HomeMy WebLinkAboutItem 25 - Approve Consultant Agreement with Avenu InsightsFinance and Management Services
www.santa-ana.org/finance
Item # 25
or City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 19, 2021
TOPIC: Approve Consultant Agreement with Avenu Insights
AGENDA TITLE:
Approve agreement with Avenu Insights & Analytics, LLC for Utility Users' Tax Auditing
and Consulting Services for an amount not to exceed $750,000 (General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute an agreement with Avenu Insights & Analytics,
LLC ("Avenu Insights") for Utility Users' Tax Revenue Auditing, Recovery, Reporting,
Analysis, and Legislative/State Agency Liaison and Implementation Monitoring Services
for a period beginning February 1, 2021 through January 31, 2024 for an amount not to
exceed $462,500 which includes a contingency of $207,500, plus two one-year
extensions exercisable by the City Manager and City Attorney for a combined amount not
to exceed $287,500 which includes a contingency of $117,500, subject to non -substantive
changes approved by the City Manager and City Attorney.
DISCUSSION
The City imposes a Utility Users' Tax (UUT) for a variety of utility services within the City.
Utilities subject to the tax include electricity, gas, telecommunications, and water.
Individuals and entities using these utility services pay a City tax rate of 5.5% on all
charges made for such services. The City anticipates generating approximately $24.3
million in UUT revenue for FY 2020-21. The estimated UUT accounts for 8% of General
Fund revenues. The City has recently concluded its previous consultant agreement for
UUT services, which has been used to provide budget planning, revenue forecasting,
trend analysis, and other UUT services.
Therefore, on October 26, 2020, a Request for Proposals (RFP No. 20-137) for UUT Tax
Revenue Auditing Recovery, Reporting, Analysis, and Legislative/State Agency Liaison
and Implementation Monitoring Services was issued. Two responsive RFP proposals
were received on November 30, 2020. These two (2) proposals were reviewed and
evaluated by a selection committee from the Community Development and Finance and
Management Services Agencies. The evaluation was based on the following criteria:
Approve Consultant Agreement with Avenu Insights
January 19, 2021
Page 2
• Professional Consultant/Contractor Qualifications 20%
• Professional Consultant/Contractor Experience 20%
• Client References 15%
• Proposed Scope of Services 30%
• Cost of Providing Service 15%
The final score was derived by averaging the individual staff member's rating for each
category and then reaching a cumulative score. Using this methodology, the highest
average cumulative score is reflective of the best proposal.
The proposals received in response to RFP No. 20-137 were ranked accordingly, as
follows:
Rank
Firm
Average Score Out of 100 pts.
1
Avenu Insights & Analytics, LLC
96
2
HdL Companies
86
Staff recommends selecting Avenu Insights due to its extensive experience and
specialization in UUT revenue auditing, recovery, reporting, analysis, and legislative/state
agency liaison and implementation monitoring services. Additionally, Avenu Insights was
evaluated as the most responsive, capable, and cost effective respondent to the City's
UUT consulting service needs. Avenu Insights is a leader in assisting local governments
in implementing, administering, and managing multiple tax types. They service more than
1,000 government entities nationwide.
Avenu Insights, and their wholly owned subsidiary MuniServices, LLC, have been
supporting the City with UUT services since the City's most recent RFP in 2016. Avenu
Insights is knowledgeable concerning UUT trends in Orange County as they provide
revenue enhancement and auditing services to cities such as Anaheim, Brea, Cypress,
Laguna Beach, Newport Beach, and Villa Park. In addition to providing services to the
County of Orange and the Orange County Transit Authority.
The UUT services provided by Avenu Insights (Avenu) will include, but are not limited to,
the following items:
1. Represent the City for purposes of examining UUT records in order to identify and
confirm any errors/omissions leading to deficient payments to the City on a monthly
basis which ensures utility providers are paying the appropriate rate, that all
providers in the area are reporting, and that newly formed and aggregator suppliers
are in compliance with both UUT and Franchise Fee payments. Avenu also
maintains secure databases which retain payment histories from all reporting
Approve Consultant Agreement with Avenu Insights
January 19, 2021
Page 3
providers for use in forecasting and providing year -over -year analysis of revenue
trends from all industries.
2. For each error/omission identified and confirmed, prepare the appropriate
documentation to facilitate recovery of revenue due to the City including any
applicable penalties and interest via either written notice or verbal contact with the
appropriate officials or representatives of current and developing industries.
3. Prepare and forward to the appropriate parties requests for corrective action and
revenue recovery. Such requests will be in the form and fashion of a compliance
notice backed with legal analysis which will provide perspective to the utility
regarding their risks of noncompliance and/or being subjected to examination and
enforcement. Over a period from approximately FY 1992-93 through the
conclusion of the term of the most recent UUT services agreement with
MuniServices, a wholly owned subsidiary of Avenu Insights, UUT revenue
generation/recovery from these services for the City of Santa Ana totaled
approximately $36,255,000,reported as of July 2020.
4. Meet with designated City officials as necessary (but not less than quarterly) to
review consultant findings and recommendations.
5. Provide any additional assistance pursuant to specific City requests as necessary
to support the City in recovering and preventing past, current, and future tax
delinquencies.
6. Utility Users' Tax — Prepare annual UUT report that includes a detailed legal and
legislative update spanning activities which have occurred in the prior year and
those which are likely or certain to continue within the following years that could
potentially affect UUT revenues and a five year forecast for each utility industry
type; and assist in the development of multi -year UUT budget revenue forecast
model. Avenu will also conduct regular quarterly one-on-one meetings with the
City to update the UUT revenue forecast for issues which were either uncertain or
unknown at the time of the original forecasting in order to keep the City apprised
of the most accurate forecast models for its UUT revenues year-to-date and
beyond.
7. Legislative/State Agency Liaison and Implementation Monitoring — Provide federal,
state, and local legislative and state agency liaison and program implementation
monitoring; including coordination with City's state and federal lobbyists in
connection with legislation/regulation relating to the City's UUT. Avenu will also
coordinate with statewide and national government associations' legal and
legislative teams to assist in advocating for favorable legislative actions at the state
and federal level on the City's behalf. Avenu additionally will interact directly with
state legislative bodies in the drafting of state statutes and administrative code
Approve Consultant Agreement with Avenu Insights
January 19, 2021
Page 4
provisions directly affecting (and promoting) local UUT revenue; e.g. AB 1717
(Telecommunications: Prepaid Mobile Telephony Services: State Surcharge and
Fees: Local Charges Collection) and SB 1441 (Local Prepaid Mobile Telephony
Services Collection Act).
8. Monitor statewide and nationwide trends in developing compliance issues and
technological developments in various utility industries in order to legally and
legislatively apprise the City of potential new markets, trends, and product
developments that may be subject to the City's UUT in order to expand the City's
tax base and bring new industries into compliance to increase overall UUT
revenues.
9. Conduct regular monthly client City conferences hosting 65 California Avenu client
cities and multiple personnel from each City to present technical compliance issues
including existing, ongoing, and potentially upcoming UUT issues in order to
maintain and share knowledge surrounding such issues in an open forum which
facilitates coordination and unification amongst all clientele. This involves
compliance, legal, and legislative issues relating to UUTs that impact both regional
and statewide clientele and allows for both the conveyance of Avenu's
observations and position statements on such issues and an open forum for
discussion amongst City finance and legal personnel to interject their positions and
stimulate discussions regarding best processes to resolve potentially negative
issues or advance positive issues. The monthly client conferences provide client
guidance to Avenu on pathways to resolve City -specific issues on their behalf,
regional issues that can involve coalitions of Cities, and statewide issues to provide
uniformity in the collection and enforcement of ever -evolving issues regarding local
California UUT compliance. Individual City follow-up on issues discussed is a
regular occurrence as well that provides Avenu with guidance on how certain Cities
may want to respond individually or jointly to issues discussed.
10. Contingency Option — Provision of an electronic reporting research database
application and utility users' tax administration services for City's UUT
(client/server or web -based portal application) and lockbox services. The
application will provide tax administration services including processing of monthly
UUT reporting and remittance data, plus actual receipt and processing of UUT
payments. The application will allow authorized City staff to search, query,
filter/sort, and export UUT reporting and payment data (in common data formats;
e.g. Access, Excel, etc.) for staff presentations and analysis based on service
provider and utility type.
11. Specialty UUT Audits — Provision of comprehensive audits of principal electric,
gas, and telecommunications utility providers together with large-scale utility
service aggregators utilizing existing franchised infrastructures or wireless
protocols to provide new and existing telecommunication services, natural gas,
Approve Consultant Agreement with Avenu Insights
January 19, 2021
Page 5
electricity, and clean energy to end users within the City. Notably, all audits may
include corresponding franchise fee compliance examinations where advisable
and/or applicable.
12. Specialty Consultative Services — Additional revenue consulting services to
include, potential hotel visitors' taxes, hotel visitors' tax administration services,
potential tourist marketing district assessment fees, tourist marketing district
assessment fees administration services, potential business license taxes, and/or
potential medical marijuana and/or cannabis taxes, or cannabis related operating
agreement fees (as applicable), selection processes for adult -use retail cannabis
business permitting, cannabis testing facility or testing laboratory permitting,
miscellaneous commercial cannabis business (cultivation, manufacture,
distribution) permitting and may also include Comprehensive Annual Financial
Reporting statistical services as may be set forth in any Change Order(s) mutually
agreed to by the City and Avenu Insights.
Moreover, the services that Avenu Insights will render ensures compliance with tax
regulations, and provides early indications of trends in the economy, as well as ensures
that the revenues generated within City boundaries are properly allocated, assigned, and
remitted to the City of Santa Ana.
FISCAL IMPACT
Previously, the City charged the cost of service to the revenue account in the General
Fund, and reflected a net revenue number. To provide greater clarity going forward, staff
will report the gross revenue and an offsetting expenditure for the cost of service. The
summary table below includes the base contract fee, the allowance for contingency, and
the optional extension years for a potential grand total of $750,000 associated with this
contract.
Accounting
Accounting Unit -
Fiscal
Unit -
Fund
Account No.
Amount
Contingency
Total
Year
Account
Description
Description
Amount
No.
FMSA Treasury
Contract
2020-
01110130-
General
Services -
21
62300
Fund
Professional
$42,500
$90,000
$132,500
FMSA Treasury
Contract
2021-
01110130-
General
Services -
22
62300
Fund
Professional
$85,000
$47,000
$132,000
2022-
01110130-
General
23
62300
Fund
FMSA Treasury
$85,000
$47,000
$132,000
Approve Consultant Agreement with Avenu Insights
January 19, 2021
Page 6
Contract
Services -
Professional
FMSA Treasury
Contract
2023-
01110130-
General
Services -
24
62300
Fund
Professional
$85,000
$47,000
$132,000
FMSA Treasury
Contract
2024-
01110130-
General
Services -
25
62300
Fund
Professional
$85,000
$47,000
$132,000
FMSA Treasury
Contract
2025-
01110130-
General
Services -
26
62300
Fund
Professional
$42,500
$47,000
$ 89,500
Grand Total:
$750,000
EXHIBIT(S)
1. Consultant Agreement with Avenu Insights & Analytics, LLC
Submitted By:
Kathryn Downs, Executive Director Finance and Management Services
Approved By: Kristine Ridge, City Manager
EXHIBIT 1
Consultant Services Agreement
This Consultant Services Agreement (the "Agreement") is made as of this 19th day of January. 2021 by and
between Avenu Insights and Analytics, LLC, a Delaware limited liability company ("CONSULTANT") and the
City of Santa Ana, a charter city and municipal corporation of the State of California ("CITY"). In consideration
of the mutual promises herein contained and other good and valuable consideration, the adequacy and receipt
of which is hereby acknowledged, the parties agree as follows:
RECITALS
A. The CITY desires to retain a consultant having special skill and knowledge in the field of professional
services for Utility Users' Tax (including Prepaid Mobile Services Telephony Service Taxes) Revenue Auditing,
Recovery, Reporting, Analysis, and Legislative/State Agency Liaison and Implementation Monitoring Services
as specified herein.
B. In undertaking the performance of this Agreement, CONSULTANT represents that it possesses the
necessary knowledge, qualifications, skills and personnel to provide such services. CONSULTANT warrants
that any services performed by CONSULTANT under this Agreement will be performed in compliance with
such standards as may reasonably be expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms
and conditions hereinafter set forth, the parties agree as follows:
CITY hereby retains CONSULTANT, and CONSULTANT hereby agrees to provide such services as
are set forth hereinbelow, in accordance with the terms and conditions of this Agreement, and represents and
warrants to CITY that CONSULTANT accepts such assignment to perform those services, subject to those
terms and conditions.
1. SCOPE OF SERVICES
a. CONSULTANT will provide CITY with the Utility Users' Tax Revenue Auditing, Recovery, Reporting,
Analysis, and Legislative/State Agency Liaison and Implementation Monitoring services described in
EXHIBIT A and EXHIBIT B, which are attached hereto and incorporated by reference. CONSULTANT
shall. provide said services at the time, place, and manner specified in EXHIBIT A and EXHIBIT B. In
the event that the description of services, their time, place, and manner specified in EXHIBIT A is in
conflict with the provisions of EXHIBIT B then the provisions of EXHIBIT B shall prevail. In the event the
provisions of either EXHIBIT A or B is in conflict with the terms of these Recitals then the terms of these
Recitals will prevail.
b. CONSULTANT, or CONSULTANT'S subcontractor(s), may provide CITY with additional consulting
services described in EXHIBIT B and set out in Exhibit C (CONSIDERATION), which are attached
hereto and incorporated by reference. Such additional consulting services include, but are not be
limited to: audit recoveryof potential hotel visitors' taxes, provision of hotel visitors' tax administration
services, audit recovery of potential tourist marketing district assessment fees, provision of tourist
marketing district assessment fees administration services, audit recovery of potential business license
taxes and associated business improvement district charges, and/or potential medical marijuana and/or
cannabis taxes, or cannabis related operating agreement fees (as applicable), selection process
assistance for adult -use retail cannabis business permitting, cannabis testing facility or testing
laboratory permitting, miscellaneous commercial cannabis business (cultivation, manufacture,
distribution) permitting and may also include Comprehensive Annual Financial Reporting statistical
services as may be set forth in any Change Order(s) mutually agreed to by and between the parties
pursuant to Section 3, subsection 3-22, of said Agreement. EXHIBIT C contingency option Items #2
through #7 may be elected by CITY without a Change Order.
c. CONSULTANT shall furnish at its own expense all labor, materials, equipment and other items
necessary to carry out the terms of this Agreement.
2. COMPENSATION
Upon execution of this Agreement, CITY will pay CONSULTANT as outlined in EXHIBIT C
(CONSIDERATION), which is attached hereto and incorporated by reference. CONSULTANT shall
invoice CITY quarterly on a City fiscal year basis for all charges for services performed pursuant to this
Agreement. Except however, that pursuant to a duly executed Change Order mutually agreed to by the
parties in accordance with Section 3-22 of this Agreement, a different invoicing period may be specified
for the particular services provided in accordance with the terms of such Change Order. Payment by
City shall be made within forty-five (45) days following receipt of proper invoice evidencing work
performed, subject to CITY accounting procedures and proof of insurance as set forth in section 3-9
(insurance). Payment need not be made for work that fails to meet the standards of performance set
forth in the Recitals that may reasonably be expected by CITY.
2.1 Annual Compensation Cap
Compensation for each yearly period (February 1 through January 31) of services provided
under this Agreement, including optional contract extension periods, shall be capped by City fiscal year
period (July 1 through June 30) as follows:
2020-21
$42,500
$90,000
$132,500
2021-22
$85,000
$47,000
$132,000
2022-23
$85,000
$47,000
$132,000
2023-24
$85,000
$47,000
$132,000
2024-25
$85,000
$47,000
$132,000
2025-26
$42,500
$47,000
$ 89,500
750 000
Provided however, that pursuant to a duly executed Change Order mutually agreed to by the parties in
accordance with Section 3-22 of this Agreement, unspent contingency amounts authorized for a
preceding City fiscal year period may be carried forward by written order of the Executive Director of
Finance and Management Services to cover expenses for work or services agreed to by the parties but
exceeding the annual CITY fiscal year compensation amount cap initially specified for such subsequent
period under the provisions of this section.
2.2 Maximum Contract Compensation
Maximum compensation payable to CONSULTANT for all services rendered by CONSULTANT
to CITY, inclusive of all amounts payable for optional and contingency services shall not exceed
$750,000 unless an increase in maximum contract compensation shall be agreed to by the parties
pursuant to duly executed amendment to this Agreement.
3. GENERAL PROVISIONS
3-1. Term of the Agreement: The initial term for the provision of services as set forth in section 1 of
this Agreement shall be for a period of three (3) years commencing February 1, 2021 and ending January
31, 2024, with 2 one (1) one-year extension options exercisable in the sole discretion of the City, by a
writing executed by the City Manager and the City Attorney, if neither party has terminated said
Agreement in accordance with section 3-2.
3-2. Termination: Either party shall have the right to terminate this Agreement in the event of a material
breach by the other party. Any such termination may be made only by providing sixty (60) days written
notice to the other party, specifically identifying the breach or breaches on which termination is based.
Following receipt of such notice, the party in breach shall have thirty (30) days to cure such breach or
breaches. In the event that such cure is not made, this Agreement shall terminate in accordance with
the initial sixty (60) days' notice. Notwithstanding the foregoing, either party may terminate the
Agreement at any time and for any reason by providing thirty -days (30) written notice to the other party;
provided however, that if CONSULTANT has not breached the Agreement and has commenced services
identified in EXHIBIT A prior to the date of termination, CONSULTANT shall be entitled to payment as
described in EXHIBIT B; provided, however, that payment need not be made for work which fails to meet
the standard of performance specified in the Recitals of this Agreement.
3-3. Effect of Termination: Notwithstanding non -renewal or termination of this Agreement, CITY shall
be obligated to pay CONSULTANT for services performed through the effective date of termination for
which CONSULTANT has not been previously paid. In addition, because the services performed by
CONSULTANT prior to termination or non -renewal of this Agreement may result in the CITY's receipt of
revenue after termination which are subject to CONSULTANTS' fee, the CITY shall remain obligated
after 'termination or non -renewal to provide to CONSULTANT such information as is necessary for
CONSULTANT to calculate compensation due as a result of the receipt of revenue by the CITY,
3-4. Independent Contractor: It is understood that CONSULTANT and its subcontractors, if any, in
the performance of the work and services agreed to be performed, shall act as and be an independent
contractor and shall not act as an agent or employee of the CITY. CITY understands that CONSULTANT
may perform similar services for others during the term of this Agreement and agrees that CONSULTANT
representation of other government sector clients is not a conflict of interest. CONSULTANT shall obtain
no rights to retirement benefits or other benefits which accrue to CITY's employees, and CONSULTANT
hereby expressly waives any claim it may have to any such rights.
3-5. Subcontractors: CONSULTANT shall have the right to hire subcontractors to provide the services
described herein. CONSULTANT, in rendering performance under this Agreement shall be deemed an
independent contractor and nothing contained herein shall constitute this arrangement to be employment,
a joint venture, or a partnership. CONSULTANT shall be solely responsible for and shall hold CITY
harmless from any and all claims for any employee related fees and costs including without limitation
employee insurance, employment taxes, workman's compensation, withholding taxes or income taxes.
3-6. Notice: Any notice required to be given under this Agreement shall be in writing and either served
personally, sent prepaid first class mail, or by express mail courier (i.e. FedEx, UPS, etc.). Any such
notice shall be addressed to the other party at the address set forth below. All notices, including notices
of address changes, provided under this Agreement are deemed received on the third day after mailing
if sent by regular mail, or the next day if sent overnight delivery.
If to CITY:
City of Santa Ana
Executive Director, Finance and
Management Services Agency
City of Santa Ana
20 Civic Center Plaza (M-17)
Santa Ana, CA 92702
Phone: (714) 647-6960
Facsimile: (714) 647-5414
If to CONSULTANT:
Avenu Insights and Analytics, LLC
Attn: Contract Department
7625 N. Palm Ave., Ste. 108
Fresno, CA 93711
Phone: (559) 271-6852
Facsimile: (559) 312-2852
Email: le al avenuinsi hts.com
Representative or designees: CONSULTANT Primary Representative/Project Manager shall be:
Management Contact
Name: Jonathan Gerth
Title: Vice President, Tax and Audit
Phone: (205) 616-1140
E-Mail: Jonathan.Gerth avenuinsi hts.com
Representative or designees: City of Santa Ana's Primary Representative/Project Manager shall be:
Willard Holt, Treasury and Customer Services Manager
20 Civic Center Plaza, Room 1105, Santa Ana, CA 92701
Phone: (714) 647-54561 Email: wholt@santa-ana.org
3-7. Indemnity: CONSULTANT shall indemnify, defend, and hold harmless the CITY, its officers,
agents, and employees, from and against any and all claims, liabilities, and losses whatsoever (including
damages to property and injuries to or death of persons, court costs, and reasonable attorneys' fees) to
extent occurring or resulting from CONSULTANT'S negligent or unlawful performance of its obligations
under or breach of the terms of this Agreement, unless such claims, liabilities, or losses arise out of, or
are caused at least in part by the sole negligence or willful misconduct of the CITY. "CONSULTANT'S
performance" includes CONSULTANT'S action or inaction and the action or inaction of CONSULTANT'S
officers, employees, agents and subcontractors.
