HomeMy WebLinkAbout4.9 Consulting Services Agreement with Hinderliter, de Llamas and Associates for Sales Tax Analysis, Audit and Information Services; and Authorization to Examine Sales and Use Tax RecordsSTAFF REPORT
CITY COUNCIL
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Agenda Item 4.9
DATE:June 21, 2022
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Consulting Services Agreement with Hinderliter, de Llamas and Associates for Sales Tax Analysis, Audit and Information Services; and Authorization to Examine Sales and Use Tax RecordsPreparedby:Jay Baksa,Assistant Administrative Services Director
EXECUTIVE SUMMARY:The City Council will consider approving an agreement with Hinderliter, de Llamas and Associates (HdL) for Sales Tax Analysis,Audit and Information services.In addition, The California Department of Tax and Fee Administration (CDTFA), requires that the City reestablish the authorization of designated representatives, with HdL, every time a new agreement if put into place, to comply with the current requirements of Section 7056 of the California Revenue and Taxation Code which sets forth the requirements and conditions for the disclosure of CDTFA records.
STAFF RECOMMENDATION:Adopt the Resolution Approving a Consulting Services Agreement Between the City of Dublin and Hinderliter, de Llamas and Associates, and adopt the Resolution Authorizing Examination of Sales and Use Tax Records.
FINANCIAL IMPACT:There is sufficient budget in the Fiscal Year 2022-23 Adopted Budget to cover these costs.The first-year cost for the sales tax and economic analysis services is $7,800 and will increase each year by the increase in the Consumer Price Index (CPI). The Agreement includes a not-to-exceed of $60,000, which is inclusive of a contingency of $15,000. Audit services are billed at 15% of all new and recovered sales tax revenue received by the City. The audit service fee is offset by the additional revenue received by the City as a result of the audit and is not included in the not-to-exceed amount.
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DESCRIPTION:The City conducted a Request for Proposal (RFP) for Sales Tax Analysis, Audit and Information services in April of 2022 and received proposals from two firms, Hinderliter, de Llamas and Associate and MuniServices. Based on the evaluation process, Staff is recommending the selection of Hinderliter, de Llamas and Associates (HdL) as the firm that best meets the needs of the City. The City has contracted with Hinderliter, de Llamas and Associates (HdL) for sales tax consulting and auditing services since 1989, in that time HdL has recovered over $8.35 million on behalf of the City. In addition, HdL has significant knowledge of the City of Dublin, including a database with 33 years of Dublin sales tax history, which serves as the foundation for identifying emerging trends and developing budget projections for the City. HdL will provide services in two areas related to the collection and reporting of sales, use and transaction tax, collectively referred to as Sales Tax: 1) Sales Tax Analysis and Information Services; and 2) Audit ServicesSales Tax Analysis and Information HdL will provide quarterly reports identifying changes in sales by businesses, business groups and categories, and geographic area, including quarterly aberrations due to State audits and payment reconciliations. HdL will also provide per capita comparison reports with regional and statewide sales information to assist with sales tax forecasting. Further, HdL will continue to maintain a database that identifies the name, address, and quarterly allocations of all sales tax producers within the City, allowing City staff to generate reports as needed.Audit ServicesHdL will proactively conduct continual sales tax audits to identify and correct distribution and allocation errors to recover misallocated tax. Once errors have been identified, HdL will prepare and submit documentation to the State Board of Equalization for the purpose of correcting the identified error, in addition to following up with both the affected business and the State Board of Equalization to promote a prompt recovery. In addition to the agreement, Staff recommends approving a resolution that will allow HdL continued access to the City’s Sales and Use Tax records. Due to the confidential nature of tax returns filed by retailers, the release of certain information must be in strict accordance with requirements in State law. The California Department of Tax and Fee Administration (CDTFA), requires that the City reestablish the authorization of designated representatives, with HdL, every time a new agreement if put into place, to comply with the current requirements of Section 7056 of the California Revenue and Taxation Code which sets forth the requirements and conditions for the disclosure of CDTFA records. In addition to sales tax analysis and audit services, the City contracts with HdL under a separate agreement for property tax consultation.
STRATEGIC PLAN INITIATIVE:None
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NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted
ATTACHMENTS:1) Resolution Approving a Consulting Services Agreement Between the City of Dublin and Hinderliter, de Llamas and Associates 2) Exhibit A to the Resolution - Consulting Services Agreement with Hinderliter, de Llamas and Associates for Sales Tax Analysis, Audit and Information Services3) Resolution Authorizing Examination of Sales and Use Tax Records4) Request for Proposal Municipal Sales/Use Tax Auditing Economic Analysis Services
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Attachment 1
Reso. No. XX-22, Item X.X, Adopted XX/XX/2022 Page 1 of 2
RESOLUTION NO. XX – 22
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING A CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF DUBLIN
AND HINDERLITER, de LLAMAS AND ASSOCIATES
WHEREAS,the City desires to continue to engage a professional consulting firm for the
investigation of sales/use tax records and the recovery of revenue on behalf of the City as well as
providing economic analysis services; and
WHEREAS,the City went through a Request for Proposal and selected Hinderliter, de
Llamas and Associates to investigate and review sales and use tax transactions and collections
for the City, contained in the records of the State Board of Equalization; and
WHEREAS,pursuant to Ordinance No. 8-82, the City of Dublin entered into a contract with
the State Board of Equalization to perform all functions relating to the administration and
collections of local sales and use taxes; and
WHEREAS,the City and Hinderliter, de Llamas and Associates now wish to enter into an
Agreement to review sales and use tax transactions and collections, contained in the records of
the State Board of equalization; and
WHEREAS, Hinderliter, de Llamas and Associates proposed a flat monthly fee of $650 for
sales and use tax management services, which will be adjusted annually by a CPI index
adjustment and 15% fee for all new sales and use tax revenue received by the City as a result of
audit and recovery work performed by the Hinderliter, de Llamas and Associates.
WHEREAS, City Staff recommends an additional $15,000 in contingency for any additional
services-as-needed analyses.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the consulting services agreement with Hinderliter, de Llamas and Associates,
attached hereto as Exhibit A, in a contract amount not to exceed $60,000, which includes the
sales and use tax management fees for five years with an annual CPI adjustment and the $15,000
additional contingency.
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the
Agreement and make any necessary, non-substantive changes to carry out the intent of this
Resolution.
