HomeMy WebLinkAboutID# 14-425 Sales & Use Tax AnalsyisC I'T'Y OF �.
LAKE L,srNORT
EMC-
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT M. YATES
CITY MANAGER
DATE: JANUARY 27, 2015
SUBJECT: Sales and Use Tax Analysis
Recommendation
1. Adopt Resolution No. 2015 - — Authorizing Examination of Sales,
Use and Transactions Tax Records for Hinderliter, de Llamas &
Associates; and
2. Approve the Agreement for Sales, Use and Transaction Tax Audit
Information Services and authorize the City Manager to execute the
agreement subject to any minor modifications approved by the City
Attorney.
Background
On November 10, 1992, the City Council approved Resolution No. 92 -78
authorizing examination of sales and use tax records.
This resolution allowed the City's prior consultant access to our sales tax records
at the State Board of Equalization for purposes of sales tax reporting and
forecasting.
Discussion
Hinderliter, de Llamas & Associates (HdL) has agreed to perform ongoing sales
and use tax analysis for the City. The attached agreement provides for HdL to
perform these services. As a part of their services, the State of California Board
of Equalization requires an updated Resolution authorizing HdL to have access
to the City's sales and use tax records for official business.
January 27, 2015
Page 2 of 3
Fiscal Impact
There is no fiscal impact to approving access to the City's records. The
consultant will be paid for sales and use tax analysis within existing
appropriations in the adopted Fiscal Year 2014/2015 budget.
Prepared by: David Bilby
Finance Manager
Approved by Jason Simpson
Director of Administrative Services
Approved by: Grant Yates, City Manager
Attachments: Resolution
Agreement for Sales, Use and Transaction Tax Audit
Information Services
RESOLUTION NO. 2015 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAKE ELSINORE AUTHORIZING EXAMINATION OF
SALES, USE AND TRANSACTIONS TAX RECORDS
WHEREAS, the City of Lake Elsinore entered into a contract with the State Board
of Equalization to perform all functions incident to the administration and collection of local
sales, use and transactions taxes; and
WHEREAS, the City Council of the City of Lake Elsinore deems it desirable and
necessary for authorized representatives of the City to examine confidential sales, use
and transactions tax records of the State Board of Equalization pertaining to sales, use
and transactions taxes collected by the Board for the City pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets
forth certain requirements and conditions for the disclosure of Board of Equalization
records, and establishes criminal penalties for the unlawful disclosure of information
contained in, or derived from, the sales, use and transactions tax records of the Board.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The City of Lake Elsinore hereby rescinds all prior resolutions and
herby appoints the City Manager, or other officer or employee of the City designated in
writing by the City Manager to the State Board of Equalization (hereafter referred to as
Board), to represent the City of Lake Elsinore with authority to examine sales, use and
transactions tax records of the Board pertaining to sales, use and transactions taxes
collected for the City by the Board pursuant to the contract between the City and the
Board. The information obtained by examination of Board records shall be used only for
purposes related to the collection of City sales, use and transactions taxes by the Board
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 Board, is hereby appointed to represent
the City with authority to examine those sales, use and transactions tax records of the
Board, 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
City Council Resolution No 2015 -_
Page 2
The information obtained by examination of Board 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 sales, use and transactions tax records of the Board pertaining to sales, use
and transactions taxes collected for the City by the Board. The person or entity designated
by this section meets all of the following conditions:
(a) has an existing contract with the City to examine those sales, use and
transactions tax records;
(b) is required by that contract to disclose information contained in, or
derived from, those sales, use and 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, use and transactions tax records, after that contract has
expired.
[continues on next page]
City Council Resolution No 2015 -
Page 3
The information obtained by examination of Board records shall be used only for
purposes related to the collection of City sales, use and transactions taxes by the Board
pursuant to the contract between the City and the Board and for purposes relating to the
governmental functions of the City listed in section 2 of this Resolution.
SECTION 4. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED, AND ADOPTED, at a regular meeting of the City Council
of the City of Lake Elsinore, California, on this 27th day of January, 2015.