3-8. Limitation of Liability: In no event shall CONSULTANT, its employees, contractors, directors,
affiliates and/or agents be liable for any special, incidental, or consequential damages, such as, but not
limited to, delay, lost data, disruption, and loss of anticipated profits or revenue arising from or related to
the services, whether liability is asserted in contract or tort, and whether or not CONSULTANT has been
advised of the possibility of any such loss or damage. In addition, CONSULTANT'S total liability
hereunder, including reasonable attorneys' fees and costs, shall in no event exceed an amount equal to
the fees described in EXHIBIT B. The foregoing sets forth the CITY'S exclusive remedy for claims arising
from or out of this Agreement. The provisions of this section allocate the risks between CONSULTANT
and the CITY and CONSULTANT'S pricing reflects the allocation of risk and limitation of liability specified
herein.
3-9. Insurance:
Prior to undertaking performance of work under this Agreement, Consultant shall maintain and
shall require its Subcontractors, if any, to obtain and maintain insurance as described below:
a. Commerciat General Liability Insurance. Consultant shall maintain commercial general liability
insurance naming the City, its officers, employees, agents, volunteers and representatives as
additional insured(s) and shall include, but not be limited to protection against claims arising from
bodily and personal injury, including death resulting therefrom and damage to property, resulting
from any act or occurrence arising out of Consultant's operations in the performance of this
Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall
be not less than the following: single limit coverage applying to bodily and personal injury,
including death resulting therefrom, and property damage, in the total amount of $2,000,000 per
occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers,
employees, agents, and representatives as additional insured(s); (b) be primary and not
contributory with respect to insurance or self-insurance programs maintained by the City; and (c)
contain standard separation of insureds provisions.
b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less
than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and
non -owned automobiles. Due to the nature of the services under this Agreement not
contemplating use of owed autos, coverage for owned autos shall not be required.
c. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 of the
Labor Code, Consultant, if Consultant has any employees, is required to be insured against
liability for worker's compensation or to undertake self-insurance. Prior to commencing the
performance of the work under this Agreement, Consultant agrees to obtain and maintain any
employer's liability insurance with limits not less than $1,000,000 per accident.
d. Errors and omissions insurance, with a combined single limit of not less than $1,000,000 per claim
with $2,000,000 in the aggregate.
e. Cyber/Technology liability insurance, together with Crime, and Fiduciary liability insurance with a
limit of not less than $1,000,000.00 per claim with $2,000,000 in the aggregate.
f. The following requirements apply to the insurance to be provided by Consultant pursuant to this
section:
i. Consultant shall maintain all insurance required above in full force and effect for the entire
period covered by this Agreement.
ii. Certificates of insurance shall be furnished to the City upon execution of this Agreement
and shall be approved by the City.
iii. City of Santa Ana, its officers, employees, agents and representatives shall be Additional
Insureds with respect to General Liability and Auto Liability Insurance is Primary and Non -
Contributory.
iv. Certificates and policies shall state that the policies shall not be canceled or reduced in
coverage or changed in any other material aspect without thirty (30) days prior written
notice to the City of cancellation with ten (10) days prior notice for non-payment of
premium in accordance with policy provisions.
V. Consultant shall supply City with a fully executed additional insured endorsement.
A. Certificates of insurance endorsements shall show the City as a certificate holder as
follows:
City of Santa Ana
Risk Management Division, 4th Floor
20 Civic Center Plaza
Santa Ana, CA 92701
vii. Where the amounts or coverage provided by the certificates of insurance provides
coverage greater than those listed by this Agreement, the amounts provided by the
certificates of insurance shall be incorporated by reference into the Agreement.
3-10. Equal O ortunit to Draft: The parties have participated and had an equal opportunity to
participate in the drafting of this Agreement. No ambiguity shall be construed against any party upon a
claim that that party drafted the ambiguous language.
3-11. Assignment: This Agreement shall be binding upon and inure to the benefit of the parties, their
successors, representatives and assigns. CONSULTANT shall not assign this Agreement, or delegate
its duties or obligations under this Agreement, without the prior written consent of CITY, which consent
shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing,
CONSULTANT may assign this Agreement, in whole or in part, without the consent of CITY to any
corporation or entity into which or with which CONSULTANT has merged or consolidated; any parent,
subsidiary, successor or affiliated corporation of CONSULTANT; or any corporation or entity which
acquires all or substantially all of the assets of CONSULTANT. Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of the parties and their successors or assigns.
3-12. Ownership of Documents: Except for CONSULTANT's preexisting proprietary information and
processes, any and all documents, including draft documents where completed documents are
unavailable, or materials prepared or caused to be prepared by CONSULTANT pursuant to this
agreement shall be the property of the CITY at the moment of their completed preparation.
3-13. Intellectual Property Rights: The entire right, title and interest in and to CONSULTANT's database
and all copyrights, patents, trade secrets, trademarks, trade names, and all other intellectual property
rights associated with any and all ideas, concepts, techniques, inventions, processes, or works of
authorship including, but not limited to, all materials in written or other tangible form developed or created
in the course of this Agreement (collectively, the "Work Product") shall vest exclusively in CONSULTANT
or its subcontractors. The foregoing notwithstanding, in no event shall any CITY -owned data provided to
CONSULTANT be deemed included within the Work Product.
3-14. Discrimination: CONSULTANT shall not discriminate because of race, color, creed, religion, sex,
marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited
by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other
employment related activities. CONSULTANT affirms that it is an equal opportunity employer and shall
comply with all applicable federal, state and local laws and regulations.
3-15. Jurisdiction — Venue: This Agreement has been executed and delivered in the State of California
and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement
shall be determined and governed by the laws of the State of California. Both parties further agree that
Orange County, California, shall be the venue for any action or proceeding that may be brought or arise
out of, in connection with or by reason of this Agreement.
3-16. Professional Licenses: CONSULTANT shall, throughout the term of this Agreement, maintain all
necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the
services hereunder and required by the laws and regulations of the United States, the State of California,
the CITY of Santa Ana and all other governmental agencies. CONSULTANT shall notify the CITY
immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers,
and exemptions. Said inability shall be cause for termination of this Agreement.
3-17. Public Release and Statements: Neither party or its representatives or agents shall disseminate
any oral or written advertisement, endorsement or other marketing material relating to each other's
activities under this Agreement without the prior written approval of the other party. Neither party shall
make any public release or statement concerning the subject matter of this Agreement without the
express written consent and approval of the other party. No party or its agent will use the name, mark or
logo of the other party in any advertisement or printed solicitation without first having prior written approval
of the other party. The parties shall take reasonable efforts to ensure that its subcontractors shall not
disseminate any oral or written advertisement, endorsement or other marketing materials referencing or
relating to the other party without that party's prior written approval. In addition, the parties agree that
their contracts with all subcontractors will include appropriate provisions to ensure compliance with the
restrictions of this Section.
3-18. Confidentiality. If Consultant receives from the City information which due to the nature of such
information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall
not use or disclose such information except in the performance of this Agreement, and further agrees to
exercise the same degree of care it uses to protect its own information of like importance, but in no event
less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential
in includes not only written information, but also information transferred orally, visually,
electronically, or by other means. Confidential information disclosed to either party by any subsidiary
and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and
nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources;
(b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful
possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by
operation of law; or (e) is independently developed by the Consultant without reference to information
disclosed by the City.
3-19. Force Majeure: CONSULTANT shall not be in default of its obligations hereunder to the extent
that its performance is delayed or prevented by causes beyond its control, including but not limited to
acts of God, government, weather, fire, power or telecommunications failures, inability to obtain supplies,
breakdown of equipment or interruption in vendor services or communications.
3-20. Litigation Fees. If litigation arises out of this Agreement for the performance thereof, then the
court shall award costs and expenses, including reasonable attorney's fees, to the prevailing party. In
awarding attorney's fees, the court shall not be bound by any court fee schedule but shall award the full
amount of costs, expenses and attorney's fees paid or incurred in good faith.
3-21. Entire Agreement: This Agreement constitutes the entire agreement between the parties hereto
and supersedes any prior understandings or written or oral agreements between the parties respecting
the subject -matter contained herein. Said Agreement shall not be amended, altered, or changed, except
by a written amendment signed by both parties unless a Change Order Contingency is mutually agreed
to by the parties.
3-22. Change Order Contingency: From time -to -time, at CITY's option, CITY may request optional
services of CONSULTANT at mutually agreed upon scope and fees.
3-22.1 Change Order
No extra work may be undertaken unless a written "Change Order" is first given by the
7
Contract Officer or his/her designee, to CONSULTANT, incorporating therein any material
change in the scope, fees and/or administration of this Agreement proposed by CITY.
3-22.2 Additional Work Or Services
(a) Extra Work or Services
CITY shall have the right at any time during the performance of the work or services
set forth in this Agreement, without invalidating said Agreement or any amendments thereto, to
elect to exercise any existing option specified in the Scope of Services for extra work or services
or to order extra work or services pursuant to a duly executed Change Order or to expend
previously appropriated but unspent contingency funds authorized to be carried forward by the
Executive Director of Finance and Management Services to cover expenses for work or services
agreed to by the parties but exceeding any annual CITY fiscal year compensation amount
cap initially specified under the Compensation provisions of this Agreement or thereby make
changes by altering, adding to or deducting from said work or services.
(b) Maximum Contract Compensation Cap
Net total compensation to CONSULTANT shall not, as the result of any Change Order,
exceed the maximum contract compensation amount set forth under Section 2-2 of this
Agreement, unless an increase in maximum contract compensation shall be agreed to by the
parties pursuant to duly executed amendment of this Agreement.
3-22.3 Coordination of Work or Services
(a) Representative of CONSULTANT
The following officer of CONSULTANT is hereby designated as being the representative
of CONSULTANT authorized to act in its behalf with respect to the work specified herein and
make all decisions in connection therewith:
Avenu Insights and Analytics, LLC Jonathan Gerth
Officer & Representative Vice President, Tax and Audit
It is expressly understood that the experience, knowledge, capability and reputation of the
foregoing officer & representative is a substantial inducement for CITY to enter into this
Agreement. Therefore, the foregoing officer & representative shall be responsible during the term
of this Agreement for directing all activities of CONSULTANT and devoting sufficient time to
personally supervise the services hereunder. For purposes of this Agreement, the foregoing
officer & representative may not be replaced nor may their responsibilities be substantially
reduced by CONSULTANT without the express written approval of CITY.
3-22.4 Contract Officer
The Contract Officer shall be the person designated hereunder by CITY. It shall be
CONSULTANT's responsibility to assure that CITY's Contract Officer is kept informed of the
progress of the performance of the consulting services set forth in this Agreement and
CONSULTANT shall refer any decisions which must be made by CITY to the Contract Officer.
The Contract Officer shall have authority to enter into Change Orders with CONSULTANT
pursuant to this Agreement. The Contract Officer shall have authority to sign all documents on
behalf of CITY required hereunder to carry out the terms of this Agreement. Unless otherwise
specified herein, any approval of CITY required hereunder shall mean the approval of the Contract
Officer.
City of SANTA ANA Kristine Ridge, City Manager
Contract Officer or designee
3-23. Invalidity: If any one or more of the provisions contained in this Agreement shall for any reason
be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision thereof, and this Agreement shall be construed as if such invalid,
illegal, or unenforceable provision had never been contained herein.
3-24. Implementation: Implementation of services should begin as soon as possible from the Effective
Date for the performance of services under the terms of this Agreement.
3-25. Counterpart Signature and Delivery.- This Agreement must be signed below and may be signed
in separate counterparts including facsimile copies and delivered by fax, email as a PDF (Portable
Document Format) file attachment, or by other means that displays the original or a copy of the
signatures. Each counterpart (including facsimile copies) is deemed an original and all counterparts are
deemed on and the same instrument and legally binding on the parties. Any subsequent amendments
to this Agreement may be signed and delivered in the same manner.
3-26. Miscellaneous Provisions:
a. CONSULTANT shall perform all services with the necessary knowledge and skills required to
perform the tasks. CONSULTANT or personnel of CONSULTANT engaged in the
performance of such services shall not represent themselves to be, nor shall they be deemed
to be, employees of CITY for any purpose whatsoever.
CITY agrees that its employees will cooperate with and assist representatives of
CONSULTANT in every reasonable way to enable CONSULTANT to secure all information
and data required to perform the services herein provided for. CONSULTANT shall have no
liability for defects in the services attributable to CONSULTANT's reliance upon or use of data,
design criteria, drawings, specifications, or other information furnished by CITY or third parties
retained by CITY.
b. Each undersigned represents and warrants that its signature hereinbelow has the power,
authority and right to bind their respective parties to each of the terms of this Agreement, and
shall indemnify CITY fully, including reasonable costs and attorney's fees, for any injuries or
damages to CITY in the event that such authority or power is not, in fact, held by the signatory
or is withdrawn.
c. CONSULTANT agrees any alterations, variations, modifications, or waivers of the provisions
of the Agreement, shall be valid only when reduced to writing, executed and attached to the
original Agreement and approved by the required signatories.
d. If any legal action is instituted to enforce any party's rights hereunder, each party shall
bear its own costs and attorneys' fees, regardless of who is the prevailing party,
e. All exhibits referenced herein and attached hereto shall be incorporated as if fully set
forth in the body of this Agreement.
f. In the event of any conflict between the provisions of this Agreement and those set
forth in any Exhibit referenced and incorporated herein, the provisions of the
Consultant Services Agreement shall prevail.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
Daisy Gomez
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
CITY Attorney
By: 7)t" -f,--L
Joh M.Funk
Sr. Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Kathryn Downs, Executive Director
Finance & Management Services Agency
City of Santa Ana
10
CITY OF SANTA ANA
Kristen Ridge
City Manager
CONSULTANT
Mike Melka
Chief Financial Officer
Avenu Insights and Analytics, LLC
EXHIBIT A
City of Santa Ana
Finance & Management Services Agency
Treasury & Customer Services Division
REQUEST FOR PROPOSALS
RFP #20-137
Utility Users' Tax Revenue Auditing,
Recovery, Reporting, Analysis, and
Legislative/State Agency Liaison and
Implementation Monitoring Services
Issued: October 26, 2020
Due Date: November 30, 2020 at 4:00 PM (PST)
Submit to: City of Santa Ana Finance & Management
Services Agency
RFP # 20-137
20 Civic Center Plaza, 15t Floor
Santa Ana, CA 92701
Attn: Management Analyst, Alex Gutierrez
Project Coordinators:
Willard V. Holt, Treasury & Customer Services Manager
Waldo Barela, Budget Supervisor
TABLE OF CONTENTS
SECTION PAGE
I. Introduction...........................................................................................1
A. Purpose...............................................................................................1
B. Deadline..............................................................................................1
C. Background..........................................................................................1
II. Selection Process......................................................................................1
A. Selection Process..................................................................................1-2
B. Selection Schedule................................................................................ 2-3
111. Scope of Services and Term of Contract................................................................ 3
A. Sources of Revenue............................................................................... 3
B. Related Services................................................................................... 3
C. Utility Users' Tax Additional Requirements.............................................4-5
1. General Strategy................................................................................. 4
2. Objectives & Methodology.....................................................................
3. Utility Users' Tax Reporting Services..........................................................4
4. Special UUT Audits ...............................................................................................5
5. Ancillary UUT Services...........................................................................5
D.Term of Contract .................................................... ............................... .6
IV.
Cost/Bid Proposal Form...........................................................................6
V.
Proposal Submittal Requirements.........................................................................6-7
VI.
Procedure for Submitting Project Proposals ............................................
.7-8
V11.
Insurance Requirements & W-9 Requirements.........................................8
V111.
Addenda & Understanding the Proposal ..................................................
.8-9
IX.
Proposal Format Guidelines................................................................................9
X.
Communication/Contact with City Staff...........................................................9
XI.
Contract Administration......................................................................................9-10
XI1.
Contract Modifications & Amendments............................................................10
XI11.
Consultant/Vendor Selection & Award.............................................................10
A. Request for Council Action......................................................................10
B. Execution of Agreement..........................................................................10
XIV.
General Terms & Conditions....................................................... I ...........
10-15
XV.
Miscellaneous.........................................................................................15
ATTACHMENTS
Attachment 1 PROPOSER'S COVER SHEET............................................................ 16
Attachment 2 PROPOSER'S STATEMENT............................................................... 17
Attachment 3 COMPANY INFORMATION................................................................ 18
Attachment 4 SUMMARY SHEET........................................................................... 19
Attachment S CLIENT REFERENCE FORM.............................................................. 20
Attachment 6 COST/BID PROPOSAL FORM............................................................ 21-25
Attachment 7 PROPOSER'S CERTIFICATION FORM ................................................. 26
Attachment 8 NON -COLLUSION AFFIDAVIT...............................................................................27
Attachment 9 NON -LOBBYING CERTIFICATION........................................................................28
Attachment 10 NONDISCRIMINATION CERIFICATION........................................... 29-30
Attachment 11 SAMPLE PROFESSIONAL SERVICE AGREEMENT ................................ 31-40
Attachment 12 PROPOSAL EVALUATIONS............................................................. 41
Attachment 13 PROPOSAL RATING FORM.............................................................42
Attachment 14 DATA REQUIRED ........................... ................................................ 43-44
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 3
REQUEST FOR PROPOSALS
Professional Consultant Services
For
Utility Users' Tax - Electric, Gas, & Telecommunications Tax Revenue
Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
1. INTRODUCTION
A. Purpose. The City of Santa Ana's Finance & Management Services Agency, Treasury &
Customer Service Division is soliciting responses from qualified firms with extensive
experience in revenue auditing, recovery, reporting and analyses services. The goal of the
professional consultant services is to: (1) assist in collecting additional general tax revenues
due to the City, as determined from auditing, recovery, reporting and associated compliance
activities to include the following Utility Users' Tax ("UUT") categories: Electric, Gas, &
Telecommunications; (2) assist in development of UUT revenue forecast models for Electric,
Gas, & Telecommunications UUT; (3) provide legislative and state agency liaison and
implementation monitoring including coordination with City's state and federal lobbyists in
connection with legislation/regulation relating to City's UUT (all categories - Electric, Gas,
Telecommunications & Water, including aggregators, plus California Department of Tax and
Fee Administration ("CDTFA") collected pre -paid telecommunications UUT). Please structure
your proposal to include Section III, Scope of Services subsections A through C and
Term of Contract, subsection D and one or more of the response items numbered (1)
through (3) above. Please be specific in your proposal as to which response item(s) the
proposal is addressing.
(Note: Attachment b - Cost/BID Proposal Form must be completed and submitted as
part of your proposal response, additional explanatory pages may be appended as
needed but may not replace form. All proposals must be submitted in accordance
with the format and information listed in Section V, Proposal Submittal Requirements.)
B. Deadline. Proposals are to be received by 4:00 p.m. (PST) on November 30, 2020 as
described in Section V, Proposal Submittal Requirements of this Request for Proposals
(RFP).
C. Background. The Finance & Management Services Agency, Treasury & Customer Services
Division is responsible for overseeing and providing revenue collection for a variety of City
revenues, including but not limited to taxes, charges, fees, fines, deposits and
reimbursements. In support of this mission, the Division uses external professional
consultants/vendors to ensure that the City recovers all revenues that are due, including but
not limited to: utility users' taxes, sales, transaction & use taxes' property taxes' hotel
visitors' taxes' business license taxes, medical marijuana and commercial cannabis taxes.
11. SELECTION PROCESS
A. Selection Process. After the submittal deadline has passed, a selection committee
comprised of staff from pertinent City agencies/departments will review each proposal
received and make a selection.
A selection may be made based solely on review of the proposals and references.
Interviews may or may not be conducted with the top ranked firms and considered in the
selection. The City will enter into a Professional Services Agreement (Attachment 11) with
the top ranked firm(s) after City Council authorization. The City will enter into an
City of Santa Ana -- Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 1
agreement with the qualified professional consultant for the source of revenue listed in
Section III [Scope of Services Term of Contract] below, and for the different response
items numbered (1) through (3) as described in Section 1 [Introduction], subsection A
[Purpose], above. (Attachments 1 through 10 must be submitted by each firm proposing
in combination); all subsidiary entities and subcontractors must be identified.
The proposals will be evaluated and ranked based upon the criteria provided in Attachment
13 - Proposal Rating Form which includes: (1) Qualffications - expertise and knowledge
of the Professional Consultant/Vendor in the field of UUT, (2) Experience - Professional
Consultant/Vendor's experience in revenue auditing, revenue recovery, revenue reporting,
revenue analyses, knowledge of municipal revenue operations generally, in the area of UUT,
especially with regards to electric, gas, and telecommunications (3) Client References; (4)
Proposed Scope of Services ,and Term of Contract - proposal quality and completeness,
interview and demonstrations) (as applicable); and (5) Cost of Providing Services.
Interview evaluation factors, if held, will include an overall demonstration of the Professional
Consultant/Vendor's ability to provide revenue recovery, revenue reporting, revenue
analyses and legislative & state agency liaison and implementation monitoring services.
The criteria for evaluating the proposals submitted will take the following items into
consideration:
• Professional Consultant/Contractor Qualifications 20%
• Professional Consultant/Contractor Experience 20%
• Client References 15%
• Proposed Scope of Services 30%
• Cost of Providing Service 15%
A final score will be calculated for each submitted proposal and used to rank the Proposers.
The City shall not be obligated to accept the lowest priced proposal, but will make an award
in the best interests of the City of Santa Ana after all factors have been evaluated.
The issuance of this RFP shall not be interpreted as, and does not constitute, a
representation by the City that any specific firm or firms will be retained to perform any of
the services described herein, and a firm shall not acquire any right or entitlement to be
retained for such purpose by virtue of submitting a proposal in response to this RFP. The
City reserves the right to issue additional RFP(s) for the performance of these services
during the service period specified below. The City may select qualified firms that submit
proposals in response to this RFP, and/or any subsequent RFP, to perform all, some or any
of the professional services required by the City. The City also reserves the option to cancel
or modify this RFP and the selection process at any time.