{Signatures on the following page}
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Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 2 of 2
PASSED, APPROVED AND ADOPTED this 21st day of June 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
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Consulting Services Agreement between City of Dublin and July 1, 2022
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CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF DUBLIN AND
HINDERLITER, de LLAMAS AND ASSOCIATES
FOR
SALES, USE AND TRANSACTION TAX AUDIT SERVICES
THIS AGREEMENT for consulting services is made by and between the City of Dublin (“City”) and
Hinderliter, de Llamas and Associates (“Consultant”) (together sometimes referred to as the “Parties”) as of
July 1, 2022 (the “Effective Date”).
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant
shall provide to City the services described in the Scope of Work attached as Exhibit A at the time and
place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms
of this Agreement and Exhibit A, the Agreement shall prevail.
1.1 Term of Services.The term of this Agreement shall begin on the Effective Date and shall
end on June 30, 2025, and Consultant shall complete the work described in Exhibit A on or
before that date, unless the term of the Agreement is otherwise terminated or extended, as
provided for in Section 8. The time provided to Consultant to complete the services
required by this Agreement shall not affect the City’s right to terminate the Agreement, as
referenced in Section 8. Notwithstanding the foregoing this Agreement may be extended
for two one-year extensions upon the written consent of the Consultant and the City
Manager, provided that: a) sufficient funds have been appropriated for such purchase, b)
the price charged by the Consultant for the provision of the services described in Exhibit A
does not increase. None of the foregoing shall affect the City’s right to terminate the
Agreement as provided for in Section 8.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this
Agreement in the manner and according to the standards observed by a competent
practitioner of the profession in which Consultant is engaged.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any
time during the term of this Agreement, desires the reassignment of any such persons,
Consultant shall, immediately upon receiving notice from City of such desire of City,
reassign such person or persons.
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance
provided in Subsection 1.2 above and to satisfy Consultant’s obligations hereunder.
1.5 [Intentionally Deleted].
1.6 [Intentionally Deleted].
Attachment 2
Exhibit A to the Resolution
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Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed $60,000,
which includes sales and use tax management services and a $15,000 contingency. The 15% audit fees for
sales tax revenue recovery is not included in the not-to-exceed amount as described in Exhibit B,
notwithstanding any contrary indications that may be contained in Consultant’s proposal, for services to be
performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this
Agreement and Consultant’s proposal, attached as Exhibit B, regarding the amount of compensation, the
Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the
time and in the manner set forth herein. The payments specified below shall be the only payments from
City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to
City in the manner specified herein. Except as specifically authorized by City in writing, Consultant shall not
bill City for duplicate services performed by more than one person.
Consultant and City acknowledge and agree that compensation paid by City to Consultant under this
Agreement is based upon Consultant’s estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, the Parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the
term of this Agreement, based on the cost for services performed and reimbursable costs
incurred prior to the invoice date. No individual performing work under this Agreement shall
bill more than 2,000 hours in a fiscal year unless approved, in writing, by the City Manager
or his/her designee. Invoices shall contain the following information:
The beginning and ending dates of the billing period;
Consultant shall give separate notice to the City when the total number of hours
worked by Consultant and any individual employee, agent, or subcontractor of
Consultant reaches or exceeds 800 hours within a 12-month period under this
Agreement and any other agreement between Consultant and City. Such notice shall
include an estimate of the time necessary to complete work described in Exhibit A and
the estimate of time necessary to complete work under any other agreement between
Consultant and City, if applicable.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for
services satisfactorily performed, and for authorized reimbursable costs incurred. City
shall have 30 days from the receipt of an invoice that complies with all of the requirements
above to pay Consultant.
2.3 [Intentionally Deleted].
2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to
this Agreement. City shall not pay any additional sum for any expense or cost whatsoever
incurred by Consultant in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional service pursuant to this Agreement.
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In no event shall Consultant submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement,
unless the Agreement is modified prior to the submission of such an invoice by a properly
executed change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the compensation schedule attached hereto as Exhibit B.
2.6 [Intentionally Deleted].
2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes
incurred under this Agreement and any similar federal or state taxes.
2.8 Payment upon Termination. In the event that the City or Consultant terminates this
Agreement pursuant to Section 8, the City shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets to verify costs incurred to that date.
2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization from the Contract Administrator.
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole
cost and expense, provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. City shall make available to Consultant only the facilities and equipment listed
in this section, and only under the terms and conditions set forth herein.
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be
reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and
the information in possession of the City. The location, quantity, and time of furnishing those facilities shall
be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve
incurring any direct expense, including but not limited to computer, long-distance telephone or other
communication charges, vehicles, and reproduction facilities.
Section 4. INSURANCE REQUIREMENTS. Before fully executing this Agreement, Consultant, at its
own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance
listed below against claims for injuries to persons or damages to property that may arise from or in
connection with the performance of the work hereunder by the Consultant and its agents, representatives,
employees, and subcontractors. Consistent with the following provisions, Consultant shall provide proof
satisfactory to City of such insurance that meets the requirements of this section and under forms of
insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work.
Consultant shall maintain the insurance policies required by this section throughout the term of this
Agreement. The cost of such insurance shall be included in the Consultant's bid or proposal. Consultant
shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all
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insurance required herein for the subcontractor(s) and provided evidence to City that such insurance is in
effect. VERIFICATION OF THE REQUIRED INSURANCE SHALL BE SUBMITTED AND MADE PART OF
THIS AGREEMENT PRIOR TO EXECUTION. Consultant shall maintain all required insurance listed
herein for the duration of this Agreement.
4.1 Workers’ Compensation.
4.1.1 General Requirements. Consultant shall, at its sole cost and expense, maintain
Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for
any and all persons employed directly or indirectly by Consultant. The Statutory
Workers’ Compensation Insurance and Employer’s Liability Insurance shall be
provided with limits of not less than $1,000,000 per accident. In the alternative,
Consultant may rely on a self-insurance program to meet these requirements, but
only if the program of self-insurance complies fully with the provisions of the
California Labor Code. Determination of whether a self-insurance program meets
the standards of the California Labor Code shall be solely in the discretion of the
Contract Administrator.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation
in favor of the entity for all work performed by the Consultant, its employees,
agents, and subcontractors.
4.1.2 Submittal Requirements. To comply with Subsection 4.1, Consultant shall
submit the following:
a. Certificate of Liability Insurance in the amounts specified in the section;
and
b. Waiver of Subrogation Endorsement as required by the section.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General Requirements. Consultant, at its own cost and expense, shall maintain
commercial general liability insurance for the term of this Agreement in an amount
not less than $1,000,000 and automobile liability insurance for the term of this
Agreement in an amount not less than $1,000,000 per occurrence, combined
single limit coverage for risks associated with the work contemplated by this
Agreement. If a Commercial General Liability Insurance or an Automobile Liability
form or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to the work to be performed under this
Agreement or the general aggregate limit shall be at least twice the required
occurrence limit. Such coverage shall include but shall not be limited to, protection
against claims arising from bodily and personal injury, including death resulting
therefrom, and damage to property resulting from activities contemplated under
this Agreement, including without limitation, blanket contractual liability and the
use of owned and non-owned automobiles.