STEVE MANOS
MAYOR
ATTEST:
VIRGINIA BLOOM
CITY CLERK
APPROVED AS TO FORM:
BARBARA ZEID LEIBOLD
CITY ATTORNEY
AGREEMENT FOR SALES, USE AND TRANSACTIONS TAX AUDIT AND
INFORMATION SERVICES
THIS AGREEMENT FOR SALES, USE AND TRANSACTIONS TAX AUDIT AND
INFORMATION SERVICES (the "Agreement") is made and entered into as of the , day of
2014 (the "Effective Date ") by and between the CITY OF LAKE
ELSINORE, a municipal corporation (hereinafter called "CITY "), and HINDERLITER, DE
LLAMAS AND ASSOCIATES, a California corporation (hereinafter called "CONTRACTOR ").
I. RECITALS
WHEREAS, sales, use and transactions tax revenues can be increased through a system
of continuous monitoring, identification and correction of allocation errors, and
WHEREAS, an effective program of sales and use tax management will improve
identification of economic opportunities; provide for more accurate sales and use tax
forecasting; and assist in related revenue collections; and
WHEREAS, CITY desires the combination of data entry, report preparation and analysis
necessary to effectively manage its sales and use tax base; recover revenues erroneously
allocated to other jurisdictions and allocation pools; and maximize its financial and
economic planning; and
WHEREAS, CONTRACTOR has the programs, equipment and personnel required to
deliver the sales and use tax related services referenced herein.
THEREFORE, CITY and CONTRACTOR, for the consideration hereinafter described, mutually
agree as follows:
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II. SERVICES
The CONTRACTOR shall perform the following services:
A. SALES TAX AND ECONOMIC ANALYSIS
1. CONTRACTOR 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. CONTRACTOR shall provide up -dated reports each quarter identifying changes
in sales by individual businesses, business groups and categories and by
geographic area. Quarterly aberrations due to State audits, fund transfers, and
receivables along with late or double payments will be identified. Quarterly
reconciliation worksheets to assist finance officer with budget forecasting will
also be included.
3. CONTRACTOR shall additionally provide a quarterly summary analysis for the
CITY to share with 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.
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4. CONTRACTOR shall make available to CITY Staff the HdL 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 update quarterly. This software shall allow city staff to search
business 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
1. CONTRACTOR shall conduct initial and on -going sales and use tax audits to
identify and correct distribution errors, thereby generating previously unrealized
sales tax income for the CITY and/or recovering misallocated sales tax from
previously properly registered taxpayers. Common errors that will be monitored
and corrected include, but are not limited to: transposition errors resulting in
misallocation; erroneous consolidation of multiple outlets; 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.
2. CONTRACTOR will initiate contacts with the appropriate sales management
and accounting officials in companies that have businesses where a probability
of error exists to verify whether current tax receipts accurately reflect the local
sales activity. Such contacts will be conducted in a professional and courteous
manner so as to maintain and enhance CITY'S relations with the business
community.
3. CONTRACTOR shall prepare and submit to the Board of Equalization all
information necessary to correct any allocation errors that are identified and shall
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follow -up with the individual businesses and the State Board of Equalization to
ensure that all back quarter payments due the CI'T'Y are recovered.
4. If during the course of its audit, CONTRACTOR finds businesses located in the
CITY that are properly reporting sales tax but have the potential for modifying
their operation to provide an even greater share to the CITY, CONTRACTOR
shall so advise CITY and upon request, shall work with those businesses and the
CITY to encourage such changes.
C. ONGOING CONSULTATION
Throughout the term of this Agreement, CONTRACTOR shall advise and work with
CITY staff on technical questions related to sales, use and transactions tax; advise
CITY Business License staff on utilization of reports to enhance business license
collection efforts; provide sales tax projections for proposed annexations, economic
development projects and budget planning; and generally serve as support staff on
sales, use and transactions tax related issues.
III. OPTIONAL SERVICES
Optional services beyond the scope of this Agreement are available at
CONTRACTOR's hourly rates as in effect from time to time. Optional services
include, but are not limited to, negotiating/review of tax sharing agreements,
establishing purchasing corporations and meeting with taxpayers to encourage self -
assessment of use tax. The hourly rates in effect at the time of the execution of this
Agreement are as follows:
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Page 4
fM
Principal
Programmer
Senior Analyst
Analyst
$225 per hour
$195 per hour
$150 per hour
$75 per hour
CONTRACTOR may change such hourly rates from time to time upon not less than
30 days' prior written notice to CITY.
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 7056 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 Agreement:
A. CONTRACTOR is authorized by this Agreement to examine sales, use or
transactions 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
Revenue and Taxation Code section 7200 et.seq.
