is available at this time.
Staff will provide the Council with updates on
the results of the audit as they become
available. Should the audit produce no new
sales tax revenues to the City, there will be no
consultant expenses incurred.
DESCRIPTION: The City Council directed the Finance Department to
prepare a report on the feasibility of generating new revenues through
the use of a sales tax `audit' . This report was originally scheduled
to be completed by 1990, but Council allowed an extension of the
deadline in order to integrate the information gathered from the
City's new business licensing program.
BACKGROUND:
After reconciling the sales tax report with the business license file,
it was determined that there were eight businesses that should, but
did not have sales tax permits (this determination was based upon
information submitted on the license application forms).
It was also determined that there were 54 businesses that have both a
sales tax permit and a City business license permit, but were not
reporting sales tax transactions for the City of Dublin. This
signified that though these entities continue to conduct retail
business in Dublin the taxable sales transactions are being credited
to some other agency.
The staff provided the State Board of Equalization with both lists of
these businesses along with their location addresses. The District
Office will in-turn contact those businesses and when appropriate will
require that each business file necessary sales tax permit forms,
which will assure that Dublin will receive the revenue from taxable
sales activities of those businesses.
CITY CLERK
®. FILE 161 0 0 3 0
INTENT OF SALES TAX AUDIT:
The main reason for conducting a sales tax audit is to increase sales
tax revenues from non-reporting businesses. There are two paths
available to achieve that result: 1) . one path allows the City to
identify small retail businesses located in Dublin that do not report
sales taxable transactions that are taking place in Dublin, and 2) .
the second path results in the identification of businesses with
branch activity in Dublin but with headquarters offices located
outside Dublin. The purpose of the second path is to make sure that
those branch businesses are reporting Dublin sales properly so that
the City receives the sales tax revenues from those sales originating
in Dublin.
The City Staff has performed the reconciliation necessary to identify
the locally based businesses that were either not reporting or
improperly reporting taxable sales transactions. The staff does not
have the tools, to undertake the work identified in the second path. A
consultant firm with access to a state wide data base must be used to
locate branch offices that are transacting business in Dublin. This
part of the audit work consists mostly of comparing Dublin's
sales-tax-generators to the sales-tax-generators in all other
California cities. According to Hinderliter and DeLlamas, 80% of this
audit work is accomplished by the consultant's staff pouring through
reams of computer reports at their office looking for common sales tax
generators that are not identified on the State Sales Tax Reports as
doing business in Dublin. This is done to identify the businesses
most likely transacting sales activities in Dublin, that might also
be improperly crediting those sales tax transactions to another
agency. The rest of the audit work is a combination of phone calls and
letters requesting answers to the questions about point-of-sales,
followed by a canvassing of the businesses in Dublin that do not
respond to either the letters or the phone calls.
SURROUNDING CITIES:
The Cities of Livermore and Pleasanton have used the consulting firm
of Hinderliter and DeLlamas to perform sales tax audits. The amount of
new sales tax revenues generated in these two cities has been
estimated at between $100,000 and $400,000 respectively for the two
cities for the period under audit. This represents an approximate
increase of between 2 and 4% of their sales tax revenues. But these
results are due to the fact that, neither of those two cities
attempted to reconcile tax reports against business license files
before using the consultants for their sales tax audits.
FEES FOR A SALES TAX AUDIT:
The contractor will be paid 15% of any new sales tax revenues that
Dublin receives that are the direct result of the audit work. Though
the fees for the audit begin at the commencement of the audit work and
continue for a period of eight quarters, it is likely that the City
will not pay any fees until the last quarter of this fiscal year.
RECOMMENDATION:
Since the proposed audit will potentially generate additional revenues
that the City would otherwise be unable to identify it is staff's
recommendation that the Council authorize the expansion of the
existing contract with Hinderliter and De Llamas to allow them to
conduct the sales tax audit.