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4.2.2 Minimum Scope of Coverage. Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 (most recent edition) covering comprehensive General Liability on an
“occurrence” basis. Automobile coverage shall be at least as broad as Insurance
Services Office Automobile Liability form CA 0001, Code 1 (any auto). No
endorsement shall be attached limiting the coverage.
4.2.3 Additional Requirements. Each of the following shall be included in the
insurance coverage or added as a certified endorsement to the policy:
a. The Insurance shall cover on an occurrence or an accident basis, and not
on a claims-made basis.
b. City, its officers, officials, employees, and volunteers are to be covered as
additional insureds as respects: liability arising out of work or operations
performed by or on behalf of the Consultant; or automobiles owned,
leased, hired, or borrowed by the Consultant.
c. Consultant hereby agrees to waive subrogation which any insurer or
contractor may require from vendor by virtue of the payment of any loss.
Consultant agrees to obtain any endorsements that may be necessary to
effect this waiver of subrogation.
d. For any claims related to this Agreement or the work hereunder, the
Consultant’s insurance coverage shall be primary insurance as respects
the City, its officers, officials, employees, and volunteers. Any insurance
or self-insurance maintained by the City, its officers, officials, employees,
or volunteers shall be excess of the Consultant’s insurance and shall not
contribute with it.
4.2.4 Submittal Requirements. To comply with Subsection 4.2, Consultant shall
submit the following:
a. Certificate of Liability Insurance in the amounts specified in the section;
b. Additional Insured Endorsement as required by the section;
c. Waiver of Subrogation Endorsement as required by the section; and
d. Primary Insurance Endorsement as required by the section.
4.3 Professional Liability Insurance.
4.3.1 General Requirements. Consultant, at its own cost and expense, shall maintain
for the period covered by this Agreement professional liability insurance for
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licensed professionals performing work pursuant to this Agreement in an amount
not less than $2,000,000 covering the licensed professionals’ errors and
omissions. Any deductible or self-insured retention shall not exceed $150,000 per
claim.
4.3.2 Claims-Made Limitations. The following provisions shall apply if the professional
liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be
provided for at least 3 years after completion of the Agreement or the
work, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant shall purchase an extended period coverage
for a minimum of 3 years after completion of work under this Agreement.
d. A copy of the claim reporting requirements must be submitted to the City
for review prior to the commencement of any work under this Agreement.
4.3.3 Submittal Requirements. To comply with Subsection 4.3, Consultant shall
submit the Certificate of Liability Insurance in the amounts specified in the section.
4.4 All Policies Requirements.
4.4.1 Acceptability of Insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than A:VII.
4.4.2 Verification of Coverage. Prior to beginning any work under this Agreement,
Consultant shall furnish City with complete copies of all Certificates of Liability
Insurance delivered to Consultant by the insurer, including complete copies of all
endorsements attached to the policies. All copies of Certificates of Liability
Insurance and certified endorsements shall show the signature of a person
authorized by that insurer to bind coverage on its behalf. If the City does not
receive the required insurance documents prior to the Consultant beginning work,
it shall not waive the Consultant’s obligation to provide them. The City reserves
the right to require complete copies of all required insurance policies at any time.
4.4.3 Deductibles and Self-Insured Retentions. Consultant shall disclose to and
obtain the written approval of City for the self-insured retentions and deductibles
before beginning any of the services or work called for by any term of this
Agreement. At the option of the City, either: the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects the City, its officers,
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employees, and volunteers; or the Consultant shall provide a financial guarantee
satisfactory to the City guaranteeing payment of losses and related investigations,
claim administration and defense expenses.
4.4.4 Wasting Policies. No policy required by this Section 4 shall include a “wasting”
policy limit (i.e. limit that is eroded by the cost of defense).
4.4.5 Endorsement Requirements. Each insurance policy required by Section 4 shall
be endorsed to state that coverage shall not be canceled by either party, except
after 30 days’ prior written notice has been provided to the City.
4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and certified endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
herein required, City may, at its sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for
Consultant’s breach:
Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder, or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof; and/or
Terminate this Agreement.
Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES. Refer to the attached
Exhibit C, which is incorporated herein and made a part of this Agreement.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of City. This Agreement shall
not be construed as an agreement for employment. City shall have the right to control
Consultant only insofar as the results of Consultant's services rendered pursuant to this
Agreement and assignment of personnel pursuant to Subsection 1.3; however, otherwise
City shall not have the right to control the means by which Consultant accomplishes
services rendered pursuant to this Agreement. Consultant further acknowledges that
Consultant performs Services outside the usual course of the City’s business; and is
customarily engaged in an independently established trade, occupation, or business of the
same nature as the Consultant performs for the City and has the option to perform such
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work for other entities. Notwithstanding any other City, state, or federal policy, rule,
regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents,
and subcontractors providing services under this Agreement shall not qualify for or
become entitled to, and hereby agree to waive any and all claims to, any compensation,
benefit, or any incident of employment by City, including but not limited to eligibility to
enroll in the California Public Employees Retirement System (PERS) as an employee of
City and entitlement to any contribution to be paid by City for employer contributions and/or
employee contributions for PERS benefits.
6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no
authority, express or implied, to act on behalf of City in any capacity whatsoever as an
agent. Consultant shall have no authority, express or implied, pursuant to this Agreement
to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all laws and regulations applicable to the performance of the work hereunder, including but
not limited to, the California Building Code, the Americans with Disabilities Act, and any
copyright, patent or trademark law. Consultant’s failure to comply with any law(s) or
regulation(s) applicable to the performance of the work hereunder shall constitute a breach
of contract.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Consultant and any subcontractors
shall comply with all applicable rules and regulations to which City is bound by the terms of
such fiscal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and
its employees, agents, and any subcontractors have all licenses, permits, qualifications,
and approvals of whatsoever nature that are legally required to practice their respective
professions. Consultant represents and warrants to City that Consultant and its
employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect
at all times during the term of this Agreement any licenses, permits, and approvals that are
legally required to practice their respective professions. In addition to the foregoing,
Consultant and any subcontractors shall obtain and maintain during the term of this
Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the
basis of a person’s race, sex, gender, religion (including religious dress and grooming
practices), national origin, ancestry, physical or mental disability, medical condition
(including cancer and genetic characteristics), marital status, age, sexual orientation, color,
creed, pregnancy, genetic information, gender identity or expression, political affiliation or
belief, military/veteran status, or any other classification protected by applicable local,
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state, or federal laws (each a “Protected Characteristic”), against any employee, applicant
for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or
applicant for any services or programs provided by Consultant under this Agreement.