B. CONTRACTOR is required to disclose information contained in, or derived from,
those sales, use or transactions and use tax records only to an officer or employee of
the CITY who is authorized by resolution to examine the information.
051613 Page 5
C. CONTRACTOR is prohibited from performing consulting services for a retailer, as
defined in California Revenue & Taxation Code Section 6015, during the term of this
Agreement.
D. CONTRACTOR is prohibited from retaining the information contained in, or
derived from those sales or transactions and use tax records, after this Agreement has
expired. Information obtained by examination of Board of Equalization 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.
V. OWNERSHIP OF MATERIALS, CONFIDENTIALITY.
A. Software Use. CONTRACTOR hereby provides authorization to the CITY to access
CONTRACTOR'S Sales Tax website if the CITY chooses to subscribe to the
software and reports option. The website shall only be used by authorized CITY
staff. No access will be granted to any third party without explicit written
authorization by CONTRACTOR. The CITY shall not sublet, duplicate, modify,
decompile, reverse engineer, disassemble, or attempt to derive the source code of
said software. The software use granted hereunder shall not imply ownership by
CITY of said software, or any right of the CITY to sell said software or the use of
same, or any right to use said software for the benefit of others. This software use
authorization is not transferable. Upon termination or expiration of this Agreement
the software use authorization shall expire, and all CITY staff website logins shall be
de- activated.
051613 Page 6
B. Proprietary Information. As used herein, the term "proprietary information" means
any information which relates to CONTRACTOR'S computer or data processing
programs; data processing applications, routines, subroutines, techniques or systems;
desktop or web -based software; or business processes. Except as otherwise required
by law. CITY shall hold in confidence and shall not disclose to any other parry any
CONTRACTOR proprietary information in connection with this Agreement, or
otherwise learned or obtained by the CITY in connection with this Agreement. The
obligations imposed by this Section shall survive any expiration or termination of
this Agreement. The terms of this Section shall not apply to any information that is
public information.
VI. CONSIDERATION
A. CONTRACTOR shall establish the sales and transactions tax databases, shall
provide the ongoing reports and analysis and shall make available the computer
software program and databases referenced above for a fee of $450.00 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 payable no
later than 30 days after 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 ceased to
be published, any reasonably comparable index selected by CONTRACTOR.
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B. CONTRACTOR shall be further paid 15% of all new and recovered sales and use tax
revenue received by the CITY as a result, in whole or in part, of audit and recovery
work performed by CONTRACTOR (hereafter referred to as "audit fees "), including
any reimbursement from the Sales and Use Tax Compensation Fund as outlined in
Section 97.68 of the Revenue and Taxation Code. In the event that CONTRACTOR
is responsible, in whole or in part, for an increase in the tax reported by businesses
already properly making tax payments to the CITY, it shall be CONTRACTOR'S
responsibility to separate and support the incremental amount that is attributable, in
whole or in part, to its efforts prior to the application of the audit fee. Said audit fees
will apply to state fund transfers received for back quarter reallocations and monies
received in the first eight consecutive reporting quarters following completion of the
audit by CONTRACTOR and confirmation of corrections by the State Board of
Equalization. CONTRACTOR shall provide CITY with an itemized quarterly
invoice showing all formula calculations and amounts due for audit fees, which shall
be payable no later than 30 days following invoice date.
CONTRACTOR shall obtain CITY approval prior to beginning the work of
correcting tax reporting methodology or "point of sale" for specific businesses where
said payment of the percentage fee will be expected. Said approval shall be deemed
given when the City Manager, or his designated representative, signs a Sales Tax
Audit Authorization form, a copy of which is attached as "Exhibit A." CITY shall
pay audit fees upon CONTRACTOR'S submittal of evidence of State Fund Transfers
and payments to CITY from businesses identified in the audit and approved by the
CITY. The audit fees shall be payable on all new and/or recovered tax revenues
received from approved businesses as a consequence, in whole or in part, of the
audit, and even if CITY, of its own volition, assists with the audit, works in parallel
051613 Page 8
with the audit, and/or expends attorneys fees or other out -of- pocket costs in
connection with any of the foregoing.
The above sums shall constitute full reimbursement to CONTRACTOR for all direct
and indirect expenses incurred by CONTRACTOR in performing audits including
the salaries of CONTRACTOR'S employees, and travel and other business expenses
connected with contacting local and out -of -state businesses and Board of
Equalization representatives.