B. Selection Schedule.
Note: This schedule is subject to change
Activity
Estimated Date
RFP Issue Date
October 26, 2020
Deadline for Receipt of Written Questions
November 3, 2020 @ Time 5:00 p.m. (PST)
Pre -Proposal Teleconference (Possible)
November 9, 2020 (Time/Place TBD)
RFP Addenda to be Issued Addressing Questions
November 12, 2020
RFP Submissions Due
November 30, 2020 - 4:00 p.m. (PST)
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 2
Interviews (Demonstrations if desired by City) and
Evaluations
Week of December 1st, 2020 - If possible and if
panel has reviewed proposals
Present Recommended Proposal to City Council
On or about January 19, 2021
Begin New Contract
February 1, 2021
SCOPE OF SERVICES AND TERM OF CONTRACT
A. Source of Revenue
Utility Users' Tax ("UUT") - Rate 5.50% - UUT Service Provider Categories: Electric, Gas,
& Telecommunications Service Providers (to include electric and gas aggregators, and
California Department of Tax and Fee Administration (°CDTFA") collected pre -paid
telecommunications UUT)
Goal of professional consultant services provider: (1) assist in collecting additional
general tax revenues due to the City, as determined from auditing, recovery, reporting
and associated compliance activities to include the following UUT categories: Electric,
Gas, & Telecommunications; (2) assist in development of UUT revenue forecast models
for Electric, Gas, & Telecommunications UUT; (3) provide legislative and state agency
liaison and implementation monitoring including coordination with City's state and
federal lobbyists in connection with legislation/regulation relating to City's UUT (all
categories - Electric, Gas, Telecommunications & Water, including aggregators, plus
CDTFA collected pre -paid telecommunications UUT).
B. Related Services
Related to the above audit services, the Professional Consultant/Vendor would:
• Represent the City for purposes of examining records related to the above revenue
sources to identify and confirm any errors/omissions leading to deficient payments to
the City.
• For each error/omission identified and confirmed, prepare the appropriate
documentation to facilitate recovery of revenue due to the City including any applicable
penalties and interest.
• Prepare and forward to the appropriate parties requests for corrective action and
revenue recovery.
• Meet with designated City officials as necessary (but not less than quarterly) to review
consultant's findings and recommendations.
• Provide any additional assistance as necessary to support the City in recovering and
preventing tax delinquencies.
• Utility Users' Tax: Prepare annual UUT report that includes legal and legislative issues
that could potentially affect UUT revenues and a five year forecast or each utility
industry type; assist in development of multi -year UUT budget revenue forecast model.
• Legislative/State Agency Liaison and Implementation Monitoring: Provide federal, state,
and local legislative and state agency liaison and program implementation monitoring
(including coordination with City's state and federal lobbyists in connection with
legislation/regulation relating to City's UUT.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysts, and LegislativelState Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 3
C. Utility Users' Tax — Additional Requirements
1. General Strategy
a. Describe the general strategy for UUT and economic analysis.
b. Define the role of City staff and City records as it relates to your efforts.
c. Identify what sources of information will be needed and the means with which they
will be acquired.
2. Objectives and Methodology
a. Identify the specific procedures you will use to detect, correct, and recover
misallocated UUT for the City,
b. Detect, document, and correct UUT tax reports errors and omissions in order to
generate new, previously unrealized revenue for the City.
c, Determine if UUT service providers had prior knowledge of the error(s), which could
entitle the City to collect revenue from additional reporting periods.
d. Track and report on all misallocations that have been corrected as a result of the
Consultant's efforts and remitted to the City by Utility Users' Tax service providers.
f. Monitor and analyze the City's monthly UUT reporting and collection reports with
focus on major accounts 90% or more of the City's total service providers (electric,
gas, & telecommunications) to Identify any irregularities or unusual deviations from
the normal pattern, and ensure that the City is not receiving less revenue than it is
entitled to receive.
g. Assist the City with strategies to preserve and enhance UUT generated by the
existing service providers operating within the City of Santa Ana.
3. Utility Users' Tax Reporting Services
The successful Proposer shall:
a. Generate reports to identify service provider errors and omissions and analyze City
Utility Users' Tax rate. Provide printouts, graphs, and comparative data on a
quarterly basis.
b. Provide written quarterly UUT reports and attend quarterly meetings with the City to
discuss activity in the reports. The reports will include the following:
I. Quarterly reporting_ Prepare a quarterly report on the City's UUT revenues
and service providers generating these revenues. The report should identify
and analyze revenue performance, trends, gains, declines, projections, and
pertinent issues. The report should capture UUT performance Citywide, by
service provider (Including aggregators), and by utility type (electric, gas, and
telecommunications to include pre -paid UUT collected and reported by
telecommunications service providers as well as pre -paid UUT paid to retailers
and collected by CDTFA). quarterly report data should also be made
available in Word formatted documents and PDFs with graphs and charts
available in Excel format and tables available in Excel or Access data table
format, allowing for easy query of the data by authorized City staff. The
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Requostfor Proposals No. 20-137
October 26, 2020 Page 4
consultant should also be available to City staff to answer periodic questions
regarding UUT issues and performance.
Contingency option. Provide electronic reporting research database
application for City UUT client server or web -based portal a lication . The
application should allow authorized City staff to search query, filter sort and
export-UUT reporting and payment data in common data formats; e.g.
Access Excel etc. for staff presentation and analysis based on service
provider and utility type.
4. Specialty UUT Audits
Successful proposer will provide strategy, mechanism, and audit cost
formulas for comprehensive audits of principal electric and gas utility
providers together with large-scale utility service aggregators. Audits may
include corresponding franchise fees where advisable.
• Specialty audits shall be proposed as contractually severable
"contingency options" which the City in its sole discretion may elect.
Specialty audit terms must address the effect on costs of multiple
contracted local jurisdictions electing to participate in said audit(s)
concurrently or after the fact.
The specific terms of specialty audits, when not fully detailed in the
original agreement between the parties or under the terms of a
subsequent amendment to said agreement, will be set out through a
mutually agreed to change order process.
Successful proposer will provide contingency options for similar audits of
principal telecommunications providers.
5. Ancillary UUT Services
Provide quarterly information regarding federal and state legislative issues,
including an analysis of their potential impact on the City.
Comparisons to other local, county, and state jurisdictions as applicable.
Provide other ad hoc reports identifying other pertinent issues as mutually
agreed upon.
iv. Assist in development of UUT budget revenue forecast model.
iv. Provide a reconciliation of UUT by utility type (electric, gas, and
telecommunications, to include pre -paid UUT collected and reported by
telecommunications service providers as well as pre -paid UUT paid to retailers
and collected by CDTF'A), which will be used to project annual UUT figures for
the City's use in revenue forecasting.
City of Santa Ana - Revenue Auditing, Recovery, Reporting, Analysis, and L.eglslative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 5
D. Term of Contract
The services described herein shall be provided for a three (3) year period, from February 1,
2021 to January 31, 2024, with an option exercisable by the City for two (2) one (1) year
extensions unless either party provides written notice of its intention not to renew ninety
(90) days prior to the end of the then current term. All terms and conditions of the
Agreement shall remain effective during any additional renewal term.
IV. COST/BID PROPOSAL FORM
Proposers should provide a cost breakdown for the proposed source of revenue bid
under Section III [Scope of Services - Term of Contract], subsection A [Source of
Revenue] and for each desired response item bid - numbered (1) through (3) - as
described in Section I [Introduction], subsection A [Purpose] and also in the
format as shown in Attachment 6 COST/BID PROPOSAL FORM,
• COST/BID PROPOSAL FORM sections relating to:
o Section III, C-3, b-ii. Contingency option; and
o Section III, C-4, i. Specialty UUT Audits
V. PROPOSAL SUBMITTAL REQUIREMENTS
Firms interested in responding are required to submit both a complete proposal electronically to
the City's online proposal management and publication system called PlanetBids, and also
submit a signed original proposal, plus five (5) additional printed copies (all bound), and one
(1) electronic copy on a flash drive must be delivered to Santa Ana City Hall no later than 4:00
p.m. (PST) on NOVEMBER 30, 2020. Proposals will not be accepted after this deadline.
Faxed or e-mailed Proposals will not be accepted. The City will only receive and consider those
proposals that were electronically transmitted via soft upload to PlanetBids successfully by the
submittal deadline.
• Six (6) bound copies of the submittal
Flash Drive with Word -formatted documents and PDFs - must contain the following:
n Scope of Services (Section III)
o Proposer's Cover Sheet (Attachment 1)
o Proposer's Statement (Attachment 2)
o Company Information Form (Attachment 3)
o Summary Sheet (Attachment 4)
o Five (5) Client Reference Forms (Attachments 5)
o Cost/Bid Proposal Form(s) (Attachment 6)
o Proposer's Certification Form (Attachment 7)
o Non -Collusion Affidavit (Attachment 8)
o Non -Lobbying Certification (Attachment 9)
o Non -Discrimination Certification (Attachment 10)
City of Santa Ana -- Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 6
PlanetBids: Proposal Document - Soft copy uploaded to PlanetBids by NOVEMBER 30, 2020
at 4:00 p.m. (PST).
Mail/Delivery to City Hall: A signed original proposal, plus five (5) additional printed copies
(all bound), and one (1) electronic copy on a flash drive must be delivered to Santa Ana City
Hall by November 30, 2020 at 4,00 p.m. (PST).
City of Santa Ana
Finance & Management Services Agency
Treasury & Customer Service
20 Civic Center, is` Floor
Santa Ana, CA 92701
Attn: Alex Gutierrez, Management Analyst
Phone:(714) 647-5497
RE: Utility User Tax - Electric, Gas, & Telecommunications Revenue Auditing, Recovery, Reporting, Analysis, and
Legislative/State Agency Liaison and Implementation Monitoring Services
RFP No. 20-137
Note: If your proposal is mailed, email the delivery tracking number to agutierrez@santa-
ana..org. This will provide proof of delivery by the submittal deadline.
VI. PROCEDURE FOR SUBMITTING PROJECT PROPOSALS
Responses to the Request for Proposals will be accepted via soft upload to PlanetBids until
NOVEMBER 30, 2020 at 4:00 p.m. Oral presentations interviews / demonstrations are
scheduled as required. The City intends to award a three O year agreement (with two (2) one
1 year options to renew) to the bidder(s) selected as the most responsible and whose
response adheres to the RFP and meets the City's requirements by DECEMBER 7, 2020*.
* The City expects, but does not guarantee, that the decision on selection of a firm will be made by the City on the date
indicated above.
It is the responsibility of the Proposer to ensure that any proposals submitted have been
uploaded to PlanetBids prior to this proposal due date and time. Proposals, including all
required sections and forms, shall be submitted electronically via the City's Bid Management
System, PlanetBids.
PlanetBids will not accept late bids and no exceptions shall be made. Proposers will receive an
e-bid confirmation number with a time stamp from PlanetBids indicating that their proposal was
submitted successfully. The City will only receive and consider those proposals that were
transmitted successfully. Submit proposal online at:
htt www. ianetbids.com ortal ortal.cfm?Com an ID=20137.
Proposer shall be solely responsible for informing itself with respect to the proper utilization of
the bid management system, for ensuring the capability of their computer system to upload the
required documents, and for the stability of their internet service. Failure of the Proposer to
successfully submit an electronic proposal shall be at the Proposer's sole risk and no relief will
be given for late and/or improperly submitted proposals. Proposers experiencing any technical
difficulties with the bid submission process may contact PlanetBids at (818) 992-1771.
Questions of an operational nature may be directed to the City's assigned Project Manager.
Neither the City, nor PlanetBids, makes any guarantee as to the timely availability of
assistance, or assurance that any given problem will be resolved by the bid submission
deadline.
A signed original proposal, plus five (5) hard copies (bound), and one (1) electronic copy on a
flash drive must be delivered to the City of Santa Ana no later than the due date and time.
City of Santa Ana - Revenue Auditing, Recovery, Reporting, Analysis, acid Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 7
Proposals must be date and time stamped by the City of Santa Ana on time by the 4:00 P.M.
(PST) Submission Due Date in order to be considered.
Proposals shall NOT be emailed or sent via telegraphic, electronic or facsimile means.
All notifications, updates and addenda will be posted on the City's current RFP Bid webpage at
htto://www.planetbids.com/portal/por-tal.cfm?CompanylD=20137. Proposers shall be
responsible for monitoring the site to obtain information regarding this solicitation. Failure to
respond to required updates may result in a determination of a nonresponsive proposal.
It is the responsibility of the Proposer to ensure that any proposals submitted shall have
sufficient time to be received by the City of Santa Ana prior to the proposal due date and time.
ONLY SEALED RFP RESPONSES ARE ACCEPTABLE
Professional Consultants/Vendors electing to submit a response to this RFP must prepare and
submit an exhaustive response to all requested information. By submitting a proposal, the
Professional Consultant/Vendor understands and agrees that the City of Santa Ana has the right
to withhold all information regarding this procurement, including but not limited to:
(1) the number of proposals received,
(2) competitive technical information,
(3) competing price information; and
(4) City of Santa Ana evaluation concerns regarding competing proposals, until after the
agreement is awarded.
Upon receipt of offerings by the City of Santa Ana, each responding Professional
Consultant/Vendor shall be presumed to be thoroughly familiar with all requirements of this
offering. The failure or omission to examine any form, instrument or document shall in no way
relieve professional consultants/vendors from any obligation with respect to its offering.
VI1. INSURANCE REQUIREMENTS & W-9 REQUIREMENTS
Upon recommendation of contract award, Contractor will be required to submit the following
documents with ten (10) days of City notification, unless otherwise specified in the solicitation:
Insurance - City requires that licensees, lessees, and vendors have an approved
Certificate of Insurance (not a declaration or policy) or proof of legal self-
insurance on file with the City for the issuance of a permit or contract.
W-9 - Current signed form W-9 (Taxpayer Identification Number & Certification) which
includes Contractor's legal business name(s).
Vill. ADDENDA & UNDERSTANDING THE PROPOSAL
Questions regarding this RFP shall be submitted via PlanetBids, by 5:00 P.M. (PST) on
NOVEMBER 3, 2020. Responses to all questions will be posted on PlanetBids, no later than
the date and time shown at the schedule of key RFP dates above. All prospective Proposers are
advised to visit PlanetBids on a regular basis as the responses may be posted earlier than the
date above.
It is the responsibility of each Proposer to inquire about any criteria, condition, term, provision,
or requirement of the RFP that the Proposer does not understand. Responses to inquiries, if
they significantly change or clarify the RFP requirements or any aspect of the procurement
process, will be forwarded by addenda to all Proposers. The City will not be bound by any oral
responses to inquiries. By submitting bid proposals, Proposers assert that they have fully read
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 8
the RFP and any addenda issued by the City, the proposed Contract and any other Contract
Documents, and affirm that the terms and conditions stated therein are fully understood and
are acceptable to the Proposer. Each Proposer accepts the terms and conditions of the Contract
Documents and indicates their ability and willingness to perform the requested services under
such terms and conditions. Any exceptions to the terms and conditions set forth in the
Contract Document should be clearly noticed in each Proposer's proposal.
Please direct all questions regarding the procurement process to:
City of Santa Ana
Finance & Management Services — Purchasing
Eva Pierce, Buyer
Email: epJerce(@santa-ana.orq
Phone: (714) 647-6584
The City of Santa Ana reserves the right to cancel, postpone, extend or revise this RFP or the
RFP process at any time. If it becomes necessary to revise any part of this RFP, an Addendum
to the RFP will be provided on the City's PlanetBids) system:
http://www.olanetbids.com/portal/portal.cfm?Comp_anyID=20137.
IX. PROPOSAL FORMAT GUIDELINES
Interested firms are to provide the City a thorough Proposal using the following guidelines:
Proposal should be typed using a 12-point font size, and should contain no more than 100
typed pages (include all the items in Section V - [PROPOSAL SUBMITTAL
REQUIREMENTS], Index/Table of Contents, dividers, tables, charts, graphic exhibits, and
costs proposal). Each Proposal will adhere to the following order and content of sections:
proposal should be straightforward, concise and provide "layman" explanations of technical
terms that are used; emphasis should be concentrated on conforming to the RFP instructions,
responding to the RFP requirements, and on providing a complete and clear description of the
offer. Proposals, which appear unrealistic in terms of technical commitments, lack of technical
competence or are indicative of failure to comprehend the complexity and risk of this contract
may be rejected.
Colored displays, promotional materials, etc., are not necessary or desired. Emphasis should
be concentrated on conformance to the RFP instructions, responsiveness to the RFP
requirements, and on completeness and clarity of content. Dividers and clear organization of
content and material are encouraged.
X. COMMUNICATION/CONTACT WITH CITY STAFF:
Unless otherwise authorized herein, Proposers who are considering submitting a proposal in
response to this RFP, or who submit a proposal in response to this RFP, are only to
communicate with the assigned City Buyer, and no other City staff about this RFP from the date
this RFP is issued until a proposal is submitted. The assigned City Buyer will provide all official
communication concerning this RFP in writing via the City's Bid Management System,
PlanetBids.
General questions regarding this RFP may be directed to the following designated City
personnel via the City's assigned Buyer utilizing the City's PlanetBids system.
X1. CONTRACT ADMINISTRATION
The Executive Director of Finance & Management Services of the City of Santa Ana, or his or
her designee, shall be the authorized representative in all matters pertaining to the RFP
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26. 2020 Page 9
process. The contract awarded pursuant to this RFP for the provision of revenue auditing,
recovery, reporting, analysis, and legislative/State agency liaison, and implementation -
monitoring services shall be administered by the Executive Director of Finance & Management
Services of the City, or his or her designee.
XI1. CONTRACT MODIFICATION AND AMENDMENTS
Once a contract has been awarded and executed, the parties may adjust the specific terms and
the Contract Documents from time -to -time where circumstances beyond the control of either
party require modification or amendment. Any modification or amendment proposed by the
Consultant/Vendor must be submitted In writing to the City. Any agreed modifications and/or
amendments must be done in writing, approved by all parties.
XI11. CONSULTANT/VENDOR SELECTION AND AWARD
The award of contract under this RFP will be made by the City of Santa Ana, All Proposers will
be notified in writing at the conclusion of the procurement process as to the results of the bid
proposal evaluation process and the final award recommendation. Proposers will receive mailed
award/non-award notifications, which will include the name of the Proposer awarded the
contract.
A. Request_for Council Action:
Following evaluation and rating by the proposal review committee, the Executive
Director will recommend award of an agreement to the Proposer providing the best
quality and value to the City. Any contract resulting from this RFP shall not be
effective unless and until approved by the City Council/City Manager, as applicable.
R. Execution of Agreement:
A sample standard agreement is included as Attachment 11: Professional Service
Agreement in this RFP, but may be modified to suit the specific services and needs of
the City. "Proposer" will hereinafter be referred to as "Consultant" in the standard
agreement. The term of the agreement will begin after the agreement is fully
executed, and all required bonds, insurance documents and contents of the payment
information packet have been received and approved. If the Proposer has any
exceptions or conditions to the Agreement, these must be submitted for
consideration with the Proposal. Otherwise, the Proposer will be deemed to
have accepted the form of Agreement.
XIV. GENERAL TERMS & CONDITIONS
By submitting a Proposal, the Proposer acknowledges that it has thoroughly examined and
accepts the Terms and Conditions of this RFP as described below:
Conflict of Interest
Consultant/Vendor shall exercise reasonable care and diligence to prevent any actions or
conditions that could result in a conflict with the best interests of the City. This obligation shall
apply to the Consultant/Vendor; the Consultant/Vendor's employees, agents, and
Subcontractors associated with accomplishing work and services hereunder. The
Consultant/Vendor's efforts shall include, but not be limited to, establishing precautions to
prevent its employees, agents, and Subcontractors from providing or offering gifts,
entertainment, payments, loans or other considerations which could be deemed to influence or
appear to influence City staff or elected officers from acting in the best Interests of the City.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 10
Each Proposer must disclose any existing or potential conflict of interest relative to the
performance of the contractual services resulting from this RFP. Any such relationship that
might be perceived or represented as a conflict should be disclosed. The City reserves the right
to disqualify any Proposer on the grounds of actual or apparent conflict of interest.
No person, firm, or subsidiary thereof who has been awarded this Contract may be awarded a
Contract for the provision of services, the delivery of supplies, or the provision of any other
related action, which is required, suggested, or otherwise deemed appropriate as an end
product of this Contract. Therefore, Consultant/Vendor is precluded from contracting for any
work recommended as a result of this Contract. This RFP does not commit the City to award a
contract or to pay any costs incurred for any services. The City, at its sole discretion, reserves
the right to accept or reject any or all Proposals received as a result of this RFP, to negotiate
with any qualified source(s), or to cancel this RFP in part or in its entirety. The City may waive
any irregularity in any Proposal. All Proposals will become the property of the City of Santa
Ana. If any proprietary information is contained in the Proposal, it should be clearly identified.
Modifications to the RFP
1. Changes to this RFP shall be made only by formal written amendment(s) issued by the City
of Santa Ana which shall be labeled "Addenda" and which shall be numbered sequentially
and dated.
2, Any and all addenda issued by the City shall be considered a part of the specifications
submitted to the Professional Consultant/Vendors for preparation of their proposals and
should be addressed by the Professional Consultant/Vendor in its response.
Cost of Pre aration of Offering
Pre -Contractual Expenses: The City is not liable for any costs incurred by Proposers prior to
entering into a formal contract. Costs for developing a response to this RFP are entirely the
responsibility of the Proposer, and shall not be reimbursed in any manner by the City. Pre -
contractual expenses are not to be included in the cost proposal. Pre -contractual expenses include,
but are not limited to, preparation of the proposal, submission of the proposal and additional
information, attendance at pre -proposal conference, negotiating any matter related to this RFP with
City, and/or any other expenses incurred by the Proposer prior to the date of award and execution,
if any, of the contract.
other Expenses: The Consultant/Vendor will be responsible for all costs related to photo copying,
telephone communications, fax communications, and parking while on City sites during the
performance of work and services under this Contract.