Consultant shall include the provisions of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written
notification to Consultant.
Consultant may cancel this Agreement upon 30 days’ written notice to City and shall
include in such notice the reasons for cancellation.
In the event of termination, Consultant shall be entitled to compensation for services
performed to the effective date of termination; City, however, may condition payment of
such compensation upon Consultant delivering to City any or all documents, photographs,
computer software, video and audio tapes, and other materials provided to Consultant or
prepared by or for Consultant or the City in connection with this Agreement.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a
written amendment to this Agreement, as provided for herein. Consultant understands and
agrees that, if City grants such an extension, City shall have no obligation to provide
Consultant with compensation beyond the maximum amount provided for in this
Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no
obligation to reimburse Consultant for any otherwise reimbursable expenses incurred
during the extension period.
8.3 Amendments. The Parties may amend this Agreement only by a writing signed by all the
Parties.
8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant’s unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Consultant shall not subcontract any portion of the
performance contemplated and provided for herein, other than to the subcontractors noted
in the proposal, without prior written approval of the Contract Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Consultant shall survive
the termination of this Agreement.
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8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement, City’s remedies shall include, but are not limited to, the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to complete the work described in Exhibit A not
finished by Consultant; or
8.6.4 Charge Consultant the difference between the cost to complete the work
described in Exhibit A that is unfinished at the time of breach and the amount that
City would have paid Consultant pursuant to Section 2 if Consultant had
completed the work.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps,
models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications,
records, files, or any other documents or materials, in electronic or any other form, that
Consultant prepares or obtains pursuant to this Agreement and that relate to the matters
covered hereunder shall be the property of the City. Consultant hereby agrees to deliver
those documents to the City upon termination of the Agreement. It is understood and
agreed that the documents and other materials, including but not limited to those described
above, prepared pursuant to this Agreement are prepared specifically for the City and are
not necessarily suitable for any future or other use. City and Consultant agree that, until
final approval by City, all data, plans, specifications, reports and other documents are
confidential and will not be released to third parties without prior written consent of both
Parties.
9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged
to the City under this Agreement for a minimum of 3 years, or for any longer period
required by law, from the date of final payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Subsection 9.2 of this
Agreement requires Consultant to maintain shall be made available for inspection, audit,
and/or copying at any time during regular business hours, upon oral or written request of
the City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to
the examination and audit of the State Auditor, at the request of City or as part of any audit
of the City, for a period of 3 years after final payment under the Agreement.
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Section 10. MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for
declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing
party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which
that party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
10.2 Venue. In the event that either party brings any action against the other under this
Agreement, the Parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County of Alameda or in the United States District Court for
the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so
adjudged shall remain in full force and effect. The invalidity in whole or in part of any
provision of this Agreement shall not void or affect the validity of any other provision of this
Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the Parties.
10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place
Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act,
codified at California Government Code Section 81000 et seq.
Consultant shall not employ any City official in the work performed pursuant to this
Agreement. No officer or employee of City shall have any financial interest in this
Agreement that would violate California Government Code Section 1090 et seq.
Consultant hereby warrants that it is not now, nor has it been in the previous 12 months,
an employee, agent, appointee, or official of the City. If Consultant was an employee,
agent, appointee, or official of the City in the previous 12 months, Consultant warrants that
it did not participate in any manner in the forming of this Agreement. Consultant
understands that, if this Agreement is made in violation of California Government Code
Section 1090 et seq., the entire Agreement is void and Consultant will not be entitled to
any compensation for services performed pursuant to this Agreement, including
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reimbursement of expenses, and Consultant will be required to reimburse the City for any
sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it
may be subject to criminal prosecution for a violation of California Government Code
Section 1090 et seq., and, if applicable, will be disqualified from holding public office in the
State of California.
At City’s sole discretion, Consultant may be required to file with the City a Form 700 to
identify and document Consultant’s economic interests, as defined and regulated by the
California Fair Political Practices Commission. If Consultant is required to file a Form 700,
Consultant is hereby advised to contact the Dublin City Clerk for the Form 700 and
directions on how to prepare it.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by the City Manager
("Contract Administrator"). All correspondence shall be directed to or through the Contract
Administrator or his or her designee.
10.10 Notices. Any written notice to Consultant shall be sent to:
The HdL Companies
Attn:
120 S. State College Blvd., Suite 200
Brea, CA 92821
Any written notice to City shall be sent to:
City of Dublin
Attn: Lisa Hisatomi
100 Civic Plaza
Dublin, CA 94568
10.11 Integration. This Agreement, including the scope of work attached hereto and
incorporated herein as Exhibits A, B, and C represents the entire and integrated
agreement between City and Consultant and supersedes all prior negotiations,
representations, or agreements, either written or oral.
Exhibit A Scope of Services
Exhibit B Compensation Schedule
Exhibit C Indemnification
10.12 Counterparts and Electronic Signatures. This Agreement may be executed in multiple
counterparts, each of which shall be an original and all of which together shall constitute
one agreement. Counterparts delivered and/or signatures executed by City-approved
electronic or digital means shall have the same force and effect as the use of a manual
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signature. Both Parties desire this Agreement to be electronically signed in accordance
with applicable federal and California law. Either Party may revoke its agreement to use
electronic signatures at any time by giving notice to the other Party.
10.13 Certification per Iran Contracting Act of 2010. In the event that this contract is for
one million dollars ($1,000,000.00) or more, by Consultant’s signature below Consultant
certifies that Consultant, and any parent entities, subsidiaries, successors or subunits of
Consultant are not identified on a list created pursuant to subdivision (b) of Section 2203 of
the California Public Contract Code as a person engaging in investment activities in Iran as
described in subdivision (a) of Section 2202.5, or as a person described in subdivision (b)
of Section 2202.5 of the California Public Contract Code, as applicable.
SIGNATURES ON FOLLOWING PAGE
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The Parties have executed this Agreement as of the Effective Date. The persons whose signatures appear
below certify that they are authorized to sign on behalf of the respective Party.