RESOLUTION NO. -91
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
APPROVING AN AMENDMENT TO AGREEMENT BETWEEN THE CITY
OF DUBLIN AND HINDERLITER, DELLAMAS 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
WHEREAS, 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:
NOES:
ABSENT:
ABSTAIN:
Mayor
City Clerk
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FIRST AMENDMENT TO "AGREEMENT FOR BALES TAX ANALYSIS,
AUDIT AND INFORMATION SERVICES" BETWEEN CITY OF DUBLIN
AND RINDERLITER, DE LLAMAS AND ASSOCIATES
The Agreement between the City of Dublin and Hinderlitex, 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:
117. Pursuant to section I A6 of this Agreement,
Contractor shall perform the following services:
a. Contractor shall conduct a sales tax audit in
order to generate previously unrealized gales
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.
b. 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.
C. 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. "
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SECTIQU-2,L
Paragraphs C and D are added to Section III, CONSIDERATION,
of the Agreement to read as follows:
"C. 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. "Now 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 or to
useh tax account
thef City Chas
of the new Asa and/or
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. '
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D. 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' . "
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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 CONTRACTOR
CITY OF DUBLIN HIHDERLITER, de LLAMAS &
ASSOCIATES, a California
corporation
Mayor
By:
Attest:
As Its:
city Clerk
Approved as to form:
City Attorney
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EXHIBIT A
Sales Tax Audit
Work Authorization No.
The following business or businesses, located in the City of
Dublin, have been identified as having the potential for
generating additional sales tax revenue to the City of Dublin.
Consultant is hereby authorized to contact the given business(s)
and the State Board of Equalization to verify the accuracy of the
current reporting methodology and obtain the necessary
documentation for the Board of Equalization, to modify allocation
formulas, and to return previous misallocated revenue that may be
due to City.
Consultant compensation shall be 15% of the new sales and/or use
tax revenue received by the City as result of audit and recovery
work performed by Consultant, as set forth in the Agreement
between Consultant and City dated 1991.
CITY OF DUBLIN
By: City Manager
Date
HINDERLITER, DE LLAMAS AND ASSOCIATES
By:
Date
AGREEMENT FOR SALES TAX ANALYSIS, AUDIT AND INFORMATION SERVICES
This agreement is made and entered into as of this 1— day of
. ' , 1.989 by and between the City of Dublin, a
U reinafter �called CITY, and HINDERLITER,
municipal corporation he
DE LLAMAS AND ASSOCIATES a California Corporation, hereinafter
called CONTRACTOR.
RECITALS
WHEREAS, sales tax revenues can be increased through: a system
of continuous monitoring, identification and correction of "point
of sale" allocation errors and;
WHEREAS, an effective program of sales tax management will
improve identification of sales tax opportunities as they relate
to economic development and provide for more accurate sales tax
forecasting; and
WHEREAS, City desires the combination of data entry, report
preparation, and data analysis necessary to effectively manage
the municipal sales tax base; and
WHEREAS, Contractor has the programs , equipment and personnel
required to deliver the sales tax services referenced herein;
THEREFORE, City and Consultant, for the consideration hereinafter
described, mutually agree as follows :
1
I . SERVICES
The Contractor shall perform the following services:
A. Sales tax and economic analysis
1 . Contractor shall establish a special data base that
identifies the name, address and quarterly allocations of the
major sales tax producers within the City for the most
current and previous four quarters from the date of this
agreement. Major sales tax producers are defined as those
businesses meeting a quarterly revenue threshold determined
by City. Since 100% of the business outlets registered with
the Board of Equalization are tracked monthly, this major
producers data base is designed to highlight the activities
of major businesses . A second data base covering the same
period will be established showing total sales tax receipts
for each business category identified by the Board of
Equalization. These data bases will be utilized to generate
special reports to the City on: major sales tax producers by
rank and category, analysis of sales tax activity by category
and business districts or redevelopment areas specified by
City, analysis of reporting aberrations , and per capita and
outlet comparisons with state wide sales.