D. CONTRACTOR shall invoice CITY for any optional services rendered to CITY in
accordance with Section III above on a monthly or a quarterly basis, at
CONTRACTOR's option. Any such invoices shall be payable by CITY no later than
30 days following invoice date.
R Any invoices not paid on a due and timely basis shall accrue monthly interest at a
rate equivalent to ten percent (10 %) per annum until paid.
F. In the event that CONTRACTOR determines that there is a reasonable likelihood
that its compensation during the CITY's fiscal year will exceed $30,000,
CONTRACTOR shall promptly notify CITY. In no event shall CONTRACTOR'S
compensation exceed in any fiscal year exceed $30,000 without additional written
authorization from the CITY.
VII. 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
051613 page 9
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 continue
CONTRACTOR'S authorization to examine the confidential sales tax records of the
CITY by maintaining CONTRACTOR'S name on the CITY Resolution or by providing
copies of future allocation reports on computer readable magnetic media until such time
as all audit adjustments have been completed by the State Board of Equalization and audit
fees due the CONTRACTOR have been paid.
VIII. LICENSE, PERMITS, FEES AND ASSESSMENTS
CONTRACTOR shall obtain such licenses, permits and approvals (collectively the
"Permits ") as may be required by law for the performance of the services required by this
Agreement. CITY shall assist CONTRACTOR in obtaining such Permits, and CITY
shall absorb all fees, assessments and taxes which are necessary for any Permits required
to be issued by CITY.
IX. TERM AND TERMINATION
Unless earlier terminated as provided herein, this Agreement shall terminate annually on
June 30th of each year. The CITY may, at its sole discretion, extend the term of this
Agreement on a 12 -month basis by giving written notice thereof to CONTRACTOR not
less than thirty (30) days before the end of the contract term, such notice to be exercised
by the City Manager.
This Agreement may be terminated for convenience 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
051.613
Page 10
date of termination. Upon termination as provided herein, CONTRACTOR shall be paid
the value of all tax analysis and reporting work performed less payments previously made
by CITY. In ascertaining the value of the work performed up to the date of termination,
consideration shall be given to amounts due for any unpaid invoices, and to businesses
identified by CONTRACTOR which make tax payments after termination of this
Agreement as a result of CONTRACTOR'S work. After CITY receives said tax
payments for such businesses, CONTRACTOR shall be paid the audit fees resulting from
tax payments made by the business for back quarter reallocations and the first eight
consecutive reporting quarters following completion of the audit by CONTRACTOR and
confirmation of corrections by the State Board of Equalization. Compensation for any
audit work previously authorized and satisfactorily performed shall be made at the times
provided in the preceding section entitled "Consideration."
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.
X. INDEPENDENT CONTRACTOR
CONTRACTOR shall perform the services hereunder as an independent contractor and
shall furnish such services in its 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,
051613 Page 11
XI. NON- ASSIGNMENT
This Agreement is not assignable either in whole or in part by CONTRACTOR without
the written consent of CITY.
XII. 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.
XIII. GOVERNING LAW
The laws of the State of California shall govem the rights, obligations, duties and
liabilities of the parties to this Agreement and shall also govern the interpretation of this
Agreement.
XIV. INSURANCE
Unless modified by the CITY's Risk Manager CONTRACTOR shall maintain the
policies set out below, and in amounts of coverage not less than those indicated herein.
L Workers' Compensation Coverage. CONTRACTOR shall maintain Workers'
Compensation Insurance and Employer's Liability Insurance for his/her employees in
accordance with the laws of the State of California. In addition, CONTRACTOR
shall require each subcontractor to similarly maintain Workers' Compensation
Insurance and Employer's Liability Insurance in accordance with the laws of the State
of California for all of the subcontractor's employees. Any notice of cancellation or
051613
Page 12
non - renewal of all Workers' Compensation policies must be received by the CITY at
least thirty (30) days prior to such change. The insurer shall agree to waive all rights
of subrogation against CITY, its officers, agents, employees and volunteers for losses
arising from work performed by CONTRACTOR for CITY. In the event that
CONTRACTOR is exempt from Worker's Compensation Insurance and Employer's
Liability Insurance for his/her employees in accordance with the laws of the State of
California, CONTRACTOR shall submit to the CITY a Certificate of Exemption
from Workers Compensation Insurance in a form approved by the City Attorney.