CITY OF DUBLIN Hinderliter de Llamas and Associates
Linda Smith, City Manager Andrew Nickerson, President
Attest:
Marsha Moore, City Clerk
Approved as to Form:
City Attorney
3070368.1
Attachment 2
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Hinderliter, de Llamas and Associates for Sales & Use Tax Audit Exhibit A – Page 1 of 2
EXHIBIT A
SCOPE OF SERVICES
The Consultant shall perform the following services (collectively, the "Services"):
A. SALES TAX AND ECONOMIC ANALYSIS SERVICES
1. Consultant shall establish a special database that identifies the name, address and
quarterly allocations of all sales tax producers within the City for the most current and all
quarters back to fiscal year 1988-1989 or earlier, if the City has prior historical sales tax data
available on computer readable magnetic media. This database will be utilized to generate
special reports to the City on: major sales tax producers by rank and category, sales tax
activity by categories, or business districts, identification of reporting aberrations, and per
capita and outlet comparisons with regional and statewide sales.
2. Consultant shall provide updated reports following each calendar quarter identifying
changes in sales by individual businesses, business groups and categories and by
geographic area. These reports may include, without limitation, quarterly aberrations due to
State audits, fund transfers, and receivables along with late or double payments, and
quarterly reconciliation worksheets to assist with budget forecasting. Consultant shall meet
quarterly with City.
3. Consultant shall additionally provide following each calendar quarter a summary
analysis for the City to share with Council Members Chambers of Commerce, other
economic development interest groups and the public that analyze City's sales tax trends by
major groups, and geographic areas without disclosing confidential information.
4. Consultant shall make available to City staff Consultant's web-based sales tax
computer software program containing sellers permit and quarterly allocation information for
all in-city business outlets registered with the Board of Equalization and updated quarterly.
This software shall allow City staff to search businesses by street address, account number,
business name, business type and keyword, arrange data by geographic area, and print out
a variety of reports.
B. ALLOCATION AUDIT AND RECOVERY SERVICES
1. Consultant shall conduct initial and on-going sales, use and transactions tax audits
to identify and correct distribution and allocation errors, and to proactively affect favorable
registration, reporting or formula changes thereby generating previously unrealized sales,
use and transactions tax income for the City and/or recovering misallocated tax from
previously properly registered taxpayers. Common errors that will be monitored and
corrected include but are not limited to: transposition errors resulting in misallocations;
erroneous consolidation of multiple outlets; formula errors, misreporting of "point of sale" to
the wrong location; delays in reporting new outlets; misallocating use tax payments to the
allocation pools or wrong jurisdiction; and erroneous fund transfers and adjustments.
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Hinderliter, de Llamas and Associates for Sales & Use Tax Audit Exhibit A – Page 2 of 2
2. Consultant shall initiate contacts with state agencies, and sales management and
accounting officials in companies that have businesses where a probability offer or exists to
verify whether current tax receipts accurately reflect the local sales activity. Such contacts
will be conducted in a professional and courteous manner.
3. Consultant shall (i) prepare and submit to the Board of Equalization information for
the purpose of correcting allocation errors that are identified and (ii) follow-up with individual
businesses and the State Board of Equalization to promote recovery by the City of back or
prospective quarterly payments that may be owing.
4. If during the course of its audit, Consultant finds businesses located in the City that
are properly reporting sales and use tax but have the potential for modifying their operation
to provide an even greater share to the City, Consultant may so advise City and work with
those businesses and the City to encourage such changes.
C. CONSULTING AND OTHER OPTIONAL SERVICES
Consultant may, from time to time in its sole discretion, consult with City staff,
including without limitation, regarding (i) technical questions and other issues related to
sales, use and transactions tax; (ii) utilization of reports to enhance business license
collection efforts; and (iii) sales tax projections for proposed annexations, economic
development projects and budget planning. In addition to the foregoing optional consulting
services, Consultant may, from time to time in its sole discretion, perform other optional
Services, including without limitation, negotiating/review of tax sharing agreements,
establishing purchasing corporations, and meeting with taxpayers to encourage self-
assessment of use tax.
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EXHIBIT B
COMPENSATION SCHEDULE
Consultant shall provide the sales tax and economic analysis services for a fee of $650 per month, commencing with the month of the
Effective Date (hereafter referred to as "monthly fee"). The monthly fee shall be invoiced quarterly in arrears and shall be paid by City
no later than 30 days after the invoice date. The monthly fee shall increase annually following the month of the Effective Date by the
percentage increase in the "CPI" for the preceding twelve month period. In no event shall the monthly fee be reduced by this calculation.
For purposes of this Agreement, the "CPI" shall mean the Consumer Price Index - All Urban Consumers for the surrounding statistical
metropolitan area nearest City, All Items (1982-84 = 100), as published by the U.S. Department of Labor, Bureau of Labor Statistics,
or, if such index should cease to be published, any reasonably comparable index selected by Consultant.
Consultant shall be further paid 15% of all new and recovered sales, use and transactions tax revenue received by the City as a result,
in whole or in part, of the allocation audit and recovery services (hereafter referred to as "audit fee"), including without limitation, any
reimbursement or other payment from any state fund and any point of sale misallocations.
The audit fee shall be paid even if City assists, works in parallel with, and/or incurs attorneys' fees or other costs or expenses in
connection with any of the relevant Services. Among other things, the audit fee applies to state fund transfers received for back quarter
reallocations and monies received in the first eight consecutive reporting quarters following completion of the allocation audit by Consultant
and confirmation of corrections by the State Board of Equalization. City shall pay audit fees upon Consultant's submittal of evidence
of Consultant's work in support of recovery of subject revenue, including, without limitation, copies of BOE 549-S petition forms
of any other correspondence between Consultant and the Board of Equalization or the taxpayer.
For any increase in the tax reported by businesses already properly making tax payments to City, it shall be Consultant's
responsibility to support in its invoices the audit fee attributable, in whole or in part, to Consultant's Services.
Consultant shall invoice City for any consulting and other optional Services rendered to City based on the following hourly rates on a
monthly or a quarterly basis, at Consultant's option. All such invoices shall be payable by City no later than 30 days following the invoice
date. City shall not be invoiced for any consulting Services totaling less than an hour in any month. The hourly rates in effect as of the
Effective Date are as follows:
Hourly Rate
Principal $325
Programmer $295
Senior Analyst $245
Analyst $195
Associate $150
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EXHIBIT C
INDEMNIFICATION
Consultant shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers,
elected officials, employees, agents and volunteers from and against any and all liability, loss, damage,
claims, expenses, and costs (including without limitation, attorney’s fees and costs and fees of litigation)
(collectively, “Liability”) of every nature arising out of or in connection with Consultant’s performance of the
services called for or its failure to comply with any of its obligations contained in this Agreement, except
such Liability caused by the sole negligence or willful misconduct of City.