2 . Contractor shall provide up-dated 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 of sales tax revenue
2
generators. Quarterly aberrations due to State audits, fund
transfers, and receivables along with late or double payments
will be identified.
3 . Contractor will additionally provide an analysis at least
once a year for the City and/or its Redevelopment Agency to
share with Chambers of Commerce and other economic
development interest groups that analyze City' s sales tax
trends by major groups, and geographic areas without
disclosing confidential information.
4 . Contractor will provide annual reports for the Manager
and City Council identifying historical growth comparisons
with state, county, selected city averages and C.P.I .
indices; top producer listings and make up and volatility of
the economic base. Annual reconciliation work sheets to
assist Finance officers with budget forecasting will also be
provided.
5 . Contractor shall make available to City Staff the HdL
DATA computer program and data base containing sellers permit
information for all in-city business outlets registered with
the Board of Equalization. In addition, Contractor shall
process for City the monthly registration and allocation
files provided by the Board in magnetic* media. Printouts of
registration changes and dollars allocated by business name
and number will be provided from these files on a monthly
basis.
3
6 . Only after receiving specific written authorization from
City, the Contractor shall undertake the sales tax audit.
The fees for this additional service shall be negotiated at
that time . The sales .tax audit shall include at a minimum:
a. the monitoring and correcting of transposition errors, and
erroneous consolidation of multiple outlets; b. the reporting
and correcting of "point of sale" from the wrong location; c.
identifying and rectifying delays in reporting new outlets;
d. the correction of the wrongful identification of
transactions as a "use tax" rather than a sales tax" , and e.
the recognition of the erroneous fund transfers/adjustments .
Contractor will be responsible for initiating contacts with
appropriate accounting officials, etc. in businesses where
the probability of error exists that current tax receipts
differ from sales tax reporting; any such contract shall be
made in a manner to encourage the business to remain and grow
in Dublin. All necessary contact with the Board of
Equalization to correct allocation errors that are identified
and all necessary follow-up work shall be the responsibility
of the Contractor.
B. On Going Consultation
Contractor shall work with City and City Redevelopment Agency
Staffs on questions related to tenant mix alternatives for
maximum sales tax returns; and if the City should establish a
business license ordinance, Contractor will advise City business
license staff on utilization of reports to enhance business
4
license collection efforts; provide sales tax projections on
specific projects for redevelopment negotiation and city budget
purposes; and provide sample reports, letters and programs to
enhance the sales tax base through improved economic development
efforts.
II . CONFIDENTIALITY
Section 7056 of the State of California Revenue and Taxation code
specifically limits the disclosure of confidential taxpayer
information contained in the records of the State Board of
Equalization. ` This section specifies the conditions under which
a City may authorize persons other than City officers and
employees to examine State Sales and Use Tax records.
The following conditions specified in Section 7056 (b) , (1) of the
State of California Revenue and Taxation Code are hereby made
part of this contractual agreement.
A. Contractor is authorized by this agreement to examine sales
and use tax records of the Board of Equalization provided to
City pursuant to contract under the Bradley-Burns uniform
Sales and Use Tax Law.
B. Contractor is required 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
resolution to examine the information.
5
C. Contractor is prohibited from performing consulting services
for a retailer during the term of this agreement.
D. Contractor is prohibited from retaining the information
contained in, or derived from those sales and use tax
records , after this agreement has expired. Information
obtained by examination of Board records shall be used only
for purposes related to collection of local sales and use tax
or for other governmental functions of the City as set forth
by resolution adopted pursuant to Section 7056(b) of the
Revenue and Taxation Code. The resolution shall designate
the Contractor as a person, authorized to examine sales and
use tax records and certify that this agreement meets the
requirements set forth above and in Section 7056 (b) , (1) of
the Revenue and Taxation Code.
III . CONSIDERATION
A. Contractor shall establish the sales tax and audit data bases
and shall provide the monthly and quarterly updates
referenced above for a fee of $400 . 00 per month, invoiced
quarterly.