2. General Liability Coverage. CONTRACTOR shall maintain commercial general
liability insurance in an amount not less than one million dollars ($1,000,000) per
occurrence for bodily injury, personal injury and property damage. If a commercial
general liability insurance 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. Required commercial general liability coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73)
covering comprehensive General Liability and Insurance Services Office form
number GL 0404 covering Broad Form Comprehensive General Liability. No
endorsement may be attached limiting the coverage.
3. Automobile Liabilitv Coverage. CONTRACTOR shall maintain automobile liability
insurance covering bodily injury and property damage for all activities of the
CONTRACTOR arising out of or in connection with the work to be performed under
this Agreement, including coverage for owned, hired and non -owned vehicles, in an
amount of not less than one million dollars ($1,000,000) combined single limit for
each occurrence. Automobile liability coverage must be at least as broad as Insurance
051613 Page 13
Services Office Automobile Liability form CA 0001 (ed. 12/90) Code I ( "any auto"),
No endorsement may be attached limiting the coverage.
4. Professional Liability Coveraeg. CONTRACTOR shall maintain professional errors
and omissions liability insurance appropriate for CONTRACTOR's profession for
protection against claims alleging negligent acts, errors or omissions which may arise
from CONTRACTOR's services under this Agreement, whether such services are
provided by the CONTRACTOR or by its employees, subcontractors, or sub
consultants. The amount of this insurance shall not be less than one million dollars
($1,000,000) on a claims -made annual aggregate basis, or a combined single limit per
occurrence basis.
Each general liability and automobile liability insurance policy shall be with insurers
possessing a Best's rating of no Iess than A:VII and shall be endorsed with the following
specific language:
i. The CITY, its elected or appointed officers, officials, employees, agents and
volunteers are to be covered as additional insured with respect to liability
arising out of work performed by or on behalf of the CONTRACTOR,
including materials, parts or equipment furnished in connection with such
work or operations.
ii. This policy shall be considered primary insurance as respects the CITY, its
elected or appointed officers, officials, employees, agents and volunteers.
Any insurance maintained by the CITY, including any self-insured retention
the CITY may have, shall be considered excess insurance only and shall not
contribute with it.
051613
Page 14
iii. This insurance shall act for each insured and additional insured as though a
separate policy had been written for each, except with respect to the limits of
liability of the insuring company.
iv. The insurer waives all rights of subrogation against the CITY, its elected or
appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to the CITY, its elected or appointed officers, officials,
employees, agents or volunteers.
vi. The insurance provided by this Policy shall not be suspended, voided,
canceled, or reduced in coverage or in limits except after thirty (30) days
written notice has been received by the CITY.
Any deductibles or self - insured retentions must be declared to and approved by the CITY.
At the CITY's option, CONTRACTOR shall demonstrate financial capability for
payment of such deductibles or self - insured retentions.
CONTRACTOR shall provide certificates of insurance with original endorsements to
CITY as evidence of the insurance coverage required herein. Certificates of such
insurance shall be filed with the CITY on or before commencement of performance of
this Agreement. Current certification of insurance shall be kept on file with the CITY at
all times during the term of this Agreement.
XV. 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
051613 Page 15
confidentiality or property damage which may arise from CONTRACTOR's willful or
negligent acts, errors or omissions or those of its employees or agents. CONTRACTOR
agrees to and shall indemnify and defend, including reasonable attorneys fees, 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 willfiil or negligent acts, errors or omissions.
XVI. NOTICE
All notices required by this Agreement shall be given to CITY and CONTRACTOR in
writing, by personal delivery or first class mail postage prepaid, addressed as follows:
CITY: CITY OF LAKE ELSINORE
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Manager
CONTRACTOR: HINDERLITER, DE LLAMAS, & ASSOCIATES
1340 Valley Vista Drive, Suite 200
Diamond Bar, CA 91765
[SIGNATURES ON NEXT PAGE]
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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 LAKE, ELSINORE, a municipal
corporation
ATTEST: Grant Yates, City Manager
City Clerk
...t.� JJ.
CONTRACTOR:
IIINDERLITER, DE LLAMAS & ASSOCIATES 'a Corporation
Print Name. Andrew Nickerson
Title: President
051613 Page 17
SAMPLE
EXHIBIT A
Sales Tax Audit
Work Authorization No.
SAMPLE
The following business or businesses, located in the City of Lake Elsinore have been identified as
having the potential for recovering or generating additional sales tax revenue to the City of Lake
Elsinore. Contractor is hereby solely 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.