Confidentiality of Documents
All documents submitted as part of the Professional Consultant/Vendor's offering will be deemed
confidential during the evaluation process. Professional Consultant/Vendor offerings will not be
available for review by anyone other than the assigned evaluators. Subsequent to the awarding of
the agreement, all offerings become public documents and are available for public viewing upon
written request.
Independent Contractor
Consultant/Vendor is considered an independent Contractor and neither Contractor or its
employees, nor anyone working under Contractor will be considered an agent or an employee of
the City. Neither Contractor, its employees, nor anyone working under Contractor, will qualify for
Workers` Compensation or other fringe benefits of any kind through the City.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and LeglslativelState Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 11
Notification of Withdrawal of Proposal
Proposals may be modified or withdrawn prior to the date and time specified for proposal
submission by an authorized representative of the Professional Consultant/Vendor by formal
written notice. Proposals submitted will become the property of the City after the proposal
submission deadline.
Contractual Obli_ ations
The City of Santa Ana will require certain contractual obligations, regardless of any agreements
between the Professional Consultant/Vendor and the City of Santa Ana. These terms will include,
but are not limited to:
1. Requirements to Meet All Provisions - Each individual or firm submitting an offer shall
meet all the terms and conditions of the RFP. By virtue of its offering submittal, the
Professional Consultant/Vendor acknowledges agreement with and acceptance of all
provisions of the RFP specifications.
2. Inclusion of Offering - The offering submitted in response to this RFP will be required
to be included as part of the final agreement with the selected Professional
Consultant/Vendor.
3. Accountability - The selected Professional Consultant/Vendor will be required to
provide status meetings and submit status reports covering such items as progress
of work being performed, milestones attained, resources expended, problems
encountered and corrective action taken.
4. Costs - All costs must be detailed specifically in the project cost planning section of
the offering; no additional charges (i.e., for transportation, out-of-pocket expenses,
etc.) will be allowed unless so specified in the offering.
5. Ability to Perform - The selected Professional Consultant/Vendor warrants that it
possesses, or has arranged through subcontractors, all capital and other equipment,
labor, materials, and licenses necessary to carry out and complete the work
hereunder in compliance with any and all federal, state, county, City, and special
district laws, ordinances, and regulations.
6. Laws to be Observed - The selected Professional Consultant/Vendor shall keep itself
fully informed of and shall observe and comply with all applicable state and federal
laws and City of Santa Ana ordinances, regulations, and adopted codes during its
performance of the work.
7. Payment of Taxes - The offering costs shall include full compensation for all taxes
that the selected Professional Consultant/Vendor is required to pay, Including C�
business license taxes.
S. Permits and Licenses - The selected Professional Consultant/Vendor shall procure all
permits and licenses, pay all charges, fees, and taxes, and give all necessary notices.
9. Selection - The final award of an agreement or agreements is subject to approval by
the elected officials governing the awarding body.
10. Subcontractors - The City reserves the right to reject, replace, and approve any and
all subcontractors. All subcontractors shall be identified in the response to the RFP
and the City reserves the right to reject any subcontractor(s). If the City approves,
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 12
the primary Professional Consultant/Vendor will be responsible for subcontractors
and the City shall assume no liability of such subcontractors.
11, Rules for Proposals - The signer of the RFP must declare in writing that the only
person, persons, company, or parties interested in the proposal as principals are
named therein; the signer must also declare in writing that the proposal is made
without colluding with any other person, persons, company, or parties submitting a
proposal; lastly, the signer must declare in writing that it is in all respects fair and in
good faith without collusion or fraud, and that the signer of the proposal has full
authority to bind the proposer.
12. Payment Schedules - The City of Santa Ana and the selected Professional
Consultant/Vendor's) will negotiate the payment schedule(s) based on defined and
measurable milestones and deliverables. Under no circumstances will payments be
made in advance of work performed.
13. Project completion Holdback — Where the City of Santa Ana and the selected
Professional Consultant/Vendor(s) negotiate for the future completion and delivery of
a specified project/response item, the City will require a 10% holdback of Agreement
monies until project/response item completion, delivery, and project approval.
Coordination of Work or Services Contract Officer Extra Work Change Order Authorit
Where the City of Santa Ana and the selected Professional Consultant/Vendor(s) agree to exercise
a contingency option included in the proposed scope of work, a change order will be drawn -up by
the City's designated contract officer authorizing such extra work. To become effective, the
proposed change order must be agreed to in writing by an authorized representative of the
Professional Consultant/Vendor(s). Exceptions to this requirement may occur where a contingency
option is developed as part of the original agreement between the parties or pursuant to an
amendment to such agreement and the scope of the extra work, costs, and time frame for delivery
of services or work product are fixed and the City merely decides to elect to exercise its option.
Errors and Omissions
The Professional Consultant/Vendor shall notify the City, and not be allowed to take advantage of
any obvious errors and/or omissions within this offering or the Professional Consultant/Vendor's
response.
Litigation Status
Each Proposer must include in its proposal a complete disclosure of any alleged significant prior or
ongoing contract failures, any civil or criminal litigation or investigations pending which involve the
Proposer or in which the Proposer has been judged guilty or liable. Failure to comply with the
terms of this provision will disqualify any proposal. The City reserves the right to reject any
proposal based upon the Proposer's prior history with the City or with any other party, which
documents, without limitation, unsatisfactory performance, adversarial or contentious demeanor,
significant failure(s) to meet contract milestones or other contractual failures.
Rights to Pertinent Materials
All responses, inquiries, and correspondence relating to this RFP and all reports, charts, displays,
schedules, exhibits, and other documentation produced by the Professional Consultant/Vendor that
are submitted as part of the proposal shall become the property of the City upon receipt.
Government Code Sections 6250 et. Seq., the "Public Records Act" defines public records as any
writing containing information relating to the conduct of the public's business. The Public Records
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 13
Act provides that public records shall be disclosed upon written request, and that any citizen has a
right to inspect any public record, unless the document is exempted from the disclosure
requirements. The City cannot assure that any information submitted in response to the RFP will
be confidential. If the City receives a request for any document submitted in response to this RFP,
it will not assert any privileges that may exist on behalf of the person or business submitting the
proposal. It is the responsibility of the person or business entity submitting the proposal to assert
any applicable privileges or reasons why the document should not be produced.
News Releases / Publications
News releases or publications by any selected Professional Consultant/Vendor or any permitted
subcontractors and all other related Information (i.e., recommendations, etc.) pertaining to this
engagement shall not be made available to anyone without prior approval by the City.
Right to Reiect Offerings
The City of Santa Ana reserves the right to reject any and all offerings or any part of any offering,
to waive minor defects or technicalities, or to solicit new offerings on the same project or on a
modified project, which may include portions of the originally proposed project, as the City may
deem necessary in its interest. The City reserves the right to reject any or all proposals submitted
and no assurance is made hereby that any Agreement will be awarded pursuant to this RFP. The
City reserves the right to waive minor inconsistencies in submitted proposals.
Protests
Proposers may file a "protest" to a Request for Proposal (RFP) with the City's Purchasing
Department. In order for a protest to be considered valid it must:
1. Be filed in writing within five (5) business days of either the RFP Issued date or before 5:00
p.m. of the 5th business day following the posting of RFP Results/Notice of Intent to Award
Agreement on the City's webslte;
2. Clearly identify the specific irregularity or accusation;
3. Clearly identify the specific City staff determination or recommendation being protested;
4. Specify, in detail, the grounds of the protest and the facts supporting the protest; and
5. Include all relevant, supporting documentation with the protest at time of filing.
If the protest does not comply with each of these requirements, it will be rejected as invalid. If the
protest is valid, the City's Purchasing Supervisor, or other designated City staff member, shall
review the basis of the protest and all relevant information. The Purchasing Supervisor or designee
will provide a written decision to the protestor within ten (10) business days from receipt of
protest. The decision of the Purchasing Supervisor, or designee, is final and no further appeals will
be considered.
Negotiations
Negotiations for a binding estimate of cost structure will begin with the recommended top -ranked
firm(s). If an Agreement acceptable to the City cannot be negotiated at a price considered fair and
reasonable, negotiations shall be terminated with the top -ranked firm(s) and negotiation will then
proceed with the next highest ranked firm(s) until an Agreement is reached or withdraw the RFP.
The evaluation team will conduct all subsequent negotiations and will make a recommendation to
the City.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 14
The City reserves the right to negotiate final contract terms with any Proposer selected.
Negotiations shall be confidential and not subject to disclosure to competing Consultant/Vendors
unless and until an agreement is reached. The contract between the parties will consist of the RFP
together with any modifications thereto, and the awarded Consultant/Vendor's proposal, together
with any modifications and clarifications thereto that are submitted at the request of the City
during the evaluation and negotiation process. In the event of any conflict or contradiction between
or among these documents, the documents shall control in the following order of precedence: the
final executed contract, the RFP, any modifications and clarifications to the awarded
Consultant/Vendor's proposal, and the awarded Consultant/Vendor's proposal. Specific exceptions
to this general rule may be noted in the final executed contract.
Exceptions to the RFP
The format of the RFP must be followed and all requested information must be submitted as
indicated for continued consideration. However, the City of Santa Ana is receptive to any
additional information and/or suggestions pertaining to the required services and additional related
capabilities of the proposer. Exceptions raised during Agreement negotiations that have not been
previously declared in the proposal may be grounds for disqualification as deemed appropriate by
the City of Santa Ana.
Other Genera! Conditions
• Unavailability of Funds - If funds are not available to the City of Santa Ana, this award will be
postponed, canceled, or phased. The City makes no guarantee by release of this RFP that any
offering will be selected and/or funded.
• Notice to Proceed - A Notice to Proceed will be issued after the City receives the fully executed
Agreement.
XV. MISCELLANEOUS
All materials submitted which have not been clearly designated as proprietary information
become the property of the City and may be returned only at the City's option. Proposals
submitted become the property of the City and may be reviewed and evaluated by any persons
at the discretion of the City.
City of Santa Ana -- Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 15
ATTACHMENT 1
PROPOSER'S COVER SHEET
For
UTILITY USERS' TAX REVENUE AUDITING, RECOVERY, REPORTING,
ANALYSIS, AND LEGISLATIVE/STATE AGENCY LIAISON AND
IMPLEMENTATION MONITORING SERVICES
REQUEST FOR PROPOSAL (RFP #20-137)
CITY OF SANTA ANA
FINANCE & MANAGEMENT SERVICES AGENCY
TREASURY AND CUSTOMER SERVICES DIVISION
**Information Must Be Received Prior to 4:00 p.m. Pacific Standard Time
on NOVEMBER 30, 2020
Submit Proposal Information To:
City of Santa Ana
Finance & Management Services Agency
Treasury & Customer Service
RFP # 20-137
20 Civic Center Plaza, I" Floor
Santa Ana, CA 92701
Attn: Alex Gutierrez
NAME AND ADDRESS OF PROFESSIONAL CONSULTANT/VENDOR SUBMITTING
THIS INFORMATION:
Name of Professional Consultant/Vendor:
Contact Person:
Title:
Address:
Phone Number: (Direct) (Cell)
FAX:
Email:
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 16
ATTACHMENT 2
PROPOSER'S STATEMENT
Proposer understands and agrees that this written RFP (or any part thereof specifically designated
and accepted by the City of Santa Ana, (hereinafter City) shall constitute the entire agreement
between Proposer and the City only after it has been accepted by the City Council, endorsed by the
Clerk of the Council with his/her signature and official seal noting hereon the action of approval of
the Council, signed by the Executive Director or his duly authorized agent, and signed by the City
Attorney, denoting his approval of the form of this document, and its execution, and when it or an
exact copy of it has been either delivered to Proposer or deposited with the United States Postal
Service properly addressed to the Proposer with the correct postage affixed thereto.
Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she
will furnish City all required bonds and certificate of liability Insurance within ten (10) days
(excluding Saturdays, Sundays and City's legal holidays), or the funds, check, draft, or Proposer's
bond substituted in lieu thereof accompanying this proposal shall become the property of the City
and shall be considered as payment of damages due to the delay and other causes suffered by City
because of the failure to furnish the necessary bonds and because it is distinctly agreed that the
proof of damages actually suffered by City is difficult to ascertain; otherwise said funds, check
drafts, or Proposer's bond substituted in lieu thereof shall be returned to the undersigned.
Proposer understands that a proposal is required for the entire work, that the estimated quantities
set forth in the RFP schedule are solely for the purpose of comparing proposals, and that final
compensation under the contract will be based upon the actual quantities of work satisfactorily
completed.
All terms contained in the specifications, the certiFication of nondiscrimination by contractors, and
the required insurance certificates are to be incorporated by reference into this agreement and are
made specifically as part of this RFP.
Firm/Entity:
Signed and Printed Name:
Title:
Date:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL,
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED
NONRESPONSIVE.
City of Santa Ana -- Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 17
COMPANY TNFORMATXON
COMPANY
ATTACHMENT 3
The Proposer will provide a profile of its organization, The Proposer may attach any additional
literature and product brochures. At a minimum, the Proposer shall provide the following
information:
1. Year established:
2. Business Organization Name:
3. Parent Company:
4. Subsidiary or Subcontractor Actually Offering/Performing Service(s):
5. Office Locations:
6. Serving Office for this Project:
7. Services Available:
8. Total Number of Employees:
9. Product and Service History directly applicable to this RFP:
10. Number of Employees Focused on the Service Offering(s):
11. Number of Currently Active Signed Client Agreements directly applicable to services
proposed for this RFP:
Cityof Santa Ana -- Revenue Auditing, Recovery, Reporting,Anal sis, and Le islative/State Agency
g rY� Y 9
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 18
October 26, 2020
ATTACHMENT 4
SUMMARY SHEET
Firm Name:
Firm Parent or Ownership:
Firm Address:
Firm Telephone Number:
Firm Fax Number:
Number of Years in Existence:
Management Contact (person responsible for direct contact with the City of Santa Ana and
services required for this RFP):
Name:
Telephone Number:
Fax:
Email:
Title:
Project Manager (Person responsible for day-to-day servicing of the account):
Name:
Telephone Number:
Fax:
Email:
Title:
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137
October 26, 2020 Page 19
ATTACHMENT 5
CLIENT REFERENCE FORM
Using the following format, please provide at five 5 client references for the directly applicable
services that you are proposing to supply,
A. PROFESSIONAL CONSULTANT/VENDOR INFORMATION
Name
Contact Name:
B. CLIENT INFORMATION
Name of Organization:
Address:
Agreement Manager:
Service Dates:
Summary of Work Organization Engaged In:
Email:
Phone:
Email:
Amount of Agreement: Term of Agreement
Number of Client Staff Engaged:
Indicate services that were provided:
Number of Location
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and LegislativelState Agency
Liaison and Implementation Monitoring Services
Request for Proposals No, 20-137 Page 20
October 26, 2020
ATTACHMENT 6
COST/BID PROPOSAL FORM - RFP No. 20-137
NOTE 1: Submit and label a separate COST/BID Proposal Form for each proposed source of
revenue bid under Section III [Scope of Services and Time of Performance], subsection
(A) [Sources of Revenue] and/or for each desired response item bid - numbered (1)
through (3) - as described in Section I [Introduction], subsection (A) [Purpose].
In compliance with the Agreement Documents, the undersigned hereby proposes to furnish all
required labor, materials, supervision, transportation, equipment, services, taxes and
incidentals required for (Items - Check each applicable item) #1 #2 #3
The Work is to be done in strict conformity with the Agreement Documents now on file in the
Finance & Management Services Agency, Treasury & Customer Service Division, for the
following sum:
Utility Users' Tax Revenue Auditing, Recovery, Reporting, Analysis, and
Legislative/State Agency Liaison and Implementation Monitoring Services -
Cost/Bid Proposal
All Fiscal Years below must be bid in order for the quote to be considered responsive except
where bidder specifies a future commencement date of performance.
Fiscal Year
(February 1 through
]anus 31)
Option 1
Fixed Flat
Fee
Option 2
Percentage of
Revenue
Source
Option 3
Percentage of
Recovered
Revenues
Option 4
Time and
Expenses
1.
FY 2021-2022
2.
FY 2022-2023
3.
FY 2023-2024
4.
FY 2024-2025
S.
FY 2025-2026
Total Cost:
Be advised: At Proposer's discretion from 1 to 4 Options may be bid in alternative or in
combination to one another.
Notes or additional detail regarding Cost/Bid Proposal Option selected above or
regarding bids made in the alternative or in combination to one another.
Additional ex�lanatory pages may be appended here to your principal Cast Bid
Proposal ex lanation as necessary.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/state Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 21
October 26, 2020
COST/BID PROPOSAL FORM - RFP No. 20-137 - (Continued)
Section III, C-3, b-ii. Continaencv option. - see page 5 above.
• Contingency option. - Cost/Bid Proposal
All Fiscal Years below must be bid in order for the quote to be considered responsive except
where bidder specifies a future commencement date of performance.
Fiscal Year
(February 1through
January 31)
Option 1
Fixed Flat
Fee
Option 2
Percentage of
Revenue
Source
Option 3
Percentage of
Recovered
Revenues
Option 4
Time and
Expenses
I.
I FY 2021-2022
2.
FY 2022-2023
3.
FY 2023-2024
4.
FY 2024-2025
S.
FY 2025-2026
Total Cost:
Be advised: At Proposer's discretion from 1 to 4 Options may be bid in alternative or in
combination to one another.
Notes or additional detail regarding Cost/Bid Proposal Option selected above or
regarding bids made in the alternative or in combination to one another:
Additional explanatoo4 pages may be appended here to your "Contingency option"
Cost/Bid Proposal explanation as needed.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 22
October 26, 2020
COST/BID PROPOSAL FORM - RFP No. 20-137 - (Continued)
Section 111, C-4, i. Specialty UUT Audits — see page 5 above.
Specialty UUT Audits - Cost/Bid Proposal
All Fiscal Years below must be bid in order for the quote to be considered responsive except
where bidder specifies a future commencement date of performance.
Fiscal Year
(February 1through
January 31)
Option 1
Fixed Flat
Fee
Option 2
Percentage of
Revenue
Source
Option 3
Percentage of
Recovered
Revenues
Option 4
Time and
Expenses
1.
FY 2021-2022
2.
FY 2022-2023
3.
FY 2023-2024
4.
FY 2024-2025
S.
FY 2025-2026
Total Cost:
Be advised: At Proposer's discretion from 1 to 4 Options may be bid in alternative or in
combination to one another.
Notes or additional detail regarding Cost/Bid Proposal Option selected above or
regarding bids made in the alternative or in combination to one another:
Additional Mlanatory pages maV be appended here to your "Specialty UUT Audits"
Cast/Bid Proposal explanation as needed.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Anaiysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-9 37 Page 23
October 26, 2020
COST/BID PROPOSAL FORM - RFP No. 20-137 - (Continued)
If awarded the Agreement, the undersigned agrees to sign said Agreement and furnish the
necessary surety bonds and/or insurance certificates within thirty (30) days after receipt of the
notice of award of Agreement, and to begin work when directed by the City.
It is understood that this Cost/Bid Proposal is based upon completion of Work commencing on
the date set forth in the Agreement issued by the City to the Professional
Consultant/Vendor.
In determining the amount bid by each bidder, the City shall disregard mathematical errors in
addition, subtraction, multiplication, and division that appear obvious on the face of the
Proposal. When such a mathematical error appears on the face of the Proposal, the City shall
have the right to correct such error and to compute the total amount bid by said bidder on
the basis of the corrected figure or figures.
When an item price is required to be set forth in the Proposal, and the total for the item set forth
separately does not agree with a figure which is derived by multiplying the item price times the
Project Coordinators` estimate of the quantity of work to be performed for said item, the item
price shall prevail over the sum set forth as the total for the item unless, in the sole discretion of
the City such a procedure would be inconsistent with the policy of the bidding procedure. The
total paid for each such item of work shall be based upon the item price and not the total price.
Should the Proposal contain only total price for the item and the Item price is omitted, the City
shall determine the item price by dividing the total price for the item by the Project Manager's
estimate of the estimated quantities of work to be performed as items of work,
If the Proposal contains neither the source of revenue price nor the total response item price
item, then it shall be deemed incomplete and the Proposal shall be disregarded. The
undersigned has examined or is otherwise familiar with the location of the proposed Work and
the local conditions at the place where the Work is to be done.
The undersigned has checked carefully all of the foregoing figures and understands that the City
of Santa Ana will not be responsible for any errors or omissions on the part of the
undersigned in making up this Cost/Bid Proposal.
The undersigned agrees that all addenda received and acknowledged herein shall become a part of
and be included in this Cost/Bid Proposal. This Cost/Bid Proposal includes the following addenda:
Addenda #
Date
Addenda #
Date
Addenda #
Date
if the bidder is a corporation, the Cost/Bid Proposal must be executed in the name of the corporation and
must be signed by a duly authorized officer of the corporation.
if the bidder is a limited liability company, the Cost/Bid Proposal must be executed in the name of the
company and must be signed by a duly authorized managing member of the company.
If the bidder is a partnership or co -partnership, the Cost/Bid Proposal must be executed in the name of the
partnership / co -partnership and one of the partners / co-partners must subscribe their signature thereto
as the authorized representative of the partnership or co -partnership.
City of Santa Ana— Revenue Auditing, Recovery, Reporting, Analysis, and LeglslativelState Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 24
October 26, 2020
If the bidder is a joint venture, the Cost/Bid Proposal must be executed in the name of the joint venture and
must be signed by a duly authorized representative of the joint venture.