B. Above sum shall constitute full reimbursement to Contractor
for all direct and indirect expenses incurred by Contractor
including the salaries of Contractor' s employees, and travel
expenses .
6
IV. CITY MATERIALS AND SUPPORT
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 within the City and copies of the
monthly sales tax allocation reports received from the Board of
Equalization.
V. TERMINATION
This agreement may be terminated by either party with 30 days
written notice. Upon the presentation of such notice, Contractor
may continue to work through the date of termination. Upon
termination, Contractor shall be paid the value of all tax
analysis and reporting work performed less payments previously
made.
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.
7
VI . INDEPENDENT CONTRACTOR
Contractor shall perform the services hereunder as an independent
contractor and shall furnish such services in his own manner and
method, and under no circumstances or conditions shall any agent,
servant, or employee of Contractor be considered as an employee
of City. The general provisions, attached hereto as Exhibit A,
are incorporated herein.
VII . NON-ASSIGNMENT
This Agreement is not assignable either in whole or in part by
Contractor without the written consent of City.
VIII . ATTORNEY' S FEES
In the event a legal action is commenced to enforce any of the
provisions of this Agreement, the prevailing party shall be
entitled to recover its costs and reasonable attorney' s fees.
IX. GOVERNING LAW
The laws of the State of California shall govern the rights ,
obligations , duties and liabilities of the parties to this
agreement and shall also govern the interpretation of this
agreement.
8
X. INDEMNIFICATION
Contractor hereby agrees to, and shall hold City, its elective
and appointive boards, officers , agents and employees, harmless
from any liability for damage or claims for damage for personal
injury, including death, as well as from claims for breach of
confidentiality or property damage which may arise from
Contractor' s negligent acts , errors or omissions under this
Agreement. Contractor agrees to and shall defend City and its
elective and appointive boards , officers, agents and employees
from any suits or actions at law or in equity for damages caused,
or alleged to have been caused, by reason of any of the aforesaid
negligent acts , errors or omissions .
City hereby agrees to, and shall hold Contractor, its officers,
agents and employees, harmless from any liability for damage or
claims for damage for personal injury, including death, as well
as from claims for breach of confidentiality or property damage
which may arise from City' s negligent acts, errors or omissions
under this Agreement. City agrees to and shall defend Contractor
and its officers, agents and employees from any suits or actions
at law or in equity for damage caused, or alleged to have been
caused, by reason of any of the aforesaid negligent acts , errors
or omissions .
XI . NOTICE
All notices required by this Agreement shall be given to City and
Contractor in writing, by first class mail postage prepaid,
addressed as follows:
9
City: City Manager
City of Dublin
P.O. Box 2340
Dublin, California 94568
Contractor : HINDERLITER, DE LLAMAS, & ASSOCIATES
150 West First Street, Suite 280
Claremont, California 91711-4139
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed on the date first above written by their
respective officers duly authorized in that behalf .
CITY;
CITY OF DUBLIN
City Manager
City`�C lerk`' G
CONTRACTOR;
HINDERLITER, DE LLAMAS & ASSOCIATES
A California Corporation
.PROVED AS TO FORM:
/1
J
City Attorney
10
EXHIBIT A
GENERAL PROVISIONS
1 , INDEPENDENT CONTRACTOR• all times during and shall not
Agreement , Conau Cant sh
City . City shall have the right to control
be an employee of
Consultant only insofar as the results of Cr, Citynshallenotchave the
rendered pursuant to this Agreement ; however ,
right to control the means by which Consultant accomplishes services
rendered pursuant to this Agreement .
z , LICENSES ; PERMITS ; ETC . Consultant represents and warrants toCity
that he has all icenses , permits , qualifications and approvals
whatsoever nature which are legally required for Consultant to
practice his profession . sents and
effect at
that Consultant shall , at h permits , and
all times during the term of this Agreement any licenses , p
approvals which are legally required for Consultant to practice his
profession .