Notwithstanding the forgoing, to the extent this Agreement is a “construction contract” as defined by
California Civil Code Section 2782, as may be amended from time to time, such duties of Consultant to
indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782.
The Consultant’s obligation to defend and indemnify shall not be excused because of the Consultant’s
inability to evaluate Liability or because the Consultant evaluates Liability and determines that the
Consultant is not liable to the claimant. The Consultant must respond within 30 days to the tender of any
claim for defense and indemnity by the City. If the Consultant fails to accept or reject a tender of defense
and indemnity within 30 days, in addition to any other remedy authorized by law, so much of the money due
the Consultant under and by virtue of this Agreement as shall reasonably be considered necessary by the
City, may be retained by the City until disposition has been made of the claim or suit for damages, or until
the Consultant accepts or rejects the tender of defense, whichever occurs first.
3070368.1
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Attachment 3
Reso. No. XX-22, Item X.X, Adopted XX/XX/2022 Page 1 of 3
RESOLUTION NO. XX – 22
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING EXAMINATION OF SALES AND USE TAX RECORDS
WHEREAS, pursuant to Ordinance No. 8-82, the City of Dublin entered into a contract with
the State Board of Equalization (“SBOE” or “Board”) to perform all functions relating to the
administration and collections of local sales and use taxes; and
WHEREAS, the City Council of the City of Dublin now desires to again reestablish the
authorization of designated representatives, including HdL, to examine on behalf of the City’s
confidential sales and use tax records of the State Board of Equalization pertaining to sales and
use taxes collected by SBOE for the City pursuant to its contract; and
WHEREAS, the Taxpayer Transparency and Fairness Act was adopted and signed into
law in 2017, which established, among other things, the California Department of Tax and Fee
Administration (“CDTFA” or “Department”) and transferred to such agency certain duties, powers,
and responsibilities of the SBOE relating to the administration of various taxes and fees; and
WHEREAS, pursuant to Government Code Section 15570.24, the contract entered into by
the City with SBOE is deemed to now apply to the CDTFA; and
WHEREAS, the City Council deems it desirable and necessary for authorized
representatives of the City to examine confidential sales and use tax records of the SBOE
pertaining to sales and use taxes collected by the CDTFA for the City pursuant to its contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain
requirements and conditions for the disclosure of CDTFA records, and establishes criminal
penalties for the unlawful disclosure of information contained in, or derived from, the sales and
use tax records of the Board; and
WHEREAS, the format of this resolution shall meet the requirements of the CDTFA and
shall consolidate actions taken in previous resolutions.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin as follows:
Section1.That the City Manager, or other officer or employee of the City designated in
writing by the City Manager to the Department of Tax and Fee Administration (hereafter referred
to as Department), is hereby appointed to represent the City of Dublin with authority to examine
transactions tax records of the Department pertaining to transactions taxes, including sales and
use taxes, collected for the City by the Department pursuant to the contract between the City and
the Department. The information obtained by examination of Department records shall be used
only for purposes related to the collection of City transactions taxes by the Department pursuant
to that contract.
Section 2.That the City Manager, or other officer or employee of the City designated in
writing by the City Manager to the Department, is hereby appointed to represent the City with
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Reso. No. XX-22, Item X.X, Adopted XX/XX/22 Page 2 of 3
authority to examine those transactions tax records of the Department, including sales and use
tax records, for purposes related to the following governmental functions of the City:
(a)City administration
(b)Revenue management and budgeting
(c)Community and economic development
(d)Business license tax administration
The information obtained by examination of Department records shall be used only for those
governmental functions of the City listed above.
Section 3.That Hinderliter, de Llamas & Associates is hereby designated to examine
the transactions tax records of the Department pertaining to transactions taxes, including sales
and use taxes, collected for the City by the Department. The person or entity designated by this
section meets all of the following conditions, which are also included in the contract between the
City and Hinderliter, de Llamas & Associates:
a) has an existing contract with the City to examine those transactions and use tax records;
b) is required by that contract to disclose information contained in, or derived from, those
sales or transactions tax records only to the officer or employee authorized under
Sections 1 or 2 of this resolution to examine the information.
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 or transactions and use tax records, after that contract has expired.
The information obtained by examination of Department records shall be used only for purposes
related to the collection of City transactions by the Department pursuant to the contract between
the City and the Department and for purposes relating to the governmental functions of the City
listed in Section 2 of this resolution.
Section 4.Severability. If any section, subsection, sentence, clause or phrase of this
Resolution is for any reason held by a court of competent jurisdiction to be invalid or
unconstitutional, such decision shall not affect the validity of the remaining portions of the
Resolution. The City Council hereby declares that it would have passed this Resolution and each
section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more
sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.
Section 5.Supersession and Repeal. Any and all other resolutions and parts thereof in
conflict with the provisions of this Resolution are superseded and repealed, effective on the
effective date of this Resolution.
Section 6.Effective Date. This resolution shall become effective immediately upon its
passage and adoption.
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Reso. No. XX-22, Item X.X, Adopted XX/XX/22 Page 3 of 3
PASSED, APPROVED AND ADOPTED this 21st day of June 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
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REQUEST FOR PROPOSALS
MUNICIPAL SALES/USE TAX AUDITING AND ECONOMIC ANALYSIS
SERVICES
City of Dublin
Proposals must be received by: April 15, 2022
Jay Baksa, Assistant Administrative Services Director
100 Civic Plaza
City of Dublin, CA 94568
Proposals will be evaluated on the following: a) responsiveness to the Request for Proposal questions, b)
experience of the firm, c) experience and qualifications of the assigned individuals and d) Satisfaction of previous
clients.
Attachment 4
172
Request for Proposal
For
Municipal Sales/Use Tax Auditing and Economic Analysis Services
PURPOSE
The CITY OF DUBLIN (hereinafter “City”) hereby requests proposals from interested firms for professional
municipal sales/use tax auditing and economic analysis services (hereinafter “Services”), and will receive proposals
in the City of Dublin, Administrative Services Department located at 100 Civic Plaza, Dublin, CA, 94568 on Friday,
April 15, 2022, up to the hour of 5:00 PM Pacific Standard Time.
BACKGROUND
The City is located in Eastern Alameda County, approximately 35 miles southeast of San Francisco. The City was
incorporated in 1982 with a population of 63,421 within 14.59 square miles. The City derives approximately 25%
of their General Fund revenue from Sales/Use Tax. The Fiscal Year 2021‐22 Adopted Budget projected the City
would receive $22.5 million in sales tax revenue for the City’s general fund.