Contractor's compensation shall be 15% of the sales and/or use tax revenue received by the City
as a result of audit and recovery work performed by Contractor, as set forth in the Agreement
between Contractor and City.
CITY OF LAKE ELSINORE
HINDERLITER, DE LLAMAS AND ASSOCIATES
By:
812621.2
CERTIFICATE OF LIABILITY INSURANCE
-
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
IMPORTANT: n the cenmcate nomor is an AUDIT WNAL INSuneu, Ulu poncylles) nmsa An mmm snu, n avaanwnnvn .v a.ru. cam, ��„)o�..�
the terms and conditions of the polky, certain policies may require an endorsement. A statement on this cadlOcate does not confer rights to the
Assoc.,lnc. 626.331.81
1340 Valley Vista Drive 19200
rrnlcoAres
THIS IS TO CERTIFY TROT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
NSR
TYPE OF INSURANCE
LIMITS
A
GENERAL LIABILITY
X COMMERCIAL GENERAL LIABILITY
CLAIMSAWDE M OCCUR
BKW55740802
11/15/14
11/15/15
EACH OCCURRENCE
$ 1,000,00
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MED EXP one arson)
$ 15,00
PERSONAL 8 ADV INJURY
$ 1,000,00
GENERAL AGGREGATE
$ 2,000,00
GENL AGGREGATE LIMIT APPLIES PER:
X POLICY PRO- LOC
PRODUCTS - COMPIOP AGG
$ 2,000,00
$
B
AUmMOBILEUABILNY
X ANY AUTO
AUTOS�� AUI OS ULED
NON -OWNED
HIRED AUTOS AUTOS
BAS55740802
11115/94
11115115
Ee accident
11000100
BODILY INJURY (Fer person)
S
BODILY INJURY (Per eccidem)
$
PROPERTY DMMGE
Per eccido
$
$
C
X
UMBREW.AUAO
EXCESSLIns
X
OCCUR
CLAIMSMI
USA55740802
11/15114
11115/15
EACH OCCURRENCE
$ 3,000,00
AGGREGATE
S 3,000,00
X
I R WIN s 10.00
B
WORKERS COMPENSATION
AND EMPLOYERS' LIABILRY
ANYPROPRIETOR/PARTNER]EXECUTIVE Y®
IY)
OFFICERNEMBFR FXCLFD'!
(MrndI In NH)
If E, Wbe order
n
NfA
X
XWS55740802
11/15114
11115/15
C A O T� FIR
E. L. EACH ACCIDENT
$ 1,000,00
EL. DISEASE - EA EMPLOYE
$ 1,000,OD
EL. DISEASE - POLICY LIMIT
$ 100000
D
ProfessionalLlab
Claim Made Form
72POO246728
RETRO: 7115/09
11/15114
11/151115
Ea/Agg $Iml$l
Dod 25,00
DESCRIPTION OF OPERATIONS I LOGATONSI VEHICLES (Aeach ACORD 101, ACdwonoI Rana r s Schedule, emon, span Is raquin d)
30 days notice of cancellation except r10 days for non payment
orkers Compensation Waiver of Subrogation applies in favor of the City of
Lake Elsinore, its officers, agents, employee and volunteers.
LAKEELS
City of Lake Elsinore
130 S. Main Street
Lake Elsinore„ CA 92580
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
01988- 2010ACORDCORPORATION, All
ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD
WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY
WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT- CALIFORNIA
WC 04 03 06
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right
against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work
under a written contract that requires you to obtain this agreement from us.)
You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work
described in the Schedule.
The additional premium for this endorsement shall be _% of the California workers' compensation premium otherwise due
on such remuneration.
Schedule
Person or Organization Job Description
City of Lake Elsinore, its officers, agents, employees and volunteers
130 S. Main Street
Lake Elsinore, CA 92580
Notes:
1. This endorsement may be used to waive the companys right of subrogation against named third parties who may be responsible for an
Injury.
2. The sentence in ( ) is optional with the company. It limits the endorsement to apply only to specific jobs of the insured, and only to the
Went that the insured is required to obtain this waiver.
This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated.
(The information below is required only when this endorsement Is Issued subsequent to preparation of the policy.)
Endorsement Effective Policy No. XWS55740802 Endorsement No.
Insured HINDERLITER DE LLAMAS & Insurance Company OHIO SECURITY INS CO
ASSOCIATES
Countersigned By