3. TIME. Consultant shall devote such time to the performance of
services pursuant to this Agreement as may be reasonably necessary for
satisfactory performance of Consultant ' s obligations pursuant to this
Agreement . Time is the essence of this Agreement.
4 . INSURANCE .
(a) public Liability andtP�°game of taeeConsultants and athe sCity
take; 1-111171
out an maintain
during the life of the Agreement, such public liability insurance
as shall protect himself , the City, its officials , officers ,
directors , employees and agents from claims which may arise from
operations under the Agreement, whether such operations be btly
himself , by subcontractors , or by any Y
employed by either of them. This liability insurance shall
include , but shall not be limited to, protection against claims
arising from bodily and personal injury and sdamagertotoroperty
resulting from the Consultant ' s, City ' subcontractor ' s
and
operations , use of owned or non-owned automobiles , products ,
completed operations . The amount of insurance shall not be less
than the following:
Single limit coverage applying to bodily and personal injury
liability and property damage : $300 , 000 . 00 or a lesser amount
deemed sufficient by the City Manager .
The following endorsements must be attached to the policy, unless
otherwise waived by the City Attorney :
(1 ) If the insurance policy covers on an "accident" basis , it
must be changed to "occurrence" .
(2 ) The policy must cover personal injury as well as bodily
injury .
GEC-16-'38 FRI 12:47 ID:CITY OF DUBLIN TEL - --
7 . STANDARD OF PERFORhtAoNC�is Aoreemenctinhthe n annermand laccording to Ctle
required pursuant t
standards observed by a competent practitioner of the profession in
which Consultant is engaged in the geographical area in which of
fession. All Consultant practices his PrOUlt�n n
c deli.verstorC�itytpursuantvtoethis
whatsoever nature which Cons
Agreement shall be prepared in a substantial , first class and
workmanlike manner and conform to the standards of quality normally
observed by a person practicing in Consultant ' s profession.
8 . HOLD HARMLESS AND RESPONSIBILITY OF CONSULTANTS . Consultant shall
tale a responsi i ty or t e won s a ear all losses and
damages directly or indirectly resulting to him, to any subcontractor ,
to the City , to City employees , or to parties designated in any
Special Provisions , on account of the performance or character of the
work, unforeseen difficulties , accidents , occurrences or other causes
predicated on active or passive negligence of the Consultant or of any
subcontractor . Consultant shall indemnify and hold harmless the City ,
its officers , officials , directors ,
employees and agents from and
r all loss , liability, expense , claim , costs ( including
against any o
costs of defense ) , suits , and dalagarisineVf.romt�the �performance of the
description directly or indirectly g
work.
Approval of the 1i1m liability or
subcontractors fro y under this Hold
Responsibility of Consultant ' s clause .
9 . GOVERNMENTAL REGULATIONS . To the extent that this Agreement may be
un e y tisca ass stance from another governmental entity ,and re
Consultant shall comply twith all
of psuchbfiscaleassistancelprogramco
which City is y
10 . INTI?ItEST OF CONSULTANT . In accepting this Agreement , Consultant
covenants t at it presently has no interest , and shall not acquire any
interest , direct or indirect , financial or otherwise , which would
conflict in any manner or degree with the performance of the services
hereunder . Consultant further covenants that , in the performance of
this Agreement , no subcontractor or person having such an interest
Consultant hs or
shall be employed . restunder rthis eAgreement ie
sanhofficer or111
have any financial 1 nte
employee of City .
11 . OWNERSHIP OF WORK PRODUCT . If all
ocuments prepare y
upon completion of the project or termination of this Agreement . The
Consultant may retain a copy of all material produced by Consultant
pursuant to this Agreement for use in its general business activities .
Should the City desire to use the work completed under this Agreement
for purposes ocher than those intended under this Agreement , the City
will notify Consultant in writing prior to any other reuse of said
documents .