SCOPE OF SERVICES
The City is requesting proposals for the investigation of sales/use tax records and the recovery of revenue on
behalf of the City as well as providing economic analysis services. The proposal should address the following items
at a minimum:
1. General Strategy
a. Describe the general strategy for sales and use tax auditing.
b. Define the role of City staff and City records as it relates to your efforts.
c. Describe your interaction with the State Board of Equalization (SBOE) and with businesses being
audited.
d. Provide a measure of how successful appeals have been as an example of claims that were successful
and/or an average dollar amount per client of sales tax recovered in the last five fiscal years.
e. Identify what sources of information will be needed and the means with which they will be acquired.
2. Objectives and Methodology
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a. Identify the specific procedures you will use to detect, correct, and recover misallocated revenue for
the City, including, but not limited to:
i. Identify and correct the sales/use tax reporting errors of businesses within the City that are
not properly registered based on their business activities in the City.
ii. Identify and correct the reporting of businesses that are improperly reporting tax to state and
county pools (i.e. classifying sales tax as use tax), thereby depriving the City of sales tax
revenue.
iii. Detect, document and correct sales/use tax reports errors and omissions in order to generate
new, previously unrealized revenue for the City.
iv. Determine if the SBOE had prior knowledge of the error(s), which could entitle the City to
collect revenue from additional periods.
b. Monitor and analyze the quarterly distribution reports with a focus on the following:
i. Those accounts with previously reported point‐of‐sale distribution errors to ensure that the
corrections are made for current quarters and all eligible back quarters.
ii. Those major accounts comprising 90% or more of the City’s total sales and use tax revenue to
identify irregularities or unusual deviations from the normal pattern (e.g. negative funds
transfers, significant decreases, unusual increases, etc.) and ensure that the City is not
receiving less revenue than it is entitled to receive.
c. Identify opportunities for the City to recover the local allocation on purchase transactions subject to
tax, and facilitate the recovery of such funds.
d. Assist the City with strategies to preserve and enhance sales and use tax generated by existing
businesses within the City.
3. Sales and Use Tax Information Services
1. Provide an electronic database of the City’s sales and use tax data to the City to facilitate monitoring,
analysis and forecasting. The database will include the following features at a minimum:
i. All sales tax producers in the City of Dublin, including business name, address, SBOE account
number and current and historical sales tax allocations.
174
ii. To be able to generate special reports to the City on; major sales tax producers by rank and
category, sales tax activity by categories, or business districts, identification of reporting
aberrations, and per capita and outlet comparisons with regional and statewide sales.
iii. Quarterly updates.
iv. Ability for the City to create and maintain subsets of the information based on geographic
features.
v. Ability to define and print reports.
vi. Ability to export all data to a spreadsheet.
Provide a sample showing the database layout and file type your firm is proposing.
2. Provide written sales tax reports on a quarterly basis to the City in a timely manner, following the
receipt of the quarterly distribution report. In addition, consultant will meet quarterly with the City.
The reports will include the Municipal Sales/Use Tax Auditing following:
i. Top sales tax generators ranked by the amount of sales and use tax produced.
ii. Analysis of sales trends by business category, identifying by business the major increases and
decreases each quarter.
iii. Comparisons to other local, county and state jurisdictions.
iv. Sales and use tax projections, updated quarterly.
v. Information regarding state and federal legislative issues, including an analysis of their
potential impact on the City.
vi. Other reports as mutually agreed upon.
vii. Include sample sales tax reports with your firm's response.
Consultant shall, additionally, provide following each quarter a summary analysis for the City to share with Council
Members, Members of the Chambers of Commerce and other economic development interest groups. The
analysis should include the City’s sales tax trend by major group and geographic areas without disclosing
confidential information.
4. Budget
175
i. Identify the proposed timeframes regarding date of knowledge, date of correction back quarters
and forward quarters in terms of compensation.
ii. Identify the characteristics of accounts for which compensation will be received.
iii. Provide your proposed compensation schedule for corrections.
iv. Provide your proposed compensation schedule for Quarterly Distribution Report misallocations.
v. Identify any credits for negative allocations attributable to proposer on behalf of another client.
vi. If applicable, please identify any additional compensation for in person meetings required at the
City.
5. Forecasting
i. In at least three of the quarterly reports, provide an update of this year's forecasted sales tax
revenue, utilizing the 60‐day accrual convention, and a forecast of next year's sales tax revenue.
ii. No later than the end of the first week in March, provide an updated budgetary forecast based
on 4th quarter sales tax information, including
i. An updated forecast for the end of the year, utilizing the 60‐day accrual convention.
ii. A forecast of next year's sales tax revenue, for use in the annual budget
iii. A 5‐year sales tax forecast, incorporating growth assumptions regarding future
development in the City of Dublin.
iii. In addition, please provide a measurement on how close the firm's historical forecasts have been
to actual results.
6. Consulting and Other Optional Services
a. Please provide a cost per hour by position for optional/consulting services that are not limited to, but
may include the following;
i. Consultant may, from time to time in its sole discretion, consult with City staff, including
without limitation, regarding (i) technical questions and other issues related to sales, use
and transactions tax; (ii) utilization of reports to enhance business license collection
efforts; and (iii) sales tax projections for proposed annexations, economic development
projects and budget planning. In addition to the foregoing optional consulting services,
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Consultant may, from time to time in its sole discretion, perform other optional Services,
including without limitation, negotiating/review of tax sharing agreements, establishing
purchasing corporations, and meeting with taxpayers to encourage self‐assessment of
use tax.
Process and General Conditions
1. Proposers shall submit proposals electronically to:
Jay Baksa
Assistant Administrative Services Director
Email: Jay.baksa@dublin.ca.gov
Electronic copies shall be submitted via email in a PDF, format.
2. Deadline for submitting the proposal is April 15, 2022 at 5:00 p.m.
3. The City will not pay for any costs incurred in preparation and submission of the proposals or in
anticipation of a contract. The format of submittals is at the discretion of the Proposer. Each proposal
shall be limited to a maximum of 30 pages, single‐sided, using minimum 12‐point font size. Page limit
excludes a table of contents, tabbed dividers, and resumes for Consultant’s team.