PROPOSER:
Signature Date
Print Name Title
Address City State Zip
Telephone Fax Email
Tax ID Numbers - Federal State
City of Santa Ana Business License Tax Certificate Number
[Business License Tax Certificate No. must be provided arior to final issuance of Professional Consultant Agreement]
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 25
October 26, 2020
ATTACHMENT 7
PROPOSER'S CERTIFICATION FORM
CERTIFICATION OF RESPONSE TO REQUEST FOR PROPOSALS
TO THE CITY OF SANTA ANA
RFP No. 20-137
1. The undersigned hereby submits its Response to Request for Proposals
quotation and, by doing so, agrees to furnish services to the City in accordance with
the Request for Proposals (RFP), dated October 1, 2020 and to be bound by the
terms and conditions of the RFP and any subsequent Addenda to said RFP.
2. This firm has carefully reviewed its response and understands and agrees that
the City is not responsible for any errors or omissions on the part of the proposer
and that the proposer is responsible for them.
3. It is understood and agreed that the City reserves the right to accept or reject
any or all responses and to waive any informality or irregularity in any quotation
received by the City.
4. The response includes all of the commentary, figures and data required by
the Request for Proposal, dated NOVEMBER 30, 2020 together with any Addenda
subsequently issued thereto.
5. This firm has carefully read and fully understands all of the items contained in
the Section XIV [General Terms & Conditions]. This firm agrees to all of the
general requirements except for those disclosed by the firm in its Response to
Request for Proposals quotation(s) - RFP No. 20-137
6. The quotations shown on this firm's Cost/Bid Proposal Form(s)
(Attachment 6) shall be valid for minimum (180) days following submission.
Name of Firm:
By:
(Authorized Signature)
Type Name:
Title:
Date:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED
NONRESPONSIVE.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and LegislativelState Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 rage 26
October 26, 2020
ATTACHMENT 8
NON -COLLUSION AFFIDAVIT
(Title 23 United States Code Section 112 and Public Contract Code Section 7106)
In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106
the BIDDER declares that the bid is not made in the interest of, or on behalf of, any
undisclosed person, partnership, company, association, organization, or corporation; that
the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly
induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or
indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in
a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any
manner, directly or indirectly, sought by agreement, communication, or conference with
anyone to fix the bid price of the BIDDER or any other BIDDER, or to fix any overhead,
profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any
advantage against the public body awarding the contract of anyone interested in the
proposed contract; that all statements contained in the bid are true; and, further, that the
BIDDER has not, directly or indirectly, submitted his or her bid price or any breakdown
thereof, or the contents thereof, or divulged information or data relative thereto, or paid,
and will not pay, any fee to any corporation, partnership, company association,
organization, bid depository, or to any member or agent thereof to effectuate a collusive or
sham bid.
Note: The above Non -Collusion Affidavit is part of the Proposal. BIDDERS are
cautioned that making a false certification may subject the certifier to criminal
prosecution.
Signed
State of California
County of
Subscribed and sworn to (or affirmed) before me on this day of , 20_, by
, proved to me on the basis of satisfactory evidence to be the
person(s) who appeared before me.
Notary Public Signature
Notary Public Seal
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED
NONRESPONSIVE.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 27.
October 26, 2020
ATTACHMENT 9
NON -LOBBYING CERTIFICATION
The prospective participant certifies, by signing and submitting this bid or proposal, to the
best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of any Federal agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with the awarding
of any Federal contract, the making of any Federal grant, the making of any Federal
loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any Federal contract, grant,
loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to
any person for influencing or attempting to influence an officer or employee of any
Federal agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with this Federal contract, grant,
loan, or cooperative agreement, the undersigned shall complete and submit
Standard Form-LLL, "Disclosure of Lobbying Activities," in conformance with its
instructions.
This certification is a material representation of fact upon which reliance was placed when
this transaction was made or entered into. Submission of this certification is a prerequisite
for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code.
Any person who falls to file the required certification shall be subject to a civil penalty of not
less than $10,000 and not more than $100,000 for each such failure.
The prospective participant also agrees by submitting his or her bid or proposal that he or
she shall require that the language of this certification be included in all lower tier
subcontracts, which exceed $100,000 and that all such sub -recipients shall certify and
disclose accordingly.
Signed:
Title:
Firm:
Date:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED
NONRESPONSIVE.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No, 20-137 Page 28
October 26, 2020
ATTACHMENT 10
NON-DISCRIMINATION CIERTIFICATION
The undersigned consultant or corporate officer, during the performance of this contract,
certifies as follows:
1. The Consultant shall not discriminate against any employee or applicant for employment
because of race, color, religion, sex, or national origin. The Consultant shall take
affirmative action to ensure that applicants are employed, and that employees are
treated during employment without, regard to their race, color, religion, 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. The Consultant agrees to post in conspicuous places, available
to employees and applicants for employment, notices to be provided setting forth the
provisions of this nondiscrimination clause,
2. The Consultant shall, in all solicitations or advertisements for employees placed by or on
behalf of the Consultant; state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, or national origin.
3. The Consultant shall send to each labor union or representative of workers with which
he/she has a collective bargaining agreement or other contract or understanding, a
notice to be provided advising the said labor union or workers` representatives of the
Consultant's commitments under this section, and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.
4. The Consultant shall comply with all provisions of Executive Order 11246 of September
24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
5. The Consultant shall furnish all information and reports required by Executive Order
11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of
Labor, or pursuant thereto, and will permit access to his/her books, records, and
accounts by the administering agency and the Secretary of Labor for purposes of
investigation, to ascertain compliance with such rules, regulations, and orders.
6. In the event of the Consultant's non-compliance with the nondiscrimination clauses of
this contract or with any of the said rules, regulations, or orders, the contract may be
canceled, terminated, or suspended in whole or in part and the Consultant may be
declared ineligible for further Government contracts or federally assisted construction
contracts in accordance with procedures authorized in Execution Order 11246 of
September 24, 1965, and such other sanctions may be imposed and remedies invoked
as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or
order of the Secretary of Labor, or as otherwise provided by law.
7. The Consultant shall include the portion of the sentence immediately preceding
paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or
purchase order unless exempted by rules, regulations, or orders of the Secretary of
Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965,
so that such provisions will be binding upon each subcontract or purchase order as the
administering agency may direct as means of enforcing such provisions, including
sanctions for noncompliance; provided, however, that in the event the Consultant
becomes involved in, or is threatened with, litigation with a sub -consultant or vendor as
a result of such direction by the administering agency, the Consultant may request that
the United States enter Into such litigation to protect the interests of the United States.
City of Santa Ana— Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 29
October 26, 2020
8. pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939,
and as amended, no discrimination shall be made in the employment of persons upon
public works because of race, religious creed, color, national origin, ancestry, physical
handicaps, mental condition, marital status, or sex of such persons, except as provided
in Section 1420, and any consultant of public works violating this Section is subject to all
the penalties imposed for a violation of the Chapter.
Signed:
Title:
Firm:
Date:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED
NONRESPONSIVE.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Leglslative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 30
October 26, 2020
ATTACHMENT 11
SAMPLE PROFESSIONAL. SERVICE AGREEMENT
THIS AGREEMENT is made and entered into this ist day of February 1, 2020 by and between
, ("Consultant"),
and the City of Santa Ana, a charter city and municipal corporation organized and existing
under the Constitution and laws of the State of California ("City").
RECITALS
A. The City desires to retain a Consultant having special skill in providing Utility Users'
Tax - Electric, Gas, & Telecommunications revenue auditing, recovery, reporting,
analyses, and legislative and state agency liaison and implementation monitoring
(including coordination with City's state and federal lobbyist in connection with
legislation/regulation to City's general tax resources) services.
B. Consultant represents that Consultant is able and willing to provide such services to
the City.
C. In undertaking the performance of this Agreement, Consultant represents that it is
knowledgeable in its field and that any services performed by Consultant under this
Agreement will be performed in compliance with such standards as may reasonably
be expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to
the terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Consultant shall perform during the term of this Agreement, the tasks and obligations
including all labor, materials, tools, equipment, and incidental customary work required to
fully and adequately complete the services described and set forth in Scope of Services --
Section III, attached hereto and incorporated by reference.
2. COORDINATION OF WORK OR SERVICES
A. Change Order Required
No extra work or adjustment in the time to perform this Agreement may be
undertaken unless a written "Change Order" is first given by the Contract Officer or
his/her designee, to Consultant, incorporating therein any material and
administration of this Agreement for CITY and have authority to enter into Change
Orders with Consultant pursuant to this Agreement. It shall be Consultant's
responsibility to assure that CITY's Contract Officer is kept informed of the
progress of the performance of the consulting services set forth in this Agreement
and Consultant shall refer any decisions which must be made by CITY to the
Contract Officer. The Contract Officer shall have authority to sign all documents on
behalf of CITY required hereunder to carry out the terms of this Agreement.
Unless otherwise specified herein, any approval of CITY required hereunder shall
mean the approval of the Contract Officer, All notices regarding consulting services
or requested changes in said Agreement shall represent adjustments in the
contract and/or in the time to perform this Agreement, which said adjustments are
subject to the written approval of Consultant.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and legislative/state Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 31
October 26, 2020
B. Contract Officer
City will appoint a Contract Officer who will be In charge of the contract
maintenance. The City's appointed Contract Officer shall be the City Manager, or
designee of the City Manager.
3. ADDITIONAL WORK OR SERVICES
A. Extra Work or Services
CITY shall have the right at any time during the performance of the work or services set
forth in this Master Renewal Agreement, without invalidating said Master Renewal
Agreement or any amendments thereto, to elect to exercise any existing option specified in
the Scope of Services for extra work or services or to order extra work or services pursuant
to a duly executed Change Order or to expend previously authorized contingent funds to
cover expenses for work or services agreed to by the PARTIES but exceeding the amounts
initially specified under the Compensation provisions of this Master Renewal Agreement or
thereby make changes by altering, adding to or deducting from said work or services.
B. Change Order
No extra work or services as set forth in subsection (a) above may be undertaken unless a
written "Change Order" is first given by the Contract Officer to the Consultant, incorporating
therein any material adjustment in the contract and/or the time to perform this Master
Renewal Agreement, which said adjustments are subject to the written approval of the
Consultant.
4. COMPENSATION
A. City agrees to pay, and Consultant/Vendor agrees to accept as total payment for its
services for City, the rates and charges identified in the Cost/BID Proposal Form
— Attachment 6. The total amount to be expended under this Agreement shall not
exceed $XXX,XXX during the term of this Agreement, including any extension
periods exercised under Section 5 — Term.
B. Payment by City shall be made within 45 days (forty-five) days following receipt of
proper invoice evidencing work performed, subject to City accounting procedures.
Payment need not be made for work that fails to meet the standards of performance
set forth in the Recitals that may reasonably be expected by City.
TERM
This Agreement shall be for three (3) years commencing February 1, 2020 and
terminating January 31, 2024, with an option exercisable by the City for two (2) one (1)
year extensions, exercisable in writing by the City Manager and the City Attorney, unless
terminated earlier in accordance with Section 16, below. All terms and conditions of the
Agreement shall remain effective during any additional renewal term.
6. PREVAILING WAGES
Consultant Is aware of the requirements of California Labor Code Section 1720, et seq.,
and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq.,
("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the
performance of other requirements on "public works" and "maintenance" projects. If the
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20.137 Page 32
October 26, 2020
services being performed are part of an applicable "public works" or "maintenance" project,
as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more,
Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend,
indemnify and hold the City, its elected officials, officers, employees and agents free and
harmless from any claim or liability arising out of any failure or alleged failure to comply
with the Prevailing Wage Laws.
7. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an
independent contractor and not an employee of the City. This Agreement is not intended
nor shall it be construed to create an employer -employee relationship, a joint venture
relationship, or to allow the City to exercise discretion or control over the professional
manner in which Consultant performs the services which are the subject matter of this
Agreement; however, the services to be provided by Consultant shall be provided in a
manner consistent with all applicable standards and regulations governing such services.
Consultant shall pay all salaries and wages, employer's social security taxes, unemployment
Insurance and similar taxes relating to employees and shall be responsible for all applicable
withholding taxes.
8. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use,
modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property
embodied in plans, specifications, studies, drawings, estimates, and other documents or
works of authorship fixed in any tangible medium of expression, including but not limited to,
physical drawings or data magnetically or otherwise recorded on computer diskettes, which
are prepared or caused to be prepared by Consultant under this Agreement ("Documents &
Data"). Consultant shall require all subcontractors to agree in writing that City is granted a
non-exclusive and perpetual license for any Documents & Data the subcontractor prepares
under this Agreement. Consultant represents and warrants that Consultant has the legal
right to license any and all Documents & Data. Consultant makes no such representation
and warranty in regard to Documents & Data, which were provided to Consultant by the
City. City shall not be limited in any way in its use of the Documents and Data at any time,
provided that any such use not within the purposes intended by this Agreement shall be at
City's sole risk.
9, INSURANCE
Prior to undertaking performance of work under this Agreement, Consultant shall
maintain and shall require its Subcontractors, if any, to obtain and maintain insurance as
described below:
a. Commercial General Liability Insurance. Consultant shall maintain commercial
general liability insurance naming the City, its officers, employees, agents,
volunteers and representatives as additional insured(s) and shall include, but not be
limited to protection against claims arising from bodily and personal injury, including
death resulting therefrom and damage to property, resulting from any act or
occurrence arising out of Consultant's operations in the performance of this
Agreement, including, without limitation, acts involving vehicles. The amounts of
insurance shall be not less than the following: single limit coverage applying to bodily
and personal injury, including death resulting therefrom, and property damage, in
the total amount of $2,000,000 per occurrence, with $2,000,000 in the aggregate.
Such insurance shall (a) name the City, its officers, employees, agents, and
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 33
October 26, 2020
representatives as additional insured(s); (b) be primary and not contributory with
respect to insurance or self-insurance programs maintained by the City; and (c)
contain standard separation of insureds provisions.
b. Business automobile liability insurance, or equivalent form, with a combined single
limit of not less than $1,000,000 per occurrence. Such insurance shall include
coverage for owned, hired and non -owned automobiles. Due to the nature of the
services contemplated under this agreement.
c. Worker's Compensation Insurance. In accordance with the provisions of Section 3700
of the Labor Code, Consultant, if Consultant has any employees, is required to be
Insured against liability for worker's compensation or to undertake self-insurance.
Prior to commencing the performance of the work under this Agreement, Consultant
agrees to obtain and maintain any employer's liability insurance with limits not less
than $1,000,000 per accident.
d. Errors and omissions insurance, with a combined single limit of not less than
$1,000,000 per claim with $2,000,000 in the aggregate.
e. Cyber/Technology liability insurance, together with Crime, and Fiduciary liability
Insurance with a limit of not less than $1,000,000.00 per claim with $2,000,000 in
the aggregate.
f. The following requirements apply to the insurance to be provided by Consultant
pursuant to this section.,
1. Consultant shall maintain all insurance required above In full force and effect
for the entire period covered by this Agreement.
H. Certificates of insurance shall be furnished to the City upon execution of this
Agreement and shall be approved by the City.
iii. City of Santa Ana, its officers, employees, agents and representatives shall be
Additional Insureds with respect to General Liability and Auto Liability
Insurance is Primary and Non -Contributory.
IV. Certificates and policies shall state that the policies shall not be canceled or
reduced in coverage or changed in any other material aspect without thirty
(30) days prior written notice to the City of cancellation with ten (10) days
prior notice for non-payment of premium in accordance with policy provisions.
V. Consultant shall supply City with a fully executed additional insured
endorsement.
vi. Certificates of insurance endorsements shall show the City as a certificate
holder as follows:
City of Santa Ana
Risk Management Division, 41" Floor
20 Civic Center Plaza
Santa Ana, CA 92701
vii. Where the amounts or coverage provided by the certificates of insurance
provides coverage greater than those listed by this Agreement, the amounts
provided by the certificates of insurance shall be incorporated by reference
Into the Agreement.
City of Santa Ana -- Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 34
October 26, 2020
vill. Consultant shall supply City with a fully executed additional insured
endorsement.
g. If Consultant fails or refuses to produce or maintain the insurance required by this
section or fails or refuses to furnish the City with required proof that insurance has
been procured and is in force and paid for, the City shall have the right, at the City's
election, to forthwith terminate this Agreement. Such termination shall not affect
Consultant's right to be paid for its time and materials expended prior to notification
of termination. Consultant waives the right to receive compensation and agrees to
indemnify the City for any work performed prior to approval of insurance by the City.
10. INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its
officers, agents, employees, contractors, special counsel, and representatives from liability:
(1) for personal injury, damages, just compensation, restitution, judicial or equitable relief
arising out of claims for personal injury, including death, and claims for property damage,
which may arise from the negligent operations of the Contractor, its subcontractors, agents,
employees, or other persons acting on its behalf which relates to the services described in
section 1 of this Agreement; and (2) from any claim that personal injury, damages, just
compensation, restitution, judicial or equitable relief is due by reason of the terms of or
effects arising from this Agreement. This indemnity and hold harmless agreement applies
to all claims for damages, just compensation, restitution, judicial or equitable relief suffered,
or alleged to have been suffered, by reason of the events referred to in this Section or by
reason of the terms of, or effects, arising from this Agreement. The Consultant further
agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including
fees and costs for special counsel to be selected by the City, regarding any action by a third
party challenging the validity of this Agreement, or asserting that personal injury, damages,
just compensation, restitution, judicial or equitable relief due to personal or property rights
arises by reason of the terms of, or effects arising from this Agreement. City may make all
reasonable decisions with respect to its representation in any legal proceeding.
Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code
Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code
Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence,
recklessness, or willful Misconduct of the Consultant.
11. INTELLECTUAL PROPERTY INDEMINIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives,
and employees against any and all liability, including costs, for infringement of any United
States' letters patent, trademark, or copyright infringement, including costs, contained in
the work product or documents provided by Consultant to the City pursuant to this
Agreement.
12. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed
under this Agreement. Consultant shall maintain complete and accurate records with
respects to the costs incurred under this Agreement and any services, expenditures, and
disbursements charged to the City for a minimum period of three (3) years, or for any
longer period required by law, from the date of final payment to Consultant under this
Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow
a representative of the City to examine, audit, and make transcripts or copies of such
records and any other documents created pursuant to this Agreement during regular
City of Santa Ana— Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 36
October 26, 2020
business hours. Consultant shall allow inspection of all work, data, documents, proceedings,
and activities related to this Agreement for a period of three (3) years from the date of final
payment to Consultant under this Agreement.
13. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such
information is reasonably understood to be confidential and/or proprietary, Consultant
agrees that it shall not use or disclose such information except in the performance of this
Agreement, and further agrees to exercise the same degree of care it uses to protect its
own information of like importance, but in no event less than reasonable care. "Confidential
Information" shall include all nonpublic information. Confidential information includes not
only written information, but also information transferred orally, visually, electronically, or
by other means. Confidential information disclosed to either party by any subsidiary and/or
agent of the other party is covered by this Agreement. The foregoing obligations of non-use
and nondisclosure shall not apply to any information that (a) has been disclosed in publicly
available sources; (b) is, through no fault of the Consultant disclosed in a publicly available
source; (c) is in rightful possession of the Consultant without an obligation of
confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently
developed by the Consultant without reference to information disclosed by the City.
14. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests,
direct or indirect, which would conflict in any manner with performance of services specified
under this Agreement.
15. DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and
prohibited by applicable law, in the recruitment, selection, training, utilization, promotion,
termination or other employment related activities. Consultant affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local laws and
regulations.
16. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Consultant, and supersedes any and all other agreements, oral or written, between the
parties. In the event of a conflict between the terms of this Agreement and any attachments
hereto, the terms of this Agreement shall prevail. This Agreement may not be modified
except by written instrument signed by the City and by an authorized representative of
Consultant. The parties agree that any terms or conditions of any purchase order or other
instrument that are inconsistent with, or in addition to, the terms and conditions hereof,
shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges
that no representations, inducements, promises or agreements, orally or otherwise, have
been made by any party, or anyone acting on behalf of any party, which is not embodied
herein.
17. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of
Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 36
October 26. 2020
herein without the prior written consent of the City and any such assignment, transfer,
delegation or subcontract without the City's prior written consent shall be considered null
and void. Nothing in this Agreement shall be construed to limit the City's ability to have any
of the services which are the subject to this Agreement performed by City personnel or by
other Consultants retained by City.
18. TERMINATION
This Agreement may be terminated by the City upon ninety (90) days written notice of
termination. In such event, Consultant shall be entitled to receive and the City shall pay
Consultant compensation for all services performed by Consultant prior to effective date of
such notice of termination, subject to the following conditions:
b. As a condition of such payment, the Executive Director may require Consultant to
deliver to the City all work product(s) completed as of such date, and in such case
such work product shall be the property of the City unless prohibited by law, and
Consultant consents to the City's use thereof for such purposes as the City deems
appropriate.
b. Payment need not be made for work which fails to meet the standard of performance
specified in the Recitals of this Agreement.
19. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of this Agreement shall be effective unless it is in writing and
signed by the party waiving the breach, failure, right or remedy. No waiver of any breach,
failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or
remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless
the writing so specifies.
20. 3URISDICTION -VENUE
This Agreement has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this
Agreement shall be determined and governed by the laws of the State of California. Both
parties further agree that Orange County, California, shall be the venue for any action or
proceeding that may be brought or arise out of, in connection with or by reason of this
Agreement.
21. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary
licenses, permits, approvals, waivers, and exemptions necessary for the provision of the
services hereunder and required by the laws and regulations of the United States, the State
of California, the City of Santa Ana and all other governmental agencies. Consultant shall
notify the City immediately and in writing of its inability to obtain or maintain such permits,
licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of
this Agreement.
22. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the
power, authority and right to bind their respective parties to each of the terms of this
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 37
October 26, 2020
Agreement, and shall indemnify City fully, including reasonable costs and attorneys
fees, for any injuries or damages to City in the event that such authority or power is
not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in
the body of this Agreement.
c. Whenever the terms of these Recitals conflict with terms of any Exhibit incorporated
herein by reference, then the terms and intent of these Recitals shall prevail and be
controlling.
d. The said Agreement must be signed below and may be signed in counterpart and
delivered by fax, emailed as a PDF (Portable Document Format) file attachment, or
by other means that displays the original or a copy of the signatures. Any
subsequent amendments may be signed and delivered in the same manner.
23, NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this
Agreement shall be in writing and shall be deemed to be properly given if delivered in
person or mailed by first class or certified mail, postage prepaid, or sent by fax or other
telegraphic communication in the manner provided in this Section, to the following persons:
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax: 714-647-6956
With courtesy copies to:
Kathryn Downs, CPA
Finance & Management Services Agency
City of Santa Ana
20 Civic Center Plaza (M-17)
P.O. Box 1988
Santa Ana, California 92702
Fax: (714) 647-5304
Sonia R. Carvalho
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702
Fax: (714) 647-6515
Willard V. Holt
Treasury & Customer Services
City of Santa Ana
20 Civic Center Plaza (M-15)
P.O. Box 1964
Santa Ana, California 92702
Fax: (714) 647-5304
Manager
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No 20-137 Page 38
October 26, 2020
To Consultant:
First & Last Name — Title
Consultant Firm dame
Address
City, State, Zip
Fax:
A party may change its address by giving notice in writing to the other party.
Thereafter, any communication shall be addressed and transmitted to the new address. If
sent by mail, communication shall be effective or deemed to have been given three (3) days
after it has been deposited in the United States mail, duly registered or certified, with
postage prepaid, and addressed as set forth above. If sent by fax, communication shall be
effective or deemed to have been given twenty-four (24) hours after the time set forth on
the transmission report issued by the transmitting facsimile machine, addressed as set forth
above. For purposes of calculating these time frames, weekends, federal, state, County or
City holidays shall be excluded.
{Signatures on following page}
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 39
October 26, 2020
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year
first above written.
ATTEST:
Daisy Gomez
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
Lisa Storck
Assistant City Attorney
RECOMMENDED FOR APPROVAL;
Kathryn Downs, CPA
Executive Director
Finance and Management Service Agency
CITY OF SANTA ANA
Kristine Ridge
City Manager
KOUP-1>iL1111 U .-IA
(Company Name
(Name & Title of Signatory)
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Lialson and Implementation Monitoring Services
Request for Proposals No, 20-137 Page 40
October 26, 2020
ATTACHMENT 12
PROPOSAL EVALUATIONS
Evaluations
An evaluation team composed of representatives from pertinent agencies/departments of
the City of Santa Ana will evaluate proposals on a variety of qualitative and quantitative
criteria. The selected proposal (or proposals) will be one(s) that provide the most effective
approach that best meets the City's requirements. The lowest price proposal(s) will not
necessarily be selected.
Selected Professional Consultant/Vendors may be invited to interviews and to make oral
presentations/demonstrations to City representatives. The Professional Consultant/Vendor
representative(s) attending the interview/oral presentation shall be technically qualified to
respond to questions related to the proposed assessment and work plan.
The evaluation criteria of the proposals will include, but are not limited to the following
aspects:
I.
Professional Consultant/Vendor Qualifications
2.
Professional Consu[tant/Vendor Experience
3.
Client References
4.
Proposed Scope of Services and Term of Contract
S.
Cost of Providing Service
Each proposal will be carefully reviewed by the evaluation team based on these criteria. A
score will be assigned to each proposal based on a scale of 100 — see sample Proposal
Rating Form (Attachment 13). The City reserves full discretion to determine the
competence and responsibility, professionalism, technical expertise, and/or financial position
of proposers. Proposers will provide, in a timely manner, any and all information which the
City deems necessary to make such a decision.
The evaluation team may conduct interviews with the top ranked firms (based on the
evaluation weighting above). During the interview process, non -binding price proposals and
costing data can be discussed. Once these interviews and discussions are completed,
including the non -binding estimates of cost, the team will finalize the rankings.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 41
October 26, 2020
ATTACHMENT 13
(SAMPLE)
PROPOSAL RATING FORM
Utility Users' Tax Revenue Auditing, Recovery, Reporting, Analysis, and
Legislative/State Agency Liaison and Implementation Monitoring Services
Proposer(s):
Selection Committee Member:
Name
Member's Signature
Date of Rating Review:
Title
Proposal Criteria
Available
Points
Score
I.
Professional Consultant/Vendor Qualifications
20
2.
Professional Consultant/Vendor Experience
20
3.
Client References
15
4.
Proposed Scope of Services and Term of Contract
30
S.
Cost of Providing Service
15
Total
100
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and I_ogislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 42
October 26, 2020
ATTACHMENT 14
DATA REQUIRED
The Response to the City of Santa Ana's Request for Proposal
The content and sequence of the information contained in each copy of the proposal shall be
as follows:
A. Letter of Transmittal
Include your firm's understanding of the work to be performed. Additionally, state
why your firm believes it is the best qualified to perform the services requested.
Include the Management Contact (Representative authorized to sign an agreement
for your firm) and the Project Manager (person responsible for the day-to-day
management of the project).
B. Table of Contents
Include a clear identification of the material by section and by page number.
C. Summary Sheet
1. This section of the proposal must include a fully -completed copy of the
Summary Sheet included with this RFP (Attachment 4).
2. Provide the name, title, experience and qualifications of the personnel who will be
assigned to the project.
3. Provide the r6sumes of the Management Contact with the City and the Project
Manager.
D. Allocation of Resources
Provide a conceptual plan for services to the City that your firm believes are
appropriate for the City. Indicate features, skills and/or services which distinguish
your firm and make it the better choice for the City. Indicate how the resources of
your firm (e.g., number and type of personnel allocated by hours) will be allotted for
this project. Submittal of a project schedule is required as part of the Allocation of
Resources.
E. Scope of Work and Term of Contract
Proposals must address all items set forth in Section III [Scope of Work and Term
of Contract]. if you wish to decline to bid the Source of Revenue on a Response
Item, you must so state. Additional information that your firm wishes to include
must be clearly identified. The items must be addressed in the order in which they
appear in Section III of this RFP.
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 43
October 26, 2020
F. Client References
Each firm must include the following references:
1. Complete Client Reference Form (Attachment S) listing five (5) client
references.
2. List similar services performed for all similar organizations/entities in the last
five years and when performed. Please include names of organizations, and
names and telephone numbers of persons who can be contacted with regard
to the services your firm has provided.
3. List all public agencies for which Agreements were terminated in the last
three years. Please include names of organizations, and names and
telephone numbers of persons who can be contacted. Firms may provide a
brief explanation of the reason(s) for termination(s).
G. Proposer Statement
Return a copy of the entire completed statement properly executed as provided for in
Proposer' Statement Form (Attachment 2).
H. Company Information Form
Return a copy of the entire completed company information as provided for in
Company Information Form (Attachment 3).
I. Cost/Bid Proposal Form(s)
Return a copy of the entire completed cost/bid proposal executed as provided for in
Cost/Bid Proposal Form(s) (Attachment 6). Supplemental explanatory pages
may be appended to each Cost/Bid Proposal Form section as needed.
]. Certification of Proposals
Return a copy of the entire completed certification properly executed as provided for
in Proposer's Certification Form (Attachment 7).
K. Non -Collusion Affidavit
Return a copy of the entire completed affidavit properly executed as provided for in
Non -Collusion Affidavit Form (Attachment 8).
L. Non -Lobbying Certification
Return a copy of the entire completed certification properly executed as provided for
in Non -Lobbying Certification (Attachment 9).
M. Non -Discrimination Certification
Return a copy of the entire completed certification properly executed as provided for
in Non -Discrimination Certification (Attachment 10).
City of Santa Ana — Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services
Request for Proposals No. 20-137 Page 44
October 26, 2020
EXHIBIT B
A V E N U
INSIGHTS & ANALYTICS
City of Santa Ana
REQUEST FOR PROPOSALS FOR
UTILITY USERS' TAX REVENUE
AUDITING, RECOVERY, REPORTING,
ANALYSIS, AND LEGISLATIVE/STATE
AGENCY LIAISON AND
IMPLEMENTATION MONITORING
SERVICES
November 30, 2020
UTILITY USERS TAX CONSULTANT
A V E N U RFP #20-137
AIRSICHTS &Atf AL4TIC5
November 30, 2020
City of Santa Ana
Attn: Alex Gutierrez, Management Analyst
Finance & Management Services Agency
Treasury & Customer Service
20 Civic Center Plaza, 1 st Floor
Santa Ana, CA 92701
RE: Proposal for Property Tax Consultant
Dear Alex Gutierrez,
Avenu Insights & Analytics, LLC ("Avenu"), is pleased to provide the City of Santa Ana ("the City")
with the following response to the City's Request for Proposals (RFP) for Utility Users' Tax Revenue
Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency Liaison and Implementation
Monitoring Services. As experts in these services and the current provider, we are confident that we
have the required skills, expertise, capabilities, and knowledge to successfully continue to provide the
City with these services.
Avenu believes we are best qualified to support the City in this project because we are a leader in
assisting local governments in implementing, administering, and managing multiple tax types — we
service more than 1,000 government partners throughout the Country.
We offer the City the following:
CITY OF SANTA ANA, CA
A V E N U
1NSICHTS & ANALYTICS
A Team of Experts. Avenu has a distinguished
Our Executive and Senior Management team ar
UTILITY USERS TAX CONSULTANT
RFP #20-137
e
Avenu's goal is to ensure the City has unparalleled customer support. Should the City have any
questions, Avenu is providing the City with the following points of contact:
Management Contact Project Management Contact
Name: Jonathan Gerth Name: Laura Burnett
Title: VP, Tax and Audit Title: Client Success Manager
Phone: (205) 616-1140 Phone: (805) 990-2348
E-Mail: Jonathan.Gerth(c_avenuinsights.com E-Mail: Laura.Burnett avenuinsi hts.com
On behalf of Avenu, I welcome the opportunity to renew these services that we have been providing
the City of Santa Ana for the past 3 years. I represent that the information contained in this proposal
is true and correct, and we can perform the commitments contained in this proposal.
As Chief Financial Officer, I am authorized to commit Avenu to a contract and represent the firm in all
oral presentations and negotiations.
This offer will remain valid for 180 days from the due date of this proposal.
Sincerely,
Mike Melka
Chief Financial Officer
Avenu Insights and Analytics, LLC
E-Mail: proposalsavenuinsights.corn
CITY OF SANTA ANA, CA 3
UTILITY USERS TAX CONSULTANT
A V E N V RFP #20-137
I.SIGHTS R AHALYT1C5
Table of Contents
CITY OF SANTA ANA, CA 4
A A V E N U
tNS$r"TS & ANAIYTICS
1 Scope of Services
UTILITY USERS TAX CONSULTANT
RFP #20-137
As the nations leading provider of Utility User Tax consultant services, with decades of extensive
experience, Avenu fully understands the City's objectives and has the requisite capabilities and
experience to successfully: 1) Assist the City in the collection of Utility User Tax revenues, due to the
City, as determined by Avenu's auditing, recovering, reporting, and other general compliance
activities; 2) support the City in the development of UUT revenue forecast models; and 3) provide to
the City legislative and state agency liaison and implementation monitoring.
Avenu offers herein below an itemized response to Section III of the City's "SCOPE OF SERVICES
AND TERM OF CONTRACT."
1.1 SOURCE OF REVENUE [RFP iu.A]
Utility Users' Tax ("UUT") - Rate 5.5% - UUT Service Provider Categories: Electric, Gas, & Telecommunications
Service Providers (to include electric and gas aggregators, and California Department of Tax and Fee
Administration's ("CDTFA") collected pursuant to the Local Prepaid Mobile Telephony Services Collection Act.
Avenu has been the industry pioneer and leader in CA UUT for nearly thirty (30) years. Avenu is the
only entity which: (1) maintains the state's only website, uutinfo.org, which nationwide utility service
suppliers rely upon for current UUT tax rates and levies throughout the state; (2) were the first to
provide ordinance optimization services under legal expertise to ensure and maintain the
modernization of terminologies applicable to various industries that remain both all-inclusive and time -
enduring to provide municipalities and counties with the most encompassing levies legally
permissible; and (3) are the only entity that solely utilizes degreed and/or licensed accounting and
legal professionals to provide consultation services, tax compliance auditing, and legal defense and
support for any and all tax findings and navigate the extreme legal opposition commonly applicable to
the ever -evolving industries in this arena of taxation. Avenu has an in-depth understanding of the
City's ordinances, and indeed those statewide, for Electric, Gas, & Telecommunications UUTs,
(" ") § 35-156
In addition, Avenu's expertise extends to both identifying and enforcing compliance upon electric and
gas aggregators, particularly Clean Power Alliances and other local service suppliers, that utilize gas
and electric delivery infrastructure owned by those franchisees who maintain such infrastructures
within the City. Finally, Avenu co -sponsored and drove the legislative efforts to pass both S.B. 344
(2019) and S.B. 1441 (2020), in partnership with Sen. Mike McGuire, to gain legislative extensions of
the Local Mobile Prepaid Telephony Services Collection Act, CAL. REV. & TAX. CODE § 42100
via administration by the California Department of Tax and Fee Administration (CDTFA) collected on
the retail sale of prepaid wireless telecommunications services sold to prepaid customers.
Avenu monitors both the payments and the charges for administration thereof by the CDTFA for
nearly seventy percent (70%) of the state market. While contingency fee auditing is prohibited under
the legislation, Avenu has the necessary expertise to identify these revenues through audits of
service suppliers who have subsidiaries who provide such services and have extensive experience in
conducting direct audits on the prepaid wireless entities pursuant other pricing.
CITY OF SANTA ANA, CA
UTILITY USERS TAX CONSULTANT
A V E N U
lNSJC14TS & A"AtMrS RFP #20-137
Goal of professional consultant services provider: (1) assist in collecting additional general tax revenues due to the
City, as determined from auditing, recovery, reporting and associated compliance activities to include the following
UUT categories: Electric, Gas, & Telecommunications; (2) assist in development of UUT revenue forecast models for
Electric, Gas, & Telecommunications UUT; (3) provide legislative and state agency liaison and implementation
monitoring including coordination with City's state and federal lobbyists in connection with legislationlregulation
relating to City's UUT (ail categories - Electric, Gas, Telecommunications & water, including aggregators, plus
CDTFA collected pre -paid telecommunications UUT).
Avenu has assessed the goals sought pursuant to Section III.A and are confident that we have the
unique and unmatched experience and capabilities to meet and/or exceed the City's goals stated
therein. Avenu will:
1. Assist the City in collecting additional general tax revenues due to the City, as determined from
auditing, identification of entities which are not reporting, recovery of revenues from existing
and newly identified entities, reporting and associated compliance activities to include the
following UUT categories: Electric, Gas, & Telecommunications.
2. Provide the City with UUT revenue forecast models for Electric, Gas, & Telecommunications
UUT and Franchise Fees. Our forecasts will include optimistic, most like and pessimistic
scenarios, including short, mid and long-range forecast by service type category, and will also
have included detailed individual provider payment information. We will provide quarterly
updated forecasts during the fiscal year.
3. Provide legislative and state agency liaison and implementation monitoring including
coordination with City's state and federal lobbyists in connection with legislation/regulation
relating to City's UUT (all categories - Electric, Gas, Telecommunications & Water, including
aggregators, plus CDTFA collected pre -paid telecommunications UUT). Avenu will provide
written policy updates throughout the year and will provide recommended actions that the city
may choose to take and as appropriate. We will also provide detailed information on legislative
and regulatory issues specific to the city during our in person quarterly meetings.
1.2 RELATED SERVICES [RFP 111.13]
Related to the above audit services, the Professional Consultantfvendor would:
• Represent the City for purposes of examining records related to the above revenue sources to identify and confirm
any errorstomissions leading to deficient payments to the City.
• For each errortomission identified and confirmed, prepare the appropriate documentation to facilitate recovery of
revenue due to the City including any applicable penalties and interest.
• Prepare and forward to the appropriate entities requests for corrective action and induce voluntary revenue recovery.
• Meet with designated City officials as necessary (but not less than quarterly) to review consultant's findings and
recommendations.
• Provide any additional assistance as necessary to support the City in recovering and preventing tax delinquencies.
• Utility Users' Tax: Prepare annual UUT report that includes legal and legislative issues that could potentially affect
UUT revenues and a five-year forecast or each utility industry type; assist in development of multi -year UUT budget
revenue forecast model.
• Legislative/State Agency Liaison and Implementation Monitoring: Provide federal, state, and local legislative and
state agency liaison and program implementation monitoring (including coordination with City's state and federal
lobbyists in connection with legislationlregulation relating to City's UUT.
Avenu has reviewed Section 111.13, Related Services, and Avenu will provide all services outlined
therein:
CITY OF SANTA ANA, CA
UTILITY USERS TAX CONSULTANT
A V E N U
ONSIGHTS R ANALYTICS
RFP #20-137
Avenu will represent the City for purposes of examining records related to the above revenue
sources to identify and confirm any errors/omissions leading to deficient payments to the City.
For each error/omission identified and confirmed, Avenu will prepare the appropriate
documentation to facilitate recovery of revenue due to the City including any applicable
penalties and interest.
Avenu's experts will prepare and forward to the appropriate parties' requests for corrective
action and revenue recovery.
Avenu will meet with designated City officials as necessary (but not less than quarterly) to
review consultant's findings and recommendations.
Avenu will provide any additional assistance as necessary to support the City in recovering
and preventing tax delinquencies.
Avenu's Government Relations Team will prepare annual UUT report that includes legal and
legislative issues that could potentially affect UUT revenues and a five-year forecast or each
utility industry type; assist in development of multi -year UUT budget revenue forecast model.
1.3 UTILITY USERS' TAX — ADDITIONAL REQUIREMENTS [RFP ills]
1.3.1 General Strategy [RFP nl.c.9]
a. Describe the general strategy for UUT and economic analysis.
Avenu's Utility Users Tax (UUT) service client base covers more than 70 percent of UUT revenues in
California. As a result, we are uniquely positioned to monitor and review UUT revenues across the
state and, as a result and too date, our compliance and monitoring services have s recovered more
than $300 million in revenues for UUT clients. Our monitoring service covers the utilities of gas,
electricity and telecommunications, (wired, wireless and Prepaid Wireless).
We accomplish this through our team of analysts, auditors, attorneys, and project managers who
analyze, manage, and protect UUT revenues. Our discovery methods and enforcement tools assure
that utilities comply with tax regulations and remit the correct amounts, whether they are for natural
gas, electricity, or telecommunications and video utilities. We further protect future revenue by
remaining current on pending legislation, new technologies and recommending ordinance changes.
Any statutory requirement for third -party review of UUT payments is met through Avenu.
The UUT Compliance Program's services will protect the City's existing UUT revenues from erosion
due to new legislation, new technologies, outdated ordinance language and inaccurate information,
focusing on these areas:
Compliance
Administrative
Legislative Review and Implementation Strategy
Ordinance Review, Administrative Rulings, and Tax Inquiries
CITY OF SANTA ANA, CA
UTILITY USERS TAX CONSULTANT
A V E N U RFP #2D-137
AINSIGHTS S ANALVTICS
Avenu will provide the following Compliance Activities:
1. UUT Tax Application Review. Avenu will conduct a "focused" compliance review of the
major service providers on behalf of one or more cities to assure that the provider's "tax
application" matrix reflecting all of the provider's current products and service, is being
taxed properly, for the benefit of City and other client cities.
2. UUT Payment Review. Identification of possible gaps in payments, irregularities, calculation
mistakes ( wrong tax rate), and other payment errors to the City, provided that the City
provides Avenu with regular UUT payment history. MuniServices will assist the City with the
appropriate compliance correspondence and enforcement actions.
3. Comparative Analysis of UUT Payments. Avenu will periodically perform a comparative
analysis of a service provider's UUT payments to the City with other neighboring or
comparable client cities, after adjusting for rate, population, and median household income.
Avenu will also perform a comparative analysis of the franchise and UUT payments for gas
and electricity.
4. Detection.
a. Avenu will annually update its proprietary database of "new telecom service providers"
and send out a PUC 799 notice letter to such new providers on City's behalf. The
current list exceeds 1,500 providers.
b. Avenu will annually update its proprietary database of new "video service providers" and
send out a notice letter to such new providers on City's behalf.
c. Avenu will annually review the SB 278 lists of the major gas and electric companies
to identify new non -core gas and direct access electric customers, as well as new
third -party providers, and take appropriate steps to assure that the UUT is being
applied to "commodity" purchases.
5. Exemption Review. Avenu will periodically review the exemption lists of the major service
providers regarding non-residential customers.
6. Optional City Specific Compliance Reviews. At City's option, Avenu will offer "City -
Specific" reviews on a performance fee or other negotiated basis, if the above activities or
other factors (e.g., non -response by utility provider) would suggest that there is a
reasonable need to do so.
1. UUT Payment History. Avenu will provide the City, on a monthly or otherwise mutually
agreed upon basis, with a spreadsheet reflecting the City's UUT payments by provider and
utility category (based on remittance data provided by City to Avenu).
CITY OF SANTA ANA, CA $
UTILITY USERS TAX CONSULTANT
A V E IN U
ikSICHTS & ANAIYTICS RFP #20-137
2. Prepaid Wireless Monitoring and Analysis. For direct sellers, Avenu will monitor the
monthly prepaid wireless payments and perform a comparative analysis with similar cities to
determine accuracy and identify any potential discrepancies. For major direct sellers, Avenu
will perform a tax application review under Item 1 above. We will identify online prepaid
wireless sellers and send an annual notice letter to ensure compliance with local and state
laws and regulations. Avenu will engage and follow-up with the California Department of Tax
& Fee Administration (CDTFA) on any issues, problems and discrepancies affecting your
City's prepaid wireless revenue collections by retail sellers, including online sellers, to the
extent that MuniServices has access to CDTFA documents through a City resolution
authorizing Avenu to have such access.