Schedule for RFP Process
March 29, 2022 Request for Proposals released
April 8, 2022 Deadline to submit questions to City of Dublin
April 12, 2022 Addendum posted, if required
April 15, 2022 Proposals are due no later than 5:00 PM on April 15 electronically addressed to
Jay Baksa,, Administrative Services Department, City of Dublin, to the email
address: Jay.Baksa@dublin.ca.gov. Late submittals will not be accepted.
TBD Interview firms (optional)
TBD Consulting Services Agreement scheduled for approval by the Dublin City Council.
(Tentative dates, subject to change)
RFP Submittal Requirements
Please prepare and organize your Statement of Qualification based on the requirements provided below. Any
other information you would like to include should be placed in a separated section at the back of your Statement
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of Qualification. Please note however that the RFP submittal is limited to 30 pages maximum single sided
(excluding resumes), and should be submitted in 8 ½ x 11 format, in 12‐point font. Page limit excludes a table of
contents, dividers, and resumes for Consultant’s team.
Please format your response to this request in the following order to facilitate comparisons among respondents.
1. Enclose a cover letter not to exceed one page, describing the firm's interest and commitment to perform
work necessary to provide consulting services for a Municipal Sales/Use Tax Auditing and Economic
Analysis Services. The person authorized by the firm to negotiate a contract with the City of Dublin shall
sign the cover letter. Please include this cover letter within the document and not as a separate page.
2. Firm Background and Organization
a. Describe your organization, date founded, ownership and other business affiliations. Provide
number and location of affiliated offices. Specify the number of years your organization has
provided requested services.
b. Project Experience: Narrative description, accompanied by examples of reports or other related
deliverables of projects similar in scope to the one covered by this RFP.
3. Scope of Service, addressing items 1‐6
4. Pricing Structure/Methodology
5. References
a. Provide a list of at least five client references in California. Include length of time working with
client, contact name, and phone number. The City reserves the right to contact each of the
references listed for additional information regarding your firm’s qualifications.
6. Provide confirmation of your firm’s ability to meet the City’s Standard Consulting Agreement and
insurance requirements. Exceptions to the Agreement and insurance requirements shall be specifically
noted in the Proposal.
As stated in the Process and General Conditions and Schedule for RFP Process sections above, proposals are due
no later than April 15 by 5:00pm. Any Proposal submitted after the stated deadline will not be accepted for
consideration.
Standard Consulting Agreement:
It is anticipated that the services covered by the Agreement resulting from this solicitation will be performed on
a time and materials fee basis for a specified scope of work. The term of the agreement will begin July 1, 2022
A sample of the City’s Standard Consulting Agreement (Agreement), including insurance requirements, is provided
as Attachment A.
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If the interested firm desires to take exception to the Agreement and/or insurance requirements, the interested
firm shall clearly identify proposed changes to the Agreement and furnish the reason for these changes, which
shall be included in the qualification. Exceptions will be taken into consideration in evaluating Proposals.
Otherwise, the interested firm is to state in the proposal that the Agreement and insurance requirements are
acceptable.
Consideration for exceptions will not be considered if not included in the submitted proposal.
Conflict of Interest
Proposer agrees that, for the term of this contract, no member, officer or employee of the City of Dublin, or of a
public body within Alameda County or member or delegate to the Congress of the United States, during his/her
tenure or for one year thereafter, shall have any direct interest in the contracts or any direct or material benefit
arising therefrom.
Proposers must provide a list of any potential conflicts of interest in working for the City of Dublin. This must
include, but is not limited to, a list of your firm’s clients who are the following: Private clients located or operating
within the City of Dublin limits, Dublin San Ramon Service District, US Army Camp Parks and/or the County of
Alameda, and a brief description of work for these clients. Proposers must also identify any other clients (including
public entities), that may pose a potential conflict of interest, as well as a brief description of work you provide to
these clients.
This list must include all potential conflicts of interest within the year prior to the release of this RFQ as well as
current and future commitments to other projects.
Principals and those performing work for City of Dublin may be required to submit a California Fair Political
Practices Commission (FPPC) Form 700: Statement of Economic Interests documenting potential financial conflicts
of interest. For additional information, proposers should refer to the FPPC website at
http://www.fppc.ca.gov/Form700.html.
Equal Employment Opportunity
Proposer shall not, on the grounds of race, color, sex, age, religion, national origin, ancestry, physical handicap,
medical condition, or marital status either discriminate or permit discrimination against any employee or applicant
for employment in any manner prohibited by Federal, State or local laws. In the event of Proposer non‐
compliance, the City of Dublin may cancel, terminate or suspend the Contract in whole or in part. Proposer may
also be declared ineligible for further contracts with the City of Dublin.
Proposer shall take affirmative action to ensure that applicants are employed, and that employees are treated
during their employment, without regard to their race, religion, color, sex, or national origin. Such action shall
include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for
training, including apprenticeship. Proposer and its sub‐consultants shall post in conspicuous places, available to
all employees and applicants for employment, a notice setting forth the following provisions [29 U.S.C. § 623, 42
U.S.C. § 2000, 42 U.S.C. § 6102, 42 U.S.C. § 12112, 42 U.S.C. § 12132, 49 U.S.C. § 5332, 29 CFR Part 1630, 41 CFR
Parts 60 et seq.].
Governing Law
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This RFP summarizes the applicable laws and governance; when in conflict applicable State/Federal guidelines
shall apply. The contract and legal relations between the parties hereto shall be governed and construed in
accordance with the laws of the State of California.
Insurance Requirements
The Contractor shall provide insurance coverage as follows in conformance with the City of Dublin’s requirements:
General Liability Insurance $1,000,000
Automobile Liability Insurance $1,000,000
Professional Liability Insurance $2,000,000
Workers’ Compensation Insurance $1,000,000
Review and Selection Process
The City reserves the right to make the selection based on its sole discretion. A subcommittee selected by City
Staff will evaluate proposals provided in response to this RFP. Informal interviews may be conducted by City staff,
and may include more than one firm that has submitted a Proposal.
Based on input from this review process, a recommendation will be made to the City Manager. The City Manager
will make a recommendation to the City Council for award of contract services.
The City reserves the right to award a contract to the firm(s) that the City feels best meets the requirements of
the RFP. The City reserves the right to reject any and all Proposals prior to execution of the Agreement, with no
penalty to the City.
Selection of Consultant
Submitted Proposals will be evaluated and scored using the following criteria:
Qualifications and specific experience of key project team members.
Quality and completeness of the proposal.
Experience with engagement of similar scope and complexity.
Satisfaction of previous clients.
Cost of providing the consultant services for this project.
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Attachment A
Standard Consulting Services Agreement
(Removed for the purposes of the June 21, 2022 Regular City
Council Meeting)
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