3. UUT Website. Prepare and maintain an accurate copy of the City's UUT ordinance and its
administrative rules and interpretations on the uutinfo.org website, including a link to the City's
web page (if desired). Model forms for exemptions and remittances, administrative rulings,
and other tax compliance documents will be maintained on the www.uutinfo.org website.
4, Revenue Forecasts and Management Reports. Avenu will provide an annual report that
outlines the year's activities in review, revenue forecasts, year -over -year (YOY) comparison
charts and revenue generated from compliance activities. This report contains an analysis of
UUT revenues, and a five-year revenue forecast on each of the utility business segments
(electric, gas, CATV, wired telecom, wireless telecom, etc.).
5. Tax Application and Geocode Inquiries. Avenu will provide technical assistance to City
staff and provide timely analysis and draft responses to tax application inquiries from utility
companies and will assist in responding to citizens regarding their utility bills and the
computation of the UUT. Avenu will assist City and the utility service providers in correcting
geocoding errors in response to taxpayer complaints.
Avenu provides the following Revenue Protection and Enhancement Activities:
1. Legislative and Regulatory Review Services. Avenu will monitor proposed state and
federal legislation and regulatory activity to identify issues affecting the City's UUT or utility
franchise revenues and, make recommendations to client cities, their lobbyists, and other
potential stakeholders or municipal advocates and otherwise assist in developing effective
consensus positions and coordinated advocacy.
2. Technology and Marketing Analysis. Avenu will identify, monitor and anticipate changes in
technology, services, or marketing of services, which may have an impact on future UUT
revenues.
Avenu will provide the following advisory services related to your City's UUT Ordinance:
CITY OF SANTA ANA, CA
AA V E N U UTILITY USERS TAX CONSULTANT ixsicHrs s araatvrics RFP #20-137
Analysis and recommendation (including drafting amendment language) on proposed
state and federal legislation.
Assistance with tax application issues, including taxation of new technologies or
services; including preparation of Administrative Rulings.
Assistance on issues involving "bundling rule" and tax allocation/apportionment.
Assistance on nexus issues (re: tax application and collection).
Review of city's tax info/forms on uutinfo.org.
Assistance on Voluntary Disclosure Agreements (offers to compromise owed taxes).
On request, review of exemption status of individual utility user.
Avenu monitors proposed state and federal legislation to identify issues affecting the City's UUT or
utility franchise revenues, and, if justified, make recommendations to the City and its
lobbyists. Avenu uses its own in-house counsel on matters requiring legislative and legal
analysis. Our Government Relations team works in collaboration with counsel and other stakeholders
including representatives from the League of California Cities, the California Society of Municipal
Finance Officers, the California Municipal Revenue Tax Association, Special Districts Association,
City advocates, utility providers, the Public Utilities Commission, CDTFA, BOE, and others.
Our team will work with the City for the further protection of revenues including advocacy efforts on
state and federal bills, including by not limited to, affecting taxation of broadband telecommunication
networks; taxation of wireless services; and taxation of on-line sales and certain digital goods. Our
Government Relations team manages its communication with clients through a strong public relations
program and provides crisis assistance on policy matters. We also maintain a website and posts
published works on policy issues including an industry respected publication, "Policy Update."
b. Define the role of City staff and City records as it relates to your efforts.
To conduct any UUT/Franchise Fee City Specific Reviews, Avenu would require the same amount of
City support as provided in the past, including items such as copies of payment information, annual
copy of SB 278 data, etc.
c. Identify what sources of information will be needed and the means with which they will be acquired.
Avenu will need to obtain copies of ordinances and agreements that govern each utility. Information
from the City on any known compliance issues or previous compliance activity and any other
important factors, for example, any recent boundary changes, annexations, or rate changes that may
have an impact on compliance. Additionally, any payment records available from the City.
1.3.2 Objectives and Methodology JRFP III.C.21
a. Identify the specific procedures you will use to detect, correct, and recover misallocated UUT for the City.
Avenu will generally use the following procedures:
CITY OF SANTA ANA, CA 10
UTILITY USERS TAX CONSULTANT
A V E N U
INSIGWTS & ANALYTKS
RFP #20-137
Pre -Audit Planning
To initiate the project, once a contract is in place, we recommend scheduling an introductory meeting
with designated City management, to:
1. identify the population of utilities to be considered for examination,
2. obtain copies of the ordinances and agreements governing each utility,
3. review with the City any known compliance issues or previous compliance activity, and any
other factors, for example, any recent boundary changes, annexations, or rate changes, that
might impact compliance,
4. identify relevant payment records available from the City,
Schedule and Complete Audit Engagements
Based on the list of approved engagements, we will proceed to contact those utilities for which the
City has approved audits. In preparing for and conducting its review of each utility, Avenu will employ
the following procedures:
1. Obtain a letter of authorization from the City, copies of franchise agreements and any
correspondence with the providers, and a history of franchise payments.
2. Obtain and review available documents, reports, work papers, and any prior reports prepared
by the internal or external auditors, which concern the computation or methodologies for
computing the franchise fee paid.
Review franchise agreements and all ordinances and governing regulations relating to taxes
to ensure compliance with all Federal, State and Local laws, and correspondence relating to
the City's franchise fees.
4. Submit a Request for Information to each utility to obtain the information needed to complete
our review and negotiate any necessary confidentiality and non -disclosure agreement related
to the audit.
5. Review the work papers and supporting documentation used in the computation of the
franchise fee payments.
6. Review and analyze each utility's general ledger and financial statements. Compare and
analyze the data for reasonableness, completeness, and accuracy as related to the franchise
fee.
7. Identify any revenues excluded from the franchise fee calculation.
8. Review and analyze all the utility's revenue accounts in detail to: determine revenues that are
to be included or excluded from the franchise fee computations; review the revenues excluded
from the computations, if any, and determine if they are permitted by the City's franchise
agreement, or relevant state law.
9. Determine if utility or any of its subsidiaries receives any revenues from customers or third
parties for the use of utility's facilities located on City's right of way authorized by the franchise
agreement that are not included in the franchise fee calculation used to determine the
payment to the City.
10. Review the process used to compute franchise fees on meter diversion revenue for gas,
electric, water or other providers.
CITY OF SANTA ANA, CA 11
A Y N U
UTILITY USERS TAX CONSULTANT
E
,NSIG17TS & ANAiVTJCS RFP #20-137
11. Determine how gas, electric, water or other deregulation has impacted the franchise fee
calculation, especially with regard to managed services (storage, distribution, etc.), if
applicable.
12. Evaluate the utility's treatment of natural gas, electricity or other utility services consumed by
the utility provider within its facilities located within the City's jurisdiction, if applicable.
13.Analyze the number of customers reported in the City's jurisdiction by rate classification and
obtain and review the utility's procedures to code new customers to the proper jurisdictions
and the procedures used to address annexations.
14.Obtain and review the list of exempted customers, if any, from the franchise fee computation.
15.Compare customer address data for each utility with address data to be provided by the City
to determine whether any residents and businesses currently within the boundaries of the City
have been or are being servicedlinvoiced without remittance of the appropriate tax or payment
to the City.
16.Sample test the utility's billings for completeness and accuracy of franchise fee from
customers and verify that all monies collected are submitted to the City.
17. Compare the utility's payments, exclusions, and other computations as related to the franchise
agreement, or relevant state law. Compare the actual payments made to the City for
timeliness and accuracy.
b. Detect, document, and correct UUT tax reports errors and omissions in order to generate new, previously unrealized
revenue for the City.
Avenu's tenured reputation statewide, along with proprietary information provided from remittances to
regional metropolitan areas, as well as statewide, provides Avenu with information about newly
formed and new generation service suppliers that arise and are either operating, or likely operating
within the City, all of which helps to enhance our abilities to detect those who are either not report or
omitting various revenues subject to the City's UUTs and/or Franchise Fees.
c. Determine if UUT service providers had prior knowledge of the error(s), which could entitle the City to collect revenue
from additional reporting periods.
Avenu's UUT experts will determine if the service provider had prior knowledge of the error. The
determination could entitle the City to collect revenue from additional reporting periods.
d. Track and report on all misallocations that have been corrected as a result of the Consultant's efforts and remitted to
the City by Utility Users' Tax service providers.
Avenu's UUT experts will track and report on all corrected misallocations as a result of Avenu's efforts
and remitted to the City by Utility User Tax service providers.
e. Monitor and analyze the City's monthly UUT reporting and collection reports with focus on major accounts 90% or
more of the City's total service providers (electric, gas, & telecommunications) to identify any irregularities or
unusual deviations from the normal pattern, and ensure that the City is not receiving less revenue than it is entitled to
receive.
Avenu will monitor and analyze the City's monthly UUT reporting and collection reports, and will focus
on major account, 90% or more of the City's total service providers, to identify any irregularities or
unusual deviations from normal patterns, and ensure that the City is receiving the revenue to which it
CITY OF SANTA ANA, CA 12
UTILITY USERS TAX CONSULTANT
A V E N V RFP #20-137
INSIGHTS & ANALYTICS
is entitled. Avenu will Identify of possible gaps in payments, irregularities, calculation mistakes (
wrong tax rate), and other payment errors to the City, provided that the City provides Avenu with regular
UUT payment history. Avenu will assist the City with the appropriate compliance correspondence and
enforcement actions.
f. Assist the City with strategies to preserve and enhance UUT generated by the existing service providers operating
within the City of Santa Ana.
Avenu is recognized statewide and throughout the country as an entity that consistently remains on
the cutting edge of technological advancements and governing laws related thereto, both federal and
state, and retains professionals with industry -leading expertise in this respect who routinely draft
articles which are published in national governmental periodicals and forums and regularly lecture at
California and nationwide tax forums on updates within the utility industry. Avenu's experience and
the revolutionary aspects related to the national implementation of 5G wireless networks, the
Permanent Internet Tax Freedom Act, evolving technological industries which are constantly
spawning through creative usage of faster internet protocol, new technologies, and Avenu's vast
experience in exercising enforcement upon these issues in order to maximize revenue by expanding
the City's tax base are unparalleled.
Avenu's UUT experts will, without question, assist and supplement the City's resources with
strategies to preserve and enhance UUT revenues generated by the existing service, existing service
providers who are operating and serving end users in the City absent physical locations, and newly
developed and developing providers which are or will be operating within the City in the future.
1.3.3 Utility Users' Tax Reporting Services [RFP 11I.C.31
a. Generate reports to identify service provider errors and omissions and analyze City Utility Users' Tax rate. Provide
printouts, graphs, and comparative data on a quarterly basis or other recurring basis that meets the specific needs or
desires of the City .
b. Provide written quarterly UUT reports and attend quarterly meetings with the City to discuss activity in the reports.
The reports will include the following:
Quarterly reporting. Prepare a quarterly report on the City's UUT revenues and service providers
generating these revenues. The report should identify and analyze revenue performance, trends,
gains, declines, projections, and pertinent issues. The report should capture UUT performance
Citywide, by service provider (including aggregators and evolving, new entities providing new
technological utility services that are within the scope of the City's levies), and by utility type
(electric, gas, and telecommunications to include pre -paid UUT collected and reported by
telecommunications service providers as well as pre -paid UUT paid to retailers and collected by
CDTFA). Quarterly report data should also be made available in Word formatted documents and
PDFs with graphs and charts available in Excel format and tables available in Excel or Access data
table format, allowing for easy query of the data by authorized City staff. The consultant should also
be available to City staff to answer periodic questions regarding UUT issues and performance.
Contingency option. Provide electronic reporting research database application for City UUT
(client/server or web -based portal application). The application should allow authorized City staff to
search, query, filterlsort and export UUT reporting and payment data (in common data formats; e.g.
Access, Excel, etc.) for staff presentation and analysis based on service provider and utility type.
CITY OF SANTA ANA, CA 13
A V E N U UTILITY USERS TAX CONSULTANT INSIGHTS d. AIJ6lYTICS RFP #20-137
Avenu's UUT experts will generate for the City reports that will identify services provider errors and
omission and the report will analyze the City's Utility Users Tax Rate. Avenu will provide printouts,
graphs, and comparative data on a quarterly basis, at a minimum, or other reoccurring basis that
meets the needs of the City. Avenu is committed to the City of Santa Ana and will ensure the City is
fully supported. Additionally, Avenu will provide written quarterly UUT reports and will attend
quarterly meetings with the City to discuss the activities outlined in the reports.
1.3.4 Specialty UUT Audits [RFP Ill.c.41
i. Successful proposer will provide strategy, mechanism, and audit cost formulas for comprehensive audits of principal
electric and gas utility providers together with large-scale utility service aggregators. Audits may include corresponding
franchise fees where advisable.
Specialty audits shall be included within contractually offered "contingency options" which the City, in its sole
discretion, may elect to confront.
Specialty audits, as such a broad term, may address a wide array of various issues which have been and will soon
become the centerfold of compliance with local UUTs.
The specific terms of specialty audits, when not fully detailed in the original agreement between the parties or under
the terms of a subsequent amendment to said agreement, will be set out through a mutually agreed to change order
process.
Such audits could range from known issues arising from CPUC climate credits, the misapplication of
tax exemptions related to clean energy use, developments of entities and technologies that Avenu
has proprietary insight into and the legal and professional expertise to tackle and successfully bring
into compliance absent litigation, or countless other measures.
For example, Avenu has existing, proprietary, highly -advanced, and customizable software capable of
providing enhanced services to the City for revenue administration for UUTs, Franchise Fees, and
even 5G-related right -Of -Way ("ROW") annual renewal fees. While the 5G ROW fees remain in
certain forms of litigation, Avenu's systems can remove the burden of monitoring annual compliance
with the flood of applications, placements, and renewals for those entities involved to ensure
compliance. These services provide for an expansive array of new, federally regulated fees which are
ever-growing, existing administration of taxes which are currently processed through legacy systems
within the City thus eluding the substantial costs and encumbrances involved with the development of
new systems through external vendors; a process which can be both tremendously painstaking and
extremely costly.
Avenu currently processes and distributes, and even offers °Lockbox Services" for thousands of
clients and distributes governmental funds in excess of $1 billion annually for local governments. As
the provider of such services, Avenu is required to have the internal controls for its software systems
and procedures subjected to an annual SSAE 16, SOC 1, Type II audit of internal controls by an
independent certified public accounting firm to ensure accuracy and compliance. Such annual reports
are always provided to clients which elect to utilize these services.
ii. Successful proposer will provide contingency options for similar audits of principal telecommunications providers.
Avenu will provide contingency options for similar audits of the City's principal telecommunications
providers
CITY OF SANTA ANA, CA 14
UTILITY USERS TAX CONSULTANT
A V E N U
.SIGHTS &. ANALYTIC$
RFP #20-137
1.3.5 Ancillary UUT Services [RFP lll.C.5j
i. Provide quarterly information regarding federal and state legislative issues, including an analysis of their potential
impact on the City.
ii. Comparisons to other local, county, and state jurisdictions as applicable.
iii. Provide other ad hoc reports identifying other pertinent issues as mutually agreed upon.
iv. Assist in development of UUT budget revenue forecast model.
V. Provide a reconciliation of UUT by utility type (electric, gas, and telecommunications, to include pre -paid UUT
collected and reported by telecommunications service providers as well as pre -paid UUT paid to retailers and
collected by CDTFA), which will be used to project annual UUT figures for the City's use in revenue forecasting.
Avenu's experts have decades of experience in Analysis, Forecasting, Budgeting, and Regulatory
Monitoring Services with respect to Utility User Tax services. Avenu will prepare at a minimum,
quarterly analysis of utility users tax revenues, projections, and adjustments on the City's UUT trends
in relation to the surrounding market region, by individual business type and geographic areas
specified by the City; Avenu's experts can provide UUT analysis reports benchmarked to previous
years.
Our Government Relations team works in collaboration with counsel and other stakeholders including
representatives from the League of California Cities, the California Society of Municipal Finance
Officers, the California Municipal Revenue and Tax Association, Special Districts Association, City
advocates, utility providers, the Public Utilities Commission, CDTFA, BOE, and others. Avenu's
analysis includes information on the top revenue producers, indication of revenue changes by
business and economic category, identification of major utilities that influence change in the City's tax
revenue, and analysis of key utilities that grew or declined during the reporting period.
Avenu will provide UUT revenue and cash flow forecasting reports on a quarterly basis and provide
reports by industry area and Avenu can tailor reports to the City's needs if needed. Additionally,
Avenu will provide a monthly, or at least quarterly, summary of economic news for the City's use in
making projections. Avenu will conduct quarterly meetings with the City to discuss the reports and
provide illustrations of the data as needed. To ensure the City is supported, Avenu is providing Laura
Burnett, Avenu's Client Success Manager to the City of Santa Ana and the City's point of contact.
She has first-hand experience with the City and will act as the liaison between Avenu and the City.
Additionally, Avenu will provide on -going and ad -hoc analysis, reports, legislative support, and
unlimited access to Consultant's team members for UUT related questions, as well as training and
support for City staff. Avenu has a government relations team that remain attentive to any future
proposed changes to regulatory language in national, state, and federal laws and regulations related
to the allocation of UUT revenues.
1.4 TERM OF CONTRACT [RFP [11.101]
Avenu understands and agrees that the services described herein shall be provided for a three (3)
year period, from February 1, 2021 to January 31, 2024, with an option exercisable by the City for two
(2) one (1) year extensions unless either party provides written notice of its intention not to renew
ninety (90) days prior to the end of the then current term. All terms and conditions of the Agreement
shall remain effective during any additional renewal term.
CITY OF SANTA ANA, CA 15
A V E N U
INStr LTS & AHALYTICS
2 Attachments 1- to
Avenu has included the following Attachments in this section.
Proposer's Cover Sheet (Attachment 1)
Proposer's Statement (Attachment 2)
Company Information Form (Attachment 3)
Summary Sheet (Attachment 4)
Five (5) Client Reference Forms (Attachments 5)
Cost/Bid Proposal Form(s) (Attachment 6)
Proposer's Certification Form (Attachment 7)
Non -Collusion Affidavit (Attachment 8)
Non -Lobbying Certification (Attachment 9)
Non -Discrimination Certification (Attachment 10)
UTILITY USERS TAX CONSULTANT
RFP #20-137
CITY OF SANTA ANA, CA 16
Avenu Insights & Analytics
5860 Trinity Parkway, Suite 120
Centreville, VA 20120
City of Santa Ana
Attn: Alex Gutierrez, Management Analyst
Finance & Management Services Agency
Treasury & Customer Service
20 Civic Center Plaza, 1 st Floor
Santa Ana, CA 92701
A V E N U
INSIGHTS & ANALYTICS
Phone: (205) 423-4177
Email: Jonathan. Gerthcr,avenuinsights.com
Website: www.avenuinsights.com
Jonathan V. Gerth, Esq.
VP, Tax & Audit Services
Avenu Audit Department
5716 Corsa Ave., Ste 203
Westlake Village, CA 91362
December 8, 2020
RE: City of Santa Ana, CA RFP No. 20-137 — Addendum (Clarification of Avenu Insights &
Analytics, LLC's Pricing Options for Professional Services
To: Finance & Management Services Agency:
Avenu Insights & Analytics/MuniServices, LLC ("Avenu Insights") would like to thank the City of
Santa Ana ("City") for its consideration and the opportunity to competitively bid RFP No. 20-137 ("RFP") as
it relates to the City's Utility Users' Taxes ("UUT"). Avenu Insights has been the industry expert in this
particular field for decades and has only enhanced and expanded its California presence and expertise in the
market in recent years. Insights' statewide provision of these services provides us with a level of both
proprietary and full understanding of the uniqueness of the times within which we live, and the rapid
advancement of technologies which combined have created a volatile environment and only added to the
complexity and multitudes of compliance issues within the UUT arena. We are also well aware of the
significance of these revenues as an essential portion of the City's operating budget.
Accordingly, we appreciate the opportunity to provide the City with a model of pricing for optional
levels and varieties of services that Avenue Insights hereby offers and will indeed provide to the City in
response to the RFP, including additional value added services, in a manner which demonstrates clarity and
affordability to the City. Additionally, Avenue Insights herein offers brief explanations as to what is
included within each cost proposal for each individual service to preclude any inferences that multiple
services are not encompassed within each pricing model.
ATTACHMENT 6 — COST/BED PROPOSAL FORM — RFP No. 20-137
• Utility Users' Tax Revenue Auditing, Recovery, Reporting, Analysis, and Legislative/State Agency
Liaison and Implementation Monitoring Services - Cost/Bid Proposal
All Fiscal Years below must be bid in order for the quote to be considered responsive except where bidder
specifies a future commencement date of performance.
COST/BID PROPOSAL FORM - RFP No. 20-137 - Utility Users' Tax Revenue Auditing, Recovery,
Reporting, Analysis, and Legislative/State Agency Liaison and Implementation Monitoring Services -
Cost/Bid Prolposal Xontinued on Followin Pa e
City of Santa Ana, CA — RFP No. 20-137
Clarification of Avenu's Optional Pricing for Professional Services
December 8, 2020
Page 2
Option
Option2
Option3*
Option
FiscatYear
FixedFlat
Percentageof
Percentage of
Time and
(February I through
Fee
Revenue
Recovered
Expenses
January 31)
Source
Revenues
1
FY2021-2022
$85,000
NIA
25%*
$125/hr+
approved
travel
2
F'Y2022-2023
$85,000
NIA
25%*
$125/hr+
approved
travel
3
FY2023-2024
$85,000
NIA
25%*
$125/hr+
approved
travel
4
FY2024-2025
$85,000
N/A
25%*
$125/hr+
approved
travel
5
FY2025-2026
$85,000
NIA
25%*
$125/hr+
approved
travel
TotatCost:
$425,000
N/A
25%*
$125/hr+
approved
travel
* Please note that the 25% contingency fee on all audits, including the request for any "specialty audits," is
provided pursuant to and included, without limitation, to the City pursuant to Avenu Insights' UUT fixed -fee
program (Option 1 above). This is along with all other payment monitoring, revenue forecasting, detection
services (including aggregators and newly formed entities), etc. The 25% contingency fee applies to all
delinquent and unpaid UUT discovered and realized by the City, including penalties and interest thereon,
stemming from auditing activities (no prospective application) which includes substantial legal support, if
necessary, to navigate specialty and/or complex issues that have and continue to arise. Avenue Insights also
values the ability to offer all such services in-house, and entirely absent the need for non -employee, contract
services. The 25% contingency fee shall not exceed $200,000.00 on any given audit, regardless of the time
and effort expended by Avenue Insights . Avenue Insights is also offering the City an option to elect to
conduct any audit pursuant to an hourly rate, should the City choose to do so (Option 4 above).
Additionally, in order to limit the number of Cost/BID Pricing Charts uricinz charts, the City may
also elect to conduct an audit, whether deemed specialty or otherwise, at a flat -fee amount of
$30 000.00 Ver audit.
COST/BID PROPOSAL FORM - RFP No. 20-137 — Contin2ency Option
• UUT Administration/Reporting service - Cost/Bid Proposal
All Fiscal Years below must be bid in order for the quote to be
considered responsive except where bidder specifies a future
commencement date of perfonnance.
Total cost to the City will consist of:
City of Santa Ana, CA — RFP No. 20-137
Clarification of Avenu's Optional Pricing for Professional Services
December 8, 2020
Page 3
1. A one-time implementation fee of $5,000.00 to systematically notify, develop returns and processes specific
the City's taxes, and to include online file and pay capabilities for tax filers in addition to paper
filings/payees.
2. Assuming City acceptance of Avenu Insights' COST/BID PROPOSAL FORM - RFP No. 20-137 - UtilitY
Users' Tax Revenue Auditing, Recovery, Reportins, Analysis, and Legislative/State Agency Liaison
and Implementation Monitoring Services (Option I .
FiscalYear
(February 1 through
January 31)
Option
1 Fixed
Flat
Fee
Option2
Percentage
of Revenue
Source
Option
Percent
ageof
Recover
Option
4 Time
and
Expens
Option 5 Cost per
transaction
1.
FY2021-2022
$0.00
N/A
N/A
N/A
$4/per monthly filing transaction
2.
FY2022-2023
$0.00
N/A
N/A
N/A
$4/per monthly filing transaction
3.
FY2023-2024
$0.00
N/A
N/A
N/A
$4/per monthly filing transaction
4.
FY2024-2025
$0.00
N/A
N/A
NIA
$4/per monthly filing transaction
5.
FY2025-2026
$0.00
N/A
N/A
N/A
$4/per monthly filing transaction
TotalCost:
$0.00
N/A
N/A
N/A
UNKNOWN
The Administration/Reporting program proposed consists of an "Implementation Phase," leading up
to a "live" cutover from the City' s current UUT administration system at a mutually agreeable date; and a
recurrent, ongoing UUT "Administration Cycle," after which Avenue Insights will serve as the City's full -
service UUT administrator in coordination with City staff.
An outline of the steps and tasks included in each phase is detailed herein below as follows:
Implementation Phase
1. Convert and load to Avenue Insights Revenue Administration system all UUT taxpayer records (to be
provided by the City);
2. Verify with the City all UUT taxpayer letters, forms, and notices to be used (these can be based on existing
City forms and correspondence or further customized to the City's desire);
3. Configuration of a secure web filing and payment portal for use by the City's UUT (or other tax types)
taxpayers;
4. Contacting all UUT taxpayers by mail, including an introductory letter with new filing address(es), 24-
hour telephone contact information for taxpayer support, and web filing instructions; and other follow-ups as
directed by the City;
5. Cutover from City to Avenue Insights' UUT Administration system according to a schedule to be
developed in coordination with the City's staff and in accordance with the City's needs.
City of Santa Ana, CA — RFP No. 20-137
Clarification of Avenu's Optional Pricing for Professional Services
December 8, 2020
Page 4
Ongoing UUT Administration Cycle:
1. Beginning as of the scheduled date, Avenue Insights will receive filings and payments either by mailing
and/or via the convenient online payment portal;
2. All paper filings, checks, and correspondence will be opened and batched in our secure facility.
Avenue Insights sincerely hopes this provides the information necessary to clarify our offerings, and we hope
to hear from the City soon.
City of Santa Ana, CA — RFP No. 20-137
Clarification of Avenu's Optional Pricing for Professional Services
December 8, 2020
Page 5
Statement of Work
1. Assist the City in collecting additional general tax revenues due to the City, as determined from auditing,
identification of entities which are not reporting, recovery of revenues from existing and newly identified
entities, reporting and associated compliance activities to include the following UUT categories: Electric,
Gas, & Telecommunications.
2. Assist the City in the development of UUT revenue forecast models for Electric, Gas, &
Telecommunications UUT and Franchise Fees.
3. Provide legislative and state agency liaison and implementation monitoring including coordination with
City's state and federal lobbyists in connection with legislation/regulation relating to City's UUT (all
categories - Electric, Gas, Telecommunications & Water, including aggregators, plus CDTFA collected pre-
paid telecommunications UUT).
Related to the above audit services, the Professional Consultant/Vendor would:
• Represent the City for purposes of examining records related to the above revenue sources to identify
and confirm any errors/omissions leading to deficient payments to the City.
• For each error/omission identified and confirmed, prepare the appropriate documentation to facilitate
recovery of revenue due to the City including any applicable penalties and interest.
• Prepare and forward to the appropriate entities'/parties' requests for corrective action and induce
voluntary revenue recovery.
• Meet with designated City officials as necessary (but not less than quarterly) to review consultant's
findings and recommendations.
• Provide any additional assistance as necessary to support the City in recovering and preventing tax
delinquencies.
• Utility Users' Tax: Prepare annual UUT report that includes legal and legislative issues that could
potentially affect UUT revenues and a five -year forecast or each utility industry type; assist in development
of multi -year UUT budget revenue forecast model.
• Legislative/State Agency Liaison and Implementation Monitoring: Provide federal, state, and local
legislative and state agency liaison and program implementation monitoring (including coordination with
City's state and federal lobbyists in connection with legislation/regulation relating to City's UUT.
Avenue Insights Related Services
• Represent the City for purposes of examining records related to the above revenue sources to identify
and confirm any errors/omissions leading to deficient payments to the City.
• For each error/omission identified and confirmed, prepare the appropriate documentation to facilitate
recovery of revenue due to the City including any applicable penalties and interest.
• Prepare and forward to the appropriate parties' requests for corrective action and revenue recovery.
• Meet with designated City officials as necessary (but not less than quarterly) to review consultant's
findings and recommendations.
• Provide any additional assistance as necessary to support the City in recovering and preventing tax
delinquencies.
City of Santa Ana, CA — RFP No. 20-137
Clarification of Avenu's Optional Pricing for Professional Services
December 8, 2020
Page 6
• Utility Users' Tax: Prepare annual UUT report that includes legal and legislative issues that could
potentially affect UUT revenues and a five-year forecast or each utility industry type; assist in development
of multi -year UUT budget revenue forecast model.
Additional Available Value -Added Service Offerin s
Related to the above audit services, the Professional ConsultantNendor would:
• Represent the City for purposes of examining records related to the above revenue sources to identify
and confirm any errors/omissions leading to deficient payments to the City.
• For each error/omission identified and confirmed, prepare the appropriate documentation to facilitate
recovery of revenue due to the City including any applicable penalties and interest.
• Prepare and forward to the appropriate entities'/parties' requests for corrective action and induce
voluntary revenue recovery.
• Meet with designated City officials as necessary (but not less than quarterly) to review consultant's
findings and recommendations.
• Provide any additional assistance as necessary to support the City in recovering and preventing tax
delinquencies.
• Utility Users' Tax: Prepare annual UUT report that includes legal and legislative issues that could
potentially affect UUT revenues and a five -year forecast or each utility industry type; assist in development
of multi -year UUT budget revenue forecast model.
• Legislative/State Agency Liaison and Implementation Monitoring: Provide federal, state, and local
legislative and state agency Iiaison and program implementation monitoring (including coordination with
City's state and federal lobbyists in connection with legislation/regulation relating to City's UUT.
• Represent the City for purposes of examining records related to the above revenue sources to identify
and confirm any errors/omissions leading to deficient payments to the City.
• For each error/omission identified and confirmed, prepare the appropriate documentation to facilitate
recovery of revenue due to the City including any applicable penalties and interest.
• Prepare and forward to the appropriate parties' requests for corrective action and revenue recovery.
• Meet with designated City officials as necessary (but not less than quarterly) to review consultant's
findings and recommendations.
• Provide any additional assistance as necessary to support the City in recovering and preventing tax
delinquencies.
• Utility Users' Tax: Prepare annual UUT report that includes legal and legislative issues that could
potentially affect UUT revenues and a five-year forecast or each utility industry type; assist in development
of multi -year UUT budget revenue forecast model.
City of Santa Ana, CA— RFP No. 20-I37
Clarification of Avenu's Optional Pricing for Professional Services
December 8, 2020
Page 7
Additional Miscellaneous Contingent Services
Avenue Insights has the proven capacity to provide the City with additional miscellaneous contingent consulting
services Such additional consulting services include, but are not be limited to: audit recovery of potential hotel
visitors' taxes, provision of hotel visitors' tax administration services, audit recovery of potential tourist marketing
district assessment fees, provision of tourist marketing district assessment fees administration services, audit
recovery of potential business license taxes, and/or potential medical marijuana and/or cannabis taxes, or cannabis
related operating agreement fees (as applicable), selection process assistance for adult -use retail cannabis business
permitting, cannabis testing facility or testing laboratory permitting, miscellaneous commercial cannabis business
(cultivation, manufacture, distribution) permitting and may also include Comprehensive Annual Financial Reporting
statistical services as outlined in the Comprehensive Annual Financial Reporting (CAFR) Attachment to this
addendum.
Predetennined fees are as follows:
• For revenue recovery audits - $6,000 per assigned audit
• For tax administration services (including lockbox services) utilizing City official depository bank -
$5,000 per tax category (UUT and HVT) -
All other fees as may be set forth in any change order(s) mutually agreed to by the City and Avenu Insights.
Avenue Insights shall furnish at its own expense all labor, materials, equipment and other items necessary to
carry out agreed to additional miscellaneous contingent services.
Very cordially,
Jonathan V. Gerth, Esq.
Avenu Insights & Analytics
COMPLETE REPORTING INSIGHTS
FROM ONE RELIABLE SOURCE
Gain the data -driven clarity to guide your community forward. Avenu's CAER provides
cities with an array of powerful reports for more informed decision -making. Access
exclusive reporting on principal employers while staying compliant with GASB
Statement 44.
CAFR Statistical Services Include:
BASIC PACKAGE: $600
Assessed & Estimated Market Values
Direct & Overlapping Property Tax Rates
Property Tax Land Use Distribution
Principal Property Tax Payers
Principal Sales Tax Producers
ADDITIONAL REPORTS
Principal Employers $1,100
Demographic & Economic Statistics $200
Direct & Overlapping Debt $600
City of Santa Ana, CA — RFP No. 20-137 — Addendum Attachment CAFR Statistical Services
(Clarification of Avenu Insights & Analytics, LLC's Pricing Options for Professional Services)
Am
A V E N U
I �+ � 1 : - 7 � � ',If , IT, - -
avenuinsights.com 11
succeed 0avenuinsights.com
EXHIBIT C
CONSIDERATION
In consideration for the services to be provided by Avenue Insights and Analytics, LLC
("CONSULTANT") pursuant to the Consultant Services Agreement (the "Agreement")
made as of the 19th daV of January, 2021 by and between Avenu Insights and Analytics,
LLC, a Delaware limited liability company and the City of Santa Ana, a charter city and
municipal corporation of the State of California ("CITY") CONSULTANT shall be
compensated by CITY as set forth below under the terms of the following items.
ITEM
#1 Utility Users' Tax Revenue Auditing, Recovery, Reporting, Analysis, and
Legislative/State Agency Liaison and Implementation Monitoring Services Pro ram
Option 1
Option 2
Option 3*
Option 4
FiscalYear
Fixed Flat
Percentageof
Percentageof
Time and
(February 1 through
Fee
Revenue
Recovered
Expenses
January3l)
Source
Revenues
1
FY2021-2022
$85,000
NIA
25%*
$125/hr+
approved
travel
2
FY2022-2023
$85,000
NIA
25%*
$125/hr+
approved
travel
3
FY2023-2024
$85,000
N/A
25%*
$125/hr+
approved
travel
4
FY2024-2025
$85,000
NIA
25%*
$125/hr+
approved
travel
5
FY2025-2026
$85,000
NIA
25%*
$125/hr+
approved
travel
TotalCost:
$425,000
NIA
25%*
$125/hr+
approved
travel
* Please note that the 25% contingency fee on all audits, including the request for any "specialty audits,"
is provided pursuant to and included, without limitation, to the City pursuant to Avenu Insights' UUT
fixed -fee program (Option 1 above). This is along with all other payment monitoring, revenue
forecasting, detection services (including aggregators and newly formed entities), etc. The 25%
contingency fee applies to all delinquent and unpaid UUT discovered and realized by the City, including
penalties and interest thereon, stemming from auditing activities (no prospective application) — which
includes substantial legal support, if necessary, to navigate specialty and/or complex issues that have and
continue to arise. Avenue Insights also values the ability to offer all such services in-house, and entirely
absent the need for non -employee, contract services. The 25% contingency fee shall not exceed
$200,000.00 on any given audit, regardless of the time and effort expended by Avenue Insights. Avenue
Insights is also offering the City an option to elect to conduct any audit pursuant to an hourly rate, should
the City choose to do so (Option 4 above),
CITY shall compensate CONSULTANT for this program service based on the
Option 1 Fixed Flat Fee schedule shown above for each program fiscal year (February 1
through January 31) covered within the TERM of the Agreement for a total maximum
program cost over the maximum TERM of the Agreement not to exceed $425,000.
#2 Contingency Option - UUT Administration/Reporting Service Program
Fiscal Year
(February Ithrough
January 31)
Option 1
Fixed Flat
Fee
Option 2
Percentage
of Revenue
Source
Option 3
Percentageof
Recovered
Revenues
Option 4
Time
and
Expense
Option 5 Cost per
transaction
1.
FY2021-2022
$0.00
N/A
N/A
NIA
$4/per monthly filing
2.
FY2022-2023
$0.00
N/A
N/A
N/A
$4/per monthly filing
3.
FY2023-2024
$0.00
N/A
N/A
N/A
$4/per monthly filing
4.
FY2024-2025
$0.00
N/A
N/A
N/A
$4/per monthly filing
5.
FY2025-2026
$0.00
N/A
N/A
N/A
$4/per monthly filing
TotalCost:
$0.00
N/A
N/A
N/A
UNKNOWN
i. Requires City acceptance of Avenu Insights' Utility Users' Tax Revenue Auditing, Recovery, Reporting,
Analysis, and Legislative/State Agency Liaison and Implementation Monitoring Services Prosram
(Option 1 Fixed „Flat Fee Pricing),
ii. Requires a one-time implementation fee of $5,000 to systematically notify, develop returns and processes
specific to the City's taxes, and to include online file and pay capabilities for tax filers in addition to paper
filings/payees, and shall (including lockbox services) utilizing the City's official depository bank.
In the event that CITY shall elect the contingency option to receive UUT
Administration/Reporting Service Program services, CITY shall compensate
CONSULTANT for this program service based on the Option 'I Fixed Flat Fee schedule
shown above for each program fiscal year (February 1 through January 31) covered
within the TERM of the Agreement together with a one-time implementation fee of $5,00.0.
#3 Contingency Option - HVT Administration/Reporting Service Program
FiscalYear
(February 1 through
January 31)
Option 1
Fixed Flat
Fee
Option 2
Percentage
of Revenue
Source
Option 3
Percentageof
Recovered
Revenues
Option 4
Time
and
Expense
Option 5 Cost per
transaction
1.
FY2021-2022
$0.00
N/A
N/A
N/A
$4/per monthly filing
2.
FY2022-2023
$0.00
N/A
NIA
N/A
$4/per monthly filing
3.
FY2023-2024
$0.00
N/A
N/A
N/A
$4/per monthly filing
4.
FY2024-2025
$0.00
N/A
N/A
NIA
$4/per monthly filing
5
FY2025-
$0.00
N/A
N/A
N/A
$4/per monthly filing
Total 1$0.00
N/A
NIA
NIA
UNKNOWN
i. Requires City acceptance of Avenu Insights' Utility Users' Tax Revenue Auditing, Recovery, Reporting.
Analysis, and Legislative/State Agency Liaison ,and „Implementation Monitoring Services Program
(Option 1 Fixed Flat Fee Pricing).
ii. Requires a one-time implementation fee of $5,000 to systematically notify, develop returns and processes
specific to the City's taxes, and to include online file and pay capabilities for tax filers in addition to paper
filings/payees, and shall (including lockbox services) utilizing the City's official depository bank.
In the event that CITY shall elect the contingency option to receive HVT
Administration/Reporting Service Program services, CITY shall compensate
CONSULTANT for the program service based on the Option 1 Fixed Flat Fee schedule
shown above for each program fiscal year (February 1 through January 31) covered
within the TERM of the Agreement together with a one-time implementation fee of $5,000.
#4 Contingency Option_ - Specialty UUT Major Audit Service Program — Electric,
Gas, Telecom Utilities
In the event that CITY shall within the TERM of the Agreement elect the
contingency option to engage CONSULTANT to perform Major UUT Audits, whether
deemed specialty or otherwise, CITY shall pay a flat -fee amount of $30,000 per Major
UUT audit. Where a Major UUT Audit involves a public utility subject to a City of Santa
Ana Franchise Fee the audit shall extend to cover such franchise fees.
#5 Continaencv Option — Miscellaneous Utility Audits
In the event that CITY shall within the TERM of the Agreement elect the
contingency option to engage CONSULTANT to perform Miscellaneous Utility Audits,
whether deemed specialty or otherwise, and whether involving aggregators or newly
formed entities, or non-UUT utilities, CITY shall pay a percentage fee amount based on
Item #1 Option 3 Percentage of Recovered Revenue. Where a Miscellaneous Utility
Audit involves a public utility subject to a City of Santa Ana Franchise Fee the audit shall
extend to cover such franchise fees. (CITY may at its own option designate Item #1
Option 4 Time and Expenses as an alternative basis for payment for any such
Miscellaneous Utility Audit.)
#6 Contingency Option — Revenue Recovery Audits
In the event that CITY shall within the TERM of the Agreement elect the
contingency option to engage CONSULTANT to perform Revenue Recovery Audits, CITY
shall pay a flat -fee amount of $6,000 per audit.
Revenue Recovery Audits - Categories
Hotel Visitors' Taxes
• Hotel Tourist Marketing District Assessment Fees
• Business License Taxes and associated Business Improvement District
Assessment Charges (as applicable)
• Medical Marijuana and/or Cannabis Taxes (cultivation, manufacture,
distribution, testing), or Cannabis related Operating Agreement Fees (as
applicable).
#7 Contingency Option — Comprehensive Annual Financial Reporting (CAFR)
Services
In the event that CITY shall within the TERM of the Agreement elect the
contingency option to engage CONSULTANT to provide CAFR Statistical Services, CITY
shall pay a flat -fee amount in accordance with the schedule of fees set forth below for
each reporting period for which CAFR Statistical Services are requested.
CAFR Statistical Services Include:
BASIC PACKAGE: $600
• Assessed & Estimated Market Values
• Direct & Overlapping Property Tax Rates
• Property Tax Land Use Distribution
• Principal Property Tax Payers
• Principal Sales Tax Producers
ADDITIONAL REPORTS
• Principal Employers $1,100
• Demographic & Economic Statistics $200
• Direct & Overlapping Debt $600
#8 Contingency Option — Additional Work
In the event that CITY shall within the TERM of the Agreement elect the
contingency option to engage CONSULTANT to provide additional work within the terms
of the Agreement, CITY shall pay the mutually agreed to amount(s) as set forth in any
duly executed Change Order(s) mutually agreed to by the parties in accordance with the
terms of the Agreement.
Avenu Insights Analytics LLC UUT Agreement
(2-1-2021 thru 1-31-26)_(CAO .._
Final Audit Report 2021-01-06
Created: 2021-01-06
By: Kristin Andrade (kandrade@santa-ana.org)
Status: Signed
Transaction ID: CBJCHBCAABAAvpCkwAYjPGPRmlaznr8TyhdDhK7Z1iDs
"Avenu Insights Analytics LLC UUT Agreement (2-1-2021 thru 1-
31-26)_(CAO .._" History
Document created by Kristin Andrade (kandrade@santa-ana.org)
2021-01-06 - 8:07:29 PM GMT- IP address: 98.153.69.210
c'w Document emailed to Kathryn Downs (kdowns@santa-ana.org) for signature
2021-01-06 - 8:08:03 PM GMT
Email viewed by Kathryn Downs (kdowns@santa-ana.org)
2021-01-06 - 8:17:51 PM GMT- I address: 184.181.108.147
&0 Document e-signed by Kathryn Downs (kdowns@santa-ana.org)
Signature date: 2021-01-06 - 8:18:18 PM GMT - Time Source: server- I address: 184.181.108.147
0 Agreement completed.
2021-01-06 - 8:18718 PM GMT
0 Adobe Sign